3426 CONGRESSIONAL RECORD- HOBSE· March 7 substitution of the food stamp plan for the en.actment qf H.R. 976, a proposed amend­ to the Natural Gas Act; to the Committee on present plan of distribution of surplus com­ ment of the Interstate Commerce Act; to Interstate and Foreign Commerce. modities for poor relief; to the Committee the Committee on Interstate and Foreign 85. By Mrs. ST. GEORGE: Resolution of on Agriculture. Commerce. Sullivan County, N.Y., Board of Supervisors, 83. By Mr. MONAGAN: Petition of the 84. Also, petition of the Public Utilities favoring the loc~tion of a jet airport in the Public Utilities Commission of the State of Commission of the State of Connecticut re­ vicinity of Pl.ne Island, N.Y.; to the Com­ Connecticut expressing its opposition to the garding enactment of proposed amendments mittee on Interstate and Foreign Commerce.

EXTENSIONS OF REMARKS

America Recognizes Amerigo Vespucci tute a hard-working and industrious another hallmark year for the motion group to whom American ideals and picture industry's finest hour. EXTENSION OF REMARKS traditions are precious. The Italian im­ The industry long has been an im­ im­ OF · migrants and the children of these portant element in California's economy. migrants are loyal and devoted to the Most of the studios are located in my HON. ALFRED E. SANTANGELO American democratic system. own congressional district. The indus­ OF NEW YORK The bonds of blood, understanding try directly employs thousands of peo­ and friendship between the people of IN THE HOUSE OF REPRESENTATIVES ple arid through its varied -operations Italy and America continue to grow over helps to employ thousands more in re­ Tuesday, March 7,1961 the years. Not only are the two coun­ lated industries throughout the country. Mr. SANTANGELO. Mr. Speaker, I tries linked as allies diplomatically, eco­ More important, it brings untold en­ have today introduced a resolution to nomically and militarily, but there is joyment into the daily lives of millions, commemorate on March 9 of each year also a growing link between the cultures both at home and abroad, where it has the birthday of one of the world's great­ of the two nations, an increasing inter­ won singularly warm acceptance as est explorers, Amerigo Vespucci. Amer­ change in education and the arts, and America's best-known export. ica, which adopted the name of this ex­ most of all there exists today a chain By encouraging higher cultural and plorer, has failed to do honor to the of understanding which is becoming technical standards of film making, the birthday of the man and I have therefore stronger each day. Let us continue to academy has helped make the American introduced this belated resolution to cor­ strengthen that chain of friendship motion picture the finest in the world. between Italy and America, and in this rect the omission. way we shall make both countries more Oscar is 33 years old this year. He The story of this great navigator secure in the future. and the rest of the movie industry cele­ teaches a lesson which we should learn The Federation of the Italian-Ameri­ brate this birthday on Monday, April very well. It is noteworthy that while can Democratic Organizations of the 17, and the "party," the awards show, this great country of ours was discov­ State of New York, Inc., annually grants will be seen and heard by millions on ered by Christopher Columbus, an awards to outstanding Americans of the combined radio and television facili­ Italian, it is named after Amerigo Ves­ Italian origin who demonstrate a pio­ ties of the American Broadcasting Co. pucci, another Italian. While Amerigo neering spirit into new frontiers, called and the Canadian Broadcasting Co. As Vespucci's first voyage to America was the Amerigo Vespucci Awards. The always, it will be an exciting and enter­ 5 years after that of Columbus, his let­ recipients of these awards for the year taining show and I urge all of you to ters and reports were widely circulated 1961 and in whose honor a testimonial watch it. in Europe. In one of these letters, he dinner dance is being given, are as called this continent ·the mundus novus, follows: New World, and in 1507 Martin Wald­ JosEPH P. ADDABBO, Member of Con­ Bulgarian Liberation Day seemuller of Friberg, a professor of geog­ gress, New York State, fifth District. raphy, drew up a new world map. In Guy James Mangano, Brooklyn, as­ EXTENSION OF REMARKS this map he used the printed word semblyman, New York State. "America., for the first time. As a con­ Michael J. Fusco, deputy commis­ OF sequence, our continent was called sioner, Department of Sanitation, New HON. PETER W. RODINO, JR. America, after Amerigo Vespucci. York City. The anniversary of Amerigo Vespucci OF NEW JERSEY E. Howard Molisani, manager and IN THE HOUSE OF REPRESENTATIVES serves to remind us that the bridge of secretary of the Italian Cloakmakers understanding and cooperation between Union, Local48, I.L.G.W.U. Tuesday, March 7,1961 Italy and America was not constructed Mrs. Angela L'Episcopo, civic and Mr. RODINO. Mr. Speaker, under recently. It is a process which has de­ charitable worker. leave to extend my remarks I wish to veloped over many centuries, from the I salute them. include in the CONGRESSIONAL RECORD very beginnings of the discovery of this text of a message sent by me to the continent. First it was the early Italian Bulgarian National Front of America, explorers, such as Columbus, John Inc., on the occasion of the celebration Cabot-Giovanni Caboto-Amerigo Ves­ The Annual Oscar Awards Show of Bulgarian Liberation Day. pucci, Verrazano, and others. Then The text follows: there were small groups of settlers from MARCH 1, 1961. Italy who found their way to America. EXTENSION OF REMARKS OF Dr. KALIN KOICHEFF, And during the past century there was Secretary, Bulgarian National Front of the mass immigration of Italians who HON. JAMES C. CORMAN America, Inc., New York, N.Y. came here with a burning determination DEAR MR. KOICHEFF: May I extend my to improve their lot and to help build a OF CALIFORNIA warm congratulations to the Bulgarian Na­ free and a great America. IN THE HOUSE OF REPRESENTATIVES tional Front of America on this memorable Tuesday, March 7, 1961 occasion. I deeply regret that my commit­ Thus, Italian immigrants have brought ments in Washington will prevent me from to this country the rich heritage of Mr. CORMAN. Mr. Speaker, I direct joining you. their wonderful culture, along with the attention of my colleagues to an The celebration of Bulgarian Libe~ation their passionate love for freedom. They affair dear to the hearts of Califor­ Day has special signlfl.cance to au people have made lasting contributions to nians-and to people the world over. everywhere who cherish freedom. It is on America in every sphere of activity, and I refer to the annual Oscar Awards this day that we recall the heroic Bulgarian the imprint of these contributions to effort of 1878, when Bulgaria was finally show, honoring outstanding film freed from the ruthless subjection of Turk­ American life and culture are visible achievements, by the Academy of Motion ish rule. It is on this day, toQ, that we all over this great land. They have be­ Picture Arts and Sciences. The nomi­ tearfully remind ourselves that Bulgaria is come a vibrant and meaningful asset nees for these awards were announced once again ruled by a totalitarian regime to American democracy. They consti- last week, and the selections promise not of their own choosing. 1961 CONGRESSIONAL 'RECORD-- HOUSE 3427 We are all very much· aware that the Bul­ to ·take land out of corn: and other feed support dominates the market and tre­ garian people of today are just · a5- ~eter­ grains and to divert it into beans. mendous surpluses have piled up in Gov­ mined to free themselves from Communist Apparently, the fact that the market ernment hands. dictatorship as were their grandf!'tthers in casting off the Ottoman Turkish -yoke. Let price for beans is above -the proposed The Government owns about $10 bil­ each of us hope and pray that they will support price does ·not count. . If it is lion in farm products which it has ac­ again meet with success and -that freedom profitable to farmers to: grow soybeans, quired through high supports. and liberty will soon reign once again in they will do so. The Government, it The holdings of wheat alone amount the Bulgarian nation. would seem to me, does not have to point to almost $3 billion and about $500 mil­ Sincerely yours, out the fact. Our producers have built lion is spent annually on subsidies. PETER W. RODINO, Jr., the most marvelous agricultural plant The holdings of corn and other feed Member of Congress. the world has ever seen. · They have done grains are more than $3 billion. so by producing the most profitable Let the fears of the soybean producers crops, and products in the most e:tncient be expressed in the somewhat plaintive manner possible. words of their president, Charles V. The Department's Soybean Program The bill before us is a part of the Simpson, of Waterville, Minn.: Government's scheme to get land out of Any moves by Government-- EXTENSION OF REMARKS feed grains. OF Section 3 proposes to punish farmers He said- who do not cooperate with the Gov­ which will upset the equilibrium established HON. RALPH F. BEERMANN ernment. within the soybean industry through the OF NEBRASKA It would give the Government the au­ announcement of support price levels which will make it difficult or impossible to sell IN THE HOUSE OF REPRESENTATIVES thority to sell corn and grain sorghums our products can only result in surplus Tuesday, March 7, 1961 at a comparatively low price so that non­ stocks, Government ownership, storage costs, cooperators would not benefit from the and the loss of years of work in the crea­ Mr. BEERMANN. Mr. Speaker, I higher support price-$1.20 or more for tion of markets. The transfer of the prob­ want to call the attention of the House corn-to those who take part in the lems of feed grains to our commodity today to the Department's soybean Government's program. actually solves ·no problems, but merely program. What this does is to give the Govern­ transfers them from an already surplus crop This program is to raise the support to one which has made a determined effort ment control of the entire marketing to sell its products. Soybeans must be kept price for soybeans from $1.85 a bushel machinery for corn and other feed in their proper price relationship to crops to $2.30 a bushel. The Secretary of Ag­ grains. such as corn, which compete for acreage, but riculture has the authority to increase On the one hand, the Government they must also be kept competitive to other the support without legislative action. would raise the price to cooperators oilseed crops both domestic and foreign. He already has announced that he plans through higher supports. Proposed support levels will, it is feared, to do so. To get this higher price, they would stimulate production of competitive oilseed have to turn their corn and other feed crops in other countries and cause loss of Yet, this hoist in soybean supports is present exports as well as making it im­ closely related to the pending legisla­ grains over to the Government for the possible to continue expansion of soybean tion. It is an example of disregard for Government beats down the price by product markets. the farmer and of the overall program dumping on the market. The Govern­ We will get needed acreage in 1961 with­ for a Government-controlled and domi­ ment then establishes the ceiling and the out price supports established at too high nated agriculture. floor for corn and feed grains. levels. The proposed support levels might It is an example of complete bureau­ We are told this is an emergency 1- well make it impossible to continue build­ cratic disregard for the wishes and in­ year program, but how often have we ing our markets at home and abroad, might heard this before? The emergency pro­ turn our crop into just another surplus terests of farmers. It shows clearly that commodity in spite of the determined efforts the professors and planners at the De­ grams become permanent. They go on of an industry which was not consulted in partment feel they know what is good for and on. We have with us today some the establishment of the proposed price the farmers. They plan to force their so-called emergency programs which support levels. views on the farmers, regardless, and to­ have been in effect since 1933. day we are being asked to help them Back to the soybean producers whose But, as I have stated, the Government wishes the Government has disregarded. does not pay any attention to Mr. Simp­ to do so. son and the other men who raise the soy­ Incredible as it may seem, the decision The question is: Who did the Depart­ ment of Agriculture listen to? Who sold beans. They are listening to Roswell to raise soybean supports was made with­ Garst, friend of Khrushchev. out consultation with the soybean this program to the Department? Apparently reliable reports say the We cannot do anything here today producers. about the soybean program. We can do Not only that. The producers do not architect of the soybean program was Roswell Garst, of Coon Rapids, Iowa. something about the companion scheme, want this increase, and have so informed H.R. 4510, the so-called feed grain pro­ the Department. Garst is a seed breeder and farm man­ ager, whose chief claim to fame is that gram. We can defeat it and throw a Nevertheless, the Department intends he is a good friend of the Soviet Dictator, real body block in the drive toward an to go right ahead. Nikita Khrushchev. He was host to agriculture controlled by bureaucrats This situation is astounding. Let me Khrushchev when the latter toured the and planners who pay no attention to repeat the circumstances so they can be United States ·in 1959. Garst, it is said, the farmers themselves. fully understood. has sold a lot of hybrid seed to the Rus­ The soybean growers, the farmers who sians and has also been their adviser on make their livelihood from the crop, were ways to improve their agriculture. If not consulted when the Department he raises soybeans, this activity is over­ H.R. 5153, a Bill To Increase the States' made the decision to raise supports from shadowed by his other operations. Most Share of Estate Tax Revenues $1.85 a bushel to $2.30 a bushel. assuredly, he is not regarded by the soy­ The growers, once they learned what bean producers as their spokesman. EXTENSION OF REMARKS was happening, informed the Depart­ But · the Department listens to him OJ' ment that they did not want the increase, rather than to the soybean growers and begged the Department not to raise themselves. HON. FLORENCE P. DWYER the supports. Why do the soybean producers oppose OF NEW JERSEY The Department holds their views ln the increase in their support price from IN THE HOUSE OF REPRESENTATIVES contempt, and will force the $2.30 on $1.85 a bushel to $2.30 a bushel? Tuesday, March 7,1961 them. · They are afraid that the hoist will ge~ What is the relationship to the pro­ them into trouble and will put them in Mrs. DWYER. jMr. Speaker, I want to posed action on soybeans and the bill be­ the unenviable position of the wheat­ call the attention.. of our colleagues to fore us today, H.R. 4510? feed grain, and some other producers. legislation which the gentleman from Well, as I understand it, the excuse As is well known, the support prices on North Carolina !Mr. FOUNTAIN] and I for the increase in soybean supports is these products have been too high. The have introduced, which would have the 3428 CONGRESSIONAL RECORD-· HOUSE March 7 effect of making available to the States given time to bring their tax laws into We do not intend to succumb to the a greater share of the revenues from the conformity. pressures of the gold miners, of the gold "Federal and State legislative implementa­ speculators, or of the Communists. The combined Federal and State estate taxes. tion of the Commission's proposals," said latter alone are said to own one-half of This legislation, H.R. 5153, implements Chairman Bane, "will make a major contri­ the world's supply, the value of which must the recommendations of the Advisory bution to improving intergovernmental tax be increased by every addition to the price Commission on Intergovernmental Rela­ relations and tax simplification." of gold on the world market. We need no tions, whose members and staff have The Commission selected this group of gold for our domestic economy. Americans devoted much time and thought to the taxes for priority attention, its report ex­ cannot buy or hold gold except by license need to simplify and make more equitable. plains, because legislative developments since for manufacturing purposes. There is no the operation and administration of the mid-1930's have impaired the effective­ need for a gold reserve for our currency. ness of the Federal credit for inheritance and Nevertheless, the law requires a reserve of estate, inheritance and gift taxes. This estate taxes paid to States. This credit pro­ gold equal to 25 percent of the total of our particular field of taxation has long been vision was enacted by the Congress 35 years outstanding Federal Reserve notes and the source of confusion, trouble and frus­ ago to safeguard the States' share of these liabill ties. tration, for taxpayers and administrators revenues and to facilitate interstate tax uni­ We can repeal that law, and much re­ alike. I believe this legislation can do formity. These objectives have not been spectable authority has urged that we do so, much to help simplify estate tax ad­ realized. without in the slightest impairing our credit ministration, reduce the costs of collect­ The estate-inheritance tax area, the Com­ standing or our economic situation. The ing the tax, help stabilize States' revenues mission found, is now characterized by tax primary purpose of our gold stock is, and overlapping and complexity, heavy tax com­ should be the international convertibility of from this source and in general remove pliance burdens for taxpayers, and relatively gold and the dollar at the fixed price of inequities and increase standardization high administrative costs, out of all propor­ $35 an ounce. in this important area of taxation. tion to the small contribution these taxes Please understand that I am not urging As a member of the Commission, Mr. make to most States' revenues. Property be­ that we ignore our balance-of-payments Speaker, I should remind our colleagues quests at death are now taxed by the Fed­ problems. They probably will be with us that the fact that the Commission is eral Government and by 49 States (all States always. Keeping prices competitive, in­ composed of members actively represent­ except Nevada). Gifts are taxed by the Fed­ creasing our exports, creating incentives· to eral Government and 12 States. This group bring money into our country, removing the ing all levels of Government in our Fed­ of taxes now contributes annually about $400 incentives that send or keep money abroad, eral system gives to this recommendation million to State and $1.6 billion to Federal and a readjustment of the contributions we an unusually authoritative :flavor. I revenues. and our allies make to world development hope the House will give it the considera­ The report represents the unanimous and stabilization, are all matters of impor­ tion it deserves. recommendation of the Advisory Commission tance. They all enter into the volatility of Under leave to extend my remarks in on Intergovernmental Relations, a permanent the flow of gold on the international scene. the RECORD, I include the text of a press bipartisan commission established in De­ It seems to me that Mr. Average American cember 1959 under Federal legislation. Its Citizen has a great deal more confidence in release issued by the Commission which 26 members include representation from the the dollar than many alarmists who should describes its recommendations in greater executive branch {3), the Senate (3), the know better. As proof of that statement, I detail. House (3), Governors (4), State legislatures direct your attention to the fact that for the The release follows: (3), mayors (4), counties (3), and the pub­ first time in any month in 8 years, more U.S. The Advisory Commission on Intergovern­ lic (3). savings bonds, E- and H-bonds, were sold during the month of January 1961, than were ~ental Relations today made public the redeemed, with the Treasury reporting that Commission's report and r~commendations for the coordination of State and Federal The 58th Annual Savings Conference of this new trend apparently will continue. inheritance, estate, and gift taxes. With only one exception, I have yet to This report, the first to be made by the the American Bankers Association hear or see a single statement to the effect Commission to the President, the Congress, that the so-called outflow of gold from the the Governors and the State legislatures, United States has not been that at all. It EXTENSION OF REMARKS has been merely an increase in the amount "contains a blueprint for coordinating State OF and Federal inheritance, estate, and gift of the claims by foreign governments against taxes and for increasing the States• share that gold. The difference is important, if HON. ABRAHAM J. MULTER for no other reason than that there is no of the revenues they produce," Commission OF NEW YORK Chairman Frank Bane said. safer place to store gold than in the United The Commission's recommendations were IN THE HOUSE OF REPRESENTATIVES States. Let me emphasize that while foreign claims developed against the background of more Tuesday, March 7,1961 than two decades of agitation for legislative on our gold have increased, the gold has remedy by Governors, legislators, tax prac­ Mr. MULTER. Mr. Speaker, yester­ not left our shores. As a matter of fact, titioners, and various national organiza­ day, March 6, I had the pleasure of the total gold supply in our country has in­ tions. addressing the 58th Annual Savings creased. During each of the years 1950, 1951, The Commission recommends to the Con­ and 1952, our gold stock hovered around the Conference of the American Bankers $22 billion mark, and earmarked gold (that gress that it increase the Federal estate tax Association at the Roosevelt Hotel, New credit for taxes paid to States so as to reserve is, gold in the United States held for foreign for the States a relatively large proportion York City. and international accounts) did not exceed of the estate tax in the low tax brackets and Following are excerpts from my re­ $5,600 million. a small proportion in the middle and upper marks on that occasion: From 1953 to 1957, inclusive, the amount of the U.S. gold varied between $21 billion brackets. This will stabilize State collec­ EXCERPTS FROM REMARKS OF HON. ABRAHAM tions from these taxes and improve their and $22 billion, and claims against that gold J. MULTER, OF NEW YORK, BEFORE THE 58TH by foreign and international accounts ran distribution among the States. The new ANNUAL SAVINGS CONFERENCE OF THE credit would be available to taxpayers only from $6 billion to $7 billion. The last 3 AMERICAN BANKERS ASSOCIATION AT THE years the gold we owned outright has after their respective States simplified their ROOSEVELT HOTEL, MARCH 6, 1961 tax laws and adjusted their tax rates to avail dropped by about $5 billion,. and the amount themselves of the estate tax revenue to ·be GOLD set asi9.e for foreign and international ac­ relinquished by the Federal Government. Before touching upon several specific counts has· increased by about the same The Commission recommends to the States pieces of legislation that will be dealt with amount. · that they adopt estate taxes in lieu of in­ by the 87th Congress, I would like to discuss The total gold on hand at the end of heritance taxes to reduce tax complexity, ease briefly a matter of more general interest and 1950 was $28,446 million, and 10 years later the compliance burdens of taxpayers and im­ probably of even more importance. We have at the end of 1960, it was $29,648 million, a prove tax administration. It recommends heard and read a great deal of late about net gain of $1,202 million. against a Federal credit for State gift taxes gold and the possible devaluation of the But says our alarmist friend: On demand, because this would force gift taxes upon all dollar. Some of it has been irresponsible, we may be required to pay out $11 billion of the States. Instead, it urges the States to some of it inaccurate and little of it more that gold. forgo gift taxation. The Commission's pro­ than half the story. That is theoretically correct, but just as gram could ultimately result in relinquish­ Let me put it as strongly as I can: absurd as saying that on demand every ing several hundred million dollars of annual No part of this administration, executive bank in the country may have to pay out Federal revenue to the States, depending or legislative, has any intention of devalu­ all of its deposits in currency. Unlike the upon the level at which the Congress sets ing the dollar, by increasing the price of depositor who may stUff his pockets or his the new tax credit. The loss of Federal gold or otherwise. bag with the money and walk o:ff with tt, revenue, however, will not begin for several There 1s no need to do so. Furthermore, no foreign claimant would be willing to pay years because the States will have to be doing so would accomplish no good. for the attendant cost of cartage, freight, 1961 CONGRESSIONAL-RECORD- HOUSE 3429 insurance, security, and storage, assuming An alternative proposal that has been bill. This bill will not be defeated because a safer place could be found for the gold. offered and will be considered by the Con­ some people think some of its provisions Even that, however, is not the full story. gress is that the Board be increased from are bad, and it will be easier to eliminate Foreign claimants would just about have three to five, with a provision that the sav­ those bad provisions and make corrections completed the transit of the gold when ings banks and the commercial banks each before the bill is enacted rather than after. they would be compelled to reverse the be represented on that Board. The objection I can assure you that if the principle of process and pay the same costs all over to that proposal-and there is some merit this bill is good, as I believe it is, a bill will again to get the gold back to us to pay to it-is that a board o! five is too cumber­ be enacted. their debts to us. What most of the some. TAXATION theorists have overlooked apparently, is that What I would like to see accomplished is The strongest objection urged against the foreign claimants owe the United States an the enactment of a bill which would combine bill is that the bill will enlarge and expand aggregate sum equal to about the same FDIC and the Federal Savings and Loan In­ practically tax free mutual institutions, amount of gold we hold for them. surance Corporation into one agency, with whereas the American Bankers Association Are the debtors and the creditors and the each of the segments o! the banking indus­ has gone on record for eliminating such tax amounts identical? Of course not. But try represented on the new Board. free advantages. The answer to that objec­ neither are they identical in any banking The objection tha"l; immediately appears is tion is the same answer I have been giving system. that there are many differences between the over the years to the ABA on that subject, I am sure that none of you would deign two funds as to asset-s, as to premiums paid, and to all who have voiced their opinions to call anyone a sound banker who sug­ as to liability, both type and amount, and to me with regard thereto. gested anything near a 100 percent reserve as to the basic difference of operation of the The proponents of this tax legislation are for ap.y purpose. institutions whose accounts are insured. barking up the wrong tree. The complaint Now !or a few specifics. I will not discuss To my mind, these are not difference~ in is based primarily upon an alleged inequity. today any of the bills which soon will be principle, but rather differences in technique Assuming that the inequity exists, I do not law covering extended unemployment com­ of operation. All of this can be satisfactorily intend to compound the inequity. I sug­ pensation, increased minimum wages, aid covered so as to assure maximum protection gest that we eliminate it. There are two to depressed areas and housing. Although to all concerned-and I now include stock­ ways to accomplish that. Assuming that none o! those bills will satisfy everyone, I holders, shareholders, depositors, and the there is a different tax base for commercial am certain satisfactory legislation will be en­ general public-in their individual capacity banks than there is for mutual banks and acted which will improve our economy and as well as in their aggregate capacity as the associations, · then if the commercial banks assure our economic progress and our general U.S. Government. can make out a ca-se, it should be to equalize welfare. NATIONAL MUTUAL SAVINGS BANKS the base. The only inequality that any com­ FEDERAL RESERVE BOARD mercial banker has thus far pointed out to As most of you know, for many years I me is that the amount of reserves a com­ Some time ago Mr. Martin, Chairman of have been introducing bills to extend the mercial bank may charge off before com­ the Federal Reserve Board, recommended dual banking system to mutual savings puting its tax liability, is less than that per­ that the term of office of the Chairman o! banks. We have a dual system as to com­ mitted to the mutuals. The simple way to that Board should coincide with that of the mercial banks. We have a dual system as to remove that inequality is to permit the com­ President of the United States. savings and loan associations, and we have a mercial bankers the larger reserve deduction This does not mean that the Chairman dual system as to credit unions. We even if they are entitled to it. Mutual institu­ should be subservient to the President. have a dual system: as to regulation of the tions, like every other individual or group But it does mean that he should be his sale of stocks to the general public. There is no sound reason why we should of taxpayers will never be heard to complain spokesman, when he needs a . spokesma~. about the reduction of taxes, if it is done It would have been destructive o! public not have a dual system as to savings banks. If we read the legislative history o! the fairly and without discrimination. confidence in the system, to have sought to But the tax inequality or inequity that is accomplish such a change while there was various enactments on these subjects, we find in every instance the same objections basic in the financial systems of our coun­ vigorous difference of opinion ab~ut fiscal try is precisely the same throughout our and debt management policies between the were raised against the enactment of the Federal legislation, that are now being urged economy. Except in wartime, or dire emer­ Board, the President and/or the Legislature. gency, there is no excuse for taxing earn­ Today, for the first time ih 10 years, we against this proposed legislation. The trouble with most objectors is that ings twice. Except under such circum­ have substantial agreement between the stances, there is no excuse for a so-called Board, the President, the Treasury and the they overlook the fact that when the law established a quasi-monopoly in the bank­ surplus, or excess-profits tax. When an in­ Legislature. · ing industry, it was done not for the purpose dividual puts his money to work, he files a I suggest this is the time for Congress of throttling competition, but for the sole return and pays a tax on his earnings. to amend the Federal Reserve Act accord- purpose of safeguarding, first the money of When he puts his money to work through ingly. · the public, and second the money of the the instrumentality of a partnership or a joint venture, or a trust, he may file two FEDERAL DEPOSIT INSURANCE CORPORATION stockholders. A sound banking system is returns, but he pays only one tax. , It is my hope that this Congress w1ll con­ more than vested with the public interest, it is identical therewith. .. When he puts his money to work through sider and enact a bill to reconstitute the a cooperative organization or a mutual insti­ Board of the Federal Deposit Insurance Cor­ Those. who oppose this bill by saying that it will weaken the State banking system, and tution, he again very properly is called upon poration. that those States which have no mutual to pay only one tax. The one place in· our Without casting any reflection upon our savings banks can enact legislation to estab­ tax sys~m where that does not apply, is good friend, Ray Gidney, the incumbent lish them if they so desire, are begging the when an individual or corporation invests Comptroller, for whom I have the highest question. The dual banking system is either money by the acquisition of corporate stock. respect and regard, it is my :firm conviction good principle or bad. If it ls bad, then Only under those circumstances do we that no chartering and supervising authority those who are objecting to this bill becaus~ find the profits being taxed twice, first when should be a part of an insuring agency. The it weakens the State systems, or will create they are earned by the corporation, and then two functions are separate and distinct, and undue or unfair competition to the State when they are received by the owner of the should be kept so. systems, should forthrightly launch a move­ corporation, that is the stockholder. Worse A more basic objection is the double bur­ ment to eliminate the dual system. If the yet, if the corporation doesn't pay out its net den placed on· the State banks, savings an~ dual system is good in any area of bank­ earnings as required by law, a severe pen­ commercial, that the national banks are free ing, it is good in every area, and should be alty is imposed and taken out of the earn­ from under existing law. If we believe in a uniform throughout the country. ings that were left after payment of taxes. dual banking system, then we must make it Other objections raised to the bill go not When the Congress granted a small tax work. Such a system can succeed only if to the principle, but to the details thereof. deduction for a percentage of dividends, I there is true duality. I am sure that the To those who oppose this bill because they hoped we were making a real start toward national banks would rise up in arms against don't like one or more of its provisions, or the eventual repeal of all taxes on dividends. any proposa.l to amend the National Bank­ think that those provisions should be im­ The project of the ABA and of all persons ing Act to provide that they must submit to proved, or that the author has overlooked who are interested in corporate enterprises, the additional examinations, supervision and some internal operational or management both public and private, should be to fight authority of the banking supervisors of the problems, I suggest to them that they the ·effort to repeal that dividend exemption. States in which they operate. ·Yet that is quickly come forth with suggestions for the They should unify their forces in support of precisely what happens when the national improvement of the bill. extending the exemption; until we see the banking supervisory authority serves as a Last year my bill had bipartisan sponsor­ eventual complete repeal of the dividend tax. member of the FDIC Board. ship in the Senate as well as in the House. What I have just said applies with equal My bill seeks to eliminate the Comptroller It will have such sponsorship again this year. force to those misguided souls who each year of the Currency from that Board. I want to I a.xn now working on a new draft of the write me and urge the enactment of a tax emphasize' it is not directed against Mr. Gid­ bill which I hope will be an improvement upon cooperatives. ney. It does not and cannot affect his term on prior drafts. Mter that bill is intro­ I have carefully analyzed the arguments of office. It will apply, if enacted, only to his duced, I am certain that we will proceed pro and con advanced on this subject by the successors .. to hearings,· and I hope bring out a good financial institutions. i am convinced that 3430 CONGRESSIONAL RECORD -HOUSE March 7 the inequities that the commercial bankers state of the Union addresses. The outgoing tiu.u e to do so. I think that the greatest sys­ attempt to establish, add up to a .strawman, President saw few problems. The incoming tem of public education in the world can which is blown away by the first slight breeze. President saw many. provide the education for the minds of· all If there should be a tax on the mutuals To many people in this country, a man its youngsters. I think the nation that has before they pay the net earnings to their who sees problems realistically is a "prophet telephones and cars and refrigerators and shareholders and depositors, then the inter­ of gloom and doom." It seems to me that a television sets for nearly all its citizens can est which commercial bankers pay on their person can look realistically Without rose­ produce what is needed for the space age. thrift and time accounts should not be a colored glasses and not be a pessimist. I think that a country that can ·produce more deductible expense before arriving at the tax­ I think of this as I would the doctor exam­ food than it needs can lead the way in find­ able income of the commercials. The fact of inlng a patient. He cannot say: "Your ing new uses for abundance and lead the way the matter is that the total amount of inter­ symptoms seem to indicate cancer, but I do toward ending starvation in this country est and dividends paid to savers and stock­ not want you to have cancer so I will treat and in the world. holders of commercials, is far less than the you for a sore throat." Also the doctor can­ It will take daring. But it also took dar­ total amount paid as interest and dividends not say: "Your symptoms indicate a sore ing to open up Am.erica's West. It will take to depositors and shareholders in the mu­ throat, but you can have cancer so we had the best that America has. tuals. It the commercials are serious in better operate." But an America that 1s being led to their contention for equality-let's go all the It appears to me that too many symptoms greatness will once more rise to greatness. way. Let's impose upon them the same re­ of an unhealthy economy have been glossed When America once more puts its in­ quirements we impose upon the mutuals by over by the outgoing President. I do not dustrial production to work producing, when requiring that time and savings accounts in need to call to the attention of this audi­ farm produce goes into use instead of into the commercials may be invested only in the ence the fact that farm income as a whole storage bins, when skilled workers go back same investments permitted to the mutuals has dropped 25 percent in the last 8 years. to work, when our brainpower is harnessed and let's require that for those funds the Employment today off the farm is in an both for shinier cars and for weapons and commercials must carry the same high re­ even more dangerous position. space ships, America Will have met the chal­ serves as are required of the mutuals. If Now, I know it is possible to point to lenge of the new frontier of the sixties. We this demand by the commercials for equity growth figures and say that all is well. will not have to worry about a challenge continues much longer, it would not surprise But all is not well. from Moscow or Peking or Havana. me to see the mutuals come forward and say The growth of this Nation's economy has When America does her best, she has no that they too can render every service that not kept pace with infiation and the growth challengers. She will show the way to world a commercial bank can render, and seek the in population. In other words, inflation and peace and prosperity. authority to do it. Let us not overlook the more people should have forced us to grow I know that all Americans know this. I inequality that exists, that requires the mu­ faster than we have. The misery and hope­ hope all Americans Will join with me in tuals to pay for the use of almost every dollar lessness of unemployment is more wide­ the prayer that the ideas, the drive, the With which they operate (at least 93 percent spread than ever since the great depression brains of those who have begun the job thereof), while the commercials are per­ of the 1930's. , . of building a .new America for the new fron­ mitted to use 70 percent of their resources . The warning for this state of affairs came tier will be successful. (that is their demand deposits) free of cost. in the persistent recession on America's Our fear,. if any, today is not of commu­ My final word to you is that there is no farms. These conditions always foretell nism. Our choice of our system of govern­ need for businessmen, whether bankers or hard times in the cities. And unemployed ment was because we believed in freedom. industrialists, small or big, to fight each workers cannot buy the abundance of Amer­ The aim of our representative democracy other. They should stand together fighting ica's farms or the abundance of her fac­ is not to destroy communism. Our aim is to eliminate unfair and discriminatory.prac­ tories. a full life in dignity and freedom and with tices in business and in government. There is nothing so expensive in America individual initiative a valuable part in the as a man who does not produce. He adds operation of the whole. nothing. Yet, he must be supported. < Communism flourishes in a society where Recession is expensive. It is most expen­ despair an~ hunger have become dominat­ sive in the personal misery it causes. It Capital Budget Makes Commonsense ing forces. is also expensive in the failure to produce A democratic form of government is what needs to be produced. basically one of a free society. There are EXTENSION OF REMARKS In 1958, this Nation ran up the largest .no limits to a free society or of the people OJ' deficit in history--$12 billion or $12,000 mil­ within it. lion. Was it because of some wild spending The REA is one of the Nation's greatest HON. HUBERT H. HUMPHREY program? No, indeed. examples of people working together in We did not spend more that year; we O'F MINNESOTA freedom, With governmental help in a form earned less. of cooperative private enterprise. It is a IN THE SENATE OF THE UNITED STATES The recession produced less taxes than had great example of freedom, and benefit for been anticipated. It is that simple. people. Tuesday, March 7, 1961 The threat of another recession such as Mr. HUMPHREY. Mr. President, I that of 1958 faces us again today. But it I do not need to tell you of how and why is only one challenge faced by this Nation REA was started and of what it has accom­ ask unanimous consent that an address plished. I do not need to tell you of the delivered by Senator VANCE HARTKE be­ in 1961. Some are new; some are old. There is a threat from Red China as well financial returns it has given the Federal fore the National Rural Electric Coop­ as Soviet Russia. Within 90 miles of our Government. erative Association at its annual meeting Florida shore lies another Communist Several cooperatives have paid out their in Dallas, Tex., on February 16, 1961, be threat-Cuba. In Laos, a SEATO ally fights loans; many are paying ahead. printed in the CONGRESSIONAL RECORD. for existence. The loans that were granted for rural elec­ There being no objection, the address We find ourselves surpassed in many fields trification and which are being made are, in was ordered to be printed in the RECORD, of science and technology. Yet one-third fact, investments in America's future. They as follows: of our brightest youngsters cannot afford have not alone lighted farms and small com­ college. munities, they have produced markets for CAPITAL BUDGE'!' MAKES COMMONSENSE Our farms produce such abundance that milking machines, washing machines, re­ You w111 excuse the play on words if I say the abundance itself is regarded by some frigerators, and hundreds of other elec­ at the outset that I come to Dallas to ad­ as a curse rather than a blessing. Yet mil­ trical appliances. They have built a better dress this meeting from a city that is elec­ lions in the world are starving and thou­ America. tric With excitement. Such has been the ad­ sands of our own people in America subsist There are other such expenditures of the vent of the new Kennedy administration. on meager handouts of food from relief Federal Government which are literally paid These are, indeed, busy days in Washington offices in their communities. back with interest in cold cash. And there !or all of us. Without knocking the old administration, are many others from which the benefits are · A new mood appears to have taken hold of we can look forward to new drive, new paid back in other ways than in cash. There the city and the people in it. I hope these energy, and new ideas for the new decade, are conservation, reclamation, flood control, remarks are not misunderstood. I have the the new challenges, the new frontier. and development programs. There are loans highest respect for President Eisenhower If we set out to solve our problems, to to communities for waterlines and sewers, personally and I feel that America owes him make this a stronger and more prosperous for schools, for college dormitories, and a great debt for his long years of service. He -nation, a safer and more peaceful world, we dozens of other things. is respected throughout the world. He is can meet the challenges and the problems To consider these capital outlays, these admired in this country for his sincerity, de­ of the new frontier of the 1960's. We can investments, as expenses of government is a votion, and honesty. meet the challenge to the minds of men. distortion. No private business does so. It But now is a time to look ahead, glancing I think that the nation which unlocked would be as though a private power utility behind at history only to learn from the the secrets of atomic energy can find the built a generating plant and carried the full past as it affeets the future. answers to heart disease and cancer. I think value on its books as an expense all at one The d.iiferences in views of the same situa­ that the nation that has produced the time. Instead, such companies amortize tion are seen most graphically in the two world's highest standard of living can con- these capital investments over long periods. 1961 CONGRESSIONA-L RECORD-. HOUSE 3431 It is much more sensible for the Federal business ingenuity has come forward It is to be hoped that this leadership Government to do likewise. with worthwhile proposals and ideas in in international business relations will There have been over recent years several proposals for separating this kind of expense the effort to obtain a solution of critical stimulate other American business firms or outlay of funds. Generally, these plans problems of the period. This time it is and executives, even in areas until now provide for an operating budget-one In no different. Our problems of the pres­ devoted almost exclusively to the Amer­ which all of the ordinary expenses of gov­ ent day are being tackled with new ideas ican market, to broaden their interests ernment are spelled out. In addition to and renewed vigor. and create new ideas. It should serve this, the bills provide for a separate report Let me cite one such example which to increase business throughout the on outlay for long-term projects which are has come to my attention. On May 13 world, as well as create a level of inter­ investments in the country's future. This of this year an interesting event will take change of ideas, methods, and techniques section, in turn, is broken down to show place in Rome, Italy, which has much those capital expenditures which will be paid which will undoubtedly prove to be bene­ back. In this category belong REA loans. significance for us. For the first time ficial for all concerned. Capital budgeting of this nature would in the history of the men's clothing in­ reflect a true picture of expenses and invest­ dustry, an American men's clothing ments. It would lead to a more intelligent manufacturer will present in Rome a understanding of what the Government is collection of men's fashions before an Bulgarian Liberation Day doing in the field of investments in Amer­ audience of European businessmen, gov­ ica's future. It would show taxpayers what ernment officials, social leaders, and of their money is going for current operat­ EXTENSION OF REMARKS ing expenses and what to capital expendi­ others. OF tures. Aware of the urgent need to increase This budgetary plan is endorsed by the American exports and the sale of U.S. HON. SEYMOUR HALPERN platform of the 1960 Dem:ocratic National products abroad, Petrocelli Clothes, Inc., OF NEW YORK Convention. While this does not assure its of New York, a leading manufacturer of IN THE HOUSE OF REPRESENTATIVES passage, I am sure that the chances for this men's clothing, will display a collection kind of legislation in the near future is good. of such clothing at the Grand Hotel, in Tuesday, March 7,1961 I think that this type of law will help Rome. It is hoped that this showing will Mr. HALPERN. Mr. Speaker, on create better understanding and greater ac­ create and stimulate a new trend in the March 3, 1961, a tribute was paid to ceptance of what we are trying to do in this field of investment in powerlines and dams men's clothing industry. Bulgarian Liberation Day. At this time and community improvement loans. In the past decade, the fashionable I was inadvertently prevented from par­ As we make our system work better, we look for men had gone abroad to Italy ticipating. But in view of the impor­ shall no longer find those among us worried and to England for its design stimuli. tance of this commemoration I would over whether we are being approached or Thus, we had the Italian look, the con­ like to include in this RECORD my state­ overtaken by potential enemies. Our own tinental look, and more recently the ment on this subject. successes will be enough to sustain us. As English look, which have all had their For the past 83 years March 3 has I said earlier, our aim is not to destroy inftuence on the styling of men's clothing been commemorated by the the entire communism or to best communism. Our aim is a full life for all in freedom in America. To these fashion forces, Bulgarian people, irrespective of political and dignity. When this system is working at the American men's clothing industry persuasion, as the Bulgarian Liberation its best, it need not aim to destroy any has added the know-how of mass produc­ Day. The Act of San Stefano, signed other. It need not worry about destruction tion. Until now, however, this was done on this day by the imperial Russian at the hands of any other. Freedom will solely for the American male and the Government and the Ottoman Empire, excel becaus freedom provides the environ­ American market. restored the independent Bulgarian State ment which can bring out the best in men. In order to meet the need for increas­ and ended a 500-year foreign oppression ing American know-how and business of the Bulgarian people. throughout the world, Petrocelli Clothes The liberation of Bulgaria followed a has decided to reverse the trend and has long self -sacrificing struggle for free­ First Showing of American Men's accepted the invitation of leading Italian dom led by such gallant patriots as Fashions in Rome business firms to present the interna­ George Rakovski, Vasil Levski, and tional merger collection of American Christo Botev, and was immediately pre­ EXTENSION OF REMARKS fashions for men. These fashions will ceded by a national uprising which won OF now be shown in Italy on May 13. the sympathy of the world and the in­ This common experience of interest in dignation of all humanity, led by Wil­ HON. VICTOR L. ANFUSO fashion can be a productive force- liam Gladston, against the outrageous OF NEW YORK atrocities committed by the much Say Mr. Sam Eisenberg and Mr. Tony IN THE HOUSE OF REPRESENTATIVES stronger oppressors. Yet this uprising Petrocelli, executives of the firm- made European intervention unavoid­ Tuesday, March 7, 1961 by showing European retailers and manu­ able and Bulgaria was liberated. Mr. ANFUSO. Mr. Speaker, it is very facturers how American manufacturers have learned to coordinate Italy's fashion influ­ In their long history the Bulgarians interesting to note that under our new ence with the know-how of American pro­ have made a humble but important con­ national leadership American initiative ductive techniques, in order to make avail­ tribution to European civilization and and imagination in private enterprise is able clothes of high quality at a price below have withstood their right to independ­ once again coming to the fore. People the cost of custom tailoring. We have here ence and freedom against powerful em­ in every economic activity of the Nation an international merging of ideas which pires and foreign cultural inftuences. are coming up with new ideas and sug­ should bring America's famous garment cen­ The Byzantine Empire, with illustrious gestions, some of which are beginning to ter, with its highly skilled craftsmen, de­ culture and military might, failed to take root to the benefit of the entire signers, and business executives, closer to subdue and assimilate the Bulgarian country. their European counterparts. nation. The Ottoman Empire crumbled One of the major problems facing the The American and European press after a five-century rule in the Balkans, new administration-a problem which have shown great interest in this inter­ but the Bulgarian people survived. has received much attention in the press national event. March 3 opened the way for the Bul­ and has aroused considerable discussion One important phase of this event garian people to join again the com­ in Government and business circles-is should not be overlooked. As an added munity of European nations. the problem how to stabilize the ftow of gesture of friendship between our two The first Bulgarian Empire, which dollars from this country, and yet main­ nations, the receipts of the fashion pres­ lasted from 861 to 1018 A.D., became the tain a more equitable balance of trade. entation in Rome will be donated to a cradle of the Slavic civilization. It was The Kennedy administration now has very worthy charitable cause; namely, here that the work of the apostles of the under advisement various plans to deal to Monsignor Carroll-Abbing for his Slavs, Sts. Cyril and Methodius, the first with this important matter in our eco­ work in the world-renowned Boys Town Slavic alphabet, found a fertile soil and nomic life, which at times has taken on of Italy. Thus, we have here a fine developed into a powerful literary tra­ threatening and critical proportions. example of combined business and char­ dition continuing up to this day in Rus­ As has frequently occurred in the past, itable efforts which in itself is a heart­ sia, Bulgaria, Ukraine, Serbia and- Bye­ in times of peace and in war, American warming relationship. lorussia. This literary tradition began 3432 CONGRESSIONAL RECORD- HOUSE March 7 in Bulgaria in the ninth ~ century, was the commer.cial fisheries in all of the der contract arrangements, however, as originally based on the Old-Bulgarian States to formulate a widespread and is done with the existing fund, the Sec­ language, and subsequently spread consistent effort toward proper conser- ' retary would apportion the money to the throughout the eastern Slavic world to vation and utilization in the entire field States according to a formula based upon form the basis of the national cultures . of fisheries. the proportion which the value of raw of the Slavic nations. Using Alaska as an example, a brief . fish landed and the value of manufac- It was in Bulgaria that the ancient historical statement of background will , tured fishery products of each State Christian civilization, represented by illuminate the overall problem: . bears to the total of such items attribut­ Byzantium, was converted into a Slavic- The history of fishing for salmon in able to all the participating States. The Byzantine civilization, a kind of cui- Alaska on a commercial basis goes all money so apportioned would be distrib­ tural revolution which reflected the spirit the way back to 1878 when the first uted only for carrying out projects ap­ of freedom and independence manifested canneries were established. By 1928 proved by the Secretary of the Interior. many a time by the Bulgarians. · Alaska had become the world's principal Under this formula, for example, and ~he Bulgarian exiles abroad, loyal to salmon producer and the Territory's postulating approval of the projects, the national tradition of freedom and largest single source of revenue. The Alaska would get about $600,000 per year independence, joined in various groups salmon pack increased from about 2 mil- · from the second fund to use under its to support the struggle of the Bulgarian lion cases in 1905 to over 6 million cases · own management for fishery rehabilita­ people for freedom from communism and in 1928 and then to over 8 million cases tion projects including stream clearance independence from Soviet domination. in 1936. However, these mounting re- and spawning ground development. This The Bulgarian National Front of Amer- turns were obtained by increasing the ~ would be in addition to the above men­ lea, representing the patriotic younger use .of fishtraps which eventually pre- tioned allotments from the existing fund generations in Bulgarian politics, is on vented enough escapement to the salmon for technological, biological, and related the forefront of this struggle. spawning grounds. Warnings were research programs. This proposed new In 1954 the Bulgarian National Front given, but under Federal management fund, applying to all States managing of America organized the first solemn by an absentee bureau no attention was commercial fisheries, should attract the celebration of the Bulgarian Liberation paid. The runs began to decline. By support of Members of Congress from all Day in New York. Ev.er since this day 1941 the pack dropped to 6,906,503 cases. such States, and I would appreciate the became the national holiday of Ameri- The continuing decline brought the interest and support of my colleagues. can Bulgarians and an uninterrupted Alaska salmon pack to the low ebb of This legislation will be introduced by tradition in commemoration of those 1,600,000 cases in 1959. Senator ERNEST GRUENING, of Alaska, in who have given their lives for the liber- Through these years Alaskans fought the Senate. ation of Bulgaria from Ottoman subju- vigorously for abolition of the traps, gation, those who have fallen in the which, combined with seine boat activi- struggle against Communist oppression ties. and the use of other :floating gear, and in salutation to those who continue constituted serious overfishing and de­ Address by Hon. Alexander Wiley, of their struggle for freedom in Bulgaria. pletion. Incidentally, Oregon, Washing- Wisconsin, Over Wisconsin Radio ton, and British Columbia, managing their own fisheries, abolished such traps Stations in the 1930's. Alaska, as a Territory, Commercial Fisheries Rehabilitation and however, lacked the political strength to EXTENSION OF REMARKS Development prevail upon the successive Federal reg­ OF ulatory agencies to abolish the traps; HON. ALEXANDER WILEY EXTENSION OF REMARKS which was accomplished only upon the advent of statehood. Accordingly, when OF WISCONSIN OF Alaska took over the fisheries and abol- IN THE SENATE OF THE UNITED STATES HON. RALPH J. RIVERS ished the traps on January 1, 1960, it Tuesday, March 7, 1961 OF ALASKA inherited the wreckage of canned salmon Mr. WILEY. Mr. President, our coun- IN THE HOUSE OF REPRESENTATIVES industry avarice and mismanagement try, if it is to meet the great challenges by absentee bureaus. of the times, needs, I believe, a revival Tuesday, March 7,1961 Because of the serious situation in of the adventurous, pioneering spirit, Mr. RIVERS of Alaska. Mr. Speaker, Alaska, the Alaskan congressional dele- which has marked the history and prog­ today I introduced a bill designed to gation is taking a leading role in this ress of the United states. assist in the rehabilitation and develop­ matter. Analysis to date indicates that For centuries the "rocking chair ex­ ment of the commercial fisheries of the the most feasible approach would be leg- perts" at each stage of progress have United States. Properly managed and islation to amend the Kennedy-Salton- said: "We have arrived. There is little utilized our commercial fisheries consti­ stall Act under which the Secretary of left to be done." tute a self-perpetuating resource which the Interior presently administers a fund By contrast, the enterprising spirit of may be cultivated and harvested on the made available each year for fisheries re- current, and past, times, has found the perpetual yield principle. Only re­ search. In addition to Federal Bureau of heritage of history not a foundation to search plus rehabilitation and develop­ Fisheries research, the se.cretary now al- rest upon, but rather, to build upon. ment projects can make possible large lots money to ~tate ~sh~ne~ departments The 1960's, I believe, offer such special yields enabling maximum utilization by and othe:r: qualified mstitu~IOns ~n a ~on- . challenges in almost all aspects of us and our children and our children's tract basis, for technological, biological, human life and world progress. children. · and relate~ res~arch programs. The Recently, I was privileged to comment With regard to my own State of Alas­ money put I:r;>. said ~und each year has on what, in my judgment, is the need for ka, the situation is extremely serious be­ been an amount. eqmvalent t? 30 percent , revival of the spirit of pioneerism which cause of the depletion of Alaska's once of the gross receipts from duti~s collected has marked our history. great salmon runs, now depleted to al­ under the customs l~ws on lmports. of I ask unanimous consent to have ex­ most the vanishing point because of in­ fishery products durmg the precedmg cerpts of the address printed in the dustry exploitation and Federal mis­ year. Based on 1960 figures, the amount RECORD management during the years when in the Kennedy-Saltonstall fund for · . . . 1961, already budgeted, will be $5,321,000. There bemg no obJe~tiOn, ~he excerpts Alaska was a Territory. Now that the 'll · t · t d d ld t · were ordered to be prmted m the REc- State of Alaska has assumed jurisdiction M Y bI JUS m ro uce wou crea e ORD as follows: and abolished the fishtraps, underwater another fund, also composed of an ' • , corrals, fishing is being intensely re­ amount eqUiValent tO 30 percent Of the REVIVAL OF 'PIONEERING SPmiT' TO MEET stricted to allow adequate escapement gross receipts derived from duties im- CHALLENG~ oF SPACE AGE posed on imports of fishery products · TOday the Nation is attempting to find of the salmon to the spawning grounds . . . ' . ways to more effectively resolve its economic and thus sow the seeds for large runs in which would also be admmistered by the problems· strengthen our defenses· reach the future. However, I have considered Secretary of the Interior. Instead .of al- further ~utward into space !or new' knowl­ in my bill the situation as pertains to all locating moneys in this second fund un- edge and control of the forces and elements 1961 CONGRESSIONAL RECORD- HOUSE 3433 of outer space; better meet fundamental · nlcians, planners, leaders, and others es­ Uncle Sam needs to take action to help spur human needs; withstand-and counter-the sential to domestic life and progress for our business and industrial activities, to create Communist threat to our survival; · and J. country; . more jobs, and generally to improve our eco· create a climate in which oocial,- economic, -2. Legislation to provide stiffer penalties . nomic outlook. I am not one, however, who political differences ~among nations can be · for violations of- Federal laws on the distri­ beiieves that Uncle Sam must do the whole accommodated, or negotiated; and a greater bution of obscene literature. job. On the contrary, I believe we are over­ percentage of the world's resources can- be 3. Urged a special study on nonvoting in looking our greatest potential for economic channeled into constructive--not destruc· the United States: In the 1960 election, progress if we ignore or attempt to usurp the ti ve-programs. about 35 million of our 104 million eligible respo:nsibility of States and local commu­ Today, the world is spending about $14 voters did not-for one reason or another­ nities to act effectively in promoting eco­ million an hour on arms and armies ~ The , exercise their· voices· at the polls. nomic progress. Across the country we find United States alone spends about $46 bil· · 4. Proposed a proclamation for a National that problems differ widely. Consequently, lion a year on missiles, manpower, tanks, . Il'l.vest-in-America Week. The purpose would we need programs tailored to each specific guns, ships, military explosives, and mUi· be to encourage more folks-whenever they situation. This requires constructive, crea· tary aid to allies. This amounts to . about . can- to invest savings in our free-enterprise tive efforts, not simply by the Federal Gov­ 9:2 percent of our gross national product . system. Currently, about 13 million Ameri­ ernment, but also by States and local com­ and requires a gr.eat concentration of re· cans are shareowners in public corporations. munities. sources and manpower. rr we, and the Encouraging more people to invest would world, could pool this great effort for peace· . not only spur economic progress for the ful purposes, .living standards for all peo· country, but would enable us to more effec­ Remarks of Hon. John P. Saylor on Im~ pie--particularly the less fortunate-could tively deal-with our current ·economic prob­ be increased substantially. lems. poration of Residual Fuel Oil We recognize, of course, that the Com· 5. Cosponsored legislation in the interest munists, relentlessly, are attempting to gain of ·the Menominee Indians. The purpose E~TENSION OF REMARKS control of the world. Consequently, we would ·be to equitably terminate Federal con­ have no choice except to maintain deterrent trol; and better enable the tribe to hold 01' power to thwart their goals. Until the responsibilities within our 72d county, Communist threat .to freedom is defeated­ creat ed to accommodate the tribe's integra­ HON. ARCH A. MOORE, JR. or at least neutralized-it will be necessary tion into the social, economic, political sys­ OF WEST VIRGINIA to keep up the essential, though costly, de· tem of the State:. IN -THE HOUSE OF REPRESENTATIVES fenses. Despite •this burden, however, we can-and must-work creatively and con­ 6. And urged action by the Departments Tuesday, March 'l, 1961 fidently toward solution of _the many prob.­ of Labor, Agriculture, Commerce, and other lems that face us and the world in many Federal agencies, to help meet the serious Mr. MOORE. Mr. Speaker, I cannpt , areas. eyonomic problems of ·. unemployment in comprehend the necessity of the .order Realistically, there at:e a gr_eat· many fr():q.­ hard-hit communities in northern Wiscon­ of Hon. Stewart Udall, Secretary of the tiers confronting humanity. To adventur­ sin and other areas of the-State. Interior, in incteasing the import quota ously explore them, we need a revival of the · IN'l'ERNATIONAL on residual fuel -oil· from 530,00()- · to · pioneering spirit. Thi~ is true, :q.ot just in · In a shrinking world, we are no longer 6.30,000 barrels per day for the quar.ter : spa~::e, but also in farming, indus.try, busi­ isolated Rather, peace or war may depend­ ending March 31 and I have registered ' ness, human welfare, and other fields of in many cases--upon solution to crises in my strong protest· thereto. human endeavor. · the far corners of the earth. To a large degree, progress is Jimited­ . Now let:s quickly scan the global horizons. Oil importers have long made it a or extended-:-by man ~& vision, imagination, In Africa, an explosive area of the world, practice to exhaust their quota long ·be- · adventurous spirit, and willingness to work conflicting internal interests in the Congo fore June 30 and then with anguished to transform dreams into reality. and other newly emerging countries are diffi­ cries th.at critical users of residual oil True, we live in fast-changing, complex­ cult to reconcile. Too, Mr. Khrushchev is are without fuel, attempt to use this as and sometimes perplexing-times. How­ doing everything possible to "brew up" trou­ a basis of warranting an upward adjust- · ever, change is ·a law of life. Progress­ ble. The Reds' objective, of course, is to use based on the right kind of change--offers : ment in the residual allotment for the the great hope of humanity for attaining the Congo as a steppingstone .for taking over period. maximum physical, intellectual and spirit­ all of Africa. The non-Communist world When residual supplies pile up in ual maturity and progress. must stop him. Looking ahead, we can ex· pect Mr. K. and his .troublemaking cohorts, overseas refiners, the oil giants turn to . With each generation, there are new dawns · the industrial market of the American . of understanding of the fundamental forces as in the past, to continue to try to utilize and values of the God-created universe. the Congo or any other critical situation to eastern seaboard where utilities are : The great challenge is for man to learn to promote the cause of communism.....,..... not peace. large consumers of fuel. harness these forces to serve humanity. While we can expect that the Reds, if sane, Under the price-depressing-effects ef · In these challenging, though troublesome will stop "short of-total war," they are likely an oversupply of· oil and with stocks of times, then, we must not lose heart. Rather, to push each crisis to the .brink. residual oil mounting rapidly, the dis­ we--by optimism and confidence, well justi­ Turning t o the economic picture, we are posal of residual oil ·becomes more im­ fied through experience-must revitalize the attempting to negotiate with West Ger-many spirit of pioneerism. In this lies the great· and other Western European countries, as · portant . than the revenue it yields. '. hope of humanity: for success in solving well as-inaugurate domestic measures-, to halt ­ Under these circumstances, prices are . its problems; for avoiding a world-annihilat­ the outflow of gold; although the situation slashed ruthlessly to undersell coal to ing war; and for the creation of a world in is complex, I believe we.are making progress, the utilities which can switch their which the natural and human resources can and that we will be able to find a workable bOilers from fuel to fuel. bloom and bear fruit for better living of all . formula for correcting the imbalance of pay­ ments. · The mandatory control program on people. residual oil was adopted in order to give WILEY AT WORK On March 'J also the General Assembly of · the coal producers, the consumers and Now, what has your senior Senator been the United Nations will reconvene. As of up to since he last reported to you? now, it appears that Mr. Khrushchev will not the miners some basis with which to As a member of the Judiciary, Foreign attend the session, although the Red leader plan their operations. There· must be Relations, and Space Committees-and sev· · is always unpredictable. We can expect, of some consistency in order to regulate eral subcommittees-I have been working course, that the Soviet delegation will make production. The coal producers cannot with my colleagues on a variety of legisla· · f~Irther attempts to control, neutralize, or operate blindly with the prospect of op­ tion, including: Strengthening our judicial destroy the United Nations. Why? Because erating their mines full time for one system by the appointment- of more judges experience has J?roven, time after time, that quarter and suddenly because of an in­ to serve the overworked courts; consideration the U.N. acts as a bulwark against Soviet of nominees for important posts in the ex· expansion. Global membership in the in­ crease in import of oil, :find that they will ecutive branch; consideration. of . treaties· ternational agency brings world opinion to operate on a 2-day week schedule for the affecting the . interests of the country at bear when the Communists attempt to fla­ next quarter. home and abroad; speeding up our space . grantly engage in interference in the affairs At recent open hearings conducted by exploration program; and a variety of other of other countries. In these times, when · the Secretary of the Interior, I was most challenges confronting the country. the balance of world power is being deter­ impressed with the outstanding pres­ I have also made recommendations in the mined; even the hard-shelled Communists entation of the gentleman from Penn­ following fields; must consider, if not always heed, the will sylvania, Mr. .JOHN P. SAYLOR, and 1 ask 1. Establishment of a Manpower Commis- ­ of other" nations. sion. The purpose would be to (a) ·better· On the home !ront, Congress and Presi­ consent to include among my. remarks determine manpowez: requirements for d.e· dent Kennedy are €lonsidering a number of his most cogent statement in opposttion·. fense in the space age; and (b) to create . pump-priming measures to give new eco­ to any further increase in the amount a more efficient reservoir of experts, tech- nomic life to the economy. As necessary, of residual fuel oil allowed to come into· CVII--217 3434 CONGRESSIONAL RECORD- HOUSE March 7 this country and respectfully refer the production of residual. Coal simply could with your recent order to increase the same to the Members of the House for not compete in a price war of this mag­ amount of fuel oil to be imported into the nitude. United States·. · their consideration: There could be only one result-and that When your order, increasing the import STATEMENT OF REPRESENTATIVE JOHN P. SAY­ is the complete elimination of coal from quota was announced, the thoughts of my LOR, REPUBLICAN, OF PENNSYLVANIA, DE­ this market. constituents have been-"Well, it was too PARTMENT OF THE INTERIOR, FEBRUARY 20, Is this what New England, which has op­ good to be true-relief is not in sight-our 1961 posed the import control program so vio­ plight has not moved our Government in Mr. Secretary, I appear at this time to lently, really wants? Do large industrial , Washington." make a brief statement for two reasons. consumers of fuel want to be absolutely de­ Like the wards of our Government--also First, I want to add my voice to those pendent upon imported oil as the sole under your Department-our Indian breth­ who have disagreed with the order you is­ source of fuel? ren in olden days said "White man speak sued last Friday in permitting an additional If that is what they want, they could cer­ with forked tongue." 9 million barrels of residual fuel oil to be tainly achieve their purpose by getting im­ I plead with you, Mr. Secretary, to make imported into the United States during the port controls taken off or by wrecking the it clear before this hearing adjourns that next 6 weeks. present program through a series of extra you have absolutely no intention of remov­ And, secondly, I want to urge you in the allocations-such as the added 9 million ing controls-that you will oppose efforts of strongest terms possible to continue the im­ barrels you, Mr. Secretary, approved last any other Government agency to remove port control program on residual .oil and to Friday. them-and that you are going to tighten up take action to cut down the increasing I urge our New England friends to con­ on imports and make sure they are held to amounts which are coming into this coun­ sider what will happen when and if resid­ reasonable levels. try, even under controls. ual fuel oil ever achieves a monopoly in As for yol.lr order of Friday, Mr. Secre­ their fuels market. Perhaps they believe tary, I simply cal).not understand why you that given monopoly conditions, the oil acted as you did, when you did, especially companies will continue to cut prices and when you had arranged this hearing. It make abundant supplies of cheap fuel avail­ Federal Aid to Education gives one the impression that you make the able there. I do not share this faith in the decisions and then in an effort to placate oil industry's dedication to free competitive EXTENSION OF REMARKS the coal industry you allow us to appear prices in a monopoly market. OF and testify after the order for more oil has The hope of New England in ·the future been granted. I believe that in all good lies in a sound, expanding coal industry HON. FRANK T. BOW conscience you should have waited for a that will be able to maintain low, stable OF OHIO while to see if the alleged shortage of oil prices. But coal cannot maintain this sta­ in New England is as serious as represented. bility in supply and price as a protection IN THE HOUSE OF REPRESENTATIVES The weather has been unusually cold, but for New England if its markets are being Tuesday, March 7,1961 would not unseasonably warm weather in constantly eroded by cheap residual fuel oil the coming weeks make the additional al­ imports. Mr. BOW. Mr. Speaker, Federal aid lotment unnecessary? If the weather turns The coal industry is the most efficient in to education will occupy the attention warm it wm then be too late to do anything the Nation. But it is being forced to oper­ of committees in both House and Senate about the 9 million barrels of oil. ate at little better than standby levels­ this week. This latest increase is just one more bit producing only a little more than 400 million of evidence to the effect that oil importers The Senate hopes to begin debate on tons of coal a year. Employment is down a bill within 30 days, and the House may have found a way to get around the quotas. to less than 180,000 from a figure just about They constantly cry shortages of supplies, three times larger than just a few years ago. do the same. create a false sense of emergency on the part Unemployment, economic stagnation, bread­ Most of the mail I receive is opposed of a lot of well-meaning persons who bring lines, hunger and despair-these are the to Federal aid to education. A few let­ pressure to bear at the highest level to heritage of the men who have labored in our ters, usually from school ofiicials and force an increase in imports. coal mines and of the coal areas which have some teachers, support it. Many letters This has become standard operating pro­ contributed so much to the Nation's progress. state opposition, go on to say that the cedure on the part of the oil importers. I Mr. Secretary, I can only say to you that writers believe all schools should receive hope you will constantly keep this in mind the people in my congressional district were when you are being importuned by their aid if aid is given. shocked by your recent order. They took I have, over the years, been giving the pleas. heart that relief would be forthcoming it As for the import control program itself, Senator Kennedy were elected President. issue a great deal of attention, and it Mr. Secretary, to me it would be unthink­ He had stated in West Virginia-when he de­ seems to me that there are several factors able for you to recommend its removal. people should think seriously about be­ That would mean complete and utter chaos ployed the plight of the coal industry that for the coal industry. Some people might a part of their problem was directly attribut­ fore they make up their minds. think the coal industry is expendable­ able to the importation of residual oil. One is the amount of money the Presi­ they have certainly indicated they feel so My people took increased hope when Mr. dent proposes to distribute, and the man­ by permitting other fuel to enjoy consist­ Kennedy was elected President of these ner of its distribution. ent competitive advantages. But I contend United States. Their hopes were further The education bill proposes a payment that the coal industry is absolutely essen­ raised when President Kennedy said that the of $666 million the ·first year, growing to tial to this Nation's peacetime economy and first order of business of his administration $866 million in the third year. to the Nation's security in time of emer­ would be relief for the distressed areas of gency. this country. This promise seemed to be Each State would be guaranteed a min­ Believe me, Mr. Secretary, there is a limit borne out with the announcement by the imum of $15 for every child in daily at­ to what the coal industry can bear and con­ President that the Secretary of Agriculture tendance at a public school. tinue to operate. If we had to contend only was to increase the allocation of surplus Some States would receive consid­ with residual oil the situation would be foods. erably more than $15. Mississippi, for serious enough. But in addition, we find They believed that it would be only a example, would receive about $29 for the growing practice in the natural gas in­ matter of weeks until relief was felt at each public school child. Ohio's pay­ dustry of dumping gas for boiler fuel in in­ home. Their spirits were reassured when dustrial plants at prices way below that your fellow Cabinet officer, the Secretary ment would be $16.30. paid by householders and oftentimes below of Labor, Mr. Goldberg, was dispatched to Now that seems like a considerable actual costs to transmission companies. these chronic depressed areas to bring to sum to many people, and their letters to Also, because coal is produced so efficiently President Kennedy a firsthand account of me indicate that they believe the money in this country, we find foreign nations have present conditions. would be parceled out so that each erected artificial trade barriers to keep it They were jubilant when Secretary Gold­ school district would receive $16.30 for out. berg reported that conditions were even each child in school. · On every hand, the coal industry is beset worse than both he and President Kennedy with serious problems. Residual fuel oil is had been informed. But this is not the way that the bill probably the most serious right now because And their feelings were reassured when proposes to split the pie. Instead, the it can be sold at any price necessary to un­ President Kennedy issued the Executive or­ State educational agency, which means dercut coal. And the oil could be brought der that all decisions made by his adminis­ the Ohio Department of Education, in in almost unlimited quantities if controls tration would be made as a team and that would determine which local school dis­ should be removed. they would all be consistent. tricts were most in need. Then they It does not take much imagination to pic­ In view of the statements made ln West ture what would happen along the east Virginia last fall, and the recent actions by would divide all of Ohio's share among coast. All the international oil companies, President Kennedy in increasing surplus those local school districts. holding oil concessions abroad, would use food allotments and surveying the depressed The Federal Ofiice of Education in the east coast to dump their tremendous areas, I cannot believe that he is in accord Washington would have to approve the 1961 CONGRESSIONAL RECORD- HOUSE 3435 State's decision as to what constitutes Another serious question rises as to That is France. need. And the law provides that every the duration and probable cost of the· And I am certain that would be the school district in each State would have program after the public finds out how situation in the United States if Federal a right to appeal if the State decided it small are the amounts to be distributed aid to education becomes the law. did not meet the qualifications for help. under the initial bill. A clue to what Let me cite another example. The Now, consider for a moment what that lies ahead was given by the Secretary of Federal highway program is supposed to would mean in practical operation. Of­ Health, Education, and Welfare in a be one in which the States have almost ficials in the department of education recent television interview. Admitting all jurisdiction over the roads-the Fed­ at Columbus would have $2.8 million to · that this bill is for only 3 years, and that eral Government only approves what divide among needy districts. Applica­ it is supposed to be necessary because of States propose. But since early last tions would fiock in from all over the an emergency, the Secretary went on to summer a committee of Congress has State. Political and other pressures say that he thought large doses of Fed­ been investigating the Federal aid pro­ would be brought to bear. Someone eral aid were necessary on a permament gram as it is administered in each State. would make a decision, someone would basis. There have been hearings in Massachu­ be left out, there would be appeals. Pre­ How large a dose? Perhaps there is setts, Florida, and other places. The sumably a district that did not receive a clue in the report of President Ken­ committee has exposed terrific graft and a share could go to court to stop any dis­ nedy's task force on education. That corruption in some of these States, and tribution of funds until its appeal was group recommended spending $9% bil­ the result has been a shakeup in State heard. The possibilities of graft, favor­ lion in the next 4 years--or about twice governments and State highway pro­ itism, political deals are staggering, and the amounts now proposed in Congress. grams. That is Federal control, exer­ all for a sum that is less than one-half It becomes clear, then, that what is cised by Congress as part of its duty to of 1 percent of what Ohio and Ohio planned is massive Federal expenditures supervise the expenditure of Federal school districts already are spending on for an indefinite period of years, even funds . education. .though we start out with only $15 per It has happened in the highway pro­ I mentioned that Ohio's-share of the child on a 3-year basis. . gram. It has happened in every other education fund would be $28 .million the · Federal control of education is an­ Federal aid program. It will happen in first year. other consideration. Federal aid to education. Ohio's share of the taxes for the edu­ I have mentioned two matters in These are some of the things I hope cation fund would be $38 million. which Federal control is already obvious everyone will consider-consider It would cost us $10 million in new in the bill-even though the bill itself thoughtfully in the next few weeks. taxes more than we would receive in new denies the Government any right to con­ Citizens of Ohio are being asked to benefilis. trol or interfere. The Supreme Court give up a great deal of freedom, re­ Furthermore, there are built in escala­ once said that "it is hardly lack of due sponsibility and control of the kind of tors in this law that require our State process for the Government to regulate education their children get, in exchange to spend more for education every year· that which it subsidizes." for a pittance-and -worse . than that, a if we want to continue to get our share In short, the Government has a right pittance which will cost them in actual of the Federal funds. A State is penal­ to supervise how its money is spent. tax dollars $10 million more than they ized if it does not increase its efforts, As a taxpayer, I think the Govern­ receive. which means increase the amount it ment has a duty to control how my dol­ You might consider also a few facts spends on schools. If a State's effort lars are spent. How else can we know about the need for this kind of program. fails to meet the national average, it that they are spent wisely or properly. Nonetheless, the demand- for Federal is penalized. And Ohio, being a State of An editorial in a magazine published spending in this area has increased so high income, would have to increase its for teachers-the Nation's Schools-had rapidly that it appea-rs almost inevitable. educational spending many, many times this to say: Facing this fact, and hoping to avoid to avoid this kind of penalty. Of course, Federal direction is inherent in any Fed­ Federal control, I have proposed a sub­ our share of the taxes to support the eral law or any Federal court decision per­ stitute and have discussed it on this pro­ program would not decrease. taining to education. This is true even if gram before. Congress delegates to the States the ad­ These penalty provisions are another ministration of a Federal grant. My substitute is based on the reason­ form of Federal control. By the use of ing that any inability of the State to penalties, with the reward of money, the And now let me quote to you what hap­ meet its expenses is due, at least in part, Federal Government tries to force us pens in a country where the central gov­ to the fact that the Federal Government to spend more than we may think is ernment does control schools. We imposes so heavy a tax burden. There necessary for our schools. It gives the know about the school systems of Nazi is little left for States to tax. What we Federal Government the power to de­ Germany and Soviet Russia-but this need is to return sources of tax revenue cide to a large extent- what the States concerns France, supposedly the citadel to the States or-failing that-to return and localities must spend on education. of liberty. A recent report on French some of the money the Federal Govern­ There is still another consideration education reads, as follows: ment collects, but without the usual fee involved in this matter of effort-the Some criticisms come. from the teachers' for collection and administration. willingness of the State and local com­ organizations who would like to have more My principal suggestion is to return munities to build their own schools and freedom for the teachers and less control 25 percent of the money collected from finance them. from Paris. the Federal cigarette tax-based upon The system is criticized because of the in­ Assume, for example, that a bond issue evitable delay and inefficiency which arises the number of packs of cigarettes sold in is pending in one of our school districts. from the need to refer any question of im­ each State. My bill would give almost The local people have been declared in­ portance to Paris for decision. It is criti­ every State as much or more than it eligible because they appear to bave cized by local communities because by the would have -received under the bills in adequate finances, and they do. But time the bureaucrats in the ministry, in the the House in 1960. It is not as generous right next door is a school district that academy, and in . the department have as the 1961 Kennedy bill. However, it defeated its bond issue the year before. worked out the details of every matter of would provide substantial sums, free of administration, there is nothing left for the And that school district is eligible for local school boards to do. Some of them re­ extra tax burdens on the State, free of aid because in the eyes of the State, it fuse to go through the motions. the taint of deficit spending, and with is not able to provide the buildings it Some attempt has been m ade to offer· no possibility of Federal interference or needs. What incentive remains, then, a little adaption of the work of the schools · control. for any: district to go ahead and take to local needs and. conditions. .But it -is I intend to offer my bill-as a substitute care of-its needs. Why not-slow down,. difficult to read much meaning into offers. · for ·the--administration proposal: I ·hope wait-a bit, see whether or -not we might of. freedom to the- classroom teachers when · it may win-tire-approval of ·atl·who·truly­ s~ch important factors as the course of be able to get·part of the Federal money· study, the textbooks, examinations,_ the want to give more money to education next year or the year after. And so this preparation of teachers, and. the inspection without control, and that even those who proposal might very well .reduce local of· classrooms are · controlled centrally· and­ believe added funds are not needed will: incentive to take care of its own operated in--such a way as to secure--uni-­ re.CDgnize..it as a ,desii:able alternative to. problems. formity throughout. the nation. the control-type measure.