21716 CONGRESSIONAL RECORD- HOUSE September 2, 1966 concessions at the National Zoological Park groundwork for the San Francisco con­ HOUSE OF REPRESENTATIVES to certain nonprofit organizations and to ac­ ference, the UNRRA conference in At­ cept voluntary services of such organizations lantic City that established the United FRIDAY' SEPTEMBER 2, 1966 or of individuals, and for other purposes; S. 3298. An act to amend the Federal Haz­ Nations Relief and Rehabilitation, and The House met at 12 o'clock noon. ardous Substances Labeling Act to ban both the Roosevelt-Churchill World War The Chaplain, Rev. Edward G. Latch, hazardous toys and articles intended for n conferences in Quebec, and the Ken­ D.D., offered the following prayer: children, and other articles so hazardous as nedy-MacMillan conference in Nassau. to be dangerous in the household regardless He has traveled with all the Presi­ Bless the Lord, 0 my soul: and all that of labeling, and to apply to unpackaged dents since Franklin D. Roosevelt except is within me: bless His holy name.­ articles intended for household use, and for President Johnson and has attended Psalm 103: 1. other purposes; S. 3389. An act to provide for the estab­ most of the national political conven­ 0 Lord, our God, who has parted the lishment of the Joseph H. Hirshhorn Mu­ tions since 1932. curtain of the night and opened the door seum and Sculpture Garden, and for other A native Illinoisan, he was born at to a new day, grant us light in our dark­ purposes; Rossville, Ill. His wife, a Hoosier, was ness, life in our sorrow, and love in our S. 3433. An act to make it a criminal of­ born at South Bend, Ind., the daughter work. When we falter may we find con­ fense to steal, embezzle, or otherwise unlaw­ of a family whose ancestors pioneered fidence in Thee: when we faint may we fully take property from a pipeline, and for northern Indiana. For years she was find comfort in Thee: when we fail may other purposes; and the director of the Eloise Moore dancers, S. 3715. An act to improve the aids to we find courage in Thee. navigation services of the Coast Guard. playing Midwest colleges. In all labor keep us faithful, in all our Both the Moores became proficient in experiences keep us loyal to the truth, in the Russian language before going to all our relationships keep us gentle and BILL MOORE LEAVES WASHINGTON Russia. understanding, and in all of life keep us AFTER 24 YEARS OF NOTABLE Mr. McCLORY. Mr. Speaker, today strong in Thee. the gentleman from Illinois [Mr. SERVICE AS CORRESPONDENT OF "Thou who touchest earth with beauty O'HARA] delivered a tribute to William Make us lovely, too THE CHICAGO TRIBUNE T. Moore. It would be presumptuous of Keep us ever by Thy spirit Mr. O'HARA of Illinois. Mr. Speaker, me to attempt to repeat the highlights Pure and strong and true." I ask unanimous consent to address the of Bill Moore's career or the accomplish­ House for 1 minute. ments of his gifted wife as narrated by Amen. The SPEAKER. Is there objection my colleague, BARRATT O'HARA. I lack to the request of the gentleman from both the years of close association and THE JOURNAL Illinois? the eloquence of the Member from Illi­ The Journal of the proceedings of yes­ There was no objection. nois' Second District. However, I share terday was read a::1d approved. Mr. O'HARA of Illinois. Mr. Speak­ his interest in the future of Mr. and Mrs. er, I have asked for this time to pay a Moore and I am appreciative of his tribute to a great newspaperman who is gracious invitation to join in wishing MESSAGE FROM THE SENATE leaving Washington after a long and dis­ the Moores Godspeed. A message from the Senate by Mr. tinguished career as a Washington cor­ In retiring from the Chicago Tribune respondent of the Chicago Tribune, Bill after 24 years as its Washington corre­ Bradley, one of its clerks, announced that spondent and in reentering the field of the Senate had passed with amendments Moore, whose full name is William T. Moore. - journalism in Florida, William T. Moore bills of the House of the following titles, is acting in the best traditions of the in For 24 years Bill Moore was a Wash­ which concurrence of the House is fourth estate. After some 40 years of requested: ington correspondent for the Chicago Tribune. Throughout the year 1956 he reporting daily happenings and of cover­ H.R. 722. An act to amend certain provi­ ing the "story behind the story" at the sions of existing law concerning the rela­ was the Moscow correspondent for the tionship of the Coast and Geodetic Survey to Chicago Tribune. After his retirement conference. tables of the world, there can the Army and Navy so they will apply with from the Tribune on February last and be no retirement for him. Even in similar effect to the Air Force; until this week he was a valued mem­ Florida, where thousands go to spend the H.R. 3041. An act to amend title 10, United ber of my congressional staff and I am "afternoons" of their lives, there will be States Code, to exempt certain contracts with indebted to him for-his devoted and dedi­ only sunrise and high noon for the foreign contractors from the requirement for cated service to the Second District of Moores. an examination-of-records clause; To those of us who come from Illinois, H.R. 8058. An act to amend section 4 of the Illinois and to the Nation. My warmest District of Columbia Income and Franchise good wishes go with him in his new field there is a feeling of fraternity based on Tax Act of 1947; and of activity in Florida where Mr. Moore our common heritage in "the land of H.R. 10860. An act to promote the general will continue his newspaper career as a Lincoln." As a native son, William T. welfare, public policy, and security of the writer fOr the Fort Lauderdale News & Moore belongs to that fraternity. United States. Sun-Sentinel. Wherever he has gone, he has taken with The message also announced that the Bill Moore has been my close friend him the sturdy background and the un­ Senate had passed bills of the following for over 40 years. He and his charming quenchable sense of adventure which titles, in which the concurrence of the and talented wife, Eloise, were in the in­ makes every day a new beginning-a House is requested: ner circle of affectionate friendship of challenge to be met and mastered. S. 17. An act to repeal certain acts relating my late brother, Frank H. O'Hara. We, in the Illinois delegation, predict to containers for fruits and vegetables, and Their friends in Washington are legion. that from Florida will come some of the for other purposes; Just this last year he served with honor best work of William T. Moore, with the S. 1515. An act to include the construc­ and renown as the president of the ex­ unmistakable flavor of the Midwest dis­ tion of an additional span as part of the clusive Arts Club. tinguishing it. It will be a privilege to authorized reconstruction, enlargement, and He began his newspaper career in 1924 say then-as now-"Only Bill Moore extension of the bridge across the Missis­ could have written that. What a guy." sippi at Rock Island, Ill.; at the old Chica~o I-:erald & Examiner S. 2893. An act to amend section 208(c) of while attending the University of Chi­ Mr. RUMSFELD. Mr. Speaker, I the Interstate Commerce Act to provide that cago. He was married to Eloise Tasher, want to take this opportunity to offer a certificates issued in the future to motor who was graduated from the University tribute to a veteran Washington news­ common carriers of passengers shall not con­ of Chicago magna cum laude and as paper correspondent, Mr. William T. fer, as an incident to the grant of regular a member of Phi Beta Kappa. Moore, who is leaving Washington after route authority, the right to engage in special He wrote many of the gangland stories representing the Chicago Tribune here or charter_operations; of the prohibition era. in Chicago. for 24 years. S. 2979. An act to extend coverage of the State Technical Services Act of 1965 to the Mr. Moore attended as a Chicago Trib­ I know all of those who have known territory of Guam; une correspondent the conference that Bill Moore extend very best wishes to S. 3230. An act to authorize the Board of founded the United Nations in San Fran­ him as he continues his reportorial ca­ Regents of the Smithsonian Institution to cisco in 1945, the Dumbarton Oaks con­ reer with the Fort Lauderdale News & negotiate cooperative agreements granting ference in Washington that laid the Sun -Sentinel. September 2, 1966 CONGRESSIONAL RECORD- HOUSE 21717 Bill Moore's accurate and perceptive One of the more successful architects There were two dozen or more trains run­ reporting over the years have earned of city ''rebuilding" is Detroit Mayor ning by it every day,· when Shelbina didn't him the high regard of those of us in Jerome Cavanagh. His estimate for need a rebirth. I think there is one now, but I am not certain whether it is one a day Government service. The journey of making the cities around the country or one a week. We do need to be reborn this native Illinoisan from Washington look new again is '$250 billion. in trains, at Shelbina. Several of each, to Florida is indeed the sunny State's Mr. Jack Rice, a feature writer for the freights and passengers, would be nice, and gain. St. Louis Post Dispatch, thinks the best steam engines for them would be a particu­ way is to start with a small city and larly splendid reborning. GENERAL LEAVE. TO EXTEND work up. That way the cost will not I estimate that the bill will not come to seem so staggering. He has suggested more than $500,000. The steam engines and Mr. O'HARA of Illinois. Mr. Speaker, the watering trough run up the cost but his hometown of Shelbina, Mo., which I it won't do to economize falsely on the pilot­ I ask unanimous consent that any Mem­ am privileged to represent, be made a ber who so desires may have 5 legislative model rebirth of Shelbina. If Cavanagh gives pilot projec ·~. in and starts cutting corners that $250 bil­ days in which to extend his remarks in Mr. Rice's plan is worthy of note, and lion scheme will shrink until you can't tell tribute and salute to Eloise and Bill most economical. I commend the fol­ it from the war on poverty and I don't want Moore. lowing article to my colleagues: Shelbina lending itself to anything except The SPEAKER. Is there objection to a first-class rebirth. the request of the gentleman from Illi­ WHY NoT SHELBINA AS A PILOT CITY? nois? (By Jack Rice) There was no objection. Jerome Cavanagh, the mayor of Detroit, THE PRESIDENT'S CLUB has grand notions for renovating the cities Mr. DEL CLAWSON. Mr. Speaker, I of the United States but he has met some op­ position. He must have expected that. He ask unanimous consent that the gentle­ THE 50TH ANNIVERSARY OF IN­ estimates that making cities look new again man from Michigan [Mr. GERALD R. TERNATIONAL ASSOCIATION OF will cost 250 billion dollars. There was cer­ FoRD] may extend his remarks at this LIONS CLUBS tain to be a scattering of cheapskates who point in the RECORD and include ex­ think the price is high. traneous matter. Mr. HUNGATE. Mr. Speaker, I ask Cavanagh is a big-city man all the way. The GPEAKER. Is there objection unanimous consent to address the House In addition to being mayor of Detroit he is to the request of the gentleman from for 1 minute and to revise and extend president of the National League of Cities, California? my remarks. and of the U.S. Conference of Mayors. What There was no objection. The SPEAKER. Is there objection Cavanagh needs is a fresh, small start, with a little city, and when everyone sees what Mr. GERALD R. FORD. Mr. Speaker, to the request of the gentleman from a shiny bargain he can make of it he will in view cf the increasing interest in the Missouri? get his $250 billion. President's Club and the need for cam­ There was no objection. What I want Cavanagh to do is make a paign contribution reform legislation as Mr. HUNGATE. Mr. Speaker, I wish pilot model of my home town. That is embodied in bills introduced by the gen­ to commend the International Associa­ Shelbina, Mo., population about 1800. When tleman from California [Mr. LIPSCOMB], tion of Llons Clubs, which is currently Cavanagh went into a few details of his the gentleman from Wisconsin [Mr. observing its 50th aniversary. plan in Washington the other day, Mayor BYRNES], myself, and other Members of The Lions Clubs constitute a tremen­ John Lindsay was there speaking. for his city, New York. Lindsay reckoned that New the House Republican leadership, I am dous force for international friendship York could be tidied up for about $50 billion. inserting in the RECORD at this point the and good will. Implementing their Right then, you could tell Cavanagh was in following pertinent comments: motto "We Serve," the clubs support trouble. STATEMENT OF REP. JOHN J. RHODES, REPUB­ more than 50,000 activities each year de­ I don't know wbere the mayor of Shelbina LICAN, OF ARIZONA, CHAIRMAN OF THE voted to community and humanitarian was while the meeting was going on but he HOUSE REPUBLICAN POLICY COMMITTEE, MAY service. would have been a lot less frightening to the 26,1966 During this golden anniversary year, Senate subcommittee than Lindsay was. We Republicans are pleased that President they have launched a project known as Making Shelbina look reborn, which is the Johnson finally has sent his long-promised "The Lions Peace Essay Contest." word Cavanagh likes to use when he talks message on election reform to the Congress. about cities, would fetch around Cavanagh's We hope it is not too late for action at this The purpose of this contest is to focus opposition and I can tell him just how to go attentiCJn on the desirability of searching session. about it. While the specific proposals of the Admin­ for ideas and developing a plan toward The first thing Mayor Cavanagh of Detroit istration will require serious study, the fol­ making world peace a reality. wants to do in Shelbina is repaint the band­ lowing states the position of the House Re­ I extend my congratulations to the stand. He can't miss it. The bandstand is publican Policy Committee on this impor­ Lions Clubs on the achievements of their built like a bird cage, but somewhat bigger, t ant campaign year question: first 50 years. and wish them success in and is smack in the middle of town. He may The House Republican Policy Committee their contest goals, which include dis­ have to put a new roof on it, too. It's been urges the immediate review and reform of covery of a workable plan for world years since the SatUrday night band concerts the federal laws that pertain to campaign were held there regularly, and the roof was contribution expenditures. peace. getting kind of poorly even then. The tuba Political campaigns are becoming so ex­ I am sure they will continue to make player got carried away on his Song of India pensive that· soon this country will be faced valuable contributions to the advance of solo and blew a hole through it. with a situation wherein only the rich, or a man in the future. Working his way out from the center of person with substantial financial backing, the town, the bandstand, Cavanagh can go will be able to run for public office. There down the street to the livery stable. What is a growing danger that, in many instances, the livery stable needs to make it lo~k reborn a person with unlimited financial means, but RENOVATING CITIES OF THE is a resident horse. Maybe two horses. They fewer qualifications, may be able to over­ UNITED STATES don't have to be Kentucky-fancy but the whelm a better qualified, but less affluent, Mr. HUNGATE. Mr. Speaker, I ask town does need a horse in the livery stable, opponent through the m aximum use of radio, permanent, to make it look renascent. TV, and other methods of communication unanimous consent to extend my re­ Then, coming back up the street, to a point and advertising. marks at this point and include extrane­ across from the bandstand, Mayor Cavanagh Strict and accurate accounting should be ous matter. muRt put in a watering trough. For those required so that expenditures remain with­ The SPEAKER. Is there objection horses in the livery stable. Maybe he should in established limits, and the use of spu­ to the request of the gentleman from dust off the jail, too. The jail hasn't been rious campaign committees to avoid the re­ Missouri? used much since the horse-thieving died out, porting of total expenditures should be pr.o­ There was no objection. . for lack of material, but there's no telling hibited. Also, a central repository should Mr. HUNGATE. Mr. Speaker, much what might spring up again in a reborn be established so that all reports would be Shelbina. received, examined, tabu~ated, summarized has been said lately about "renovating We need improvements at the railroad and publicized in a uniform manner. the cities of the United States." station, next. What the railroad station re­ ~y its terms, the existing law prohibits When Mayor John Lindsay estimated quires, more than paint or the slats fixed in contributions by both corporations and the cost of "renovating" New York City the benches or a new brass cuspidor, is a unions to campaigns for federal ofiice. Un­ at $50 billion, outraged cries echoed train to run back and forth in front of it, fortunately, through court interpretation around the country. · regularly. and lack of enforcement, this provision has 21718 CONGRESSIONAL ,RECORD- HODS.E September 2, 1966 become almost meaningless. Today, thou­ they paid off $800,000 of 1964 campaign It is based on a single standard for all. sands and thousands of dollars of union and debts. How do they explain that? -Its provisions are not weighted · against corporation funds are channeled, either di­ These reports of income and outgo appear either executive or legislative branch, in­ rectly or indirectly, into various political irreconcilable. I can only conclude that they cumbent or challenger, Republican or Demo­ activities. Reform ·in this area is long over­ are completely phoney. . crat, big or small contributor, business or due. Legislation· that will correct the de­ Maybe the President, with his great interest union, or against any element of our society fects in the law and permit vigorous en­ in election reform, can set these matters except the cheaters and the crooks, the in­ forcement must be enacted. right. fluence buyers and the influence sellers. In order that there may be maximum participation in the election process by .the STATEMENT OF JOHN J. RHODES, REPUBLICAN, STATEMENT ON ELECTION REFORM BY REPRE­ American public, a $100 tax deduction should OF ARIZONA, CHAIRMAN, HOUSE REPUBLICAN SENTATIVE GERALD R. FORD, JR., OF MICHIGAN, be provided for campaign contributions to POLICY COMMITTEE, ON ELECTION REFORM, JULY 13, 1966 an appropriate committee of a qualified JULY 13, 1966 Last January 17, in our Republican Ap­ political party. This deduction should be When President Johnson sent his belated praisal of the State of the Union, I said we available whether or not the taxpayer elects election reform proposals to Congress on of the minority were "surprised and pleased to take this standard deduction. A tax May 26, after published reports that Re­ that the President touched on the subject of deduction of this type would encourage in­ publicans were working on a bill of their political campaigns and elections" in his dividuals in all walks of life to contribute. own, we welcomed his step in the right direc­ message to the Congress. I also said, "His Moreover, it would prevent candidates from tion. We promised to give his recommenda­ recommendations do not go far enough." becoming too dependent upon a few large tions serious .study. This turned out to be equally true of the contributors. Having studied both the high principles legislative proposals which President John­ The 1962 Report of the President's Com­ of political conduct enunciated by Mr. son sent up to us at the end of May. Repub­ mission on Campaign Costs recommended Johnson in his letter of transmittal and the licans promised then to give the Administra­ certain reforms, including tax allowances. specific provisions of the l:!-dministration bill, tion's suggestions serious study, and we have, These suggestions, which were limited to I am somewhat disappointed. as my colleagues will explain in greater Presidential and Vice Presidential campaigns, Not so much by what it states as by what detail. were favorably .received and implementing legislation was recommended by the Presi­ it omits-the proposed legislation measures It 'would seem that when the Democrat in dent. Unfortunately, this legislation did not up neither to the noble eloquence of the the White House and the Republlcan leaders receive serious consideration by either the President's publicized covering letter nor to in the Senate and House agree in January on 87th or the 88th Congresses. In order that the obvious facts of political life. the need for an election reform bill, the pub~ a first step. toward the solution of this serious As so often happens in this Administra­ lie might be entitled to expect one before ths problem may be taken during the 89th Con­ tion, President Johnson seems to be using elections in November. This may still be gress, we urge that the appropriate Congres­ a double standard for political candidates possible if the Administration and the Demo­ sional committee give prompt and careful and public officials-a standard of strict ac­ cratic Majority in Congress really mean consideration to legislation that will provide countability and criminal sanctions for the business. a $100 tax deduction for campaign con­ legislative branch of the government and Let me read you the opinion of the Detroit tributions. another of genteel admonition for the above­ News in my home State of Michigan. In a That there is a growing interest in elec­ suspicion appointees of the executive branch. May 31, 1966, editorial headed! LBJ's Reform tions, and a Willingness to participate President Johnson served his Texas con­ Campaign Financing-Too Little and Too through campaign contributions, is illus­ stituencies for 26 years in the Congress. He Late, The News said: trated by the fact that in the 1964 cam­ speaks from a wealth of experience on the "Let us reme.mber first that Lyndon B. paign, a large percent of the total funds col­ subject of campaigns for the House and Johnson had it within his power for many lected by the Republican Party was in con­ Senate. years to do something meaningful about re­ tributions of $100 or less. Significantly, for No President in this century, it is generally forming congressional campaign spending. 800,000 Republican contributors, the average conceded, has come to the White House with But when he was majority leader of tne Sen­ contribution was $11. On the other hand, a a more intimate understanding of the Con­ ate (and his 'good right arm,' Robert G. recent report by the Citizen's Research Foun­ gressional processes, the means by which 'Bobby' Baker, staffed the Democratic Sena­ dation of Princeton, N.J., reflects that in legislation is passed or pigeonholed, steam­ torial Campaign Committee), exactly nothing 1964, of the total Democratic contributions rolled .or sabotaged. was done. · from individuals, 70 percent were received No President within memory more vigor­ "And let us remember further there is vir­ in sums of $500 or more. ously asserted the equal rights and respon­ tually no chance Congress will take the time Certainly, small contributions must be en­ sibilities of the Congress and the Executive to work on the complex and touchy problem couraged. Providing a $100 tax deduction is, Branch than Mr. Johnson did during his of campaign spending reform in the few we believe, a logical and fair way to achieve many years in the House and Senate. months remaining in this session. Had not this result. It is curious, to say the least, that he Capitol Hill Republicans made their own pro­ should now attempt to persuade his former posals earlier last week and goaded the Presi­ friends and colleagues-more than two­ dent to send up his bill, there's no telling STATEMENT BY REPRESENTATIVE GERALD R. thirds of them Democrats-that · they are when he would have gotten around to, as. he FoRD, REPUBLICAN, OF MICHIGAN, MAY 27, 1966 somewhat more suspect in matters of per­ said, •urge its prompt enactment.' It is interesting that President Johnson's sonal interest and political influence than "Finally, the President cannot avoid there­ election reform bill should be sent to Con­ other public servants sworn to uphold the sponsibility for leading a national political gress immediately after news stories appeared Constitution. party which, by its dedicated exploitation of concerning Republican proposals in this We Republicans wholeheartedly applaud loopholes in existing law, has seriously un­ field. I find the President's recommenda­ President Johnson when he warns of "the dermined public confidence in the integrity tions a good starting point. I am sure they possibility that great wealth can be used to of government." can be improved upon, and House Repub­ achieve undue political influence." That was ·The Detroit News speaking. Per­ licans aim to do just that. We will be We would be first to agree with him that sonally, I prefer to think the President is putting in a bill of our own, with next Wed­ "we must make it possible for those without sincere about campaign and election re­ nesday as the target date for introducing it. personal wealth to enter public life without forms and full disclosure of contributions. I cannot discuss the content at this time, being _obligated to a few large contributors." Here is a story in the Washington Post about except to say it will be more comprehensive We _might even borrow these phrases, using Mr. Johnson's appearance at one of his than the Administration measure. the past and present rather than the future President's Club $1,000-a-plate dinners in In the light of Mr. Johnson's interest in tense. New York last month-"The President disclosure of gifts and income by members of Seriously and after careful scrutiny, I . Shakes the Hands that Write Big Checks For Congress, it appears to me the President think the President's message -about cam­ the Party." I'm sure he feels the public has might well see to it that the President's paign reform contains many good ideas. But a right to know who wrote those checks. Club reports filed with the Clerk of the the precise provisions of his bill are not Although the affair was closed to reporters, House for the years 1964, 1965 and the first bJ;'oad or balanced enough to accomplish the the Associated Press reported that portions quarter of 1966 are revi&ed. These reports moral regeneration and the practicil results of his Waldorf-Astoria remarks were· over- indicate the Club' spent $459,~28.75 more his message envisions. . . . heard, and quoted them as follows: . · than it too'k in during the period covered. Republicans are at least equally an,xious "The Democratic Party was $4 million in There is obviously a discrepancy here, and it to defoliate the un~erbrush of cynic~sm debt when I took office," the President said. should be straightened' out. ., · ~hich the President says surrounds present "Since I took office the debt has been reduced It is also interesting to note that the campaign financing methods. At:ter all, we to about $1.5 million so far, and a few more Demo<::ratic Natio_nal Co~ittee, repor~iJ:\g have no "President's Club." dinners like this should put the Democratic on its activities for the first quarter of thi_s We are, _therefo_re, ip.troducing. a more com­ Party in the bla-ck." year, stated that it spent $155,005 more than pr_ehensive, m9re ,balanced, and_ more. work~ When President Johnson ·sent his election it received. The committee placed its total a~l~ election _retorm 1;>111 along the lines of reform proposals to the .Congress last·May, I spending for the period at $401,122: At 'the our earlier House Republican Policy Com­ commented that he could demonstrate his same time, Democratic officials told newsmen mittee statement. interest in full disclosure by having his Presi- September 2, 1966 CONGRESSIONAL RECORD- HOUSE 21719 dent's Club explain how, according to the ardor for belonging to the Demoeratic Party's these days has some business with Washing­ reports then on file with the Clerk of the prestigious President's Club. ton. House, it had apparently managed to spend While it's still the best fund-raising gim­ SEEK OTHER FUNDS nearly half a million dollars more than it mick the party has, a number of members Since mid-1964, the President's Club has took in since 1963. and prospective joiners are having second received contributions of more than $4.2 I am happy to report that this has been thoughts. . million for the Democratic Party. In the first done, and that the President's Club listed One reason, it seems, is that the President's three months of this year, it raised almost contributions of $917,253.57 during the sec­ Club may have been too successful for its own $920,000, about 50 percent more thari was ond reporting period of this calendar year, good. raised from all other sources by the national bringing the President's Club's total receipts Conceived originally as an exclusive "in­ committee. for 1966 to $1,042,853.57 thus far reported. group" for executives wanting to be on per­ There are hints that Democratic bigwigs So at least one Democratic deficit appears to sonal terms with the man in the White House, may be sensing trouble ahead for the Presi­ have been eliminated. membership now has ballooned to more than dent's Club. Key senators and Treasury Un­ Of course, like the Freedom of Information 805, according to a Democrat familiar with dersecretary Joseph W. Barr have given law we recently enacted, this legislation will the records. strong support at a Senate hearing for Mr. not do much good if an alert press and an "That not a club, it's a mob," observed one Johnson's proposal t..'lat individuals be al­ alert electorate fail to make use of the infor­ New York corporation official. He has de­ lowed an income tax deduction of up to $100 mation it requires to be made public. For cided to forego the pleasure of paying the in political contributions. example, it would be interesting to see $1,000 minimum annual fee. Many, of Arthur Krim, the Democratic Party's fi­ whether there is any correlation between top course, have paid much more. nance chairman, has begun a new national Federal appointments, the award of large Some businessmen also sound disap­ drive for contributions from ordinary folk. government contracts or the disposition of pointed over the benefits they have gotten out With campaign costs skyrocketing every­ antitrust actions, and membership in the of the club. where, continued Democratic reliance on fat Presiden~·s Club. Rightly or wrongly, they were led to be­ cat money could soon destroy the party's We Republicans are serious about campaign lieve that membership would bring them long contention that it is owned and oper­ reforms. In this Congress we're only Num­ "special treatment"-frequent and exclusive ated by the little people. ber Two, but we try harder. Some observers opportunities to hobnob with the President (like The Detroit News) don't think Number and his top advisers. [From the Washington Post, Aug. 26, 1966] Once inside, however, they have discovered One is really trying at all, but if the· majority CONTRACTORS' GIFT NOT LINKED TO MOHOLE the glamor to be considerably less than was wants reforms before November, we're ready (By Drew Pearson and Jack Anderson) to cooperate. This bill, which we are intro­ advertised in the sollcitation literature. ducing today, is proof of our serious purpose. The main rewards have been a once-yearly When Rep. DONALD RUMSFELD (R-Ill.) social affair with President Johnson in at­ killed the Mohole project because $25,000 tendance, a few Johnsonian mementos such was given to the President's Club by mem­ [From the New York Times, Aug. 29, 1966] as a family photo album and the "favor" of bers of the Brown and Root contracting firm, THE PRESIDENT'S CLUB top seats at fund-raising dinners. he missed half the political story. President Johnson's comment that Repub­ A Michigan executive said he joined in 1964 He also did two other things: licans are responsible for renewed public un­ because he "preferred Johnson over Gold­ 1. He killed a purely nonpolitical project easiness over the President's Club, that water." He added: "I don't mind the club sponsored by the National Science Founda­ financially elite group whose members con­ membership so much, but I'm getting dog­ tion, the reverse of the much more expensive tribute $1,000 or more to the Democratic gone weary of the local Democrats who keep and more spectacular project to explore the party in exchange for undefined but special wanting me to contribute to them, too. After moon, to find out ahead of the Russians what access to the President of the United States, all, I'm really a Republican." is the temperature of the earth below the is not likely to set many minds at rest. It A third reason for the disenchantment­ surface, what causes earthquakes and vol­ now appears that there is a super-elite group and some executives fear it is bound to in­ canos. made up of persons who raise or contribute crease--is the rislt of business embarrassment 2. He illustrated the importance of pass­ $10,000 each. resulting from President's Club membership. ing a clean elections bill to regulate more Partisan critics have called attention to They have in mind two recent incidents on carefully big contributions such as this. the fact that a wealthy St. Louis brewer and Capitol Hill and the newspaper and tele­ The clean elections bill proposed by Presi­ members of his family made large donations vision publlcity that followed. dent Johnson is now stymied in the Senate to the Presic_ient's Club last spring while an The latest of these was the scuttling of by Sen. HOWARD CANNON (D-Nev.). antitrust suit against the brewery was being Project Mohole by the House after Repub­ But the other half of the political story settled by the Justice Department. The con­ licans raised the issue of $25,000 in con­ which RUMSFELD, a good Republican, missed tractor on Project Mohole, the controversial tributions to the President's Club by the is that Brown and Root have been financing and now abandoned attempt to drill below leading contl'actor and his family. Lyndon Johnson for years, put up around the earth's crust, has also been criticized for Mohole is the proposed scientific drilling $100,000 for him when he was running as a his recent contribution to the club. In both into the earth's crust, a controversial project young Congressman from Texas. And today instances, Government agencies deny fa­ that already has cost about $55 mlllion. the defense contracts they have been getting voritism. The prime contractor is Brown & Root Inc., from the Government are far greater than But it remains true that certain business­ the big Houston firm whose board chairman the piddling $19.7 million which the House men who have no natural loyalty to the is George R. Brown, a longtime friend and last week lopped off the Mohole project, most Democratic party or to the President's pro­ financial backer of Mr. Johnson. of which would go to Kaiser and National gram, among them some Goldwater Repub­ Rep. DONALD RUMSFELD, Illinois Republi­ Steel, not Brown and. Root. licans and members of the John Birch So­ can, told the House that it was a "preposter­ A week or so earlier, the same House had ciety, have joined this club. Its very ex­ ous coincidence" that the Brown family r.on­ voted a whopping big military authorization istence poses an irresistible temptation for tributed most of its money to the President's which carried around $438 million-nearly certain businessmen who are now or have in Club several days after the House first voted half a billion dollars-for military construc­ the past been in trouble with the law to against Project Mohole and shortly before tion, of which Brown and Root will get a sub­ try to buy the appearance, if not the fact, of Mr. Johnson urged Congress to resurrect it. stantial share. Furthermore, this military official influence. In mid-July, Republlcans in Congress ze­ construction money for Vietnam is un­ President Johnson has now coupled a de­ roed in on another "coincidence " this one audited and on a cost-plus basis, whereas nial that membership in the President's Club involving the President's Club and the exec­ the relatively insignificant $19.7-million Mo­ affects the award of Government contracts. utives of the Anheuser-Busch brewery firm of hole hole in the Pacific Ocean had been scrtt­ with his charge that most of the current St. Louis. tinized three times by the General Account­ criticism is just Republican electioneering. DROP BREWERY SUIT ing Office, while the Government was to get But the concern is not narrowly partisan. Republicans demanded that Congress in­ every patent developed by Mohole. Basically, it derives from respect for Mr. HOLE IN THE PACIFIC Johnson's name and office. Both are placed vestigate the dismissal of a 1962 antitrust in needless jeopardy by a political fund­ suit against the brewery shortly after some Finally, it will take $25 million to close raising operation that provides a nexus for of the brewery officials and their wives con­ down the Mohole project, remove the drills influence-seekers and carries the constant tributed $10,000 to the President's Club. and advance preparations for boring into risk of scandal. There has been no evidence that Brown & the floor of the ocean off Hawail. This site Root or Anheuser-Busch were buying busi­ had been selected because the earth's crust [From the Detroit News, Aug. 23, 1966] ness favors from the White House through ts thinner under water than on land. the President's Club. In contrast to the careful GAO audit of SUCCESS Is SPOILING THE PRESIDENT'S CLUB Nonetheless, the "bad press" resulting from Mohole, Comptroller General Elmer Staats, (By J. F. TerHorst) such incidents seems bound to make corpo­ head of GAO, complained behind closed WASHINGTON, August 23.-A publicity back­ rate executives think twice before they sign ddors of the House Subcommittee on Foreign lash appears to be cooling the businessman's up in the clubs. Almost every corporation Operations and Government Information

,') ·' 21720 CONGRESSIONAL RECORD- HOUSE September 2, 1966 that there had been virtually no audit of Krim also reported that the "advance en­ plane owned by Anheuser-Busch, Inc. The military construction in South Vietnam. rollment" of members at this week's dinner UPI also carried a statement issued by the This construction is now taking place at .. with the· President in Chicago has brought vice president's office saying that neither the rate of $1 million a day, and for the first in "more than $400,000." HUMPHREY nor anyone on his staff knew of time in the history of modern warfare the MORE TO COME any anti-trust matter involving Anheuser­ basic work has been turned over to private Busch past or present. contractors, a consortium of four companies, These fund-raising events featuring Presi­ Busch executives likewise uaed the word including Brown and Root. dent Johnson and Vice President HuMPHREY "preposterous'' to describe implications Originally the contractors were. Raymond have been so successful that they have agreed raised by this occurrence, and a Busch pub­ International and Morrison-Knudsen. But to Krim's request to take part in others. lic relations executive says: "Anybody who they were joined last year by Brown and One will be a $1 million dinner-dance thinks he can buy the Justice Department Root of Houston, and J. A. Jones of Char­ scheduled for June 11 in New York at which for a political contribution is crazy." lotte, N.C. The four companies have now the President will be the star attraction. Other parties to raise from $500,000 to $1 Which probably is true, as Congressman formed a joint organization called Vietnam GooDELL suggests; but nevertheless the chain Builders, Inc. million are being arranged in Philadelphia, Pittsburgh, Minneapolis, Des Moines and San of events is there and it seems an unfor­ PROSPEROUS UNDER GOP Francisco this summer and fall. tunate one. It also seems one that com­ If the $25,000 contribution by the Brown Sixteen unions have bought memberships mands a further inquiry and if necessary, a and Root family to the President's Club last for top officials despite labor complaints that further baring of details as to precisely how May was motivated by business, it was prob­ the Administration has failed to vigorously and why these things came about in the way ably influenced more by the Vietnam build­ support their legislative proposals. The they did. ing program than by the picayunish Mohole unions include the Steelworkers, Amalga­ project in the Pacific. mated Clothing Workers, Butchers, and (From the New York Times, May 27, 1966] However, it should be noted that Brown United Auto Workers. WASHINGTON: JOHNSON AND THE CAMPAIGN and Root also prospered under President THE BENEFITS FUNDS SCA.NDAL Eisenhower. They were given a large slice (By James Reston) of the contract to build military bases in In addition to meeting and shaking hands Spain at a cost of aTound $2 billion. The with President Johnson or Vice President WASHINGTON, May 26.-President Johnson George Brown family at that time was con­ HUMPHREY at fund-raising affairs, President's has finally acted to end, or at least to con­ tributing not to Mr. Eisenhower but to the Club members also are invited to White trol, the scandal of political fund-raising in Democrats. House events. the United States. His proposals for rais­ It was at George Brown's Virginia estate "The President's Club is still very exclusive ing, disclosing and limiting campaign con­ during the Eisenhower Administration that although it has been in existence since 1961," tributions are not complete--they do not Lyndon Johnson, then a Senator, suffered his says Clifton Carter, Democratic National deal with the major problem of free tele­ heart attack. Brown was the University of Committee executive director, in soliciting vision time, -~'or example--but they are an Texas roommate of Rep. Albert Thomas of new members. "Its members are assured of improvement over the present .system. Houston, long-time power on the House direct relationship with President Johnson." The heat was on the President. He sup­ Appropriations Committee, and much of Carter explains that in addition to being ported President Kennedy's efforts to get rid Brown and Root's ability to get Government asked to White House social functions, of the present loopholes in the law in 1961, contracts was attributed to this influential "members who want to talk to the President, but he did nothing about it until his State friendship rather than to Mr. Johnson. the Vice President, or one of their assistants, of the Union message -of 1966, and he with­ Of course the fact that the firm prospered have only to contact my office. Members will held his bill until it is now almost too late as much under the Republicans as under the immediately be put in contact with whom­ to influence the elections this coming No­ Democrats could mean that efficiency had ever they want to reach." vember. something to do with it. In his sales pitch, C:~.rter stresses that In recent weeks, however, two events have Note--If the $25,000 from Brown and Root President Johnson uses the Club's member­ brought the question of campaign funds to executives was collected in return for Gov­ ship list "to solicit advice" in making ap­ the fore. Senator THOMAs DODD, Democrat ernment contracts, both sides could be prose­ pointments and "in developing a consensus of Connecticut, has been accused of diverting cuted criminally. Under President Eisen­ on important domestic and foreign issues." political funds to his personal account, and hower, Republican officials required the the Democratic National Committee has re­ Frederick Snare Co. to contribute to the (From the Cheyenne (Wyo.) Tribune, cently been charged by the Citizen's Research Republican National Committee before it July 15, 1966] Foundation of Princeton with undue secrecy received renewal of the Government contract How ABOUT THAT, SPORTS FANS? in the handling of its political accounts. for the Nicar" plant in Cuba. This was con­ In the best traditions of that old snooper, The problem is clear enough. The best clusively proved in congressional hearings, Drew Pearson, who somehow failed to latch estimates available indicate that the cost of but the Justice Department refused to onto this one, the Republicans have come up the 1952 Presidential election was $140 mil­ prosecute. with a situation that could deeply embarrass lion, the 1956 election $155 million, the 1960 the Johnson administration this election election $175 million and the 1964 election COLUMN BY ROBERTS. ALLEN AND PAUL SCOTT year. $200 million. OF THE HALL SYNDICATE House Republican Leader GERALD FORD dis- "President Johnson did not put forward WASHINGTON, May 17, 1966.-The expen- closed Wednesday "disturbing rumors" were his suggestions for meeting this rising cost sively-exclusive President's Club is coming circulating about the dropping of anti-trust of campaigning because he and the Demo­ to the financial rescue of the debt-ridden suits against companies whose executives had cratic party had not mastered the new tech­ Democratic National Committee. made contributions to the Democratic party. niques of political fund-raising. In fact, the Given an unannounced $3 million fund- Yesterday, another Republican, Rep. President is as good at this business as any­ raising goal by the White House, the Club, CHARLES GOODELL of New York, said in a body in recent times. through its $1,000-a-year memberships, al- speech on the House floor that members of He has his President's Clubs. These are ready has banked $1.5 mill:on to pay off the the August Busch family had made con­ organized, not by accident in New York, Cali­ party's $2 million debt. tributions totaling $10,000 to the Democratic fornia, Texas, and other rich states, where Most of this money has come from three party's President's Club and that subse­ members who pay $1,000 a year get the privi­ Club dinners attended by President Johnson quently a civil anti-trust suit brought by lege of attending cocktail parties or after­ at Houston and Chicago, and Vice President the Justice Department against Anheuser­ dinner parties with the President and oc­ HUMPHREY in New York. These affairs Busch Co. was dropped. casionally receive communications from the brought the Club's dues-paying members to The Associated Press reported the $10,000 White House on the progress of the war and 1,520, more than half of the 3,000 goal per- contribution by the Busch family was made other disasters. sonally set by the President. May 24 and the action in dropping the suit THE CHICKEN CIRCUIT That's the glowing report Club president occurred on June 17. Arthur Krim, who doubles as Finance Di- The Justice Department describes the en­ He works the $100-a-plate chicken dinner rector of the Democratic National Commlttee, tire matter as "preposterous," and Congress­ circuit with more effect than anybody in the made to President Johnson at a meeting of man GoODELL himself says he has great re­ land. Three such opulent blowouts this year White House political advisers. spect for the integrity of Attorney-General in Washington, Chicago, and Houston, with Krim, wealthy New York attorney and Katzenbach and members of his staff tnclud­ the President as the principal speaker, took movie executive, stated that the Club's re- ing the head of the anti-trust division. in $2,050,000, and the Democratic party has cent dinner in Houston was attended by Nonetheless GooDELL says this sequence of also produced for these large cultural affatts, 700 members and produced around $800,000 events "raises serious ethical questions in an official program which sometimes nets for the National Committee. The extra the mind of any reasonable person." over half a million dollars in advertising, funds, he indicated, came from members ~ Meanwhlle, the UPI also reported that the most of it from companies doing business who paid $10,000 for "life memberships"-a _ assistant attorney-general in charge of the - with the Government. new feature being tried out by the Club. anti-trust division had told it he was a guest In fact, Mr. Johnson proved In the 1964 The Club dinner in New York attended by of Vice President HUBERT H. HUMPHREY in a campaign that he could reverse the normal Vice President HUMPHREY raised $186,000. flight to the All-Star baseball game in a pattern of campaign giving. The dollars tend September 2, 1966 CONGRESSIONAL RECORD- HOUSE 21721 to follow the winners now, and in the last political books put out by the Demoer~tic President's Club, which requires a mere $1,000 election, :most of the large contribution went National Committee which contained cor­ membership fee. to the Democratic party rather than to the porate ads sold a.t $15,000 a page. Many ad· Although the new club has had a success J3,epubUcans. The latest estimate is that 69 vertisers were aerospace and aircraft com· in New York and in other selected areas, it per cent of the Democratic party's individual panles with big government contracts. Js running into serious, sometimes bitter op­ contributions came in sums of $500 or over. The political llandbook underwritten by position from old-pro Democrats from other Accordingly, despite the pressure to bring corporate advertisers has been a favorite st&tes. The reason for this opposition is this system of legal blackmail under control, fund raising device of both Republicans and simply stated. The Elite Club moves the the temptation on the Aclroinistration to Democrats in state capitals around the coun­ Democratic Party's fund-raising operations perpetuate such a lucrative racket was very try and as a consequence a wall of protest has even further away from the rank-and-file great indeed. Public indifference is almost risen over the Williams amendment. With Party member than the original President's greater than public disgust and the President state governments handing out tat highway Club, which started back in 1961 under Presi­ probably could have let it ride through an­ and other construction contracts, this was a dent Kennedy. other election or so. painless method in the era of big government The proposition that big-time donors to a Instead, he bas come up with proposals spending to collect from those profiting from political party deserve some special recog­ that, if passed by the Congress, will at least the contracts. nition, such .a:s an ambassadorship to a force more accurate acounting of political For the tireless WILLIAMS thill was only small-time country, is as old as the Repub­ contributions both by the giver and the re­ a first step. He has been working with the lic. But the -new club of presidential elites ceiver, put more realistic ee11-1ngs on the size Treasury on tax proposals that would give seems to carry this political precept into new of contributions, and encourage widespread the small contributor a break. A contribu­ territory. public participation in the :financing of po­ tion of $100 would be treated. as follows. Of To the critics, the new plan gives the litical campaigns through t-ax deductions. the first $25, the taxpayer could take $17.50 Democratic Party, the traditional party of directly off the Federal tax he owed. The re­ the people, the aura of a rich man's club JOHNSON THE ~EY maining $75 would be a regular deduction more 1n keeping with the RepubU~ans than This would not be foolproof. Whatever is along with other business and charitable de­ th.e Democrats. passed in this slippery field can be evaded, ductions. In at least one state, a state that is full of but it would help the press and the people WILLIAMS would require the individual to fat-cats ambitious for White House recog­ police the politicians, limit the in:ftuence of make his contribution directly to the political nition, Party leaders have fiatly refused to large contributors, and :relieve the conscience party of his choice. This would mean that sell membership tickets to the $10,000 club, of most of the politicians. no lobbyist or favor seeker could run a whole­ even though the incentive of a guaranteed Most of the latter are now trapped ln a ·sale roundup of small contributions and get invitation from President Johnson to a system of rising costs and competitive eva­ the political reward for it. White House party would undoubtedly find sion, and most of them hate it, even when The President this spring is paying thank eager prospects. Their resistance stems also they benefit by it. you calls on President's Clubs around the from the fact that local leaders at the state, Accordingly, the President will have power­ country beginning_with Houston, Tex. With city and district levels are angry at what ful support to overcome the opposition of an assessment of $1,000 a year, the clubs have they regard as a cold shoulder from the Na­ the lobbyists and others who like things as become a major part of the Democrats' fund­ tional Committee and the White House. they are, provided he uses his infiuence on raising operation. A prime mover in Houston These local leaders, accustomed to doing the Rules Committee of the Senate and his 1s George R. Brown, of Brown and Root, one buainess with Washington without ritual or friends in the House, to get his bill to a vote. of the largest contracting firms in the country formality", find a lack of sympathy for their The sentiment in Congress, in the press, and and a long-time friend of the President. An problems here. They are particularly un­ in the public will back him if he fights for increasingly large share of the Democrats• happy at the tight control exercised with­ his reforms, but it will not prevail unless he finances has come in recent years from the in the White House, often by Presidential does. fat cats. In contrast, the Republicans are Assistant W. Marvin Watson, Jr., over the making an effort, and with some success, .to National Committee. [From the Washington Post, Apr. 29, 1966] raise money in small contributions. On top of this the sale of $10,000 tickets BELLING FAT CATS IN ELECTION YEAR The trend, if it continues, means an im­ to White House social functions is simply one portant switch in political identification. more grievance. (By Marquis Childs) The Democrats, with their populist base in The moving force behind the President's President Johnson is shortly sending to the South and West have long considered most exclusive club are Arthur B. Krim, pres­ Congress a message on "quality in govern­ themselves "the party of the people." Ancl ident of tbe United Artists and finance direc­ ment" that is expected to include proposals they have looked with scorn on the GOP as tor of the National Committee, and the for reforms in financing political campaigns. "'the party of the rich." Certainly, in the President himself. This comes not a moment too soon in the past, the Republicans got the lion's share of Krim was prevailed on by tlle President view of members of Congress long sensitive the big money from the very rich. to become the Party's chief fund-raiser only to public reaction in this field. They are As costs go up, with television time ab­ after several weekend visits to the LBJ aware of a growing cynicism and disillusion. sorbing millions of dollars in a national cam­ Ranch in Johnson City, Tex. Confronted Recent disclosures, notably the way in which paign, the question of who pays what and with a massive, long-concealed Party deficit Senator THOli!AS J. DODD, a Connecticut why is one touching every taxpayer. Lob­ (still close to $2 million) , and under orders Democrat, tapped lobbyists, favor seekers byists and favor seekers dQ not spend their to raise a campaign fund, Krim decided that and job holders for at least $100.000 which political dollars out of noble disinterested­ the Party's poor financial position justified went into his private pocket, cannot be ness. They expect to get their money back tbe new club. He was :;trongly encouraged shrugged off. Reform must come now, it is many times over. By common agreement, by the President. Finally, most of the Party's being widely said on Capitol Hill. the present corrupt Practices Act is a farce. desperate efforts to raise money in the tradi­ The President made a 'brave beginning in It is no barrier at all to the big spender who tional way-by small contributions from llis State of the Union message in January. wants something out of government, whether many Democrats-have been Qismal fail­ In the first ofilcial interest he has shown in it is an ambassadorship or a defense {)On­ ures. In desperation, Krim has turned to tne the subject since he assumed the Presidency, tract. fat-cats. he proposed closing the loopholes allowing Privately, Krim has said that the original big money contributors to violate the Cor­ [From the Washington Post, June 9, 1966] President's Club, limited to $1,000 con­ rupt Practices Act almost at will. This was LBJ'SELITE tributors, was a sound money-raising device. coupled with tax incentives which, in the (By Rowland Evans and Robert Novak) In the Washington of the 1960s, he has said, Prestdent"s words, would "lJlake it possible ~1,000 can't buy much o! anything, including for those without personal wealth to enter President Johnson's daring anu con­ political ~avors. Presumably, he feels tl~e public life without being obligated to a few troversial fund-raising gimmick for the same complacency about contributions ten large contributors." A proposed bill-embody­ 1966 congressional campaign, hitherto undis­ times that large. ing these changes is being circulated on Cap­ closed, offers Democratic Party contributor.s The Hatch Act limits a single political con­ itol Hill. the right to buy a gilt-edged invitation to a tribution to $5,000, but there are several ways But the congressional elections will shortly formal White House party. for members of the new club to evade that be upon us, and unless the White House The price is $10,000 each. It may seem restriction. The quick success of the plan in moves soon to take advantage of the spur high, but already an estimated 100 con­ New York indicates that it won't slow down provided by the Dodd disclosures it will be tributors, most of them in New Yorlt City, because of resistance by local professionals. too late for this year. In the meantime, the have glady paid it. Having discovered the value of an invita­ initiative ls being seized by others. So secret is the new group of $10,000 con­ tion to a White House party, the ticket-sellers Senator JoHN J. WILLlAMS, a Republican tributors, unofficially known as the "Elite won't stop now, no matte!' hQW much the from Delaware, succeeded in getting attached President's Club,'~ that sollle high o:l!icials in scheme seems to confUet with President to the tax bill his amendment prohibiting the Democratic National Committee have Johnson's formal plan, sent to Congress last corporations from d~ucting advertising in never .heard of it. The "Elite . President's month, to provide tax deductions for politi­ political campaign books as a business ex­ Club" is a spectacular Jump in size of con­ cal contributions up ·to $100. That plan is pense. This amendment was inspired. by the tribution and prestige from the old, non-elite supposed to encourage small-time giving. 21722 CONGRESSIONAL RECORD- HOUSE -September 2, 1966 [From the Washington Post, June 14, 1966] He also did two other things: "THE BUCK STOPS HERE" 1. He killed a purely non-political project, NEW FuND-RAISING IDEAS Mr. DEL CLAWSON. Mr. Speaker, I (By Art Buchwald) sponsored by the National Science Founda~ tion, the reverse of the much more expensive ask unanimous consent that the gentle­ The White House has strongly denied it, and more spectacular project to explore the man from Michigan [Mr. GERALD R. but it has been rumored that if you con~ moon, to find out ahead of the Russians FoRD] may extend his remarks at this tribute $10,000 to the Democratic Party for what is the temperature of the earth below point in the RECORD and include ex­ the upcoming congressional elections, you the surface, what causes earthquakes and traneous matter. ·will be assured of a gilt-edged invitation to volcanos. a formal White House party attended by the 2. He illustrated the importance of passing The SPEAKER. Is there objection President and Mrs. Johnson. a clean elections bill to regulate more care­ to the request of the gentleman from For $10,000,· a contributor is made a mem­ fully big contributions such as this. The California? ber of the "Elite President's Club" as opposed clean elections bill proposed by President There was no objection. to the ordinary "President's Club" which Johnson is now stymied in the Senate by Mr. GERALD R. FORD. Mr. Speaker, caters to the run-of-the-mill $1,000 contribu­ Sen. HOWARD CANNON (D-Nev.). tors. It is believed that there are at least But the other half of the political story I include herewith a press release from 100 members of the Elite President's Club which RUMSFELD, a good Republican, missed the Republican leadership: already signed up, with many more holding is that Brown and Root have been financing STATEMENT BY REPRESENTATIVE FORD the checkbooks in the wings. Lyndon Johnson for years, put up around Former President Truman had for several I'm for anything that puts funds into the $100,000 for him when he was running as a years on his desk a motto which read: "The Democratic Party coffers, and I've been giv­ young Congressman from Texas. And today buck stops here!" In this Johnson Admin­ ing great thought as to how more money the defense contracts they have been getting istration that motto appears to have been could be raised. from the government are far greater than changed to : "Slip, slide and duck the buck!" Using the guaranteed invitation to the the piddling $19,700,000 which the House last White House as a starting point, I have made As the recent airline strike continued, the week lopped off the Mohole project, most of President passed the buck to the Congress. up a rate card for different things a loyal which would go to Kaiser and National Steel, Democratic Party giver would be entitled to As labor increases its demands, the Presi­ not Brown and Root. dent passes the buck in silence. if he were willing to put up the con­ A week or so earlier, the same House had As industry raises its price, the President tributions. voted a whopping big military authorization For example, if a person was willing to give passes the buck to the consumer. which carried around $438 million-nearly As the cost of food continues to skyrocket $15,000, he would not only be invited to the half a billion dollars-for m111tary construc­ White House for dinner, but his wife would in the market, the President passes the buck tion, of which Brown and Root will get a to the housewife. bE' guaranteed a dance with Press Secretary substantial share. Furthermore this m111- Bill Moyers. As interest rates reach all-time highs and tary construction money for Vietnam is un­ home mortgage money becomes almost im­ For $20,000 the contributor would get to audited ancl on a cost-plus basis, whereas sit at the same table as Vice President possible to obtain, the President passes the the relatively insignificant'$19,700,000 Mohole buck to those millions of our people of HUBERT HUMPHREY, and for $25,000 the Vice hole in the Pacific Ocean had been scrutl~ President would agree not to talk. modest means, both younger and older, who nized three times by the General Accounting have hoped for years to have a home of their For $30,000 the person would not only have omce, and the government was to get every dinner at the White House, but he would be own. patent developed by Mohole. As too long a mistaken reliance on mone­ permitted to attend a Cabinet meeting. Finally, it will take $25 million to clooe If you coughed up $35,000, you could ask tary policy alone falls in the slightest to halt down the Mohole project, remove the drills inflation, the President passes the buck to a question at a televised Presidential news and advance preparations for boring into conference. us all. For it is the American people, each the fioor of the ocean off Hawaii. This site and all of us, who continue to suffer increas­ Anyone who gave $40,000 could go to a had been selected because the earth's crust movie with Lynda Bird and George Hamilton. ingly from this buck-passing fever of the is thinner under water than on land. The Johnson administration. For $45,000 you would be guaranteed a seat two thinnest places are off Cuba and off in the church at Luci's wedding. Inftation-a dollar declining in value--the Hawaii. The Pacific was chosen because it cost of living in orbit-call it what you wm, A $50,000 contributor would be given his is less turbulent than Atlantic waters off choice of a weekend at Camp David with the in simplest terms it means that the American the coast of Cuba. wage-earner, the American taxpayer, is being Johnsons or a week at the LBJ ranch. For In contrast to the careful GAO audit of $55,000 he wouldn't have to ride a horse. cruelly misled and badly hurt. Mohole, Comptroller General Elmer Staats, This administration appears totally help­ The $60,000 fat cat would be allowed to head of GAO, complained behind the closed sign a congressional bill at a White House less, and even worse, hopeless, in its futile doors of the House Suooommittee on Foreign threshing-about for solutions. When our Rose Garden ceremony, and for $75,000 he Operations and Government Information could be present when the President was people are given no help--worse yet, when that there had been virtually no audit of mil­ they are given no hope--it is time for a dras­ chewing out Sen. FuLBRIGHT. itary construction in South Vietnam. There wm be very few people contributing tic change. This construction is now taking place at We repeat--and we shall continue to re­ $100,000 or more, but they would have to be the rate of $1 mlllion a day, and for the accommodated. peat it until action results-we repeat that first tiine in the history of modern warfare the solution to onrushing inflation is at For $100,000 you could get to swear in a the basic work has been turned over to pri­ United States Supreme Court Justice. hand-a solution instantly available to this vate contractors, a consortium of four com­ administration and its top-heavy majority For $150,000 you would be permitted to panies, including Brown and Root. in this Democratic Congress. That solu­ alert all SAC bombers, and for $200,000 you Originally the contractors were Raymond tion: a drastic cut in nonessential Federal could call out the National Guard an~ International and Morrlson-Kundsen. But spending. It is these billions of nonessential reserves. they were joined last year by Brown and Federal funds that are being poured into the If anyone wanted to give $250,000 he would Root of Houston, and J. A. Jones of _Charlotte, economy that represent the principal cause be guaranteed that Mrs. Johnson would plant N.C. The four companies have now formed of infiation, the principal reason for today's a rose garden in his back yard. a joint organization called Vietnam Build­ high living costs for every family. For $300,000 you can run for Congress ers, Inc. The President has asked housewives to yourself. They have been entrusted with building buy cheaper cuts of meat. He has suggested Unfortunately, the Republicans, being out more than 10,_000 pre-fab buildings, hospitals that wage and price guideposts-which he of office, have nothing to compete with the warehouses and oil depots calculated to last himself has torpedoed-be observed. He has Democrats when it comes to raising money. 50 years, plus air strips better than those requested Government agencies to econo­ All +.hey could offer a $10,000 contributor serving most American cities. At Cam Ranh mize. He has supported none of these things would be either a chance to attend a Richard Bay, the docks, warehouses and two air strips with any vigor at all. There has been no Nixon news conference or to take a ride have made it the finest sea and airport in evidence that he means it. through Death Valley with Ronald Reagan. all Asia. On the contrary he points with peculiar This extensive bu:Iding program is one pride to a wartime economy that inevitably (From the Los Angeles Times, Aug. 26, 1966] reason North Vietnam refuses to come to the produces high employment. peace table. Its leaders argue that the MOHOLE CUTOFF SHOWS NEED OF ELECTION With nearly 3,100,000 men in uniform not United States plans to remain in Vietnam LAw now employable in civilian life--in the face indefinitely, regardless of peace. of the known fact that at least three men are (By Drew Pearson) If the $25,000 contribution by the Brown needed in the labor force at home to provide When Rep. DONALD RUMSFELD (R-Ill.) and Root family to the President's Club last for each man in uniform-we suggest that killed the Mohole project because $25,000 May was motivated by business, it was prob­ the President's boasting has a very hollow was given to the President's Club by mem~ ably influenced more by the Vietnam build­ ring. bers of the Brown and Root contracting firm, ing program than by the picayunish Mohole We believe that the time has come for the he missed half the political story. project in the Pacific. President of the United States to stop pass- September ·2, 1966 'CONGRESSIONAL RECORD--HOUSE 21723 1ng the buck with the responsibilities that President and his Democratic congressional Griffin Act in 1959 to guarantee addi­ are his-his responsibilities to labor, to man­ majorities have the power so to serve this Na­ tional rights for individual union mem­ agement, to the consumer, to the taxpayer, tion. We cannot help but wonder why they to all the Amel'ican people. He ca.n bring have been unwilling to do so. bers. about a drastic cut in nonessential Federal Therefore, our question-of-the-week? Mr. As we observe Labor Day this year, let ·expenditures through his huge Democratic President, when will you Democrat~J stop th.e workingman be assured that Repub­ majorities in the Congress, 1i he is willing passing the buck? licans tn Congress mean to see that he to do so-if he has the courage to do so. shares equitably in the fruits of his own Therefore, our question-of-the-week: Mr. ·labors. The goal of all America shouJ.d President. when wUl you Democrats stop TRIBUTE TO AMERICAN WORKER be that its w.orkers live their lives in passing the buck? Mr. DEL CLAWSON. Mr. Speaker, I dignity, accorded their full share of STATEMENT BY SENATOR DIRKSEN ask unanimous consent that the gentle­ America's abundance. President Johnson tells us that what man from Michigan [Mr. GERALD RA America needs is "a strong dose of self­ FoRD] may extend his remarks at this SALUTE TO LABOR discipline." To which we can only reply: point in the RECORD and include ex­ "Physician, heal thyself." traneous matter. Mr. DEL CLAWSON. Mr. Speaker, I To a.sk self-discipline of labor, to ask self­ The SPEAKER. Is there objection ask unanimous consent that the gentle­ discipline of management, to ask self-disci­ to the request of the gentleman from man from California [Mr. BoB Wn,sON] pline o:t Congress, to ask self-discipline of the California? · may extend his remarks at this point consumer, is pious and pointless=-until the President asks it of his adJilinistration and There was no objection. in the REcORD and include extraneous his heavy Democratic majorities in the Con­ Mr. GERALD R.FORD. Mr. Speaker, matter. gress. We are, in short, not impressed. on Monday we will pay tribute to the The SPEAKER. Is there objection We are not impressed by timid surrender American worker. We will honor him to the request of the gentleman from to labor unions. We are not impressed by for the tremendous contribution he has California? fearful deference to management. We are made to America, the building of this There was no objection. not impressed by guideposts for wages and great land of ours, the fruits of his labor Mr. BOB WILSON. Mr. Speaker, on prices that are anything but. We are not .which have made life rich in this Nation the start of this Labor Day weekend, I impressed by his requests for those reduc­ for all Americans. join my colleagues in saluting the mil­ tions in appropriations by Congress-such as school milk and school lunch programs-that It is most appropriate that Labor Day lions of laboring men and women who are the President knows cannot be made. We should be a national holiday, for in the honored on this day. are not impressed by the intriguing friction words of the man who originated the The Republican Party has never ap­ of Mr. McNamara's new math, which claims observance, Carpenters' Union founder pealed to special interests or groups but a doubtful savings of billions. We are not and American Federation of Labor co­ serves all the people, including business­ impressed by anything, in short, but a clear founder Peter McGuire, it honors "those men and laborers, farmers, and con­ and courageous demonstration on the part who from rude nature have delved and sumers, professional and young people. of the Johnson-Humphrey administration carved all the grandeur we know." that it has the will and the courage to put To our youth we owe the greatest obli­ the brakes on inflation-to stop the sky­ We must be ever mindful of the con­ gation of all-to hand on to them a free rocketing cost of living-by the powerful tribution the American worker makes country, a free people, and a free econ­ means it has readily at hand: the drastic, to the Nation-not just on this Labor omy. ·sweeping reduction of non-essential Federal Day but throughout the year. Nobody None has a greater stake in freedom spending. who has not earned his daily bread by the than the men who provide skill and those We have said before and we repeat, that sweat of his brow can know what it ·who possess the enterprise on which we Republicans in Congress and across the means to work in a papermill, an auto­ have created the most properous and country have for months urged such reduc­ mobile factory, an iron, copper, or coal tions and have shown clearly where they productive society in all history. could be made. mine, to toil at one of the inany Jobs that The Republican Party stands, as it When the Congress was given the Johnson­ make the wheels · of industry turn in always has, for sound money. A -<:ur­ Humphrey budget for 1967, the Republican America. rency changing in value hampers indus­ leadership and the Republican membership Although the leaders of org.anized try and trade and makes impossible a of the House and Senate Appropriations -labor have chosen in most instances to sound basis of operations, whether in­ Committees identified, item by item, those support the Democratic Party, rank­ dustrial or personal. programs where non-essential spending and-file workers know that Republicans The Republican Party has the know­ could be cut by hundreds of millions of dol­ have championed many of their causes. lars-and this without depriving our fight­ how to lead the American people out of ing forces of a single thing they need! It was Republicans who established the present mess and to prevent the im­ The President and his Democratic ma­ the first 8-hour day for Government position of bureaucratic wage and price jorities in Congress have refused to make workers in 1868, setting a pattern for in­ controls after this November's elections. such savings, despite repeated and valiant dustry. It was Republicans who estab­ With the support of all those who be­ Republican efforts to achieve them. Even lished the first U.S. Bureau of Labor in lieve in freedom and its rich material now, at this point in the appropriations cal­ 1884 and ·created the Cabinet-level De­ byproducts, I look forward to dramatic endar, it is still possible to effect a savings­ partment of Labor in 1913. in nonessential spending-of hundreds of Republican gains on election day and to millions of dollars if the President and his RepubHcans in their 1898 platform en­ a renewal of dynamic Republican leader­ Congressional majorities really want to fight dorsed the right of workers to join a ship at Was}:lington and on the level of inflation. union and to bargain collectively, The State and local government. These, let me emphasize, represent savings same year a Republican Congress passed in things that we can do without-just a.s the Erdman Act to assist in settling rail­ the housewife is asked to do without, just road disputes and to prohibit firing for FUNDS FOR BEAUTIFICATION ·as the wage-earner is asked to do without, union membership. PROGRAM ELIMINATED just as the would-be homeowner is asked In 1926 a Hepublican Congress enacted to do without-just as American fighting the Railway Labor Act, still a model for Mr. DEL CLAWSON. Mr. Speaker, I men are being asked to do without the priv­ ask unanimous consent that the gentle­ ileges of peace in the fright~ul jungles of effective and fair settlement of labor­ management problems, outlawed so­ man from California [Mr. BoB WILSON] Asia. may extend his remarks at this point We cannot have both guns and butter. called yellow dog contracts under the We cannot fight a war in Asia and win the Norris-LaGuardia Act, and banned the in the RECORD and include extraneous war on inflation at home unless this Govern­ ·issuance of indiscriminate injunctions matter. ment of ours, this administration, is equ~lly against strikers. The SPEAKER. Is there objection willing to do without and to stop its willful, Republicans joined in passage of the to the request of the gentleman from reckless spending of the people's money on Bacon-Davis Act in 1913, assuring pre­ California? nonessential things. There was no objection. I am in total and enthusiastic agreement vailing wages for workers in Government with JERRY FoRD that the only effective means projects. '!'hey pushed through the ·Mr. BOB WILSON. Mr. Speaker, available to fight inflation, to stem the high Taft-Hartley Act in 1947 to give new both Democrats and Republicans have cost of living, is to cut nonessential Federal rights to rank-and-file workers. They been receiving a heavy volume of mail spending-drastically and to do it now. The fought for passage of the Landrum- calling for elimination of nonessential 21724 CONGRESSIONAL RECORD- HOUSE September -2, 1966 Federal spending by the Federal Govern­ willing to risk new endeavors, lest they basic steel ingots, covered by the Adams­ ment during the war in Vietnam. · in some way upset their profit balance. Dirlam analysis: · As a result, something interesting and The giant corporation knows it can buy Continuous hot strip rolling and continu­ perhaps important happened this week its way into new technology and can off­ ous casting-the first was the result of the which the news media, usually so alert, set its own inefficiencies by merging into ideas of a new-comer to the industry and was seem to have missed. With two-thirds its organization smaller, but more effi­ developed by one of the smaller American cient companies. steel firms, and the second largely the work of the Members present and only one of a German individual inventor. Much of vote recorded against it, the House ap­ These are generalizations, I know. the pioneering work in connection with the proved a report of the Senate and House However, they are supported by the facts use of taconite ores was done by an individ­ conferees on the Interior appropriation of industrial experience. An important ual outside the industry. And, among -the which completely eliminated funds for case in point is the steel industry. An American steel companies, the largest, the Lady Bird Johnson's beautification pro­ extremely revealing study of technologi­ United States Steel Corp., has frequently gram. Involved was $483 million-al­ cal innovation in the steel industry has been described as a follower and not a most half a billion. been made by Profs. Walter Adams and leader. Since most of the Members naturally Joel B. Dirlam. Entitled "Big Steel, In­ Third. The highly concentrated auto­ are for beautification of our country, it vention and Innovation," the study ap­ mobile industry "benefited enormously was a dramatic way for the Chamber of pears in the May 1966 issue of the Quar­ from ideas which have come to it from Congress closest to the people to show terly Journal of Economics, and I ap­ outside, either from other industries or the White House how Americans feel pend it at the end of my remarks. from individual inventors. This is es­ about nonessential spending, however de­ Specifically, Adams and Dirlam have pecially true of automatic transmissions sirable,.in this wartime economy. studied the development of the oxygen and of power steering-beyond that, steelmaking process, now recognized uni­ much has been contributed, as for ex­ versally as the major technological ample in new systems of suspension, by SMALLER FffiMS LEADERS IN breakthrough in steelmaking of the 20th smaller motor-car firms on the continent century. of Europe and by small manufacturers NEW TECHNOLOGICAL BREAK­ They find that- THROUGHS IN STEEL INDUSTRY of accessories and equipment every­ First. The invention was neither spon­ where." Mr. PATMAN. Mr. Speaker, I ask sored nor supported by large, dominant unanimous consent to extend my re­ firms. Fourth: marks at this point and include ex­ Second. It was a small firm that first Other instances can be picked out where oligopoly and rapid technical progress have traneous matter. innovated the new process in the United not gone together. Although the British Ox­ The SPEAKER. Is there objection States, and it was other small firms that ygen Co. Ltd. has for long had a wholly domi­ to the request of the gentleman from followed its lead. nating position in the British market for Texas? Third. Had the dominant steel firms oxygen, it was not the originator of the There was no objection. seized the initiative, and carried out a important innovations in methods of pro­ Mr. PATMAN. Mr. Speaker, one of genuine modernization program in the duction and distribution. the most crucial questions of our time 1950's, their earnings would have been Fifth: substantially higher and their deprecia­ is the extent to which America is adopt­ A recent study of the consequences of the ing new technologies. If we are to have tion and replacement requirements ap­ monopoly possessed by the United Shoe Ma­ a progressive America, new technological preciably lower-due to much lower op­ chinery Corp. reveals that important innova­ breakthroughs are absolutely essential. erating costs per ton of ingot capacity tions arose outside that firm and suggests We must promote and expand our auto­ and lower depreciation and replacement that competitive conditions might have pro­ mation techniques if we are to main­ costs on a lower investment base. duced the s.ame rate of technical progress. tain our status of world leadership. Fourth. The oxygen converter history Sixth: However, our superiority in the field of reveals that the steel oligopoly failed to compete in strategic innovations, dis­ The linoleum industry is, both in the technology will not be maintained if we United States and Great Britain, one of the do not constantly look within to see proving the assumption of some that if most highly concentrated, but the funda­ where we will find the sources of inno­ homogeneous oligopoiies do not compete mental principles of manufacture are still vation. The Joint Economic Committee, in price, their leading members compete those invented by Frederick Walton in 1860. of which I am chairman, has pioneered in innovating-and that the public thereby benefits as much as, if not more This may explain why linoleum is in the study of automation. For more losing out to vinyl floor coverings. than a decade we have been making than, it would by price competition. studies and inquiries into the economic Other scholars have cast doubt on the Seventh: effects of changing industrial technol­ proposition that monopoly or oligopoly­ In the agricultural machinery industry at that is big business and concentration least two important advances, the cotton ogy and its implications for our society. picker and the use of the hydraulic lift, origi­ Last week our Subcommttee on Economic are necessary to bring technological nated with individual inventors. Progress issued a new report on automa­ progress. Among the leading studies in tion and technology in education. This this field is that produced by John Jewkes and his associates conclude: report reveals many new technologies Jewkes, professor of economic organiza­ Indeed a general glance at the most con­ that may well revolutionize our system tion at Oxford University, and his col­ centrated industries in the United States and of education. leagues. In the book, "The Sources of Great Britaln reveals that they do not consist In the field of industrial technology Invention," the experience of a number exclusively of industries regarded, by com­ it is extremely important that we be of industries is examined, and, to pick mon reputation, as being technically the aware of the sources of innovation. Too some outstanding examples, it was found most dynamic. often, I fear, we are lulled into a sense that- Briefly, then, there is no basis for the of false security because we· are such a First. In the U.S. aluminum indus­ contention that monopoly is essenti&.l for large country with such huge resources. try--one of the nearest approaches to technological progress. Indeed the evi­ complete monopoly prior to World War II Sometimes it is assumed that because we dence runs the other way. Moreover, if have the biggest business concerns in the and still a highly concentrated oligo­ we permit growing concentration, par­ world we are bound to be first with new poly--of the three outstanding dis­ technological developments. But this is coveries up to 1937-the use of heat ticularly through merger, we are in not necessarily the case. Indeed, on the. treatment and ageing for giving strength danger of drying up important centers contrary, much too often we find in to certain alloys, the introduction of the of technological advance. actual industrial experience that it is silicon alloys and the perfection of meth­ The article follows: not the biggest concerns that are the ods of coating strong alloys with pure (From the Quarterly Journal of Economics, most progressive, or indeed the most ef­ aluminum-the first two were the work May 1966] ficient. Many of our giant corporations of men outside the aluminum industry. BIG STEEL, INVENTION, AND INNOVATION have grown beyond what the economists Second. In the steel industry, of the (By Walter Adams and Joel B. Diriam) refer to as the optimum point, and have two spectacular inventions in the subse­ (Introduction: the "Schumpeterian" hy- become bureaucracies, sluggish and un- quent processes-that is, other than pothesis, 167.-I. Oxygen steelmaking: the September 2, 1966 CONGRESSIONAL RECORD -HOUSE 21725 history of its invention and innovation, This hypothesis ha~ not remained unch_al­ States. Nevertheless, Mr. Adams' 1959 pro­ 169.-11. Some cost and profit iiri.P.lications lenged.7 Moreover, there has been a recent nouncement came some ten years after the of innovative lethargy, 184--III. Conclusion, flurry of empir~ool studies, replete with re­ potentials of the new process should have 188.) gression analyses, designed to test the rela­ been a matter of course to every steelman The view attributed to Schumpeter, that tionship between concentration and i~no­ in the United States. large firms with substantial market power vation.8 Unfortunately, these studies have Despite its revolutionary character, the have both greater incentives and more ample yielded inconclusive results.9 Therefore, an basic oxygen process employs a relatively resources for research and innovation, has unhurried exploration, in some depth, of simple principle. It refines pig iron into become part of popular mythology and an a single, revolutionary invention and its in­ steel by jetting oxygen vertically downward article of faith among many economists as troduction into a major oligopolized industry into a molten bath of pig iron. The conver­ well. Ostensibly, Schumpeter felt "that may provide some rewarding insights. sion is accomplished in a pear-shaped vessel firms had to be protected by some degree of For testing the "Schumpeterian" hypoth­ that looks something like a cocktail shaker monopoly-to have some room to maneu­ esisis, we have selected the oxygen steel­ or water carafe-bellied at its central por­ ver ..." in order to bring about massive making process-the circumstances sur­ tion and having a restricted mouth. Not innovations. Presumably, he implied "that rounding its invention, its delayed adoption only does it produce top-grade, "open­ more concentration would increase innova­ by the dominant firms in the United States hearth" quality steels more quickly and tion and progress." 1 steel industry, and the cost of this delay in efficiently then older methods, but it entails Though Schumpeter never stated it with­ terms of the industry's social performance. lower investment (as well n.s operation) costs. out careful qualification,2 this idea has been I Finally, and ironically, the process was fore­ widely used to explain why some industries, "In my opinion," Avery C. Adams, chair­ seen by Sir Henry Bessemer almost a cen­ tury ago. like textiles, are "backward," and others, like man of the board and president of Jones & petroleum, are not. Galbraith, for example, Laughlin, told his stockholders in 1959, "the History of the invention argues that "a benign Providence ... has basic oxygen process represents the only Bessemer ushered in the steel age with his made the modern industry of a few large major technological breakthrough at the in­ principle of pneumatic conversion, patented firms an almost perfect instrument for in­ got level in the steel industry since before the in 1855.10 This consisted of passing a "gase­ ducing technical change. It is admirably turn of the century. · With the exception of ous fluid containing oxygen" through molten equipped for financing technical develop­ what we in the industry call trick heats, i.e., pig iron. The Bessemer converter, equipped ment. Its organization provides strong in­ one heat made under ideal conditions, the with an acid refractory lining, was charged centives for undertaking development and best open-hearth practice today results in a with molten pig iron through a top opening. for putting it into use. The competition production rate of 39 to 40 tons per hour. Atmospheric air would then be forced of the competitive model, by contrast, almost Our basic oxygen furnaces have produced through a number of pipes (tuyeres) in the completely precludes technical develop­ at the rate of 106 tons per hour to date bottom of the converter and forced upward ment." a In a whimsical vein he adds that this month. On a trick heat basis, we have through the bath of molten metal. No ex­ "The foreign visitor, brought to the united hit 160 tons per_hour." By 1965 this opinion traneous source of fuel was necessary, be­ States to study American production meth­ had become virtually unanimous in the in­ cause the oxygen in the air blast reacted ods and associated marvels, visits the same dustry. Indeed, most steel experts were exothermically with the impurities in the firms as do the attorneys of the Department willing to predict that no new open-hearths iron which were burned off as a gas or carried of Justice in their search for monopoly."~ would ever again be built in the United off into the slag. Similarly, Lilienthal argues that firms that This, the so-called "acid" Bessemer process, are small and competitive do not have the 7 could be used only to refine low-phosphorus profits to finance research: "Only large en­ John Jewkes, David Sawers, and Richard Stillerman, The Sources of Invention (Lon­ ores but was not adapted to refining .the im­ terprises are able to sink the formidable mense deposits of high-phosphorus ores in sums of money required to develop basic don: Macmillan, 1958). Jacob Schmookler, "Bigness, Fewness, and Research," Journal of Lorraine and Sweden. With a view to ucing new departures." G Villard points out that these phosphoric ores, S. G. Thomas invented the financing of research is less strategic Political Economy, LXVII (Dec. 19·59), 628-35. And esp. Daniel Hamberg, "Size of Firm, and patented in 1876 a process which differed than the assurance that, after an innova­ from Bessemer's principally in the use of .a tion is introduced, the firm will have a suf­ Monopoly, and Economic Growth," Employ­ ment, Growth, and Price Levels, Part 7, Hear­ basic converter lining (dolomite bound with ficient share of the market to recoup its ings before the Joint Economic Committee, tar) instead of the acid lining employed by outlays. And, he holds, only oligopolists in 86th Congress, 1st Session, 1959, pp. 2337-53; Bessemer. It was this Thomas converter (or fact can enjoy such assurance.e "Invention in the Industrial Research Labo­ basic Bessemer process, as it was known in ratory," Journal of Political Economy, the United States) on which the great de­ 1 Richard Caves, American Industry: Struc­ LXXI (April 1963), 95-115; and "Size of Firm, velopment of steelmaking in Europe was ture, Conduct, Performance (New York: Oligopoly, and Research: The Evidence," based. The Thomas process was uniquely Prentice Hall, 1964), p. 98. Canadian Journal of Economics and Political adapted to the use of Europe's large phos­ 2 Schumpeter qualified his hypothesis more Science, XXX (Feb. 1964), 62-75. phoric ore deposits. carefully than did his disciples. To be sure, s Edwin A. Mansfield, for example, has con­ Bessemer recognized that the air blast he argued that ". . . largest-scale plans ducted some highly useful statistical research used in his process posed a major problem. could in many cases not materialize at all if into the relation between size of firm and Since air is composed of 80 per cent nitro­ it were not known from the outset that com­ both the importance and adoption speed of gen and 20 per cent oxygen; since nitrogen petition will be discouraged by heavy capital innovations. ("Size of Firm, Market Struc­ is bad for steel (making it brittle and less requirements or lack of experie~ce, or that ture and Innovation," Journal of Political malleable) ; and since there was no way of means are available to discourage or check­ Economy, LXXI (Dec. 1963), 556-76, and preventing the injection of nitrogen into the mate it so as to gain the ti~e and space for "The Speed of Response of Firms to New Bessemer steels through the use of atmo­ further developments ..."; but he also ob­ Techniques," this Journal LXXVII (May spheric air, Bessemer stated as early as 1856: served that "it is certainly as conceivable that 1963), 290-311. His conclusions, however, as "And here I would observe, that although I an all-pervading cartel system might sabo­ he would be the first to concede, do not per­ have mentioned air and steam because they tage all progress as it is that it might realize, mit assured generalizations with regard to contain, or are capable of evolving, oxygen at with smaller social and private costs, all that the the central hypothesis. For instance, he a cheap rate, it will nevertheles be under­ perfect competition is supposed to realize." found some evidence that the length of time stood that pure oxygen gas or a mixture Capitalism, Socialism, and Democracy (New a firm waits before using a new technique thereof with air or steam may be used." u York: Harper, 1942), pp. 89, 91. For a bal­ tends to be inversely related to the size of the Indeed, Bessemer not only entertained the anced restatement of the Schumpeter hy­ innovator ("The Speed of Response of Firms possibility of using "pure oxygen gas" in the pothesis, see Edward S. Mason, Economic to New Techniques," op. cit.). On the other converter, but also of introducing it through Concentration and the Monopoly Problem hand, the steel industry remains an unex­ the top instead of the bottom of the vessel. (Cambridge: Harvard University Press, 1957), plained exception to his conclusion that the In spite of Bessemer's insights, early at­ pp. 91-101, and Jesse W. Markham, "Market larger firms were more likely to innovate tempts to apply his teachings failed. Two Structure, Business Conduct, and Innova­ than the smaller. ("Size of Firm, Market major problems bedeviled steel technology: tion," American Economic Review, Papers and Structure and Innovation, op. cit.). As we ( 1) pure oxygen was not available in com­ Proceedings, LV (May 1965), 323-32. see it, the major weakness of the Mansfield mercial quantities and was prohibitively ex­ 3 John K. Galbraith, American Capitalism approach is that it drowns in aggregate gen­ pensive; (2) an increase ir. the oxygen con­ (Rev. ed.; Boston: Houghton Mi1Hin, 1956), eralization what must be qualitatively evalu­ tent of the air-blast used by Bessemer would p. 86. ated in a careful case-by-case analysis. reduce the nitrogen content of the refined • Ibid., p. 91. 0 After a comprehensive review of the re­ 5 David E. Lilienthal, Big Business: A New cent literature, Jesse Markham concludes steel, but would also cause serious dama~e to Era (New York: Harper, 1953), p ·. 69. that "The ditHculty with such regression the converter's tuyeres and refractory lining. 0 Henry H. Villard, "Competition, Oligopoly, analyses as these is not so much their statis­ and Research," Journal of Political· Economy, tical as their conceptual inconclusiveness." 1o ·British Patent No. 2768 of 1855. LXVI (Dec. 1958), 483. (Op. cit., p. 331). 1l British Patent No. 1292 of 1856. 21726 CONGRESSIONAL . RECORD -HOUSE September 2, 1966 · European steelmakers using the Thomas con­ ·i.e., to use oxygen in side-blown converters, nated since the reaction between oxygen and verter faced the additional problem of pro­ encountered similar difficulties.u Here the iron . • . takes place in the center of the ducing steels with an excessive phosphorus oxygen jet directed at the melt surface caused steel bath and therefore the walls of the content and hence inferior quality. excessively high temperatures on the side of vessel are not substantially attacked." In view of these problems, it is not sur­ the vessel facing the oxygen inlet and result­ In Belgian Patent No. 468,316-applied for prising that the basic open-hearth furnace, ed in serious damage to the refractory lining. on October 4, 1946, granted on November 30, the so-called Siemens-Martin process, was al­ Still other attempts, i.e., to use lower con­ 1946, and opened for public inspection on most an immediate success after its intro­ centration of oxygen or oxygen-steam combi­ March 1, 1947-John Miles offered some re­ duction in 1880. While slower and more ex­ nation 1s-in order to conserve the refractory finements on the art taught by Schwartz. pensive than pneumatic methods of steel­ bottom or the sidewalls of the converter­ He, too, worked with a top-blown converter making-requiring about eight hours for a suffered from the inherent liab111ties of the and emphasized the importance of keeping batch of steel as compared with one hour in conventional Bessemer method: an excessive the source of the chemical oxidation reac­ a Bessemer converter-the open-hearth had nitrogen content of the refined steel and tions within the bath "at a good distance two signal advantages. It produced Rteel failure to take full advantage of the exo­ from the refractory lining of the furnace." almost free of nitrogen, and hence of far thermic role of oxygen as a converter fuel. Finally, Robert Durrer, a Swiss professor greater quality in terms of malleability, and The final breakthrough in the development who had begun his experimentations at the it could use a relatively high percentage of of the oxygen process was based on the work Institut fur Eisenhti.ttenkunde of the Tech­ scrap in lieu of pig iron. In the United of Schwarz, Miles, and Durrer. In an appli­ nische Hochschule ·at Berlin-Charlotten­ States, therefore, blessed as it was with cation filed in 1939 and issued as German burg as early as 1938 and continued them at plentiful scrap supplies, the Siemens-Martin Patent No. 735,196, on July 3, 1943, Professor the Louis von Roll Eisenwerke in Gerlafin­ furnace provided an excellent solution to the c. v. Schwarz of Berlin-Charlottenburg stat­ gen, Switzerland, after the war, succeeded in quality problems of the Bessemer and Thom­ ed: "The object of the present invention is a producing steel with a top-blown, pure-oxy­ as conversion processes. Indeed, by 1909, method of bringing gases into particularly gen process in a 2.5 ton experimental con-. the open-hearth had outstrir::oed the Besse­ intimate contact with liquid baths, for in­ verter.l& On March 21, 1948, as Durrer's mer converter as the workhorse of the Amer­ stance metal baths, by providing the jet of associate later reported, he proved that "it is ican steel industry, and by 1953, about 89 gas directed onto the surface of the bath possible to refine pig-iron of varying compo­ per cent of the steel produced in the United with such a high kinetic energy that it is sition with pure oxygen. There are no diffi­ States was of the basic open-hearth variety. capable of penetrating in the manner of a culties with respect to the durability of the But pneumatic conversion remained the solid body deep into the bath by the use of nozzle or the converter lining.... The quali­ quickest and cheapest way of refining steel. extremely high velocities lying preferably ties of the steel correspond to those of nor­ Hence experiments continued, especially in above the speed of sound. In this way it is mal open-hearth steel.'' 17 Europe, to solve the problems of the oxygen possible, without any additional means, such These experiments by Durrer and Hell­ supply and the longevity of the refractory as for instance a pipe or the like which is brti.gge provided the last crucial link in the lining. One breakthrough occurred in 1929, subject to rapid wear, to cause the jet of gas process of technology diffusion because it when the Gesellschaft fur Linde's Eismas­ to act within the liquid ba~.hs so that the re­ was Durrer who transmitted the Schwarz and chinen AG in Germany perfected a method action takes place extreLlely rapidly and Miles teaching (and his experimental find­ (the Linde-Frankl process) of producing bulk completely." In this top-blown pure-oxygen ings based thereon) to the eventual pat­ oxygen of 99 per cent purity at very low cost. process, Schwarz observed, "the danger of entees-the Austrian steel firm VOEST. The From then on, except for the actual buildng rapid wear of the container liner is elimi- sequence of events was as follows: In 1948 of the needed oxygen plants, the technical VOEST was contemplating an expansion of and economic problem of an adequate oxygen cent pure oxygen at Oberhausen (Stahl und its steel plants at Linz and was actively con­ supply for steelmaking was of no further 12 Eisen, Vol. 70 (Apr. 13, 1950), pp. 303-21 and sidering all available steelmaking processes. concern. Vol. 71 (Nov. 8, 1951), p. 1189-99), but failed Aware of the Durrer-Hellbrti.gge experi­ The problem of the tuyere and lining lon­ in further efforts to increase the oxygen ments at Gerlafingen, VOEST dispatched its gevity, however, was more stubborn and vex­ concentration in the blast without excessive Works Mana.ger, Dr. Trenkler, to Gerlafingen ing. Attempts to use high purity oxygen in wear and tear of the converter bottom. on May 12, 1949, to inspect the equipment bottom-blown (Bessemer or Thomas) con­ HAs early as 1904 Herman A. Brassert de­ and examine the techniques which had there verters resulted in the rapid deterioration of scribed a side-blown converter using "dry been employed to produce steel in a top the converter bottom-sometimes within the air," oxygen or oxygen-enriched air. He sug­ blown oxygen converter. Encouraged by short time of one heat.13 Other attempts, gested that a suitable number of buyers be Trenkler's favorable report, VOEST imme­ positioned around the converter vessel above diately initiated a test series in a two-ton 1 2 By 1948 A. B. Robiette could report that the metal line "So as to direct the air issuing modified converter which on June 25, 1949, "Developments in the production of cheap from them downwardly onto the surface of yielded fur.ther refinements of the Schwarz­ oxygen by the Linde-Frankl and other sys­ the metal in the bath whereby a whirling or Miles-Durrer art: "first, the blowing of pure tems have so reduced the cost of oxygen that rotary motion will be given to the metal." oxygen from above onto ... a highly reactive it can now be seriously considered both for (U.S. Patent No. 1,032,653 applied for on No­ zone in the upper region of the melt, which combustion systems and for the refining of vember 11, 1904, and issued on July 16, 1912). zone is spaced from the refractory lining of pig iron and the production of steel." ''Use Notable among the experiments and pilot the vessel. Second, the avoiding of deep of Oxygen for Steelmaking," The Iron and projects subsequently undertaken were those penetration of the oxygen jet into the bath Coal Trades Review, May 28, 1948, p. 1103. of Jones & Laughlin (started in 1942) and [again to avoid damage to the converter 18 Between 1936 and 1940, for example, Carnegie-Illinois (started in 1946). By 1949 · lining]. Third, the avoiding of material agi­ 0. Lellep conducted experiments at Ober­ both companies had concluded that their tation of the bath by the stirring effect of hausen, Germany, with the use of pure side-blown converter (turbo-hearth) process the oxygen jet. Fourth, the creation of a oxygen in a bottom..:blown converter. While was "fundamentally sound" and that it could circulatory movement of the bath, not by he succeeded in producing high quality steel be made to yield low-nitrogen, low-J>hospho­ mechanical action of the jet, but by the at low cost, he found no way of preserving rus steels in commercial quantites, if certain chemical reactions." 1s These refinements of the service life of the converter bottom, and operating problems were solved and the the process solved not only the problem of hence failed to come up with a commercially equipment design modified. See E. C. Bain safeguarding the converter lining, but also feasible process. "Versuche zur Stahlherstel­ (vice-president, Carnegie-Illinois) and H. W. the need for dephosphorization through a lung im Herdofen und Konverter unter Graham (vice-president, Jones & Laughlin), proper slag composition. Benutzung von konzentriertem Sauerstoff, "The Turbo-Hearth-A New Steelmaking ·In any event, by mid-August of 1949, ausgefti.hrt in der Gutehoffnungshti.tte A.-G., Technique," Iron Age, Apr. 21, 1949, pp. 62-65. VOEST was convinced of the sou~dness of Oberhausen, in der Zeitperiode von 1936 bis For a discussion of other side-blown conver­ 1940," published in Mexico City in 1941; cited ter experiments, see Stahl und Eisen, Vol. 62 the process and initiated the final experi­ in Stahl und Eisen, Vol. 71 (Dec. 20, 1951), (Sept. 3, 1942) pp. 749-56 and Vol. 64 (June l, ments to test the process operationally and p. 1442. 1944) pp. 349-58. Both of these volumes of practically. These were concluded success­ By 1945 the Russians had built a special Stahl und Eisen were reproduced and dis­ fully by November 1950, and a new metal- converter plant at their Kuznetsk Steel tributed te scientific centers in the United Works to study the production of Bessemer States· during World War II by the Alien 10 R. Durrer, "Sauerstoff-Frischen in Gerla­ steel by use of an oxygen-enriched or pure­ Property Custodian. fingen," von Roll werkzeitung, -Vor. 19 ('May oxygen blast in a bottom-blown converter. 15 Extensive - experiments with oxygen­ 1948),pp.73-74. . They too failed to develop a method for steam combinations were conducted by 11 H. Hellbrtigge, "Die Umwandlung von preserving the service life of the tuyers when Coheur, Marbais, Daubersy et al. at the ·Bel­ -Roneisen in Stahl in Konverter bei Verwen­ using 100 per cent concentration ·of oxygen. gian Centre National de Recherches Metal­ dung ' von reinem Sauerstoff," Stahl und See the article by V. V. Konjakov in Engi­ lurgiques in Liege. For accounts of the·se Eisen, Vol. 70 (Dec, 21, 1950), p. 1211 (freely neers' Digest, Nov. 1947, p. 522, cited· in Iron experiments, see Stahl und Eisen, Vol. 70 translated from the original German). Age, Feb; 19, 1948, p. 70. (Oct. 26, 1950), pp. 1015--17, (Nov. 9, 1950), 1s Testimony of Dr. Hauttmann, one of the The Germans conducted successful experi­ pp. 1077-79, and Revue Universelle de Mines, co-inventors of record, in Kaiser v. McLouth, ments in bottom-blown converters by ·use of Vol. 93 (1950) pp.·104-8, 401-2, 402-7, 408~17, 'Civil Action No. 16,900, U.S. District Court 64 per cent pure oxygen at Haspe and 73 per 418- 23 and 423-30. (E.D. Mich.), 1964, Record p. 2754. September 2, 1966 CONGRESSIONAL RECORD- HOUSE 21727 lurgy had been .born.19 VOEST then con­ Was this policy of watchful waiting jus­ the. new process appears beyond question, structed its first L-D plant which went into tified by a paucity of information? Could was endorsed by. Professor Durre! who ob­ a large-scale, commercial production in 1952. Big Steel have been expected to know. more served that the commercial feasibility of L-D It is noteworthy that the three major revo­ about the technical feasibility and economic refining was firmly established for Austrian lutions in steelmaking-the Bessemer, Sie­ advantages of the oxygen process? Could it (and hence also for United States) low­ mens-Martin (open-hearth), and basic oxy­ reasonably have been expected to gather suf­ phosphorus ores, but that additional work gen processes-were not the products of ficient evidence sooner than it did, and there­ had to be done to adapt it to high-phospho­ American inventive genius nor the output fore initiate its move to oxyge:::1 a~ an earlier rus ores.29 Ironically enough, Durrer's com­ of giant corporate research laboratories. The date? Judged by the available evidence, the ment meant that United States producers oxygen process was developed in continental answer seems incontrovertibly and emphati­ should have been the first to jump on the Europe and perfected by the employees of a cally "yes." We say this without probing L-D bandwagon, whereas the European pro­ nationalized enterprise, in a war-ravaged further to ask why, in view of the long-famil­ ducers working as they did with high­ country, with a total steel ingot capacity of iar potential of oxygen conversion, Big Steel phosphorus ores could have been excused about 1 million tons-by a firm that was had not anticipated the European inven­ for a delayed response. less than one-third the size of a single plant tion by many years. (3) Starting with its 1954 annual report, of the United States Steel Corporation. (1) Starting in 1952 the steel producers of and regularly thereafter, McLouth expressed the world began a ceaseless trek to the its enthusiasm for the oxygen steel process History of the innovation Austrian oxygen installations at Linz and which it had innovated in the United States.ao In innovation, as in invention, the giants Donawitz. By 1963 some 34,000 had come to In the 1954 Annual Statement, McLouth of the United States steel industry lagged, observe, inspect, and study the new process reported: "However, we are now operating not led. The first large-scale commercial in operation.26 The DOFASCO and McLouth the first Oxygen Steel Process in the United use of the oxygen process was in an Austrian installations were subjected to similar visita­ States. It is a r~volutionary method of mak­ steel plant (VOEST) in 1952. The first in­ tions by steel producers, metallurgists, and ing high quality steel and is reducing our stallation of the new process on the North engineers. costs." American continent took place in a Ca­ (2) A great mass of technical literature, In the 1955 Annual Statement, McLouth nadian plant (DOFASCO) in 1954. The first including literally thousands of articles in stated: "Our oxygen steelmaking process, United States company to obtain a license engineering and trade journals, started ac­ which is-still the only one of its kind in the under the Austrian L-D patents was Kaiser cumulating with the publication of the United States, has proved outstandingly suc­ Steel in 1953-at the time, a company with Austrian invention. As early as 1952 Stahl cessful. It has been operating at better less than 1 per cent of United States ingot und Eisen devoted almost an entire than rated capacity." capacity. The first United States company issue to a steel conference at Leoben, In the 1958 Annual Statement, McLouth, actually to install the oxygen process was Austria, where some 360 engineers and reviewing its twenty-five years of operation, McLouth Steel in 1954-at the time, also scientists (60 of them from seven countries stated: "The most spectacular phase of the a firm with less .than 1 per cent of United outside of Austria) met to discuss the oxygen e-xpansion program w~s the pioneering of States ingot capacity. The first major steel revolution in steelmaking and to receive first­ the Oxygen Steel Process. . . . The Steel company to do so was Jones & Laughlin in hand reports from the leading engineers of industry wa.tched with interest the develop­ 1957-to be followed by U.S. Steel and Beth­ the Linz-Donawitz plants. These reports ment of this new steelmaking idea. Today lehem in 1964, and Republic in 1965. In dealt with the metallurgical characteristics many companies are considering the use of other words, the leaders of the United States of oxygen steel, the engineering aspects of oxygen in conversion." steel industry finally decided to innovate operating an L-D converter, and the eco­ U these reports by a mlnlscule steel pro­ this revolutionary process fully fourteen nomic feasibility of the new process.27 In ducer were not required reading for the years after an Austrian company of in­ discussing the Linz-Donawitz experience with giants of the industry, the views of Thomas finitesimal size had done so--successfully. investment and operating costs, Kurt Rosner F. Hruby, associate editor of Steel, writing Instead of adopting the "only r.1ajor break­ presented detailed data to indicate that (a) in 1955, and endorsing the McLouth reports, through at the ingot level since before the the -investment cost of an L-D plant was only should have commanded more se-rious at­ turn of the century," 20 U.S. Steel rested about half that of an open-hearth plant; tention.31 Discussing the experience of the content with a slogan: to call itself a com­ (b) if the cost of erecting oxygen facilities oxygen innovators in Canada (DOFASCO) pany "where the big idea is innovation." 21 were included in the computation, the L-D and the United States (McLouth), Hruby John S. Tennant, G-eneral Counsel of U.S. plant would still cost only about 60 per cent wrote: Steel, boasted to the Kefauver Committee as much as an open-hearth plant; (c) op­ "What about open-hearth practice? Has that "The distinguishing characteristic of erating costs in an L-D plant (exclusive of it reached its peak? Talk to the people who the American steel industry is its tremendous the cost of raw materials) were 72 per cent are running the oxygen operations at Do­ productiveness, a quality which other coun­ of those in an open-hearth plant.28 Rosner's minion Founc.ries & Steel in Canada and at tries have been unable to emulate so far," 22 conclusion, that the economic feasibility of McLouth Steel in Detroit. Pose the question and that the U.S. Steel Corporation "is fully to the many steelmakers who traveled to aware of, and has continuously studied and ignore) this stance of self-congratulatory Austria for their first look at the process. tried out, new processes developed both in Tl:le answe.· is an emphatic yes. 23 catatonia. Forbes called it a "sad fact" that this country and abroad." As late as No­ "despite the 49 million tons of new capacity "At no time in steelmaking history has vember 1957 Mr. Tennant assured the Com­ the U.S. industry had added in the Fifties, there been a process that is so right for the mittee that such new processes as oxygen its over-all operations were slack and ineftl­ present and future economic climate. The steelmaking (which had been described in cient, its technology retarded, its plant anti­ key considerations: Low capital investment, glowing terms by engineers appearing before quated and ineftlcient." (Jan. 1, 1963, p. 31). a tons-per-hour rate nearly three times the the Committee and in State Department After 1957, Forbes pointed out, "the U.S. in­ open-hearth record and an operational flexi­ technical despatches from abroad) required bility that would lend itself to a five-day dustry discovered to its astonishment that 2 "further development" before they "con­ European and Japanese producers were ahead work week." a ceivably could be substituted for, or displace, not only in labor costs but in production DOFASCO, said Hruby, was "completely existing practices." 2 ~ Their "growth poten­ efficiency as well." (Ibid.) It was not before sold on the transplanted Austrian process," tial," be felt, "cannot be forecast." 25 1962, however, and then "at whatever cost," because it was averaging about 1,000 tons per that the "U.S. steel industry seemed deter­ day on a capital investment of $6 million and because this output was "better quality steel 10 The Austrians refer to the process as mined to create a national steel plant as L-D which either stands for Linz-Dtisenvar­ modern and eftlcient as those of its foreign .than Dominion produced in its open­ hearths." As for McLouth, Hruby reported: fahren or for Linz-Donawitz (the location of competitors." (Ibid.) During the fifties, the patentee's steel plants). In the United according to Business Week, the industry was "When you're getting 600,000 ingot tons of States, it is variously referred to as the seemingly gripped . by technological indeci­ ·production from a capital investment of $7 Oxygen Converter Process, Basic Oxygen sion. So the industry leaders did "what steel million, it's a pretty good deal. When you Furnace Process, BOP, or OSM. has done in similar situations for years. find that your ingot costs are down to $3 a ton to boot, there's cause for celebration. 20 Statement by Avery Adams of James & They're withholding major investments while Laughlin, quoted in Forbes, Jan. 1, 1960, they watch very closely the operating re­ "But McLouth Steel Corp., Detroit, is too busy making the first oxygen-converter steel p. 95. sults-and problems-of the pioneers." 21 Advertisement, Wall Street Journal, Jan. (Nov. 26, 1955, pp. 58-64.) - in this country to be celebrating. Besides 13, 1965, p. 13 (emphasis in original). 26 Trial Brief for Plaintiffs, Kaiser v. 22 Hearings of the Subcommittee on Anti­ McLouth, Civil Action No. 16,900, U.S. District 29 Ibid., p. 1019. trust and Monopoly, Administered Prices: Court (E.D. Mich.), p. 65. so McLouth, Annual Reports for years cited. Steel, Part 3, 85th Congress, 1st Session, 1958, 27 The proceedings of the Leoben confer­ a1 "Oxygen Steelmaking Arrives," Steel, p. 1059 (hereinafter cited as Kefauver .Hear­ ence, held in December 1951, were printed in April 4, -1955, pp. 80-83. The same issue of Ings). Stahl und Eisen, Vol. 72 (Aug. 14, 1952), Steel contains an article, "What Happens in 2a Ibid., p. 1060. pp. 989-1024. -the Oxygen Vessel," giving operational details _:H Ibid., p. 1057. 28 Ibid., pp. 997 ff. ROsner points out, int~r on the process based on DOFASCO's 25 Ibid., p. 1058. Not even the trade jour­ alia, that labor costs in tQ.e L-D process. are experience. nals bad the cbarity to accept (or at least only half those in the open-hearth proc~ss. ~Ibid., p. 80. 21728 CONGRESSIONAL RECORD- HOUSE September ~ 2, 1966 its management knew pretty wen what to characteristics, and the-quality of its product. adoption of the new process both in Europe expect two years ago when it decided to In January 1955 the journal reported that and elsewhere.'7 In 1959 the Commission integrate the Austrian process into t.ts steel­ production rates for oxygen "converters are .stated that "During recent years the share making operations." 33 .as much as three times higher per hour than of oxygen converters in new .steelmaking ca­ No one, Hruby concluded, could still cling for the conventional open-hearth furnaces, pacity has increased tremendously," an . pre­ to "the notion that oxygen steelmaking .and operating costs, exclusive of meta111cs dicted that "it seems most likely" that this hasn't arrived commercially." M The date and fixed chargers, are $3.00 per ton of steel ·trend will continue, especially at the expense of Hruby's article was April 1955. less than similar costs for open-heart steel. of open-hearth furnaces.48 (4) Starting with t.ts annual review issue Capital costs are estimated at 50 per cent (6~ By mid-1957 steel technology had be­ in January 1954, the authoritative Iron and less than a comparably sized open-hearth come a matter of political concern in the Steel Engineer began to chronicle the accel­ .shop." 315 In March of the same year, the United States, and the Kefauver Committee erating trend toward the oxygen process Iron and Steel Engineer published an article expressed lively doubts about the industry's throughout the word, and to supply "hard" _on the economics of oxygen steelmaking, the efficiency and progressiveness. The Com­ data on the technology of the process, its cost .data in which are summarized in Table I. mittee showed particularly interest in the .failure of the American industry to emulate T A BLE I.-Comparative costs of oxygen and open-hearth steelmaking the inventive and innovative performance of its European counterparts. 500,000-ton annual -capacity 1,000,000-ton annual capacity Relying on State Department dispatches (approximately) (approximately) Senator Kefauver challenged the industry to Capital and operating costs explain its apparent failure.49 These des-:­ Oxygen Open Oxygen I Open patches-from Vienna, Stockholm, and Lux:. converter hearth converter hearth _embourg-added little to what had already ' appeared in the technical and trade litera­ Capital cost per annual ton ______$20. 22 $39.61 $12.67 $33.71 ture. More interesting than their contents Cost of metallics per ton of steeL ______37.41 36.67 37. 41 36.67 ·was the industry's reaction. Thus U.S. Steel Operating cost per ton of steel (exclusive of cost of conceded that "some form of oxygen steel­ metallics) __ ------.------9. 37 14.63 8. 38 14.25 1 making will undoubtedly become an impor­ tant feature in steelmaking in this coun­ Source: W. C. Rueckel and J. W. Irwin, "EconomiC Aspects of the Oxygen Converter," Iron and Steel Engmeer, try," but it declined to say when or to com ~ March 1955, p. 62. mit itself to introducing this innovation. ~o In January 1957 this same journal reported nomic Commission for Europe corroborated Indeed, three years later, Fortune still pic­ fiatly that "The oxygen-blown converter for the findings of both American and foreign tured the Corporation as confronted by making steel is now an accepted tool of the trade and engineering journals with respect "painfully difficult choices between compet­ steelmaker." 3B After offering some addi­ to the efficacy of oxygen steelmaking. "Un­ ing alternatives-for example, whether to tional operating data on McLouth's converter, doubtedly the most interesting and exten­ spend large sums for cost reduction now ·and announcing oxygen facilities under con­ sive recent development in steelmaking has [1960), in effect commi~ting the company struction at Kaiser and Jones & Laughlin, it been improvement in quality, by the use of to present technology, or to stall for time in reported a new oxygen process developed in oxygen in basic Thomas converters" 43 the order to capitalize on a new and perhaps far Sweden-the Kal-Do or rotary oxygen con­ ECE reported for 1953: "The 'L-D' plant, in­ superior technology that may be available in verteY cluding the cost of an oxygen plant, costs a few years." &l The Kefa_uver challenge had In January 1958 this same journal con­ approximately half of the capital cost of an seemingly done little to stir Big Steel from cluded that "The top-blown oxygen con­ open-hearth plant of the same capacity... . lts lethargy. verter process is meeting with greater ac­ · It seems clear that this 'L-D' process ... can Reviewing the history of innovation wit h ceptance in the United States and through­ produce a high quality of steel with low respect to oxygen steelmaking, the following out the world," and supported this conclu­ nitrogen content and at favourable cost." « conclusions are inescapable. First as Table sion with a detailed catalogue of expansions For the year 1954 the Commission offered II indicates, United States steelmakers lag­ in oxygen steelmaking facilities. It indi­ the following comparative capital costs for ·ged behind the rest of the world in adopt­ cated that various rotary oxygen processes plants with a monthly production capacity ing the L-D process. By September 1963 the were finding favor in France, Germany, and of 100,000 tons: 45 'United States had some 10,040,000 tons of South Africa as well as Sweden.as L-D capacity in place-compared with ~.- In January 1959 the Iron and Steel Engi­ 210,000 tons for the world as a whole.52 If neer stated that one of the chief reasons for Total, Tap-to- Monthly acceptance of the O?Cygen converter is "the T ype of installation capital tap time produc­ cost tion 47 United Nations, Economic Commission low capital cost, which has been estimated for Europe, Advances in Steel Technology in at $15 a ton, compared with about $40 a ton ------1------9 Millions Hours Tons 1955 (Geneva, 1956), and Advances in Steel for added open-hearth capacity." 3 6 225-ton open-hearth Technology in 1956 (Geneva, 1958) . . The Finally, in January 1960, after citing an furnaces_------$22 9 100,000 -latter contained an article by I. P. Bardin, Association of Iron and Steel Engineers esti­ 5 35-ton L - D oxygen member of the Soviet Academy, stating that mate of $15 per annual ton of oxygen ca­ converters (1 of which is in reserve) ______100,000 "In the USSR experience obtained in the use pacity versus $35 per ton for open-hearth of oxygen in top-blown converters (at the capacity, this same journal offered the Novo-Tulsk, Enakiev and Petrovsky Works) "strong conclusion ... that the United States J These capital cost estimates also provide for the n ecessary tonnage oxygen plant. has shown that steel produced by this has probably already seen the last large new method has nearly the same physical and open-hearth shop to be built." to Indeed, The report concluded: "In an existing mechanical properties as open-hearth steel." the journal reported the dismantling of works, having, say, six or eight open-hearth (Op. cit., p. 13). Bardin also reported that "some 175-ton open-hearths" at Jones & furnaces, some of which may no longer be "The cost of installing a converter shop with Laughlin's Cleveland works to make room for up to date, the logical development would ap­ oxygen-producing equipment is considerably 200-ton oxygen converters.-'11 "Oxygen steel­ pear to be to replace two or three of the lower than that of building an open-hearth making techniques," the journal said by way older open-hearth furnaces by either con­ shop of the same capacity. Operational of remarkable understatement, "have had a ventional or oxygen-blown converters, al­ costs with the converter process are also tremendous impact on future steelmaking though this involves considerable altera­ :somewhat lower." (Ibid., emphasis sup­ plans." 42 tions in the buildings and layout." ts plied.) (5) Starting with its annual review of Subsequent ECE reports merely reinforced 48 United Nations, Economic Commission iron and stool technology for 1953, the Eco- these findings and chronicled the rapid for Europe, Long-term Trends and Problems of the European Steel Industry (Geneva, 3-1 Ibid. 30 P. 125. A $3 saving i·n processing cost of 1959), p. 104, and Comparison of Steel­ 3 ' Ibid. L-D vs. OH steel was reported in Iron Age, making Processes (New York, 1962), esp. pp. XP.137. Feb. 6, 1958, pp. 55-58, and a $3-$12 saving 77-83. a• P. 141. in conversion costs was reported in Iron Age, 49 See Kefauver Hearings, op. cit., pp. 1365 n,~ P. 165. Sept.a4,1959,pp.67-68. ff. and passim. 30 P. 33. This estimate was based on ~ the · ' 3 United Nations, Economic Commission 50 Ibid., pp. 1057- 60. experience at Jones & Laughlin, and was for Europe, Some Important Developments 61 Charles E. Silberman, "Steel: It's a previously reported in Iron Ag~. Dec. 12, 1957, During 1953 in Iron and Steel Technology Brand-New Industry," Fortune, LXII (Dec. p. 87. . ,· . (Geneva: January 7, 1954), p. 10. 1960), 124 (emphasis supplied). •a P. 67. The estimate presented at the 44 Ibid., pp. 13, 15 (emphasis supplied). 52 Kaiser Engineers, L-D Process Newsletter, .JI..ssocia.tion o! Iron and,Steel Engineers meet­ · •s United Nations, Economic Commission Sept. 27, 1963, pp. 3-6. The lag of the United ings was. previously cited 1n Steel, Vol. 144 for Europe, Recent Advances in Steel Tech­ States behind other major steel producers (Apr. 27, 1959), p. 61. nology and Market Development, 1954 is all the more remarkable, ·because the L-D u P. 68. (Geneva: February 22, 1955), p. 31. process developed by the Austrians was Im­ 42 P. 43. ~Ibid., p. 30. mediately applicable to conversion of our September 2, 19.66 CONGRESSIONAL· RECORD - ·HOUSE 21729 more than 2.5 million tons of other types of Finally, it is clear that despite Big Steel's In 1958, for exam:ple, Robert Tyson, Chair-· oxygen capacity (Kaldo process and rotary decade of ratinnalization, the technological man of the Finance Committee of U.S. Steel. converter) be added to the world total, the avalanche of the oxygen converter could not argued that steel industry earnings of 13.9 United States share would be even smaller. be stopped. Thus, current estimates indi­ per cent on net assets were really subaverage Since the L-D process could not immediately cate that by 1975 some 45 per cent of United because of a substantial deficiency in re­ be adapted to most European ores, the con­ States steel production will come from oxy­ corded depreciation.67 In the industry's dis­ t rast is even more striking. gen vessels and that the open-hearth will be pute with President Kennedy in 1961, U.S. displaced as the workhorse of the steel Steel used profits as a percentage of sales­ TABLE rr:-Annua( L-D steelmaki ng capacit'!( industry: probably because the President had relied [In millions of tons] Moreover, it is ironic that this compre­ upon a net worth measure.os When the 1962 hensive modernization will be taking place showdown came, U.S. Steel and its fellow Year United States World during a period of substantial "un:used"­ oligopolists emphasized the "financial or more accurately, economically "unus­ squeeze;" 59 as in 1958, the high cost of "mod­ able"--capacity. Thus, in 1964, the American ernization" was not only mentioned, but 1953 ------0. 5 1954------. 9 steel industry was installing oxygen con­ m ade a key point in the attempt to justify a 19,55______o. 54 1. 9 verters at a frenetic pace while using only price increase.oo When, in 1964, the steel 1956------. 54 2. 0 some 75 per cent of existing facilities-and industry again came into conflict with the 1957------. 54 2. 7 this in a banner year for steel production. White House and the Council of Economic 1958------1. 35 5. 2 1959------3. 58 9. 5 Obviously, as the Wall Street Journal ob­ Advisers' guidelines, it once again fell back 1960 ______: ______4.16 11.5 served, the increase in ingot capacity came on an inadequate return on investment to 1961______4. 65 17.2 "because of mill efforts to lower costs and support its price increases.61 1962------7. 50 24.7 not from any lack of raw steel." The indus­ If the industry added a net of 40 million try was mothballing some 7 million tons of tons of the "wrong" capacity during the 1950 Source: Trial brief for plaintiffs, Kaiser v. McLouth, open-hearth capacity, reclassifying it as decade; 62 if the gross addition to capacity civil action No.l6,900, U.S. District Court(E.D.Mich.) , "standby capacity" with the intention of during the period amounted to 49 million p. 67. dismantling much of it "before . long." 54 tons; 63 lf the industry could have begun to Second, with the exception of Jones & Similarly, the Iron and Steel Engineer found adopt the oxygen process as early at 1950; if Laughlin, not a single major steel producer .it significant that much of the projected this revolutionary steelmaking process would in the United States installed an oxygen con­ new oxygen capacity will in many cases "be have provided the industry with substantial verter prior to 1962. Two of the Big Thre~ .used to replace existing workable capacity. savings both in capital investment and U.S. Steel and Bethlehem-had no oxygen ca­ Companies are being forced to the process in operating costs-does it not follow that Big pacity until 1964, and Republic none until order to compete, and also perhaps in some Steel's profit grumbles are in part the result 1965. Yet they, with a much wider age dis­ cases to develop their know-how. The low of self-inflicted injury? The rough magni­ tribution-of --xlsting equipment, should have ·cap~tal cost and the savings in operating tude of the "improvement" in the industry's been the first to experiment. costs more than overbalance any considera­ level of profits, and the availability of finan..­ Third, the innovator of oxygen steelmaking tions to continue operating existing equip­ cial resources for r.eplacement and mod­ in the United States was the twelfth largest ment. "~>S ernization-assuming the industry had steel company (McLouth) in 1954, to be fol­ TABLE IV.-Total U.S. production of steel followed a policy other than one of suicidal lowed by the fourth largest (Jones & Laugh­ ingots for 1963 and forecasts to 1975 investment-shall now be sketched in rudi­ lin) in 1957, the ninth largest (Kaiser) in mentary outline. 1958, the nineteenth largest (Acme) in 1959, [M illions of net·tons] According ·to the theory of replacement the tenth largest (Colorado Fuel & Iron) in economics,o4 a new technique should be sub­ Open Besse- Oxygen Electric stituted for an old one whenever present 1961, the fifth largest (National) in 1962, Year hearth mer con- furnace Total and by the fifteenth largest (Pittsburgh), ver ter twenty-second largest (Allegheny-Ludlum) ,Ga 57 ~------Steel and Inflation: Fact vs. Fiction (New and the sixth largest (Armco) in 1963. By 19f,S ____ York: Public Relations Dept., U.S. Steel the end of 1963 oxygen steelmaking capacity 88. 8 1.0 8. 5 10.9 109. 2 197.5__ __ 54.0 ------.. 61.0 20. 0 135.0 Corp., 1958) , p. 37. in the United States was distributed as fol­ os See "Dear Mr. President ... ," pp. 2, 7, lows: and also speeches by Senators Gore and Ke­ Source: Batt.elle Memorial Instit ute, " Tecbnical and TABLE !!I.-Distribution of L-D oxygen ca­ E l!onomic Analysis of the Impact of Recent Develop­ fauver, CONGRESSIONAL RECORD, Aug. 15, 1961. pacity among U.S. steel p1·oducers, 1963 ments in Steelmaking Prflctiees on t he Supplying 59 See "The Steel Price Rise: A Matter of Indu s tr i e~ , " Oct. 30, 1964, p. X --3. Necessity," a statement by Leslie B. Worth­ ington, President of U.S. Steel, April10, 1!:'62, Oxygen Percentage Percentage n U.S. steel steel of U.S. of total The invention of the oxygen converter, and p. 3, and "In the Public Interest" remarks by company's rank capacity oxygen U.S. steel ·the history of its innovation, assume partic­ R. M. Blough, Annual Meeting of Stockhold­ in the industry 1 (tons) steel capacity I ers, U.S. Steel, May 7, 1962. Blough stressed capacity ular significance because of the periodic­ indeed endemic- complaints by iihe steel the rise in costs, the decrease in profit mar­ " industry about its unreasonably low rates of gins as a per cent of sales, and the rising costs 1st, 2d, 3d_------0 0 52.27 of replacement and "modernization." 4th, 5th, 6th______6, 550,000 50.62 14.76 return and, consequently, its inability prop­ erly to finance replacement, expansion, and so SeeR. M. Blough, "My Side of the Story," 9th, lOth, 12th, Look, Jan. 29, 1963, p. 21. There he stat es 000 49.38 7. 06 modernization. While these profit grumbles 15th, 19th ------6,390, that the proposed "very small increase would can be traced back at least to 1939,56 th_ey All companies __ 12,940,000 100 100 have, if anything, been voiced with increas­ have made it possible for U.S. Steel to invest ing persistence (and !orte voce) ·since then. in modern plants and equipment ... and 'eventually allow us to compete more ef­ 1 Based on company ingot capacity as of J an. 1, 1960 fectively with foreign steel imports." Source: American Iron & Steel I nstitute, Iron and 54 Jan. 4, 1965, p. 4. The W!'l-11 Street Jour­ . 61 See statements quoted in New York Steel Works Directory of the United States and Canada, nal also reported new oxygen capacity of 10.2 1960; Kaiser Engineers, L-D Process Newsletter, Sept. Times, Section III, Nov. 1, 1964, pp. 1 and 12. 27,1963. million tons, projected by u:s. Steel, Repub­ Mr. Block of Inland Steel said that "The lic, Inland, and Wheeling, commenting that clear fact is that we do not make a satisfac­ It is also significant that the Swedish "Mills generally put in the new furnaces to tory turn on the vast sums of money invested Kal-Do process, another oxygen steelmaking cut costs rather t~an expand capacity. in the industry." C. M. Beeghly, chairman of technique, was innovated in the United Oxygen furnaces turn out a batch of steel Jones & Laughlin, asked !or a "competitive States by Sharon Steel- a company which in 40 minutes, compared with six hours for ret urn on investment." accounted for 1.3 per cent of total United even the fatest open-hearth furnaces. Cap- 02 Busineses Week, Nov . 16, 1963, pp. States steel capacity and ranked thirteenth . ital expense per ton of capacity is lower, too, 144-46. among ingot producers. running around $12 to $15 compared with 03 Forbes, Jan. 1, 1963, p. 31. Drawing on $30 to $35 for an open-hearth." January 7, capacity data of the American Iron & Steel low-phosphorus ores. Major European steel­ 1965, p. 1. Instit ute, the Office of Business Economics, , makers by contrast, had to wait until 1957 55 Jan. 1963, p. 171 (emphasis supplied). Department of Commerce, places the net in­ before the L-D process was modified suf- · Precisely how much open-hearth capacity­ crease at 48.6 million tons (Joint Economic , ficiently (by the addition of lime powders in . even if equipped with oxygen lances-is ob­ Committee, Steel Prices, Units Costs, Profits, the LD-AC, OLP, and LD-Pompey processes) solete is a closely guarded industry secret. and Foreign Competition, 88th Congress, 1st to be suitable for processing high-phospho­ In sum, given the steel industry's record Session, 1962, p. 193). The Bureau of Labor rous ores constituting their primary supply. of innovation with respect to oxygen steel­ Statistics Background Statistics, brought up · Once this adaptation was made, these coun­ making, it seems reasonable to suggest that to April 1963, Table 2a, also indicates a 48 tries moved to install the latest technology. Big Steel is neither big because it is progres­ million ton increase in capacity-with iden­ · So did Japan.- See Comparison of Steel-mak­ sive nor progressive because it is big. tical figures taken from the AISI. ing Processes, op. cit., esp. 78-82. 66 See Kaplan, Dirlam, Lanzillotti Pricing in M Cp. Morris A. Copeland, Our Free Enter­ ro Allegheny-Ludlum's installation was ex­ Big Business (Washington: Brookings, 1958), . prise Economy (New York: Macmillan, 1965·), perimental only. p.169. CXII-- 1370-Part 16 21730 CONGRESSIONAL RECORD- HOUSE September 2, 1966 value of the firm would be greater after the tude of the difference between actual and Third, our assessment of the consequences substitution. To make a precise comparison potential returns would also be changed. of the lag in United States adoption of the of present values would entail detailed For instance, if the entire open·-hearth capac­ oxygen process has shown that the steel knowledge not only of the immediate outlay ity of 122,000,000 tons had been replaced by industry's complaint about inadequate profita on the new process and the cost of capital oxygen converters, investment and net worth and lack of modernization funds have been (to be used as a discount rate), but also would have dropped by almost $2.5 billion. sadly exaggerated. Had the dominant steel of future patterns .of operating receipts and The computed rate of return would have firms seized the initiative, and carried out expenditures and the net scrap values of been still higher.oo On. the other hand, to a genuine modernization program in the presently used and substitute equipment. the extent that the steel companies carried 1950's, their earnings would have been sub­ Obviously, we do not have this information their open-hearth production assets at less stantially higher and their depreciation and for each steel company. But when there than original cost of installation at 1960 replacement requirements appreciably low­ exist operating savings after depreciation prices, the adjusted rate of return would be er-due to much lower operating costs per from a new process sufficient to cover a rea­ less. ton of ingot capacity and lower depreciation sonable return on the capital required for One further observation might be made re­ and replacement costs on a lower investment the new process, it may be assumed that a garding the steel industry's persistent com­ base. Until the steel industry restates its more precise present value comparison would plaint that it is earning less than . a satis­ accounts to reflect the efficiencies that have also show the rationality of substitution. factory. return. Comparisons of return on been possible for at least the past fifteen The investment in the old machines is, of net worth with averages for manufacturing years, little credence should be given to its course, sunk, and both return on and de­ industry during the years 1947-63 do show a plaintive pleas for higher prices or profits. preciation of this sunk capital may be dis­ deficiency for steel. The industry, there­ Finally, there is another implication to our regarded in computations. fore, had additional reason to replace exist­ study of the steel industry's curious inver­ Earlier discussion has indicated that the ing plant with less costly production facil­ sion of the sou:-ce of innovation. It has operating savings resulting from use of the ities. It would also have been rational for often been assumed that, if homogeneous oxygen converter may reasonably be taken the industry to have reduced its total capi­ oligopolies do not compete in price, their to be $5 per ton. While a single figure is, of tal investments, whereas it did just the leading members compete in innovating­ course, subject to qualification, it does not opposite. and that the public thereby benefits as much appear that $15 per ton is a serious under­ m as, if not more than, it would by price com­ estimate of the investment that would have Our review of the circumstances of inven­ petition. Yet the oxygen converter history been required in the years 1950-60 to install tion, and the pace and sponsorship of in­ reveals the steel oligopoly as failing to com­ oxygen convertors in United States mills. novation, of the most revolutionary cost­ pete in strategic innovations. What bene­ Unless the cost of capital to steel companies saving development in steelmaking since the fits, then, remain for large size in steel? was as high as 33 per cent during this period, Siemens-Martin furnace has, we believe, they could have shown a clear gain by re­ raised serious doubts concerning the univer­ placing open-hearth with oxygen capacity. sality of the "Schumpeter" hypothesis. If COOPERATIVE LEAGUE OF U.S.A. Note that this comparison disregards advan­ the hpyothesis is to have general validity, it SUPPORTS H.R. 14026 tages of the BOP process such as superior must be demonstrably applicable to the most quality control and lower plant space important inventions in concentrated, oligop­ Mr. PATMAN. Mr. Speaker, I ask requirements. olized industries. But the history of the unanimous consent to extend my re­ A complete substitution could have been development of the oxygen process shows marks at this point in the RECORD and easily achieved by 1961. The industry's cash just the opposite. include extraneous matter. :flow during the years 1950-60 was $14.6 bil­ In the first place, the invention was neither The SPEAKER. Is there objection lion. To put in operation 87 million tons of sponsored nor supported by large, dominant to the request of the gentleman from oxygen capacity-the approximate amount firms. Nor were these firms leaders in in­ necessary to produce the steel made in 1960 Texas? troducing the revolutionary developn1ent. There was no objection by open-hearth facilities-would have re­ Their indifference is explicable either on the quired an outlay of no more than $1.3 bil­ grounds of ignorance or delinquency, and the Mr. PATMAN. Mr. Speaker, the Co­ lion or about 12 per cent of the industry's first of these alternatives must be rejected operative League of the U.S.A. represent­ actual capital expenditures of $11 billion. almost summarily. In view of the wide pub­ ing 17 million American families has vig­ These expenditures included purchase of new licity given to the Leoben conference of 1951, orously endorsed my bill, H.R. 14026, a and modernization of old open-hearth fur­ the thousands of articles on oxygen and bill which seeks to end this disastrous in­ naces. steelmaking in technical and trade journals, terest rate war. American citizens can­ Assuming the substitution to have been and U.S. Steel's assertion that it is aware of not remain prosperous if they must bear made, we can recompute the rate of return every new development in the industry, it that the basic steel industry could have is incredible that the engineers of Big Steel these exorbitant interest rates, which ~arned on the equity in 1960. If 87 million were unaware of the Austrian breakthrough. have reached the highest level in 45 tons of steel had been produced by the Second, it was· a small firm that first in­ years. H.R. 14026 is a first step, an af­ oxygen process, total operating savings of novated the new process in the United States, firmative step which will put Congress o:1 $432 million could have been realized. Mter­ and it was other small firms that followed its record in favor of low interest rates. tax profits would therefore have been $216 lead. We submit that this consequence The Cooperative ~aeue has now lined million higher. Net worth could have been should not be entirely unexpected because up with the AFL-CIO, the National Rural reduced by as much as $1.7 billion-the dif­ it may well be that the structural and be­ ference between the investment required for Electric Cooperative Association, the Na­ havioral characteristics of oligopolized in­ tional Association of Home Builders, and 87 million tons of open-hearth capacity, and dustries prevent the dominant firms from the same amount of oxygen converter ca­ pioneering. Instead, the small firms may be many thousands of savings and loan as­ pacity. Given an expansion in net profit and the innovators because, unlike their giant sociations and small commercial banks in a decrease in equity of such magnitudes, the rivals, what they do in the way of cost re­ support of this bill to put a stop to this industry's computed return on net worth in ductions is unlikely to cause so. violent a disastrous rate war. · 1960 would have been in the neighborhood of 11.6 per cent, instead of the 7.6 per cent disturbance of the status quo. Hence, Mr. Speaker, I wish to include in the based on the steel industry experience, it RECORD following my remarks a news .·t;­ it actually realized-an increase of some seems as reasonable to assume that innova­ 65 per cent in profits.<15 lease by the Cooperative League on the tion is sponsored by firms in inverse order high interest rate crisis: This computation is set forth only for of size as it is to assume the contrary. (In illustrative purposes, but it shows the "ball­ fact, we would hazard a guess that inquiry WASHINGTON.-The interest-rate issue has park" boundaries wherein a meaningful rate into innovation in other industries might stirred the whole country, but what is done of return for the steel industry may lie. If turn up the same conclusion; for instance, about it, if anything, will be done here in the assumptions were changed, the magni- the most important breakthrough in petro­ Congress. leum refining techniques since cracking it­ A typical reaction on Capitol Hill is some­ pp. 181-209. While his illustrations are self-the development of catalytic cracking­ thing like: "My remarks about interest rates simplified, Copeland presents the funda­ was innovated by a small, maverick major. now hit the front pages in my district. When mental elements of capital cost, timing of ex­ Only after Sun Oil had given positive evi­ I said the same things last December, at the penditures and receipts, and their discount dence of its commitment to the Houdry proc­ time the Federal Reserve Board raised the to present value, clearly and forcefully. discount rate,. they were ignored or got a 05 According to financial data for firms ac­ ess were its billion-dollar giant rivals willing few lines on the back page." counting for 93 per cent of basic steel pro­ to venture into the area to develop competing From his home in Independence, Mo., 82- duction in 1960, stockholders' equity was processes.) year old former President Harry S. Truman shown as $10.2 billion, and net income at got into the fray August 28, declaring that $767 million. With the adjustments noted oo Substantial asset write-downs would spiraling interest rates are a danger to the above, income and equity would have been necessitate readjustment of surplus and per­ country. Though he does not speak out $983 million and $8.5 billion, respectively. haps even capital accounts of some firms; much on public issues any more, Truman The Iron Age Annual ~eview Number, Jan. but this would not alter the currently realized said, he felt it necessary to do so because 1962. rate of return. this issue has become so critical. Septen~ber 2, , 1966 CONGRESSIONAL- RECORD - JIOUSE 21731 · ' The former President·criticized the· Federal The SPEAKER. ·Is there objection As you know, both ·your bill and Repre­ Reserve Board's policy on increasing prime to the request of the gentleman from sentative STEPHENS' bill would, for the first - interest rates, thereby setting off a chain re­ Texas? time, authorize the Federal Home Loan Bank action of soaring interest all over the country. Board to establish ceilings on di'vidends paid 4 'We are told," he •said, "that this action There was no objection by savings and loan associations. The Fed­ was necessary to forestall inflation." But, Mr. PATMAN. Mr. Speaker, the list eral Home Loan Bank Board has made it he said, "What is more" likely to happen-is of organizations behind H.R. 14026 is "Crystal clear that it will move promptly to that we will bring on a precipitous deflation growing by the hour. . use such controls. if we persist in high interest rates. The re­ The latest to join in support of H.R. Statutory rate ceilings and dividend con­ ·suit could be a serious depression." 14026 is the United States Savings & Loan trols are not desirable in a vigorous, free From San Antonio, Tex., where he was League. The National League of Insured enterprise economy. It is essential that both week-ending, President Johnson answered be made temporary, the shorter the better. the former President, saying that though in­ Savings Associations yesterday endorsed Such controls are only acceptable because terest rates are a subject of "concern,'' they H.R. 1_4026. . . of the war type economy, the excessively do not represent the danger that Truman Mr. Speaker, this means that both of tight money market and the hundreds of thinks. . the major savings and loan associations thousands of home buyers who are being "The tightness of money," the President are now solidly behind H.R. 14026 which denied their reasonable credit requirements. said, ''merely reflects the extreme buoyancy was reported by the Banking and Cur­ Hopefully, we will eventually see strong fiscal of our economy and the resulting sharp rise rency Committee on a 19-to-9 vote. I action which will take the pressure off the in the demand for credit. These are symp­ commend the United States Savings & monetary policy and spread the burdens more toms of strength, not weakness, but we need evenly throughout the economy. Until that to ilnd better ways to restrain inflationary Loan League and the National League of time, your bill, H.R. 14062, is the best solu- pressures than by resorting merely to the Insured Savings Associations for their tio~ · high interest rates we have been witnessing." stands on this legislation. The 4%-per­ It is regrettable that Federal agencies did In Chicago, Jerry Voorhis, president and cent ceiling which this bill places on cer­ not act early this year. At that -time rela­ executive director of the Cooperative League, tificates of deposit under $100,000 will do tively modest steps could have checked the observed that what has happened was pre­ much to move money into the home rapid escalation of interest rates on con­ dictable. He said last December when the mortgage market. sumer certificates of deposit. It was the Federal Reserve Board raised its discount The support for this bill by the sav­ unnecessarily high interest on these sa'v­ interest rate from 47'2% to 5 %, he noted, ings and loan associations is consistent i:ngs instruments which triggered the cha­ that the action would lead to something like otic situation. If those steps had been a 10% increase in living· c·osts, including with their role as the principal loan taken, there would be no reason now for housing, and a severe constriction of home sources for homebuilding. By support­ Congress to even talk about savings and building. ing H.R. 14026, these organizations have loan dividend controls or statutory bank And in Chicago, the AFL-CIO Executive tal{en a giant step forward toward re­ rates. Council, meeting August 23, called for a roll­ vitalizing the sagging homebuilding in­ Sincerely, back of interest "to more reasonable levels." dustry. C. R. MITCHELL, It noted that the rise of bank interest from The savings and luan associations join Chairman, Legislative Committee. 4 Y2 % to 6% is a 33 Ya % increase in less than many other organizations who have a year and declared that high interest is thrown their weight behind H.R. 14026 "pushing homebuilding into a depression." FEDERAL RESERVE OPEN MARKET It said also, in criticism of the Federal and the effort to lower interest rates. Reserve Board's view that higher interest ­ Other organizations that have endorsed COMMITTEE SECRECY COMES TO would check inflation, that "there is no evi­ this measure include: The AFL-CIO, the AN END IF MOSS ACT OBSERVED dence that these highest interest rates in 40 National Rural Electric Cooperative As­ Mr. PATMAN. Mr. Speaker, I ask years· have -curbed the capital goods boom sociation, the National Farmers Union, unanimous consent to extend my re­ at all." - and the National Association of Home­ The Council urged Congress to adopt ''an marks at this point in the RECORD and builders. include extraneous matter. intere-st rate ceiling on time deposits"­ Mr. Speaker, H.R. 14026 has been which was music in the ears of'Rep. WRIGHT The SPEAKER. Is there objection PATMAN (D.-Tex.), who is working mightily scheduled for action on the :floor next to the request of the gentleman from to get support for his bill which would do Wednesday, September 7. Texas? I place in the RECORD a copy of the just th~t, There was no objection PATMAN'S bill (H.R. 14026) WOUld put a letter I have received today from C. R. 47'2% ceiling _on time deposits issued by Mitchell, chairman, legislative commit­ Mr. PATMAN. Mr. Speaker, every 3 commercial banks up to $100,000. It would, tee, United States Savings & Loan weeks the Federal Open Market Commit­ he says, "stop the interest rate war" be­ League; tee of the Federal Reserve System meets tween banks and savings and loan associa­ in secret to determine the extent to UNITED STATES SAVINGS & LOAN LEAGUE, tions, thus enabling the l~ttter to resume Washington, D.C., September 2, 1966. which money will be available for eco­ their normal role as- principal fln-ancer of nomic growth and prosperity. In their home purcha-ses. Hon. WRIGHT PATMAN, Chairman, House Banking and Currency actions controlling the supply of money PATMAN, Rep. AL ULLMAN (D.-Ore.), and Committee, Ho'lJ,se of Representatives, they consult with and advise no one. others are pushing PATMAN's bill in prefer­ Washington, D.C. The Secretary of the Treasury is not ence to an administration-favored one which DEAR CHAIRMAN PATMAN: The United is more flexible, leaving the setting of ceilings privy to their action. Members of Con­ States League has just completed a series of gress are not privy to their action. Not to the Federal Reserve Board. discussions, both internally and with Fed­ In a lette-r to PATMAN, President Johnson eral agencies, on the subject of certificate even the President of the United States said he could see little difference between of deposit legislation. We are in the process is permitted to know of their delibera­ the bills other than ''how the maximum rate of polling the 450 members of our Legisla­ tions. While the law provides that the of interest and the size of the deposit -will tive Committee. However, a telegraphic Federal Open Market Committee is to be deterinined." survey of our Executive Committee and be composed of the 7 members of the But PATMAN wrote back to the President Legislative Subcommittee indicates a very that the Treasury officials "are badly m.is- Board of Governors of the Fed and 5 substantial majority -are in favor of sup­ of the pre-sidents of the Federal Reserve 1eadtng you." He criticized the "very weak, porting H.R. 14026. namby-patnby a.ttitude" of Treasury Sec­ We ne-edn't restate the serious situation banks, the practice has been to allow the retary Henry .H. Fowler -and pleaded with with respect to interest rates and housing presidents of all 12 banks to participate the President to support his, PATMAN's, bill credit. It is obvious that the mood of Con­ in these secret proceedings. In other to "bring interest rates down." gress is one of action. words, this de facto 19-member commit­ A House vote on these b1lls is expected in We believe that the imbalance in the flow tee is dominated by. the 12 presidents of early September. of savings as between commercial banks and the 12 Federal Reserve Banks represent_­ tlirift institutions has become so severe that only a temporary statutory ceiling, subject ing private banking interests. to change by the President, can be effective _To. date-we have been unable to obtain UNITED STATES SAVINGS & LoAN in beginning to restore traditional alloea­ the current minutes and other records of , LEAGUE ENDORSES .H.R. 14026 tions of savings into the mortgage market. the activities of the Federal Open Mar:. No one at the Federal Reserve has been ket Committee_. The Fed has steadfastly Mr. PATMAN. Mr. Speaker, I ask willing to gt:ve any specific assurances of· any unanimous consent: to extend niy re­ adjustment or r-estrictions -that the Fed- ·· refused to provide the House Banking marks a_t this point in the RECORD and eral Reserve would impose under a discre­ and Currency Committee with any in­ include extraneous matter. tionary basis. formation more recent than 1960. · 21732 CONGRESSIONAL: RECORD-'HOUSE September 2~ 1966 However, there is some reason to hope vital operations of the Federal open Market hold information from the Congress. The that at long last the elected repre.senta­ Committee; new section (e) (1), however, exempts from Sincerely yours, the b111, so far as t~e general public is con­ tives of the people have been granted the WRIGHT PATMAN, cerned, matters that are specifically required right by act of Congress to obtain this Chairman. by Executive order to be kept secret in the in­ information so vital to their legislative terest of the national defense or foreign pol­ determinations. I have recently engaged HOUSE OF REPRESENTATIVES, FoR­ icy. The Judicial Branch of the government in an exchange of correspondence with EIGN OPERATIONS AND GOVERN­ has the final authority to determine whether the Honorable JoHN E. Moss, chairman MENT INFORMATION SUBCOMMIT­ the withholding of information is justified. of the Subcommittee on Government In­ TEE OF THE COMMITTEE ON Gov­ 3. In the event that the Federal Open formation and Foreign Operations of the ERNMENT OPERATIONS, Market Committee refuses to produce re­ House Government Operations Commit­ Washington, D.O., July 20, 1966. quested records, the following legal steps Hon. WRIGHT PATMAN, are available: tee, with regard to the newly enacted Chairman, Committee on Banking and Cur­ (a) Member of the public: When the law freedom of information law, Public Law rency, Washington, D.O. becomes effective (July 4, 1967) any member 89-487. ChA-irman Moss has fought long DEAR WRIGHT: This is in reply to your let­ of the public may · complain to a District and hard to protect the public interest to ter of July 13, 1966, requesting information Court of the United States in the district in get this law enacted. He has been the as to the applicability of Public Law 89- which the complainant resides, or has his leader in this fight and is to be com­ 487, the newly passed "Freedom of Informa­ principal place of business, or in which the mended for his long and .successful strug­ tion" law, to the activities of the Federal agency records are situated. As mentioned Open Market Committee of the Federal Re­ earlier, the court shall review the action of gle for freedom of Government informa­ the agency and shall determine the matter tion. The particular focus of my inquiry serve System. It is my opinion that when · this law becomes effective (July 4, 1967) it de novo. You are respectfully referred to to Chairman Moss concerned the appli­ will apply to the Federal Open Market Com­ subsection (c) of the new act. C81tion of this law to the activities of mittee. Any effort on the part of the Federal (b) The Congress or duly authorized Com­ the Federal Open Market Committee. Reserve System-or any other agency sub­ mittee thereof: As you well know my long­ Chairman Moss has responded to my re­ ject to the law-to impose restrictions on standing position, only the President may quest by stating his belief that "the dis­ the availability of its records would be sub­ withhold documents from the Congress or ject to review by the Federal courts upon from any Committee. The new law does not closure requirements of P~blic Law 89- specifically provide for legal action by Con­ 487 will apply to the Feder.al Open Mar­ complaint of any member of the public. Federal District Courts are authorized to gress or a Committee thereof. ket Committee." enjoin any Federal agency subject to sec­ I am enclosing for your consideration a. I insert this exchange of correspond­ tion 3 of the Administrative Procedure Act copy of the newly enacted Public Law 89-487, ence between myself and Chairman Moss from the withholding of its records and to and I sincerely hope this information will be at this point in the RECORD for the exam­ order the production of any such records of help to you in the very important work improperly withheld from the complainant. you are doing in fulfilling your legislative ination of all Members of the House: duties with regard to the Federal Open HOUSE OF REPRESENTATIVES, The burden wm be on the agency to show why its records must be withheld; this is Market Committee and to the Federal Re­ COMMITTEE ON BANKING AND CURRENCY, serve System in general. washington, D.O., July 13, 1966. a substantial change from existing law whereby individuals seeking government Sincerely, Hon. JoHN E. Moss, records were forced to prove why they JoHN E. Moss, Chairman, Subcommittee on Government needed the records. Chairman. Information and Foreign Operations, It should be noted, however, that the law Mr. Speaker, pursuant to the provi­ Government Operations Committee, contains nine exemptions. The extent to Washington, D.O. which the records of the Federal Open Mar­ sions of the Freedom of Information Act, DEAR CHAIRMAN Moss: I am writing you ket Committee fall within the exemptions, I have written to Chairman Martin of with regard to Public Law 89-487 to deter­ if at all, will be subject to court determina­ the Federal Reserve System requesting mine its application to the activities of the tion. that the minutes of the Federal Open Federal Open Market Committee of the Fed­ In answer to your specific questions, the Market Committee be immediately made eral Reserve System. As you know, this following is submitted for your considera­ available to members of the House Bank­ committee operates to purchase and sell se­ tion: ing and Currency Committee. While I curities in the open market "with a view to 1. I believe the disclosure requirements of recognize, as I stated in my letter to accommodating commerce and business and Public Law 89-487 will apply to the Federal with regard to their bearing upon the gen­ Open Market Committee. The extent to Chairman Martin, that the act does not eral credit situation of the country." To which the agency's records fall within the become effective until July 4, 1967, I have date the activities of the Federal Open Mar­ Act's exemptions is subject to court deter­ nevertheless requested that this infor­ ket Committee have been completely secret, mination. mation be made available without delay. and the records of its actions are not avail­ The "Freedom of Information" law specif­ The will of Congress has been clearly able to either the general public or Con­ ically states that nothing contained therein expressed in the Freedom of Information gress. shall be authority to withhold information Act and no useful purpose can be served It is in this connection, that is the secrecy from the Congress. The bill is specifically by denying to Members of Congress in-· of the Federal Open Market Committee's designed to cover the availability of infor­ operation, that I am most anxious to have mation "to the public." Except for the lan­ formation so pertinent to their delibera­ an expression of your views of the effect of guage referred to in the preceding sentence, tions. Public Law 89-487. it does not deal with relationships between At long last a dangerous obstruction ( 1) Do the disclosure requirements of Congress and Federal agencies. to the legislative process concerning fis­ Public Law 89-487 apply to the heretofore As you know, it has been my long-standing cal and monetary matters will be re­ secret operatiOI.lS of the Federal Open Mar­ opinion that only the President can withhold moved. No longer wm Congress be re­ ket Committee? In other words, under the documents and information in the Executive quired to legislate in these areas with­ provisions of this Act, can the Banking and branch from Committees of Congress. This out having all of the facts available to Currency Committee request the production policy was formulated by Presidertt Kennedy of the Federal Open Market Committee's in a letter to me dated March 7, 1962, and them. The Congress as the representa­ records? confirmed by President Johnson by a letter tives of the people are to be congrat­ (2) Is there any provision in this Act dated April 2, 1965. Since it is my opinion ulated for bringing the imprint of democ­ permitting the President, by Executive Or­ that Executive branch officials below the racy to the operations of the Federal der, to prohibit such disclosure to the Con­ President have no authority to withhold Open Market Committee. gress or a Committee thereof? information from the Congress, I felt it' was (3) In the event that the Federal Open unnecessary in the new law to specifically Market Committee refuses to produce such authorize Committees of Congress to obtain that information which they legally had a HOMEBUILDERS DECLARE H.R. requested information, what legal steps may 14026 URGENTLY· NEEDED (a) a member of the public, or (b) the Con­ right to in the first place. As a private in­ dividual covered by this law, however, you gress or duly authorized Committee thereof Mr. PATMAN. Mr. Speaker, I ask certainly have every right to obtain the docu­ unanimous consent . to extend my re­ take to obtain the production of this in­ ments you are seeking. formation? marks at this point in the RECORD and 2. There is no provision in the new law include· extraneous matter. Mr. Chairman, your consideration and re­ p~rmitting the President, by Executive Order, ply to these questions will be most helpful to prohibit such disclosure to the Congress The SPEAKER. Is there objection to myself and all members of the Banking or a Committee thereof. In fact, as men­ to the request of the gentleman from and Currency Committee in fulfilling our tioned above, tbe law ·specifically says that Texas? . , legislative . duties with regard to the very this seqtion shall pot be autlwrity to with- . There wa& no objection. September 2, 1966 CONGRESSIONAL ·RECORD- HOUSE 21733

Mr. PATMAN. Mr. Speaker, on many the Federal Reserve to establish different from Michigan [Mr. WILLIAM D. FORD] occasions I have taken the fioor urging rates on different types of deposits. may extend his remarks at this point in Passage of this bill would help correct the th~t ~ - taken in actiqn by us here Con­ present mortgage market crisis. the RECORD and include extraneous gress . to correct the devastating effects Sincerely yours, matter. that the tight money, high interest rates RALPH J. DUFFIE, The SPEAKER. Is there objection have infiicted upon our citizens. Each President. -to . the request of the gentleman from day I receive urgent pleas from home­ Oklahoma? builders, homeowners, and savings and TOPEKA, KANS., There was no objection. loan associations urging me to have my August 19, 1966. Mr. WILLIAM D. FORD. Mr. Speak­ bill-H.R. 14026-enacted into law. Congressman WRIGHT PATMAN, er, as we prepare to mark Labor Day, This bill, Mr. Speaker, seeks to eliminate House Office Building, Washington, D .C.: 1966, I would like to take this occasion the grossly unsound savings rate war The Home Builders Assn. of Topeka, Kan­ to pay tribute to the working people of that has placed the homebuilding indus­ sas, appreciates the great service you are the United States, and in particular to try in a serious decline. doing for the Nation in your fight to put organized labor, which has played such Mr. Speaker, I include the following 47'2 -percent ceilings on consumers CD's and a tremendous role in raising the living telegrams and letters urging support for to establish different rates on different types standards of the American worker. H.R. 14026 following my remarks: of deposits and authorized standby control As a member of a coal-mining and to be set by the Federal Home Loan Bank. factory-working family, my life has been UNIVERSAL-RUNDLE CORP., We pledge our continued support to your out­ New Castle, Pa., August 22,1966. standing efforts. closely tied to the welfare of working­ Hon. WRIGHT PATMAN, BENNETT N. BERGGREN, people and I am no stranger to the con­ U.S. House of Representatives, President. ditions under which· American workers Washington, D.C. labored only a generation ago. I do not DEAR CONGRESSMAN PATMAN: I WOUld first KNOXVILLE, TENN., like to thank you for your efforts, and the have to enumerate the benefits which August 19, 1966. organized labor has won for its members, efforts of the Banking and Currency Com­ Congressman WRIGHT PATMAN, mittee, so far ·as a solution to the "tight and for all working people. Every Chairman, House Banking and Currency Member of this Congress, and every money" situation is concerned. I'm sure Committee, Washington, D.C.: you' and your committee are well aware of Congressman PATMAN, I wish to urge you thinking American, knows them well: a the impending disaster facing the Home to support the mortgage release bill, H.R. 5-day, 40-hour week, paid holidays and Bl.lilding industry, due mainly, to the non­ 14026. H.R. 14026, one of our NAHB spon­ vacations, pension rights, life insurance, availabillty of mortgage funds. sored mortgage release bllls, would put a health benefits, unemployment compen­ Universal-Rundle recently took an active 47'2 percent ceiling on consumer type CD's, part in the formulation of five recommenda­ sation, safe and humane working condi­ authorize thP. Federal Reserve to establish tions, to name a few. tions with tlie National Association of Home different rates on different types of deposits, Builders, which, if adopted, could relieve It is true that labor unions alone are and authorize standby rate controls to be set not solely responsible for these gains. this critical situation. These five reconi­ by the Federal Home Loan Bank Board. Your menda tions are: support in behalf of this bill with Congress Liberal legislators, farsighted employers 1. Increase the borrowing authority of is needed to correct the present mortgage and social reformers have been in the the FNMA to finance its secondary market market crisis. vanguard of the fight. But without the operations. BRAD DEAN, hard work, vision, sacrifice and faith of 2. Enable FNMA to provide "Special as­ Chairman, NAHB Convention Committee. sist.ance" to the housing industry by au­ American labor unions--leaders and thorizing $2.5 billion for· purchases of mort­ members--it is doubtful that these ad­ HUNTSVILLE, ALA., vances would have come about as soon gages, in· addition to those purchased in its August 19, 1966. secondary market operation. Representative WRIGHT PATMAN, or as dramatically as they did. 3. Place a 47'2 percent ceiling on non-cor­ House of Representatives, Often, too, we overlook or forget the porate certificates of deposit. Washington, D.C.: part that labor has played in moving the 4. Authorize, and if necessary, direct the On behalf of Home Builders Association of United States toward what President Federal Reser:ve Board to purchase obliga­ Huntsville, Ala., I commend you for the in­ Johnson has called the Great Society. tions of the Federal Home Loan Bank Board troduction of H.R. 14026 and respectfully andFNMA. Without the talents, skills, and muscles urge your continued effort to insure im­ of labor, the discoveries of scienti~ts, the 5. Increase the interest rate on FHA mort­ mediate passage. gages from 5%. percent '(;o six percent. ALAN SPEARMAN, plans and blueprints of engineers would I'm sure that this is a most difficult prob­ President. be useless. lem and that you and your committee are The role of organized labor in bringing doing all possible to find a non-inflationary STATEN ISLAND, N.Y., about social reforms also merits recog­ solution. We, at Universal-Rundle feel that . August 19, 1966. nition. Labor leaders for years have the above recommendations are non-infla­ Congressman WRIGHT PATMAN, spearheaded the battles for such goals tionary and represent and equitable solu­ Chairman of the House Banking and Cur­ as medicare, immigration reform, social tion to the tight-money problem. rency Committee, Washington, D.C.: security, Federal aid to education, con­ Other members of your committee will be The Staten Island Home Builders Associa­ receiving similar letters from their constitu­ tion urges you to support H.R. 14026 to cor· servation, slum clearance, the war on ents and Universal-Rundle employees. reet th~ present mortgage market crisis. poverty and civil rights. We thank you for your assistance and trust ANTHONY DELUCA, I am happy on this occasion to reaffi.rm that some immediate action will be taken, President. my faith and pride in labor, and to ex­ in order to avert a serious recession and an tend to every working man and woman impending disaster to the Home Builders, AUGUST 19, 1966. my sincere best wishes on the celebra­ Manufacturers, and Home Buyers. Representative WRIGHT PATMAN, tion of Labor Day 1966. If Universal-Rundle can assist in any way, House of Representatives, please do not hesitate to advise. Washington, D.C.: Yours very truly, Local savings and loan associations report "THE KEY TO FREEDOM," AN AD­ Mr. B. F. THOMPSON, new deposits down 33 percent in July, and DRESS BY HON. WILLIAM BEN­ Assistant to the President. homebuilding is now more than 50 percent TON, HADASSAH'S 52D NATIONAL below last year. We need your bill 14026 to CONVENTION, AUGUST 16, 1966, establish different interest rates on different BOSTON, MASS. HOMEBUILDERS ASSOCIATION OF types of deposits to permit normal flow of METROPOLITAN WASHINGTON, INC. deposits to saving and loan associations. Mr. ALBERT. Mr. Speaker, I ask Washington, D.C., August 23,1966. F. D. KINDRED, unanimous consent that the gentleman Congressman WRIGHT PATMAN, President, from Indiana [Mr. BRADEMAS] may ex­ Chairman, House Banking and Currency Home Builders Association of Lexington. tend his remarks at this point in the Committee, Washington, D.C. RECORD and include extraneous matter. DEAR CoNGRESSMAN PATMAN: The Home The SPEAKER. Is there objection Builders Association of Metropolitan Wasil.• A TRIBUTE TO THE WORKING PEO­ to the request of the gentleman from ington, Inc., wishes to express . support of PLE-THE ROLE OF ORGANIZED H.R. 14026 _which would put a 4Y2 percent Oklahoma? ceiling on consumer type CD's, aut_horlze LABOR There was no objection. standby rate controls to be set by the Fed­ Mr. ALBERT. Mr. Speaker, I ask Mr. BRADEMAS. Mr. Speaker, one eral Home Loan Bank Board, and· authorize unanimous consent that the gentleman of the most thoughtful and public 21734 CONGRESSIONAL RECORD- HOUSE· September· 2, 1966 spirited citizens of our country 1s the that in Paris, the. home of the world language demand for English fn the new and under­ Honorable William. Benton~ former U.S. of recent centuries. about two-thirds 0: developed eountrie&. Mr-ican cotJntries, even Senator from Connecticut, and holder UNESCO's work ls. now conducted. in English. when they try to ~iriphasize indigenous lan­ of many other omces .in the Government Twenty years ago it was only a. half. TJ::le late guages, tmn to Englfsh aa a language of in-:. of the United States. · Edward Murraw--<>ne ot my successors in structlon-to implement theJ.r e.duc&ttQilal, charge ot the United States Information technological and social development. At present, Senator Benton is se~ving Agency-agreed with me that no objective of Scientists throughout tb..e world inerea.singly as U.S. Ambassador to UNESCO. that agency over the next one hundred years use English, me:rely a.s an example, in Latin America, suddenly acquired a common means of assuring access to a treasure house of communication among men. I suspect language with us and each other. How of man's knowledge about himself-about his that such an effort may pay. off in .benefits would that change our attitudes and their political experiments, his philosophies, and to the developing countries at a far higher conduct? How would it change the outlook his inne:;: human needs." level per dollar than most of our AID pro­ for human survival and human development? Is it not obvious that, if the world is to grams. (The State of Israel, I'm told, has Is there any reasonable choice-except the achieve a peace based on understanding shown what can be accomplished in teach­ common language of English? This question rather than on mutual fear-if it is to solve ing Hebrew to people who have never spoken I hope you will ponder. such universal problems as civil rights and the language-and teaching it quickly, civil liberties-is it not obvious that it must through the ULPAN System.) develop the broadest kind of dialogue among YOUNG AMERICANS SHOULD BE ENCOURAGED TO DICKEY-LINCOLN SCHOOL PROJ­ the peoples of the earth? In the old days TEACH ENGLISH ABROAD such problems were supposed to be ECT-SOME OBVIOUS SHORT­ solved by the diplomats and statesmen (3) That our Administration support and COMINGS while the people hoped the diplomats knew the Congress adopt legislation to encourage what they were doing. Today, with mass young Americans to teach English abroad. Mr. ALBERT. Mr. Speaker, I ask communications, there is a great new dimen­ NDEA loans to college students now are for­ unanimous consent that the gentleman sion to the global dialogue. Is it too much given at the rate of ten percent a year for from Pennsylvania [Mr. CLARK] may ex­ to hope that, through the sheer force of will a maximum of five years if the recipient tend his remarks at this point in the of the peoples of the world, their instinctive engages in teaching after graduation. I sug­ RECORD and include extraneous matter. hope for peace, their love of those things gest that new legislation set a forgiveness The SPEAKER. Is there objection dearest to them-home, family, security, rate of 20 percent for each year (to a maxi­ to the request of the gentleman from freedom-is it too much to hope that there mum of five) that a graduate teaches English Oklahoma? can come a new chance for solutions to in a foreign country. There was no objection. 21736 CONGRESSIONAL RECORD- HOUSE September 2, 1966 Mr. CLARK. Mr. Speaker, as you find an area that already is one of the could not afford appropriations for New know, for several weeks I have been in­ recreation centers of the Nation with England regional projects on the Ap­ serting a number of items in the RECORD plenty of lakes. Another site advantage palachian model because you had already in my contining effort to gain a full and would occur if you could find a north­ done so much for New England. complete study of the Dickey-Lincoln ern site where the ground would be St. Johns is a snare and a delusion School project before we ·proceed to frozen most of the year so that building for the people of New England and a spend some $300 million of the taxpay­ an earthfill dam would create the great­ waste of money ·for every taxpayer in ers money. It has been my view, to date, est engineering challenge. All these the country. that the project does not make a great considerations indicat.e that the site deal of economic sense but as I have pre­ should be in northern Maine. viously stated my effort is not to project Another problem in bringing low-cost LABOR DAY my view upon the entire House but rather power to New England is the question seek to give all o.f us more information. of timing. You can build new capability Mr. ALBERT. Mr. Speaker. I ask Nonetheless. while we await action for using the benefits of new technology, but unanimous consent that the gentleman such a study of the facts I would like to you must decide when you want the proj­ from New York [Mr. MuLTERJ may ex­ submit to the membership my view of ect to be ready. You can have a coal tend his remarks at this point in the. some of the exceedingly obvious short­ fired plant some 3 years after you start RECORD and include extraneous matter. comings of the project. it; you can have a nuclear plant some 4 Th.e SPEAKER. Is there objection It is said that approval of this project years after ordering it; and you can have to the request of the gentleman from will bring lower cost power to New Eng­ a pumped storage facility in 3 to 5 years. Oklahoma? land. I believe it. In fact, anyone with Finally you can can have an earth-filled There was no objection. from $40 to $80 million to spend can dam 7 years after it is authorized and Mr. MULTER. Mr. Speaker, on Mon­ pick up the phone and call one of the after a year or two you can get its reser­ day next the country will be celebrating major suppliers of electrical generating voir filled with water and. begin to gen­ Labor Day as it has done for many years., equipment and get 2- to 4-year delivery erate power. So-you pick the earth-filled Congress, following tradition, will not be in session that day. Hence, I take of a plant. that will bring lower cost dam. this occasion to take note of this great power to New England. By spending less Next you have to decide how you are holiday. than $100 million and waiting 3 years going to distribute the benefits of the The union movement first celebrated you could bring lower cost power to New $300 million of Federal largesse. For this day in 1882 and since 1894 it has England through a steamplant, by spend­ example you figure that the average cost been a legal national day of observance. ing less than $100 million and waiting of a kilowatt-hour of power generated in about 4 years you could bring lower cost New England today is 10 mills and an­ The uniqueness of this great holiday power to New England with atomic other 5 mills get added as distribution can best be expressed in the words of the power. It seems reasonable to expect cost. You know that the New England late Samuel Gompers when he said: that by spending $300 million and wait­ load will about double in 10 years and It Is devoted to no man, living or dead; to ing 7 years that the Department of the that the companies in New England will no sect, sex, race, or nation. It ts founded upon the highest principles of humanity, is Interior could also bring lower cost power be purchasing new capacity which will as broad in its scope as the universe. to New England. permit them to produce power from new However, let us suppose that. you plants at 5 mills. Thus you know that, It is indeed a grand tribute to our wanted to spend as much on power as if nature takes its course, in about 10 country itself as well as to the working possible and get the least benefits. What years, half of the New England power masses who make it great. would you have to do? The first thing would be generated at 5 mills and half you would do is to ignore the hundreds of at 10 mills for an average cost of 7%. millions Congress has appropriated to mills, plus the 5 mills for distribution SCHOOL M~ AND SCHOOL improve the technology of nuclear ener­ costs. Thus if yo.u leave the situation LUNCHES gy. Second, you would ignore the coal alone the cost of power would drop from industry and the railroads that carry 15 mills delivered to 12% mills delivered. Mr. ALBERT. Mr. Speaker, I ask coal-even though coal might be cheaper. The numbers in this example are not unanimous consent that the gentleman To do this you would ignore some of the perfect, but accurately reflect the gen­ from New York IMr. STRATTON} may ex­ recent firm estimates by companies eral problem of New England rates. tend his remarks at this point in the RECORD and include extraneous matter. which sell coal and nuclear-powered gen­ Now if you really wanted to make a erating facilities in order to claim that showing on lowering rates you would The SPEAKER. Is there objection hydropower was cheaper. pass a law requiring the New England to the request of the gentleman from Having decided upon hydro, you would companies to give a preference to some Oklahoma? look for a site that was as far removed groups for the output from their new There was no objection. as possible from the place that you plants. By doing this over a 10-year Mr. STRATTON. Mr. Speaker, yes­ wanted to market your power. For ex­ period you could give half the people of terday this House passed and sent to ample, if you expected to market much New England a 10-mill delivered rate the Senate the Child Nutrition Act of of your power in Boston, you could locate while leaving the others with the 15-mill 1966. The major portion of this legisla­ at the northern tip of Maine or-to be rate. You can .also try to achieve this tion was a continuation of the very suc­ equally far away-you could choose result indirectly by having the Federal cessful and very popular school milk pro­ Rochester, N.Y., Elkton, Md., or Dover, Government, instead of the companies, gram, a continuation provided for in Del., instead. This has several advan­ build some of the new capacity leaving legislation which I introduced earlier this tages. It lets you spend some $70 million the companies and their customers with year as H.R. 13439, the Special School for transmission lines which can be the older higher cost facilities. Then Milk Act of 1965. I was, of course, counted into the cost of power. Second, you could market the power from the pleased to see the substance of my bill it lets you lose over 5 percent of your new Government built facilities to a few passed by the House in this new legisla­ power through transmission line losses. preference customers and even if your tion. Having decided upon a hydro installa­ costs were higher per kilowatt-hour It merely reflects the wishes and the tion far removed from your load centers, than those which the companies could feelings of the great majority of the you must then pick a site. The first have done the same thing for, you could people 1 have the honor to represent in requirement is that the area be sparsely claim you were saving New England cus­ Congress, as demonstrated·by the follow­ populated. This insures that you will tomers money. · ing thoughtful editorial on school milk have minimal flood control benefits and · When you finished all this you would and school lunches which, appeared in that the project: wil~ be far enough from be able to convince some people that you the Worcester Times of Worcester, N.Y., population centers so that few will be were doing them a great favor by spend­ of August 11, 1966. tempted to use the lake to be created ing $300 million for them. Then, look­ I might point out, Mr. Speaker, that by it for recreationai purposes. · You ing over your tight budget. you could ex­ this legislation, which enacted my bill, can make doubly sure of this, if you can plain for_the rest of the decade why you completely reverses and nullifies the Septe'f!tber 2, 1966 CONGRESSIONAL RECORD_-HOUSE 21737 President's earlier proposal to reduce the Lieber foresaw the day when Hoosiers An honorary degree of doctor of laws was school milk and school lunch programs. would flock to the parks by the thousands. conferred on him by Wabash College in 1918 . .In 1942 he wrote: "No, our parks and pre­ As .a member of the National Historic Sites [From the Worcester Times & Schenevus .serves are not mere picnicking places. They Committee of the U.S. Department of the In­ Monitor, Aug. 11, 1966] · .are a solace to the aged and an inspiration terior, Lieber gained recognition of Indiana's MILK AND SCHOOL LUNCHES to the young. When the congestion of an Lincoln State Park and the Nancy Hanks Early this year, President Johnson re­ increasing population in days to come has Memorial as a national historical site. quested that milk money for the nation's changed everything but these primitive For 52 years he was a member of the Amer­ school children be cut from $103 million to places, our state parks will be one of the most ican Turners. $21 million. At the same time, he asked priceless possessions of our people." At Turkey Run State Park in December, Congress to slash $19 million from the $157 Born at St. Johann-Saarbracton, Germany, 1941, Lieber was lauded at a dinner meeting million school lunch program. on Sept. 5, 1869, Lieber was attending mili­ celebrating the 25th anniversary of the Since the Administration maintains the tary school in Germany at an early age when Indiana State Park system. war in Viet Nam can be waged wit hout af­ he acquired a far-visioned conception of the His one book, "American's Natural Wealth" fecting the nation's way of life, we fail to limitations the future would hold for him was published in 1942. see why it should be used as an excuse to under the Prussian regime. In his last days Lieber went with his wife force needy youngsters to pull their belts a Realizing the spirit of change had come to McCormick's Creek Canyon State Park, the little tighter or deprive those not quite so to him early enough for him to benefit by first park acquired by the state. There he needy of important diet supplements. it, members of his family risked their own died at 74, on April 15, 1944. · School lunch prices have gone up in many lives to help him to escape from the He had told some friends where he wanted areas because of a steep decline in the free country. his ashes to be buried, at Turkey Run, on a surplus foods furnished by the governmep.t. His first move was to England where, dur­ knoll, in a group of trees, near an old church For families with several children this has ing a brief residence, he developed a strong and Turkey Run Inn. His wish was respected. created a problem. If anything, lunch sub­ sympathy for under-privileged people and His ashes were placed in a memorial plot sidies should be increased to take up the became imbued with civic consciousness. below a huge boulder brought from the surplus-foods gap. Our dairy farmers of the Then he decided to see something of America Dunes State Park. East-Central New York area will surely agree and arrived in the United States in 1890, On the crest of a high ridge near beautiful with this. intending to spend about a year in this Sunset Point there was later unveiled a bust There is little doubt as to the popularity country. honoring Richard Lieber. of milk and lunch subsidies for our young­ He is vaguely reported to have done some "America's Natural Wealth" embodied sters. There are many places where much exploring in the West but did not lose much much of what he had learned as head of the more money could be saved without deny­ time in making his way to Indianapolis, be­ Conservation Department in Indiana. The ing needy school children adequate food. cause his "beloved" uncle, Herman Lieber, book was written about 1940 at Whip-Poor­ had come here after the 1848 revolution in Will Lodge, a log cabin overlooking PeacefUl Germany. Valley and Jackson Branch, which had been INDIANA INDEBTED TO RICHARD Evidently Richard did not remain long on his summer home in Brown County since his first job in a local hardware and general 1911. LIEBER store, as that job was only a stepping stone. Richard Lieber voiced a beautiful farewell Mr. HARVEY of Indiana. Mr. Speak­ How the transition came about is not clear in these words: er, I ask unanimous consent to address but his precocity, early education, artistic "No one of the millions who enjoy our state the House for 1 minute and to revise inclination., and musicianship were the parks or have benefited from better practices and extend my remarks. means of .his holding a position as music and in conservation owes me anything. The SPEAKER. Is there objection art critic of the former Indianapolis Journal "On the contrary, I am in their debt that for eight years. they have permitted me, a chance immigrant, to the request of the gentleman from He became a naturalized citizen in 1901. to do what he wanted to do. Only in these Indiana? Richard Lieber first became interested in United States could a thing like that have There was no objection. conser:vation when he attended a White happened." Mr. HARVEY of Indiana. Mr. Speak­ House conference under President Theodore er, I have asked for this time because I Roosevelt in 1908. wish to pay tribute to one of Hoosier's In 1915, as chairman of the Indiana State SPECIAL ORDER GRANTED great men, Richard Lieber. As a young Park Committee appointed by Governor Sam­ uel M. Ralston, Lieber led the movement to By unanimous consent, permission to German immigrant, Richard Lieber bring about the establishment of Indiana's came to the United States in 1890 and address the House, following the legisla­ first state parks, which were McCormick's tive program .and any special orders in a short time made himself one of the Creek Canyon and Turkey Run. outstanding authorities on conservation In 1919 aU departments of the state gov­ heretofore entered, was granted to Mr. in my State. In 1919, while still a very ernment concerned with conservation were HANNA (at the request of Mr. ALBERTi, young man, he was appointed head of united in a State Conservation Departmen-:-, for 60 minutes, on TUesday next; to re­ the State Park System of Indiana and of which Lieber was elected to the fulltime vise and extend his remarks and to in­ he became, indeed, the father of our position of director. He servecl14 years until clude extraneous matter, and that fol­ he resigned in 1933. lowing his remarks all Members may wonderful park system. Under Lieber's leadership, the number of It is fitting that at this time we should have 5 legislative days in which to ex­ Indiana state parks rose to 10; historic sites tend their remarks. give recognition to this great man and and monuments, six; state forests, four; game all that he developed for our State. I preserves, three; fish hatcheries, five. make this statement at this time be­ Lieber was a founding member, in asso­ cause in celebrating the sesquicentennial ciation with Stephen T. Mather, of the Na­ EXTENSION OF REMARKS of Indiana's birth, we should recognize tional Conference of State Parks, organized in 1916. He was president of the conference By unanimous consent, permission to Colonel Lieber as one of Indiana's great­ from 1930 to 1939, thereafter chairman of the extend remarks in the CONGRESSIONAL est and outstanding citizens who con­ board. He became one of the nation's lead­ RECORD, or to revise and extend remarks tributed so much to our heritage. ers in parks and conservation. was granted to: An article by Harold Sabin in the In­ He was co-founder of the Indiana Lincoln (The following Member (at the re­ Union, which sponsored the Lincoln dianapolis Star on August 28 is as quest of Mr. DEL CLAWSON) and to in­ follows: Memorial at Lincoln City. When Governor Henry F. Schricker set up clude extraneous matter:) STORIES OF STATE MARK SESQUICENTENNIAL; .the Indiana Economic Council, formed by Mr. CONTE . INDIAN A INDEBTED TO RICHARD LIEBER FOR EXCELLENT PARK SYSTEM the 1943 Indiana General Assembly as a repeal certain acts relating gage Act, 1920, relating to fees for certifica­ to containers for fruits and vegetables, and Under clause 2 of rule XIII, reports of tion of certain documents, and for other pur­ committees were delivered to the Clerk for other purposes; to the Committee on poses; for printing an~ reference to the proper Science and Astronautics. H.R. 8989. An act to promote health and S. 1515. An act to include the construc.tion safety in metal and nonmetallic mineral in­ calendar, as follows: of an additional span as part of the au­ dustries, and for other purposes; Mr. FEIGHAN: Committee on the Judi­ thorized reconstruction, enl·argement, and H.R. 10656. An act for the relief of Kim­ ciary. S. 2945. An act for the relief of Dr. extension of the bridge across the Mississippi berly Ann Yang; Jaime E. Condom Valera (Rept. No. 1979). at Rock Island, Ill.; to the Committee on H.R. 10990. An act for the relief of Maj. Referred to the Committee of the Whole Public Works. Alan DeYoung, U.S. Army; House. S. 2893. An act to amend section 208(c) of H.R. 11038. An act for the relief of Mrs. Mr. F'EIGHAN: Committee on the Judi­ the Interstate Commerce Act to provide that Edna S. Bettendorf; ciary. S. 2946. An act for the relief of Dr. certl:(lcates issued in the future to motor H.R. 11251. An act for the relief of Hubert Mario v. Machado Espinosa (Rept. No. 1980). common carriers of passengers shall not con­ J. Kupper; Referred to the Committee of the Whole fer, as an incident to the grant of regular H.R. 11271. An act for the relief of certain House. route authority, the right to engage in special individuals employed by the Department of Mr. FEIGHAN: Committee on the Judi­ or charter operations; to the Committee on Defense at the Granite City Defense Depot, ciary. S. 3189. An act for the relief of Dr. Interstate and Foreign Commerce. Granite City, Ill.; Alonso Portuondo (Rept. No. 1981) . Re­ S. 2979. An act to extend coverage of the H.R. 11347. An act for the relief of Maria ferred to the Committee of the Whole House. State Technical Services Act of 1965 to the Anna Piotrowski, formerly Czeslawa Marek; Mr. FEIGHAN: Committee on the Judi­ territory of Guam; to the Committee on In­ H.R. 11844. An act for the relief of Maria ciary. S. 3272. An act for the relief of Dr. terstate and Foreign Commerce. Giuseppina lnnalfo :!'eole; Jacobo Albo Maya (Rept. No. 1982). Re­ S. 3230. An act to authorize the Board of H.R. 12328. An act to extend for 3 years the ferred to the Committee of the Whole House. Regents of the Smithsonian Institution to period during which certain extracts suit­ negotiate cooperative agreements granting able for tanning may be imported free of concessions at the National Zoological Park duty; PUBLIC BILLS AND RESOLUTIONS to certain nonprofit organizations and to H.R. 12461. An act to continue for a tem­ accept voluntary services of such organiza­ porary period the existing suspension of duty Under clause 4 of rule XXII, public tions or of individuals, and for other pur­ on certain istle; bills and resolutions were introduced and poses; to the Committee on House Adminis­ H.R. 12950. An act for the relief of Kazi­ severally referred as follows: tration. mierz Cashmer Krzykowski; and By Mr. EVERETT: S. 3298. An act to amend the Federal Haz­ H.R. 14514. An act for the relief of Vernon H.R. 17520. A bill to amend title 38 of the ardous Substances Labeling Act to ban M. Nichols. United States Code so as to increase the hazardous toys and articles intended for chil­ rates of pension payable to certain veterans dren, and other articles so hazardous as to and their widows, and for other purposes; be dangerous in the household regardless of ADJOURNME:iT to the Committee on Veterans' Affairs. labeling, and to apply to unpackaged articles By Mr. IRWIN: intended for household use, and for other Mr. ALBERT. Mr. Speaker, I mcve H.R. 17521. A bill to amend title 38 of the purposes; to the Committee on Interstate that the House do now adjourn. United States Code so as to increase the rates and Foreign Commerce. The motion was agreed to; accordingly of pension payable to certain veterans and S. 3389. An act to provide for the establish­ (at 12 o'clock and 9 minutes p.m.), un­ their widows, and for other purposes; to the ment of the Joseph H. Hirshhorn Museum der its previouc order, the House ad­ Committee on Veterans' Affairs. and Sculpture Garden, and for other pur­ By Mr. MOORHEAD (by request): poses; to the Committee on Public Works. journed until Tuesday, September 6, H.R. 17522. A bill to amend the Internal S. 3715. An act to improve the aids to 1966, at 12 o'clock noon. Revenue Code of 1954 with respect to the navigation services of the Coast Guard; income tax treatment of business develop­ to the Committee on Merchant Marine and ment corporations; to the Committee on Fisheries. EXECUTIVE COMMUNICATIONS, Ways and Means. ETC. By Mr. SLACK: H.R. 17523. A bill to amend title 38 of the SENATE ENROLLED BILL SIGNED Under clause 2 of rule XXIV, executive United states Code so as to increase the rates communications were taken from the of pension payable to certain veterans and The SPEAKER announced his signa­ Speaker's table and referred as follows: their widows, and for other purposes; to the ture to an enrolled bill of the Senate of 2705. A letter from the Chairman, Federal Committee on Veterans' Affairs. the following title: Communications Commission, ·transmitting By Mr. BENNETT: S. 2858. An act to amend section 502 of a report of backlog of pending applications H. Res. 1013. Resolution creating a Select the Merchant Marine Act, 1936, relating to and hearing cases, as of July 31, 1966, pur­ Committee on Standards and Conduct; to construction differential subsidies. suant to the provisions of Public Law 82- the Committee on Rules. 554; to the Committee on Interstate and By Mr. POWELL: Foreign Commerce. H. Res. 1014. Resolution to provide for consideration of the bill (H.R. 15111) to pro­ ENROLLED BILLS SIGNED 2706. A letter from the Commissioner, Im­ migration and Naturalization Service, De­ vide for continued progress in the Nation's Mr. BURLESON, from the Committee partment of Justice, transmitting copies of war on poverty; to the Committee on Rules. on House Administration, reported that orders suspending deportation, as well as a list of the persons involved, pursuant to that committee had examined and found PRIVATE BILLS AND RESOLUTIONS truly enrolled bills of the House of the the provisions of section 244 (a) ( 1) of the Immigration and Nationality Act of 1952, as Under clause 1 of rule XXII, private following titles, which were thereupon amended; to the Committee on the Judiciary. signed by the Speaker: 2707. A letter from the Commissioner, Im­ bills and resolutions were introduced and H.R. 2349. An act for the relief of Robert migration and Naturalization Service, De­ severally referred as follows: Dean Ward; partment of Justice, transmitting copies of By Mr. RONAN: H.R. 3671. An act for the relief of Jo­ orders suspending deportation as well as a H.R. 17524. A bill for the relief of Irene sephine Ann Bellizia; list of the persons involved, pursuant to the Markopoulos; to the Committee on the Ju­ H.R. 3076. An act for the relief of Lourdes provisions of section 244(a) (2) of the Im­ diciary. S. (Delotavo) Matzke and Yusef Ali Chou­ migration and Nationality Act of 1952, as •• .... II man; amended; to the Committee on the Judiciary. H.R. 4075. An act for the relief of John F. 2708. A letter from the Commissioner, Im­ Reagan, Jr.; migration and Naturalization Service, De­ SENATE H.R. 4861. An act to direct the Secretary partment of Justice, transmitting reports of the Interior to convey certain lands in concerning visa petitions approved, accord­ FRIDAy' SEPTEMBER 2, 1966 Boulder County, Colo., to W. F. Stover; ing certain beneficiaries third preference and H.R. 6606. An act for the relief of Li Tsu sixth preference class~cation, pursuant to The Senate met at 9 o'clock a.m., and (Nako) Chen; the provisions of section 204(d) of the Im­ was called to order by the Honorable H.R. 7141. An act for the relief of Ronald migration and Nationality Act, as amended; HARRY F. BYRD, JR., a Senator from the Whelan; to the Committee on the Judiciary. State of Virginia. September 2, 1966 CONGRESSIONAL RECORD- SENATE 21739 DESIGNATION OF ACTING PRESI­ from the state of Virginia, to perform the ate stands adjourned until Tuesday noon . DENT PRO TEMPORE duties of the Chair during my absence• next. CARL HAYDEN, The legislative clerk read the following President pro tempore. letter: · · U.S. SENATE, Mr. BYRD of Virginia thereupon took ADJOURNMENT TO TUESDAY PRESIDENT PRO TEMPORE, the chair as Acting President pro tem- Thereupon (at 9 o'clock and 18 sec- Washington, D.C., September 2,1966. pore. onds, a.m.) the Senate adjourned until To the Senate: Being temporarily absent from the Senate, The ACTING PRESIDENT pro tem- Tuesday, September 6, 1966, at 12 o'clock I appoint Hon. HARRY F. BYRD, JR., a Se~ator pore. Under its previous order, the Sen- meridian.

EXT ENS I 0 N S 0 F. REM A R,K S

Industry Assistance in Slum Rehabilitation tenements did little to improve them During the progress of finding, acquir­ essentially because there was a lack of ing, and rehabilitating the first struc­ EXTENSION OF REMARKS know-how in the field of tenement re­ ture, constant cooperation with FHA of­ OF habilitation. To whom could they turn ficials, local, and central, was carried for advice on financing, on clearing viola­ out, even though no FHA mortgage in­ HON. JOHN M. MURPHY tions, on changes in apartment arrange­ surance or other commitments were OF NEW YORK ments? Where could they find the sought for that particular building. This IN THE HOUSE OF REPRESENTATIVES architect who was interested in their was done purposely with the objective mundane buildings? Where were the that both the company and FHA would Friday, September 2, 1966 contractors skilled in the rebuilding of be able to get an overview of how a pri­ Mr. MURPHY of New York. Mr. such property with ingenuity and with vate owner, with financing available, Speaker, all thinking citizens are aware speed? would proceed, relying only on the vari­ of the growing threats to our social Although the answers to some of these ous local and State means of assistance structure inherent in the festering slums questions could be sought at City hall or open to him. · of our great cities. One might say that from the local FHA officials, the owners However, such an owner is by far in therein live a majority of the unfortu­ of such disenchanted properties were the minority. Thus, on the remaining nate, the poor and the unwanted mortals hesitant to ask--or unable to face up to buildings of the block, United States in this great country of ours. Yet, to a the task without lots of moral and other Gypsum is utilizing all FHA and other degree, this not true, because the objec­ more tangible supports. Therefore, the Federal and local programs available to tives of much recent legislation are United States Gypsum Co. decided that each building. All the data being de­ directed to letting these folks know that its best contribution would be to find a veloped by United States Gypsum will be they are wanted; it is not being "poor" very troubled area, acquire the properties made readily available to all segments of that keeps them in these troubled en­ and use tt... em as demonstration rehabil­ the economy wishing to be informed or to vironments. It is just that there gen­ itation projects, one by one, of the ways participate in additional projects. By erally is no better place open for them and means open to the owners to achieve so doing, they hope further to demon­ to go. a result which would be not only of strate to other owners, and hopefully to Various acts we have passed in Con­ sociological value, but which, moreover, other industrial firms, the many assist­ gress in recent years are aimed at estab­ would help them to get a better rate of ances available to them to obtain not lishing the means whereby the housing return, a better rate of profit, from their only their corporative objective of mak­ ills of these neighborhoodS can be added investment than they were getting ing a reasonable profit but also to par­ lessened and. the spiritual and social from their devaluating investments in ticipate in a campaign whose results will well-being of their residents substantially existing, extremely substandard units. not only refurbish the buildings but also improved. A neighborhood of East Harlem on rekindle the light in the eyes of their We all recognize that this is a big 102d Street in New York City was selected residents. task and that all help possible to get as being representative of a typical prob­ And so, I feel it is most worthy that "on with the job" should be sought and lem area. The company acquired first this admirable example of the coopera­ gratefully accepted. We should heartily one building at 307 East 102d Street, but tive effort amongst the United States encourage the cooperation of all seg­ was careful to take options on the rest Gypsum Co., the city of New York, and ments of the economy to help stimulate of the buildings on its side of the block the agencies of the U.S. Government be ways and means to obliterate this blight since it was increasingly apparent as pointed to with pride as being truly which exists in so many areas. And, Mrs. Hortense Gabel-then commis­ American and that these accomplish- thus, it is worthy to note the attention sioner of rents and rehabilitation for the . ments be spread upon the records of this which recent legislation has directed to city of New York-urged that a whole body, both in appreciation and also &.s the rehabilitation of blighted tenement ''social block" be made part of the dem­ an incentive and a challenge to stimulate areas, rather than the destruction of the onstration. a tremendous increase in such joint ac­ buildings and the dispersion of their Some 6 months ago, the first building tivities and thereby materially assist in tenants in order to build new, high-rise was completed and immediately fully alleviating these troubled environments. buildings; oft-time tainted with a stigma rented to 24 families who felt only about of class due to their tenant income a year or so ago that they were "un­ limitations. wanted." All .of them came from the However, it is even more significant to same block, and all of them are glad to "Wonderful Wisconsin Week" realize that through the efforts of one pay the rents which have been increased major building materials manufacturer, commensurate with a building which EXTENSION OF REMARKS private industry is putting still another now boasts of completely new walls, ceil­ OF shoulder to the wpeel to help get real ings, bath and kitchen fixtures, windows, progress rolling in this rehabilitation, so doors, plumbing, heating, and the whole HON. HENRY S. REUSS badly needed in such slum areas. In­ brightly painted inside and out. Even OF WISCONSIN trigued by the requests of FHA, the a garbage chute was installed. IN THE HOUSE OF REPRESENTATIVES United States Gypsum Co. made a study They are so proud of what they now of some of the troubled areas in New have that they have established their Friday, September 2, 1966 York City and elsewhere. As they delved own block . captain to help do some of Mr. REUSS. Mr. Speaker, Wiscon­ deeply into the many facets of the prob­ those necessary jobs of reporting needs sin's Governor, Warren P. Knowles, has lem they; became convinced that the for discipline which would be impossible proclaimed September 18 through 24, private owners of many of the dilapidated for the city police to achieve. 1966, as "Wonderful Wisconsin Week." 21740 CONGRESSIONAL RECORD- SENATE September 2, 1966 His action underlines the importance of knowledgeably in reaching the decisions ments of any other in the past. I think this new program which will salute vir­ which we in this body are called uJ)on any objective assessment of the bills that tually every sector of Wisconsin's work to make as part of the legislative were ·adop·ted will clearly show that tre­ and life. This promotional effort, the process. mendous legislative strides forward were product of 2 years of imaginative plan­ So I am deeply honored to salute the made in practically all the basic areas ning, will be led by 40 local chambers of working people of this country on this of human needs, human rights, human commerce as well as several statewide 72d National Labor Day observance and development, economic stimulation and organizations. to acknowledge my gratitude and re­ conservation of our natural resources. "Wonderful Wisconsin Week" sets it­ spects to the free labor movement in HUMAN NEEDS self three aims: the United States, both as a personal High on any list of approved measures First, to call the attention of America beneficiary and as a citizen who shares in the area of human needs, we would to Wisconsin's resources and citizens; in the general welfare and prosperity of have to mention medical care for the second, to add another impulse to Wis­ this great land to which labor has con­ aged; increased benefits and expansion consin's vigorous economic life; and tributed so much. of our social security laws; extending the third, to increase the appreciation of provenly e:tiective projects of the anti­ Wisconsin's citizens to the assets of their poverty program; the provision of Fed­ State. eral assistance in the elementary grades The theme of "Wonderful Wisconsin A Report to the People to educationally deprived children in the Week" is, appropriately, "We like it lowest income families; the creation of here." Its symbol is "Bucky Badger," EXTENSION OF REMARKS a new Administration on Aging; new the cheerful and plucky little animal OF . housing legislation; extension of the spe­ which was once merely a sport symbol. cial school milk-lunch program; expan­ Its program each day will salute a special HON. HAROLD D. DONOHUE sion of the manpower development and segment of Wisconsin's life: heritage, OF MASSACHUSETTS training program to assist the unem­ education, and youth, goverr.ment, in­ IN THE HOUSE OF REPRESENTATIVES ployed to learn new skills to qualify dustry and labor, and hospitality. To Friday, September 2, 1966 them for new jobs; and the approval of celebrate them, civic-minded organiza­ a 3-year program of Federal grants to tions will organize pageants, exhibi~s. Mr. DONOHUE. Mr. Speaker, as has establish a series of regional medical cen­ and award ceremonies to honor out­ been my custom throughout my past ters throughout the country to fight the standing citizens. years of service here, I desire to include three worst afflictions of our modern so­ l at this time, a summary account, thus ciety-heart disease, cancer, and stroke. far, of my activities and speeches during this 89th Congress. HUMAN RIGHTS Labor Day-1966 A MORAL OBLIGATION Of course as soon as we start to discuss In my conscientious conviction, the the area of human rights, we haye to EXTENSION OF REMARKS immediately emphasize the enactment Biblical mandate "to render an account of last year's historic voting right meas­ OF of thy stewardship" imposes upon every ure which provides that every citizen responsible public officeholder a moral HON. SILVIO 0. CONTE obligation. It is an obligation that I have anywhere in this country can exercise, OF MASSACHUSETTS as fully and freely as is humanly possible, consistently attempted to fulfill. his privilege to participate in all public IN THE HOUSE OF REPRESENTATIVES It is obviously impossible to cover the elections. Also in this area to imple­ Friday, September 2, 1966 entire record in view of space restriction regulations and also, because, of course, ment and expand such rightful and Mr. CONTE. Mr. Speaker, I am this Congress has not yet ended its work. essential objectives as fair employment pleased and proud to join with my col­ However, I shall, herein, try to present practices, equal employment opportun­ leagues in this body and my countrymen and reveal my personal pronouncements ities, the unemployment insurance pro­ throughout the United States in paying and actions upon some of the more im­ gram, equal wages for similar work, the just and fitting tribute to the working portant and more widely publicized leg­ so-called equal rights for women amend­ men and women of America and to the islative issues that have so far occurred ment; and, in this category, I think we great labor movement to which they would have to include the immigration in this 89th and recent Congresses. reform bill designed to eliminate the dis­ belong. Mr. Speaker, there follows, first, a gen­ There can no longer be any question criminatory national' origins quota sys­ eral review of the extraordinary legisla­ tem from our immigration laws. in the minds of any of us that the free tive accomplishments of this Congress, labor movement, armed with the basic and thereafter, under appropriate sub­ HUMAN DEVELOPMENT principle of collective bargaining, has ject heading, a concise review of extracts In the area of human development we been at the very core of our unmatched from the speeches and remarks I made, would have to give prominent place to standard of living. Organized labor has, on particular occasions, before congres­ those measures enacted to provide, ex­ as much as any factor in our national sional committees and in the House tend, and expand the Federal student character, brought new dignity to the Chamber, which reveal my convictions loan and scholarship program to a:fiord workingman as well as security and the and actions on some of the more promi­ every qualified student a chance to con­ luxury benefits of a prosperous and ex­ nent and outstanding legislative issues tinue his higher education if he so de­ panding economy. that were presented and debated: sires; higher educational facility pro­ And, just as its counterpart organiza­ GENERAL SUMMARY grams; library services to greater num­ tions on the side of management, orga­ bers of our citizens; a new GI benefits nized labor has broadened its horizons THE OVERALL PICTURE program; the vocational rehabilitation and passed on the benefits of its strength Mr. Speaker, most independent au­ program with special consideration and and influence in other fields, such as edu­ thorities appear to agree that this 89th assistance for the disabled veterans and cation, community improvement, and Congress has been the most productive in the mentally retarded; enlargement of health. all of our national legislative history. the war orphans educational assistance I have always been proud and grateful ­ Unquestionably it has been the most con­ program; hospital construction and im­ for the experience I had as a skilled sistently industrious and effective of any provement; food for freedom; Child laborer in the days prior to World War in which I have been privileged to serve. Nutrition Act; highway safety regula­ II and as a contributor to and benefactor However, really meritorious legislative tions; juvenile delinquency controls; and of the organized trade union movement. industry and effectiveness are a~d should the National Foundation on the Arts and It has been an invaluable asset to me in be more truly judged by quality and Humanities. . later years. as I entered. public life. It beneficial range than merely time length has provided me with a unique insight and quantity. It is exactly by these ECONOMIC STIMULATION to the problems and the power of the standards of real substance and great na­ In the economic field, we place fore­ labor movement and, I have no doubt, tional impact that this Congress seems to most measures adopted to provide and enables me to judge more objectively and have widely surpassed the accomplish- establish the ·Public Works and Eco- September -2, 1966 CONGRESSIONAL RECORD- SENATE 21741 nomic Development Act granting assist­ that hitherto seemed always to favor the dent and your government to exercise re­ ance to economically distressed regions; wealthy and further oppress the poor. . lentless vigilance in preventing extravagant t think that most of our fellow Americans and wasteful exp.endi tures of. Federal funds, the Fair Labor Standards Act . expan­ wilf be very glad to observe a more positive particularly in our derense and research· pro­ siori; the Federal Salary Adjustment attitude in our foreign policy and more hope­ grams; and in sensibly suspending, elimi­ Act; the State Technical Services Act to ful signs of our determination to provide for­ nating, and reducing expenditures wherever make. the ·findings of modern · science ward-looking leadership to underdeveloped possible in all programs not now essential to and technology more readily available to countries in their and our everlasting strug­ the preservation and progress of our national American industry and commerce; truth gle to conquer the age-old enemies of us safety, health, and development. In brief, in packaging for consumer guidance; all-tyranny, poverty, disease, and war it­ while exercising their spending authority, major improvement and expansion in self. the President and the Congress should re­ Mr. Speaker, the t}.rgency of sensible re­ main constantly mindful every hour, more the loan procedures and amounts avail­ striction and reform in the creation and emphatically than ever before, that each and able to small business; a new Depart­ application of our foreign aid programs has every penny spent comes out of the hard ment of Transportation; expanded Fed­ been obvious for a long time. The sooner earned and highly taxed wages and profits of eral highway system; interest rate ad­ we respond to that urgency the more eco­ the average American working man and busi­ justments·; additional loan funds for nomical and efficient our programs will be, ness, and they should insure, therefore, there home buyers; and approval of a Federal the more universally respected we shall be­ is a full return for every dollar expended. program of research and development come, and the more persuasive we may be in That is the type of fiscal responsibility our in high":'speed rail transportation, so convincing the Communist aggressors in citizens are owed and that must be projected Vietnam to accept our repeated appeals to if oru economy is to endure. vitally important to my own home State negotiate for an honorable and lasting peace. and region. SOCIAL SECURITY ExPANSION AND MEDICARE­ CONSERVATION AND NATURAL RESOURCES THREE PRIMARY GOALS: PEACE, INFLATION AMERICA'S ANSWER TO COMMUNIST PROPA­ This Congress further devoted special CONTROL, FISCAL RESPONSmiLITY GANDA attention to the conservation of our nat­ Mr. DoNdHUE. Mr. Speaker, ·despite the Mr. DONOHUE. Mr. Chairman, it is my very President's most earnest urging, and con­ deep and earnest conviction that H.R. 6675 ural resources by extending, preserving, stantly repeated invitation, the Colllll).unist should be overwhelmingly approved. and authorizing new measures on water aggressor in Vietnam, up to this hour, obvi­ In a prudent comprehensive design this quality- control and development; ex­ ously and regretfully does not yet desire to sit measure projects three new programs for panding recreation facilities and wild­ do:wn with our representativ~ to work out health insurance and medical care for the life protection in connection with water­ an equitable and peaceful settlement of the aged under the Social Security Act by es­ shed projects; conversion of saline military action there. tablishing, first, a fundamental hospital in­ water; water pollution control; highway It very clearly appears that they still hope surance plan to help meet the burdensome beautification; and air pollution re­ to obtain by continuing aggression, a com­ costs of hospital and posthospital treatment; plete and open humiliation of the United second, it establishes a voluntary plan search. States which will not only require us to pull through which doctors' and other medical PATRIOTIC NONPARTISAN COOPERATION out of Vietnam, but will shatter our future services are paid for by monthly premiums Mr. Speaker, right here I would like position and prestige in all of Asia and prove of $3 matched by an equal Government pay­ to particularly emphasize what I have that the Communist-inspired so-called ment; thirdly, it establishes an expanded "wars of liberation" are actually a new tech­ Kerr-Mills program for the need which will so often stated in the past, that great nique for their eventual conquest of the combine all the existing medical programs credit for the tremendous recCird of ac­ whole free world. for this group into a single new program complishment in this 89th Congress must Under these circumstances we can, as with greater Federal financial participation. truly be attributed to the patriotic non­ most authorities recommend, only and re~ This measure before us also is designed to partisan cooperation of many Members gretfully stand our ground in Vietnam while, more realistically improve our current social in the minority party without whose ef­ at the same time, we renew our intense re­ security and public assistance programs. The fective help numerous measures and pro­ lentless pursuit of every possible avenue, provision to grant a 7-percent increase in short of dishonor, to persuade the Commu­ social security benefits not only takes into grams of vital national importance could nist powers to accept, at the earliest moment, account the advanced living costs that have not have been achieved, particularly the President's appeal to stop the military occurred over the past several years but it those measures involving historic ad­ action and begin negotiations for peace. will also help to finance the cost of the new vances in civil and voting rights for all Mr. Speaker, as the President has recently voluntary supplementary insurance plan. In­ our citizens and greater educational op­ emphasized, the problem of insuring the deed a special phase of the bill is to permit portunities for all our children. continuing strength and stability of our an automatic $3 a month deduction from economy at a time of unprecedented pros­ the social security benefits if the individual TRUTH FROM THE RECORD-SPECIAL REPORT perity, in a complex society additionally af­ chooses such coverage. A FOREIGN POLICY BASED ON SELF-INTEREST fected by the conduct of a military engage­ Other vitally important features of this TO INSPIRE SELF-HELP ment abroad is indeed a challenging one but measure are, in my judgment, the continua­ Mr. DoNoHuE. Mr.· Speaker, as we ap­ the necessity of meeting that challenge is tion of benefits for children attending school proach consideration, again, of the challeng­ imperative for our survival and progress. To beyond the age of 18 up to the age of 22, as ing subject of foreign aid and assistance I meet and overcome the problem will require well as the desperately needed liberalization should like to repeat and emphasize my past the fullest cooperation, with the government, of the earnings limitation, so long overdue. convictions and urgings that the time is long of every individual in and every segment of Mr. Chairman, in the firmest belief that overdue for these programs to be sensibly our society and it will involve the patriotic this measure is "good for all Americans" I based upon the principles of American self­ acceptance of the fullest measure of organi­ urge my colleagues here to resoundingly interest and the demonstrated willingness of zational discipline and personal self restraint. adopt this landmark legislation without fur­ the recipients to help themselves. The responsibility of our President and our ther delay. I very strongly feel that most American Government is to recommend and effect rea­ taxpayers firmly believe that the so-called sonable pr()grams of restriction and control EDUCATION: THE FOUNDATION OF PROGRESS giveaway era should be rightly ended and of inflationary pressures that increasingly Mr. DoNOHUE. Mr. Chairman, this educa­ it is only good sense and simple justice to ask threaten dangerous imbalances in our econ­ tion bill before us could well be one of the and expect that the nations we have aided omy, a wide-spread collapse of confidence in most important legislative instruments ever and are aiding will fully and effectively co­ our economic system with a grave possibility presented. to the Congress and I most operate with us for common survival. of a serious recession to follow. The primary earnestly hope it will be shortly and over­ Our continued assistance to countries who duty of our President and our Government whelmingly approved. · - have become fully rehabilitated and com­ in dealing with such a matter of national This afternoon we have heard a most im­ pletely revived economically should be ter­ urgency is to make absolutely sure that the pressive recital of expert and authoritative minated and principally directed to those restraints required and the sacrifices that are testimony to show the incredible growth, nations that actually need help and are necessary will be imposed with religious over these past 10 years, of the number of capable and disposed to use that help w equality and fairness upon everyone and all students entering our higher institutions of improve their farming techniques, schoo~s. segments in the country and that none will learning and the dramatic expansion, since hospitals, and basic industries. I think that be favored at the expense of others. In this the end of World War II, in the number of the majority of our citizens strongly believe trying hour it becomes a very stern obliga­ colleges and universities attempting to pro:,?­ in reasonable sharing of our resources with tion upon all economic elements and every erly educate and train these students. In less fortunate countries but I think they person to willingly assume a full and fair the 10 years ahead it is reliably anticipated believe with equal emphasis that our aid share of today's sacrifices if we expect to that the student population will almost should be restricted to those nations that participate in tomorrow's -renewed prosperity. double to a figure of some 8 million and, demonstrate-not simply promise-founda­ In .this perilous hour it is also, of course, very likely, the number of colleges will in­ tion reforms in land ownership and tax laws the stern and bounden duty of your Presi- crease proportionately. 21742 CONGRESSIONAL RECORD- SENATE 'September ~' 1986

As this phenomenal growth has occurred in terms of direct, public assistance pay­ SMALL :SUSINESS MUST BE. LEGlSLATIVEL y its.. increasing impact upon our higher edu­ ments alone, which amount to $4 b1llio.n per ENCOURAGED cational i.nstitutions has developed a. num­ year. In addition to these direct. payments, Mr. DoNOHUE. Mr. Chairman, I mast .ber of complicated problems and revealed a the indireet costs of poverty to this coun­ earnestly hope this Hous.e will wi.sely im­ ·number of unhappy deficiencies. try which show up in !unnile delinquencJ, proYe and promptly approve this bill before In too many instances ac.ademic quality crime, health hazards, and higher police and. us, to amend the Small Business Act. has apparently been too often sacrificed for fire protection cos.ts, totals billions more. lb. s.ummazy. as it. is now written, the the sake of growth. In addition. a great Let us vividly realize that a. teenage job­ majoc provisions. of this measu:re direct. in­ many of our colleges and universities, In the less rate of 16 percent has explosive possi­ ·ereased authorizations of the Small Business face of this unparalleled student demand, bilities that are of potential fearful and Administration loan fund~ separate the dis­ are affiicted with overcrowded classrooms, a. frightful consequences. aster loan funds from the regular loan funds very serious lack of physical facilities and It is not suggested here that a program of in order to guard against the previous neces­ qualified teachers, inadequate library serv­ perpetual care is to be established. It is sity of meeting the fund shortages of one ices and insufiicient scholarship and loan intended only that poverty-stricken people program at the expense of the other and to _programs to permit qualified and ambitious who need and will respond to help will be insure the Congress will be gl-ven sufficient students, from financially pressed families, to given such help so that they may help them­ warning in advance about the development continue their education. selves and gradually the desperate need of and danger of a. shortage in either fund. Therefore., the purpose of this legislation, such help will be reduced and the programs I believe that the great majo.rity of Mem­ as President Johnson has indicated, is to themselves will be accordingly restricted and bers here are in accord with the provisions meet some of the basic desperate nee.ds of eliminated. of this measure and recognize the urgent higher education in this country today by With this sentiment and in this spirit let need of its enactment. projecting Federal programs. for the con­ ·us enact this legislation because it is right Mr. Speaker, I most earnestly believe it is struction and expansion of undergraduate and because it is good for au Americans. our very deep legislative obligation and the and graduate academic facilities, to extend prac.tically unanimous intention of the Con­ the opportunity for higher education more CHILD NUTRITION AND CONT!NUA.TION OF' SPE­ gress to make every reasonable effort to pre­ broadly among the qualified students of serve and encourage the life and activities of lower- and middle-income families, to help CIAL SCHOOL LUNCH-MILK PROGRAMS Mr. DoNOHUE. Mr. Chairman, I most earn­ ·small business which is the foundation stone the smaller and newer colleges and institu­ of our private enterprise system. tions to improve their teaching programs and estly hope and urge this House will promptly and overwhelmingly approve this measure Because of my belief I advocated and sup­ enlarge their faculties, and to enrich the ported the original legislation, in 1953, that library resources of colleges and universities. before us, H.R. 13361, the Child Nutrition Act of 1966. led to the establishment of the Small Busi­ Mr. Chairman, the basic objective of this ness Administration, the first comprehensive legislation is to foster and to nourish the In summary, its provisions will continue agency of the Federal Government devoted talents we need to preserve the security and the invaluable special milk program in our ·wholly to small business problems. Before ·schools for an additional 3 years while also insure the progress of this Nation now and and since that time I have .supported every hereafter. These talents, for development, establishing a new: school breakfast program sound legislative proposal projected for the reside in the youth of our Nation. Let us, and assistance for the installation of food particular benefl t of small business in this then, wisely adopt this measure, in the na­ preparation and serving facilities to certain country, and I shall continue to do so in tional interest, without further delay. ·schools in areas which do not now have this order to preserve the vaunted traditions of essential equipment. our American free enterprise system. FAm LABOR STANDARDS ACT These additional programs, together with supplementing the universally commended Mr. DoNOHUE. Mr. Chairman, I doubt very -OUR MORAL OBLIGATION TO THE V~ERAN AND much that there is even one Member of this special school milk and lunch programs, in HIS FAMILY concern for the improved health and alert­ House who would seriously argue against the Mr. DoNOHUE. Mr. Speaker, as one who has policy set forth in the ·orl.;inal Fair Labor ness of our schoolchildren are certainly con­ ducive to the general welfare and develop­ sponsored and advocated similar legislation, Standards Act of 1938; namely, "to correct I most earnestly hope . that the House will and, as rapidly as practicable, to eliminate ment of this country. In brief this bill represents a most prudent resoundingly approve this bill bef0re us, labor conditions detrimental to the main­ H.R. 12410, the Veterans' Readjustment tenance of the minimum standard of living investment in the future of America through the encouragement of a healthy, well-nour­ Benefits Act of 1966. .necessary for health, efficiency, and general As you are aware, this measure extends well-being of workers." ished, wholesome American youth in the best educational environment we can devise. Let wartime veterans' benefits and rights to all It is, then. our legislative duty here today, those who have honorably served in the to work together, in patience and with tol­ us approve this patriotic investment without further delay. Armed Forces of this country since January erance, toward majority agreement on a 31, 1955, the official end of the Korean measure that will rightfully expand the fun­ conflict. damental policy involved and reasonably ad­ JUST AND TIMELY CONSUMER .PROTECTION Through the enactment of this b·ill, vet­ .vance the general welfare of workers in the Mr. DoNOHUE. Mr. Speaker, whenever and erans and military personnel of this so­ present economy, while conscientiously en­ wherever the average American's life and called cold war period will be granted, be­ deavoring to insure that the overall impact, health and money are at stake, and he can­ .sides educational training and home loan upon industries and individuals, is as equi­ not reasonably and adequately protect him­ assistance, job counseling aid, entitlement table as we can legislatively make it. self in these vital areas, it is the duty of his to hospital eare, wartime presumptions for Any declared war on poverty in this coun­ Government to act in his behalf. service-connected disabilities from chronic try will be of highly questionable effect if we As the President recently emphasized, the and tropical diseases, and certain other negl~ct our legislative and civilized obliga­ day and time has c-ome for clear labeling, true benefits. tions to those who work hard but must still descriptions, and commonsense rules to be . Mr. Speaker, on other occasions such as exist below the minimum level of well-being applied in retailing merchandise to the this I have expressed my very deep convic­ because of insufficient earnings. American consumer. tion that the bes-t patriotic incentive and Most families receiving it today do not To enable him to protect his life and his encouragement that we can provide for those want charity, or public assistance or help health and his hard-earned money it has be­ who may be called to. future military .service from the welfare worker. What they want come· essential for the American consumer is the example of the · equitable treatment and what they need is a living, decent wage to be given what she and he are demanding; we demonstrate of those loyal veterans and for the family head. Let us help them ob­ namely, lifeguarding eontrole on labeling their dependents of our past wars. tain it by prompt approval of this bill. and marketing of hazardous drugs and sub­ Although this measure before us may not stances; reasonable and appropriate weight contain the full educational and depend­ PRUDENT EXTENSION OF ECONOMIC OPPOR­ standards to facilitate comparative shop­ ency allowances that most of us might desire, TUNITY PROGRAMS ping; and clearer, more definite information and although it may contain greater restric­ Mr. DoNoHUE. Mr. Chairman, the vicious about the cost of a loan to a borrower. tions, than most of us might wish, it is still social and economic cycle that has been pro­ Mr'. Speaker, this modern-grown problem, a. substantial step in a just direction and I jected and threatens to be perpetuated by essential to the J:>aslc interests of the Ameri­ .urge its. prompt adoption. the combined problem of poverty and unem­ can family, is· one that shall have to be ployment is very probably the most stirring legislatively dealt with sooner or later and FEDERAL LEGISLATION Is IMPERATIVE FOR THE challenge our generation faces and upon the sooner the better. No reputable busi­ PROTECTION OF THE LIVES AND SAFETY OF which this body has the awesome duty to ness will be adversely affected if we exercise, THE AMERICAN PUBLIC 'I'RA VELING OUR PUB­ legislate. as we sho~ld, every legislative concern to LIC HIGHWAYS. · Mr. Chairman, let us solemnly reflect upon encourage industry self-regulation and re­ Mr. DoNOHUE. Mr. Speaker, no less. an au­ t'h.e unquestioned fact that in this land of frain from any excessive intrusion upon the thority than the American Trial Lawyers As­ plenty we have some 35 million American traditional ethics and -competitive practi.ces sociation has warned .us. that the number of citizens living in poverty. in our private enterprise system. I hope that deaths on our highways will reach a s.tagger­ To those who would question the costs sensible and adequate legislation to accom­ ing number o~ some 100.000 a. year by 19'15: of this program we must ask them to con­ plish these prime objectives in the national "Over these past several years, the issue of sider the cost of not adopting this program, interest will be promptly approved. highway safety has been steadily arousing September 2, 1966 CONGRESSIONAL RECORD-. SENATE 21743 the conscience of the American public and rent immigration laws is one of the most should, therefore, be and they are of major I believe the time is long overdue for it to vitally important subjects that today chal­ concern to this House. become a major legislative concern of the lenges our national moral conscience and the Over these past 15 years, the Congress has American Congress. legislative prudence of the Congress. consistently and increasingly demonstrated "In 1965 the national auto fatality toll Even a very brief review of our present its particular interest and fulfilled its legis­ reached the 50,000 mark. The annual injury law reveals that the current national origins lative obligation in this field by the enact­ list is over 1.7 m1llion persons. The direct system, which determines a nation's immi­ ment of programs designed to sensibly in­ cost of automobile accidents has been reli­ gration quota by the proportion of the U.S. crease the availab111ty of decent housing for ably estimated at more than $8 b1llion a year. population of that national extraction in our lowest income famllies and to help our "The dimensions of this problem, on these 1924, visits a most unfair and unpopular dis­ burdened cities cope with the vexing prob­ statistics alone, are staggering in their rev­ crimination against the majority of the na­ lems of urban and suburban expansion. elation of losses of life, permanent injuries tions of the world. This persistent discrim­ Today we have another opportunity to and economic waste. Surely it is a most ination has increasingly weakened our posi­ take several further steps forward, by.adopt­ urgent matter that calls for national leader­ tion of world leadership and has unwitting­ ing this conference report, in the improve­ ship and guidance for correction. ly delivered into skillful anti-American hands ment of our existing programs of housing, "Mr. Chairman, such national leadership an effective instrument for Communist prop­ slum clearance, urban renewal, community and guidance would be projected by the aganda against the United States as the pro­ facilities, college housing expansion, assist­ establishment of the National Safety Center claimed hope and asylum of the poor and the ance to displaced businesses and many other we propose and effectively applied through persecuted and the homeless. related fields. cooperating Federal, State, and local cam­ Mr. Chairman, surely the great majority Because it appears obviously in full accord paigns to accomplish national reductions in of Americans would objectively judge this with our national traditions because it is the almost unbelievable number of fatalities system and situation to be gravely unfair designed to reasonably meet a fundamental and injuries now occurring on our highways and it is, indeed, a matter which has seri­ national need and because it unquestion­ each year." ously hurt the prestige and influence of the ably tends to promote the health, safety and The objective of this legislative proposal is United States, both at home and abroad. happiness of all our citizens, I hope this clearly in the national interest and the need One of the primary purposes of the bill before report will be overwhelmingly approved with­ for it is practically of a desperate nature. us now is to correct the injustices generated out further delay. Let us meet that need and fulfill that objec­ by this outdated national origins quota sys­ tive now. tem and I hope the bill will be promptly DEPARTMENT OF TRANSPORTATION adopted. Mr. DoNOHUE. Mr. Chairman, I very ear­ VOTING RIGHTS MusT BE PROTECTED nestly hope the House will speedily and over­ Mr. DONOHUE. Mr. Speaker, I most ear­ PROMOTING THE NATIONAL HEALTH whelmingly approve this bill to create, with­ nestly urge this House to promptly and re­ Mr. DONOHUE. Mr. Chairman, I most earn­ in the Executive Branch, a new Department soundingly accept and approve this historical estly urge this House to speedily and over­ of Transportation. conference report on voting rights because I whelmingly approve this measure now before As far back as 1946 the Special Hoover very deeply believe its adoption is absolutely us, H.R. 3140, the Heart Disease, Cancer, and Commission Task Force recommended the vital to the continuing existence of this Na­ Stroke Amendments of 1965. establishment of such an independent Gov­ tion as a democracy. The authoritative statistics clearly reveal ernment Agency for the ·control and coor­ Mr. Speaker, as I indicated at the outset these three diseases are the major cripplers dination of transportation and the formula­ of my remarks I believe that the right to vote and killers within our society. Beyond and tion of an adequate national transportation is fundamental to true democracy in action above their adverse economic impact they policy to deal with the increased modern and I further believe it is the duty of this cause untold and immeasurable human hard­ complexities affecting this vitally important Congress to exert every possible legislative ef­ ship, anguish, and suffering. area of national activity. President Eisen­ fort to preserve, extend, and encourage the However, the history of medical science hower advocated the establishment of such exercise of that right. The only way we can definitely indicates that they like other a separate Government unit as an essen­ carry out that duty is through the enactment dreaded diseases in the past, can be sub­ tiality and both Presidents Kennedy and of legislation designed to remove and elimi­ jected to control and cure by organized sci­ Johnson have also urged this legislative ac­ nate all the obstacles and obstructions that entific attack; that is the basic reason for tion upon us, which is clearly a function and have been wittingly or unwittingly used to this bill. responsibility of the Federal Government. deny that right to any citizen anywhere in Mr. Chairman, I submit that the objectives Very clearly the coordination of the vari­ this country. of this b111 are undoubtedly in the best in­ ous transportation elements into this mod­ terests of the American people; the manner ern Department of Government should en­ NATIONAL FOUNDATION ON THE ARTS AND provided for the realization of these objec­ courage and provide greater operating effi­ HUMANITIES tives is prudent; the appropriations involved ciency and effectiveness as well as better Mr. DONOHUE. Mr. Chairman, I most earn­ are, indeed, quite reasonable, and in view of administration of the regulatory units. estly hope that this House will speedily and the increasingly adverse effect these particu­ Therefore, expenditures of Federal funds in overwhelmingly approve this measure before lar diseases is having on our society the legis­ the transportation fields should be better us, H.R. 9460, substantially similar to H.R. lation is most timely. Therefore, I again urge managed and result in a more effective econ­ 338 which I introduced last January 4, pro­ my colleagues to overwhelmingly approve this omy operation for eventual substantial sav­ viding for the establishment of a National measure without further delay. ings to our overburdened taxpayers and the Foundation to promote progress and scholar­ industry itself. ship in the humanities and the arts. EQUAL EMPLOYMENT OPPORTUNITY FOR ALL Mr. Chairman, this is a legislative pro­ The overall objective of this legislation is posal that is obviously beneficial to the in­ Mr. DoNOHUE. Mr. Chairman, I most earn­ dustry involved, generally "good for all Amer­ to aid and stimulate the education and de­ estly hope that this bill before us, H.R. 10065, velopment of scholars, artists and teachers to prohibit discrimination in employment icans" and therefore in the best national at every stage of their growth and learning. interest. Let us adopt it without further because of race, color, religion, sex, or na­ delay. It wm thus serve to correct the present im­ tional origin will be overwhelmingly approved balance between science and the arts. by this House. A FEDERAL TAX-SHARING PLAN WITH THE We should remind ourselves today of the Mr. Chairman, this country and the free STATES SHOULD BE ExPLORED admonition on this subject voiced in the world is now, indeed, being very gravely chal­ report of President Eisenhower's Commis­ lenged, on all fronts, by the Communist Mr. DoNOHUE. Mr. Speaker, one of the in­ sion on National Goals in 1960 and I quote philosophy and way of life. Perhaps there creasingly important challenges facing us to­ the language in that report: is no other area of our own life in which we day is to searchingly examine and prudently "In the eyes of posterity, the success of are more vulnerable to this challenge than move toward achieving a more wholesome the United States as a civ1lized society will this boasted area of equal opportunity for and even balance and separab111ty between be largely judged by the creative activities of all. We have, in this hour, a historical and among the units and powers of govern­ its citizens in art, architecture, literature, chance to make this boast a reality. In the ment at the National, State and local levels. music, and the sciences." national interest, both now and for the fu­ Many authorities have voiced their con­ In our own best national interests and in ture, let us seize this opportunity and adopt cern at the accelerating temptation and keeping with our obligations of world leader­ this measure without further delay. tendency of the State and community units ship, let us seize the opportunity and adopt to surrender too many of their responsibil­ this legislation without further delay. ities and energies to the influence and di­ HOUSING AND URBAN DEVELOPMENT rection of remote planners and consulters Mr. DONOHUE. Mr. Speaker, I hope this within the agencies of the Federal Govern­ IMMIGRATION WITHOUT DISCRIMINATION body will quickly and resoundingly accept ment. Mr. DoNOHUE. Mr. Chairman, I most ear­ this conference report on H.R. 7984, the Money may be, as in other things, at the nestly hope this measure, H.R. · 2580. to Housing and Urban Development Act of 1965. root of this unhappy tendency of the States amend the Immigration and Nationallty Act The legislative subject of housing and its and local governments to give up to much and for other purposes, will be promptly and related activities vitally affects the welfare of their community home responsibility and resoundingly approved by the House. of the family which is the basic unit of all independence but the evil is not inevitable I think that most Members here will agree civilized society. Prudent and :reasonable if we are wise enough to recognize its ap­ that the need to equitably revise our cur- legislative advances in this special area proach and take effective steps against it. 21744 CONGRESSIONAL RECORD- HOUSE September 6, ·1966 It is precisely ,in order to initiate .and de­ Let me, please, remind you that the Con­ H.R.11106-To create the Freedom Com­ velop effective ways and means to restrain gress is not, by this bfll or through this mission and the Freedom Academy. this situation, while retaining and promoting Agency, relinquishing one whit of its con­ H.R. 11770-To establish a system for the the wholesale and dynamic cooperation or"' stitutional, traditional, or legislativ~ power shar,lng of certain Federal· tax. receipts with the Federal Government with other levels over U.S. disarmament procedures or treaties. the States. below in obvious areas of essential need, that If it did I would not be in favor of it. H.R. 12086-To amend the United States I have introduced a bill, H.R. 11770, to es­ Let me further and respectfully observe Code to provide additional protection of and tablish a system for the sharing of certain that when few question a.n appropriation of penalties for violations of Civil Rights. Federal tax receipts with the States. some $50 b1lllon for an arms race it is difll.­ H.R. 12087-To provide readjustment as­ Mr. Speaker, the traditional principle, cult to appreciate how anyone can hesitate sistance to "Cold War" veterans. that the best government is the government over approving $55 million for the pursuit of H.R. 12556-To amend Public La.w 660, 86th closest to the people, sttll remains true. It honorable peace. Congress, to establish a National Traffic is to that fundamental truth and purpose Penny !or penny it could well be the best S~fety Commission. this }?ill is· directed. I hope .that early in investment the Ame:rican taxpayer could H.R. 14043-To amend title XVIII of the the next session the Congress will devote make or that we can make for him and the Sociai Security Act so as to extend the initial itself to the increasingly imperative need to civilized world. Let us then promptly ap­ enrollment period for Medicare coverage. encourage local government responsibllity prove this measure without f.urther delay. H.R. 14630r-To amend the Older Americans and independence in matters of home con­ Act of 1965 1n order to provide for a. National cern while preserving the coordinated ener­ CONGRESS SHOULD NoT BE ADJOURNED WHILE Community Senior Service Corps. gies and vision of wholesome partnership VITAL PROBLEMS REMAIN UNSOLVED H.R. 14632-To protect children and others tha.t has brought this country to the pin­ Mr. DoNOHUE. Mr. Speaker, at this point from accidental death or injury by amending nacle of free world leadership, seeking only I desire to express my opposition to any sine the Federal Food, Drug, and Cosmetic Act. peace on earth and health and progress of di.e adjournment of the House of Representa­ H.R.l4633-To regulate interstate and for­ all, everywhere. tives while vitally importa-nt legislation re­ eign commerce by preventing the use of un­ mains pending. fair or deceptive methods of packaging or COORDINATING PLANNING FOR THE. PRESERVA­ labeling of consumer commodities. BILLS INTROD~CED IN 89TH CONGRESS TION AND DEVELOPMENT OF . OUR WATER AND H.R. 15432-To amend section 329 of the LAND REsouRcES Is IMPERA.TIV:& roa FuTuRE Mr. DONOHUE. Mr. Speaker, limited Immigration and Nationality Act to proyida NATIONAL WELFARE as this summary necessarily is, it would for the naturalization of persons serving in Mr. DONOHUE. Mr. Speaker, back on July be even more inadequate if a partial list the Armed Forces of the United States in 13, 1961, our late and beloved President John of some of the measures: I introduc-ed in Vietnam. F. Kennedy first recommended to Congress. H.R. 16961-To exclude from income cer­ this Congress were not included. They tain reimbursed moving expenses. the original river basin planning bill to follow: provide for development of comprehensive H.R. 1o464-To offer means for coordinat­ river basin plans, biennial assessments of :re­ H.R. 1761-To amend the Legislative Re­ ing State health and welfare services at the organization Act of 1946 to provide !or more community level. gional water needs and supplies, aid to the effective evaluation of the fiscal requirements S.tates and encouragement of more efficient of the executive agencies of the Government CONCLUSION-TIMELY COUNSEL FltOM A GREAT water development, management and use. of the United States. AMERrcAN Mr. Speaker, this country has been strug­ H.J. Res. 132-Proposing an amendment to Mr. DoNOHUE. Mr. Speaker, the words of gling for 55 years to set up an intelligent, the Constitution of the United States rela­ wise authority remain forever as com.forting comprehensive, practical' plan to adequately tfve to equal rights for women. beacons. of guidance in troubled, distressing deal, throughout the Nation, with the desper­ H.R. 1757-To amend the Internal Revenue hours. A counseling mess.age t.o all Ameri- . ately urgent problems of water supply, dis­ Code of 1954 to provide an income tax deduc­ cans Is contained in the following extract tl"ibution, pollution, variabHity, and floods. tion for certain expenses of attending col­ from a speech given at Harvard University Every recognized authority and conse11vation leges and universtties. graduation exercises on June 30, 1910, by the organization in the United States has recom­ H.R. 338-To provide for the establishment late g,eat Chief Justice Charles Evans mended such action. The opportunity to of the National Humanities Foundation to Hughes: take such action, in the national wel!are, is promote progress and scholarship in the hu­ "The most important agencies of democ­ now before us and I hope we will be wise manities and the arts. racy are, after all, not the organs of govern­ enough to seize it in the national interest. H.R. 1759-To amend the Internal Revenue ment, but the influe:tlces_ that shape public Code of 1954 to provide that any unmarried opinion. • * * Democracy must prize its HONORABLE PEACE MUST BB PERSEVERINGLY person who maintains his or her own home public life. It has stripped it almost alto­ PURSUED shall be entitled to be taxed a:t the rate pro­ gether of ceremonial and of meaningless and Mr. DoNOHUE. Mr. Chairman, as one of the vided for the head of a household. absurd forms. It has placed the public offi­ original sponsors of legislation that resulted H.R. 1764-Amending the Immigration and cer in a position of power, to be used for in the creation, back in September of 1961, Nationality Act to eliminate the discrimina­ service. * * • Having surrounded. him with of the Arms Control and Disarmament tory quota system. none of the pomp which makes appeal to the Agency within the executive departmen.t of H. Res. 82-To establish a Special Commit­ thoughtless and ignorant, it must Invest him our Government I most earnestly urge my tee on the Captive Nations. with the higher honor which should be tile colleagues here to overwhelmingly approve H.R. 1907-To promote public knowledge of reward of fidelity. Those who cultivate the this measure authorizing an additional ap­ progress and achievement in astronautics true democratic spirit wm be as earnest in propriation of $55 million for the Agency to and related sciences through the designation their- support of faithful: ofll.cers as they are continue its operations through the next 4 of a special day in honor of Doctor Robert unsparing in their condemnation of the fiscal years. Hutchings Goddard. faithless."

weakness until we find our strength in H.R. 14026, FOR LOWER INTEREST HOUSE OF REPRESENTATIVES Thee. RATES, SCHEDULED FOR FLOOR TuESDAY, SEPTEMBER 6, 1966 Into our lives come appeals for causes, ACTION WEDNESDAY some of which are good and some of The House met at 12 o'clock noon. which are not good. We pray that by Mr. PATMAN. Mr. Speaker, tomor­ The Chaplain, Rev. Edward G. Latch, Thy spirit we may be led to make wise row the House will open debate on H.R. D.D., offered the following prayer: choices that our :reactions may be good 1402.6, the low interest bill of the 89th Congress. Trust in t~e Lord and do good.-Psalm and for the good of all. Help us to keep 37: 3. our minds and hearts responsive to Thee, This is a crucial issue for all Members 0 God, our Father, eternal source of that Thy grace may find an outlet in of this. House. This bHl will give us a wisdom, power, and love, who art above our lives and that we and our Nation clear-cut vote on low interest versus high us and within us. who dost keep the may be channels for Thy spirit to estab­ interest. We will know where every planets in their courses and yet art lish justice between men, good will with­ Member stands on this issue. mindful of the faint whispers of our in men, and peace in our world: through H.R. 14026 would lower interest ra.tes human hearts, before Thee we pause in Jesus· Christ our Lord. Amen. to 4% percent on certificates of deposit reverence and awe, contemplating the under $100,.000 and would put the Con­ grandeur of Thy being, the greatness of gress plainly on .record for lower and Thy power. and the glory of Thy love. THE JOURNAL lower interest 1-ates. If this bill is en­ Keep us restless until we :find our rest The Journal of the proceedings of Fri­ acted, we will have taken a giant step in Thee, keep us dissatisfied until we day, September 2, 1966, was read and in rolling back interest rates nationwide. find our satisfaction in Thee, keep us 1n approved. We will have done much to correct the