House of Representatives

7262 CONGRESSIONAL RECORD- HOUSE April 24 not have a Saturday session. It was with The Journa-l of the proceedings of lution of the following title, in which the relation to that statement that I wished yesterday was read and approved. concurrence of the House is requested: to inquire. Will the Senator repeat the s. J. Res. 159. Joint resolution to author statement? ize and request the President to proclaim . Mr. JOHNSON of Texas. It is .our SUNDRY MESSAGES FROM THE July 4, 1958, a day of rededication to the present plan to have a Saturday sessiOn, PRESIDENT responsib111ties of free citizenship. in an attempt to dispose of the bill, un less it is disposed of tomorrow. I will Sundry messages in writing from the say to the Senator that it was announced President of the United States were com ANNA MAE ALLEN ET AL. v. SOUTH yesterday and earlier today that a Satur municated to the House by Mr. Ratch ERN RAILWAY -cOMPANY ET AL. day session was planned. ford, one of his secretaries, who also The SPEAKER laid before the House Mr. HOLLAND. I misunderstood the informed the House that on the follow the following communication, which was Senator. I understood him to say there ing dates the President approved and read by the Clerk: would be no Saturday session. That was signed bills and a joint resolution of the APRIL 17, 1958. the reason for my question. . I knew he. House of the following titles: The honorable the SPEAKER, said something to that effect. I must On April 4, 1958: House of Representatives. have missed his exact words. I regret H. R. 11086. An act to amend the Agri SIR: From the Superior Court of the 26th that there is to be a Saturday session. cultural Adjustment Act of 1938, as Judicial District of North Carolina I have amended, with respect to wheat acreage received a subpena duces tecum, directed to Mr. JOHNSON of Texas. I, too, regret me as Clerk of the House of Representatives, the necessity. We have announced on history. On April 7, 1958: to appear before said court as a witness in three occasions, that we plan to have a the case of Anna Mae Allen et al. v. Southern H. R. 7907. An act relating to contracts Railway Company et al., and to bring with Saturday session, in the hope that we will for the conduct of contract postal stations, be able to dispose of the bill. me certain and sundry papers therein de and for other purposes; scribed in the files of the House of Repre The PRESIDING OFFICER. The H. R . 8268. An act to amend section 512 sentatives. question is on agreeing to the motion of of the Internal Reve1;1ue Code of 1954; and The rules and practice of the House of the Senator from Texas that the Senate H. R.10843. An act to amend section 114 Representatives indicates that the Clerk may stand in adjournment until10: 30 o'clock of the Soil Bank Act with respect to com not, either voluntarily or in obedience to a tomorrow morning. pliance with corn acreage allotments. subpena duces tecum, produce such papers The motion was agreed. to; and Scout from My bill gives this Congress the oppor education, and the like. " Charleston, S. C., the medal authorized tunity to take positive action to alleviate This and similar studies have shown by the Congress a few years ago, known the distressing situation of thousands of what needs to be done and now we must as the Young American Medal for Brav our senior citizens. I am referring to do it. I submit, that the aging are tired ery. Under the provisions of the act of those who are not able to earn a decent of being researched, reviewed, surveyed, Congress creating this award, not more living for reasons directly related to their studied and sympathized with. They than two Americans may be selected age and who are not yet old enough to want action by private organizations and during any 1 calendar year. retire under the existing provisions. I by every level of government. .While I Harold Murray, now 16, was 14 years am talking about the 60 year old factory enthusiastically support the campaigns of age on April 25, 1956, at the time he worker who is replaced by a computer being conducted to encourage the hiring performed his mission of heroism. His and an automatic feedback system and of older workers, such campaigns, even if neighbor, Mrs. 0. E. Rakoske was mowing is· not considered flexible enough to be successful beyond all expectation, would her lawn when a copperhead snake sunk retained for a wholly different operation. still not answer the need which I have his venomous fangs in her flesh. Hear Unemployment compensation is cer outlined to you. What about those per ing ])er screams of misery and of despair, tainly not the final answer to his prob sons whose work involves physical labor young MuJ;"ray, a Boy Scou~who learned lem. I am talking about the older tex and who cannot hold a job because of the art of first aid as a Boy Scout tile worker whose plant is moved 1,000 fading strength which cannot be consid rushed to Mrs. Rakoske's assistance, re miles away from home and lifetime ties. ered complete disability? What about moved the snake from her person, imme I am talking about the woman widowed . the older person who has devoted his life diately killed the serpent·, and forthwith at 60 who has never had employment to a skill which is now obsolete because of administered emergency first aid. His experience. I am talking about the par changing manufacturing techniques? treatment mainly consisted of opening tially disabled person who is not quite What about the chronically ill person the wound and sucking the venom from · disabled enough to qualify for disability who endangers his health and his very the infected area. Young· Murray then payments. These are the neglected and life by continuing to work because he has rushed the stricken woman to a hospital truly needy persons who would benefit no alternative. Let us give these people and her life was spared from the light from this proposal to reduce the retire the freedom to make the choice accord ning rapidity with which the deadly ment age to 60. ing to their individual situations. I con poison undoubtedly would have perme Some critics of this proposal may say tend that the lowered retirement age ateQ. her entire body, we would lose large numbers of skilled must go hand in hand with our efforts to All of these things, young Murray did and productive workers who are essen promote hiring of older people. without any injury at all to himself tial to the defense effort if the retirement I would support this legislation on its despite ever-present and latent danger age were lowered. Nonsense. We. will merits at any time. But' I submit that it which surrounded him. not see hordes of happily employed is extremely timely now in this period of Little did this young American dream workers of 60 deserting their machines a recession-a situation which even the that his· act would gain notice. Selfless and desks and flocking down to pick up administration has finally recognized. service was his one ambition and his only their monthly retirement checks of $60 What better way is there to combat the recession than to put a modest amount aim. However, hearing of · this urisur or $80. The benefits are simply hot that :P~:?SeBoy Scouts of America, accepted versity of California in 1952. The re the commendation of the President of maining 21 percent retired because of 6.0 and 65 in his own district and across the United States, smiling and with . age, family decisions and other reasons. the Nation who, largely because of eco nomic and social changes and health gratitude. Another survey conducted by the Social I witnessed this ceremony along with Security Administration in 1951 revealed cpnditions beyond their control, are un able to support themselves with dignity members of his family. I was honored to that over 80 percent of the recipients of be present at the occasion. · social security benefits had either been and safety. I therefore urge every Mem forced to retire or had retired for health per to support this bill, H. R. 386, as a I would like to add that young Murray reasons. Only about 5 percent retired means of aiding this group and the is the only American to be presented with voluntarily while in good health to en health of the national economy. this award for this year. joy retirement leisure. The remainder Mr. Speaker, I include herewith the newspaper account as it appeared in the retired for other personal reasons. . In PRESIDENT PRESENTS CHARLES short, I think I am safe in saying the Charleston News and Courier, America's proposed reduction in retirement age TON AREA SCOUT WITH YOUTH freest and the South's oldest periodical will not create a large-scale exodus of MEDAL FOR BRAVERY dedicated to freedom of the press and able-bodied persons from their jobs. Mr. RIVERS. Mr. Speaker, I ask to the highest ideals of journalism; I have long been interested in the unanimous consent to address the House [From the Charleston (8. C.) News and problems of the aging and I applaud the for 1 minute, to revise and extend my Courier of Apri122, 1958] many State and Federal conferences, remarks, and include a newspaper arti YOUNG HERO TOURS CAPITAL WITH FAMILY commissions and study projects which cle. (By Henrietta Means) have been set up· to explore these prob The SPEAKER. Is there objection to · WASHINGTON.-Charleston's heroic Harold lems. I am particularly proud of my own the request of the gentleman from South Tupper Murray, Jr., and his younger sister, State which in 1954 established the New Carolina? Diane, had a big time on Capitol Hill Mon Jersey Old Age ·study Commission. The There was no objection. day. 1958 CONGRESSIONAL ..RECORD- HOUSE 7265 The 16-year-old Boy Scout, who on Tuesday RECOMMENDS HIM the usual song about higher pay for few will receive from President Eisenhower the South Carolina Gov. George Bell Timmer er hours' worked, he began trumpeting Young American Medal, got a big kick out man recommended young Murray for the for a share in the company's profits. Let of touring the halls of Congress. medal. The award was approved by Rogers us examine both these ideas. TRY OUT CHAIRS on recommendation of a committee com posed of FBI Director J. Edgar Hoover, Every intelligent workman under He and · Diane were especially pleased to Solicitor General J. Lee Rankin, and Luther stands that he can be paid only out of get a chance to sit in the chair usually occu A. Houston, Director of Public Information what he produces. To gain more leisure pied by Speaker SAM RAYBURN, Democrat, for the Justice Department. time, he must produce more in the re Texas, in the House of Representatives, and Witnessing the ceremony Tuesday in addi duced time he works, otherwise he will also to try out Vice President NixoN's office tion to his parents were Murray's sister, chair on the Senate side of the Capitol. ha"'ve less to spend during his additional Diane, 14, and aunt, Mrs. Nell Frain and an leisure. The Capitol tour was arranged by Senator uncle, Jack W. Hugentugler. · OLIN D. JoHNSTON, who sent an aide, Tom Newsreel cameramen had just finished Profits? An enemy of all of us, a real Chadwick of Charleston, to guide the young "shooting" Senate minority leader WILLIAM drag on the economy, is the company sters, their parents, Mr. and Mrs. Harold KNOWLAND, Republican, California, when that does not make a profit. That com Murray of Stano Park, and a cousin, Jack young Murray emerged from the Executive pany pays less than its share of taxes and Hugentugler, also of Charl~ston. Mansion. is on the way to paying none at all. That RIVERS TO ATTEND Even though they had taken pictures of company cannot create more jobs and the award ceremony inside the White House, During the tour, the family fou~d Repre may soon be without jobs at all. Unable sentative L. MENDEL RIVERS and received re the camermen immediately swarmed around to compete, that company cheats you and newed · assurance from the Charleston Murray. Newsmen persuaded the modest youngster to tell his impressions of the Pres me by adding to our taxes and providing Congressman that he will attend the White no bargains. Better that we have wage House ceremony Tuesday. RIVERS has in ident and describe the circumstances leading vited them to be his guest at luncheon after to his winning the award. earner gains predicated only on greater the ceremony. CITES MODESTY productivity, and that companies be en They lunched Monday in the Senate Din Raeford H. Davis, Murray's Scout leader, couraged to profit handsomely. Compe ing Room as JOHNSToN's guests. Earlier in indicated that the boy's conduct after suc tition will prevent excess in this depart the day,. they had been greeted by Senator cessfully saving Mrs. Rakoske from serious ment. STROM THUR:f\tOND. injury or death was "more noteworthy than I am indebted to Lewis Strauss for a his performing the Boy Scout's duty in the CEREMONY AT 11:30 classic illustration of the difference be emergency that existed." tween a capitalist and a Socialist: The Charleston visitors will report to the Davis said the victim's mother happened Justice Department at 10:30 a. m. Tuesday, to mention the incident to a minister who A capitalist is a man who is willing to con and will go from there to the White House informed the newspapers of the boy's deed. cede that other men may live better than he for the 11:30 a. m. meeting with the Presi It was from the newspapers that Murray's does providing he is free to live as well as he dent. Among officials expected to attend the parents, neighbors, and local Scout council can afford. A Socialist is a man who is will award presentation ceremony is J. Edgar become aware of the incident. ing to live miserably provided no one is al Hoover, director of the Federal Bureau of lowed to live any better. Investigation. SCROLL TEXT Murray was selected by the Justice Depart The text of the scroll accompanying young An excellent study of our free enter ment for the Young American Award for his Murray's award follows: prise economy and the alleged recession, action 2 years ago in saving the life of a "Whereas the Young American Medals together with the role of government in Charleston woman who had been, bitten by Committee, with the approval of the Attor our economic society is to the credit of a poisonous snake. ney General of the United States, has deter the Guaranty Survey,· the April publi;. He and his family expect to be here through mined that Harold Tupper Murray, Jr., cation, by the Guaranty Trust Co., of Thursday, touring points of interest in the should be awarded the Young American New York, which follows: Washington area. Medal for Bravery for having exhibited ex ceptional courage, attended by extraordinary CURING THE RECESSION decision, presence of mind, and unusual When recession strikes, businessmen suffer (From the Charleston (S. C.) News and swiftness of action, regardless of his own a double penalty. It is not enough that they · Courier of April 23, 1958] personal safety, on April 25, 1956, in rescuing should be among the heaviest losers; · they PRESIDENT PRESENTS CHARLESTON AREA SCOUT Mrs. E. 0. Rakoske, who had been bitten by are liltewise the chief scapegoats. They WITH YOUTH MEDAL FOR BRAVERY a venomous snake. are called upon to bear not only their own "Now, therefore I, Dwight D. Eisenhower, losses but also the blame for the losses of WASHINGTON.-Harold Tupper Murray, Jr., President of the United States of America, 16-year-old Boy Scout from Charleston, Tues others. by virtue of the authority vested in me by Businessmen are now being criticized for day received the Young American Medal for the act of August 3, 1950, 64 Statute, 397-398, Bravery from President Eisenhower. having no formula to "cure" the recession. do hereby certify that the Young American As the operating agents of our economy of The President said "my real congratula Medal for Bravery has been awarded to Har tions" as he pinned. the gold medal on the private enterprise-so runs the criticism old Tupper Murray, Jr., on this 22d day of they were quite willing to take the credit for youngster's lapel in a special ceremony in the April 1958, and has been presented to him by White House. prosperity. Now that the economic weather me personally for and on behalf of the Pres has turned cloudy, they have forgotten their The Charleston youth, a student, at St. ident and Congress of the United States of position of leadership and quietly retired Andrew's High School, received the medal for America." into the background. Economists, politi aiding a woman who had been bitt-en by a cians and labor leaders are ready with their copperhead snake. He killed the snake, ap programs, but businessmen, who by experi plied a tourniquet and extracted as much THE STORY OF FREE ENTERPRISE ence should be best fitted to find remedies, venom as possible from the leg wound by have little to say. Thus speak the critics. sucking the blood. Mr. ALGER. Mr. Speaker, I ask unan imous consent to address the House for 1 DUBIOUS CURES READS CITATION minute, to revise and extend my re It is perhaps beside the point to suggest United States Attorney General William P. marks, and to include an article. that the greater volubility of politicians may Rogers read a citation commending the Boy The SPEAKER. Is there objection to not be wholly unrelated to next fall's elec Scout for "exceptional courage." The action tions, nor that of labor leaders to current and for which he was cited took place April 25, the request of the gentleman from Texas? forthcoming wage negotiations. Even though 1956, when Mrs. 0. E. Rakoske was bitten by a businessmen may not have the same second snake while mowing her lawn. There was no objection. ary reasons for utterance, even though their President Eisenhower told young Murray's Mr. ALGER. Mr. Speaker, as labor sole aim be recovery from the recession that parents that they have every reason to be and management begin the preliminary is costing them so heavily, the questions re proud of their son. sparring preceding contract negotiations main: Have businessmen been slow in offer Turning to Murray himself, the President we will hear more and more, I am sure, ing "'cures" and, if so, why? smiled and said that the award ceremony about bloated profits and the desirability To begin with, it is simply not true that should probably have been delayed a few of greater pay for less work. This latter businessmen generally have shirked their days so the medal could be presented on the aim may even be piously proposed as an rightful responsibilities by refusing to dis second anniversary of the deed. cuss the problems of recession and recovery. The Young American Medal for Bravery antirecession move. Those who look for such things have no was established by Congress in 1950. It is Mr. Reuther neatly combined both diffi.cul ty in finding expressions of opinion presented to youngsters who, before their these features in his pitch to the public on these subjects by business leaders. If 19th birthday, perform outstanding acts of recently in whose limitless gullibility he such statements do not bear the imposing bravery. ·obviously puts great faith. Softpedaling label of "cur.es," it may be . because of the 7266 CONGRESSIONAL -RECORD- HOUSE April 24 very experience that Is supposed to show the best way to minimize recessions Is to for tax relief and governmental spending ls businessmen the best "cures." It may be restrain booms. too great, and the fear of deflation is too strong. Hence the public debt rises, and the because their experience has made them BUSINESS ITSELF MUST DO THE JOB aware of the enormous magnitude and com money supply along with it. Experience has Once the recession comes, the job of re shown that, in actual practice, inflation is plexity of the problem and the dubious value adjustment is much too' big, too complex, of the "cures," so readily offered by others. a one-way street. and too imperfectly understood to be ac An even more basic shortcoming of In It may be because they sense that the very complished by any sort of governmental idea of "curing" a recession reflects a mis flationary cures is that they tend to prevent conception of the nature of recessions, a fail action or policy. It is accomplished by busi the readjustments that are needed after ure to understand that the recession itself ness itself under the pressure of contracting booms. The more effective they are as cures, is in reality a "cure" for something else. mar kets and tightening competition. Dead the more dangerous they are as perpetuators Businessmen recognize, of course, that this wood is cut out. Inventories, when exces of unsound conditions. And the longer such is an unpopular view. When sales falter, sive, are reduced. Unsound projects are conditions remain uncorrected, the stronger when industrial output is reduced, when given up. Price and cost relationships ,are become the forces making for recession, and workers are laid off, and when the demand realigned. Operating inefficiencies in labor the larger the doses of inflation needed to is made that something be done immedi and management are ellminated or dim in counteract them. Thus the tendency is ately to "cure" these evils, it is a thankless ished. The quality of goods and services toward more or less chronic inflation at an task to point out that what is actually going is improved. Inflated values are· written increasing rate. on is a needed readjustment, a necessary down to realistic levels. The "lost art" of If such a tendency persists long enough, corrective process-in fact, a "cure" for the salesmanship is rediscovered. Demand for the people can hardly fail to become aware excesses, distortions, and maladjustments both consumption and investment is re sooner or later that their money is losing its that resulted from the boom and that caused examined, and production schedules are value and cannot be held with safety. When the recession. To say such things is to ex altered accordingly. this happens, there arises the threat of pose oneself to the charge of being cold and These readjustments Imply changes in monetary depreciation in its most extreme indifferent to the plight of the unemployed. prices as well as in output and employment, form, with a "flight from currency," an un No one enjoys placing himself in such a and the more readily the price changes take controllable rise in prices, and a general place, the less severely are output and em economic breakdown. If this ultimate disas position. ployment affected. All sectors of the econ WHAT RECESSIONS ARE FOR ter is to be avoided, the attempt to force a omy are involved. The longer management free economy into a state of perpetual boom Yet businessmen, by their own experience, clings to old methods, old products and old by inflationary stimulation must be aban are better able than most others to recognize pricing policies, the longer it will take to doned at one point or another. The easiest that an economy of free individual choice recover the lost markets. The more tena and safest point to abandon it is at the cannot expect to enjoy a perpetl,lal boom. ciously labor insists upon maintaining or beginning. They see taking place before them every day raising the cost of employment, the less em the bewildering variety of changes that are ployment there wm be. The more strongly SOUND AND UNSOUND STIMULANTS constantly going on in such a society. The agriculture and its political friends hold out Most of the current debate over proposed tastes and habits of consumers change. The for arbitrary prices, the more restricted will cures for the recession has been concerned population increases or decreases at varying be the markets for farm products. Any form with the relative merits of tax reduction and rates, and the age distribution of the popu of price rigidity tends to hamper the read larger governmental spending. Both of these lation shifts. Producers strive constantly to justment and prolong the recession. alternatives· are open to the objections just devise new products and to turn out better mentioned. Their effectiveness as cures is products at lower cost. In this endeavor, GOVERNMENTAL CURES questionable, but that they contain the seeds they invent new methods, new processes, In attempting to cure a recession, gov of inflation is unquestionable, especially in and new types of equipment. ernment has only two major instruments at view of the fact that the Government is These changes mean that rates of produc ·its disposal: regulation and inflation. It is already operating at a heavy deficit. tion and operating methods must be contin probably true that a totalitarian state func Truly constructive action by both business ually adapted to new conditions. Labor and tioning with full force and vigor can prevent and Government in times of recession is capital must be withdrawn from some occu the sort of recession that occurs in free so aimed at facilitating the needed readjust pations and transferred to others. Large in cieties, though at the cost of despotism and ments, not at preventing them. This does vestments must be made in new plant, and of chronic hidden recession in the form of not mean that individual hardship should these investments must be based upon mar inefficient utilization of resources. It may not be alleviated or that sound economic ket ·estimates that cannot be absolutely cor also be conceded that any government with incentives should not be strengthened. rect. Mistakes are sure to be made, and the power to issue money can temporarily Sound incentives are derived from the re these must be rectified, often at heavy loss. prevent recession by creating new money in moval of artificial restraints, not the ad Thus readjustment is a never-ending proc sufficient quantities. This is essentially ministration of artificial stimulants. Busi ess. How can there be continuous full em what is being proposed by the advocates of nessmen know that such measures are un ployment in such a society? tax reduction and expanded public works. spectaculal' a,nd politically unpopular, and The particular sort of readjustment that Such inflationary cures for recession, how it is to their credit that so many of them Is commonly accompanied by a general busi ever, have certain important drawbacks. are willing to spend time anc;l effort and to ness recession is only imperfectly under One drawback is the verdict of experience expose themselves to criticism by advocating .stood. Human societ y is not a laboratory that inflationary cures are not very effective what they must believe to be practically im where phenomena can be minutely observed unless administered on a dangerously large possible in the present state of public opin under controlled conditions. Moreover, the scale. In the 1930's it was found that the ion. There is little else for them to do cycle of boom and recession is not uniform; effects of the inflationary stimulus lasted except to use such influence as they have no two cycles are even approximately alike. only as long as the stimulus was applied. against proposals that would saddle the It is generally agreed, however, among busi The process was called pump priming, but economy with the almost certain evil of a nessmen at any rate, that booms generate the phrase proved to be a misnomer, because permanently cheapened dollar in a highly unsound tendencies, including unwarranted the pump was not primed. After some $20 dubious endeavor to cure the temporary evil expectations of future markets, excessive in billion had been borrowed and spent in this of recession. ventory accumulation, distorted price and way, 8 million members of the labor force cost relationships, outright speculation, were stm unemployed. credit strain, disproportionate production of During World War II the inflationary "YOU AUTO BUY NOW" WEEK different types of goods, and ill-advised in stimulus was applied on a scale more than EXTENDED vestment. These tendencies occur in a va ten times as great as in the preceding decade. riety of combinations that defies close an In that instance it was highly effective, but Mr. BYRNE of Illinois. Mr. Speaker, I alysis, prediction, and treatment. Yet, as soon as the wartime price controls were ask unanimous consent to address the whatever the combination may be in a par removed, the purchasing power of the dollar House for 1 minute, to revise and extend ticular case, it requires correction, and the shrank by almost one-half. Obviously, defi my remarks and include an article. correction involves a temporary decline in cit spending by the Government on any The SPEAKER. Is there objection to business activity. such scale could not occur many times with the request of the gentleman from Illi It was because businessmen generally ac out wrecking the currency. cepted this view that they supported the Another grave weakness of inflationary nois? Federal Reserve System in its conservative cures for recession is that, even when applied There was no objection. monetary policy during the exuberant days on a comparatively moderate scale, they Mr. BYRNE of Illinois. Mr. Speaker, of the boom. It was for the same reason result in a permanent debasement of money. from the sidewalks of Chicago, a great that they supported the Federal adminis The theory of "compensatory" fiscal policy city on Lake Michigan, I bring you some tration and those Members of Congress who that demand can be stimulated by means of were endeavoring to resist the constant Treasm·y deficits in slack times and then information from the Chicago Daily News pressure for more governmental spending moderated by means of surpluses in good which indicates, when private enterprise and to bring the budget under control. times-has been tried and found wanting. is given an opportunity to do so, and They recognized that the best way to pre The anticipated surpluses simply do not. ·reflects the qualities which have made vent recessions is to prevent booms, and appear. The political and popular pressure America great all thr87,-500 0 cent meets the views of the President. 1------~-1------1------TotaL ------: ______: __ ___ -- ______~ ------·------_: ___~- · ~ ______167, 680; 500 14,356,400 7 ~. 288,600 PARAGRAPH 3

President's comment: "The Congress in 1 No fu~d s are authorized in the bill for the part of the project objected to by the Budget and the.President. The enacting S. 497 has in many instances disre amount of $53,235,000 is the amount carried in.tbc bill for the project as recommended by. the Chief of Engineers and garded the careful study and considered approved by th e Budget. · judgments of the professional services and 2 Indeterminate. · a The objection is to what thq Budget and. the President cons.ider to be insufficient local cooperation on Carlysle other executive agencies concerned. The bill :R eservoir and certain leYees. which are projects previously authorized in the Kaskaskia .River Basin and have no would authorize 28 new projects or ·pro-ject relation to the $23, 000,110(1 in the bilL modifications estimated to cost about $350 • Corps of Engineers actually recommended a higher Federal cost, or $2,931,700, which is $750,700 more than million under terms which I cannot approve amount in bill. without destroying some of the most im The total ~ amount of $167,680,500 is the downstream. This seems a reasonable point portant governmental policies in the field of total estimated cost of the projects in the of view to the committe.e. water resources development. The bill has foregoing llst and is not the total value of The committee emphasizes that this was other unacceptable provisions. In particu the monetary objections. The total value of a recommendation of the responsible execu lar I believe that the bill is defective for the monetary objections of the President is tive agency, those professional services the following reasons." $14,356,400. However, the main thesis of this which the President commends so highly. Rebuttal: The first sentence states that subparagraph of the veto message concerns SALINE RIVER; ILL. the Congress has disregarded tile profes what the President considers to be inade sional services. It should be noted that of quacy of local participation. Actually what The total cost of this project is $5,970,000. the 5.2 percent of monetary objections in the this amounts to is a difference of opinion be In this particular case the Chief of Engi bill only seven-tenths of 1 percent was not tween the Congress and the executive branch neers recom·mended that local interests con approved by the Corps of Englneers, which as to what the local contribution should be tribute to the cost of construction the value is the principal profe.ss~onal service to which for Federal projects of this nature. The of all lands, easements, and rights-of-way tlle President presumably referred. (See following examples are talten from this group necessary for the construction of the pro table at end of this analysis.) The second to show why the Congress considers the ject, replace highway bridges and make re sentence concerning the authorization qf amount of local cooperation contained in the quired utility alterations and hold and save new projects estimated to cost about $350 vetoed bill to be adequate. the United siates free from· damages due million is misleading. This figure is the to the construction work and, finally, main total cost of the projects objected to and DES MOINES niVER, IOWA tain the works after completion. In addi not just that amount objected to by the The total estimated cost of this project is tion, the recommendation would require lo President. The actual value of the mone $44,500,000 as contained in the bill. The cal interests to contribute 15 percent of the tary objections is approximately $82 million President believes that 10 percent of this cost of construction in cash. This amount of the $350 million referred to. The figure amount or $4,500,000 should be paid by local of cash contribution is estimated at $930,000. of $350 million is about 22 percent of the interests. The project involves a reservoir The committee heard extensive testimony total cost of the bill. The figure of approxi located above the city of Des Moines known on this project and found that it was impos mately $82 million is 5.2 percent of the as Saylorville Reservoir. In this reservoir sible for local interests in this predominately total cost of the bill. In the second sentence there would be conservation storage which rural farming area to contribute this much of this preamble to paragraph 3, the Presi• is already provided at full Federal cost in in cash in addition to meeting the other dent states that he cannot approve these the authorized reservoir called Red Rock provisions of local cooperation and the com projects without destroying some of the most below .the city of Des Moines. The Chief of mittee therfore reduced the cash contribu important governmental policies in the field Engineers, in making his recommendation, tion to 25 percent of the amount recom of water resources development. The Corps simply changed the location of the author mended, or $233,000. This presumably is of Engineers has recommended these proj ized conservation storage in the Red Rock what the President means- when he says a ects in accordance with time-honored and Reservoir to the Saylorviile Reservoir and in sound .national policy requires that a com traditional practices. The truth of the mat- view of the fact that this conservation stor parable measure of responsibility, for · pro . ter is that governmental policies in the field age has already been authorized at. Federal jects where the.re are identifiable beneficiar of water resources development come about expense, he felt it equitable that the mere ies, must remain at the State and local level. as a joint effort of the legislative and the fact of 'its transfer to the Saylorville Reser In other words, he would require that local executive branches of Government as a re voir should not require a $4,500,000 contri interests in this rural area contribute, 'in flection of the desires of the people. The bution by local interests. Otherwise, local addition to the land, easements, rights-of policies are established following legislative interests could rightfully claim that the way and the other .normal provisions in enactments of the Congress. This statement conservation storage be left in the reservoir flood-control projects, a total of almost $1 J-958 CONGRESSIONAL RECORD- ~OUSE .7273 million in cash, far beyond their proven abil lion on which adequate reports have not yet and lack only a formal report from Budget ity to pay. If this is to be a r_equirernent been submitted to the Congress under legally should be authorized now. The Budget for authorization, the project might just as established procedures. It is, therefore, not Bureau, of course, still has the power to well not be included in the bill. Local in possible to determine whether their author veto when requests for funds are submitted terests, in the opinion of the committee, ization would be in the public interest." through the usual channels. will have difficulty enough in raising the Rebuttal: The President states that this SUBPARAGRAPH 3-3 $233,000 required by the terms of the vetoed section would authorize 4 projects estimated omnibus bill. to cost over $27 million on which adequate President's comment: "3. It would author reports have not yet been submitted to the ize 3 projects estimated to cost about $115 TOMBIGBEE RIVER, MISS. AND ALA. million which the reports of the Chief of This project, which provides for snagging, Congress under legally established proced ures. He contends that it is therefore not Engineers show have no economic justifica cutoffs and channel improvements on 22 tion. tributary streams of the Tornblgbee River, possible to determine whether their authori zation would be in the public interest. This "I cannot overstate my opposition to this was included in the vetoed bill of 1956. At kind of waste of public funds." that time the committee was impressed with -is misleading. The projects involved are Buchanan Reservoir in California, at an esti Rebuttal: The three projects referred to in the exceptionally high cash contribution this particular subparagraph are Gilbert and required to be made by local interests in ac mated cost of $10,900,000, and Hidden Reser voir in California, at an estimated cost of Lone Rock Reservoirs in the White River cordance with the directive of the Bureau Basin, Ark., the Sherwood and Broken of the Budget in the now famous circular $12,500,000, a project for the Gila River in Arizona, at an estimated cost of $1,570,000, Bow Reservoirs in the Millwood Reservoir known as A-47. Testimony was presented System in the Red River, Ark. and Okla, regarding the inability of local people to and finally a project for a harbor at Green~ ville, Miss., at an estimated cost of $2,5-80,000. and the project at Rome, N. Y., on the meet this· requirement. The committee is Mohawk River. The statement of the eoncerned about the critical need for the With respect to Hidden and Buchanan Reser voirs, these two structures, if completed prior President concerning the waste of public improvements and attempted to work out an funds is hard to understand by those who equitable arrangement on a cost sharing to the floods of a few weeks ago, would have prevented many million dollars worth of have made a reasonable examination of provision. After long and exhaustive con these projects. The projects for Gilbert and sideration of the situation the committee damage in the aNas below their sites. They were covered adequately and completely in a Lone Rock Reservoirs were actually recom arrived at what is believed to be a most sat mended by the District Engineer for the isfactory arrangement in the division of survey report by the Corps of Engineers com pleted in 1948 and submitted to the Congress, Corps of Engineers and this recommendation costs for this project. After further discus was later reversed by the Chief of Engineers sion during the meeting of the Senate and and contained in House Document 367 of the 81st Congress. Their economic justifica · only because of the application of an intri House conferees on S. 497 an amount was cate formula for the evaluation of power. arrived at which was felt to be the maximum tion was amply demonstrated at that time. The growth and development in that area ·At the very best this would be an argument cash amount which the local people could between experts .on hydroelectric power de afford to contribute in addition to the costs since that time has been so apparent to even the most casual observer that there is no velopment. The committee considered the . of lands and rights-of-way and the usual views of the Bureau of the Budget in this provisions in a flood control project. This question about the economic justification of connection and used its own judgment in amount is in excess of $1 rnill1on in compari these reservoirs. The President, however, arriving at its evaluation of the potential son to the more than $6 million recom would require that brand new reports be sub value of the development of these natural mended by the Chief of Engineers and the mitted with new economic justification and resources. The committee believes it has Bureau of the Budget in accordance with new detailed surveys. In order to be sure access to as many experts on this subject, the completely ·unrealistic provisions of cir of its position, the committee called upon the including the Corps of Engineers, as has the cular A-47. As in the case of the Saline Corps of Engineers and local witnesses to President and believes its judgment on this River Basin, Illinois, local interests, which testify as to the worth of these projects and technical matter to be superior to that of are predominantly located in a rural farm their testimony was so convincing that the the President. The projects for Sherwood ing area, will have insuperable difficulties in committee had no hesitation in including Reservoir and Broken Bow Reservoir for raising $1 million and it woul~. be com them in the omnibus bill. hydroelectric power development are in the pletely impossible for them to consider rais The next project, for the Gila River Basin same category. Here, again, it is a matter ing more than $6 million in cash in addition in Arizona, was included in the original bill of differences of · opinion between experts to the costs of lands, and rights-of-way, etc. which was vetoed in 1956, and was removed and the committee has considered both sides because of the objections of the Bureau of MISSISSIPPI ·RIVER AT ALTON, ILL. of the question and has chosen to use its the Budget. In the intervening time a new own judgment in including these projects in This is a project for a small boa·~ harbor study has been made and a new project pro with a total cost 'of $167,000 of which the the bill. With respect to the project for posed considerably less extensive in scope Rome, N. Y., on the Mohawk River, this Chief of Engineers recommended that $100,- than that of the 1956 project and one which 300 should be the Federal cost and $~6, 700 project was recommended by the Chief of engineering studies by the Corps of En Engineers because although it fell slightly should be the non-Federal cost. The Bureau gineers have shown to be amply justified. of the Budget and the President are dis . below a benefit-cost ratio of unity based on This project would save water in a part of the dollars and cent&, it was considered to have satisfied with the amount of local contribu country where water is vitally needed, would tion and insist that the local costs should high ,intangible values in that it would pro help in the control of floods and would bene tect lives and would promote the general be raised to $105,500. The Senate and House fit the general economy. The project was conferees did not concur in this relatively welfare of this city. The committee agreed well justified and was thoroughly discussed with the Chief of Engineers that in certain large proportion of non-Federal cost and at the meeting between the Senate and have included the item in the bill the way special cases of this kind these intangible House conferees in their consideration of benefits should be given consideration. it was recommended by the Chief of Engi the final version of the omnibus bill. neers, those "professional services" whose The final project in this category, Green SUBPARAGRAPH 3-4 considered judgment the committee accepted ville Harbor, Miss., is the.same type of pro.i Presid.ent's comment: "4. It would author just as the President urged in his veto ect for improvement of navigation facilities ize the reimbursement of local interests for message. · on the Mississippi River that have baen con work accomplished by them in their own be The foregoing examples are illustrations of structed at other locations such as Vicksburg. half prior to authorization of a Federal proj what the President means by insufficient In the latter case the Bureau of the Budget ect, on the grounds that the work is similar local cost sharing. Actually the point in had no objections to the project and the to that undertaken elsewhere by the Federal volved is an honest difference of opinion be committee and the Congress has felt that Government. I consider it.quite inequitable tween the Congress of the United States and in view of th~ similarity between the two to provide for this kind of reimbursement the President as -to how much local people projects there could be no reason for the when local communities all over the country can or should contribute to a Federal project President to object to the project for Green are investing their money in public works for navigation or flood control. The same ville. This project is recommended by the projects which are similar to many kinds of kind of analysis has been made of all of president of the Mississippi River Commis Federal projects." the other projects listed in the foregoing sion. It has a benefit cost ratio of 4.51 which Rebuttal: This refers to a navigation . table, and in the judgment of the committee is unusually high. The project was thorough channel in the vicinity of La Quinta, Tex. and the Congress the amounts as contained ly considered by the committees and by the The refutation of this argument was made in the omnibus river and harbor and flood Congress and the fact that it did not have last summer in the report of the House Com control bill, S. 497, are appropriate and a formal report cleared by the Bureau of the mittee on Public Works, Report No. 1122, proper and reflect the realities of the situa Budget was considered to be insufficient rea which was printed on August 13, 1957. On tion. Each case has been considered on its son as in the few other cases described in page 28, the committee made the following . own merits and the rigid formula followed this analysis to warrant its exclusion from statement and it is believed nothing further by the Bureau of the Budget has been dis this omnibus river and harbor bill. can be added to show the complete invalidity carded in those cases where its application The coillmittee had in mind, too, that if of this part of the veto message. As a mat . would be infeasible. there is another 4-year lapse between this ter of fact, there are 3 other i terns in S. 497 SUBPARAGRAPH S-2 authorization bill and the next one, through dealing with reimbursement to which the President's comment: "2. It would author Presidential action or otherwise, those needed President did not object, and yet in prin ize 4 projects estimated to cost over $27 mil· projects which have a higl1 benefit cost ratio ciple tlley amount to exactly the same thing. 1274 CONGRESSIONAL .RECORD -HOUSE April 24· The statement concerning La Quinta chan Budget, made a reasonable decision and Rebuttal: The first sentence of this para nel from the committee report on S. 497 is pointed out that the Chief of Engineers had graph of the veto message is a statement quoted below: covered this contingency by recommending which is completely contradictory to the "Remarks: The Chief of Engineers recom that the project be authorized on the basis actual wording of the bill. This sentence mended that local interests be reimbursed of this cash contribution and that in the states that storage for low flow augmenta the sum of $954,000, which is the amount event the contribution was not forthcoming tion may be provided without reimbursement they have expended in excess of their 50 per within a period of 5 years after notification even though the beneficiaries of such works cent contribution under the 'one user• con that work could begi,n, the project would be may be clearly identifiable. Section 205 of cept. The Bureau of the Budget and the automatically deauthorized. This is consid the omnibus bill ' states that such low flow Secretary of the Army have recommended ered to be ample protection for.- the United augmentation may be provided only where this reimbursement not be made. The com States and would provide local interests with the benefits are widespread, general, and mittee is at a loss to understand the reason an opportunity to secure the improvement nonexclusive. In other words, the bill states ing behind the latter position. The original if they so desired. The committee felt that that such iow fiow augmentation or storage report of the Chief of Engineers was com the views of the Secretary of the Army in this for this purpose may be provided without pleted last summer ~d submitted through case were reasonable and included the proj reimbursement where the beneficiaries are channels to the Bureau of the Budget. It ect in the omnibus bill. It is inconceivable not clearly identifiable, whereas the Presi recommended that the project be con that this project would be a major reason dent's veto message says exactly the con structed under the 'one user' concept with for a veto of a $1¥2 billion omnibus river and trary. There has never been any misunder local interests contributing 50 percent. If harbor and flood control bill. The very in standing about this provision of the bill. the project had been adopted at that time clusion of this item in the veto message It is not only stated clearly in the bill but the committee believes that there would is in itself overwhelming evidence of the it is explained and discussed at considerable have been no question about its authoriza inadequate and hasty consideration which length in the committee reports and in the tion as a Federal navigation project on a must have been given to this extremely im debates on the fioors of both the Senate and 60-50 matching basis, because of the need portant measure. the House. for the deeper draft channel brought about SUBPARAGRAPH 3-6 This whole matter of water-supply provi by the impending use of larger ore carriers. sions has been given more attention and If the dredging had been postponed until President's comment: "6. It would au thorize as costs to Oahe and Fort Randall more time by the committees and by the the normal process of authorization and ap Congress than probably any other item in the propriation could have been followed, this Reservoirs five payments for damages alleged to have been suffered from construction of bill. The President's fiat statement in the need could not have been met and, further veto message that there has been insufficient more, such postponement would have re those reservoirs -in South Dakota. In three of these cases the executive branch has deter exploration of the complex legal implications sulted in an additional economic loss be shows a complete lack of understanding of cause advantage could not have been taken mined that there is no legal liability and the Congress has previously accepted this what is proposed by this section. Section of the fact that a dredging contract was be 205 as now contained in the bill represents ing advertised for anot her project which determination. In one of the other 2 cases there appears to be no merit to the claim, a broad·statement of policy regarding future could be combined with the new work at a water supply and one within the framework resulting saving. It appears obvious to the and in the final case it may be possible to adjust the claim administratively." of which the agencies can proceed with suffi committee that the dredging undertaken cient flexibility to develop the best overall was in accord with the ordinary principles Rebuttal: The matter of payment by the United States Government for certain dam use of water resources in a river basin. This of good business. The committee notes that section i~ of vital importance because of the local interests did not qualify their propo ages suffered from construction of t.he res ervoirs referred to in this subparagraph has increasingly acute water shortages which are sition to advance the money for dredging developing in the more arid sections and, in with the proviso that such funds should be been a matter of discussion and debate over 2 Congresses and for a period of 3 years. some cases, in the humid areas and which later repaid by the United States but were give promise of developing on a nationwide willing to take their chances on the reason There is ample ground for an honest differ ence of opinion in these matters. The total basis before too many years. The vastly in ableness of such reimbursement. The com creased use of water for municipal, indus- · mittee does not believe in reimbursement for amount of the. payment involved is $412,000. In the final judgment of the congreEs it trial, and agricultural purposes has been the work accomplished prior to authorization as concern of many observers engaged not only a general rule but most emphatically believes appeared equitable that these damages be paid as a result of the construction of the in long-range planning but in planning for that each caEe should be considered on its the more immediate future. own merits. It considers that the equities Federal dams, and therefore the item was included in the bill. Again as an· example The authority provided by section 205 involved in the present case are such as to would do two fundamental things. First, it justify the inclusion of this item in the bill." of the hasty and m,.considered veto message, it may be noted that 1 of the 5 payments would permit storage for low fiow augmen SUBPARAGRAPH 3-5 referred to therein is one in which it is tation to be included without reimburse President's comment: "5. It would au stated in the veto message itself "it may be ment. This covers cases where benefits are thorize a new small boat harbor in spite of possible to adjust the claim administra widespread and nonexclusive as for exampie the fact that a·dequate harbors are located tively." If this is true, it should not be . a reservoir in the upper Ohio River basin nearby and the likelihood that local interests cited as a reason for objection to the mimi which might well provide low fiow augmen cannot meet the cost-sharing requirements bus bill. With respect to the other four cases, tation to communities all the way down recommended by the Chief of Engineers." the Congress believes it knows a great deal the Ohio and the Mississippi. In this type Rebuttal: This is the part of the veto state about the equities of this matter and is as of case obviously there can be no reimburse ment which is hardest to understand. It ap well informed as the President, and feels ment expected because of the impracticabil pears obvious that the message was prepared that it is thoroughly justified in including ity of assessing cities, towns and communi in haste and given little consideration. The these payments in the omnibus bill. ties over such a long distance. Second, new small boat harbor in question is located this legislation would permit storage to be at Hull Creek, Va. This is similar to the SUBPARAGRAPH 3-7 constructed in reservoirs where it is ap many small boat harbors located throughout President's comment: "7. It would au parent there will be a future demand but the United States improved by the Federal thorize, in reservoir projects of the Corps of where the necessary organization is not in Government for many years. It serves both Engineers and the Bureau of Reclamation, existence at the time of construction. Un commercial fishing craft and recreational the inclusion without reimbursement of der section 205 such reimbursement would craft. As a resu~t of his study, the Chief of water storage for increasing the fiow in be collected at some later date when condi Engineers recommended the project at an times of low water, even though the bene tions were appropriate on terms that would estimated Federal cost of $269,800 subject to ficiaries of such works may be clearly iden be equitable to the United States as pro the condition that local interests contribute tifiable. It would also authorize the inclu vided in the bill. approximately $70,000 in cash to the improve sion of municipal and industrial water sup This section is wise and prudent legisla ment, in addition to the cost of lands and ply storage in such projects without provid tion. It is urgently needed to meet one of rights-of-way and other customary items. ing adequate standards for payment of an the most acute domestic problems facing This contribution in cash follows the prin appropriate share of the basic costs by local the country and it deals with the problem ciple established in the development of small interests. In addition, there has been in in sufficiently broad and fiexible terms to boat recreational harbors. In accordance sufficient exploration of the complex legal suit the varying needs and requirements as with the law, the Chief of Engineers referred implications of these ambiguous provisions they arise. To use this section as one of his report to the State of Virginia and to in as affecting water rights. It is my firm con the main reasons for a veto is to indicate terested Federal agencies. The State of Vir viction that such important substantive a complete lack of familiarity with the do ginia replied that in its opinion local in mestic problems in the field of water re terests would be unable to contribute the changes affecting water resources policy and costs should be made, if at all, only after sources development. With. respect to the amount of cash recommended. The Bureau President's comment · that such legislation of the Budget seized upon this point and said full, independent consideration not related should be made the sUbject of independent that because of the views of the State of to an omnibus authorization bill. The Sec consideration and not related to an omni Virginia the project should not be author retary of the Army has previously made bus authorization bill, it should be pointed ized. The Secretary of the Army, in review suggeEtions for acceptable legislation on out that all such legislation dealing with ing the comments of the Bureau of the this subject.'' water resources in the past had been con- 1958 CONGRESSIONAL RECORD_- HO.USE .7275 tained in omnibus river and harbor and b111 in accordance with the recommenda 1954. The preceding one which amounted flood control bills. The present legislation tions of the Chief of Engineers. The Bureau to a total of $1,654 million was passed in is not an exception or precedent. It fol of the Budget, in its comments on these 1950, and the major one preceding that lows traditional fashion. reports, recommended that authorization amounting to $1,443 million was passed in The committee feels very strongly that of these projects be deferred until further 1946. These bills are concerned with the section 205 is so important and so vital to studies have been completed of hurricane regular and the normal development of the the national interest that it should have structures on the eastern coast and on the Nation's water resources. The very refer provided the basis for the President's ap gulf coast and _a proper distribution of Fed ence to them in the Presidential veto mes proval of S. 497 no matter how many mis eral cost be determined. The President has sage as antirecession bills is completely un givings he may have had about the rest of varied somewhat from the original Bureau founded and is again an indication of a the bill. of the Budget recommendation in that he desire apparently to mislead rather than to· SUBPARAGRAPH 3-8 now states that he has requested the Secre enlighten. President's comments: "8. It contains a tary of the Army to submit at the earliest PARAGRAPH 6 practicable date his recommendations for provision that, contrary to a time honored an appropriate division of responsibility be President's comments: "At the present principle, is intended to affect the conduct tween the Federal Government and the time there is backlog of public works proj of litigation now pending in a Federal affected State and local governments. The ects estimated to cost nearly $5 billion. court." President states that he then wlll be pre With a few minor exceptions, it would be Rebuttal: No one but a student of the bill pared to submit appropriate legislation. many months, even years in the case of would know where this particular item The fact is that the Secretary of the Army larger projects, before the necessary plans would be found. As is true throughout the already has submitted his recommendations could be completed and actual construction veto message there is little identification be to the Congress in the reports accompanying started on the new projects which this bill tween the projects referred to and the com the comments of the Corps of Engineers and would authorize." ment. In this way the veto message can be the Bureau of the Budget. These recom Rebuttal: As in the previous subpara couched in general terms and the identity of mendations are based upon the philosophy graph, this again has no relation to the omni the projects or items referred to concealed. that damages from hurricane floods are bus bill. The fact that there is a backlog of The particular issue involved in this sub similar to damages from river floods and public-works projects is of no significance in paragraph concerns Markham Ferry Reser that the Federal Government should, in gen considering the purpose of the omnibus bill. voir in Oklahoma. It was thoroughly dis eral, participate to the same extent. It was It is obvious to any student of the subject cussed in debate on the floor of the House of pointed out during committee hearings on that the programs for rivers and harbors and Representatives during passage of S. 497. these projects that it little concerns a prop flood control cannot be considered static. The provision is not intended to affect the erty owner whether his home is flooded, or Like most human endeavors these programs conduct of litigation as stated in the Presi his life endangered, by salt water or by must be treated as flexible undertakings sub dential veto. It is intended simply to let fresh water. If there is justification for the ject to modification and additions as condi the issue come to litigation. A loosely p articipation by the Federal Government in tions warrant. Floods are no respecter of worded proviso in the act authorizing a Fed the protection of floods from rivers, then priority of authorization and any philosophy eral contribution for flood control toward there is certainly equal justification in the which says that all meritorious projects now the cost of the Markham Ferry Reservoir has participation of the Federal Government in authorized should be constructed before any been interpreted to prevent the authority the protection of floods from hurricane new ones are considered ignores the nature which has constructed the reservoir to make storms. of physical phenomena and meaning of the any claims for damages against the United These projects are a direct result of the civil-works program and indeed logic itself. States for the Fort Gibson Reservoir, an en study and investigation made by the Corps It is emphasized that S. 497 is an authori tirely different structure many miles away. of Engineers following the disastrous hurri zation measure and does not impose any It is customary in Federal projects that a canes of 1955. in New England and in the obligation upon Congress subsequently to provision be inserted that local interests be area further south. These are the first proj appropriate money for any project author required to hold the Federal Government ects resulting from that study and it is ized therein. It is normal procedure for the free from damages due to the construction felt that they should be included in the Corps of Engineers and the Bureau of the of a project but nowhere in the history of omnibus bill at this time and not be re Budget to consider the economic justifica flood-control legislation is there any instance quired to wait for some future omnibus bill tion of authorized projects at the time it is when local interests are required to hold the or separate legislation. The project for proposed to initiate construction. If at that Federal Government free from damages due Narragansett Bay would protect the city of time any of the projects in the bill are not to the construction of an entirely different Providence and anyone who has seen the economically justified, complete control over project in an entirely different geographical terrible destruction wrought by the 1955 the ·matter of appropriations is exercised by location. This proviso in the bill does not hurricanes in this city can well understand the Bureau of the Budget, the President, the affect the merits of the case pending in the views of the committee and Congress in Appropriations Committees, and the Con Federal courts. It merely permits the settle including this item in the omnibus bill. gress itself. ment of the claim on a judicial basis. The The same holds true for the New Bedford PARAGRAPH 7 true facts in this case are considerably dif and Texas City areas .. President's comments: "I believe that the ferent than one would gain from reading PARAGRAPH 5 experience of the last 3 years suggests that the Presidential veto message. President's comments: "The argument has the authorization of water resources develop PARAGRAPH 4 been advanced that S. 497 is needed for the ment projects might better be handled by a President's comments: "In addition, the stimulus to the economy which would re divided approach to the problem. Projects bill would authorize 3 projects estimated sult from starting the projects it would favorably reported on by the Chief of Engi to cost about $38 million, representing the authorize. I would point out that signifi neers, and to which the executive branch first proposals for a broad new Federal pro cant steps have already been taken to accel h as no objection, could be included in one gram of hurricane flood protection in tidal erate Federal construction activities. bill. The authorization of other projects, waters, without adequate consideration of Should it be found desirable to increase not meeting either of the above criteria, the level of local participation in the cost of these activities further, appropriations will could then be proposed in separate b1lls, one such a program. These three are sound, be recommended for projects capable of be for each such project. This approach worthwhile projects, and I believe that the ing started quickly." would, I believe, provide a better opportu Federal Government has a responsibility to Rebuttal: The argument referred to by nity for the kind of careful review by the assist State and local communities in such the President as cited above certainly has Congress and the executive branch which a program of local protection against floods not been advanced by the members of the should be given to matters of such impor resulting from hurricanes. I have, there committee who are most familiar with the t ance to the people o! this nation." fore, requested the Secretary of the Army to omnibus river and harbor and flood-control Rebuttal: This is an effort to obtain the submit to me at the earliest practicable d ate bill. Although some projects in this bill famous "item veto" provision so long desired his recommendations for an appropriate might well fit into the general plan of pub by the executive branch whereby those proj division of responsibilities between the Fed lic improvements needed to combat a reces ects in omnibus bills of this nature, includ eral Goverm:nent and the affected State and sion, that is not its primary purpose nor ing appropriation bllls, could be vetoed or local governments for such a program. I has it been so contended by this committee. approved individually by the President. It shall then be prepared to recommend to the This is a regular river and harbor and flood would mean the complete abrogation of the Congress the enactment of iegislation on control bill which normally is considered by powers of Congress and would leave the Con this subject." the Congress at intervals of several yea~s. gress no opportunity to exercise its judgment Rebuttal: The three projects referred to Omnibus navigation bills have been consid or initiative. This philosophy has been in this paragraph are authorizations for the ered and passed by the Congress for many, thoroughly discussed and its undemocratic protection from hurricane floods in the many years. Omnibus flood-control bills principles exploded many time in the past. Providence area of Narragansett Bay ~or pro started with the inception of the national Time and again the Congress has shown its tection of the New Bedford, Fairhaven, and flood-control program in 1936. The last reluctance to grant the power of an item Acushnet area and for the protection of omnibus bill was vetoed in 1956. The last veto because any such power would destroy Texas City, Tex. The committee has seen bill to become law which amounted to the delicate relationship between the execu• fit to include these projects in the omnibus slightly more than $1 billion, was passed in tive and the legislative branches. 7276 CONGRESSIONAL ~ RECORD- HOUSE April 24 PARAGRAPH 8 The SPEAKER. Is there· objection to we are denled the right by this veto to President's comments: "Meanwhile, I rec· the request of the gentleman from Okla- invest similar sums in projects here in ommend that the Congress act quickly to homa? · the United States for these all-impor- provide increased monetary authorizations There was no objection. tant purposes, a ·vast majority of whicb for the river basins where 1958 and 1959 fund requirements for projects now under Mr. EDMONDSON. Mr. Speaker, I have met the approval of .and have the construction will exceed present statutory join wholeheartedly in the statement support of both the Bureau of the limits. This can be accomplished by enact· made by the gentleman from Mississippi Budget and the Corps of Army Engi ment of legislation submitted to the Con· [Mr. SMITH] and to say that in my opin- neers. gress in January by the Secretary of the ion this controversy boils itself down to Army." a basic fundamental difference between RIVERS, HARBORS, AND FLOOD Rebuttal: The river basins which need ad· ditional monetary authorization are in seri· not the Democratic Party and the Presi- CONTROL PROJECTS ous difficulties. These river basins are as dent but rather between the Congress follows: · of the United States and the President. Mr. McFALL. Mr. Speaker, I ask Central and southern Florida project. · If we permit this veto to stand, if we unanimous consent to address the House White River Basin in Arkansas. follow the recommendations of the Presi for 1. minute and to revise and extend Comprehensive Columbia River Basin dent as to our future action and submit my remarks. plan. only to him items for authorization The SPEAKER. Is there objection to Kaweah and Tule Rivers in California. which have the approval of the Bureau the request of the gentleman from Cali· Comprehensive flood control plan for the of the Budget, then we might just as Los Angeles area. · fornia? Comprehensive Basin plan for the Santa well give the President item veto au There was no objection. Ana River Basin in California. thority here and now and be done with Mr. McFALL. Mr. Speaker, I wish to It is normal procedure in basins of this it. join wholeheartedly with the gentleman type for the Congress to limit the monetary I do not believe any Member of Con- from Mississippi and to commend him authorization so that the plans can be re· . gress wants to abdicate all Congres for his statement. examined from time to. time, and the mane· sional authority or Congressional respon The entire Nation and particularly tary authorizations increased accordingly as the appropriations begin to approach the sibility in the field of water development. my State of California has a tremendous monetary ceiling. These ceilings were being But that is exactly what the President is · stake in the passage of the rivers and approached in 1956 when H. R. 12080, 84th proposing in this veto message. I hope harbors bill, S. 497. Congress, was approved by Congress. In that those on the Republican side of this I wish to specifically commend his 1956 there was ample time for the monetary House will join enthusiastically with statement on Hidden and Buchanan Res· authorizations to be increased if H. R . 12080 those on the Democratic side of the ervoirs in the San Joaquin Valiey of had been signed. That time margin no House in insisting upon the right of California, which were two of the proj longer exists. Three of the river basins cited have run out of monetary authorization in Congress to legislate and to decide fun ects used as a basis for the veto. the present fiscal year. All six basins will damental policy in the field of water de I have just returned from inspection have exceeded their monetary authorization velopment in this country of ours. of flood damage in northern and centr~l in the fiscal year of 1959. In other words, The SPEAKER. The time of the gen . California estimated to be $32 million. funds requested in the presidential budget tleman from Oklahoma has expired. These two dams would have substantial now under consideration by the Appropria· Mr. WRIGHT. Mr. Speaker, I ask . ly reduced this damage, and the need for tions Committees for these basins are in unanimous consent to address the House their construction has been even more excess of the monetary authorization and · firmly established. therefore cannot be appropriated. The total for 1 minute and to revise and extend shortage in all 6 basins is approximately $60 my remarks. The Army Engineers have reported the million. The stoppage of work in these ba· The SPEAKER. Is there objection to necessity for these projects, as has the sins at this time would cause irreparable the request of the gentleman from State of California. It is regrettable that harin. The President's proposed solution is Texas? the administration has failed to recog again similar to that of an item veto. The nize that its original objections made 10 President wishes the Congress to select these There was no objection? Mr. WRIGHT. Mr. Speaker, I should years ago have long since ceased to have· river basin authorizations for preferential any validity, if indeed, they had then. treatment. The same arguments apply like to associate myself with the remarks against this philosophy as was stated in the just made by our colleagues from Mis preceding paragraph in the discussion of the sissippi and Oklahoma. At the outset .\DJOURNMENT TO MONDAY, item veto. If work must be stopped in these of this session of Congress the Presi APRIL 28 basins, the blame lies fairly and squarely on dent of the United ·states in his state of the veto. the Union message warned against al Mr. McCORMACK. Mr. Speaker, I SUMMARY OF MONETARY OBJECTIONS lowing a valuable economic program to ask unanimous consent that when the The monetary objections to the bill are be shot down with what he called a House adjourns today it adjourn to meet summarized in the following table: slogan. He was referring, of course, to on Monday next. Summary of amounts inS. 497 objected to or the mutual security or foreign aid pro The SPEAKER. Is there objection to not approved by the President, the Bureau gram, and the slogan to which he re- the request of the gentleman from Mas of the Budget, and the Chief of Engineers . ferred was the phrase "giveaway." sachusetts? There was no objection. Amount In bll' ob- It seems to me, however, that the jected to or not President in vetoing the rivers and har- Total approved by the- Veto message amOLmt bors bill has unwittingly lent the pres- CALENDAR WEDNESDAY BUSINESS in bill tige of _his high office to the shooting President .Chief of down of a very valuable economic pro Mr. McCORMACK. Mr. Speaker, I Engineers gram which today lies the victim of an ask unanimous consent that business in · inappropriate, inaccurate, and irre · order on Calendar Wednesday of next Par. 3: week may be dispensed with. Subpar. t______$167, 680, 500 $14, 356, 400 $6, 288, 600 sponsible slogan "pork barrel.'' Subpar. 2------27, 500,000 27,500, 000 4,100, 000 The SPEAKER. Is there objection to Subpar. 3 ______It further occurs to me that the Subpar. 4 ______12,069,000 1240 000 (1) the request of tbe gentleman from Mas . 954, 000 954:000 0 President in vetoing this important bill Subpar. 5______269,800 269, 800 0 will have unwittingly made it extremely sachusetts? Subpar. 6------412,000 402, 000 402,000 difficult for a great number of the Mem There was no objection. Par. 4------37,836,000 37,836,000 ·o TotaL ______bers of Congress to follow and support 236, 721, 300 81,558,200 10,790,600 his mutual security program if this veto PERMISSION TO COMMITTEE ON Percent of total bill. 5.2 o. 7 . should be allowed to stand. It is most · -· ------. difficult for the average Member of Con- ASTRONAUTICS TO SIT DURING t Specific amounts for items objected to by President . gress to justify to his people the spend- SESSIONS OF HOUSE are not in bill in 2 cases.. · ing of their money for the construction Mr. McCORMACK. Mr. Speaker, I Mr. EDMONDSON. Mr. Speaker, I as)t of dams and water resource develop ask unanimous consent that the Select unanimous consent to address the House ments in foreign countries without any -Committee on Astronautics ·and Space for 1 minute, and to revise and extend report whatever from the Bureau of the Exploration may sit during sessions of my remarks. Budget or the Corps of Engineers, when the House next week. 1958 CONGRESSIONAL RECORD- HOUSE 7277 The SPEAKER. Is there objection to . The SPEAKER. Is there objection to The SPEAKER. Is there objection to the request of the gentleman from Mas the request of the gentleman from the request of the gentleman from Mas sachusetts? Hawaii? sachusetts? · There was no objection, There was no objection. There was no objection. Mr. BURNS of Hawaii. Mr. Speaker, Mr. DINGELL. Mr. Speaker, the un on April 16, 1958, I introduced H. R. employment rolls in this country have NO PROGRAM FOR MONDAY 11955, a bill to amend section 1237 of reached the highest point in 17 years; 5.2 Mrs. ROGERS of Massachusetts. Mr. the Internal Revenue Code of 1954. millions of Americans are out of work Speaker, I ask unanimous consent to While the amendment is of particular and the workweek for other Americans proceed for 1 minute. importance to Hawaii where a majority has dropped from in excess of 40 hours The SPEAKER. Is there objection to of available land for industrial develop to 39.8 hours a week, the loss of an the request of the gentlewoman from ment, as well as home and business de additional 2 million jobs not reflected Massachusetts? velopment, is in the hands of a few on the unemployment rolls. · Automobile - There was no objection. large holders who have had the prop dealers last week announced c-losing of Mrs. ROGERS of Massachusetts. Mr. erty for many, many years, the amend other factories to readjust inventories to Speaker, I wish to ask the majority leader ment proposed is also of importance in consumption. The administration itself the program for Monday. many Congressional Districts. underscores the present economic situa Mr. McCORMACK. There is no pro The amendment adopts a fragment tion with the words, "unemployment re gram for Monday. ing approach to the taxation of land mained virtually unchanged at 5.2 mil Mrs. ROGERS of Massachusetts. So sales. Under this fragmenting ap lion over the month and did not show it makes no difference if we work on proach, the gain on the sale of land its usual seasonal improvement between :flood relief and various things in Massa would be divided into two parts. That February and March." Normally a drop chusetts on Monday. part which represents the difference be of around 5 percent in unemployment Mr. McCORMACK. The gentle tween the wholesale value and the tax is expected at this time of year; it did woman from Massachusetts is such an basis immediately prior to sale would not materialize. As a result the season indefatigable worker that I wonder that be taxed at capital gains rates. ally adjusted rate of unemployment ad 24 hours a day is enough for her to get Congress has clearly intended capi vanced to 7 percent as compared with all her work done. tal gains treatment for this kind of 6.7 percent a month earlier and 3.9 per / Mrs. ROGERS of Massachusetts. I appreciation in value. That part of the cent in March a year ago. The hard think every Member of Congress works gain which represents profit from sub ship of our unemployed is enormous. 24 hours a day. He dreams about his division activities would be taxed as ordi But the inability to sustain an adeq'uate work if he is not actually at work in his nary income. This treatment is also re diet affects many others in what we omce. sponsive to the intent and concept of sec hopefully consider the richest land on I am always very glad of the gentle tion 1237. earth. There are tremendous numbers man's help. Although the fragmenting approach of families who are normally in the low ·Mr. McCORMACK. There will be no presents some administrative problem in income brackets, for example, retirees, business on Monday. that the land must be valued prior to sub pensioners, widows and orphans on so division, this problem is not at all cial .security and aid to dependent chil formidable or dimcult and this sep dren, recipients of old-age assistance. ISRAEL'S lOTH ANNIVERDARY arable valuation is really the only Even during the recent good times Amer Mr. VANIK. Mr. Speaker, I ask unan logical and practical solution. A com ica has had upward of 33 million people parable situation presently exists under in families with incomes of less than imous consent to address the House for 1 section 631 of the code with respect to minute. $2,000 per year. Fourteen million are in The SPEAKER. Is there objection to sales of timber. families with incomes under $1,000 per the request of the gentleman from Ohio? Under section 631, the taxpayer may year. There was no objection. elect to treat the cutting of timber as I have been extremely critical of Sec Mr. VANIK. Mr. Speaker, at this the sale or exchange of a capital asset, retary of Agriculture Benson's inade time when we observe the lOth anniver in which case the capital gain or loss quate and inemcient use of surplus com .. sary of the establishment of the State of is determined to be the difference be modities to feed our hungry at home. Israel, permit me to invite the attention tween the tax basis of the standing tim While shipping food abroad in record of my colleagues to the local observance ber and the fair market value of the cut quantities, the amount of food made of this occasion by the people of my city. timber. This fair market value of cut available to our own hungry has, accord In Cleveland, Ohio, on Wednesday eve timber is thereafter treated as the basis ing to the Department of Agriculture's ning, June 4, at Severance Hall, the of the cut timber for purposes of deter own figures, dropped substantially. The Jewish Community Federation will mining ordinary gain or loss upon its number of kinds of commodities made sponsor a local celebration as a part of subsequent sale. available to our own hungry here in the national activities coordinated -by Section 631 has posed no serious ad America are limited to five--flour, corn the American Committee for Israel's ministrative problems, and the proposed meal, rice, dried skim milk solids, and lOth Anniversary Celebration. amendment to section 1237 should be cheese. Recently a limited amount of Gov. G. Mennen Williams will be the entirely workable. butter was added to these items and guest speaker on this occasion, and I Brie:tly stated, it may be said in support should begin reaching our people shortly. am happy to serve as one of the spon of H. R. 11955 that it will not only correct However, during this time, other com sors of this event. an inequity in the statute, but it will modities-like meats and poultry, edible The creation and existence of the eliminate the principal deterrent to the oils, fruits, vegetables, and other items State of Israel has been the most effec disposal of property and undoubtedly have been going abroad in substantial tive deterrent to an outbreak of world result in an increased :flow of revenue quantities. A number of these items of war ni in the Middle East. The pres from property transactions and home surplus food have been commodities not ence of this democratic nation in an sales and construction. The evils of stag included in the regular price-support area of the world where there is pre nation, halting as it does the forward structure ministered by. the Commodity <;ious little democracy in practice is a progress of a vigorous economy, will, in Credit Corporation, and for that reason source of inspiration to free men ev-ery one particular at least, be avoided by the protestations of the Department of where. We know that in. the State of passage of H. R. 11955. Agriculture that it has been doing all it Israef, America will always have a_ could for our hungry have seemed vastly friend. more respectable than they really were. UNEMPLOYMENT ·an a number of occasions I have out Mr. McCORMACK. Mr. Speaker, I ask lined how the flinty-hearted Secretary of TAXATION OF LAND SALES unanimous c.onsent that the gentleman Agriculture has available to him substan : Mr. BuRNS-of Hawaii. Mr. Speaker, I· from Michigan [Mr. DINGELLJ may ex-· tial funds to help buy surplus foods for ask · unariimous consent to extend my tend his remarks at this point in the distribution to our own vast army of remarks at this point in the RECO-RD. RECORD. underfed and undernourished pe()ple. CIV-459 7278 CONGRESSIONAL RECORD- HOUSE April 24 Mr. Benson has about a half million I would suggest that with or without Northwest, particularly the people of the dollars authorized for this use which he enactment of the bill which we sponsor Fourth Congressional District of Oregon refuses to spend. This comes from sec here that Mr. Benson get busy and pur whom I represent, and with the Douglas tion 32 of the Customs Act of 1935, which chase some of these commodities to add fir plywood industry which is vitally appropriated 30 percent of all tariff re to. the Department's donation program. important for production and employ ceipts to the Department of Agriculture I would also c'all attention of Mr. Ben ment in that region of the country. for diversion from trade channels of son to the fact that grape juice concen My hope is that all of these good peo agricultural commodities surplus to trate and canned and frozen cherries ple and their representatives in Wash America's domestic needs. Such moneys produced by the farmers of the State of ington can devote their energies to solv are placed in a special fund to be used by Michigan are in substantial excess to ing the real problems affecting the the Secretary of Agriculture, among present need, and that he could very Douglas-fir plywood industry instead of other things, to "encourage the domestic well continue his purchase of these com jousting such mythical windmills as the consumption of agricultural commodi modities with section 32 funds for dis so-called threat of plywood-import com ties by increasing their utilization tribution to our hungry at home. petition. through benefits, indemnities, donations, Here are the propositions for which or by other means among persons in low I shall present evidence: income groups." THE PLYWOOD PROBLEM IN THE First. That no Japanese hardwood ex It was under this language that ana PACIFIC NORTHWEST ported to us contains Soviet lumber. Second. That the current difficulties in tionwide food-stamp program was con The SPEAKER. Under the previeus ducted in the late thirties and early for the Pacific Northwest's plywood indus order of the House, the gentleman from try do not stem from imported plywood ties, a program which worked well and Oregon [Mr. PoRTER] is recognized for which placed substantial amounts of competition. 60 minutes. · Third. That the plywood industl:Y is food of many kinds in the hands and Mr. PORTER. Mr. Speaker, I ask stomachs of our large number of un basically in good shape, with fine pros unanimous consent to revise and extend pects for tpe future. dernourished and underprivileged peo my remarks and include extraneous ple. Fourth. That hardwood-plywood im matter. ports from Japan make many jobs in the Under this program the school-lunch The SPEAKER. Is there objection to program has been carried out and, thank Pacific Northwest. the request of the gentleman from Fifth. That the Japanese-plywood ex heaven, has been better run than other Oregon? programs of the Department of Agricul port quota, as imposed by Japanese law, There was no objection. is effective. ture. This year receipts of the Depart Mr. PORTER. Mr. Speaker, I re ment of Agriculture under section 32 are quested this time to discuss the contro Sixth. That Japan is a major and ex running at a rate of about $200 million panding market for United States prod versial issue of imported plywood and in ucts, including many from Oregon. a year, and have done so for the past few order further to expose one of the most years. The statute provides that sums vicious and deceitful campaigns in the Seventh. That the Soviet Union is try in excess of $300 million revert to the history of tariff controversy. My re ing hard to win battles for trade in Treasury at the end of each fiscal year. marks are directed particularly to the Japan and elsewhere in the world At the beginning of this year Mr. Ben gentleman from Washington [Mr. MACK] Eighth. That Oregon's leading 'news son had $297 million and anticipated re and the gentleman ·from Oregon [Mr. papers agree with my position on ply ceipts will put in his hands a total of NoRBLAD], both of whom have been duly wood imports. $514 million. According to estimates, notified of this speech. I know they are Ninth.· That making more money Mr. Benson will let $64·million revert to not the perpetrators of this hoax, but available for people who want to build the Treasury ·while our hungry have I believe they are its victims. and buy homes is the way to improve need of food which could be purchased I note they are on the floor; and I conditions in the plywood industry. with this money. My distinguished col shall be glad to yield to them at the con Let me dispose first of the most recent league from Montana [Mr. METCALF] clusion of my remarks for such comments and most ridiculous of the hoaxes i.n the has introduced a similar piece of legis as they may wish to make. plywood propaganda campaign. I refer lation and has shown that Mr. Benson I believe these distinguished gentle to the charge that Japanese hardwood has used some $90 million of section 32 men, along with a few individuals and plywood being shipped to the United funds in fiscal 1957 for feed for livestock organizations in the Pacific Northwest, States is made out of Soviet lumber. in drought and disaster areas, out of a have been hoodwinked by one of the This story first was put on record by a total $142.9 million expenditure of sec cleverest, most sustained, and best west coast union official. It has since tion 32 funds. financed propaganda campaigns ever been kept alive by the gentleman from I h·ate the suffering of anything in Washington [Mr. MAcK]. cluding livestock, but the need of our directed against import competition. undernourished people, of our hungry, A NONEXISTENT THREAT ORIGIN OF A HOAX needy, unemployed, and pensioners This campaign of incredible misinfor What precipitated this storytelling? should be cared for before livestock, or mation, directed and financed by a few The origin of the story is a news report foreign giveaways. . of the giants in the hardwood plywood from Tokyo announcing that Japan has For this reason I am joining a num industry, is intolerable in itself. But agreed to purchase a quantity of Rus ber of other Members of this House and what makes this criminal hoax com sian coniferous logs. of the other body in introducing legis pletely reprehensible is that it is focusing Coniferous trees, of course, are soft lation to compel the inhuman Mr. Benson. the attention of the Congress, the public, wood trees, like Douglas-fir and pine. to expend his section 32 funds for pur and particularly the people of the Pacific While the Japanese who are engaged in chase of food which is presently in sub Northwest, on a nonexistent threat, the plywood industry are efficient and stantial excess of domestic needs for thereby diverting their attention from clever, neither they nor anyone else can distribution to our hungry and needy. the real problems troubling the Douglas convert Russian softwood lumber into ' It is interesting to note that a number fir plywood industry. My purpose here Japanese hardwood plywood. Since all of commodities are presently depressed today is to answer with facts the special of the Japanese plywood imported into by excess supply. Because of the rather interest groups who are using outright the United States is hardwood plywood, unusual bookkeeping of the Department lies and half-truths in an attempt to it is obvious that no Russian softwood, of Agriculture it is almost impossible to mislead the people I represent. or, indeed, softwood of any kind, is uti discern what substances are presently Mr. Speaker, I have not requested this lized in the manufacture of these im in excess of supply and what substances time in order to defend the Japanese ports. are only moderately depressed. plyWood industry or its workers. While Moreover. . the news report on which The best information I can discern ·is we must be concerned with the economic this false charge was based explained that, among other commodities, poultry, welfare of the Japanese people, who con that the Russian logs purchased by the potatoes, soy beans, and edible beans are stitute a major bulwark of the Free J.apariese would .be used in Japan for substantially depressed and ·earning World in the Far East, my immediate pulp and COJ:lStruction purposes. Re much less than parity for their growers. concern is with the people of the ·Pacific ports from the Japanese industry indi- 1958 CONGRESSIONAL RECORD- HOUSE 7279 cate that the Russian logs are too small percent higher than the comparable attention of those interested that there and too imperfect to be used even for Douglas-fir plywood. During the last is a lack of competition. The Tariff Com the production of softwood plywood. year or more, %-inch A-grade Douglas mission's Report on the Escape-Clause The Japanese Government and the Jap fir plywood, the staple of the industry, Investigation No. 39, first published on anese Plywood Manufacturers' Associa has been selling for between $64 and $72 June 2, 1955, succinctly points this out. tion both have certified that not 1 foot per thousand square feet at the whole It reads: of this Russian lumber goes into, or sale distributors level. During this same Hardwood and softwood plywood are dis could go into, any of the hardwood ply period, the comparable grade of Japa tinguished from one another commercially wood shipped to the United States. nese plywood, %-inch A-grade, has been as well as botanically. The great bulk of This statement has been confirmed in selling for between $101 and $112.50. the domestic production of softwood ply all respects by our own Embassy in In the face of this economic compari wood is in plants which produce little or no Tokyo, which investigated the disposi son, a comparison known to nearly hardwood plywood. Conversely, the pre ponderant share of the domestic output of tion of the Russian lumber and officially everybody in the Douglas-fir plywood in hardwood plywood is produced in plants notified Washington that none of it goes dustry, it was amazing to me that the which pr9duce no softwood plywood. More into Japanese plywood. gentleman from Washington [Mr. MACK] over, largely because of differences in their NO "YELLOW PERIL" claimed cheap foreign imports are un respective physical properties, there is The Honorable Sinclair Weeks, Secre derselling Douglas-fir plywood. This limited substitutability in use between soft claim disturbed me tremendously, be wood and hardwood plywoods. Various tary of Commerce, so informed the hardwoods are sufficiently preferred in chairman of the House Ways and Means cause I know the gentleman to be a man many uses, such as furniture, flush doors, Committee, in his letter of April 3, 1958. of integrity and ability. cabinets, and decorative panels, that they That should put to rest this attempt to The answer, of course, was provided to command a materially higher price than weld the fear of a "Yellow peril" and a me only a few weeks ago, when the gen the softwood plywoods. There is a high de "Red menace" into a weapon of false tleman ·from Washington [Mr. MACK] gree of substitutability between plywoods stated during the course of a debate we of the various hardwood species. (U. s. protection. As the Secretary said, "We Tariff Commission, the production, importa believe this should terminate one area of had on this same subject that-- tion, and marketing of hardwood plywood discussion." The dutiable price on plywood-all types, in the United States, information obtained Equally preposterous, but much more the very high grade as well as the cheap in connection with the Tariff Commis fundamental, Mr. Speaker, is the claim grade-is figured at $65 at shipside in Japan. sion's Report on Escape-Clause Investigation that the current difficulties in the Doug This figure is lower than the going rate No. 39 under the provisions of sec. 7 of the las-fir plywood industry are the result of Trade Agreements Extension Act of 1951, for standard Douglas-fir plywood. published June 2, 1955, Washington, De competition from imported plywood. But there are 2 obvious factors that cember 1955.) More than 98 percent of all the plywood make this $65 completely meaningless in imported into the United States is made a comparison with Douglas-fir prices. I think it might be helpful in this from hardwood lumber; less than 2 per discussion to include a statement by Mr. cent from softwood. All of the plywood First. In the first place, this is a price S. W. Antoville, president of United from Japan, which is the principal f. o. b. Japan. To this initial cost must States Plywood Corp., in the RECORD at source of plywood imports, is hardwood be added the cost of ocean freight, a this point. plywood. This is a fact some people 20-percent tariff payable in the United Mr. Antoville, a man in a position to choose to overlook. States, and all the miscellaneous charges have the feel of the plywood industry of insurance, dock handling, and so on, has said: The gentleman from Washington [Mr. that go into the ultimate sale of im MACK] should know, as the men in the The major trouble with the fir plywood Douglas-fir plywood industry do know ported plywood. These costs would add business is that we have been too success and as the Tariff Commission pointed a minimum of $22 per thousand square ful • • • we have attracted too many out in its two comprehensive reports on feet to the $65 price cited by the gentle people, and as a result are suffering from the impact of plywood imports, softwood man, thus making the average at the overproduction. plywood and hardwood plywood have distributor's level in the United States a It might be enlightening to pursue different uses, different purposes, and minimum of $87 to $90. this thought a bit further. For ex different prices. Second. In the second place, this fig ample, is this belief of Mr. Antoville's These two commodities serve entirely ure is an average, as the gentleman his alone? Or, is it shared by others, different markets, except for an insig pointed out, of all types, both high grade at least in part? nificant proportion of softwood plywood and low grade, including the relatively Let me comment ·now about some production especially selected for a low priced %-inch plywood and the pertinent observations appearing in limited number of decorative uses. much higher priced %-inch and thicker Crow's Digest, a widely read lumber in First. Softwood plywood is used pri plywood. To compare the price of one dustry publication, for Friday, April 18, marily for cement forms and subsurface specification of plywood with this aver 1958. construction of houses and other build age would be like proving that Lincolns Crow's Digest quotes parts of a letter ings, furniture, and similar products. are cheaper than Cadillacs because the from George J. Lerner, of Detroit, a Second. Hardwood plywood, on the average price of Fords, Edsels, Mercurys, letter which points up the increases in other hand, imported or domestic, is in and Lincolns is below the cost of a plywood production, along with the in tended to be used primarily in its natural Cadillac. This is no basis for com parison. crease in sales. This sales increase is grain for decorative doors, panels, or most heartening for all of us who have furniture finishes. The irrefutable fact is that in com paring plywood of the same specifications been and are concerned with the de With very few insignificant exceptions, cline in the selling cost of softwood Douglas-fir plywood cannot be used as and similar quality the imported hard a sustitute for the hardwood plywood wood plywood from Japan is 40 to 60 plywood, and I believe Mr. Lerner cor panels. Moreover, because of its higher percent more expensive than Douglas-fir rectly assessed the problem when he ob price, hardwood plywood never is used plywood. It is obvious, Mr. Speaker, that served: as a substitute for Douglas-fir in its vari the price decline in the Douglas-fir ply The plywood industry is growing basi ous construction purposes: wood industry during the last year can cally strong, needing mostly price stab11ity. LET'S COMPLETE THE PICTURE not be blamed on imports that sell for Now let me place in the RECORD the , so much more. picture drawn by Mr. Lerner: on this question of relative prices, Nor can the price decline be blamed on Mr. Speaker, there has . been a great competition between softwood and hard Like yourselves, I have argued that over deal of heat, and not very much light. production is solely the underlying cause The facts are very simple. Imported wood plywood-although a few vocal of the weak price structure found in ply Japanese hardwood plywood cannot un critics of trade would have us believe this wood now, as well as being responsible for dersell Douglas-fir plywood, as charged is so. the erratic behavior of plywood prices . A LACK OF COMPETITION repeatedly by the gentleman fro~ Wash· since 1948 and especially since 1956. How ingtoii [Mr. MACK], because it is priced As I said on Aprill in this Chamber, ever, after further analysis of industry in the United States market 40 to 60 so I reiterate today, as I again call to the statistics, I am no longer so positive. Let's .7280 CONGRESSIONAL RECORD - ·HOUSE April 24 recap some of these weekly barometer sta· imports of hardwood plywood, although United States lumber industry, including tistics comparing 1958 with 1957: they had increased tremendously, were its plywood segments, than any possible TABLE A not causing any injury to the United import restrictions. States hardwood plywood industry or However, before discussing such a pro· Production totals 1st 4 1st 8 1st 12 even threatening any injury to that in gram, I want first to consider the Japa· weeks weeks weeks dustry. nese plywood export quota. There has ------1------WHY Dm THE MILLS CLOSEt been much discussion about this quota 1958 •• million square feet._ 4.61, 991 919, 014 1, 364, 968 and I think it is proper to provide the 1957 ------do____ 402, 860 811, 425 1, 196, 042 I do know, also, that last year, when Increase••••••••• percent.. 14. 7 13. 2 14. 1 the pending plywood import-quota bills reasons for its establishment and I think were introduced into the Congress, the it is only reasonable for us to note that Of course, this looks ridiculous. Why basic justification of those bills was a the Japanese have tightened their quota produce 14 percent more plywood than last list of 28 hardwood plywood plants that controls as it became necessary. year, when most industries would appreciate had allegedly been shut down since the AN UNUSUAL FACT not to show a shrinkage of business? This Tariff Commission report because of naturally creates a climate conducive to First, I believe it is most unusual for dumping, thereby depressing ·prices. hardwood plywood imports. An investi a sovereign nation voluntarily to impose But glance at this table: gation of these 28 mills revealed that 9 an export restriction on one of its im of them were still in operation and had portant industries after having received TABLE B not closed down at all, 3 of them never a complete vindication on the impact of existed, 2 were duplicates of other plants its exports. Despite the unanimous Total new orders . 1st 4 1st 8 1st 12 weeks weeks weeks contained on the list, 3 of them were de Tariff Commission finding that Japanese molished by fire, 1 of them closed before plywood imports were not injuring the ------1------there was any import competition, and 1958 .•million square feet.. 421, 209 865, 693 I, 369, 430 United States plywood industry, the 1957 ..------do ____ 335,639 654,530 . 1, 051,439 4 of them were consolidated with the Japanese chose to make doubly sure by Increase ______percent-- 25. 5 32. 2 30.2 parent company. Of the remaining six placing their own restrictions on these which actually closed their doors, re exports to the United States. Such ex This is startling and encouraging. It ports indicate that many reasons other port restrictions have been employed in proves that in the face of declinin·g house than import competition were responsi the past, but only in cases where actual construction substantially more plywood ble for their closing. This list of 28 injury was shown or threatened by the has been ordered and sold in 1958 than 1957. plants was exposed last year as the ply Granting that a certain amount of buying yolume of the imports. So far as I cari was done at the low of $64, notice that sales wood hoax. tell, this is the only instance where re were 25 percent higher during the first 4 I would be less willing to accept this strictions have been imposed after a weeks when the market was $72. And if information as a hoax had it not been ·finding of no injury. heavier buying was done at the $64 level, it followed by similar distorted and deceit Second, the Japanese plywood export follows that less than normal buying was ful claims which I am in· a better posi quota has been described as a voluntary done immediately_ before the level dropped tion to analyze and discuss. These are quota, like the voluntary oil-import to $64, since many waited for a price decline. the claims, that the Douglas-fir plywood quota now outstanding in this country. Let's go a step further with our analysis. industry is being faced with price de Compare this year's sales with production: This is a misconception of the Japanese clines and production cutbacks because restriction. There is nothing voluntary TABLE c.-Comparison of l958 production of Japanese plywood imports, and that about the plywood export controls. Jap- · with 1958 sales (million square feet) Japanese ha,rdwood plywood is made anese plywood exporters are forced by from Russian softwood. law, and by the threat of serious sanc 1st 4 'lst 8 1st 12 weeks • weeks weeks LI'ITLE TO GAIN tions, to comply with the quota require ------1 ------Ironically, it seems clear that United ments. This quota system is voluntary ·1958 production______461,991 9Hl, 014 1, 364,968 States hardwood plywood producers only in the sense that the Japanese 1958 new orders______421,209 865,693 1, 369,430 would gain little even if they were suc Government voluntarily chose to impose Overproduction (per- cessful in throttling the import competi it, without any urging by our Govern cent)------9. 7 6. 2· 10.3 tion. The Tariff Commission · pointed ment and despite the favorable Tariff 1 Excess of sales over production. out that the imports of hardwood ply Commission decision. So far as the wood were not displacing · sales of Japanese exporter is concerned, there Now, 1958 sales with 1957 production: domestic hardwood plywood, but were is nothing voluntary about it. It is · a TABLE D.-Comparison of1958 sales with 1957 supplementing those sales by creating quota with teeth, and it has be .~n. and production (million square feet) new markets within the United States. is being, obeyed. If the plywood quota bills now pending Third, you might well ask, Mr~ 1st 4 Ist 8 lst 12 had been in effect in 1957, imports from Speaker, if the export· quota is being weeks weeks weeks Japan would have been reduced by $36 obeyed, why have shipments of Japanese ------1------million. Mr. Jack Davidson, president plywood to the United States regularly 1958 new orders______421, 209 865,693 1, 36:', 430 1957 production______402,860 811, 425 1, 196,042 of the Imported Hardwood Plywood As exceeded the quota limits, as they obvi Increase (percent)______4. 5 6. 7 14.5 sociation and himself a producer of ous'ly have · in the past? It is because Douglas-fir, stated to the Ways and the export quota, until re~ently, did not Table D discloses .a fact most industries Means Committee last month that if the apply to all types of plywood exported. . would envy-that sales (or the first 1i weeks $36 million worth of plywood from Japan It covered the staple export items, of this year exceeded last year's overproduc were stopped the sales of domestic hard such as "doorskins" and standard 4-by-8 tion by 14.5 p_ercent. Few industries in wood plywood might increase by as·much foot panels; It did not apply to certain America can boast of a similar achievement. specialty items such as V...;grooved pan And table C interestingiy reveals that while as $1 million, but the result would be · at on~ time production exceeded ()ales by the destruction of the flush door manu els and 2-ply veneers, and it did not almost 10 percent, at the end of 12 '\Yeeks, facturing industry, including many door apply to plywood made of certain native in 1958 the gap had been closed. This proves plants in the Pacific Northwest, which Japanese woods such as sen and shina the plywood industry is growing, basically are dependent entirely upon impor-ted that. ·are naturally in short supply. On strong, needing mostly price stability. plywood for their very existence. the staple plywood items, shipments Mr. Speaker, so far as the effect of BROADEN THE MARKET have been well within the strict quota hardwood plyWood imports on the United Mr. Speaker, I venture to say that the limitations. The increase in recent States hardwood plyWood industry is answer to the problems of the American years has been in the specialty items concerned, I know very little. My dis plywood industry, both softwood and which were not subject to the quota. trict and my interests are concerned hardwood, lies in developments other This increase did bring the total ply primarily with the production of Doug than import restrictions. A realistic wood imports above the Japanese export las-fir plywood. With regard to the progr&m that would spur an increase in quota levels. effect on the United States hardwood housing starts, and thus increase the A QUOTA ON ALL PLYWOOD ,. plywood industry, I do know that only market for furniture, kitchen cabinets, But, last fall, to avoid criticism even a few years ago the United States Tariff and other end products using plywood, in this limited field, the Japanese Gov Commission unanimously found that would do much more for the entire ernment and the plywood exporters 1958 CONGRESSIONAL. RECORD- HOUSE .7281 tightened the quota system. Since Oc· others largely dependent on these im· imports. I insert both letters in the tober 1, 19-57, every foot of Japanese ported panels for their continued.opera· RECORD, at this point. plywood shipped to the United States tion. HEIDNER & Co., has been subject to strict quota con· THE CUTBACK HAS HURT Tacoma, Wash., April 8, 1958. trois. What's more, this has been The effect of the cutback' in Japanese Congressman CHARLES 0. PORTER, backed by strict production controls on imports is being felt. Door manufac· House Office Building, the plywood manufacturers, within the turers in the Pacific Northwest, in south· Washington, D. C. . DEAR CONGRESSMAN PORTER: It may interest export quota_limitations. ern California, in Michigan, in Ohio, and you to know that the Douglas-fir Plywood This control on all plywood exports elsewhere have been forced to cut back Association's Weekly Barometer shows pro to the United States is in effect now and their own production because of a scar duction for the first 12 weeks of 1958 on a will continue in effect indefinitely into city of the imported doorskins they must three-eighth-inch rough basis of 168,926,000 the future. This removes the - possi have to stay in business. Production square feet over the corresponding period of bility of unexpected increases such as schedules in these and other processing 1957-an increase of 14.1 percent over last occurred in certain specialty items dur· plants have had to be set back because of year (the entire 1957 production was an increase of 4.3 percent over the previous ing the past 2 years. an inability to place new orders and year). These figures show an ever increasing Fourth, what about the quota levels, sometimes even an inability to have old employment in the plywood industry-the the volume of Japanese plywood that can orders filled. largest in its history. be shipped to the United States? At one The Seattle Door Co., Inc., of Kirkland, It is interesting to note that the increase time, earlier this year, I reported that Wash., manufacturers of ft.ush doors, alone during these 12 weeks is 60 percent as the quota levels for 1957 appeared to inform me that it is impossible to pur much as the entire amount of Japanese ply be about 400 million square feet. chase domestic skins for door manufac wood shipped to the United States during the This figure, which could have been ture. On April 11, 1958, President C. V. entue year of 1957 converted to the same quoted more precisely as 435 million Mac Donald wrote to me. three-eighths-inch rough basis. We understand that there will be seven square feet, was based on the data sub· Mr. Mac Donald said, in part: new plywood plants in the Douglas-fir area mitted to the Boggs Subcommittee on Our own use of foreign . woods is oc going into production during 1958. , The in Foreign Trade Policy of the Committee casioned by two particular things: 1, public dustry and prices will undoubtedly suffer due on Ways and Means by Mr. Robert N. demand which, of course, is of first considera to this continuing overproduction, but im Hawes, counsel for the United States tion in selling a product, and 2, availability position of a quota on Japanese hardwood hardwood plywood industry. I had of material. plywood would be of no benefit to Douglas-fir every reason to believe this figure a true Everyone in the building trades is well plywood as they are used for different pur aware that the current housing trend is poses and there is a substantial price differ one. It is a total provided by the chief toward the use of panel for walls and doors ence in favor of Douglas-fir plywood as we lobbyist for the quota-backing segment which is both attractive and economical. have already written you. On the other of the hardwood plywood industry. Contractors want to build homes that will hand, if an import quota were to be imposed, This figure was also confirmed by the have appeal from the standpoint of appear it would close the fiush-door industry in the Library of Congress specialist who pre ance and ' salability and these imported Northwest and cause great hardship if not pared a study at my request on the im woods fill that need in a way that domestic actually closing the furniture factories in pact of plywood imports in the Pacific woods cannot. the West, both of which rely on the imported Northwest. And I can report some ac As to availability of domestic skins for plywood in very competitive markets. door manufacture, Mr. Ted Gregg, our pur We are attaching a copy of a letter from curate figures of greater interest to per chasing agent, contacted 32 fir-plywood Mr. H. W. McClary, manager, lumber and sons affected by this problem-and that mills 6 months ago requesting prices .and plywood products of Simpson Logging Co., in is the present and future level of im· delivery on fir doorskins. He has received regard to our letter of March 17 to the ports of Japanese plywood. answers from only two mills, both of whom Douglas-fir plywood industry of which we The Japanese quota system is based on stated they could supply certain sizes but sent you a copy which we believe you will that nation's fiscal year, which runs from neither one could, or would, furnish our find of interest. As you may know, Simpson April L The quota is applicable to the requirements. We still are searching for is one of the largest producers of Douglas-fir entire Western Hemisphere, with the a source of supply at a price that would plywood in the industry with plants at Shel great bulk of that quota--over 90 per enable us to be competitive with a fir door ton and McCleary, Wash., Portland, Albany, but still have no takers. and Lyons, Oreg., and Eureka, Calif. They cent-destined for the United States. In also manufacture lauan and birch-faced fiscal 1957, total Japanese plywood ex LABOR--THE GREATEST LOSER plywood and have fiush-door factories at ports to the Western Hemisphere were On April 4, 1958·, John H. Eyer, inter McCleary and Portland. approximately 720 million square feet. national representative of the Interna Cordially yours, During 1957, our own official statistics tional Brotherhood of Pulp Sulphite and w. G. HELLAR. show that our imports of Japanese ply Paper Mill Workers, wrote me as wood were about 686 million square feet, APRIL 7, 1958. follows: HEIDNER & Co., which corresponds roughly to the average I wish to take this opportunity to com Tacoma, Wash. of over 90 percent of quota shipments to mend you for your able and logical presen Attention: Mr. W. G. Hellar, vice presi- the United States. tation of the plywood problem in the Pacific dent. · This year, in fiscal 1958, the Japanese Northwest. - DEAR MR: HELLAR: I want to congratulate have reduced their quota to 660 million Labor could well be the greatest loser if you on the letter, directed to the members square feet for the entire Western Hemi the current hysteria concerning imports of the Douglas-fir Plywood Association, sphere. This means that United States were to be translated into action. As you properly setting forth the .facts pertaining to imports of Japanese plywood will be cut have stated, the effect of Japanese imports Japanese plywood imports. Your letter was by at least 10 percent· to the neighbor on consumption of softwood plywood has well conceived, and should clarify any mis hood of 600 million or 620 million square been negligible and probably few if any lay understanding, in an open mind, as a result offs can be attributed to it. On the other of the misleading statements thus far set feet for the year, or maybe even less. hand, the loss of export markets would be forth in an effort to promote legislation to This cutback may sound like good news disastrous to Northwest workers. limit imports. to the segment of the plywood industry Congratulations also on naming the real I regard your letter so well written and that has been leading the propaganda culprits-hard money and neglected housing. important that I would like to have several campaign against import competition, additional copies for distribution if they bu'; it is not good news for the Nation or IMPORT LIMITATION OPPOSED are available. for the Pacific Northwest. On April 8, 1958, W. G. Hellar, of Thank · you kindly for fulfilling this In the first place, it will provide little Heidner & Co., Tacoma, Wash., offered request. or no additional business to the United some interesting observations in his let Yours very truly, States hardwood plywood producers, who ter to me. Mr. Hellar is vice president SIMPSON LOGGING Co., of his company and he enclosed a copy H. w. McCLARY, cannot produce -for the markets ordi· Manager, Lumber and Plywood Products. narily -served by Japanese plywood. It of a letter he had received from the will provide no help for the Douglas-fir manager of lumber and plywood prod· Thus, ironically, this ·Japanese PlY· plywood industry, which does not com ucts of the Simpson Logging Co., · of wood export quota will not bolster em pete with this imported plywood. But it Shelton, Wash. Mr. Speaker, both of ployment in the United States plywood will provide fewer raw materials for the these gentlemen, experts in their field, industry, but will cause some serious ·un· United states door manufacturers and see no reason for legislation to limit employment in the United States door, .7282 CONGRESSIONAL RECORD-·HOUSE April 24- boat, trailer, and furniture industries of Japanese plywood into this .country. In United States exports of-agrlcultural com and possibly many others. It is going those statements .Mr. MAcK blamed the ills modities to Japan aYerag..ed about $400 mil to add to the cost of housing · construc or the Northwest plywood industry on these lion annually dur.ing the 5 years 1952-56. tion at a time when the welfare of the importations. We agree with you that there This was 12 percent of United States agri are many other factors involved of greater cultural exports to all countries and '57 per Oouglas-:fir industry and even of the importance than competition from these im cent of United States -exports of all com- hardwood-plywood industry depends in ports. modities to .Japan. · large part on keeping housing costs We, of course, have no direct interest In down and housing starts up. regard to plywood but are directly · inter Japan is also a major importer of It is conceivable that we may have to ested in the importation of raw frozen tuna American pulpwood, petroleum, coal, ask · the Japanese Government to in from Japan for manufacture in the Pacific iron and .steel, machinery, vehicles, elec Northwest. These importations form the trical equipment and chemicals., crease the quotas on plywood exports basis for substantial cannery payrolls in to the United States, or to remove them Northwest. Oregon and the State of Washing GROWTH OF TRADE 'EVIDEN'l' entirely, so that our construction work ton. They have enabled Oregon's fishing in The trend of growth also must be con ers, doormakers, boatbuilders, furniture dustry to maintain a high level of payroll sidered. _From 1955 to 1957 exports of makers and others can continue or even and employment .during the so-called de farm commodities increased 'by 17 per expand their job opportunities. This pression years. ,cent to $4:57 million; exports of indus plywood export quota that has been These imports, too, have aroused opposi trial raw materials, 422 percent to $376 forced on Japan may hurt us even worse tion. Most of it. is generated by a very few fishermen who claim to be directly affected. million; exports of coal and oil, 128 per than it is hurting them. And it may The strange thing is that most of these cent to $121 million; exports of machin hurt · particularly on the west coast, fishermen spend the greater part of their ery and vehicles, 128 percent to $162 where so much of the imported plywood fishing efforts off the 'COast of California and million.; -and exports of chemicals, '85 is processed or consumed by American deliver most of their production to Califor percent to ,$85 mil1ion. manufacturers. nia points creating payrolls there rather than It is clear that Japan is a major and A door manufacturer in Santa Rosa, in their home State. Japan, as you know, is a large buyer of Oregon's agricultural expanding market for United States Calif. ., with a payroll of over $200,000 products, their purchases being far, far products. and annual sales of over $1 million, great er than any imports into this area. The Northwest .shares in the export writes :flatly that if the Japanese plywood We are continually threatened w:ith quotas market to Japan. Japan is the most imports are stopped, "we are out ·of busi and .import duties on f.rpzen tuna and we important :export market, and the only ness." A furniture maker in Tacoma, urge your consideration of our position as dollar export market for white wheat Wash., writes that if he cannot use im these matters become current in the Con- gress. produced in Washington and Oregon. ported plywood, he cannot compete with Although in the past some white wheat the low wages paid in the Southeastern Yours very truly, JAMES H. CELLARS, w.as moved under Public Law 480, this States; without these imports, he says, Public Relati ons Officer. year all exports will be for do'llars. "the status of the furniture industry ISOLATION IS IMPOSSIBLE Figures from the Grain Market News, here in the Pacific Northwest .and all published by the Department of Agri along the coast is very questionable." Thus, Mr . .Speaker, the problem of ply wood cannot be isolated. It must be seen culture, Show that in the year July 1955 IMPORTS VITAL as part of the overall trade of the United to June 1956, Japan took 36,568,000 bush . Members of th~ Lumbe1· .and Sawmill States with the rest of the world. We els of white wheat from the Northwest Worlcers Union in the State of Wash must not only consider the effects of valued at about $80 million. During the ington h.ave written: imports on particular domestic indus y.ear July 1956 to June 1957, Japan took These imports are vital to the continued tries sach as plywood. We must look 36,974,000 bushels of white wheat from operation of (our plants) and of other flush at the benefits to our workers, indus the Northwest valued at about $89 mil door manufacturers in our country, all of tries, and farmers in an expanding world lion. These exports of white wheat to which use union la'bo-r in tb:eir plants. trade and protect their share in the Japan constitute a large percentage of We feel very emphatically that any further the total mark·et, both foreign and do cutback in these imports would have a dis world market for United States goods and · astrous effect on production of flush doors products. . as well as-considering the effect mestic. For the country as a whole in and would, of course, mean layoffs for mem of imports on domestic production. the year July 1956-July 1957, the begin bers of our lo.cal and many others employed Last year the United States exported ning stocks of white wheat were 133 mil in similar plants. In fact, we have been told over nineteen billion dollars worth of lion bushels. ·Production was 154 million, • • • that because of this imp:ending goods compared with imports of about making .a total supply <>f 267 million. (quota) legislation, shipments from Japan thirteen biliion, providing jobs for Amer Domestic utilizati-on was 52 million, have practically ceased and about the middle whereas exports were 193 million. of May we will be faced with layoffs because ican workers and farmers, profits for our of material shortage. industries, and dividends for the millions Japan is also an important export of shareholders in American business. market for Oregon for all grains and Mr. Speaker, all of the letters I have Japan took a major share of our ex grain preparations, inedible animal prod referred to are available in my office for ports. A recent study by the United ucts, wood -and paper

alL Let us keep it this way~ Recently Mr. LAIRD. I sh-ould like to rea·d into The BLS Wholesale Price .Index (194:7-49= Congress enacted emergency-housing the RECORD at this point a. ·statement 100) for hardwood. plywood has dropped legislation which will perk· up plywood made by the hardwood plyWood people from 110:8 in 1'951 to 103.'7 in 1957. This / is furtper· evidence that low"'prlced imports markets, but 'I believe we must continue in testifying before the Committee on ·have forced the price of the domestically to urge the Administration to release Ways and Means. .It reads as follows~ produced hardwood plywood downward. In. more money for the mo.rtgage market. JOlNT STATEMENTS OF M. C. MciVER, PRESI- .contrast during this period the price index And while we're at it, let's consider, DENT, SPLICEDWOOD CORP., MELLEN, WIS., AND on -all commodities other tpan food and ag actively, the use of lumber (and ply C. D. WHEELER, MANAGER, HARDWOOD PLY• ricultural has risen from 115.9 in 1951 to .wood) in school construction. I sincerely WOOD DIVISION, GEORGIA-PACIFIC CORP .• SA• 125.6 in 1957. urge my colleagues to examine an in VANNAH, GA., ON BEHALF OF THE HARDWOOD A survey coverlng 48 plants on man-hours formation kit prepared by the National PLYWOOD MANUFACTURERS COMMITTEE, BE worked and number of employe.es in 1955 FORE THE HoUSE COMMITTEE ON WAYS AND and 1957, shows that in 1'957 the number ·Lumber Manufacturer's Association, de MZANS, MARCH 14, 1958 of -employees was down 13 per-cent ·and the tailing wood ·use in schools. . Mr. Chalrman, members of the committee, :hours worked down 18 percent. Tile fQUrth And let us encourage self-help in the my name is Madon C~ Mciver.. I am the -quarter of 1957 showed a substantial decline industry. By means of advertising and chairman of the Hardwood Plywood Manu ..from the preceding quarters, and the decline information programs such as are now facturers Committee, a group of domestic has continued in the lst quarter of 1958. conducted by some firms, the consumer hardwood plywood a-nd veneer manufacturers The domestic market hardwood plywood in Illinois, India or Iran will discover and their supplying industries, whose objec industry is comprised of 151 plants located more easily and m-ore quickly the value tive .it is to obtain relief from the serious in 22 States. In 1957, tb.e industry ship damage incurred by the ever increasing im ments amounted ·to less than 780 million of this international product. ports of hardwood plywood. I am also presi ·square feet, surface measure, a decline of As long ·as I have the honor to repre dent of the Splicedwooel Corporation of Mel 12 percent from 1956 (886 million square sent the Fourth District I shall continue len, Wis. We manufacture hardwood ply feet) and 16.5 percent from 1955 (934 mil to be deeply concerned about the welfare . wood. Seated with me is Mr. Carl D .. Wheeler, lion square feet). In fact, .Shipments in of the plywood industry in the Pacific manager of the Hardwood Plywood Division 1957 were oil' 3 percent :from 1951 (:80-5 mil -Northwest. But such concern, if it is to of the Georgia-Pacific Corporation .at Savan lion square feet). However, domestic con have useful results, must be based on nah, Ga. My testimony is coordinated with sumption has climbed .steadily from '869 that of Mr. Wheeler, who will immediately million square feet in 1951 to 1,630 million hard fads, facts such as those I have follow me. His comments are incorporated square feet in 1957. During this period set forth here today. in this statement. hardwood plywood imports have sp.iraled Mr. LAIRD. Mr. Speaker, will the As spokesman for the domestic hardwood ·from 64 million square feet in 1951 to '850 gentleman yield? plywood industry, we \~Dice the industry's million square feet in :1.957, ·an increase of Mr~ PORTER. I yield to the gentle opposition to H. :R. 103£8, as presented by 1,200 percent. man from Wisconsin. the executive branch. Later we will present Domestic consumption of hardwood ply Mr. LAIRD. It seems to me that the to you several specific recommendations on wood in 1957 was 89 ,percent higher than gentleman has made a case here this behalf of the domestic hardwood plywood 1951. Yet in 1957 the n made the plywood and veneer industry for their near future so that all parties· concerned can , 10,000,300 fir doors; in 1956 these States economic life and well-being. present their case and the facts necessitat made 2 million fir doors. This is 8 million Many other related industries such as ing such legislation brought out thoroughly. fewer doors, the making of which would logging, hardboard, lumber, and so forth, also Any further information you might need have required the labor of 2,500 people. are affected indirectly by this cheap imported or desire can be had from the following hardwood plywood problem. sources: Possibly these manufacturers have gone When you consider that.the American ply Hardwood Plywood Manufacturing Com where they could procure Japanese ply-· wood and veneer worker competes each hour mittee, Suite 601, 1145 19th Street NW., wood, but we have lost that employment with a Japanese worker being paid only 11V2 Washington, D. C.; phone National 8-4905. in the States of Oregon and Washing cents per hour, it is reasonable to say that Trade Information Committee of the ton. Would- the gentleman care to ex the workers in both countries suffer hardship. American Taritr League, Inc., 19 West 44th plain that to the many signers of these When you consider the American plywood Street, New York, N. Y. protests? · · and veneer industry competes with imported We will appreciate anything you can do Mr. PORTER. Despite the. protests I plywood from Japan that is-sold duty free to promote legislation· in this session of know the gentleman would not wish me for less than the cost of production in the Congress that will solve this problem which United States, is it any wonder that plant is strangling the plywopd and veneer indus to ignore the facts. after plant in this area is being shut down try and causing hardship to thousands of · I now yield to the gentleman from with thousands of skilled workers being American workers and communities. West Virginia. thrown on the scrap heap, and numerous Hoping to hear from you in the near Mr. BAILEY. It is safe to assume that communities becoming ghost towns. future, we are, the problem of Japanese imports has be Examples: Japan's exports to the United · Truly and sincerely yours, come a problem since the adoption of the States in the January-June 1957 period OLIVER J. RASMUSSEN, Japanese treaty in 1955. It is safe to totaled a 57-percent increase over the same President, Argonne, Wis. assume that it was an issue in the 1956 period in 1956. Imports from Japan of hard REYNOLD LAFOND, elections. I would like to ask the gentle wood plywood has increased 4120 percent Vice President, Newberry, Mich. if since 1951. These imports ate up 46.6 per CHARLES FISHER, man from Oregon he talked the same cent o! the total American market in 1956 Duluth, Mtnn. kind of language to the voters of his Dis alone. trict as he is talking now. or that he Consumption of hardwood plywood in the Mr. PORTER. I do not say that the has decided to go along with the inter United States is up 74 percent since 1951. plywood industry is not in bad condition. nationalists. Low priced imports captured 99.4 percent of It is in bad condition in terms of em Mr. PORTER. I am not sure I under this 74-percent increase in consumption. ployment of many people; but it ·is not stand the gentleman's question. I try to 1958 CONGRESSIONAL RECORD- HOUSE ,7289 talk straight to my constituents on all House, the gentleman from Oregon [Mr. Soviet· magazine Radio spoke of the sat issues. ULLMAN] is recognized for 60 minutes. ellite radio frequencies 5 months before Mr. BAILEY. I am sure the gentle Mr. ALBERT. Mr. Speaker, I ask it was launched and weeks before it was man received the labor vote in the State unanimous consent that the special or fired into orbit they spoke freely of what of Oregon in his District, and I am ask der granted to the gentleman from Ore they were going to do at an IGY meeting ing if he explained his position on the gon [Mr. ULLMAN] for today be transfer here in Washington. Secretary of State trade program to the people. red to Monday next. Dulles has told us that we knew in ad Mr. PORTER. So far as it came up I The SPEAKER pro tempore. Is there vance of their decision to ban weapons have always been for free trade; I have objection to the request of the gentle tests. always been for the renewal of the Re man from Oklahoma? We can well afford to ask if the ciprocal Trade Agreements Act. I have There was no objection. Soviets are not this self-confident be always felt that they are extremely im cause they have analyzed our approach portant in the world today and I hope to science policy and see that we are so this House will renew the reciprocal SCIENCE, FOREIGN POLICY, AND hidebound and doctrinaire that they trade agreements program. McKINLEYISM need not worry about any swift change Mr. BAILEY. Does he think he can The SPEAKER pro tempore. Under of approach which could upset their get the labor vote by maintaining a posi previous order of the House, the gentle plans. tion of that kind? man from California [Mr. HOLIFIELD] is In the yesteryear, our scientific work Mr. PORTER. I will take my chances. recognized for 45 minutes. was devoted primarily to gathering Mr. NICHOLSON. Mr. Speaker, will Mr. HOLIFIELD. Mr. Speaker, the knowledge and sometimes notable the gentleman yield? tide of world opinion is turning against achievement had only academic interest. Mr. PORTER. I yield to the gentle the United States. Our world status has Science then was secondary in woi'ld af man from Massachusetts. been eroding for several years but there fairs. If there was a useful application Mr. NICHOLSON. We make wooden was a new low when the Soviet Union of a new scientific principle-the appli screws in this country and send them to announced its atom and hydrogen test cation was in the province of private Canada and Mexico. Our duty rate ban. The test ban, conditional as it was, industry. And this was sacrosanct--it against similar products from those seemed to come too soon after sputnik was no business of the Government to be countries is 12 percent, yet when we send and most Americans are asking, What is involved in the application of scientific our wooden screws to Canada and Mexi wrong? Why 'is world opinion turning principles. co, the rate against us is 30 percent; against us? Why is our prestige on the In today's world, science has potential Can the gentleman tell me where the decline? for great good and for great destruction reciprocity is in a situation of that kind? In reply to these questions we often and single accomplishments can tip the What is fair about a reciprocal trade hear that our worldwide propaganda balance of world power. Some applica treaty in that particular line? services are lacking and that the Soviets tions are of earth shaking significance. Mr. PORTER. I can only tell the are better at propaganda; that the The . intercontinental ballistic missile gentleman that I have had a good deal Goebbels' approach to foreign affairs armed with the hydrogen warhead of difficulty informing myself on ply would restore our world prestige. could, if possessed by only one nation of wood. I will take up wooden screws Or that we need a new and magic for the world change every concept of mili.. when they affect the interests of my Dis eign policy which would fix everything~ tary power, or the development of cen trict as much as plywood affects them. That we must only find the bright idea tral power stations utilizing controlled I do not know the answer to the gentle and we would be relieved from the ex.; thermonuclear energy could so greatly man's question. pense and worry of doing all the things change the power distribution systems Mr. NICHOLSON. This industry is a great world power must do. of the world that there would be a new hit just the same as plywood. I say that For one, I think the answer to these industrial revolution. The economic when we have reciprocity it should be questions is vastly more complex than balance of power would be changed and l'eciprocity and not twice as much to these panacea suggest. But if there is the industrial potential of the nations of one as one charges the other. · any one place for remedy, it could well the world altered. This scientific prin.. Mr. PORTER. I would agree with the be in the place of our major failure ciple-fusion of light elements-for hy~ gentleman. the lack of harmony between our sci drogen bombs or electricity can be de.. Mr. NICHOLSON. The bill the gentle_. entific and foreign policies. veloped and exploited as a great force man has been talking about would take Mr. Speaker, today, I would like to for good or for evil. The United States 5 percent off of textiles in 5 years, yet speak about the need for enlightened Government cannot stand far back from the textile industry in New England is policies in science and technology and matters such as these. We are faced sick. What does the gentleman think the interrelationship of this and our for with the declared intent of the Soviet the industry should do? Close up en eign policies. Union to outpace us in the scientific tirely and allow Japan to supply the I would like to show you how our field as well as the competitive field of market with all the textiles especially present and outmoded technical policies international trade. when these 3 or 4 billions we give to work against us .and how we allow do But yet there are still those who op..: foreign countries is used to buy the most mestic considerations of the McKinley pose Government participation in scien modern machinery and to train their era to stand in the way of vital techni tific work other than for military pur.. people how to operate it, buy modern cal programs. poses. This was why our satellite pro looms and send our weavers over there I would like to show how great con gram had a· low priority. This is why to teach them how to operate them? Is cepts such as atoms for peace have our atomic electric power program lags. that reciprocity? failed and how we have been made to Industrial studies have shown us that Mr. PORTER. Let me say to the appear, in the eyes of the world, as war American industry, with but few excep .. gentleman that · the President of the mongers with only bomb tests in our dis tions, will appropriate but little money United States has pointed out that 14 play of scientific work. While we bear for work in its own laboratories for jobs are dependent upon industries this stigma, we are still not prepared things which are not directed toward which ship abroad to every one job for war, and lag behind the Soviets in foreseeable profit. How then is such which is affected by imports from abroad. modern intercontinental missiles. work to be done in the United States? It is, of course, important to American I will also look at the future-to pro There is no policy which answers this workers that we do everything practi grams such as the exploration and con question-there is only a patchwork of cable to maintain employment. · trol of outer space and ask if McKinley compromise. I believe it is the absence The SPEAKER pro tempore. The time ism will still prevail. · of such a policy which is at the root of of the gentleman from Oregon has As we discuss these things, please many of our problems. expired. bear in mind a significant point. The But evert in our scientific work on Soviet Union no longer seems to rely military projects, while there is not the upon the element of surprise to get dra same public versus private participation SPECIAL ORDER GRANTED matic effect from their scientific deci.. controversy, there is still an absence of The SPEAJ{ER Pro tempore (Mr. sions. They now tip their hand well in policy. There seems to be no clear-cut WRIGHT). Under previous order of the advance. In the case of sputnik the method for new and exciting projects to 7290 CONGRESSIONAL RECORD-- HOUSE April 2.4· get under way and to be :financed even this message. Here precious little more branded as a warmonger on the bill though the end usage is IJ.Ot clearly th~n lip service has been given the tech boards of the world; and what can we apparent. · nical programs necessary to make atoms show in the peaceful uses of the atom, The policy of applying advanced nu for peace a reality. despite the President's words of Decem clear science to destruction was born in . Of course, the President again spoke ber 1953? the United States of wartime necessity. of. atoms for peace in his recent letter In fact, this year the United States Our efforts after World War II to find to Khrushchev. with Government funds-the Gore-Holi some international basis for a peaceful But what has happened to atoms for field formula which the administration alternative culminated with the Baruch peace? President Eisenhower's proposal refuses to accept-finished building our plan and our work in the United Nations. for the transfer of nuclear materials to first large atomic reactor, which now Because of the attitudes of the Soviets. peaceful purposes is a nullity without supplies electricity to the city of Pitts no control measures were possible and advanced atomic power reactor tech burgh. This plant at Shippingport, Pa., the atom bomb was needed as a deter nology. While the administration held built by Admiral Rickover, came into rent to war because of the preponderance out hope to the world, tJ:iey permitted operation last December, and much of of Soviet military manpower and con the selfish private utility lobby to sabo the news propaganda value of the event ventional arms. tage every proposal for the acceleration was deliberately suppressed in the inter The policy encompassing this was later and expansion of reactor work. As a est of the large utilities who want sub called massive retaliation and the hydro result, even the private atomic industry sidies but no Government direction. gen weapon became our real or psycho in the United States admits there is no Even today the Shippingport plant has logical shield from the Soviet military program. They have called upon the not been officially dedicated, an event capacity. Government to outline its objectives. In which undoubtedly would offer the Presi As the years passed, the executive this past year they have pleaded for a d.ent a forum for discussing the atom in branch of Government failed to recog statement of policy. There has been its peaceful use. nize that the policy would be less than none. Can anyone in this House tell me why, effective if the United States did not also Each of you recalls the 1956 debate and in those trying days before the Soviet have the scientific policies for ·develop defeat of the Gore-Holifield bill which test ban announcement, when we knew ing advanced delivering systems--beyond would have significantly expanded our what they were going to do, the Presi SAC bombers. I refer to the various peacetime atomic efforts. Last year a dent didn't go to Shippingport to declare types of missiles which are now belatedly similar bill, the Anderson-Durham bill, open the United States first full scale being developed. For a policy such as was sabotaged in a more subtle manner. peacetime atomic reactor? He might massive retaliation is sterile without A watered down version of the bill nar have been able to say again that he rowly passed both Houses and was en was interested in atoms for peace. He broad scientific development. acted into law, but the Atomic Energy During this same period of time, the Commission proceeded along lines diver could have offered to an the world the Soviet Union nourished its science and gent to the intent of Congress. For ex atomic reactor techniques of Shipping brought forth a bumper crop of physi ample, the report to the bill suggested port. He could have, but he did not. cists, mathematicians, metallurgists, en that Adm. Hyman G. Rickover, one of The Queen of England also has press gineers, and a host of other specialists. the world's leading experts on atomic ing social and recreational engagements This effort carried them to a dominant reactors-the man who built the Nauti but she found time, in October 1956, to lead over the United States in the ability lus-be allowed to build a natural ura dedicate Britain's atomic reactor at to deliver weapons by intercontinental nium, gas cooled reactor, a type most Calder Hall. There was great world ballistic missiles with hydrogen war foreign countries prefer. This was not wide publicity attendant to this event. heads as good as ours. done. The Atomic Energy Commission In his letter to Premier Bulganin of Fortunately, today, all of this has pro said the reactor was not feasible and last January, President Eisenhower tried duced only a stalemate-a balance of they wanted to study it for a year. a new tack. He called for science for terror-but before many years pass, the Over the Commission's objection the peace and spoke about devoting our sci whole concept of massive retaliation may Congress authorized a study. We now ence to great medical purposes-con no longer be responsive to the Soviet learn that the Commission's reactor ex quering heart disease and malaria. But challenge of world domination. pert, Dr. Kenneth Davis, has also rec in a showdown, if such were to be a real If before long we do not have en ommended to them that it be built be policy, would not the voices of McKin lightened science policies, we will be un cause of its merit. Another precious leyism in the administration sound the able to meet the challenge. In the Soviet yea.r has been lost on a reactor type of call for socialized medicine and get Union science is flexible and they can great international and foreign assist the Government out of medicine? readily switch over for peaceful as well ance interest. What program to accelerate scientific as warlike conquest. They have demon Congress could well afford to examine exploration of heart disease and cancer strated an awareness of the foreign whether or not atoms for peace, as a has been advocated by the President? policy and political consequences of concept, has not missed its opportunity The science policy of this administra scientific events. With them science and as a world force. In his present hour of tion is easy to describe. It is this. Keep foreign policies seem to be in harmony trial, the President seemed reluctant to the Government out of science and tech and they have started broad technical mention it, despite the Soviet success in nology unless there is an overriding mili and · scientific assistance programs all showing themselves as the sole propo tary need. Anything else should be over the world. But they have only nents of atomic peace. done by private industry along the most started. The big technological economic I seriously question that you can prom profitable and selfish lines. Private in offensive may be yet to come. ise the world the bounties of the atom dustry, of course, cannot furnish ade Even in their domestic affairs they are in 1953, provide nothing of significance quate funds for basic research because science oriented, for Zhukov was not by 1958, and still hold out the policy as of the expense involved. demoted until sputnik could crowd the being truthful, honest, and in the service But the continuance of hydrogen event out of the headlines and Bulganian of peace. I must think that in some bomb tests is not the only thing which went back to his bank after the headlines places of the world atoms for peace is makes us appear as only warmongers in of the test ban. looked upon as the big lie. the world. The President has proposed Will the United States develop new and It is for reasons such as this that we the sharing of atomic and hydrogen imaginative scientific policies? Will we have no metho(;l for countering the Soviet bomb data and components with foreign harmonize them with our world needs? propaganda barrage which accompanied countries. His legislative proposal. I doubt that we will. We have tried to do. the banning of hydrogen- and atomic which is now before the Joint Commit this several times and failed because of bomb tests. We have no alternatives. tee on Atomic Energy, would make it McKinleyism. Notable was President Without the technical effort, there is no possible for us to make other nations Eisenhower's atoms for peace program alternative. When we knew in advance atomic hydrogen bomb powers. This and his message to the United Nations in that the Soviets would announce their possibility was admitted last December December of 1953. Most experts on test ban, we were in no position to put by the Chairman of the Atomic Energy world opinion say that few things have out counterpropaganda on our contribu Commission in a letter to the Depart excited the peoples of the world as did tions to atoms for peace. We have been ment of Defense. 1958 CONGRESSIONAL RECORD- HOUSE .7291

- I am sure all of you have noted the The problem of outer space develop~ We must develop a dynamic national political reactions in Great Britain, ment was referred to Dr. Killian and program which will impress the free and Italy, Germany, and elsewhere to having now we have the work of many months, uncommitted world that a modern de these countries embark on a program of the report of Dr. Killian's committee. It mocracy has more to offer than mod arming with nuclear weapons. is an interesting primer. On the science ern communism. I have opposed this legislation and in of outer space, the report makes fasci Let us be honest and admit that a the days to come will have more to say nating reading as the President pointed monolithic society such as the U. S. S. R. on the dangers inherent in the Presi~ out. In addition, after study by his ad has certain tactical advantages of dent's proposal. The atoms-for-peace visers, the President forwarded legis~ maneuverability and unified direction. program was announced in 1953, but it .lation to the Congress 1·ecommending a But a modern democracy such as ours seems that in 1958 the President would civilian agency to direct governmental also has advantages which can be mo send atom and hydrogen bombs to Eu activities for outer space exploration. bilized under proper leadership. We rope long before we have developed the On all of this, I can only say that "the have exclusive assets which the technology for assisting them to convert mountain labored and produced a U. S. S. R. does not have. the atom for peacetime uses. Let us ex mouse." It is now almost 7 months after Our first great asset is the bread base port peacetime atomic equipment and sputnik and, from what I can see, little of experience in selfgovernment. This at the same time have a technical pro else of consequence has been done other asset has produced capacities of indi gram at home which not only supports than the publication of the Killian vidual initiative and ingenuity which we atoms for peace, but also would arm us primer and the preparation of some believe to be the foundation upon which with advanced delivery systems. If our legislation. True, the Advanced Re our great industrial productivity is preparedness was adequate, Europe search Projects Agency of the Depart based. Many facets of our free society would not need to worry over its lack of ment of Defense was started, but I am contribute to the development of the in hydrogen bombs. not aware that they foresee any pro dividual. Among those fa.ctors are edu The community of European nations gramatic goals. cation, free choice of a vocation, and the in the Free World have a need for addi~ During this 7 -month period, the dynamics of competition to originate and tiona! power sources and are anxious to President has had at his disposal ample develop new ideas in the market place. develop atomic power stations. If atoms powers under existing laws to inaugurate Our second great asset is the mighty for peace were a reality, power reactors much more outer space scientific and industrial complex which has been de would be going to Europe now. The technical work. veloped on the foundation of the first mere doing of this could well soften One phase of the scientific work which asset. Our industrial production capac~ world tensions to the point where it could have been expanded was in the ity is paramount to any other nation in would. not be considered necessary to field of atomic propulsion for space ve the free or slave world. The present create new hydrogen bomb nations. hicles. As you recall, I addressed the capacity can be doubled or trebled in a The most exciting challenge of this House on January 16, 1958, and called very few years, providing we have just century is in the prospect of developing for the inauguration of a major project one vital factor. outer-space vehicles and the exploration to apply nuclear propulsion to outer~ That factor is leadership at the top of outer space. Like atomic energy, this space vehicles. Since then, I know of no government level. This leadership must field can be devoted either to war or to decision to accelerate the modest efforts focus in the President. In a democratic peace and, if developed, can be a potent of the Atomic Energy Commission. For free society the temptation to drift and factor for peace. As many renowned a few years, there has been an effort for delay is prpbably our greatest weakness scientists have pointed out, the peace the application of nuclear power to mis from the standpoint of national action. time benefits do not lend themselves to siles, but this was so badly mauled by The President, acting, of course, with the precise definition at the moment, but budget limitations that little of conse great powers of consultation and advice unquestionably are of values many quence was done. 'This same inadequate from his own Cabinet and the complete times more than the needed investment. program crawled while Dr. Killian stud~ resources of national brainpower and From scientific advancements in the ied arid the primer was prepared. If ability, can provide the national program field, new military policies will unques- only they gave Walt Disney the job of needed to meet any challenge from any tionably evolve. · preparing the primer, perhaps the Pres~ other nation or group of nations. I fear that the fine proposals of today ident's scientific advisory committee President Eisenhower is not providing for outer-space development will be like could have prompted the acceleration of work on nuclear power for space travel. the type of leadership which is sorely atoms for peace-all talk and no pro~ needed at this tiine. I make this state gram. While the President's advisers studied, the Joint Committee on Atomic Energy ment in sorrow and not in anger. He has · The record to date on outer space de not risen to the challenge which is being cisions in the administration gives rise held hearings on nuclear applications for outer space. We learned from the posed by the U.S. SR.. He has not gal to this suspicion. It is ·now 7 months vanized the resources of our Nation to since sputnik and the administration experts that there is overwhelming evi dence that nuclear power will be nec the task ahead. He has hot given to us has done little good tangible work. essary to propel large size space vehi the inspiration of leadership which is the On the surface, it would appear that cles. It offers the· only continuing source missing factor in making effective the they have started a program of outer of propulsive power for the purpose, .assets of our free society in the contest space development. But when we look which we can now foresee. with communism on the international behind the press releases, we see little. Within the atomic energy program, field. On this, like past occasions, matters of there are excellent Government labora I do not speak of military contest at major moment have been referred to tories. They range in size from the large this time. I speak of the contest of Presidential study teams· who, in turn, Los Alamos, Livermore, Bettis, and production of goods for Free World de produce interesting reports. Matters Brookhaven installations to smaller or~ velopment. I speak of the acceleration have a way of stopping there. Take the ganizations. This complex of labora of scientific research and development example of civilian defense. tories is, · in my opinion, the greatest and I speak of the acceleration of in Following hearings in the Government scientific and technical asset the United dividual development of capability. Operations Subcommittee on Civil De States possesses. These laboratories If the President will set the goals of fense, of which I was chairman, a Presi and installations could make major con dential Advisory Committee studied the endeavor first for our own people, and tributions to the problem of nuclear pro implement specific programs for the ac matter and produced the Gaither report. pulsion for outer space vehicles. Only What has resulted from the study effort? the Los Alamos and Livermore labora celeration of our own (a) scientific re Although some of us know that a na~ tories are being utilized. The Chair search and development, (b) educa tional shelter building program was man of the Atomic Energy Commission, tional advancement, and (c) increased recommended in the report, as well as in Lewis Strauss, recently testified that production of needed goods for our peo the Rockefeller and Johns Hopkins re~ these laboratories are too busy on atom ple and for the development of other ports, the administration does not act. ic weapons work to do much more, but free and uncommitted nations. It continues to stall in the face of poten· he added that he did have other avail· I assure you that our people will rise tial destruction. able laboratory potential. to ·meet the challenge of communism. 1292 CONGRESSIONAL RECORD--HOUSE April 24. whether- it be in the field ·of .. war or The SPEAKER. Is there objection to found it stimulating_ami heartening to be peace. the request of the gentleman from Mich• on hand at a time when a new nation be• We can meet the propaganda and igan? gan its entrance into the world commu~ boasts of dictators. We can meet and There was no objection. nity. - surpass the deeds of dictators. Mr. DIGGS. Mr. Speaker, I have just While attending the ceremonies inau But dictators' words and deeds can not had the honor and pleasure to have been gUrating the West Indies Legislature, my be met by drift and delay. They can a member of the Congressional delega colleagues and I had the pleasure to only be met by the dyna~ic mobilization tion which attended the inauguration of meet with the Prime Minister, the Hon of free m.en and Free World resources for the Federal Legislature of the West In orable Sir Grailtley Adams, and his Cab the inevitable contest in which we are dies on April 22 in Port of Spain, Trini inet. In fact, it was our good fortune involved. dad. In company with Congressmen to be present on the historic occasion of We must move rapidly into the field POWELL, ROBSION, and HOSMER, I was the first meeting of ·the Cabinet. We of world trade. We must take the place present at a ceremony which marked the were· greeted by Sir Grantley Adams, K. in international finance and develop beginning of representative democratic T., C. M. G., Q . C., who has not only ment which England has occupied and government in a new Federation which been prominent in the affairs of Barba from which she has now been forced to encompasses 10 unit territories stretch dos, but also in the West Indies gener withdraw. ing from Jamaica, through the Leeward ally and who has the honor of being the· It is our responsibility and our oppor and Windward Islands, Barbados, and first Prime Minister of the new Federa tunity to develop the capital investment down to Trinidad and Tobago. tion of the West Indies. On receiving us of basic industries in the underde~ The people of the West Indies are no he referred to our great heritage and to veloped nations. To do this we must strangers to us. Not only do many the great influence upon the West Indies export capital goods and this means Americans visit the area every year, but of such a great statesman as Alexander longtime capital investment abroad. an even closer tie emerges from the fact Hamilton who himself came from the Concurrent with such a program, we de that we have living throughout the island of Nevis which is now a member velop consumer demand for all types of United States thousands of outstanding of the Federation of the West Indies. goods made by American workmen. citizens who came from these friendly, Sir Grantley Adams escorted us into Our factories must operate at ca neighboring islands. the council chambers where we were in pacity. Our people must work at ca On the occasion of the Federation com troduced to the distinguished statesmen pacity. Our society must expand each ing into being, Lord Hailes, the Governor who will comprise the first Cabinet of year. All of these things can be done General of the West Indies, stated: the West Indies. We had the honor to through leadership at the top galvaniz The inauguration of the Federal Parlia meet Robert Llewellyn Bradshaw, St. ing and mobilizing existing resources ment of the West Indies by Her Royal High Kitts, Minister of Finance; Dr. Carl within our Nation. · ness Princess ·Margaret represents the Donald George La Corbiniere, St. Lucia, We need not fear the Soviet propa crowning achievement of all those who Minister of Trade and Industries; Wil ganda coups. have worked patiently for the federation fred Andrew Rose, Trinidad, Minister of We can challenge the Soviets to match of the territories of the West Indies. Communications . and Works; Frank our efforts and deeds. This would be - This is a turning point in the history of Barrington Rickets, Jamaica, Minister the West Indies. All West Indians will now the most effective form of res~tance to of Natural Resources and AgricuJture; their ideological or economic penetra share the responsibility for the evolution of Phyllis Byam Shand Allfrey, Dominica, a West Indian Nation within the Common Minister of Social Affairs; Victor Boven tions. I fear there is no other effective wealth; and it should be an inspiring mo type of opposition. ment for the citizens of the Federation to Vaughn, Barbados, minister without Let us initiate proposals and challenges see their representatives take their place in portfolio; Novelle Hamilton Ric}lards, to the Soviets in the fields of peacetime a Federal Parliament. Antigua, minister without portfolio; Al application of our science and industrial I am confident that by the wholehearted lan George Richard Byfield, Jamaica. technologies in specific fields of space (letermination, not only on the part of those minister without portfolio; James Win exploration and peacetime application of who have been appointed to direct the affairs ford Liburd, Nevis, minister without atomic energy. of state, but also of the whole West Indian portfolio; James Luc Charles, St. Lucia, people, the Federation of the West Indies minister without portfolio. But let us follow those challenges with will endure and prove worthy of its new programs of action. If the Soviets co place in the world. Sir Grantley Adams expressed the ap .. operate, the tension will be lessened. If preciation of the West Indies to the they fail to cooperate, they will stand Anyone who was present in the West United States for its leadership and convicted before the world of the inade Indies during *he historic occasion when friendship and stated that -they would quacies of their own totalitatian system a constitutional government began its look-forward to the close and harmoni or their unwillingness to cooperate for deliberations could only be tremendously ous relations with our country, so im world betterment. impressed with aspirations, the spirit, portant to the future of both the United In the field of developing backward and the recognition of responsibility that States and the West Indies. nations, let us move forward with specific were evident. I believe, and our delega We took the opportunity of extending programs of development in selected un tion so stated when we were in the West to the West Indian Government the committed nations. Let us help them Indies, that the United States should do good wishes of this Congress and of the build their dams for hydroelectric power everything appropriate to assist and sup people of the United States. and irrigation. Let us help them build port the progress and political stability We also paid a visit to the Honorable their factories, utilities, and transporta of this new nation. Ashford Sinanan, leader of the opposi tion systems. Let us help them in their It is generally believed that over the tion in the West Indies House of Repre agricultural and industrial ar.d health next few years the Federation will take sentatives. We extended our felicita development. the final steps toward achieving full tions which he reciprocated on behalf These are the types of dynamic pro autonomy and independent nationhood of his parliamentary group. grams we need to show to a waiting within the British Commonwealth. Po In both the leaders of government and world the dynamics of a free society. litical evolution is working in democratic the opposition, we saw evident the spirit Only by great vision and great deeds fashion in the West Indies. A new na of nationhood and the desire for success can we win the admiration and coopera tion is being born in the Western Hemi ful and fruitful government. We had tion of the free and uncommitt~d nations sphere, with responsible leadership, and the chance to meet many other West to the democratic way of life. with high hopes. Indian people who exhibited the same Mr. ROBSION of Kentucky. Will the pride of achievement and dedicated THE INAUGURATION OF THE FED distinguished gentleman from Michigan sense of purpose. There is no doubt in yield? · . our minds that this new neighboring na ERAL PARLIAMENT OF THE WEST Mr. DIGGS. I shall be happy to yield tion is founded on democratic principles INDIES to the gentleman from Kentucky, and is deserving of all appropriate sup Mr. DIGGS. Mr. Speaker, I ask unan Mr. ROBSION of Kentucky. I would port which the United States can bring imous consent to extend my remarks like to express my hearty agreement to bear. at this point in the RECOR.D and to ln. With all that the honorable gentleman Mr. HOSMER. Will the distinguished elude extraneous matter. from Michigan has said. We indeed gentleman from Kentucky yield?. 1958 CONGRESSIONAL ·RECORD- HOUSE 7293 Mr. ROBSION of Kentucky. I shall be feel confident that the leaders and people the University CoUege of The West Indies happy to yield to the gentleman from of the West Indies recognize the impor becoming -an autcmomous University. He California. tance of defending the Caribbean area was born in St. Vincent and won the St. Mr. HOSMER. To see a new nation and look· toward the United· States to Vincent ~cholarship. come to life in democratic fashion is an bear a major part of this responsibility. ANTIGUA experience in Government and politics It follows, of course, that the West Indies Henry Darrell Carlton Moore, age 57, re which is not only personally exciting but are willing to make such sacl'ifices as are tired civil servant and exserviceman. Served several years member of Antigua appoint also serves to confirm our profound be necessary to meet the mutual defense ments and promotions board and tempo lief in the wisdom of self-government needs. The friendship, understanding, rarily on public ser\Tice commission. Mem and political progress along constitu and statesmanship which we witnessed ber of industrial development board and tional lines. The present position· and on all sides leads me to believe that an of fisheries committee. Political amuation the future prospects of the West Indies equitable solution shall be found, taking not known. are striking reminders of the similarity into full account our mutual needs and Mrs. Bertha Higgins, age 68, formerly art of political development in the early interests, and, indeed, those of all our and music teacher in various schools in years of the United States. The federal Western Hemisphere neighbor nations. Antigua and for 20 years at high school. system of government which has stood Mr. DIGGS. It is my pleasure to pre Political a11iliation not known. us· ih such good stead throughout our sent the names and biographies of the DOMINICA history has its counterpart in the new members of this newest parliament in John Baptiste Charles, age 83, planter, nation. the Western Hemisphere which was yes served as an elected member legislative It is my hope, and one that I know is terday invested by Her Royal Highness council for 16 years and on the Roseau shared by my fellow delegates, that the Town Council for 35 years. Also on execu Princess Margaret. tive council and on several government West Indies should achieve the progress SENATORS boards. which it deserves and the economic bet JAMAICA George Austin Winston, age 77, retired terment which it seeks. The stronger Allan George Richard Byfield, educator, civil servant who has been a member of the and more politically sound our new churchman, and policitian, was born in .executive and legislative councils for several neighbor is, the better she can assume 1913. He is a former headmaster of the years and served as representative of the her role as a partner in the Western Trench Town Government School and presi Colony at important conferences. Also Hemisphere. dent of the St. Ann's Federation of Teach served on labor advisory board and sev The West Indies occupy a strategic ers. He is a Baptist deacon and has been eral public committees. position in the defense complex that a member of the executive council of the GRENADA Baptist Union since 1951. Mr. Byfield is serves to protect this hemisphere. The a longtime member of the general council Theophilus Albert Marryshow, C. B. E"., new nation sits athwart the main trade of the People's National Party. age 71, served as an elected member of the route between North and South America Douglas Joseph Judah, solicitor, legislator, legislative council for 34 years and on execu and screens the eastern approaches to company director, was born in 1906. He has tive council. Also served as a representative the Panama Canal. We hope and are been a member of the Jamaica upper house, of the colony at important conferences and on numerous public committees and boards. confident that as it takes its place in the legislative council, since 1942 and has the community of the Western Hemi been a member of the Jamaica delegations john Byron Renwick, C. B. E., solicitor, sphere it also assumes partnership re to practically all the Federation conferences governing director West Indian Publishing since the Montego Bay talks in 1947. In Co.. Ltd. Served on St. George's district sponsibility in assisting in the protec the field of business, he is chairman of the board and on executive and legislative tion of free world interests. No one Jamaica Broadcasting Company, vice-chair councils and on several committees and nation, if it wishes to survive and pro man of the Alumina Jamaica Ltd. and has conferences. - tect its democracy, can ignore the re a finger in a host of other company pies. MONTSERRAT quiremC:mts of mutual defense in these He is a director of B. W. I. A. Ltd. James Henry Arnold Meade, barrister at troubled years. TRINIDAD law and landowner who practiced law in While in Trinidad, we took the oppor Montserrat for over 30 years and for brie.f Dr. Deonarayan Omah Maharajh, 51 years periods in Trinidad and Jamaica. tunity to inspect our strategically im of age, physician, graduated from the Uni portant naval station at Chaguaramas. versity of Chicago in 1935. He was first ST. LUCIA We reviewed the facilities and installa president of the Sanatan Dharma Mahasabha Allen Montgomery Lewis, Q. C., L. L. B. tions on this base with greatest care to and is still a top official of that Hindu or (Hons.). Served as an elected member of gether with the plans for its development ganization. Dr. Maharajh is also an assistant the legislative council and on numerous as a prominent link in the strategic Commandant of the 13ritish Red Cross government committees and conferences. Society. Also as chairman of the Castries Town Board defense system of the Western Hemi Mrs. Marguerite Wyke, artist, musician and on the education board. Acted on three sphere and of the free world and of and journalist, was educated at New York occasions as a Puisne judge of the Wind the islands of the West Indies. There University. She is active in the fields of art ward and Leeward Islands supreme court. is no doubt that this base forms a vital and culture and has sat on several commit~ James Luke Charles, age 60, planter, served link in the defensive chain that stretches tees. She has also taken a lively interest in on the legislative council, government road along the eastern Atlantic approaches political affairs and is a high ranking mem board, and other public committees and as to North and South America. The West ber of the people's national movement. Her the Island's representative on the occasion Indies has requested the United States husband, Dr. David Wyke, is a Canadian of the coronation of Her Majesty Queen to release Chaguaramas for a capital trained medical practitioner. Mrs. Wyke Elizabeth II. Political a11illation with the· was born in the United States, and has Labor Party. site for the new federation. A Technical been resident for many years in Trinidad. Commission made up of representatives ST. VINCENT of the United States, the United King BARBADOS Edward Alexander Clavier Hughes, age 4-1, The Honorable Sir Hampden Archibald barrister at law and company director. dom, the West Indies, and Trinidad, has Cuke, 0. B. E .• was born in 1892, has been Served on the legislative and executive coun met and submitted its report on the a member of the Barbados Legislative Coun~ clls, also as chairman of tourist board and question of a possible alternative site for ell since 1942. He became President 1n as a member of several other boards and the base, taking into consideration rele 1955. He is a member of the executive com committees. vant military and economic factors. mittee and of the executive council. Sir Herbert Fitz-Allan Bryan Davis, 0. B. E., This report is in the hands of the in Archibald is an authority on the financing J. P., age 77. Served on the executive and terested governments. We knew that of the West Indian sugar industry and has legislative councils for 12 years, and as a the careful deliberations and conclu been on many sugar Inissions abroad. He member, and several times as chairman of has also been a member of Barbados dele the Kingstown board for over 24 years. Also sions of an objective group of experts on several public committees and boards. will provide the basis for an amicable gations to Federation conferences since 1947. settlement of the Chaguaramas issue The Honorable Dr. Arnott Samuel Cato, ST. CHRISTOPHER-NEVIS AND ANGUILLA 46 years of age, is a surgeon in private prac James Winford Liburd, represented which will fully take into account. the tice. He has been a member of the Bar vital defense interests in the Caribbean Charlestown electoral district in the island bados Legislative Council since 1951 and has of Nevis from 1952 to 1957 and attended area. been a frequent adviser to Sir Grantley Commonwealth Parliamentary Association I cannot help but believe that the West Adams, Premier of Barbados, at conferences. Course in 1957. Member of the St. Kitts Indies is as concerned with the defense Dr. Cato 1s chairman of the committee ap Nevis trade and labor union executive. of the Caribbean area as are the United pointed by the then Standing Federation William Arnold Seaton, druggist and mem States and Her Majesty's Government. I Committee to investigate the question of ber of chamber of commerce of St. Kitts. CIV--460 7294 CONGRESSI0~1AL RECORD- HOUSE April 24

BARBADOS before he retired voluntarily with the rat Mathura is a member of the DLP Executive Barbados Labor Party-West Indies Federal ing of quartermaster. and toured the East Caribbean late last year Labor Party Both he and Dr. La Corbiniere are mem along with other members of his federal bers of the St. Lucia Labor Party. party from both Trinidad and Jamaica. He Sir Grantley Adams, K. T., C. M. G., Q. C., was supporting the candidature of affiliates 59, is Prime Minister of of Barbados, leader TRINIDAD of the party in an election which had then of the Barbados labor party, and first Democratic Labor Party engulfed the area. vice president of the West Indies Federal Ashfor

/ 7296 CONGRESSIONAL RECORD- HOUSE April 24 is holding hearings on the financial con· The System is right in loosening expanded its plants, equipment, and inven tories by $413 billion. dition of the United States. Professor credit; yes. There is no question about Excess capacity is a threat though 1t 1s Harris' full statement is, of course, that. But it is clearly wrong in the way relative. The policies that impaired growth rather lengthy, as it must be to cover it is doing it. It has taken the System and buying power increased excess capacity. this subject matter, so I will insert in since November 15 until last Tuesday to Restrictive monetary policy contributed to the record only the summary of his bring the banks' prime rate on business the decline. The Federal Reserve raised statement which has, of course, been pre· loans down a single percentage point, rates and curtailed monetary expansion in pared by Professor Harri~ himself. which is now still much too high at a 1956 and 1957 far below the amounts re quired by a growing economy. TIGHT MONEY POLICY AS A MAJOR CAUSE rate of 3% percent. The simple fact is that the System has inflated the money This restrictive monetary policy is reflected As to the causes of the recession, Pro in the reduced stimulus given by consumer supply by $9 billion in the last 3 months and housing credits in successive years. fessor Harris sees the tight-money pol by allowing the private banks to create [In billions of dollars 1 icy of the Federal Reserve System and this much money out of thin air, with no 1955 ______20.8 the administration's as playing a larger backing whatever, except the credit of and more direct role than, frankly, I the borrowers. This procedure is so in 1956------18. 1 had thought this policy had played. Cer excusable as to border, in my opinion, on 1957------14. 3 tainly, I think that Chairman Martin misfeasance. The Federal Reserve Sys A turnover from deficit financing to sub and the others who joined in his policy tem should plainly have followed the al stantial surpluses also helped bring on are have been consistently wrong, both in the ternative route of purchasing Govern versal-from a stimulat~ve factor, that is period when credit was being tightened adding to spending, governmental finance ment securities from the open market. had become a depressive factor, that is re and now, and I believe that I indicated This would not only have saved the Gov as much at the time. Certainly, at least ducing spending and paying off debt. ernment several hundred millions of dol Cash i ncome and outgo, Federal these bad effects of the tight-money pol lars a year in interest payments, it would icy were obvious at the time. Government have brought down bank rates and [In m111ions of dollars J First, the policy was a failure in check brought down rates in the capital mar ing the inflation; second, it added costs ket. 1955 (deficit)------729 to the administered prices industry 1956 (surplus)------5,525 Professor Harris, however, sees a larger 1957 (surplus)------1,194 which resulted in increased prices; third, and more direct connection between the it changed the income qistribution, shift· administration's and the Federal Re· EXTENT OF THE RECESSION ing more income to the bondholders and serve's tight-money policy and the pres On numerous important indices (e. g. in moneylenders, and shifting income ent recession.. He says: dustrial production, steel production, new away from the families needing the in orders, manufacturing) the recession has ad come to keep up purchasing power; and, Despite a vigorous policy, the Federal Re vanced beyond those of 1948-49 and 1953-54, serve failed to st op inflation and yet helped and especially in the degree of pessimism fourth, the high-interest policy raised to bring on a recession. which is not measurable. interest rates in the capital market, caus Unemployment has risen in a year by 2 ing the big .corporations to shift much And his concluding remark on this millions and by more than 4 millions or 1% of their credit demands onto the com subject is: times when adjusted for the cut in the mercial banks, thus squeezing small Finally, to stabilize prices with a l arge working week. In some cities (e. g., Detroit business out of any source of credit, with cost inflation could only be done by induc and Buffalo) unemployment is approaching, the inevitable result that the business ing unemployment through a restricted or is in excess of 15 percent~ monetary policy. · This the Federal Reserve The decline is especially great in manu.:. structure of the country has been ir ha.s accomplished. facturing and hence substantially affects reparably damaged by weakening small all census industries except paper and print and middle-size firms and strengthening I will not attempt to enumerate all this ing, chemicals and food products. monopoly and concentrated control over distinguished economist recommends as business and finance. to what we should now do. These rec· THE FAILURE OF MONETARY POLICY ommendations can be ready in his sum Despite a vigorous policy, the Federal Certainly, too, even if Chairman Reserve failed to stop the inflation and yet Martin had been right, he would have mary. I would like to point out, how· helped bring on a recession. been right for the wrong reasons; not for ever, that I am in wholehearted agree Excessive emphasis on the objective of an the various reasons he advanced for the ment with most of his recommendations. absolutely stable dollar-an emphasis also tight-money policy. Through most of He calls for a low-interest policy, and favored by the administration, led to this this period he was seeing shortages, ex calls for the Federal Reserve to buy sev debacle. The goal of growth was rather cess demand over supply, too many dol eral billion dollars' worth of Government neglected. lars chasing too few goods, and all that securities as a means of increasing the Why the failure? money supply. He says that this can do The authorities failed to deal with the sort of thing, when the plain facts were financial intermediaries over which their that the shortages had long since dis no harm and "maybe do some good." I control seems to be very limited. Yet these appeared and surpluses of almost every agree. instit utions (e.-g., life insurance companies, kind were in evidence .. GOVERNMENT SPENDING BETTER THAN CUTI'ING Government credit agencies, pension funds) I have been inclined to believe, how· TAXES continue to grow much more than commer ever, that the tight-money policy had Professor Harris says that he prefers cial b anks through which the Federal Re only hastened and accentuated a depres spending as a way out of the recession in serve tries to exercise their control. Another reason for failure was the high sion which would have occurred anyway, preference to a tax-reduction policy. liqutdtty o! business. They could dispose o! rather than that it had been a primary Spending programs, he points out-I cash and securities to expand operations. cause of a depression which might think correctly-favor especially those That the largest expansion was in con otherwise not have occurred. But per in need and yield larger results of dollar sumer and housing credit also did not help haps I have been influenced in this by per cost to the Treasury. He would, the Federal Reserve. Commercial banks ac my high personal regard for Chairman however, recommend a temporary tax count only for 15 to 20 percent of this credit. Martin and for other members of the cut, for 6 months, because of the quick Fin ally, to st abilize prices with a large cost inflation could only be done by induc Board of Governors, as well as for several ness with which this could be done and ing unemployment through a restrictive outstanding public servants who serve the effects began to be felt. monetary policy. This the Federal Reserve as presidents of some banks that I hap· Professor Harris' summary is as fol accomplished. pen to know. lows: THERAPY FEDERAL RESERVE'S PRESENT POLICY IS EQUALLY THE FINANCIAL SYSTEM AND THE RECESSION The sp ending o! the private economy is WRONG SUMMARY STATEMENT BY SEYMOUR E. HAR running down at the rate of 10 to 15 b111ions RIS, CHAIRMAN OF THE ECONOMICS DEPART per year. New spending must be InJected Whether or not Chairma-n Martin is in MENT, HARVARD UNIVERSITY, BEFORE THE by the Government at that annual rate, or control of the policies being pursued to· SENATE FINANCE COMMITTEE HEARINGS ON at a lower rate if we allow for secondary day, I do not know; but it is plain as the INVESTIGATION OF THE FINANCIAL CONDITION effects of new spending or tax cuts. This nose on your face that the Federal ,Re· OF THE UNITED STATES is a. condition for stopping the decline. serve's policies today are even more CAUSES OF THE RECESSION MONETARY POLICY . wrong, if that is possible, than they were Undoubtedly the_in vestment boom was an We expect a much greater lift here. The in the tight-money period. · important fact or. In 11 years the count ry reserves and the excess reserves of member 1958 CONGRESSIONAL RECORD- HOUSE banks are much below what they ought to SPECIAL ORDERS GRANTED report on the audit of the Federal National be. They are roughly at the level of a year Mortgage Association, Housing and Home ago and the high point of the boom. By unanimous consent, permission to Finance Agency, for the fiscal years ended What 1s the Federal Reserve afraid of? address the House, following the legisla June 30, 1957 and 1956 (H. Doc. No. 374); They should purchase several billions of tive program and any special orders to the Committee on Government Operations Government securities as a means of in heretofore entered, was granted to: and ordered to be printed. creasing the supply of money and ultimately Mr. SIKES, for 20 minutes, on Thurs 1850. A letter from the Secretary of Agri depressing interest rates-a must for recov culture, transmitting a draft of proposed day next. legislation entitled "A bill to facilitate ad ery. This can do no harm and may do some Mr. McFALL and Mr. BALDWIN, for 30 good. ministration and management by the Secre So tar the Federal Reserve has shown minutes, on Monday next. tary of Agriculture of certain lands of the much less acumen and courage in this re Mr. MACK of Washington, for 20 min United States within national forests"; to the cession than it displayed in 1931-33. utes, on Wednesday next. Committee on Agriculture. The policy of selling long-term Govern Mr. O'KoNSKI, for 5 minutes, today. 1851. A letter from the Administrator, Fed ment securities in the midst of a recession eral Civil Defense Administration, transmit Is foolish and costly and should be stopped ting the quarterly report of Federal contribu once and for all. These securities compete EXTENSION OF REMARKS tions for the quarter ending March 31, 1958, with private enterprise and keep rates up. By unanimous consent, permission to pursuant to the 'Federal Civil Defense Act of 1950; to the Committee on Armed Services. EXPENDITURE POLICY extend remarks in the CONGRESSIONAL 1852. A letter from the Chairman, Federal We propose a spending program of $4 bil RECORD, or to revise and extend remarks, Deposit Insurance Corporation, transmitting lion for calendar year 1958-above budgetary was granted to: the annual report of the Federal Deposit requests of January. Mr. PATMAN at the end of the proceed Insurance Corporation for the year ended De In listing the items, we take account of ings of today and on Monday next, and cember 31, 1957, pursuant to the Federal the Congressional action and trends so far, to include extraneous matter. Deposit Insurance Act; to the Committee on of the need of more security outlays, and Mr. DEROUNIAN and to include extrane Banking and Currency. the wisdom of doubling outlays on hos 1853. A letter from the Secretary of the pitals, urban re~evelopment and public ous matter. Treasury, transmitting the quarterly report housing. We also propose a rise of one-third Mr. SIMPSON of Pennsylvania

EXTENSIONS OF REMARKS Muskegon Fights the Recession Congressinal District of Michigan as an a huge buy-now-sales-mean-more-jobs outstanding example of a city, hard hit campaign. by the recession, that is rolling up its Since the campaign will continue un EXTENSION OF REMARKS sleeves and fighting back. til May 10, its success cannot yet be OF Greater Muskegon, population 108,018, measured, but reports to date have been is an area-of serious labor surplus, with good. Other cities throUghout the HON. ROBERT P. GRIFFIN about 12.5 percent of the working force United States have succeeded with simi OF :MICHIGAN unemployed. Military contracts, public lar promotions. IN THE HOUSE OF REPRESENTATIVES works projects and other activities show Muskegon's campaign, marked by Thursday, April 24, 1958 promise of lessening the pressure later in raised banners . and ·towered price tags, the year, but ln the meantime merchants ~ ~xtended to the entire range of buying, Mr. GRIFFIN. Mr. Speaker, I would and Civic leaders are locking horns with and is not limited to autos as in some like to point'~ to Muskegon in my Ninth the psychology of recession by staging other cities. The spirit behind the Mus-