12262 EXTENSIONS OF REMARKS May 2, 1978 EXTENSIONS OF REMARKS INFLATION AND TAX INDEXATION on indexing occurred, because of "the rate due to the static nature of the quantum IN CANADA tremendous rates of inflation we have ex­ of those exemptions. Thus we have one ele­ perienced since the mid-1960's and the ment of the silent tax increase. significant pressures this has placed on A second element is the progressive rate HON. PHILIP M. CRANE Government and Government thinking." structure. An increase in the effective aver­ OF ILLINOIS age rate with unchanged real taxable income Prior to this time personal income taxes yields higher real taxes. The only obvious way IN THE HOUSE OF REPRESENTATIVES were taking a higher and higher propor­ of avoiding this is to index the brackets. As­ Tuesday, May 2, 1978 tion of income from Canadians thus suming a taxpayer's various deductible ex­ placing them in higher tax brackets penses rise at an inflation rate, indexing of • Mr. CRANE. Mr. Speaker, there is a without a corresponding increase in their the brackets should generally mean that real growing concern with the problem of in­ real income. The problem became worse tax liabilities will rise only where total in­ fiation and rising taxes. We read and with the inflation of the 1970's as Ca­ come is rising more rapidly than the inflation hear talk of a "tax revolt" throughout rate. Where total income is rising less rapidly nadians realized the effect of the "silent than that rate, real liabilities will actually the United States. The Carter adminis­ but annual tax increase" because of in­ fall. tration is offering us more inflation and flation. Mr. Steiss states the result: On the evening of February 14, 1973, the more taxes. Indeed, many were clearly beginning to then Minister of Finance, The Honorable I have sponsored a measure which recognize that inflation itself was a form or John Turner proposed the introduction to the would help ease the growing tax burden taxation, that the government was obtaining Canadian tax system of a "major innovation of Americans. The Cost of Living Adjust­ a rising share of personal income coincident in tax philosophy and practice". In comment­ ment Act would amend the Internal with inflation and that such an increase was ing on this proposal, the Minister expressed being achieved in the absence of distasteful concern in respect of the rampant inflation Revenue Code of 1954 to provide for overt increases in nominal tax rates. phenomena in Canada. and the impact such automatic cost-of-living adjustments in inflation has on a tax system based on a. the income tax rates. It would also index Mr. Steiss offers some interesting con­ progressive rate schedule. The proposal, as the amount of the standard, personal clusions on that tax indexing program presented, was subsequently implemented exemption, depreciation deduction, and in Canada. It has been the taxpayers in into law with effect from 1974. Many, myself rate of interest payable on certain obli­ the range of $15,000 who have benefitted included, regard this change to Canada's in­ gations of the United States. The idea of the most from the percentage saving come tax laws as one of the two most impor­ indexing has been gaining more and from indexing with the next greatest tant structural changes to the Canadian i.n­ come tax system since World War II: The more attention. benefit going to taxpayers with income other being the taxation of capital gains and Economist Paul Craig Roberts wrote ranges from $15,000 to $20,000. Since al­ the many other substantive changes imple­ the following in a recent article ("Some most 70 percent of Canadian taxpayers mented by the 1971 tax reform bill. Tax Myths: Who Pays What?" National have assessed income ranging from $10,- Implementation of the proposal introduced Review, April 28, 1978) : 000 to $25,000, we find it is this group, the following basic system of indexation of Indexing the tax structure (adjusting it to not the very wealthy, who have received Canada's individual tax system: offset inflation) wuuld prevent this deteriora­ savings from indexing. It has reduced (a) The annual determination of a so­ tion that is occurring in the living standards Government revenues; it has reduced the called "inflation factor" based upon the in­ o! all Americans. One might think that this rate of growth of direct personal tax crease in Canada's Consumer Price Index in would make indexing an important issue in a defined immediately preceding 12 month revenues to Government from inflation; period. tax reform. Yet, it is not part o! the Admin­ it has aided to restrain some Government istration's proposals. Opponents o! indexa­ (b) Application of this inflation factor to tion have argued that inflation causes gov­ spending; and it has given an extra the various principal exemptions available ernment's costs to rise, so that it also needs measure of over taxes to the tax­ to individual taxpayers in Canada. Such prin­ more revenues. However, the way it is now, payer and voter. cipal exemptions prior to indexing, and the government's revenues don't simply rise We should remember that indexing in therefore in 1973, included a $1,600 single by the amount of the infiation, they rise by Canada is limited to exemptions and tax status exemption, a $3,000 martial status 1.65 times the rate of inflation. A 10 percent exemption and individual dependency ex­ rate brackets. A fully indexed economy emptions of upwards to $550 per dependant rate of inflation means a 16.5 percent in­ in order to protect its citizens from the crease in reve.nues. and, finally, and very importantly ... "silent tax increases" needs to consider (c) Application of the inflation factor to The Tax Foundation sponsored a con­ indexing other aspects of the economy the marginal tax ra.te brackets of the ference here in Washington, D.C., on such as capital gains. We need to con­ Canadian individual taxpayer. March 30, 1978, with one session devoted sider this important reform in the United The technical calculation of the cumula­ to indexation. One of the papers pre­ States. tive inflation factor is determined as the sented was by Carl Steiss of Price Mr. Steiss raises a number of key issues ratio of the Consumer Price Index for the Waterhouse & Co. of Toronto, Canada, in his perceptive paper and I urge my year ending September 30 of the relevant previous year divided by the Consumer Price and an instructor at the University of colleagues to read and meditate on the Index for the year ending September 30, 1972. Toronto. Mr. Steiss discussed the Cana­ message in "Indexation of Canada's In­ From a practical point of view the Minister dian experience with a limited system of dividual Income Tax System": announces the increase annually and soon indexation-the indexing of the tax I:NDEXATION OF CANADA'S INDIVIDUAL INCOME after the September CPI statistic is avail­ brackets. During a period of inflation, TAX SYSTEM able. The inflation factor is pragmatically ex­ taxable income increases more rapidly (By C. F. Steiss) pressed in terms of an annual adjustment than the inflation rate, because of the to the prevailing exemption levels and tax I have been asked to provide a few observa­ rate brackets of the prior year. static nature of the quantum of those tions on Canada's reaction to what I might exemptions. refer to as the "silent tax increase". Perhaps For example, the legislative adjustment in One interesting fact Mr. Steiss points I should open with a word about what I mean respect of the 1978 personal exemptions and out. In an intensive 4-year study of the by this phraseology. Generally speaking, in­ rate brackets was announced in October of flation causes taxable income to increase 1977 and was determined by dividing the tax system which resulted in a 2, 700- more rapidly than total real income due to average CPI for the 12 months ended Sep­ page, five-volume report, the Carter the fact that taxable income is a calculated tember 30, 1977 by the corresponding average Royal Commission on Taxation in 1966 amount after allowing for certain exclusions for the preceding 12 month period ended recommended against the adoption of a and deductions. While some exclusions and September 30, 1976. Expressed in percentage system of automatically indexing of the deductions may increase at a rate commen­ terms, the major personal income tax exemp­ tax system. Yet on February 14, 1973, the surate wlth inflation, others, and notably the tions and the tax bracket limits for 1978 were then Minister of Finance, John Turner, basic personal exemptions which account for raised by 7.2 percent as compared with those almost 80 % of all exemptions and deductions that prevailed for 1977. proposed a system of indexing which was in Canada from individual income, do not. Why September 30? The selection of Sep­ adopted into law beginning in 1974. Mr. Consequently, in a period of inflation, taxable tember as the extreme of each 12 month Steiss noted that the change in attitude incomes rise more rapidly than the inflation averaging period was based on the factual

Statements or insertions which are not spoken by the Member on the floor will be identified by the use of a "bullet" symbol, i.e., • May 2, 1978 EXTENSIONS OF REMARKS 12263 circumstance that the month of September to indexing a. tax system, the Carter Com­ in revenues through indexing. In very early was simply the last possible month in a. year mission made the following statement: estimates prepared by the Province of On­ that could be reflected in the calculation "Assuming that the Consumer Price Index tario, it was estimated that by 1980 the in­ while stlll allowing the government time to continues to rise a·t a.n average rate of 1.5 % dexing revenue loss to the federal govern­ print and distribute the withholding tax to 2 % a. year, what could and should be ment would range from a.bout 18% a.t sus­ tables on a timely basis for the following done?" tained 5 % inflation to a.bout 24 % at sus­ taxation yea.rs, being the year for which the The fact that the level of inflation from tained 8 % inflation. Reduction in Ontario calculation is relevant. 1952 through 1965 averaged only a.bout 1.4% revenues indicated the same pattern. There Why a. 12 month averaging period? The in­ a year and only reached its highest level of is no doubt that indexing significantly re­ tent of the government wa.s to extend the 3.2 % in 1957 ma.y have contributed to their duces the rate of growth of direct personal period so as to minimize the impact of conclusion that indexing was not of para­ tax revenues over the long term unless such unusual events or circumstances which might mount importance. Since 1965 the rate of reductions a.re offset by explicit increases lnltiwte an undue influence on the calcula­ inflation escalated significantly reaching, in tax rate. Some would say, and I would tion of a.n lnfia.tlon factor based on a. shorter 4.8 % in 1972 and 9.1 % in 1973 when indexing agree, that out of this observation flows a. period. was introduced. Furthermore, inflation ha.s st111 further advantage of indexing: Namely, indexing increases pa.rllamentary and/ or ta.x­ Interestingly enough, the law itself does simply galloped along since that date. Ex­ not contemplate a reduction in exemptions pressing Canada's Consumer Price Index fac­ ta.xpayer/ voter control over tax rates. a.nd/or a. narrowing of the marginal tax rate tor in terms of 1971 equals 100, said factor wm indexing in Canada. survive? Costs of brackets. Indeed, where the inflartlon factor at the end of January, 1978 was some 167.8. government are rising rapidly while tax rev­ for a. particular year ls less than that of the Prior to the introduction of indexing to enues and the real wealth of the nation on preceding year, the preceding year's factor Canada's income tax laws in 1974, personal which they a.re based are somewhat stalled. will be deemend to be operative: In other income taxes were taking a. higher a.nd higher To continue indexing may continue to in­ words, the exemptions and tax rate brackets proportion of the real incomes of Canadians. crease an existing budgetary deficit and to will not be reduced from thwt of the pre­ Ea.ch year, the real value of personal exemp­ raise taxes in isolation ls not only political­ ceding year. I mention this point merely for tions was becoming less a.nd less and more ly unpopular but is also inconceivable with your general interest since, with the rates of and more Canadians were finding themselves the fragile Canadian economy of today. One inflation to date in Canada, the matter has thrust into higher tax brackets without a thought is that the government ma.y be certainly not been in issue from the rtime compensating increase in their real income. tempted to ease its predicament by chang­ the scheme wa.s first introduced. While obviously not a.s exaggerated in the ing the method of calculation of the The inflation factor applied to the mar­ late 1960's, the impact was still there but I inflation factor to produce a. smaller factor ginal rate bra-ckets and exemptions has would think it fair to say the majority of but this itself would be unpopular and could broadened the brackets and increased t he Canadian taxpayers were unaware of this become a. matter of substantive controversy. exemptions on an annual basis by some 6.6 3 "silent but annual tax increase". With the While the reduction in revenue growth po­ for 1974, 10.1 % for 1975, 11.3 % for 1976, 8.6 % advent of rampant inflation in the early tential of the persona.I income tax can per­ for 1977 and 7 % for 1978. By 1978, the ·'!Om­ 1970's, there were signs in Canada that the haps be absorbed in the case of the federal pound e::fect of indexing since its inception silence of the increase was being disturbed government for some yea.rs due to its sur­ amounts to a. hefty 52.1 %. Introduction of and that Canadian taxpayers were becoming plus financial ca.pa.city, in the case of the indexing in 1974 meant the dropping of some more and more a.ware of the interaction of provinces, a substantial deterioration takes $175,000 from the tax rolls and another inflation and taxes. Indeed. many were place in their long run financial position. $225,000 in 1975 after which the govern­ clearly beginning to recognize that inflation Pressure signs are starting to show and the ment stopped counting. Estimated cumula­ itself was a form of taxation. that the gov­ matter could become a significant issue in tive federal government revenues lost ernment was obtaining a. rising share of per­ the next while. Perhaps the chief hope of through indexing through 1978 are some sonal income coincident with inflation and the government ls that inflationary rates $4 billion. that such an increase was being achieved in will abate and the impact of indexing Let's take a. look at the rates. In the ab­ the absence of distasteful overt increases in diminish. sence of indexing, our top marginal rate nominal tax rates. Has the government of Canada accepted in­ would cut in at taxable income of $60,000. Anyone concerned with baste social policy dexing as a logical and indeed necessary part I hasten to add that that top rate is depend­ has to be concerned about the impact of of the Canadi!l.n tax system? The answer ent upon the province of residence of the inflation. As you rise up the income sea.le, must be a qualified no! Certainly extension taxpayer and may vary from a. low of ap­ Cana-da's higher tax brackets widen consid­ of indexing to exemptions and the personal proximately 60 % to a. high of around 68 % . erably and increasingly insulate taxpayers tax rate schedule was a major innovation. For 1978, and strictly as a result of indexing, from ravages of inflation on real tax rates. But, if one accepts the principal of index­ the top marginal rate does not cut in until In other words, the tax increases resulting ing, is there not some logic to extension of taxable income of some $91,260 is reached. from inflation are highest not a.t incomes its application to most shtutory deductions What a.bout the exemptions? The married where the marginal rates are highest but and absolute dollar income inclusions under taxpayer with a. wholly dependent spouse rather at those income levels where marginal our Income Tax Act. For example, the Cana­ and two dependent children would, in the tax rates increase most rapidly thereby plac­ dian Income Tax Act prescribes various de­ absence of indexing, qualify for exemptions ing the burden more squarely on middle and ductions to retirement plans including, for of some $3,600. Application of indexing to low income earners. ex9.mple, a maximum deduction to a pension these exemptions entitles him to deductions What taxpayer has benefited the greatest plan. The quantum of this deduction has in­ of some $5,480 in 1978. from indexing? Notwithstanding my com­ creased over the past several years but such A single pensioner would have a.bout $4,000 ments a moment ago about the $60,000 mar­ increase has not been tied in to indexing. in 1978 exemptions versus $2,600 without ginal rate taxpayer, this is not the taxpayer In 1971 the government recognized that em­ indexing. category which has benefited the most. A ployees may have expenses and allowed an computer simulation model study recently arbitrary maximum deduction of $150 in Indexing represented a. very major shift in conducted would indicate that the taxpayer historical attitudes in Canada as to inflation recognition of employment expenses. In 1977 with assessed income in the $15,000 range the Minister of Finance recognized that in­ and taxes. Perhaps one of the most major enjoys the most significant percentage sav­ studies of any developed tax system was flation had eroded the value of that deduc­ that of the Carter Royal Commission on Tax­ ings from indexing. Indeed, about 27 % of tion and arbitrarily increased it to $250 for ation. That Commission spent some four the total tax savings enjoyed from indexing 1977 a.nd subsequent years. While the in­ belongs to this taxpayer category. The next crease was welcome, one wonders why in yea.rs of intensive study of all aspects of our greatest saving goes to income ranges of then existing tax structure and issued its 1973 the indexing scheme was not applied massive 2,700 page, five volume report, in from $15,000 to $20,000. Taxpayers with as­ to this and many other deductions under the 1966. The Commission considered the merits sessed income from $10,000 to $25,000 ac­ Income Tax Act. Perhaps another outstand­ of indexing and concluded that "the tax count for close to 70 % of the total federal ing ex1mple must be capita.I gains. The only structure should generally not be adjusted tax savings enjoyed through indexing of the response of the Canadian government to date automatically to take into account changes Canadian tax system. · with respect to the impact inflation has on in the general level of prices. To develop a What about revenue lost through index­ people's savings has been arbitrary deduc­ tax system that taxed only increases in 'real' ing? There is no doubt that indexing tions of $1 ,000 of investment income, and purchasing power would irreparably damage "COSTS"! For the 1978 taxation year, fed­ cerhin private pension income. Again in­ the built-in stability of the system". eral tax reductions for taxpayers at all in­ dexing has been ignored. Why the change in attitude? come levels will total some $850 million as Accordingly, the equity argument in fa­ Obviously, a part of the change must be a result of application of the inflation factor vour of inflation-proofing the personal tax explained by the tremendous rates of infla­ applicable for that year or roughly 6 % of rate structure has not been fully accepted tion we have experienced since the mld- budgetary revenues. All of the provinces of or, perhaps more appropriately, reflected. 1960's a.nd the significant pressures this has Canada other than Quebec have tax collec­ Only time will tell but I advance my own placed on government and government tion agreements with the federal government cautious opinion that for the time belng- thinking. Indeed, in introducing their re­ in respect of individual income taxes. Those "They've gone about as far as they ca.n marks and negative conclusions with respect provinces also of course experience reduction go!"e 12264 EXTENSIONS OF REMARKS May 2, 1978 ECONOMIC FACTS ABOUT ALASKAN living. Third, . along with other citizens of Sixth, in times of real need the d-2 areas LANDS the United States we worry about supplies can be opened to development. As a result of of oil and other materials we use. We know the hearings in Alaska and across the coun­ that commodities from our state are be­ try last summer, H .R . 39 has been modified. HON. RICHARD L. OTTINGER coming nationally important. Given these One of the changes is to allow mining in if OF NEW YORK concerns, how should we feel about the d-2 some of the more promising areas in the proposals for parks, refuges and wilderness future Congress and the President find it IN THE HOUSE OF REPRESENTATIVES areas? necessary. Tuesday, May 2, 1978 Our newspapers and radio have spread the We can conclude that the d-2 question word that environmentalist d-2 proposals has little or nothing to do with Alaska's econ­ e Mr. OTTINGER. Mr. Speaker, the threaten our economic well-being. Oil com­ omy, growth, jobs, or contribution to na­ facts do not support the contention that panies, for example, have printed large ads tional material needs.e H.R. 39, the Alaska National Interest in The Daily News and other papers imply­ Lands Conservation Act, is a "lockup" ing that federal withdrawals will lock up bill. vast energy, mineral, and agricultural re­ sources. Are they right? HOUSE BROADCAST COVERAGE: The Interior Committee report on H.R. Fortunately, we can look at several new 39 gives the following statistics on the reports on the subject. The two best are by TIME TO VOTE disposition of the 375 million acres of the Federal-State Land Use Planning Com­ lands in Alaska if the bill passes as mission and by the State of Alaska. Both HON. JOHN B. ANDERSON reported: studies are objective; neither of these insti­ Forty percent (149 million acres) of tutions is a promoter of the larger d-2 lands OF ILLINOIS all the land in Alaska will be or will be­ proposals. The commission study by Dr. IN THE HOUSE OF REPRESENTATIVES come the property of the State, native Bradford Tuck ls carefully researched, sum­ Tuesday, May 2, 1978 corporations or private land owners. marizing federal Bureau of Mines analyses, University of Alaska publications, and other e Mr. ANDERSON of Illinois. Mr. Twenty-six percent (98 million acres) sources. The state study was prepared to help Speaker, it has now been two and one­ of all the land in Alaska will be Federal in locat ing valuable lands for state selec­ half months since the House Rules Com­ land open to mineral entry, logging, and tion-the d-2 analysis is only a byproduct. other multiple uses. Several facts stand out when we read these mittee issued its report, "Broadcasting Sixty-six percent (248 million acres, reports: the Proceedings of the House." Under the sum of the above) of all land in First, Alaska is becoming wealthy, and the the terms of House Resolution 866 passed Alaska will be open to a wide variety of st ate's wealth is coming from oil. Prudhoe by the House last October 27, the com­ uses, unaffected by H.R. 39. Bay and most of the potential onshore oil mittee was to conduct a study of all alter­ lands are owned by the State or by the private native methods of providing complete Thirty-four percent (127 million acres) Native corporations. Most of the offshore of all the land in Alaska will be in one of and unedited audio and visual broad­ petroleum is or will be leased by the federal casting of the proceedings of the House the conservation system units either al­ government to private companies. Even the ready existing or designated by the bill. Udall and Carter d-2 proposals would restrict of Representatives and report its find­ Seventy percent of the lands with development of less than a fifth of the on­ ings and recommendations as soon as metallic mineral potential in Alaska will shore resources. They would have almost no practicable but not later than February be outside conservation system units. impact on the offshore areas. 15, 1978. Eighty percent of all the lands in New jobs and economic growth come pri­ A closely divided committee recom­ marily from state spending of tax and royalty mended that the House should operate Alaska will be open to possible develop­ dollars obtaineq from the oil industry. The ment. its own broadcast coverage system, fol­ future of the oil industry has next to noth­ lowing the example and building upon Ninety percent of all the land in Alaska ing to do with d-2. could be open to snort hunting. Second, the state and the Natives are the experience of the Canadian Par­ One hundred percent of all high pa­ selecting most of the economically valuable li o:i ment. Those of us on the minority side ten tial oil and gas lands in Alaska will lands. The boundaries of parks and refuges felt that the coverage should be pro­ be open to possible development. are drawn around most areas of high po­ vided by a pool of professional broad­ One hundred percent of all Federal tential for minerals, timber or agriculture. casters. ack tion to this position marked the first time Brezhnev recently said there was no of their borrowed Vega. He was shot three that a woman had been elected to a contradiction between detente and Mos­ times in the back and died instantly, hold­ major Youngstown city office. cow's African policy, and that "imperial­ ing a lacrosse stick. In addition to her professional success, ist propaganda" was making this point in Nick was the fourteenth victim of what Miss Durkin is actively involved in com­ an effort to "distort the meaning and came to be called the "Zebra killers." Be­ goals of Soviet foreign policy." tween the fall of 1973 and April 16, 1974, munity service through her participation they had randomly killed fourteen people in a variety of organizations. She is a So much for restraint. So much for a and wounded seven others--crippling one member of St. Edward's Church, the Ma­ change in behavior. So much for detente. for life. Four men were subsequently con­ honing County Federation of Democratic It is apparent that detente is a word victed of murder in a trial that lasted thir­ Women, and the Mahoning Valley Chap­ without substance. The Soviets continue teen months. ter of the Irish National Caucus. For 2 My son was tall, dark and handsome, and to do what they want to do, without re­ a good athlete. He was particularly good at years, she chaired the door-to-door can­ gard to the policy of detente. lacrosse and an expert skier. Nick was an vass of the American Cancer Society. Detente is dead. Or perhaps it was ardent photographer and wrote some lovely Mr. Speaker, Rosemary Durkin is obvi- never really alive.• poetry. He was a gentle and sensitive man 12266 EXTENSIONS OF REMARKS May 2, 1978 with an infectious grin and the capacity to same for handguns? Why are the production gories, while decreasing it in others. Mr. make friends easily. It was hard for me to and sale of firecrackers severely restricted­ MITCHELL'S amendment will give the believe he was gone. and not handguns? American people an opportunity to re­ OVERWHELMING RESPONSE A GRIM LITANY dress the imbalance between our national The generous support and love of our I now work in the NCCH office as a volun­ defense needs and those programs that friends gave us the strength to go on during teer. One of my jobs is to read and make guarantee that all people have a right to those days. The calls and letters that poured appropriate · card files each day for a ft.ood in from those who knew Nick were over­ of clippings describing handgun incidents. a basic standard of living. Clearly we whelming. In his short life, Nick had touched The daily newspapers across the country re­ recognize the needs of our citizens--the so many people in so many ways. It was both count the grim litany of shootings, killings, lack of job opportunities, the problems heartwarming and very humbling. rapes and robberies at gun point. Some of it's relating to our teenagers, and the dete­ But always, running through those blurred tough going, because I am poignantly aware rioration of our cities due to large in­ days was the question, Why? Why Nick? My of what a family is going through. Some of creases in crime and poverty. deep faith in God was really put to the test. it's so appalling it makes me literally sick. The present trend of our economic Yet, nothing that I could do or think of, or Some people can no longer absorb this spending must be reevaluated in order pray for, was ever going to bring Nick back. kind of news. They have almost become im­ Because Nick was shot two days after mune to it, because there is so much vio­ to address the problems in the areas of Easter, the funeral service was filled with lence. To others, it is too impersonal; it's social services that are badly needed. Easter prayers and hymns. Spring flowers always something that happens to somebody The American people must begin to came from the gardens of friends. The day else-not to you. resolve these problems through support was mild, clear and beautiful, and a kind of But anybody can be shot. We are all in a of the transfer amendment. It will lay peace and understanding seeped into my lottery, where the likelihood of your facing the foundation for a more productive, aching heart. handgun violence grows every day. Today more stable, and less militarized economy No matter how many children you have, there are 50 million handguns in civilian in the future.• the death of one leaves a void that cannot hands. By the year 2000, there will be more · be filled. Life seems to include a new aware­ than 100 million. ness, and one's philosophy and values come So many families have given up so much under sharper scrutiny. Were we just to pick to the deadly handgun. It will take the up the pieces and continue as before? That women of this country-the mothers, wives, FOOD, DRUG, AND COSMETIC choice became impossible, because a mean­ sisters and daughters-to do something ACT AMENDMENTS ing had to be given to this vicious, senseless about it. But when will they stand up to death. be counted and to be heard? Or will they That summer of 1974, the newspapers, wait only to hear the telephone ringing late HON. TIM LEE CARTER magazines and television were full of Water­ at night?e OP' KENTUCKY gate. But I couldn't concentrate on it or IN THE HOUSE OF REPRESENTATIVES anything else. Instead I dug hard in the garden for short periods of time, or smashed Tuesday, May 2, 1978 at tennis balls. PRIORITIZING OUR SPENDING­ • Mr. CARTER. Mr. Speaker, today I On the other hand, my husband, Pete, im­ THE MITCHELL TRANSFER am introducing amendments to the mersed himself in a study of the gun-control AMENDMENT issue. Very near to where Nick had died, in Food, Drug, and Cosmetic Act which a. vacant lot, two small children found a have been developed by the American gun-the gun. It was a .32-caliber Beretta. HON. SHIRLEY CHISHOLM Medical Association to improve the cur­ Police, in tracing it, found that initially it OF NEW YORK rent drug approval process. As you may had been bought legally, but then went know, the Health and Environment Sub­ through the hands of seven different own­ IN THE HOUSE OF REPRESENTATIVES committee on which I serve is planning ers-most of whom had police records. Its Tuesday, May 2, 1978 final bullets, fired at close range, had killed to take up the issue of drug regulation my son-and then it was thrown carelessly e Ms. CHISHOLM. Mr. Speaker, once reform in the coming months. I believe away. again this year we are faced with a it is important to know the recommenda­ INEFFECTIVE LAWS spiraling defense budget that continues tions of the representatives of the med­ Pete's readings of Presidential commission to grow each year. The continuing eco­ ical profession on this complex issue, recommendations, FBI crime statistics and nomic crisis refiects a changing public because any major revision of current books on the handgun issue showed him that attitude toward our Government and its law will inevitably have an impact on our Federal laws were indeed weak and in­ spendings. Our Government is just not p[!.tient care and the practice of medi­ effective. He went to Washington to talk to meeting the needs of its people. cine. I am introducing these amend­ politicians and to see what, if anything, was ments so that my distinguished col­ being done about it. I watched him wrestle The American people are facing an with his thoughts and spend long hours writ­ extremely important question of where leagues in the House and on the sub­ ing them down on paper-the pros and cons to place our priorities in spending. We committee will have an opportunity to of handgun control and what could logically should consider the importance of alter­ consider them along with other proposals be done about the proliferation of handguns ing current national spending goals in which have been or will be developed. ln the nation. order to take full advantage of opportu­ A brief summary of the proposed Through friends, Pete had been introduced nities to meet the basic needs of our amendments follows : ln Washington to the National Council to constituents. SUMMARY Control Handguns, a citizens' lobby seeking 1. An optional procedure is provided as stricter Federal controls over handguns. As This year's budget resolution continues to refiect significant increases in mili­ part of the new drug approval process where Pete became more closely associated with the drugs that may provide a significant ad­ NCCH as a volunteer, it became increasingly tary spending, while at the same time vancement in the treatment of d isease obvious that he was leaning toward a greater placing serious restrictions on programs would be available to practicing physicians involvement. related to human needs. Since we are in prior to the drug's final approval by FDA. Consequently, with strong encouragement a time of peace in our country, we should Any physician who agreed with a drug's from me and the children, Pete took a year's not allow dispropoi:tionate increases in sponsor to make certain reports and main­ leave of absence from his job as a marketing the defense budget just for the sake of a tain certain records would be able to obtain executive so that he could join NCCH full rising economy and threats of increases the drug for patients if the FDA and t he time. A full year and a half later, he finally in military manpower and procurement drug sponsor had entered into a preapproval resigned and became the NCCH chairman. marketing agreement. Under a new Section The main adversaries of handgun control from other countries. 505(k) of the Act, this procedure would take are members of the powerful and financially Because of my commitment to the the drug from the clinical research setting entrenched National Rifle Association, macho problems that we encounter in the areas into the physician's practice and would pro­ men who don't understand the definition of of employment, adequate health care, vide a larger data base of information to e civ111zed society. They are aided by an apa­ housing and the special problems relat­ monitor adverse reactions of the drug in ac­ thetic government which in reality is us, ing to the aged and youth, I am in full tual use on patients. A preapproval market­ because we citizens don't make ourselves ing agreement could remain in effect for a heard loud and clear enough. How many peo­ support of the transfer amendment maximum of three years. ple are in the silent majority, who want to which is being offered by Representative 2. Section 505(i) of the Act would be see something done about unregulated sale PARREN MITCHELL. The transfer amend­ amended to authorize an investigational and possession of handguns? Why do we reg­ ment to the budget resolution would raise new drug protocol agreement as an alter­ ister ca.rs and license drivers, and not do the the allowable spending in some cate- nate procedure to the current invest1gat1onal May 2, 1978 EXTENSIONS OF REMARKS 12267 new drug research procedure. The agreed MISUSE OF CETA FUNDS ployees working for the council make as upon protocol between FDA and the drug's much as $18,000 a year. sponsor would det ail the type of informa­ "In theory, CETA employes are supposed to tion that FDA would require for a new drug be hired based on their need, length of un­ application (NDA) and would contain de­ HON. JOHN M. ASHBROOK employment and job qualifications. But the tails of the drug sponsor's program to ob­ OF OHIO Star has uncovered a number of examples tain the information to be required by FDA. IN THE HOUSE OF REPRESENTATIVES suggesting that CETA employes at the coun­ The agreement would be binding, except that cil also have been hired on the basis of FDA would still have tee aut hority· t o deny Tuesday, May 2, 1978 whom they know, despite guidelines aimed an NDA if the safety and efficacy of the drug e Mr. ASHBROOK. Mr. Speaker, I have at keeping federal programs out of politics." was not established. been deeply disturbed by the numerous Among other examples, the paper noted 3. Section 505(c) would be amended to reports of abuse, waste, and outright that the council had used CETA funds three establish fixed deadlines for review of new years ago to hire the wife of a local dentist drug applications by FDA. The amendment fraud found in many of the Comprehen­ who is a political supporter of the council would also limit the number of extensions sive Employment and Training Act pro­ chairman. Though CETA supposedly was from the deadline that FDA could take be­ grams. Money that should be going to meant to provide temporary employment, fore notice and public hearings would be assist the unemployed citizens of our this woman-who presumably is not eco­ required as to further extensions. Nation is all too often being div~rted to nomically disadvantaged, considering her 4. A new Section 711 would be added to improper uses. husband's profession---continues to earn the Act that would authorize a drug spon­ $11,000 a year under the program. In New York City, for example, some In another case, wrote Kiernan, the coun­ sor to request an independent review of the CETA money is used to teach Islam scientific basis for any adverse decision cil used CETA funds to hire the son of a made by FDA regarding the sponsor's drug. rather than to provide jobs. The gover­ councilwoman . This son "now works as a The review would be made by a Select Com­ nor of another State is alleged to have legislative liaison between the council and mittee of the National Academy of Sciences paid employees in his own department Capitol Hill at a salary of more than and the Committee would be required to store with CETA money. Relatives of $17,000." submit its recommendations to FDA . Oklahoma politicians are reported to be But political favoritism is only one prob­ 5. Language would be added to Section on the CETA payroll. Unfortunately, the lem with CETA. Others stem from the fact 505 ( d) of the Act that would provide that that the Labor Department--particularly in list goes on and on. the wake oi last year's enactment of Presi­ data derived from well-controlled clinical A recent article in Human Events investigations regarding drugs that are con­ dent Carter's economic stimulus package, duced in foreign countries would be recog­ catalogs some of the blatant examples which required a rapid doubling of the num­ nized on an equal basis with such well-con­ of misuse and waste. Among other things, ber of public service jobs across the country trolled clinical investigations conducted in CETA money has been used by the D.C. to a total of 725,000-has put intense pres­ the United States and Canada. City Council to build one of the Nation's sure on local governments to meet monthly hirin~ quotas under the program. 6. A new Section 505 ( 1) would be added largest city council staffs; by a prospec­ One rP.sult is that local municipalities have to the Act to strengthen the prohibition tive ballerina to attend ballet school; and emphasized quantity rather than quality, against the submittal of false or misleading by feminists and gay rights groups to with governments trying to keep CETA em­ data to FDA. Corporate officers, directors and promote their political causes. ployes on the payroll even though they are managers would be held responsible for the supposed t o encourage CETA workers to find false and misleading submissions made by Following is the text of the Human Events story: unsubsidized jobs in the private sector. their corporations if such persons knew or Still another problem is that, under CETA, should have known of such a false or mis­ CARTER PRESSES FOR $11.4-BILLION JOBS PLAN local governments are supposed to create leading submission. A request by President Carter, now pend­ new jobs. Putting CETA workers into jobs 7. Labeling requirements for drugs would ing before a House Education and Labor sub­ that otherwise would have been financed out be modified. Section 503(b) (2) of the Act committee, would raise spending for so­ of local funds is forbidden. But, as one sub­ would be amended to require t h at t he label called "public service employment" ~n~er urban offi cial in "the Washington area told on prescription drugs cont ain the name, the Comprehensive Education and Tra1nmg the Star: "That sounds fine, in theory. But quantity and strength of the drug contained Act (CETA) to $11.4 billion next year-a the way it turns our., needed county services in the package. Section 502 would be jump of $3 billion. are declining at the same time we're spend­ amended by establishing a new Subsection What is of part icular significance about ing a lot of money on orchestras, arts groups (f) t hat would authorize the FDA to require this m easure-aside from its huge cost--is and non-profit agencies." that a patient information leaflet (PIL) be that the "public service jobs" concept, or tax­ The official was not exaggerating. The made available by manufacturers, to phy­ subsidized employment, has become a key­ Star cited one young woman, for instance, sicians for distribution to patients where t he stone to virtually all welfare-related pro­ who was among nine receiving $145 a week physician determines that provision of sup­ grams pushed by t he White House or the in CETA funds to attend a ballet school in plemental data to the patient would be ap­ majority in Congress. Indeed, the President's Montgomery County, Maryland. When asked propriat e. PIL's would be required for a drug welfare reform measure (as welJ. as Sen. what it was like to have the federal govern­ only aft er the FDA had received the advice Howard Baker's) relies on CETA jobs, as ment paying for her dance lessons, she and concurrence of a Nat ional Advisory does the full-employment Humphrey­ smilingly said: Panel established by the bill. A m a jority of Hawkins measure just passed by Congress "It's great. I've been dancing for eight the panel members would be practicing (see page 19 for rollcalls on H-H). years now, and recently I've had to take a physicians nominated by n ational medical lot of part-time jobs to support myself. Now, professional and specialty societies to serve Yet the evidence continues to mount that the CETA program is plagued by wasteful­ under this new jobs program, I can concen­ for three year terms. Information provided in trate entirely on my dancing and get paid the PIL would be supplemental to that pro­ ness, financial mismanagement and wide­ spread political abuse. Even worse, the at the same time." vided to the patient by the prescribing phy­ As the example of this young woman sug­ sician. The language that FDA cou ld require whole idea is basically fraudulent in that it does not increase the total number of per­ gests, many who are benefiting at taxpayers' in the PIL would be objective and non­ expense are not among the hard-core unem­ threatening and could not contain state­ sons employed in the United States, as its advocates suggest, but simply shifts thou­ ployed, who are so prominently mentioned ments of opinion by FDA as t o proper or ac­ by proponents of the public-service jobs ceptable modes of practice. Approval by the sands of workers out of the private sector into government-funded "make-work" jobs. concept. National Advisory Commit tee would also be As economist David I. Meiselman noted required for the language contained in the The kind of political hanky-panky to in a recent study: "Evidence from diverse PIL. The amendment would reserve to the which the billions in CETA funds floating sources implies that CETA participants are prescriber the responsibliity of distributing a around the country gives rise was dramat­ best classified as being from the middle of PIL to a particulal' patient. ically illustrated in a series of investigative the skill range, not as unskilled. Fewer than 8. Section 505 ( e) would be amended to pro­ stories by Washington Star reporter Michael 46 per cent of the persons hired under CETA vide an alternate procedure to the existing Kiernan. In the first of these articles on March l , Kiernan wrote that "The D.C. City were 'economically disadvantaged' according authority of the Secretary of HEW to sus­ to the government's definition (one who pend a new drug application if he finds a Council has made extensive and sometimes lives in a family receiving cash welfare pay­ drug poses an imminent hazard to the public illegal use of federal jobs funds to create ments or earning income less than the pov­ health. The amendment would authorize the one of the largest City Council staffs in erty thresheld). Only 15 percent of all CETA Secretary of HEW to suspend the approval of the country." participants in PSE [public service employ­ a new drug application or to require amended Altogether, said Kiernan, 56 council em­ ment] or training programs had been receiv­ labeling for the drug after the Secretary has ployes--0r nearly half of the 126-person ing welfare before entering the program. determined that the drug poses a serious and staff-receive $480,000 a year in CETA funds. "And findings of a national survey show substantial risk of harm to the public health While this would average out to $8,571 a year that a substantial fraction, over 20 per cent and after an opportunity for an expedited per CETA-funded staffer, he went on, "be­ of PSE workers, are actually employed on hearing.e cause of District supplements, the CETA em- the day before getting the subsidized job." 12268 EXTENSIONS OF REMARKS May 2, 1978 The costs of such make-work "jobs" are perts in constitutional law recently ex­ academic, emotional, and social learning staggering. In New York City, for example, pressed their joint view that a tax credit experiences for children who have been the "CETA Artists Project"-under which for private elementary and secondary frustrated by failure in their personal people whose skills range from painting and acting all the way to circus juggling are get­ school tuition would be unconstitutional. growth and development. ting paid $10,000 a year-has a price tag I want to make my colleagues aware of Scholarship funds provided by pro­ of $4 million. this joint letter. ceeds from the award dinner will enable Yet another flaw in CETA is that much of APRIL 27, 1978. those students whose parents cannot af­ this funding goes to pay for staffers of groups DEAR REPRESENTATIVE: We are writing to ford to pay the tuition fees to benefit promoting liberal-left political causes. As we express our view of the constitutionality of from the Mardan services they need. reported last fall (Nov. 26, 1977, page 3), the Packwood-Moynihan bill or any other Therefore, I rise on this occasion to a Brooklyn-based feminist group called the measure which permits a tax credit for tui­ congratulate Tom Riley for his contribu­ National Congress of Neighborhood Women tion paid to sectarian elementary and se­ tion to the community and the Mardan (NCNW), all of whose paid staff of approxi­ condary schools. Center for the excellent services it has mately 20 were receiving their salaries This letter is prompted by our concern courtesy of CETA, had applied for a total provided to the community since the cen­ that the constitutional issue has been blurred ter was established in 1963.• of 200 additional CETA "slots," which they during the current debate over tax credit would share with approximately 40 other legislation. The last time tax credits were feminist-oriented organizations located in seriously debated in Congress was in 1972- New York City. before the Supreme Court decided Commit­ SAFE DRINKING WATER STAND­ Human Events has now learned that the tee for Public Education v. Nyquist, 413 U.S. ARDS QUESTIONED NCNW's request was approved by the city's 756 (1973). It might have been possible to Board of Estimates on February 16. As a re­ argue then that opinions as to the constitu­ sult, the NCNW-which promotes ERA, abor­ tionality of tax credits were speculative. HON. JOHN B. ANDERSON tion and other controversial issues-wlll have Nyquist Given the opinion, however, such OF ILLINOIS 23 additional full-time staffers this year paid an argument is no longer credible. by the taxpayers. Other groups sharing in the Simply stated, the proponents of tax credit IN THE HOUSE OF REPRESENTATIVES NCNW's grant include the rational Gay Task legislation are advocating a course of action Tuesday, May 2, 1978 Force, which received five CETA-funded staff­ which in our opinion is unconstitutional ers; the New York Women's Liooration Center under the Nyquist ruling insofar as such G Mr. ANDERSON of Illinois. Mr. (seven slots), and four chapters of the Na­ credits would extend to tuition payments to Speaker, I recently received a very dis­ tional Organization for Women, which re­ non-public elementary and secondary turbing position paper from the Illinois ceived a total of 17 CETA staffers. schools. According to a spokesman for the city, who Professor Anthony Amsterdam, Stanford Environmental Protection Agency rais­ asked not to be named, each of the 200 people Law School; Professor Ralph S. Brown, Yale ing serious questions about the efficacy hired under the NCNW's CETA grant will Law School; Professor Norman Dorsen, New of proposed U.S. EPA regulations on the make from $8,000 to $10,000 this year. The York University Law School; Professor Rob­ organic chemical content of public wa­ total cost to the taxpayers of this one grant ert Hamilton, University of Texas Law ter supplies. In summing up the conclu­ alone: $2.5 million. And this can be multi­ School; Professor Bernard Harvith, Albany sions of the paper, the acting director of plied many times over in cities and towns Law School; Professor Kenneth Karst, UCLA the Illinois EPA, Mr. Michael P. Mauzy all across the country. Law School; Professor Arthur Miller, George wrote: Obviously, the kind of people who are Washington Law School; Professor Melville Nimmer, UCLA Law School; Professor Ralph In our view, the U.S. EPA proposal repre­ qualified to work for such politically activist sents an extreme reaction to a questionable groups as the NCNW and NOW would also Spritzer, University of Pennsylvania Law Schoo Le problem. The solutions proposed are unreli­ have the skills, by a~1d large, to work in the able, of unknown benefit and of high cost to private sector. Indeed, the ballerina quoted water users. in the Star admitted outright that her CETA "Job" had enabled her to quit working in HON. THOMAS F. RILEY OF ORANGE The Illinois EPA position paper, en­ unsubsidized employment. COUNTY RECEIVES AWARD titled, "Position on the Proposed Regula­ This confirms the finding of the Melselman tions for Control of Organic Chemical study that "an increase in the number of HON. ROBERT E. BADHAM Contaminants in Drinking Water," was public sector jobs wm accompany a decrease OF CALIFORNIA developed in concert with the State De­ in the number of private sector jobs." More­ partment of Public Health and was pre­ over, according to Meiselman, since the pri­ IN THE HOUSE OF REPRESENTATIVES sented at a U.S. EPA hearing in Miami, vate-sector output displaced by the public Tuesday, May 2, 1978 service jobs "generally would have been more Fla. on March 23, 1978. The paper ques­ useful and valuable than the additional pub­ • Mr. BADHAM. Mr. Speaker, it is my tions the EPA claim that chloroform lic sector services," the result is that the great pleasure to call the attention of and other chlorinated organics found in "real value of output will fall, causing an in­ my colleagues to the occasion of the third drinking water are carcinogenic to man crease in inflation. Average real wages and annual award to be given Saturday, May and must be removed through granular total employment in turn, also must fall." 13, 1978, by the Mardan Center of Edu­ activated carbon treatment. The Illinois Rather than creating st!ll more public cational Therapy to the Honorable EPA notes that in the rodent tests, service jobs, says Meiselman, the government Thomas F. Riley for his outstanding "where test animals were fed very high should pass a federal tax cut if it ls serious dosages of chloroform, far exceeding any about increasing employment in this c-oun­ achievements and service to the citizens try. "Given the slowdown in recent years of of Orange County. level to which humans could be expected our economic growth," he concludes, "shift­ . Mr. Riley, who is chairman of the to be exposed in drinking water at the ing resources to create more make-work and Orange County Board of Supervisors, has maximum levels found to date," there busy-work projects hardly would seem to be a record of service to youth in his com­ was evidence that "chloroform is a car­ called for today." munity. Included among his many cred­ cinogen." However, in a study carried out Yet that is exactly what President Carter its are the presidency of the Big Broth­ on dogs over a period of 7 years, there and the liberals in Congress are calling for ers of Orange County, advisory board was no noticeable effect • • • from in the welfare "reform" anj Humphrey-Haw­ member of International Orphans, Inc., chloroform. While the study concedes kins measures, as well as the proposed CETA that 7 years may have been too short extenslon.e honorary chairman of the Orange County Marine Corps Toys for Tots pro­ a time to draw conclusions, it notes that gram, chairman of the Eagle Scouts Re­ "there are other studies and basic facts view Board and chairman and nominat­ which cast some doubt on whether ing committee member of the Del Mar chloroform is indeed a human carcino­ TAX CREDIT FOR PRIVATE gen," including a study of people who SCHOOLS UNCONSTITUTIONAL District of the Boy Scouts of America. The dinner held by the Mardan Cen­ were addicted to cough syrup containing ter, which is located in Costa Mesa, chloroform. HON. WILLIAM M. BRODHEAD Calif., in the 40th Congressional District, What is perhaps most alarming about OF MICHIGAN is a fundraising event with all proceeds the Illinois EPA study is the suggestion IN THE HOUSE OF REPRESENTATIVES benefitting the center, a nonprofit pri­ that the proposed cure may be worse vate school for children with learning than the problem. The Federal program Tuesday, May 2, 1978 disabilities. calls for cities of more than 75,000 per­ e Mr. BRODHEAD. Mr. Speaker, it has Mardan has for many years been dedi­ sons to install granular activated car­ come to my attention that several ex- cated to the enhancement of successful bon as part of the water treatment proc- May 2, 1978 EXTENSIONS OF .REMARKS 12269 ess if chloroform is found in larger I hope that you will find our views of in­ "If we were to assume as correct the pro­ amounts than 100 parts per billion parts terest. Please let me know if we can pro­ jected maximum tumor risk for these regu­ vide additional information. lations, then we would have the risk of 500 of water. To quote from the study: Sincerely, tumors for a designated population of 160 Granular activated carbon is known as a MICHAEL P. MAUZY, million people. This breaks down to 3.125 good breeding ground for bacteria. It there­ Acting Director. tumors per million people. Since the eco­ fore is highly probable that bacteria will nomic impact analysis states that 7,160,000 grow in many of the GAC units installed for STATE EPA QUESTIONS-NEW DRINKING people would be served by the 26 systems this purpose. Here again, given the problems WATER RULES which would be required to use granular found in operation, it is probable that at SPRINGFIELD, ILL., March 15.-The proposed activated carbon, we could expect that the least some of these units will be putting bac­ carbon, if it were to work completely suc­ teria into the water, and these bacteria will controversial federal program to use granu­ lar activated carbon to remove synthetic cessfully, would prevent 22.375 tumors per not be removed satisfactorily by proper dis­ year. infection. We therefore would be increasing chemicals from drinking water not only presents health and financial problems for "The cost, therefore, for preventing each the immediate hazard for at least part of tumor would be 1.26 million dollars at the the population. the taxpayer but will give a false sense of security, according to the Illinois Environ­ minimum, and probably two or more times Mr. Speaker, the questionable carcino­ mental Protection Agency's Division of Pub­ that. The money which this requirement lic Water Supplies. would demand could prevent many more genic effect on man of chloroform and tumors if spent in other areas. If these rules other chlorinated organics found in The federal EPA is claiming that chloro­ form and other chlorinated organics which go into effect, water bills to the consumer drinking water, combined with the po­ are formed during the chlorination of drink­ may more than double, with little or no tential bacteria breeding effects of the ing water, in the amounts found in drinking benefit. proposed treatment process call for a water, are carcinogenic to man and must be "What they are offering is likened to try­ serious reexamination of the U.S. EPA removed through granular activated carbon ing to put out a match with a defective fire standards and proposed solution. I am treatment. In addition, this treatment is truck, with no idea whether or not the match today writing to the Administrator of mandated as a "safety measure" for water is lit, and with a water shortage." he said. supplies which may be exposed to other syn­ Alternate regulations are proposed by the the U.S. Environmental Protection Illinois EPA which would not decrease the Agency, Mr. Douglas M. Costle, asking thetic chemicals in their raw water sources. In a position paper just released, the state safety of the water, and would promote bet­ for a detailed response to the Illinois EPA agency responded that while it is true that ter removal methods at reasonable costs. position paper. I am also writing to substances which are kno ;vn carcinogens to The position paper will be presented at a Chairman Paul Rogers of the Health and ~nimals might also be carcinogenic to man, public hearing in Miami on March 22. Other Environment Subcommittee of Interstate it rs not necessarily true that a substance hearings will be held in seven other cities and Foreign Commerce, asking that which is a carcinogen to a specific species of across the country. Many other states, as well animals will also be a carcinogen to man. as water utility managers, professional socie­ oversight hearings be held on the Safe ties, engineering and chemical educators and Drinking Water Act. "For example, in addition to the rodent tests which were used, there was another consultants are expected to join Illinois in Finally, I want to commend the Illi­ study carried out on dogs over a period of opposing the regulations as proposed, accord­ nois EPA and Public Health Department seven years and no noticeable effect c.:>uld ing to Markwood. in taking seriously their invitation and be found from chloroform in this study," STATE RIGHT IN RESISTING FEDERAL EPA responsibility to comment on the pro­ said Ira Markwood, division manager. "It PROPOSAL posed standards. At this point in the may be possible that chloroform is not a RECORD I include a letter I received from carcinogen to dogs, but there are other Newly proposed water purification regu­ Michael P. Mauzy, acting director of the studies and basic facts which also cast some lations by the federal Environmental Pro­ doubt on whether chloroform is indeed a tection Agency have resulted in the state Illinois EPA, a press release on the posi­ EPA taking an adversary role-and we think tion paper, and an editorial from the human carcinogen." He said that a study of people who were rightfully so. State Journal Register: addicted to cough syrup containing appre­ Because of the concern of Congress over organic materials in drinking water, the ILLINOIS ENvmoNMENTAL ciable chloroform did not show any carcino­ genic effects. federal EPA is recommending that public PROTECTION AGENCY, water supplies serving more than 75,000 April 5, 1978. "These people took daily doses for ten years or more and the only effect was reversi­ users must install granular activated carbon Hon. JOHN B. ANDERSON, filtering equipment if such material, espe­ U.S. Representative, ble hepatoxicity," (liver problems) he said. "Another study, using a dentifrice and cially chloroform, is found at a certain Washington, D.C. level in the water. DEAR REPRESENTATIVE ANDERSON: At­ mouth wash containing chloroform and used daily for up to a five year period, did This highly questionable solution is being tached for your information is a position vigorously opposed by the state EPA for paper regarding the recently proposed U.S. not produce hepatoxicity. Therefore, there is no evidence to date to document chloro­ a. variety of reasons. For one thing, although EPA regulations on the organic chemical Washington claims chloroform in water content of public water supplies. This posi­ form carcinogenicity in humans through oc­ cupational or environmental exposures." causes tumors, current data !ails to prove tion was developed in concert with the Illi­ that contention. State water suppliers would nois Department of Public Health and was The federal program calls for cities of be forced to spend millions of dollars on a presented at a U.S. EPA hearing on March 23, more than 75,000 persons to test their drink­ purification process the need for which is 1978, at Miami, Florida. ing water regularly for chloroform and to doubtful. In our view, the U.S. EPA proposal repre­ install GAC as part of the water treatment In addition, the federal EPA has latched sents an extreme reaction to a questionable processes if chloroform is found in larger onto the idea of using granular activated problem. The solutions proposed are unreli­ amounts than 100 parts per billion parts of carbon as a filtering agent when its effec­ able, of unknown benefit and of high cost to water. tiveness is questionable. There is also a water users. "We know that granular activated carbon health hazard involved because carbon is We have solicited active involvement in is a good breeding ground for bacteria and known as a substance that is a good breed­ the regulatory process by other national is therefore highly likely to put bacteria ing ground for bacteria. This could create and state groups and we hope that they will back into the water. In add1t1on, there is dangers to health that might be greater not be passive in their consideration of this no operational testing that the supply op­ than from the chloroform itself. U.S. EPA regulatory proposal. Only by active erator can do to know if the GAC is work­ These are the logical and forceful argu­ involvement in the regulatory process, do we ing properly. He'd be flying blind," said ments being made by Ira Markwood, manager believe that U.S. EPA can secure sufficient Markwood. "Furthermore, the regeneration of the state EPA's public water supplies divi­ information for decision making on this im­ frequency of the carbon for this purpose is sion. Ma.rkwood has prepared a position pa­ portant matter. Naturally, we hope and ex­ extremely short, which means there will be a per, outlining Illinois' opposition to the pect that many Illinois groups will be able high cost for the carbon and its upkeep. rules, that will be presented this Wednesday to support all or major portions of our posi­ "The report on the economic impact anal­ in Miami during one of eight public hearings tion. ysis of a trihalomethane regulation for drink­ being held by the federal EPA on the pro­ I believe that this important matter should ing water also states that about 89 per cent posed regulations. These hearings will con­ be brought to your attention because the of the capital costs are due to the require­ tinue through May 5. After that the federal fundamental technical issues involved in this ment for GAC for 26 public drinking water agency will study the testimony and make regulation are similar to those considered systems across the nation though these sys­ a final decision. recently by Congress concerning the sac­ tems are only 30 per cent of the number On the basis of Markwood's arguments, charin ban by FDA. Perhaps Congressional affected by the regulation. The report states we believe this is a case where the Federal direction on the appropriate limits for ad­ that this same group would have to come up EPA has reacted to congressional pressure ministrative action by federal agencies on with an additional 28.2 million dollars each without fully studying the consequences or such matters of national application and year in order to put this additional system in the alternatives. For example, Markwood says concern a.re needed. effect. that chloroform develops from a. slow reac- 12270 EXTENSIONS OF REMARKS May 2, 1978 tion of chlorine with na.tura.l substances In this manner the courts have managed Ku Klux Klan if that organization sought to in the water. A much less expensive methcd to create the worst of all possible worlds. stage an entertainment for its own benefit of reducing the reaction, he believes, would They have been given the chance over sev­ b y marching through Harlem. And what was be achieved by pumping water intt> a res­ eral months to restrain the Nazis on grounds plausible to most of our own scholars of law ervoir and chlorinating it before it goes to of jurisdictional principles that are funda­ barely more than a decade ago has remained the treatment plant. mental to a democratic order. What they plausible to the friends of constitutional It seems unreasonable to us to saddle pub­ chose to do instead was to affirm the view government in other countries. The British lic water suppliers with exorbitant costs­ that a democracy has no principles by which were compelled to make use of their author­ approximately $2 million for Springfield's to judge the Nazis-but then to restrain the ity in Northern Ireland a few years ago to water treatment plant-by using the granu­ Nazis anyway without the benefit of prin­ stop a series of reciprocal provocative lar activated carbon process when other ciples; the courts have established now that marches by Protestants into Catholic areas methods are available. As usual, those costs the Nazis have the widest claims to consti­ and Catholics into Protestant areas­ will be passed on to the consumer. tutional freedom, but that their freedom of marches that persistently sparked violence, Even though Illinois could stand to lose expression may be restricted so long as hostile and that were conceived with that purpose $1 million a year in federal grants should it groups show a willingness to use violence. in mind. continue to oppose the regulations if they The result, in short has been decidely anti­ It was in this tradition of go·;erning dem­ are approved, the ultimate savings to con­ libertarian. Instead of using the occasion to onstrations in the streets that the Village sumers' pocketbooks, and possibly their teach something about the principles that of Skokie sought an injunction to restrain health, wtmld be worth it. define legitimate interests and expression, the Nazis, and . the injunction was granted We give our support to the state EPA in the courts have given credence to the most by a county court. The injunction was later its opposition to the proposed regulations, cynical understanding of the law-viz., that amended slightly to prohibit the Nazis from and we hope that similarly logical argu­ the law is merely a polite form in which the marching or parading with their uniforms ments from other states wm convince the force of the many may govern the few. and insignia, and (according to one report) federal EPA to back down and listen to its But of course it is not the mission of the "from distributing pamphlets or displaying sister agencies.e Nazis to attach the people ever more strongly any materials that incite or promote hatred to the institutions and laws of a democratic against persons of Jewish faith or ancestry or society, and so whether they march or not, other person." After a series of appeals to they will have accomplished a large portion the highest courts at the state and federal MARCHING THROUGH SKOKIE of their ends; they wm have caused urban levels, these restrictions were struck down citizens of all classes to regard the courts as and the injunction dissolved. In the mean­ witless and the laws as amoral. time, though, another injunction was sought The choice of Skokie as a target was clearly against the Nazis by residents of Skokie who HON. PHILIP M. CRANE not inadvertent. Of the 69,000 people in Sko­ were survivors of the Holocaust. 'l'hese peo­ OF ILLINOIS kie, about 40,000 are Jews, and of the J'ewish ple claimed that the advent of the Nazis to IN THE HOUSE OF REPRESENTATIVES refugees from Europe who came to Chicago their neighborhood would be the source of between 1930 and 1960, most are thought to a. special injury or emotional strain for them Tuesday, May 2, 1978 have settled in Skokie. A group called Sur­ by reviving many of the traumas they asso­ • Mr. CRANE. Mr. Speaker, moral vivors of the Holocaust was organized in the ciated with their experience in the war. This premises are those ethereal principles metropolitan area, and of the 12,000 members suit is still making its way through the upon which our constitutional govern­ of this group, 7,000 were living in Skokie. courts. is Skokie was not chosen by the Nazis, then, Ordinarily one can hope that the expense ment founded and from which we because it was the most promising place in and fatigue of litigation may generate their claim our constitutional freedoms and which to recruit new members or hold a own benign effects; but the Nazis have been rights. When those constitutional free­ discussion about the substantive "program" buoyed up in this long process by the .sup­ doms and rights are threatened it is not of the party. The aim of the march, very port-and the special skills--of the Ameri­ nearly enough to look at the body of law plainly, was to gather attention and create can Civil Liberties Union. The implications which protects those freedoms and an effect that was well out of proportion to of this support have not been lost on Jewish rights, but to the principles upon which the actual :::ize of the group (which &ppar-­ members of the ACLU, and the reaction has that body of law was built. ently comprises thirty to fifty members). been so severe that the ACLU has lost (by The Nazis could easily accomplish that end some accounts) nearly 25 percent of its Succinctly, this is the logic and rea­ by marching into a community of Jews with members. All of this, however, may simply soning that must finally prevail in the the full trappings of their syrr.bolism-the confirm to the leaders of the ACLU that the controversy surrounding the Nazis and uniforms, the caps, the swastikas on arms sensibilities they pos:::ess on these matters their march in Skokie, Ill. The following and flags; by presenting, in short, the kind are not commonly distributed among the analysis by Prof. Hadley Arkes was of spectacle that should elicit outrage among population at large, or even among most of brought to my attention and I would like decent people of any persuasion, and by their own sustaining members. to share it with my colleagues: counting on the fact that the public outrage For the leadership of the ACLU, it would would be sure to attract the attention of the be accurate to say that there is ultimately MARCHING THROUGH SKOKl'E media. no "truth" in matters political-that all (By Hadley Arkes) As recenly as 15 years ago in this country, ideas about the proper form of government Will the Nazis finally march in Skokie? this kind of spectacle would have been seen over men come to rest at the end on per­ They have sought to stage their demonstra­ perfectly clearly for what 1't was: a deliberate sonal beliefs or opinions, which cannot finally tion in the suburbs of Chicago since May of attempt to provoke a population to vio­ be measured as true or false. As far at least last year, and until very recently t here lence-which is to say, an attempt to pro­ as the right to speak is concerned, the cac;;e seemed to be a concert between the st ate and voke without justification. It was well under­ for a regime of law and the case for a federal courts to strike down every legal stood that the entrance of the police or cler~y regime of genocide must be counted, in this obstacle that might have prevented the Nazis into a tomzh neighborhood could !)rovoke the view, as equally deserving of a claim to be from marching. But suddenly the declama­ local denizens to fury, but that was not the heard and (ultimately) approved by the pub­ tions were suspended and judicial minds kind of provocation from which the law lic. David Hamlin, the executive director of were concentrated a.new, with the mounting souizht tO protect people. What the law the Illinois division of the ACLU, was moved evidence that other groups would be coming rnul!ht to proscribe were demonstrations that to say, regarding the Nazis, that "the First to Skokie with the intention of meeting the stc.od , in effect, as assaults, and it was hard Amendment ... affords us the unique op­ Nazis in the street with a show of violence. In to find a profec;sor of law who was not alert portunity to bear every imaginable idea, and February Judge Bernard Decker of the Fed­ to these differences. Even t.he most com­ to voice our opinions on any one. It protects eral District Court had swept away the re­ mitted civil libertarians were willing to con­ all ideas-popular or despised, good or strictions on the Nazis and warned against cede that the law might pro!Jerly restrain the bad . . . so that each of us can make a free the danger of "permitting the government to and intelligent choice." (Emphasis added.) decide what its citizens may say and hear." By Nazis had not act ually applied for a permit In Mr. Hamlin's understanding, it is a the end of March, however, Judge Decker to march in Skokie, the Court thought it matter of being "popular" or "despised": to issued a retraining order to postpone the premature to issue the restraining order. The be despised is to be "unpopular." It is ap­ demonstration (and. presumably, the "prin­ Nazis have now officially applied for a per­ parently no part of his own understanding ciple" he articulated) for another 45 days.* mit to march in June, and the question will that certain things are in themselves, in be posed again. Some observers on the scene principle, despicable. • Judge Decker's order was affirmed by an t hink the appellate court might well act in Mr. Hamlin is quite plain on the point that appellate panel of three judges, but then, on t he end to uphold a restraining order; but it we must be free to hear the Nazis in order the motion of the one dissenting judge, the appears now that the argument over the to preserve our freedom to choose the Ns.zts case was brought before the entire appellate restraining order will be made before the if we wish. But of course the Constitution court sitting en bane. The Court decided, on Supreme Court, at the same time that the was never meant to be neutral in this way a narrow point of law, to reverse the previous Court considers the appeal of Skokie in de­ about the choice between despotism and !ree decisions on the restraining order: since the fending its restrictions on the Nazis. government. The Founders understood that May 2, 1978 EXTENSIONS OF REMARKS 12271 the case for government by consent began narrow the holding in Chaplinsky. But as the If the police intervened and dispersed the with a self-evident truth grounded in nature; four Nixon appointees have continued to crowd outside the house, they would clearly as Madison put it during the first Con­ point out in dissent, that novel rendering be restricting political expression; and yet it gress, the natural equality of human beings­ leaves out half of the formula in Chaplin­ should be apparent that the police would be their capacity for self-governing-had to be sky-and the part that has given Chaplinsky quite justified in intervening. But if the law understood as an "absolute truth." And if its fuller reach and significance. can reach a case of this kind it is because it the political order was indeed established on Justice Murphy had not limited the hold­ is possible to recognize the nature of the a necessary, self-evident truth, the perspec­ ing in Chaplinsky to speech of a merely per­ words and gestures themselves, in the context tive represented by the Nazis simply cannot sonal nature that was likely to elicit vio­ in which they are used, and understand that be treated for a moment as plausible and lence. His judgment also encompassed words they were meant to intimidate or assault. legitimate. It cannot be regarded as plausible, "which by their utterance infiict injury," There has never been any serious doubt that is, without calling into question the even if they are not accompanied by overt that speech bears a special significance in a truth of those premises on which all con­ acts that involve a physical assault. In that republican system. Republican government stitutional rights depend. In the last anal­ respect the opinion served to remind us that, begins with the understanding that the ex­ ysis, then, it is a mistake to pretend that the in the strictest understanding of the law, ercise of political power over others must be Constitution is indifferent to the character "assaults" have not required bodily contact: justified, and it sets about to ensure, through and ends of the Nazis. they may be carried out just as effectively by a variety of devices, that people in positions What the Constitution commends, how­ assailants who deliberately stop short of of authority are compelled to offer justifica­ ever, may be one thing; what the Supreme touching the victim's body, as in the case of tions for themselves. The politics of a repub­ Court has wrought in recent years is an­ one who strikes at a person and intentionally lic is a politics that takes place through a other. At this moment our law faces in two misses, or one who points a loaded--0r for public discourse over political things. As our directions. On the one hand the Supreme that matter even an unloaded-pistol at an­ own Founders understood, it is very impor­ Court has eroded those standards that the other person. The assaults in these acts are tant, then, for a republic to preserve a proper law has used over the years to restrain as­ implicit in the gestures, and they may be freedom of discussion about the central con­ saults carried out through speech or expres­ punished even without waiting for bodily cerns of politics-Le., about the conditions of sion. A majority of the Court has even gone injury. justice in the society and the substantive so far as to suggest that there is no prin­ In that sense the case helped to remind ends of the state. The freedom to engage in cipled way to mark off forms of speech that us, too, that there is such a thing as psy­ discussion would be as large as any other are insulting or defamatory, as against forms chological injury or shock, which may be freedom properly exercised. It would be re­ of speech that are neutral or inoffensive. quite as grave-and as much of a concern strained only in those instances in which it Working on this assumption, the Court in the eyes of the law-as an assault on became the vehicle of injury (or "injustice") has made it very difficult to sustain one's body, or a broken leg. When all of these to others. At that moment, however, speech any local ordinance on "provocative" and points were taken together, the Chaplinsky could claim no more protection than any insulting speech, and, as a re­ case suggested in a rather compelling way other mode of freedom. The Founders re­ sult of the decisions that have been taken that people had a claim to be protected from jected the rule of the censor and the con­ in this vein over the last seven years, it does unprovoked or unjustified assaults (includ­ ventions of "prior restraint" on publication. in fact become harder to restrain the Nazis ing verbal or psychological assaults) when But they were uniform in their denunciation in their march in Skokie. they ventured into a public place. of a "licentious" press, and they assumed But on the other hand the Court has never That is not all there was, of course, to the that the laws of defamation (both civil and overturned the precedents that provided the Chaplinsky case, but Lt does suggest the criminal) would function as a form of re­ foundation at an earlier time for the restric­ features that have made Chaplinsky a case dress against the injuries that were inflicted tion of injurious speech. In fact, the Court of such enduring importance. In a far more through speech. has found it necessary in recent years to firm satisfying manner than any other court de­ And so, while the Founders understood up its commitments to those older prece­ cision, Chaplinsky was able to account for that a republican regime was a regime of dents; when it comes to the matter of con­ the grounds on which we would be justified public discourse and confiict, they under­ firming the power of local governments to in calling the police, for example, and order­ stood also that a republican regime was a restrain obscenity and public lewdness, the ing a crowd to "move along" in those cases regime of law before it was anything else. As Court has been compelled to explain, in a where nearly everyone would agree that the a regime of law its first obligation was to more traditional, familiar voice, that not all crowd should, in decency, be dispersed, even render justice: te> protect its citizens against forms of speech and expression can claim the though there is only speech or expression in­ harms that were infiicted on them unjustly, protection of the Constitution. volved. One need only imagine, in a hypo­ outside a process of law. The authority that the Court cites most thetical case, that a crowd gathers before the When it comes, therefore, to the American importantly on these occasions is the classic house of the first black family to move into Nazis and their freedom of expression, the case of Chaplinsky v. New Hampshire, which the neighborhood. No violence is initiated; obligations of the regime are nowhere near was decided by a unanimous Court in 1942. no rocks or bottles are thrown. The crowd as one-sided as libertarians suggest. To the In the passage that is cited most often from merely stands there, perhaps chanting in a extent that the Nazis have any legitimate that case, Justice Murphy argued for the low tone, and, as the day wears on, the role to play at all in the political life of this Courtthat- crowd may go long stretches in which it Republic-a proposition I indulge only hypo­ "There are certain well-defined and nar­ makes no sound at all. There is no breach of thetically-the most the polity is obliged to rowly limited classes of speech, the preven­ the peace, nor even anything that fits the do is respect their liberty to hold meetings, tion and punishment of which have never usual notion of a public disturbance. But conduct discussions, and make themselves been thought to raise any constitutional when the people leave the house they have part of the public discourse. But it is not problem. These include the lewd and ob­ to face the crowd, and the crowd simply obliged to let them make use of the public scene, the profane, the libelous, and the in­ stands there, intimidating by its very streets to carry the symbols of assault and sulting or "fighting" words-those which by presence. genocide to the very homes of the people their utterance inflict injury or tend to incite Since the crowd refrains from violence it who would feel most acutely and properly an immediate breach of the peace. It has might be said that it is engaged in a "peace­ threatened by them. been well observed that such utterances are able assembly" or perhaps even a form of These understandings may all arise with­ no essential part of any exposition of ideas, public protest. For despite the fact that the out strain on the premises of the law as it and are of such slight social value as a step harassment is aimed at a private family, the was-the law th'lt was built on the founda­ to truth that may be derived from them is gathering of the crowd has a larger political tion of the Chaplinsky case. The question at clearly outweighed by the social interest in significance: the aim of the crowd, quite this moment is whether those older premises order and morality." [Emphasis added.] clearly, is to have an effect on the character will be restored. The Court still relies, as I When the ACLU came to offer its brief for of the community by keeping blacks out. In have said, on the authority of Chaplinsky, the Nazis is Skokie it insisted that the con­ pursuing this form of intimidation outside but a majority bas abandoned the teachings cept of "fighting" words applied only to per­ the law, the object is to discourage the mem­ of that c::ise, and the abandonment became sonal epithets that arose in "face-to-face" bers of the family from exercising rights that manifest in 1971 with Justice Harlan's re­ encounters. For some reason it seemed to be are theirs in the law, and perhaps also to markable opinion in Cohen v. California. assumed that these personal encounters were frustrate the ends of a public policy that There is not enough space here to treat that more likely to "incite an immediate breach seeks to bring down the barriers to racial case in the detail it warrants or to chart the of the peace" (more likely, say, than attacks integration. The fact that the crowd refrains ways in which Justice Harlan managed to that were made on a whole racial or religious from speech or discussion is not enough in overturn every premise that was essential to group) . At the same time, since the test in itself to reduce the event to an instance of the doctrine in Chaplinsku. The case in­ Chaplinsky was narrowed to assaults of the "conduct" rather than "speech": it has al­ volved a young man who walked throu~h the most personal nature, it was argued that the ready been established over a long train· of corridors of the County Courthouse in Los holding was not meant to cover speech with cases that "expression" may cover symbolic Angeles wearing a jacket that bore the in­ a larger political significance. In these inter­ acts or gestures that involve no speech or scription "--- the Draft." Before it was pretations the ACLU was essentially follow­ writing at all: e.g., the rendering of a flag over, Harlan had sought to deploy the full ing the direction of the Court in recent years, salute, the burning of a draft card, the wear­ moral weight of the Constitution in order as a majority of the Court has sought to ing of an armband. to protect the "speech" on Cohen's jacket as 12272 EXTENSIONS OF REMARKS May 2, 1978 if it were a political statement on the order moral judgments were ultimately dependent valid political dialogue." The Chief Justice of the Federalist Number 10. And he could on nothing more than subjective feelings or surely must have known that, within the not accomplish that end without revising in personal beliefs, and therefore they could terms of Harlan's opinion in Cohen v. Cali­ a radical way the traditional understanding not be reckoned as true or false in any strict fornia, there would have been no basis on of "speech" (let alone the concept of pro­ sense. At most they were emotive statements which to restrain an act of this kind. priety). that conveyed a sense of likes and dislikes. Yet the law should be obliged to restrain In a reversal of Chaplinsky Harlan argued And so if someone condemned the use of this "expression," and it is Justice Murphy's that if speech contained a residue of political narcotics, all one could say is that he "dis­ opinion in Chaplinsky that explains, far significance it was presumptively protect ed, liked" the use of narcotics (much in the way, more persuasively than anything else, the no matter how injurious it may be, or how Mr. David. Hamil says, that the residents of grounds on which the law may be exercised void of substantive content. If the speech Skokie "dislike" the Nazis) . One could not in this case. The couple could be restrained was presumptively protected, the burden of prove, in this view, that it is ultimately from their public gesture without interfer­ avoidance fell to those who felt assaulted or "right" or "wrong" to use narcotics (or to ing in any degree with their freedom to make offended by it (and it was thought proper, in "dislike" the Nazis), any more than it is right any substantive arguments about the issues this light, to ask the victim to turn away or or wrong say, to like parsley. of the day. And because their sexual demon­ go elsewhere rather than ask the assailant to But as the linguists would explain, the stration is not strictly necessary to "the ex­ restrain himself in public). meaning of words cannot be as subjective position of ideas," the government might well But the conviction that any sign or ex­ and arbitrary as that. Moral terms have the be justified in acting out of a concern for pression was "political" depended on the re­ function of commending and condemning, the sensibilities of other people in a public liability with which it could be said that the approving and rejecting, and they cannot place. sign conveyed a point or stated an argument. play the role they do in our language--they It would take a complicated argument, In the case of Cohen, Harlan was convinced cannot initiate a process of reasoned dis­ however, to explain just why a public display that t he jacket was presenting a statement­ course over moral judgments-unless the of sexual intercourse should be taken as an no less-on a matter of public policy. Ac­ people who use these words understand, when injury or offense to the public. The argu­ cording to Harlan, what Cohen was doing they use them, that they are condemning or ment could be made, but it would be far with his jacket was "asserting [a] position commending a course of action to others. For more difficult than the argument that is on the inutility or immorality of the draft." that to be so, the words that serve the func­ needed to explain why Nazism is a wrong and And yet it should have been apparent that tion of commending and condemning must why the presence of the Nazis in Skokie in­ " • • • the Draft" did not necessarily mean be established rather plainly in common fiicts injuries. The wrongness of Nazism is either one of those things-that the draft was usage. The meaning of words, of course, may of course separate from the palpable in­ "immoral" or "inutile." Very likely it meant alter over time, and many pejorative terms, juries that the American Nazis foster with neither. The profanity on the jacket, like like "robber" or "thief," may be uttered in their presence in the streets; but those in­ mcst expressions that have acquired the sta­ jest, or in circumstances that render their juries are clearly present. tus of "swear words," had a certain coarse­ meaning innocent . But at any given moment, A Supreme Court that knows why the ness to it that was an important part of its anyone who lives with a language every day couple may be restrained should be able to meaning and of the purpose for which it was must have a fairly reliable sense of the words explain also why the Nazis may be restrained. used. There was no substantive argument that are fixed very clearly in the language as The only question is whether the Court is about the military draft that Cohen would terms of insult and defamation, and the ex­ prepared to overcome its recent distractions have been prevented from ID.3king if he had pressions that may be on the borderline be­ and admit to itself more fully that the teach­ merely been asked to remove his jacket (and tween derision and neutrality. ing of Chaplinsky cannot be effaced in any his sign) in a public place. And for the same If there is any lingering disposition to society that would preserve the integrity of reason, there would be no decent substantive believe that offensive words or verbal assaults its public discourse and preserve itself be­ argument that the American Nazis would be are entirely subjective in character, one need yond everything else, as a decent society. prevented from making if they were merely only apply this simple test: Ten years ago For years, the ACLU has professed to be­ restrained from carrying out a provocative Governor George Romney was running in the lieve, with Justice Holmes, that "the best test march into the Jewish neighborhoods of presidential primary in New Hampshire, and of truth ls the power of the thought to get Skokie. in the of the campaign he referred to itself accepted in the competition of the But Harlan's opinion in the Cohen case Senator Percy of Illinois as an "opportunist." market." 1 With all proper allowances for that ruled out this traditional understanding be­ When Percy took offense Romney sought to curious proposition, one may still ask: What cause it denied at its root that there were repair the damage. He explained that, when unresolved issue in the marketplace of ideas knowable differences any longer between de­ he called Percy an "opportunist" he simply may the Nazis help to settle for us? In the cent and indecent expression. "One man's meant that Percy was an intelligent man who judgment of the ACLU, is there something in vulgarity," said Harlan, "is another's lyric," took advantage of his opportunities. That is the perspective of the Nazis which has a and it was precisely " because governmental to say, he was merely "describing" Percy plausible claim to truth? If we restrict the officials cannot make principled distinctions rather than judging him, and if anything, he speech of the Nazis is it conceivable that we in this area" that the Constitution left these suggested, his remark should have been taken may shield ourselves from ideas that may "matters of taste and style so largely to the as a compliment: he was actually commend­ turn out one day to be valid? Is it possible, individual." What Harlan denied, then, was ing Percy for alertness in rising to opportuni­ for example, that a convincing case could the existence of any standards for ident ify­ ties. yet be made for genocide if people were given ing speech that was truly offensive, because The measure of one's wllllngness to believe, a bit more time to develop the argument? the offensiveness of the words depended en - with Justice Harlan, that expressions of in­ Might it be that the commitment to a dem­ tirely on the subjective feelings of the people sult or defamation depend on nothing more o ~ratic regime itself stands on premises that who heard them. And t herefore it could only than the subjective feelings of the people may be shown one day to be doubtful? be, as he remarked, that the decision f!.S to who hear them, is one's wllllngness to be­ These possibllities could not be ruled out what langauge is fit for a public place must lieve Romney's account of what he meant. if, in fact, all judgments of moral right and be left "largely [in) the hands of each of us." These understandings were part of the wrong rested on nothing more than "opin­ With the full sweep of Harlan's opinion p erspective that was bound up with the ion." But the wrongness of genocide arises one comes to discover what it takes these Chaplinsky case, and the question again is, from the concept of morals itself, and there­ days to gain a reputation for "modernity" Where does that case now stand in our law? fore no amount of discussion, now or in the and innovation in certain quarters of the Two years after Justice Harlan's opinion in future, could possibly have any effect on its legal profession: it requires the absorption, Cohen v. California, the Supreme court con­ moral status. The wrongness of the act in­ with an unwonted suddeness, of novel doc­ firmed a wide latitude of power to local gov­ heres in the willingness to put to death a trines of philosophy thirty years after they ernments in the regulation of obscenity. The whole group of people with no reference to have been discredited in the schools of phi­ Court invoked the Chaplinsky case as the criminal acts, with no discriminations to be losophy. Long after the doctrines of "logical foundation for its judgment in Paris Adult made between the innocent and the guilty. positivism" have lost their adherents in the Theatre v. Slaton, and, in his opinion for the Genocldo will continue to be wrong as long as academies, the discovery of these doctrines majority, Chief Justice Burger made it ap­ the notion of morals itself exists-as long as by Justice Harlan has been taken by many parent that the invocation was more than it ls possible to speak of the difference be­ lawyers as a revolution in the law. The ex­ a ritualistic exercise. Burger's substantive tween innocence and guilt, of the difference perience may merely remind us of the dis­ comments on the case followed the logic of between klllings that are justified and those tance that has separated the schools of law the under3tanding in Chaplinsky, and indeed the are unjustified. from the discipline of philosophy, and it may he seemed intent on pressing the point that confirm what has often been suspected: that the logic of Chaplinsky simply could not be In the · meantime, however, the ACLU much of what passes these days as juris­ displaced from the law: for the benefit, ap­ is helping to preserve the Nazis as an estab- prudence is really nothing more than third­ parently, of some of his colleagues, the Chief rate philosophy. Justice observed that the "live" perform­ 1 The self-contradictions contained in this At the risk of oversimplification it may ance of a man and woman locked in a sexual proposition have been dealt with quite well suffice here to say that the "logical positiv­ embrace at high noon in Times Square by Walter Berns in "The First Amendment ists" were disposed to argue, with Justice [would not be] protected by the Constitution and the Future of American Democracy" Harlan, that statements which conveyed because they simultaneously engaged in a (Basic Books, 1976) . May 2, 1978 EXTENSIONS OF REMARKS 12273 lished part of the public arena, and the pub­ prayer breakfast that included a message WATER CONSERVATION lic lessons that are drawn from the experi­ delivered by the newly appointed Direc­ ences are not apt to be wholesome. If the tor of the Federal Bureau of Investiga­ ACLU bends its efforts, after all, to support tion, Mr. William H. Webster, whose HON. DON EDWARDS a right of the Nazis to march, what other OF CALIFORNIA lesson does it hope to teach but that the discussion of American religious prin­ Nazis must be regarded as legitimate-that ciples was deeply moving and inspiring. IN THE HOUSE OF REPRESENTATIVES their claim to exist and speak stands on the At the conclusion of the breakfast, Tuesday, May 2, 1978 same plane of legitimacy as that of any other FBI Director Webster was presented with group within the country. But if the Nazis a tribute from the U.S. Chamber of Com­ • Mr. EDWARDS of California. Mr. are legitimate, they cannot be dismissed out merce. I would like to bring this tribute Speaker, on Friday, April 28, 22 of my of hand as implausible, and if the perspec­ California colleagues and I sent a letter tive they represent is regarded as plausible, to the attention of my colleagues. The text follows: to President Carter urging him to include then the self-evident "truth" on which the water conservation as the key concept in American regime is founded cannot in fact be TRIBUTE TO THE FEDERAL BUREAU OF a "truth." It must be merely an "opinion," INVESTIGATION our national water policy. The Western no more or less likely to be true than any States have recently completed one of Public statement supported by the dele­ the worst droughts in recorded history. other "opinion" about the nature of a good gates attending the 66th annual meeting of political regime, including the "opinion" the Chamber of Commerce of the United While water conservation must remain represented by the Nazis. States, May 2, 1978. an important aspect in water utiliza­ But the consequence that arises from this "Delegates to the 66th annual meeting of tion in the Western States, it must also understanding was set forth long ago by the Chamber of Commerce of the United become a key ingredient of water usag-e Lincoln: If democracy were not founded on States strongly urge the Carter Administra­ in the eastern section of the United a natural truth--0n the capacity of human tion and the Congress to resist efforts to beings for moral judgment--then it had to be States. politicize the FBI and to avoid making it a The time has come for all Members founded merely on "opinion": it had to public scapegoat or otherwise weaken this arise merely because it was the form of institution, which is so vital to the protec­ of Congress to join together in support­ government that happened to be approved tion of our system of government and a way ing the President's efforts to emphasize by the opinions of a majority. And if the o! life. the necessity of water conservation in opinions of the majority were the only au­ "Over the years, the FBI has undertaken the daily lives of all Americans. thoritative source of law, there could be no the responsibility of protecting our national ground on which one could challenge the de­ For the record, I have included the security in order to assure the rights of all text of the letter which was sent to Presi­ cisions of a majority in the name of a more citizens. fundamental law. It would be within the "We must be vigilant to ensure that transi­ dent Carter. I have also inserted a news competence of a majority, then, to forgo tory political events do nothing to undermine article which appeared in the May 1978 democratic government for the entire society the FBI strengths or effectiveness. We ap­ issue of Consumer Report entitled, or to withdraw the protections of the Con­ plaud FBI agents and their devotion to duty, "Water: Time to Start Saving?" I am stitution from any minority. The irony is even under criticism and salute their long sure all my colleagues will be interested that the ACLU sees itself as defending at this record of distinguished service and urge their in reading about the changes which have moment the freedom of a minority, but the continued dedication to the protection of in­ occurred in northern California with re­ principles on which it mounts that defense dividual rights and our free society." e would cut the ground out from under con­ gard to water conservation practices. stitutional government itself and, in that HOUSE OF REPRESENTATIVES, sense, would also imperil the freedom of all Washington, D.C., April 26, 1978. minorities. JIMMY CARTER, Nearly two hundred years ago, when a U.S. OIL DRILLING EQUIPMENT TO The President, The White House, Pennsyl­ current of calumnies directed at Catholics RED CHINESE vania Avenue, NW, Washington, D .C. was running through England, Edmund DEAR Ma. PRESIDENT: In your announce­ Burke observed that "if it exists at all [in ment of the review of the National Water Bristol, the city he represented], the laws HON. JOHN M. ASHBROOK Policy, you stated clearly and correctly that h ave crushed its exertions; and our morals OF OHIO water conservation must be the cornerstone h ave shamed its appearance in daylight." CN THE HOUSE OF REPRESENTATIVES for future water resource development plan­ Burke spoke here out of a tradition that ning. regarded the injuries inflicted through Tuesday, May 2, 1978 As you know, California has recently begun speech and expression as a species of in­ e Mr. ASHBROOK. Mr. Speaker, the to recover from its extended drought. During justice and the law was obliged to restrain. United States is continuing to export its that time though, many eyes were opened But he also understood the connection be­ with regard to preserving this precious na­ t ween t he law and the climate of opinion vital technology to the Communist tional resource---water. We urge you to in­ that could support the law and render its world. The latest transaction is with clude water conservation as the key concept strenuous exercise less necessary. As the Red China. in our National Water Policy. Like energy, we ACLU seeks now to resist the use of the law According to the Washington Post, the must work together to best utilize this lim­ in restraining acts of assault and intimida­ Peking regime has purchased the larg­ ited resource. tion, it is also seeking to alter in a radical est piece of oil drilling equipment it has We, the undersigned California Represent­ way the understanding of the public about ever brought from an American firm. The atives, encourage long-term water conserva­ the foundat ions on which its own freedom is sale, estimated at $25 million, was of a tion as the keystone to a comprehensive Fed­ established. The result o! this teaching, eral Water Management Program. however, is to render those foundations less jackup offshore oil rig. The rig is cur­ rently under construction in Singapore With kindest regards. firm, the measure of the difference between Sincerely, our age and Burke's is that the lawyers and by a company 70 percent owned by Don Edwards, George E. Brown, John professionals who have borne the largest Bethlehem Steel. Moss, Ronald V. Dellums, George Dan­ responsibility for the preservation of con­ The new equipment is suitable for ielson, Charles E. Wiggins, Edward R. stitutional government no longer seem to drilling in up to 250 feet of water. A Roybal, Bob Wilson, Del Clawson, understand the moral premises on which that special feature is its legs which, resting James Corman, Fortney "Pete" Stark, government rests.e on an A-shaped steel mat, permit it to George Miller, Anthony Beilenson, be used in areas where other oil rigs Pete Mccloskey, Mark W. Hannaford, would sink into soft sand sea bottoms. Leon Panetta, Phillip Burton, Don Clausen, John L. Burton, Carlos J . ENHANCING FBI EFFECTIVENESS Other U.S. oil rig building companies Moorhead, Norman Y . Mineta, Jerry M. are now trying to get into the act. Liv­ Patterson, and Augustus F. Hawkins. HON. MARGARET M. HECKLER enston Shipyards of Orange, Tex., has reportedly sent representatives to Pe­ [From Consumer Reports, May 1978] OF MASSACHUSETTS king to resume negotiations on purchase WATER: TIME TO START SAVING? IN THE HOUSE OF REPRESENTATIVES of more jackup rigs. The sale of our most sophisticated Newspaper accounts told the story: "Res­ Tuesday, May 2, 1978 ervoir levels falling again." "First violator technology to Communist nations is im­ of ban on swimming pools pleads guilty." • Mrs. HECKLER. Mr. Speaker, at the possible to justify. It only adds to their "Many sends letters of advice to city officials annual meeting of the Chamber of Com­ growing military might. The real winner on saving water." Those reports might have merce of the United States, I had the in this transaction is Red China, not the appeared last year in California, but they honor this morning of taking part in a United States.• didn't. They date back to 1965, when a 12274 EXTENSIONS OF REMARKS May 2, 1978 drought threatened New York City's water Tucson, for example, is filled with gurgling kits, which included low-flow shower heads supply. fountains, and residents there use hundreds and bottles to put into toilet tanks. More As New Yorkers learned then, and as Cal­ of gallons of water each day to keep their than 90 percent of Marin water-users took ifornians found out two years ago, a water lawns green. The state's golf courses each the kits and, apparently, used them. In addi­ shortage can hit anywhere and at any time. drink up about 160 million gallons of water tion, people stopped running water when But the lesson rarely sticks. Most people a year. brushing their teeth, shaving, or soaping up think about water only when a drought Under Arizona law, ground water must be in the shower. Vegetables were washed in a threatens to make the taps run dry. For put to "reasonable" use, but no one has yet pan and the water reused; dishes were rinsed the most part, water has always been con­ been able to establish a use that isn't rea­ in a pan of clean water instead of under the sidered a free resource of unlimited avail­ sonable. As one water official told CU: "If faucet. Many people followed some extreme ability in this country-an attitude that someone is willing to pay the cost of the measures: They took buckets into the shower might have made sense years ago, but one water, the use has to be reasonable because with them to catch "gray" water, which we can't afford today. he's paid for it." could then be used to flush toilets or to water Environmental considerations now re­ Homes, farms, and businesses in Arizona gardens. strict the building of new dams; the cost of draw some water from lakes, rivers, and the The result: Marin County residents re­ new reservoirs and sewage treatment plants like, but much of the state's water supply duced their water consumption by 65 per­ are increasing rapidly; and the population comes from under the ground. The state's cent last year. Only 5 percent of water-users, is shifting to the Sunbelt states, where wa.ter population more than doubled between 1950 including many businesses that couldn't re­ is scarcer. According to the Water Resources and 1970, and may double again by 1990. All duce their usage, exceeded their quotas. Council, an independent Federal agency, those new water-users are pumping water AFTER TH:=: DROUGHT : A GOOD OMEN there could be "critical" water problems be­ out of the ground at a furious rate. Each Once the drought ended, so did the water tween now and the year 2000 in Arizona, year, Arizonians a.re removing 715 b1llion California (a~ain), Florida, Kansas, Nebras­ restrictions. California's water problems more gallons of water than can be replaced ended so dramatically that, over one week­ ka, Nevada, New Mexico, Utah, Wyoming, by rainfall and other sources. and parts of the Pacific Northwest. end, an office in Sacramento changed its In Tucson, wells must be sunk 100 to 300 name from "Drought Information Center" to The nation's view of water as an un­ feet to strike water, even near stream beds. limited resource is changing-but slowly. A "Flood Control Center." However, many Cal­ The water table in Tue.son has been dropping ifornians seem to have retained their water­ few areas not normally associated with more than 2.5 feet a year, on average, and shortages are becoming more careful about saving ways. In Marin County, for example, as much as 12 feet in some areas. No one water consumption was still running 45 per­ water usage. Near Washington, D.C., for ex­ knows how long it will be financially feasi­ ample, the Washington Suburban Sanitary cent below pre-drought levels when this ble to keep pumping up ground water, or issue went to press. Commission has been promoting voluntary whether water quality will deteriorate as the water conservation for several years and re­ The way Californians have incorporated wells go deeper and deeper. the need to save water into their daily lives cently introduced a new rate schedule de­ In this situation, you might expect Arizon­ signed to hold down consumption. In New is a positive sign for conservation efforts ians to pay close attention to water conser­ elsewhere. It is possible to save water with­ York, the LQng Island Lighting Co. has sent vation. Not so. La.st year, the Tucson city shower flow restrictors to its 800,000 residen­ out sacrificing comfort or convenience, and council voted four to three to increase water at minimal expense. tial customers, a step intended to reduce rates. As a result, one of the four-member both water use and the demand for fuel to The place to start is the bathroom, since majority resigned from the council, and the bathing and toilet-flushing together account heat water. And some local plumbing codes other three were recalled by overwhelming are being changed to require the use of for nearly three-fourths of the water used votes. inside the house. In the report that follows, water-conserving toilets, faucets, and show­ Meanwhile, Arizona's water table continues ers in new or remodeled hOines. we discuss an array of devices-both home­ to drop, causing the land to sink-with po­ made and commercial-that should save WHY CONSERVATION MATTERS tentially disastrous results. As a report on water when the toilet is flushed. A compan­ Though it's difficult to measure the na­ Tucson's water situation noted: "Where the ion report, beginning on page 300, rates a tion's water usage precisely, one estimate land subsides at uneven rates, fissures as broad sampling of devices that allow you to put total water consumption in 1975 at 106.6 much as three feet wide may develop, road­ shower with less water. e billion gallons per day. Of that amount, city beds may be offset, and water, sewer, and and rural domestic water supplies took just gas lines may be broken." 6.3 billion gallons, while 86.4 billion gallons LIVING WITH LESS went for agriculture, largely for irrigation. Even though the recent drought in Cali­ Those figures would seem to indicate that NEW FARM BILL BENEFITS SYN­ even a dramatic cut in water usa.ge by house­ fornia involved nothing as catastrophic a.s THETICS EVEN MORE THAN COT­ holds would add only a drop to the bucket gaping cracks in the earth, the situation was TON of water available-or at most not more than serious enough. To deal with the two-year­ a cup. long shortage, California communities insti­ However, the statistics mask the fa.ct that tuted strict rationing, and public conscious­ HON. PAUL FINDLEY ness about the need to save water became conserving household water can be beneficial OF ILLINOIS acute. As one San Francisco newspaper col­ in a number of ways that have nothing to do IN THE HOUSE OF REPRESENTATIVES with your own utUity bills. (If you conserve, umnist wrote, "The borrow film of the year you will save a little on your water bill, and, on TV was Hitchcock's old 'Psycho,' not be­ Tuesday, May 2, 1978 assuming you use less hot water, you could cause Janet Leigh was stabbed to death in save quite a bit more on your gas or electric the shower, but because she left the water e Mr. FINDLEY. Mr. Speaker, the Cot­ bill.) running." ton Economic Review published by the An overall reduction in water use would Marian County, an amuent suburban area Economic and Market Research Depart­ mean that more homes could be built in a across the Golden Gate Bridge from San ment of the National Cotton Council given area without adding new water sup­ Francisco, began a mandatory rationing of America reported on April 28 that de­ plies. That can be important because find­ program early in 1976. Car-washing was spite an increase in retail sales of 1.9 ing new water supplies and delivering the banned, along with such other wasteful percent and an increase in personal in­ water to customers is expensive. In many practices as the use of sprinklers to water areas, water is delivered to houses through lawns and gardens. This limited program cut come of 1.2 percent in March, U.S. mill costly pumping facilities; building new stor­ water usage by slightly more than 25 per­ consumption of cotton dropped 8.5 per­ age and distribution facilities for fresh wa­ cent, but it became clear that the reservoirs cent below the previous month and con­ ter isn't cheap or easy, either. Those a.re costs could run dry by the end of 1977 unless sumption for the first quarter of 1978 was everyone will pay, in one way or another. stronger measures were taken. running at a rate of 6.57 million bales In arid regions, where rainfall or ground The goal last year was to reduce water compared to 6.8 million bales in 1977. water is insufficient to meet increased de­ consumption by 57 percent. County water officials gave each customer an allotment of For the quarter cotton's market share mand, there may soon be a need to use sea shows cotton losing competitively both water-but removing the salt is an expensive water, based on the number of people in the and energy-intensive process. Finally, reduc­ household. One person living alone, for ex­ in total markets share and in the staple ing water usage eases the load on sewage ample, would get 49 gallons per day; a family sector. plants and moderates the cost of sewage of three would get 129 gallons. (Before the The conference report we consider this treatment. Some people pay for both water drought, a three-person family used an week is good news for DuPont and Cel­ and sewage treatment, and the cost of treat­ average of 320 gallons a day.) To maintain anese as the effort to keep the cotton ing sewage is increasing along with the cost those quotas, stiff new water rates were im­ price loan at a minimum level or 48 cents of fresh water. , posed. The basic rate was doubled; anyone who used up to twice the quota pa.id more per pound through 1981 gives these syn­ "REASONABLE" OR WASTE WATER USE? than eight times the old rate, and usa.ge thetic manufacturers the same floor for The current situation in Arizona shows beyond that cost 40 times the pre-drought their polyester staple. Our purpose clearly how a water crisis can develop un­ rate. should not be to subsidize large multina­ less people begin to use water more wisely. The county also offered free water-saving tional petrolchemical giants. We must May 2, 1978 EXTENSIONS OF REMARKS 12275 consider the full impact of the cotton Actual U.S. exports of cotton amounted to Let us keep cotton competitive in U.S. section of the conference report. It sim­ almost 704,000 running bales in March, the and world markets in its battle with for­ highest monthly total since March 1974; eign produced cotton and synthetic fi­ ply will not benefit cotton in its battle The Census Bureau's report on cotton with synthetic fibers and foreign pro­ stocks indicated that nearly 1.1 million run­ bers. We can continue to do so by defeat­ duced cotton. ning bales were in process of moving from ing this conference report or by severing COTTON CONSUMPTION DECREASES public storage warehouses to mills, ports and the cotton section from the report.• The detail; of National Cotton Council other shipping points at the end of March analysis of this situation show that: 1978. U.S. mill cotton consumption (seasonal­ The Council report notes the USDA INCOME REDISTRIBUTION AND ly adjusted annual rate) slipped below 6.5 attempt last month to reduce 1978 cot­ CARTER ADMINISTRATION million bales in March compared with near­ ton plantings by making available pay­ ly 6.7 milUon in February. Cotton's market ments to producers for not planting a share recovered in March, however, to 26.9 percent of all fibers consumed and 43.5 per­ certain percentage of their crop. The re­ HON. TOM HAGEDORN cent of staple fibers. That compares with part states: OF MINNESOTA 25.5 and 41.fi percent of all fibP.rs and staple Since the Carter Administration outlined IN THE HOUSE OF REPRESENTATIVES fibers respectively in February. its new farm policy on March 30, several For the full first quarter, cotton's annual modifications have been announced -that a.f­ Tuesday, May 2, 1978 rate of consumption was 6.57 million bales fect cotton: •Mr. HAGEDORN. Mr. Speaker, while compared with 6.8 million a. year earlier and (a.) On April 6, Secretary Bergland re­ it has not always been easy to identify 6.74 million the previous quarter. Quarterly vised the voluntary paid deversion program common threads in the economic policies market share results show cotton losing com­ for cotton.. The change specified that, to petitively both in the total market and in be eligible for diversion payments, a farmer's of the Carter administration, there does the staple sector. At 26.1 percent, cotton's planted acres in 1978 plus diverted areas seem to be at least one discernible prin­ share of all fibers consumed was 1.6 percent­ could not be greater than his 1977 planted ciple-an abiding belief in the rightness age points below its first quarter 1977 share acres. (The initial announcement specified of income redistribution. The only appar­ and 1.2 points off the fourth quarter share. that 1978 planted acres could not exceed ent objective of many of its programs The appended table shows similar market 1977 plantings.) seems to be the transfer of income from share losses in the staple sector. (b) On April 12, USDA instructed ASCS those who have earned it to those who It is also instructive to look at consump­ offices to approve voluntary diversion pay­ have not. tion on the cotton system where cotton's ments for cotton farmers who in compliance closest-but certainly not its entire--com­ with the March 30 announcement had: I would like to insert in the RECORD a petition occurs. Consumption of a.11 fibers 1. Filed an intention to participate in the short study by Roger Freeman and Alvin on the cotton system was virtually un­ upland cotton voluntary diversion program Rabushka of the Hoover Institution at changed between March 1977 and March on a fa.rm on which cotton in excess of 90.9 Stanford University examining the re­ 1978. But cotton consumption dropped from percent of the 1977 planted acreage had distributionist elements of the Carter a seasonally adjusted annual rate of 6.8 mil­ been planted prior to March 30, 1978, or program. They conclude that the policies lion bales a year ago to 6.57 million in 1978's 2. Planted an acreage of upland cotton of the administration will succeed only first quarter. The result was a market share of more than 90.9 percent but not in excess loss of 2.2 percentage points to 59.9 percent. at the "expense of initiative, respect, and of the 1977 planted acreage, or a healthy productive private enterprise With eight months' data for the cur­ 3. Took irreversible actions such as apply­ rent season now in hand, USDA's devised ing herbicide, fertilizer, etc. in preparation economy." U.S. mill consumption estimate of 6.7 million .for planting an acreage of upland cotton INCOME REDISTRmUTION EFFECTS OF PRESIDENT bales seems optimistic but, perhaps, attain­ of more than 90.9 percent but not in excess CARTER'S LEGISLATIVE PROPOSALS: AN OVER­ able. The annual rate of consumption will VIEW have to average a much improved 6.85 mil­ of the 1977 planting acreage. (Mere tlllage of the land will not sumce.) During his presidential campaign Jimmy lion bales for the remaining 4 months to Carter was regarded a way-out liberal by reach the estimate. The Department has extended through May 15 the sign-up period for 1978 programs. some, a staunch conservative by others. On EXPORTS REMAIN STRONG The two-week extension was made because the whole, he managed to come closer than The Council analysis further shows of program changes. any of his competitors to being all things to that exports continue to be strong. Will Following the April 12 instructions to all people. He declared his dedication to lim­ this situation remain constant? Possibly ited and smaller government and simulta­ ASCS omces, USDA noted certain abuses of neously espoused dozens of huge new or not if the cotton loan departs from its the liberalized eligibility provisions and said expanded social programs. relationship to the world price. We estab­ it might be necessary to issue stricter guide­ After a year in the Presidency, he still lished the cotton loan as a percentage of lines. At press time, however, no new rules seems to be fighting on both sides of the ideo­ world price starting with the Food and had been received by local ASCS omces. logical fence. In his State of the Union Mes­ Agricultural Act of 1965, because we had Mr. Speaker, the report attempts to sage of January 19 he said: "We need to a carryover of some 16 million bales of analyze this USDA action on 1978 plant­ realize that there is a limit to the role and cotton at that time. We should not take ing intentions and concludes that: function of government.... Government the :flexibility from the cotton loan for­ cannot eliminate poverty, reduce inflation, 1978 cotton acreage diversion program, as save our cities, cure llliteracy, provide energy, mula. Farmers have enjoyed progressive­ such is not expected to result in a reduc­ or mandate goodness.... We should rely ly increasing income since we made a tion of as much as one-half million acres in principally on the private sector to lead the turn toward a market orientation for actual plantings in 1978. economic expansion and to create new jobs cotton with the 1965 act, and which we for a growing labor force. . . . " No conserva­ continued with the acts of 1970, 1973, Keep in mind that the 10 percent in­ tive could have said it better. and 1977. A lack of :flexibility could leave crease in the loan rate from 44 to 48 Then Mr. Carter proceeded to demand-as use with future excessive cotton pro­ cents per pound could spur additional he had throughout the preceding 12 duction geared not to market, but to loan plantings by producers with rela­ months-a series of programs to make Amer­ tively low costs of production in the icans more dependent on a perpetually grow­ infiexibly high loan levels. ing and more powerful government. In his Let us stay with the existing cotton Southwest, particularly in the state of Texas which has the highest level of campaign he promised to restrain govern­ program which is providing cotton pro­ mental in-owth-but as one of his first acts ducers their income from the market­ production equalling almost 50 percent as President boosted the Federal budget by place. The Council report on the healthy of production nationwide. Farmers have $19 million. export situation states that: until May 15 to make their planting In January 1978, President Carter declared, Several recent developments related to the decisions. "I do not believe in wage and price controls," cotton export market suggest that U.S. cotton Cotton producers sought the paid di­ but he continued to insist on controlling export activities will continue at a. relatively version program in order to cut back prices of domestic natural gas and crude on. lively pace into the final quarter of the acreage and hopefully strengthen prices. U.S. News & world Report on October 1977-78 marketing year. Additional production encouraged by 17, 1977 wrote: "After almost nine months in The omcial USDA export projection for this one of the world's most visible jobs, Jimmy this season was raised from 5.0 to 5.5 mlllion arbitrary increase in the loan to a Carter remains as big a puzzle as ever ln his bales; :floor price of 48 cents will serve as a own· country and abroad. In fact, uncertainty Total export commitments for the season price depressant. Surely cotton farmers about what makes the President tlck, about increased to 6.2 milUon bales a.s of April 16, would not like to see such a turn of his personal philosophy and about the goals the highest level since 1973-74; events. of his administration may be even stronger 12276 EXTENSIONS OF REMARKS May 2, 1978 in some quarters than when he took omce Historically· much of the redistribution of And fourth, there has been a dramatic in January." A keen observer in the field of property, between nations and within na­ shift of income from ownership to employee foreign policy exclaimed: "On Monday, tions, has been accomplished by violence-­ compensation since 1950 with the share of Wednesday and Friday he is for the Arabs, on robbery, revolution or war. Progressive taxa­ ownership-corporate profits, proprietorship, Tuesday, Thursday and Saturday for the Is­ tion a.nd social spending through cash trans­ rental lncome--cut to half. This is indicated raelis, and on Sunday he goes to church." fers and public programs appear now to have by the distribution of national income However, if we eschew his rhetoric and become a more popular and more widely (which does not include transfer payments): submit his domestic programs to a close used method of achieving by the legislative analysis of what they will do, rather than process what previously could be obtained TABLE 11.-DISTRIBUTION OF NATIONAL INCOME IN THE what they are supposed to do-we find Mr. only by individual productive effort or UNITED STATES BY MAJOR SECTORS, 1950 AND 1977 through dispossession by force. It amounts Carter less of an enigma. A common denomi­ [In percent) nator, a common threat, runs through most to winndng at the voting booth what was not of his proposals on domestic affairs. It is achieved by blood, sweat and tears. In- De- sometimes explicit, more often implicit. It is TRENDS IN INCOME DISTRmUTION the standard populist aim of redistributing Economic sector 1950 1977 crease crease income and wealth from those who earn it Four major points need to be made about to those who yearn it, or, more specifically, the nature of income redistribution in the Employee compensation.__ 65. 5 76. 1 10. 6 ______from those who produce it to those who United States in the past quarter century. ======mean to consume it. It is a redistribution First, the number of persons below the Corporate profits ______14.3 9.2 ------5.1 poverty level in the United States has Proprietors______16. 3 6. 4 ------9. 9 from producers to nonproducers, though Rental income______2.9 1. 7 ------1. 2 sometimes only from those who produce dropped from 40 million to 24 million since more to those who produce less. This means 1959, cutting its percentage of the general Total ownership____ 33. 5 17. 3 ------16. 2 population in half, from 22.4 percent to 11.4 Net interesL------1. 0 6. 6 5. 6 ------that it is not always redistribution to those percent.• This trend was considerably in­ at the very bottom of the income scale. Grand total______100. 0 100. 0 16. 2 16. 2 In the United States, as in other industrial fluenced by the expansion of income main­ nations, the shape of income distribution tenance programs. has changed from a pyramid to a pear, with Second, shares in the aggregate income by Source: Economic Report of the President, 1978. the great majority of the people not at the quintiles have changed only at the top and The nature and strength of economic and low end but toward the center. This means bottom end over the past quarter century. political forces at work give no indication that the majority of the voters are not at the The share of the lowest one-fifth of families that the trends in distributive changes over bottom end but closer to the middle. Thus went up from 4.5 percent in 1950 to 5.4 per­ the past quarter century will alter signifi­ more redistribution to the very poorest of cenit in 1975 (20 percent growth) and the cantly in the immediate future. Goals and families--though it may sound more com­ share of the highest one-fifth of fammes de­ legislative proposals of the Carter Adminis­ passionate and charltable--is no longer the clined from 42.7 percent of pre-tax income tration will, if enacted, in all likelihood tend definitive goal. There simply aren't enough in 1950 to 41.1 percent in 1975 (a 4 percent to shift income from higher to lower income votes at the bottom of the income scale. drop) . The second, third and fourth quintiles recipients, though not necessarlly to the low­ What we see increasingly, is a middle class remained stable. est income group, as demonstrated in the welfarism. a redistribution for the benefit of Third, significant changes have taken place various analyses that follow. fam111es just below or at the middle of the between the major economic sectors (see scale--ftnanced by the most productive and Table I) . The share of owners--from divi­ CARTER PROMISES AND PROPOSALS dynamic elements in our society-those dends, business proprietorship and rental­ In March 1977 the White House released whose activity makes the difference between dropped sharply by more than half over the a 111-page compllatlon of about 600 promises rapid economic growth and stagnation. past 27 years, while the share of labor made by Mr. Carter during his presidential The goal of redistribution from the top is slightly increased (the increase was reduced campaign. Some of those promises have since largely illusory-there is not enough money by larger Social Security contributions). been translated into legislative proposals to among the small group at the top to benefit Most of the gain was in transfer payments the Congress or other types of action, some significantly the far larger numbers below. and personal interest (due to growth in sav­ have quietly been dropped, some are incon­ Taxes which may seem to be paid by the rich, ings and interest rates). This amounts to a sistent with others and may never again see in the end will largely be borne by those in major income shift from producers to non­ the light of day, and the remainder remain the middle. That satisfies the desire "to hit producers. the man with the top hat" and provides the in limbo. funds to make the recipients feel that they TABLE 1.-DISTRIBUTION OF PERSONAL INCOME IN THE On December 17, 1977, the White House re­ are getting something for nothing. Actually UNITED STATES, BY MAJOR SECTORS, 1950 AND 1977 leased a summary and outline of the Presi­ dent's domestic legislative activities for the we have gone so far in this game that it is [In percent) largely no longer a case of robbing Peter to first year of his administration. Major pro­ pay Paul but of robbing Peter to pay Peter. posals on the list include energy, welfare re­ In- De- form, Social Security refinancing, and eco­ It's done with mirrors. But done cleverly, it Economic sector 1950 1977 crease crease seems to pay off politically. nomic recovery-the "stimulus package." On January 21, 1978, Mr. Carter added to this After all the income redistribution, the Labor ______family in the middle--and that is the great 66. 7 70.2 3.5 ------list as he sent his tax message to the majority-pays in the end for what it gets. Social security contributions -1.3 -4.0 -2.7 ------Congress. For a hefty brokerage fee for its money's Net labor income _____ 65.4 66.2 .8 Most governmental actions have the po­ round trip to Washington, the family finds ------tential of affecting income distribution in one its actions and its decisions increasingly con­ Corporate dividends ______3.9 2. 7 1. 2 way or another, and President Carter's pro­ Proprietors ______11. o 10.6 posals are no exception. The object of this trolled by an ubiquitous and omnipotent Rental income ______3.1 6.1. 64 ======1. 5 Federal bureaucracy and judiciary elected by ------report ls to consider the President's major no one and responsible only to themselves. Total ownership 24.0 10. 7 ----fr 13.3 proposals which either explicitly aim at re­ Redistribution of income and property has Transfer payments ______6. 7 13. 5 distributing income or, though not so in­ Personal interest______3.9 9.6 tended, bring about major shfits in income in recent decades increasingly been viewed 5. 7 ======as a prime purpose and task of government. Grand totaL ______100.0 100. o 13. 3 13. 3 from some persons to others, from one region This, more than anything else, explains the of the country to another, from producers of spectacular growth in domestic public ex­ some goods and services to the producers of penditures over the past quarter century. Source: Economic Report of the President, 1978. others, and so forth. The report analyzes the The absence of positive results does not redistributive effects of Mr. Carter's major seem to deter the enthusiasts of social engi­ proposals for a national energy plan, welfare neering. As Ben Wattenberg and Richard •Based on Census Bureau data for 1959 reform, tax reform, and refinancing of Social Scammon expressed it, "The liberal battle cry (earliest year) to 1975 (latest year), P-60 Security. Substantial evidence ls available has become 'We have failed; let us con­ #108. There are presently no reliable sta­ with which to discuss income redistribution tinue.'" (Commentary, April, 1973.) tistics available on income distribution in in each of these policy areas. The aim is to redistribute through the po­ the United states. Annual and periodic sample surveys by the Census Bureau in­ INCOME REDISTRmUTIVE EFFECTS OF PRESmENT litical process the rewards and punishments CARTER'S LEGISLATIVE PROPOSALS of the market. It is the goal of those who clude only money income (not income in do not believe that an individual is entitled kind, such as food stamps, medical & hous­ The overall result of Mr. Carter's proposals to the value of his product or service, who ing benefits, etc.) and aggregate between % in these areas would be to engender massive feel that the allocation of natural talent is and% of such income according to National and explicit redistribution of income from basically unfair and must be compensated Income and Product accounts, thus leaving the top two or three quintiles of fam111es for in a more egalitarian direction. Since a wide gap. No size distribution of Personal ranked by money income to the bottom two talent cannot be redistributed among per­ Income has been available since 1964. The quintiles-away from the more productive to sons, at least the product of such talent and data given are the best avallable, buit should the less productive members of society. Our effort should be. be taken with a grain of salt. findings can be summarized as follows. May 2, 1978 EXTENSIONS OF REMARKS 12277

ENERGY this could be effectively enforced. To provide Action in Social Security was made impera­ 1. Rebates of the crude oil wellhead tax, job openings, a Federally financed public tive by the generosity of earlier Congresses the tax on gas guzzlers and the standby service employment program for up to 1.4 which had raised benefits to a level where gasoline tax, coupled with continued and ex­ million persons would be established. It is, expenditures exceeded income substantially panded price controls on natural gas, consti­ however, questionable whether the openings and the system would have faced bankruptcy tute an explicit redistribution of income would, in the long run, really be additional within a few years. The 95th Congress re­ from the top three quintiles of families jobs. State and local governments might use solved the fiscal problem by boosting Social ranked by money to the bottom two quintiles. those workers in lieu of unsubsidized em­ Security taxes and the political problem by placing most of the additional burden on 2. If passed intact, the program represents ployees they otherwise would have hired. The a massive tax increase for the average Amer­ effect of these steps would be to make public persons in high earnings brackets. Since the assistance benefits available to millions of passage of the Social Security amendments ican family and real incomes will suffer as in December 1977, no formal major Admin­ inflation pushes taxpayers into higher tax families above poverty levels, closer to middle income groups. istration proposals regarding Social Security brackets~the full package of energy taxes is TAX REFORM have been submitted. estimated to cost a total of $377 billion over The Social Security tax increases amounted the next eight years ($5,390 for the average On January 21, 1978, President Carter to the biggest peace time tax boost ever, American family), which makes the Carter transmitted his long promised Tax Message adding $227 billion to the nation's tax bill energy program the most significant increase to the Congress. It would, according to Treas­ over the next 10 years. The Social Security in the middle-class American's tax burden ury estimates, reduce some income tax lia­ tax rate on both employers and employees in the nation's history, far exceeding the bilities by about $34 billion and raise others was raised from 5.85 percent in 1977 to 7.15 $277 billion increase in new Social Security through so-called reforms by $9 billion, for percent by 1987, slightly above the previously taxes. a net cut of $25 billion. It is purely conjec­ scheduled rate of 6.45 percent. The Social 3. Carter's energy plan will also transfer tural whether these actions would, in the Security tax bill of all employees and em­ income from rural to big-city areas, from aggregate, offset boosts in Social Security ployers will thereby go up 11 percent over the Western and Southern regions t::> the taxes and proposed energy taxes, as well as the previously scheduled rise, 22 percent over Northeast, and from the producers and users increased revenues resulting from the effec­ the tax levied in 1977, a comparatively mod­ of oil to the producers and users of coal. tively higher tax rates caused by inflation. est increase. 4. The Carter energy plan also entails mas­ If we had to make an estimate at this time, However, the maximum wage base upon sive capital requirements that cannot be met we would expect the proposed cuts to amount which the tax is imposed was boosted from without contributing to rising interest rate3, to no more, and possibly to less, than the $16,500 in 1977 to $42,600 in 1987, an increase a loss in real GNP, higher rates of unemploy­ probable increases. We have examined of 158 percent. This means that workers with ment, and an increase in inflation. more closely other results of Mr. Carter's earnings up to $16,500 will have their Social WELFARE REFORM proposal. Security tax bill boosted by 22 percent, at 1. The size of the combined tax boosts and That something needs to be done to cor­ $28,000 more than doubled, wt $42,000 more cuts would be less significant than their than tripled. This probably is the most rect severe shortcomings in our welfare sys­ nature, their effect on income distribution. tem has long been widely recognized though powerful peacetime boost ever in tax pro- . The changes enacted in Social Security will gressivity and in related income redistribu­ views differ sharply on the changes that place a heavy additional burden on persons ought to be made. Mr. Carter acidly de­ tion. Because Social Security benefits are in the upper two income quintiles, the pro­ weighted heavily in favor of low-wage work­ nounced current public welfare during his posed "tax reform" will raise the burden campaign and after assuming office and ers, the taxpayers who bear most of the mostly in the upper half of the range, while additional burden will get little in return. pledged a complete overhaul. In August 1977 the cuts are concentrated largely in the two he submitted proposals to replace existing Congress rejected two major Social Se­ lower income quintiles. This would also be curity proposals by the Carter Administra­ programs of AFDC, SS!, Food Stamps and true of the energy taxes if Mr. Carter's recom­ General Assistance with a program called tion: one would have levied Social Security mendations were enacted. taxes on a higher maximum wage base on Better Jobs and Income (BJAI). In other words, the multiple tax boosts and BJAI consists basically of a plan guaran­ employers than on employees, and, in fact, cuts will not offset each other in their impact abolished the maximum altogether for em­ teeing to all persons a nationwide minimum on income redistribution but be additive: income-amounting to $4,200 for a family of ployers by 1981. On its face, and in the they will make the tax system substantially short run, this would have substantially four-with Federally subsidized state sup­ more progressive than it now is. plements. It resembles the Family Assistance boosted taxes on business and on persons 2. Mr. Carter has called the tax system in high income brackets. In the long run, Plan considered by Congress from 1969 to "just a welfare program for the rich." This, 1972 and finally rejected. We find the effects however, the business tax increase would despite the fact that the top 10 percent of probably have been passed on largely to con­ of adoption of BJAI likely to be as follows: the taxpayers now pay about half of all in­ 1. Coverage and costs would increase. The sumers in the form of high prices and par­ come taxes and that more than half of all tially back to employees in the form of Congressional Budget Office (CBO) estimated personal income in the United States goes that the number of families receiving cash smaller wage increases. It was obviously in­ untaxed, with most of the $600+ billion of tended to make it appear that this scheme assistance would increase by about 50 per­ taxfree income located in the low and lower­ cent in the first year of full operation, the would "protect" the average worker and place middle income brackets. the burden on big business. equivalent of about 22 million persons. CBO The rate reductions which Mr. Carter pro­ also upped the Administration estimate of a posed-and which account for most of the The other change proposed by Mr. Carter net additional cost of $2.8 billion in the first cut in his plan-would lower tax liability 14.3 was to use general revenue funds for So­ year to $14 billion. Even that total could percent in the lowest income bracket, 2.9 cial Security purposes. Since the budget is in understate the final cost substantially. percent in the top bracket. a heavy deficit situation this would have 2. About three-fourths of the additional His change of the current $750 personal ex­ amounted to giving inflation another push recipient families would be in the pre-wel­ emption (plus 2 percent credit up to $9,000 upward. fare income class from $10,000 on up and taxable income) to a $240 tax credit would CONCLUSIONS about three-fourths of the funds would go shift $4 to 5 billion in taxes from the lower One clear commitment is prominent in to famiiles above the poverty level. half of the income scale to the upper half. President Carter's policy preferences in pro­ 3. With most families at the lowest income Other tax boosts, mislabeled "tax reform," posals having fiscal implications: the com­ level already on welfare, most of the newly ranging from deductions for business meals mitment to redistribute incomes. added recipients would be in somewhat to minimum tax and foreign operations, In every instance of the four major policy higher income brackets. BJAI would estab­ would directly affect mostly persons with areas we examined-energy, taxation, Social lish Federally financed middle class welfar­ above average income. ism. Security, and welfare-Carter's policy pref­ 4. Mr. Carter called BJAI a "job-oriented A reduction in the corporate tax rate from erences indicate this bias. The effect of 48 percent to 44 percent would be offset for adopting all of his proposals would be bru­ program" in the expectation that many re­ many taxpayers by the tightening of provi­ cipients would seek and obtain partial or tally cumulative. The final result would be sions for building depreciation, bad debt re­ a massive and explicit redistribution of in­ full self-support through gainful employ­ serves, etc. ment. As an incentive, recipients would be come from the top two or three quintiles of permitted to keep half their earnings in addi­ Many of those "reforms" would be eco­ families ranked by money income to the bot­ tion to their welfare benefits. For the first nomically detrimental. They may be based on tom two quintiles. time employed persons, the "working poor," political arithmetic which tells us that in We were not really surprised to find this would be entitled to a supplemental income. 1974 ten times as many returns were filed populist bias. We were surprised, however, with income under $12,000 than with in­ to find so prominent another redistributive 5. There is a serious question whether come above $25,000. BJAI would in the end increase employment bias: a transfer of more monies to people or would mostly boost welfare rolls far be­ SOCIAL SECURITY REFORM not considered among the very poor. Presi­ yond anything we have yet seen. Although We cannot assess the redistributional im­ dent Carter would commit the United States recipients deemed able to work would be re­ pact of Mr. Carter's proposals without view­ to middle class welfarism. quired to seek employment, experience over ing recent changes for financing the Social The mysticism of rhetoric, removed from the past 15 years makes it very doubtful that Security system. reality, seems to be leading Mr. Carter to be- CXXIV--773-Part 9 12278 EXTENSIONS OF REMARKS May 2, 1978 lteve that there are vast untapped sources tice. Thus, fibrous asbestos dust is re­ ized because of elimination of environmental among the "rich" to distribute effectively to leased into the atmosphere, and remains pay, compensation claims, and insurance the "poor." The reality is that he wants to premiums, not to mention the monetary tap the earnings of the middle class to extend a threat to many workers. value placed on human suffering. welfarism not only to the very poor, who are The danger is not ·limited to the as­ 2. Immediate and mandatory compliance declining proportionately, but to a larger bestos workers-those who work with with existing rules and regulations regarding segment of the middle class itself. As we the materfal, and are trained to recog­ asbestos control. said earlier, he means to rob Peter to pay nize the dangers involved. Other work­ Until recommendation No. 1 can be im­ Peter. ers in the shipyards are also exposed to plemented, an enforcement mechanism must The result will be a major income shift the dust, as is anyone near the area be established with authorization and power from relatively high producers to relatively where the work is being conducted. to assure compliance with applicable laws low producers and non-producers, from and regulations. Presently, enforcement of earners to yearners. The process will result Members of the worker's immediate these regulations is the responsibility of in more jobs-jobs in government agencies. families can be exposed through the "staff" personnel (advisory only). The victims will be ourselves, a shrinking dust carried home in the employees' In order to assure strict compliance with productivity, and a shrinking private sector. clothing. the established guidelines pertaining to as­ Finally, while there is little serious oppo­ The chances an individual has in con­ bestos control, the enforcement mechanism sition these days to the notion of progressive tacting asbestosis or related diseases is or agency must have "line" authority. income taxation, President Carter's proposals greatly increased by smoking, and that 3. All asbestos free material be color would strain this concept to destructive coded. limits-at the expense of initiative, self-re­ is a factor which must be dealt with in Adoption of this recommendation will as­ spect, and a health productive private en­ any program designed to curb this prob­ sure the easy identification of material terprise economy·• lem. Nevertheless, asbestos contamina­ composition being handled, and eliminate tion is in itself a dangerous problem that the costly and time consuming methods re­ we must be prepared to deal with on a quired at present for non-identifiable ma­ separate basis. terial. The Secretary's announcement last Existing material in stock could be easily ASBESTOS EXPOSURE color coded at the installing agency. Only week was a positive step toward dealing pre-color coded material would be purchased with this issue. The Surgeon General of for future installation. HON. GLENN M. AfmERSON the United States plans to alert the 4. All asbestos removal will be done at OF CALIFORNIA medical community to what will hope­ time periods with least possible exposure to fully be a growing concern with asbestos all allied crafts and ships company. IN THE HOUSE OF REPRESENTATIVES contamination. Currently, I am informed The establishment of swing shift as the Tuesday, May 2, 1978 that only 50 individuals in this Nation "removal" shift, would allow the monitoring are qualified to read an X-ray for possible and certification procedures to be accom­ e Mr. ANDERSON of California. Mr. plished on the graveyard shift, thus elimi­ Speaker, last week's announcement by asbestos contamination. Obviously, nating the "downtime" currently experienced HEW Secretary Joseph Califano regard­ there is a tremendous need to train more at the beginning of the day shift while these ing the threat of asbestos-related disease individuals in this area. procedures are performed. among American shipyard workers was Several programs now exist to deal 5. All asbestos removal be accomplished a positive step toward recognition of a with the health threat of asbestos, and with trained personnel. serious heal th pro bl em. Since the Long more are needed. The Federal Govern­ Removal of existing asbestos-laden ma­ ment must play a greater role in future terials will be performed only by those ship­ Beach Naval Shipyard is in the con­ yard personnel certified and classified as in - gressional district I represent, I have efforts-the tremendous scale of the sulators under naval standards. been extremely concerned about the pos­ problem and its nationwide importance In the event of a work overload necessitat­ sible threat posed to workers there by demonstrate this. More importantly, we ing "contracting-out" asbestos removal, it past and present exposure to asbestos. should be prepared to take positive steps shall be mandatory to use licensed insula­ According to the Secretary, as many toward ending the threat of asbestos ex­ tion contractors with a background in the posure to our shipyard workers im­ industry using recognized asbestos workers as 5.6 million Americans may die of dis­ with a knowledge of existing state and fed­ eases brought on by asbestos exposure. mediately. We have contacted the Department of eral laws, strictly adhering to those laws. That figure is shocking enough. What is the implementation of the latter would in­ not demonstrated by that figure is the the Navy and asked for a report on the sure against unnecessary exposure of ships debilitating nature of asbestosis to the cost-effectiveness of complete asbestos company and unknowledgeable neophytes. individual, the limitations imposed by removal during overhaul instead of par­ tial removal, to see if it could be made Unless action is taken now, the costs the nature and symptoms of the disease. to the taxpayer will prove to be immense. Physical activity is sharply reduced sim­ a regular procedure at our naval ship­ yards. This is one of a number of recom­ Compensation claims alone for those ply because the individual can no longer workers already suffering from asbestos breathe efficiently. mendations made by the Asbestos Work­ ers Union at the Long Beach Naval Ship­ contamination will prove to be a major In June, 1977, 501 workers at the Long yard. Their efforts to meet this problem expense-but one which we will most Beach Naval Shipyard underwent chest should be commended, and I feel that certainly want to face as a responsibility. X-rays and examinations during a medi­ the proposals they have made deserve Continuing to allow asbestos exposure to cal survey. Over 30 percent of those ex­ careful consideration. affect employees at our naval shipyards amined were found to have asbestos­ The proposals follow: is, in my opinion, a dangerous, irrespon­ related lung abnormalities, despite the RECOMMENDATIONS FOR DEPARTMENT OF sible, and fiscally unsound policy. For if fact that they had received, for the most DEFENSE ADOPTION we choose to take no action at this point, part, short-term exposure. 1. Removal of all asbestos containing ma­ we will simply have to pay an even high­ Because asbestos contamination takes terials from ships prior to regular overhaul er price in compensation claims-and anywhere from 15 to 35 years to mani­ period. possibly in lawsuits-in the years ahead. fest itself, those now suffering from ex­ At the present time, asbestos containing Further study is necessary to com­ posure refiect the conditions found at materials are removed in a piece-meal man­ pletely eliminate the asbestos problem shipyards in past years. Certainly, those ner as necessary for maintenance and repair of va!ves, boilers, pumps, etc. While the re­ at our naval shipyards and the private conditions have improved as the Govern­ placement material in these areas is asbestos sector as well. But we must be prepared ment has recognized the health threat free, there still remains the deteriorated and to take the actions available at the pres­ posed by asbestos. Yet the fact remains potentially hazardous material in the im­ ent time to meet the health hazards that asbestos exposure is still a threat mediate adjacent areas, thus unnecessarily posed by asbestos contamination. The in the shipbuilding and repair industry, exposing ships company and civilian person­ Congress must be prepared to act in an including our own naval shipyards. nel to its carcinogenic effects. Implementa­ tion of this proposal would result in an effective, prompt manner if legislation Asbestos containing insulating ma­ increased immediate cost of approximately is needed, and the responsible agencies terial is still found on many of our naval 35 percent over present methods for insula­ of the Federal Government must be :vessels. During the regular 5 year over­ tion removal and repair. However, an esti­ ready to follow the steps being taken by haul, only the material directly over the mated savings of 200 million per year ( 15 the Secretary of Health, Education, and work area is removed as a general prac- years after implementation) would be real- Welfare and the Surgeon General. May 2, 1978 EXTENSIONS OF REMARKS 12279 OSHA MAKES CHANGES the conference report in December, 1970. The any such policy is a two-way street. OSHA has bill was officially signed into law at a. formal ha.".l a Mad Bull by the tail. They jumped into ceremony held in the Department of Labor a program without truly having good direc­ HON. DAVID E. BONIOR on the 29th of December, 1970. At the signing tion. Being understaffed, they transferred into OSHA personnel from other agencies and OF MICHIGAN ceremony the President alluded to the fact that "This Bill represents in its culmination, hired new people, of which many in both IN THE HOUSE OF REPRESENTATIVES the American System at it's best." catagories were ill informed, improperly pre­ Tuesday, May 2, 1978 How>::!ver, according to the approved and pared, and just did not have the tools to do adopted Tenth Report by the Committee on a good job. They have received a. tremendous e Mr. BONIOR. Mr. Speaker, the fol­ Government Operations, (Subject: Failure to amount of criticism wnd ridicule of which lowing article appeared in the April Meet Commitments made in the Occupa­ they without a doubt have deserved. 1978 issue of National Utility Contrac­ tional Safety and Health Act-October, 1977) However, now that they are attempting to tor magazine. It shows the changes that as forwarded to the Speaker of the House of take a more down to earth approach, and the Occupational Safety and Health Ad­ Representatives the Honorable Thomas P. have come down off their big white charger, O'Neill, Jr. and the 95th Congress, it was maybe we being conscientious and safety ministration has made in the last year stated, as many of us have felt for sometime, oriented businessmen and leaders in our in­ and the improved reaction from busi­ that OSHA has not been able to fill the bill. dustry, can have an input. It has been found nesses because of the more common­ The report, from which the background on a local basis that OSHA personnel are sense approach. Assistant Secretary of for this article was taken, states: interested in what you have to say and desire Labor for OSHA, Dr. Eula Bingham, has "Unfortunately, the implementation of the knowledgeable input. So maybe, just maybe, converted OSHA from an agency which Occupational Safety and Health Act by the with a concerted effort made by all concerned, concentrated its efforts on releasing Department of Labor does not represent th•::! we can develcp good working conditions and pages and pages of regulations which American system at its best. The Department relations. Let's face it OSHA is here to stay.e of Labor is severely criticized by management did not deal with the major health dan­ and labor alike for its administration of the gers workers were exposed to, to an Act. To the American public OSHA has be­ agency which concentrates on major come the symbol of bureaucratic bungling NATIONAL LABOR RELATIONS ACT health and safety dangers in the most and the heavy hand of governmental inter­ dangerous industries. This changeover vention. To many, OSHA is a threat, to most the last year has finally given workers it is a. joke." This comment is used only to show that HON.JOHN M.ASHBROOK the protection that they need and has OF OHIO reduced the opposition from the business our Government does monitor and police its agencies, and that the same committee in IN THE HOUSE OF REPRESENTATIVES community as evidenced by this article. the same report ma.de recommendations on Dr. Bingham should be congratulated how the present Administration can correct Tuesday, May 2, 1978 for her efforts Which have fulfilled much these past mistakes. e Mr. ASHBROOK. Mr. Speaker, H.R. of the promise of the OSHA legislation Earlier this year, Dr. Eula Bingham, the 2222, the bill to mandate that interns and which became law over 7 years ago. I Assistant Secretary for OSHA, told the Man­ residents are professional employees hope that my colleagues will find this power and Housing Sub-Committee (which has been conducting hearings over the past rather than students, as the National article as informative as I did: two yea.rs on how the Department of Labor Labor Relations Board has held, will be (From the National Utility Contractor, has been administering the Occupational before the House shortly. Certainly, this April 1978] Safety and Health Act) of her plans to re­ branch of Government should have more OSHA-SEVEN YEARS LATER orient the Agency towards serious hazards important business to consider than en­ (Irby L. McLane, Jr.) and toward giving greater attention to occu­ tertaining time on a bill that would re­ The 29th of December, 1977 marked the pational health problems. Results as of this verse a considered decision by an end of the Occupational Safety and Health date would indicate that she has done exactly administrative agency with the granted Act's seventh (7th) year of existence. that. She also told a group of representatives, of expertise to make just such judgments. As contractors, suppliers, and in general, This is particularly true when it is ap­ good businessmen, we are all interested in which our National Safety Committee Chair­ safe and healthy conditions in the work man (R. G . Griffith) was a member, of her parent that the Board has the authority place, if for no other reason than a purely intention to reorient OSHA's line of thinking to find that interns and residents are honest and selfish one, that being dollars and to a more realistic and common sense ap­ primarily employees rather than students cents. proach towards the role that OSHA personnel should a case be presented in which the Accidents result in loss of available per­ should. take in implementing the Act. Also, that OSHA would undergo some changes and facts in evidence preponderate in favor sonnel and equipment, job slow downs, added of such a determination. administrative work loads, headaches and get into the business at hand, that being to the aggravation that none of us need. assure so far as possible, every working man On April 25 I submitted for considera­ Safety is not new, nor is the Federal Gov­ and woman in the nation a safe and healthful tion the fact that H.R. 2222 is inappro­ ernment's involvement. According to govern­ w.:>rk place, and to preserve our human re­ priate since it would impose a collective ment reports, the first major Federal legis­ sources. From all indications, Dr. Bingham bargaining relationship on three par­ lation covering safety standards and inspec­ and her Agency have taken great strides in ties-students, their faculty, and hos­ tion practices dates back to 1890, when such this area. OSHA has taken steps to encourage all pital administration, when normally col­ legislation was passed to cover the coal min­ lective bargaining is between two parties ing industry. Since that time, laws have been States to develop and operate their own job passed to cover other industries and trades, safety and health programs. Any State de­ only. Further, I pointed out that the such as railroading and longshoring. siring to assume such responsibility is re­ Committee on Education and Labor had However, it was not until 1968, when Pres­ quired to submit such plans and details as not seriously considered the appropriate ident Johnson proposed what he called "the to how they plan on providing a program that bargaining unit for interns and residents Nation's first comprehensive health and safe­ is at least as effective as the OSHA Act to and that the report, House Report 95- ty program to protect the worker on the OSHA for review and approval. If such plans are approved, OSHA pays up to 50 % of the 980, directs a proliferation of bargaining job," that Congress seriously considered units in hospitals, a direction directly comprehensive Federal legislation on safety program's operational cost. and health. For your information, the following are contrary to the directions in the r€ports During the 90th Congress, such legislation operating under OSHA-approved State Plans, accompanying the 1974 health care was strenuously opposed, and the Adminis­ as of November 1, 1976: amendments to the National Labor Re­ tration's bill did not reach the floor of either Alaska, Arizona., California., Colorado, Con­ lations Act. Let me continue my dialog the House or Senate. During the 9lst and necticut, Hawaii, Indiana, Iowa., Kentucky, in opposition to H .R. 2222 by addressing 92nd Congresses, both Houses held extensive Maryland, Michigan, and Minnesota. Nevada. New Mexico, North Carolina, Ore­ two additional issues today. hearings on such legislation. It was found BARGAINING OVER EDUCATIONAL TOPICS that it would be highly impractical to write gon, S:mth Carolina, Tennessee, Utah (no specific safety and health standards into the consultation), Vermont, Virginia, Virgin Is­ The bill now before this House is a statute itself to cover all occupations, there­ lands. Washington, and Wyoming. complex piece of legislation, for it at­ by resulting in the need to establish an There a.re a number of advantages to this tempts to reorganize the basic relation­ agency to whom such authority could be type of program, such as having your inspec­ cielegated. tion performed by personnel who relate more ship between residents and faculty physi­ After extensive debate and compromise closely to your working conditions, weather, cians in graduate medical education between President Nixon's Administration soil conditions, etc. If your state is not in­ programs. The National Labor Relations and Congressional Democrats, as well as the volved, you might want to get them involved. Board has found residents to be pri­ House and the Senate, both Houses approved Keep an open mind, and remember that marily students; proponents of H.R. 2222 12280 EXTENSIONS OF REMARKS May 2, 1978 urge us to define them as primarily em­ Given that the NLRB becomes the final survivor benefit annuity was as $233