12764 CONGRESSIONAL RECORD- HOUSE July 13 laws effecting the control of narcotics in the By Mr. SIMPSON of Pennsylvani.a: By Mr. HARDY: District of Columbia, and for other purposes H. R. 12240. A bill to amend section 313 H. Res. 595. Resolution to provide addi­ (Rept. No. 2717). Ordered to be printed. (b) of the Tariff Act of 1930 to allow sub­ tional funds for the expenses of the study stitution of printing papers for drawback and investigation authorized by House Reso~ purposes; to the Committee on Ways and lution 35; to the Committee on House Ad­ Means. ministration. PUBLIC BILLS AND RESOLUTIONS By Mr. DEMPSEY: Under clause 4 of rule XXII, public H. R. 12241. A bill to establish a separate PRIVATE BILLS AND RESOLUTIONS bills and resolutions were introduced and customs collection district comprising the State of New Mexico; to the Committee on Under clause 1 of rule XXII, private severally referred as follows: Ways and Means. bills and resolutions were introduced and By Mr. BRAY: By Mr. IKARD: severally referred as follows: H. R. 12233. A bill to authorize the Secre­ H. R. 12242. A bill to allow certain expenses By Mrs. ·FRANCES P. BOLTON: tary of the Interior to quitclaim all interest paid for the repair and maintenance of a H. R. 12247. A bill renew and extend the of the United States in and to certain lands to personal residence as an income-tax deduc­ term of patent No. 1,917,634 for 5 years; to located in Indiana to the State of Indiana tion; to the Committee on Ways and Means. the Committee on the Judiciary. and the board of trustees for the Vin­ to By Mr. THOMPSON of Louisiana: By Mr. GUBSER: cennes University, Vincennes, Ind.; to the H . R. 12243. A bill to repeal section 217 of H. R. 12248. A bill for the relief of Felipe Committee on Interior and Insular Affairs. the Merchant Marine Act, 1936, as amended; Ollama; to the Committee on the Judiciary. By Mr. COLE: to the Committee on Merchant Marine and By Mr. HOEVEN: H. R. 12234. A bill to amend the Atomic Fisheries. H. R. 12249. A bill for the relief of Victoria Energy Act of 1954 with respect to the trans­ H. R. 12244. A bill to amend the Shipping V. F. Farhat; to the Committee on the fer of restricted data for military purposes, Act, 1916, as amended, to provide for the Judiciary. and for other purposes; to the Joint Com­ licensing of foreign freight forwarders; to the By Mr. JOHANSEN: mittee on Atomic Energy. Committee on Merchant Marine and Fish­ H. R. 12250. A bill for the relief of John By Mr. COOLEY: eries. Spaniola; to the Committ ee ori the Judiciary. H . R. 12235. A bill to provide that pro­ H. R. 12245. A bill to amend section 16 of By Mr. RAY: ducers may relinquish their interest in agri­ the Shipping Act, 1916, as amended; tQ the H. R. 12251. A bill for the relief of Elea­ cultural commodities held as collateral for Committee on Merchant Marine and Fish- nora Fiorini; to the Committee on the price support loans; to the Committee on eries. Judiciary. Agriculture. By Mrs. GREEN of Oregon: By Mr. DEMPSEY: H. R. 12236. A bill relating to certain min­ H. R. 12246. A bill to provide for assist­ PETITIONS, ETC. ing claims which were eligible for validation ance to and cooperation with States in under the act of August 12, 1953, but which strengthening and improving State and Under clause 1 of rule XXII, petitions were not validated solely because of the local programs for the diminution, control, and papers were laid on the Clerk's desk failure of the owners to take certain action and treatment of juvenile delinquency; to and referred as follows: the Committee on Education and Labor. to protect their claims within the prescribed 1194. By Mr. SILER: Petitions of some period; to the Committee on Interior and By Mr. MAILLIARD: 200 residents of Los Angeles, Calif., and sur­ Insular Affairs. H. J. Res. 685. Joint resolution to au­ rounding area urging enactment of legisla­ By Mr. ELLIOTT: thorize the Secretary of Commerce to sell tion to prohibit the transportation of alco­ H. R. 12237. A bill to encourage and assist certain war-built vessels; to the Committee holic-beverage advertising in interstate com­ the States in the - establishment of State on Merchant Marine and Fisheries. merce and its broadcasting over the air; committees on education beyond the high By Mrs. KELLY of New York: to the Committee on Interstate and Foreign school, and for other purposes; to the Com­ H. Con. Res. 265. Concurrent resolution Commerce. mittee on Education and Labor. expressing the sense of Congress against ad­ 1195. Also, petitions of some 1,264 resi~ By Mr. FALLON: mission of the Communist regime in China dents of the counties of Highland, Miami, H. R. 12238. A bill to provide for the con­ as the representative of China in the United Trumbull, Seneca, Clinton, Athens, Coshoc­ struction, equipment, and furnishing of a Nations; to the Committee on Foreign ton, Columbiana, Delaware, Hancock, Ham­ new building for the United States Court of Affairs. ilton, Hardin, Geauga, Guernsey, Jackson, Customs and Patent Appeals, and the Tax By Mr. LANHAM: Lucas, Jefferson, Mercer, Noble, Putnam, Court of the United States; to the Commit­ H. Res. 594. Resolution to authorize the Ross, Vinton, in the State of Ohio, and sub­ tee on PUblic Works. Committee on Armed Services to investigate mitted by the Ohio WCTU, Columbus, Ohio, By Mr. KEARNS: and study certain problems in connection urging enactment of legislation to prohibit H. R. 12239. A bill to provide for the estab­ with the operation of aircraft in the vicinity the transportation of alcoholic beverage ad­ lishment of a Federal Advisory Council on of certain military and naval air installa­ vertising in interstate commerce and its the Arts, and for other purposes; to the Com­ tions of the United States; to the Committee broadcasting over the air; to the Commit­ mittee on Education and Labor. on Rules. tee on Interstate and Foreign Commerce.

EXTENSION~ OF REMARKS

Coal Against Government Subsidy for Virginia, Pennsylvania, Ohio, Illinois, But just at present we are about to and other places. But in recent years witness still another potential enemy of Atomic Energy his gaiety has changed to certain deadly Old King Coal, namely the proposed seriousness for the mere survival of King atomic-energy legislation that has al­ EXTENSION OF REMARKS Coal. This has been caused by an incur­ ready had complete success in the Sen­ O:f sion of his domain by two powerful ene­ ate, and will soon come up in the House, mies, known as natural gas and fuel oil. asking you for $400 million of tax money HON. EUGENE SILER These enemies have already robbed thou­ to have our Governmer~t do these dia­ OF KENTUCKY sands of honest, hard-working, patriotic bolical things: IN THE HOUSE OF REPRESENTATIVES Americans of their jobs in the once First. Help destroy a great taxpaying great coal industry. These enemies have industry like the coal inaustry. Friday, July 13, 1956 put 1 day or 2 days of mining wor~ on Second. Put on the idle shelf of unem­ Mr. SILER. Mr. Speaker, there used the company's weekly bulletin boards in ployll)ent hundreds of thousands of use­ to be a rhyme that went something like many places where there might have ful, self-sustaining, family-rearing coal this: been 4 days or 5 days had these un­ miners. American usurpers not intruded with Third. Push our country still further Old King Cole was a merry old soul their brazen robbery against the wives into chaotic socialism by doing things And a merry old soul was he. and children of some of our very best through Government that could better He called for his pipe and he citizens. I refer to them as un-American be done by private enterprise. Called for his bowl and he because that is exactly what they are in Called for his fiddlers three. Atomic development is already going large measure. They are considerably forward at a very rapid and satisfactor-y Now, we have had anot~er king by foreign born-coming in from Venezuela, pace through the .activities of some of the name of Old King Bituminous­ Canada, and other . places th~t pay no our great industrial giants like General Anthracite Qoal tl~at .used to 'Qe quite American taxes in time of peace and be.ar Electric -Co. . and Westinghouse Electric merry and gay down in Kentucky, West no American arms·in time of war.' Corp. and at least a dozen others that 1956 CONGRESSIONAL R:ECORD- HOUSE 12765 have previously entered competitively lieve, and ·many of you agree, that we my State-the Free State of Maryland­ into this great field of science and engi­ have sufficient acumen to evaluate the has not forgotten this great hero's sa­ neering. merit of bills. We have been in the law­ cred memory, for a modern dual high­ Make no mistake about it, we Ameri­ making business for a long time, and I way, a part of what is now designated cans are going to destroy ourselves com­ do not believe we would permit something as U. S. 40, leading from the great city pletely by further socialization if we per­ to become law that was not in the best of Baltimore to the northeast, has been sist in that direction in the future as we interests of the country. At least we named after this brilliant son of Poland. have in the past. This atomic-develop­ should be given the opportunity to dem­ All of us are fully appreciative of the ment scheme at a cost of $400 million onstrate our lawmaking ability. brilliant and courageous record of the from the taxpayers' purse is-socialistic Time is running out. The Rules Com­ Polish people over the centuries. And from stem to stern. It will destroy jobs mittee must not disregard the fact that all Americans are cognizant of the many and private industry and taxable prop­ the housing bill of 1956 is vital to the contributions that people of Polish de­ erty and will attempt to do something homebuilding industry. The commit­ scent have made to America's wealth by Government that is already being tee, with regard for the democratic and culture. satisfactorily accomplished by private process we all cherish, must give this Although we all are confident that business concerns. body a chance to debate H. R. 11752. the indomitable spirit of Poland and its The vote in the Senate was close . . It We assure the committee that we will brave people will ultimately triumph carried by a margin of nine votes in that act in the best interests of our constitu­ over the evil forces of darkness, I urge body. I hope it will fail by a margin ents, and that our deliberations will not that the Government of the United of 99 votes in the House. It will if all endanger the welfare of the· Nation. States repay its debt to Poland by its of us will wake up, especially a-ll the All we want is the chance. immediate protest of such action in order red-blooded Americans interested in to prevent the further slaughter of hun­ Americanism. gry and innocent people at the merci­ less hands of the Communist Polish Uprising in Poland puppet government of Soviet Russia.

The Housing Bill EXTENSION OF REMARKS OF· EXTENSION OF REMARKS Need for Low Income Public Housing OF HON. SAMUEL N. FRIEDEL OF MARYLAND EXTENSION OF REMARKS HON. WILLIAM A. BARRETT IN THE HOUSE OF REPRESENTATIVES OF OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Friday, July 13, 1956 HON. ELMER J. HOLLAND Friday, July 13, 1956 Mr. FRIEDEL. Mr. Speaker, a little OF PENNSYLVANIA over a week-ago, the Polish workers of IN THE HOUSE OF REPRESENTATIVES Mr. BARRET!'. Mr. Speaker, "un­ Poznan ros~ in mass protests against Friday, July 13, 1956 realistic, excessive and ill conceived" their country's Communist regime. were the terms applied by the admin­ They besieged the local secret police Mr. HOLLAND. Mr. Speaker, under istration's housing spokesman to a hous­ headquarters, burned its records and leave to extend my remarks, I wish to in­ ing bill reported out by the House Bank­ battled the troops sent to put down the clude in the RECORD a statement pertain­ ing and Currency Committee. These ing to the need for low income public revolt. Like their fellow workers in Ber­ housing. were the uncomplimentary adjectives lin 3 years ago, they fought tanks and chosen by a man who once served in this infantry until, by government admission, Mr. Speaker, the recent action of the House to characterize a measure that Rules Committee tabling H. R. 11742, the represented many months of honest toil at least 38 lay dead and 270 injured. general housing bill, is a body blow to the and deliberation. This was how he These brave Polish people were driven families most in need of Government chose to identify a bill that differed in to this desperate action because they housing support, namely, our families in have been ruled by the minions of a for­ some respects from an administration­ the lowest income brackets. It is ~Y sponsored measure. I do not contest his eign power and the fruit of their facto­ understanding that the primary objec­ right to free speech, but I do object to ries and farms taken to strengthen that tion to the bill on the part of those Mem­ the loosenes·s of his language. Webster's power. A revolt such as this in Poznan bers voting to deny a rule was against International is full of words that he is a desperate way of calling the world's the bill's public-housing provisions. For might have used. attention to the plight of those under those of us who understand the urgent Be that as it may, the Housing and Communist oppression. housing needs of our lowest income fam­ Home Finance Administrator tars The Poznan outbreak is the most spec­ ilies, this type of reasoning is absolutely H. R. 11742 with a sweeping brush. He tacular of a thousand signs of crises in incomprehensible. Frankly, what some found nothing good in the bill, and the world communism. The · rioters were members of the Rules Committee regard House Rules Committee echoed him with clamoring for food in order to keep body as a vice· is in fact the chief virtue of the a resounding "Amen." I do not propose and soul together and they expressed bill. to discuss the obvious merits of the bill their hatred for their godless Communist The inescapable fact is that most of at this time. That will come when the overlords. the unfortunate people now forced to live Rules Committee reverses itself and Mr. Speaker, all of us in America owe in slum areas do not have sufficient in­ grants a rule for the debate of the bill a great debt to a very great and revered . come to enable them to afford decent, by this Chamber. patriot who fought and died in order safe, and sanitary private housing. Un­ It seems strange that the Housing to help and assist our own beloved coun­ less the Government provides decent Administrator is willing to submit to us try. I refer, of course, to none other housing at a rent which they can afford the question of appropriations with than Casimir Pulaski, who was born in to pay, these poor unfortunate people which to operate his Agency, yet balks Podolia, Poland, in 1748. In 1777 he are doomed to live in slums with all their a~ having us debate the housing bill of came to America in order to give his all attendant social evils. 1956. on behalf of our then new Republic. Take the subject of slum clearance as Washington has a few treasured cus­ It was for his exemplary conduct at the a single example. Here is where the op­ toms, among which are the Potomac Battle of Brandywine that he was given ponents of public housing fall flat on Regatta, the Cherry Blossom Festival, a brigade of cavalry which he com­ their face. Now when you clear slums and the Retreat Parade at Fort Myers. manded until March 1778. This great people have to move. The best available Are we to add to this catalog the soldier entered Charleston during May data shows that approximately half of annual contest over public housing? 1779,' and held it until that city was the families who live in slum areas can­ Maybe so, but it seems to me that the relieved. During the siege of Savannah not afford adequate private housing. Rules Committee should give public he was wounded and died 2 days later. And remember that under the law dis­ housing a fair chance, and not bottle it For what he did for us, we shall be eter­ placed families must be housed in safe up in star chamber proceedings. I be- nally grateful. I am proud, indeed, that and sanitary accommodations which 12766 CONGRESSIONAL RECORD- HOUSE July 13 they can afford. For these families the the world, -has been unmasked by his suc­ especially acute grasp of the meaning of only answer is low-rent public housing. cessors as a mad criminal who is guilty of freedom and the way of life which we cher­ the most horrible excesses against the Rus­ ish. You are dedicated to the great tradi­ Actually, H. R. 117 42 proposes only a sian people and against the people of the tions and institutions of America. You have rock-bottom minimum public housing other countries upon whom he imposed his tested your faith in armed combat. Many program. It would provide 50,000 units tyranny. whom you have known and who are not a year for a 3-ye3tr period, and an addi­ The men who have made these disclosures here tonight have made the greatest possible tionallO,OOO units a year for a 3-year pe­ profess to be deeply shocked by these facts, contribution to the purchase of our liberty. riod for elderly families. although they themselves participated in Because you have been so directly involved This total will barely take care of the the very crimes for which they now lay all the with the issue of freedom, the forces that public housing needs of 'families dis­ blame on Stalin. Throughout the Commu­ oppose that. freedom today, are more than nist world, these supposed disclosures are a threat to the Nation's security. They are placed by slum clearance oper3ttions, let being received in a wild orgy of apology and a personal affront to everyone of you. alone fulfill the overall need for public self-abasement. Times change and concepts change, housing. Now, for all of us who have had any con­ science advances and so do other aspects I would like to see the House pass leg­ tact with communism and who have not of our society. The horseless carriage be­ islation authorizing a public housing kept our eyes closed during the past years, comes the sle.ek, high-powered Cadillac. program of much greater magnitude. Mr. Khrushchev isn't saying anything new The technology of industry progresses-and But I think that it would be a national at all. We have long been aware of what so does the technology of treason. Stalin, with the very eager help of Mr. Today's revolutionaries are no longer rau­ cal3tmity to run the risk of losing even cous, frenzied fanatics. They no longer the minimum number of public housing Khrushchev, achieved while he was in com­ mand of the Soviet empire. We have not shout openly for a blood-bath in which to units proposed by H. R. 11742. been fooled before and there is no chance of drown the world. Their voices have become Mr. Speaker, somebody once wrote. a our being fooled now. softer and their language more polished. book called Progress and Poverty in If this were just another one of the many They are no longer the "prisoners of starva­ describing an earlier stage of our Amer­ propaganda assaults that this world has tion" beyond the pale of respectable life. ican history. Despite our great eco­ been subjected to with varying degrees of Today they walk surely in the once restricted nomic strides forward we still have a dis­ success for the past several decades it provinces of the university, the church and wouldn't present any problem. The knowl­ even finance and industry. Where once the tressing amount of poverty and want, threat they represented was an isolated and 3tnd most of it is concentrated in our edge of the essential character of the Soviet Union and the global apparatus would make easily definable one, today it has become slums. We cannot in conscience ignore it easy to dispose of such new overtures. diffused throughout the tissue of the Nation the vicious ·social evils which arise from Unfortunately, this new campaign cannot until even the most astute diagnosis has slums and slum housing. We must have be written off so simply. The new course difficulty detecting its presence. The strug­ a sizable public housing program because that Stalin's successors are taking is having gle today is no longer one between reputable that is the only answer for our lowest-in­ a 'tremendous impact in the free nations, in citizens and outcasts. It is a conflict over come families. the so-called neutralist nations, and even the basic values which this country em­ regrettably in the United States itself. bodies, over the very definition of men and Mr. Speaker, I hope and pray those of life itself. members of the Rules Committee who From many sides, even from people whom we would expect to know better, we are Just this week in Washington, the Com­ voted to table the gener3tl housing bill urged to believe that a new era of peaceful mittee on Un-American Activities has been will reconsider and let us have the hous­ coexistence has now begun. We should examining one phase of this problem, a ing legislation the national welfare de­ enter the embrace of Soviet friendship. We phase which, in many respects, represents ·mands. are even asked to believe that the despots the whole. The thing that we have been who have ruled Russia since the revolution concerned with is a "Report on 'Blacklisting" of 1917 have now ·vanished and that they published by the Fund for the Republic, nave been replaced with a new breed of men, a tax-exempt institution endowed with Address by Representative Francis E. -men intoxicated with the distilled milk of some $15 million from the Ford Foundation. human kindness. The report was prepared under the direction Walter, at the Annual Banquet of the of John Cagley, formerly executive editor of Yet fraudulent as this campaign may ap­ Commonweal magazine. Mr. Cogley told the Department of Pennsylvania Encamp· pear to everyone of us here tonight, the suc­ committee that he and his staff had spent ment, Veterans of Foreign Wars, Benja­ cess that it is having is almost beyond con­ more than ·2 years studying cases of "black­ ception. In Western Europe the defense listing" in Hollywood and in the radio and min Franklin Hotel, Philadelphia, Pa. structure which we have built during the television industry in New York. past years at such great labor is crumbling. Now, everyone with any decency deplores In Asia one nation ·after · another is anchor­ blacklisting, at least in the sense that we EXTENSION OF REMARKS ing itself ever more firmly to Moscdw. Even usually use the term. BlackJisting, as we OF in countries with which we were once ordinarily understand it, is a vicious and stanchly allied, whose traditions and aspira­ despicable practice. You know the kind of HON. B. W. (PAT) KEARNEY tions we once thought were linked closely blacklisting I am talking about--firing some­ to our own, there is an unprecedented crest one or refusing to hire him because he has OF NEW YORK of anti-American hatred. And Tito, upon IN THE HOUSE OF REPRESENTATIVES been engaged in some legitimate and morally whom we have poured so many millions in defensible activity or because he is a Demo­ Friday, July 13, 1956 the delusive hope that he would stand with crat or Republican, or a Negro or a Catholic us, has once more slipped on the Kremlin or a Jew. Nobody would condemn that kind Mr. KEARNEY. Mr. Speaker. under harness and has been designated to lead of blacklisting more than I would. leave to extend my remarks in the REc­ other countries into the- Soviet grasp. But the Fund for the Republic talks about ORD, I include the following address by Here at home we are fast losing sight of another kind of blacklisting-one that has Hon. FRANCIS E. WALTER: the menace that communism embodies. The nothing to do with being a Democrat or a long chronicle of Communist subver~ion ADDRESS BY REPRESENTATIVE FRANCIS E. WAL• 'Republican or a union man or a member of and conspiracy and deceit is being blurred some minority group. Strangely enough, it TER, AT THE ANNUAL BANQUET OF THE DE• until it is almost unrecognizable. The once PARTMENT OF PENNSYLVANIA ENCAMPMENT, has to do only with one kind of people-­ "clear and present danger" of communism Communists. This kind of blacklisting VET~RANS OF FOREIGN WARS, BENJAMIN is coming to be regardeq now as a danger FRANKLIN HOTEL, PHILADELPHIA, PA. means taking action against the Communist remote and indistinct. The achievements conspiracy, and the report draws upon the During the past few months, the people of the Committee on Un-American Activi­ revulsion we feel about blacklisting in the of the free world have been subjected to a ties and other. agencies, w,hich have worked usual sense to arouse our condemnation of new propaganda barrage of dazzling size and so long to expose the character of commu· employment practices directed against Com­ intensity. nism and the conspirators who serve it, are munists and against Communists only. Most of you have become aware of it in in danger of being. swept aside. The report pretends to be completely ob­ · one form or another. It originates in M.os­ The entire pattern permits only one con­ jective and impartial. Actually it is about co\V. In essence it seeks to persuade us that clusion: There is more possibility of the suc­ ' as partisan and prejudiced as it is possible to communism has suddenly transformed it­ cess of the international Communist move­ be. By the omission of some material and self into a sweet, reasonable way ·of life and ment now than at any time in the past-­ by the selection of other, by repeated empha­ that we can collaborate, in fact should col­ not b.y sudden revolution in our major cities sis on some facts and suppression of others, laborate, with Soviet Russia with a calm but by the slow erosion of the strength that it makes an indictment of everyone who has and untroubled conscience. has enabled us to withstand the onslaughts been active in opposing the employment of As part of this campaign, the new ruiers of other enemies throughout .our history. Communists and Communist sympathizers of Russia are making · some startling dis­ I am sure that this must be a profoundly in the entertainment · -industry. Moreover, closures. Joseph Stalin, who carried the disturbing realization for you who are several of the staff were already committed bann:er of Soviet communism to nearly h'alf listening to me· tonight. You have an ·to a specific viewpoin't' before they began 1956 .. CONGRESSIONAL RECORD-. HOUSE 12767 their work on the report and had back­ order to heal-and for considerations which , charging anyone whose loyalty to the Nation grounds. that made it difficult, if not impos­ have nothing to do with patriotism. has not been established to the employer's sible, for them to be anything approaching I can tell you what we have found. satisfaction. The reason for this, the court objectivity or impartiality. Witnesses who We have found a very serious infiltration declared, is that disloyalty and subversive testified before the committee confirmed that of the entertainment industry by Com­ activity cannot be regarded as a protected the report just isn't worth the paper it's munists and Communist sympathizers. We political activity. written on. have found that increased infiltration of The Communists, and many who join them The report considers membership in the the entertainment industry is one of the in their thinking, have always tried to en­ Communist conspiracy as a "political belief." foremost objectives of the Communists at courage the belief that for some peculiar rea­ It holds that anyone who refuses to hire a this very moment. We have found that a son they have rights beyond those accorded Communist and anyone who hires a Com­ number of persons who have cooperated to the ordinary citizen. The Communists, in munist-because he is a Communist-is en­ loyally in exposing the Communist con­ this view, should not be prosecuted for any gaged in "political discrimination." It tries spiracy in the entertainment industry have crime because this would be political retalia­ to create the impression that people are being been denied work. I have in my desk at tion-yielding to hysteria-though a Demo­ penalized for their beliefs and that the inno­ this very moinent a letter from a prominent crat or a Republican can be prosecuted for cent as well as the guilty are being destroyed New Yorker containing the names of anum­ the same crime without arousing any prates~ by a vast machinery of persecution which has ber of people who have been denied employ­ on that score. Communists can't be fired a bunch of extremists and crackpots at the ment because they dared to testify before from jobs in industry or from a university controls. Its total effect is to blacken the the Committee on On-American Activities. no matter how much they attempt to poison name of every organization and every indi­ On the other hand, many persons who.have the atmosphere because, we are told, this Vidual who has sincerely and patriotically been identified as Communists are still find­ would be political discrimination. As a been engaged in trying to get rid of Commu­ ing employment in the · entertainment field. matter of fact, if this view would prevail nist conspirators in the movies and on radio The Communists know that movie screens it would b~ advisable for· everyone to become and television. and television channels are weapons of far a Communist qecause he would no longer be This report is of tremendous concern to greater potential power than any of the subject to any of the normal. difficulties or all of you here. For one thing, when it nuclear devices whose secrets we guard so risks of everyday life. Being a Communist deals with television and radio, and with jealously. Control of the· media of com­ would automatically make him exempt from the movies and the theater, it deals with munication and information means the con­ all social, moral, and political responsibility. something that is very familiar to everyone trol of the mind, and for the Communists Fortunately, it does not seem as if this of us, something that plays a very big part this would mean a victory of far greater point of view will prevail. Treason and sub­ in our lives. Right now in Philadelphia, importance than victory on a dozen battle­ version have not yet become higher forms an actress is appearing who is identified fields of war. The Communists know that of patriotis1fl.. The American people are still as having participated actively in the Com­ before they can ever hope to win they must able to think clearly on this subject and I munist movement. This actress, Gale Son­ first destroy the freedom of the mind. They am certain that they are not going to throw dergaard, has been named by a half dozen must undermine our reason and cripple our away the Constitution and the other guar­ people before the Committee on On-Ameri­ spirit. They·must debase our standards and antees of liberty which they have in order can Activities as a member of the Commu­ values and reduce them to rubble before the to establish other rights for those whom they nist Party. Hers is one of the cases dis­ Communist tide can inundate our civiliza­ can regard only as inflexible enemies. The cussed in the fund report but no mention tion. structure of freedom and of liberty in was made of her background. Now, it is my feeling that the Fund's re­ America is a well-defined one. It was Further, this report is made possible by port proceeds from one basic error. It fails erected with great prudence and with great the money which all of us pay in taxes. to recognize that the deprivation of employ­ foresight. It was not designed to engineer The millions of dollars which the Fund for ment of Communists and Communist sym­ its own collapse. It can be toppled only if the Republic has to work with are beyond pathizers is possible not because of 1wme we close our eyes and ears to the rules of the reach of the Internal Revenue Service.· self-appointed censors, but because-and · commonsense and reason and stand aside for The fund, unlike you and me. doesn't have only because-the American people . them­ those who seek our ruin. to pay its own way with the Government. selves do not want Communists on their It is allowed to enjoy all the privileges of movie screens and on their radio and tele­ any organization or citizen who contributes vision programs. Without this repugnance to. the support of the country but it escapes of the American people to Communists and all the financial obligations which custom­ Communist sympathizers, there could be no Study Mission Trips by Members of arily accompa:t;!Y those privileges. So, inas­ succe:;sful action against Commu,nists in the · Congress much as we are in a way paying for the con­ entertainment industry or anywhere else for clusions which Mr. Cogley and his staff have that matter. When the report condemns reached, we should at least get our money's denial of employment to Communists or EXTENSION OF REMARKS worth to the extent of seeing precisely what Communist sympathizers, it is not just con­ OF they have to say. demning some so-called pressure group or If the charges which the report makes extremists. It is condemning all the people HON. EDNA F. KELLY are true, then we are faced, indeed, with of the country who are exercising one of the a very grave menace to the traditions of civil most fundamental of the rights guaranteed OF NEW YORK liberty and fair play upon which this coun­ them under the very system of government IN THE HOUSE OF REPRESENTATIVES try is founded. If innocent people are being which communism seeks to destroy. thrown out of their jobs simply because of The American people realize that action Friday, July 13, 1956 what they believe, if fanatics have estab­ against Communists is not a persecution for Mrs. KELLY of New York. Mr. Speak.. lished some kind of Ku Klux Klan of the air beliefs. Communists are being penalized, and screen which deprives good citizens of not for their beliefs, but for their actions­ er, recent comments in periodicals and in the right to work, for no justifiable reasons, not for thinking something but for doing arguments in the Congress against the then the report and the people who pre­ something, and doing something to further authorization and appropriation for for .. pared that report are to be congratulated the objectives of communism. In the. last eign aid-mutual security bill-have for having alerted us in such a fashion. analysis, the question of whether Commu­ strengthened my belief that study mis .. If, on the other hand, the report is not nists and their sympath~zers shall be· per• sion trips· by Members of Congress are accurate and if the charges it makes are mitted in the entertainment industry or in not true, then the report can be considered any other area is one for the Americrun people essential. I do not believe the opposi..: of ·value only to those people whose in.rt~r.ests to determine. The Fund for t:t;te Republic tion to foreign aid is a questiqn of dollars, it would furthet-the participants in the apparently does. not belieye that. the Ameri­ !believe ttie obJeqtions that exist are pi~ • Communist· conspiracy. can· people have the competence or the right re-cted at the .willingness of the leaders . The Committee on On-American Activi­ to express their disapproval of subvers~qn . of the free world to accept and to ap .. ties has studied the problem of Communist Nor does it believe that .an employer has.. the pease the new,Soviet leaders. · ·Soviet ob­ infiltration in the entertainment industry right to pay or to withhold jobs from per­ jectives have not changed but their in very great detail over a period of years. sons whom he believes are opposed to the The conclusions that we have reached after very system from which they derive their in­ method of attaining world domination hearing hundreds of witnesses and after ex­ come. It is peculiar that the report deals has veered to a new course. The apathy tensive investigations are totally different at great length with the rights of Commu­ of the peoples of the free world is an ex .. from those of the Fund for the Republic. nists but never with the rights of loyal pression of hope that the Soviet will now We have not found any evidence of a black­ patriotic citizens. cooperate. list of the kind that the report describes. In California, where the repo_rt says much The leaders of the free world must im­ We have found no lists which are used to of this so-called blacklisting is taking place, plement their beliefs in bold new policies. banish people from jobs. We have found no there is a law that prohibits any employer clearance men who·, as the report so elo­ from discharging or threatening to discharge The program is mutual. United States quently puts it, have the power to wound anyone for political activities. But the Cali­ policy has vacillated .in leading th~ free and the power to heal. Nor, as the report fornia Supreme Court has ruled that this world to this objective. NATO must be seems to imp!y, anybody who wounds in does not prohibit an employer from dis- strengthened by the mutual action of the 12768 CONGRESSIONAL RECORD- HOUSE July 13 free nations. NATO was a military de­ The study mission regrets that a setback to identified with what so many describe as a terrent. To weaken and to destroy the free world must continually take place moribund organization. It is true that both in order to reconfirm this fact to the people have given other reasons for their quitting. NATO are the aims of the Soviet. The of the world. Allied unity, the NATO alli­ General Gruenther, who is in his late fifties, failure of NATO to reach and to main­ ance, and the pacts in Europe have been is said to be leaving because he has been tain the goals established has weakened weakened to such a degree by the Geneva offered a highly remunerative job in industry NATO. The United States should not atmosphere that bold, new, dynamic pro­ in this country. This explanation is not waiver in enforcing mutual security. grams must be devised on a crash basis to quite plausible. Many of our distinguished The United States is accepting the overcome the gains made by the Soviet dur­ commanders such as Generals MacArthur, ideas of the agreeing nations to make ing this period. The U. S. S. R., encouraged Bradley, Ridgway, Bedell Smith and Admirals the former military pacts into economic by the acceptance of their smiles, of their Halsey, · Denfeld, and Carney obtained well­ new approach and their new look, again paid positions with business firms after they pacts. They must be both; not one or abrogated the trust of the free world and in retired at the statutory age of 62 or later. the other. this environment, established a foothold in The explanation that Marshal Juin has given The House Foreign Affairs Study Mis­ the Middle East to further obstruct and up his NATO command because he did not sion to Europe last fall, of which I was divide the free world by igniting historical want to serve under Gen. Lauris Norstad­ chairman, wrote the following observa­ issues which were at the stage where solution a much younger man--does not hold water tion in its report to the House: was in sight. either. He had served in the past under The free world must always be ready to Generals Ridgway and Gruenther, both his The meeting of the Foreign Ministers at negotiate with the U. S. S. R. to obtain a Geneva began on October 27, 1955, and con­ junior in age and rank. just and lasting peace, but must always bear Sir Winston did not elaborate on these tinued until November 16. The study mis­ in mind that the first objective of the Com­ sion arrived in Geneva on October 31 and left staff changes when he took a dim view con­ muni:;;ts is to conquer and enslave the world. cerning the future of NATO, but pointed out the afternoon of November 2. The contact We must never permit ourselves to be caught of the study mission with the conference was that the enthusiasm for the coalition has in that which is described in the direct quote waned in most European countries where co­ entirely through the Secretary of State and used so ably by Congressman RoBERT C. BYRD, members of his staff. The study mission was existence and neutralism have taken deep convinced when it left Geneva that nothing of West Virginia. roots. The attitudes of the Scandinavian would be accomplished at the meeting. This "War to the hilt between communism and members, Iceland, France, and even Ger­ situation confirmed the judgment of all the capitalism is inevitable. Today, of course, many, where the rank and file is opposed foreign officials with whom the study mission we are not strong enough to attack. Our to a military force of 500,000 men, are clear discussed this matter that they expected time will come in 20 or 30 years. To win, we indications of the shape of things to come. nothing to come of the conferen@e. shall need the element of surprise. The The allied combat forces at the western The two meetings during 1955 at Geneva bourgeoise will have to be put to sleep. borders of the Red curtain are now com­ (July and October) focused attention on one "So we shall begin by launching the most posed almost exclusively of Americans and of the critical aspects of United States for­ spectacular peace movement on record. British. And Britain, in the throes of an­ eign policy. It was apparent everywhere the There will be electrifying overtures and un­ other economic crisis, soon may be com­ study mission went during its 2 months of heard of concessions. The capitalist coun­ pelled to withdraw at least one of her four travel that there had been a great relaxation tries, stupid and decadent, will rejoice to divisions. cooperate in their own destruction. They of tension, apathy, a decided let-down in the Sir Winston is said to be more disturbed NATO defense effort, and an alarming rise in will leap at another chance to be friends. As soon as their guard is down, we shall than any other European or American states­ neutralism. Most nations were giving a man about the growing danger of a Turkish­ higher priority to their domestic problems smash them with our clenched fists." (The words of Dmitry Manuilsky, about 25 or 30 Greek conflict over any settlement of the and their confiicts of interest with their Cyprus issue. The Turks are . determined neighbors than to the_Soviet threat. years ago, in a lecture at the Lenin School of Political Warfare in Moscow.) that there shall be no union of Cyprus with Our representatives at Geneva acknowl­ Greece. The former Prime Minister observed edged that, in general, this relaxation had It is clear that a program designed to meet danger will have to be adjusted from time that the strengthening of the forces of both occurred. They pointed out, however, that countries in eastern and western Thrace is the objective of United States foreign policy to time when and if the danger diminishes. It is also clear that if such adjustments disturbing. The Balkans, like the Middle was to promote world peace and security. East, are dangerous powder kegs. A minor They said that the United States should not, are made by those participating in the program when the danger hasn't diminished incident easily could bring about an explo­ therefore, consider a course of action to be sion, the United Nations notwithstanding. a failure which has led nations to feel that the effort is weakened and the enemy has won a round. There is no question that the Qreek Gov­ the prospects of peace were brighter than ernment headed by Prime Minister Karaman­ they had been previously and to believe that The following article by Constantine lis will do its utmost to prevent anything they were more secure than they had been for Brown as it appeared in the Washing­ as serious as a Greek-Turkish clash. But 7 or 8 years. The United States representa­ ton Evening Star of July 12, 1956, sub- . Karamanlis must reckon with a highly tives at Geneva argued that a foreign policy emotional and explosive public opinion. which required continuous fear and tension stantiates the observations of the study to make it effective defeated its own purpose. Some of the Athens newspapers are violent mission. in their denunciation. The Greek press is The study mission had noted, nevertheless, Two MAJOR THREATS IN EUROPE-CHURCHILL more free than that in any other country in nearly every country a conviction on the REPORTED CONCERNED OVER NATO's WEAK­ in the eastern Mediterranean in saying that part of government leaders that the Russian NESS AND CYPRUS WAR Turkey is provocative. The rank and file of smiles did not indicate a change in Soviet The publisher of a large metropolitan the Greek people are avid newspaper readers objectives and that the Communist danger. paper last week had an unusually long con­ and pay much more attention to editorials had not diminished. The typical attitude (particularly those of an inflammatory char­ appeared to be "We have not been fooled by versation with the world's foremost elder the Russians; we fear that other nations may statesman, Sir Winston Churchill. Despite acter) than to sports, financial news, or have been; there is no question but that pub­ the fatigue and discomforts inherent in his comic strips. Hence, public opinion is for­ lic opinion within our country has shown an advancing years, Sir Winston appears still to mulated by newspapers more than in the unjustified optimism." While all of the for­ have a better and more realistic understand­ West. eign officials talked to were sufficiently re­ ing of world conditions than the younger Diplomats may dismiss such editorials as strained as to avoid direct statements to this men to whom he has handed over the lead­ poppycock, written for the purpose of in­ effect, there were frequent implications that ership of Great Britain in these trying days. creasing the paper's circulation. But those statements of United States leaders last sum­ The former British Prime Minister seems who know Greece and the Greek people do mer had been too optimistic and that the to be particularly concerned over two im­ not take such writings lightly. Greece is opinion of their own people toward Russia portant problems confronting Europe-out­ militarily in better shape than she has ever tended to be infiuenced more by the prevail­ side, of course, the perennial threat from been before. And the Greeks are being told ing opinion in the United States than any­ communism. One is the increasing weak­ that, under certain circumstances, they thing else. ness of NATO and the second, the tension between Greece and Turkey. could find support from Marshal Tito, the There can be little doubt that serious Arab States, and even from the U.S.S.R. Despite official statements to the contrary, damage was done to the NATO defense effort . On the other hand, the Turks are not peo­ by the flareup of national rivalries which NATO has at present neither brawn nor a has occurred between Greece and Turkey. moral determination. The announcement ple to be easily scared or pushed around. This :fiareup might have been prevented if last month that two of its top commanders Last year's anti-Greek demonstrations in the attention of the western nations had (the supreme commander, Gen. Alfred Istanbul have shown that underneath, the not been permitted to waiver from the ne­ Gruenther, and the commander of the NATO Turkish masses still hate the Greeks and cessity of meeting the common danger. ground forces, France's Marshal Juin) will that the present Turkish-Greece alliance It is clear that the only good out of Geneva retire this fall is a significant indication. It is nothing more than a marriage of con­ was to again alert the world that Russia is is more than a safe speculation that the two venience which easily could end in a spec• insincere in its objective for world peace. distinguished soldiers do not want to remain tacular divorce. 1956 CONGRESSIONAL RECORD- HOUSE 12769 Social Security Benefits at the Age of 60 ployers ban middle-aged people. We all part of our economy or to a large seg­ know this is true. Today, according to ment thereof, most of our Republican EXTENSION OF REMARKS the news article, there are 47,400,000 friends immediately label it "socialism" OF people in America over the age of 45 and "a step toward communism." . years. But if we should provide social When our Republican friends make HON. EUGENE SILER security benefits for workers at the age such suggestions, it is not socialism nor OF KENTUCKY of 60 years, there would be many mil­ communism, it then is "conservatism IN THE HOUSE OF REPRESENTATIVES lions less people applying for these jobs where property is concerned" or ''liber­ and facing that vicious ban against the alism" where human rights are con­ Friday, July 13, 1956 hiring of persons 45 years of age and cerned." Mr. SILER. Mr. Speaker, some people over. Many would not seek or need I direct our colleague's attention to may consider Friday, the thirteenth, an ·these jobs at all since they would be able the article by Joseph L. S. Terrell, as it unlucky day, but I consider this as a very to live plain and simple lives in their appeared on the front page of the Wall lucky day when I am permitted to speak little homes on the hills and up the Street Journal of July 9, 1956, and sug­ for millions of Americans who have been hollows with some social security bene­ gest that the matters discussed therein earning bread in the sweat of the human fits coming in each month to keep the are worthy of the attention of the appro­ face over the productive years and who wolves of want away from their doors. priate congressional committees. now only hope for a few declining years Moreover, if social security retirement The article referred to was placed in ahead that will permit them to have a at 60 years should become a general prac­ the CONGRESSIONAL RECORD of July 12. little peace of mind and well-earned rest tice, there would be millions of job oppor­ 1956, by Senator JOHN J. WILLIAMS. without constant worry over grocery bills tunities added for our young people all and other similar charges upon everyday over America who are constantly coming living as the old-age period of life over­ out of the schools of the land. Every Excerpts From Address by Hon. Alexan· takes them. time a 60.-year-old employee would retire, On February 28, 1955, I introduced another JOb would be open for some will­ der Wiley, of Wisconsin, at Harris Me­ H. R. 4489 seeking to reduce social-se­ ing youth of 18 or 20 years of age. morial Foundation, University of curity retirement age to 60 years and to So, these are the stanch arguments provide total and permanent disability for my bill or one similar, briefly sum­ Chicago benefits for those who have been working marized: and covered under the law for a period of First. No cost to our taxpayers. EXTENSION OF REMARKS 12 quarters. I thought mine was a good Second. Helping hand to our aging OF bill then and I think it is a good bill now, population. although the House Ways and Means Third. Additional job opportunities HON. ALEXANDER WILEY Committee has never seen fit to report for our young people. OF WISCONSIN my bill favorably up tci the present time. It is also worthwhile to observe that IN THE SENATE OF THE UNITED STATES If my mind does not change, I expect to added social security benefits such as I introduce this same bill or one similar have mentioned would inure to thou­ Friday, July 13, 1956 to it as long as I stay in Congress, or sands of butchers, bakers and candle­ Mr. WILEY. Mr. President, America until ultimate success is assured on this stick makers throughout the country. and the rest of the free world were ap­ proposition. Now money is a medium of exchange. palled at the bitter and completely un­ What is social security? Well, it is So, added money is just added exchange justified attack made by Soviet Repre­ something that does not cost the tax­ that eventually finds its way into the sentative, Andrei Gromyko, at the payers or the Government anything hands of all who have anything_to sell. United Nations Disarmament Commis­ whatever for the payment of any of its Once upon a time, a man said he had sion against the suggestions, made in benefits, strangely enough. It is insur­ loaned a football player a dollar. His good faith, by our United States dele­ ance pure and simple. And insurance friend asked if he ever got it back. "No," gation. benefits always come from insw·ance said the lender, "I only got a 'halfback' Ambassador Henry Cabot Lodge, Jr., premiums. If the risk is high, the on my books." Well, if we should in­ in replying to Mr. Gromyko, termed the premium must be high. If you take fire crease social security benefits, many Soviet delegate's unwarranted attack as insurance on a paperboard house 2 miles tradesmen and taxpayers could expect to "a scurrilous attack on my country in the from a fireplug, the policy cost,. or the get many real "halfbacks" in their cash worst traditions of Stalinism." premium fixed, is necessarily high. But registers through channels of trade and If the nations are to prove adequate the fellow that wants to protect his commerce. And I am not talking about to the challenge of the atomic bomb and house is always willing to pay the cost football players-just plain old "e pluri­ the hydrogen bomb, then the world must of protection and always wants his in­ bus unum,'' is what I mean. expect something more from Soviet surer to have actuarial soundness at all Senator GEORGE, of Georgia, just re­ spokesmen than vitriol. The world has times. So, all that is now needed for cently stated, in talking about social se­ a right to expect that the Soviet Union safe social security benefits at 60 and curity amendments now pending, "If we will at least make an effort to respond to sound disability benefits as mentioned can get this through, then I am ready free world proposals in the spirit in which is for a provision of a suitable premium to go away from the Senate." So, per­ they are offered-a spirit of good faith to be paid by employers and .employees haps it is proper for me to say, "If I can and of genuine desire to find a common that will be commensurate with the get my own social security amendment meeting ground. added benefits. From all my conversa­ enacted into law to help our ordinary We are now awaiting the new com­ tions with various people that would be people, then I will be ready to go away ments of the able leader who has been affected, there is practically no objection from the House and close my own career spearheading our disarmament efforts, among them for the added cost in view in that great body." the Honorable Harold Stassen. of the happy prospect of the added I believe that Governor Stassen is to be benefits. commended for the great job he has been We have heard much talk about our performing patiently, industriously, and annual foreign aid that has already cost Socialism-Republican Style with imagination and initiative. taxpayers $55 billion. So now, what On Saturday night, June 30, it was my about· a discussion of some American aid EXTENSION OF REMARKS own privilege to comment on the future that will cost taxpayers nothing what­ OF of the United Nations, and to touch ever? In one of the great newspapers of the _briefly upon the atomic problem. At HON. ABRAHAM J. MULTER that time. I delivered tm addre.Ss before country, in its issue of July 11, 1956, OF NEW YORK the Norman Wait Harris Memorial there was a front page article emphasiz­ IN THE HOUSE OF REPRESENTATIVES ing the impossibility of a person over 45 Foundati-on, at the University of Chicago. yea.rs of age ever getting a job. A Labor Friday, July 13, 1956 I ask unanimous consent that excerpts Department survey shows, according to Mr. MULTER. Mr. Speaker, whenever from that address be printed in the this article, that 3 out of every 4 em- a Democrat suggests Federal aid to any RECORD. 12770 CONGRESSIONAL RECORD- HOUSE July 13 There being no objection, the excerpts With scientific developments accelerating, tedious. But the work of this group has we may expect our problems of this nature proved that the Soviets can definitely be from the address were ordered to be in the jet-atomic age to multiply further. moved. Comparison of their 1946 position RECORD, printed in the as follows: And our margin for error, our area of leeway, on reduction of armaments wi~h their policy SENATOR WILEY SAYS ATOMIC CLOUD OVER of possible mistakes-becomes narrower and papers of today confirms this fact. WORLD IMPELS FuRTHER ALL-OUT EFFORT narrower. The world forum function of the U.N. has FOR U. N. EFFECTIVENESs-STATES U. N. Man is still simply at the threshhold of also shown us that moral forces and public CHARTER CONFERENCE CAN BE VALUABLE still more dramatic phases of the Atomic opinon can, indeed, be successfully aroused. FoRUM ·Age--dramatic for good or for evil. The evolution of U. N. Technical Assist­ I am delighted to be here with you this In the light of this and other clouds over ance and the work of auxiliary agencies­ evening, to contribute, if only in a small way, the world, the U. N. simply has to succeed. UNICEF, WHO, FAO-have proven most to your most significant deliberations. Dwight D. Eisenhower has said that there salutary. ' The foundation's annual symposiums in "is no alternative to peace." That means ADAPTATION OF THE U. N. the field of international relations have been that there is no alternative but to work As we proceed into the 11th year of the outstanding, and have proven, I am sure, in­ through the U. N. on behalf of these most U.N., we see that a new look must be taken at valuable in stimulating an increased public priceless of all goals-the preservation of its methods of operation and certain govern­ awareness of today's major world problems. human freedom and the preservation of a ing laws. For this reason, great importance Nineteen hundred and fifty-six marks, as just and durable peace. is rightly attached to review or possible you so well know, the 11th anniversary of the Let us look now for a brief moment­ amendment of the U.N. Charter. founding of the United Nations. Thus, we backward-into the world of 1945, as com­ However, we must carefully weigh several are now into the second decade of its exist­ pared with 1956. factors in discussing this problem. ence. ' EAST-WEST STRUGGLE IMPAIRED CHARTER HOPES Chief Justice Marshall referring to our What more appropriate time to consider all We quickly see that the great aspiration, Constitution said that "it was intended to aspects of the organization and some of the endure for ages to come, and consequently major issues it poses for American foreign born during World War II, the hoped-for­ to be adapted to the various crises of human agreement among the Big Four soon deteri­ policy? affairs." The Constitution has, in fact Earlier this week you have, indeed, heard orated into a chronic East-West struggle. proved to be a flexible document, and it had from an imposing· array of experts in the That epic clash was symbolized by 33,000 adjusted to the growth of our country. overall field of United States foreign policy heroic American dead, 110,000 United States wounded in the Korean war, plus 14,000 Similarly, the charter has often adjusted and international organization. to new situations without the necessity for I feel particularly honored to participate casualties from other gallant United Nations forces and a half-million brave South Ko:t;ean rigid amendment. U. N. legal powers, as in these lectures and to discuss with you one such, are now, no more or no less; principles of my very special subjects-the Future of casualties. and goals have not changed. Indeed, the the United Nations and Charter Review. But the East-West clash is symbolized as well in virtually every geographic area of the adjustments have brought end-goals close MY WORK ON SENATE SUBCOMMITTEE world-a political, economic, social, cultural, to fulfillment, by experimenting and avoid­ ing futility and overcoming stalemate. As a member of our Senate Subcommittee propaganda contest-sometimes smooth, on Charter Review and its first chairman, I sometimes crude, but always there. SOME CHARTER PROVISIONS HAVE FALLEN INTO have closely studied charter problems, par­ Inevitably, the U.N., conceived in the high DISUSE ticularly during the past 3 years of our com­ hopes of San Francisco, the hopes of Big 4 The evolution of the charter is most in­ mittee's operations. unanimity, was jarred again and again by teresting to note. In some cases, we have And this spring, with the prospect of a bitter dispute and by consequent stalemate. seen specific provisions fall into disuse, while review conference in sight, we submitted our and frustration. others have been applied in a way that the final recommendations covering this subject. U.N. HAS BEEN MATURING charter framers perhaps never contemplated. Moreover, now that the U. N. General As­ This not to play down the organization. For instance, we have seen Security sembly has approved in principle the calling Council enforcement powers under article of a charter review conference, and a special Quite the contrary, it is to point out that we have leamed a lot-the hard way-since VII set aside, with the impossibility of great committee has been set up to undertake the power unanimity. Similarly article 106 on preliminary planning, it is especially timely 1945. At that time, we tended to look upon the interim enforcement measures has settled for a public examination such as this, of into disuse. ways and means by which the United Nations U.N. in a kind of aura of perfection. Many can, indeed, be improved. Americans didn't actually expect to have IMPRESSIVE NEW FUNCTIONING much to do in caring for the U. N. or in On the other hand, new functions and in­ CAUTIOUS OPTIMISM IN U.N. JUSTIFIED guiding it toward maturity. At that time, terpretations have taken form. The Gen­ The basic theme of my comments tonight they felt we had helped give birth to some­ eral Assembly has become the leading forum is one of optimism--cautious but definite op­ thing new and perfect, and we were rightly . for consideration of political issues. New timism. I have faith in the U. N., justified proud of our part. activities in the colonial field have grown faith, and in our ability to help make it Yet, we soon thought that the United Na­ out of interpretations of article 73 regarding achieve the objectives which are dead to the tions had a mind of its own. It didn't always responsibilities with respect to non-self­ hearts of mankind. do our bidding. governing territories. The emerging role of I have particular faith that some of the Too, it started things without seeing com­ the Secretary General has opened another recent achievements of the U.N. will, in the pletion. And we saw that member nations, major outlet in the peaceful settlement of future, emerge to still larger proportions. over the Western member group, like mem­ disputes. I refer, for example, to the outstanding bers of a family, didn't always see eye to eye. All of these illustrations are not to pre­ contribution which has been made to the Simply put, the organization was still too sume that the charter is so flexible that we cause of peace by the successful visit of the young to face all the most acute world prob­ can change it at will, merely by interpreta­ Secretary General Dag Hammarsjkold to the lems successfully. To ask a 3, or 4, or 11- tion. Certainly a member that supports a explosive Middle East. year-old child to perform all the family duties broad interpreation in one instance might I refer, too, to the formation of the In­ is sheer folly. find such a precedent against its interests in ternational Atomic Agency. It took us a while to realize the significance another situation. And a General Assembly of this analogy, and to proceed to let the The actual h~rnessing of atoms for peace which might seek to enlarge its area of power 1n accordance with President Eisenhower's U. N. handle those functions, commensurate by narrow voting margins would no doubt historic address of December 1953, will rep­ with its development. find its influence weakened in a short time. resent one of the most magnificent land­ But the international organization did The point is that we must strike a happy marks of this 20th century, if it can reach learn through experience what it could do. medium between the e·xtreme positions of fruition, as we earnestly hope it will. Today, the U. N. is stil not ready to meet loose as against strict construction. every problem troubling the family of THE ATOMIC CLOUD OVER THE WORLD We must also bear in mind the fact that nations. we cannot stage a review conference, until The mighty atom symbolizes both hope But it can be called on increasingly for the most thorough preparations have been and danger: constructive assistance. I believe that undertaken by other member states, as well Hope in the form of a world of greater American foreign policy toward the U. N. as by the U. N. Secretariat. plenty. must take this objective realistic point of Danger through the dread heat, blast, and view. THE IMPORTANCE OF MEMBER NATIONS' SPIRIT radiation effects of nuclear explosives. The PHASES OF U. N. ACHIEVEMENTS Whether or not the review conference will latter problem-radiation-provides a par­ Other speakers this week have no doubt serve a lastingly constructive purpose de­ ticularly ominous background of our deliber­ touched on a number of major issues where pends largely on the attitudes with which ations. I refer, for example to possible radio­ the Organization has come to the forefront: members approach this conference. active contamination of the waters of the The Korean conflict proved the historic We must have some kind of true spirit of oceans, of plant and animal life, and most force of collective security against outright accord, if this meeting is really to work out. important of all, of human beings-not only aggression. This means that a number of agreements in the present generation but in the genetic The continued meetings of the U. N. Dis­ definitely have to be reacped between the traits of future generations. armament Commission have been long and Soviet Union and the United States. 1956 CONGRESSIONAL RECORD- HOUSE 12771' Of course, we have learned through ex­ Charter Review has been to foster an in­ advantages, incurred by membership of the perience the pitfalls of our dealings with telligent American public opinion. four satellites-which are, of course, hardly zig-zagging Russia. So we must not be de­ We have done this in several ways. Dur­ independent nations. luded by her latest tactical shifts-the new ing the 3 years of intensive study and re­ Bulganin-Khrushchev soft line. search into all problems of Charter Review, OTHER CHANGES BECAUSE OF ENLARGED We would nonetheless hope that the Soviet we have accumulated a wealth of document- MEMBERSHIP Union could join in the planning of a re­ . ary materials-materials which have been The admission of new members will, no view conference, in cooperation with the published and subjected to careful analysis. doubt, require future review of the seat community of nations. We should pledge Not only are these intended to educate the allocations with in the various bodies. ourselves to do everything consistent with interested citizen, but we have strongly This, in turn, will affect the voting re­ out national security to bring it about. But urged the Department of State to scrutinize quiremen~ in decisionmaking which may we must not wear rose-colored glasses. the many specific proposals and recom­ require Charter amendment. And we must remember that not all the mendations for Charter revision. We can also expect new and important problems complicating charter review are At the same time, we have held public political problems brought before the Gen­ based solely on Soviet-American postwar hearings at which we received testimony eral Assembly with the increased member­ relations. from top officials in the executive branch. ship. The United Nations will speak with And our 18 days of public hearings outside wider authority. It will more accurately Differences, as you are all aware, exist of Washington represent the first trial in refiect underlying conditions as they are between large and small nations, between the taking a major issue of foreign policy di­ in the world, and call our attention more developed and less-advanced countries, be­ rectly to the people for testimony and dis­ decisively to the crucial problems of our age. tween states with colonial holdings and the cussion. But a greater sense of responsibility must newly independent countries. Witnesses were drawn from all walks of be assumed by all members, if the enlarged However much we may be interested in life, and their observations served to enrich organization is to develop further in a some specific change, it must be remembered our own understanding of the problems be­ sound and practical way, and if problems that 75 other nations at the coming con­ fore us. Thus, we were able to tap new are to be solved and not aggravated. ference will each have their proper vote. sources of wisdom throughout the country The highly articulate Asia-African bloc, on this subject-sources which might have ADVANCING CRUCIAL GOAL OF SECURITY now stronger than ever in numbers, truly otherwise remained dormant. Another central issue is, of course, the will play a particularly significant role. We matter of collective security under the welcome the enlarged role of the newly in­ PRINCIPAL SUBCOMMITTEE RECOMMENDATIONS Charter. We have learned that the original dependent nations, although we recognize Let me, for a moment, focus attention on premises of universal collective security un­ that the problem of securing agreement in­ a few of the chief recommendations incor­ der the charter have not been attainable. evitably becomes more complex. porated in our final subcommittee report. Consequently, to fight aggression, alterna­ Unless we understand all the above con­ Few aspects of the U. N. have been more tive methods of collective defense had to be siderations prior to the calling of a review widely debated than the veto problem. developed. conference, we are almost certain to become There is no doubt but that it has long The Uniting-for-Peace resolution and our disillusioned when events occur which cannot hampered the operation of the Security sound regional defense pact with 42 nations be foreseen or planned. Council. have answered Russia's abuse of the veto. Yet, more is involved here than a simple They have given us free world security in­ SENATE HAS VITAL RESPONSIBILITY mechanical device. We cannot ignore the side the Charter, but outside the veto. Now, the responsibilities of the Senate fact that we have insisted on the rule of These indispensable security arrangements with regard to the United Nations and other unanimity in the Charter, and certainly for have definitely not impaired the United Na­ peace and security organizations are, of valicl reasons. tions machinery which can still operate in course, obvious. • The criticism thus really lies in misuse of those areas not at issue among the perma­ First of all, we have the basic obligation the veto by Russia. nent powers. of being a well-informed body. Likewise, How can we now best approach this prob­ And if further machinery is necessary for we have dual constitutional responsibility. lem? the defense of the Nation, a logical step No amendments to the charter proposed at We might look for clearer distinctions be­ might be to explore the possibilities of link­ any future conference can become effective tween the more procedural, as against ing together the various regional and other without the advice and consent of the Senate. substantive questions. This is difficult, defense treaties in which we now partici­ Secondly, the Senate has the continuing although in several minor instances, we have pate. function of advice in foreign affairs. We seen issues successfully listed as procedural They represent fairly close to the maximum need not and would not stand apart from through voluntary agreement. strength which we could actually hope to a review conference and wait to see what Admitt-edly, the major scope of Security mobilize in the present period, for defense may be produced in the way of amendments Council work still requires Great Power against Communist aggression. unanimity. The increase in the number of to the charter. We may work with the Presi­ issues which can be considered as procedural This approach could leave unimpaired the dent and the Secretary of State on what will in turn depend on East-West relations. peaceful settlement and other useful ma­ changes, if any, are believed desirable or The Vandenberg resolution of 1948 cer­ chinery of the United Nations itself. It acceptable. tainly remains a valid objective of policy. could leave intact the enforcement ma­ In turn, our subcommittee, in its study of But except, possibly, in cases of pacific set­ chinery of the U. N., available whenever charter review, has been guided by certain tlement and the adlllission of new members, some agreement among the Great Powers basic principles. it is obvious that present circumstances do would permit its use. First of all we did not try to draw up not permit further restriction of the veto OTHER ISSUES FOR REVIEW precise proposals for specific changes in the power. language of the charter. Any international These, then, are but a few of the questions NEW THINKING ON ADMISSION OF MEMBERS which must be thoroughly though out by agreement involves negotiation and compro­ the Senate, the President, and by the Amer­ mise. And these functions are, under the The membership provisions of the Charter ican people, in preparation for a truly suc­ Constitution, essentially within the responsi­ have undergone change in view of recent cessful review conference on the U. N. bility of the executive branch. Instead, we package developments in admission of Charter. have attempted to suggest areas which we new members. It would seem that article believe might be profitably explored by the 4 of the Charter deserves reevaluation. Member countries will want to take a Chief Executive in conference with other We have long wearied of the arbitrary So­ fresh look at a good many other issues which United Nations members. viet veto on admission of Western-sponsored were considered at San Francisco in 1945. And in our report recommendations, we nations. Some way had to be found within These include the impact of the United have not intended to speak for the Senate the purview of the Charter to allow quali­ Nations on domestic jurisdiction. as a whole, or to make any advance commit­ fied, peace-loving nations to become mem­ The status of the specialized agencies. ments as a group of individuals regarding bers. And the progress of the trusteeships and future responses to specific proposals. If the The so-called package arrangement last dependent territorie&. President submits recommendations, it will December signified several developments and The alternatives on all of these are nu·­ then be time for the Senate to give them new interpretations. The practice of ab­ merous, and surrounding factors highly careful and thorough consideration, bearing stention in this case prevented total pa­ complex. in mind not only the subcommitee's study, ralysis of the Security Council, in an in­ Yet, the problem of formulating policy on but, of course, the existing international and stance where an outright veto could be these questions is not as serious as it might domestic conditions. sidestepped. Thus, the principle of the at first seem. These are problems which Vandenberg resolution was reaffirmed in re­ have recurred before the United Nations in :IMPORTANT SENATE COMMITTEE WORK moving the veto on memrebship questions one form or another during the past 10 Again the importance of an informed pub­ through protocol agreement. years. The American Government has taken lic on this subject becomes obvious. The At the same time, it was felt that the positions on many of these before. President and Senate cannot formulate an admission of a majority of qualified appli­ The issues have been aired, and opposing effective for~ign policy without the backing cants would strengthen the United Nations points of view made known. Within reason, of the people. Consequently, one of the morally and materially. And their partici­ then, it would be possible to predict what chief aims of our Senate Subcommittee on pation would outweigh the obvious dis- alternatives are likely to be acceptable to a. 12772 CONGRESSIONAL -RECORD- HOUSE July 1'3 ·· majority of the members taking part in the create a monopoly or to lessen compe­ judge a complete guide or handbook on how review conference. tition. The bill has received extensive to intepret the antitrust laws. It is handy; There will undoubtedly be wide room for hearings in the Senate committee, over it is well-organized for the purpose; it has negotiation and accommodation. And if we a perfod of 7 or 8 days; and the report on the appearance of being authoritative, en­ can eventually have a sincere and thorougJ;l­ lightened and sophisticated; and it will save going exchange of ideas on some of these the bill has been printed. The bill is our overworked Federal judges, harassed as matters, as they relate to the charter, we may now on the agenda of the committee. I they are by overcrowded dockets, a great hope for useful results from the review con­ can think of no measure which would deal of time and labor which would other­ ference. give more needed protection to small wise have to be spent in looking up previous ACCENT ON THE SPIRIT, NOT JUST THE FORM business and to merchants. They have cases, analyzing legislative history, and carry­ ing on the multitude of t asks required in There will be trial and error, therefore, as had a very difficult time in meeting dis­ criminatory prices. They have had a the writing of a reasoned, well-considered there has been in the past. No absolutely set opinion. plan for review and revision, no rigid for­ difficult time in surviving in the face of What was the special occasion for the mula, few hard and fast overall commitments increased monopolistic influences. report's appearance? Why was it felt that on our part will be feasible. Enactment of the bill is very greatly at this time a report of this type should be We must always act by honor and princi­ needed. I hope very much that the bill prepared? Certainly it could not have been ple, but still, at least partly, play by ear­ will be approved by the Judiciary Com­ the desire to obtain "clarification" of the adjusting, adapting, we must seek constantly, antitrust laws, since the report warmly en­ not basically a perfected form, but rather, mittee at its next meeting, and will be pla,ced on the calendar of the Senate, dorses the ·application and extension of the basically, an improved spirit-an improved Rule of Reason in place of what are some­ attitude, a more dynat;nic will toward agree­ and will be considered by the Senate and what improperly termed "per se" rules. One ment on the part of all nat ions. passed. can embrace either the need for clarification CONCLUSION Mr. President, we talk a great deal or the rule of reason but not both at the In 1945, when the Senate r atified the about wanting to help small business­ same time. As Prof. Louis B. Schwartz said U. N. Charter, our Foreign Relations Com­ men and small entrepreneurs, but very in his dissent, "One can have more uncer­ mittee expressed the belief that United few measures for that purpose are tainty and fewer per se rules, or less uncer­ States "participation in the United Nations is passed. This bill will give them some tainty and more per se rules. Antitrust in accord with our national interests, and relief. The bill is backed by small busi­ critics will have to make a choice." • * *our contributions to the United Nations ness associations, retail grocers, whole­ As one who has had the opportunity to will be repaid many times." observe firsthand the play of forces, the de­ Membership in the U. N. is still absolutely sale grocers, and druggists' associations. velopment of issues, and the activities of in our national interest. Throughout the country there is tre. affected interests, my personal impression President Eisenhower, in his latest state of mendous interest in the bill. is that basically the report is merely the the Union message, stressed the central aim The article which I had the privilige latest in a series of efforts to modify anti­ of our foreign policy: "The waging of peace, of preparing, and which appeared in the trust law enforcements. These efforts were with as much resourcefulnes, with as great a Mercer Law Review, issued by the law touched off by four major decisions during sense of dedication and urgency, as we have school which is named Mter the dis­ the middle and late forties. Had the rea­ ever mustered in defense of our country in soning of this report been· followed, those time of war." tinguished senior Senator from Georgia decisions would never have been handed We know that the U. N. is a vital instru­ [Mr. GEORGE], deals with this problem. down. And today, although the latter two ment in setting the tone for international For that reason, I feel that it will be of decisions are still the law of the· land,- there harmony. We rightly took the lead in form­ interest to th~ Members of· the Senate; ·is, I - am sure, the -hope· on the part of the ing this international ·organization. It is ·and I ask that the article be printed in report's sponsors that, guided by its pre­ ·our continuing responsibility to utilize it to the RECORD. cepts and logic, the courts in the future will see the error of their ways and reverse these the fullest extent, aware of its limitations, There being no objection, the article yet inspired over its potential. unfortunate mandates. What are these four Peace takes practice. was ordered to be printed in the RECORD, cases? The charter has set forth some very im­ as follows: They are, first: Corn Products Refining Co. portant rules of the game. Within this THE ATTORNEY GENERAL'S COMMITTEE REPORT V. F. T. C.; 1 second: F. T. C. V. A. E. Staley framework, whether there is· formal amend­ IN PERSPECTIVE Manufacturing Co. ;~ third: F. T. C. V. Cement ment or not, the nations of the world can (By EsTES KEFAUVER, United States Senator Institute;a and fourth: Triangle Conduit Co., 4 practice until peace and security are gen­ from the State of Tennessee; A. B., Univer- Inc. v. F. T. C. uinely accomplished. sity of Tennessee, 1924; LL.B., Yale Univer- The first two of these cases, the Corn Prod­ God grant, we hope and pray, that there sity, 1927; Member of Congress, 1939-48; ucts Co. case and the Staley Co. case were will be sufficient time, a genuine spirit, in member of firm Kefauver, Duggan & Me- brought under section 2 of the Clayton Act ld as amended by the Robinson-Patman Act.5 which to succeed. Dona • Chattanooga, Tenn.) The significant facts -in the Corn Products In a statement which I made before the case were these: The corn Products Refiii ~ Committee on the Judiciary of the House of ing Co. has two plants for the manufacture Representatives on May 9, 1955, shortly after of glucose or corn sirup--one at Argo, 111., Report of the Attorney General's Commit­ the issuance of the report of the Attorney within the Chicago switching district, and General's Committee on the Antitrust Laws, the other at Kansas City, Mo. In selling tee on the Antitrust Laws I stated: glucose, the Corn Products Co. used its Chi- "It (the report) is a gigantic brief for the cago plant as a basing point, charging the EXTENSION OF REMARKS nonenforcement .of the antitrust laws. It Chicago base price plus freight from Chicago OF is a massive sedative designed to be ab- on all sales, whether they were made from sorbed by the enforcement agencies and the the Chicago plant or from the Kansas City, HON. ESTES KEFAUVER courts in the prosecution and trial of anti- Mo., plant. OF TENNESSEE monopoly cases. The result. can only be Under this practice buyers of glucose in complete immobility on the monopoly front. Kansas City paid a fictitious or phantom IN THE SENATE OF THE UNITED STATES To paraphrase General Sherman, if a com- freight of 40 cents on every 100 pounds of Friday, July 13, 1956 plaint is received it won't be investigated. glucose they bought. On all deliveries from If it is investigated, it v.:on•t be brought the Kansas City plant to points freightwise Mr. KEFAUVER. Mr. President, I ask to trial, and if it is brought to trial it won't nearer to Kansas City than to Chicago, buy­ unanimous consent to have printed in be won." ers paid phantom freight of varying amounts. the CONGRESSIONAL RECORD an article Six months later in hearings before. the On all deliveries from t_he Kansas City plant which I wrote for the Mercer Law Re­ House Small Business committee, Prof. freightwise more remote from Kansas City view, of the Walter F. George School of s. Chesterfield Oppenheim, the co-chairman than to Chicago, the Kansas City plant ab­ Law, of Mercer University, at 'Macon, of the Attorney General's Committee testi- sorbed freight. Under this practice pur­ fled that the office of the Administrator of ,. chasers were denied the transportation sav­ Ga. The article deals with the report of Federal courts had sent a copy of the report ings that normally would accrue to them by the Attorney General's Committee on the of the Attorney General's Committee to every Antitrust Laws. Federal judge in the United States. Accord­ 1 324 U. S. 726, 65 S. Ct. 961, 89 L. Ed. 1320 · I think the article is a timely one, Mr. (1945). ing to that testill).ony, Professor Oppenheim 2 President, in view of the fact that a few, had suggested such action to the attorney 324 U. S. 746, 65 S. Ct. 971, 89 L. Ed. 567 days ago the House passed by an over­ (1945). general. 3 333 U'. S.· 683; 68 S. Ct. 793, 92 L. Ed. 1010 whelming vote House bill 1840, which Quite apart from questions as to its pro· (1948). amends the Robinson-Patman Act so priety, the · action · is significant in that it . " 168 F. 2d 175 (7th Cir. 1948). as . to prevent selling at discrimina­ illustrates the re;tl and ultimate pu~pose of 15 38 S~at. 730. (1914) .• 15 U. S .. C., sec. 13 tory prices where the re::mlt would be to the report, which is to provide for every (1952). 1956 CONGRESSIONAL RECORD- HOUSE 12773 reason of their proximity to Kansas City, and Act o in the sale of their products. Section the decision in the Circuit Court of Appeals the Kansas City plant realized varying mill - 5, of course, gives the Federal Trade Com­ upholding the Commission. Thus, with the nets depending on the point of delivery. mission the right to prevent unfair methods shift of one vote, this potentially powerful It is an interesting part of the record that of competition. The Commission's com­ weapon could once more be made effective. 2 or 3 candy plants in Kansas City buying plaints charged violation of the law on two It is because of apprehension on this very glucose from the Kansas City plant, in order counts. point that such determined efforts have to avoid having to absorb the freight charge Count one alleged that the respondents been made to secure the enactment of legis­ from Chicago to Kansas City-although the had conspired to use the basing-point sys­ lation which would in effect cement the product was never actually transferred­ tem of pricing and thereby had substan­ Standard Oil decision into statutory law. moved their plants from Kansas City to Chi­ tially lessened competition in the sale of Perhaps after 7 years of unsuccessful effort cago. The Federal Trade Commission found rigid-steel conduit, and that that was an on the legislative front it was thought that that the practice constituted a price dis­ unfair trade practice within the meaning of nothing would be lost and perhaps much crimination within the meaning of section section 5 of the Federal Trade Commission might be gained by issuing a document 2 (a) of the Clayton Act-1. e. the Robinson­ Act. which among other things, would reaffirm to Patman Act-and that it had injured compe­ Count two charged that each corporate the jurists the correctness of their original tition among candy manufacturers. The respondent had violated section 5 of the views, as expressed in the Standard Oil de­ Supreme Court upheld the Commission's or­ Federal Trade Commission Act through the cision, moreover, such a document might der that the Corn Products Refining Co. concurrent use of a formula method of mak­ provide the opportunity of extending the stop such price discrimination. ing delivered-price quotations. The Com­ Court's decision beyond the province which mission found that for any seller to quote the Court itself had established. The Staley case, which was decided on the prices under a basing-point system with the Personally, I disagree strongly with the same day, is a companion case to the Corn knowledge that his rivals are doing the same Court's interpretation of the law in this Products Co. case. The Staley Manufacturing thing and with the result that such prac­ case. The Court, I believe, was guilty of sub­ Co. had its glucose plant at Decatur, Ill. In tices eliminate competition among them is stituting for congressional intent its own selling glucose it used the Corn Products an unfair trade practice. The decision of views, misguided in my opinion, as to what Co.'s Chicago price as a base price. Under the Seventh Circuit Court of Appeals on is economically desirable. But the Court this practice, the Staley Co. charged buyers May 12, 1948, upholding the Commission is at least set certain limitations as to the ex­ of glucose at Decatur the Corn Product Co.'s today the law of the land, as it was in effect tent to which the "good faith" defense could Chicago base price plus freight from Chicago sustained by a 4-to-4 vote of the Supreme be used. Now the Attorney General's Com­ to Decatur, although glucose was bought Court.1 mittee would wipe. out these limitations and from Staley's Decatur plant. These four cases were directed at a type thus go beyond the Supreme Court's decision. On all sales freightwise nearer to Decatur of pricing method which is inherently dis­ In the Standard Oil decision the "good than to Chicago, the Staley Co. charged criminatory in character and is particularly faith" defense was limited to the meeting of phantom freight. On all sales freightwise injurious to the normal growth of under­ "lawful" prices; the Attorney General's Com­ nearer to Chicago than to Decatur, the Staley developed areas. In a speech which I gave mittee would in effect extend it to the meet­ plant absorbed freight. The result was price on the floor of the United States Senate ing of "unlawful" prices as well. The re­ differences depending on the location of the on June 1, 1950, I described at some length port says that "• • • a seller should be buyer. The Commission found this to be the manner in which these pricing systems deemed to have met a lawful price unless he price discrimination within the meaning of have retarded the normal economic devel­ knew or had good reason to believe other­ section 2 (a) of the Clayton Act and that it opment of the South and the West. wise" (p. 182). The report does not describe injured competition among the buyers of glu­ The effect of the 4 decisions was to how the Federal Trade Commission is going cose. The Supreme Court affirmed the Fed­ give the Federal Trade Commission 3 weap­ to establish the state of knowledge on the eral Trade Commission's cease-and-desist ons with which to attack basing-point sys­ part of the discriminator as to the lawfulness order and in doing so rejected the defend­ tems. Where the circumstances were sim­ of the price which he is meeting. This is ant's pleas that its prices were made in good ilar to those which obtained under the not the lawfulness of his own price, about faith to meet equally low prices of its com­ Staley and Corn Products cases, the Com­ which he might be expected to know a little, petitors. mission could attack the systems under the although even here there might be room for The proceedings in the Cement case were Robinson-Patman Act as discriminatory. doubt. It is the lawfulness of someone else's under both the Federal Trade Commission Where proof of agreement could be found, price. One can hardly imagine a more im­ Act and the Clayton Act. The Federal Trade as in the Cement case, they could be at­ possible burden of proof to impose upon the Commission charged, first, that cement man­ tacked as instruments of unlawful con­ enforcement agency. ufacturers had conspired to use the basing­ spiracies. But, perhaps most important, The decision limited the "good faith" de­ point system to eliminate price competition where each seller individually followed the fense to discriminations made to meet com­ among themselves in violation of section 5 of same system knowing that every other seller petitors' prices; the Attorney General's Com­ the Federal Trade Commission Act; and, was doing the same and where the result mittee would extend it to discriminations second, that thi_s had resulted in price dis­ was to substantially lessen competition, the made to beat competitors' prices as well. crimination that substantially lessened com­ system would be attacked under count 2 The report says, "An incidental undercutting petition among the sellers of cement. The of the Conduit Co. decision as an unfair of the prices quoted by others, when in the Federal Trade commission's record in this method of competition in violation of the course of genuinely meeting one particular case-50,000 pages of testimony and 50,000 Federal Trade Commission Act. This was competitor's equally low-price offer, hence pages of exhibits-reveals concerted action a formidable armory, and it is little wonder should not invalidate a seller's defense" (p. am'Ong cement manufacturers extending in­ that on April 28, 1948, the day after the 183) . The report does not describe the cir­ termittently over almost half a century de­ Supreme Court's decision in the Cement case cumstances under which an undercutting of signed to eliminate competition in the sale was handed down, Mr. Irving S. Olds, then price is only incidental. of cement. The basing-point system had be­ chairman of the board of the United States In the Standard Oil decision the "good come the principal instrument in this pro­ Steel Corp., stated that industry was faced faith" defense was limited to defensive price gram, but it had been supplemented by the with two alternatives--either it must seek discriminations made to retain an existing standardization of trade practices and the remedial legislation or it must educate the customer. The Attorney General's Commit­ use of freight rate books to make easy the Supreme Court. tee would extend the defense to aggressive calculation of identical delivered prices at all For 7 years big industry has labored in the discriminations made to obtain new custom­ points of delivery. While the system did not legislative vineyard without avail. The At­ ers. The rationalization for this position work equally well through good times and torney General's Committee report repre­ consists of mere assertion. The report says bad, it worked well enough so that through­ sents an attempted "massive education." that the Court "merely employed language out the 1930's cement· manufacturers per- _ When the Supreme Court in the subse­ describing the case at bar" and that a limi­ sistently offered to supply cement on Govern­ quent Standard Oils case held that good tation of the defense to defensive price dis­ ment projects at priees identical to the faith is a complete defense to a charge of criminations "would not be in keeping with fourth decimal place, although the prJces price discrimination, it virtually rendered elementary principles of competition • • ••• useless the first of these weapons. As long (p. 184). The principle is to say the least were presumably submitted independently as good faith remains a complete defense, it under secret and competitive bidding. unique. Just disregard what the Court is difficult to envisage the successful use of clearly says, if it "* • • would not be in The Supreme Court, in reversing the lower the Robinson-Patman Act against a basing­ keeping with the elementary principles of court, affirmed the Commission's. orders to point pricing system. But the phrase "as competition." cement manufacturers that they cease and ­ long as" is important. The decision in the The Attorney General's Committee cer­ desist from perpetuating the use of the Standard Oil case was, in effect, by a 5 to tainly has the right to its opinion that the basing-point system through any planned 4 vote; the actual vote was 5 to 3 but Supreme Court's decision does not go far common course of action. Justice Minton abstained as he had written enough. One can, however, question the The Conduit Co. case involved an appeal propriety of the Committee's efforts to create to the Circuit Court of Appeals for the Sev­ e 66 Stat. 632. --, 15 U.S. C., sec. 45 (1952). the impression that what it regards as right enth Circuit from the finding by the Federal 7 Clayton Mark & Co. v. F. T. C. (336 U. S. and proper has already been accepted by the . Trade Commission that 14 corporate manu­ 956, 69 S. Ct. 888, 93 L. Ed. 1110 (1949)). Court and is today the law of the land. But facturers of rigid-steel conduit had violated s S.tandar.d Oil Co. v. F. T. C. (340 U. S. 231, what is really astounding in its implications section 5 of the Federal Trade Commission 71 s. Ct. 240, 95 L. Ed. 239 ( 1951) ) • is the Committee's bland statement . that 12774 CONGRESSIONAL RECORD- SENATE July 16

what it considers the law should be, not what Circumstantial evid-ence of consciously par­ overlooked observation of the Court to be the law is, now governs the enf<>rcement of allel behavior may have made heavy inroads found in the Cement 'decision~ the law. The report states, "Since the stat­ into t:Qe traditional judicial attitude toward "While we hold that the Commission's ute may be presently interpreted as we pro­ conspiracy; but conscious parallelism has findings of combinations were supported by pose, we do not consider legislative amend­ not yet read conspiracy out of the Sherman evidence, that does not mean that existence ment necessary now" (p. 184). Act entirely" (p. 39). of a 'combination' is an indispensable ingre­ The Attorney General's Committee would The report then draws this conclusion: dient of an 'unfair method of competition• also immobilize the other two weapons, ex­ "This committee is in full accord with under the Federal Trade Commission Act." cept where overt evidence of conspiracy was that Supreme Court reasoning. 'Conscious Incidentally, I agree with Prof. Eugene found. It must be remembered that such parallelism' is not a blanket equivalent of Rostow that even insofar as the Sherman Act evidence was present in the Cement case. conspiracy. Its probative value in establish­ itself is concerned, "The emphasis given to But its appearance in concentrated indus­ ing the ultimate fact of conspiracy .will vary the limited decision of the Supreme Court tries is becoming more and more of a rarity. case by case. Proof of agreem-ent, express or in the Theatre Enterprises cases should not The large corporations have long ago learned implied, is still indispensable to the estab­ be misinterpr,eted" and that it "in no way the importance of not keeping in their files lishment of conspiracy under the antitrust weakens the authority" of such earlier Sher­ letters, minutes, memoranda, or documents Act entirely." (p. 39.) man Act cases as Interstate Circuit,10 Para­ of any kind which would constitute direct The crucial phrase in this interpretation mount Pictures 11 and American Tobacco Co.12 evidence of conspiracy. One of the functions is "under the antitrust laws." The Theatre There are many other aspects of tlle report of the corporation lawyer is to keep his client Enterprises 0 case was a Sherman Act case. with which I thoroughly disagree. Among from making precisely this type of mistake. The notion of conscious parallelism to which other things, I disagree with the evidentiary Now the manner in which the Attorney­ the committee was objecting and which the requirements it has advanced as necessary to General's committee sought to cope with this report says had been laid to rest by the Thea­ prove a violation of the Celler-Kefauver Anti­ issue represents, whether intended or not, an tre Enterprises case developed from Federal merger Act, with its attempt to read the rule interesting case example of how to create a Trade Commission Act cases. The principal of reacon into the Clayton.and Federal Trade misleading impression without actually m ak­ cases cited by the report in its reference to Commission Acts which Congress enacted ing a misstatement. After citing the deci­ development which "fostered the notion that for the specific purpose of placing on the sions in recent FTC cases, the report says, conspiracy necessarily followed from iden­ statute books antitrust laws to which the ••such developments fostered the notion that tical conduct by competitors" are the Cement rule of reason would not be applicable, with conspiracy necessarily followed from identi­ case and the Conduit Co. case, both of course its recommendation for an increase in penal­ cal conduct by competitors-provided _each FTC Act cases. The Theatre Enterprises case ties as being unduly and almost ridiculously knew what the other was doing," (p. 38). is obviously not relevant to the issue which modest, with its recommendation for the ex­ Assuming the unstated justification, i. e. the report is here discussing. It is possible tension of consent decrees, with its direct at­ that the effect of the practice substantially that the authors of the report might attempt tack on private triple-damage suits and with lessens competition the question arises as to to defend themselves on the grounds that its almost c9mplete disregard of the problem whether this is the law of the land? The technically the Federal Trade Commission posed by the existence of monopolistic size report says no, because, "The Supreme Court Act is not considered to be an antitrust law. and power. laid this notion to rest in Theatre Enter­ But such a defense would be specious, since But in this article I have endeavored to prises, Ina. v. Paramount Film Distributing the whole point of the argument is to use the stress what I consider to be the key issue Corp." (p. 38). 'Ihe report then goes on to farce of the Theatre Enterprises decision which precipitated the far-reaching and con­ quote the following passage from that deci­ against those cases which gave rise to the tinuing attack on the antitrust laws, of which sion: conscious parallelism doctrine. the report is merely the latest manifestation. "The crucial question is whether respond­ The dfstinction is of course fundamental. ents' conduct toward petitioner stemmed Since the Federal Trade Commission Act was For the reasons which I have endeavored to from independent decision or from an agree­ intended to go beyond the Sherman Act and set forth, the committee's interpretation of ment, tacit or express. To be sure, business prevent in their incipiency practices which the law on this issue is in manifest error. I behavior is admissible circumstantial evi­ if not arrested would ripen into Sherman Act am confident that the courts of the land will dence from which the factfinder may infer violations, what is not a violation of the recognize the error and will enforce the law agreement. • • • But this Court has never Sherman Act may well be a violation of the in accordance with tne intent of Congress­ held that proof of parallel business behavior Federal Trade Commission Act. In this assuming, of course, that cases involving the itself constitutes a Sherman Act offense. connection it is interesting to note an often issue are ever brought forward.

away with all malice and that nothing S. 1895. An act to waive certain provisions SENATE be done through strife or vainglory; but, of section 212 (a) of the Immigration and in lowliness of mind, let each esteem Nationality Act in behalf of certain aliens; MoNDAY, JuLY 16, 1956 others better than themselves. We ask and S. 3163. An act to amend section 401 (e) The Senate met at 9:30 o'clock a. m. it through riches of grace in Christ Jesus of the Civil Aeronautics Act of 1938 in order The Chaplain, Rev. Frederick Brown our Lord. Amen. to authorize permanent certification for cer­ Hanis, D. D., offered the following tain air carriers operating in Hawaii and Alaska-. prayer: THE JOURNAL 0 Thou to whom every thought of On request of Mr. JoHNsON of Texas, every heart is fully known, Thou- who and by unanimous consent, the reading REPORTS OF COMMITTEES SUB­ seest and knowest all things, grant us of the Journal of the proceedings of MITTED DURING ADJOURNMENT grace, we pray Thee, so to know Thee and Friday, July 13, 1956, was dispensed with. so to see Thee, that in knowing Thee we Under authority of the order of the may know ourselves even as we are per­ Senate of July 13, 1956, fectly known of Thee; and in seeing Thee ENROLLED BILLS SIGNED DURING The following reports of committees may we see ourselves as we verily are ADJOURNMENT were submitted on July 14, 1956: before Thee. In the framework of these By Mr. CHAVEZ, from the Committee on Under authority of the order of the Public Works, without amendment: stirring days may we see our brief pass­ Senate of July 13, 1956, ing lives against the background of - H. R. 3210. A bill to authorize the State of The PRESIDENT pro tempore· an­ Illinois and the Sanitary District of Chicago, eternity. Show us our own smallness nounced that on July 14, 1956, he signed under the direction of the Secretary of the and Thine infinite greatness. Show us the following enrolled bills, which had Army, to test, on a 3-year basis, the effect of our own lovelessness and Thy exceeding previously been signed by the Speaker increasing the diversion of water from Lake love, boundless and everlasting. Yet in of the House of Representatives: Michigan into the Illinois Waterway, and for other pwposes {Rept. N.J. 2578). Thy mercy show us also how, small as we S. 146. An act for the relief of certain are, we can take refuge in Thy great­ aliens; ness and how, loveless as we are, we may S. 976. An act to provide for the release of 10 Interstate Circuit, Inc., v. United States hide ourselves in Thy forgiving love. the right, title, and interest of the United (306 U. S. 208, 59 S. Ct. 467, 83 L. Ed. 610 With our hearts cleansed by that for­ States in a certain tract or parcel of land (1939)). giving love, we pray that, for _the tasks conditionally granted by it to the city of 11 United States v.Paramount Pictures, Ina. Montg()mery, W. Va.; (334 U. S. 131, 68 S. -Ct. 915, 92 L. Ed. 1260 set before Thy servants here in a new (1948) ) • . ·and vital week of legislation and deliber­ o Theatr"e Enterprises, Inc., ·v. Paramount 12 American Tobacco ·co. v. United States ation, all bitterness and wrath and anger Film .Distributing Corp. (346 U. S. 537, 74'S. (!328 U. S. 781, 66" S. Ct. 1125, 90 L. Ed. 1575 and clamor and evil speaking may be put ct. 257, 98 .L: Ed. 273 {1954) >. (1946})~ ·