I 36104 EXTENSIONS OF REMARKS October 17, 1971, Mr. MANSFIELD. Mr. President, I item of business I ask unanimous con stand in adjournment until 12 o'clock suggest the absence of a quorum. sent that the Senate stand in recess sub noon, on Monday, November 18, 19'74. The PRESIDING OFFICER. The clerk ject to the call of the Chair or until that The motion was agreed to; and, at 5:41 will call the roll. item of business arrives. p.m. the Senate adjourned until Mon The legislative clerk proceeded to call There being no objection, the Senate day, November 18, 1974:, at 12 o'clock the roll. at 5:37 p.m. recessed subject to the call noon. Mr. MANSFIELD. Mr. President, I ask of the Chair; whereupon, at 5:40 p.m. unanimous consent that the order for the Senate reassembled when called to the quorum call be rescinded. order by the Presiding Officer (Mr. APPOINTMENTS BY THE PRESIDENT The PRESIDING OFFICER (Mr. GRIFFIN). PRO TEMPORE HARRY F. BYRD, JR.). Without objection, it is so ordered. Pursuant to the provisions of Public Law 93-443, section 310, the following ADJOURNMENT UNTIL MONDAY, were appointed to the Federal Election RECESS SUBJECT TO THE CALL NOVEMBER 18, 1974 Commission: OF THE CHAm Joseph F. Meglen, of Montana, for a term Mr. MANSFIELD. Mr. President, I of 3 years. Mr. MANSFIELD. Mr. President, as move, in accordance with Senate Con Joan D. Aikens, of Pennsylvania, for a term long as we are waiting for only one other current Resolution 120, that the Senate of 1 year.
EXTENSIONS OF REMARKS THE FARMER'S SIDE OF THE STORY accept the higher prices and get the Govern agencies. Congress has an obligation to ment out of the .farming business through root out these abuses and to see that its controls and subsidies.; or support the they never happen again. HON. CHARLES S. GUBSER controls and subsidies in return for lower Mr. Presi~ent, I ask unanimous .con OF CALIFORNIA wheat prices. You can't have both. I hold no brlef for Mr. Butz, but it does sent that the articles I referred to and IN THE HOUSE OF REPRESENTATIVES appear he is the first Secretary of Agriculture an editorial from the September 29, 1974 Wednesday, October 16, 1974 that has done what you, the taxpayer, have edition of the St. Louis Post-Dispatch been demanding the past 40 years and now be printed at this point in my remarks. Mr. GUBSER. Mr. Speaker, in these you don't like the alternative. You have en There being no objection, the articles days of escalating prices at the super joyed a food bill as low as 15 cents of the and editorial were ordered to be printed market, many people find it all too easy consumer dollar for decades. At the present in the RECORD, as follows: to blame the farmer for the prices they 19 or 20 cents, it is still the lowest of any must pay. nation 1n the world-the next lowest being [From the st. Louis Post-Dispa-tch, in excess of 26 cents. September 25, 1974] Recently Mr. Stephen D'Arrigo, Jr. It 1s strange indeed that we do not hear Civn. SERVICE HEAD HELPED GET GSA Jon wrote a letter to the Public Forum of the same complaints about paying $1,000 FOR POLITICIAN'S COUSIN the San Jose Mercury which gives an more for a 1975 auto or more every year for (By Robert Adams) other side to this story. I commend Mr. cigarettes, t.v .. clothes, boats, sports, etc. But, WASHINGTON, September 25.-The cousin D'Arrigo's letter to both farmers and apparently, the farmer 1s expected to subsi of a. Texas Representative wa.s given a federal consumers. His letter follows: dize the U.S. citizen's dinner table. career job after Robert E. Hampton, chair SALINAS, CALIF., October 10, 1974. Sincerely, STEPHEN D'ARRIGO, Jr. man of the Civil Service Commission, person PulJLIC FORUM, ally told the No. 2 man in a Government San Jose Mercury, San Jose, Calif. agency of a. desire r.to help" the Representa GENTLEMEN: This is a reply to "Oust Butz" tive, the Post-Dispatch learned today. Public Forum of October 10, 1974. There are According to documents in the hands of a few considerations overlooked by Mr. Wal CALLS FOR CONGRESSIONAL IN Government investigators, Hampton made ton and I present them here. QUIRY INTO POLITICAL HEAR his desire known in a Dec. 8, 1970, letter to Basically, Mr. Walton, the taxpayer has a INGS Rod Kreger, then deputy administrator of the choice, namely government subsidies or General Services Admlnlstration. higher food cost. He can't have simultane The letter concerned job possibilities for ously low cost food and no subsidy. There HON. THOMAS F. EAGLETON Dwight W. Jones, a first cousin of Representa is no law, moral or legal, that requires a OF MISSOURI tive Robert Price (Rep.), Texas. It noted that farmer to produce wheat or any other crop Jones had passed the Civil Service examina IN THE SENATE OF THE UNITED STATES and sen at a loss 1n order to provide the tion and added: "If at all possible, I would citizens of this country with the lowest food Thursday, October 17, 1974 like to help Congressman Price." budget as a percent of the consumer dollar The documents indica.te that Jones was 1n the world. Mr. EAGLETON. Mr. President, are quickly considered a "must case" by GSA For forty years the Government has main cent series of articles by Robert Adams, staff' and later received a mid-level career tained artificially high surpluses for a mixed Washlngton correspondent of the St. job in the Kansas City regional office of the bag of reasons--mostly bureaucratic and po Louis Post-Dispatch, alleges numerous GSA. litical. Naturally, this lowers prices below instances of political influence being The documents include a Jan. 26, 19'71, production costs and requires a bureaucratic letter over the name of Robert L. Kunzig, agency administer the "program". They, used to secure positions with the Fed to who was then administrator of GSA, to Ha.mp~ therefore, have a stake in the program" eral Government, positions which the law says should be awarded strictly on ton saying that a position had been "estab their jobs. The polltician can go home and lished" for Jones-although Jones heatedly brag about the lowest food cost in the world. a merit basis. denied today that any job had been set up Everyone is happy except the taxpayer who These are disturbing reports and I just for him. Jones said his post as Customer foots the bill and the farmer who no longer believe the relevant committees of the Service Director for the Kansas City regional enjoys the fruits of the free enterprise sys Congress should begin an immediate in tem, which happens to include the benefits office o:t GSA's Federal Supply Service had quiry into the situation and, if the facts existed long before he was hired. of a supply and demand economy. are as charged, conduct full public The Civll Service Commission has been ln Because the surpluses are the lowest since vestlga"tiing alleged patronage rings in GSA 1948 does not mean that this artificial sur hearings. plus was the "magic" level or the wise eco Mr. President, I know of no one who and other agencies since at least last year. But today's disclosure was the first public nomic surplus level. We presently have a is not anxious to put Watergate and all indication that the commission's chairman surplus and it 1s a healthy surplus. Until the it represented behind us. But we would breaking of the export contracts, the farm have sadly missed the lessons of that had ever passed along a. desire to help a po ers were holding back in excess of 70% of litical figure 1n connection with a .federal the 19'14 crop, and we are still in an adequate national trauma if we fail to correct the job. grain situation. The "shortage" is polltical corruption that was revealed before we It was also the first time that the name hokum. The 1975 acreage is committed to close the book. of Kunzig, who is now a judge ln the United planting or in the process of belng planted. No offense of the Watergate period States Court of Claims, had been connected While the public may complain about the was more shocking or more threatening with attempts to find a job for a person in "high" price of wheat, they also complain to our system of Government than the directly referred by a political patron. about the subsidies. You will either have to political manipulation of Government In an interview, Hampton said he did not '
October 17, 197!,. EXTENSIONS OF REMARKS 36105 consider his action improper, but, "I probably "I told Bob Hampton that I knew you agency to hire someone for a speciflc Civil wouldn't do it again." would want Ito do everything possible to Service job, even though the Whlte House Kunzig, through a law clerk, refused to help." The GSA's a.dm.lnistrator at the time used a four-level rating system with "must comment. was Kunzig. place" at the top. AccordiD.i to federal regulations, Civil Serv The memorandum went on to ea.y ihat ID :response, Hampton told the Post-Dis ice jobs such a.s ~ones's are supposed to be Kreger had given the papers to • st&Jf mem patch that he consulted with Malek only on filed on merit under .a competitive system. ber "and asked that he g!l.v-e tb.is matter legitimate toplcs, such as what positions No special favoritism is to be shown to any urgent priority... could be properly exempted from Ctvll Serv candidate. A "note to tile.'' which bears no stgna.ture. ice~ Sources familiar with Civil Service rules told of two phone calls made 1n regard to a Hampton said he had no idea untu earlier told the Post-Dispatch that although Hamp job of Jones. It ,said that J'Ones "is a must this year that a Nixon Adm1n4stration per ton's action did not appear to be illegal, it case." sonnel aid named Alan May had written a raised serious questions about; propriety. A Jan. 26, 1971, letter bearing Kunzlg's document called a "Federal Political Person One congressional source said it might ap signature. and addressed to Hampton, said: nel ManuaL" In the manual, May discusses pear inconsistent for Hampton to be the chief "Just a note to let you know that we have ways of "getting around" the Civtl Service guardian of the nation's merit system, while established a GS-13 Special Assistant to the laws and removing career government em at the same time making a referral of his Regional Director of the Federal Supply ployes who were .not loyal to the Nbron Ad own based on a desire to do a favor for a position in Kansas City for Dwight Jones. ministration. poll tical figure. "We will be requesting 11m name certifica Hampton said he was •
. 36112 EXTENSIONS OF REMARKS October 17, 1974 ferral un~t the.t her efforts were "essential to Privacy Act of 1974 (H. Rept. 93-1416). privacy and individual rights "transcends my securing employment," according to the The bipartisan measure was unani political partisanship ... report. ' DIFFERENCES Representative David N. Henderson (Dem.) mously reported by the Government Op North Carolina, f.s chairman of the manpower erations Committee by a 39 to 0 rollcall While forces lining up behind Senate and and CivU Service subcommittee, which re vote on September 24 and an open rule House btlls agree that individuals have little leased the supplemental report today along was granted by the House Ru1es Com or no control over the information that 1s with the commission's earlier 54 page study. collected about them, strong differences of mittee on October 8 calling for 1 hour opinion exist on the best way to check-as [From the St. Louis Post-Dispatch, Sept. 28, of general debate. The crowded legisla Ervin puts it--"the government's voracious 1974] tive schedule of the past several days appetite for personal information about each of us." UNCURBED PATRONAGE RINGS unfortunately has prevented action on Ervin, along with Goldwater, Koch and Robert E. Hampton, chairman of the Civil this importr.nt legislation before the Oc others, is convinced that nothing less than Service Commf.ssion, says he was "utterly tober recess. a new personal privacy board is required to shocked.. to learn that the White House H.R. 16373 will provide an individual dictate to federal agencies procedures for under President Nixon had prepared a docu access to records e,bout him being held by collecting and circulating information about ment detalling ways to circumvent the civil Federal agencies and give him the right individual citizens. service system. His shock has not been trans to correct misstatements of fact in those Ervin's insistence on this point was lated into much reform. in prompted by a survey of federal data banks The document was prepared as part of a records, · most cases. The bill has the conducted by the Senate's Constitutional deliberate program to place Nixon loyalists "enthusiastic support" of President Ford, Rights Subcommittee which he chairs. "Find in key positions throughout the Government as I indicated in my remarks in the REc ing about these [data] systems has been so that federal programs could be manipu ORD of October 9, 1974, at page 34838 difficult, time-consuming and a frustrating lated in order to help re-elect the President inserting the fu11 text of his statement experience," Ervin wrote. "The subcommH in 1972. This so-called "Responsiveness Pro on H.R. 16373. tee met evasion, delay, inadequate and cava gram" and mounting evidence of wide-spread Mr. Speaker, to better acquaint Mem lier responses {from certain agencies], and political influence peddling in several federal bers with the background on this legis all too often a laziness born of a resentment agencies which are supposedly to be staffed that anyone should be inquiring about theh· on a nonpolitical basis constitute, in Mr. lation, I insert at this point the text of activities. Some agencies displayed their ar Hampton's view, perhaps the greatest threat an article from the September 28, 1974, rogance by not replying at all. With others, to the federal merit system in its 90-year issue of Congressional Quarterly entitled extracting information was like pulling history. "Privacy: Congress Expected to Vote teeth." Yet a measure of how pervasive threats Controls." A House source, who has worked closely to the merit system have become is that Mr. The article follows: on the privacy issue, put it bluntly: "We Hampton himself has admittedly used his PRIVACY: CONGRESS EXPECTED To VoTE don't trust bureaucrats as far as we can personal in:fluence to help about 30 persons CONTROLS spit." The board concept is incorporated in find jobs, including one candidate placed s 3418 introduced by Ervin and pending in as a favor to a Texas congressman. Privacy: The claim of individuals, groups the Senate Judiciary Committeee. As disclosed by Washington correspondent or institutions to determine for themselves, The Domestic Council Committee on the Robert Adams, government investigators are when, how and to what extent information Right of Privacy, as well as government de looking into so-called "patronage rings" in about themselves is communioated to partments, would place personal information several agencies and have already uncovered others."-Dr. Alan Westin, Privacy and Free disclosure regulation within the federal ''clear and conclusive" evidence that "a spe dom. agencies. "We're not thrUled with the cial referral system" in the General Services With a. coalition of liberals and conserva thought of a privacy board or commission tives ln and out of government leading the at this point," a spokesman for the pa11el Administration "gave improper and preferen way, Congress is expected before adjourn tLal treatment to candidates referred from ment to complete work on privacy legisla said. nominally political sources." The committee has been working closely tion that for the first time would clamp with the House Subcommittee on Govern Among those who received such treatment controls on the federal government's collec foo: job candidates were Gerald Ford, when tion and dissemination of personal informa ment Information, which reported HR 16373 he was Republican minority leader in the tion about individual citizens. to the full Government Operations Commit House, and Hugh Scott, the Republican mi But federal agencies and the White House, tee Sept. 12. That measure leaves enforce nority leader in the Senate. The GSA, the while supporting the privacy concepts in the ment to the agencies rather than a separate agency charged with buying and maintaining legislation, are lobbying against one proposal board. federal property, allegedly gave candidates that would set up a watchdog panel to see The committee took this approach, Phillips from Mr. Scott's home state of Pennsylvania that the agencies follow strict procedures said, because "if you interpose a layer of bu preferential treatment and kept referrals and are seeking amendments that would pre reaucracy between citizens and the agencies, from the Senator's office in a special file. vent federal employees and applicants from you are courting an administrative monstros The irregularities in the GSA have been obtaining their examination and employ ity." Once a board Is created, Phillips added, Iulown to CivU Service investigators for al ment investigation results. "it would be almost impossible to eliminate most a year now, and the question is what The outcome could determine whether it." has been done to put the GSA house in order. President Ford signs a final blll, according to The ACLU, meanwhile, is avoiding these A still-secret report called for "immediate William Phllllps, staff director of the House squabbles altogether, taking the position and strong action," yet there have been in Government Operations Subcommittee on that any movement on the privacy issue by ordinate delays in disciplining the employes Government Information, which has worked Congress is a progressive step. "We're awed singled out as participants in the GSA pat with executive branch officials on the privacy by any action," said Douglass Lea, director of the organization's Privacy Project, a non ronage ring. legislation. L Perhaps CivU Service Chairman Hampton, Another Government Operations Commit profit tax-exempt effort set up to monitor who defends his efforts to do a favor for a tee staff source, however, said the panel could data collection by government and private congressman-but concedes he ••probably report "the most outrageous privacy blll, and institutions. in the moment of truth, everyone would go Despite assertions by privacy bill sup wouldn't do it again"-is not the best man porters that their proposals are compre to carry out a vigorous effort to defend the along with it so they wouldn't be on the record in opposition to privacy." hensive, both Senate and House measures merit system from persistent political attack. provide broad exemptions for files containing TRANSCENDING PARTISANSHIP national defense, foreign policy and crim House and Senate privacy legislation, which inal investigation data. would give Americans acce&.; to many of their "This is one area where I feel that most H.R. 16373-PRIVACY ACT OF 1974 records maintained by federal agencies, has proposed privacy legislation has been grossly drawn such diverse proponents as the Domes deficient," Rep. BellaS. Abzug (D N.Y.) told tic Council Committee on the Right of Pri the House April 2 during a colloquy on pri HON. WILUAM S. MOORHEAD vacy, headed by President Ford; the American vacy organized by Goldwater and Koch. OF PENNSYLVANIA Civil Liberties Union (ACLU); the House Legislation introduced by Abzug "spe Republican Research Committee; Represent cifically includes records in this area, be IN THE HOUSE OF REPRESENTATIVES atives Barry M. Goldwater Jr. (R Calif) cause I believe we cannot make an exception Thursday~ October 17, 1974 and Edward I. Koch (D N.Y.) and Senators of one of the most abused areas and then Sam J. Ervin (D N.C.) and Charles H. Percy expect people of this country to feel tllat Mr. MOORHEAD of Pennsylvania. Mr. (Rni.). we have. produced a serious piece of legisla Speaker, soon after the House recon Koch, who along with Goldwater, has been tion." Under Abzug's proposal, however, rec venes next month, Members wm have the in the forefront of the privacy issue in the ords that are being used in active criminal opportunity to vote on H.R. 16373, the House, asserts that the matter of personal prosecution would not be disclosed. October 17, 1974 EXTENSIONS OF REMARKS 36113
LOBBY REPORT-2 FEDERAL DATA BANKS
Number not Number not reporting reporting Number of Number number Number Number of Number number Number Agency data banks computerized of records of ret:ords Agency data banks computerized of records of records
ACTION ______:-_-:-_-:. _-:-_:. .; 6 351,700 Federal Mediation and Concili8- Administrative Office of the U.S. tion Service ______~__ :;:; ••••:.: :;;;;; I I 0 1, 000 Courts _._-----__ :. ______:. ••• 9 9 4 757,000 Federal Power Commission •• :..;.-= 1 0 0 1, 100 App~la_chian Regional Com· Federal Reserve Board ••:. -.;;..;;;;.·. 1 0 0 1,369 miSSIOn ___ :. -----=------.: 3 2 3 0 Federal Trade Commission ____-= ;,-;.; 1 1 1 0 Civil Aeronautics Board ______1 1 0 0 General Services Administration •• 2 1 0 119, 000, 160 Civil Service Commission ______13 8 4 18,972,800 Interstate Commerce Commission. 1 0 0 1, 750 Department of Agriculture ______6 5 0 5, 539,200 National Aeronautics and Space Department of Commerce ••••••• 8 8 3 204, 165, 500 Administration ______--=· 1 0 1 26,931 Department of Defense: National Credit Union Adminis· Department of the Air Force_ 73 36 13 18,001, 109 tration ______----- __ ----- __ I 0 1 512 Department of the Army ____ 385 382 12 34,467,849 National Science Foundation _____ 4 4 1 375,505 Department of the Navy _____ 20 12 6 6,154,368 Office of Economic Opportunity ___ 13 13 3 108,360 Miscellaneous Department of Office of Emergency Ppeparedness. 2 2 0 1, 905,000 Defense offices and Office of Management and Budget. 3 2 0 2,083 agencies _____ :::::. .::-•• _____ 19 13 3 2,626, 090 Railroad Retirement Board ______9 4 5 15,468,000 Department of Health, Educa- Securities and Exchange Com· tion, and Welfare ______61 60 0 402, 428, 158 mission ______=--- ______6 6 0 679, 50(} Department of Housing and Selective Service System ______1 1 0 14,860,811 Urban DevelogmenL ______27 25 6 9,862, 305 Small Business Administration ___ 4 2 0 884,000 Department oft e Interior ______1 0 0 79,800 Special Action Officer for Drug Department of Justice ______19 12. 4 139, 031, 722 Abuse Prevention ______.: 1 0 0 23,000 Department of Labor______4 3 1 24,000,000 Tennessee Valley Authority ______8 7 3 146, 150 Department of State ______.______2 1 1 243,135 U.S. Atomic Energy Commission •• 6 6 0 1, 088, GOO Department of Transportation ____ 18 17 2 6, 194,430 U.S. Commission on Civil Rights •• 3 1 1 379 Department of the Treasury __ • __ 46 38 7 155, 571, 458 U.S. Information Agency ______2 2 0 17,698 Environmental Protection Agency. 4 4 0 41,200 U.S. Postal Service ______2 2 0 23,000 Equal Employment Opportunity U.S. Tariff Commission ______2 2 2 0 5 Veterans Administration ______Commission _____ ------131,000 White House ______29 21 1 72,604,326 Farm Credit Administration ______3 2,900 7 4 0 151,940 Federal Communications Com- mission ___ :. _·______----- __ 12 12 2, 253,481 TotaL ______------858 741 93 1, 245, 699, 494 Federal Deposit Insurance Cor- poration ______30,000
Source: Senate Constitutional Rights Subcommittee. Privacy push Nixon White House order that had given the "There are organizations we thought would While observers say Watergate is responsi Department of Agriculture permission to ex· have lined up with us-oommon Cause and ble in part for the likely passage of a privacy amine farmers' tax records, killing a. General Ralph Nader," Lea said. "But they are wary b111 this session, Douglass Lea of the ACLU Services Administration plan for a new gov of the issue. They want more disclosure (by belleves the activities of the White House ernment data bank and winning House ac~ government and business), and they seem. committee on privacy, the Department of ceptance of the 1974 education records' pri to think there would be a confiict" by taking Health, Education and Welfare, the ACLU vacy amendments. an active role on privacy. itself and Goldwater and Ervin, among others The committee also has worked closely with The Privacy Project closely obse·rves con in Congress, created a "billiard ball effect" the House Government Operations Subcom gressional action on privacy legislation, al· on privacy, keeping the issue rolling in the mittee on Foreign Operations and Govern though the group has refused to take public Senate and House. ment Information in developing the privacy positions on pending bills because of its Liberals have been drawn to the issue, Lea bill (HR 16373) sponsored by the panel's tax status. The project, nevertheless, issued said, because of their "disillusionment that chairman, WilliamS. Moorhead (D Pa.). Staff a memorandum March 1 outlining s·ix cate massive record keeping just hasn't worked Director Phillips told the Wall Street Journal gories of needed priva;cy legislation, includ out," while conservatives "with breathing the White House committee has "probably ing some 40 separate proposals. time after the social unrest of the last few done as much as onyone to call attention to The ACLU suggested that Congress take years, have become aware of the potential the dimensions of this Issue." steps to protect cittzens against invasion of of a pollee state." The House Republican Research Committee their political rights, to protect individuals Although the privacy issue faces few out Task Force on Privacy. Chaired by Rep. Gold ·against abuse of the oriminal process, to con spoken critics, "pockets of resistance do sur water, the task force Aug. 21 issued a set of trol wiretapping and computerized data face when you get down to specifics,'' Lea legislative recommendations for combating banks and to increase citizens' ability to en said, referring to amendments regulating the threats to privacy in the folloWing areas: force privacy rights against government and privacy of school records that were included government surveillance, federal information private organizations. in the 1974 education bill (HR 69-PL 93- collection, social security numbers, census in· Senator Ervin's forthcoming retirement has 380). The provisions barring federal funds to formation, bank secrecy, consumer reporting, distressed the organization, which feels that any educational institution or agency that school records, juvenile records, arrest rec he "alone has the seniority and influence permitted the release of a student's records ords, medical records and computer data among his colleagues, the subcommittee without parental consent were an anathema banks. chairmanship (Constitutional Rights), the to "education data massagers," Lea said. ACLU Priv·acy Project. Launched two years stab111ty of an established political figure ago, the project serves as a clearing house FORCES INVOLVED and the wlllingness to take on tough pri and monitoring point on priva.cy matters, vacy and survelllance issues." Major centers of activity on the privacy is supplying reports and information to others sue are: But some civil libertarians, the ACLU working on the issue, including the White noted in its Privacy Re-port, "have sensed in The Domestic Council Committee on Pri House committee, members of the House and vacy. Established by former President Nixon Congress on any pl"ivacy issue a lazy 'leave Senate and congressional committees. A it to Sam' attitude that may be dissipated on Feb. 23, the committee was given responsi monthly Privacy Report is published by the bility for developing plans to protect an indi project, detailing privacy abuses and actions when Ervin returns to North Carolina." The vidual's right of privacy. taken by others to gain public attention on ACLU believes Ervin's departure may mean Under Ford's direction, the committee ap data collection. that privacy issues wm be splinteTed among proved 14 specific proposals July 10 for "im 'I'he tax-exempt project 1s supported by seve·ral senators with particular interests: mediate action" by federal agencies. Included foundation and business funds, including Edward M. Kennedy (D. Mass.) on military were in.itiatives to prohibit miUtary surveil grants from the Marshall Field Foundation, surveillance, Gale W. McGee (D Wyo.) on lance of civilian political activities, to protect federal employee rights, Charles McC. Mathi·as personal bank account records against dis IBM and Polaroid. The reason IBM is sup porting the ACLU effort, according to Lea., Jr. (R Md.) on criminal justice, Alan Cran closure to government agents, to safeguard ston (D. Calif.) on bank secrecy and Barry unauthorized disclosure of federal tax re is the corporation's "long range interest to turns and build privacy safeguards into fed see that confidence in the computer is not M. Goldwater (R Ariz.) on data banks. eral computers and communications systems. eroded." Congress' concern According to a spokesman for the commit While other private organizations, includ In its Aug. 21 report on privacy, the House tee, the panel will review the progress the ing the American Trial Lawyers Association Republican Research Committee concluded agencies have made on the proposals at its have taken some initiative on privacy issues, that the "individual has been physically by next meeting this fall. the ACLU is the most active non-govern passed in the modern information process" The committee takes credit for reversing a mental group pursuing the privacy cause. because he is "assumed to waive any .and all 36114 EXTENSIONS OF REMARKS October 17, 1974 interest and control over the information priv-acy had been introduced with 207 spon The major area of contention on the House collected about him.'' sors; in the Senate, various privacy b111s were bill is the effort by John N. Erlenborn (RIll.) Under most information systems, an indi· sponsored by 62 members). to prevent federal employees from gaining vidual does not really know who has col Most of the pending bills are directed to access to their examination and employment lected data about him or how many agencies one aspect of the privacy question: they investigation results. An amendment by or corporations are using it for what pur range from banning the disclosure of Soci-al Erlenborn to provide these exemptions was pose, Rep. Goldwater maintad.ns. Security numbers to prohibiting financial defeated Sept. 19 by the Government Oper AREA OF CONCERN institutions from disseminating inform-ation ations on a 22-11 vote and is not expected on their customers to government agencies. to win approval on the House floor. "I just Republicans cite Bureau of Census data Other bills would restrict existing practices don't know what Ford will do with a pri· collection and dissemination practices as one of criminal information systems, ban polit vacy bill that doesn't contain the exemp· major a-rea of concern. ical surveillance by the Army and control tions,'' said Phillips. Under penalty of law, each citizen is forced ilUcit uses of wiretapping. Another potential trouble spot on the pri to divulge intimate personal facts about his With the introduction of the Ervin and vacy legislation is the inclusion of private public and private life, nQited the Republican Moorhead bills, privacy forces feel they have as well as federal data banks in the Ervin Privacy Tll!sk Force. The Census Bureau then found a satisfactory approach to dealing bill. But there is a certain reluctance by pri sells parts of its collected data to anyone with the central issue raised by the seem vacy forces to become involved in the regula who wishes to purchase the information. ingly disparate pieces of leg"islation. tion of private data banks. "As the [census] quest ions become more . The common thread, said p,ercy, is the in - According to the White House privacy com detailed and extensive, broad-scale dissemi dividual's right to cont rol how, when and mittee, "Federal example and experience in nation becomes more threatening and fright to what extent information about himself is this complex field should precede federal di ening,'' according to the task force. "When communicated to others. rectives to the non-federal governmental and used in combination with phone directories, private sectors." drivers' licenses and street directories, cen ERVIN AND MOORHEAD BILLS Under the Ervin bill, an individual could Douglas Lea of the ACLU agrees. "There is sus data may enable anyone interested to a lack of knowledge in this area. It would be identify an individual." not be forced to disclose any information easy to leap into regulating private activity if While the task force points to census prac not required by law, and he would have to you're not careful." tices as a potential area for privacy abuse, be informed of his right not to dis.close. He And according to Joe Overton, "You don't Ervin's Constitutional Rights Subcommittee also would be notified of the existence of any want to legislate in the private sector until in a 1974 report on "Federal Data Banks and information maintained on him and how the you know what you're dealing with. Infor Constitutional Rights" reported the exist information was used. m ation practices widely vary in the private ence of three "peculiar data banks" : Secret In addition, a person would h ave the right sector. There's less sharing of data. The fed Service files on persons who make antl-gov· to inspect information pertaining to him and eral level is different. With these agencies, ernment remarks or embarrassing statements have the right to challenge any information it's easier to exchange information." about government officials; a Department of on the basis of its accuracy, completeness or Health, Education and Welfare blacklist of necessity. scientists, and an Army computer system in· The bill also places strict restrictions on volving political surveillance. the dissemination of information contained BASIC LESSON in data systems, requiring an agency to re· CLIFFORD MciNTIRE quest permission from the individual before According to the committee's report, distributing data about him to those not "There are immense numbers of government having regular, authorized access to the in HON. JOHN J. RHODES data banks, littered with diverse information formation. OF ARIZONA on just about every citizen in the country." But the most controversial part of the IN THE HOUSE OF REPRESENTATIVES (Chart, preceding page) measure is the provision establishing a fed But it was the committee's difficulty in eral privacy board that would have the au Tuesday, October 8, 1974 determining the a.ctual number and extent thority to intercede in the event an agency . Mr. RHODES. Mr. Speaker, it was with of data. banks in existence that led Ervin to abuses data information procedures. conclude: "The most basic lesson the sub The Moorhead bill, on the other hand, a deep sense of loss that I learned of the committee survey teaches is the absolute ne which also grants an individual access to his untimely death of our former colleague cessity of replacing this voluntary survey ap federal records, would depend on self-en and dear friend, Clifford G. Mcintire. proach with a statutory requirement that all forcement by government agencies and, if Cliff came from the heartland of federal data banlts be fully and accurately re• that failed, by the federal courts. Maine-Aroostook County-potato coun-· ported to the Congress and the American Federal agencies feel that the federal pri try. He was drawn to the land, studied. people." vacy board plan "would insert a new layer agronomy at the University of Maine The informa•tion-gathering impulse of the of bureaucracy in their transactions,'' said federal government is mirrored by similar Joe Overton, a legislative assistant to Rep. and engaged in farming throughout his developments in the private sector, according Goldwater. "They are dragging their heels life. to Sen. Percy, a co-sponsor of Ervin's pri and resisting an invasion on what they see After a 4-year stint with the Farm vacy bill (S. 3418). as their traditional prerogatives." Credit Administration, he became assist-· Credit agencies with their consumer files . Moorhead's subcommittee staff, Overton ant general manager of the Maine Potato have proliferated in recent years; educa added, "believes in privacy, but they are also Growers at Presque Isle. tional institutions are beginning the process looking to efficiency in government" which He came to the 82d Congress after a of computerizing student records; hospital might be affected by privacy board activities. and medical centers are finding computers special election to fill the vacancy caused· Staff member Phillips points out that a by the death of Frank Fellows. For 14 the answer to much of then· record keeping privacy board would be expensive to set up difficulties. years in the House of Representatives he "When such information is stored on tape and "would be open to attack" because of served Maine and the Nation with dedi it is easily transferred from one user to that on the House floor. "If Congress finds that self-enforcement cation and distinction. another,'' Percy said. "The individual has After leaving the Hill and until his re no knowledge of the transfer, and no ability (by the agencies) is not working, then it can to correct information about himself that always come back later and say, 'We're going tirement in December 1963, Cliff worked could ruin his chances for a new job ... or to shove a c01nmission down your throat'," with the American Farm Bureau. His: be taken as cause for investigation by a law he added. But the agencies "will take the bill knowledge of Congress-of farming enforcement agency. seriously,'' because there are strong civil and and of the legislative problems connected Which approach? criminal penalties for violations in the meas with the law and land, led to his appoint ure. The legislative controversy over the im ment to the President's Task Force on pact of federal data banks on individual OUTLOOK Rural Development, 1969-70; to the Ad privacy began in the mid-1960s when pro The subcommittee rejected the privacy visory Council of the Public Land Law posals to set up a national data bank sta board plan by a 7-2 vote, but the proposal Review Commission, 1968-70; and to the tistical center were discussed in the execu was expected to be offered again during con board of directors of the U.S. Railway tive branch. sideration of HR 16373 by the full Govern Association, for which confirmation was Although the idea was abandoned after ment Operations Committee. assured, and voted posthumously by the outcries from the public, press and Congress Phillips said, however, that he does not Senate. that the data center would lead the United expect the amendment to pass and that 1t Cliff Mcintire epitomized the spirit of States directly into "1984," hundreds of bills probably faces defeat if offered on the House Maine. H~ was direct-he spoke sparing have been introduced in Congress relating floor. Should the Senate adopt the idea, the to other personal privacy issues. (In the 93rd issue then would have to be resolved in con ly-but tellingly. He truly represented Congress through Mat·ch, 102 House bills on ference. the craggy indepe~dence that always has October 17, 1974 EXTENSIONS OF REMARKS 36115 characterized the Pine Tree State. You be given to the public that these meet ing to inter-agency and intra-agency mem knew where Cliff Mcintire stood-and ings will be held. orandums and letters, is inapplicable and why. Generally, agencies are complying with cannot be invoked by defendants or their Our Nation has suffered a loss in being agents or employees as to documents which the provisions of the act. In addition, the have been voluntarily disclosed by the agency deprived of his presence and his talents. very small staff within the Office of Man to members of an advisory committee who are I join my fellow Members of the House in agement and Budget assigned to oversee not full-time officers or employees of the expressing our appreciation for having these advisory committees are valiantly Federal government; Cliff as our colleague-and I extend my attempting to comply with the act. (3) Exemption Five of the Freedom of In condolences to his wife, Wilda, and to formation Act, 5 U.S.C. § 552(b) (5), is inap his children. Fortunately, where the agencies have plicable and cannot be invoked by the de failed to interpret the act correctly, the fendants or their agents or employees as a courts have not. I have previously sub basis for closing any meeting of the Travel mitted statements for the RECORD con Advisory Board or any other advisory com mittee from the public, or for excluding the CLIFFORD G. MciNTIRE cerning court decisions relating to the plaintiffs or any other interested persons interpretation of the Freedom of Infor from any such meeting; HON. ROBERT L. F. SIKES mation Act, an integral part of the Fed (4) The defendants and their agents and eral Advisory Committee Act.
"In order to correct the bad Impressions "Extreme austerity, cutting back on state "Neither th~ Legislature 9r the Governor about Massachusetts-like its being known as activities and not filling jobs simply because has seriously trie<;l to cut spending," he Tax·achusetts, for example-we've got to get they became vacant; maintained. ~'They talk austerity but they're state government squared away and create "By being very conservative in estimating stlll spending. We're not going to cut costs by the reality that it is being run well and how much we'd realize from various taxes. eliminating services but by making them efficiently. For example, we expect to get $30,000,000 more efficient, by getting people out of ad "After all, how do you think the marginal more from the corporation tax than anyone ministrative jobs and moving them out Into businessman-not the big corporations but outside this administration predicted; the field where they can provide services to the marginal businessman-feels when he "We anticipated we'd get revenue-sharing the public." reads about a new tax increase here? We're money from the Federal government, and I Kelly stressed, however, that the vast ma trying to create the attitude that this state was one of three governors who worked hard jority of state employes give a good day's is interested in business-and to transfer in Washington and elsewhere to win approval work for a good day's pay-but he conceded that attitude into action is what we've got to of that prograJn, and; that there are some people paid for no-show do." "There Is $100,000,000 which Is owed the jobs and others who not only don't do their state by the Dept. of Health, Education, and own work but prevent others with more en [From the Boston Herald American, July 17, Welfare. We have documented bllls for every thusiasm from doing theirs. 1974] dollar of that. We're under-estimating what "We're trying to squeeze loafers out by THE GREAT PAYCHECK RAID: SARGENT A MINOR we'll get from that source, but even if we get forcing department heads to justify what ITY OF ONE ON BALKING TAX BOOST $35,000,000 we'll be in good sha-pe. they've got, to choose between those who are (By Bill Duncliffe) "With that money, the additional $30,- doing their jobs, and those who are not," he 000,000 from the col'poratlon tax, and $35,- said. "If we could cut the cost of govern How much more will the paychecks of 000,000 in reversions from departmental the blue collar worker, the white collar work ment by one-twentieth, In this year's budget budgets we'll be all right. that would wipe out the need for a new tax er-and you and I-be raided for In addi "So there shouldn't be any new tax pro program." tional state taxes next year? gram In '75. There are a lot of problems re One of the few people outside of Sargent's If Gov. Sargent is right, not a dime-as maining, but if the economy picks up and long as the Legislature refuses to open the executive suite who thought-for a while we ge•t the money we expect we'll be all that there was some slight chance of avoid public purse for any program or proposal re right." qu1,r1ng a large outlay of dollars. Ing a tax hike was Rep. Joseph D. Early (D.) Sargent s·aid, however, that the legislature's of Worcester, vice chairman of the House But Sargent, up to now, has been a minor failure to pass more of his reorganization pro ity of one on that issue. Ways and Means Committee. gram-which on~e was figured to save about But Early's hope was hedged by two big The overwhelming majority of private ex $100,000,000-dlsappolnted him greatly and perts and public officials to whom this re "ifs"-lf Sargent's budget could be cut to he declared: $2,715,000,000, and if no deficiency budget to porter talked were convinced that Sargent "The urgency of reorganizing state govern Will have no choice but to seek anywhere keep state agencies running until next June ment Is greaJter now than it ever was, and if 30 became necessary. from $100,000,000 to $400,000,000 more in I'm s·till here In January we've got to give taxes in 1975. . The first hope was dimmed when the low pl'iori ty to ramrodding the rest of that pro est the budget could be cut to was $2,732,- If they are right, the money will probably gram through the Leglsl,ature." have to come from the sales, income, and 000,000, and the second didn't do any better Sargent's claim of austerity appears to when Early became reasonably sure Sargent coq><>ration levies-and that wlll il.ssa.ult clash with figures put together by the Mass. everyone's paycheck with blows like the fol .. would have to look for more money via a Taxpayers Foundation which, in an analysis deficiency budget. lowing: of his new budget, noted that since 1969 the Anyone who pays $75 in sales taxes th!l.s At least one such budget has been sub :P:umber of permanent state employes had in mitted in each of the last ten fiscal years, year w"-11 pay $100 next year, if the rate is creased from 50,219 to 62,578-a jumtJ of 24.6 lincreased one peroent. However, at least one and Early saw no reason why this one should percent. And that does not in.clude temp~ be any different. Ieglsla.tor believes it could g~ up two percent, rary or '03 help. The Foundation also count or could be made a general rather than a "He Is just trying to get by the November ed, in Sargent's budget requests, 56 programs election," Early said. "He's trying to be all limited tax. If either happens, the impact will or items that were being included for the be even rougher. things to all people and promising them first time. things he can't possibly deliver on fully. But Anyone who has $5 taken from his pay The Governor's reply to those statistics is check for state income taxes will probably be the deficiencies won't show up until after that, first, higher educatio~ has been hugely November, and so he'll have to come in some dunned for another dollar a week In 1975. expanded during his tenure, that a number And if the rule-of-thumb cited earl!ier In time later with a request for more money." of community colleges have been opened, as Early maintained th81t the state budget is this series 1s accurate, half of wh~tever tax well as a state medical school at Worcester increase is charged to corporations will be lo,aded with fixed costs for such t.hings as and the new multi-million dollar campus of food, personnel, and fuel, and he said that a passed on to their customers. UMass-Boston. Nor Is tharli necessarily all. "We had to ask for a. lot of jobs for those way must be found to "un-fix" them to some degree. And he declared tha~ in some areas One of ·the more powerful lawmakers at schools because there is no sense 1n putting the State House, who out of a sense of self up buildings like that if there's no one to what Massachusetts" needs is' management preservation asked that his identity be with staff them," he said. and clear thinking. . held, &aid that two rather hair-raising inno In addition, he decided, many of the jobs ..For example," he declared, "when we vations mlghrt be explored. added to state rolls were the responsibillty of started the state pension system 20 years ago · The first would be to place a tax, similar the cost was $2,000,000 a year. to the &ales levy, on such "services" as a the Legislature which passed laws and man dated programs that made more hiring un "The employes' contribution was five per haircut and 001r on TV repairs, and he cent. But over the years we've increased the guessed: avoidable. · "Another thing," th~ Governor continued, benefits without increasing the contribu ~'About $80,000,000 could be realized from tion--and this ye.ar pensions will cost at rthat source alone." '.'I want an additional 200 state troopers to The second would be to make any income fight crime in this tiine of violence because I a;bout $170,000,000. tax increase that might be approved nexrt year feel they're absolutely necessary. But at the "I wanted to raise the contribution to a.ppllcable to incomes earned this year. To same time we're letting jobs in other agen seven percent, but we couldn't get It do that, he declared, would be to provi.de cies go uilfilled-so what we're dong Is shift through. I told teachers and state employees .,instant money," which he claimed, may very ing priorities." that they were killing the pension system well be needed if the state's financial situa One of those who are certain that Sargent without an Increase of that nature. tion Is as serious as Sargent's critics say it Is. wlll have to put the arm on the public for "And then, there are our judges. They're in But the Governor told this reporter they more taxes is Sen. James A. Kelly, Jr., (D.) of a non-contributory pension system and it have been wrong before-and· he happens to Oxford, chairman of the Senate Ways and never cost us anything because they never be r-ight about that. Means Committee. retired. But then we made it mandatory for And he Insisted they'll be proven wrong For one thing, Kelly said, the new budget them to retire when they reached the age of again-and that remains to be seen. 70, and in one year we knocked out 40 of "For the past three years a lot of people is many million dollars short of breaking even, and for another, Sargent has made them. have been saying we needed a tax Increase of "Their pensions came to 75 percent of their $100,000,000, or $200,000,000, or whatever," he commitments to the future that will entail maintained, "but for the past three years large sums of money. The Governor will need salary, so that meant they get $25,000 a year. we've been able to hold the line on taxes between $60,000,000 and $80,000,000 more for Now maybe $25,000 doesn't seem like much while tripling the aid we give to the cities state employes, and he'll need at least $60,- but multiply that by 40 and it comes to and towns. 000,000 to meet the state's obligations to its $1,000,000 a year. "Th-at's been particularly tough to do in elderly, disabled, and blind under the Sup "It's in places like this, ,and in state aid a time of inflation but we were able to do plementary Security income program, Kelly for school construction, ff}r example, we need lt by: said. management and direction." October 17, 1974 EXTENSIONS OF REMARKS .36131: [From the Boston Herald-American, will come at the expense of those other cities The survey, based on 798- personal inter July 18. 1974) and towns whose share 1s reduced. views with people reflecting the state's popu THE GREAT PAYCHECK RAm: TAX PICTURE BAD, In either case, whatever sum any commu lation characteristics, showed that more GOOD nity gets will almost certainly be less than than twice as many cltlzens-39-.6 percent it is entitled to under the law-because the to 16.5 percent-would rather cut back serv (By Bill Duncliffe) historical fact ls that Massachusetts usually ices than raise taxes. The immediate future contains a mixture makes good on about 82 percent of the aid U Yet, given a list of 16 specific services, of both bad news and good for everyone has pledged to its cities and towns. thoee interviewed recommended reductions whose quality of life is being wounded by In spite of all the depressing evidence how 1n only three-and wanted more money spent the slashes in their income being inflicted ever, there are some encouraging-if less on ten others. each week by The Great Paycheck Raid. substantial-signs that officials on all three "The contradiction of people at the same Firat, the bad news: levels of government are beginning to tumble time demanding less spending but more serv Despite all the bright and "it's high time" to how the Great Paycheck Raid is causing ices clearly shows the political dilemma fac talk coming out of the Capitol, there is no hardship for those they are supposed to ing the Governor, legislators, and local offi chance whatever of a cut in the Federal serve. In Washington, there is increasing cials in dealing with fiscal chaos in Massa income tax being passed before the end of pressure not only for tax reform but welfare chusetts," said Henry S. Lodge, executive the year. reform-changing the system so that the director of CEG. The only answer is a gov Plus which, despite the long labors of the needy can live in dignity and hope and the ernment which works seriously to maximize House Ways and Means Committee, there is taxpayer can be sure his money is being the effectiveness of every tax dollar." no chance either that Congress will get dispensed wisely and fairly. There is sup But no public official can really do that un around at this session to correcting some of port, too, for the thesis that welfare should less he or she knows what the public thinks the more obvious inequities that now exist be solely a Federal function-and if that about any given problem or program. Speak in the nation's tax laws. The impeachment ever becomes law a huge load will be lifted ing strictly about the situation at the State proceedings and the pressures of an election from the state's tax structure. House-although his words would apply year will act to shove that issue aside until Despite the bungling and filibustering equally well on the national or municipal 1975 at the earliest. which bushwhacked the tax-cut efforts of level, Peter Keyes, legislative director of Com Those same factors wlll give the kiss of Sen. Kennedy and several of his colleagues mon Cause, said: death to any hope that the same Committee it wm come up again in 1975, and it is "Leglslators don't hea.r from their constitu will allow the House to vote on the bill pro quite likely that Burke-if he is reelected ents on many issues. Sure, they hear on such posed by Rep. James A. Burke of Milton and will be able to shake his Social Security blll things as gun control, abortion, and the like, cosponsored by 132 of his colleagues to give loose from Ways and Means and bring it be but virtually no one knows that court clerks, low and middle-income wage earners a break fore the House for a decision. for example, have an organization and they're on their Social Security tax. At the moment, he is about four votes up at the State House every year looking for As for Sen. Kennedy's proposal to increase short on the Committee, an Burke's ex• a raise. Other groups of workers and officials the personal income tax exemption to $825, pectation is that if he gets those few he have organizations doing the same thing, and forget it for now. Next year, maybe-but it wm win by a large margin in the House. the public isn't aware of them. will stlll be a tough one to win. Both Burke and House Majority Leader Legisl81tors are pressured by these groups, On the state front the common feeling is Thomas P. O'Nelll, Jr., insist that there is but there is no counterva111ng pressure from that whoever wins the governorship in No every prospect that, as far as tax reform is the people back home-and lawmakers have vember will have to perform the political concerned, Ways and Means will retain the to know how their constituents feel if they equivalent of walking on water if he is to "little man loopholes" used by many people are to do a truly effective job." avoid. asking for a massive tax hike next in filling out their income tax returns. These So that's it. Apathy, a widespread hopeless year. include deductions for union dues, medical feeling of "what's the use of saying .anything" There is, however, no discernible hope of a insurance premiums, state gas taxes, and the has allowed The Great Paycheck Raid to go miracle where the auto excise tax is con like. as far as it has. What's needed now to change cerned. Bills to reduce it and to require local But while allowing those to remain, the things for the better ls constant, construc authorities to make automatic refunds of Committee will very probably urge that other, tive action by people like the $200-a-week overpayments to motorists were scuttled by larger loopholes which work to the advan blue collar worker, the white collar worker the Legislature this year, and it wm take a tage of major on companies and other mem with an income nearly twice as large-and complete change of mind for them to become bers of "Big Business" be closed. Almost people like you and me. law in the foreseeable future. certainly that wm prove to be one of the "The rate ($66 per $1000 of valuation) is toughest fights of all in the next session of too high, and enforcement of the tax is Congress. replete with red tape and mistakes," said In Massachusetts a new reform bill wm Eivhard W. Hoover of the AAA. "Take the if signed into law by Gov. Sargent-make the MASS TRANSrr LEGISLATION refund procedure, for example. If a depart next state budget a truly "open" one from BEFORE ADJOURNMENT ment store over-charges you the refund wW beginning to end. It is the combined prod ord1nar1ly be handled quickly and with little uct of the thinking of Rep. Joseph D. Early trouble. (D) of Worcester, House Speaker David M. HON. RAY J. MADDEN "But neither the state or the local com Bartley (D) of Holyoke, and a coalition of OF INDIANA groups that included the Citizens for Econ munities will do that. If you don't know you IN THE HOUSE OF REPRESENTATIVES over-paid they won't tell you-and that's omy in Government, League of Women wrong." Voters, Mass. Taxpayers Foundation, Com Thursday, October 17, 1974 Even more unjust and oppressive, in the mon Cause, Massachusetts, and Citizens for Mr. MADDEN. Mr. Speaker. the House view of tax and financial experts and of Participation in Political Action. of Representatives is vitally concerned ficials, is the steadily-escalating cost of gov • • • but proponents claim that this would that this Congress pass a mass trans ernment in Massachusetts -but there is me.an that school costs would be spread portation bill this year. I was most virtually no chance of any significant reduc more justly over all segments of the popu tion either In state spending or the number lation rather than on the property owner pleased when some weeks ago, after 3 of state employes. alone. days of debate, this body by a large ma The more realistic goal is to control the But will it-and any or all of the other jority passed the mass transportation growth of both. remedies suggested above-be approved? And bill that was reported from the Commit On the municipal scene the prospect is that if approved, will they work? tee on Public Works. This is a long range property tax rates will continue to rise Those are the key questions, and the an swer to them is while they may be approved 6-year bill which would establish a per primarly because of inflation, school costs, manent program in the mass transpor and the new collective bargaining law that they cannot possibly work without the active requires compulsory arbitration as an ulti and articulate-and persistent-help of blue tation field. collar workers and white collar workers alike, This bill has been languishing in the mate step in settling contract disputes with without the pro or con contribution of every police and firemen. For a time, the new one whose taxes help pay the freight of gov other body for several weeks and no Special Education law appeared to be a major ernment. action has yet been taken. factor in this regard-but the decision of the There are always cries that too much During the last 10 to 15 years, traffic Legislature to provide $26,000,000 1n "up money is being spent, and that government congestion has multlpled several times front" money to help cities and towns put it must stop frittering funds away on every until today our economy is being threat into effect this coming September eased its program that's proposed by this special-in impact considerably. terest group or that. But a survey made by ened by millions of workers, shoppers, The expected rise in real estate rates would Joseph Napolitan Associaltes of Springfield business, and industry being tied up in be slowed somewhat in 200 of the Common• for Citizens for Economy in Government in urban traffic tangles by bumper-to wealth's 351 communities by a new formula dicated that many taxpayers are talking out bumper truck, automobile, bus, and rail increasing their cut of state aid-but that of both sides of their mouth. road congestion. 36132 EXTENSIONS OF REMARKS October 17, 1974 Not all Members of this Congress, espe But, not only is this good legislation, (3) Cut export of U.S. food.-A larger feted cially those from rural communities, are it is one of the best examples I have seen supply at home would mean lower prices. directly contending with this unspeak in my short time in Congress of the im Rep. Long has sharply criticized the past sales of U.S. grain to Russia, and has sup able traffic burden now being endured pact of one man with a good idea. ported programs to help small farmers by the citizens in metropolitan areas. In ·All of us in this chamber have been around the world grow more food themselves, some cities, workers are now being de looking for ways to cut consumer spend rather than rely on U.S. food assistance. layed from 30 minutes to an hour and a ing to relieve inflationary pressures. And (4) Increase world's food supply.-Rep. half in getting to and from their work here the gentleman has offered an idea Long has sponsored the Food Research and in factories, industries, offices, and shops. for a program which involves an expend Development Act, a bill to increase Amer Members of Congress from urban iture by the Government of only $6 mil ica's and the warrld's food supply (and there areas during past years have, with few lion which can reduce consumer spend by cut long-term food prices) by developing better means of food production, processing, exceptions, supported farm subsidies and ing by $380 million-in effect, a 6,000- irrigation, and livestock breeding. other forms of aid to rural areas percent return on our investment. (5) cut taxes for savers to increase mort throughout the country. We are now But all of us know that putting a good gaae money, boost homebuilding.-Rep. asking our colleagues to reciprocate bY idea in the form of a bill does not auto L~g has introduced legislation ( co-spon supporting mass transit. matically make it law. This bill has sored by 31 other Congressmen) to exempt I recently sent a telegram to the reached the point it has because of the the first $500, or $1,000 on a joint ret~rn, of American Transit Association which re tireless efforts of the gentleman from savings account interest from Federal tncome affirmed our position that the Public Massachusetts. He has walked the cor tax. Rep. Long's bill helps those lower- and Works Committee bill on mass transpor middle-income savers who have been hit hard ridors of Capitol Hill, seeds in hand, by inflation. In addition, Rep. Long's ~ill tation should be moved by the other buttonholing Members. On our first en would boost the housing market by provtd body. This is still my position, and I be counter, I left with a package of cucum ing more construction and mortgage funds lieve that, if the other body would hold ber seeds and the gentleman left with a through savings banks. immediate hearings on a mass trans firm commitment. (6) Plug tax loopholes.-Rep. Long has portation bill and report it out right I would like to take this opportunity to sponsored several bills to plug the tax loop after the recess, there could be a quick urge my colleagues to support this meas holes for the wealthy which drain the Treas conference and legislation would be ury and add to the tax burden of the aver ure when it comes up for a vote next age taxpayer. Such reforms would be aimed forthcoming before we adjourn for the month and to commend our distin at capital gains taxes, farm 'loss' deductions year. guished colleague for his tireless efforts claimed by wealthy investor-farmers, special It is my firm feeling that such action on behalf of the American consumer. tax treatment of foreign subsidiaries of U.S. should be taken by the other body, and corporations (including foreign tax credits I urge Senator HARRISON WILLIAMS of the claimed by oil companies), and the oil deple Senate Committee, and other Senators LONG PRESENTS PROGRAM TO tion allowance. who have done such a great job in the (7) Reduce energy costs, break up monop COMBAT INFLATION olistic energy companies.-Rep. Long has past in the field of mass transportation, sponsored the Energy Industry Competition to move now to meet with the Commit Act to halt the anti-competitive practices of tee on Public Works and give us the bill HON. CLARENCE D. LONG oil, gas, coal, and oil shale companies. Large, we need. OF MARYLAND integrated energy companies would be com IN THE HOUSE OF REPRESENTATIVES pelled to divest themselves of a segment of 'their operations, leading to increased com- BURKE SEED LEGISLATION Thursday, October 17, 1974 petition and lower prices. Mr. LONG of Maryland, Mr. Speaker, I (8) Increase U.S. oil yields.-Rep. Long shall oppose the President's proposals for pushed for and got an increase of appropri -HON. JOE MOAKLEY ations for research on increasing the yields an income surtax and increased invest OF MASSACHUSETTS from existing oil wells. Such advanced oil re ment tax credit. covery techniques could produce more oil IN THE HOUSE OF REPRESENTATIVES The 5-percent tax surcharge is offered from existing wells-prices should drop witll Thursday, October 17, 1974 to finance a proposed investment tax the increased supply. credit for industry which will cost the (9) Stop automatic rate hil~es.-Rep. L.o?tg Mr. MOAKLEY. Mr. Speaker, I am the U.S. Treasury about as much as the has sponsored a ·bill to requtre ·that uttltty pleased to learn that we will have an surtax will increase revenues. companies justify any rate increases in a opportunity, after the recess, to vote on public hearing-forbidding use of such mech legislation to provide free seeds to the The investment tax credit is a waste anisms as the "automatic fuel adjustment American public. ful gimmick which only subsidizes invest clause." This bill was introduced by my distin ments that companies would have made (10) Ease materials shortages _by boo~ting guished colleague from Massachusetts anyway; thus, it adds to inflation with recycling.-With industry jaczng htgher out adding new supplies of goods and prices for scarce raw materials (often con
Allende was overthrown by Chileans. He Ham Colby said: "In light of current Ameri~ such that he lives on through those of never at any time had the support of the can policy, it would not have a major impact us who knew and loved him. majority of the people. He was overthrown on our current activities or the current se Governor Hodges was an alumnus of because he and his more radical adherents curity of the United States." alienated, frightened, and ultimately radi While the triple use of the word "current" the University of North Carolina at calized in the opposite sense the uncon is ominous, this statement is mildly reas Chapel Hill, a member of the class of verted majority, particularly its most power suring. It is to be hoped that the President 1919. He was a student there along with ful element, the military. and secretary of State will be persuaded that, the late author Thomas Wolfe, the re It is necessary to make this point in order in the broader perspective, these "dirty tired newspaperman Jonathan Daniels, to clarify the broad issue-whether admitted tricks" do more harm than good to the na and our distinguished senior Senator, the CIA activities in Chile, even if they played tional security and should be phased out. Honorable SAM J. ERVIN, JR. no substantial part in the overthrow of It is a fitting tribute to Luther Hart· Allende, were in the national interest of the U.S. I would argue that they were not. well Hodges that his beloved alma mater American and other Western spokesmen AN UNUSUAL FELLOW-THE HON- is establishing in his memory-not a have for the past half century been pointing ORABLE LUTHER HARTWELL dorm or classroom building-but a pro out that, whlle the Marxist revolutions in fessorship in business ethics. the Soviet Union and elsewhere were no HODGES The editorial tributes to Gove1nor doubt directed to noble ends, the atrocious Hodges follow: means so often employed grossly distorted HON. IKE F. ANDREWS [From the Asheboro Courier-Tribune, Oct. 9, and even vitiated those ends. Yet since the 1974] onset of the cold war the U.S. has taken a OF NORTH CAROLINA leaf out of the Communist book and too IN THE HOUSE OF REPRESENTATIVES AN UNUSUAL FELLOW often resorted to means so shabby we dare Luther Hodges was an unusual fellow. He not avow them. In the long run this does Thursday, October 17, 1974 never really retired nor showed any signs of not pay. Mr. ANDREWS of North Carolina. Mr. preferring inactivity to public service of one Ignoble means debase and demoralize the Speaker, earlier this month, on Sunday, nature or another. actors, corrupt and brutalize those acted October 6, my State, our Nation, and the Every North Carolinian knows the Horatio upon and, in so doing, transform and disin Alger story of Mr. Hodges' climb from the tegmte the end itself. This is as true for world su:trered a great loss with the death tenant farm to the corporate boo.rdroom. democrats 818 for Communists. of Luther Hartwell Hodges. "Retiring" from an executive position with The consequence of a quarter century of He served long and well-as a top Marshall Field textile mill chain, he ran for "dirty tricks" by the CIA, that is, the U.S. executive with Marshall Field & Co., as lieutenant governor and succeeded to the Government, has been to make the agency Lieutenant Governor and then Governor governor's office upon the death of Gov. Wil throughout the world a symbol for unscrupu of North Carolina, as Secretary of Com liam B. Umstead in 1954. He won a term in lous intervention in other people's internal merce under Presidents John F. Kennedy his own right two years later and served the aft'alrs and hence often to undermine, rather longest of any North Carolina chief execu than to serve, the obje<:tives of U.S. foreign and Lyndon Baines Johnson, as president tive, six years. policy. of Rotary International, as chairman of It was a distinguished governorship. No We see how lt is almost universally be the board of the Research Triangle schools were clooed during these turbulent lieved in Greece that the CIA inspired the Foundation. years nor was there rac!a.l violence in the July 15 coup in Cyprus which set in train Earlier, in the 1930's, he was appointed wake of the U.S. Supreme Court's ruling the subsequent disasters. I believe this is a to the State highway conunission by Gov. which knocked down metal barriers In mistaken judgment, because upsetting the J. C. B. Ehringhaus, and, during World American schools. A consumma.te salesman, status quo was so obviously counter to U.S. War II, he served as head of the textile the governor's sales pitch for North Caro interest. But the fact it is plausible to sup lina-made products skirted the ridiculous, pose that the CIA might have inspired the division in the Office of Price Adminis especially when he posed in a shower wearing coup 1:f it had been in the U.S. interest lends tration. a wrlnkle-free suit. color to the accusation. It wa.s my privilege to serve in the But it was the kick in the seat of the pants I A New York Times story last week quotes North Carolina State Senate in 1959 the starte needed. After all, business means a telegram from the U.S. Ambassador in Delhi when Governor Hodges was rounding out jobs-and that's something the governor to the effect that the recent revelations about the longest tenure of any North Carolina who rose from the poverty-stricken ranks CIA activities in Chile have confirmed the chief executive. We became friends at understood. worst suspicions of the Indians about tbat that time, and our friendship continued "Operation Bootstrap" we remember as a agency and caused Indira Gandhi to wonder sort oif huckster promotion to attract indus whether the Indian Government may not be until the day he died at his .home in try into the state, but it wasn't a fa.ilure con the next target for elimination. This is ha.rdlr Chapel Hill. sidering the state's relatively hea.lthy state the image of its foreign policy and practice For the benefit of my colleagues I am With a stable industrial mix. The governor the U.S. Government should Wish to see wide including in the RECORD some of the edi will share a bit in our success of late in de ly held around the world. torial tributes to Governor Hodges that pleting the state of North Carolina as a good Supporters of CIA activities of this kind appeared in some of the North Carolina place to work and live. think of themselves as "hard-nosed" realists. He represented a.l1 that was good in the The Bay of Pigs is one instructive example newspapers. state. The mixture of salesmanship blarney, and Gordon Liddy's little operation at Water They sum up the man-his life, his common sense a.nd public decency which gate is another. careers, his long service-quite well, and were all part of the Hodges image were good The fact is that "dirty tricks" conducted to them I would like to add a recollection for the state. by agents of the U.S. Government very rarrely that was somehow overlooked and largely And Horatio Alger lives! Other sons of ten serve the national Interest of the United forgotten, I imagine, by those who have ant farmers should look to the example Lu States, even 1! one Interprets these interests joined in paying editorial tribute to this ther Hodges set during the productive rags in strictly "cold-war" terms. Experience has to-riches lifetime. shown that they cannot be adequately "con exceptional man. trolled" Within the executive branch, because My recollection, which has been veri [From the Durham Morning Herald, Oct. 8, lt is so often the controllers, as in the case fied by Mr. Ed Rankin, who was adminis 1974) of the Bay of Pigs and perhaps of Chile, trative assistant to Governor Hodges, was Gov. LUTHER HODGES whose perceptions and judgments are at that during the fifties he advised Mr. fault. We need not repeat in these lines the long Vietnam has tragically demonstrated the Rankin and others that it was his per and impressive list of contributions that for limitation on the capacity of the U.S. to de sonal preference that no bridge, building, mer Gov. Luther Hodges, who died Sunday, termine the structure of an alien society park, highway, or other permanent struc made to life in North Carolina. even by a massive injection of armed force. ture be named for him during his life Few would deny that he was one of the How much less likely that America could time. state's most distinguished and successful hope to do so by clandestine operations. The governors, businessmen and citizens. In his U.S. can, no doubt, occasionally contribute Governor Hodges was one who put long career, he seemed almost to personify to the rise or fall of a particular government greater stock in intangibles-truth, love, that which is best about North Carollna. or politician, but over the longer run indig and human spirit-than in brick and When he ran for lieutenant governor in enous forces, which it cannot control, will mortar. 1952, he campaigned as a. businessman, not determine whether this superficial change as a politician, who wanted to bring good has any lasting effect. He was one who appealed to others business principles to state government. Yet In referring at a public meeting in Wash to serve unselfishly, one who spurred he became an exceptionally adroit politician, ington last week to proposals that CIA aban others on to help their fellow human a. politician in the best sense, whose high don its covert action programs, director Wil- beings, one whose exemplary life was ethical sense, energetic devotion to progress October 17, 1974 EXTENSIONS OF REMARKS 36137 and insistence on the sane, sensible middle (One of the photos showed him in a wrinkle It was passed by the legislature and okayed way helped to bring North Carolina through free suit taking a shower, another showed by the voters but was never used. the turbulent 'fifties in good shape. him hitching his well-pressed pants over his Hodges -once told an interview "I consider He did not personally believe in the de North Carolina-made underwear.) The gim the calm manner in which North Carolina segregation of the schools, but North caro mickry was a sidelight to substantive ee~ handled its integration problems the num lina was lu<:ky to have him as governor when nomic leadership such as founding the Re ber one. achievement of my administration. the first token desegregation came to the search Triangle Park. It also was the thorniest problem." state. The Pearsall Plan adopted under his He learned to be a politician. He preferred He'll be remembered for the formation of governorship, was an astute exercise in com Lyndon Johnson at the 1960 National Demo the Research Triangle which he and banker promise during an uncompromising time. It cratic convention. He became an indefatig Robert Hanes of Winston-Salem pushed to saved the state from the futile resistance -of able campaigner for John F. Kennedy, and entice high quality industry into the state. the kind undertaken in Virginia, yet it was later launched yet another public service Hodges wished to create jobs for persons never invoked to close a school or to pay career as U.S. secretary o1 commerce. leaving the f-arms. the private tuition of a single North Caro In 1964, he came back for another retire Hodges was dignified and looked every bit lina student. It set the stage, as much as ment .and another decade of work for the the part of the governor. Yet he posed in his anything else, ~or North Carolina's entry Research Triangle and other North Carolina underwear for a Life photographer in a move into the even more drastic social revolution causes. Few men in this state's histo1·y lived to help the state's industry. of the 'Sixties. so fully as Luther Hartwell Hodges. He was a man of action, a m-an needed for Former Gov. Terry Sanford summed lt up the times. He continued to be active right best, perhaps, when he said. "His courage and {From the Raleigh Times, Oct. 7, 1974] up to the end. He will be missed by North sense <>f fairness and enlightenment calmed Gov. LUTHER HODGES SERVED Carolina and particularly the Research Tri the angry seas of racial strife and estab NoRTH CAXOLINA WELL angle area. lished North Carolina as a model for the na tion." Luther Hodges, who died yesterday after sutfering a heart attack at his home in [From the N{)rth Car.olina Leader, Gov. Hodges was also a model for the Oct. 15, 1974] genre from which he sprang, the nation's Chapel Hill, was the epitome of the Ameri industrialists and businessmen. But the can success story. PuRPOSE enormous energy he invested in bringing in· Starting his career as a mill hand he went Be!ore they were married a few years back, dustry to North Carolina, the Research Tri on to become governor of North oarolina. Mrs. Luther Hodges told "the Leade-r, "The angle Park and his own successful business He was born in Pittsylvania County, Va., Governor is, In so many ways, about the career marked only one aspect of the man. March 9, 1898, but his early llfe was tied to youngest person I've ever known:• As governor, as secretary of commerce, as an nearby Leaksvllle, N.C., where the family Anyone who came in contact with this re author and a speaker, he continued right up moved when he was two. His father worked markable man had to agree. until the cloBing days of his life to empha· in tbe textile m1lls there. Hodges himself He was a man of action with a probing size that businessmen not only have a duty worked as an office boy in the mills 1910- mlnd and vlslon about the future of North to make money-they have a responsibility 1911. He also worked as a mill hand during Caronna. to do it honestly and to contribute to the summer vacations. He obtained an AB degree Just a few weeks ago. we heard him explain social welfare of their community and na from the University of North Carolina at Research Triangle Park-its reason for tion. Chapel H111 in 1919 then went to work as being-to members of the Chapel Hill Rotary Luther Hodges was a conservative in a secretary of the general manager of the Club, which he founded. basically conservative southern state. But his Leaksville mms. "We wanted to raise the income level of was an enlightened, creative conservatism Hodges went on to become genel"al man North Carolina and keep the young men and which never ceases to grow and which builds ager of the Marshall Field and Co. mills in women educated in our schools at home in upon the best that we have. North Carolina. 1938 and was made vice president of the stead of having them seek higher paying jobs was fortunate to have his energy, his sure company in 1943. He retired in 1950. in the North or West." he said. rootedness and his inspiration in her serv• He was active in the Rotary Club and was Prof. Joel Carter of the University of North ice f-or such a long period of time. a member of the Highway Commission under Carolina faculty whispered, "Any meeting is Governor Ehringhaus ln the early 1930s. enhanced just by his being there. He hn.s [From the News and Observer, Oct. 8, 1974] Hodges took part in Democratic Party politics such integrity!" LUTHER HODGES LIVED A FULL LIFE at the precinct and congressional district Former Gov. Luther Hodges' integrity, ded levels. ication and purpose were a beacon light in When Luther Hodges ran for lieutenant But he was a political unknown when he governor in 1952, a lot of people thought him the development of Research Triangle Park. decided to run for lieutenant governor .in The Leader, as the Research Triangle's just another retired businessman looking for 1952. something purposeful to keep busy. The no newspaper, enjoyed .a unique, joyful relation He set out to change this. He told friends with him. We weren't around him a great tion sprang naturally from his arduous climb later that during the campaign he never from tenant farmer's son to $75,000-a-year deal, but interviews with him were fun; his bought more than one-gallon of gasoline at quick-witted mind supplying the answer to executive of the Marshall Field textile m111 a time. He'd pull into a service station, buy chain. the next question before it was spoken. a gallon of gas, shake hands all around and His wife, Louise, brightened the last years But unlike many young men who pursue say "I'm Luther Hodges. I'm no politician, success and attain it in maturity, Hodges was of his life. They were almost inseparable. but rm running for lieutenant governor. I'd We remember one autumn morning seeing neither tired nor overly impressed by achiev appreclate your vote." Then passing out ing it. :He retained a young man's sense of them stroll together with Louise Hodges · cards he'd move on to the next service sta reading aloud from a book. vigor, optimism and openmindedness. He re tion or restaurant where he'd go through garded retirement as merely a different set "What book are you reading?" we asked. of circumstances for more growth and the routine again. Governor Hodges chuckled and supplied achievement. Although he was a definite underdog, he the answer. Hodges won that lieutenant governor's race won. He became governor Nov. 7, 1954, when "It's a joke book," he confessed. And we as a novice politician because he worked Gov. William B. Umstead died. thought he knew all the jokes! hardest at learning public affairs and cam He finished the term, then was elected He lived to see his dream come true iu paigning for votes. And hindsight tells us governor on his own Nov. 7, 1956 and served Research Triangle Park. However, as he him that if Gov. William B. Umstead had no1i untn Jan. 5, 1961. He thus served longer self reminded people in a special article he died two years later, propelling H.adges to the thanlB.ny governor in this century. wrote for the Leader in 1969, the "unremit governorship, Hodges very likely would have By moving from an unknown to governor, ting dedication" o! North Carolina citizens earned it in his own right. Indeed. he did win Hodges showed that it was stm possible to is always needed to see that things keep a full term in the 1956 gubernatorial election. beat the bushes and get elected witho"Ut the happening in Research Triangle Pal'k. Those were the turbulent years of school backing of a political machine. integration in. the South. Though some of us Hodges was appointed secretary of com sharply questioned the "safety valve" plan merce by President Kennedy and continued MANPOWER POLICIES FOE. A NEW which Hodges promoted in North Carolina, the post under President Johnson. ADMINISTRATION it closed no schools. This state escaped the As governor, Hodges advocated the so racial violence he counselled against, too. Industrial promotion and economic devel called Pearsall Plan as a safety valve toward integration ir. the state's schools. At the HON. WILLIAM A. STEIGER opment most marked his years as governor. OF WISCONSIN Hodges was comfortable in the board rooms same time he said he hoped it would never and the waiting rooms as a salesman for his be used. IN THE HOUSE OF REPRESENTATIVES state. Often he was successful. He pursued Before it was struck down by the federal Thursday, October 17, 1974 many avenues. He prevalled on the legtsla· courts it allowed closing of schools under ture to eut taxes for corporations. He coop• certain conditions and allowed the state to Mr. STEIGER of Wisconsin. Mr. erated for a series of pictures for Life maga grant tuition to students not wishing to Speaker, the National Manpower Policy zine, promoting North Carolina. products. attend racially mixed schools. Task Force recently completed a policy CXX--2278-Part 27 36138 EXTENSIONS OF REMARKS October 17, 1974 statement of substance and importance. ence as deliverers of manpower and social unemployment rates increase. The Ford ad For the information of my colleagues I services. It contributed to spreading a nega ministration's plans for a Community Im want to share this statement with tive image of manpower efforts, far beyond provement Corps to hire unemployment in th~m what was justified by evaluation data. surance exhaustees for short-term public for their review and thought at this Budget retrenchment made the decentrali· works and beautiflcation projects emphasize point: zation of programs to state and local officials temporary, work-relief at low wages. An an MANPOWER POLICIES FOR A NEW more difficult as they faced the unwelcome nual average of over 1.8 million persons ex ADMINISTRATION task of breaking a smaller loaf among an hausted benefits in the past three years, and The beginning of a new administration is increasing multitude of potential clients. there may be many more in the coming year. an appropriate time for reviewing past poli THE CURRENT SCENE If a plan is adopted which provides jobs for a large proportion of these unemployed, it cies, assessing current conditions, and anal The Ford administration faces difficult yzing future needs. The National Manpower could be a very useful tool. But the Commu manpower challenges. The most immediate nity Improvement Corps is not a substitute Policy Task Force offered its assessments and issue is to cope with the problems of unem recommendations at the beginning of the for an expanded program along the lines of ployment and inflation. Joblessness is rising the Emergency Employment Act which Nixon administration, hopefully with same to socially and politically unacceptable levels positive impacts. In this policy statement, we served a broad range of the unemployed and yet "double digit" inflation persists, a pac~ funded needed "regular" jobs above as well briefly review the manpower policies of the never before known in peacetime. Traditional last six years, and offer unsolicited advice to as at the entry level, thus insuring transi methods of fighting inflation have always tional opportunities. Provision should be policymakers in the Ford administration and visited their major costs on those least able in Congress. made not only for those who exhaust com to bear them-those already at the lower pensation benefits, but for those who lose PAST PERFORMANCE margins of the labor market. Strong voices their jobs and want to continue working. The major manpower policy thrusts of the in the federal establishment and outside President Ford's proposal might complement Nixon years were the decentralization, de continue to advocate fighting inflation with an expanded public employment program categorization, and consolidation of man insufficient regard for rising unemployment. along the lines initiated in 1971 subject to power programs. These were ultimately com But the current inflation did not originate a 4.5 percent trigger funding formula. bined in the passage of the Comprehensive with labor shortages, excess labor market Public service employment is only a piece Employment and Training Act in December bargaining power, or excess demand. Labor of an antistagf:lation manpower policy. Are 1973. A solid achievement, it was the right market bargaining power is now obviously a cession is also an appropriate time to up approach for the right time. The initial im factor, but it must be recognized as an effort grade the skills of the labor force. The costs petus for manpower programs was necessarily to "catch up" after remarkable restraint. of training otherwise unemployed people are nattonal, but with a decade of experience to We believe that the use of weapons with reduced by the drop in their foregone earn build upon, the time had come to adopt the adverse labor market impacts to fight an ings. Trainees are not tempted by job avail results of that experience to the particular inflation which counts no labor market phe ability to drop out before completion of needs of local labor markets. The passage of nomena among its causes will be costly in training courses, and employers are not likely the Comprehensive Employment and Train effective, and above all, inequitable. Yet: the to raid the training facilities. Program ad ing Act was only a first step. A major effort pace of inflation must be slowed, and we ministrators are not so anxious to reduce will be required before the chief elected state have no pat answers how to deal with the training time to the minimum, and substan and local officials will acquire a full apprecia situation. tial skills can be provided. Training must re tion and understanding of manpower prob One thing is certain, however. Increased main a central component of manpower pol lems and before state and local manpower monetary and fiscal restraint wm further icy. staffs will develop the necessary planning boost the already high levels of unemploy The public employmei).t service is a neces and administrative skills. ment. Whatever policies are adopted, we be sary cornerstone of our manpower efforts. The Department of Labor, which retains lieve that society has a clear responsibi11ty Important improvements have been and are federal responsibility, has several difficult to protect and compensate those who bear being made to augment its ability to serve assignments. It must continue to confront the burden of national policies aimed to both employers and jobseekers. Experiments some manpower issues which are national in reduce inflation for the rest of us. have d~monstrated that, in addition to its scope, such as the problems of youth, older Unemployment compensation and public direct placement functions, it can do more to workers, and veterans, and accept respon assistance benefits are first line defenses. spread job market information and improve sibility for aiding migrant workers, Indians, President Ford's proposal to bolster unem the abilities of employees and employers to and others whom state and local government ployment compensation by extending regular exercise their own initiative in the job mar cannot, or would not, effectively serve. It benefits 13 weeks and implementing a spe• ket. Shortening the duration of frictional also must maintain a monitoring and evalua cial program of up to 26 weeks for workers unemployment is an obvious contribution tion role to assure that national objectives who qualify for compensation on the basis to reducing overall unemployment. Vigorous specified in the C'omprehensive Employment of employment and earnings but who are not steps are, therefore, needed to increase the and Training Act are pursued, and to provide in covered industries, are necessary and effectiveness of the public employment serv technical assistance without "hovering" over timely steps, but not enough. Except for ice and to fully utilize its resources under state and local decisionmakers. those for whom gainful employment is not CETA. The Nixon administration left omce with a reasonable alternative, income support is Despite notable progress in the last decade another important, but unfinished, accom not desirable. To idle willing hands is no way race, sex, and age discrimination still per~ to fight an inflation originating in shortages. plishment to its credit-the introduction of sis~. Differences in skill, experience, produc a plan to reform the welfare system. Earn Public service employment was sufficiently tivity, and labor market mob11ity account ings from employment is the preferred successful under the Emergency Employment for only a portion of the high average un source of income in the American, as in any Act of 1971 to win the approval of liberals employment (and lower earnings) among and conservatives alike. It makes sense be minority groups and women. The immediate other society, but a basic floor of economic cause it maintains productive activity and security should be a social right of all citi goa~ should be to eliminate market discrimi zens in an amuent society. A guaranteed output. It is less costly than often supposed na.tlOn to assure that persons with equal minimum income accompanied by work in because its expenditures are partly offset by sk1lls and abilities are treated equally. In the centives and income supplements for the savings in income maintenance programs. longer run, differences in training, education, working poor appears to be a desirable way Creation of public service jobs is less infla and work experience must, then, be attacked. to accomplish the goal. While the Nixon tionary than the customary "trickle down" A more vigorous antidiscrimination policy administration faltered in its commitment approach of creating employment by gener and enforcement is needed both in the short before Congress might have acted, important atmg aggregate demand for goods and serv and long-run to achieve these aims. groundwork was laid in formulation of the ices. It requires minimal capital investment Finally, continued research is needed into concepts and education of the public. and rations its jobs directly to the unem the functioning of labor markets. The cur In other manpower policy areas, the Nixon ployed. While public employment measures rent economic crisis has suggested how much could become a disguise for unproductive in• there is still to be learned. Research is a administration's record was mixed. It op come mai:htenance and could replace other posed the introduction of a public employ public budgetary commitments with no real long-range investment, not to be cut back ment program as a countercyclical device and increase in jobs, these abuses can be min in short-run emergencies. The limited funds as an initial small step toward guarantee invested in labor market research have been ing employment. However, once Congress imized by prudent public administration. The major issue is not whether to introduce carefully husbanded and for the most part insisted, the executive branch followed wisely spent. Advancing the frontiers of through with vigor and determination in public employment programs, but on what its administration of the program. scale. The Task Force has previously rec knowledge and experimenting with new ap On the negative side, the administration ommended a public service employment pro proaches are high risk activities where fail was responsible for cutting back badly gram providing work for one quarter of the ures are more likely than successes. Yet, needed budgetary support for manpower unemployed above 4.5 percent, with an auto there is no other road to progress. Continued services as well as community antipoverty matic "trigger" releasing funds for use in research into improving productivity and agencies which had gained valuable experi- depressed local labor markets as national labor market efficiency is an indirect but not October 17, 1974 EXTENSIONS OF REMARKS 36139 unimportant weapon against both unem portion of the population, however, the Phyllis Wallace, Massachusetts Institute ployment and inflation. choice is not work or welfare, but work and of Technology. THE LONG-TERM CHALLENGES welfare. The need is to provide income sup Robert Taggart, Executive Director. In addition to pressing immediate needs, plements to the working poor with a decent longer-range challenges also cannot be ig support for all at a level which is com nored. The American people, guided by (or patible with an afl.luent society. guiding) every administration since World A MANPOWER AGENDA HUMANITIES ENDOWMENT'S War II, have made Herculean efforts to up In summary, this is no time to slacken "COURSES BY NEWSPAPER" grade the quality of the nation's human re human resource development efforts nor to sources. That expenditures on education visit the costs of anti-lnfl.ation efforts upon have risen from $6 billion to over $100 billion those who have been less the villains and a year is only one gross indicator of those more the victims than others. Despite the HON. JOHN BRADEMAS efforts. With a ve..st deficit in human resource occasional stumblings of trial and error OF INDIANA development stemming from a severe depres and fl.uct"Uations in commitment, the man IN THE HOUSE OF REPRESENTATIVES sion and a major war, followed by a rapidly power experience overall has been one of changing technology, the corrective action persistent progress. That progress should Thursday, October 17, 1974 was timely and positive. As a result, no per continue with: sistent skill shortages remained even during 1. Augmentation of decentralized planning Mr. BRADEMAS. Mr. Speaker, as the the tight labor markets in the past decade. and administrative capabilities under federal chairman of the Select Education Sub In the 1970s clrcumstances have changed, policy guidance. committee, which has jurisdiction over and imbalances in the supply of and demand 2. Compassionate efforts to promote self the National Foundation on the Arts and for skilled and highly-educated manpowe!l support methods of income maintenance, the Humanities Act, I want to bring to are becoming a more and more frequent combining, where necessary, work with wel the attention of my colleagues the occurrence. In a society where freedom of oc fare, rather than treating the two as sep Courses by Newspaper program sup cupational choice is an unchallenged right, arate systems. ported by the National Endowment for planning and information are needed to 3. Priority of improving the employability guide human resource investments in order and employment opportunities for those fac the Humanities. to maintain a balance between supply and ing disadvantages in their competition for The programs makes available, demand and to avoid wasteful surpluses or jobs. through 200 newspapers, weekly 1,500- shortages. 4. Vigorous antidiscrimination enforce word lectures by a faculty of nationally Accompanying that investment in human ment. and internationally known scholars. It resource development was the challenge of 5. Long-range investment in human re is estimated that the newspapers reach absorbing into the work force the swelllng source development including early and re 20 million Americans, and that 15 mil cohort of youths, the product of the high current career education for t~.dults as well as postwar birth rates. That group has now youths. lion of them have read one or more of passed through the years of formal educa 6. Expansion of public service employment the lectures. tion. Continual improvements in the qual as both a countercyclical tool to protect the In addition, Mr. Speaker, 180 colleges ity of preparation given youth for produc unemployed and as a transitional process for and universities last year ofi'ered credit tive lives will be needed, but the quantifiable the disadvantaged. for successfully passing a test based on challenge is a declining one. However, hu 7. Continued emphasis on training andre the full 18-week lectures, and almost man resource development needs do not end training during the recession to take advan tage of immediate lower costs and to spark 5,000 students enrolled for credit. with a high school or college diploma. M1·. Speaker, the Courses by News Whether because of changing technology productivity during recovery. and social priorities or due to the changing 8. Search for other opportunties to in paper program was conceived of last occupational preferences of maturing work crease productivity and reduce labor costs. year as a pilot program involving five ers, a need for institutional facilities to 9. Research into labor market behavi-or and newspapers and five colleges and uni provide recurrent education-upgrading and institutions. versities. mid-career changes-will be a continuing 10. Most of all, recognition that the cur But the response has been extraor challenge in which the efforts of individuals, rent inflation did not start in the labor dinary, leading to the involvement of public institutions, and employing organi market and cannot be cured there. 180 institutions of higher education and zations must join. Opening second or sub These general principles, 1mplemented pro sequent careers and other productive out gramatically based on a dozen years of ex 200 newspapers such as the Decatur lets for the persisting energies of the longer perience with manpower policy, can, we are Ala., Daily; the Honolulu Advertiser; th~ lived population and assuring that educa convinced, contribute both to short-run Elkhart, Ind., Truth, in my own con tionally disadvantaged people are not left problem solution and long-run national gressional district; the Boston Globe; out, are parts of that same challenge. progress. They can be the basis of wise man the McGuire, N.J., Airtides and others. In the long run., increased productivity is power policy for a new administration. Because this important program, sup the major route to raising living standards. The National Manpower Policy Task Force is a private nonprofit organization of aca ported by the National Endowment for Much has been learned by employers about the Humanities, will be of interest to motivating employees, but Ut~le oi lt has demic manpower experts. It is devoted to been applied in public policy. The new career the promotion of research in manpower pol~ every Member of Congress. I insert, at education emphasis relating schooling to ley. This statement represents the combined this point in the RECORD, a description work can be expanded for adults as well as judgment of the Task Force members. De of the Courses by Newspaper program children and youth. Areas of particularly spite divergence of opinion on details, the from the September 30 Chronicle of slow productivity growth can also be iden members agreed to a unanimous statement Higher Education: without indicating individual exceptions. tified and attacked. "COURSES BY NEWSPAPER" STARTS ITS SECOND TASK FORCE MEMBERSHIP As another ever-present long-range chal YEAR lenge, we always have the poor with tis. Sar A. Levitan, Chairman, The George Manpower programs have helped many in Washington University. (By Beverly T. Watkins) dividuals to surmount the handicaps they Curtis C. Aller, San Francisco State Uni Readers of some 200 newspapers will have have faced in job market competition, but versity. an· opportunity this week to brush up on someone is always at the end of the line. Rashi Fein, Harvard University. their American history-for college credit if The task of helping them is a never-ending, Frederick H. Harbison, Princeton Univer they wish-as "Courses by :r;ewspaper" begins but an essential one. Current efforts to im sity. its second year. prove the efficacy of the remedial manpower Myron L. Joseph, Carnegie-Mellon Univer Part of a projected trilogy keyed to the system which evolved over the last decade sity. forthcoming Ametican Bicentennial, the should not obscure its fundamental mis Charles C. Killingsworth, Michigan State 1974-75 course, "In Search of th.>· American sion-to provide a helping hand to those University. Dream," will offer 18 "lectures'' through both who are failing in or being failed by the Juanita M. Kreps, Duke University. dally and weekly newspapers nationwide. labor market. Garth L. Mangum, The University of Utah. The first course, the 20-week "America and ·Finally, there remains the challenge to Ray Marshall, University of Texas. the Future of Man," had appeared in 273 design a system that would provide ade S. M. Miller, Boston University. newspapers by the time the 1973-74 academic Charles A. Myers, Massachusetts Institute year ended. quately for those who cannot support them of Technology. Some 126 institutions, including two-year selves, but without destroying incentives for R. Thayne Robson, The University of Utah. and four-year colleges, universities, and col the able-bodied to contribute to their own Philip Rutledge, Howard University. lege extension programs. wlll offer academic maintenance. Work and welfare have typi Gerald G. Somers, :University of Wisconsin. credit for the second course. Almost 5,000 cally been portrayed as mutually exclusive Lloyd mman, University of California, students enrolled last year Bit the 180 Institu alternatives. For an increasingly large pro- Berkeley. tions that offered credit. 36140 EXTENSIONS OF REMARKS October 17, 1974
SUPPLEMENTARY LEARNING KIT ica. and the Future of Man," which was sec The same apparently cannot be said Courses by Newspaper, developed and co ond in popularity only to "Dear Abby." for the U.S. taxpayers since the Frank ordinated by the extension division of the Although no figures are available on the lin National fiasco has reportedly now University of California. at San Diego, ofi'ers number of students who actually received cost $100 million and is expected to even weekly 1,500-word lectures by a. "faculty" of credit for the first course, 1,769 took a. dUll cult 30-item multiple-choice final examina go higher. nationally known scholars to newspaper stu In May of this year the Federal Re dents numbering 1n the millions. If they wish, tion. Some traveled many miles to complete readers may purchase a supplementary it. serve Banking system, in a futile attempt learning kit that includes an extensive "We had one student who went from Jack to bail out Franklin National reportedly reader, a. study guide, and self-tests. son Hole (Wyo.) to Salt Lake City and an agreed to loan it up to $1.1 billion at its " 'In Search of the American Dream,' will other from Nova. Scotia to the University of "discount" window. focus on the persistence ... of the utopian Massachusetts," said Mr. Lewis. In the meantime as the national debt spirit that animated this country's begin The overwhelming response to Courses by grows-now estimated at public and pri ning,'' according to Robert C. Elliott, pro Newspaper has caused the project some trou ble. vate to be $2¥2 trillion-our inflation in fessor of literature at the university and creases and other American banking in academic coordinator of the program. Course "We definitely underestimated the prob content will span American history from lems involved in matching newspapers and terests are overextended, the American "Columbus Discovers Utopia," the first lec colleges," said JaneL. Scheiber, editorial di people are told that we must continue ture, through "Crisis and Continuity: the rector and assistant director for the project. our bankrupt foreign policies of sharing 20th century" and "Now and History," the Under the plan, the first newspaper in any our food, energy and credit with all the concluding le~ures. city to apply for the course receives the ex world. The authors, in addition, to Mr. Elliott, clusive right to it for that area. This ar Recently the East German Communist rangement has caused some friction within who wrote the introdu~lon and first lecture, party leaders in gaining diplomatic rec include Winthrop Jordan, University of Call the Copley News Service, which distributes ognition from our Government, advised forma., Berkeley; Michael Kammen, Cornell the lectures, according to Ms. Scheiber. University; William Goetzmann, University The large institutional response meant that they are looking forward to most of Texas; Jay Martin, University of Califor that "we faced four to five times as many favored nation trading status with our nia. at Irvine; and Robert Penn Warren, Yale colleges as we could accommodate," said Ms. country. This means not only the ad University. Scheiber. "We tried to go with the land grant vantage of a devalued U.S. dollar, but also The project to distribute college-level ma institutions where we could," she said, "but on subsidized credit terms cheaper than terial through the country's most widely we sometimes had trouble recruiting the any American can obtain. read medium almost overwhelmed its de right college for the newspaper." Today we are advised that Treasury velopers with its success last year, according "The biggest mistake,'' acording to Mr. Lewis, was limiting participation to four-year Secretary Simon in Moscow is proposing to Caleb A. Lewis, director of media. programs most favored nation trading status and at the University of California at San Diego's institutions. "We wanted to keep the course extension division and project director for at an upper-division-equivalent level to credits with the Soviets. the newspaper courses. make it consistent across the country. If Soon there must be a day of reckoning An evaluation of the 1973-74 program by someone wanted to transfer units from the with -~he share-the-wealth policies of the a researcher at California. State University, University of Tennessee to Oregon, they'd one-worlders and the domestic crisis of San Diego, revealed that more than 75 per be talking about the same thing," he said. the American people being understood by cent of the potential readers had read some But intense pressure from junior and com all. The Franklin National Bank incident of the lectures. munity colleges, plus the fact that four-year should remind us that the foreigners are For all its success, however, Courses by colleges offered the course for lower-division, not only rapidly getting control of our Newspaper has not been without problems. upper-division, and eve·1 graduate credit And, although it has benefited from its ex and some senior high schools picked it up food and money, but now they are even perience, the project faces a dilemma this for honors progr:..ms--prompted Mr. Lewis taking over our banking institutions. year that may not be easily resolved. to reverse that decision. This year "the jun I insert the related news clippings Courses by Newspaper, financed by the ior colleges are as welcome as anyone," he following my remarks: National Endowment for the Humanities said. [From the Washington Post, Oct. 17, 19741 Ironically, a new problem unique to the with additional support last year from the BANKRUPTCY PETITION FILED BY FRANKLIN Exxon Education Foundation, was developed medium now faces Courses by Newspaper. primarily for those who don't participate in "The newsprint shortage has caused a NEw YoRK, October 16.-Franklin New York higher education, according to Mr. Lewis. downswing in the number of papers partici Corp., the holding company that used to "We wanted to reach those who aren't in pating this year," said Mr. Lewis, who esti control Franklin National Bank, filed for volved because education is unavailable; mated a drop of about 75 and a proportional bankruptcy in Federal District Court here those who are afraid of education because of drop in readers. today. some past experience or because they feel it However, if Courses by Newspaper is The holding company's chief asset was the funded for its third year as originally stock of the bank which was declared in is all beyond them because [they feel] they solvent on Oct. 8 by federal banking author are so stupid,'' he said. planned, Mr. Lewis expects "participation to double in all areas." ities. At that time, most of the bank's assets PROJECT EXPANDS GREATLY "Newspapers are evaluating the course were sold to European-American Bank & What was conceived as a modest undertak now," he said. "Some are taking full-column Trust Co., which is owned by six large Euro ing to expose the unexposed to higher educa ads asking their readers if they want it again pean banking concerns. tion exploded into a project that also in They're surprised at the response-not th~ An attorney speaking for the holding com volved people with formal higher education size of it but the intensity. Those who want pany said the papers were filed this morning but no degree, degree-holders, senior-high it, want it badly," he said. at 10. He said it was "a voluntary petition in school students, and even some university bankruptcy." graduate students. Officials of Manufacturers Hanover Trust The pilot study planned for five selected Co., which is known to have loaned Franklin newspapers and five matching colleges ex New York Corp. $30 million earlier this year panded into a project that included such FOREIGNERS TAKE OVER U.S. BANK before Franklin National Bank's troubles diverse papers as the Decatur (Ala.) Daily, were made public, couldn't be reached for Denver Post, Honolulu Advertiser, Elkhart, comment on the latest Franklin development. (Ind.) Truth, Boston Globe, McGuh·e (N.J.) HON. JOHN R. RARICK (Another large creditor listed in the papers Airtides, Kansas City Star, Tullahoma OF LOUISIANA is Morgan Guaranty Trust Co., acting for (Tenn.) News, and the Seattle Post-Intelli some of its customers.) gence?', plus nearby colleges. IN THE HOUSE OF REPRESENTATIVES At the end of the year, 4,974 people had Thursday, October 17, 1974 enrolled for credit at participating colleges (From the Wall Street Journal, May 23, 1974] and an additional 6,630 had purchased the Mr. RARICK. Mr. Speaker, the Frank FED'S LENDING TO FRANKLIN NATIONAL BANK learning kit at $10. lin National Bank of New York upon Is ABOUT $1.1 BILLION, A HIGII FOR SUCH Following a telephone survey of news being declared bankrupt on October 8, AID paper subscribers in five cities-San Diego, has been taken over by six European (By Edward P. Foldessy) Denver, Shreveport, La., and Huron and banking concerns and is operating as the NEw YoRK.-Franklin National Bank's bor Chamberlain, S.D.-Oscar J. Kaplan, director European-American Bank & Trust Co. rowings from the Federal Reserve System of the Center for Survey Research at San have reached about $1.1 billion. Diego State, estimated that of the potential Apparently, the transfer was so smoothly Neither thhe bank, a subsidiary of Frank 20 million readers nationwide, 15 million had engineered by the Federal Reserve and lin New York Corp., nor the Fed would con read one or more of the lectures. The poll banking interests that the bank was open firm the figure, a record in terms of Fed aid showed that 35 per cent of Chamberlain the next morning with the same employ to a troubled bank. In the middle of last Register readers and 27 per cent of Huron ees and the depositors did not lose a week, the level of Franklin's Fed borrowings Daily Plainsman subscribers had read "Amer· permy. was around $750 million. October 17, 1974 EXTENSIONS OF REMARKS 36141 The $1.1 billion figure, obtained from usu (From the New York Times, May 13, 1974] From 1934 until last year, the FDIC paid ally reliable sources, represents about a quar RESERVE COMMENTS ON BANK CASE out $903 million to 502 banks that failed (or . ter of the bank's. deposits and borrowings WASHINGTON .-The following iS the text Of were forced into shotgun mergers). But that from all sources. money was not lost. In retur~ for its It was learned yesterday that officials of a statement made today in response to in largesse, the FDIC acquires some or all of the Federal Reserve' Bank of New York have quiries about the Franklin National Bank by the assets of the failed bank. This year, for been asking other large New York banks to George W. Mitchell, vice chairman of the example, it has become the lucky owner not resume "normal banking relationships" with board of Governors of the Federal Reserve only of stocks and bonds but apartment Franklin National to the extent that they System: houses, cattle ranches, hotels and even a "Inquiries have been raised in recent days fishing fleet. ca~he reserve bank has been noting that about the position o! Franklin National over time, the FDIC sells these assets and Franklin is solvent according to the U.S. Bank. The bank has reported a poor earnings even may make a profit on them. Since 1934, Comptroller of the Currency and that the record recently, and the management of the it has recovered $779 million of the $903 Fed itself has been lending funds to the controlling holding company announced Fri million it dispensed. That's a total loss of •. troubled bank. day that it would recommend that the regu only $124 million over 40 years. Its average On May 10, Franklin New York announced lar dividend payment on both comomn and annual profit on investments (mostly U.S. plans to skip dividends on its common and preferred stock be passed. The board is fa government securities, once the ranches and preferred stocks because of poor earnings. miliar with this situation and looked care fishing :fleets are sold) comes to $400 million. Later it disclosed a large loss in its foreign fully at the bank's condition in connection The FDIC could save other Franklin Na exchange department that it said was caused with the proposed acquisition of Talcott Na tionals out of profits alone. by unauthorized dealings by one of its tional Corporation by the bank's holding Whenever a bank has failed, the FDIC has traders. company. Its decision earlier this month was paid off within days, on all accounts up to Franklin currently is adjusting its pre to turn down this proposal in part because the ins~red limit. Subsequently, the bank's viously reported first quarter earnings, partly it felt that management's energy should be assets have been liquidated in such a way to reflect the trading losses. But according to devoted to the remedial program for the that 93 per cent of the uninsured deposits some sources, the restatement may go well bank, which is now underway. also were paid back. beyond the foreign exchange losses and show "There is, of course, the possibility that The books of the FSLIC tell a similar a sharp net loss for the period. The restate with many rumors about the bank-Frank story. In 40 years, some 103 savings and ment is expected to be made public either lin National may experience some unusual loans have failed or needed financial aid, today or tomorrow. liquidity pressures in the period ahead. As for a total booked loss so far of $167 million. Franklin originally reported first quarter with all member banks, the Federal Reserve Reserves now stand at $6.6 billion. Its record operating net of 582,000, or two cents a share, System stands prepared to advance funds for helping depositors coulq.n•t be much bet down 83% from $3.6 million, or 68 cents a to this bank as needed, within the limits ter; the FSLIC says that no one has ever lost share, a year earlier. At the time, it said in of the collateral that can be supplied. Work a nickel in an insured S & L, even on ac come from foreign exchange trading in the ing with Franklin National, the Federal Re counts larger than $20,000. quarter rose $2.3 million from the year serve Bank of New York has determined that A bill that went to the President for earlier period. there is a large amount of acceptable col signature Oct. 10 would raise the amount Franklin has had to borrow from the Fed lateral available to support advances to the of insured savings from $20,000 to $40,000. because of its difficulties in obtaining funds bank from the Federal Reserve Discount That means that, if your thrift institution from normal channels. But the loans from window if they are needed. got into trouble, up to $40,000 in each ac the Fed have had a beneficial side effect: As a matter of general policy, the Federal count would be paid off in a matter of days. batgain basement prices for the borrowed Reserve makes credit extensions to member If you had an individual account, a joint money. banks, upon acceptable collateral, so long as account with a spouse, a trust account and In borrowing from the Fed, Franklin pays the borrowing member bank is solvent. We a joint account with a parent you'd be en an 8 % annual rate of interest (the Federal are assured by the Comptroller of the Cur titled to up to $40,000 on ~ach of them. Reserve's discount rate) on loans backed by rency that Franklin National Bank is a sol Eventually, you'd also get back most of your vent institution. el,igible and acceptable collateral, such ~s savings over $40,000. But a better idea is to Chairman Burns, who is in Europe, has U.S. governme~t se~urities. An 8% % rate 1s keep excess savings in a different institu paid on advances backed by other types of been kept informed of developments. Since tion. Then you're insured in both places. collateral, including long-term municipal this matter does not require his personal But check to see that your savings are securities, mortgages and long-term corporate attention, he has no intention of changing indeed insured by a state or federal agency. loans. · his travel plans which call for his return to A few states still permit banks and S & Ls By contrast, the cost of funds in the open Washingt on later this week. to operate without government backing. money market recently has hovered in the With financial conditions so uncertain 11% to ·12% range. Thus, on $1.1 billion, (From the Washington Post, Oct. 17, 1974] there's no sense taking that risk. Franklin stands to save from $500,000 to How U.S. INSURANCE SETUP SAFEGUARDS $750,000 a week in interest costs over wh~t YoUR SAVINGS (From the Washington Post, Oot. 17, 1974] it would bave to pay in the open market 1f (By J ane Bryant Quinn) SIMON BACK FROM: TALKS IN U.S.S.R. it were able to tap that source. NEw YoRK.-Surprising numbers of other President Ford will decide on whether to The Fed hasn't publicly specified the wise prudent people have taken to storing allow a suspended multimillion-dollar Soviet amount of funds it stands ready to inject cash in safe deposit boxes. They're willlng grain deal to go ahead after being briefed into Franklin or the amount of collateral to forgo the interest that cash might earn by Treasury Secretary William E. Simon, who Frankltn has available for such purposes. because they think that savings accounts has just returned from Moscow. On May 12 the Fed said the bank had a "large aren't safe. Simon spoke briefly to reporters on his amount of acceptable collateral available to Yet, in the largest U.S. banking failure ret urn from a four-day visit for economic support advances." At the time the Federal to date-the collapse of New York City's Reserve said that it could make loans to any talks with Soviet officials. Franklin National Bank-depositors didn't He said he had full and frank discussions solvent bank and that the U.S. Comptroller lose a penny. The government engineered an of the Currency had found Franklin to be wit h the Soviet leaders, including the agree overnight sale of the bank's assets to the ment reached by two grain companies to solvent. , According to sources, the Federal Reserve s European-American Bank, which opened for sell some 3.4 million tpns of corn and wheat request that bankers resume normal activi business the next morning with the same to the Soviet Union. ties where possible with Franklin hasn't re doorkeepers and the same tellers. President Ford blocked the $500 million ceived much response. At least two banks So far, the ~ranklin National disaster has transaction earlier this month, principally have turned down the request almost ou t of cost the Federal Deposit Insurance Corp. because fears of domestic shortages follow hand, they said. $100 milllon. That sum will go much higher, ing a particularly bad summer had pushed Originally, reports circulated that t he Fed but the FDIC now has reserves of $5.8 bil up prices to a point where they threatened to was waging an arm-twistin g campaign to lion, plus another $3 billion line of Treasury worsen inflation. have banks resume so-called federal funds credit. Simon said he would discuss the matter trading with Franklin. Federal funds are un It's possible that, in the year ahead, other with Mr. Ford. But, he added, "The President committed reserves banks lend each other. poorly managed banks will buckle under the must make the decision." But sources within the Fed said the reserve's weight of bad loans. But the government suggestion to bankers was broader; involving can handle it. Here's the background on the [From the Washington Post, Oct. 17, 1974] all t ypes of interba nk relationships. insurance system that protects your savings: SIMON ENDS TALKS IN MOSCOW ON TRADE Fed sources stated that the reserve bank The FDIC a.nd its sister insurer, the Federal Moscow, October 16.-Secretary of the in each case reminded bankers of their Savings and Loan Insurance Corp., were Treasury· William E. Simon said today the legal responsibilities to their own share born in the Depression. Their task was to U.S. government shares Soviet Communist holders and depositors, and, in effect, cau rebu ild America 's confidence in the bank Party leader Leonid Brezhnev's desire to re tioned them to enter only those kinds of ing system by gua ranteeing every depositor solve trade problems between the two coun transactions that would be considered pru that the first $2,500 of his savings would be tries. dent for the benefit of their banks' depositors as safe as the U.S. Treasury. Since then, the Simon spoke with newsmen at the airport and shareholders. insured amount has risen to $20,000. before he left for Washington after two days 36142 ·EXTENSIONS OF REMARKS October 17, 1974 of talks wlth Soviet oftlclals, including tossing down slugs of vodka. They are play admitted. "We sit around in our apartment- Brezhnev. ing cards-loudly-and telllng war stories- . me, my husband, my parents, maybe an aunt At a banquet ending the talks last night, more loudly still. A man, the husband of one and uncle-and everybody is looking at Kolya the Soviet party chief made a hard-line of them, enters wearing an apron, carrying a (age 8]. 'What's new with you, Kolya?' 'How's speech in whlch he said the Soviet Union's tray full of hot cups of tea. life, Kolya?' 'What's happening in school, domestic policies were irrelevant to increas With nervous, jerky gestures he tries to Kolya?'-That's all you hear for hours at a ing U .a.-Soviet trade. clear empty vodka bottles off the table and time." Slmon told newsmen he did not find the serve the tea. The women start complaining At the opposite extreme is the story told speech surprising. "We share his desire to get to him about the food, the dirty table. He in a woman's letter to the radio program the resolution on MFN and trade," he said. shrugs his shoulders. Finally the guests de "Man and Society," perhaps the nearest So He was referring to congressional efforts to cide it is time to go home. The husband viet equivalent to a personal advice column. deny the Soviet Union "m08t favored nation" fetches their coats and boots. "My life has been a nightmare," the woman trading status and credits until the Kremlin When her pals are gone the man's wife wrote from Maga.dan, a remote corner of eases emigration restrictions which are ap throws her arms around hlm drunkenly. Eastern Siberia not far from Alaska. "I got plied mainly to SoViet Jews. "Don't touch mel" he shouts. She responds married in 1946, and hoped to raise a happy indignantly. "Whatsa matter, doncha think family.•.. " Her first son was born in 1947 [From the Washington Star-News, OCt. 14, I can drink? I drink on my own money, you and-"perhaps to celebrate this event," her 1974] know ..." husband took a drink of vodka that was his Speaking of money, the husband com downfall. A lifetime of drinking followed. U.S. DEBT OF $2.5 TRILLION HELD ECONOMY "Our family survived extreme material diffi THREAT plains, she doesn't give him enoug!h house keeping money to do the shopping. She culties, since more than half our income was NEW YoaK.-The total debt of every seg brushes him aside . . . spent on vodka." ment of American society has swelled to $2.5 Difficult to imagine? For a Soviet audience Finally, after 21 years of marriage, she and trUlion and poses a serious threa,t to the na her three children decided to throw him out tion's economy in this inflationary period, watching a group of comedians acting it out, of the house. To get away from him com· Business Week magazine says in its latest this scene 1s hysterically implausible. The pletely they went to Magadan. Papa stayed edition. theater rocks with laughter. The audience in the industrial city where they'd lived, still "'Never has the debt economy seemed more obviously loves the mirror image of Soviet drinking. He remarried, then divorced, then VUlnerable, with a distressing number of bor family life that the comedians crea,te. moved in with another woman. Several years Reality, as one of the comedians explains rowers and lenders in precarious shape," the ago he had a stroke, which lef·t hlm para magazine said. in an introduction to the skit, is different: lyzed. Learning of this, mother and children Since the close of World War II, the nation Papa comes home from work and reads the decided to invite hlm back. has borrowed an average net of $200 million paper. Mama comes home from work and goes "He getting better now," the woman wrote. a day, the magazine said. shopping, makes supper, does the laundry "He's back at work, and most important, he Now the debt ts so huge that it would take and ironing, and helps the chlldren with isn't drinking any spirits. But life has already more than one-third the gross nation&l prod· their homework. Sometimes, papa helps out passed us by. We can't repeat our youth .•."' uct of Japan, the world's second-largest capi· after dinner by turning on the television set. Alcoholism is a perpetual epidemic in this talist economy, just to pay this year's interest In Russia, "A good wife doesn't let her hus society. There are no published statistics on on the American debt, the magazine said. band help her keep house. She keeps it clean the consumption of vodka or the prevalence Of the total debt, $1 trillion Ls in corpo hersel·f, sews and weaves for her husband of alcoholt.sm, but evidence of it can be seen rate debt, $600 billion ln mortgage debt, $500 and children. A good wife is always merry on the str&elts of any v111age or town. Perhaps bllllon in u.s. government debt, $200 billlon she always smUes and makes her husband's 40 per cent of all divorcea are caused by in state and local government debt, and $200 life easy and pleasant. A g100d wife doesn't drunkenness, 8/CCOrding to sociologists' re billlon in consumer debt. interfere in her husband's business talks, and search. Business Week said the debt "is an omi in generalis mostly silent." Vodka and wme play an important role in nously heavy burden with the world as it is Well, those were the rules in the 16th cen Soviet family life. Wh·at does an ord·lnary today-ravaged by ln:flation, threatened with tury, when this prescription for a good wife worker's family do to celebmte a birthday economic depression, torn apart by the mas was written in the "domostroi" or "rules of or a big event? "Buy a bottle of vodka," is sive redistribution of wealth that has ac the household" that were then accepted by the most common reply, An enormous Rus companied the soaring price of oil." church and state. Though contemporary Rus sian woman who works as a janitor confided The magazine said the consensus among sian society has little in common with the that she would need 20 (half pint] bottles economists was that the economy stUl was 15th century, the ln:fluence of the domostrol for the four-day May Day weekend. not overborrowed but the breaking point was is still evident. Family celebrations are likely to happen at drawing near. Yet mama's role ha.s grown enormously, home. Mll11ons of Soviets--very likely the vast "'In the end, the world may very well escape although she continues to act a.s a servant majority-never go to a restaurant. (Restau disaster," Business Week wrote, "'but there of the rest of the family. In the 16th century, rants are neither good nor oommon. In Mos 18 no way it can escape change. The very as papa was the lord of the manor, but today he cow, the best-served clty in the country, there sumptions on which the United States built is much less imposing, and much less influ are 127 of them-or one for every 55,000 in· its debt economy, for instance, must be re ential. A woman who allows her husband to habitants.) The Russian "talble" for a big thought. Not in the foreseeable future will loaf around the apartment while she does all occasion 1s another of the things Russians any na.tion pile up debt a.s rapidly as this the housework is also-in many ifammes love most 8ibout their country. nation." the pUlar of family life and the chief decision Besides vodka, lt wUl be plied h1gh with The magazine said corporations had tripled maker. a dozen different "zakuski" (hors d'oeuvres)e their debt in the past 15 years, and consumer The Russian family is one of the Institu from canned sprats in oil to el8iborate Cau- debt ha.d soa.red 50 percent in the past three tions that Russians love most about their casian chicken in walnut sauce. The com. years. country. In its ideal form. the family is a pany can easily spend an hour or two ovet In a separate article, the magazine says fortress of love and mutual protection whose these washing them down with the toasts tha.t a survey of 550 major nonfinancial cor wa.lls shield all within from an uncertain that inevitably accompany the consumption porations found that 23 percent or 114 of outside world. Though reality may seldom of alcohol. the companies as of last June "had &massed live up to these grand intentions, sentimental A soup may follow the zakuskl, and a piece more total debt , , . than they carried in Russians (and that means virtually all of of meat, or perhaps a duck, wlll follow the equity." them) often overlook the family's failures soup. Mama and grandma serve and clear and romanticize its accomplishments. the dishes-none of which match each Modern Soviet society does not challenge other-and yell at the young people to eat traditional family relationships the way the more of everything. Three generations crowd FAMILY LIFE IN RUSSIA fast-paced societies of the industralized West around the table, many sitting on stools, be .. do. There is no sign of the hedonistic lifestyle cause there are never enough chairs, and here: No amusement industry to fill leisure all crowded, be·cause the table is always too HON. LEE H. HAMILTON time, no cult of youth and beauty, no con small. The men tell Jokes and give toasts, sumer industry for children or cemeteries for OF INDIANA the girls gossip and tease. pets. The Soviet population is relatively There is no cocktail hour, no coffee in the IN THE HOUSE OF REPRESENTATIVES stable and immobile. drawing room a.fterw.a,rd (there's no dra.wlng Thursday, October 17, 1974 Parents have time for children, and chil room), and somehow, it is usually more fun dren for parents. Soviet sociologists claim than any dinner party in Washington or Mr. HAMILTON. Mr. Speaker, under that comparative surveys of Russian and London. the leave to extend my remarks in the Weste1·n families show that a mother or If Soviet society lacks the distra.ctions from RECORD, I include the following: father here is likely to devote more of her or family life typical of Western countries, it SoVIET LIFE ORIENTED TOWARD FAMILY his week to the children than does a Western has substitute distractions of its own. The parent. There are fewer distractions, at least most important of these is the requirement (By Robert G. Kaiser) in the evening and on weekends, and per· that able-bodied women, particularly in the (Washington Post Foreign Service) haps-as many Russians would insist-a city, hold a full-time job. Moscow.-Imagdne a Soviet apartment: greater desire to share the child's life. For some traditionalists, this is an out Four women sit around a table, periodically "Sometimes it's silly," one mother recently rage. Alexander I. Solzhenitsyn, the author, October 17, 1974 EXTENSIONS OF REMARKS 36143 stated the conservative view of women at ciological studies, but with01At apparent can substitute for the official peri:nlssion to work in his recently publ,ished open letter effect. go abroad. to the Soviet leaders: (There aren't spaces in these resorts for "For many people," a Moscow film director "How can one fa.il to feel shame and com even half the population, so many Soviet recently argued, l•money doesn't give satis passion at the sight of our women carrying citizens do take their vacations with their faction-it creates difficulties. Spending heavy burrows of stones for paving the families-even if they'd rather not.) money is difficult. street . . . ? When we contempla-te such The question remains what is Russian He explained: A family without preten- scenes, what more is there to say, what doubt family life really like? Hopefully some of the sions can quite easily maintain a simple ca.n there possibly be? Who would hesitate to answers have been included in these articles, life--a basic diet, ordinary clothes worn un abandon the financing of South American but a lot of them haven't. For an outsider til threadbare, vodka and television for en revolutionaries to free our women from this who has had only a limited opportunity to tertainment. Such families are common. bondage?" see fam1lies at home, many of the answers If a sudden jump in income induces that Old women doing hard physical labor are remain out of reach. family to try to live better, life becomes an embarrassment to many Soviet officials, For an American, it is instructive to refiec't complicated. Any attempt to improve the but the general notion that women should on typical aspects of middle-class American family's diet, for instance, would require a work is not. "The state's interest presupposes life which have no obvious equivalent here. large increase in the amount of time devoted only one decision," Elena Ivanova, a senior The list is long. to shopping. GoOd foods are the hardest to editor of the government newspaper Izvestia There is no family car in the Soviet Union, get, and they attract the longest lines in said recently. "The country needs hands for save in about one in 14 families in Moscow, the shops. work, including women's hands . . ." one in 70 for the country as a whole. There A determined effort to acquire the best To a large extent, women agree. In surveys, is no house, but rather a small apartment for food available in Moscow absorbs hours a half or more of the working women ques the luckiest families (in urban areas, about week beyond the time it would take to pur tioned regularly sa.y that they work for the half the total), and a room for the others. chase a diet of cheese, salami, bread, cab satisfaction and enjoyment, not just for the It is an officially stated goal of Soviet hous- bage and dairy products. money. Mrs. Ivanova points out that 60 per ing policy that every citizen should have his It is no easier to buy clothes. "Some peo cent of the college graduates in the country own room in his own apartment, but the goal pie," the movie director sa.id, "can never buy are women. "Do they want to sit at home is· just a distant hope now. a new suit-when they've got the money, and waste their qualifications?" she asked. The consumer goods that set the tone of there are no suits, and when there are suits, ''Of course not." Polls show that the higher American family life don't exist here. There they haven't got the money." Women inter a woman's level of edooation, the more she are no cold Cokes in the refrigerator (which ested in acquiring the best Yugoslav or Hun wants to work, regardless of the number of is tiny, if it exists), no cartons of milk garian fashions that are sometimes sold here children she has. brought home by the milkman, no garbage must devote hours to scouring the stores and The compromises available to an American disposals or food freezers. collecting inside information: (A tip from a middle-class woman who wants to raise a There is nothing here to compare with the salesgirl about when Polish sweaters are. go family and pursue a career are not available organized activities that occupy American ing on sale is worth a week of window-shop here. The Soviet economy is rigid, and Soviet children and become the focal points of so ping.) institutions live by a stern rule book. They many families' lives. Schools don't have or- The movie director thinks many people do not believe in women taking 10 years off, ganized athletic teams or--except in special are so put off by these difficulties that they or starting a career at 35, or working part cases--bands or orchestras. Dancing classes, would rather live their simple, subsistence time. Either you work, or you don't. pottery classes, church choirs--none exist. lives. But many Soviet citizens are also will The infiexibUity of the system puts a psy Nor do part-time jobs for young people. ing to go to whatever lengths are required chological strain on women. As one sociologist Life In the Soviet Union Is quieter, duller · to get more and better consumer goods. The observed recently, Soviet women may start and harder than in the West. It is also more other day a full colonel in the Red Army life on an equal footing with males, study, secure. No one need fear unemployment, in- was seen in Moscow waiting patiently in a begin work and marry on the basis of equal fiation or a financially catastrophic 111ness. . long line to buy a pair of Hungarian shoes. ity, but suddenly lose their equality with On the other hand, no one outside a very Money does talk on the Soviet black mar the arrival of a child, if not earlier. special elite can realistically hope to visit the kets which seem to b& extensive. In Russian families a child is the mother's Champs Elysees or the canals of Venice. The The term is misleading, for' many "black business, whether or not her job, her house state provides, but it also withholds. market" sales are simply unofficial exchanges work and shopping already fill her time. A In the unique environment that Soviet between friends at free market prices. For working woman with a child in this society society has created, family life goes on in six to eight rubles, for instance, qne can has an enormous amount of work-30 hours recognizable patterns. Kids come home from buy a one-ruble coupon valuable in special a week, according to one survey, on top of · school, have something to eat, go out to play. hard-currency shops that sell imported goods. a work week that averages 45 hours including Mothers prepare supper, fathers read the eve- The coupons are sold by people who have transportation to and from the job. ning paper, everybody watches television. worked abroad and earned hard currency, or If she _finds a place for her baby in a "We're living well," Russians like to tell each had it sent to them by relatives. nursery or kindergarten, a Soviet woman is other, "Life is good." This winter a pair of foreign-made ladies' still on call in case of illness. Day care cen Moscow.-Money-a remnant of capitalism boots on platform soles cost 150 rubles on the ters won't keep a sick baby, for fear others that is supposed to disappear when true com- black market. The prices for foreign-made will catch the illness, so the mother must muntsm is ac~eved-st111 exerts a powerful double-breasted sheepskin coats began at take care of her child at home. (She is given infiuence on daily life in the Soviet Union. 750 rubles. some paid leave from work for. this purpose.) Rubles and kopecks do not have the tyran- The official press periodically reveals that Work discipline is lax in most Soviet fac nical power that dollars and cents achieve 1n bribery is a phenomenon of modern Soviet tories and offices. Many women manage to American life, because Soviet society is not life. A man with a wife and daughter, theo do errands on office time. "A woman scientist as oriented toward consumption. It couldn't retically entitled to a two-room apartment in our institute is about one-third as produc be, since It doesn't prodnce a fraction as could offer the right local official 1,000 rubles tive as a man," a research chemist claimed. many consumer goods. and find himself with three rooms. A man Babysitters are virtually unheard of here. Here the issue is still subsistence, or some- . builqing a cottage in the country might get Either the baby goes out with the adults, thing a little better. The average soviet fam- the lumber he needs with a well-placed "tip" or mama stays home-unless there's a grand ily spends its entire income on necessities, in a state construction organization. mother who can be persuaded to look after with little left for frills. A five-ruble bottle Millions of Soviet citizens are prepared to the child. Soviet teenagers don't seem to have of champagne is a grand splurge for many. risk a little money in the hope of malting a the entrepreneurial spirit or the confidence On the other hand, extreme poverty is un- . lot. State sponsored lotteries are popular. So of their elders that would be necessary if usual. is the race track in Moscow, where betting is they were to copy the American babysitting To a foreigner who developed monetary allowed, though the payoffs are miserly. In system. refiexes in the capitalist world, the role of . many offices, t_he female employees, maintain Like most Soviet workers, a working money in Soviet society seems unique-not · a "blaclc cash box" to which each contributes woman is entitled to a month of paid holi for what it can do, but for what it cannot. five or ten rubles a month, then takes her day each year. In theory, this vacation could The acquisition of a lot of money does not chance in a winner-take-all drawing. be devoted entirely to the family, and often assure a Soviet family a radical improve- '· The average family lives on a modest it is. But it is common for Soviet parents to ment in its standard of living. Sudden wealth budget. According to published statistics, take separate holidays. This is officially would allow a better diet and more clothes, that family (composed of 3.5 people and 1.6 though coincidentally-encouraged. but mere money won't buy a big new apart- wage earners) has a monthly income of Places in trade union sanitoria, rest homes ment, a new car or a summer vacation in about 220 rubles. This is $285 at the ofilcial and resorts-the most sought-after holiday Yugoslavia. exchange rate, but the comparison 1s mis- spots in the Soviet Union-are allocated at . Those things are allocated, not sold. The leading. A small Soviet-made Fiat costs 5,500 work. Unless husband and wife work in the best apartments are assigned to Communist rubles. A pound of tomatoes in the farmers' same place, they cannot expect to get spaces Party officials and other influential citizens. market may cost four rubles in early spring. in the same resort at the same time. So they The opportunity to buy a new car is sim- According to the book "Family Needs and often go off alone at different times of the ilarly distributed as a privilege. Foreign travel Income," published here in 1967, a well-bal year. The effect of this on family life has been ls .the rarest--and thus the most coveted- anced, nutritional diet costs ·about 50 rubles repeatedly criticized in the press and in so- pnvilege of all, and no amount of money per person per month. Thus the typical fam- 36144 . EXTENSIONS OF REMARKS October 17, 1974 1ly woUld have to spend 175 rubles a month with a .:Solemn Mass of Thanksgiving in the as your •retarded' bishop. I a.m able to look on food, were it to eat that well. In fact. modified Gothic-style church at 3815 Russell back and say these have been good years." he most famutes seem to spend 40 to 60 per cent Road. said. "All through the years St. Rita's has . of their cash income on f~. and settle for Memories were ·evoked for the parishioners been a wonderful parish. I hope that it wm something less than the ideal diet. from the first moment of the entrance pro- continue to be even though. we are 'sepa Another 10 to 20 per cent goes for rent, gas cession, for along with their new Blsb.op of rated' brethren." he said, referring to the divi and electricity. (Rents are heavily subsidized Arlington, Bishop Thomas J. Welsh, who was sion of the diocese of Richmond. "Down in by the state.) making his first visit to their church, were 'the holy city,' we miss you," he concluded, That leaves the average family with, say, familiar faces which had come and gone over "but we pray that God will bless your new . 50 to 100 rubles a month for clothing, trans- · the years, their former bishop, two former bishop and wlll bless you." portation, entertainment, medicines (which pastors, former associates and two former Continuing the jocular tone of Bishop · are only part1a1ly paid for by the state med- deacons, now ordained; Sisters of St. Joseph Russell's remarks, Bishop Welsh told him, ical system) and incidentals. Thus a basic who had long taught in the parish school, "We're glad to have you back and hope you item like a 200-ruble television set will ab- and lectors. Later some lay members of the have no trouble at the border." To the peo sorb all the family's spending money for two community who had a long history in the ple of St. Rita's he said, "No amount of or three months. church, some as charter members of the little searching had found any substitute for a Wealthier people-members of the Soviet community who first met in a cobbler's shop parish. This celebration, this jubilee," he middle class-have family incomes of 350 to in 1913, and then the little church in Mt. said, "represents a great continuity of priests 600 rubles a month, which leave them a little Id.a, a mission of St. Mary's built in 1914, and people, and a spiritual continuity. more flexibility. A chemist and his wife who were to form the offertory procession. "The Church," he sa.ld, "has been caught make 500 rubles a month say they spend at Bishop Welsh was the principal celebrant up in the acceleration of change, as wen. least 220 on food for themselves and two at the Mass which combined tolk music and But there is one thing that does not·die, and sons. The rest goes on ordinary expenditures, Latin hymns, and he was fla.n.ked by retired that is the devotion to the saints of the "and we never have anything left at the end Bishop John J. Russell of Richmond and places where we worship." He spoke of the of the month." their pastor, Father Fra.nois L. Bradican. "downgrading of devotion to the Blessed Other middle-class families invest in the seated in a place of honor in the sanctuary Mother. I don't know quite what was behind status symbols of contemporary Moscow- was Msgr. Leonard J. Koster, first pastor of it," he said, "but we stand in need of the antique furniture (which was scorned just a St. Rita's when it was elevated to parish kind of continuity that you have had in your few years ago), old jewelry, china, crystal and status in 1924, now pastor-emeritus of St. parish of St. Rita. There hasn't been any real carpets. Charles, Arlington. change," he said. ''Thoughts have been up~ Some people save money, too. Soviet sav- Father Edward P. Browne, pastor trom dated, but real theologians are a.s true today lngs banks (which pay 2 per cent interest) 1967-72, in his homily traced the history of to patron saints and especially to the Blessed have deposits of about 70 b1llion rubles, an St. Rita's, but said, "If you talk only ab0u1i Mother as they ever were. Pope John, who average of 280 rubles per man, woman and the buildings, you're not ta.lk1ng abOut a gave us the Vatican Council, said 15 decades chlld in the country. This appears to be parish. A parish 1s most of all the people,.. of the Rosary a day," he said, "and the Coun· ra.tny day money. When asked, most people he said, "and the priests who spree.d. the gas ell wrote at great length about the Blessed express surprise at the size of personal sav- pels and help to build community. We have Mother, more than any other Council. When ings, and claim they themselves spend all been blessed with a good, dedicated, zealous Pope Paul closed the Council, he gave Mary they earn. One explanation for these sav• priesthood, varied in talent, varied in virtue, one more name-'Mother of the Church.' lngs is that many people cannot find the but one in dedication to the people. My life This is not ancient history," the Bishop said, products they would happily buy, U they were with the people of St. Rita's," he said, "were "this 1s ln recent days. It 1s a crucial fact," available. The waiting time to buy a car among the happiest years of my life because he said, "that from the earliest moments of stretches to several years in many towns. of the people. They are unique," he said, the Church, Mary has been included in es~ Some of these savings undoubtedly belong "because there are chUdren in the echool, sential dogma of the church." to the very rich-a tiny slice of Soviet so- whose parents and grandparents built the ciety, whose lives have little in common with church before them and they are stlll carry ordinary citizens'. A couple like Roman ing on. We are indebted to those of the past," Shedrin, the composer, and his wife, Maya he asserted, "and we must continue to build ENVIRONMENTAL PERSPECTIVE Pllsetska.ya, the prima ballerina of the Bot- ourselves, so that we wm have 110methlng to shoi, probably earn several thousand rubles pass on to those in the future. As we cele a month-more than a worker can make In brate this Golden Jubilee, ma.y it awaken 1n HON. ROBERT E. JONES a year. They have a large Moscow apartment. us a renewed sense of community and may 071 ALABAMA a foreign car, a big country dacha, hired help, we especially remember Msgr. Emmett P. foreign clothes and much more that ordinary Gallagher." (Msgr. Gallagher, who died 1n IN THE HOUSE OF REPRESENTATIVES Russians never even dream of. 1968, had become pastor in 1947 and had Thursday, October 17, 1974 overseen the buUding of the presen-t church and school complex.) "l.st us pray for the Mr. JONES of Alabama.. Mr. Speaker, future," Father Browne concluded, ..that the quality of the environment is of prop ST. RITA'S GOLDEN JUBll.JEE God w111 bless St. Rita's with many young er concern to each citizen. The concern CELEBRATED men and women who will dedicate them• is reflected 1n the great volwne of IegtsM selves as priests and Sisters." Bearing the gifts at the Offertory were lation introduced in the Congress each HON. STANFORD E. PARRIS five parishioners, whose family roots go deep session with the objective of improving in the church's history, Mrs. Catherine Cou the quality of life available to the peo OF VIRGINIA sins, Anthony Glammlttarlo, Miss Frances ple of the Nation. I N THE HOUSE OF REPRESENTATIVES Conlon, Miss Mary Conlon, and Miss Camille The intensity of concern can some Thursday, October 17, 1974 DeLane, first organist of the original church. times cause loss of perspective on the It was a happy, ebullient crowd of 250 distance the Nation already has traveled Mr. PARRIS. Mr. Speaker, this year which gathered later for a reception and toward the common goal of a better en St. Rita's Church in Alexandria.. Va., is dinner at the round, red-covered tables at vironment. celebrating its 50th anniversary as a the Ramada Inn on North Fairfax Street. A A refreshing examination of the eco parish. Sunday, October 20, the cor string trio circulated throughout the room on playing "requests'' and Bishop Russell dis logical situ~tion has been published 1n nerstone from the original church bulld played a fine tenor as he joined in "Santa the Huntsville, Ala., Times by the asso ing will be relaid next to the cornerstone Lucia.," and Father Bradican in "Galway ciate editor, Mr. Bob Ward, from a.n inM in the present church. Bay." For Bishop Welsh there was the "Penn tervlew with a farmer in north Ala;bama, For the interest of my colleagues, I sylvania Polka.." Mr. Holland Baker. would like to insert at this point 1n the Father Bradican spoke of his pride 1n St. Mr. Baker's thoughtful comments and RECORD a recent news article describing Rita's, and thanked all the laity who had helped "to make it what it 1s" as well as Mr. Ward's skillful presentation of the the golden jubilee celebration. It fs my the Sisters of St. Joseph for their work in views are most worthwhile and I include understanding that it is the Intent of the the parLsh school. He paid tribute to the them as a. part of my remarks so that parish to place a copy of today's CoN former pastors and "especially Msgr. Gallag others may appreciate this fresh per GRESSIONAL RECORD with other memora her, who set us up and got us started. We spective: bilia of church history under the corner shall work unitedly for the good of the par ENVIRONMENTAL PERSPECTIVE: ONE MAN'S ish to help each other and make it one of the VIEW OF How BAD IT IsN'T stone. finest in the diocese," he told his people. A LEXANDRIA PARISHIONERS CELEBRATE ST. Msgr. Koster, first pastor, called "those days (By Bob Ward) RITA'S GOLDEN JUBILEE the happiest of my life. It has always been a At 60 years of age, Holland Baker seems It was a grand night for singing and cele~ family," he said. His final words were drowned a tad too young to be termed an oldtimer. brating as St. Rita's Church of Alexandria out by a standing ovation. Stlll, he likes to talk about how things m-arked "Fifty Golden Years" as a parish Bishop Russell who served as bishop from used to be, back 1n the good old days. last Saturda.y night, the evening beginning 1958-73, said, "I come 1n great, good humor Except, as he remembers them, they were October 17, 1974 EXTENSIONS OF REMARKS 36145 the bad old days. But, that is, with respect dries were belching forth thick black smoke coasts during World War II. A lot of that oil to what 1s today lumped under the twin all the time." washed up on our beaches then, but I don't headings of Ecology a.nd 'Ib.e Environment. And then there were the forest and woods know of any lasting ecological damage from What disturbs Baker is the popular view fires. it.'' that the natural environment has reached its "A lot of people out in the country," Baker Baker doesn't have unkind words even for sorriest state ever, that pollution of the ele· recalls, "would set the woods on fire, and just strip-mining. He thinks reclamation of strip ments and despoliation of the land have nev· let them burn, and there would be a smoky mined areas would be nice, but he questions er before been so bad. He regards such think· haze all through the air around the moun· its necessity. He lately ·has seen some strip ing a.s alarmist and he blames it on "mass tains here. The farmers did it to improve the ~nes of 30 and 40 years ago and he says: hypnotlsm"-a.nd on ignorance, of past con· browse for their cattle. Well, we don't see .. You can hardly tell what they were, they ditions a.s well a.s present. much of that today. People today think all look almost natural now, mostly grown "It seems like so often some of the best· forest fires are so bad, but the Indians used over-and with no reclamation." educated people are so ignorant on this ecol· to do the same thing and so do foresters It's not that Holland Baker is in favor of ogy thing," says Baker. "I claim the ecology today. environmental damage or pollution. It's is in better shape than it's ever been." "And people now yell about others who that he feels the American public has gained Holland Baker, it should be quickly noted, might burn a pile of leaves in their yard, a "warped view" of our ecological ills from is no ecologist, no certified scientist of any and then these same people turn around "the mass media, especially television.'' kind. He has a small farm on Highway 72 and go inside to build a fire in their fire "Things get blown out of proportion and West at Monrovia, to which he ha.s recently places that burns for hours and puts out 10 they get the people 1n a trauma,'' he says. retired after 25 years as a Huntsvllle postal times as much smoke." "It's some kind of mass psychological thing, worker. His own formal education wa.s brief, And consider water pollution. Huntsville mass hypnotism. But most people are better stopping short of high school. But this fath· Spring Branch, for example, decades ago was off today, environmentally as well as ma er of two grown children reads a great deal, so filthy it wa.s called-well, ~ Baker deli terially, than they ever were. They just don't he is widely traveled, and his first-hand ex· cately explains, it had "the appellation of know it. As old Will Rogers said, 'Everybody's perience with the environment does date a common four-letter word in front of the ignorant, just about different things.' back better than half a century. word 'Creek.' " "I'm for eoology, myself," Farmer Baker He ca.n cite dozens of examples of an en· "They dumped all the sewage of Huntsvllle insists. "If I hadn't been, I sure wouldn't vironment that is today better, not worse, into it," he recalls. "It went all the way to have spent the better part of my life trying than it used to be. the river, just open like that. But that was to make this place better. "'Ib.ink how it was in the 1920s and '30s" nothing unusual back then. Every city be- "I suppose my point is that there is really he says. "To tell you the truth, this whole • tween Asheville, N.C., clean on down and nothing man can do to Nature that, given country-and by that I mean the South• around to Paducah," Ky., at the other end, enough time, Nature can't repair." east-was washed away back then. We had dumped their sewage into the Tennessee No doubt the people living elsewhere to forest fires all the time. And about the time River-untreated. And most of them took day near some major rivers and lakes choked trees got big enough to make a stick ot their drinking water from just above where nearly to death with man-made pollutants stovewood, they were chopped down and they dumped their sewage. 'Ib.ey called them hope he's right. burned up. selves purifying it before using it, but I don't "Now, I don't go back to the last century, know how much purifying they really did in but my father did-he was born right after those days.'' the Civil War. About the time of the end of Fish and wildlife are other ecological con WAYS AND MEANS COMMITTEE that war, this country was used up and worn cerns which Baker mentions. CREATING NEW TAX LOOPHOLES out. It had been 'cottoned to death,' as they "We used to fish on the river a week with say." out catching a thing." he remembers. "Now, As one small indicator of how soil condi· after they've built the dams, you can't go HON. CHARLES A. VANIK tions have changed, Baker points to the 100· without catching fish. The ecologists today OF OHIO acre farm on rolllng land he bought in 1946. yell against building dams, but dams help IN THE HOUSE OF REPRESENTATIVES He had applied for a Farmers Home Admin· fish and wildlife. There weren't a.ny ducks istratlon loan to help him buy the place. It along the river here until the dams were Thursday, October 17, 1974 took the agency almost a year to decide to built, not to mention all the fish that were Mr. VANIK. Mr. Speaker, I was very let the loan go though, he recalls, "because killed and land ruined before flood control concerned when the President in his eco the land was so poor, they weren't at all came. sure the place was worth even the $330-a· "And take wild game, for instance. My nomic message of October 8, 1974, gave year payment on the loan." daddy never saw a tleer. Now they're all over a blanket endorsement to the tax bill "This land, like a lot of other land around the place. And beaver were only a fond mem which has been developed by the Ways here, was absolutely worn out. There wasn't ory around here. Now you see them; they've and Means Committee. This tentative one acre on the place that was considered worked their way up Limestone Creek from bill is more loophole than reform. Some Class A land-land that would make a bale the Tennessee and are beyond the Capshaw have tried to give the committee's bill the of cotton to the acre." area now. I've got squirrels returning to my odor of tax reform-but it reeks or spe Today, his land is restored to production, place after all these years, now that the nut cial interest loopholes. The American thanks to fertllizers a.nd years of caring for trees are getting big. And woodchucks are it. Because it is so heavily contoured, it re taking over the place. And I even get wUd people must not be fooled into accepting mains marginal land for row crops and fit duck in my pond." this tax bill as a reform bill. only for grazing, and so Baker has it in pas Baker is especially critical of environmen I would like to include at this point in ture for the beef cattle he raises. But the son talists' alarm over phosphates, particularly the RECORD a column of October 17, 1974, conditions have been so restored, he says, phosphates in detergents under attack be by the economics writer of the Washing that his land could produce up to two bales cause they cause excessive algae growth in ton Post, Mr. Hobart Rowen, entitled of cotton per acre for a year or two-until, rl vers and lakes. "Creating New Tax Loopholes": with the plant cover gone, all the topsoil had "The phosphates you find in detergents," washed away. he argues, "are approximately the same CREATING NEW TAX LOOPHOLES Baker's point is that he, along with vir chemical constituents in many fert111zers, (By Hobart Rowen) tually all farmers today, have learned not to such as the one I use. But the fish 1n my By endorsing the House Ways and Means mistreat this facet of the environment that pond are waxing fat on the same chemicals Committee tax "reform" bill, President Ford way. they're trying to ban in detergents. I think has focused attention-no doubt uninten But that's not by any means all that's the publie is being fed a lot of malarkey on tionally--on what could be one of the major changed. phosphates. It's largely because of phos tax giveaways in U.S. history. "Across the board, the ecology is in so phates and other chemical fertilizers that As it now stands, the bill is not a tax much better shape than it was 40 or 50 years we're now getting 50 to 60 bushels of corn "reform" bill at all, although it does reduce ago," argues Baker good-na.turedly, "it's just per acre. The average corn yield in this coun or eliminate a few special privileges, notably amazing to me that people are so perturbed try used to be 15 to 16 bushels. the oil depletion allowance. over it. Any area. you could name is im "Now, I don't have anything against or But the main thrust of the proposed legis proved. Back 35 years ago, for instance, when ganic faming-I keep a compost heap myself. lation is to create $3 billion to $4 bHlion Huntsville had 16,000 population and there But what a lot of people who are against worth of new loopholes for businessmen, and were probably 10,000 cars 1n the county, chemical fertilizers forget is that they pro those wealthy individuals whose income is . those cars were probably doing far more pol duce a lot more stalk and stem, which is largely derived from capital gains rather than iuting per car than cars today do. turned under and makes more humus to wages. "And take the coal fires we used to have. enrich the soil. And it's yet to be shown that Thus, although the bill contains $1.6 bil They were. the worst air polluters. I've had any of these fertiUizers cause cancer, as lion in tax relief for the working poor (not asthma all my life and I used to go into town some have been saying." enough to compensate for inflation) it is on in wintertime on a frosty morning. Every Oil spills, another environmental concern, balance a bad piece of legislation which ben store burned coal for heat, as did an awful do not trouble Baker unduly. "011 spills at efits upper income brackets in too many ways lot of houses, and the air would be so heavy sea are nothing new," he says. "There's no while leaving what Rep. Henry Reuss (D• with smoke. And back then all the smoke telling how many big tankers were sunk by Wis.) calls "the old established loopholes" stacks at the mllls and factories and laun- German subs along the Atlantic and Gulf very much alone. 36146 EXTENSIONS OF REMARKS October 17, 1974 Take the capital gains proposal, which has IN SUPPORT OF VETO OVERRIDE OF will bring the two sides in this conflict most true tax-reformers up in arms. At pres· HOUSE JOINT RESOLUTION 1163 to the negotiating table. We must dem ent, 50 per cent of a capital gain-say on se curities-is excluded from any tax if held six onstrate unequivocably to Turkey that months. The generous Ways and Means Com HON. MARIO BIAGGI continued violation of the Foreign As- mittee would exclude 1 per cent in addition oF NEW YORK sistance Act will no longer be tolerated. for each year the asset is held over five years, Above all, we have an opportunity to but not over 25 years. IN THE HOUSE OF REPRESENTATIVES assert ourselves in an important matter That neat trick would increase the exclu Thursday, October 17, 1974 of foreign policy. Our vote last week in- sion to a potential 70 per cent and presum.:. ably make stocks more attractive to buy Mr. BIAGGI. Mr. Speaker, I support dicated that we in Congress still are con as well as persuade those holding stocks over the motion to override the President's tent to play a subservient role. Our vote a long period of years and said to be "locked· most recent veto, of House Joint Resolu- today may be the last chance we have in" by potential tax liab111ties to take their tion 1163. I find this action to be an un- to maintain our strong positions with profits (with a minimum tax bite) and buy fortunate move by the President and one respect to aid to Turkey. Failure to over new stocks. which should not be tolerated by the ride this veto will only serve to prolong Economists Roger Brinner and Alicia Mun· Members of this body. the Cyprus and intensify the embittered nell point out: "While a declining inclusion ratio would not solve either the inflation nor It has been almost 3 months since feelings of the Greek community who lock-in problem, such a change would sig· Turkey invaded Cyprus yet still we find have viewed with a sense of betrayal the nificantly reduce the tax rate on capital ourselves debating the issues of both our U.S. Government's failure to act in the gains." For individuals in the 70 per cent top continued providing of aid to Turkey and wake of Turkey's action. Most impor bracket, their tax on capital assets held 26 our efforts , toward restoring peace to tantly a vote to override will tell those years would be cut from 35 per cent to 21 per Cyprus. Yesterday we in the House passed Greek Cypriots who have seen their cent. an effective compromise amendment to families and friends, killed, their homes The Committee's proposal, if it worked to solve the lock-in problem, might be a shot the resolution which gave the ad.minis- destroyed and their future imperiled, in the arm for the ailing brokerage business. tration until December 10 to work out an that we are still committed to assisting But it would cost the Treasury at least $1 agreement on Cyprus, with the condition tJ:em, and that we are still the cham b1llion a year, while the biggest capital gains that if any of the aid which we provide p1ons of freedom for all men. We can loophole of all-the nontaxation of capital to Turkey was shipped to Cyprus the • not forsake tJ:te people of Cyprus any gains at death-remains untouched. President would be authorized to t~rmi- longer, for the1r hour of need is upon us. The surest way of tackling the lock-in nate aid to Turkey immediately. This was I urge a. decisiye and overwhelming vote problem, as Brinner and Munnell point out, is to provide a tax on capital gains trans a responsible and vitally important to overnde th1s veto today. ferred at death. Tax expert Joseph A. Pech amendment, one which could prevent man of the Brookings Institution estimates any further military aggression by Tur- the current cost of that loophole, which al key in Cyprus. Yet once again, the ad lows wealth and power to be transferred from HUD SECRETARY JAMES T. LYNN ministration has chosen to reject our COMMENDED generation to generation, at $3 billion a year. efforts at bringing peace to Cyprus and Other bonanzas created by the bill: Industrial Development· Bonds-Presently, has once again demonstrated its lack of private industry has a nice little racket un· concern for the future security of Cyprus. -HON. MARGARET M. HECKLER der which it can finance up to $5 million of I reluctantly supported the compro OF MASSACHUSETTS an expansion in a six-year period at public mise reached yesterday, reluctantly to IN THE HOUSE OF REPRESENTATIVES expense. This is done through issuance of the extent that I would have preferred, tax-exempt bonds by a state or local govern and have supported legislation in the past Thursday, October 17. 1974 ment to finance a new facility. Not only does which would cut off aid to Turkey imme Mrs. HECKLER of Massachusetts. Mr. this system provide tax-exempt investment diately. Her blatant violations of the Speaker, iri the midst of what I consider possibilities for high income individuals, but unfair criticism of Secretary of Housing the companies lease the plants at low rents Foreign Assistance Act with respect to because the construction borrowing costs are· use of military aid dictated to me ·that and Urban Development James T. Lynn, less than normal due to the tax-exempt gim this aid should be cut off forthwith. How I would like to share with my colleagues mick. But now the committee proposed to ever, realizing that compromise was my own perspective on Secretary Lynn's take off the $5 mt}Uon ceiling. With the sky needed, I supported the Rosenthal performance, which I believe has been the limit, the potential tax loss is another $1 amendment. very creditable in the most difficult of billion. However, I cannot support the Presi circumstances. Savings Account Interest-The bill would dent's veto today. While we have been No Secretary of Housing has worked as exempt the first $500 of interest in savings closely with Congress as has Jim Lynn. I accounts ($1,000 per couple) in an effort to debating this issue, the crisis on Cyprus help thrift institutions keep deposits, and has continued virtually uninterrupted. can assure my colleagues that the reason thus aid the housing industry. Whether new The Turkish Army continues its illegal we have a new housing bill (the Hous savings would be encouraged is debatable. and ruthless control of more than one ing and Community Development Act of But what is clear is that high-income fami third of Cyprus using our military aid In 1974) and not a veto is due in large meas lies would benefit most (a family would need open defiance of the Foreign Assistance ure to Secretary Lynn's untiring efforts nearly $20,000 in a 5.25 per cent passbook Act, yet confident knowing that they to find common ground between a num account to accumulate $1,000 in interest), have a friend in the administration ber of powerful interests, which have and the Treasury would be out an estimated been at odds for over 3 years of housing $1.8 billion. which seems content to allow them to Tax Simplification-Many deductions pres· continue their actions without any inter legislation. During the committee's ently itemized would be replaced by a lump ruption. months-long drafting sessions on this sum deduction up to $650 whether or not I most vehemently disagree with the legislation, Jim Lynn visited with each a taxpayer had actually qualified for any. The contention of the President that any committee member individually to ex net result: taxpayers with many and varied change views. He spent several hours in expenses which are now deductible would be decision to cut o:f aid can only prolong the Cyprus crisis. Unless we asset our my office discussing my proposal to pro sho.!'t-~hanged, Whi.le others would get what anwunts to a tax cut from Uncle Sam. Net selves in preventing any further ship vide loans for elderly housing construc tion which he ultimately supported. The -~ timated cost: $400 million. ments of arms to Turkey, Turkey will be As mentioned earlier, there are some in an excellent position to solidify her bill which passed authorizes $11.2 billion wo~t11while things in the bill, including a position on the island, and it is this that for housing, and charts a new direction heftier minimum tax, a reduction in real will prolong the misery and suffering for for the Federal housing and development estate shelter possibilities, a limitation on effort. So let us not say that Jim Lynn . tax-free junkets for doctors, lawyers, and more than a quarter of a million Greek other professional groups, and tightening of Cypriots. has been ineffective. · taxes on salaries earned. abroad. We are again confronted with a his As in all compromises, no one is en- But such welcome steps are as nothing toric opportunity to override a Presiden tirely satisfied with the final version of alongside the new loopholes and old ones tial veto. A vote to override is critical the new housing law. I fought hard to such as tax-free bond interest, the existing if we are to maintain our commitment keep the Model Cities prog£am fully capital gains benefits, and the "DISC" give to the people of Cyprus. We must sup funded for an additional 3 years, and I away that allows corporations to avoid taxes was the author of a new elderly housing 011 export sales. Better no bill at all than this port the bill we passed yesterday if we one! are to get the machinery in motion which construction program, as well as a pro- November 18, 1974 CONGRESSIONAL RECORD-SENATE 36147 hibition of discrimination against women leader in community affairs, but a man Veteran organizations have chosen him as of honor and integrity. He is an out V.F.W. Commander and American Legion in mortgage credit. Nevertheless, I did Commander locally. He has served as State not get everything I wanted in the legis standing American, and we in Tennes Vice-Commander of the American Legion and lation. In the process, however, I did de see's Seventh Congressional Distl1ct are in 1973-74 he served as National Vice-Com velop a finn respect for Secretary Lynn, indeed proud of him. mander of the organization's Councll on who demonstrated that he cares about Mr. Speaker, at this point I would like Americanism. housing as much as I do. He is a dedi to insert in the RECORD an article from Postmaster Herndon and his wife, Peggy, cated, hard-working leader. the Camden, Tenn., Chronicle of Octo reside on Woodland Drive in Camden. Their ber 10, 1974, concerning Mr. Herndon's son, Joe, is a senior at the University of Ten I also fought last year to continue full nessee in Knoxville where the postmaster funding for existing housing and com award: graduated in 1949. munity development programs, after a Postmaster w. c. Herndon of Camden has As coincidence would have it, the same Dr. moratorium on these programs was an been named the U.S. Postmaster of the Year. Andy Holt who presented Herndon his Na nounced, but I do not hold Secretary The award was presented on September 27 tional Postmaster's award was the same Dr. Lynn responsible for that decision. The in Hollywood, Florida by Dr. Andrew Holt, Holt, who as president of U.T. presented him moratorium was imposed before he be president emeritus of the University of Ten the'tiiploma in 1949. nessee and a member of the Board of Gov Another Tennessean was honored at the came Secretary, and the decision was not ernors of the U.S. Postal Service during the recent meeting in Florida. Kenneth Jen made by HUD, it was made by President annual convention of the National League nings of Powell, Tennessee, was elected presi Nixon. It was a decision that no one in of Postmasters. dent of the National League of Postmasters. the administration could have over Earlier in the year Herndon was named turned. Postmaster of the Year in Tennessee at the Mr. Speaker, we now have on line an State Convention at Paris Landing in July. $11.2 billion housing program. It is the His selection as Postmaster of the Year came CLIFF MciNTIRE from a field in which competition was tough. first opportunity Jim Lynn has had to All other states had chosen their representa demonstrate what he can do for housing. tives with which he had to compete. I believe he deserves a fair chance to per The award was based on recognition and HON. W. R. POAGE form on his own, and to be judged objec appreciation of his outstanding service in the OF TEXAS tively on his own record. Camden Post Office and this community and IN THE HOUSE OF REPRESENTATIVES to the National League of Postmasters. The honor reflected credit upon himself, Tuesday, October 8, 1974 the entire postal service and honored the Na TENNESSEAN NAMED "POSTMASTER tional League. Those were the criteria on Mr. POAGE. Mr. Speaker, all who OF THE YEAR" which the selection was based. served with Cliff Mcintire in the Con During the two days that Herndon served gress knew him as an able and distin as president of the State Tennessee beat all guished legislator. Those of us who served HON. ED JONES other states in the membership drive. with him on the Agriculture Committee, OF TENNESSEE Postmaster Herndon has been an influen because of a close personal relationship, IN THE HOUSE OF REPRESENTATIVES tial and dedicated worker in many facets of knew him also as a gentleman in the community life. He 1s active in Boy Scouts, Thursday, October 17, 1974 having earned the Sliver Beaver Award by the highest meaning of that word. National Council. His efforts in the Cancer He was considerate and helpful, kind Mr. JONES of Tennessee. Mr. Speaker, Crusade have been untiring. As both a Sun and understanding. His counsel was at its recent annual convention in Holly day School teacher and a Deacon, he serves sought by his colleagues. He was unstint wood, Fla., the National League of Post well in Camden's First Baptist Church. ing in service to his country, and in the masters named as the U.S. Postmaster of Today, Herndon is a Lt. Colonel in the U.S. field of agriculture he was truly a na the Year, Mr. W. C. Herndon of Camden, Army Reserve. He teaches classes for the tional authority. Tenn., which is located in the congres military. He is proud of the Army and has a News of his untimely death saddens sional district I represent. l'eason to be. During World War II, he served in the all who knew Cliff Mcintire, and I join I have known Mr. Herndon person European Theatre of Operations where he with his countless other friends in e. ally for many years and know him to be was taken prisoner by the Germans and held tending sympathy to his wife and the not only a fine postmaster and noted for four months. other members of his family.
SENATE-Monday, November 18, 1974 The Senate met at 12 o'clock meridian he may walk in Thy light and possess leadership has been recognized tomor and was called to order by the President Thy peace. row, the distinguished Senator from Mis pro tempore (Mr. EASTLAND). And to Thee shall be all praise and souri