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Home , Amerasia, Earl Browder, Edward Leigh, Marquis Childs, Philip Jaffe, Vice squeeze

7880 CONGRESSIONAL RECORD-SENATE JUNE 1 Calif., 1'or public park purposes"; - to the 2175. Also, petition of May Nakanishi, sec­ ate because of his appointment as a Committee on Public Lands. retary, Japanese-American Citizens League, member of the committee to attend the By Mr. NORRELL: Salt Lake City, Utah, requesting Congress H. R. 8680. A to provide for the execu­ to increase the appropriation now allotted funeral services of the late Representa­ tion of a loyalty am.davit by every ofilcer or for the Justice Department to administer the tive , of North Dakota. employee in or under the executive, legisla­ evacuation claims program during the fiscal On her own request, and by unanimous tive, or judicial branch of the Government year 1951; to the Committee on the Judi­ consent, Mrs. SMITH of Maine was ex­ of ihe , and for other purposes; ciary. cused from attendance on the sessions to the Committee on the Judiciary. 2176. Also, petition of Generoso Tanseco, of the Senate from June 2 -to -and in­ By Mr. O'HARA of Illinois: president, Filipino Shipowners Association, cluding June 12, for the purpose of at­ H. R. 8681. A bill to amend the Commodity Manila, Philippines, vigorously opposing the tending the UNESCO Conference at­ Credit Corporation Charter Act to prescribe enactment of House bill 7665, which would the share of lending agencies in the interest authorize the purchase of certain war-built Florence, . derived from loans made in carrying out loan vessels by citizens of the Republic of the On his own request, and by unanimous programs of the Corporation; to the Commit­ Philippines; to the Committee on Merchant consent, Mr. TOBEY was excused from tee on Banking and Currency. Marine and Fisheries. attendance on the session of the Senate on Monday next. MEMORIALS CALL OF THE ROLL Under clause 3 of rule XXII memorials SENATE Mr. O'MAHONEY. I suggest the ab­ were presented and referred as follows: sence of a quorum. By the SPEAKER: Memorial of the Legis­ THURSDAY, JUNE 1, 1950 The ACTING PRESIDENT pro tem­ lature of the State of Louisian; requesting pore. The clerk will call the roll. the insuring of the proper administration

in the price zones controlle~ by Pittsburgh, Under the differential, a buyer in New erable expense to themselves and to the Chicago, and Bethlehem, makes it possible Orleans, La., paid $2.50. Without the Federal Government, this investment, for northern structural steel fabricators to secure steel from northern mills and to com­ differential, he would have had to pay insofar as the basing-point products are pete for southern construction jobs. North­ only $2.35. · concerned, has been largely wasted. ern mills are willing to supply this steel be­ Under the differential, a buyer in Why should anybody ask for delivery by cause, even though absorbing heavy freight Vicksburg, Miss., paid $2.45. Without water if he does not receive the benefit charges, the prices paid by consumers are the differential, he would have had to pay of the lower water cost? held high enough to provide satisfactory net only $2.35. I should like to point out that in the yields. This competition from northern fab­ The TVA report goes on to show the South and Southwest we have been con­ ricators has at times limited ·seriously the effects of the differential upon specific tinuing to develop our waterways. volume of business secured by southern fab­ ricators. The removal of the differential industries located in the South. In each, Some time ago Congress authorized the would tend to force such competition north­ 'the di:ff erential clearly had the effect of development of the Tombigbee River, ward by a band of territory varying in width confining and holding back the natural which, connected with the Warrior River, from about 50 to 175 miles. market areas of the southern concerns. and thence with the Ohio and the Mis­ '3. The freight-rate scale from North to For example, in the bolt and nut indus­ sissippi, would give us additional water­ South tends to increase the competition from try, the report found that the removal ways between the Pittsburgh area; the northern structural steel fabricators. On of the differential on basic steel would st. Louis area, and the Gulf of Mexico. shipments to the South, there are groups However, under the basing-point system of towns and cities bearing the same rates have substantially enlarged the market even though varying many miles in distance of southern bolt and nut producers, the producers and consumers in the from the northern mill. This grouping per­ greatly increasing their share of the South would not benefit by water rates. mits a northern steel mill to penetrate far­ market in Oklahoma, Texas, Arkansas, Even though a product were hauled by ther into the South and still secure a more Tennessee, Kentucky, and North Caro­ water, rail freight rates would still have satisfactory net price yield than would be lina. On an overall basis, the elimina­ to be paid on it. possible if the freight rates progressed more tion of the differential would have in­ The record on this matter is filled with uniformly in relation to distance. Also, there creased the market held by southern protests by southern cities against this is an Qver-all freight rate disadvantage to producers in this industry by 25 percent. practice. Yet despite their protests and the South of 37'2 cents per hundred pounds in shipments of steel between Birmingham Similarly, with the elimination of the despite the obvious injustice of the prac­ and Pittsburgh. differential, the markets of southern tice, they received no relief until the 4. Through the removal of the Birmingham wirework producers would have been in­ basing-point system was abandoned by differential certain southern manufacturers creased by 25 percent. Likewise, in each the steel industry following the Cement of products con~aining steel would gain an of the other industries studied, the elim­ decision in 1948. Let me cite a few of additional potential market about 25 percent ination of the differential would have in­ these protests which have been made by as large as the market in which they are now creased their markets by amounts rang­ representatives of southern industry: selling. Manufacturers of products composed entirely of steel to which the differential ing from 2 to 12 percent. The Memphis Chamber of Commerce applies and carrying the same freight classi· Mr. President, every Member of this complained against this practice, stat­ fication as basic steel products would benefit body from the South should strenuously ing: "This method of selling steel in approximately to this degree. Manufacturers oppose the passage of any piece of leg­ effect excludes the transportation by wa­ of products containing smaller amounts of islation which would have the effect of ter or rail and water, for the purchaser steel or bearing a higher freight rate classi­ restoring one of the most vicious types would naturally not accept water or rail­ fication would benefit to a lesser degree. The of discrimination ever practiced against and-water delivery when he is being fullest benefit of this additional potential any region. Not only would the reim­ charged the all-rail freight as the sav­ market would of course be gained only after a period of sales cultivation by southern position of the Birmingham differential ing would not be for his account but manufacturers. halt the remarkable expansion of south­ would go in the pocket of the seller. eastern industry in its tracks; it would This eliminates Memphis and other riv­ Perhaps a clearer impression of the result, as the TV A report has pointed er points from enjoying the natural ad­ way in which this differential discrim­ out, in an actual reduction in the mar­ vantages which she possesses and if al­ inated against the South may be gath­ ket. now held by southern manufacturers lowed to maintain would eventually lead ered from a few individual examples. In and fabricators by amounts ranging up - to a higher all-rail structure, as our 1935 the Pittsburgh base price for many to 25 percent. present advantageous position is due to steel products was quoted at around $2 This means idle factories and rising the recognition of the river competi­ per 100 paunds. In other words, a buyer unemployment in the South. It means tion"-FTC report on practices of the in Pittsburgh could obtain these products fewer working days and smaller pay steel industry under the code, 1934. at that price. Under the Birmingham checks for the southern worker. It The Mississippi Valley Association of differential, a buyer in Nashville, Tenn., means reduced profits to the southeast­ St. Louis, with 437 registered delegates paid not $2 but $2.40 a hundred pounds. ern industrialist. It means that once from 26 Stabs, including most of the Without the differential he would have again the South will be in bondage to Southern States, passed a resolution sub­ had to pay only $2.25. northern monopoly. mitted by its traffic committee declaring A buyer in Bristol, Tenn.; under the Then there is another feature of the that the use of all-rail rates are inimi­ differential, paid $2.50. Without the dif­ basing-point system which works pecu­ cal to the interest of the consumers, un­ ferential, he would have had to pay only liar and extreme hardship upon the justly eliminate all forms of transporta­ $2.35. South, namely, the practice of comput~ tion other than railroads from partici­ Under the differential, a buyer in 1ng delivered prices on the basis of all­ pation in valuable traffic and tend to de­ Charlotte, N. C., paid $2.55. Without the :rail freight even though shipment is ac­ stroy water carriers and port facilities. differential, he would have had to pay tually made by water or truck. The Vicksburg, Miss., Chamber of only $2.40. The injury suffered by the South as a Commerce protested through a Member Under the differential, a buyer in result of this practice can be seen by a of Congress that the all-rail basis will Charleston, S. C., paid $2.60. Without few comparisons of water rates with rail not only deprive industries and cousum­ the differential, he would have had to rates. Thus, as of March 31, 1941, the ers located along the inland waterways pay only $2.45. rail rate for shipping a ton of steel be­ of a natural advantage but will elimi­ Under the differential, a buyer in At­ tween Pittsburgh and Memphis, Tenn., nate the value and usefulness of termi­ lanta, Ga., paid $2.40. Without the dif­ was $11.40; the water rate for a mini­ nals, and so forth. ferential, he would have had to pay only mum of 500 tons was only $3.10. The The Belknap Hardware Manufactur­ $2.25. rail rate from Pittsburgh to Vicksburg, ing Co., of Louisville, Ky.-one of the Under the differential, a buyer in Miss., was $13.60; the water rate was great concerns in the State represented Jacksonville, Fla., paid $2.55. Without $4.15. From Pittsburgh to New Orleans, by the distinguished junior.senator from the differential, he would have had to pay the rail rate was $13.60; the water rate · Kentucky [Mr. CHAPMAN] , whom I see on only $2.40. was only $5.20. From Pittsburgh to the floor-objected to the all-rail basis Under the differential, a buyer in Mo­ Houston, Tex., the rail rate was $14; on the ground that it arbitrarily and bile, Ala., paid $2.45. Without the dif­ the water rate only $7. unjustly deprives many taxpayers of the ferential, he would have had to pay only Although many southern cities put in advantages of economical river trans­ $2.30. terminal and barge facilities at consid- portation for which they had paid, and .7906 CONGRESSIONAL RECORD-· SENATE JUNE 1 that the Government had spent hun­ tem, the growth of the fabricating indus­ one western group after another has dreds of millions on the development of tries in the South will he stunted because urged the elimination of' this outrageous river transportation, but that the use of of the high and discriminatory prices practice? · the river transportation is prohibited e~­ which they will have to pay for their Mr. President, in support of the state­ cept at all-rail rates. steel, cement, and any -other materials ment which I have just made, I would The Southern States Iron Roofing Co., which they used that are sold under the like to summarize the testimony pre­ of Savannah, Ga., stated that prior to basing-point system. sented before the TNEC by riilr. T. A. D. the code mills quoted to river points based Mr. President, in the debates which Loretz, general manager of orie of these on river freight rates, that the opening h ave been held on· this bill; I have been groups, the· Pacific Coast Steel Fabri­ up of water traffic on the Mississippi fol­ very happy to note that most of the cators Association, Los Angeles, Calif., lowing large expenditures by the Gov­ Members of this body who come from an association of the principal structural ernment was the primary inducement Southern States are united in opposi.:.· and plate steel fabricators in the far in our opening up a branch factory at tion to this bill. Those of us who are Western States. In his testimony, Mr. Memphis, Tenn. It stated that unless from the South know how the northern Loretz described in det::;.il the way in transportation cost was allowed it will monopolists have held back the growth which delivered prices on the west coast probably necessitate our closing our of southern industry. We know that the are made up. Memphis, Tenn., plant-consequently vicious practices which these monopo­ Let us take the case of steel bars. un.:. throwing out of employment a large lists have instituted today, of which the til 1938 the ·controlling basing point on number of men and will also increase basing-point system is a ·conspicuous ex­ all deliveries to the west coast for steel the cost of roofing products to the ulti­ ample, have brought only suffering and bars and all other steel products as well, mate consumer and will make practically want to the South. We know that if the was Pittsburgh, Pa. But in 1938, ill an• useless the money spent by the Govern­ South is to prosper and make effective ticipation of the TNEC investigation the ment opening up traffic on the Missis­ use of the natural resources with which industry relaxed a little and established sippi River. God endowed it, monopolistic control a few new basing points, which resulted The Crescent Bed Co., of New Orleans, over southern industry must be brought in a slight; but very slight, reduction of stated that it had been receiving its steel to an end. delivered prices on the west coast: Thus, purchases from Birmingham by Govern­ In this connection, I call to the atten­ in 1939, the nearest basing point to the ment barge line since completion of the tion of this body the exhaustive report west coast for steel bars was Birming­ waterways system some 5 years ago. The of the Pace Committee on the Cotton ham, Ala., with a base pfice, as of No­ barge line rates were 7 cents per hundred South. Comprised of representatives of vember 9, 1939, of $2.15 per 100 pounds. less than the . all-rail rates. It stated all walks of southern life and based upon The transportation cost· from Birming­ that the Birmingham mills would only the factual studies of an army of ex­ liam to Los Angeles harbor consisted of ship by rail and the Government spent perts, . the committee, in its formal rec­ the following elements: Birmingham to so much money building a waterway sys­ ommendations, urged the elimination of Mobile, 16 cents; Mobile to Los Angeles tem, it is a natural thing for us to con­ monopolistic practices that hold back harbor, 45 cents; wharfage at Los An­ tinue to ship our steel by the barge line southern production. The committee geles harbor, 1 ~ cents; car loading at and save $1.40 per ton freight. To ship went on to state that it regards monopoly Los Angeles harbor, 1 % cents; marine by rai'l, as far as we are concerned, is as so peculiarly detrimental to the South insurance, 1 cent; or a total of 65 cents, just wasting $1.40 a ton and it is handi­ that it recommends a long-range study which, when added to the base price of capping our industry that amount. It of the problem by competent public or $2.15; makes a total of $2.80. Now it so requested that the mills be again allowed private agencies-Study of Agricultural happens that the steel industry's official to use water transportation. and Economic Problems of the Cotton base price on cars, Los Angeles harbor, Similar protests have been made by Belt, Pace Committee Report. which was also the base price at other many other representatives of southern Mr. President, the least we can do in Pacific coast terminal ports, was $2. 75. industry. These are not the protests of carrying out this recommendation is to In other words, the official base price on Government agencies or theoretical defeat this and all other proposals which'. the west coast was approximately the economists. These are the protests of would have the effect of disastrously same as the sum of the base price in the practical, hard-headed businessmen who weakening our present safeguards East, plus freight and auxiliary charges have encountered what amounts to the against monopoly. As I pointed out to west coast ports. . iron hand of a private dictatorship. in the beginning of my remarks, by 1955 In the case of structural shapes, Phila-· These southern businessmen have used the Southeast will have to develop over delphia was the nearest basing point to every means in their power to bring 900,000 and the Southwest over 400,000 the west coast. The Philadelphia base· about the elimination of this outrageous new · nonfarm jobs, or a total for the price on shapes was $2.31 %. Trans­ discrimination, so that they would have South of 1,300,000 new jobs in industry portation costs from Philadelphia to some chance of expanding their business and commerce. The least that we can Los Angeles amounted to 49 cents, or a and giving employment to southern do in performing this staggering task is total delivered price of $2.70%. What workers. But although their protests to give southern industry a fair chance was the offlcial base price on the west have been carried to the highest quar­ to grow and prosper in a free and com­ coast? It was $2. 70, a difference of only ters by many Senators and Representa­ petitive market. half a cent from the sum of the Phila­ tives, it was not until the steel industry Mr. President, turning now to the delphia basing point price plus freight. abandoned the basing-point system fol­ West, that region has just as great a On steel plates, the situation was the lowing the Cement decision that the grievance against the basing-point sys­ same. The base price from the nearest South began to achieve some of the bene­ tem as the South. I wonder how many basing point, Sparrows Point, Md., was fits of its marvelous natural system of Members of this body know how prices $2.10. The freight charges from Spar­ waterways. for steel on the west coast are determined row~ Point to Los Angeles amounted to In addition to these very specific fea­ under the basing-point system? They 49 cents, or a total of $2.59. This com­ tures of the basing-point system-the are, in effect, the equivalent of base pared to the official base price on cars, Birmingham differential, the charging of prices from the East, plus freight to the Los Angeles harbor of $2.60. Pittsburgh-plus prices, and the refusal Pacific coast. And on hot-rolled sheets the base to base delivery charges on anything Mr. President, there have long been price at Sparrows Point was $2, and other than rail freight-the general fea­ steel mills on the west coast. But the freight to Los Angeles was 49 cents, or tures of the system, which I have already local western buyer, purchasing steel a total of $2.49. The official base price described, will continue to operate pow­ from such a mill-which may be located on the west coast was only 1 cent high­ erfully against the South. Thus, if the just across the street-has had to pay a er-$2.50. basing-point system is restored, the delivered price which includes the fic­ Mr. President, let us consider this growth of any primary producer, such as tional charge of a wholly imaginary ship­ situation. In 1939 steel mills were lo­ a steel or cement manufacturer, will be ment from one end of the United States cated on the west coast, at San Fran­ halted before it gets started by the fear to another. In view of this situation, cisco and Seattle, owned entirely by the of predatory dumping which will be is it any wonder that the growth of in­ United States Steel Corp. and the Beth­ legalized under this bill. Similarly, with dustry on the west coast has long been lehem Steel Co. The western buyer who the restoration of the basing-point sys- retarded? And is it any wonder that purchased steel from these mills ·paid 1950 CONGRESSIONAL RECORD-SENATE 7907 delivered prices at west coast ports of 1, 1938, and June 30, 1939, independent be able to compete when they are forced $2.50 per hundred pounds of steel sheets, fabricators on the Pacific coast obtained, to pay from $10 to $13 more per ton for as contrasted to only $2 paid by his com­ 1n terms of actual tonnage, only 27 per­ steel than their eastern rivals? An un­ petitor located at Sparrows Point-that cent of the fabricated structural steel told number of western companies will is, Baltimore, Md.-with roughly similar awards made in the three Pacific Coast undoubtedly be placed in the same situa­ differences existing in other steel prod­ States. Who obtained the bulk of the tion as the American Forge Co. of San ucts. In other words, under this sys­ awards? Senators can probably guess Francisco of having to pay a price for its tem the materials costs to the western the answer. The fabricating affiliates of steel so high that it "does not permit us steel user were 25 percent higher than the Unit,ed States Steel and Bethlehem to continue in this business." to his eastern competitor. Steel secured no less than 66 percent. Mr. President, I wish to speak very Expressed in another way, up to 1938 During the same period, Mr. Loretz fr.ankly on this matter. From the ff_ c ~s the amount of phantom freight paid by showed that out of all the awards for which I have set forth, it should be clear the western steel consumer averaged fabricated structural tonnage placed in that under the basing-point system, the about $15 a ton, and after 1938 it ranged the Intermountain States · of Arizona, discrimination against the West is at from $10 to $13 a ton. New Mexico, Nevada, Utah, Idaho, and least as great as the discrimination Confronted with discrimination of Montana, the independent fabricators in against the South. And as I have also this magnitude, may I be permitted to this very area received only 3.7 percent pointed out, most of the Members of this inquire just how the western companies of the awards and the independent fabri­ body who come from Southern States are going to be able to continue their cators on the Pacific coast secured only recognize the basing-point system for recent remarkable expansion, if the bas­ 2.4 percent. It was again the affiliates what it is-a system which automatically 'ing-point system is restored? of the big eastern steel companies which and necessarily discrimin..ttes against the The r.epresentatives of the western re­ received the lion's share, 51 percent, of underdeveloped regions-and have ac­ gional groups do not seek special treat­ the awards. cordingly oppased S. 1008. Yet for some ment. They ask only for fair play. The reason for this inability of western reason unknown to me, there has been Their position was summarized by the fabricators to get anything more than a no such unanimity among the Members spokesmen of the Pacific Coast Steel small portion of the western market is of this body who represent the Western Fabricators Association in these words: not difficult to determine. The western States. I know, of course, that the west­ The Pacific coast prices are substantially fabricators have to pay a much higher ern Members who support this bill be­ the eastern prices plus actual transportation. price for their raw material-approxi.: lieve its passage is essential in order to It is the contention of the Pacific Coast Steel mately 25 percent higher-than their permit western companies to ship into Fabricators that steel sold on the Pacific eastern competitors. With this advan­ eastern markets. But I call their atten­ coast-steel produced on the Pacific coast, tage, the eastern firm is frequently able tion to the fact that no legislation is re­ I should say-should be sold based upon its quired to make the absorption of freight cost of productiCl_n plus a reasonable profit, to fabricate the item, ship it all the way whatever that may be, and not based upon to the west coast, and sell it at a lower legal. Freight absorption is now and has eastern prices plus transportation costs. price than the western firm, even though always been permissible under the law. (Hearings before the TNEC, pt. 20, pp. 10897- the western firm is just as efficient as the The only type of freight absorption which 10914.) eastern company. is illegal is the absorption which is part In this particular case the discrimina­ of a conspiracy or which results in dis­ The almost incredible amount of tion was probably even more extreme. crimination so great as to substantially phantom freight paid by western buyers The steel used by the affiliated fabrica­ lessen competition. The Federal Trade into the pockets of the eastern steel tors-which secured the bulk of the Commission has said time and again that companies can perhaps best be visual­ awards-:.may have been produced and freight absorption, per se, is not illegal. ized by a specific illustration, such as fabricated on the west coast. Since both The same thing was said by the Supreme the case of the American Fo:r;ge Co. of the mill and the fabricator are owned by Court in the Cement case, and more re­ San Francisco. This firm had formerly the same company-either United States cently, on August 22, 1949, by Judge purchased its raw stee~ f. o. b. San Fran­ Steel or Bethlehem-it is only· to be ex­ Parker in the decision of the Fourth Cir­ cisco from a local mill at $3 a ton under pected that the mill did not charge its cuit Court of Appeals in the Bond Crown the Pittsburgh base price. When the fabricating affiliate the $10 to $13 and Cork case. May I quote what the NRA was put into effect, the basing­ phantom freight which it most certainly Supreme Court has to say on this point: point system was tightened up. Thus, did charge the independent western fab­ Most of the objections to the order appear under the NRA code, the nearest basing ricators. In view of these circumstances, to rest on the premise that its terms will bar point for steel was Pittsburgh or Bir­ then, is it any wonder that the bulk of an individual cement producer from selling mingham, thus requiring the addition of the western business went to the eastern cement at delivered prices such that its net freight charge::; from one of those basing companies? return from one customer will be less than points to San Francisco. The American from another, even if the particular sale be Forge Co. complained to the American Mr. President, we have here a vicious made in good faith t..J meet the lower price of Iron and Steel Institute and to the NRA circle. Because the western steel users a competitor. The Commission disclaims that under the code the local mill from have to pay higher prices than their that the order can possibly be so understood. eastern competitors, they cannot get Nor do we so understand it. As we read the which it had been purchasing its steel­ anything like a fair share of the western order, all of its separate prohibiting para· a subsidiary of the United states Steel market. And because they cannot ob­ graphs and subparagraphs, which need not Corp.-had informed it that- tain the markets which are rightfully here be set out, are modified and limited by They cannot sell us any more of this ma­ theirs, they cannot grow. And because a preamble. This preamble directs that all terial at the _old price of $23 per ton. of the respondents "do forthwith cease and they cannot grow, the market for steel desist from entering into, continuing, co­ The complaint went on to add: and other raw materials in the West re­ operating in, or carrying out any planned And the price that they now ask, which ls mains restricted. And because it is thus .common course of action, understanding or $41.30 per gross ton, does not permit us to restricted, new stee~ mills, new cement agreement, combina ·~ion or conspiracy, be­ continue ln this business, as our eastern mills, and new mills to produce other tween and among any two or more of said competitors still pay $26 per gross ton !or types of raw materials are not built. It respondents and others not parties hereto, raw material. (FTC Report on Practices of is indeed a vicious circle of stagnation, to do or perform any of the following things." the Steel Industry Under the Code, p. 19.) Then follow the prohibitory sentences. It which was broken for the first time by is thus apparent that the order by its terms Since under the basing-point system the Supreme Court decision in the 1s directed solely at concerted, not individual they are thus denied the benefits of their Cement case. activity on the part of the respondents. natural location-that is, the benefit of Mr. President, the far West is going to (FTC v. Cement Institute et al., p. 42.) their adjacency to western steel mills, have to develop about a million new non­ And may I quote what Judge Parker western manufacturers and fabricators farm jobs during the next decade. If the basing-point system is restored and this had to say: have been able to secure only a small There has been a great deal of argument share of the western market. staggering phantom freight charge is re­ with regard to the practice of freight In his testimony before the TNEC, Mr. impased upon far western steel buyers, equalization. It should be noted in this con­ Loretz presented some striking evidence how, may I ask, is the Far West going to nection, however, that the question in this on this point. He showed that during be able to create these new jobs? How case is, not whether such practice may be the 18-month period between Ja:i;mary can it be ~xpected that western fiqns will enjoined as constituting of itself an unfair 7908 CON_GRESSIONAL RECORD-SENATE JUNE 1 trade practice, but whether it may be con­ nized by New · England spokesmen. and professiqnal economic judgment, sidered along with the other facts and cir­ There have been a number of develop­ have a proper bearing on the question. cumstances to which we have adverted as ments which make the development of The staff of this bank made last year, tending to establish the conspiracy and com­ at the request of the New England Coun­ bination in restraint of trade, which is the a New England steel industry an en­ only charge of the complaint. We think tirely practical and feasible objective. cil, an exhaustive study to ascertain the that it was properly considered for that The Boston Herald, for example, listed effects of the basing-point decisions on purpose. these developments on August 25, 1949 the New England economy. It con­ • • • • in a front page editorial entitled "Steel tended, among other things, th3.t a mere The practice unquestionably constitutes Age for New England." This editorial tripling of the now scant steel capacity evidence to be considered, along with other begins by stating that "a group of unre­ in New England would mean an increase facts and circumstances, as tending to estab­ lated events offer New England an op­ of about 50,000 jobs, counting both the lish the conspiracy charged; and that was portunity for prosperity such as we have new jobs in steel making and those the only purpose for which it was considered not enjoyed since the days of the clipper which would be created in fabricating by the Commission. (Bond Crown & Cor~ ships." The "events" are then treated industries dependent upon steel, and, Co. v. Federal Trade Commission, pp. 12, 14.) in the fallowing order: as the report to the New England Coun­ But if despite the clear and unequivo­ First, the decision of the Supreme cil put the matter-"In taking advan­ cal statements on this matter by the Court sustaining the Government's tage · of the opportunity, New England Federal Trade Commission, the Supreme power to prohibit the basing-point sys­ would be taking nothing from others Court, and Judge Parker, some Senators tem. that is rightfully theirs. Moreover, still feel that it might be a good idea Second, new technological develop­ thanks again to a happy combination to remove any lingering shadow of doubt ments in steel production. In this con­ of circumstances, New England has sev­ that might be in the minds of some nection two new developments are men­ eral tidewater locations which meet both western businessmen by passing this law, tioned. One, the new oxygenation proc­ the requirements for steel facilities and then I say to them that this very slight ess whereby the output of a given plant the strategic military requirements set and unnecessary clarification will be can be greatly increased; and, two, the forth by the National Security Resources gained only at the expense of conse­ continuous steel casting process which, Board"-Alfred C. Neal, The Effect of quences whlc~1 will be ruinous to the as I understand it, now makes new small the Basing Point Decision on the New West. The steel industry and other plants, requiring relatively small invest­ England Economy, September 18, 19"1:8. basing-point industries have made it ments, quite feasible within the fore­ What this opportunity for New Eng­ abundantly clear that as soon as this seeable future. land may mean in terms of growth of bill is passed, they will return to the The third new development listed is the free-enterprise system has been basing-point system. And if this is done, the recent discovery of important new summed up in the report of the Boston it means that the west coast will again sources of iron ore in Labrador and Que­ Federal Reserve Bank, prepared by Dr. be saddled with the bonds of the basing­ bec, which are, as the editorial puts it, Alfred C. Neal, from whtch I should like point system which it has been trying "almost at New England's back door." to quote: to get rid of for over half a century. Fourth, the decision to reduce the Lab­ For the last few months I have been en­ Mr. President, I now wish to shift rador-Quebec ores by electricity to gaged in some economic detective work, piec. clear across the country to another very sponge iron before shipment to the ing together facts from a collection gathered important region, New England, which United States. Shipment in this form over a good many years and combining them though not underdeveloped in the sense will save on transport costs, and make with what we have found out about the of the South and the West, is certainly particularly feasible the operation of New England economy and about the effects underdeveloped with respect to steel small, nonintegrated steel mills such as of the basing-point system. I think that we would be most suited to the needs of have succeeded in putting together most of c~,pacity. - the pieces in a massive jigsaw puzzle. When There is no region in this country New England. the pieces are fitted together they make a which has accompl!shed as much with And fifth, the prospective production picture showing opportunities for New Eng­ the resources at its command as New of iron as a by-product of a new titanium land unheard of for the last centt~ry at least. England. The venturesomeness of New smelter at Quebec, which promises a This picture shows far more than the basing­ England capital and the boldness of New source of some basic iron in the period point system and its effects and far more England enterprise are known through­ before the iron ore deposits are de­ than New England. out the world. Yet, New England has veloped. After some discussion of each New England has ah opportunity-and always been largely dependent on other of these developments, this editorial con­ there may not be another like it for half a cludes as follows: century or more-to accomplish far more areas for the steel which it uses in its than to advance its own prosperity, far more great metal-working industries. In All these factors do not assure a big steel than to make more jobs for its people and other words, New England has been industry to New England. They make such more business for its utilities and its rall­ an industry a "natural" for us, but it will not forced to pay the sort of tribute to the r~ads. It has an opportunity to do far more steel monopoly that it refused to pay come by itself against the inertia of the than to revive its ports and its shipping and country's present industrial set-up. There to make new opportunities for the invest­ to the English monopolies before the is already on foot a powerful move to have Revolutionary War. ment of its capital. It has a golden chance Congress restore the basing-point system, to do all of these things, but in addition Indeed, the resistance of the early set­ which, if successful, would tend to freeze ~t has an opportunity to strengthen greatly tlers in New England to the restrictions the present steel co~centration of the coun­ the bonds of mutually advantageous com­ against English laws prohibiting manu­ try. We need to combat that. merce with our Canadian friends, and to ex­ facturing in the colonies contributed in This present iron famine should be ex­ pand its foreign trade into the distant places no small part to the Revolution. And ploited to bring home to the steel com­ that Yankee captains reached by sailing ships panies the urgency of our requirements and over a century ago. It has an opportunity after our independence was won, New the growing demands of our hard-goods England enterprises continued to resist, to advance the cause of free enterprise and manufacture, now New England's most rap­ of free people that will give another halt to in less direct though nonetheless eff ec­ idly growing ind :~ try. We need to bring out those prophets of the doom of capitalism and tive ways, the monopolistic restrictions that this is the center of an enormous our way of life. of that day designed to deny to Ameri­ market. can firms the use of the industrial tech"'( This can be, as we have said, the greatest Although the opportunity is certainly nology then available in Europe. In­ thing for New England since the clipper there, as all these studies and reports deed, Samuel Slater's first factory was ships if w_e do not muff the opportunity. have conclusively shown, the hopes of a triumph of Yankee resistance to re-: The !actors mentioned in this editorial New England for a steel industry of its strictions devised to keep textile manu-: and their importance to ·the prospect of own will certainly be dashed if this bill facturing out of the New World which great industrial growth in New England is passed and the basing-point system is the monopolists of that day had per~ represent no mere editorial dreaming. restored. suaded their Parliament to legalize. On the contrary, these are essentially If we may reason from the past, we Today, there is absolutely no need for the same conclusions reached by the must conclude that under the basing. New England to continue to pay this Federal Reserve Bank of Boston and the point .system any new mill to be estab­ tribute for its steel. Today, New Engi­ New England Council · after a careful lished in New England would in all prob- land can and should have its own steel study and appraisal of all of the factors ·ability have to operate as a nonbase mill, industry, a fact which has become recog~ .which, acc.ording to the best business if for no other reason than that such a 1950 CONGRESSIONAL RECORD-SENATE ,7909 mill would probably be too small to en­ to an independent mill which decided to they did not wish to deviate in any way gage in a contest of local price cutting take this course of action; and which from the basing-point method of pricing. with the large producers, and conse­ found that it~ larger rivals promptly Let me quote briefly from the testi­ quently could be easily penalized and made it a punitive basing point: mony of so~e of these small-business punished for any attempt it might make The base price was driven down with rela­ men before the Senate Small Business to reduce prices in the New England tively insignificant losses to the producers Committee. Mr. Richard Kline, treas­ market. who imposed the punitive basing point, but urer of the Burke Steel Co., a steel ware­ Yet under the basing-point system, with heavy losses to the recalcitrant who house and industrial supply concern, the establishment of a nonbase mill in had to make all its sales on this basis. In stated that his firm had been in existence one instance, where a producer had made a New England would be of little benefit low public bid, a punitive base point price for over 100 years and had been buying either to the New England customer or was put on its plant and cement was reduced steel from the same companies for a long to the mill itself. .Differences between 10 cents per barrel; further reductions period of time, but that since the end of the high prices which local fabricating quickly followed until the base price at the war its supply had been cut off. plants would have to pay and the low which ·this recalcitrant had to sell its ce­ When asked why he could no longer se­ prices which their distant competitors ment dropped to 75 cents per barrel, scarcely cure steel, Mr. Kline stated: would pay would be as great as before; one-half of its former base price of $1.45. Within 6 weeks after the base price hit 75 We possibly exercised poor judgment in that is, prices to steel customers in New cents capitulation occurred and the recalci­ restricting our purchases to too few mills. England would be computed as the base trant joined a portland-cement association. We dealt with some of the larger mills, and price at Baltimore or Buffalo, whichever Cement in that locality then bounce! back to a large extent with a medium-sized mill. is the nearer, plus freight costs from We now find oursel.ves in the position where to $1.15, later to $1.35, and finally to $1.75. that mill is not interested or willing to ab­ these points. Hence the customers (FTC v. Cement Institute et al., p. 29.) sorb freight to make shipments into our would pay the same delivered price for · To allow companies to do that sort of area, as we size it up. (Hearings before the steel as before. The mill would be thing is what the sponsors of Senate bill Senate Small Business Committee, 80th physically situated in New England but Cong., pt. 42, pp. 4481-4482.) the New England steel buyers would not 1008 would like to inflict again upon the gain the benefits of its location. Nation. Similarly, Mr.Frank J. Daugherty, v:ce Likewise, under these circumstances, New England has indeed a great op­ president of the Gate City Iron Works, the mill would gain very few benefits portunity for the establishment of its Omaha, Nebr., a large warehouse firm in from its location. Under the basing­ own steel industry. It has access to the the Missouri Valley area, stated that be­ point system, a nonbase mill in New materials; it has the labor; it has the tween 1945 and 1947 his total receipts of England would have its local market capital; it has the marlt.et; and above steel had declined by nearly half "with shared fully by the distant steel centers all, it has the essential ingredient, for the decline still going on." Mr. Daugh­ of Pennsylvania and Ohio, with the re­ which New England has always been erty stated: sult that it could attain volume produc­ noted, of venturesomeness and risk-tak­ These dislocations started to talte place tion only by shipping west to distant ing. But while the opportunity is beck­ some 2 years ago. We are located in the customers near or beyond those States. oning and the reward is great, it should Missouri Valley area, where unfortunately be clear for the reasons I have presented there are few producing mills. Our principal Of course, such shipments would not be source there ls the Chicago area. • • • very profitable, since the New England that New England will never have the The freight absorption has got to the point mill would not only have to accept the slight.est chance in the world of realizing where they [the steel mills) maintain that relatively low delivered prices prevailing its hopes if the basing-point system is they take a loss in shipping as far east as the in Pennsylvania, Ohio, and nearby restored. . Missouri River (p. 4504). Mr. President, the restrictive effects of States, but in addition would have to ab­ The chairman of the Senate Small sorb the freight charges for the distant the basing-point system on economic ex­ pansion, which are serious enough dur­ Business Committee placed in the record shipments as well. a letter from a large steel company which It is, of course, conceivable, though not ing normal times, become even more acute during "boom" times. When the was in reply to a protest from a small very probable, that a new mill in New concern against being cut off from the England might be established as a base steel mills have plenty of customers they mill's schedule and thus being dropped mill. But unless such a mill wanted to naturally tend to ignore, under the bas­ ing-point system, the outlying custom­ into a "trackless desert." The letter bring down the wrath of the entire steel from the steel company is as follows: industry on its head, it would have to co­ ers whom they can supply only by ab­ sorbing freight. Why, indeed, should This will acknowledge your letter of operate in playing the game under the November 29. I find it diffi.cult to under­ basing-point rules. The whole purpose they try to supply such customers when stand your statement that we have dropped of this game is to keep steel prices suffi­ they can sell all of their output to nearby you into a trackless desert. ciently high to enable the mills in the tra­ buyers without absorbing freight? Actually we have issued ample warning ditional steel-producing centers to ship Since the end of the war, the inability in your own and other unfavorable freight into all markets and customers of many companies, particularly small territories from which we have gradually everywhere. This ·means that even firms, to obtain steel has been one of our been withdrawing on fiat-rolled steel. We principal economic problems. True are, as you know, still shipping to you and though the New England mill were a have unfilled tonnage on our books which basing point it would be able to obtain enough, the severity of the problem di­ will be shipped but we can no longer provide only a small share of its natural market, minished somewhat during the period of a regular place fol- you and others in your the greater part continuing to be held "disinflation" last spring and summer, area in our 1948 schedule. by the old-established mills in Pennsyl­ but with the revival of economic activity, As I told you over the phone, this is not vania and Ohio. the shortage has again become critical. an arbitrary action on our part. All mills The only way in which the New Eng­ In the last several Congresses there has are doing it with the ultimate aim of serving been a procession of small-business men their natural trading areas • • • land mill could avoid this result would I am sorry we cannot entertain your offer be for it to lower its base price. But this appearing before congressional commit­ to make a long-time agreement to pay us would lead to immediate retaliation, tees complaining of their inabiilty to f. o. b. mlll prices. Such arrangement with the established mills probably mak­ secure steel. To a very considerable ex­ would be uneconomic and unsound for you ing the New England mill a punitive tent these small-ousiness men have when the present rolled-flat stringency is basing point, lowering and lowering the placed the major responsibility for their over. price at that point until the New England difficulties on this very practice which we It would violate our established policy of mill pleaded for mercy. are discussing today-the basing-point selling only on published-price and basing­ system. They have testified that they point terms. It would likewise divert ton­ This is no idle speculation. It is ex­ nage from our home areas in which we are actly what happens when a smaller inde­ have offered to buy steel f. o. b. mill and ol;>liged to establi,sh ourselves firmly for the pendent mill gets tired of sharing its pay the cost of transportation them­ long pull (p. 4556). home market with its dista::it and larger selves, thereby relieving the mill of the rivals and tries to secure a greater share necessity of absorbing freight. But while The Senate Small Business Committee of that market by lowering its prices. the basing-point system existed, the of the last Congress made an exhaustive As just one example, let me quote from mills, according to these witnesses, con­ statistical survey of the steel mills in the Supreme Court decision in the Ce­ sistently refused to sell steel on this basis order to determine whether there was ment case the account of what happened for the simple and obvious reason that substance to these and other allegations r1910 CONGRESSIONAL RECORD.-SENATE JUNE .1 by small-business men. Between· 1940 see fit. If this bill is passed, the steel ducer, practically all, 1! not all, of the other and 1947 the committee found that ship­ companies will be given the same power iron and steel shippers strenuously opposed men:;s of steel sheets increased on the with, respect to the price of raw materials. any reduction. There was a good deal of discussion regarding water movements average of 18.8 percent. in contrast, Moreover, it is not to be assumed that down the Ohio and Mississippi Rivers which shipments to customers located within the railroads and the steel companies will followed the statement that practically all of the traditional steel-producing centers. act independently of each other. Rather, the iron and steel traffic to Mississippi River principally Ohio, western Pennsylvania, •the record shows that they have a long points and gulf ports was now .moving by Chicago, and Maryland, increased by no history of mutual understanding and ac­ water, although it was being sold on basis less than 44 percent-more than twice as cord. This is only to be expected since of rail rates. much as the increase for the Nation as many of the railroads and steel com­ On the basis of these quotations and a whole. Yet shipments to the rest of panies were organized originally by the othe:· evidence in the record, there c·an the country showed practically no gain same investment banking companies, and be absolutely no question but that it was whatever, rising only 2.7 percent. The their security issues have been handled the close and harmonious relationship committee summarized its findings in by. the same financial interests. If any­ between the northern railroads and steel these words: · one has any doubts on this question, let companies that prevented this reduction The power to govern the distribution of him examine the evidence placed by the from taking place. No one knows how steel ls the power of life and death in the Government into the record of the In­ often this sort of thing takes place. The economic world. The way in which it is ex­ vestment Bankers case now being con­ particular case which I have cited mere­ ercised determines which businesses grow ducted in New York City. and which do not, which industries expand ly represents one of the few which have and which do not, which States and regions Most of the cooperative efforts between come to light. But there is every reason prosper and· which do not. Yet, despite its the railroads and the steel companies are to believe that it is a common occur­ overwhelming importance, the power appears carried out discreetly by telephone or rence, particularly since both the north­ to have been exercised, for example, so that private conference without leaving be­ ern railroad and steel companies have the 12 areas which happened to be the major hind any telltale scraps of evidence. the same objective in common-that of centers of steel production received nearly But sometimes there is a slip and very maintaining the status quo, preserving half as much again. as their prewar ship­ revealing bits of information get into the ments of hot-rolled steel sheets, while the the price and rate structures as they are amount fl.owing into the entire remainder of record. Such i-s the case of the material and preventing the growth of industry the country stood practically unchanged, gathered by the Department of Justice everywhere which might possibly impair rising only 2.7 percent. relating to the successful effort just be­ the value of their existing investments. This means that in these other parts of fore the war of the northern railroads Mr. President, I wish again to call at­ tne country which comprise by far the vast and northern steel companies in prevent­ tention to the inescapable fact that majority of our States and cities, their ex­ ing southern railroads from offering 19w­ within the next 5 years the South will panded steel-consuming facilities either had er freight rates on steel to southern con­ to be closed down or operated at consid­ have to create 1,300,000 new nonfarm erably less than their full capacity. It sumers, a full account of which is to be jobs, and the far West over 1,000,000 such means that in these areas both small and found in the CONGRESSIONAL RECORD of jobs, over and above their 1947 levels. large firms were unable to secure their fair ·August 11, 1949, on pages 11262-11264. In Mr. President, I ask this question: How share of . postwar market expansion. It essence, the southern railroads proposed in the world is the South going to reach means a further centralization of productive to make substantial reductions in their this goal if the Birmingham differential activities in a few greatly congested indus­ freight rates on steel shipped from Bir­ is restored, if on some products even trial centers. (Senate Small Business _Com• mingham to New Orleans and other Gulf Pittsburgh-plus prices are imposed, and mittee, 80th Cong., "Changes in Distribution and river cities. The eastern steel pro­ of Steel, 194G-47".) if rail rates are charged for materials ducers, acting through the pressures they actually shipped by water or truck? Since the shortage of steel is again were able to put upon the Association of I ask:· How is the West going to with us-perhaps for an· indefinite American Railroads, were able to block achieve its goal of creating over 1,000,000 stay-the restoration of the basing-point the proposal of the Southern Freight As­ new jobs if western steel users have to system will only mean that countless sociation. The evidence clearly'reveals pay, for steel actually produced on the numbers of small-business men located that the northern railroads and steel west coast, phantom freight from one outside the immediate environs of the companies worked hand in glove in sti­ end of the country to the other, averag­ steel mills will again find themselves un­ tling this attempt by southern railroads ing $10 to $13 per ton·? able to secure the raw materials neces­ to help southern industry. I should like I ask: How is New England going to sary for their very existence. to call attention to a few of the salient achieve its goal of 50,000 new jobs, which If this bill is passed, we will again be quotations from letters and memoranda is almost within its grasp, if its potential confronted with the spectacle of plants of railroad officials. steel mills are to be subjected to the located in unfavorable freight territories On November 29, 1939, the Associa­ vicious attacks and reprisals which the - shutting down because they cannot get tion of American Railroads held a meet­ established steel interests in Pennsyl­ steel, while plants near the mills get ing to discuss this matter, which was de­ vania and Ohio will be in a position to more steel than they can use and sell scribed in a letter written on December make under the basing-point system? their surplus in the gray markets. 4 by Mr. Tilford, vice president of the Mr. President, I wish to conclude my Mr. President, we must be realistic in Louisville & Nashville Railroad, as fol­ discussion of this extremely important discussing this bill. We must realize lows: matter now before us with a few remarks that behind it lies the fundamental ques­ The discussion indicated very clearly that to my good friends from the traditional tion of power~the power to determine, the objections of the official territory roads steel producing centers of Pennsylvania,· as the Senate Small Business Committee (i. e., the eastern railroads) originated with Ohio, Illinois and Maryland. With very, has so aptly stated, "which businesses the northern shippers (i. e., the northern few exceptions, the Members of Con-. grow and which do not, which industries steel producers) now using water service to gress from these States have voted al-. expand and which do not, which States the · Mississippi River crossings and Gulf most solidly for this bill, believing that. and regions prosper and which do not." ports since the delivered prices would be affected by a reduction in the rates from its passage is essential for the welfare . If S. 1008 becomes the law of the land, Birmingham, the sales practice }?eing to use of their people. When the vote was that power will be placed squarely in the Birmingham base price, plus rail rate from taken on this conference bill in the House hands of a few great industrial corpora­ Birmingham. of Representatives, only two Members tions and a few great railroad systems, tied together by financial interests cen­ Later, a meeting was held between of the 33-man Pennsylvania delegation tering in Wall Street. In order to grow southern and eastern railroads and the of both parties voted against the bill. at all, any region must have two things: American Iron and Steel Institute, the Of the Chicago delegation, only one Rep­ resentative voted against it. None of fair transportation rat~s and fair prices results of which may be judged from a for the raw materials of industry. By memorandum from J. G. Kerr, chair­ the Maryland delegation voted against the passage of the Reed-Bulwinkle bill in man, Southern Freight Association, dated it. And on this side, the Senator from the Eightieth Congress, the railroads January 20, 1940: Pennsylvania was the author of the orig­ have been exempted from the antitrust With the exception of Mr. Baker, repre­ inal moratorium bill, and the Senator laws and are substantially free to make senting the Andrews Steel Co., and Mr. Mc­ from Maryland is handling the present railroad rates in any manner which they Bride, representing Kokomo, Indiana pro- legislation. 1950 CONGRESSIONAL RECORD-SENATE 7911 Mr. President, I want to make it per­ important one which will be before the great deal of confusion, requiring the fectly clear that I have the fullest re­ Congress at this session. question to be litigated· again in the spect for the views of the Members from So it is important that this issue be courts, I am unable to understand. these States. I have listened with great fully debated, that its implications be Mr. O'MAHONEY. Mr. President, I attention to their arguments. I believe fully understood, and that the resultant of course do not want to undertake to there is much in what they have to say. effects upon various parts of the United make another explanation now in the And I know that they have every reason States be fully appreciated by the Mem­ Senator's time. I am familiar with the to believe that in fighting for the passage bers of the Senate when they come to the Crown Cap case which the Senator has of this bill they are only trying to carry final vote on the pending conference cited. I cited it myself last fall. out what they regard as a mandate report. Mr. KEFAUVER. I know the Senator from the people of their States. Mr. O'MAHONEY. Mr. President, will did. Yet, I wonder whether they have con­ the Senator from Tennessee yield for Mr. O'MAHONEY. I cited it when sidered all the aspects of this very com­ one or two questions? the conference report was before the plicated problem? I wonder whether The PRESIDING OFFICER (Mr. Senate in a form which I feared did they have thought about this problem, Dou GLAS in the chair) . Does the S3n­ not adequately protect the antitrust laws. faced by the underdeveloped areas, of ator from Tennessee yield to the Senator But the unfortunate fact is that that creating 2,500,000 new nonfarm jobs from Wyoming? was the decision only of a circuit court. within the next 5 years? I wonder Mr. KEFAUVER. I yield. As I pointed out to the Senator from whether they have thought about what Mr. O'MAHONEY. I have listened Illinois and to the Senator from Louisi­ would happen if, as a result of the res­ with the greatest interest to the address ana, a week ago, when this debate began, toration of the basing-point system, the of the Senator from Tennessee today, the difficulty arises from the fact that underdeveloped areas are unable to meet and I have listened with great interest the Supreme Court of the United States this goal, and widespread. une:r..1.ploy­ also to the addresses delivered by the divided 4 to 4 in the Rigid Steel Con­ ment consequently develops. I wonder if Senator from Illinois [Mr. DouGLAS] and duit case, and in that case, because the they have thought about the migration the Senator from Louisiana [Mr. LONGl. Court divided 4 to 4, the decision of the of those unemployed workers which will It is my understanding from what has circuit court of appeals remained un­ undoubtedly take place into their own been said by these three opponents of disturbed. In that decision, the circuit great metropolitan centers, greatly in­ the conference report that in their opin­ court of appeals used language which tensifying, as I have . pointed out, the ion the independent use of delivered has filled many honest businessmen with tremendous problems already faced by prices or of freight absorption is not now the fear that the individual use of freight the great cities of the northeast. prohibited by law. When I use the word absorption, which the Senator from And then I wonder whether they have "independent," I use it as meaning the Tennessee, the Senator from Illinois, and thought about the question of markets action of a seller in absorbing freight and I all agree is not prohibited by law, for the products of their own industries. in making delivered prices, without any would nevertheless be a violation of the I wonder whether they have thought understanding, express or implied, with law. about the question of how their own pro­ any other seller to fix prices or in any The Senator from Tennessee has made ducers of all types of products are going way to offend or violate the antitrust a very eloquent and persuasive plea for to find markets if the underdeveloped laws. an expanding economy. I am for an areas are unable to expand, and if wide­ Is that the Senator's belief? expanding economy. I am for an ex­ spread unemployment develops. Do the Mr. KEFAUVER. Yes; that is my panding economy, to be brought about Members from these States really believe belief. by the entrance of new competitors. I that they can be an island of prosperity Mr. O'MAHONEY. I thought it was. say to the Senator in all ·sincerity that in a sea of unemployment? Then, Mr. President, may I ask the if this conference report should not be I wonder whether they have given any Senator this question: If, any seller in agreed to, the result would be precisely consideration to the fact, which history the United states were to adopt a de­ the reverse of what the Senator believes. has demonstrated time and again, that livered-pricing system or were to absorb It would close the door to expanding free the greater the trade between a wealthy freight, but if, at the same time, he did competitive enterprise, and, in the case and a poorer country, the greater is the not enter into any agreement, express · of steel, would give big steel complete prosperity not only of the poorer land or implied, with any other competitor to control. but of the wealthy country as well. fix prices, in the opinion of the Senator Let me ask the Senator another ques­ I wonder whether they hav~ given con­ from Tennessee, he would not be violat­ tion. sideration to the fact that the elimina­ ing the law; is that the Senator's Mr. KEFAUVER. Just a moment, tion of the basing-point system would opinion? please. Let me say in answer to the Sen­ tend to result in the expansion of the Mr. KEFAUVER. That is my opinion. ator as to what the state of the law is, fabricating or finished-goods industries Furthermore, I think there should, be no that all of us know that the Bond Crown 1n their own areas, thus providing great­ doubt about that. If there ever was any and Cork Co. had very capable attor­ er diversification of industry and, hence, doubt-which seemingly has caused all neys. Their attorneys of record were greater security against depression. this difficulty-it cert-ainly should have from New York and Baltimore, men who Finally, in view of the fact that the been removed by the opinion of the are well known as constitutional and legality of freight absorption, in and of United States Circuit Court of Appeals antitrust lawyers. Had they thought itself, has now become definitely estab­ for the Fourth Circuit, in the case of that the decision of Justice Parker of lished, I wonder whether they really re­ Bond Crown & Cork Co. against Federal the Fourth Circuit did not today repre­ gard this bill as essential in order to Trade Commission, decided on August sent the law of the land, and that they clarify the law. 22, 1949, by a very distinguished jurist, might have an opportunity of reversing Mr. President, in conclusion, I hope who incidentally is a distinguished mem­ his opinion in the Supreme Court, they statements by various Members of the ber of the Republican Party, the Chief had the necessary legal talent and the Senate in regard to the effects of enact­ Justice of the Fourth Circuit, Justice money, and, of course, would have ap­ ment of S. 1008, effects which definitely Parker. As the Senator from Wyoming pealed the case. This case stands as the will be against the interest of the fur­ very well knows, the issue there was pre- last word on the subject. ther development of the industries and . sented very clearly and squarely; and Furthermore, the Senator goes back of an increase of employment in most Justice Parker, speaking for a unani­ to the Rigid Steel Conduit case. I have sections of the country, will reach the mous court, held that the independent, never really seen anything in that case, people in those areas. separate absorption of freight or selling in the light of other decisions, which I know we have spent a long time de­ on a delivered-price basis, without en­ casts any doubt on the matter. Cer­ bating this issue; but from the stand­ tering into any conspiracy, express or tainly there is nothing in the Cement point of regional development and gen­ implied, was permissible under the pres­ case to indicate that the independent ab­ eral prosperity throughout the United ent law. sorption of freight, where it is not done States, from the standpoint of whether That is the law of the land, and why, by constructive or express conspiracy, is we are going to have employment or when the matter has now been settled on a violation of the antitrust laws. As a whether we are going to have unemploy­ that basis, anyone should want to amend matter of fact, the case implies very ment, I think this measure is the most the Robinson-Patman Act and create a strongly, and the entire purport of it is, .7912 CONGRESSIONAL RECORD-SENATE JUNE 1 that freight absorption, if done inde­ has been brought up, has said, in the not want to leave it in its present situa­ pendently and not systematically, is not first place, that he is "'erfectly satisfied tion, which brings about the result that a violation of the antitrust laws. with matters as they are, that he feels big companies, such as Big Steel, are able Mr. O'MAHONEY. Oh, the Senator that the proposed legislation is entirely to strangle the whole country. is quite wrong in that interpretation, be­ unnecessary, and that he does not think Mr. KEFAUVER. The Senator knows cause otherwise, what po:::sible reason it unlawful now to absorb freight. that a writ of certiorari is not granted could there be for four Justices oppos­ Mr. O'MAHONEY. That is a very by the Supreme Court of the United ing the other four? The issue upon different thing from saying that the pro­ States unless certain things happen. which they divided-- posed legislation is not necessary. I do That does not mean that four Justices Mr. KEFAUVER. The Senator is talk­ not say that.- of the Supreme Court have a different ing about the Rigid Steel Conduit case, Mr. KEFAUVER. The Senator, on view about it. not the Cement case. June 1, 1949, when the matter was first Mr. O'MAHONEY. They voted 4 to 4. Mr. O'MAHONEY. Oh, certainly; I brought before the Senate-if the Sena­ Mr. KEFAUVER. As to whether to am talking about the Rigid Steel Con­ tor will give me just a moment, I shall bring up the case. duit case. find where he said he thought it was Mr. O'MAHONEY. That is the thing Mr. KEFAUVER. After reading the unnecessary. which introduced the confusion and the Cement case as a whole, which of course Mr. b'MAHONEY. That was the day doubt. came later, I do not see how any indus­ I moved the substitution, was it not? Mr. KEFAUVER. The Federal Trade try could have become · alarmed about Mr. KEFAUVER. Yes. Even with­ Commission in the Rigid Steel Conduit the situation. As the Senator well out any protecting amendments of the case stated that independent absorption knows, the cement industry largely, and Robinson-Patman Act, the Senator said was not illegal. The opinion of the Su­ most of the units that want to absorb it was unnecessary at that time. I think preme Court does not create any confu­ freight, are at the present time doing I can read to the Senator where he said, sion whatever. so independently. They are selling on when it was first brought up, that he Mr. O'MAHONEY. Let us finish the a delivered-price basis wherever they thought the present state of the law was case we are on, and then we can go to think it is to their best interests to do very satisfactory, and that this proposed the other. Does not the Senator agree so. There has not been any great dis­ law was unnecessary. with me that the only difference between tress or confusion in the industry. But Mr. O'MAHONEY. No; what I said him and me is that he contends it is un­ if the position of the Senator from Wy­ then, and what I say now, and what the necessary for Congress to act because the oming prevails, of writing in a section Senator from Tennessee says now, is, Federal Trade Commission has said that 1 which will have to be int~rpreted in namely, that the antitrust laws do not the individual use of delivered prices and the light of numerous laws, and a sec­ prohibit the individual use of delivered freight absorption is not a violation of tion 2 which is in direct contradiction prices-of freight absorption. But, if the law, whereas I say that though the of section 3 we are then going to have the Senator will bear with me only for Federal Trade Commission has so de­ confusion. 'u the Senator is trying to a moment, he will understand why I say clared, there is so much doubt in the eliminate confusion, it seems to me we that the confusion has reached the Su­ Rigid Steel Conduit case that we should have the matter pretty well settled now, preme Court, when the Supreme Court say by law what the Senator from Ten­ and we are going to make only for confu­ divides equally, 4 to 4, on a circuit court nessee, the Senator from Wyoming, and sion by adopting the pending conference case in which the court used this lan­ the Federal Trade Commission agree is report. guage-and I now quote from the Cir­ the law? Mr. O'MAHONEY. Mr. President, will cuit Court of Appeals, 168 Fed. 2d, at Mr. KEFAUVER. The only difference the Senator yield? page 181, the Rigid Steel Conduit case- between the distinguished Senator from Mr. KEFAUVER. No; I want to an­ In the light of that opinion...... ,... Wyoming and me is that he said, in the swer the other point made by the dis­ That is, the Cement case; that is the first place, that he did not think there tinguished Senator. The Senator made language of the court- was any necessity for the legislation. one other point, namely, that many we cannot say the Commission was wrong Mr. O'MAHONEY.. No; I did not say people are worried about what the state in concluding that the individual use of the that. of the law is. When we have the definite basing-point method as here used does con­ Mr. KEFAUVER. I shall get the state­ statement of the members of the Fed­ stitute an unfair method of competition. ment and read it to the Senator. eral Trade Commission that they feel Mr. O'MAHONEY. What I said, and that the independent absorption of There was a declaration which seemed I repeat, was that, of course, I believe freight, where there is no express or con­ to imply that the individual use of that individual delivered pricing and structive conspiracy, is not illegal; when freight absorption was found by the freight absorption are not illegal. we have a great many distinguished Federal Trade Commission to be a viola­ Mr. KEFAUVER. The Senator is lawyers saying the same thing; and tion of the law, in being an unfair trade willing to take a chance on inflicting when we have a former member of the practice; and I say-- upon the South the Birmingham differ­ Federal Trade Commission, Mr. Freer, Mr. KEFAUVER. But I say the Fed­ ential which will again retard, if not de­ saying the same thing, then I cannot see eral Trade Commission, in its own opin­ stroy, the economic and industrial de­ that there is such a great demand on ion in the Rigid Steel Conduit case, and velopment of a great section of the coun­ the part of industry or on the part of upon petition for reconsideration of the try; he is willing to take a chance on anyone else merely to clarify the law. Rigid Steel Conduit case, said, by unani­ imposing this iniquitous basing-point I am thoroughly convinced, and I have mous decision, that it had held in the system upon his own territory and upon an idea that, since the Senator is satisfied Rigid Steel Conduit case that independ­ New England and to forego building an with the present status of the law, he ent, separate absorption of freight was expanding economy, affording employ­ must feel likewise, that there are some not a violation of the law. I have the ment to our increasing population, be­ people who are interested in making this opinion of the Federal Trade Commis­ cause some lawyer on the Federal Trade change in order to get their foot in the sion upon the rehearing of that very Commission is of the opinion that the door, for the purpose of weakening and case. Of course, the Senator is familiar law is not clear. The Senator from Wyo­ · breaking down and destroying the eff ec­ with it. ming is fairly well satisfied that the tiveness of the antitrust laws. Mr. O'MAHONEY. I am familiar latest expression of our courts malces it Mr. O'MAHONEY. I think the Sena­ with it. But the Federal Trade Com­ very clear, and yet he wants to run this tor from Tennessee is well enough aware mission is not the Supreme Court; and risk. of my opinions and my views on the anti­ when four members of the Supreme Mr. O'MAHONEY. I do not believe trust laws at least to concede to me that Court say that individual freight absorp­ there is any risk involved. I think vie I would not willingly lend my assistance tion may be illegal, then I say it is in­ cannot fail to do everything within our to the creation of any loophole whereby cumbent upon the Congress to declare power to make the law clear, because if monopolistic p:;:actices could be rein­ what the Senator from Tennessee, the we do not do so, the advocates of con­ stituted. Senator from Wyoming, and the Federal centration of economic control, by sowing Mr. KEFAUVER. Yes, I say that. Trade Commission agree is the law. I abroad among honest independents, But the Senator, when. this matter first want to promote the investment of pri­ those who seek to engage in competition, came up, and in every discussion when it vate capital in expanding business. I do a doubt as to whether their money can 1950 CONGRESSIONAL RECORD-SENATE 7913 safely be invested, will prevent the ex-­ Mr. O'MAHONEY. It was not my I proposed on the floor to the effect that pansion of our economy and will create amendment. I an telling the Senator it shall not substantially lessen competi­ the very unemployment which the Sen­ that it is not necessary, because the tion. That was a very weak amendment. a.tor fears. opening sentence of 2 (b) is as follows: The Carroll amendment improved it. Mr. KEFAUVER. I should like to read Upon proof being made, at any hearing on The conferees struck out both proposed to the Senator what he said on June 1, a complaint under this section, that there amendments, showing that they wanted 1949, relative to the Cement.case: has been discrimination· in price the effect to amend the Robinson-Patman Act and Mr. LucAs. Do I correctly understand that of which upon competition may be that do away with one of the most whole­ the Senator is quoting from the Cement case? prohibited by the preceding subsection. some antitrust laws we have on the stat­ I say it is already there. I do not be­ ute books. The only thing the conferees That was after the Senator from Wyo­ put in was a restatement of the Sherman ming had stated that it did not mean lieve in surplusage. That is what pro­ motes confusion. Antitrust Act, which has been the law that independent absorption was in since approximately 1880. We have violation of the law. Mr. KEFAUVER. Which Carroll amendment was the Senator reading? nothing more now than a great many Mr. O'MAHONEY. Yes. I think the case 1a Mr. O'MAHONEY. The amendment words which mean nothing. They do good law-- which Representative CARROLL pre­ not have anything to do with the good Mr. O'MAHONEY. I do. sented. Here is the amendment offered faith defense. If the intention is to pre­ Mr. KEFAUVER. I read further: by the Senator fi:om Tennessee: serve the Indiana Standard Oil decision, In my opinion, all of the interpretations Other than a discrimination· which will why not say "which may not lessen com­ of the law 1n that case should be approved substantially lessen competition. petition" or "provided it does violate the by the Congress of the United States if we provisions of the Robinson-Patman a.re to maintain what we call the free com­ That was stricken out in the House, Act?" petitive system. ' and in lieu thereof came the Carroll The point is that the conferees say: amendment. Mr. O'MAHONEY. Again I say it. Provided further, That a seller.may justify Mr. KEFAUVER. Why does the Sen­ a discrimination- Mr. KEFAUVER. If the Senator is ih ator want to take away one of the pro­ agreement with the law, why take a. hibitions of the Robinson-Patman Act? The old Birmingham-plus system­ chance on wrecking the Robinson-Pat­ Mr. O'MAHONEY. I do not. It is by showing that his lower price or the fur­ man Act and destroying the economy of here. Let me show it to the Senator-- nishing of services or facilities to any pur­ many sections of the country by reinsti­ The PRESIDING OFFICER (Mr. HILL chaser or purchasers was made in good faith tuting the basing-point system? in the chair). · The Senator from Ten­ to meet an equally low price of a competitor, Mr. O'MAHONEY. My answer is that or the services or facilities furnished by a. nessee has the floor. Does the Senator competitor. · there is nothing in the conference report from Tennessee yield to the Senator from which would wreck the Robinson-Pat­ Wyoming? In other words, Mr. President, as Mr. man Act. Mr. KEFAUVER. I do not mind yield­ Elliston has said, the Indiana Standard Mr. KEFAUVER. That is what the ing for a question if I can have an oppor­ Oil case would be decided in favor of the Senator thinks, but many other persons tunity to answer it once in a while. Standard Oil Co. by the Congress of the do not think so, including the Federal Mr. O'MAHONEY. I point out, and United States if we passed a bill with Trade Commission. the Senator from Tennessee may · 1ook that kind of language in it. Mr. O'MAHONEY. I have never yet over my shoulder if he desires, that here In order to placate or make Members seen a statement by anyone in the Fed­ are the precise words: of the Senate feel a little better, or per­ eral Trade Commission, even by former Discrimination in price the effect of which haps make the public feel a little better, Commissioner Freer, whose letter upon upon competition may be that prohibited the conferees have included an amend­ thiS matter I have analyzed-I analyzed by the preceding subsection. ment which says: it in a letter to Mr. Rankin Peck, of Those words are from the conference And this may include the maintenance, Michigan-which did not, in my opinion, report. above or below the price of such competitor, support what we are trying to do. We of a differential in price which such seller Mr. LUCAS. Mr. President, will the customai:ny maintains. are seeking to maintain a. competitive Senator yield? system, but the great campaign alleging The PRESIDING OFFICER. Does the Of course, they have been maintain­ that we are upsetting the Robinsoii­ Senator yield to the Senator from ing the Pittsburgh-plus system with re­ Patman Act has emanated chiefly from Illinois? spect to the South, West, and New Eng­ the Retail Druggists Association, which Mr. KEFAUVER. Here is the answer land for a long time, but the conference was the sponsor of the Miller-Tydings to the Senator from Wyoming. In the report says: law, the sole purpose of which was to first place, section 3 has no place in the - Provided, That this shall not make lawful eliminate competition. bill. It does not deal with basing points any combination- Mr. KEFAUVER. If the Senator at all. It was placed in _the bill for a wants to protect the Robinson-Patman We are not talking about combina­ reason which I have never been able to tions. We are talking about the good­ Act and also the so-called buying-in­ understand. It was placed there by the good-faith provision, why does he recom­ faith provision of the Robinson-Patman Senator from Wyoming on the in­ Act- mend that the Carroll · amendment, sistence of somebody. It has nothing which says: to do with basing points. Its only pur­ conspiracy- Provided, however, Tha~ such sales shall pose is to amend the Robinson-Patman A conspiracy has been a violation since not be 1n violaton of the provisions of this Act, in order to enable manufacturers to the Sherman Act was enacted- section-- maintain a differential and to do away or collusive agreement, .or any monopolistic, Mr. O'MAHONEY. That is not what with the decision in the Indiana Stand­ oppressive, deceptive, or fraudulent practic~. the Carroll amendment said. Let me ard Oil case. It has nothing to do with That has also been a violation of the read to the Senator· the Carroll amend­ basing points whatsoever. However, the Jaw for a long time. ment. The Senator cannot debate a section is in the bill, and if the section is to stay in the bill nobody should object In other words, conferees have put technical question by misquoting the language in the bill which does not refer amendment. The Carroll amendment to a provision that certain tpings can be done only if no violation occurs of a to the subject matter under discussion. provided as follows: The question is whether the Robinson­ If the discrimination is not such that its sound, fundamental antitrust law of the Nation. Patman Act amendment of 1938, which effect upon competition may be that prohib­ did away with the absolute good-faith ited by this section. Mr. O'MAHONEY. That was put in by the conferees·, but in a different place. defense is to be preserved. The oratory The reason it should not be in the law Mr. KEFAUVER. It was not put in placed in the bill does not deal with tpe is because the very same language is by the conferees at all. subject matter at all. Mr. Elliston, of already in it. Mr. O'MAHONEY. Yes. _ the Standard Oil Co. of Indiana, was Mr. KEFAUVER. If it is in the law, Mr. KEFAUVER. They would not eminently correct when he said that why does the Senator want it changed? even accept the weak amendment which · the Standard Oil case would be decided J914 CONGRESSIONAL RECORD-SENATE JUNE 1 1n favor of the Standard Oil-Co. by Con­ my word that tomorrow we shall dispose feel that I have to follow that course. gress, not by the Supreme Court, if this 'of the pending conference report even On another occasion not long ago I said .bill should be enacted. If that is what ·if it means sitting until midnight to do we would have a night session, and -some Senators want, they will at_ least know it. I hear my good friend from Texas-- of the Senators on both sides of the aisle that some Members of Congress have Mr. CONNALLY. I am applauding the canceled dinner engagements and other tried to warn them about it. majority leader. engagements. When we got here no Mr. LUCAS. Mr. President, will the Mr. LUCAS. I thank the Senator Senator wanted to have a night session, .Senator_yield? from Texas for applauding me. After all, ·and finally Senators convinced me that The PRESIDING OFFICER. Does the we must get along with the business of -perhaps it would be better not to have Senator from Tennessee yield to the the Senate. We cannot wait for. one one. I cannot break· my word as to the Senator from Illinois? Senator to return on Monday and an­ session tomorrow evening. I am with Mr. KEFAUVER. I yield. - other on tomorrow or the next day. I as­ the Senator in his position on the con­ Mr. LUCAS. I should like to ask the ·sume that some Senators will be absent ference report, but the opponents of the able Senator from Tennessee how much ·tomorrow who will be able to return by report are going to keep arguing against longer he expects to discuss the confer­ Monday. Undoub.tedly some Senators the report until they lose the majority ence report. will be absent on Monday. I believe the leader. · Mr. KEFAUVER. I desire to make a Senators from Connecticut will be ab­ Mr. KEFAUVER, Will the majority .point of order with reference to the con­ sent tomorrow . leader let us know about when he is go­ ference report. I assume that I should Mr. KEFAUVER. At what time is the ing to be lost? make my point of order when the Presi­ Senator from Maryland leaving on Mr. LUCAS. They will lose me pretty dent of the Senate is in the chair. How­ Tuesday? soon if they continue to argue about the ever, I have concluded my remarks. Mr. O'CONOR. I am required by ap­ ·conference report and def er the time Mr. LUCAS. Aside from making his . pointment of the President to go to when we can vote. In all my service in point of order when the Vice President Geneva, and expect to leave early on the Senate I have never seen as much is in the chair tomorrow, the Senator Tuesday afternoon. argument about a subject as has been from Tennessee has concluded his re­ Mr. KEFAUVER. I wonder if we made with regard to the pending busi­ marks on the conference report, has he? could not vote at 1 o'clock on Tuesday? ness. I realize the bill is important, I Mr. KEFAUVER. Yes. Mr. LUCAS. That would be incon­ am not underestimating its importance, Mr. LUCAS. I should like to ask the venient for my good friend from Penn­ but the arguments have been stated over S::mator from Tennessee if he is in a sylvania [Mr. MYERS]. Certainly ·the and over again, and every Senator knows 'position to advise the Senate whether whip should be here. After all, it is his exactly how he is going to vote. , Sena­ it is possible to enter into a unanimous­ measure. He is the author of the original tors cannot change any votes by their consent agreement to vote on the con­ bill, which sought a moratorium on this arguments. They can make a record, of . f erence report sometime late tomorrow matter. Now we have more than a mora­ course, but they have inade their records afternoon. torium, I am afraid. once or twice, and in some cases three Mr. KEFAUVER. Mr. President, I Mr. KEFAUVER. I want to say to the times, and it seems to me they should understand that the distinguished Sen­ distinguished majority leader that I ex­ -let the Senate vote on the report. That ator from Louisiana [Mr. LONG] is ill, pected to go to Tennessee late tomorrow is my position, and I am serious about it. and perhaps will not be able to return afternoon. Incidentally, I had not heard I want to finish with the conference re­ to the Senate until Monday. I do not about a night session. port tomorrow, and proceed with other know what negotiations have taken Mr. WHERRY. Mr. President, will the business of the Senate next week. ·place. So far as I am concerned, I be­ Senator yield? Mr. President, this conference report lieve Monday would be a better day on Mr. KEFAUVER. Yes. on the basing-point bill has been pend­ which to vote, because perhaps by then Mr. WHERRY. Will the Senator ing some time. The senior Senator from the Senator from Louisiana will be pres­ yield so that I may propound a question Louisiana [Mr. ELLENDER] has been sit­ ent. to the distinguished majority leader? ting here for weeks waiting to move the Mr. LUCAS. Monday is a bad day for Mr. KEFAUVER. I yield. consideration of the bill increasing the a number of other Senators; indeed, Mr. WHERRY. I do not know wheth­ capital stock of the Commodity Credit . every time we try to get a unanimous­ er the majority leader had actually asked Corporation. The Secretary of Agricul­ consent agreement the day suggested is a or whether the distinguished Senator ture has spoken to me about that, and bad day for some Senator. from Tennessee had actually refused to he has spoken to the Senator from Mr. KEFAUVER. Would Tuesday be · vote at 4 o'clock tomorrow afternoon. Louisiana and the other members of the satisfactory? Is there objection to that? committee about it. ·It is an important Mr. LUCAS. The Senator from Mary­ measure, and there will probably not Mr. KEFAUVER. Until I have had an be much opposition to it. The senior land [Mr. O'CoNoR], who is tremendously opportunity to confer with someone interested in this measure, is leaving for Senator from Delaware [Mr. WILLIAMS] who knows about the situation of the is going to speak against it. We have the Old World on Tuesday, and he would Senator from Louisiana [Mr. LONG], I like very much to be here to vote on the never been able to get it before the conference report. Does the Senator should have to object. Senate. There are other measures which from Tennessee have any other sugges­ Mr. LUCAS. I plead with my friend are important, just as important as the tion? the Senator from Tennessee to talk to pending conference report, and perhaps Mr. KEFAUVER. Does the majority Senators who are vitally interested in more so. leader suggest that we should wait until this measure from his viewpaint, in order I should like to have the Senate get the distinguished Senator from Mary­ to ascertain from them if we cannot along with its business. We will have land returns? . unanimously agree to vote on the confer­ been practically a week on the confer­ Mr. LUCAS. No; not at all. Mr. Presi­ ence report tomorrow afternoon at 4 ence report by the time we finish its dent, the Senator from Illinois gave no­ o'clock. - Such an agreement would give consideration, and •I hope that the Sena­ tice a week ago that we would finish con­ the Senator from Tennessee time to tor from Tennessee and other Senators sideration of the pending conference re­ leave for his home State. We must make who are opposing the report will get to­ port some time this week. I believe it progress with the legislative business of gether and agree on a time for a vote was on yesterday that I gave notice to the Senate. tomorrow, say 4 o'clocl{, so that we will -the Senate that we would hold a night Mr. KEFAUVER. If the Senator will not have a night session. But I promise session in order that we may finish con­ permit, if it would be possible to vote that we will have one if we do not get -sideration of the conference report this early Tuesday afternoon, I would even through with 'the report, and we might week. I advised the Senate that we be willing-- · have a Saturday session. · would hold a night session tomorrow so Mr. LUCAS. ·1 am not going to agree Mr. WHERRY. Mr. President, will -that we could come to some conclusion to that unless the Sena,te forces me, the Senator from Tennessee yield? · with respect -to voting on this matter. through some sort of a , t'o have Mr. KEFAUVER. I yield to the Sena­ I should like not to hold a night session the vote on Tuesday. I have advised the tor from ·Nebr.aska. if it can be avoided. However, Mr. Presi­ Senate twice, and I am not going to re­ Mr. WHERRY. I should like to get dent, I hope the Senate will take me at treat from the position I have taken. I some information from the majority 1950. CONGRESSIONAL RECORD-SENATE 7915 leader. There has been a good deal of any one Senator should st~nd 1n the way vote ·put off until Tuesday. Such a pro­ discussion on both sides as to what of a unanimous-consent agreement. If posal is simply a little more than I can might be a suitable time for a vote, and I · a 'unanimous-consent agreement can be understand, Mr. President, especially in assure the distinguished majority leader .secured for Monday, I will cancel my · view of the fact that we have been so that so far as the Members of the Senate plans and be here. I would not ask the long debating the measure. Certainly "if on this side of the aisle are concerned, Senator from Tennessee to pair with me, some Senator wants to begin a filibuster tomorrow at any hour, 3 or 4 o'clock, or but I really believe that there will be no on the conference report tomorrow after­ any hour that may be acceptable to him, changes in any votes, and I see no rea­ noon and filibuster tomorrow night, I am will be agreeable to them. But if no son why we cannot vote tomorrow. willing to remain. I think, however, we agreement can be made for Friday, I am Many Senators will be absent tomorrow, ought to vote on the measure tomorrow quite satisfied that the hour of 5 o'clock and many will be absent Monday. night. I hope we can do so. on Monday would be very acceptable to Mr. KEFAUVER. The Senator knows Mr. DOUGLAS. Mr. President, will Senators on this side of the aisle. the junior Senator from Louisiana lMr. the Senator yield? I agree with the majority leader, and LoNG] is ill. Mr~ KEFAUVER. I yield. I think we should give him our support. Mr. MYERS. I understand the junior Mr. DOUGLAS. I may say that we This conference report has been debated, Senator from Louisiana is unwilling to have just heard from the junior Senator it has been kicked around the better enter into any agreement except for a from Louisiana [Mr. LoNGl. He is very part of a year, and to my way of think­ vote Tuesday. Some Senators talked to 111, but he is going to fiy here in order to ing no votes will be changed. I had the Senator from Louisiana this after­ make an effort to be present on the fioor. hoped that the distinguished junior noon by telephone, and it is my under­ He has authorized me to say that in Senator from Illinois [Mr. DOUGLAS] standing that the only agreement he was order to facilitate business he is ready and also the junior Senator from Ten­ Willing to enter into today was to vote · to enter into an agreement to vote at nessee [Mr. KEFAUVER] might have been some time Tuesday. From that infor­ 4 o'clock tomorrow. He is doing this at able, if there is to be a vote tomorrow, to mation, it would seem to me that he great personal sacrifice. I believe that agree to it this afternoon, because it is would still object to a vote on Monday. for the sake of the RECORD it should be highly important, and it will be a . real Mr. KEFAUVER. I think the junior indicated that the Senator from Lou­ courtesy to many Senators, if a vote is Senator from Illinois and I might be isiana has not in any way tried to hold to . be taken tomorrow, to have the willing to take the responsibility of en­ up the proceedings of the Senate, or to announcement made this afternoon. tering into a uninimous-consent agree­ filibuster, nor is he interfering with the I appreciate the fact that the ma­ ment for a vote at 5 o'clock Monday, ordinary procedure of business. He is jority leader has already said he intends feeling that the junior Senator from getting up from a sick bed and coming to hold a session Friday afternoon and Louisiana will be back by that time. here when he is in no condition to come. night, but even though that session is Mr. MYERS. Would the Senator He is doing so in an endeavor to facili­ carried to a late hour, it still does not make it 4 o'clock? tate and not to delay the business of the mean there is sure to be a vote on the Mr. KEFAUVER. Very well. Senate. report. _ Mr. WHERRY. Mr. President, since Mr. KEFAUVER. In response to the I go along with the majority leader in the majority le~der has attempted very suggestion of the majority leader that suggesting to the distinguished Senator earnestly to get a vote on Friday, some we may be entering into a filibuster, I from Tennessee that if there ls any of the Senators on this side say that will state that we have stood ready all chance of getting a vote some time to­ Senators on the other side of the aisle along to agree to a unanimous-consent morrow afternoon, and we can enter into should exhaust every effort to get a vote agreement for a vote to be taken any a unanimous-consent agreement to that on Friday before an agreement is reached time Monday, and would have agreed to effect, it would be well to inform the as to any other day. It was my thought a vote being taken on Friday except for Members of the Senate. that we should let the majority leader the 1llness of the Senator from Louisiana, Mr. LUCAS. If the Senator from know that, before entering into a unani­ who I know the majority leader would Tennessee will yield, I should like very mous-consent agreement for any other want to be present when the vote is much, when the Senate assembles to­ day, in view of the fact that a session taken. I understand the Commodity morrow, to be able to get a unanimous­ has been called for tomorrow night. Credit Corporation measure is in the consent agreement, and I am sure the Mr. KEFAUVER. In the absence of Senate and perhaps can be brought up Senator from Tennessee will try to bring the junior Senator from Louisiana, I for consideration in the interim. that about. have an idea that it may be very diffi­ The PRESIDING OFFICER. Permit Mr. KEFAUVER. I know it would be cult to get an agreement to vote even the Chair to make a statement. The of some convenience to Senators if we late tomorrow night. Chair will advise the Senate that it is could get a unanimous-consent agree­ Mr. LUCAS. Mr. President, other not necessary to have a quorum call be­ ment now. Would the majority leader Senators are away, and the secretary to fore reaching an agreement for final vote be willing to propose that we have a the majority just advised me of a Sen­ on the conference report. In view of the unanimous-consent agreement to vote ator who could not be here Monday, and fact that the Senator from Tennessee has Monday at 5 o'clock? would object to the unanimous-consent advised the Chair that he proposed to Mr. LUCAS. I cannot do that because agreement if he were here. Obviously, make a point of order, the Chair feels of the Senator from Pennsylvania, who is we would have to have a quorum called that he ought to advise the Senator from the author of the bill and who must be before we entered into an agreement of Tennessee that if a unanimous-consent away on Monday. the kind suggested, so I presume we had agreement is entered into definitely to Mr. KEFAUVER. I will pair with the better let the matter go over until to­ vote on the conference report at a cer­ Senator from Pennsylvania, if that will morrow, and when the Senate convenes tain time tomorrow, the point of order help the situation. tomorrow we will try to get a unanimous­ cannot be made unless provision for it Mr. LUCAS. What h-0ur did the Sen­ consent agreement. is contained in the agreement. ator suggest? If the Senator from Tennessee wants Mr. LUCAS. Mr. President, I would Mr. KEFAUVER. Five o'clock. the debate continued tomorrow night, include in the unanimous-consent agree­ Mr. MYERS. Mr. President, will the which he indicates he does, in order to ment-- Senator from Tennessee yield? have a vote the following Monday or The PRESIDING OFFICER. That-the Mr. KEFAUVER. I yield to the Sena­ Tuesday, that is one thing. I cannot, point of order be in order. tor from Pennsylvania. however, quite understand the Senator's Mr. LUCAS. That the point of order Mr. MYERS. I would much prefer to position. My understanding is that 17 may be presented by the able Senator vote tomorrow if possible. I have made Republicans will be absent tomorrow. I from Tennessee. If the decision on the several engagements for Monday, think­ heard a statement to that effect a few pOint of order is adverse to the Senator ing the bill would certainly be out of the moments ago. It seems to me that to­ from Tennessee, that we then proceed to way by Friday. I had no thought what­ morrow will be just about as good a time vote at 4 o'clock in the afternoon, the soever that we would be debating the as Monday to vote. There is one Sen­ time -to be controlled by the able Senator bill all this week and still not be able to ator who says in one breath that he can from Tennessee [Mr. KEFAUVER] and the vote on it. Of course, if necessary I will be present tomorrow, if necessary, so I able Senator from Maryland [Mr. have to cancel my plans. I do not think have been told; yet he wants to have the . O'CONOR]. 1916 CONGRESSIONAL RECORD-SENATE JUNE .1 The PRESIDING OFFICER. Is there ·Louisiana [Mr. LoNGJ, and other Sena­ have been so ably presented by many of objection to the request of the Senator tors-- my fellow Senators. from Illinois? · Mr. WHERRY. How about the minor­ On last Thursday the junior Senator Mr. KEFAUVER. Mr. President, re­ ity leader? from Maryland summed up admirably serving the right to object, I wonder if Mr. LUCAS. I will thank the minor­ the reasons why the Senate should ap­ the majority leader would suggest that ity leader, too. He does occasionally co­ prove the conference report. the Senate meet at 11 o'clock in the operate. If any doubt remained in my own ·morning, and vote at 2 o'clock, because I The PRESIDING OFFICER. The mind concerning the possible adverse have an engagement to make a com­ Chair understood the request of the Sen­ effects of Senate bill 1008 on small busi­ mencement address at the University of ator from Illinois also to include that ness, it was promptly dispelled by the Tennessee, Middle Tennessee Branch, to­ there be an equal division of time; for arguments made by our distinguished morrow night, and it is necessary, if I am the time to be controlled by the Senator colleague, the senior Senator from Wyo­ going to be there, to leave at 2: 35 in the from Maryland [Mr. O'CoNoRJ for the ming [Mr. O'MAHONEY] who, all his life, afternoon. proponents, and by the Senator from has been an active foe of monopoly. He Mr. LUCAS. I should be delighted to Tennessee [Mr. KEFAUVER] for the op­ would be the last to support proposed enter into an agreement to that effect, ponents. legislation which would be harmful to assuming it is agreeable to my colleague Mr. KEFAUVER. Mr. President, al­ small business. from Illinois. though I would be very happy to con­ I am in full agreement with the senior Mr. DOUGLAS. That is agreeable. trol the time, inasmuch as the distin- Senator from Wyoming, who said: Mr. WHERRY. Mr.·President, will the . guished junior Senator from Louisiana I think it is of such great importance to Senator yield? has been so vitally interested in the leg­ have the businessmen of the Unite.ct States Mr. KEFAUVER. I yield. islation, I think the control of the time know that freight absorption and delivered Mr. WHERRY. Mr. President, if no is an honor which is due to him, so I prices are not a violation of the law, I be­ lieve we should not pay attention to what · other way can be found by which-we can ask that the unanimous-consent request I think are fantastic criticisms of section 2 enter into an agreement for taking the include the provision that the time on of this act. vote, I shall take upon me ·the responsi- behalf of the opponents be controlled by . bility of saying that I shall not object. I the junior Senator from Louisiana . I also agree with the senior Senator have waited for several Senators, two or Mr. LUCAS. I modify my request ac­ from Wyoming when he said: three of whom are flying back to Wash­ cordingly; that the junior Senator from I am saying to the Senator and to all oth· ington, but they will not be able to be Louisiana control the time on behalf of ers who will listen, and to all who will read, presen.t by 2 o'clock. However, rather the opponents. that the conferees did a whale of a good job when they brought section 3 back on the than to delay the vote, and so that we The PRESIDING OFFICER. With­ fioor. They brought it back in a form which may secure a vote, I shall not object. I out objection, the time will be equally will do no injury to small business, but will will say to the majority leader that while divided, half the time to be controlled do a great deal of good. it is a matter of disappointment to one by the junior Senator from Maryland or two Senators, I will take the full re­ [Mr. O'CoNOR] and the other half to be Mr. President, it is a fact that deliv­ sponsibility of entering into the agree­ controlled by the junior Senator from ered prices have fostered competition. ment. Louisiana [Mr. LONG]. The f. o. b. plant system would eventu­ Mr. LUCAS. Mr. President, will the Subsequently, the unanimous-consent ally strangle competition and lead to the Senator from Tennessee yield? agreement was reduced 'to writing, as creation of local or regional monopolies. follows: It is my firm conviction that unless Mr. KEFAUVER. I yield. this proposed legislation is enacted, the Mr. LUCAS. I modify my request in Ordered, by unanimous consent, That on disruption of long-established business line with the suggestion made by the the calendar day of Friday, June 2, 1950, at practices will cause great confusion and able Senator from Tennessee. the hour of 2 o'clock p. m·., the Senate pro­ ceed to vote, without further debate, on loss to small business. The PRESIDING OFFICER. The Sen­ the question of agreeing to the conference The charge has been made that the ator from Illinois asks unanimous con­ report on the bill (S. 1008) to define the language recommended in the confer­ sent that the Senate convene tomorrow application of the Federal Trade Commis· ence report will weaken the Robinson­ at 11 o'clock a. m.; that at 2 o'clock the sion Act and the Clayton Act to certain Patman Act. On the contrary, it is my Senate proceed to vote on the question pricing practices: Provided, however, That belief that the Robinson-Patman Act of the adoption or rejection of the con­ such agreement shall not prohibit the mak· will be strengthened. ference report, with the proviso that it ing of a point of order against said report. Ordered further, That on said day of June Unless we legislate to upset the f. o. b. be in order for the Senator from Tennes­ 2 the time between 11 o'clock a. m. and 2 plant ruling, we shall discourage the in­ see to make his point of order, and for o'clock p. m. shall be equally divided be· vestment of new venture capital in new the Chair to rule on the point of order, tween those favoring and those opposing the business concerns, because it will restrict which means, of course, that if the Chair report and controlled, respectively, by Mr. their markets and thus will eliminate the sustains the point of order, then no vote O'CoNOR and Mr. LONG. would be taken at 2 o'clock. Such rul.. . greatest incentive for investment, which ing would be subject to appeal, of course. Mr. MARTIN. Mr. President, I is opportunity for expansion and reward. Mr. LUCAS. Yes; subject to the rule should like to speak briefly in behalf Moreover, it is lil~ely to decrease em­ of the Senate. of the conference report on Senate bill ployment and community prosperity. 1008. I do so with the ·firm conviction It will bankrupt some smaller manufac­ The PRESIDING OFFICER. Is there that the enactment of this proposed turing concerns, because local consump­ objection to the request of the Senator legislation is vital not only for the pro­ tion is frequently not sufficient for from Illinois? tection of jobs in our Pennsylvania fac­ profitable operation. Mr. WHERRY. Mr. President, a par.. tories, but to prevent Nation-wide busi­ The disastrous effect of the basing­ liamentary inquiry. ness disruption. point decision is shown by the experience The PRESIDING OFFICER. The Sen­ Both Houses of Congress have voted of one small manufacturer located in ator will state it. favorably on this bill, disagreeing only West Virginia, just across the Pennsyl­ Mr. WHERRY. Of course, an appeal on certain language which we are now vania line, about 30 miles from my home would be debatable. called upon to resolve by our vote on town of Washington, Pa. The firm The PRESIDING OFFICER. The ap­ the pending conference report. produces metal cans, and has its market peal would be debatable, but all the de­ I believe that the overwhelming ma­ among packers of condensed milk. bate on the appeal would end at 2 o'clock jority of Senators and Representatives In 1948, just before the impact of the and then the vote would be taken. realize the need for the speedy enact­ basing-point decision had its full effect, Is there objection to the request of the ment of Senate bill 1008 to legalize the this firm produced 309,000,000 cans. Senator from Illinois [Mr. LucAsJ? The basing-point method of freight charges They were shipped to 69 milk-condensing Chair hears none, and it is so ordered. on commodities, except where such prac­ plants in 20 different States. Mr. LUCAS. Mr. President, I · thank tice would be in restraint of trade. In the next year, 1949, because of the the Senator from Tennessee and my dis­ The subject has been fully debated. It adverse competitive position in which tinguished colleague from Illinois, and is not my wish to burden the Senate with the firm was placed by the basing-point also I want to thank the· Senator from a recitation of the arguments which decision, the output of that company 1950 CONGRESSIONAL RECORD-SENATE .7917 was reduced from 309,000,000 cans 1n tee meetings at which Cabinet officers it did something, at least, to improve the 194.9 to 135,000,000 cans. Its customers may a;ppear. understanding and the relationship be­ fell from 69, in 20 States, to 30, in 12 So, Mr. President, undoubtedly Mem­ tween the Members of the Congress and States. bers of Congress would be better in­ the Secretary of State and the State The downward trend has continued formed about current matters and Department. this year; and the owners of the busi­ undoubtedly the prestige of Congress Mr. President, I ask unanimous con­ ness now estimate~ production of only would be raised greatly and there would sent to have printed at this point in the 95,000,000 cans, to b~ supplied to 10 con­ be better understanding and a better RECORD excerpts from one of the speeches densing plants in an area restricted to · working agreement between the execu­ I made in the House of Representatives only 4 States. ~ tive branch of the Government and the on the subject of the necessity for better From these figures it can be seen that Members of Congress if on a formal cooperation between the legislative and the business of this small manufacturer basis, in our own Chamber, we could executive branches of the Government. dropped approximately 60 percent with meet with Cabinet members, who would There peing no objection, the excerpts the basing-point decision as the princi­ be invited to appear at a certain time were ordered to be printed in the pal cause of the decline . . This is one by the appropriate committees ·having RECORD, as follows: example of many that have been brought jurisdiction of the subject matter. Then [From the CONGRESSIONAL RECORD of March to my attention. we could discuss with the Cabinet officers 6, 1947] . Big business-the giants of American the problems then under consideration, BE'ITER COOPERATION NECESSARY BETWEEN industry-have the capital and other re­ and Members of the Senate· could ask LEGISLATIVE AND EXECUTIVE BRANCHES OF sources to locate branch plants in every them questions, which would have to be GOVERNMENT market. · Small business is fighting for germane to the issues, not questions of a Mr. KEFAUVER. Mr. Speaker, it seems to me its existence without these advantages. heckling nature. that since the United States is obviously Small business 1n the United States Furthermore, such an arrangement now in the position where it must assume would help the members of the executive more and more leadership in the interna­ should not be subjected to conditions tional field and we, the Congress, are being which, in many cases, are equivalent to a branch of the Government a great deal. They would have an opportunity to reach called upon to establish and deal with inter­ death sentence. national policy to an extent that this country Pennsylvania has more factory work­ the entire membership of the Senate, has never known before, we should examine ers than any other State in the Union. whereas now they must confine their our congressional procedure to see whether They are employed to a large extent by appearances to the committees. Such we are really equipped properly as a legisla­ firms which· qualify as small business. an arrangement would also give the tive body to adequately handle the problems Cabinet officers an opportunity to make being thrust upon us. It is in their interest that I intend to vote policy decisions, whereas now they may On the domestic front, there is great need for the adoption of the conference re­ not have such an opportunity. More­ for better understanding between the legis­ port. ·over, they would have to know the opera­ lative and executive branches of our Gov­ ADDRESS TO MEMBERS OF CONGRESS B.Y tions of their own departments. The ernment. Several days ago I read an edi­ THE SECRETARY OF STATE-SUG­ torial by Marquis Childs in the Washington appearances they made here would indi­ Post. I would like to read the first two GESTED APPEARANCE OF CABINET cate .the kind of reception they would paragraphs. It says: MEMBERS ON THE FLOORS OF CON­ receive throughout the country and the "Underlying nine-tenths of the confusion GRESS esteem in which they were held by people and conflict in Washington today is one cen­ Mr. KEFAUVER. Mr. President, I did in general. tral, paramount fact that almost no one not have the opportunity to attend the Mr. President, over a period of many speaks about or thinks about. It is almost informal meeting of the Senate and the years, beginning in 1941, I sponsored and as though a deliberate conspiracy existed to worked in the House of Representatives prevent us from considering it. House of Representatives with the Sec­ "When the two corollary powers, executive retary of State in the auditorium of for a program of that sort. From time and legislative, are divided between oppos­ the Library of Congress yesterday. I to time it has been tied up in the Rules ing parties, the machine of government have read the result of that appearance Committee of the House, although at stalls. This has happened again and again by the Secretary of State before Con­ one time almost half the Members of the and again. Yet we register a kind of puz­ gress, and I think it was a very suc­ House of Representatives said they zled and hurt surprise that all is not har­ cessful and useful occasion. · favored it, and expressed support of it; mony and progress on the Potomac." Mr. President, I feel that one of the and at one time every member of the For many, many years there has been evt­ great weaknesses of our system of gov­ Cabinet, with one exception, unquali­ dent need and advocacy of some procedure fiedly approved the idea. which will bridge the gap between Capitol ernment is that we do not have some Hill and the other end of Pennsylvania method of f ornializing the person'.l.l ap­ It seems to me that in these times; Avenue. Even when the Executive and the pearance of Cabinet Members before the when we are besieged by difficult domes­ legislative members of our Government are Senate and the House of Representatives tic and international problems, high on of the same party, bickerings and differences under the rules prescribed by the re­ the agenda of our legislative program between the legislative and the Executive spective bodies. It was intended by the there should be some means of improv­ commence very soon after the inauguration. ing liaison and understanding, so as at I believe that regardless of whether we have founding fathers that there be actual a Democrat or a Republican in the White appearances and particularly that there least to make it possible for the execu­ tive and legislative branches of the Gov­ House, or whether we have Republican con­ be consultation and advice with the Sen­ trol or Democratic control of the Congress, ate personally by the Cabinet Members ernment to know the same facts. Members of both branches sincerely and The distinguished Senator from Ar­ earnestly want to make the Government work of the executive department. kansas [Mr. FuLBRIGHT] at one time, Of course, ours is the only democratic, efficiently for the best interests of America. when I was making this proposal in the Nowadays it is imperative that Government parliamentary form of government House of Representatives, made a similar function smoothly. In this way we can take which does not have some method of proposal in the Senate. I wish to join O\!!' place of effective leadership Jn world af­ enabling such appearances. The result other Senators in making the proposal fairs. Both of the political parties are de­ has been that Members of Congress do again. Several of us have been sponsor­ voted to those two objects. We know that not have an opportunity to hear, on a ing a resolution for that purpose. the time comes when there is lack of under­ face-to-face basis, a discussion by standing and differences between the Presi­ Mr. President, I wish to commend the dent and the' Congress, regardless of whether Cabinet members of the problems of the chairman of the Foreign Relations Com­ or not there is a person of the same party executive branch of the Government, and mittee, the distinguished senior Senator in the White House as in control' of the Con­ Cabinet members do not have an oppor­ from Texas [Mr. CONNALLY], for his gress. For many years I have been advo­ tunity to appear before us for a face-to­ foresight in arranging the meeting yes­ cating a proposal which I think will do much face discussion, except in committees. terday, so as to give all the Members to bring about closer cooperation and un­ Consequently we cannot keep informed derstanding between the President and the of the Senate and all the Members of Congress. Now that we do have a situation about the over-all administration of the­ the House ·of Representatives an oppor­ which I think has occurred some 28 times laws by the executive branch of the Gov­ tunity to hear the address by the Secre­ in our history, of divided responsibility be­ ernment, because sometimes we cannot tary of State and to participate in the tween the Presidency and one or the other · even attend the committees upon which discussion. I think that had a whole­ Houses of Congress, it seems to me it is all we serve, let alone all the other commit- some effect upon the Nation; and I think the more important that we try to devise XCVI-499 7918 CONGRESSIONAL RECORD-SENATE JUNE 1 ways and means to come to a better .under­ I am convinced that for us to know more and while I was interested in it at· previous standing and better working together with about wJ:iat is going on and what is really sessions of Congress, I feel it is of great im­ our national program. before 1:1s would be helpful in arriving at the portance at the present session of Congress The proposal that I have made this year, right solution. Does the gentleman believe, when each of the Cabinet members· would as in several years past, is for a so-called however, having regard to the present con­ be of one party and wlien the control on the report-and-questioning period. It is con­ troversies and difficulties that seem to be Hill is in the other party. It is "true that tained in House Resolution 17. Under that coming up to confront us, that General such a question period would give the Cabi­ proposal it is provided that once every week0 Marshall would feel it proper for him to net officer a chance to tell his side of the or at least every 2 weeks, there should be set respond to inquiries that might be addressed story to all of the Congress at once and to aside not more than 2 hours on the fioor to him in respect to the problems involved the country as well. Now, that is a good of the House for some legislative committee in our· foreign affairs at this time? thing, because it would save that Cabinet of the House to have the opportunity of in­ Mr. KEFAUVE:!t. I am glad the gentleman officer's time in running around to-as many viting a Cabinet member or a top adminis­ asked that · question. I believe General as eight or nine different committee hear­ trator to appear in the Chamber of the Marshall appreciates the fact that the for­ ings in the period of a week, as has been the House to answer questions previously sub­ eign policy of the United St ates is one that case in certain instances in the past. This mitted to him by the legislative committee must be understood and participated in by procedure would save the time of the Cabinet which issued the invitation. The first half Members of both the Senate and the House. officer in answering questions of general in­ of the time would be devoted to the Cabinet No f0reign policy can long last unless it terest to Congressmen and to their constitu­ member answet.lng written questions previ­ has public support and implementation from ents. In the first place, it would save the ously submitted, and the second half con­ the Members of the House of Representa­ time of repeated congressional hearings arrd, sumed by questions from the fioor. The tives. And an indication, I may say to the in the second place, it would save his time chairman of the committee and the ranking gentleman from Indiana, of the way I think spent in conferences with Congressmen and minority member would control the time for Secretary Marshall would respond to an in­ Senators and on the phone answering their asking questions. vitation of this kind can be found in questions. So it would be of advantage to The Rules Committee would fix the order what General Marshall did during the war. the Cabinet officer, and I am sure he would of appearance, in the event more than one The gentleman will recall that on two, if take advantage of it to tell his views in this request was pending. not three, occasions General Marshall in public and important way. On the othe):' Here is an example of how this program connection with the conduct of the war and hand, it would be of great advantage, it would operate: Suppose when Secretary the necessity of congressional understand­ seems to me, to those of us, who might not Marshall returns from , the Foreign ing of what was being done, and of congres­ appreciate or understand or agree with the Affairs Committee of the House should feel sional support of the war effort, even went point of view of the Cabinet officer. It would it important that his message be heard by to the extent of arranging meetings in the give us a chance to get his answers in public, all the Members of the House and such auditorium of the Library of Congress. I and then it would give us the opportunity Members of the Senate as might wish to am sure the gentleman attended those meet­ later on, possibly on the same day, to give come over. Under this proposal the Foreign ings. General Marshall spoke on those occa­ our comments on his answers. In this way Affairs Committee would contact Secretary sions, as did General Elsenhower, Secretary you would have a tighter, more adequate sys­ Marshall, arrange a time, and discuss the Stimson, Under Secretary and later Secretary tem for the exchange of views between Cap­ agenda. They would prepare questions · to Patterson. Who were the audience they had itol Hill and the executive departments. be printed in the RECORD 2 days before the on those occasions? They were Members which would be of great benefit to the Re­ hearing. On the date of his appearance, of Congress who were eager to know what public. · one-half of the allotted time, whether it the over-all picture was. These leaders of Of course, 1f this system were instituted, were 1 hour or 2 hours, wou°Id be taken by our war effort were anxious that the Mem­ we might have some few members who would. the Secretary in a discussion of the questions bers of Congress should have a fun and try to take undue advantage of it. It is a furnished him or agreed upon by him with complete picture. possibility, although I hope an improbable the members of the Foreign Affairs Com­ The only trouble on those occasions was one, that there might be publicity seekers mittee. After his report, the members of the they told us exactly .what they wanted us to who would attempt unduly to put a Cabinet Foreign Affairs Committee, or any Member hear. We were more or less like school chil­ officer or oth~r Government official on the of the House, by securing permission from dren sitting there to get the message. We spot in an unfair way. There would be two the chairman or the ranking minority mem­ had no opportunity of talking with them be­ remedies in case such a situation arose. One ber, could ask him supplemental questions fore the discussion and suggesting matters would be the remedy which I understand the which, however, must be germane to the pre­ we wanted them to discuss or of asking ques­ gentleman's proposal provides, and that is ceding discussion. It would not be a period tions during the course of the discussion. that the Speaker would inerrupt or would of heckling. If an improper question were How much better it would be to have them stop an obviously improper question, or that asked, since the Cabinet member came vol­ appear here in our own forum and for us to the Cabinet officer would himself refuse to untarily, he would not have to answer it. have an opportunity to participate. answer it. . The Speaker could rule the question out of Mr. VORYS. Mr. Speaker, will the gentleman There would be a second remedy, how­ order as not being germane. A point of yield? ever, for improper or unfair questions, and order could be made by any Member to an Mr. KEFAUVER. I yield to the gentleman that would be the remedy of public opinion. improper question. from Ohio. When you get this arrangement going you Mr. HALLECK. Mr. Speaker, will the gen­ Mr. VoRYS. I wanted to point out just the will find that the American people who tleman yield? point the gentleman has made, and that is appreciate the spirit of fair play in any sort Mr. KEFAUVER. I yield to the distinguished that in these very interesting meetings which of public discussion would be quick to re­ majority leader. General Marshall conducted during the war sent and show their resentment if a Mem­ Mr. HALLECK. Does not that statement in­ there was no opportunity to ask questions. ber of Congress acted unfairly. I firmly be­ dicate that the members of the executive Also, I want to point out that often if there lieve that the American public and the press department would tell us just what they had been such opportunity, there would and the radio commentators would be just wanted to tell us and nothing else? Does have been no possibility for the public to as quick to resent and to show their resent­ it not follow what they probably are doing know what his answers were. This system ment if a Cabinet officer took unfair ad­ now, telling us what they want us to know has worked in parliamentary countries righ:t vantage of his position here on the fioor. So and not telling us what they do not want us through the war. When questions were that not only in the rules that the gentle:. to hear? legitimately embarrassing, those questions man has set up, but in traditions, customs, Mr. KEFAUVER. I do not think that would were not answered. On the other hand, and precedents that would be established al­ be the result at all. What I had reference when perfectly proper questions were asked most immediately, you would have the sort to as an improper question was a question and when Cabinet members in other coun­ of exchange that goes on during the question for heckling purposes or something entirely tries avoided those questions, the public period, for instance, in the British Parlia­ aside from the point of discussion. I have knew about that. Very often that Cabinet ment, where several matters are cleaned up 1n mind, of courrn, that in the case of Sec­ member had to come around and explain in a short time, with a saving of time to retary Marshall there would perhaps be some what the answer was and also why he had the Cabinet officials, furnishing great clarifi­ matters involving national security that it not answered. If the gentleman will in­ cation to the Members of Parliament sitting would be proper for him to refuse to answer dulge me a moment further, I would ap­ there, and explaining the many situations 1n a public appearance. preciate it. to the public. I certainly feel that this is an I am certain that these would be periods Mr. KEFAUVER. I am happy to indulge the experiment worth trying. of real cooperation between the Cabinet gentleman as long as he wishes. The gentle­ I ask the gentleman to forgive this long officer and the Members of Congress. man and I have discussed this matter a long interruption. Mr. HALLECK. Mr. Speaker, will the gentle­ time, and I reel it is really his idea, that he Mr. KEFA:J'VE'R. I want to say to the gen­ man yield further? is really the sponsor of a proposal of this tleman that I am glad he made his ex. Mr. KEFAUVER. I yield. kind. He saw and expressed the need of a cellent contribution to this discussion. I Mr. HALLECK. I have felt many times dur­ plan like this long before I did. I hope the am sure that the Members of Congress will be ing my service in the Congress that we have gentleman will take the lead in its sponsor­ greatly interested in the viewpoint of the been required to legislate in a vacuum, par­ ship. gentleman from Ohio. We all recognize that ticularly insofar as legislation dealing with Mr. VoRYS. The gentleman flatters me. I he is one of the leading authorities on con­ our foreign affairs was concerned. have long been interested in this proposal, gressional procedures in the Congress. 1950 CONGRESSIONAL RECORD-SENA T.E Let us examine some of the other rea.." departments. On the occasions of these in the legislation of the Congress. So lie sons why a plan like this should be adopted. periods the galleries would be packed, the would keep his house in good order. In t h ese days there are many great issues newspapers and the radios would carry full What I am going to say now is not with with which the Congress has to deal. They reports about what took place on the floor of reference to any Cabinet member. We have transcend the interest of any one committee. the House of Representatives. It would do a very splendid Cabinet. But Presidents There are matters of foreign affairs, as well much to help restore the prestige and the would be even more careful in the selection as matters relating to . Even today we standing of the Congress of the United of Cabinet members 1f such members were passed a resolution to investigate the Vet­ States. called to give reports here on the floor erans' Administration. Would it not be a Mr. VoRYS. If the gentleman will indulge of the House. He would have to secure· very healthy thing 1f the Committee on Vet­ me further, may I call attention to one way very able men. If they did not know their eran ~ · Affairs, under the proper rules, could in which this might improve relations be· business and make a good impression, it have General Bradley come here and discuss tween the Hill and the departments? Possibly would reflect on the administration of the the veterans' rehabilitation program and ask the gentleman is going to comment on it. President. Furthermore, Cabinet members h im just what is being done? You know, it If, as, and when questions are presented in would have to be well versed in the business is impossible for the Members of Congress, advance for answer by the Cabinet official, of their departments before coming to the or most of them, to attend all of the com­ in many instances he gives the answers in­ Congress or make a poor showing. They mittee meetings of their own committee, let formally in advance to the Member, or he would have to decide policy matters. If alone going to the 15 or 16 other committees explains in advance why it would be difficult the President had not decided matters of to hear matters of great public concern which to give a full answer. The whole matter policy on his level, the matters would have may be brought out by witnesses testifying is then cleared up before it ever ·gets to the to be attended to before a Cabinet member before them. We need some method here floor. That is the way the system operates came before the Congress. I think a great where the Members of tne House can keep in parliamentary countries that use this sys­ deal of value is secured by face-to-face meet· currently advised of the position of the Gov­ tem, in that many of . the questions which ings. Any arrangement where we have an ernment and the plans of the departments are propounded are not reached on the floor opportunity of seeing the man who admin.. on these great issues that transcend the juris­ because they have already been disposed of isters the laws we have passed, and where diction of any one committee. There is no to the satisfaction of the Member and of the they have an opportunity of seeing and talk­ way that we can do that now. The best official. On the other hand, if the questions ing with us, will result in public good. It thing we can do is try to read the committee are of such a nature that both the Member would give ·us an opportunity to let them hearings. Well, you cannot read all of the and the official feel that a statement should know what we think about the way they are committee hearings. That is a physical im­ be made on them that can also be done. By administering the law we had passed, the· possibility. The hearings on an appropria­ this system every Member of Congress will viewpoints of our constituents, by the ques. tion bill, with 1,000 or 2,000 pages of fine be sure that his question will get attention tions asked. There is no easy way of bring· print, is an example. If you read all of them, right at the top of any department, inst ead ing Members of Congress and Cabinet mem. you might have a pretty good picture of what of having many of the questions on routine bers together under our present arrange· some particular department or section down­ matters go to the departments and be kicked ment. town is doing. But we might as well reccg­ around in the mail there for some time before Mr. VoRYS. Mr. Speaker, will the gentleman nize the physical limitations. It cannot be some assistant down the line gets around to yield? answering them. done. Mr. KEFAUVER. I yield to the gentleman Mr. HOBBS. Mr. Speaker, will the gentleman While the gentleman has been discussing from Ohio. yield? · questions of momentous import which might be answered by means of this system, I think Mr. Vo&Ys. I had occasion some time ago Mr. KEFAUVER. I yield to the gentleman to talk to one of the Cabinet officers about from Alabama. · it would be wise to bear in mind that many details of government and many criticisms this proposal and asked him what he thought Mr. HOBBS. The gentleman is making a. of departmental action could be cleaned up of it. He thought it was very good. He said very illuminating and wise, and, to my mind, in this way: First, by making sure that they he thought it would eliminate from the a. statesmanlike statement, and I hate to would get attention by the official involved; service any official who was not able to talk interrupt. But I do so merely to request, as and, second, by being explained and answered and give a good accounting of his depart· I have in the past, the privilege of associat­ here on the floor of the House. And if the ment, wh~ther he could make a speech or ing myself with his remarks by saying a fer• answer is .not satisfactory, then it would be not; anyone who was unable to express vent amen. time for the Congress to take action,- which, himself, man to man, before a group. He Mr. KEFAUVER. I thank the gentleman. of course, is the fundamental -reason why the a ~ so said that if this became ·tradition it That is substantial support and assistance, discussion period would be so important. would probably result in more former Mem• bers of Congress being selected for· such posi. which I am glad to have. The views of the Mr. KEFAUVER. The gentleman is entirely gentleman from Alabama carry great weight. correct, and I again thank him. tions because of their ability to explain their The other method by which we are sup· I think this also would be true. Suppose ways on the floor. I pose this opinion for posed to keep advised of what the depart. the Committee on Veterans' Affairs was go­ consideration in this matter. I feel sure ments are doing is through the reading of the ing to ask General Bradley to appear on the the gentleman will agree with me that if annual reports filed with the Congress by the floor of the House 2 weeks hence. That fact one result was that our officials become more various departments. I have been here al· would be known. Any Member of the House and more those who were former Members most 8 years. I must say that I have never would have an opportunity of filing questions of Congress and who knew the ways of Con· read any one of the great voluminous annual with the Committee on Veterans' Affairs. On gress, that might be a very good thing. reports, resembling a Sears, Roebuclc catalog. the basis of those questions, the general dis­ Mr. KEFAUVER. I will say to the gentleman And, besides, they are post mortems. In cussion would be decided. I think any Cabinet member who really those reports the administrators tell pretty Also I would point out that the questions wanted to do his job well, who appreciates, as much what they want to tell about how their which would not be asked would be in the he would have to appreciate, that he can do a departi:nent has been conducted. The crying files of the committee which would be turned better job if he gets along with Congress, need of the Congress of the United States is over to General Bradley. He would see that will be. very happy to accept an invitation for some method to keep currently advised of the Member who wanted information and had to come here to explain his department and problems, ·policies, difficulties, and plans of filed the question with the committee ob­ any difficulties he may be having, and to the executive agencies of our Government. tained the information that was desired. It give information on the floor of this House. This is the best method I know of doing that. would do away with many of the difficulties Mr. Speaker, this is not an innovation. It If we try this method and it does not work, which cause so much friction between the can be done without a constitutional amend­ we .do not have to issue any invitations. But Cabinet members and the Congress. ment. It is not a party matter. It does certainly let us at least give it a trial. I also call attention to the very whole­ not seek to place executive officials under Mr. Speaker, there is a further matter of some effect that this would · have on the undue domination. It does not seek to give importance that this procedure would affect. Cabinet members and the administrators. them any dominance over us. It is a simple The gentleman from Ohio referred to it. We It would be like the situation with refer­ provision that would · enable us to have a must recognize that during the years Con· ence to bank examiners. The bank offi· face-to-face discussion with the men who gress has lost some prestige. Look at almost cial keeps his house in order because he are enforcing the laws we make. It would any newspaper and you see where a Cabinet knows the bank examiner is eventually go­ result · in much good to the Congress and member has had a press conference. What ing to come around. He may not come much good to the members of the executive that Cabinet officer said fli t his press confer. this month or he may not come for 6 months, department and to the Nation. ence-and I am not blaming him-usually but sooner or later he is going to come and More than 200 daily newspapers have car­ t akes the headlines. But you have to go to axamine the cvndition of the bank. So ried favorable editorials supporting this the inside pages to find out what went on in it is with an administrator. He might not plan. the two great Houses of Congress. Yet the be called for 6 months or a year, and he RECESS Congress is supposed to be the predominant would not know when Congress was going branch of our Government. If we could have to invite him to come to the floor of the Mr. MYERS. Mr. President, I move occasions of report and question period, the House to give an accounting of his admin· that the Senate stand in recess until great news to· the Nation would come from istration of the program laid out by the 11 o'clock tomorrow. the h alls of Congress and not from the press Congress and to explain how he is carrying The motion was agreed to; and the Senate r7920 CONGRESSIONAL RECORD-SENATE JUNE 1 took a recess until tomorrow, Friday. Bradford, Leo Galen, 14186A. Dick, Wagner Warner, 14139A. June 2, 1950, at 11 o'clock a. m. , Bradley, Charles Hunter, 12480A. Disbrow, Lorin Carlton, 12436A. Bradley, Lewis Lawson, Jr., 13995A. Dowdell, J ames Nicholas, 13949A. Bragg, Wallace Simeon, 12762A. Dowis, Kendal Burton, 14224A. NOMINATIONS IX Brannon, Raymond Terrill, 14240A. Duff, Robert Thomas, 14238A. Brass, Ernest Herman, 14086A. Duncan, John Dean, 12429A. Executive nominations received by the Brazie, Charles Leonard, 13979A. Duncan, Wayne Melvin, 13935A. Senate June 1 (legislative day of March Bridges, Wyman Mayo, 14050A. Durante, Ant hony Raymond, 13688A. 29), 1950: Brockmire, William, 14328A. Dyer, John C., 13466A. Brofft, Robert Eugene, 14332A. Dyke, Samuel Eugene, 14319A. IN THE Am FORCE Broughton, Thomas Elbert, 14280A. Dykes, Leo Maurice, Jr., 11877A. The following officer for appointment to Brown, Fountain LaRoy, Jr., H084A. Early, John Stokes, 14022A. the position indicated under the provisions Brown, Uleces Lamar, 12236A. Easley, Preston Warham, 13719A. of section 504, Officer Personnel Act of 1947: Brownlee, Gordon Lawrence, Jr., 14322A. Ecelbarger, Paul Richard, 14292A, To be lieutenant general Bruce, Joe Ben, 14096A. Edge, William Cowan, 14277A. Maj. Gen. William Ellsworth Kepner, 6A Bryan, Donald Septimus, 11869A. Edwards, Leland Vernon, 14204A. (major general, U.S. Air Force), Air Force of ·Bryan, Howard Youe, 14184A. Eldridge, Truman Kermit, 13203A, the United St ates, to be commander-in-chief, Bryant, Ralph Wilber, 14244A. Elliott, William Pettigrew, 14043A. Alaskan command, with rank of lieut enant :x Bryson, Eddie, 14187A. Esh, Norman Richard, 12142A. general with date of rank from date of Buckley, Cornelius Erin, 14154A. Estes, Eldridge, 12147A. appoint ment. Budnik, Eugene Joseph, 14344A. Evans, Jack Tharp, 14215A. Bullinger, Rollin Richard, 14177A. :x Evans, Richard Newton, 13608A. The following-named officers for promo­ Bu ls, Milton Richard, 14173A. Evans, William Robert, 14076A. tion in the United St ates Air Force under the Burch, Nolan Edward, 14279A. Everett, Hal William, 14323A. provisions of sections 502 and 509 of the Burnett, William Howard, 13976A. Eversole, James William, Jr., 14289A. Officer Personnel Act of 1947. All medical Burton, Carmen Wayne, 14027A. Fairburn, Craig Hamilton, 14116A. officers nominated for promotion have been Butler, James Joseph, Jr., 14361A. Fasolas, James Eugene, 14110A. found professionally qualified for promotion Byrd, Neal Archie, 14272A. Fassler, Robert Jacob, 14352A, as required by law. Those officers whose Cadenhead, John Orville, Jr., 13445A. Fender, Guy Dale, 12951A. n ames are preceded by the symbol ( X ) are Cahelo, George, Jr., 14152A. Ferguson, Clyde Alvin, 12737A. subject to physical examination required by Cale, Thomas Edison, 13960A. Ferguson, Howard Gillespie, Jr., 14155A. law. Callahan, John Arthur, 14150A. Fieker, Virgil Edward, 14098A. To be majors Cameron, Murray, 14045A. Findlay, Clayton, 14020A. Chaplains Campbell, Norman Marshall, 14351A. Finklea, Raymond Archer, Jr., 12077 A, Cu tress, Albert Leo, 18766A. Carder, Orv i.l Burton, 13355A. Finley, Charles Buford, 13795A. McWilliams, Alfred Edward, 18765A. :x Carey, Gates Chapman, 14273A. Finnan, George Alexander, Jr., 14176A. Carey, Russell, John, Jr., 14095A. Fish, Jules Verne, 14271A. To be captains Carkin, Vernon Eugene, 14094A. Fisher, David Glen, 14266A. United States Air Force Carlson, R. Barney, 14144A. Fitch, Arthur Joseph, 14314A. Acebedo, Bruce Hamilton, 11847A. Carscaddon, Oliver Clyde, Jr., 13771A. Fitch, Edward Benjamin, 12941A. '. X Adams, Donald Earl, 14308A. ;x Carson, Clarence Lester, 14127A. Fitzpatrick, Arthur, 12403A. Adams, John Bosier, 13962A. Carter, Howard Koehler, 14060A, Fleak, Dennis Logan, 11643A. Adler, Bernard Raymond, 13982A, Carter, Robert Francis, 14297A. Flynn, Norman Charles, 12916A. Alden, John Emerson, 14262A. Cary, Thomas Isaac, 12851A. Forbes, Brown Coleman, 13594A. Alger, LeRoy, 14312A. Casey, George William, 14120A, 'X Forman, Richard Joseph, 14293A. Altman, Roger Gene, 14101A. Cash, Hugh :!='fohl, 14029A. X Fory, Garland Vallard, 12612A. iXAlven, Harold Fritz, 11965A. Cather, Robert Montgomery, 14234A. Fowler, Walter Melville, 14113A. !X Alvestad, Russell Carlton, 14004A. Cathey, John William, 14078A. Fo~. Roland George, 14304A. Ambrecht, John Flagg, 14226A. Chaffee, William Arthur, 14210A. Franck, Lewis Sandlin, 11876A. AmRhein, Anthony Wendolin, 14061A. Chambers, Thomas Lee, 14256A. Gabrielson, Roy Leonard, 14102A. Anderson, Russell George, 13954A. :x Chapman, Harman Eugene, 13978A. Gaines, Edwin Francis, 14090A. Andrew, Wayne Ewing, 13853A. Chiodo, Vincent Russell, 12440A. Galarneau, Francis Ellsworth, 14132A. Angus, Ralph Howe, 13968A. Christensen, Richard Dean, 14142A. Gallagher, James George, 14056A. Anthony, Richard Price, 14065A. Clark, Don Omar, 14147A. Gamble, Jack Kenneth, 14026A. Apperson, Edward Barbour, 13984A. Clarke, Russell Coen, 13934A. Garlick, Roy Daniel, 14157A. Arbogast, Filbert Eugene, 14316A. Clemence, Charles James, Jr., 14017A. :x Garrison, Vernon Wayne, 14230A. Archer, Lee Andrew, 14040A. ,X Coats, Wilbur Le Roy, 14083A. Gearhart, Fred Zurmehly, 14143A. Arrington, Henry Thomas, 13786A. Collins, Glenn Richmond, 14255A. Gibb, Robert Duncan, 13053A. [X Aswad, Saleem, 14042A. Collinson, Newton Brewer, Jr., 14019A. Gibbs, Gordon Meade, Jr., 13981A. Auer, John Richard, 14360A. Connally, Hulon Lloyd, 14191A. Gibson, Billy Payne, 14070A. Bailer, Harold Walter, 13460A. Conner, Pre· · ~ on E., 14063A. Gill, Robert Edward, 14263A. Bandorsky, Stephen Michael, 14243A. Conrad, Henry Ward, Jr., 13056A. Gilmartin, William Patrick, 14168A, Barzee, Kenneth Gregory, 14326A. Cook, Robert Milton, 13959A. Gipson, Guy Maurice, 13667 A. Bates, Walter Laverne, 13946A. Cooper, Millard Von Cassell, 12753A. Goodman, Guy Howard, Jr., 13977A. Baydala, Edward Thomas, 14091A. :x Cope, Stanley Smith, 14051A. Gordon, John Henry, 14220A. Beaver, Earl Locksley, 14081A. Cormier, Emery Oscar, 14294A. Gotto, George Swift, Jr., 14309A. \XBeckman, Kenneth Norman, 14183A. Cotter, Richard Hurley, 14196A. Govednik, Martin James, 13927A. Bell, Robert Benjamin, 13569A. Cottingham, Jack, 14119A. Gravenstine, Donald Joseph, 14062A. Benedict, Robert Delp, 13474A. Cotton, Alle::i Beeson, 14124A. Gray, Lawrence Ulysses, 14329A. Berry, James Edward, 14153A. Covell, Dwight Wayne, 14333A. Gregg, Albert Joseph, Jr., 13973A. Bertza, Emil, 14089A. Cowart, Robert Page, l4100A. Groom, John Frederick, 14218A. Bigelow, Baxter Blainey, 14158A. Creech, Norman Oscar, 13944A. Grosshuesch, LeRoy Victor, 14052A. :x Bischoff, Hans Martin, 13774A. Crego, John Carl, 14130A. Grundmann, William Joseph, 14198A. Blackwell, Frank Bain, 13864A. Crosland, Daniel, 14072A. Gunn, Charles Daniels, Jr., 13929A. Blair, James Warren, 14338A. X Crozier, Gordon Wilson, l1830A. Gryskiewicz, Lawrence Rodney, 14346A. !XBlondet, Jose, 14003A. X Culver, Douglas Eugene, 13891A. Gurd, Stephen John, 14325A. Blount, Delbert Foster, 14031A. Curran, Francis Eugene, 13958A. Halsey, George Edward, Jr., 14231A. Bogan, Harry David, ll854A. Currie, Alexander Duncan, 11925A. Hamby, Jesse Mellar, 14290A. Boggs, Kenneth Stratiff, 14236A. Curton, Warren Donald, 14337A. Hamill, Jimmy Mearl, 12243A. Bolint, Michael John, Jr., 11636A. Dahly, Ronald Norman, 14193A. XHancock, Robert Maxwell, Jr., 13683A. Bolyard, John Wesley, 14071A. Dale, Manley Hovey, Jr., 14039A. Hanks, Dale Junior, 14356A. Bonnett, Charles Daniel, 11683A, Danforth, George Luck, Jr., 12863A. Hanna, Russell James, 13672A. Boone, Herbert Daniel, 13975A. Davidson, Ross, 14306A. Harris, Harvey James, 14208A. Bossa, Amos Loutelle, 14023A. Davis, Clayton Eugene, 12451A. !X Hartley, James Richard, 12160A. Boston, Joseph Hartse!, 14313A. Davis, Eddy Donald, 14245A. Hartline, Ralph Thompson, 13931A. Bosworth, Wallace Clay, Jr .. 14302A. Davis, La Voi Blackham, 14136A. Hassel, Robert Kenneth, 14164A. Botvidson Charles Clarence, 12155A. DeLong, Robert Fredrick, 14069A. Haywood, Vernon Vincent, 13477A. 'XBowden, William Woodrow, 14201A. Denison, George Fernie, 12969A. Heiney, Robert Alan, 14054A. ·XBower, James Alfred, 13691A. Denman, John Ludlow, 14334A. IX Hendrickson, Oscar Stansmore, 14140A. X Bowland, Orrin Thomas, 14301A. Desutter, Ralph Bernard, 14085A. Hepler, Jesse Benjamin, 14092A. Bowley, Freeman Wate, Jr., 13705A. DesVoigne, Melvin Charles, 14267A'. Heltsley, Charles Morris, 13980A. Boyer, Joseph Maria, Jr., 13252A. Dethman. Ivan Harry, 14258A. · Herbert, Donald Joseph, 12461A. 1950 CONGRESSIONAL RECORD-SENATE ,7921 Hersberger, Robert Alvin, 13728A. McCormick, Raymond Charles, 12457A. Price, Harry Marcus, Jr., 14141A. Hess, Robert William, 13005A. McCormick, Robert Russell, 14128A. Price, Joe Carroll, 13067A. Hilbert, Faye Wilmarth, 12036A. McCoy, Clifford Jack, 11936A. Price, Robert Young, 13297A. Hill, Cowan Scott, Jr., 13557A. McDaniel, Henry Byrne, Jr., 13485A. Pritchard, James Benard, 13836A. Hinckley, Ralph Edward, 14341A. McGehee, Harold Fisher, 14347A. Procopio, Bernardo Joseph, 14261A. Hirsch, Henry R., 12566A. McGinniss, Robert Hudson, 11624A. Proulx, Lionel Antonio, 12329A. Hodges, Hubert Byron, 13996A. McHugh, John Francis, Jr., 14206A. Pullen, John Lee, 13990A. Hoenselaar, Floyd Joseph, 14053A. Mcisaac, Lewis Gibson, 14212A. Pusko, Stanley JO.seph, 13972A. X Hollis, William Nick, 12349A. McKay, Calvin Robert, 11775A. Quisenberry, George Burnell, 13926A. Holman, Jack Wesley, 14287A. McKenna, Bernard John, 12601A. Raisor, Clifford Eugene, 14015A. XHolsclaw, Jack Daniels, 13242A. McKinney, Fred Dobyns, 14106A. Raschke, Wendell Maurice, 14138A. Hornick, George, Jr., 12845A. McLean, Richard Quentin, 13648A. Reed, Charles Donald, 14310A. Horton, John Nairn, 13998A. Mackie, Richard Gavin, 14009A. Reiley, Philip Francis, Jr., 13398A. Howard, Wilson Wayne, 13952A. Maggio, Charles Ignatius, 14112A. Renz, Karl Robert, 14348A. Howse, Benjamin McCausland, 13498A. Mahon, Keith, 13945A. Reynolds, Joseph Francis, 12617A. Hrkach, John James, 13947A. Mahoney, John Jacob, 18068A. Reynolds, Richard Franklin, 14011A. Hughes, Alfred Aubrey, 14093A. Malone, S. E., 13793A. Rhodes, Donald Frederick, 13948A. Hughes, Claude Allen, Jr., 14024A. Manning, Simon Wilson, Jr., 14286A. Rhodes, Edwin, 13951A. Hughes, Robert Earle, 14107A. Manor, LeRoy Joseph, 14307A. Ricci, Vincent Francis, 12211A. Hughey, Marvin Hutchison, 13917A. Marcum, Everette Lance, 14137A. Richards, William Wallace, Jr., 14162A. Hugo, Frederick John, Jr., 11656A. Marcum, Robert Stanley, 12212A. Richardson, Howard, 14345A. Hume, William Haywood, 12869A. X Marlin, Roger Thomas, 14298A. Richardson, Zaccheus Camp, 13721A. Hundley, Charles Proctor, 14077A. Marsden, William Floyd, 14097A. Richmond, Clarence Walter, Jr., 13713A. Hutchinson, Tom, 13932A. Marshall, Wofford Elbert, Jr., 12502A. Richmond, Joe Frank, 14057A. Ingham, John Stanley, 14189A. Martin, Thomas Wesley, 14269A. Richter, Erwin Edmund, 13490A. Ireland, Paul Joseph, 13326A. Maughan, Weston Fisher, 13698A. Riemensnider, Robert Howard, 14327A. Irons, Victor Earl, Jr., 14000A. Mayer, Donald Victor, 13936A. Riseden, Jack Wiley, 14145A. Jabbour, Nicholas, 14175A. Meacham, Chauncey Wayne, 13986A. Robertson, Hugh William, 14148A. X Jackson, William Charles, 14285A. Meagher, Robert Bruce, 14223A. X Robinett, Russell Norman, 14265A. Jacobs, Robert Arthur, 14007A. Mendenhall, George Warren, 14219A. X Rodgers, James William, 13943A. Janssen, Jan Walter, Jr., 12426A. Menninger, Charles Joseph, 13609A. Rodriguez, Edward Frederick, 12881A. Johns, Gordon Howard, 14315A. Merrill, Edward Grosvenor, 14303A. Rogers, Ray Warren, 14227A. Johns, Mervyn Thomas, 13268A. Messer, Frank Albert, 14048A. Romaniw, Walter, 12726A. Johnson, Carl Herbert, 13940A. .XMeyer, Herbert Joe McDowell, 12422A. Ross, Vance Lee, 13050A. Johnson, Conrad LeRoy, 13992A. Miller, Clarence Montgomery, Jr., 14088A. Rosser, Samuel Eugene, 14260A. Jones, Billy Jack, 13160A. Miller, Paul Randolph, 14254A. Rounds, Kenneth George, 13229A. Jones, Troy Homer, Jr., 14049A. Miller, Robert Andrew, 13106A. Rowland, Richard George, 14025A. Kaluta, William Roman, 13997A. X Miller, Robert Lee, 12494A. Russell, Burton Earl, 12837A. Karschner, Donald Frank, 14149A. Millholland, Robert Douglas, 14247A. Russell, Herbert, 13114A. XKaufman, Glenn Oliver, 14064A. Mitchell, Daniel Boone, 14354A. Russell, Lloyd George, 13993A. Kavanagh, Robert James, 14087A. Mitchell, John Wilmot, 14159A. Sahl, Frederick Hubert George, 14008A. Keeling, Rufus Kermit, 14185A. Mitchell, Maurice Scott, 14171A. Sarter, Lee Andrew, Jr., 14058A. Kelley, Charles Augustus, 13989A. Mitchell, Robert Jouett, 14200A. Sauers, Dale Edward, 13967A. Kelley, Frank Robert, 14079A. Mize, Grover Cleveland, Jr., 12290A. Saunders, Earl Robert, 14342A. Kelley, George John, Jr., 12519A. Moench, John Otto, 14318A. Saunders, Jackson, 12541A. Kelly, Joseph Douglas, 11903A. Moore, Howard Marshall, 14125A. Saunders, Maurice Edward, 14357A. XKepler, Paul Hospe, 13311A. Morgan, Thomas Wendell, 13964A. X Schardong, John George, 14235A. Killeavy, Francis Thomas, 12878A. Morison, Thomas Orville, 14359A. Schenker, Edward Richard, 14013A. Killian, Oliver Marshall, 14129A. Mosby, Milledge James, 12873A. Schneider, Victor James, Jr., 14216A. Kimball, Roger Elwood, 14343A. Mott, Maurice Kent, 14032A. Schuler, Paul Joseph, 13970A. King, Homer James, Jr., 11796A. Moyle, Bennett Oliver, 14163A. Scott, Leonard Bittle, Jr., 13966A. · King, Lonnie Tildon, 12950A. Mozley, Claude Daniel, Jr., 14028A. X Scott, Richard Esker Jackson, 14002A. King, Myles Anthony, 14001A. Mullen, Bernard Neil, 11890A. Scott, 'Robert Adair, 14278A. · King, Wayne Elvin, 13167A. Mullen, John Thomas, 13925A. Scuro, Vito Morris, l3170A. Kinsella, William Edward, 13357A. Mumbower, Wilbur Eugene, 14205A. xsegler, Thomas Franklin, Jr., 12696A. Kleinhelter, Robert W., 13128A. Murphy, John Edwin, 14169A. Shamblin, Richard Roy, 14036A. Klerk, Jacob Whitman, 12866A. Myers, Bill Eugene, 14038A. Sharp, Edward Elias, 12152A. Kolvas, Stephen Foster, 13950A. Nash, Charles Ellis, 14257A. Sheehan, Joseph Berchman, 13956A. Kontur, William John, 13290A. Neiswender, Van Arman, 14131A. Sheidow, Robert Grant, 14251A. Kost, Stephen Delmarth, 14030A. Nelson, Hal, Jr., 14282A. Shelly, James Ellis, 14250A. Kravchonok, Peter, 14170A. New, Alvin Raymond, 13092A. Sher, Harry Lewis, 14232A. Kropenicki, John Joseph, 14115A. Newman, James Edmund, 139&3A. X Siebert, Raymond Andrew, 14135A. Kupersmith, Louis William, Jr., 14355A. Nickerson, Richard Lawrence, 14300A. Silva, Theodore Deane, 14270A. Lamb, Bennett Graham, 14321A. Nixon, Stanley Jones, 14066A. Simmons, Alfred Clyde, 13957A. Lane, Warren Joseph, 12859A. Norman, James Sidney, 14010A. XSimpson, Robert Franklin, Jr., 14068A. X Lange, Edward James, 13196A. North, William Herbert, 14194A. Singleton, Earl Hallard, 14253A. Lasalle, Harry Stephen, Jr., 13937A. Norwood, James Pleasant, 13983A. Skinner, Ernest Charles, 14317A. Lawrence, Norman Taylor, 14284A. :XNunneley, Clarence Malcom, 13145A, Slaboda, Walter Joseph, 14172A. Leavitt, Roy Delanson, 14268A. Nurnberg, Malcolm Lloyd, 14046A. Slupe, Harold Dwain, 14044A. Ledbetter, James Willis, 12858A. Ogozaly, Leo Edmund, 13999A. Smalles, Arja, 13198A. X Lee, Zaden Oliver, 13862A. O'Leary, Francis Anthony, 13827A. Smith, Arthur Willia;m, 14195A. Leigon, Charles William, 14006A. Oliphant, Stephen Arnold, 12283A. Smith, James Harrison, 14067A. Lewis, James Maybury, 13281A. Olson, Howard Alan, 12764A. Smith, Richard He;nry, 16603A. Lewis, Lynn Merrill, 12888A. Onks, Marvin Cectl, 14229A. Smith, William Richard, 11849A. Lewis, William, 14161A. Osborne, William Finis, 12900A. Smith, William Stanley, 14105A. Lillard, David Carter, Jr., 14188A. Parrish, James Murrell, 14217A. Smith, Wylie Arthur, 14211A. Lindley, Wesley Ladell, 14331A. Parsons, Edward Budd, 14166A. X Spann, Henry Hal, 13262A. Loney, George Alva, 14339A. Patterson, Alfred King, 14311A. Sparrevohn, Frederic Durand Reidtz, Looker, Carl Satterly, 12721A. Payne, Joe Winfred, 13852A. 13985A. Louden, James Leslie, 14126A. Pearce, Robert Charles, 13833A. Spindler, Walter Elwood, Jr., 14179A. Lowell, Charles Luther, 13928A. Pedigo, Will1am Edward, 14109A. Sprinkel, Milton Drake, 13304A. Luckey, William John, Jr., 14299A. Pennington, Alvin Lee, 14021A. Stahle, Paul Joseph, 14353A. Lukeman, Robert Patrick, 14156A. Penton, Gordon Kenneth,· 13039A. Stallsmith, Donald Levi, 14082A. Lutz, Raymond Koliaokalani, 11691A. Perbetsky, George, 14041A. Stanfield, Louis Paul, 14228A. Lynn, Mary Cecile, AL80500, Pesacreta, Samuel, 14281A. Stanton, Charles Richard, 12797A. Lynn, Robert Encle, 14114A. Petersen, Nelson Louie, 14252A. Stark, Louis Kennc:,ith, 12067A. Lyons, Horace Clayton, 12354A. Petrul, Paul Joseph, 14207A. Steelman, William Dale, 14349A. MacLaughlin, John Thomson, 14190A. Pierce, Harry Francis, 12956A. Steinberger, Alfred Charles, 12146A. XMcCall, Dean Oliver, 14034A. Pitt, Earl Stellman, 13148A. Stephens, Bert Dwight, 14197A. - McCarty, Benjamin Frederick, 14274A. Pool, Fain Hulen, 13324A. Stockton, Floyd Calvin, 13930A. McCarty, Harold Henry, 14239A. Porter, Lester Forrest, 14222A. Stoeppelwerth, Earl, 14059A. .XMcCord, Richard David, 13703A. Prewitt, Ernest Le·nsy, 13994A. Stone, Leon, 14174A. 7922 CO_NGRESSIONAL RECORD.-HQUSE JUNE 1 · Strange, Russell Paddock, 14165A. Wright, Noble Dean, 14259A. ME$SAGE FROM THE ·PRESIDENT Street, Marion Scott, 13720A. Wylie, Billy Clifford, 14225A. A message in writing from the Presi­ Stroud, Joe Forrest, 13971A. XYoung, Barnett Braswell, 12637A. Stuckey, Norman Dale, 14037A. Youngs, James Roy, Jr., 13159A. dent of the United States was communi­ Stump, Charles Fay, Jr., 14324A. Zedler, Donald Louis, 12438A. cated to the House by Mr. Miller, one of Sullivan, Richard Donald, 13686A. Zurivitza, William, 14237A. his secretaries, who also informed the Sullivan, Robert Francis, 13733A. Medical House that on May 31, 1950, the Presi­ Sullivan, Roy Marcus, Jr., 13942A. dent approved and signed a bill of the Suprenant, Charles Edward, 12829A. Bickerton, John Harvey, Jr., 19361A. Buker, Richard Steele, Jr., 19833A. House of the following title: · Suther, Fred Lee, Jr., 14283A. Cashman, Charles Albert, 19363A. H. R. 6329. An act for the relief .of Betsy Swanberg, Sigvard Christ, 14275A. Chambers, George Henry, 19362A. Sykes, Thomas McQuiston, ·13933A. Sullivan. T abor, Raleigh Emerson, Jr., 14073A. Dobyns, James Harold, 19831A. Farrell, Donald Francis, 19827 A. MESSAGE FROM THE SENATE Taft, William Bert, 13094A. X Good, Frederick Dale, 19830A. Tarwater, Benjamin Wylie, 14264A. A message from the Senate, by Mr. Haynes, James William, 19829A. Tat e, LeRoy Dale, 14350A. McDaniel, its enrolling clerk, announced J ahnke, Edward John, Jr., 19657A. that the Senate had passed without Taylor, Carroll Alfred, 13626A. Kennedy, James Vincent, 19359A. Taylor, Liston Talbott, 13963A. Mahoney, David Ignatius, Jr., 20009A. amendment a bill of the House of the Taylor, Ulysses Samuel, Jr., 13465A. Marshall, Charles Benton, Jr., 19962A. following title: Thomas, John Howe, Jr., 14080A. Patters'on, Roy Russell, 19826A. H. R. 6655. An act for the relief of Taeko Thomas, William Herbert, 14033A. Peterson, William Frank, 19913A. Suzuki. XThompson, Cary Anderson, Jr., 14221A. Sedlacek, Richard Leo, 19828A. · Thompson, Douglas William, 12324A. Stein, Ignatius Joseph, 19963A. The message also announced that the Thompson, , 14291A. Streete, Billie Gordon, 19832A. Senate had adopted the following res­ Thompson, John, 14016A. Tkach, Walter Robert, 19360A. olutions: Thompson, Lassiter, 11664A. Turner, William Robertson, 20011A. Senate Resolution. 288 Tillotson, Robert Levi, 13991A. Walton, Lowell Clair, 19914A. XTinges, Anne Weatherbee, AL80112. Watts, Charles Clyde, Jr., 20010A. Resolved, That the Senate has heard with Titsworth, James Henry, Jr., 14335A. The following-named officers for promo­ profound sorrow the announcement of the Todd, Vernon Richard, 14246A. tion in the United States Air Force under death of Hon. JOHN LESINSKI, late a Repre­ Todd, Victor Kenneth, 13328A. the provisions of section 107 of the Army­ sentative from the State of Michigan. X Toner, James Henry Edward, 14192A. Navy Nurses Act of 1947. All officers have Resolved, That a committee of two Sen­ Treadway, John Earl, 14012A. been found professionally qualified as re­ ators be appointed by the Vice President to Trumbo, Charles E., Jr., 14104A. quired by law. Those officers whose names join the committee appointed on the part of Tucker, Stanley.Eugene, 14122A. are preceded by the symbol ( X) are sub­ the House of Representatives to attend the Vaughan, Harry Hailmon, Jr., 1398BA. ject to physical examination required by funeral of the deceased Representative. Verhulst, Florent Joseph, Jr., 12328A. law. Resolved, That the Secretary communicate XWaggener, Herman Alpheus, Jr., 14047A. To be captains these resolutions to the House of Represent­ Wagner, James Mark, 14199A. Air Force Nurses atives and transmit a copy thereof to the Walker, Barton Fellows, Jr., 14249A. family of the deceased. Walker, Charles Lynn, 14167A. X Askegaard, Elizabeth Ann, AN1436. Resolved, That as a further mark of respect Walker, John David, 14005A. Deegan, Florence Irene, AN769. to the memory of the deceased the Senate do Walker, Lawrence Davenport, 14233A. X McNally, Mary Jane, AN770. now take a recess until 12 o'clock noon to­ ·Walker, Stewart Burgess, 14103A. Staudt, Veleska Barbara, AN1599. morrow. Waller, Charles Skillman, 13692A. NoTE.-Dates of rank will be determined by Senate Resolution 289 Walsh, Edward Francis, 14209A. the Secretary of the Air Force. Wampler, Louis Clinton, 12883A. Resolved, That the Senate has heard with Ward, Albert Thomas, 13889A. profound sorrow the announcement of the Ward, John Rowland, 13789A. death Of Hon. WILLIAM LEMKE, late a Repre­ Ward, Robert William, 12386A. sent ative from the State of North Dakota. Ware, Samuel Houston, 14133A. HOUSE ·OF REPRESENTATIVES Resolved, That a committee of two Sena­ Warner, Richard James, 14108A. tors be appointed by the Vice President to XWarren, Johnnie J., 13097A. THURSDAY, JUNE 1, 1950 join the committee appointed on the part of Webb, Bert Harry, Jr., 12132A. the House of Representatives to attend the Webster, Fredrick Leonard, Jr., 14121A. The House met at 12 o'clock noon. . funeral of the deceased Representative. X Webster, John Andrew, 14134A. The Chaplain, Rev. Bernard Bras­ Resolved, That the Secretary communicate Webster, Noble Leo, Jr., 142.95A. · kamp, D. D., offered the following these resolutions to the House of Represent­ Wehrman, Kenneth Edward, 14178A. prayer: atives and transmit a copy thereof to the Wertz, John Charles, _14160A. family of the deceased. West, Sammy Abner, 14202A. Most merciful and gracious God, who Resolved, That as a further mark of respect Westermark, Robert Valdemar, 14276A. art found by all who truly seek Thee, to the memory of the deceased the Senate do Whalley, William Louis, 13939A. grant that our minds and hearts may now take a recess until 12 o'clock noon to­ White, Harry Alexander, Jr., 14305A. morrow. White, John Sutton, 12227A. be kindled with a greater devotion · to White, Morris Douglas, 14320A. Thee and our beloved country. The message also announced .that the X White, Robert Charles, 14074A. Emancipate us from every sin which Senate disagrees to the amendment of White, Robert Golson, 11712A. darkens and defiles our souls and which the House to the bill