9206 EXTENSIONS OF REMARKS April 15, 1969 E.XTENSIONS OF REMARKS ISRAEL TODAY dechai Gur, has also said there would be ber 113,378. There are 39,305 registered chil­ fewer acts of terrorism if the standard of dren not on the UNRWA ration list because llving was raised. Israel should invest more of lack of funds. Somehow, they get fed, HON. GEORGE E. BROWN, JR. in industry and vocational tra1n1ng, he said. though, Mr. Geaney told us. When a refu­ At the Gaza UNRWA Headquarters, Mr. gee becomes a wage earner of 1120 llras per OF CALIFORNIA Geaney the Director had gone to trouble­ month, his ration is cut. Were the rolls in­ IN THE HOUSE OF REPRESENTATIVES shoot at the vocational training center where fiated, we asked. That has been greatly ex­ Monday, April 14, 1969 the students were out of classes and "demon­ aggerated, he said. strating in sympathy to the political situa­ There is no vocational training for girls, Mr. BROWN of California. Mr. Speak­ tion," a phrase used by most Palestinians but there are two six-month sewing courses er, I have been calling the attention of we talked to about the strikes. Mr. Filfil, a a year that women can take, and embroidery my colleagues to a series of articles writ­ translator at UNRWA, drove us over to see ls encouraged. UNRWA provides for up to ten by Miss Carol Stevens Kovner, writ­ the center, which was what we had come for. the 9th grade in separate girls and boys ten in Israel and giving a vivid firsthand Mr. Geaney was trying to persuade the st"Q­ schools. dents to return to class. He said later they What about the anti-semitic textbooks account of the feelings in that nation. would probably return by the end of the that were used by UNRWA schools and found Miss Kovner is managing editor and for­ week. by the Israelis when they took over the Gaza eign correspondent of Kovner Publica­ The students, who 11ve on the premises in Strip, we asked. Many were objectionable, tions, a newspaper chain in the East Los new dormitories were well dressed and well he said, and are not being used now. UNES­ Angeles area. Following are four more in behaved. Most were young men in their CO has taken over that responsibility. In or­ this series of articles. twenties. They were sitting in groups on the der for a student to graduate in a host coun­ [From the Eastside Sun, Feb. 27, 1969) lawn. The large airy well lighted rooms stood try, it was necessary for UNRWA to follow empty, the new equipment imported from that country's curriculum, it was felt. A THE Vmw FaoM GAZA: Mosr DENSELY Europe lying idle. The teachers waited to see strong position was not taken because the POPULATED AREA ON EARTH what the students would do. students would not be accepted in the Arab (By Carol Kovner) They were meeting in delegations with the universities unless they studied these text­ The road into Gaza town from Beersheba principal, Mr. H. Hammad, a harried Pales­ books. Only a few students leave for Am­ is through a large Moslem cemetery, where tinian who had studied in Haifa, then gone man or Beirut at present. Higher education little girls play in the dust between the on scholarship to England. The students were is at a standstill now in Gaza, he summed up. monuments and young men loll against them striking in sympathy to the pol1t1cal situa­ The stumbl1ng block may be the Arab uni­ watching tra.fil.c pass. tion, he told us. There were 513 at present, versity examinations, but we still feel that The unrest rippling through the Gaza Strip but only 1 in 6 were accepted who applied. distributing hate textbooks was a peculiar these past weeks was not evident among the Since 1954 when it began there have been thing for a humanitarian organization 11ke townspeople who were conducting business, 1496 graduates all taught by refugees who UNRWA to do. An Israeli told us that Jewish what there was, as usual. The bus depot is were given scholarships abroad in England, children are not taught to hate the ·Arabs also a market place, the most uninviting Switzerland, Sweden, and returned to teach. because first it is your enemy you kill with imaginable. Israeli passengers on the bus, What was the employment situation for hatred, later it can be your brother.... which runs every half hour from Beersheba, graduates? There were 380 graduates not able Why can't Israel annex Gaza and work were for the most part Jews originally from to work in Gaza and not being accepted by with American Jews and the international Arab countries who had come for produce the Arab COUllltries, as before the war. Only community to settle the refugees, we had bargains to be wrangled over in their native local residents, not refugees, are taken for la­ asked the Israeli official in Beersheba the day Arabic. Getting into a rickety cab we bor by the Israelis, untrained labor mostly. before. No, he said, it is a political problem careened through the town to the UNRWA Mr. Ha.mm.ad said there was enough money and we can't. In Gaza it would not be the compound. and equipment for vocational tralning; in same as Jerusalem where there is daily con­ Gaza town 1s very ugly. Aside from its two fact, too much attention was being paid to tact and the reality of the united city. refugee camps, it is poor and rundown, bul­ the vocational training school. It 1s under­ In Newsweek Magazine, in answer to Nas­ letholes unrepaired in its buildings and the standable that he felt this way with his grad­ ser's interview in the same magazine, Prime majority of the population in worn clothing. uates not working and the school being ex­ Minlster Eshkol has said, "any refugees re­ The reason 1s because the Gaza Strip 1s the panded to 556 in September. turning now to Israel would be a time bomb. most densely populated area on earth, with Back at UNRWA Headquarters, which was We cannot take them back but we are ready three times more population than the Neth­ as poor and rundown as the rest of Gaza to pay compensation." erlands, most populated of the European town, we talked with Mr. Geaney. He has The only solution the Israelis feel 1s for countries. What money there is goes for food been in Gaza. since July, 1967 and with the Arab countries to take them in, because and medicine and education. UNRWA since 1952 when he had also served for one thing, Israel hasn't the water to sup­ The Strip has 70 per cent refugees on the 1n Gaza. The students can't do less than port them. Then almost 50 per cent of the UNRWA registration and the rest local popu­ their colleagues he sa.ld, because there 1s Israelis are of Oriental background. This lation. The huge labor pool has forced the great cohesion among them. If tbey act any means they came from the Arab countries, wages of nearly all down to a subsistance differently, they are looked down upon. so most Israelis feel it was an exchange of level. The only sources of work available, as This checked with what an Israeli official populations. An exchange, Arab politicians there is no industry to speak of, are in other had told us in Beersheba, that the people in like Nasser, have turned into a convenient Arab countries for the graduates of UNRWA Gaza are afraid to cooperate remembering political football which 1s not a life or death schools and for local labor in the citrus fields, 1956 when Gaza was returned to Egypt and issue to them, says Eshkol. fishing, or handicrafts for the women, main­ "collaborators" were kllled. Now they create So the 880 graduates of the Gaza Voca­ ly embroidery sold through an UNRWA shop disturbances so that they can have a piece tional Tralning Center run by UNRWA, in town. Practically the sole employer of Gaza of paper to show they have been in prison ready for careers in radio, TV, mechanics, refugees on a meaningful scale remains for making trouble for the Israelis. It is what the Arab world needs most, vegetate. UNRWA. not llke e. school demonstration in Los An­ As !dle as the ships in the Bitter Lakes and UNEF also provided some jobs, the secre­ geles where the students are demanding im­ as caught. tary of the UNRWA Director told us at the provements long overdue. compound, openly resentful of the moveout. The Jerusalem Post said, "It is widely be- [From the Eastside Sun, Mar. 6, 1969) Her attitude reminded us of the Poverty War 11eved that the demonstrations are instigated Two STUDENTS KILLED IN TERRORIST BOMBING organizations, many of which were also tem­ by local political activists with the aim of OF JERUSALEM SUPER MARKET porary in nature. When they are discontinued emphasizing the Palestinian element, es­ there is great resentment because employees pecially in view of the Four-Power negotia­ (By Carol Stevens Kovner) have lost good jobs they may not be able to tions on the Middle East. They have concen­ While the Friday morning dynamite took replace. The UNEF troops departure ordered trated on school chlldren to evade counter­ the lives of two lmmlgrant students and in­ by Nasser left many refugees dependent again measures." jured nine other shoppers in the terrorist only on the UNRWA dole, a 1600 dally calorie Besides the economic situation and the explosion at the Jerusalem SuperSol market, diet-a reducing diet 1n the U.S. school strikes 1n Gaza, the shortage of doc­ I was lntervlewtn.g a woman who calls them Israeli authorities understand this employ­ tors caused by the Egyptians leaving worried freedom fighters. ment situation. After Dyan toured the Strip Mr. Geaney. Most doctors come on a volun­ Wife of the former Jordanian Ambassador recently he told the Israeli public that the tary basis or for a very low salary. There are to England before 1967 and onetime Defense unrest is due to the difficult economic con­ no mental hospitals in Gaza. Mental patients Minister, Mrs. Anwar Nusseiba is a pretty ditions there, urging that 35,000 work hours are sent to Israeli hospitals. young darkhaired woman, softspoken and the be allotted to the West Bank and Gaza to There 1s a $9 milllon budget for 313,152 mother of six chlldren, two grown daughters maintain a decent economic level. The M111- registered refugees. (Non-refugees number with families. She has a reputation as a tary Governor of the Strip, Tat-Aluf Mor- 141,000.) Those not in the eight camps num- militant feminist and a mllltant nationallst. April 15, 1969 EXTENSIONS OF REMARKS 9207 Her husband is now legal consultant to The woman who showed me the Katamon vinced that the Fatah were using the houses UNRWA. nursery had been in tears the whole trip. A as a day hideout. The Nusseiba. home is on the former bor­ boy who had shown great promise had just One of the Arabs, who was born in Jeru­ der between Ea.st and West Jerusalem, next been killed the morning before. His father salem, was working as a policeman for the to what is left of the Jordanian Army Head­ had been a brilliant general in the 1956 war Israells. We were curious why he was co­ quarters, mostly rubble. To reach it from Mea and killed in Sinai. In Tel Aviv a friends operating so openly with them. "The Fatah Sherea.m or the Jewish Orthodox Quarter, you sister-in-law ls slowly going mad, crying her will get you," the Israeli joked with him, but can cross the former Mandlebaum Gate area womb ls poisoned. She lost her 6-year-old he was very young and serious about his job. and pick your way across the old no-ma.n's daughter to ~he violence of Arab villagers who "I must work,'' he sadd simply. "I can't work area. where there is a new street but few side­ raped and killed her. She has just lost her in a factory." walks. The house looks battered from the son while doing his term in the army. Go When we entered Jericho, he removed his outside because it was in the most furious backward 20 years to what, they would ask jacket and in the suburb where we found the pa.rt of the battle for Jerusalem, but it is if they were alive, these sabras who were born Amman cigarette box he was frightened. pleasantly furnished inside. in Israel. Later he said he was coming to America to Both the Na.sseiba. family and the El "Politics is the real barbarian," Mrs. Nus­ work for his uncle in New York. There are Ghoussein, her family from Ramla, are old seiba told me. "It is a monster to the Arab Jews in New York, too, we told him. "Are you wealthy landowning fa.milies. The Nusseibas people." With their politics the world is kill­ planning to do what Sirhan Sirhan did to have held the key to the Holy Sepulchre since ing the Palestine people. The Russians, the Kennedy?" the Israeli joked. The boy smiled, the 12th Century. "We owned property in British, they are killing us. Where is the hu­ "Politics and business are separrute." Ramla., orange groves, in Gaza, all over the man consideration? We lunched at a large restaurant that had area.,'' Mrs. Nusseiba told me. "My mother "Why do they feel with the Jews? Do they been popular with tourists before the wa.r grew up in wealth and I will never forget expect us to live under his thum.b?," she and now was empty, the patio pool full of when we left, she had to beg for a blanket to asked. "It is my land, my water, my history! scum. "Jazz music" or machine gun fire cover me. We had to walk 90 kilometers to But it ls very difficult to go back. If we sounded in the streets while we ate. A swim­ Jordan." could have the 1947 partition, we could have ming pool was filled with Israeli soldiers get­ I responded to her painful memory, but I some of the Arab rights." ting relief from the muggy heat. also remembered a. girl I had met on the "The freedom fighters" she exclaimed as We visited a former refugee family that had Greek ship coming to Israel. Her mother's her face llt up, "how can they be called ter­ settled in Jerioho. The Israeli who was a his­ wedding ring, all that was left to her after rorists?" At that moment the bodies Of the torian and worked on the Dead Sea Scrolls property, business and belongings had to be two students were carried away, in the mar­ dig had known them for years. The host, left behind, was ta.ken from her before they ket I Would have been in if I hadn't been dressed Kuwaiti style in a long white robe, would let her leave Egypt. It is a. familiar talking with Mrs. Nusselba, for the SuperSol was very hospitable. There were three broth­ refugee story Mrs. Nusseiba told, but I have is where I shop every Friday morning. ers and four wives with 27 children llwng in heard countless Jewish versions the past "We want our name, our nationality, same three houses next to each other. It was a months recent refugees from the Arab coun­ as any nation in the world." What about the happy family, prosperous seemingr The chll­ tries, not Europe. From communities that are idea. Of a federation Of states in the area, I dren wandered in to be teased by the Israeli hundreds of yea.rs old, or were. There are two asked her. It might be a good idea, she said, a.nd to shake everyone's hand around the sides to the coin. but I don't know politics. She was one of the room. They were part Negro, descended from "They want to llve peacefully they say," most politically-minded women I have ever slaves. she went on. "Look at what they a.re doing met. On the way back to Jerusalem, we passed with Jerusalem. Ka.tamon. This is all Arab When asked at a public meeting whether property. Is this a legal thing?" he favored an independent Palestine state huge deserted refugee camps built of mud Katamon is a very poor district geograph­ General Dayan said, "Were elected repre­ wattle and slowly melting back into the red ically situated on the outskirts of Jerusalem, sentatives of the occupied territories popula­ earth in the salty ominous air. High above, a slum really. It is where thousands of ref­ tion to approach Israeli government and ne­ plastered against a cl11f like a bird's nest, was ugee fa.milies from the Arab countries were gotiate for peace, I would advocate we sit a Christian monastery. Below, in a fruit tree settled in haste in jerry-built stone and down together." grove was a mosa.ic synagogue floor with the stucco apartments that look as if they will He administers the areas with as light a Hebrew words "Peace upon Israel." As it was tumble down any minute. Many who live hand as possible. In the recent school strikes, getting dark, the Judean hills would soon be there stm wear Arab dress, but they are all he went to Gaza and the West Bank schools dotted with the flashlights of soldiers, look­ Jewish. Old Bucharians, with rags wrapped and told the students and their teachers the ing for Faita.h terrorists who traveled at night Oriental-style around their heads and necks Israelis would not interfer with their demon­ to get into the city. Very few did. against the Jerusalem cold, ride every day strations if they were contained in the One hundred terrorists were rounded up in on the bus with their grandchildren who schools. The Israel government has lifted J erusa.lem after the SuperSol explosion in dress well and speak Hebrew. But the old some of the restrictions on employment trom which two students were killed. Most were folk still speak Arabic. Katamon could be an Gaza to ease the situation there a little. residents of East Jerusalem, Gaza and Rama­ Arab village if you did not know the origin. Although the Vocational School in Gaza that lah. Evidence was found proving the Fatah The Pioneer Women nursery !or working I visited erupted the next week, it ls quiet cells in Jerusalem were being directed. by the mothers I visited in Katamon is filled to now. Egyptian government. overflowing with the children of the 1.mmi­ The terrorism a.nd unrest is to be lived A chain was reconstructed from profes­ grants, tiny boys with little black cheek with, say the Israeli leaders, if necessary, for sionals in Jerusalem, including a clergyman curls, little girls, all very dark skinned. Just a long time. Until there ls an agreed peace of the Anglican church in Ramalah, a prom­ over the back fence outside their playground and secure borders. inent doctor, a lawyer, and teachers, that is the Jerusalem-Tel Aviv railway. Before the extended to an escaped woman terrorist now based in Amman. From evidence, said the 1967 War, the Jordanian border was on the [From the Eastside Sun, Mar. 20, 1969] other side of the tracks, a few hundred feet police spokesman David Barelli, who an­ away. SOME REALITIES IN THE MIDDLE EAS'l'-RoOTS nounced the era.eking of the ring, it was Why are they there? Because before the OP MANY PROBLEMS SCRUTINIZED obvious that she received her orders from the 1967 war, Jerusalem was the dumping ground (By Carol Stevens Kovner) Egyptian Embassy in Amman. Enough ex­ !or thousands of destitute families and they There ls a small suburb outside of Jericho, plosives was discovered, some in private had to be put into homes and quickly. Not on the West Bank, near the Jordan River. It houses, to blow up the heart of Jerusalem. clapped into camps for 20 years and left to was used as a winter home before the 1967 While the terrorists were being rounded up, rot as in Gaza, but absorbed into the only war, initiated on this front by the Jorda­ crowds of children in :fanciful Purim cos­ country that would accept them all, the sick nians, by many Jordanian and Arab diplo­ tumes paraded the streets of Jerusalem !or and destitute and the old. mats and businessmen. It is abandoned, the days and llfe went on normally. "In the long run, we are going to live to­ once luxurious homes empty, plumbing torn The group ls believed responsible for much gether" Mrs. Nusseiba said once, "but we out, llght fixtures gone, windows and doors of the student demonstrations in Gaza and don't want all this conflict they are creating. smashed. Goat droppings litter the floors o:f the West Bank this winter. Israelis are in­ We don't want their rule. In Jerusalem they the rooms. One home was obviously used as clined to wink at the demonstrations by are bringing their people here . . . there a stable this winter. Mortar shells lie scat­ school girls because they feel the youngsters should be a Jewish side and an Arab side, tered around the gravel streets. Trees and are easily led at that age, by radio or by but one city with some legal connection." shrubs are dying for lack of water and fences leaders such as those arrested. in Jerusalem. This was a rare moment of logic 1n the a.re pushed over at crazy angles. A Jewish star They feel the schools are not up to standard stream of resentment and hatred she poured is on the wall of one house. anyway, and the addition.al missing out of out on the Israell occupation. "The Jews are The Israel Defense Forces were quartered classes hurts the students most. Not the the last people 1n the world to do this to an­ here for one year following the victory, then Israelis. other people,'' she cried. left, promising compensation to the owners Shooting along the Suez Canal, initiated "After 2000 years of being refugees, 20 years for all da.ma.ge by them. When we visited lt we by the Egyptians says General Odd Bull, you can't go back? I have to laugh when I found a fresh cigarette box from Amman on Chief UN Observer, has cost them heavily. talk to them and they say they can"t go back­ the ground. The two Jordanian Arabs and In the exchange which has gone on Inter­ ward." the Israell journalist with me were con- mittently for days, and seems a political ma- 9208 EXTENSIONS OF REMARKS A]Yril 15, 1969 neuver to many, for the purpose of attract­ heroism is expressed in marketplace murders. student or a young person who is inter­ ing big power attention to the area before That does not make them a partner for ne­ ested and involved is much less likely to the talks, Suez oil refineries, and tankers gotiation to my mind." want to take over administrations and were hit, and Major General Riad, Egyptian "Jordan civilians may have been hurt but tear down college buildings. He has got­ Chief of Staff was killed. no one can say rightly that Israel attacked The sudden death by heart attack of Is­ civilians. If Fatah bases are built near civilian ten the young people of his district in­ raelis' Prime Minister Levi Eshkol will put villages, we a.re sorry about hitting them, but volved and interested in government, Golden Meir at the Helm until the next elec­ no one can compare THAT with marketplaces. both in Washington and at home, and I tions. The former foreign Minister, she is re­ A supermarket is not the military base of think it is in part a tribute to Dr. CARTER puted to be a hardliner, unlike Eshkol who the Israeli Army." tl...at the campuses in his area have not would take second best when he could not get Regarding the new settlements in the oc­ experienced such unrest. first best. Eshkol kept the quarrelsome politi­ cupied areas, she said. "How many settle­ I ask unanimous consent that a news­ ments did we put up in the first months after cal parties in the National Unity Government paper account of the dinner in his honor, together and it looks as if the same govern­ the war? If Israel ts worried about security, it ment will be kept until November. is it s duty to do everything possible, if neces­ published in the Columbia Statesman, be There are many jokes in Israel about Mrs. sary to put up settlements on the other side printed in the RECORD. Meir not listening to the "people in the of the 'Green Line,' so that children don't There being no objection, the article street," only her Labor Party or the Old have to sleep in shelters." was ordered to be printed in the RECORD, Guard. A cartoon by Dosh, showing a startled It would be too good, she said with gentle as follows: young Israeli looking at the reflection of humor, if there was an agreement right away COUNTIANS AMONG 400 AT FALLS TO PAY Golda Meir in a mirror (she is 70) sums up with President Nixon. It is natural to have the mood of the "street," the young Israelis. different views, not necessarily contrary ones. TRIBUTE TO DR. CARTER The talks with the President and his cabinet (By Phil Aaron and Ed Waggener) [From the Wyvernwood Chronicle, Mar. 27, will goon. On Saturday night, March 15, 1969, over 1969] But t he United States and our other friends 500 young men and women from the 24 ISRAEL'S IRON JEWISH MAMA-PRESS CON­ must realize we must have borders that will counties of Kentucky's Fifth Congressional FERENCE WITH PRIME MINISTER MEIR not tempt the Arabs to attack us, as the District gathered to pay their respects to and show their appreciation for their Con­ (By Carol Stevens Kovner) former borders on the Golan Heights (trans­ formed to one long underground fortress gressman, Dr. Tim Lee Carter. It was an At her first press conference after being overlooking the farms below) , she explained. event unparalleled, without precedence in sworn in as Israel's first woman Prime Min­ Asked what Israel would do if the Four the Republican Party of Kentucky. ister, Golda Meir rejected categorically a Powers try to force Israel to an imposed solu­ These young partisans were not protest­ Four-Power solution to the problems of the tion, she said. "When life depends on de­ ing; they were not rebelling, striking, or Middle Ea.st. cisions, a little country will take them. We seizing control of a university, nor were Referring to the idea of a new United will not depend on the good will of Nassar they honoring a retiring or past leader. They Nations peace force composed of the United or a UN force--we want secure borders. The were, however, pledging an affirmative vote States and Russia, she was mildly surprised Arab countries must have no natural ad­ of confidence in a man who has earned at Russia being one of the two, "since its vantage over us. We do not fool ourselves-­ their respect and support. contribution to peace in the area has been war breaks out between those countries with Their plea, in effect, was: Congressman so outstanding." Russia was never the peace agreements." Carter, we want more of the same. staunchest friend we have ever had, she Golda Meir looked in good health, her voice Tim Lee Carter has gained the over­ added at another point in the press con­ clear and feminine, her manner positive whelming support of ·those constituents of ference with a wry smile. and down-to-earth. Her face normally stern, his under 30 because he understands them She described the "evaporation" of the lit up when someone asked her if she con­ and has gone to bat for them. It seemed UNEF troops just before the 1967 war (the sidered herself a "stopgap" until the October an appropriate night for this tribute; that Egyptians asked them to leave), and said, elections. "Did I call myself a stop gap," she same night Kentucky high school basket­ "we are asked to put our faith in the same laughed. ball teams were making their final elimina­ force for the third time ... So what? Will Mrs. Meir has been 48 years in Israel. She tions for the "greatest show on earth"­ it be any different than 1949 and 1967? was born in Kiev, Russia in 1898. Her family the Kentucky State High School basketball You all know what happened-they were moved to the U.S., to Milwaukee, in 1906. She tournament. Carter himself was once a high asked to leave and they left." still has a pronounced midwestern accent. school roundball coach and he himself On West Bank policy, she said, "As long When she married she moved to Israel with directed three teams to the Sweet 16. But as there is no peace agreement with us and her husband. She had a son and a daughter. when everyone else in Kentucky was think­ our Arab neighbors, we stand where we a.re. Some of her long government experience was ing basketball, an overflow, turnaway crowd we will do our duty to all the inhabitants gained in the Mo'etzet Hapo'alot or pioneer wedged into DuPont Lodge, at Cumberland of the West Bank. We will do everything Women in 1928 which launched her on her Falls, Kentucky, to show their appreciation possible for welfare, education and so on. public career. She came out of retirement to for Dr. Carter. They will find out it is not so terrible to live become Secretary-General of the Mapai and In Kentucky, citizens gain the right to with us." later the united Israel Labor Party. In Au­ vote when they reach the age of 18. Dr. "I don't understand the world sympathy gust, 1968, she again resigned. Carter has made an effort to Solicit the to the lack of will of Arabs to come to a peace She was reluctant to accept the premier­ views of this younger, come-alive genera­ settlement. The question is this, a.re the ship because, she said "Obviously I am not an tion, and in turn he exhibits some of the Arabs ready to live in peace with us? It infant. It was the decision of my party to take zeal and exuberance they have for his cam­ is too simple. Maybe that is why it is so this post-I took it." paigns. In an age where the typical Amer­ hard to explain to our friends. ican has a potbellied midriff bulge, Ken­ "Until they a.re, NOTHING will happen. tucky youth a.re proud to read that their The Arabs have to be faced with the prob­ 58 year old Congressman has defeated lem. We say yes to peace ... they have 101 Olympic champion Bob Mathias in a game answers, but not one to open the road to a HONOR PAID TO REPRESENTATIVE of handball in Washington. peaceful solution." TIM LEE CARTER OF KENTUCKY Many of today's youth regard their par­ She told reporters she was ready to go ents as oltl fogeys who don't understand to Amman to meet with Hussein for nego­ them. Carter has attempted to keep in touch tiation, although Golda Meir in Amman is HON. MARLOWW. COOK with the problem..s and concerns of the not exactly what the little King, as he is 01' KENTUCKY younger set, and has help from his teen­ age son, Billy Star. When Congress did not called in Israel, needs right now. Between IN THE SENATE OF THE UNITED STATES Nassar and the terrorists, he doesn't need renew its summer intern program for col­ the iron Jewish Mama, too. "I don't think Tuesday, April 15, 1969 lege students, he continued to provide the he has any doubts. He knows Israel is ready valuable experience of a summer in Wash­ to meet him. If he ls prepared, certainly we Mr. COOK. Mr. President, the young ington, out of his own pocket. a.re," she told reporters. people of the Fifth Congressional Dis­ But most important of all, Carter has "Nobody has proved to us why it ls so trict of Kentucky have shown down built up a rapport with his younger con­ outlandish to expect a signed peace settle­ through the years that they recognize the stituents through his actions in Congress. ment. The only peculiarity is that the party outstanding qualities of leadership which He has had enough integrity to stand and that won the war is asking for the agreement. have been exhibited by their Representa­ be counted. He was one of the first Con­ It is not something new for Arabs and Israel gressmen to attack our Vietman involve­ tive, Dr. TIM LEE CARTER. To pay tribute ment on the floor of the House. He has to sign an agreement ... but it seems we to him, they crune from all over south­ must now convince our friends there is no pointed out the inequities in the selective alternative to a peace settlement." eastern Kentucky to a dinner in his honor service's draft, even though he himself vol­ On negotiating with the Fatah, "not today, which was held at Cumberland Falls unteered as a combat medic in World War not for several yea.rs from now can we con­ State Park near London, Ky. II. He voted for the unpopular income tax sider them as partners in negotiations. Their Representative CARTER knows that a surcharge because he believed failure to do April 15, 1969 EXTENSIONS OF REMARKS 9209 so would have disastrous effects upon our works for Hobart, offered to drive the truck We picked up Captain Reece at his house economy. And he opposed a salary increase on his day off. Ed Belanger, brother-in-law and then set off in search of some starving without grandstanding. We hill people llke to Dempsey, also gave us his day off to assist migrant workers. We visited a certain section for our congressman to perform this way. in the transporting of the fish 'n food to i·ts of the laborers' quarters where it was known On the political side, Dr. Carter has en­ southern destination. that one worker with a total of 16 children dorsed candidates in controversial cam­ Saturday morning found the three Of us did have quite a time making ends meet. An paigns on issues of conscience and principle with a load of fish leaving from the Vero interview with this father of 16 revealed even though it was evident that his district Beach Fish Camp. Another stop in Ft. Pierce that he was rather disposed to working two would vote heavily for another candidate. added another 800 pounds of food which was jobs to keep his family fed, but he was also Perhaps his greatest contribution is his brought about by the generosity and efforts steadfast in his feeling toward all those grasp of perspective. Congressman Carter of Henry Beuttell and his friends. That left d--- politicians that kept stirring things not only says today's youth will be tomor­ us with one big truckload of food and we up. row's leaders; he believes it enough to put were on our way. QUOTE into practice what he preaches. As the crow files it is not too great a dis­ He said, "We don't need that kind of folks A side that rarely comes to light is his tance from Vero Beach to Immokalee. How­ coming down here. All they do is make it look depth of knowledge as a scholar of Ken­ ever, unless you have an amphibious vehicle, bad for us and good for them. There ain't tucky history and of Abra.ham Lincoln. it is best that you skirt the edge of Lake none of my kids go hungry no time and iffun Among his favorite Lincoln quotations ls, Okeechobee, which we did. If you think there they do I'll sure go out and get it (food) "I shall be governed by the w111 of my con­ is one highway that can be traversed the for them." He further stated, "If they would stituents on all subjects upon which I have whole way, forget it. You have combinations quit giving themselves raises every time they the means of knowing what their will ls." like highways 27, 29, 89 and several other turn around, they would be more left for the Dr. Carter has led in the causes his people lesser known access roads that lead to the poor folks." would have him to. highways. Our next stop was at a camp where it was NEW COUNTIES reported that Indians were living under the The trip was interesting in that it went most prtmitive of conditions in thatched OPERATION FISHBASKET through several counties that I had here­ huts with mud floors. That the living con­ tofore not traversed. I was most impressed ditions were such there is no doubt. However, with the name of Hendry County. It was the report failed to mention that this was a HON. LOUIS FREY, JR. quite obvious that the name was derived way of life for these people and they prefer OF FLORIDA from the fact that Joe Hendry lives there. it that way. Their total outlay for util1ties, If he doesn't own the whole county it would reillt, etc. is $5 per family per month. I IN THE HOUSE OF REPRESENTATIVES surprise me. He at least owns a lot of land couldn't help but note how clean the area Tuesday, April 15, 1969 that has to its credit many head of cattle around the houses was, and the array of flow­ and at least three or four oil wells. ers that bloomed in front of almost every Mr. FREY. Mr. Speaker, I recently We stopped at a place called LaBelle and door. The fact that there was a good look­ read a column by Bob Miller in the Vero had lunch. Now here's a place that poverty ing 1968 Ford station wagon parked in front Beach Press-Journal and commend it to couldn't possibly exist. There's enough beef of the door of one house, owned by the my colleagues of the House. on the hoof in that area to start a packing tenant, gave the subject of poor conditions I am extremely proud of Bob Miller house that would be the envy of Chicago. We its full perspective. had three hamburgers and three Cokes to and constituents of mine who were wor­ POLITICS the tune of $2.50. ried about their fellow human beings, So it would seem that Senator McGovern worried enough to bring great quantities DESTINATION and his erstwhile political efforts have no of food to those who supposedly needed We finally arrived at our destination-Im­ real foundation. They have debased a small it. I think we can all agree that the prob­ mokalee. We immediately set about looking southern community in an effort to gain rec­ for people with their eyes sunken into their ognition as a humanitarian by using a smat­ lem of hunger in this country should not heads and their stomachs bloated with be I tering of truth out of context. Conditions are be ignored, but must solved. think hunger. It was apparent that they were not poor, there is no doubt about that, but so we can further agree that the use of to be found in the downtown area, so we are they in some areas of Indian River Coun­ hunger as a Political football is to be stopped at a gas station. It was obvious this ty and for that matter almost every commu­ avoided. place needed something, although it might nity in the United States. The article follows: not have been food. We prevailed upon the We did however succeed in putting our BOB MILLER SEARCHES IN VAIN FOR owner to give us some much needed informa­ wagon load of food in the hands of Miss IMMOKALEE'S HUNGRY MAsSES tion as to the whereabouts of the starving Blake Palmer, the county nurse, and its dis­ masses. tribution will be allotted by one Marion (By Bob Miller) He allowed as how he dldn't know of such Feather, the local social services worker and It all started on these pages, so it is only masses so we were a little more explicit. truant otficer. We were assured that its dis­ fitting it should be brought to a conclusion Where ls the migrant laborer's camp that tribution would meet with our intention and here. houses the migrant farm laborers? Again our that only those who were in real need would "Operation Flshbasket" was actually a informant allowed as how there wasn't ex­ benefit by our efforts. worthwhile project when subjected to deon­ actly any particular place where they all tological thinking. Whether the need was stayed, but if you looked around you could NICB PEOPLE actually as acute as portrayed or not, the par­ probably find them almost anywhere. There are a lot of nice people in Im­ ticipants in its doing should be commended This was made quite obvious by the fact mokalee and I am most gratified that I was highly for their efforts. And this is the way that several persons of unknown heritage afforded the opportunity of meeting some it was. gathered around the truck and became very of them. They were most cordial and in­ La.st week, this writer, after perusing sev­ informative. Some were from Texas and vited me to visit any time and explore the eral articles in journals conveying the event.a others from New Hampshire or other far­ existing conditions to my heart's content if transpiring in our great state, concluded away places. When queried on the location of I so desired. there was a need in an area. that could be their starving brethren they all looked at me So in the dusk of another Saturday, Bob filled by an excess in another area. The excess as though I were sort of stupid. Dempsey, Ed Belanger and Bob Miller wound their way home satisfied with the fact that being that of bluefish being caught in the HUDDLE Indian River area., as opposed to the reputed our job had been done as most of the peo­ lack of good food in the farming district in Ed called a huddle and it was concluded ple who so generously contributed their time Collier County, or, more exactly, Immokalee. that they were hiding their indigents from all and efforts would want it done. outsiders and particularly members of the APPEAL press. With this we called upon the gas sta­ I appealed to all of the good citizens here­ tion owner to put us in touch with the local abouts to contribute what might otherwise be welfare otfice representative. He commented TWELFTH ANNIVERSARY OF WASH­ a waste to what I considered a worthwhile that he didn't rightly know who that was, INGTON METROPOLITAN AREA cause, that of transporting fish which might but he would call someone who would help COUNCIL OF GOVERNMENTS have been thrown away to indigent farm us find him. A few minutes that seemed like workers. Because many of our area's citizens hours (we had now become quite a spectacle), have hearts as big as all outdoors, the appeal a gentleman arrived on the scene and intro­ HON. WILLIAM B. SPONG, JR. met with not only an excess of fish but many duced himself as Stan Wrisley, editor of the OF VIRGINIA other staples of food that were purchased :md Immokalee Bulletin. donated to the cause. After a short conversation it was concluded IN THE SENATE OF THE UNITED STATES So much was donated that I had to make that we needed the services of Captain Harold Tuesday, April 15, 1969 another appeal for transportation to get it M. Reece, who among other things, ls the to its destination. Hobart Brothers Company local Episcopal minister, president of the Mr. SPONG. Mr. President, on April 11, met the appeal with the loan of a pick-up Immokalee Migrant Committee and head of the Washing.ton Metropolitan Area truck. Not only that, but Bob Dempsey, who the chamber of commerce. Oouncil of Governments marked its 12th CXV--580-Part 7 9210 EXTENSIONS OF REMARKS April 15, 1969 anniversary of service to the people of meet these issues through a new device. than 100,000 persons to determine their the Capital region. The organization had Abraham Lincoln was faced with the same travel needs so as to aid us in developing a set of circumstances. (We Democrats in regional transportation pli;m; such as a radio its beginning in the informal discussions Washington are finding it advisable these and teletype network providing a communi­ of a group of local government officials days to quote a Republican once in a while.) cations link among the local police and fire who recognized the regional character of Lincoln said of his time: "The dogmas of the departments. These are some samples of what many of their problems and the need for quiet past are inadequate to the stormy we have been able to do, and what any coun­ metropolitanwide action to solve them. present. The occasion is piled high with diffi­ cil of governments can achieve. Since then, the council of governments culty, and we must rise with the occasion." In one other no less vital area COGs can Then he said: "As our case is new, so we accomplish what no other kind of organiza­ has become a focal point for a united must think anew. We must disenthrall our­ tion today can, and that is in achieving re­ attack on the urban problems of the area selves." gional economies by eliminating duplication. and has made an outstanding record in It is heartening to me that the local This can be accomplished by employing what dealing with such problems as air and elected officials of this country are embracing we call the COG umbrella, by bringing under water pollution, crime, housing, and with enthusiasm and hope the council of the council of governments those agencies transportation. In the years ahead, we governments' strategy against our problems. and functions which logically belong there. shall be depending more and more on COGs now function in 115 metropolitan On this I would like to tell you of a personal regional cooperation in meeting the ur­ areas of the United States, in a manner and experience. organization similar to the North Central I was privileged to lead the fight in the ban challenge. The council of govern­ Texas Council of Governments and our own early 1960s in our region for the establish­ ments has shown us the way. in Washington. This clearly is the most sig­ ment of a Transportation Planning Board to I ask unanimous consent to have nificant development in American local gov­ develop a comprehensive transportation plan printed in the RECORD a speech by Fred­ ernment in the Twentieth Century. for our future needs. The Board was estab­ erick A. Babson, chairman of the board In Metropolitan Washington, our local lished in 1965, and I was pleased to serve as of supervisors of Fairfax County, before elected officials established our Council of its Chairman for the first two years of its the North Central Texas Council of Gov­ Governments twelve years ago, and I would existence. like to share our experiences with you and My first priority as Chairman was to bring ernments. Mr. Babson was recently describe our current attitudes. My own our Transportation Planning Board under elected president of the National Service County covers an area of over 400 square our COG umbrella, to combine the organiza­ to Regional Councils. miles and ha,s a population of more than tion conducting transportation planning for There being no objection, the speech 435,000, the largest city or county in the the area with the organization conducting all was ordered to be printed in the RECORD, Commonwealth of Virginia. Our annual other planning for the area, since our COG, as follows: budget is about $200 million and that, like like yours, is our regional planning agency. the population, is going up too. It is not often that a Chairman is anxious REMARKS OF FREDERICK A. BABSON, CHAm­ But we long ago realized the futility of to relieve his organization of its independent MAN, BOARD OF SUPERVISORS, FAmFAX trying to wrestle with regional problems by status, but I was convinced this was neces­ COUNTY, VA., TO THE ANNUAL MEETING OF ourselves, despite our size and our resources. sary in the interest of coordination and econ­ THE NORTH CENTRAL TEXAS COUNCIL OF We know that air pollution respects no city omy and, equally importantly, to combine all GOVERNMENTS, JANUARY 28, 1969 limits or county lines, that congested traffic planning programs and recommendations Your metropolitan area and mine are sim­ for a man who lives in the suburbs and works into the only regional organization of elected ilar in many important respects. We both in the city must be unclogged in both places local officials, the ones who make regional have more than two million people, and in if it is to mean anything to him. We know planning decisions. Metropolitan Washington this is now ap­ that reducing the crime in the city doesn't This was accomplished, and in the process proaching the three million mark. We are achieve much if criminals can use the free­ I was fortunate to be one of those elected offi­ both expected to continue population ways of our suburbs and increase their cials who recruited the services of our ex­ growth. The population projected for the crimes there. We ha.ve learned what John tremely capable and greatly respected Exec­ Dallas-Fort Worth region in the Year 2000 Donne wrote over three hundred years ago, utive Director, who is with me this after­ is six million. Just two weeks ago we were that, indeed, "No man is an island." noon, Mr. Walter Scheiber. told that our projected population in the After twelve years of voluntary regional Now our region's Transportation Planning Year 2000 is between seven and nine million. cooperation through our Council of Govern­ Board is a part of our Council of Govern­ We both have the same problems----crime, ments, I can assure you of the willingness ments and is our transportation policy arm. transportation, pollution, water supply, land of my elected colleagues to meet the spirit Its staff is part of our general COG staff, and use and a variety of other problems which are and the letter of intergovernmental coopera­ Mr. Scheiber is Executive Director of both complex in nature and regional in scope. tion. We have found that this demands time organizations. We both have chosen the same political of ourselves, and money of our taxpayers. You, I know, are experiencing the same mechanism for working toward the solution But we have paid these prices willingly and success. You have won respect across the of these regional problems, the council of consistently because not to do so would re­ Nation with your Regional Police Academy governments. We both have similar programs quire a far greater price. That would be the and Training Institute. You have begun, as through our COG, and we both have won continued worsening of our problems. We we have, a realistic regional planning ap­ awards from the Department of Housing and reject this price. proach and you are working on some of the Urban Development for outstanding achieve­ Thus we in Metropolitan Washington have same projects we are, such as coordinating ments in intergovernmental relations, so we joined in this united attack on our urban ills, the activities of your local governments in both must be doing something right. guided voluntarily, not through a metropoli­ the 1970 census, analyzing the vital question Throughout my political career I have tan government because we don't want one, of water supply and establishing a new re­ been interested in and committed to the but guided voluntarily from the local level, gional law enforcement planning program. regional approach to regional problems. I where it should be, through the only logical And the Texas General Assembly has have always been convinced, and defended means, our own Council of Governments. We shown the rest of our State legislatures how this conviction when it became an issue in have even paid the price in more local dol­ to get things done by approving Governor my most recent campaign, that we need a lars and more of our own time-uncompen­ Connolly's imaginative recommendations for regional organization of our local govern­ sated time-to expand this attack through State financial assistance to councils of gov­ ments if we are to do anything at all about our COG. We have done this because we ernments. our metropolitan problems. And in the cam­ know it constitutes the only real hope for We have experienced in Washington, too, paign where my regionalism became an issue solving our metropolitan problems and the value of educating our fellow officials, and my opponent showed a provincial at­ achieving the good life which now lies within the staff members of our local governments titude, I was the one elected. our political and technological grasps. To do and the people in general-that means the Today we need no further evidence of the less would be to betray our present and our voters to you and me-on what we are doing need for a united approach by our local gov­ future. together, and this is essential to the success ernments. Now we must demonstrate in the We have found in Metropolitan Washing­ of any voluntary regional undertaking. face of these staggering issues whether we ton that through this regional approach we On March 2, 1836, four days before the fall want to improve the life we lead and the have been able to produce specific results: of the Alamo before Santa Anna's hordes, 59 world in which we live, or whether we want such as a guide local air pollution ordinance men signed the Texas Declaration of Inde­ to mortgage our own futures and those of adopted by all but one major local govern­ pendence in a blacksmith shop at Washing­ our children, leaving succeeding generations ment in our urban area, and that one is ex­ ton-on-the-Brazos River. Part of that dec­ an urban world far worse than the one we in­ pected. to adopt an ordinance in the next few laration said: "It is an axiom in political herited from our fathers. In this very real weeks; such as an area-wide police computer science that unless a people are educated and sense we must decide, you and I, whether, in coutaining data from all police departments enlightened, it is idle to expect the continu­ the words of Thomas Wolfe, "the true dis­ in the region and placing it at the split-sec­ ance of civil liberty, or the capacity for self­ covery of America before us"-whether "the ond disposal of any policeman walking a beat government." true fulfillment of our mighty and immortal or driving a cruiser anywhere in the Wash­ It is idle, in our own context, to expect the land is yet to come." ington area; such as the most complete trans­ continuance of this political innovation of This is the real meaning of the decisions portation survey ever conducted in the Wash­ Inld-Twentieth Century urban America, and facing us today, and we are challenged to ington area, involving interviews of more the bright promise which this strategy holds, April 15, 1969 EXTENSIONS OF REMARKS 9211 unless we educate each other and our citizens gational aids to tell the pilot precisely Mr. President, there is merit in this on what we are doing, what we propose to do, where he is at any given moment as well contention. There can be no justification and how we propose to do it. Our experience as his relationship in time and distance for duplication, waste, extravagance, and in Washington, where our local officials have to any point on the earth's surface. The mishandling of public funds by agencies long followed the practice of encouraging public support and understanding for this information is updated every few sec­ of Federal Government. endeavor, is that it is necessary and it works. onds and flashed onto the display unit in Yet there is an appalling amount of No cooperative venture of this kind can be a fraction of a second. Also included are evidence that such things are going on in truly productive without the knowledge and statistics on true course, winds and Alabama. support of the citizens involved. other factors affecting navigation. In the April 7, 1968, issue of Barrens In a simpler time and a simpler place, Not only is the mechanism capable of Weekly, Shirley Scheibla has docu­ Henry David Thoreau wrote: "If one advances absorbing and producing an unlimited mented a shocking expose of incredible confidently in the direction of his dreams, amount of information, it takes up less and endeavors to live the life which he has waste, extravagance, and mishandling of imagined, he will meet with a success un­ aircraft space than presently used Pan public funds on the part of the Office expected in common hours." Am radar systems, weighs some 30 per­ of Economic Opportunity in Alabama. we have an opportunity to achieve the cent less and is completely compatible This article is but a small part of a tre­ kind of success of which Thoreau wrote. with automatic approach and landing mendous amount of accumulated evi­ Never bef.ore in the recorded history of man­ systems. dence which leads one to the inescapable kind have a people been given the ability to It, in effect, drives the airplane. The pilot conclusion that Congress should promptly bend the world to their choosing, to be the merely monitors it-- beneficiaries of their technology and not its put an end to OEO as a worse than use­ victims, to make their urban living centers Explains Captain Abrahamsen. less Federal agency. Mr. President, if come alive, rather than presiding over their The system is governed by three there is a single salvageable project in ruin. floated gyroscopes used to maintain a the entire wasteland of extravagance These are our bright opportunities, yours stable reference, unaffected by aircraft over which OEO presides surely there and mine, and our stark alternatives. What must be a competent Federal agency we do, and what we do not do, will deter­ motion. It is the fourth in a generation of such aircraft systems developed by somewhere which could carry on such a mine whether we will live the life of our project. dreams and reach our own fulfillment. General Motors which has also produced If we fail, we fBlil ourselves, and we mort­ the navigational equipment used by the Mr. President, the article in Barrons gage the futures of our children. If this be Apollo and other space programs. should be of interest to all citizens who our decision, history may well write that in The Carousel IV is now being tested by believe, as we do in Alabama, that good the last half of the Twentieth Century, in Am government begins with honest and effi­ metropolitan America, mere survival consti­ Pan on three 165-passenger Boeing 707's. It will be widely used for the :first cient administration of government. I tuted man's supreme achievement. ask unanimous consent that the article Thank you. time after Pan Am's introduction of the 362-passenger Boeing 747's this winter. be printed in the Extensions of Remarks. The company has purchased three such There being no objection, the article systems for each Boeing 747 for double was ordered to be printed in the RECORD, as follows: PAN AM TO FEATURE SOPHISTI­ back-up purposes at a total cost of $300,- 000 per aircraft. POVERTY AND PICKLES: THINGS HA VE GONE CATED EQUIPMENT WHEN IT SOUR AT THE SOUTHWEST ALABAMA FARM­ PREMIERS BOEING 747 THIS YEAR ERS Co-OP (By Shirley Scheibla) HON. THOMAS M. PELLY WASHINGTON.-Nearly two years ago, the Of­ THE PRESIDENT'S LEGISLATIVE fice of Economic Opportunity castigated this OF WASHINGTON PROGRAM magazine for charging that an alleged advo­ IN THE HOUSE OF REPRESENTATIVES cate of overthrowing the U.S. government Tuesday, April 15, 1969 played an important role in an OEO-funded HON. JAMES B. ALLEN farm cooperative in Alabama. In a joint res­ Mr. PELLY. Mr. Speaker, in a unique OF ALABAMA olution, the Alabama legislature had said and unprecedented fashion, the new in­ IN THE SENATE OF THE UNITED STATES that the Southwest Alabama Farmers Coop­ ertial navigation system which will be erative (SWAFCA) "was organized at the in­ used in Pan American World Airways' Tuesday, April 15, 1969 stigation and under the direction of . . . fleet of 33 giant Boeing 747's was put to Mr. ALLEN. Mr. President, there is Shirley Mesher, a prime participant in the It Black Panther movement . . . designed to the test recently. passed with flying much that is commendable in President overthrow the government of this country." colors. Nixon's message to Congress in which he In a letter widely circulated on Capitol Hill Because the North Pole is one of the outlined his legislative program. This following publication of the Barron's edi­ world's most difficult navigational zones, would seem to be evidenced by some bills torial ("Poverty Warriors," July 31, 1967), Pan Am thought it would be an unusual already under consideration by Congress OEO said that Shirley Mesher was not even and interesting experience to swing its which are designed to achieve the same a member of SWAFOA. regular nonstop London-Seattle flight objectives. I commend the President also SWITCH ON SW AFCA 850 miles north of its usual route to allow on his awareness of certain problems Now the General Accounting Office has the system to prove itself. which he expressed in the following issued a report which says that Miss Mesher As flight No. 123 flew over the white phrases: "the growing impotence of Gov­ not only was instrumental in organizing polar plains, Pan Am Capt. Olaf Abra­ ernment"; "the overshift of jurisdiction SWAFCA but also continues to be actively hamsen told the 47 passengers: and responsibility to Federal Govern­ associated with it and to exert considerable influence over its affairs. According to GAO, You are flying over the North Pole using ment"; and his recognition of the fact she is one of three so-called "unsalaried the very latest navigational equipment which that "too often Federal funds have been advisors" who take part in management de­ will be used in the aircraft of the future. wasted or used unwisely." cisions, even to the extent of vetoing advice He then watched the two Carousel dis­ In addition, I concur in the desire ex­ from an accountant and a horticulturist play units register the 90° latitude and pressed by President Nixon that the ob­ hired by OEO. 0° longitude which confirmed that the jectives of his legislative program be ap­ SWAFCA, reported GAO, lacks an adequate proached on a nonpartisan basis. It is accounting system or proper controls over aircraft was cruising directly over the expenditures, has purchased inadequate pole. in this spirit that I express reservations to certain of President Nixon's legisla­ equipment and has allowed crops to spoil be· Later the captain gave each passenger fore marketing; its members have received a personalized certificate showing a map tive proposals. scant returns-and, assuredly, have not been of the route and a picture of Adm. Rob­ For one thing, I oppose the President's brought out of poverty. Moreover, GAO could ert E. Peary who discovered the pole 60 proposal to continue the surtax. The feel­ locate only 300 of the 2,000 members OEO years ago next month. ing in Alabama is that greater efforts claims for SWAFOA. Because of the co-op's Most present aircraft rely upon celes­ should be made to effect economies and practice of making payments in cash, GAO tial, long-range radio or radar systems. efficiencies in Federal Government and says it can't be sure where much of the Developed by General Motors' A.C. Elec­ that Federal spending programs should money has gone, and interviews with em­ tronics Division, the Carousel IV, as the be cut back as an alternative to the con­ ployes have failed to provide satisfactory an­ system is called, is one of the first navi- tinuation of the surtax. swers. In addition, OEO did not require the 9212 EXTENSIONS OF REMARKS April 15, 1969 co-operative to file monthly financial re­ Even a horticulturist hired by SWAFCA Brewer, successor to Mrs. Wallace, and ap­ ports as specified by its own regulations. (with OEO funds) had no better luck. The proved another grant for SWAFOA, retroac­ SWAFCA's dismal record notwithstanding, co-op was unwilling to accept his technical tive to June 30, 1968, for $596,000; it in­ Washington officialdom has lavished both advice. According to GAO, that's because cluded $357,575 for personnel, $8,640 for con­ praise and largess upon it. In 1967, OEO en­ such advice was "subject to review and sultants and contract services and $75,956 dowed it with a mere $400,000; U.S. support either approval or veto by the unsalaried for travel. today runs to some $2 million, which besides advisors, directors or administrators, who Having been selected by OEO as an out­ more OEO money includes a grant from the had neither knowledge nor experience to standing co:.op, SWAFCA was host at an OEO Commerce Department's Economic Develop­ guide them." regional conference in Selma, celebrating ment Administration and a loan from the DISSENTING ADVISORS "Co-op Month." OEO's speaker at the event Department of Agriculture's Farmers Home GAO named those advisors as Shirley was its own James D. Templeton, Assistant Administration (FHA). Masher, Lewis Black and Albert Turner. Director for Rural Affairs. He declared that FROM THE son. Without naming names, however, GAO said co-ops offer the poor a power base as well as Operating in 10 counties of Alabama's one of them wielded considerable influence an organizational springboard to other black belt, SWAFOA reportedly seeks Con­ over SWAFCA's affairs on a full-time basis, ventures. gressional repeal of Section 304(f) of the "spent a considerable amount of time at the PROTECTING INTERESTS Economic Opportunity Act, which bans fed­ SWAFCA headquarters, used its telephone, GAO was able to put together quite a rec­ eral financial or other assistance to a co-op had access to its files, participated in the ord. Back in October 1967, SWAFCA had ap­ for agriculture production. If it succeeds, the operation of the office and, at one time prior plied to the Farmers Home Administration way will be clear for Alabama, the birthplace to the receipt of the OEO grant, actually for a loan of $850,000 (30 years at 4Ya % ) for of the Black Panthers also to become the signed SWAFCA checks." This advisor, capital improvements and operating expenses. homeland of the nation's latest leftist com­ GAO indicated also participated in board According to GAO, the FHA at first did not mune. Despite Section 304(f), when OEO an­ meetings, ma.de trips on behalf of feel SWAFCA ha.cl enough members to justify nounced its first grant to SWAFOA in May SWAFOA and was particularly active in ob­ the amount. (As noted, GAO could find only 1967, it said the purpose was "a self-help taining government financial assistance. 300 of the 2,000 members claimed by program of economic development, crop and The unidentified "advisor" seems to have SWAFCA.) "However," added GAO, ''in March livestock diversification and experimentation been phenomenally successful as a fund 1968 the Administrator of FHA apparently with higher profit and yield training." raiser. In May 1968, the Economic Develop­ reconsidered and tentatively approved a loan Alabama's Congressional delegation, four ment Administration announced a grant of of $852,000 ($2,000 more than requested) probate judges, three mayors and two county $85,000 to SWAFCA for studies on the feasi­ subject to SWAFCA's meeting certain loan commissioners visited OEO headquarters en bility of establishing credit unions, insurance conditions customarily prescribed by FHA to masse, urging the agency to deny support to companies, small business investment cor­ protect the government's interests." SWAFOA. After a warning from its regional porations, processing and fertilizer plants, When the co-op refused to accept such representative, Joseph Bradford, that it could selling farm equipment and producing syn­ conditions, FHA revised them. The lending not "blindly afford to commit money and thetic protein supplements. Of the total, agency also agreed to administer the loan manpower to an endeavor which is doomed $14,738 was to go to the co-op's personnel, from Washington, rather than through its to fall," and a similar one from its community $18,650 to "consultants" and $16,400 to field organization, and permitted SWAFOA to action agency in Selma, OEO went ahead "travel expenses." distribute in cash up to 20 % of its net earn­ anyway. It gave $400,000 directly to SWAFOA, ings to members in any year--even though instead of following even the usual policy ENTER THE G-MEN it might be delinquent in payment of the of channeling grants through the local com­ Last June. GAO began its investigation, at loan. Despite a plea from Rep. Bill Nichols munity action agency. (This exempted the the request of Rep. George W. Andrews (D., (D., Ala.) to wait until GAO could complete co-op from Section 205 of the Economic Op­ Ala.), chairman of the Legislative subcom­ its report-delayed by the theft of its portunity Act, which requires each commu­ mittee of the House Appropriations Commi·t­ papert>-FHA gave final approval early last nity action agency, before handing out tee. Several months elapsed. Then, in Octo­ January. The GAO report finally was issued money, to establish an accounting system ber, these significant events took place: on January 27. and internal controls that will assure proper In a letter to Rep. Andrews, U.S. Comp­ According to GAO: "An Assistant Adminis­ spending.) troller General Elmer B. Staats reported the trator, FHA, informed us on January 24, 1969, Alabama's late Governor Lurleen Wallace "questionable handling of $85,000 in OEO that a U.S. Treasury check in the amount of immediately vetoed the grant, but OEO boss grant funds by the SWAFCA manager, Mr. $270,000 was drawn on January 9, 1969, and Sargent Shriver overruled her decision. Calvin s. Orsborn." Mr. Staats said that deposited in a local bank account on January After that, the Alabama legislature passed SWAFC A's board had discharged Mr. Ors­ 16, 1969. On the same date $200,000 was ma.de a joint resolution calling on OEO to rescind born, that OEO had recovered all but $7,331 payable to SWAFCA from this account." its action. As the resolution declared, "In of the $85,000, and that it ha.cl turned the Asked the other day if this meant that $70,- reality funds will be spent to finance the matter over to the Justice Department. He 000 got lost between the Treasury and lawless Black Panther movement, designed added that GAO's report would be delayed SWAFC.A. a GAO official replied. "No com­ to overthrow the government of their coun­ "because of the generally poor conditions of ment." try and particularly the governments of SWAFCA's accounts, the theft of certain of FHA also lent another $273,000 to indi­ Southern states." our working papers ... and the withhold­ vidual members of SWAFOA. Since SWAFOA ing of certain records by Mr. Orsborn." HORN OF PLENTY would be buying produce from its members, (Earlier, Mr. Orsborn, a featured speaker at and marketing it, FHA agreed to the with­ GAO describes SWAFCA's affairs as so con­ an OEO co-op conference in Washington, holding of half the amount due members fused that no one can be certain what has had said: "SWAFCA is paying its bill; it is for remittance to FHA as payments on the been financed. In the summer of 1967, trying to create a better community rela­ members' loans. GAO discovered that the co­ SWAFCA hired a certified public accounting tionship, realizing that we must make our op failed to pay in full members who did not fl.rm to establish a system of accounts and own records and set our own values.") have FHA loans and also cut its payment by controls to conform with OEO regulations. After examining the co-op's books, an in­ more than it remitted to FHA. By late summer, the CPA's dropped out of the dependent auditor notified OEO that "due to picture without finishing their work, and the . . . breakdown in the system of internal MAKING PROGRESS? OEO brought in a consultant of its own to controls we are unable to express any opinion Nevertheless, the Agriculture Department work on SWAFCA's books. Among other whatsoever on the balance sheet of the describes SWAFCA's gains as encouraging. things, he found that about 75% of the Southwest Alabama Farmers Cooperative As­ "Members have found how to upgrade the transactions were in the form of cash. No sociation at June 30, 1968, or the results of quality of their produce so as to command records were kept for payroll, sales or pur­ its operations for the six months then higher prices on the market," a report con­ chases. No pay deductions were made for ended." He advised the agency to consider tends. As Vice President, Hubert Humphrey social security and income taxes. What's suspension of funds until the accounting once declared: "All of us who have watched more, SWAFCA's president signed blank system was improved and certified adequate the growth Of the Southwest Alabama Farm­ checks, for use by anyone with access to the by a CPA. ers Cooperative Association are thankful in­ checkbook. Selma's mayor obtained an order from a deed for its success and progress." And OEO, The consultant, as it happens, also gave state court enjoining the co-op from spend­ for its part, says SWAFCA has demonstrated up without finishing the job. He did so, ing public funds. SWAFCA then sought but what co-ops can do to help people gain moti­ GAO says, "because SWAFCA employes and failed to obtain a temporary restraining or­ vation, confidence and a sense of achievement advisors would take it upon themselves to der from a federal court against the injunc­ which they can relate to other areas of their do things their own way rather than to fol­ tion. (In November the Justice Department lives. low instructions." From September 1967 to began a separate action at the request df GAO drily supplies the contradictory rec­ August 1968, the co-op did not file monthly OEO, obtaining an injunction against the in­ orMaryland processor, who creasing and decreasing them as the Federal income taxes and increasing cost regraded them and salvaged 100 bushels. The needs for revenue changed. During of living that I have outlined above, he net proceeds to the co-op amounted to less World War II, when the need for revenue is also being subjected to rapidly increas­ than the shipping costs. A consignment of ing State and local taxes and the recently 600 bushels of cucumbers to Chicago brought was urgent, the personal exemption was $1,200--Cnly $500 more than the shipping reduced to the lowest level in its history, effected increase in social security taxes. costs. On a shipment of 575 bushels to a $500. We must recognize that there is a Louisiana processor, SWAFCA grossed less In 1948 when the present level of $600 limit to what the taxpayer can bear. We than it paid its farmer-members for the pro­ was under discussion, the Secretary of mu.st increase the size of the personal duce. the Treasury, John W. Snyder, stated: exemption. Toward the end of June, SWAFCA sought assistance from an Assistant Secretary of Ag­ Under this bill, personal exemptions a.re riculture in locating cucumber markets­ increased by $100 to compensate for a calcu­ INADEQUACY OF JOB TRAINING because it had lost all its customers. Soon lated $100 decline in the purchasing power of AND JOB OPPORTUNITIES thereafter, SWAFCA obtained orders from the average income after taxes during the processors on condition that the cukes would past 2 years. be properly graded. "By the time the new These calpulations do not provide an ade­ HON. CHARLES E. GOODELL markets were located," however, SWAFCA quate measure of the need for tax relief in was receiving "quality cucumbers at Selma the lower income groups. Under the stress OF NEW YORK in lots too small for dispatch to processors on of war needs, personal exemptions were re­ IN THE SENATE OF THE UNITED STATES duced to emergency levels. It was then rec­ a truckload basis; thus cucumbers continued Tuesday, April 15, 1969 to pile up at Selma and spoil." ognized that the $500 per capita exemption That pile of pickles-as GAO's evidence system would endanger the health and liv­ Mr. GOODELL. Mr. President, one of makes clear to many observers-ls not all ing standards of large segments of the popu­ the most critical areas of national con­ that has gone sour at SWAFCA. lation if retained for many years. cern at this time is the failure to use the This last statement is as true of the talents of many of our citizens due to $600 today, 21 years later, as it was of inadequate job training and job oppor­ INCOME TAX REVISION the $500 at that time. In fact, a study by tunities. Our young people mu.st be made the Social Security Administration in to feel that they can be productive mem­ HON. EDWARD P. BOLAND 1966 showed the "poverty line" for a non­ bers of our society and that they can farm family of four was $3,335. Anyone break the cycle of paverty which they OF MASSACHUSETl'S who falls below the poverty line will have would surely face without adequate job IN THE HOUSE OF REPRESENTATIVES less than a minimum diet for health or preparation. Tuesday, April 15, 1969 will have to choose between necessities. The Department of Health, Education, Mr. BOLAND. Mr. Speaker, the $600 Under present tax law a family of four and Welfare will provide such training personal exemption now granted to tax­ with an adjusted gross income of $3,335 and job opportunities this summer, when payers is far too small-so small, in fact, has to pay $46 in Federal income taxes-­ it once again participates in the summer that it makes a mockery out of the con­ a significant sum for a poor family. A employment programs. gressional intent behind the laws estab­ recently published study by the Treasury Because of the vitally important nature lishing income tax exemptions. I have Department under the previous admin­ of such programs, I ask unanimous con­ introduced legislation that would double istration pointed out that 2.2 million sent that an article explaining the HEW the exemption, raising it from $600 to families with incomes below the poverty summer employment program in New $1,200. level mu.st now pay Federal income taxes. York City be printed in the RECORD. The history of tax exemptions makes In addition to the Federal taxes many of There being no objection, the article clear the need for this legislation. The the poverty stricken must pay, they also was ordered to be printed in the RECORD, present $600 exemption was established face the taxes imposed at the State and as follows: in 1948-more than two decades ago. Yet, local levels. Sales taxes on necessities and DEPARTMENT OF HEALTH, EDUCATION, AND in the 21 years since the 1948 Internal property taxes which are included in rent WELFARE SUMMER EMPLOYMENT PROGRAM Revenue Act, the cost of living has shot charges are regressive, placing the heav­ AND NEW YORK CITY up 48.7 percent. The $600 exemption iest burden on those least able to pay. The Department of Heath, Education, and would have to be increased to $892 merely My proposal would greatly relieve Welfare is, for the fourth straight year, par­ to equal the purchasing power of $600 these low-income families. But we must ticipating in the government's Summer Em­ also help the middle-income families who ployment Programs. Of these programs, the in 1948. two largest are the Youth Opportunity Cam­ The retention of this low level of ex­ pay the vast bulk of income taxes. Not paign and the program for hiring summer emption in our tax structure is not only only have living costs increased since employes through the Civil Service Com­ a startling inequity but an abrogation of 1948; so have our living standards-the mission's Summer Employment Examina­ congressional intent. The personal ex- goals we set for ourselves as consumers tion. emption was first provided in the Reve­ of goods and services and users of leisure While a common purpose they share is that time. The Bureau of Labor Statistics of providing meaningful jobs for our young nue Act of 1913-the first income tax law people, their underlying philosophies are enacted after the adoption of the 16th has just published a study which has d11Ierent. amendment. Under the Revenue Act of translated three standards of living for The Youth Opportunity Campaign is a na­ 1913, a taxpayer was allowed an exemp­ an urban family of four in the spring tional program aimed prima.rily at youths tion of $3,000 plus an additional $1,000 of 1967 into representative goods and age 16-21, who have inadequate education, 9214 EXTENSIONS OF REMARKS April 15, 1969 low income, and generally are out of the not unexpected, was a shock to a great February 23, 1969, at Brockton, Mass., to ob­ mainstream of American life. Its goal is to many people, among them the millions serve the 51st Anniversary of the Declaration provide meaningful jobs. However, built into of veterans of the Second World War of Independence of the Republic of Lithu­ the program are supportive activities to help ania., reads as follows: the youth understand and cope with the who served under his command. One in "Whereas the ancient Lithuanian nation experh;nces and demands of new jobs. my congressional district, sharing his proclaimed the restoration of the indepen­ On the other hand, the Summer Employ­ grief with me, wrote that he sort of dence of its State after World War I, and ment Examination program helps students identified Ike as another dad. In every thereafter led an orderly and exemplary in­ continue their education by providing jobs, veterans post throughout the land there dependent State existence, having de jure while also assuring to the public service a are nwnbers of men, now in middle age, recognition of all the Great Powers and diplo­ source of future talent. who in their youth fought in North Africa ma.tic relations with all its neighbors; and Much of the planning for the summer's and in Europe, always proud of their "Whereas the Soviet Union, in violation of Youth Opportunity Campaign will be based all its solemn treaties and agreements with on what was learned from last year's expe­ service to our country and of the general the Republic of Lithuania, in 1940 invaded riences. who led them to victory. And after the and occupied Lithuania by military force, For example, last year in the New York war was over these millions of American through its occupation agents forced a mock Regional Office of the Department, a pilot veterans enthusiastically voted him parliamentary election, then claimed that program developed new ways to help young twice President of the United States, Lithuania had of her own free will requested people work better and understand their finding him first in peace as he had been admission into the Union of Soviet Socialist environment at work. With the full support first in war. Republics; and and cooperation of the New York regional "Whereas the Soviet Union continue this top management, the program benefited Indicative of the genuine sense of per­ military occupation of Lithuania to this day, from the "know-how" of specialists from sonal loss felt by so many veterans is the and is systematically carrying out a planned various fields, e.g., education, economics, following tribute from James Drwnm, a program of annihilation of the Lithuanian equal employment opportunity, community member of Hice-Shutes Post No. 170, nation by various means, including deporta­ involvement and others. Together these the American Legion, at Three Rivers, tion of Lithuanians to Siberia and elsewhere specialists designed a program which was Mich. The tribute was published as a let­ in Russia, appropriating the real and per­ beneficial for the HEW Regional Office, the ter to the editor of the Three Rivers sonal property of the Lithuanians, and bring­ Youth Opportunity Campaigner, and the Commercial on March 29, 1969, the day ing in Russians and other citizens as colonial community. From their efforts came im­ settlers in Lithuania: Now, therefore, be it proved teaching techniques in mock job­ following Ike's passing, as follows: Resolved, that the American Lithuanians interviews, seminars on job opportunities, TRIBUTE attending this meeting unanimously decided and a presentation by a fashion consultant To the EDITOR: to request the President and the Secretary of for teenagers on good grooming and the pur­ Yesterday at work a friend who is also a State of the United States to do everything chase of an inexpensive, though stylish, veteran said to me, "Do you know that Ike is in their power to investigate the situation in wardrobe. The young people learned more dead?" Twice more I heard practically the Russian-occupied Lithuania; to stop the about their community through visits to same words expressed and I thought, "What genocide being perpetrated in Lithuania by important social and political organizations a ridiculous idea, Ike losing a battle." Soviets to bring to a halt the present-day such as the Ford Foundation and the United My thoughts drifted back to the dark days russification being carried out in Lithuania; Nations. The New York program was a suc­ at the start of World War II when each suc­ to restore freedom and the rights. to self-de­ cess. It will be improved this year, along ceeding day brought only defeat and despair. termination to the Lithuanian people and with the programs of all the regional offices The leaders of the Allied Nations finally their territory; be it further and HEW in Washington. decided that we needed a Supreme Allied Resolved, that we request the President Last year the Department's nationwide Commander to unite all of the troops of all and Secretary of State of the United States summer employment effort employed more of the nations. They picked t he right man, of America to use all the diplomatic and than 6,600 students and youths. This year's Dwight D. Eisenhower. Very soon things other peaceful means at their command to effort will be geared to involving more started looking a little brighter. The tide of demand an immediate end of Soviet colonial­ students, and additional efforts in a num­ battle turned our way. It was a long, hard ism in Lithuania and territorial integrity of ber of areas including: road back, paved with broken bodies and the Soviet Russian occupation and admin­ (1) Improving the job content of work shattered equipment, ending eventually in istrative agencies; be it also assignments in terms of meaningfulness, final victory. To me Ike's leadership was de­ Resolved, That this Resolution be sent to challenge and relevance to the job market cisive. the President of the United States, and copies in which the youth will soon compete. To­ His quiet confidence, grim determination thereof to the Secretary of State, Senators ward this end, in the headquarters opera­ and superior judgment was an inspiration to and Congressmen from our State, and to the tions of HEW agencies, Job Development all of the Allied Nations and the more you Press ." Task Forces are being formed. Each Task think of it, the more ridiculous it sounds. Adopted at Brockton, on the 23rd day of Force will be composed of one full-time pro­ Ike lost a battle. February. fessional employee, and a cadre of 4-5 Youth Not to me he didn't, rather he gained a BRONIUS BURBA, Opportunity Campaigners. Together they final promotion. Now he is as high as he can Meeting Chairman. will develop and redesign the jobs available. go. VLADAS JAKIMAVICIUS, (2) Involving of youth in the planning, JIM DRUMM, Secretary. operat ion, and evaluation of their own pro­ H i ce-Shutes Post No. 170, American Le­ grams, so as to understand their needs and gion, Three Rivers, Mich. concerns as they see them. (3) Encouraging of more creative sup­ CONGRESSIONAL QUESTIONNAIRE porting activities such as meetings with Legislators and other Government officials RESOLUTION IN RECOGNITION OF to discuss with them such topics as, for SUFFERING OF THE LITHUANIAN HON. ALBERT W. JOHNSON example, the "mechanics" of the democratic PEOPLE OF PENNSYLVANIA system and how it relates to them both as IN THE HOUSE OF REPRESENTATIVES individuals and members of their com­ munity. HON. EDWARD W. BROOKE Tuesday, April 15, 1969 All of us who are concerned with the em­ OF MASSACHUSETTS Mr. JOHNSON of Pennsylvania. Mr. ployment of youth should support these IN THE SENATE OF THE UNITED STA:rES Speaker, I am again sending the resi­ programs. In New York City as well as dents of Pennsylvania's 23d Congres­ across the Nation, the degree of effort that Tuesday, April 15, 1969 we put forth to get our young people in­ ~anal District a questionnaire, seeking volved in jobs and their community will Mr. BROOKE. Mr. President, on Feb­ their views on the pressing problems repay us a hundredfold in the future. ruary 23, 1969, the Lithuanian Council facing Congress and the Nation. of Brockton, Mass., passed a resolution The questionnaire, as sent to the peo­ in recognition of the suffering of the ple of the 23d Congressional District, Lithuanian people, and in commendation contains the following explanatory state­ A VETERAN'S TRIBUTE of their continuing spirit of indepen­ ment on the front as follows: dence, I ask unanimous consent that the Again your Congressman, ALBERT W. JOHN­ HON. EDWARD HUTCHINSON resolution be printed in the RECORD. soN, 23rd District of Pennsylvania: Cameron, OF MICHIGAN There being no objection, the resolu­ Centre, Clearfield, Clinton, Elk, Forest, Mc­ tion was ordered to be printed in the Kean, Potter, Venango and Warren Coun­ IN THE HOUSE OF REPRESENTATIVES RECORD, as follows: ties, is calling to ask you a few questions. Tuesday, April 15, 1969 BROCKTON LITHUANIAN COUNCIL RESOLUTION Also, on the front of the questionnaire Mr. HUTCHINSON. Mr. Speaker, the A resolution adopted by Americans of is a picture of myself holding a telephone death of General Eisenhower, though Lithuanian descent, at a. meeting held on as an aid to insuring a substantial re- April 15, 1969 EXTENSIONS OF REMARKS 9215 turn of the questionnaire by the citizens. the Poot Office Department into a govern­ [From the St. Petersburg (Fla.) Times, The message on the inside is as follows: ment-owned oorporation? Mar. 25, 1969] 11. Should public employees, other than CUSTOMERS PAY FOR UTILITIES' CHARITY DEAR FRIENDS IN THE 23D CONGRESSIONAL firemen and police, have the right to strike? (By Roland Page) DISTRICT: The 91st Congress has assembled 12. Would you vote to repeal Sec. 14b of and we are about to commence voting on the Taft-Hartley Act? (Right to work sec­ (NOTE.-Roland Page, born in Melrose Park, many controversial issues. A great variety of tion) lll., is a graduate of Georgia Southern Col­ complex problems, both at home and abroad, 13. Should Congress propose a constitu­ lege and holds a master's degree in history face the new Administration and the new tional amendment to permit voluntary non­ and government from Florida State Univer­ Congress. The continuing war in Vietnam, denominational prayer in public schools? sity. Before coming to The Times nearly two the debate over the anti-ballistic missile 14. Would you vote to increase the flrst­ years ago, he was a reported on the Rock Hill system, and proposals to change our method class mail rate from 6 cents to 7 cents with (S.C.) Evening Herald, Savannah Evening of electing the President, are but a few of a guarantee of air mail delivery? Press and Fitzgerald (Ga.) Herald.) the matters now demanding immediate at­ 15. Do you favor statehood for Puerto "Dues, donations and contributions, if in­ tention and action. Rico? cluded as an expense for rate-making pur­ As I have in past years, I would like to 16. Do you feel that the President should poses, become an involuntary expense on ask you to take a moment or two of your be allowed to commit U.S. troops to conflicts ratepayers, who because of the monopolistic time to share with me your views on some on foreign soil without the consent of nature of utility service, are unable to ob­ of these issues. Never have your opinions Congress? tain service from another source and thereby been of greater importance. 17. Should Congress place a ceiling on the avoid such a levy. Ratepayers should be en­ You do not need an envelope to return total amount of Federal farm subsidy pay­ couraged to contribute directly to warthy this questionnaire. Just refold it and attach ments which one person may receive in any causes and not involuntarily through an a 6¢ stamp. one year? allowance in utility rates. (The utili ty) I will be very grateful if you will take the 18. Would you favor returning to the should not be permitted to be generous with time to let me have your views. States for use as they see fit, a percentage of ratepayers' money but may use its own funds Thanking you in advance, I remain, the money now collected in Federal Income in any lawful manner." Sincerely yours, Tax? CALIFORNIA PUBLIC UTILITIES COMMISSION. ALBERT W. JOHNSON. 19. Do you favor transferring · the more Florida's three largest electric companies successful anti-poverty programs to other gave nearly $500,000 to their favorite chari­ CONGRESSIONAL QUESTIONNAIRE departments? ties, schools, churches and civic organizations In answering the multiple questions, indi­ Comments: and projects in 1967-{)8. And their customers are paying for it today. cate your opinion by inserting a, b, c, or d N·ame ------· in the space provided. Other questions an­ General Telephone Co. of Florida gave swer "yes" or "no." Your answers will be Address ------· more than $100,000 in charitable and civic held to be confidential. contributions and dues in 1967-at no cost 1. If the P aris talks drag on with no ap­ to the company or its stockholders. parent indications of any chance of progress REGULATING THE CONSUMER IN In this State, the utilities take the bows toward a peaceful settlement, would you FLORIDA for civic mindedness, but their customers put favor : up the cash. (a) withdrawal of U.S. forces, even if this That's because the Florida Public Service means Communist take-over; or HON. LEE METCALF Commission ( PSC) , unlike California, insists (b) continue the present holding opera­ OF MONTANA on allowing such donations as "legitimate operating expenses" that "should be passed tion by joint U.S.-South Vietnam forces; or IN THE SENATE OF THE UNITED STATES (c) a gradual withdraw-al forcing South on to the ratepayer." Vietnam to assume a bigger role in the war; Tuesday, April 15, 196fJ When the PSC raises your electric and telephone bills, it's taking care of the Au­ or Mr. METCALF. Mr. President, the St. ( d) mounting a strategically sound effort burndale Booster Club, the Florida Fat Stock for a military victory? Petersburg Times has just published an Show and Sale, the "Gator Football Boost­ 2. Should the United States extend diplo­ excellent series of articles, written by ers," the Wakulla Board of Public Instruc­ matic recognition to Red China? Roland Page, on the subject of utility tion, the "St. Pete Armed Forces Luncheon," 3. With respect to raising an army to de­ regulations in Florida. Following the "Truth For Youth," and Gov. Claude Kirk's fend the Nation, do you favor: publication of this series, the Times con­ debt to a private police force waging his (a) continuing the draft in its present "War On Crime." cluded editorially that the Florida Pub­ It is also taking care of membership dues form; or lic Service Commission is not doing its (b) replacing the draft system with an all­ of company employes in a host of civic clubs volunteer army; or job, that it lacks information on utility and, in some cases, social clubs. ( c) restoring the nation-al draft lottery expenses charged to consumers, that the A check of latest company reports filed system established in World War II; or utilities have many experts--paid for by with the PSC shows that Florida Power Corp. (d) retaining the draft, but allowing the customers--while the public is usu­ was allowed to charge its customers $154,450 draftees to choose their call up date, any ally not even represented before the com­ in contributions for the year ending May 31, time during the four-year period following mission, and that the members of the 1968. registration? Tampa Electric Co. charged $116,085, and commission are highly susceptible to po­ Florida Power & Light (FP&L) has been col­ 4. Should Presidential candidates be se­ litical influence from the utility inter­ lected by National Primaries, instead of party lecting $151,416 in contributions and dues conventions? ests which contribute heavily to their each year since 1964. FP&L now is seeking 5. What method of electing the President campaigns. commission approval to more than double its after nomination would you favor: The Florida situation is similar to that allowance (to $367,090). (a) retain the present Electoral Oollege reported recently by enterprising and General Telephone Co. of Florida, for the system; or courageous newspapers in other States, year ending Dec. 31, 1967, chipped in ( b) direct popular vote; or $111,152.85 to almost 150 organizations and including the Providence Journal, the projects courtesy of its ratepayers. ( c) allooate the electoral votes within each Boston Globe, the Norfolk Virginian­ Since these contributions are divided state in proportion to the popular votes cast, Pilot, the Philadelphia Inquirer, the Des among thousands of utmty subscribers-­ making a 40 % electoral vote plurality suffi­ Moines Register, the New York Times, their impact on the average utility bill is cient to choose a President; or Cervi's Journal in Denver, and the Alton, barely discernible. (d) count one electoral vote for the win­ One PSC staffer estimated for instance ner in each Congressional District, with two ID., Evening Telegraph. This series is further documentation that it amounts to only about a penny a additional votes for whomever carries the month to the average residential electric State? of the need for action on S. 607, the Util­ bill. However, it illustrates a lack of tight 6. Do you favor lowering the voting age ity Consumers' Counsel Act, on which supervisory regulation by the PSC. to 18? hearings will resume on Monday before Much of the money goes to agencies which 7. Do you favor President Nixon's reoom­ the Senate Subcommittee on Intergov­ the ratepayers already support as individ­ mendation for a limited antiballistic missile ernmental Relations. uals--such as the various United Funds. system? Mr. President, I ask unanimous con­ The St. Petersburg resident, however, who 8. Would you terminate all public finan­ sent that the St. Petersburg Times arti­ volunteers his "fair share" to the United cial help to students found guilty of partici­ Fund, unknowingly gives to that agency a pating in disrnptive demonstrations? cles and editorials be printed in the second time in his electric bill and a third 9. Do you favor the plan to terminate po- RECORD. time in his telephone bill. 11 tical patronage in the Post Office Depart­ There being no objection, the items For his first donation, the citizen is ment? were ordered to be printed in the RECORD, thanked and claims a tax deduction. For his 10. Do you support the proposal to oonvert as follows: other two contributions, however, it's Flor- 9216 EXTENSIONS OF REMARKS April 15, 1969 Ida Power Corp. and General Telephone Co. Clergy Economic Education Conference, $50 American Legion-Post 252 (Childrens' Christ­ who are thanked and claim tax deductions. to "Truth for Youth," $125 to the Tampa mas Party) $100; Asolo Theater Festival, $50; If he buys natural gas and water and Police Pistol and Rifle Club, $3,665 for Ki­ Auburndale Booster Club, $50; Bartow Pilot sewer service from PSC-regulated companies, wanis Clubs, $454.75 for Exchange Clubs Club (Scholarship Fund), $10; Beta Sigma and if he uses PSC-regulated transportation $2,010.46 for Rotary Clubs and $478 for Jay­ Phi (Crippled Children), $13.58; Childrens' (buses), chances are the citizen is donating cees. Home, Inc., $3,000; Childrens' Hospital Guild, to the United Fund four, five or even six Florida Power & Light--unknown because Inc. (Charity Ball), $50; Civita.n Clubs, times. the commission didn't ask for a list in 1964. $1,179.50. To find out wh.ich other agencies he's help­ A pending application, however, includes $400 Clearwater Symphony, Inc., $25; Commerce ing to support, the citizen must depend on to the Thomas Alva Edison Foundation, $425 Club, $1,316; Committee of 100, $100; Com­ his news services or the commission records. to the Edison Pageant of Light, $1,000 to munity Concert Assn. of Tampa, $100; OUban Sometimes, even the records won't tell Freedoms Foundation, $300 to the "Tax As­ Civic Club, $24; Downtown Assn. of Clear­ him. The commission has no list for the sessors Association," $1,000 to Radio Free water (Betterment), $500; Egypt Temple $151,416 in contributions it allowed Florida Europe, $50 to "Project Alert" and $40 to the Shrine Circus Fund, $48; Exchange Clubs, Power & Light to put in its rates every year "Syrian Lebanese Star." $454.75; Flash Athletic Boys Club, $25; Flor­ since 1964. Here are the dues and contributions of ida. Citrus Showcase, $50; Florida Clergy Eco­ If that company's current application is four of Florida's largest utllity companies as nomic Education Conference, $250; Florida. ·any indication of past practices, however, listed in their latest reports to the Public Club, $150; Florida F'at Stock Show and Sale, customers of FP&L are helping to support the Service Commission: $434.97; Florida SherifI's Assn., $40; Florida Daughters of the American Revolution, the General Telephone Company of Florida: West Coast Orchid Society, $50; Hillsborough Campus Crusade For Christ, the Martin Charitable Contributions: City Sheriff's Posse (Rodeo Tickets-Big County Country Club, the Tax Assessor's As­ American Cancer Society, $240; American Bros.) , $25. sociation and the Syrian Lebanese Star. National Red Cross, $115; Boy Scouts o1 Imperial University Club Polk County, Florida Power Corp.'s latest approved list America: Haines City, $25 (and) Zephyrhills, $500; Jaycees, $478; Junior Achievement of included $23,379 for what it called "various $25; Childrens' Home, $3,000; Childrens' St. Pete, $500; Kiwanis Club, $3,665.49; Lake contributions of less than $1,000 each.'' Home Memorial Fund, $25; Childrens' Home Wales Jr. c. of C. (Flag Service), $25; Latin The PSC chose not to ask the company Society, $25; Citrus Center Boys' Club-­ American Fiesta., $35; Lions Club, $1,506.96; for details, but ordered customers to pay Building Fund, $400; Disabled American Loyal Order of Moose ( Childrens• Christmas for support of agencies known only to the Veterans (Circus Tickets), $100; Easter Seal Party), $25.50; Manatee Players, Inc., $540; utility executives and those who received Guild of Hillsborough County, $100. Manatee River Fair Assn., $182.85; Menina.k the money. Florida Federation of the Blind, $25; Frost­ Club, $260; Optimist Club, $1,133.50; Pilot Florida Power did itemize contributions proof Salvation Army, $25; Girl Scouts, Clubs, $106. of $1,115 to the Wakulla Board of Public $1,025; Goodwill IndUSltries (Enlarge Build­ Pinellas County Park Dept., $250; Pinellas Instruction and $1,249 to the Hamilton ing), $100; Gulf Coast TB & Respira.tory County Science Fair, $50; Police Athletic County School Board-but none to the school Disease Assn., $25; Harry-Anna Crippled League, $100; Rotary Clubs, $2,010.46; San boards of 30 other counties in its service Chlldrens' Home $25; Heart Assn.-Manatee Carlo Opera of Florida, $100; Sarasota Concert area. County, $25; Heart Fund, $25; Heart of Band, $50; Sarasota County Pageant, $35; A check with the two favored school dis­ Florida Girl Scout Council, $25; Heart of Sertoma Club, $3,108.10; St. Pete Armed tricts revealed that neither of the donations Florida Hospital Assn., $1,000; Heart of Forces Luncheon Comm. (Recognition), $100; were in cash. Mrs. Helen Dall, finance direc­ Florida Scout Council, $25. St. Pete Boosters Club (Fla. Little and Major tor of the Hamilton County School Board, Hiker Monument Fund {Tks-childrens' League), $25; St. Pete Civic Opera Assn., said she wasn't aware Florida Power has Home) , $100; Hillsborough County Soc. for $250; St. Pete Museum of Fine Arts (Devel­ made any contribution at all. Crippled Children & Adults, $25; Hllls­ opment Fund), $500; St. Pete Police Dept. "They put some lights up on our new base­ borough County TB & Health Assn., $300; (Ball), $25; St. Pete Progress, Inc. (Industrial ball field and I paid them $1,271.29 on Sept. Lakeland Cancer Fund Drive, $25; Lakeland Development), $750; St. Pete Symphony So­ 18, 1967," said Mrs. Dail. "We thought it was YMCA, $35; Lake Wales Hospital Assn., ciety, Inc., $500; Sunooasters Inc., $215; ·all paid for then ... but I got another $1,000; Lake Wales Salvation Army, $25; Tampa Art Institute, $426.14; Tampa Bay bill last September for $1,550.20 and there March of Dimes, $150; Mease Hospital & Little League, $50; Tampa. Civic Ballet, $50; was a letter with it saying they donated la­ Clinic, $1,000; Meninak CharLty Bowl, $30; Tampa Community Theatre, $60. bor costs of $1,249." Morton Plant Hospital Building Fund, $1,000; Tampa Jaycees (Tickets), $125; Tampa "I really didn't know they donated any­ Polk County Future Farmers of America, Lyric Theatre, $500; Tampa Philharmonic thing," she said, adding that "it's kind of a $25; Polk County Heart Fund, $100; Rotary Assn., $471; Tampa Police Ladies Aux., $15; jumbled up affair." She said nothing had Boys Camp, $22; Salvation Army, $75; Sara­ Tampa Police Pistol & Rifle Club, $125; Tar­ been paid on the second bill-pending clar­ sota County Medical Society, $35; Sarasota pon Springs Power Squa.dron Aux. (Boating ification. County Soc. for Crippled Children, $25. Safety Class), $10; Teen Canteen, $100; The School Supt. William Payne of Wakulla Sarasota. County TB and Health Assn., $25; Players, Sarasota, $24; Toastmasters, $32; County said that Florida Power contribu­ Sarasota Hearing Society, $25; Sertoma Truth for Youth, $50; University Club of tions to his board also were in man-hours-­ Speech Clinic, $25; Sun City Center Shrine 'I1ampa, $655; University of Tampa Athletic to light the high school football field. Club (Crippled Childrens' Home), $25; Sun­ Dept., $358; War On Crime, $1,000; West The biggest Florida Power contribution coast Heart Assn., $25; Tampa Oral School Tampa Sheriff Assn. (United Cerebral), $50; went to Florida Presbyteran College-$60,000. For The Deaf, $500; Tarpon Springs Hospital Women's Hospital Aux. (Medical Equip.), General Telephone itemized donations to Foundation, $1,000; United Appeal of Sara­ $100; YMOA, $1,989; Zonta Club, $56. seven out-of-state colleges and universities, sota, $1,800; United Cerebal Palsy, $119.05; General Telephone total: $111,152.85. including $100 to Yale University. Fewer United Fund of: East Hillsborough, $250; Florida institutions benefitted from the Gen­ Florida Power OOrporation: Greater Bartow, $200; Greater Lakeland, Florida. State University, $2,500; University eral Telephone subscriber-although those $1,300; Greater Tampa, $20,000; Manatee listed received larger contributions. of Florida, $1,900; Florida Presbyterian Col­ County, $1,400; Pinellas County, $12,000; and lege, $60,000; Hamilton County School Board, The companies apparently draw no dis­ South Sarasota County, $380; United Givers tinction between private and tax-supported Fund, $1,450; Upper Pinellas Assn. For Re­ $1,249; St. Petersburg Museum of Fine Arts, institutions as worthy customer support. tarded Children, $100; Winter Haven Hos­ $1,000; United Appeal, $3,650; St. Petersburg General Telephone is collecting rates to pital Building Fund, $2,500. Science Center, $1,200; Florida Suncoast raise $250 it gave the Pinellas County Park Education Contributions (General Tele­ Opera Association, $1,157; St. Petersburg Department. FP&L, in its pending applica­ phone): Symphony, $1,000; United Fund, $17,024; tion, claims $12,032.83 in contributions to American International College, $25; Bow­ Rollins College, $5,200; Florida. Citrus Open "City and County Governments." doin College, $25; Citadel Development Foun­ Golf Tournament, $1,000; Junior Achieve­ Some other dues or donations now cov­ dation, $25; Florida College, $1,052; Florida ment, $1,680. ered in the operating revenues of utilities Presbyterian College, $5,000; Florida West Stetson University, $4,500; Wakulla Board whose reports were examined by The Times: Coast Educational TV, $1,000; Gator Football of Public Instruction, $1,115; Trinity Pre­ Florida Power Corp.: $2,500 to Florida Boosters (Scholarships to H. Off.), $100; Hills­ paratory School, $1,000; All Ohildren's Hospi­ State University, $1,900 to the University of borough County Quality Education Council, tal, $5,000; Morton Plant Hospital, $2,000; Florida and $1000 to the Florida Citrus Open $1,000; Jesuit High School Foundation, $200; Salv:atlon Army, $1,000; Heart of Florida Hos­ Golf Tournament. Muskingum College, $25; New College, Inc., pital, $3,000; Florida Gulf Coast Symphony, Tampa Electric-$1,673 to "churches,'' $5,000; Science Center, Pinellas County, $200; $1,000; Florida State Museum, $3,900. $5,256 to "schools," $838 to the "Illuminating Stetson University Law School, $1,000; Syra­ Subtotal, $131,071. Engineering Research Institute," $1,815 to cuse University, $25 University of Michigan, Various contributions of less than $1,000 "State Welfare Activities," and $1,000 to the $25; University Of South Florida. Foundation, each ( 417) , $23,379. University of Florida Foundation. $360; University of Tampa, $11,081; Ya.le Total, $154,450. General Telephone-$5,000 each to Florida University, $100. Tampa Electric Company: Presbyterian College in St. Petersburg and Civic promotion (General Telephone): United Fund, $33,265; University of Tampa New College Inc. in Sarasota, $1,000 to Gov. Alcalde of Ybor City, $25; Allied Arts Coun­ Library Fund, $15,000; Children's Home of Kirk's War on Crime, $250 to the Florida cil of Sarasota & Mana.tee County, $100; Tampa, $5,463; Schools, $5,256; Little League April 15, 1969 EXTENSIONS OF REMARKS 9217

& Pony Colt Baseball Leagues, $5,222; Mac­ Four Freedoms Civic Olub, $50; Freedoms rate payer has no choice in the dectsion as to Donald Training Center, $5,000; St. Leo Col­ Foundations, $1,000; Future Farmers of who receives the contributions and cannot lege, $5,000; Community Welfare Activities, America, $140; Friends of the Retarded, $25; deduct such contributions in computing hts $4,918; Power System Institute-Gainesville, Garden Clubs & Flower Shows, $1,851.74; Girl individual tax return."-Testimony of Robert Florida, $4,500; Civic, $3,019; St. Joseph Hos­ Scouts, $1,555; Goodwill Industries Units, E. Bathen before the Florida Public Service pital Building Fund, $2,500. $1,900; Hadassah Chapters, $45.82; Handi­ Commission, November 1964. Educational and Cultural, $2,138; Florida capped of South Broward Inc., $12; Ella Piper Florida citizens pay thousands of dollars College, $2,000; South Florida Baptist Hospi­ Harvey Memori-a.l Committee, $30. annually in charitable, civic and other con­ tal, $2,000; WEDU Educational TV, $1,939; Heart Fund Associations, $350; Helping tributions and dues hidden in their utility Charitable, $1,915; Tampa Philharmonic As­ Hand Inc., $15; Hialeah-Managua. Sister City bills because the Public Service Commission sociation, $1,875; State Welfare Activities, Committee, $24; Historical Societies, $100; (PSC) thinks it's "reasonable." $1,815; Tampa Federation of Garden Clubs Home Builders Association, $20.07; Hospitals Records and interviews also indicate that: Building Fund, $1,673; Churches, $1,662; and Nursing Homes, $22,201.12; Improvement "Reasonable" usually is whatever the util­ Tampa Oral School for Deaf, $1,620; Hills­ Associations, $125; Independent Order of Odd ity company says it is. borough County Quality Education Associa­ Fellows Lodges, $30; Jewish Welfare Federa­ The commission frequently ignores its own tion, $1,500; Tampa Bay Art Center, $1,500; tion, $25; Junior Achievement Units, policies concerning contributions and dues. National Welfare Activities, $1,172; City of $1,756.25; Junior Chambers of Commerce, It makes little effort-and has less man­ Tampa. Community Relations Department, $1,246.58; Junior Conservation Club, $10; power-to determine whether contributions $1,000; University of Florida Foundation, Junior Deputles, $10; Junior Service League meet PSC policies or whether the agencies $1,000; Illuminating Engineering Research Orthopedic Center, $112.50; Junior Welfare who received them even exist. Institute, $838; Girl Scouts of America., $795; League, $15.85; Justice of Peace & Constale Under the PSC's procedure, companies Citrus Center Boys' Club, $500. Association of Florida, $10; Kiwanis Clubs, could collect rates set high enough to finance Total, $116,085. $1,522.90. approved contributions-and then pocket the Florida Power & Light Company is asking Knights of Columbus, $30; League of money. for approval of these expenditures in its cur­ Women Voters Chapters, $75; Libraries, $219; PSC Chairman William T. Mayo, in de­ rent late case! Lions Clubs, $617.98; Little Theatres, $100; fending commission policy, said that chari­ American Cancer Society Units, $835; March of Dimes Chapters, $552.36; Marine table and civic expenditures are "Just a part American Legion Posts, $182.50; American Corps Leagues, $150; Mental Health Associa­ of the cost of doing business in a commu­ Nuclear Society, $530.31; American Red Cross tions and Foundations, $1,037.50; Merchant nity. Any reputable business will be ap­ Units, $1,849.50; American Rescue Workers Association, $75; Military Order of World proached (for them) ..• it can't avoid it." Units, $130; Amvets, $25; Animal Rescue Wars, $20; Loyal Order of Moose, $102.50; He said the regulated utility, which in Leagues, $30; Apprentice Conferences and Moral Rearmament Program, $28; Museum of most respects is a monopoly, needs public Committees, $125; Art Le.agues, Councils and Arts, Science, Natural History, etc., $1,990; "good will" as much as any other business. Institutes, $1,985; Armed Forces of the Palm Music Clubs, $3,502.07; National Association Mayo feels the consumers should pay for Beaches, $75; Associated Charities, $25; As­ of Postmasters, $50. that good will to a "certain reasonable ex­ sociation of Legal Secretaries, $50. National Association of Power Engineers, tent." I! the commission decides an ex­ Athletic organizations, $4,225.15; Band $100; National Council of Crime & Delin­ penditure is not reasonable, he said, it dis­ Parents and Boosters Associations, $614.50; quency, $270; National Municipal League, allows it for rate purposes and the company Big Brothers, $500; B'nai B'rith Women $100; National Socia.I Welfare Assembly Inc., and stockholders shoulder the cost. Chapters, $122.50; Booster Clubs, $1,727.54; $100; Navy League, $20; Occupational Center Asked to define "reasonable," Mayo said Boys Clubs, $4,530; Boys Ranches, $32.50; for Handicapped, $15; Opera.Guild of Florida, that "they (the companies) don't come in Boy Scout Troops, $743.34; BUilders and $200; Optimist Clubs, $121.79; Pa.rent Teach­ with ridiculous claims ... they know what Builders & Contractors Associations, $372.50; ers Associations, $67; Pageant Association & we'll approve." Business Associations, $125; Business Execu­ Contests, $1,692.50; Palmetto Clubs, $80.89; He said the PSC once decided a particular tive Women's Club (Altrusa Club), $89.67. Police and Peace Ofilcers Associations, college contribution was unreasonable, but Campus Crusade for Christ, $50; Cerebral $2,778.89; Project Alert, $50; Project Hope, he couldn't remember which college or how Palsy Association Units, $70; Chambers of $250; Propeller Club, $100. much money was involved. Commerce, $9,067.72; Charities, Inc., $40.25; Property OWners Committees, $500; Quar­ PSC Accounting Director John D. McClel­ Children's Home of South Florida, $60; Chil­ terback Clubs, $70; Quota Club of Florida., lan could remember cnly one contribution dren's Service Bureau, $250; Christian Rec­ $12.88; Radio Free Europe, $1,000; Order of which was not approved for rate purposes ord Braille Foundation, $15; Churches and Rainbow Girls, $10; React Club of Putnam in his ten years with the agency. Temples, $2,644.26; Citizens Committee for Oounty, $10; Restaurant Association, $125; "It involved something about a monument Better Schools, $100; Citizen Safety Coun­ Rotary Olubs, $471.55; SS Providencia. Inc., to Sam Houston in Texas," said McClellan. cils, $3,200; City and County Governments, $50; Safety Organization Inc., $35; Salvation $12,032.83; City of Hope, $25. Last year, the commission approved a Army Chapters, $632; Scholarship Funds, $60,000 contribution from Florida Power Civil Air Patrol, $12; Civitan Clubs, $45; $410; Schools, $140,299.79; School Safety Coast Guard, $20; Combined Jewish Appeal, Corp. to Florida Presbyterian College. That Patrols, $320; Manatee County Service Club, was nearly half of Florida Power's total con­ $5,000; Committees of 100, $256; Community $150; Sertoma Clubs, $105; Servicemen's Cen­ tributions for the test year. & Civic Clubs, Councils and Associations, ters, $50; Shrine Temples, $343; Singing $1,318.76; Cultural Foundations, $760; Co­ Clubs, $251.47. The PSC also approved $250 in contribu­ operate Charities, $200; Council of North tions to seven out-of-state colleges by Gen­ Sorup Box Derbys, $63,75; Soll & Water Con­ eral Telepohne Co. of Florida.. County Drainage District, $50; Council for servation Districts, $10; Sororities, $65; St. International Visitors, $100; Council for Con­ Augustine Restoration Inc., $2,500; Sweetin Commission policy, as outlined by McClel­ tinuing Education for Women, $100; Martin Foundation, $25; Syrian Lebanese Star, $40; lan, allows for charitable and civic contribu­ County Country Club, $30; Dade County TB & Respiratory Disease Association Chap­ tions and dues to be put in the rates only if Community Relations Board, Equal Employ­ they are itemized in a report during the rate ters, $320; Tax Assessors Association, $300; case investigation. ment Opportunity T.ask Force, $2,840; Dade Theatres, $2,595; Toastmasters, $25; TV No. Foundation Inc., $200. 2 Community Foundation, $1,156; U.S.O., $50; Political expenses or dues or donations to Daughters of American Revolution, $25; Labor Union Lodges, $300; United Cerebral social clubs are not considered legitimate Diversified Cooperative Training Club, $25; Palsy, $50; United Fund&-Various, $100,- costs for rate purposes by the commission, Debbie Road Memorial Service League Foun­ 929.97; Veterans of Foreign Wars Chapters, McClellan said. dation, $400; DeMolay, Order of, $20; DeSoto $92.50; Volunteers of America, $15; WEDU­ He added that such expenses are charged Celebration Inc. (Pageant), $150; Disabled TV, $500; Women's Clubs, $490.25; Women's to the stockholders "as a matter of policy American Veterans Posts, $135; Easter Seals, American Organization for Rehabilitation and probably as a matter of fact." $100; Thomas Alva Edison Foundation, $400; through Training, $30; Young Men's Chris­ He couldnt' be sure. Edison Pageant of Light, $425; B.P.O.E, tian Associations, $1,940; Young Activities He couldn't be sure because expenditures $117.57; Exchange Clubs, $180; Executives Associations, $110.50; Youth Groups, $57.60. described as vaguely as "various contribu­ Association, $9.36; 4-H Clubs, $1,230; 52 As­ Total, $371,698.33, less "adjustments made tions" totalling $23,379 received commission sociation, $50; Fair Associations, $1,150; Fair­ during test year ($4,608.31) ." Equals $367,- approval in one. case last year-and neither childs Tropical Gardens, $500; Fellowship of 090.02. McClellan nor the commission asked for Christian Athletes, $85; Fire Departments details. and Fireman's Associations, $1,765.50; Flor­ [From the St. Petersburg (Fla.) Times, Mar. He couldn't be sure because Florida Power ida Ballet, $250; Florida Cattlemen's Associa­ 26, 1969] & Light Co. (FP&L) has been collecting tion, $100; Florida Cross & Sword, Inc., $525; $151,416 in unspecified contributions and Florida Foundation for Future Scientists, PSC OKAYS GIFT IF IT'S "REAsONABLE" dues every year since its last completed rate $200; Florida Engineering Society, $110. (By Roland Page) case in 1964. Florida League of Municipalities, $500; "Flortda Power Oorporatton should not In its current rate case, FP&L is asking the Florida Letter Carriers, $25; Florida Prosecu­ be permttted to deduct contributions made commission to raise that figure to $367,090 tors Association, $100; Florida Public Chari­ to charitable, religious and ctvic organiza­ and include such items as a $300 gift to the ties, $200; Florida Recreation Association, tions from test year earnings which amount­ "tax assessors association" and a $30 payment $15; Florida Soil Conservation Society, $300; ed. during the test year to $182,247, since the to the Martin County Country Club. CXV--581-Pa.rt 7 9218 EXTENSIONS OF REMARKS April 15, 1969 Records indicate the PSC staff questioned backyard well, chances are you have been Because the auditor's findings aren't made General Telephone's $1,000 donation to Gov. paying for both such items for years. public, the consumer has little knowledge Claude Kirk's War on Crime debt, but the Chances are also that you have helped the of what he has accomplished. commission approved it. telephone company win government ap­ And because of a long-standing procedure, It also approved a payment of $655 to the proval to raise your rates, helped the electric the commissioners aren't much better off in University Club in Tampa and numerous company pay its income taxes, paid on a that respect. Commerce Clubs and other agencies which "Reddy Kilowatt" blllboard, contributed to "By instruction," said McClellan, "we (the appear to be almost entirely social in nature. country club dues for total strangers or auditors) don't detail things that are right-­ "We don't know what they are," McCellan picked up the blll for liquor consumed at a just where we find some question or a mat­ said of many of the itemized recipients. "And party to which you weren't invited. ter of exception." we usually don't check it out because the And the State of Florida offers little as­ Probably 99 per cent of the policy ques­ amount is so small." surance that lobbying and political expens­ tions in a given rate case are decided by com­ His staff, which varies in size between eight es don't also creep into some of your monthly missioners, nor even by McClellan. and ten accountants because of rapid turn­ utility bills. The burden is on the auditor-and it over, has little time to identify agencies The "state" in this case is the Florida might be an impossible assignment. itemized--or even to demand more detail. Public Service Commission (PSC), which Item: The Times recently was allowed to By the same token, McClellan couldn't be regulates rates of privately owned public view the workbook of the auditor who sure whether companies are making money utllities in Florida. checked Tampa Electric Co.'s books prior or losing money under a procedure which As part of the ratemaking process, the to a rate increase. makes it possible for them to pocket rate PSC must calculate legitimate costs incurred The only "questionable" entry he had revenue supposedly earmarked for charity. by the company in providing service--and brought to Tallahassee was a $19,812.23 pay­ Florida Power, for instance, reported $182,- then pass those costs on to the customer. ment to N. W. Ayer & Son-an advertising 247 in dues and donations for the test year Such expenses usually cover salaries, ve­ firm which handles much of the "Electric ending Sept. 30, 1964. hicles, maintenance, wages, depreciation, Companies Advertising Program (ECAP) ." So the commission added that figure to supplies, fuel, advertising, research, legal In the past, the Internal Revenue Service the company's rate structure when it reduced and professional services, promotion, pub­ (IRS) refused to allow utilities to deduct rates in 1965. lic relations, and all taxes. all bills pa.id to that firm because of the In a separate report, filed annually with All costs of company appearances before political nature of some of its advertising. the commission, Florida Power said its actual the commission, whether for a rate increase This time, however, the PSC auditor noted 1965 contributions were $125,641 and its or a rate reduction, are also covered. that "company officials" said N. W. Ayer civic club dues and expenses were $15,613. Since utilities, in most respects, have no had depoliticized its advertising and IRS That totalled $141,254--or $40,993 less than competition-there would appear to be no has changed its policy. the new rates were to provide annually. compelling reason for them to be frugal Florida's commission accepted the full Did the company realize a gain? with their money. Government regulation amount as a legitimate operating cost. Mc­ "Theoretically, yes," said McClellan. He and a captive market guarantee them a Clellan said the policy switch reported by said the PSC doesn't study company dues profit on service regardless of expenditures. the company was not verified with IRS. and contributions between rate cases. The PSC theoretically acts as a substitute Item: A neighbor of Tampa Electric Co. Under the system, figures are frozen into for competition in this respect. It theoreti­ Board Chairman William C. Macinnes com­ a company's rate structure until the com­ cally s~rves as watchdog of the people, see­ plained to the commission in December 1967 pany, PSC, or the public files for a new rate ing that companies do not collect excessive that Macinnes was using company labor case--during which new reports with new profits from their customers-and that all and equipment to improve his home. figures are considered. operating costs charged to the customers are It was a rare case of the public manag­ The company, meanwhile, can contribute legitimate and reasonable. ing to assist the commission in spite of a more each year than the last case allowed That is the theory. system which discourages such help. and charge it to the stockholders, or less than Records and interviews indicate that the PSC Chairman William Mayo said that the allowed and keep the difference. Florida commission, like those of most states, nothing could be done about it, that the In the case of Florida Power & Llght, could not adequately police operating commission has "no authority" to prohibit stockholders apparently are absorbing $211,- costs even if it wanted to. such use of company labor and equipment, 674 in excess contributions reported for the Indications are that the three elected but that the next time the company applied year ending May 31, 1968. Florida commissioners pass on millions of for a rate increase, such items would be dis­ That is why the company seeks to increase dollars in costs to the consumer every year allowed as evidence it needs more money to its contribution allowance by that amount on little more than the utility's word that operate. in its current rate case. all is proper. More than a year later, and shortly after Chairman Mayo said dues and donations The words "miscellaneous" and "other" Tampa Electric was granted a $2.2-million amount to "peanuts" when spread among all invariably are key items in a privately owned rate increase, Mayo was reminded of the of a company's customers. McClellan agreed, utility company's exhibit before the com- Macinnes incident. estimating the total impact at about one mission. · "We asked Mr. Macinnes if the work was cent on the average monthly bill. "Miscellaneous" appeared 14 times in the in any way paid for by the customers," said Florida is not alone in allowing dues and operation costs of one company last year, at Mayo, "and he said no." donations to be charged to utllity customers. a total of $2.8-million. McClellan couldn't remember verifying U.S. Sen. Lee Metcalf, D-Mont., said in 1963 One general category, entitled "Miscellan­ this in company books--or even being or­ that about half the states did so. eous General Expenses," was itemized four dered to do so. Even the Federal Power Commission, which ways. Of the four entries, the costliest single Item: McClellan said he doubts companies banned the practice for many years, reversed item was listed as "other"-$432,740.23. can slip country club or social club member­ itself in 1964, decided that "contributions of Other entries which might have been­ ship dues into their miscellaneous expendi­ a reasonable amount to recognized and ap­ but were not-elaborated upon were: "Mis­ tures, because the auditor would identify propriate charitable institutions constitute cellaneous sales expenses $341,718;" "Recre­ and question them. a proper operating expense." ational and Educational Expenses $102,- Yet dues to the posh University Club in The decision was not unanimous. One fed­ 016.20;" "Advertising $359,423.61;" and "in­ Tampa and other organizations were openly eral power commissioner, David S. Black, dis­ stitutional advertising $279 ,341. 79." reported to the commission in charitable sented. "The financial burden of donations The public seldom knows what this money contribution reports last year, and they were to charities,'' said Black, "should not be goes for because the commission, upheld by approved for reimbursement by the con­ shifted to the consumer who has no voice in the Florida Supreme Court, consistently sumer. their selection." denies citizens permission to check company Item: General Telephone Co. of Florida books for themselves. spends an estimated $6,000 to $7,000 per Even the commissioners seldom know what [From the St. Petersburg (Fla.) Times, year on a lavish annual "press party" in they're telling the consumers to finance be­ which hundreds of news, public relations, Mar.27, 1969) cause they don't ask to see the supporting and advertising professionals are treated to THAT PUZZLING "OTHER" PADS OUT UTil.ITY company books. a buffet and unlimited drinks. RATES Nor do they ask the companies to itemize The expenditure never appears in the (By Rola.nd Page) such categories as "miscellaneous general" public record because, as McClellan says-­ "Mr. President, the public has the right because, as PSC Accounting Director John it's probably hidden in miscellaneous sales to know how public service corporations D. McClellan put it, "that would be cumber­ expenses" and "I would consider it part of spend the funds collected from rate pay­ some." operating a business." ers. This country has the technology to see All of the public's theoretical prQtestation Item: The PSC's chief accountant candidly that the information is provided." U.S. Sen. frequently is vested in the ab111ty of discre­ admits he could have 20 more auditors and Lee Metcalf, Congressional Record, Jan. 24, tion of an $8,000 PSC auditor who virtually still miss lobbying and political expenditures 1969. lives with the company for several weeks hidden under "miscellaneous." Want to buy a top-notch "miscellaneous?" prior to a hearing. Parties for legislators, he said, might ap­ Or a brand new "other?" This auditor checks the actual company pear in company books as "entertaining busi­ Unless you cook from a wood stove, order books, especially unitemized claims, to see ness associates." Lobbying might be called groceries by carrier pigeon, or drink from a that they support the company's exhibits. "legal fees." April 15, 1969 EXTENSIONS OF REMARKS 9219 "Who am I to question it," says McClellan. So when liberalized depreciation was ma.de The Federal Power COmmission would di­ "Were accountants ... not detectives." available to utlllties in 1955, the PSC ordered vide the average $150-m111ion rate base into companies to place their tax "deferrals" into $12-million profits and come up with an 8 (From the St. Petersburg (Fla.) Times, Mar. reserve accounts for the "future." per cent rate of return-which Metcalf would 28, 1969] That was 19 years ago. call "overcharge." The old debt has not come due. The com­ When it first adopted the year-end method UTILITIES PLAY THE RATING GAME panies keep growing at faster and faster in 1953, the PSC said it was helping ut111ties (By Roland Page) rates. The "reserve" overflows. meet a "mounting economic boom" created U.S. Sen. Lee Metcalf, D-Mont., says four Florida Power Corp. customers of 1955 by growth problems and demands for more investor-owned electric utilities in Florida started that company's "reserve" for the service. "overcharged" their customers $69.48-milllon "future." They've been adding to it ever "Those problems have not abated," it said in 1967. since so that it now totals $26.6-million. in 1966, "but on the contrary, have in­ The Florida Public Service COmmission Last year's contribution was $3.2-milllon. creased." (PSC) has ordered only $6.5-milllon in rate Since com.panies keep this "tax" money, In an appeal contesting the use of the reductions since then. the Federal Power Commission enters it as yearend rate base last year, the Florida Su­ Metcalf says Tampa Electric Co. alone col­ part of their "net operating income." The preme Court "expressly commended" the av­ lected $11.77-million too much from its cus­ PSC does not. erage rate base as the "sounder and better tomers in 1967. Hence one of the major differences which practice" and said it should be used in future BUT THE PSC has raised that company's contribute to Metcalf's "overcharge." rate cases. rates $2.2-milllon since then. The companies and the Florida PSC con­ "In the absence of the most extraordinary Metcalf says Florida Power Corp., Florida tend that this state is growing faster than or emergency conditions or situations," said Power & Light Co. and Gulf Power Co. over­ the rest of the nation and that utilities in the court, "average investment during the charged $17.74-m111ion, $33.58-milllon and the past have financed "tremendous expan­ year should be the method employed by the $6.40-mi111on respectively in 1967. sion programs" to provide service to a boom­ commission." But the PSC has reduced rates of only ing area. The court declined to make that an order, Florida Power Corp. since then-and then The great need, said the PSC in an order and it upheld the PSC method in that par­ only by $6.5-mi111on. affirming its tax treatment last year, is for ticular case because "we cannot substitute The Federal Power Commission s.ays Flor­ capital to enable companies to provide fac111· our judgment for that of the commission." ida Power enjoyed an 8.11-per-cent rate of ties to meet the demand. Within less than a month, however, on return in 1967. It quoted Dr. Josephus Parr, an economist, April 9, 1968, the PSC ordered a $4-million But the PSC said it was only 6.62 per cent who said total reserves from liberalized de­ rate reduction for Florida Power Corp., and in a rate case since then. preciation for Florida utlllties totalled $46- switched to the average rate base. THE PSC notes that it ordered a net $43.3- million. The rate base policy switch alone was re­ m111ion in electric rate reductions from 1957 "He was particularly interested in these sponsible for $734,023 of the rate reduction. to 1967. reserves," said the commission, "because they The commission said the timing of its ac­ But Floridians have continued to pay some indicate the additional financing necessary tion was "purely by coincidence." of the highest ut111ty bills in the land and for their replacement." The policy change was short-lived. In a companies have collected profits way above The reserves are used to purchase new $1.5-million rate reduction last December, the national average since then. plants. Florida Power was placed back on the year­ The name of the game is regulatory gym­ Commissioners cite the plight of General end system. nastics. It can be played with a dozen sets of Telephone Co. of Florida in mustrating what "There still is little difference in the year­ rules producing opposite results. can happen if a utility falls behind the end and average investment rate base," the Metcalf and the Federal Power Commis­ growth rate of its service area. PSC acknowledged. sion usually choose rules that would result General Telephone, they note, inherited an But it said Florida Power's capital needs in dollars for the consumer-if they could antique telephone system during a boom for the five-year period 1968 to 1972 will be set the rates. period and still is suffering from a severe about $400-million. BUT IN Florida, the PSC is the rate-mak­ service problem. "The financing of this program, made nec­ ing body. The c.ompany recently was granted a $4.2- essary by the unparalleled growth of the And it seems to prefer the utility rulebook, million rate increase to help to meet financial company's service area . . . will require real­ especially when the purse is big. demands put on it by growth. The PSC at istic earnings," the commission said. It Take, for instance, taxes which utilities the same time ordered it t.o put up $1-million added: "We are convinced that the use of collect from their customers and pay to them­ bond and promised a refund of the higher the year-end rate base . . . will materially selves, and use of the year-end rate base. income if the company fails to improve its assist tn the successful financing of this Taxes are considered part of the utility service by June 30. program." company's operating expenses when setting General Telephone doesn't use liberalized Opponents of this philosophy contend: rates. Hence customers pay the company's depreciation, but it does take advantage of Stockholders rather than consumers debt to Uncle Sam. That is standard. similar tax breaks. should provide capital for the company. BY TAKING advantage of several favor­ It also enjoys the benefits of the "year-end Growth also means more business and able features in the tax laws, however, com­ rate base," another PSC policy neither recog­ more income for the utilities and the year­ panies always pay the government less than nized by the Federal Power COmmission­ end rate base fails to consider those benefits. they've collected. nor by the Federal Communications Commis­ Use of the year-end rate base, deferred tax The companies, and the Florida commis­ sion. treatment, and other PSC policies hide the sion, say this money should not be refunded It works this way: actual profit companies are receiving. yearly via lower rates for the customers. "Company A" might have $100-milllon in­ c. W. McKee Jr., comptroller of Florida. In hearings last year, one expert hired by vested in plant and equipment (rate base) Power Corp., concedes raising of capital is the PSC said the rates of six major electric to provide service to its customers as of Jan. and telephone companies could have been re­ 1, 1967. During the year, however, it adds the stockholder's job-not the consumer's. duced a total of $32.2-million if the tax pol­ new plant, so that by Dec. 31, it has $200- Asked why the PSC doesn't raise the rate icy were changed. milllon invested. of return whenever a company needs expan­ It was not. Problem: If a commission decides Company sion money, McKee replied: "I guess it Probably the most controversial and lucra­ A should make a 6 per cent rate of return wouldn't be politically expedient--Metcalf tive of the tax breaks is "liberalized deprecia­ on its investment, should it take 6 percent of would take the higher rate of return and tion." Roughly, it allows utilities and other $100-million and set rates to produce $6- issue a news release." industry to depreciate new property for tax mi111on in profits; or should it take 6 per cent Despite $5-million in rate reductions last purposes at a faster than normal rate. of $200-million to produce $12-million in year, Florida Power's profits jumped $2.3- THE PSC accepts company interpretation profits? million over those of 1967. of these benefits as tax "deferrals" rather The Federal Power Commission, the Fed­ Since 1962, the company has enjoyed a 64 than tax "savings." eral Communications Commission and 26 per cent increase in its profits. Last year, they It reasons that the taxes on any single state commissions (as of 1967) say neither totalled $25.6-milllon. item will come due at the end of the rapid extreme would be fair. Meanwhile, the company isn't confining depreciation process. They use an "average" investment rate its expansion to the service demands forced Present ratepayers, says the PSC, should base (6 per cent of $150-million for a $9-mil­ upon it. not get those first-year benefits through low­ lion profit) on the theory that it best repre­ Three weeks ago, the W111iston City Coun­ er rates "at the expense of future customers sents the company's total operation for the cil learned Florida Power wants to buy that or subscribers." test year. city's municipal electric system. Opponents, including rate consultant Rob­ The PSC's use of the year-end method amounts to another big part of Metcalf's ert E. Bathen, argue that companies add new No "OVERCHARGE," THANKS TO THE PSC properties every year, claim new deprecia­ overcharge. tions, and accumulate more and more money. Suppose, for example, the PSC adopted (By Roland Page) The PSC answers that if the companies Metcalf's 6 per cent rate of return for "Com­ Did Florida Power Corp. collect $17.7- stop growing taxes "deferred" are likely to pany A''-giving the company a $12-million million too much from its customers in come due. profit on a $200-million year end rate base. 1967-as charged by Sen. Lee Metcalf? 9220 EXTENSIONS OF REMARKS April 15, 1969 Yes--under the Federal Power Commis­ Florida Power Corp. earnings as Boyd also recommended six-year terms !or sion's method of computing company earn­ computed by the Florida commissioners-the terms used by 35 of 65 ings, rates of return and investment in Public Service Commis­ regulatory commissions in other states, ac­ plant. sion--Continued cording to a recent U.S. Senate committee Yes-under the Montana Democrat's Difference in income ______-$1, 100, 000 report. recommendation of 6 per cent as a "fair" Taxes collected on extra in- His b111 incorporating these features died rate of return-which also was the latest come ------O in a legislative committee and PSC members rate of return prescribed by the federal com­ Total "overcharge"------O continue to be elected statewide to four-year mission in an electric company case. terms. Source: Florida Public Service Commis­ As a result, three career politicians {all No-under the Florida Public Service sion, by special request. Commission's (PSC) methods of com­ Democrats) with no training in the technical munication. Florida Power Corp. earnings as or professional fields involved in regulation, No-under the Florida PSC's current "al­ computed by the Federal now head the PSC. Power Commission: lowed" 7.12 per cent rate of return for that R.a.te base ______$435,500,000 Law requires that they conduct their hear­ company. ings like a court-but none of them have law The chart below shows how Metcalf, using Net operating income______$35, 300, 000 degrees. Their responslbiUties require deci­ Federal Power Commission figures, arrived Actual rate of return (per- sions involving questions of economics, ac­ at the "overcharge" he assigned to Florida cent) ------8.11 counting and • • • those fields, and none of Power Corp. Fair rate of return (per- them are required to have training in those It also shows how the PSC, using its figures, cent) ------6 fields, and none of them do. would come up with different conclusions. Net operating income at 6 Some of their own sta1f members complain Both the state and federal commissions percent ------$26,170,000 privately that this lack of training makes it based their computations on reports filed by Difference in income (called difficult to get technical points across to the the company for the calendar year 1967. "Overcharge" by Metcalf) _ $9, 200, 000 commissioners. The Federal Power Commission calculated Taxes on extra income______$8, 500, 000 While in office, the commissioners are sub­ Florida Power had an "average" investment Total "overcharge"------$17, 700, 000 jecte(i to what one attorney called "constant in plant and facillties (rate base) of $435.5- Sources: Congressional Record, and Sta- pressure and lobbying" from utility repre­ milUon in 1967. tistics of Privately Owned Electric Utillties sentatives. The Federal agency also calculated by its in the United States, 1967. "The people who contact them are the standards that the company cleared $35.5- utilities,'' be said. "You don't have the con­ mlllion in net operating revenue. sumers coming up to talk to them once or [From the St. Petersburg (Fla.) Times, twice a week." Florida Power realized, therefore, an 8.11 Mar. 29, 1969] per cent rate of return on its investment The attorney asked not to be identified. He ($35.3-million is 8.11 per cent of $435.5- PSC: LrrrLE R.EASON To FAVOR CUSTOMERS represents a utility company before the com­ million). Metcalf thinks 6 per cent ls a fair (By R.oland Page) mission. rate of return. The three members of Florida's Publlc Consumers, he said, have no organization Six per cent would have produced $26.17- Service Oommission (PSC) have little reason with the money, the will or the know-how million in net operating revenues by federal to favor utility customers in any given rate to match the utilities in their "informal dis­ standards--or $9.2-milUon less than the com­ case or policy decision. cussions" with commissioners. pany actually earned. The difference, to Met­ They were elected to office in campaigns He pointed to the PSC's handling of the calf, is "overcharge." nearly ignored by the customers but par­ corporate federal income tax surcharge as an In addition, Florida Power was figured by tially financed by utility company repre­ example of the results. the federal commission to have collected sentatives. The PSC granted two major ut111ties per­ from its customers $8.5-milllon in corporate They are visited or telephoned almost daily mission to pass the surcharge on to their cus­ federal income taxes to cover the "over­ by the highly organized utuities--but seldom tomers. charge" (about 92 cents for each dollar of by the unorganized customers. It was learned the commissioners ignored income). Total-$17.7-mUUon. They are not trained in the vital regula­ the recommendation of their own general The Florida Publlc Service Commission tory fields of economics, law, engineering or counsel in approving the requests without a (top line) , by using the so-called "year end accounting, and must depend entirely on the public hearing. rate base,'' always gives companies credit for a guidance of others. Utility representatives had convinced them bigger investment than does the federal They get much "guidance" from the com­ such aotion was proper. panies, some neutral guidance from the PSC A furor ensued, with one state senator commission. threatening a legislative investigation. The In this example, the PSC rate base is $35.7- staff, but little guidance from the customers, who, incidentally, foot the bill both for the commission rescinded its order and told the milllon higher than the federal computation. companies to return what money they had Meanwhile, the PSC figured net operat­ companies and for the staff. They must seek reelection every four years, collected. ing income for 1967 at only $32.2-million­ In a public hearing the situation is usually or $3.2-million less than the federal figure. and hence worry about campaign money dur­ ing the last two years of any given term. the same. This is due mainly to the PSC's tax policies. Companies haul in mountains of pre­ It treats deferred taxes as an operating Former Florida PSC chairman Alan Boyd acknowledged 10 years ago the problems cre­ pared testimony and hire some of the na­ expense and thus deducts them from net tion's leading economists and other experts income. ated by statewide election of Public Service Commissioners. to advance the company point of view on a The combination of higher rate base and regulatory issue. lower income always makes for a lower rate "There ls little interest in the commission political campaigns,'' he wrote, "and little All company expenses in a hearing are paid of return-in this case, 6.85 per cent. for by the consumers through their rates. Since the PSC thinks 7.12 per cent, rather knowledge on the part of the public of whom Hundreds of customers might appear in than 6 per cent, ls a "fair" rate of return or for what they may be voting." opposition to the company view, but, as Boyd for Florida Power, the company is in no Boyd, who later became the first U.S. sec­ retary of transportation, said a candidate's once pointed out, "the opinions of private danger of a rate reduction. citizens who are not experts is valueless, be­ A 7.12 per cent return by PSC standards ability to raise money for his campaign ls cause they cannot be considered in reaching would have produced $33.4-milllon net therefore "severely restricted" and utility a decision." operating revenue--or $1.1-mllllon less than companies "are in a position to exercise tre­ mendous power in selecting the candidates." "The commission," agreed Pinellas County the company was figured to have earned. Atty. Daniel Martin, "can't deny a rate in­ Thus, to the PSC, there's no overcharge. He also noted that it usually takes a new commissioner at least two years of his four­ crease just because some organizations pass Florida Power Corporation: Are its rates year term to understand the complexities of resolutions saying they're against it-the fair? Or are they an overcharge? utility regulation, and that "he then spends commission has to have valid evidence that It all depends whose figures you use. This the rest of the time worrying about whether the rate increase isn't needed." table shows how the computations of two he can be reelected." Valid evidence only can come through agencies can produce different answers: Boyd recommended the so-called "Missouri experts-and experts are expensive. Florida Power Corp. earnings as Plan" of selecting commissioners. Under it The Pinellas County Commission hired one computed by the Florida prospective commissioners are "nominated by such expert several years ago, R.obert E. Public Service Commis­ the governor, supposedly to insure against Bathen, a rate consultant from the engineer­ sion: election of commissioners whose only quali­ ing firm of R. W. Beck and Associates to R.ate base ______$471,200,000 fication ls a hefty campaign treasury or the testify on behalf of the county in seeking re­ Net operating income______$32, 300, 000 right party affiliation. One name is nomi­ ductions in the rates of Florida Power Corp. Actual rate of return (per- nated for each vacancy. and General Telephone Co. of Florida. cent) ------6.85 The nominees are then placed on a ballot He was paid a total $25,000 for those serv­ Fair rate of return (percent)_ 7. 12 and voters may mark "yes" or "no" beside ices. Net operating income at 7.12 each name, thus retaining supreme author­ Bathen, among other things, maintained percent ------$33,400,000 ity in the people. that the commission should not allow the April 15, 1969 EXTENSIONS OF REMARKS 9221 utiUties to earn a return on accumulated de­ Staff members say Carter was one of the It began in 1887 with creation of the ferred taxes. nation's best railroad regulators "in his "Florida Railroad Commision." The commission agreed in issuing subse­ prime,'' but added that he has "little inter­ It continued to 1947 with the "Railroad quent order&-though it did not mention est" in electric, gas, or telephone utilities. and Public Utilities Commission"; to 1963 Bathen-and a subsequent change in policy In his most recent election in 1966, Carter with the "Public Utilities Commission," and theoretically ts saving customers throughout received $5,610 in campaign contributions finally to 1965 with the PSC. Florida thousands of dollars per year. from representatives of utilities regulated by The change in names reflected the change When it was time to appeal other commis­ the PSC. in workload-always heavier. sion decisions to the Florida Supreme Court, Jess Yarborough, Democrat, 62, is the new­ Today's PSC has Jurisdiction over all tele­ however, the county decided it could not af­ est member Of the commission, having de­ phone and telegraph companies, all pri­ ford the estimated $15,000 it would cost to feated St. Petersburg attorney Ray Osborne, vately-owned electric and natural gas com­ put Bathen on the stand. a Republican, last November. Osborne later panies, 218 private water and sewer com­ The county failed to win one penny of became lieutenant governor of Florida. panies, 15 railroad or railroad terminal financial aid from other cities and counties Yarborough says there "ain't nothin' high­ companies, and 11,412 buses, trucks, taxi­ whose citizens were affected by the cases­ falutin about utility regulations" and adds cabs, and other motor carriers operating in although it was sent a drawerful of encourag­ that he ran for the post for three reasons: this state. ing resolutions. 1. "I like politics;" 2. "It's an important of­ Ferries, toll bridge companies and canal Theoretically, the PSC staff ts the "people's fice;" and 3. "I thought I could win.'' companies, as wen as dump trucks, trans­ expert" in rate cases. A former Miami high school football coach portation brokers, freight forwarders, and In practice, however, the staff !unctions who boasts in his campaign literature that movers also come under its jurisdiction. more as a neutral adviser to the commis­ he "lost only one game to Florida schools The PSC is responsible for fixing fair, rea­ sioners. during 10 years," Yarborough ts the only sonable and compensatory rates for busi­ Staff members, says Martin, seldom take the commissioner with a college degree. nesses under its Jurisdiction and for setting witness stand and never appeal a decision He was a state legislator before Joining the and enforcing standards of service, emciency of the commissioners. commission. Before that, he was Miami's di­ and safety. Staff neutrality probably was best ex­ rector of public welfare, a Dade County Com­ It must see that the operator answers pressed by Lewis Petteway, the PSC's gen­ missioner and a Dade County school board when you dial "O," that some buses run on eral counsel. member. time, that the gas heater doesn't run out of "The commission represents the public," About one-fourth of the $24,307 in cam­ gas or the refrigerator out of electricity, and said Petteway, "but the public includes in­ paign funds accumulated by Yarborough, that these and other services are available at vestors, subscribers, utilities and utility em­ near the end of his race with Osborne, were fair prices. ployes. So we've got to balance all those con- linked to utilities. "They're old friends," he As a footnote, it's also supposed to help tllcting interests to do a good Job.'' said of the donors. the attorney general make sure bookies don't Petteway also explained a commission Willlam T. Mayo, 51, has only two years of use the telephone for gambling purposes. policy against releasing staff recommenda- college, but claims his business experience as It has been a "catch-all" agency for the tions to the public. _ a Tallahassee car dealer and his various gov­ Legislature-a good spot to put a Job that "One of my recommendations got out ernment posts as qualifications for the PSC. doesn't flt anywhere else. once," he said, "and it so happened the com­ The son of the late Nathan Mayo, former At least one committee of the Florida Leg­ mission had ruled against me. Then I had Florida Commissioner Of Agriculture, the islature apparently feels some of the Jobs to defend the commission's stand in the su­ PSO chairman was once mayor of Tallahas­ don't flt together anymore. preme Court and it got kind of embarrassing see, a member of the State Road Board, and The House Committee on Government Re­ when the opposition read my own recom­ administrator of the Interstate Highway Sys­ organization proposes abolishing the PSC mendation." tem in Florida. and putting public utilities under a new De­ Insufficient funds and personnel problems Mayo is the only incumbent who first partment Of Business Regulation-along raise doubts that the staff can match the Joined the PSO by appointment (by former with banking and insurance. utiUties even as advisers to the commission. Gov. Farris Bryant). He fought succemfully Regulation of common carriers, the com­ The PSC, for instance, has no economist, for a law enabling the PSO to consider serv­ mittee feels, might better be handled by the no certified public accountant, and no se­ ice when setting rates and initiated studies Department of Transportation. curities analyst. to further strengthen the agency. The Committee might have a point. It hired the national accounting firm of He is generally considered a strong com­ Growth of federal regulatory activity over Ernst & Ernst during its study of tax credits missioner. He thinks election is the best sys­ railroads has dwarfed state responsibillttes last year, and hence received the advice of tem of choosing commtssloners because it in that area. an economist with that firm. keeps them "more responsive to the publlc." Most motor carriers already are regulated The State Budget Commission, however, When Mayo campaigned for election to his in some respects by several state agencies has cut in half the recommended funds avail­ first full four-year term in 1966, he received (the Transportation Department, the Depart­ able to the PSC for such consultants in the $9,075 in contributions from utillty-linked ment of Agriculture) and it's not uncommon next biennium. sources. to find a PSC inspector, and several other Of 66 new staff positions the PSC is re­ FINDINGS; DIVORCE PSC FROM UTILITIES state agents checking one truck for several questing in its request this year, the Budget purposes all of which could be accomplished Commission is recommending approval of 14. A study of Florida's system of utillty regu­ lation indicates the following findings: by one man. The Public Service commissioners, elected Growth of other utilities, meanwhile, PSC Taro: A SALESMAN, A COACH, A OAR to an omce which few voters understand, especially the telephone, electric, and natural DEALER often must depend on the very people they gas companies has been phenomenal. Here are the three men who set utility hope to regulate for campaign funds. The State's six biggest privately-owned rates in Florida and decide the complex legal, The regulatory agency, with too much telephone and power companies alone now accounting, economic and tec:tuiical problems work and too little staff and powers, can't serve 4.6-milllon customers and had a gross involved in regulating one-fifth of the state's meet its responsibillties. investment of $3.5 billion at the close of economy: Consumers, untrained in the technical as­ 1967. Jerry W. Carter, Democrat, 81 years old. pects of regulation, unable to see utility rec­ Yet the PSC's largest single department is He was, according to a 1967 U.S. Senate re­ ords or detailed reports, and unable to com­ devoted entirely to transportation; it's largest port, the only member of a state regulatory bine the knowledge ·and resources they do single request for new staff this year is for commission with no more than a grade school have, are under-represented in rate cases. transportation; and most of its general pro­ education. fessional departments (accounting, rates, He came to Florida in 1908 as a sewing ma­ [From the St. Petersburg (Fla.) Times, legal) must split their time between the giant chine salesman. He supported Sydney J. Catts Mar. 30, 1969] utiUties and comm.om carriers. for governor a.nd was rewarded in 1917 with That's why comparison of the PSC staff appointment as State Hotel Commissioner. PuBLIC SERVICE COMMISSION-HEAVY DUTIES, with those of other state utillty commissions Ll'rrLE He was elected to the Florida Railroad & POWER is invalid-many states have separate boards Public Utilities Commission (later the PSC) (By Roland Page) for transportation, utiltties, and other in 1934. Once describing himself as "Just a The Florida Public Service Oommlsslon businesses. cheap politician-because that's all Florida (PSC) has too many Jobs and not enough The biggest problem in separating common ca.n afford," he won re-election eight times powers. carriers from utillties would be rate-making a.nd says he is ready to run again in 1970. For 82 years, the State Legislature has and the powers and technical staff it requires. He attends fewer and fewer public hearings been quick to assign new duties to the reg­ PSC Chairman William T. Mayo notes the because of tllness. When he does participate, ulatory agency-but slow to grant it the Transportation Department, under the House two full-time PSO staffers have been seen powers needed to carry them out. plan, would have to be granted legislative following him around to make sure he doesn't Utility opposition, legislative inaction and, powers s1mllar to those of the PSC in order hurt himself. He has been known, in recent in some cases, PSC refusal or inabill ty to use to set common carrler rates. years, to doze off in the middle of complex the powers available, have combined to keep He expressed no opinion on the possible testimony. regulation somewhat less than effective. split-but voiced reservations over putting 9222 EXTENSIONS OF REMARKS April 15, 1969 utillties under a large department with other If they are forced to switch to an ap­ keeping hands off the PSC. It has offered no duties. pointive agency, hasty decisions as to terms, plan. "You might create a monster,'' he warned. size, qualifications and the appointing au­ State Planning and Budget Director Wal­ He might have added that a "powder puff" thority could result in disaster. lace Henderson has proposed a reorganiza­ can result if the Legislature fails to grant the The constitutional question has been for­ tion plan which, among other things, would PSC or any new regulatory body powers vital warded to Gov. Claude Kirk, who is expected abolish the PSC and put all business regula­ to effective consumer protection. to ask the Florida Supreme Court for an ad­ tion under a Department of Commerce. The 1969 Legislature could consider other visory opinion. He made no recommendation on how the problems which weaken utillty regulation Meanwhile, the only expressed legislative Department would be headed. and the consumer's voice. concern has been for conforming with the If they do reform the system, whether by Among them: State Constitution-not for improving util­ constitutional mandate or choice, legislators Availability of company records--Con­ ity regulation in general. might also look at the Federal Power Com­ sumers can't get at ut111ty records to verify That question seems to have been lost in mission and the boards of California, New certain claimed expenses in a rate case. The the flurry of government reorganization. York and Wisconsin for ideas. PSC has the power to review actual records, Yet it's a massive, complex issue, striking These are the commissions generally ad­ as well as the power to order them produced at the pocketbook of virtually every voter mired by consumer-oriented experts and pro­ for consumer representatives, and the power in the state. fessional regulators. to demand itemization of any expenses the The PSC presently controls a.bout one-fifth The Federal Power Commission consists of company wants to include in its rates. of Florida's economy. five members appointed by the President with The commission, however, doesn't require It regulates 15 railroad companies, 20 tele­ the consent of the Senate for five-year terms, such itemization and, critics say, it usually phone companies, one telegraph company, with one member's term expiring each year. declines requests for it by utility opponents five of the state's largest electric utilities, 16 California has five commissioners appointed in hearings. natural gas companies, 218 water and sewer by the governor with consent of the Senate The City of Miami last year asked permis­ companies, hundreds of taxicabs and thou­ for six-year staggered terms. sion to see the records and federal income sands of common carriers. New York has seven members, five full­ tax returns which support exhibits of Florida It sets and enforces rates and safety and time and two part-time, appointed for 10- Power & Light Co. in its current rate case. service standards for utilities under its juris­ year terms by the governor with the Senate's The PSC denied the request, saying in a Nov. diction. It serves as policeman, judge and consent. 11 order that Miami: jury in all matters concerning those com­ It also has in its jurisdiction the company "Has attempted an 'en ma.sse' examination panies and their customers. which charged the highest electric bill in or 'fishing expedition' into the company's In Florida, it's the Federal Power Commis­ the nation in at least one category reported records in the expressed hope that error sion, the Interstate Commerce Commission to the Federal Power Commission in 1967. may be discovered in the underlying docu­ and the Federal Communications Commis­ The company, Consolidated Edison of New ments constituting the basis for the exhibits sion all rolled inoo one. York Inc., charged $9.94 for 250 kilowatt presented at the direction of the Commission. Like those agencies, it has a unique com­ hours. The New York Public Service Commis­ We find that mere suspicion that some error bination of legislative, judicial and executive sion, nevertheless, is included among most in the company's records may exist does not powers--all of which are necessary in per­ groupings of consumer-oriented state agen­ constitute sufficient grounds to require the forming its complex and technical functions. cies--possibly because Consolidated Edison company to submit its books and records for Also like those agencies, and practically, all was held in he same year to a rate of return unrestricted examination." similar state commissions, its members are of 5.61 per cent. In cases before the PSC, companies ge~­ kept independent of the legislative and ex­ Florida Power Corp. was fourth highest in erally list public relations, advertising, labor ecutive branches through fixed terms. the same utility bill ranking $9.26, but its relations, legal, professional and other ex­ Unlike the federal agencies, however, the rate of return, calculated by the same meth­ penses as "miscellaneous general" or "miscel­ PSC remains an elective office-it's not inde­ od, was 8.11 per cent. laneous sales." pendent of politics. Wisconsin, like Florida's present Commis­ A utility consumer's counsel, if created by PSC Chairman William Mayo is opposed to sion, has only three members. Unlike the the legislature, might be granted authority any change in the system under which he PSC, however, Wisconsin's commissioners to inspect records along with the PSC keeps his job. also are appointed by the governor and Sen­ auditors. Election, he says, keeps the commissioners ate and they have six year, rather than four­ Inability of local governments to represent "closer to the people." year, staggered terms. the public-A legal question prevents cities But if the Legislature tries oo abandon the No two experts agree on the best structure or counties from entering rate cases unless system, either by constitutional demand or by for a regulatory commission, but they do they are customers of the ut111ty involved. choice, Mayo warns it should "look at the note that: Legislation apparently is needed to allow whole thing-separate it from government Appointment removes commissioners from cities to combine resources for cases involv­ reorganization." election campaigns in which they inevitably ing regulatory issues of statewide significance. The PSC, as Mayo put it, is a "different face voter apathy and are forced to accept campaign contributions from utility-linked Lack of jurisdiction-The commission has breed of cat." The House Committee on Government Re­ sources. no jurisdiction over municipally and coopera­ The governor, more than any other official, tively-owned utilities and no territorial juris­ organization, which first raised the consti­ tutional issue, has drafted a plan which is likely to represent the general "philosophy" diction over private companies. voters want their state government and its It can do nothing about wasteful duplica­ would place utillties under a Department of Business Regulation-along with banking agencies to take. The theory is that he will tion of lines and facilities when one utility appoint commissioners attuned to that phi­ enters an area served by another. and insurance. A department director, appointed by the losophy. governor with consent of the Senate, would Consent of the Senate or Legislature in one REGULATION-OR DISASTER? direct a professional staff which, in turn, safeguard against political patronage by the Florida might be standing at a crossroads would conduct hearings, set rates, investigate governor-especially when the legislative ma­ between effecti'Vle state regulation of utili· complaint.a and generally police the industry. jority is with the opposite party. Proponents of this check also argue that it tends to en­ ties--and disaster. Decisions of the staff would be subject to A constitutional question challenging the courage appointment of qualified commis­ appeal to a five-member board, also ap­ sioners. very existence of the elected State Public pointed by the governor and Senate and sub­ Service Commission (PSC) is responsible. ject to removal only by the governor and Fixed terms insure the independence such It's forcing legislators to consider replacing commissions must have as quasi-judicial Senate. agencies operating in a specialized field. the 82-year-old agency with an appointed Regulation of common carriers, one of the board. Terms should be long enough to enable a biggest areas of PSC responsibility, would be commissioner to "get the hang" of his com­ Critics of the PSC, including a former com­ placed under the Department Of Transporta­ missioner, long have maintained the elective plicated work, but short enough and stag­ tion under the House plan-which would gered so that the governor can appoint a system gives utillties "tremendous power" mean granting of rate-making powers to over its members. majority within his own term-hence re­ Transportation. flecting in commission decisions the "phi­ They contend an appointed board would be The House Committee has been silent as better insulated from utility-linked cam­ losophy" expressed in the governor's election. yet on the critical questions of terms for the Change in the commission membership paign contributions, and better able to regu­ Board members and the director of the Busi­ late independently. should be gradual so that utilities aren't con­ ness Regulation Department and on how the fronted with abrupt policy turnabouts which It's far too early for them oo rejoice. director would be removed. could be economically ruinous. The constitutional question has not been It also has refrained from endorsing any Membership should be large enough to pro­ settled and odds are that when it is, the change in the current structure, stating only vide for experienced members sitting at all settlement will favor the existing system. that its plan would meet the possible consti­ times (Two of Florida's three present Com­ While legislators could change the PSC tutional requirement and that it "could" be missioners are up for re-election next year. even under those circumstances, they adopted whether change is mandatory or not. If they are defeated the PSC would be left wouldn't have t~and they've shown little The State senate, meanwhile, seems confi­ with one experienced member-whose ex­ inclination to do so. dent no change will be necessary and is perience began only this year). April 15, 1969 EXTENSIONS OF REMARKS 9223

LACK OF A STAFF HAMPERS RATE WATCHERS ities could have saved $11-milUon by the tric companies would support the PSC for 36 The Florida Public Service Commission addition of one s·taff member. years under its current budget. (PSC) can't do its job. The problem was an 18-month delay in One company alone cleared prof! ts last It doesn't have the statf, the funds or the $32.8-million worth of rate reductions. For year equal to 10 times the commission professional experts needed to see that the each month the orders were delayed, the util­ budget. 270 privately-owned ut111ties under its juris­ ities were collecting $1.8-milllon more from Floridians, through rates, are providing diction are charging consumers no more than customers than they should have been. utilities with unlimited funds and experts "fair and reasonable rates." Ernst and Ernst blamed "multiple require­ with which the compan.tes can represent As the PSC itself said in its current budget ments" on the executive director and general themselves before the PSC. request to the Legislature, a "critical situa­ counsel. One man was doing two full-time The commission, says PSC Chairman Wil­ tion exists in all departments from Executive PSC jobs. liam T. Mayo, must have "additional per­ through the Administrative and into the The $69.4-million "overcharge" U.S. Sen. sonnel as capable and knowledgeable as the technical and professional departments." Lee Metcalf has assigned to four Florida elec- experts the regulated groups bring in." It said at least 66 new statf members are needed merely to maintain "the current level WHAT'S BEST WAY TO REGULATE YOUR UTILITY BILLS?-A 3-WAY COMPARISON 1 of services." The State Budget Commission, which Present Florida Public California Public Utilities screens requests of all state agencies before Service Commission Commission House proposal they go to the legislators, apparently doesn't believe the PSC. 3 Commissioners ______5 commissioners: Utilities, 5 board members ______Director, department of business Of the 66 positions requested, the Budget consumer counsel. regulation. Commission recommended only 14 be ap­ Elected ______Appointed by Governor and Appointed by Governor and Appointed by Governor and senate. senate. senate. proved. 4-year terms ______6-year terms ______------___ Terms?______Terms? It noted that the PSC statf has doubled Removed for cause by Removal by 2/3 vote of Removed by Governor and Removal? since 1961. So has its budget. qov~rnor. . legislature. senate. But the growth in budget and staff hasn't Maionty changeover m 1 Takes 4 years for majority Majority change? ______e1 ection. . . change. kept pace with the burgeoning regulatory Staff under comm1ss1on ______Staff under commission ______No staff ______Staff regulates utilities subject workload in Florida. to appeal to board. The number of water and sewer systems alone under PSC jurisdiction tripled in one 1 From the St. Petersburg Times, Mar. 30, 1969. day last year-when the now defunct Duval County Commission voted to turn all such "There is li ttle interest in the commissian Lack of competent consumer representa­ privately-owned utilities in Us jurisdiction political campaigns and little knowledge on tion in utility rate cases before the Public over to the state agency. the part of the public for whom or for what Service Commission (PSC) is as telling now Under the budget commission recommen­ they may be voting. The cost of a statewide as it was 10 years ago. dation, the PSC is destined to police the political campaign is very expensive and the At that time, the PSC itself called it a safety and service standards of those systems ability of candidates to raise money is se­ "problem which shouldn't exist." without an engineer. verely restricted. Because of the Zack of inter­ Companies haul stacks of testimony and The situation isn't new. est and knowledge in the office, the net armies of experts into hearings to support For years, the PSC has been deciding ques­ result is that companies regulated by the their side for a rate increase-secure in the tions of economic theory without the services commission are in a position to exercise tre­ knowledge that it's all paid for in the cus­ of an economist. mendous power in selecting candidates, even tomer utility bllls. It has approved millions of dollars in util­ though this power has apparently never been Their customers, meanwhile, go unrepre­ ity security issues with9ut a securities exercised."-Alan Boyd, former Chairman, sented, unless a city, county or other agency analyst. Florida Public Service Commission. within a company's service area decides to It frequently hears the testimony of cer­ carry the ball. tified public accountants hired by utilities-­ LOCAL REGULATION?-PUBLIC UTILITIES And that doesn't happen very often. Few but has no CPA of its own. PREFER STATE local governmental agencie5 are willing to "Our people might be just as qualified," Florida electric companies wrote and spon­ risk spending taxes on other than local gov­ says Chief Accountant John D. McClellan. sored the laws placing them under state reg­ ernment atfairs. "And they frequently are--but it makes it ulation because they preferred it to local Especially when they find-as Pinellas rough when you don't have that CPA after jurisdiction, says former State Sen. Henry County did in a three-year rate fight with your name." Baynard of St. Petersburg. Florida Power Corp. and General Telephone McClellan himself is leaving the PSC be­ Baynard should know. Co. of Florida-that other local governments cause he can't get certified as long as he's Electric companies in Florida went com­ in the utility's service area aren't willing to there. pletely unregulated until a few counties be­ chip in. The State Board of Public Accountants gan establishing utility commissions of their Moreover, there's a question as to whether doesn't recognize experience with the regu­ own in the late 1940s. cities and counties can legally represent the latory commission for certification purposes. Pinellas was a leader. Public pressure, cul­ public before the PSC. The PSC can't atford to send its account­ minating in the election of a Pinellas repre­ Pinellas County and the City of Miami ants to school for an extra year-another sentative who had vowed to change the situ­ have justified past involvement in rate cases method of gaining certification. ation, led to the creation of a three-man by being customers of the respective uti11ties So, as McClellan put it, "they're forced to Pinellas County utility commission. serving them. leave"-usually for a private accounting firm. It was Baynard who introduced the b111. This approach precludes, however, united The problem discourages recruiting. "I have To get it passed, however, he promised not statewide action on behalf of tthe disorga­ to tell them if they come with us they can't to oppose repeal of the county bill if state­ nized consumer. get certified," said the PSC chlef. wide jurisdiction later was approved. Miami, served by Florida Power and Light He also has to tell young prospects they'll "That was a mistake," says Baynard. Co. and Southern Bell Telephone Co., start at $6,84-0---whlle the national average He said the County Ut111ties Commission couldn't join the Pinellas struggle. starting pay for graduate accountants is proved effective--ordering $3-million in re­ Nor can Pinellas aid Miami in its current $8,400. bates and lower rates during its brief ex­ contest with Florida Power and Light. The commission now has eight to ten ac­ istence. In 1965, Pinellas County's hired expert, countants. The number fluctuates because of The companies, meanwhile, pushed legis­ Robert E. Bathen, testified in opposition to turnover. McClellan say-s he could use 20 lation in 1951 placing them under the Florida several PSC policies which were in etfect more. Railroad and Public Utilities Commission statewide. A request for one more accountant was (now the Public Service Commission), said The PSC agreed with Bathen on one point, slashed by the Budget Commission this year. Baynard. reversed its policy, and saved state-wide con­ The Commission last year hired the con­ Baynard doesn't think a return to local sumers an estimated $11-million since then. sultant firm of Ernst and Ernst to give it the regulation would improve the situation. An appeal was filed to the State Supreme weight of CPA and economist services during "It has to be statewide or it would be im­ Court on some of the other points-but the critical rat e hearings. The cost was $25,000. possible for the companies to operate," he county ran out of funds. It already had spent The PSC has asked for another $25,000 in said. But he thinks the state agency should more than $38,000 for the services of Bathen consultant funds for the next biennium. have "more teeth" to it. The Budget Commission recommended and George Spiegel, a Washington attorney against it because of the "increase in statf" who specializes in utility regulation. it was approving for the PSC. It cut the fig­ A COUNSEL: WOULD IT AID UTILrrY Pinellas appealed without Bathen and ure in half. REGULATION? Spiegel-and the appeal was dismissed. Ernst and Ernst did a staff organization Does Florida need an "office of utility con­ U.S. Sen. Lee Metcalf, D-Montana, thinks study of the PSC. It found, among other sumers' counsel" in addition to its regula­ he might have a solution to consumer weak­ things, that customers of eight Florida utll- tory commission? ness and disunity. 9224 EXTENSIONS OF REMARKS April 15, 1969 He's introduced a bill in Congress that The PSC lacks information on utmty ex­ Commission's, using the same calendar year, would establish a "U.S. Office of Utlllty Con­ penses charged to customers. It does not and including rates of return and net earn­ sumers' Council." require itemized listings of millions of dol­ ings for all regulated utlllties. With com­ It would: lars of expenses shown in reports as puterized accounting the report could be Hire experts to represent the public in "miscellaneous." offered to the public without delay. utility cases before federal or state agencies. The PSC doesn't even bother to cheok 5. Grant the reconstituted commission Provide grants to local or state govern­ thousands of dollars worth of contributions, territorial jurisdiction over all public ut111- ment's for up to 75 per cent of the cost of even those which obviously are questionable. ties, including municipal and REA systems. establishing their own such offices. The reasons for these shortcomings also This program would provide a br1111ant Periodically recommend legislation which are clear: start toward greater representation for the might strengthen consumer protection. The commission's staff is overworked, un­ consuming public in all branches of state Metcalf introduced similar legislation last dermanned and undertrained. government. year. He suggested the Consumer Counsel be The commission's hearings are distorted. supported by a tax on utilities, since custom­ In the natural struggle between the inter­ ers already pay all company taxes, all regu­ ests of investor and consumer, the PSC staff latory fees and all coots of company testi­ 1s neutral. The utilities are loaded with ex­ IMPORTANT LEGISLATION TO THE mony and representation. pert horsepower, and the consumers usually STATE OF ALASKA It didn't pass. are not represented. Metcalf says three states have established The commissioners themselves are highly Consumer Counsel offices of their own with­ susceptible to political infiuence from utmty HON. HOWARD W. POLLOCK out federal aid. He quotes the Public Service interests which contribute heavily to their OF ALASKA Commission Chairman of one of the states, campaign treasuries. IN THE HOUSE OF REPRESENTATIVES Maryland, as describing the counsel office at WHAT DO FLORIDIANS WANT OF THEIR PUBLIC "absolutely indispensable." SERVICE COMMISSION? Tuesday, April 15, 1969 Metcalf said cost of the proposed U.S. office We believe they want a commission that Mr. POLLOCK. Mr. Speaker, today at would be about $40-million. Divided 50 ways does its job expertly. They want a commis­ that would be $800,000 per State if each state the request of the Alaskan commissioner sion that isn't classified as heavily oriented of labor, Mr. Thomas J. Moore, I have decided to act on its own. The California toward investors (as the Florida commission Office, however, operated on a $60,000 to always has been) , or even overly weighted introduced a bill which would amend $100,000 budget. toward consumers. They want middle-road the Public Works and Economic Devel­ A change in the PSC's tax policies alone, regulation guided by professional skills in­ opment Act of 1965 to permit smaller could have saved customers of six utilities stead of political backscratching. redevelopment areas in the State of $32.2-million in 1967, according to an expert They want a commission that plans well Alaska. The purpose of this bill is con­ hired by the PSC. for growth. They want a commission that That possibly could have funded a Florida· tained in a letter I received from Mr. prevents deterioration of service and equip­ Moore and I would like to set forth in Ut111ty Contumers Counsel for 400 years. ment such as occurred under the old Penin­ The PSC points to its staff as representa­ sular Telephone Co. They want a commission the RECORD at this time a portion of this tive of the public in rate cases. The .staff, that requires better service more quickly, as letter. As can be seen this legislation is however, is neutral at best and acts more as since General Telephone purchased Penin­ of an extremely important nature to the an adviser to the commissioners. sular in August 1957. State of Alaska: As Pinellas County Attorney Martin said, They want regulation that guarantees elec­ Our Employment Security Division has the the PSC follows courtroom procedure, but tric power every time a switch is fiipped. They the syttem seldom provides the "adversary" responsib111ty for the official workforce meas­ want regulation that attracts investors, re­ urements (employment, unemployment and atmosphere of a court. wards stockholders, satisfies customers and "You have the commissioners as judges unemployment rates) within each labor mar­ allows utilities to set standard of progress ket area of the State. We attempt to make and the companies on one side," said Martin, in their communities. "but nobody on the other side." these measurements as accurate and valid as Martin would have the staff separated from HOW CAN UTILITY REGULATION IN FLORIDA BE is possible as the rates are utilized for many the commissioners and converted into what IMPROVED BY THE 1969 LEGISLATURE? purposes. One somewhat questionable use Metcalf is proposing. We recommend to the upcoming Legisla­ of the rates is to determine what areas qual­ "Let the staff appeal decisions of the com­ ture a five-point program for modern, bal­ ify for grant assistance under the terms of mit;sion," he says. "If it doesn't, who will?" anced regulation of utility monopolies: the Public Works and Economic Develop­ He also would like the PSC staff recom­ 1. Restructure the commission into a pro­ ment Act of 1965. The rates are one of the mendations to be made public. "We can't fessional five-member board appointed to major bases by which the Economic Develop­ disagree with them," he says, "because we staggered, six-year terms by the governor and ment Administration must determine the never know what they (the recommenda­ confirmed by the Senate. The six-year terms amount of their participation, 1f any, in tions) are or what these professional people would require a referendum on a constitu­ providing grants for economic development. think." tional amendment, which would be a good This causes some problems as follows: PSC Chairman William Ma.yo says staff test of public acceptance. Terms must be long In the summer of 1966, it was determined recommendations are kept confidential be­ enough to assure experienced regulators, but that one rather large company had a sub­ cause they're technical, diversified between who retain some independence. stantial number of persons actively working PSC departments and would "confuse the It is an incredible fact that in 1968 400,000 in the east side of the Prince of Wales Labor public." more Floridians voted on who would cast one Market Area. Thus, the workforce data for of 100 votes in the U.S. Senate than who the area subsequent to July, 1966 included BETTER UTILITY REGULATION FOR A would cast one of three PSC votes controlling that company's employment. The net effect BETI'ER FLORIDA their high monthly utlllty bills. Perhaps a of this action was a substantial drop in the Public ut111ties are not ordinary businesses. yes-no Missouri Plan vote could be adapted unemployment rate for the entire Prince of They are monopolies granted by the state to guide the governor's reappointments. Wales labor market area. Due to the drop in and regulated in the public interest. 2. Provide the commission with an ade­ the unemployment rate, the Economic De­ The 73-year history of monopoly regula­ quate, skilled staff. By all means the Legis­ velopment Administration was forced to de­ tion in Florida was well phrased to a con­ lature should restore the 50-plus staff addi­ crease their grant participation in the Prince gressional committee in 1965 by Edwin L. tions requested by the PSC and chopped out of Wales area from 80 percent to 60 percent. by the Cabinet Budget Commission. The To further complicate the situation, we Mason, then chairman of the Public Service firmly believe that the change in the unem­ Commission: "The best regulation is little thousands of dollars invested in staff should be weighed against the millions spent and ployment rates for the Prince of Wales labor or no regulation." market area does not reflect a true picture In truth, the best utmty regulation 1s earned by utilities. 3. Establish an effective adversary system of the economic condition of the vicinity careful, informed and complete regulation surrounding Klawock. to guarantee investors a fair return and cus­ for commission proceedings. This means tomers reliable service at the cheapest possi­ creating within the commission staff a con­ Some discussion of the labor market area ble rates. sumer representative--a sort of public de­ concept would probably be helpful. One of With its eye on reorga.nization, the 1969 fender for utmty customers-with the same the acknowledged facts in economics is that Florida Legislature has an unusual oppor­ powers of independent research enjoyed by aggregate measures tend to hide problems 1n tunity to remodel the Public Service Com­ commission auditors. There is a precedent the subsectors. To point up these problems, each state's employment service agency de­ mission into an instrument for more effective for such a consumer's ombudsman in the utmty regulation. termines that state's unemployment rate Federal Communications Commission's and the unemployment rates for "labor mar­ WHAT'S WRONG WITH THE PRESENT PUBLIC Broadcast Bureau. Out of each contest be­ ket areas" within the state. These labor mar­ SERVICE COMMISSION? tween utility experts and consumer experts ket areas are generally, but not always, based In a phrase, the PSC doesn't do its job. would come the true facts for a fair decision. on geopolitical divisions or are sub-sections A detailed series by Times staffer Roland 4. Require by law an annual report to the of major geopolitical divisions. Examples of Page last week documented repeated cases people from the commission. The report these divisions are counties, cities, towns. of lax regulation: should be comparable to the Federal Power boroughs, standard metropolitan statistical April 15, 1969 EXTENSIONS OF REMARKS 9225 areas, etc. In Alaska, we have used the elec­ Under leave to extend my remarks I have assured that the business of the Nation tion districts established for the 1956 state submit a copy of the editorial from the should go forward. So, my official relation­ constitutional election for our labor market April 14 issue of the Los Angeles Times ship with the Congress ends in a feeling, on areas. It has been found that for most pur­ my part, of gratitude that we have been able for inclusion in the RECORD. Also in­ to do so much together. poses, the areas so established were satis­ cluded is a copy of the text of former factory. II However. in many areas of the state, eco­ President Eisenhower's address which he nomic development which occurs at one lo­ delivered January 17, 1961 : We now stand ten years past the midpoint Of a century that has witnessed four major cation within a labor market area has little [From the Los Angeles Times, Apr. 14, 1969] effect upon other locations in the areas wars among great nations. Three of these which remain depressed. Two more examples THE Mn.rrARY-INDUSTRIAL COMPLEX involved our own country. Despite these of this, besides Klawock, would be that-- One of the most interesting phenomena holocausts America is today the strongest, The wholesale bulk copper ore storage and of the 9lst Congress has been the crescendo the most influential and most productive na­ shipping terminal at Skagway will have lit­ of attacks on the so-called "milltary-indus­ tion in the world. Understandably proud of tle, if any, effect on Haines, and trial complex." this pre-eminence, we yet realize that Amer­ The Amchitka project will have negligible The ABM debate, for example, has promi­ ica's leadership and prestige depend, not impact anywhere else in the immediate area nently featured charges that the defense es­ merely upon our unmatched material prog­ (although it may be "beneficial" to the tablishment and its highly effective lobby ress, riches and military strength, but on how Anchorage area.) have grown so powerful that democracy itself we use our power in the interests of world The unemployment rate for the labor mar­ is endangered. peace and human betterment. ket areas involved will probably decline caus­ Such verbal assaults frequently observe, III ing the grant rates to drop and thus, as quite accurately, that the late President Throughout America's adventure in free occurred in Klawock, effectively prevent eco­ Eisenhower was among the first to sound the government, our basic purposes have been to nomic development of a poverty pocket. alarm. keep the peace; to foster progress in human As is typical of most federal laws, regula­ They quote Gen. Eisenhower's farewell achievement; and to enhance liberty, dignlty tions, standards, etc., the particular law in­ speech, just before his retirement, in which and integrity among people and among na­ volved here (the Public Works and Economic he declared: tions. To strive for less would be unworthy Development Act of 1965) is just not satis­ "We must guard against the acquisition of of a free and religious people. Any failure factory to resolve Alaska's problems. Changes unwarranted influence ... by the milltary­ traceable to arrogance, or our lack of com­ in the law would appear to be the only industrial complex. The potential for the dis­ prehension or readiness to sacrifice would in­ meaningful way to help small pockets left astrous rise of misplaced power exists and flict upon us grievous hurt both at home behind by development at other points. will persist. and abroad. We have been concerned about this matter "Only an alert and knowledgeable citizenry Progress toward these noble goals is per­ for some time, but under the present law, can compel the proper meshing of the huge sistently threatened by the conflict now en­ we are restricted in what we can do. industrial and military machinery of de­ gulfing the world. It commands our whole fense with our peaceful methods and goals, attention, absorbs our very beings. We face so that security and liberty may prosper to­ a hostile ideology-global in scope, atheistic gether." in character, ruthless in purpose, and insid­ As Rep. Glen Lipscomb (R-Calif.) pointed ious in method. Unhappily the danger it THE MILITARY-INDUSTRIAL out the other day, though, the rest of what COMPLEX poses promises to be Of indefinite duration. Gen. Eisenhower had to say in the same To meet it successfully, there is called for, speech somehow gets left out of the quota­ not so much the emotional and transitory tions. sacrifices of crisis, but rather those which en­ HON. GLENARD P. LIPSCOMB Specifically, the late President said that "a OF CALIFORNIA able us to carry forward readily, surely, and vital element in keeping the peace is our without complaint the burdens of a pro­ IN THE HOUSE OF REPRESENTATIVES milltary establishment. Our arms must be longed and complex struggle---with liberty Tuesday, April 15, 1969 mighty, ready for instant action. so that no the stake. Only thus shall we remain, despite potential aggressor may be tempted to risk every provocation, on our chartered course Mr. LIPSCOMB. Mr. Speaker, the its own destruction." toward permanent peace and human better­ farewell address delivered by former As Congress grapples with the task of de­ ment. President Eisenhower discussing his ciding how much of our economic resources Crises there will continue to be. In meeting views on the need to work for peace and should be devoted to national security, both them, whether foreign or domestic, great or halves of Gen. Eisenhower's farewell address small, there is a recurring temptation to feel human advancement is a message of should be kept in mind. significance to all of us. that some spectacular and costly action could become the miraculous solution to all current It has been a matter of concern to me FAREWELL RADIO AND TELEVISION ADDRESS TO di.ffi.culties. A huge increase in newer ele­ however that many seem to concentrate THE .AMERICAN PEOPLE, JANUARY 17, 1961 ments of our defense; development of un­ on just one phrase from that address to (Delivered from the President's omce at realistic programs to cure every ill in agri­ the exclusion of other equally important 8:30 p.m.) culture; a dramatic expansion in basic and aspects of the talk. That phrase is the My fellow Americans: ·applied research-these and many other pos­ "military-industrial complex," which the Three days from now, after half a century sib111ties, each possibly promising in itself, former President used to caution against in the service of our country, I shall lay may be suggested as the only way to the road a situation where unwarranted influence down the responsibillties of omce as, in tradi­ we wish to travel. tional and solemn ceremony, the authority But each proposal must be weighed in the may rest in one element of our society. of the Presidency is vested in my successor. light of a broader consideration: the need But concentration on just this one This evening I come to you with a message to maintain balance in and among national phrase tends to overlook the fact that of leave-taking and farewell, and to share programs---balance between the private and President Eisenhower also declared we a few final thoughts with you, my country­ the public economy, balance between cost must have a completely adequate mili­ men. and hoped for advantage-balance between tary establishment to help keep the Like every other citizen, I wish the new the clearly necessary and the comfortably de­ peace. Because of my concern about this President, and all who will labor with him, sirable; balance between our essential re­ development I discussed it in a statement Godspeed. I pray that the coming years will quirements as a nation and the duties im­ be blessed with peace and prosperity for all. posed by the nation upon the individual; to the House of Representatives on April Our people expect their President and the balance between actions of the moment and 2, 1969. Congress to find essential agreement on is­ the national welfare of the future. Good The Los Angeles Times on April 14 sues of great moment, the wise resolution judgment seeks balance and progress; lack contained an editorial commenting on of which will better shape the future of the of it eventually finds imbalance and frustra­ former President Eisenhower's fare well Nation. tion. address and my statement. In mention­ My own relations with the Congress, The record of many decades stands as ing both General Eisenhower's remarks which began on a remote and tenuous basis proof that our people and their government about the need for caution and on the when, long ago, a member of the Senate have, in the main, understood these truths appointed me to West Point, have since and have responded to them well, in the face other hand the need for an adequate ranged to the intimate during the war and military establishment, the Times as­ immediate post-war period, and, finally, to of stress and threat. But threats, new in kind serts: the mutually interdependent during these or degress, constantly arise. I mention two As Congress grapples with the task of de­ past eight years. only. ciding how much of our economic resources In this final relationship, the Congress IV should be devoted to national security, both and the Admlnlstration have, on most vital A vital element in keeping the peace ls our halves of Gen. Eisenhower's farewell address issues, cooperated well, to serve the national mllitary establishment. Our arms must be should be kept in mind. good rather than mere partisanship, and so mighty, ready for instant action, so that no 9226 EXTENSIONS OF REMARKS April 15, 1969 potential aggressor may be tempted to risk all generations to come, not to become the ation is the first overall revision of the his own destruction. insolvent phantom of tomorrow. Canons of Professional Ethics in 60 years; Our military organization today bears lit­ VI and the former 47 Canons are reduced to 9 in tle relation to that known by any of my number, each accompanied by extensive predecessors in peacetime, or indeed by the Down the long lane of the history yet to "Ethical Considerations" and "Disciplinary fighting men of World War II or Korea. be written America knows that this world of Rules." Until the latest of our world conflicts, the ours, ever growing smaller, must avoid be­ Canon 7 provides as follows: United States had no armaments industry. coming a community of dreadful fear and "A lawyer has a duty to represent his American makers of plowshares could, with hate, and be, instead, a proud confederation client with zeal limited only by his duty to time and as required, make swords as well. of mutual trust and respect. act within the bounds of the law." But now we can no longer risk emergency Such a confederation must be one of The "Ethical Considerations" which follow improvisation of national defense; we have equals. The weakest must come to the con­ Canon 7 make it clear that "bounds of the been compelled to create a permanent arma­ ference table with the same confidence as law" include enforceable standards of pro­ ments industry of vast proportions. Added do we, protected as we are by our moral, eco­ fessional conduct. The "Disciplinary Rules" to this, three and a half million men and nomic, and military strength. That table, which follow Canon 7 cover specifically what women are directly engaged in the defense though scarred by many past frustrations, the lawyer must do and what he cannot establishment. We annually spend on mili­ cannot be abandoned for the certain agony do in representing his client in an ethical tary security more than the net income of all of the battlefield. manner. United States corporations. Disarmament, with mutual honor and con­ Against that background, and with the This conjunction of an immense military fidence, is a continuing imperative. Together limitations referred to above, let us never­ establishment and a large arms industry is we must learn how to compose differences, theless consider again the words of Canon 7: new in the American experience. The total not with arms, but with intellect and decent "A lawyer has a duty to represent his client influence-economic, political, even spirit­ purpose. Because this need is so sharp and with zeal limited only by his duty to act ual-is felt in every city, every State house, apparent I confess that I lay down my official within the bounds of the law." every office of the Federal government. We responsibilities in this field with a definite This is very strong language, but I think recognize the imperative need for this de­ sense of disappointment. As one who has witnessed the horror and the lingering sad­ it describes accurately the lawyer's duty to velopment. Yet we must not fail to compre­ his client. It most certainly states my view hend its grave implications. Our toil, re­ ness of war-as one who knows that another of a lawyer's duty to his client. sources and livelihood are all involved; so is war could utterly destroy this civilization which has been so slowly and painfully built However, there can be no doubt that the the very structure of our society. over thousands of years-I wish I could say public image of the profession is directly af­ In the councils of government, we must tonight that a lasting peace is in sight. fected by the conduct of lawyers who, most guard against the acquisition of unwar­ Happily, I can say that war has been properly, represent their clients with the ranted influence, whether sought or un­ avoided. Steady progress toward our ultimate "zeal" required in Canon 7. sought, by the military-industrial complex. goal has been made. But, so much remains to Unlike members of the other professions, The potential for the disastrous rise of mis­ be done. As a private citizen, I shall never lawyers regularly handle a wide variety of placed power exists and will persist. cease to do what little I can to help the adversary matters, including trial work and We must never let the weight of this com­ world advance along that road. negotiations in working out disagreements bination endanger our liberties or demo­ of all types among clients. The final decisions cratic processes. We should take nothing for VII are not always made by judges, juries, arbi­ granted. Only an alert and knowledgeable So-in this my last good night to you as trators, referees, commissioners, boards or citizenry can compel the proper meshing of your President-I thank you for the many whatever. The great majority of controversies the huge industrial and military machinery opportunities you have given me for public requiring lawyers eventually end up in ne­ of defense with our peaceful methods and service in war and peace. I trust that in that gotiated settlements. goals, so that security and liberty may pros­ service you find some things worthy; as for Nevertheless, clients in all of these situa­ per together. the rest of it, I know you will find ways to tions have very strong views, and their fre­ Akin to, and largely responsible for the improve performance in the future. quent lack of appreciation for people on the sweeping changes in our industrial-milltary You and I-my fellow citizens-need to be other side of the controversy very naturally posture, has been the technological revolu­ strong in our faith that all nations, under extends to and includes their lawyer&--par­ tion during recent decades. God, will reach the goal of peace with jus­ ticularly so inasmuch as lawyers are the In this revolution, research has become tice. May we be ever unswerving in devotion spokesmen. cent ral; it also becomes more formalized, to principle, confident but humble with pow­ Both during trial and in negotiations complex, and costly. A steadily increasing er, diligent in pursuit of the Nation's great clients often say and believe uncomplimen­ share ls conducted for, by, or at the direction goals. tary things about lawyers for the other side. of, the Federal Government. To all the peoples of the 'Yorld, I once more Too frequently their own lawyers do nothing Today, the solitary inventor, tinkering in give expression to America's prayerful and to correct these impressions, which are usual­ his shop, has been overshadowed by task continuing aspiration: ly unfair and inaccurate. forces of scientists in laboratories and test­ We pray that peoples of all faiths, all races, The loser in a lawsuit, or one who feels he ing fields. In the same fashion, the free uni­ all nations, may have their great human got the worst of negotiations, too often be­ versity, historically the fountainhead of free needs satisfied; that those now denied oppor­ lieves (again unfairly) that the lawyer on ideas and scientific discovery, has exper­ tunity shall come to enjoy it to the full; that the other side was underhanded and de­ ienced a revolution in the conduct of re­ all who yearn for freedom may experience its ceitful. search. Partly because of the huge costs in­ spiritual blessings; that those who have free­ Even with an ordinary real estate deal volved, a government contract becomes vir­ dom will understand, also, 1ts heavy respon­ (and I hasten to acknowledge that many real tually a substitute for intellectual curiosity. sibilities; that all who are insensitive to the estate deals are extremely complicated and For every old blackboard there are now hun­ needs of others will learn charity; that the not ordinary in any way) clients too fre­ dreds of new electronic computers. scourges of poverty, disease and ignorance quently start out with the impression that The prospect of domination of the nation's will be made to disappear from the earth, it is going to be a match of wits between scholars by Federal employment, project al­ and that, in the goodness of time, all peoples two lawyers, and seek reassurances that the locations, and the power of money is ever will come to live together in a peace guaran­ lawyer on the other side will not get the teed by the binding force of mutual respect best of the deal. present-and is gravely to be regarded. and love. In numerous other legal situations, where Yet, in holding scientific research and dis­ covery in respect, as we should, we must also more than one lawyer is involved, clients too frequently feel there is a contest of some be alert. to the equal and opposite danger A MATI'ER OF PRIORITIES that public policy could itself become the kind and are suspicious of the other lawyer's captive of a scientific-technological elite. motives. It is the task of statesmanship to mold, to HON. WILLIAM L. HUNGATE In ordinary contacts with a minister or doctor, just for example, adversary aspects balance, and to integrate these and other OF MISSOURI forces, new and old, within the principles of are seldom present, and there is little oc­ our democratic system-ever aiming toward IN THE HOUSE OF REPRESENTATIVES casion for criticism. the supreme goals of our free society. Tuesday, April 15, 1969 In my view the situation I have described explains in large part the attitude toward v Mr. HUNGATE. Mr. Speaker, I would lawyers by too many members of the public. Another factor in maintaining balance in­ like to brtng to the attention of my col­ Hum.an nature being what it is, little can volves the element of time. As we peer into leagues the following article which ap­ be done about it. society's future, we--you and I, and our gov­ peared in the Aprtl 1969 edition of the A lawyer recognizes all of this, but his pri­ ernment--must avoid the impulse to live only Illinois Bar Journal: mary duty is to serve his own client, re­ for today, plundering, for our own ease and gardless of whether others find this pleas­ convenience, the precious resources of to­ A MATTER OF PRIORITIES: FIRST, THE LAWYER'S ing or displeasing, and regardless of whether morrow. We cannot mortgage the material DUTY TO Hrs CLIENT; SECOND, THE LAWYER'S they choose to cast aspersions when a lawyer assets of our grandchildren without risking PUBLIC IMAGE represents his client "with zeal limited only the loss also of their political and spiritual The proposed new "Code of Professional by his duty to act within the bounds of the heritage. We want democracy to survive for Responsibility" of the American Bar Associ- law." April 15, 1969 EXTENSIONS OF REMARKS 9227 Fortunately, all of the above applies only A goad citizen is a friend to all, regard­ est, best, God-given conscience dictates with to a very small segment of the total popula­ less of color or social status. A white person the right of society to protect and enforce tion, but it is a vocal segment nevertheless; is not better than a colored person; a colored what a democratic consensus of opinion and the repeated utterances of this relative­ person should have no more privileges than deems the highest good. ly small number on the subject of lawyers a white person. The pigment of the skin is Once again, with Federal District Judge does, beyond any question, a.fleet to some de­ the only difference. Charles E. Wyzanski Jr.'s ruling, the United gree the public image of lawyers. 'A good citizen also sets a good example in States must work out such a problem. By Likewise, persons who choose work in gov­ his community. He contributes volunteer deeming that the draft law was unconstitu­ ernment and in politics as their careers; services to community service groups, such tional where it said that a man could be whether they are lawyers or laymen, have as, being a senior leader at a Girls Club, by exempted from Inllltary service only if his similar problems as far as their public image being a big sister to a C.A.P. child, by being objection to war was religion-based, Judge is concerned. A dedicated, honest, conscien­ a companion to a senior citizen. Wyzanski has greatly broadened and sharp­ tious and hard-working legislator (and a He is active in the church of his choice. ened the national debate over America's very high percentage oi" legislators in all This builds a good moral background which. whole draft setup. He has said, and rightly, levels of government are exactly that) vot­ gives reasons for performing services to that the present law discriminates against ing on a highly controversial bill knows in country and felloWIUan. This country was those who may object to the draft on the advance that, whichever way he votes, a large founded on religious background, he will grounds of "profound moral beliefs which segment of the population will commend obey the laws of his community and the constitute the central conviction of their him for his vote and another large segment nation. The breakdown of law and order is beings." of the population will criticize him and chal­ the result of the lack of individual training We welcome this broadened and sharpened lenge his motives and integrity for voting as and observance at church and Sunday debate. We find it well that the question he did. School. Law officers tell us that few who are must now go to the Supreme Court for a The problems discussed above are easy to trained in the churches will get in trouble final, definitive ruling. We are glad that the define, but no solutions are apparent. It is with the law. Judge's decision ls likely to spur the search part of the price to be paid in rendering A good citizen is well informed about the for a bettered means of meeting the nation's public service. things going on around him. Newscasts may military manpower needs. ALFRED Y. KIRKLAND, be dull but this information affects the lives Today, on many fronts, the question of President, Illinois Bar Journal. of everyone. If the youths are dissatisfied conscience is coming more strongly to the with the way adults are running the country, fore. This is a healthy development; it is they must be well informed on these matters, proof of the self-correcting and self-raising if they are going to change them for the nature of the American ethos. And no nation better. or people ever loses by heeding the lessons COLUMBUS STUDENT WINS NA­ A good citizen appreciates what others which crises of conscience teach. TIONAL ESSAY CONTEST have done for him. The brave men in the It will not be easy for the United States to past gave their lives for our freedom and cope with the practical questions raised by thousands of young men have given their Judge Wyzanskl in the John H. Sisson case. HON. LEE H. HAMILTON lives in this war we are fighting now. But the decision giving weight to the young OF INDIANA I feel these are the traits of a good citizen man's conscientious objection to the draft, IN THE HOUSE OF REPRESENTATIVES and the future concerned citizen I hope to and thereby to war, was morally right. In be. the long run such decisions will strengthen Tuesday, April 15, 1969 society rather than weaken it. Mr. HAMILTON. Mr. Speaker, under Also to be welcomed w:as Judge Wyzanski •s the leave to extend my remarks in the CONSCIENCE AND THE DRAFT opinion that the present draft law violates the First Amendment stating that "Con­ RECORD, I include this prize-winning es­ gress shall make no law respecting an es­ say by 16-year-old Carol Poland, of the HON. ROBERT L. LEGGETT tablishment of religion.'' This amendment Columbus, Ind., community. · OF CALIFORNIA has been under serious and progressive weak­ Miss Poland, who received the Lucille ening for some years, primarily through the M. Wright citizenship award from the IN THE HOUSE OF REPRESENTATIVES granting of public and federal financial aid Girls Clubs of America, challenges her Tuesday, April 15, 1969 to religious schools. Judge Wyzanski's appli­ cation of the amendment to the draift law fell ow young people who rebel against Mr. LEGGETT. Mr. Speaker, a few authority-who seek to change the estab­ should encourage the Supreme Oourt to weeks ago Federal Judge Charles E. Wy­ honor the amendment's application in other lishment-to be ready to replace it with zanski ruled unconstitutional the pro­ fields. a better system. visions of the selective service law allow­ Miss Poland's excellent essay, printed ing the status of conscientious objector in the April 9 edition of the Columbus only to those who based the objections to TRAVELING CONGRESSMEN Republic, reads as follows: military service on religious grounds. In THE KIND OF CITIZEN I WANT To BE his decision the judge held that this re­ HON. ABNER J. MIKVA (By Carol Poland) striction was a violation of the first OF ILLINOIS The word "Citizenship" is hard to define. amendment in that if discriminated 1n It means something different to everyone. favor of religion and against nonre­ IN THE HOUSE OF REPRESENTATIVES Being a citizen is having the privilege of ligious beliefs. Tuesday, April 15, 1969 voting. When you receive this privilege, you I agree with and support this decision. are given the responsibility of caring enough Mr. MIKVA. Mr. Speaker, Michael J. about your city and country to take the time Profound moral objections to war-es­ Howlett, the auditor of public accounts to register and vote and the knowledge for pecially the war in Vietnam-must be in Illinois, recently sent me some re­ choosing the one who would do the best job recognized. On purely practical• grounds, marks which he made before a Knights in each office he seeks. I would consider it unsafe to be in the of Columbia dinner in Evansville, Ind. A great many "protestors" have arrived on field with a soldier who had such strong I believe Mr. Howlett's remarks prob­ the scene of the present time. They protest objections to combat. On the theoretical ably reflect the feelings of millions of the Vietnam war, the administration in the ground on which this decision was based, schools, the political leadership and protest Americans-especially those who are just to be protesting. It is not enough just we must recognize the strength of con­ residents of our hard-pressed inner-city to protest, but the people should construc­ viction of the concientious objector who areas. Mr. Howlett points out that if tively take part in these activities. opposes military service on moral Congressmen wish to travel, they might Maybe our country was built on protest grounds. very well begin by traveling to some against a foreign power imposing unfair re­ I include here an editorial from the of the so-called ghetto areas in our strictions and taxes on our forefathers. But April 4, 1969, edition of the Christian Nation's largest cities and to areas of they had a. plan to build a. country, to give Science Monitor: of themselves with hard work, and honesty, rural poverty throughout the country. dreaming of a country with equal rights for CONSCIENCE AND THE DRAFT I believe that Mr. Howlett's remarks in­ everyone, for freedom of religion-not from One of the thorniest but most exalting di·cate a healthy scepticism about the religion. challenges a freedom-strong democracy can travels of congressional junketeers, as Minorities should have equal rights in this face is reconciling private conscience with well as an awareness--which we must country but they should not be permitted to public need. If public need ls not served, hope all citizens share-that Congress rule the majority. The atheist "Medelines" freedom and democracy can be lost. But if shouldn't be granted the right to tell the private conscience 1s not honored, this can first and most important job in this children in the classroom or the astronauts be equally fatal to all that freedom and de­ session is to begin devising solutions to that they have no right to pray or to read mocracy hold dear. The great, continuing, our pressing domestic problems. the Bible. She could have just turned off never-settled problem is to harmonize this Apparently some elements of the her television if she didn't want to hear it. right of the individual to do what his deep- press share Mr. Howlett's thoughts, for 9228 EXTENSIONS OF REMARKS April 15, 1969 his remarks were the subject of an very strongly in Alabama that education job than it has been doing; more impor­ ill., is the answer to many problems, and that tantly, I am convinced that education wants editorial in the Quincy, Herald­ to do a better job than it has been doing. Whig, on March 10, 1969. I include the by strengthening our educational sys­ The program I offer you tonight, which is in Herald-Whig editorial for the perusal tem, we can strengthen our whole State. fact a consensus program which resulted of my colleagues. Great strides were made in education from our legislative conferences, will, I be­ The item referred to follows: during the administrations of Gov. John lieve, give education the opportunity to do a TRAVELING CONGRESSMEN Patterson and Gov. George Wallace. But better job. like many other States, the lack of funds The pride I mentioned earlier in what has Michael J. Howlett, who this year began a is again threatening our fast-growing been done for education in Alabama was a new and well-deserved term as Illinois audi­ sincere expression. But let us not confuse tor of public accounts, speaks often and well, schools. pride with satisfaction. I am not satisfied, at many gatherings and upon many subjects. Gov. Albert P. Brewer has called this nor are you, with what we have in public Sunday night, addressing Knights of Colum­ special session, and has made a number education today. bus of Evansville, Ill., at their golden jubilee of recommendations as to where the And we can't be satisfied with what we have dinner, he teed off on the foreign travels of badly needed funds should come from. in public education today when we find cum­ congressmen and suggested an interesting Already the house of representatives has bersome administrative procedures-far too alternative. given its approval to much of the pro­ many schools--even far too tnany school sys­ Noting that during 1967 U.S. taxpayers tems-shamefully over-crowded classroolllS­ paid the expenses of 206 congressmen for 30 gram, and the senate has now begun debating these programs. our institutions of higher learning at a com­ trips abroad, Howlett suggested that the petitive disadvantage in recruitment of fac­ money might be better spent on tours of But just additional funds are not ulty-dassroom teachers teaching outside American city ghettos and rural poverty enough. Many other States are finding, their subject field-many teachers teaching areas. just as we in Alabama are, that our edu­ on emergency certificates without adequate "I do not doubt that these visits were use­ cational system is still operating under background-salaries substantially less than ful," he said of the trips abroad. "Many of antiquated rules and regulations. As the southeastern average--lack of sufficient them probably were a personal sacrifice by textbooks for our school children--charges the men involved. Information gathered, es­ Governor Brewer said in his opening ad­ dress to the legislature, we must not only of waste and inefficiency in the administra­ pecially in Vietnam, Korea. and Western tion of some of our school systems-failure Europe was necessary to a correct under­ ask our taxpayers for better paychecks to meet the special needs of many children, standing of our foreign policy. for our teachers, we must also promise including those who will not attend college-­ "But the problems of poverty at home better teachers and administrators for and our teachers having to spend valuable aimid the greatest prosperity of all history, our paychecks. Mr. Speaker, I was very class time filling out reports and taking up demand more meticulous attention than much impressed by Governor Brewer's money and having too little time for their they are receiving. Some of the money we address, and I am sure our colleagues students. All of these factors, and many have spent to combat poverty has been more, result in less than the best ... far less wasted." whose States are facing educational crises would enjoy reading it. Therefore, than the best . . . for the children of Ala­ Howlett proposes that we have a year's bama. moratorium on expense-paid trips overseas, I include it in the RECORD, as follows: I have said repeatedly in the past, and I "or at lease some diminution," and use the Mr. President, Mr. Speaker, members of the say again that money alone is not the an­ money thus saved to set up congressional joint session, ladies and gentlemen: swer to the problems confronting us in pub­ tours of city slums and rural poverty areas. We a.re assembled here tonight in extraor­ lic education. Expanding on that theme, he said that con­ dinary session for a most extraordinary rea­ I say this while readily conceding a vital gressmen representing slum districts could son-to do something more, to do something need for additional revenue. arrange to conduct visits of their colleagues better, for the school children of our State. I am convinced that the people of Alabama from states, or districts, having no such After months of study, after many per­ are ready and willing to pay for a quality problems. To provide a two-way street, he sonal visits to schools in our State, and after educational system. But I am not willing to proposes that city congressmen, in return, long and invaluable consultation with you ask them to shoulder this burden unless and "could profit by visits to Appalachia, some of members of the legislature, I am convinced until we can assure them that they are go­ our Indian reservations, and areas of back­ that a crisis does indeed exist in public edu­ ing to get more for their education tax dol­ woods poverty." cation in Alabama today. lar than they have in the past. Howlett, as noted, does not propose a com­ We have been here before. I cannot and will not ask the taxpayers plete halt for foreign trips by congressmen, We have too long had a crisis approach to for a substantial increase in educational and that is wise. Some foreign fact-finding education - in Alabama. That is, we have funds without a corre5ponding increase in trips are valuable. But the taxpayers footing moved from crisis to crisis--each time, ap­ educational quality. To put it another way, the bills have long had doubts about the propriating more money for the public school I ask not only for more money for education, need or value of many costly congressional system, yet not actually doing anything to but more education for our money; I ask junkets. improve the system itself. Our approach to not only for better paychecks for our teach­ His idea it must be suspected, won't be education, rather than keeping pace with ers, but better teachers for our paychecks. embraced happily by Congress. So we don't the times, has simply become more expen­ so now we arrive at the hour when the look for any drastic change. But there is no sive. people of Alabama demand something more question about the need for those in Con­ At the outset I must say-and say it em­ from education than we have had in the gress to understand the problems of areas phatically-that we Alabamians need not be past. They demand that we do more for our other than the ones they themselves repre­ a.shamed of our efforts in public education. public schools than just give them more sent. It could lead to a broader representa­ We can look with pride upon the fact that money. tion of all Americans, not just those of spe­ we rank fourth in the nation in state sup­ The mandate for change is clear. It is cific states or districts. As Howlett said in his port for our schools. We can look with even echoed in every part of our state. Parents talk Sunday night: greater pride upon the fact that Alabama and citizens have voiced their concern for "We have more people at work today than ranks very high nationally in percentage of our present dilemma and have charged their ever before, making more money than ever support for education based on per ca.pita leaders in government with charting a new before. More young people are going to col­ income. But despite our efforts of the pa.st, course. lege than ever before and staying there longer. despite our sacrifices, much yet remains to be But now is not the time to fix blame for We are comfortable and well-informed, but done. the patt. too many of our comfortable, well-informed As we strive in the coming weeks to meet Now is not the time to wish we had done people don't know how the other fellow the chwllenge confronting us, it would be my it differently. llves." fervent hope, and yes, my fervent prayer, Now is the time to welcome a new era 1n that we keep uppermost in our minds this Alabama education. one thought--we are not here on behalf of Now is the time to stop talking a.bout EDUCATION IN ALABAMA the college administrators and faculty; nor what we haven't done and do what needs to are we here on behalf of the public school be done. principals and teachers-we are here for one Our program for education provides Ala­ HON. BILL NICHOLS purpose, and one purpose a.lone, and that is bama with a fresh approach-a. new direc­ OF ALABAMA to do something better for the school chil­ tion for our efforts. dren of Alabama. We seek now to lay the mistakes of the IN THE HOUSE OF REPRESENTATIVES I will offer to you members of the Legisla­ pMt behind us. Tuesday, April 15, 1969 ture tonight an educational program which We seek to alter our educational system may be viewed by some as revolutionary. It in a fundamental way to meet the new de­ Mr. NICHOLS. Mr. Speaker, the Ala­ will propose changes in education adminis­ mands of our time. bama Legislature is presently meeting in tration and educational approaches which And we seek to bring education closer to special session to consider one of the are indeed dramatically different from those the people who support it. most pressing problems facing our State. employed for the past half a century. I am I want the people o! Alabama to know of That is the matter of education. We feel convinced that education can do a better the time and effort which you as membertJ Arrril 15, 1969 EXTENSIONS OF REMARKS 9229 of the Legislature have already contributed schools. We propose that each school system dollars worth of badly needed classrooms and to this effort. In our discussions in the Gov­ in Alabama be required to provide local sup­ school buildings in our State. ernor's Office, you have already exhibited port in keeping with Its ab11lty. They have been a source of discouragement your commitment to a new approach in edu­ We are aware that state government 1s to your governor in trying to build a program cation. now doing more than its share of providing for quality education. The program we offer represents the think­ for public education. Seventy-four per cent But we as a people have faced adversity ing of literally thousands of our citizens of the funds now appropriated to public before, and if we are to realize the great po­ from all walks of life-the very excellent re­ schools 1n Alabama comes from the state­ tential of growth and development and prog­ port of the Education Study Commission­ one of the highest percentages in the na­ ress which exists, then we must not be de­ the comments of many organized groups tion. terred from our objective by the actions of throughout the state-and yes, the letters State government cannot continue to carry these who seek social objectives rather than and wire5 from so many concerned Ala­ this burden without local help. quality education. bamians which you and I have received. I strongly believe that local people will be I am more firm than ever in my determina­ So this program represents, in a very real more willing to take an active interest 1n tion that we in Alabama shall indeed have way, an Alabama commitment to quality their schools if they have an investment In quality education-not a discriminatory edu­ education. them. The people of Alabama who take great cation, but a quality education for every The oft-stated goal of this administration pride in other institutions such as their child in our State. for education is to get our educational dol­ homes, their businesses, and their churches Here, tonight, we reach the hour of deci­ lars to the teacher in the classroom and the are also willing to support their local schools. sion in Alabama. We have come to the time child at the desk for it is here that educa­ State government should not do every­ and the place when we must face the future tion takes place. To this end, bills will be thing for local people any more than the and the promise it holds for our state. Introduced tonight to accomplish the follow­ federal government should do everything for Our educational system must respond to ing specific things: the states. Local people know best what the great demands our people place on it. First, we propose the creation of a perma­ their needs and problems are-and they must We have reached the day when we no nent Education Study Commil:>sion, charged have a direct voice in spending their tax longer can afford the luxury of a second-rate with providing us with a continuing study dollars. etfort in education-when we can no longer of the constantly-changing role and needs of Fifth. We propose that Alabama's class­ afford to give our children anything less than education in Alabama. room teachers be paid 1n the future on the the finest possible preparation for the oppor­ We propose that the first duty of this Com­ basis of their proven abllity to do a good tunities that lie before them. mission shall be to secure a professinoal, ln­ job. Time waits for no man-and no state. depth study of the entire educational sys­ As part of the appropriation blll for the And unless we seize upon the opportunity tem in Alabama from the smallest school to next two years, we recommend an initial presented to Alabama and its people here and the State Department. across-the-board pay raise for all of our now, it will surely slip from our fingers. Such a study will deal especially with tuch school teachers. It is desperately needed to I have been described in the press as being areas as business practices, management, and raise salaries to the level of our sister states, supremely confident that this session of the the possibility of more use of buildings, per­ and to enable us to attract and keep out­ Legislature will result in a responsible pro­ sonnel, and resources. standing young teachers. gram for our schools. I am supremely confl.­ The work of the Commission can give the Moreover, during the second year of the dent--supremely confident that you mem­ Legislature guidance on future legislation to coming biennium, we propose a system of in­ bers of the Legislature are prepared to do upgrade and improve the system as a whole. centive pay to be administered by the lo­ what needs to be done, what must be done, And at the same time, it will give those in cal Boards of Education-and used to pro­ for the school children of Alabama. education some concrete suggestions on how vide appropriate reward for those outstand­ I am convinced that you are convening to make wisest use of our tax dollars. here In a constructive spirit--not to ing teachers who demonstrate their ex­ tear Secondly, we propose the creation of a cellence. down but to build up--not to argue nega­ Com.mission on Higher Education which will tively but to act positively-not to look for be responsible for advising the legislature I feel strongly that those who give of their problems but to find solutions. on matters concerning all aspects of higher best, no matter in what field, deserve rec­ My charge to you is to repeat my opening learning from the junior college to the grad­ ognition. remarks--We are assembled here tonight in uate level. An incentive program will also be a strong extraordinary session for a most extraordi­ This Commission will advise the Legis­ inducement to our teachers to stay in Ala­ nary reason-to do something more, to do lature on budget requests, future programs, bama and stay in education-because they something better-for our children. and additional Institutions. We simply can­ know there is room for advancement. It is not They surely deserve no less. not afford wasteful duplication of effort in fair for the overwhelming majority of skilled, higher education when our needs are so dedicated, motivated teachers to be held to great. the level of the lowest performance. HOW TO F.sCAPE U.S. TAXF.8 Thirdly, we propose legislation to provide Our program also contemplates attention for the election of the State Board of Edu­ to those areas of education which have been cation and all local Boards of Education and too long neglected-the needs of retarded HON. DOMINICK V. DANIELS children, emotionally disturbed children, for the appointment of the state superintend­ OF NEW JERSEY ent and all local superintendents. crippled children, vocational rehabilltation, Education ls as much a part of govern­ and vocational education. These and other IN THE HOUSE OF REPRESENTATIVES ment as any other function at the state and worthy programs have not been in the main­ Tuesday, April 15, 1969 local level-and as such, should be answer­ stream of our educational effort. This shame­ able to the people who provide its support. ful affront to thousands of deserving children Mr. DANIELS of New Jersey. Mr. At the same time, we recognize that the can no longer be tolerated. Speaker, if there is one issue which has top administrators of our school system at all At the same time, we recognize a continu­ come to the fore, it is that of tax re­ levels must be highly-qualified, full-time ing responsibillty to retired teachers, to ad­ form. Even the most unsophisticated of professionals. Elected boards of education ministrative personnel, to school bus drivers, our fellow citizens are aware that our must be able to select the best possible peo­ maintenance employees, cafeteria workers, Internal Revenue Code is riddled with ple as superintendents---persons who will be and all those others so vital to the normal directly supervised by the boards in their operation of our schools. loopholes which favor the very rich as daily administration of our schools. We simply cannot neglect any phase of against the middle- and lower-income A system of elected Boards of Education education if we are to have a well-rounded taxpayers. and appointed Superintendents w111 give us program that serves the needs of all of our On April 10, 1969, the Christian Sci­ an organization that answers directly to the people. Our program reaches every area­ ence Monitor published a very interest­ people and also provides a competent, busi­ from the grade school to the graduate school. ing story under an Associated Press by­ nesslike approach to the daily functions of As a part of our respons1b1llty, we are line which explained how it is possible for our schools. recommending revenue measures to you to the very rich to escape paying their fair Fourth we propose to you tonight two provide the necessary funding. We are ask­ measures which will provide for the future ing you to close some of those gaps in our share of the tax load. allocation of public funds to education and tax laws which have given favored treatment Mr. Speaker, this account is worthy will correct such Inequities as may exist in to special groups. Let me make one thing of the attention of all Members of the our present system. clear-I am unalterably opposed to and will House, and especially the distinguished Every child in Alabama, whether he Uves veto any increase in our already high sales chairman, Mr. Mn.Ls, and members of on a farm or in a city ls entitled to the same tax which hits hardest those least able to the Committee on Ways and Means, who amount of state money for his education. pay. have been considering this subject for We therefore recommend the altering of I am aware of the great concern in our several months now. I ask unanimous the present allocation formula so that each state about the effect of recent court orders, child gets the benefit of his fair share of state particularly those of the three-judge panel consent that it appear following my re­ funds. I am determined that this be ac­ in the Middle District of Alabama involving marks in the RECORD. complished. 99 of our school systems. It has been said that there is no force The second proposal addresses itself to the These arbitrary and capricious rulings have on earth that can compare with that of desperate need for more local support for our denied us the use of some fifteen million an idea whose time has come. It seems 9230 EXTENSIONS OF REMARKS April 15, 1969 to me that tax reform is one idea whose What you might do instead is borrow $15 President to seek Congress' approval be­ time has come. I hope that we will not million and buy a nice big apartment build­ fore U.S. troops are committed to fight ing. Figure an income from rents of $1 let another April 15 go by without pro­ milllon, reduced by maybe $500,000 for up­ in foreign oountries. viding the tax relief that Americans of keep and loan payments. Also favor by nearly a 5-to-1 vote the moderate income need and deserve. So far, you're $500,000 in the black as a abolishment of the electoral college and Mr. Speaker, I cannot, in conscience landlord, but don't worry about having to a direct, popular vote for the President vote to continue the odious 10 percent pay tax on it. Depreciation will bail you out. and Vice President. surcharge unless meaningful tax reform While allowable amounts in succeeding Support by lesser margins, the lower­ comes with it. I define meaningful tax years will be smaller, one accelerated meth­ ing of the voting age, a random chance, reform as tax reform which can be seen od of figuring depreciation would permit you lottery draft system, and the continua­ and felt by the great mass of the people to claim your $15-milllon investment de­ tion of the U.S. space program at its of the Nation. I will not settle for less. preciated $750,000 the first year. present level. The article follows: PAPER LOSS RESULTS Tabulations on the 11-question survey GIFT DEDUCTIONS POPULAR: How To ESCAPE You get to deduct depreciation from in­ were stopped at 15,747 when the trend U.S. TAXES come, even though no actual cash expendi­ of the responses was clearly established. ture occurred. So the $500,000 you netted (By the Associated Press) from operating the building becomes in­ I am gratified at the number of re­ WASHINGTON.-There are two kinds of mil­ stead a paper loss of $250,000 and this can­ sponses. They show that Ninth District lionaires in the United States: those who pay cels out the $250,000 salary. Result: no taxes residents are keenly aware of the issues, federal income taxes and those who don"t. In instead of $110,000. both foreign and domestic, which face the latter group there were 21 last year. What makes it even more attractive ls this Nation. How is it possible, you ask as you reach for that the amount of cash that has passed I recognize the limitations and inade­ your checkbook after a losing bout with Form through your hands-money you could put quacies of a brief questionnaire, but it is 1040, to have an income of more than $1 into other short-run projects-is $750,000. million a year and yet not pay any federal That's more than triple the cash you had to nevertheless helpful to me as one indi­ income tax? play with back before you became an apart­ cation-among several--of public opin­ The method mos·t favored by untaxed mil­ ment owner on borrowed capital. ion in the 16 counties of the Ninth Dis­ lionaires is to give away things that have Then there is the oil-depletion allowance. trict of Indiana. grown in value since they were acquired. Suppose your wells are producing a be­ The results of the questionnaire are as Stocks, real estate, a share of the donor's fore-taxes income of $1 million a year. It follows: business, art objects-all are good for this costs $450,000 to run the operation---deduc­ treatment. _ RESULTS OF QUESTIONNAIRE tlble expense-so your net is $550,000. ELECTION REFORM The current value of the gift is deducted But the depletion allowance, one of the from income subject to taxation. SO it's quite most controversial tax breaks in the books, Electoral College possible to reduce taxable income to zero. permits you to deduct 27Y2 percent of the Would you approve of a Constitutional One return cited in a recent Treasury De­ gross income from the wells. So off comes amendment which would substitute popular partment study showed adjusted gross in­ $275,000. election of the President and Vice President come of $10.8 million, contributions totaling BLACK TO RED INK for the present Electoral College? $10.5 million and other deductions of $400,- You still have another $275,000 in income. 1. Yes: 12,411or80.0%. 000-plus. No taxable income and hence no You can make it disappear this way: 2. No: 3,087 or 19.9%. tax. You could spend $375,000 developing some Voting age Another taxpayer's adjusted gross income other oil properties. This ls deductible ex­ of $4.3 million was erased by $4.5 million Would you favor lowering the voting age pense, so your black-ink $275,000 becomes of Americans? deductions, including $4 million in contribu­ a red-ink $100,000. tions. 1. Yes: 8,190 or 52.2%. You now are theoretically $100,000 in the 2. No: 7,496 or 47.7%. SPECIAL EXCEPTION hole. Surprisingly enough, this is a position Ordinarily, a taxpayer may deduct no more many of the superrich aim for, because NATIONAL SECURITY than 30 percent of his income for charitable paper losses are just the thing to shelter The draft gifts. But Ws not an ironclad rule. other income. Attempts to revise the draft law come be, A special exception allows the claiming of In your case, the $100,000 loss would en­ fore the Congress each year. Would you favor: contributions without limit if in 8 of the able you to have $100,000 in other income­ 1. The present system, which permits stu­ past 10 years the taxpayer's contributions, stocks and bonds, for instance-and keep it dent deferments: 4,493 or 29.5%. plus his taxes, have added up to 90 percent all. 2. A random-chance lottery system, with or more of income. The net result of your year as a combina­ no student deferments: 5,513 or 36.3 %. One aspect of these gifts that bothers those tion oilman and stock-market babbler ls that 3. A professional, all-volunteer Army, at seeking reform of the tax laws is that it ls you have paid no tax, and you come away an estimated increase in payroll of $6 to legal for Mr. Rich to make his donations to a with at least $275,000 clear. And though $1.1 $17 billion each year: 5,163 or 34.0%. foundation run by his family. million has passed through your hands, you And perhaps the contribution to the Rich have had, in the eyes of the law, no taxable Space Foundation is a share of Mr. Rich's business. income. The early Apollo series of space exploration This kind of giving, a Treasury study says missions has been spectacularly successful. drily, "lacks the finality which characterizes Would you: a true parting with property." CONGRESSMAN HAMILTON RE­ 1. Continue to fund the space program at Congress is thinking of throwing out the PORTS ON RESULTS OF HIS 1969 its present level of $3.8 billion: 8,448 or unlimited charitable contributions privilege, QUESTIONNAIRE 54.1% . largely because it figures so often in stories 2. Reduce the funds for space exploration: about untaxed millionaires. 5,144 or 32.9 % . Another proposed change would make the HON. LEE H. HAMILTON 3. Abandon the space program: 2,019 or untaxed superwealthy an extinct species by OF INDIANA 12.9 %. imposing a minimum tax on all high-bracket IN THE HOUSE OF REPRESENTATIVES Anti-Ballistic-Missile System incomes, with no exceptions. Do you favor: Before he left office in January, Treasury Tuesday, April 15, 1969 1. Construction of an anti-ballistic missile Secretary Joseph W. Barr told Congress many Mr. HAMILTON. Mr. Speaker, I wish system to defend our cities from ballistic middle-income taxpayers are losing confi­ missile attack at a cost of approximately $50 dence in the fairness of the tax system. His to report that an extensive sampling of the returns on a questionnaire which I billion: 4,317 or 30.1 % . warning of a "taxpayer revolt" is still echoing 2. Negotiating an international agreement on Capitol Hill. The new Treasury team also sent to the residents of the Ninth Dis­ with adequate inspection safeguards to limit is pledged to a reworking of the tax laws. trict of Indiana indicates they: anti-ballistic system defense expenditures: DEPRECIATION HELPS Support overwhelmingly the establish­ 10,007 or 69.8%. If the unlimited charitable contribution ment of a postal corporation, such as I TAXES AND ECONOMIC POLICY rule ls the favorite of untaxed millionaires, have proposed, to remove the Post Office one of the runnersup would have to be the Department from politics, and meet costs Tax incentives depreciation rules. from postal revenues. In attacking the problems of crime, slums, Depreciating is a great vanishing cream Favor, by nearly a 4-to-1 margin, in­ rural development, pollution, housing and for taxable income. You don't have to be a ternational nuclear protection negotia­ other social problems, should the 91st Con­ millionaire to use it, but it helps. gress rely primarily upon: Suppose you're a corporation executive tions rather than the construction of an 1. Direct government spending: 1,547 or poking along at $250,000 a year. Normally, anti-ballistic-missile system. 9.9%. you might figure on paying about $110,000 in Support by nearly a 5-to-1 margin, a 2. Private enterprise, encouraged by tax income tax. congressional resolution requiring the incentives: 3,871 or 24.9 % . April 15, 1969 EXTENSIONS OF REMARKS 9231 3. A combination of 1 and 2: 10,088 or AMERICANS: RESPECT AMERICA Section 922(b) (5) of the act states, in 65.1%. There are many ways in which we Ameri­ part: Tax sharing cans can respect our country. I think patriot­ It shall be unlawful for any licensed im­ Do you favor sharing Federal government ism, by far, is the best way to show our re­ porter, licensed manufacturer, licenseci tax revenues with State governments when spect for America. dealer, or licensed collector to sell or deliver­ the federal budget is in, or near to, balance? Patriotism is the love of one's country and (5) any firearm or ammunition to any per­ 1. Yes: 11,219 or 74.0%. much more. Patriotism is loyalty. Loyalty is son unless the licensee notes in his records 2. No: 3,928 or 25.9 % being true and faithful to our country. If we ... the name, age, and place of residence of live in a country whose privileges and protec­ FOREIGN POLICY such person if the person is an individual tion we enjoy, it is our obligation to recog­ ... (Empha.sis added.) Troop commitments nize the benefits we receive by being true to Would you favor a Congressional resolu­ its government. A good American citizen is Ammunition, as defined in the act, tion requiring the President to ask for Con­ loyal. "means ammunition or cartridge cases, gress' approval before United States troops Patriotism is being fair. We must not think primers, bullets, or propellant pawder are committed to fight in fOhio County $1,713,000 during fiscal year 1970, would Mr. HAMILTON. Mr. Speaker, I am formed a district a year or so ago. To date be forced to delay approximately 65 to very concerned about certain items in no funds have been available to staff this 75 percent of their needed improvements. the recommended budget for the Soil new district. The part-time technical lt required much initiative, enthusi­ Conservation Service. assistance that has been made available asm, hard work, and local money on the I represent the people in 16 southeast comes from the adjoining Dearborn part of my constituents to advance their Indiana counties. In past years many of County soil and water conservation dis- watershed projects to where they are these 16 counties have been declared trict, which further dilutes the assistance now. I do not believe we should so lightly flood disaster areas and drought disaster to that district. regard this local effort, in which we en- areas within the same year. The conser­ In the light of these needs and the im- couraged the action, and then say: vation of soil, water, and related re­ pact of the soil and water conservation No, we cannot assist you now. You must sources is vital to both their livelihood movement on the lives of my constitu- live with your flood problems until some in­ and well-being. ents, the national budget appropriation de:flntte future time. Development and management of soil for technical assistance to soil and water and water resources under the leader­ conservation districts should be $130 Instead, I strongly believe we should ship of soil and water conservation dis­ million. encourage this local initiative whenever tricts is moving toward a brighter fu­ Within the total program of the Soil and wherever they have the courage to ture. These districts are continually Conservation Service are the Public Law move forward as my constituents have broadening their horizons to meet ever 566 small watershed projects which have done. increasing conservation needs. Where gained tremendous popularity. These A study completed in Indiana identi:fied formerly they were concerned in only projects are aimed at full development 44 additional potential WS1tersheds in agricultural erosion activities, they now of the soil and water resources in an area, the Ninth District that have problems are deeply involved in total soil and and serve to reduce costly flooding, re- and needs thalt can be overcome by ac­ water resource development. This in­ duce erosion and sedimentation, provide tion under the Small Watershed Act. cludes assisting local people, both rural, water for industry and rural and urban With these additional potential projects and urban, manage water resource for areas, create water-based recreation de- installed the Ninth District could receive flood prevention, erosion, and sedimen­ velopments, and significantly improve annual benefits amounting to $2,300,000 tation control, municipal, and industrial the quality of the environment. from flood preverution and drainage im- water supplies, recreation, beautifica­ In the Ninth Congressional District . prov.e~ents, have 3,000 man-years of tion, fish, and wildlife, and low flow for there are 16 applications on file in vari- additional employment, create 200 new water quality control. ous stages of completion. A breakdown jobs and 69 new or expanded businesses, Each of the 16 soil and water conser­ of these projects is shown as follows: 15 84ditional water supply reservoirs, vation districts in the Ninth Congres­ Completed: Elk Creek. sufficient to supply 91,000 people, 18 new sional District are governed by five local Approved for construction: Stucker recreat~on developments, and the in­ district supervisors, plus a number of as­ Fork, Muddy Fork of Silver Creek, Twin- crease m the annual payroll would be at sistant supervisors. They work with and Rush Creek, and Dewitt creek. least ~1,480,000 per year. The reduced provide the technical assistance of the Planning completed and awaiting au- P.Olll;ltlon from sediment would be very Soil Conservation Service to coopera­ thorization: Delaney Creek. significant 0,600,000 tons per year) and tors who either own or operate land. Planning completed and undergoing the cost of antipollution efforts would be These supervisors are dedicated, lead­ review: Lost River. reduced by nearly $300,000 per year. The ing citizens in their areas, and serve Planning authorized and underway: total need for. application of soil and wa­ without pay to improve the public wel­ Upper Vernon Fork, Lower Vernon Fork ter conservation practices would be ac­ fare through soil, water, and related re­ and East Fork of Whitewater River. ' celerated, and when all projects were in­ source conservation. These districts had Preliminary investigation completed: stalled, would have a value to the land in 622 new cooperators apply for assistance Whitewater River (Fayette County), and the N~nth District that would exceed this year, which brings their total to Upper West Fork of Whitewater River. $40 million. 8,656, 3,236 of whom applied one or more Preliminary investigation studies un- For the benefit of these people, as well conservation practices this year. The derway: Silver Creek and Blue River. as many others in Indiana, the Soil Con- Dearborn County District alone has as­ Applications awaiting service: White servation Service national budget appro- sisted its 3,481 cooperators to install 432 Creek. priation should be placed at no less than ponds, 39 of which were done last year. On most of these projects, local people $8 million for watershed planning, and These districts depend on the technical have spent considerable time and money $80 million for watershed operations. assistance furnished by Soil Conserva­ to organize conservancy districts, and La.st year I rePorted to this committee tion Service personnel to achieve the secure land easements and rights-of-way. thait there was not a re.source conserva­ planning and application of the mul­ In some cases moneys were borrowed and tion and development project in my dis­ tiplicity of conservation measures. interest is being paid to provide their trict, but that careful evaluation was Funds budgeted in 1969 furnished 600 portion of the costs for this watershed being made of the outstanding successes man-years less technical assistance to development. All this activity was predi- being achieved in the Indiana Lincoln districts nationally than was budgeted in cated on the Federal Government pro- Hills resource conservation and develop­ 1959. This trend toward eventual emas­ viding their share of the agreed amounts ment project. The conservation action culation of soil and water conservation of money for planning and construction programs being achieved on the part of districts, dedicated to planned develop- on schedule. Preliminary investigations local people in the Lincoln Hills resource 9234 EXTENSIONS OF REMARKS April 15, 1969 conservation and development project terms of the Foreign Agents Registration when attending as guests at a Jewish High was too much of a temptation to over­ Act. Holiday service I One may well imagine the look. Today I am happy to report thait Moreover, I believe that the duties of reaction in Cairo if an American spokesman had. made similar personal attacks upon the application for the Historic Hoosier the United States regarding our relations members of the United Arab Republic gov­ Hills resource conservation and develop­ toward .a country with which we are at ernment. ment project has been prepared and sub­ peace, Israel, require us to put an end Even the American press was attacked­ mitted for planning approval. However, to the activities within our boundaries of most especially, the New York Times, which I am most unhappy about the delay in any agency such as the Palestine Libera­ Arab propagandists keep insisting is "Jewish getting this application approved. I sin­ tion Organization. owned." Yet, it is impossible to report U.N. cerely urge this committee to support Mr. Speaker, the background of this debates on the Middle East without giving more space to the Arab spokesmen than their the $10,252,000 in the budget for resource entire matter is well discussed in an opponents, because of the mere factor of conservation and development and to article appearing in the current issue of number. A line by line survey of the Times add to this every dollar possible. Prevent World Warm, a magazine pub­ coverage of two months, including 30 days Mr. Speaker, I know that this is a time lished by the Society for the Prevention before the Six Day War and 30 days after­ when every Federal dollar must be spent of World War m, Inc., of 50 West 57th ward, in fact shows 59.3% of the space given wisely. But, we must also move ahead Street, New York, N.Y., which should be the Middle East during that period to be with certain proven domestic programs of great interest to my colleagues: "pro-Arab" and only 40.7% to be "pro­ Israel." Yet, it continues to be a constantly for the well-being of our own people. In How AR.AB PROPAGANDISTS AND THEm FRIENDS repeated-though untruthful-theme of my opinion, the benefits attained through WORK IN AMERICA Arab spokesmen that "the American press is the work of the Soil Conservation Service It is a commonly heard complaint from against us"-because it is "Zionist con­ is of tremendous value to our Nation. I Arab quarters that their cause has "no voice" trolled." sincerely hope the increase in budget in America. In point of fact, the exact oppo­ It is true, of course, that the Arab-Israeli appropriation outlined in this statement, site is the case. war was more fully reported on television will be favorably considered. Each of the 14 Arab states has its own from the Israeli side than from the Egyptian delegation-and usually its o~n informa­ side. But the explanation here was very sim­ tion officer-at the United Nations. On top ple: the Israelis welcomed any reporters, in­ of that, the Arab Information Center, oper­ cluding cameramen, who could find trans­ ating for all of the Arab League states, main­ portation to follow their forces. On the other HOW ARAB PROPAGANDISTS AND tains headquarters in New York, Washington, hand, the Egyptians locked up all American THEIR FRIENDS WORK IN AMERICA Chicago, San Francisco and Dallas-plus a correspondents in a Cairo hotel, under guard, representative in Florida. and kept them there during the hostilities. There is also the Palestine Arab Delega­ Under these circumstances, the Arabs are HON. JAMES H. SCHEUER tion-which purports to represent the in­ hardly justified in complaining that few pic­ OF NEW YORK digenous Arab inhabitants of Palestine, but tures were taken of their armies: after all, is actually the registered agency of the Arab IN THE HOUSE OF REPRESENTATIVES a cameraman cannot cover a war from a Higher Committee of Palestine, headed by hotel room. Tuesday, April 15, 1969 Haj Amin el-Husseini, better known as the former Grand Mufti of Jerusalem. (He was THEm MAP OMITS ISRAEL Mr. SCHEUER. Mr. Speaker, the ac­ once Hitler's "special advisor" on the "final The well-financed Arab Information Cen­ tivities of several official Arab propagan­ solution of the Jewish problem.") ter publishes a slick-paper monthly, a fort­ da agencies operating in the United Most reprehensible of all is the Palestine nightly news service and innumerable States have reached scandalous propor­ Liberation Organization (PLO)-an agency pamphlets; sends speakers to uncounted re­ tions. established and financed by the Arab League ligious and civic groups; provides free films The Arab Information Office, for ex­ states for the express purpose of organizing and maps to colleges; recruits participants guerrilla units to invade Israel, in order to for radio and television programs-and stands ample, maintains headquarters in five bring an end to what it insists upon calling ready to supply any high school debater with major American cities, through which it the "Zionist usurpwtion" there. This agency a 10-pound assortment of literature. (Indeed, engages in a heavily financed program is openly dedicated to defiance of United its supply of printed material is one of the of propaganda activities. It is registered Nations peacekeeping resolutions, and it pub­ largest available at any information agency as an official spokesman for the 14 coun­ licly proclaims its goal of ending the exist­ of any government maintaining outlets in tries of the Arab League. ence of the State of Israel. Yet, it is pevroitted the United States.) The general tenor of these propaganda to operate with offices in the United States, Unfortunately, not all of the material from although its bellicose purposes are clearly set this source is as accurate as might be hoped. activities is well indicated by the fact that forth in papers filed with the Foreign Agents For example, to this very hour of writing, the authorized maps of the Middle East, Registration Section of the Department of the well-printed maps of "The Arab World" issued by the Arab Information Office, do Justice. continue to show Israel only as a cross­ not even indicate the existence of the One might well ask whether the United hatched area marked "Israeli occupied ter­ State of Israel. As long as the Arab States is not in fact acting contrary to its ritory of Palestine." Less partisan persons States do not admit the existence of obligations to countries with which we are at might be pardoned for asking whether, after Israel, the hope for peace in the Middle peace in providing haven to such an agency 20 years of recognition by the United Na­ East, or even the possibility of opening as the PLO; and one must certainly say that tions and most of the countries of the world, in permitting it to operate within our bor­ an Arab map might not at least show the direct negotiations there is obviously very ders, we are leaning over far backward to existence of the State of Israel--even if Pres­ small. make things easy for Arab war-promoters. ident Nasser might prefer to wish it out of Of even greater concern, however, is being. the fact that another officially sponsored ONE-SIDED VOICES The expenditures of the Palestine Arab Arab organization, devoted to securing The mere presence of so many Arab state Delegation are much smaller than those of support for illegal guerrilla operations delegations at the United Nations provides a the Arab Information Center with its numer­ kind of built-in advantage for certain propa­ ous branches). but its activities are a matter and schemes of terrorism against a ganda purposes. When Security Council de­ of special concern, because unlike most for­ peaceful neighbor, is actually maintain­ bates are televised, for instance, the number eign propaganda agencies this "Delegation" ing an office in this country under the of minutes given to Arab spokesmen and concerns itself very directly with internal guise of providing information. I refer their supporters is invariably several times affairs of the United States. to the Palestine Liberation Organization, greater than that given to Israel and her For example, when President Johnson an­ headed by a man named Yasir Arafat. It usually less-verbose friends. nounced that negotiations would open for is the business of this group to organize On these occasions, moreover. the Arabs the possible sale of new aircraft to Israel, the have generally seen fit to play fast and loose "Delegation" sent him a scathing telegram guerrilla bands td invade Israel. It is with the ordinary rules of diplomatic cour­ and released it to the press. When Vice Pres­ shocking to learn that such an agency tesy, while objecting to any slight technical ident Humphrey and President-Elect Nixon maintains an office on Second Avenue, in deviation from the rules by those on the spoke in support of the same purpose, they New York City. other side. were also favored With telegrams accusing Mr. Speaker, I believe that the activ­ For example, during the debate following them of courting "Zionist votes" and "harm­ ities of this Palestine Liberation Organi­ the Six Day War, the Ambassador of Saudi ing" American interests. We know of no other zation exceed the limits prescribed for Arabia delivered vituperative attacks against purportedly official diplomatic group which both Governor Nelson Rockefeller and the conduct.a itself in such a manner-and it the operation of friendly information late Senator Robert F . Kennedv, on the is unquestionable that an American infor­ services in this country, a.3 defined by the ground that they had donned "yarmulkes mation representative in Cairo, resorting to April 15, 1969 EXTENSIONS OF REMARKS 9235 the same methods, would be hustled out of "Kennedy and Sirhan, Why?"-the outra­ plaintive plea over what he called the the country at once, or put in Jail. geous theme of which is that the Jordanian litigation explosion. For he and his fel­ assassin of the late Senator Robert Kennedy NEO-NAZIS AIDED ought to be thought of as a political prisoner, low usurpers are alone responsible for Even more reprehensible, however, 1s the instead of being tried for murder in the any "litigation explosion." Their many, relationship which this agency has built up ordinary way in the courts of California. many maverick decisions against the with some of the more extreme hate-groups "Sirhan's act is not an ordinary case of American people--their seeming dedica­ in the United States, where the obvious ef­ murder: it is a political act and political tion to rewrite our basic legal concepts fort is to set American citizens of different assassination. Hence traditional legal devices and laws were his Court's own fault-not religions against each other. At one period, and legal remedies cannot adequately provide the Congress or the American people. indeed, the "Delegation" actually permitted proper defense for the accused,'' we are told. a self-avowed neo-Nazl group, the National Mehdi, in effect, tries to make Sirhan's ter­ Most humorous of the Chief's retalia­ Renaissance Party, to use the Arab postage rible crime into a mere incident in the war tory pouting against Congress was his meter for the purpose of mailing out the between Arabs and Israelis (with the late claiming the High Court decisions added "Party's" own vicious anti-Jewish publica­ senator classified as an Israeli protagonist). a "civilizing aspect to our society." tion. On another occasion, "literature" writ­ The idea is thus suggested that Sirhan should Only an individual oblivious to what is ten by the Palestine Arab Delegation was be treated as "a prisoner of war," with Ken­ taking place in our country-the mur­ made available for printing in Common Sense nedy classified as "a casualty in that war." ders and rapes, criminals running ram­ (described in a staff report of the House Must our government tolerate this? In pant, anarchists carrying the flag of the Committee on Un-American Activities as "the short, Arab propaganda runs the entire source of some of the most vitriolic hate gamut from slick-paper appeals intended to enemy, millions of dollars in property propaganda ever to come to this Cominittee's influence people with cultural and intellec­ damage, homes destroyed, little children attention")-and the material actually ap­ tual curiosity, to the stirring up of race denied prayer-would have the audacity peared in two editions of Common Sense hatreds, the organization of guerrillas, and to boast that his role in unleashing the even before the Delegation got around to is­ even a quasi-exculpation of assassination. criminal element on our people has any suing its own p amphlet edition. Other hate­ Some aspects of this agitation are almost relationship to a better society. literature from the same source has been certainly contrary to American law, and are Mr. Speaker, I include a report by Lyle extensively used by Gerald L. K. Smith, and certainly in violation of good public policy. Denniston, from the Evening Stair for equally notorious American anti-Jewish There is no excuse to permit the intentional agitators. stirring up of group hatreds in this country April 10, 1969, as follows: It is one thing to advocate a national by people acting in the name of a foreign WARREN HITS EFFORTS To CURB COURT'S POWER cause; it is something quite different for a government, and our international obliga­ (By Lyle Denniston) foreign agency to try to stir up dissention in tions are clearly inconsistent with allowing Chief Justice Earl Warren has rebuked a country with which peaceful relations pre­ the continued operation of Inilitarist-ter­ congressmen who tried to take away some sumably prevail. rorist groups like the Palestine Liberat.ion of the Supreme Court's powers, telling them: We should emphasize here that the Pales­ Organization. "A free people require a free judiciary." tine Arab Delegation is not a self-supported Warren's comments in a speech here yes­ group of agitators. It has filed its official reg­ terday, 1narked the second round of criticism istration papers with the Department of Jus­ he has aimed at Congress in the last month. tice (Foreign Agent Registration No. 1459) as WARREN BLASTS REPRESENTATIVE A few weeks ago he bluntly accused the an agency of the Arab Higher Committee for GOVERNMENT lawmakers of depriving the high court and Palestine, with headquarters at Almansurieh, lower courts of the full amount of money Lebanon; and the Higher Oommittee's Chair­ they need to do their work. man, the former Grand Mufti, is listed as re­ HON. JOHN R. RARICK Yesterday's speech, which was oblique and siding in Egypt, near Cairo. Early publica­ OF LOUISIANA indirect compared with the earlier one, ap­ tions of the "Delegation" list support from peared to be an answer to the effort in Con­ the four Arab states surrounding Israel, but IN THE HOUSE OF REPRESENTATIVES gress last year to deprive the justices of more recently only the Higher Oommittee's Tuesday, April 15, 1969 some of their authority to decide criminal sponsorship has appeared The "Delegation" is law issues. recognized at the United Nations, to the Mr. RARICK. Mr. Speaker, every law­ When Congress attempted to include these extent of appearing before various official abiding citizen agrees that "free people curbs in the new anticrime law, the effort committees, where it claims to represent the require a free judiciary." The communi­ was beaten but only by narrow margins. Arab Palestinians. These facts make its unin­ cations breakdown results in the word Warren's response came indirectly as he vited intervention in America's domestic "free." used the historic figure of Daniel Webster affairs all the more inexcusable. This was a weak excuse for Chief Jus­ to make his point. The chief justice was STUDENTS USED AS AGITATORS tice Earl Warren to berate the elected speaking at a ceremony marking the anni­ A survey of this subject would be incom­ Members of the U.S. Congress, for their versary of an 1819 Supreme Court decision plete without mention of the Organization mandated duty to their constituents to in a case in which Webster was the winning of Arab Students in the United States and lawyer. The case upheld the royal charter of Canada, which has units on over a hundred act within the framework of the Consti­ Dartmouth College and laid the basic foun­ American college campuses. The United tution to correct power-grasping deci­ dation for much of American Business law. States welcomes students from all parts of sions of an arrogant Supreme Court, Warren recalled that Webster, as a mem­ the world, and tries to help them secure an which has treated the Constitution as if ber of Congress, had been "stern and un­ education-but in this particular case, the it were some archaic scrap of paper. Or swerving-in his opposition to legislative at­ students who belong to the Organization are perhaps the Chief-quick to defend judi­ tempts at retaliation to unpopular Supreme also told to consider themselves as political cial revolution, dissent, and change-­ Court decisions. The chief justice praised spokesmen for the views of their home gov­ Webster for his "tireless effort to protect and ernments. The Organization prints an elab­ fears legislative process with the people sustain the independence and the integrity orate magazine, which contains some of the having a voice in Government. of the federal courts, and their authority to most violent anti-Israel propaganda that we Strange and erratic behavior for an give meaning to the language of the Con­ have seen-and its national convention it appointed otficial--even Warren-to stitution." entertains speakers from the Palestine Lib­ openly profess his disapproval of the After quoting Webster as saying that the eration Organizations. Apart from other con­ constitutional system by attacking re­ judicial power was "essential and indispen­ siderations, it seems hardly appropriate for form measures proposed by the U.S. Con­ sable to the very being of this government," an organization of foreign students, with ob­ gress. Warren said that those "underlying prem­ vious support from outside governments, to ises" remain valid today. engage in such activities while its members A responsible, constitutional judiciary The chief justice also returned to his ear­ are guests in our own country. is essential and indispensable--the very lier theme that adequate facillties must be At its last-year's National Convention the essence of this Government-to maintain provided for the courts so they could han­ Organization of Arab Students honored Dr. law and order. This is why governments dle what he called a "litigation explosion." M. T. Mehdi as its "Man of Year." Dr. Mehdi, are established among men. And it is only He commended lawyers who work without a former employee of the Arab Information because of Mr. Warren's secessionist de­ adequate pay in handling unpopular crim­ Center (at its San Francisco branch), now parture from his duty under the consti­ inal cases and said these lawyers "can right­ heads The Action Committee on American­ tutional plan that many Members of the ly insist that there be an allocation of pub­ Arab Relations, an ostensibly domestic agency lic resources" to attain the "goal of equal which describes itself as "an organization U.S. Congress have felt compelled to in­ justice under law." dedicated to better American-Arab under­ troduce bills and amendments to restore Defending the advances the high court standing. a constitutional judiciary, having integ­ itself had made in the field of criminal law, Dr. Mehdi's principal claim to fame, how­ rity and the confidence of the pe0ple. Warren said the result has been to add a ever, is the authorship of a book entitled Few will be persuaded by Mr. Warren's "civilized aspect to our society." 9236 EXTENSIONS OF REMARKS April 15, 19.69 AN AMERICAN AFFRONT TO machinery he wanted. At present the insults ington which are so jealous about the use CHILE? and attacks of "Clarin" against the United of foreign aid question A.I.D. officials about States, its armed forces and its rulers are this loan to Volpone what reasonable ex­ printed with equipment imported from Com­ planation will they give? Or do American HON. JOEL T. BROYHILL munist Germany. This has increased the love diplomats in Chile ignore that Volpone's of the Communist Party towards "Volpone" very wife forbids "Clarin" from entering OF VIRGINIA and it is thus that there is a permanent re­ her home fearful that her small daughters IN THE HOUSE OF REPRESENTATIVES lationship between the "Clarin" of Volpone will be corrupted by reading the paper their Tuesday, April 15, 1969 and "El Siglo" the Communist newspaper in father publishes? Or are there private plans their mentions of Vietnam, Cuba, racial con­ by A.ID. to impede the development o! Mr. BROYHn..L of Virginia. Mr. flicts in the United States, and the turns of Chile by promoting crime, immorality, Speaker, Mr. David John Gladstone, of internal American politics. What "El Slglo" shamelessness, and public corruption? Falls Church, Va., has called my atten­ says with dullness of the comrades. "Clarin" This would be the only explanation for tion to an article which appeared in repeats making fun and deprecating the role the inconceivable loan of $800,000 granted the March 28, 1969, edition of the Chilean of the United States in the preservation of for Volpone to bite even harder the gentle world democracy. hand which helps him with unbelievable newspaper, Politica Economia Cultura. Officials of A.I.D. in Chile have blushingly blindness. The article details the plans of the pub­ disclaimed responsiblllty for this deal which Chileans may disagree among themselves lisher of an anti-American, pro-Com­ will strengthen the anti-American repository on the American policies in Chile: for some munist newspaper to obtain an $800,000 CY! insults, explaining that the Agency grants the "Copper Agreements" may be ruinous, loan through the AID program in Chile, the credit so the Chilean Government which for others Ambassador Dungan's efforts to to improve the facilities of his news­ in turn operates it through its own channels. harden Agrarian Reform were fatal; but paper, now referred to in Chile as the According to these officials all A.I.D. does is for the immense majority of the country, to determine each year the total amount of for all the decent people, the affront to "ofiicial bulletin of criminals." the grants in aid, and to hand over the list Chile should the A.I.D. loan to Volpone be Mr. Gladstone asked: of consumer goods or capital goods available finalized, will be uneradicable. Would you please find out why my tax to be used under the "A.I.D. Letters of Credit" doll.a.rs are being used to support Com­ which are granted at very low rates of munist newspapers in Chile? interest. The explanration, nevertheless, does not WITHHOLDING OF CITY INCOME In an effort to comply with his re­ free the diplomatic agents of the U.S. from quest, I have today written to the Sec­ TAXES FROM THE COMPENSA­ blame. Without their approval no credit op­ TION OF FEDERAL EMPLOYEES retary of State to obtain full details on eration can be materialized. And this ls recog­ this proposed loan. I urge my colleagues, nized by the very Banco Central de Chile who, I am stl.re, would share Mr. Glad­ which advises the commercial banks (by HON. SEYMOUR HALPERN stone's and my concern over such mis­ Circular letter No. 1052 of 30 Aug. 68) that it reserves the right to withdraw the dollar OF NEW YORK use of taxpayers' funds, to join me in IN THE HOUSE OF REPRESENTATIVES urging the Department of State and the currency it has furnished "if, for any reason the [importation] cannot be completed." Tuesday, April 15, 1969 Agency for International Development, And it could not be otherwise because if to look into this loan, and, if the facts are A.I.D. disclaimed all responsibility, passing Mr. HALPERN. Mr. Speaker, on March as stated in the Politica Economia Cul­ it on to the officials of a government foreign 10 of this year, I introduced H.R. 8526 tura article, to deny it without delay. to that which is granting the credits, it which authorizes the withholding of in­ The article reads as follows: would be possible for "El Siglo" the property come taxes imposed by incorporated of the Communist Party of Chile to use AN .AMERICAN AFFRONT TO CHILE cities with a population of 60,000 or more A.I.D. credits to install a modern print shop The loans allocated to Chile by A.I.D. and to attack with American machinery ob­ from the compensation received by Fed­ (Agency for International Development) dur­ tained with credits granted to underdevel­ eral employees. ing this year are close to 30 million dollars ob­ oped countries "Yankee imperialism" and Under present law, Federal agencies tained from various sources which reach from "Yankee murderers." And this has been the are already authorized to withhold the purchase by Chile of farm surpluses usual language of Volpone and of "Clarin" State income taxes from the pay of Fed­ down to the fluctuations in the price of cop­ towards the United States on every occasion eral employees and to return such collec­ per. These funds are intended to be used by when its people have had to face a problem. tions to the States when State officials manufacturers, farmers and businessmen The politics and the national and inter­ working in Chile who need some of the al­ national goings on of the United States are have requested such withholding. most 300 items classified as soft goods subjects of lively discussion and worry in My bill would simply enable larger in­ for consumption, or of the almost 70 Chile. The occupation of Santo Domingo, the corporated cities also to enter into agree­ items included under "capital goods." conflict in Vietnam, the assassinations of ments with the Secretary of the Treas­ Item 84.34 corresponding to "Printing Ma­ John -and Robert Kennedy, the Bay of Pigs, ury which would provide for the with­ chinery" has just fallen under the rapacious or the meddling of Ambassador Dungan to holding of city income taxes owed by hands of Dario Sainte Marie, proprietor of speed up the Agrarian Reform of Chonchol "Clarin" the paper which has accumulated Federal employees by the Federal de­ {head of the Agrarian Reform program until partment or agency employing such in­ the greatest number of convictions in the late 1968) have divided the opinion of Chil­ Chilean courts of justice for violation of the eans into rabid pro and con groups. But it dividuals. Since this measure would laws, and which even makes the toughest of can be certain beforehand that the approval apply only to our larger cities, it will its readers blush with its headilnes, obsceni­ of the A.I.D. loan to Volpone to increase his not impose too heavy an administrative ties, insults and derision at the human and anti-American and anti-Chilean artillery will burden upon those Federal agencies spiritual values of the country. be rejected by the majority of leaders and which withhold such taxes. Hiding behind the apparent impersonality serious members of both the right and left The Treasury Department in the past of international accords Volpone (Dario areas, including those in power who are al­ Sainte Marie's nom de plume) ordered print­ ready alarmed by the jump in crim1nallty, has supported similar legislation which ing machinery from the United States, ap­ of corruption and immorality developed and would give larger cities the same assist­ plying for a credit close to $800,000. Using stimulated by Volpone and "Clarin" deserved­ ance the States now receive in collecting as his tool the terror developed by his paper, ly considered the "Official Bulletin of Crimi­ income taxes owed by Federal employees. in the best Chicago racketeer style, he ob­ nals' in Chile. There ls no more refined porno­ Cities, caught in a financial bind as tained the approval of his application by the graphic or criminal press than that produced they attempt to provide the growing re­ Banco del Estado (the Chilean State Savings by Volpone and his cohorts. quirements of their citizens for addi­ Bank.) This bank will endorse the bills drawn American diplomats in Chile cannot evade tional and improved schools, housing, on and accepted by Volpone so that in turn public judgment if they do not alert their the Banco Central de Chile will connect the Government against the indignation which health and welfare facilities and services, operation with A.I.D. the granting of this credit to "Volpone" and transportation systems, are finding Three years ago Dario Sainte Marie (Vol­ will arouse. Nor will they be able to justify it increasingly necessary to add income pone} tried to f'ool the Export and Import themselves before the new president and taxes to those which tney are already Bank with a similar deal. But the authori­ the new regime which will be governing levying to finance these needs. ties of that international credit establish­ Chile after 1970. How will American diplo­ Further, those cities which do impose ment, better acquainted than A.I.D. with mats face the new President of Chile when an income tax are experiencing some Volpone's moral stature and the conse­ he shows them the dirt of "Clarln" luxuri­ quences which such a credit would have on ously printed in American machinery de­ difiiculty in collecting the amounts owed the prestige of the Eximbank refused the livered to Volpone through the unbelieva­ by Federal employees. Just last month credit. Unworried Volpone turned then to his ble generosity of the American people? the Finance Administrator of New York Communist pals and obtained in Leipzig the And if the Senate and the House of Wash- City complained that about 20 percent April 15, 1969 EXTENSIONS OF REMARKS 9237 of the Federal employees working in the tion of the importance of seapower as it ceptable to many diverse elements, whose in­ relates to the nation's welfare. terest.e, at least in the short-term, often seem city had escaped paying the city income The President has himself defined sea­ quite opposite from ea.ch other. Of one thing tax. He indicated that "the root of the power as "the ability of a nation to project I am sure: we cannot succeed in such an problem was that under Federal law the into the oceans, in times of peace, its eco­ undertaking without the good will and co­ city could not require Washington to nomic strength; in times of emergency, its opers.tion of everyone concerned. withhold local income taxes from the defense mobility." It is on this concept of What we need most at this time is the weekly or biweekly earnings of its em­ seapower that future maritime policy will be support of the industry in finding solutions ployees." based. in an atmosphere of peace and reason. Speaking specifically to the merchant ma­ New labor contract negotiations have al­ Enactment of this measure will enable rine, the President has said that this Admin­ ready begun. The recent expression of in­ our cities to more efficiently and istration shall "adopt a policy that recog­ tent on the part of the maritime unions to promptly collect the income taxes to nizes the role of government in the well­ continue negotiations beyond June 15th which they are legally entitled. At the being of an industry so vital to our national without a. strike, if progress is being made, same time it will prove less painful to defense and stimulate private enterprise to is most encouraging. Another maritime strike Federal employees if such amounts are revitalize the industry." To which he has this year is unthinkable. withheld as they earn their income. added: "We shall adopt a policy that will Together, we can all move forward to im­ enable American-flag ships to carry much plement President Nixon's policy statements For these reasons I urge your support more American trade at competitive world on the American Merchant Marine. In the and early approval of this measure. prices . . .•" setting as our goal "a sharp Administration, we are doing so. We are hard increase in the transport of U.S. trade aboard at work to come up with implementing pro­ American-flag ships." grams. We are not "studying" the merchant In commenting on the unsubsidized sec­ marine. It has almost been studied to death. tors of our merchant fleet, the President has We are not questioning its vital role as an TIMELY SPEECH BY THE HONOR­ said that they "must be given attention, so instrument of national policy. We are not ABLE A. E. GIBSON, MARITIME they, too, can replace their deteriorating viewing our merchant ships solely from the ADMINISTRATOR, U.S. DEPART­ fleets in the immedia te future." defense aspect. On the contrary, we recog­ MENT OF COMMERCE The President has appointed a. team which nize their vast importance to our commerce is in full accord with these views. Secretary and the national economy, their service in Stans told the Senate Commerce Committee aiding our balance-of-payments deficit. HON. WILLIAM M. COLMER that it was his avowed purpose and intent Since the Administration clearly recog­ to implement the statements of the President nizes this importance, I am confident that OF MISSISSIPPI for revitalizing the American Merchant Ma­ the resulting program will reflect it. However, IN THE HOUSE OF REPRESENTATIVES rine. To my personal knowledge, and I am no program can be truly effective unless it Tuesday, April 15, 1969 sure that of many present here today, such can attract private capital-for it will require similar purpose is shared by Undersecretary large investments to match the shipbuild­ Mr. COLMER. Mr. Speaker, on last Rocco Siciliano, and soundly seconded I can ing subsidies, if a new fleet is to be built. In Friday, April 11, the Ingalls Shipbuild­ assure you by the new Maritime Administra­ like manner, much of this fleet is totally ing Corp., an affiliate of the Litton Indus­ tor. dependent on the companies' ability to at­ But in addition to the determination of tract commercial cargoes to produce the tries, launched the Mormacstar at its the new Administration, it is a propitious necessary revenues to provide continued op­ yards in Pascagoula, Miss. The Mormac­ time for achievement for the American Mer­ eration. Just as the private investor has al­ star is the third of the class designation chant Marine within the Congress. Certainly ternate uses for his capital, the exporter or Seabridge for the Moore-McCormack at no time since the passage of the 1936 importer has alternate means for transport­ Lines. The Mormacstar is the last word Merchant Marine Act has there been the de­ ing his cargo--neither is forced to invest in in cargo ships. gree of awareness that exists today in both or use American flag ships. There has to be I had the privilege of being present at the Senate and House of the vital impor­ a reasonable assurance of continued opera­ tance to the Nation of its shipping and ship­ tion if they are to make the commitments the launching of this majestic ship. I also building capacity. so essential for the future of the U.S. mer­ had the privilege of hearing the Honor­ With such evident awareness to the needs chant fleet, and no better way could be found able A. E. Gibson, the new Maritime Ad­ of the American Merchant Marine on the part to do this than the negotiation of a respon­ ministrator, deliver the principal address of both branches of the government, there sible maritime labor contract this year with­ on the occasion of this launching. Be­ can be no question that every effort will be out resort to a work stoppage. cause of the quality of Mr. Gibson's ma.de to provide a merchant fleet of which And now to the purpose for which we have speech and the further fact that it was this nation can be proud. gathered today, the launching of a magnifi­ in It is an opportunity to be grasped by the cent addition to the American Merchant Ma­ his first public appearance his new ca­ entire industry. It is a. time for closing ranks rine, the Moore-McCormack ship, S.S. Mor­ pacity as Maritime Administrator, I in order to revitalize this industry upon macstar. should like to include the speech in the which so many rely for a livelihood and a The building of a new ship is always a. re­ CONGRESSIONAL RECORD for the benefit of future. It is time to put aside the age-old assuring symbol of economic activity, prog­ all who are interested in the necessity of feuds and divisions that have torn this in­ ress, hope for the future. The Mormac­ maintaining an adequate merchant ma­ dustry asunder. star and her sister ship awaiting delivery, rine fleet. Mr. Gibson's speech was well In speakb:ig of the need for a revitalized the Mormacstar, are not just "replacement" merchant marine, the President has said: ships. They a.re bigger, better, faster, more received, and I am confident that he is "In turn, I would expect initiative and co­ productive ships in every way than those going to discharge the duties of his office operation from both industry and labor. whose place they will take in carrying on in an able and constructive manner. The Throughout the maritime industry, a new the commerce of our nation. speech follows: outlook must be encouraged to replace the The choice of the class designation "Sea­ I am honored to be present and to par­ current divisiveness and shortsightedness." bridge" for these ships is indeed appropriate. ticipate in the ceremonies attendant upon In similar fashion, Senator Magnuson only It complements the "land-bridge" concept the launching of the Mormacstar. Since a few months a.go commented on the same which is being developed, as increasing avail­ this is my first public appearance as Mari­ need for el.1minating this divisiveness. ability of container carrying ships makes it time Administrator, you might say that we There is probably no single union that possible to send a whole shipload of cargo are being launched together. could not or would not negotiate an equitable in unit trains across an intervening con­ And if I may stay with that metaphor for contract with the management of this in­ tinent. a moment, I only hope that I penetrate dustry at this time. It is only when the The modern "sea-bridge" is now taking its the bureaucratic fogs, ride out the political inter-union comparisons of benefits are made place as an extension of the land-bridge, to storms and carry the workload tonnage with and inequities, real or fancied, a.re discovered provide totally new concepts in wc.-rldwide a degree of the ability and grace that I am that negotiations break down and the jungle transportation systems. sure will characterize the career of the takes over. There must be some plausible And so, to Moore-McCormack Lines goes Mormacstar. means developed to ajudica.te these disputes my sincere congratulations for their initia­ It ls a propitious time for all to join to­ between unions, or any new Maritime pro­ tive, and my appreciation of this very con­ gether to achieve an American Merchant Ma­ gram. will be frustrated from the outset. crete evidence of the company's belief in the rine worthy of a great nation such as ours. The time, then, for uniting in a common future of the American Merchant Marine. I am sure there is no downgrading within endeavor in which the Congress, the Ad­ To the Ingalls Shipbuilding Division of this Administration or failure to recognize ministration, together with management and Litton Industries, I offer similar congratula­ the importance to the nation of its merchant labor can forge a new, a. vital, a profitable tions on their building of this magnificent shipping. If I thought there were, I wouldn't merchant ma.rtne to serve the nation is now. vessel. The capable and efficient management be here today. On the contrary, at the high­ I have no delusions as to the difHculty of of the shipyard, and the skilled hands of In­ est level of this Administration-from Pres­ the undertaking-to unite a divided industry, galls workers are evidenced in the Mormac­ ident Nixon on down-there is full recogni- to work out a meroha.nt marine policy ac- star. 9238 EXTENSIONS OF REMARKS April 15, 1969 To the gracious sponsor of the Mor mac­ conceptualizing the imputation techniques fl.ts. Not surprisingly, the other imputations starr, allow me to wish your ship well. May for fringe benefits, interest on life insurance, (excluding imputed rent) together account the Mormacstar have a long, productive, and imputed rent on owner-occupied homes. for only a small portion of the change in profitable life in the service of our Nation's The assistance of Larry Howard in convert­ the base ($9.4 billion) .4 commerce-and may I wish her "God speed." ing tapes for use on the Southern Methodist While the treatment of personal exemp­ University computer and the patience and tions and deductions and corporate income perseverance of the Southern Methodist Uni­ would be a large portion of any major base versity Computer Laboratory staff are also broadening, it must be remembered that only gratefully acknowledged. selected income items have been added to the BROADENING THE TAX BASE Finally, the authors appreciated the con­ base in this study. If we were to be truly tinuous support and encouragement of Dean comprehensive, for example, by integrating Charles 0. Galvin of the School of Law of gift and estate taxation with the personal tax, HON. JOHN P. SAYLOR Southern Methodist University and Project the relative importance of these three items OF PENNSYLVANIA Director Arthur Willis. would diininish (though it would still be a IN THE HOUSE OF REPRESENTATIVES We grant the usual absolution from blame large part of the base broadening). Tuesday, April 15, 1969 for errors to all the persons named above. Table 1 shows the dramatic effect that I. INTRODUCTION taxation of the much larger bases would Mr. SAYLOR. Mr. Speaker, I can think have had on 19.64 revenues: 5 the low 14.4- This paper is a preliminary report on the 13.9 percent fl.at tax rate on all income needed of no better day than this one to bring results of a study on substantive tax reform to the attention of our colleagues a study to raise the same revenues as was obtained in conducted at Southern Methodist University 1964, and the effect on average tax rates in a dealing with the broadening of the Fed­ during 1967-68 under the sponsorship of the progressive rate schedule yielding actual 1964 eral income tax base. American Bar Foundation and the Tax Sec­ revenue.o "Tax reform" is a subject mightily in tion of the American Bar Association. the air this day as it has been most of The objectives of substantive tax reform TABLE !.- SUMMARY OF EFFECTS OF BASE BROADENING this year. There is renewed hope on the broadly stated are as follows: 1 ON THE TAX BASE, TAX REVENUES, AND TAX RATES 1. Broaden the t ax base UNDER ALTER NATIVE BTB CO NCEPTS part of the American taxpayer that 2. Reduce income tax rates "this" is finally the year when something 3. Simplify the technical provisions will be done to right the wrongs, elimi­ 4. Eliminate inequity in tax treatment of Item nate the inequities, close the Loopholes, individuals with siinilar income and reform the whole tax system. 5. Remove taxation as a major factor in Billions of Whether or not all the changes that need business, investment, and family estate dollars planning to be made can be made this year is a 1. Old tax base ______230. 4 230. 4 We limit our discussion here to the simula­ 2. New tax base. ------·- 481.6 501. 3 subject of some conjecture. But I do not tion of a substantial broadening of the Fed­ 3. Change in tax base ______251. 2 1270. 9 think there is any doubt in any Member's eral income tax base, applying existing ( 1965) (a) State and local bonds interest_ ___ 1.1 1.1 mind that we must strive extra hard to (b) Interest on life insurance ______1. 7 1.7 tax rates to t he new t ax bases, and calculat­ (c) Employer's contributions to and initiate substantial reforms this year. ing t he implied proportional tax rate and interest on profit sharing and The taxpayer will accept no less". progressive structure needed, with the new pe nsion plans _. ______7. 0 7. 0 (dXl) Partnersh ip treatment of cor- The most unfortunate aspect of the bases, to raise 1964 individual and corporate porate profits ______44. 1 2 present tax system is that it simply does income tax revenue. The sample of tax re­ (dX2) Dividends plus cap ital gains not appear to be systematic. It is a "sys­ turns used is the 1964 Brookings Tax File, (realized and unreal ized) on and the data for making the income imputa­ corporate stock . ______.__ _ 58. 6 tem" of loopholes, exemptions, dodges, tions were obtained from a number of differ­ (e) Deductions and exemptions ______179. 5 179. 5 (f) Realized capital gains as ordinary and exclusions. We need to start at the ent sources, but heavy use was made of the income ______11.2 ------base and work up if there is to be a real 1963 Federal Reserve Boar d Study of the Fi­ (g) OAL------3. 6 3.6 reform. nancial Characteristics of Consumers. (h) SL ______.______. 2 . 2 Two alternative broadened tax bases were (i) Imputed renL---·------28. 7 In this regard, I am pleased to bring to (j) Unemployment compensation .__ _ 2. 2 2. 2 BTB , the attention of my colleagues a study used; the first, which we call 1 essen­ which I have found to be stimulating to tially follows the plan set out in the project 4. 1964<~1x ~~~eR~~5 ·c======69J 69:~ proposal, and the second, BTB., is an exten­ 5. Tax revenue from BTB at 1965 tax rates __ 113. 3 126. 4 my own studies of potential tax reform. sion of the originally proposed base to in­ The American Bar Foundation has corporate a substantial port ion of unrealized Percent kindly granted me permission to include capital gains and imputed rent on owner­ 6. Flat tax rate needed to raise 1965 actual this study in my remarks. The paper by occupied homes. revenue _____ ·------14. 4 13. 9 J. Section II summarizes the major findings 7. Progressi ve rate schedule (0 to 40 percent) Attiat F. and David Ott of the Depart­ requ ired to raise 1965 revenue, selected ment of Economics of Southern Metho­ Of the study. Sections III and IV discuss levels of taxable income (average tax BTB BTB2' dist University is entitled "Simulation of 1 and respectively, in somewhat rate) : a more detail-the effects on the tax base and (a) $1 ,000______. 02 . 02 Revenue and Tax Structure Implications revenues are considered by Adjusted Gross (b) $3,000______. 06 . 04 of Broadening the Federal Income Tax (c) $5,000______. 10 . 08 Income (AGI) class~ . and the significance (d) $I:J,OOO ______.20 . 17 Base." I have also learned from the for the base and tax revenues of each com­ (e) $50,000 ______. 36 .35 foundation that it will soon publish a ponent of the BTB's is also considered. (f) $100,000 ______. 38 . 38 more comprehensive book on the subject It should be emphasized that the changes of tax reform. That book, edited by Ar­ in the tax laws explored in this study do nort, Note : Details may not add to totals because of round ing. thur B. Willis, will be entitled "Studies by their inclusion or by the exclusion of 1The change in the tax base for imputations is $283,200,- in Substantive Tax Reform" and should other possible changes, imply any advocacy 000,000. Bu t the addition to the base is only $270,900,000,000 on the part of the in~estigators. Other pos­ since $12,800,000,000 were excluded from old base in making be available in the next few weeks. sible changes should also be investigated the (i) imputation. I ask that Members examine the paper 2 Includes personal and corporate income tax revenues. before any m a jor revision of the law is under­ Corporate income tax revenue is on a cash basis, from Joseph A. below with the view to sharpening their t g,ken. Pech man, Federal Tax Policy (Washington, D.C.: Brookings own approaches to the tax reform pro­ Institution, 1966), p. 276. posals before the Congress. There are II. SUMMARY OF MAJOR FINDINGS a For BTB1 the revenue raised would actually be $71,900,- The major findings of the study are sum­ 000,000; the schedule for BTB2 would raise $71 ,100,000,000. many approaches, but whichever one we marized in Table 1. Broadening the base The computer program used to calculate these schedules choose, we must expand the tax base. yielded these totals as the closest approximation to the $69,700,- under BTB1 would add $252 billion to the 000,000 of revenue needed. A description of the tax function The study follows: tax base; under BTB2 some $271 billion would used is appended to Studies in Substantive Tax Reform (see SIMULATION OF REVENUE AND TAX STRUCTURE be added.3 In both instances the bulk of the text note I supra). gain in the tax base comes from the elimina­ IMPLICATIONS OF BROADENING THE FEDERAL m. A CLOSER LOOK AT BTB tion Of all personal exemptions and deduc­ 1 INCOME TAX BASE BTB tions ($179.5 billion). However, considerable We now consider 1 in more detail. Each (By Attiat F . and David J. Ott, Department addition to the base will be presented sep­ of Economics, Southern Methodist Univer­ amounts are added to the base by the in­ come imputat ions, particularly in the cases arately to show, by AGI class: 1 (1 ) the sity) amount imputed; (2) the change in tax ACKNOWLEDGMENTS of partnership treatment of corporate profits ) , revenue (1965 rates) from making the im­ (in BTB2 the dividends plus total capital The authors acknowledge the efforts of J. gains on corporate stock treatment of cor­ putation alone; and (3) the change in tax Scott Turner and Gary A. Robbins in orga ­ porate income (in BTB2 ), treating capital revenues (1965 rates) from "dropping" the nizing and processing the basic dat a for the gains as ordin ary income, and fringe bene- imputation alone from BTB]" Steps (2) and study as well as doing the necessary pro­ gramming. George Williams and Robert W. ( 3) bracket the "first-order" ( assumm~ no Tinney contributed in collecting data and F ootnotes at end of article. changes in before-tax incomes) revenue ef- April 15, 1969 EXTENSIONS OF REMARKS 9239 fects of each imputation. Table 2 shows the or 60 percent, of the $1,116 million is esti­ with AGI class. Thus the revenue change from taxing profits to stockholders shown effect of the imputation of each item in BTB mated to have been received by tax units 1 here is probably an underestimate. on tax revenues. with $50,000 or more of AGI. b,.R1 is the "add-on" revenue; b,.R2 denotes the "back­ Table 2 shows total profits imputed to Interest on State and local bonds off" revenue change. The marginal tax rate stockholders above the amount paid out in As Table 2 shows, $1,116 mlllion of state (the change in tax revenue from the "add­ dividends as $44,134 12 concentrated largely and local bond interest was imputed. As ex­ on" (t:,.R1) divided by the amount imputed in the AGI classes $25,000 and above. This pected, most of the addition to the tax base is 54 percent. This is slightly lower than most addition to the base results in substantial falls in the upper AGI classes; $671 million, previous estimates.a revenue gains measured either "from the bottom" ($20,265 million) or "from the top" TABLE 2.-SUMMARY OF REVENUE EFFECTS OF IMPUTING ITEMS TO TAX BASE-BTB1 ($21,830 million). The average marginal rate is clearly high, that is, from 46 to 49 percent. [Amounts in millions of dollars) Exemptions, deductions and sick pay, and realized capital gains AGI class Three elements in the base broadening did $3,000 to $10,000 to $25,000 to $100,000 and not involve any income imputations but con­ Item $0 to $3,000 $10, 000 $25, 000 $100, 000 over Total sisted of eliminating certain "preferences" in treatment of income, namely, personal State-local bond interest: exemptions and deductions, the sick pay ex­ Amount imputed ______------__ _ 0 127 161 458 369 1, 116 AR1 . ___ - _____ -----______--- ______clusions, and realized capital gains. The ef­ 0 25 45 221 237 527 fects these changes have on closing the gap AR 2.. ------0 31 55 262 256 606 1nterest on saving element in life insurance: between AGI and taxable income are sum­ Amount imputed ______------__ _ 127 773 505 255 28 1, 687 marized in Table 2. AR1. ______------___ ------__ -- ______19 138 113 105 18 393 Treating realized capital gains as ordinary AR2. __ _- ______------__ ------____ -- _ 23 163 140 131 19 476 Em player's contributions and interest on profit- income adds $11,184 million to the tax base, sharing and pension plans: 68 percent of which falls in the AGI classes Amount imputed .. ______------______209 2,095 3, 536 711 93 6,984 $25,000 and above. This change would yield AR1. ___ - ____ ------____ ------__ ------_ 32 388 844 308 58 1, 692 $4,213 million to $4,765 million in additional AR2. ___ - __ ------__ ------_-- 41 455 1, 040 375 64 2,044 OASI benefits received by filing units: revenue. Amount imputed .. ______------__ 2,497 1,024 217 57 5 3, 802 Elimination of all personal exemptions AR1. ___ - ______-_-- ______------. 362 186 57 26 3 635 would add $112,594 million to the tax base, AR2. - - -- _------__ ------460 255 89 33 3 840 concentrated in the $10,000-$15,000 AGI Uenmployment compensation: Amount imputed ______------720 l, 399 117 0 2,240 classes (84 percent falls in this range). The AR1. ______------______------__ ---- 112 250 25 0 388 revenue gain at 1965 rates would, of course, AR2 . ______------______128 289 30 0 450 be substantial, ranging from $20,788 million Partnership treatment of corporate income: to $22,712 million. Amount imputed ______------2, 315 8,220 11, 271 14, 002 8, 326 44, 134 AR1. ______-- _____ - ____ ------_-- -- _-- - 416 2, 080 4, 114 7, 896 5, 760 20, 265 Elimination of personal deductions also AR2. ___ - -- -- __ --- - ____ ------_-- __ -- 497 2,429 4,682 8,404 5,817 21, 830 adds substantially to the tax base-$66,897 Exemptions, deductions, and sick pay: million. Over half of this is concentrated in Amount imputed ______------____ _ 32, 154 103, 306 36, 171 6, 837 1, 585 180, 053 the $5,000-$15,000 AGI classes (57 percent), AR1. ______------4, 818 18, 495 8, 179 2,880 1, 052 35, 433 AR2. ______-- ______------_----- 5, 321 20, 259 9, 425 3,464 1, 102 39, 579 and the revenue gain would be $14,542 mil­ Treatment of realized capital gains at ordinary lion to $16,741 million. The sick pay exclu­ income: sion adds only $562 million to the base and Amount imputed ______------_ 545 1, 596 1, 889 2, 863 4,292 11, 184 some $120 million to $143 million of revenue. AR1. - -- _------­ 100 319 552 1, 241 2,033 4, 213 122 420 AR2. ------725 1,458 2,039 4, 765 IV. A COMPARISON OF THE RESULTS OF BTB1 AND BTB2 Interest on savings element of life insurance mate, is not as large relative to the added Since the second version of the broad tax base (BTB ) differs from BTB only with re­ The result of imputing interest on the sav­ income as with the previous items; the aver­ 2 1 age marginal tax rate is about 17-22 percent. gard to two items-imputed rent and the ings component of life insurance ls also treatment of corporate income--we need shown in Table 2. This form of income is ap­ Imputing survivors' benefits to filing sur­ vivors' beneficiaries has contributed very only discuss here the impact the addition of parently heavily concentrated in the $5,000- these two items has on the tax base and $15,000 AGI class; our estimate shows some little to the base and revenues. Only $198 million of income was imputed and $30 tax revenue changes discussed in the previ­ 66 percent of the $1,687 million is received ous section. We shall therefore discuss, in by tax units in this range. The tax yield million to $38 million of revenue gained. Our calculations indicated only about 107,000 of turn, the results of (1) adding imputed rent varies from a low of $393 mlllion to a high on owner-occupied dwellings; (2) substitu­ of $476 million-again there is a substantial the 470,000 families receiving survivors' bene­ fits in 1964 would be represented in the tax tion of the taxation of dividends plus total difference in the revenue gain depending on (realized and unrealized) capital gains on where the income is "put on." file, and thus about $800 million of survivors' benefits accrued to non-filing units. corporate stock for the partnership treat­ Employer's contributions to private pension ment of corporate income; and (3) the dif­ plans and interest on pension plans Unemployment compensation ferences in the distribution of the tax base • Table 2 shows the effect of imputing to the The imputation of unemployment com­ by AGI classes in BTB1 and BTB2 tax file a substantial portion of "fringe bene­ pensation benefits shown in Table 2 was Imputed rent on owner-occupied homes fits"-employer contributions to private pen­ $2,240 million concentrated in the AGI Adding net rent on owner-occupied homes sion plans-and the interest on the vested in­ classes below $10,000 (95 percent). The rev­ 9 to BTB2 increased the base $28,739 million, terest of employees in such plans. enue gain at 1965 rates ranged from $388 which was concentrated in the $3,000-$20,- This income is concentrated in middle­ million to $450 million. 000 AGI classes. The addition to tax reve­ income classes; 74 percent ($5,199 million) Partnership treatment of corporate profits nues is estimated as between $4,076 million fell in the $5,000-$20,000 AGI classes. Again, and $6,062 million.13 the high and low revenue gain estimates dif­ The partnership treatment of corporate profits was approximated under the assump­ Taxing corporate income by taxing divi· fered considerably, from $1,692 million to tion that every dividend recipient received $2,044 million. dends paid and total capital gains on cor­ a constant proportion of total corporate prof­ porate stock at ordinary rates Social security--old age and survivors its in proportion to his holdings. That is, a benefits One alternative to taxing corporations as dollar in dividends received represents a con­ partnerships was suggested by Bittker,u Separate imputations were made for bene­ stant multiple of dollars 1n profits before taxes at the corporate levei.1° This was as­ namely, taxing the dividends paid plus total fits accruing to the aged and to survivors capital gains (or losses) which accrue to under OASI. It is estimated that $3,604 mil­ sumed to be true regardless of AGI class. lion of OASI benefits received by aged units This constant multiple was assumed to be stockholders. We have attempted here to was received by the aged units filing in 1964- equal to the ratio of gross corporate profits make a rough estimate of the effects of such the rest was received by non-filing aged units. to dividends (net of intercorporate divi­ a procedure. As one would expect, a very large propor­ dends) , which was approximately 4.0 11 in In order to avoid violating our assump­ tion of this income was received by units 1964. Due to underreporting of dividends in tions a.bout not allowing for "second-order" in the lower-income classes. Those with 1964 this number was blown up to 4.5. Thus effects, dividends (including the amounts AGI's of less than $5,000 received $2,787 mil­ the imputation was made by adding the divi­ excluded) are "grossed up" by 92.3 percent, lion of the total, over three-fourths of the dend exclusion and 3.5 times dividends to on the assumption that corporate taxes pre­ total received by filing units. As a result, the taxable income. Because of underreporting in viously paid on dividends are now passed on tax yield, taking either the high or low esti- the tax file some bias may exist. Another bias to stockholders. In short, we assume the may exist because profits/dividend ratios are ratio of retained earnings to profits is un­ Footnotes at end of article. likely to vary for dividend recipients directly changed by the new treatment. 9240 EXTENSIONS OF REMARKS April 15, 1969 The results are shown in Table 3. Where­ ls large revenue gains of $34,418 million to (1) the tax begins with the first unit of in­ as the partnership method added $44,134 $35,649 million, an increase of $14,153 mil­ come; (2) the rate of increase in the average million to the base, this treatment adds con­ lion to $13,819 million on the partnership tax is constant; and (3) the maximum mar­ siderably more, $58,643 milUon. The result approach. ginal tax rate is 40 percent. "To save space, the summary tables for TABLE 3.-SUMMARY OF REVENUE EFFECTS OF ITEMS ADDED TO TAX BASE-BTB2 this and the following section use 5 AGI [Amounts in millions of dollars) classes; a more detailed breakdown by 13 and 29 AGI classes w111 be given in Studies in Substantive Tax Reform (see note 1 AGI class supra). $3 000 to $10,000 to $25,000 to $100, and s Benjamin A. Okner, Income Distribution Item $Oto $3,000 t10, 000 $25,000 $100,000 over Total and the Federal Income Tax (Ann Arbor: Institute Of Public Ad.ministration, Univer­ Imputed rent on owner-occupied home: sity of Michigan, 1966), p. 86, estimated a Amount imputed ______------2,667 14, 711 9, 133 2,011 214 28, 739 59 percent average marginal rate; Ott and .o.R, ___ ------391 2,639 2, 047 810 136 6,024 Meltzer and Robinson came up With simllar .O.R2------413 1, 739 1, 238 595 90 4,076 Taxation of dividends plus gains from changes in estimates. See D. Ott and A. Meltzer, Federal Tax Treatment of State and Local Securities lm...valueAmount of corporate imput______stock: 454 1, 772 5, 310 16, 723 35, 223 58,643 (Washington, D.C.: Brookings Institution, .O.Ri------112 483 1, 342 8,914 23, 539 34, 418 1963), p. 60; and R. I. Robinson, Postwar 98 .O.R2------496 1, 584 9, 790 23,669 35,649 Market for State and Local Government Securities (Princeton, N.J.: National Bureau Distributicm of BTB1 and BTB2 by AGI classes TABLE 4.-DISTRIBUTION OF BTB1 AND BTB2 BY of Economic Research, 1960), pp. 191-92. 9 Total "fringe benefits" in 1964 were esti­ Although BTB 1s some $20 blllion larger AGI CLASSES-Continued 2 mated at $16.6 billion by the U.S. Department than BTB , it is not larger in every AGI 1 of Commerce, Survey of Current Business class-BTB is greater in the $1,500-$5,000 1 Difference: (July 1967), p. 16. The amounts excluded AGI classes and the $11,000-$50,000 AGI BTB2 less here (because data were not available on the classes. BTB is larger for all other AGI classes AGI class BTB2 BTB1 2 employer's share of contributions or on the and particularly so for the $50,000-$500,000 $6,000 to $7,000 ______distribution of this amount by AGI class) are classes and the "over $1,000,000" class. 36, 707. 4 37,036.2 328. 8 largely contributions to health and accident BTB $7,000 to $8,000 ______38, 982. 2 39,438. 2 456. 0 This reflects the fact that 2 does not $8,000 to $9,000 ______insurance, life insurance, and fringe benefits differ from BTB1 simply by the addition of 35,252. 4 35,387.4 134. 9 $9,000 to $10,000 ______31, 426. 6 31, 459. 4 32.8 of government (federal and state-local) income items. If this were the case, then $10,000 to $11,000 ______25, 701. 2 25,934. 9 233. 7 employees. BTB BTB1 $11,000 to $12,000 ______2 would be larger than (or at least 20,634. 0 20, 560.6 -73.3 io Alternative treatments of dividends and every BTB $12,000 to $13,000 ______17, 191. 1 16, 787. 2 -403.9 no smaller) for AGI class. 2 reflects $13,000 to $14,000 ______corporate profits are discussed by Gary A. the addition to BTB1 Of imputed rent and a 13,282. 0 12,947.3 -334.7 $14,000 to $15,000 ______10, 407. 6 9, 921. 6 -486.1 Robbins in "Alternative Tax Treatments of change in the treatment of corporate income. $15,000 to $20,000 ______30, 850. 7 29, 257. 2 -1, 593. 8 $20,000 to $25,000 ______Corporate Income and Capital Gains," The latter change causes the tax base to rise 14, 996. 9 13, 558. 4 -1, 438. 5 Studies in Substantive Tax Reform (see note in some AGI classes and fall in others. Total $25,000 to $50,000 ______3-3,296. 7 29, 628. 9 -3,667.8 $50,000 to $100,000 _____ 18, 574. 2 23, 283. 0 4, 708. 8 1 supra). capital gains in BTB , which account for a 2 $100,000 to $150,000 ____ 5, 938. 8 12, 948. 4 7, 009. 6 11 Economic Report of the President (Feb­ large portion of corporate income in this $150,000 to $200,000 ____ 2, 952. 6 7, 379. 6 4, 427. 0 ruary 1968) , p. 290. base, were distributed by AGI class on the $200,000 to $500,000 ____ 5, 923. l 14, 632. 0 8, 708. 9 12 Dividends received in 1964 were $12,477 $500,000 to $1,000,000 ___ 2,277. 5 2, 345. 8 68.3 basis of the Federal Reserve Sample Survey mlllion (from Statistics of Income [1964], of corporate stock ownership. On the other $1,000,000 and over__ ___ 3, 411. 3 5, 928. 6 2, 517. 3 Total______p. 33). Thus the amount of total corporate hand, the distribution of corporate income 481, 593. 9 501, 320. 7 19, 726. 8 profits implied by this computation is about by AGI class under the partnership treatment $56.6 billion. This is less than actual total BTB1 in was based on the distribution of FOOTNOTES corporate profits in 1964 of $66.8 billion (Eco­ dividends by AGI class (via the "gross-up" 1 Arthur B. W1111s, "Comments and Obser­ nomic Report of the President [February technique used). It is not surprising that 1968], p. 290) because of under-reporting and more of corporate income goes to the higher vations by the Project Director," in Studies in Substantive Tax Reform, ed. Arthur B. intercorporate and foreign dividends. AGI brackets under BTB , since persons in 2 Willis (Chicago: American Bar Foundation; 13 A detailed explanation of the method­ higher brackets are likely to prefer capital ology Will be presented in Studies in Sub­ gains over dividend income and thus hold Dallas, Texas: Southern Methodist Univer­ sity [forthcoming]). stantive Tax Reform (see note 1 supra). Note stocks With low dividend/price ratios. Thus 2 that in this one case the "back-off" revenue BTB The complete results of the project as in the highest brackets, 2 considerably gain is less than the "add-to" gain. This is exceeds BTB1. well as the detailed methodology used Will be presented in early 1969 in Studies in Sub­ because net rent was imputed, and where The reason for the excess Of BTB1 over stantive Tax Reform (ibid.). The book Will returns had mortgage interest or real estate BTB2 in the $1,500-$5,000 and $11,000-$50,000 tax deductions, this had to be added to the AGI classes is a reflection also of the sWitch contain, besides an expanded version of this paper, comments and a history of the project imputation to avoid double counting. When in the treatment of corporate income. In imputed rent was deleted from BTB , only imputing total capital gains of corporate by Arthur B. Willis and Charles 0. Galvin. 2 Other papers included discuss the legal as­ the net rent was deleted, not the double­ stock in BTB , realized capital gains were de­ 2 pects of tax-base broadening (by Robert A. counted deductions. See Robert W. Tinney, leted. In these classes the amount imputed "Taxing Imputed Rents on OWner-occupied was less than the amount deleted, in part Bernstein) and special economic studies (by Gary A. Robbins, J. Scott Turner, and Robert Housing," Studies in Substantive Tax Reform because realized capital gains on all assets W. Tinney). (see note 1 supra) for further details and (rather than just corporate stock) were 3 The major differences in BTB and BTB alternative estima.tes. deleted. 1 2 11 B. Bittker, "A 'Comprehensive Tax Base' are indicated in Table 1. BTB1 excludes im­ It is probable that, had an attempt been puted rent and taxes corporate profits as as a Goal of Income Tax Reform," Harvard made to distribute corporate profits by own­ Law Review, Vol. 80 (March 1967), p. 978. See partnership income, while BTB2 includes im­ ership of shares rather than dividends in puted rent and taxes corporate income by also his further discussion of the ideal of BTB1, the difference in the distribution of taxing dividends (grossed up to "pass "Comprehensive Income Taxation: A Re­ the two tax bases by AGI classes would not through" the corporate tax, which is elim­ sponse," ibid., Vol. 81 (March 1968), p. 25 have been very significant. inated) and all capital gains (realized and n., pp. 1041-42. unrealized) on corporate stock at ordinary TABLE 4.-DISTRIBUTION OF BTB1 AND BTB2 BY rates. AGI CLASSES 4 Recall, however, that no account here is taken of the non-filers. This would increase AMERICAN DEFENDERS OF BATAAN Diff'.!rence: the increase in the base from adding OASI AND CORREGIDOR TO HOLD NA­ BTB2 less and unemployment insurance and also add TIONAL CONVENTION AGI class BTB1 BTB2 BTB1 virtually all of public assistance (most of the recipients being non-filers) to the base. 0 to $600 ______6, 083. 4 6, 120. 5 37. 1 "Corporate plus personal income taxes. HON. DANTE B. FASCELL ~00 to $1,000 ______4, 408. 2 4, 497. 2 89. 0 The increase in personal taxes is after de­ $1,000 to $1,500 ______7, 920. 9 8, 039. l 118. 0 OF FLORIDA $1,500 to $2,000 ______8, 265. 2 8, 120. 5 -144. 7 duction of the lost revenue from discon­ $2,000 to $2,500 ______9, 088. 8 8, 913. 3 -175. 5 tinuance of the corporate tax implied by IN THE HOUSE OF REPRESENTATIVES $2,500 to $3,000 ______10, 184. 7 10, 164. 3 -20.4 both BTB's. Tuesday, April 15, 1969 $3,000 to $3,500 ______11, 291.7 11,063. 7 -228. 0 8 $3,500 to $4,000 ______The progressive rate schedule used is ex­ 13, 146. 6 12, 866. 2 -280.4 Studies in Substantive Tax Re­ $4,000 to $4,500 ______14, 237. 2 13, 949. 9 -287. 3 plained in Mr. FASCELL. Mr. Speaker, during $4,500 to $5,000 ______14,638. 6 14, 339. 9 -298. 7 form (see note 1 supra). Essentially it is a April 30 to May 4, the American De­ $5,000 to $6,000 ______34, 523. 0 34, 812. 2 289.2 formula meeting the folloWing constraints: f enders of Bataan and Corregidor, Inc., April 15, 1969 EXTENSIONS OF REMARKS 9241 will convene in Miami Beach, Fla. This led President Roosevelt to initiate the consistent, unplanned and wavering policies is commission on fair employment prac­ of the United States have resulted in Rus­ unique organization composed of sur­ sian diplomatic victories and encroachments viving members of the defense of these tices in 1941 which became the prede­ in the Middle East and North Vietnam. The Pacific islands and the infamous Death cessor of State and Federal antidiscrimi­ United States has done well twice: (1) in March during World War II. nation laws. He also served as a member getting the missiles out of Cuba and (2) in When this organization was formed, of Mayor LaGuardia's commission on the annual Captive Nations' Week proclama­ members recognized that it would be un­ race in 1935 and later as honorary Chair­ tion. Unfortunaitely the U.S. president's proc­ usual among veterans organizations in man of the White House Conference on lamwtion remains only that instead of a that its ranks would never increase-­ Civil Rights. Last year he retired as the program of action. Khrushchev's bit­ AFL-CIO's only Negro vice president. ter railing against the resolution during only diminish. Yet it was necessary that Richard Nixon's visit in 1959, and the harsh they band together, for they had an ex­ It is therefore an honor for me to join comments in the Russian press and in broad­ perience in life that this country must so many other Americans in paying casts indicates that a new nerve was struck. never forget. We are grateful for this tribute to a man who has done so much Professor Dobriansky exposes the Bolshevik reminder of a part of the history of our toward realizing the goal of equal op­ revolution as the incubator of Soviet Russian country that required American fighting portunity for all Americans. imperio-colonialism, the fraud of Lenin's men to summon up amazing courage and promise of "land, bread and peace" and the sham of such Moscow slogans as "peaceful endurance. coexistence". Communism, he explains, is For the survivors, their very existence used as a technique by the Russian leaders. serves as testimony to bravery and de­ THE VULNERABLE RUSSIANS They are guilty of the same imperialism and votion to their country's ideals far be­ colonialism, the empire-building that was yond the capacity of most people to even HON. EDWARD J. DERWINSKI started by Ivan the Terrible and characterized imagine. I congratulate all of the mem­ Russia after the 16th century. bers of this outstanding organization for OF ILLINOIS Methods have included divide and conquer, what they have accomplished. IN THE HOUSE OF REPRESENTATIVES networks of conspiracy, genocide, Russifica­ Tuesday, April 15, 1969 tion, two steps forward and one back, broken One survivor of the Bataan Death treaties, messiahship, ideological smoke­ March is Louis Cusano, who as a private Mr. DERWINSKI. Mr. Speaker, in ref­ screens, political partition, the police state, first class survived 40 months in Japa­ erence to our relations with the Soviet distortions of history, anti-Semitic pogroms nese prison camps. On his return, he told Union, the present period has been de­ and Potemkin Village tactics. Russia's policy a grisly story of the inhuman torture fined as "an era of negotiation rather is one of internal totalitarian rule and ex­ and slaughter of American military men than confrontation." Whether this def­ ternal imperialism and colonialism. during this terrible period. Now, Mr. Cu­ There always have been Russian freedom inition is accurate and valid or ill­ :fighters and resistance movements-Poland's sano is a resident of Miami, Fla., and founded and misleading is a subject for Pulaski, the Ukraine's Shevchenko, White is still serving his country as an employee much debate. Psychopolitically, we are Ruthenlan and Byelorusslians, North Cauca­ of the U.S. Post Office. being confronted by the Russians on sians and the Muslims of the U.S.S.R. and of I take this opportunity to offer con­ every front, even within our own domes­ Central Asia. The author stresses the need gratulations to Mr. Cusano and other tic environment. Nonetheless, if we be­ to study the history of Tsarist empire-build­ members of the American Defenders of lieve this is an era of negotiation, then ing in order to understand Soviet Russia. He Bataan and Corregidor. May they con­ reveals their tactics in promising self-deter­ obviously, even in this case, we should mination and the right to secede from the tinue to gather for these meetings for approach it with knowledgeability, back­ U.S.S.R. while really dominating and exploit­ many, many years. They deserve the high ground, and insight. ing. In 1920, eight countries came under honor and tribute of a grateful nation. The book, "The Vulnerable Russians," Communist domination; from 1922 to 1946 furnishes these necessary requisites for eight more lost their freedom; since then negotiating with the Russians. The nu­ eleven more have become part of the Com­ merous favorable reviews given this work munist bloc. A. PHILIP RANDOLPH CELEBRATES point this out in a variety of ways. For The author tells how Russia's propaganda HIS 80TH BIRTHDAY TODAY deceives Americans, who are largely unaware example, as the review below shows: of how other countries have been subverted This is a much-needed book that should and brought under Communist domination. HON. HUGH L. CAREY serve to startle Americans out of their cold Appeasement-minded groups and individuals war complacency. in the United States do Moscow's propaganda OF NEW YORK work at no cost to Russia. Americans fall for IN THE HOUSE OF REPRESENTATIVES Authored by Dr. Lev E. Dobriansky of campaigns supporting "peace" and "coexist­ Georgetown University, the book enables Tuesday, April 15, 1969 ence," for nuclear test bans and for more us to understand why diplomacy and trade. All will be discarded like so many Mr. CAREY. Mr. Speaker, on the occa­ negotiations are themselves mere instru­ treaties whenever it suits the Party leaders. sion of the 80th birthday of the noted A. ments utilized by the highly vulnerable Dobriansky makes these main points: (1) Philip Randolph it is my privilege to offer Russians to advance their cold war ob­ Whether Americans like it or not, they are this distinguished gentleman my best involved in a continuing cold war, (2) the jectives. Copies can be obtained at the final outcome must be either victory or de­ wishes for a future which yet promises Georgetown University Bookstore, White feat and (3) political defeat of the enemy is further service in a life devoted to the Gravenor Building, Georgetown Univer­ possible and necessary to preclude nuclear advancement of the Negro people and to sity, Washington, D.C. The following re­ holocaust. Some Americans talk of the cold the cause of justice for all men. view, written by Geraldine Finch in the war "moderating," o! a "detente" between Mr. Randolph retired last year as pres­ October issue of Free China Review, ex­ Moscow and Washington, of "building ident of the Brotherhood of Sleeping Car plains in part the significance of the bridges" to Russia, of the infiuence of more Porters of which he was the chief founder trade and of moral and political compro­ work: mises. Meanwhile, Moscow goes right on sup­ in 1925. From that time until the present THE VULNERABLE RUSSIANS porting the U.S. enemy in Vietnam, develops Mr. Randolph has devoted himself un­ (By Lev E. Dobriansky, reviewed by space missiles and carries out subversion in sparingly toward uniting all segments of Geraldine Fitch) the Middle East and Latin America. the working class. He maintained: In the dedication of his book, the author Hitler blundered in World War II by not My philosophy was the result of our con­ bares its essence: "To all freedom :fighters, realizing what the readiness of the Ukrain­ cept of e:lfective liberation of the Negro particularly the unsung heroes of the Ukrain­ ians and Byelorussians (and other people of through the liberation of the working people. ian Insurgent Army which in World War II captive nations) to help Germany against We never separated the liberation of the ... fought both the Nazis and the Russian Russia could have meant. Instead, he at­ white working man from the liberation of imperio-coloniallsts. Their supreme sacrifice tempted to foist his system on them and the black working man-rather, we believe . . . renders historically inseparable the far­ they therefore fought Germans as well as the unity of these forces would bring about fiung events of our American Revolution, Russians. U.S. blunders have included ap­ the power to really achieve basic social Ukraine's independence and the freedom of peasement at Yalta, failure to aid the Hun­ change. every non-Russian nation, as well as the Rus­ garians in 1956 and the desertion of Chiang sian people, now held captive in the Red Kai-shek when Russia was giving vast stores And, indeed, A. Philip Randolph has Em.pire ..." of Japanese arms to the Chinese Communists. been instrumental in the evolution of In the light of Russia's steady determina­ Dobriansky says that Russia's economic positive social change. He organized the tion to reach world domination through the status and rank as the world's second indus­ march on Washington movement which exploitation of captive nations, the often in- trial power are largely due to colonial ex- CXV--582-Part 7 9242 EXTENSIONS OF REMARKS April 15, 1969 ploitation of the non-Russian nations of the many experts on Communism, this schism, But Moscow's basic problem in Ruinania is U.S.S.R. The Ukraine has a population of 45 gradually widening in the last seven or eight far from being solved as it ever was since million and huge resources, especially of coal years, may in the long run be more embar­ Bucharest decided to follow its own private and pig iron. Georgia has manganese and rassing and even dangerous to the Kremlin path to Socialism. Azerbaijan has oil. than the Czechoslovak acts of defiance in The book is not without flaw. The author 1968 and again this spring. uses too many obscure or self-coined words. On many aspects of foreign, military and Examples include "actionism," "concretist," economic policy, Rumania has rejected So­ "entitative" (for entity), "hardwarists," viet guidance. She has successfully opposed OIL COSTS NOT REAL CULPRIT "pendulumic," "potemkinize,'" "nomer," Soviet plans for Warsaw Pact forces' maneu­ "venomia" and "guestimations." However, vers on her soil, even going so far as to pro­ this is a much-needed book that should serve test against all war games by everybody, HON. 0. C. FISHER to startle Americans out of their cold war everywhere. This month, in a small conces­ OF TEXAS sion, she sent staff officers to a brief exercise complacency. One may hope for issuance as IN THE HOUSE OF REPRESENTATIVES a paperback together with tighter editing. involving Soviet and Bulgarian units in Bul- garta. · Tuesday, April 15, 1969 Rumania has been as reluctant to follow the Soviet inspiration in the Comecom Mr. FISHER. Mr. Speaker, a small in­ (Council for Mutual Economic Assistance) crease in crude oil prices has been viewed STILL RESISTING MOSCOW'S WAY as she has been in the field of the Warsaw with alarm by a few who seem to sup­ Pact, although she continues to belong to port infiationary increases as applied to HON. WILLIAM L. SPRINGER both Communist organizations as a reluctant other enterprises but do not like to see partner. OF ILLINOIS any such price adjustments as applied to At the Warsaw Pact "summit" in Budapest the petroleum industry. IN THE HOUSE OF REPRESENTATIVES last month, the Rumanians virtually tor­ An excellent discussion of this overall Tuesday, April 15, 1969 pedoed Soviet plans for a unified stand against Communist China. Their argument subject is contained in an editorial which Mr. SPRINGER. Mr. Speaker, _under was that there must be no taking of sides appeared in the April 6, 1969, issue of the leave to extend my remarks m the in the Communist disputes. At the Moscow the San Angelo, Tex., Standard-Times. RECORD, I attach herewith an ~rticle by conference this month, the Rumania Min­ The editorial follows: ister of Justice refused to sign resolutions OIL COSTS NOT REAL CULPRIT Tad Szulc, who is a New York Times cor­ against the United States' presence in Viet­ respondent who has just completed a nam and against West Germany because, he Surely pure gall must have a limit. And visit to Rumania. This article is very re­ said, he had no authority to do so. surely the 14 senators who have urged the vealing. It indicates that Rumania is tr~­ The Rumanians not only deny Moscow Nixon administration for a full-scale in­ ing to maintain herself in . diplo~atic the right to tell them what to do, they insist vestigation of recent oil and gasoline prtce on maintaining relations ranging from warm hikes have their share of pure gall that must relations with all nations. This has given approach the limit. the country some :flexibility in trade in the case of Yugoslavia to cordial or rea­ sonably correct in the case of China, Albania After voting to hike their own pay, approv­ negotiations and other aspects of for­ and Cuba-an countries considered hostile ing increased salartes for Civil Service em­ eign economic policy. Independence such by the Soviets. · ployes and otherwise spending money like as Rumania has shown will do more to In the black-and-white terms of what it is going out of style while giving lip keep us out of World War III than az:i.Y Moscow regards as proper Communist alle­ service to curbing inflation, these senators other thing possible. Ability to retam giance to its authority, the Rumanians, there­ have the gall to ask for a probe of an in­ fore, have been acting as stubborn and con­ dustry where inflation trends rank among one's independence and thinking about the lowest in the nation. world matters in the end results in the firmed heretics. The question thus arises what, if any­ Granted the price of a gallon of gasoline best thing being done for the individual is up 9 per cent from 1960. But even at country concerned-and it would appear thing, the Kremlin leaders proposed to do about the Rumanian recalcitrants. that, gasoline prices have risen less than the that Rumania has that in mind .. A military invasion of the Czechoslovak general cost of living durtng that period. This article from the New York Times The senators should turn their attention to type might still appear as a solution to the a wide variety of other items that inflation of Sunday, April 13, is herewith ~ttach~d, "hard-liners" propounding the Brezhnev in­ has taken toll on to a far greater extent. and I believe my colleagues will be theory of "limited sovereignty." But the long Among those prices that have risen more terested in reading it today: months of political upset in Czechoslovakia than the general cost of living durtng the STILL RESISTING Moscow's w AY after the invasion, and the violently adverse 1960s are: reactions from much of the world Com­ The expression "unity and cohesion" as Semi-private hospital rooms, up from an m u nist movement to the August inte::ven­ average of $20.95 per day in 1960 to $41.04 applied to the Communist movement had tion, may well have forced a rethinking of different meanings to Rumanian Foreign per day in 1968 for an increase of 96 per the Soviet opt ions in Rumania. cent. Minister Corneliu Manescu and to the top Among the factors Moscow must consider Soviet leaders when they conferred in the Adult. movie tickets nationwide are up in Rumania is that, in the first place, the Kremlin last week. from the 1960 average of 90 cents to $1.61 To the Ruinanians, unity and cohesion Rumanians m a y well fight back. Carnage in in 1968 for a hike of 79 per cent. meant full cooperation on the clear under­ a fellow Communist state may not be pre­ A man's wool suit cost an average of $41 standing that there is no interference of any cisely what the Soviets need as they strive in 1960. In 1968 the average cost had risen type by a communist country in the affairs to rebuild the international movemen.t, push by 51 per cent to $74. of another Communist state. for a European security conference, and seek There are numerous other prices that have To the Soviet Union the phrase represented serious negotiations with the United States. risen by far greater percentages during the a complete acceptance of the leading role of The Rumanian Communist party-and the eight-year span-too numerous to name Moscow within what the Soviets have taken rest of t h e nation-is totally united around them all. But some include the cost of a to calling the "socialist commonwealth." the party chief, Nicolae Ceausescu. Contrary house call by a doctor, up 46 per cent; maid This theory since last autumn has also been to the case in Czechoslovakia, a pro-Soviet service for a day is up 45 per cent; cigarettes known as the "Brezhnev Doctrine," because wing does not exist in the Ruman ian party, have risen 42 per cent in cost per package; the Soviet Communist party's General Sec­ because in the last four yea.rs Mr. Ceausescu men's shoes, up 39 per cent; hair cuts are up retary, Leonid I. Brezhnev, invoked it to saw to its extinction. 34 per cent; even oranges are up 30 per cent justify the invasion of Czechoslovakia. Rumania's centuries-old experience in from 84 cents per dozen to $1.09. In a lengthy article last week marking playing Turk against Russian and Transyl­ More directly, petroleum prices have been Mr. Manescu's visit, Pravda, newspaper of the vanian against Austrian has taught her how forced up by rising costs of labor and steel, Russian Communist party, explained the to maneuver flexibly in the predatory world a necessary item in the form of pipe and ma­ doctrine. "Marxist-Leninists," said Pravda, around her. chinery to the drilling of any oil well. "believe that whenever there is a threat to While hoping to maintain normal rela­ The senators made their request for a the revolutionary gains of the people in any tions with Moscow, Mr. Ceausescu remains probe of rising oil prices in a letter to Atty country, and hence a threat to its sovereignty friendly with Yugoslavia's Marshal Tito, Gen. John N. Mitchell, asking him "to ascer­ as a socialist country and a threat to the sends warm greetings to the Chinese Com­ tain whether these price rises have been fraternal community, it is the international­ munists, signs new economic agreements coincidental or collusive and predatory prac- ist duty of socialist states to do everything in with Cuba, visits Turkey, which is a NATO tices." The letter was made public by signers their power to remove that threat and insure member, and deals extensively with the West Sens. Edward M. Kennedy (D-Mass.) , William the progress of socialism and strengthen the in trade and technology. Proxmire (D-Wis.), and Edward w. Brooke sovereignty of all socialist countries." Under the circumstances, it is unlikely (R-Mass.) . This fundamental difference of opinion is that Mr. Manescu and the Soviet leaders They noted that the price rise, costing con­ at the root of the ideological schism between have agreed on more than how to disagree sumers an estimated $800 million annually, Moscow and Bucharest. In the opinion of with a minimum of Communist scandal. "comes at a time when the greatest single April 15, 1969 EXTENSIONS OF REMARKS 9243 economic problem facing our nation is infla­ fuel missiles: the SS-9, with a warhead of one step further, and argue in this morn­ from 9 to 25 megatons, and the SS-11, with tion, and at a time when virtually all of the ing's Washington Post that the evidence a warhead of slightly more than 25 mega­ major oil companies have record high is better fitted to a conclusion exactly tons. profits." opposite to that reached by Mr. Laird. The pace of deployment was approximately They commented that "this is certainly no These two articles warrant careful 250 a year about 200 SS-ll's for each 40 to time to fatten profits still more by an irre­ study by all of us in Congress, since we 50 SS-9's. At the time, American analysts sponsible price hike . . . Almost none of the figured the Russians had simply put their price increase comes back to the federal gov­ will soon be asked to vote funds for a system which is being justified on development and production money on two ernment in taxes ... because of the priv­ different systems made by two separate de­ ileged tax treatment received by oil com­ grounds which are tenuous indeed. In or­ sign teams, just as the United Sta tes had panies." der that they may be readily available done originally. It would seem to us, after examining the to all Members, I am inserting their About 200 early model SS-7 and S8-8 mis­ inflationary trends that have stricken the texts at this point in the RECORD: siles were retained in the Russian force as economy with fever, that a 9 per cent price the new weapons went in. rise in eight years is not even sufficient to [From the New York Times, Apr. 14, 1969] SOVIET MISSILE DEPLOYMENT PUZZLES TOP Then, early last year, the Russians stopped offset the rising costs of production. Certainly deploying the SS-9 and slowed installation oil prices have risen and certainly no mo­ U.S. ANALYSTS of the SS-11. At the same time it started torist enjoys paying more for a gallon of (By William Beecher) putting in about 25 SS-13's, a new solid-fuel gasoline than he has in the past. But it seems WASHINGTON, April 13.-The scope and ICBM with a warhead of about one-megaton. remarkable that petroleum prices have not nature of Soviet strategic weapons deploy­ The feeling was the Russians thought they risen even higher than they have during the ment has puzzled senior Government ana­ h ad almost as many ICBM's as they needed 1960s, and we feel the oil industry is to be lysts to the point where it may play an im­ or wanted and would soon taper off. congratulated for holding down its contribu­ portant role in the Administration's fight for But in December came evidence of a sud­ tion to spiraling in:ftation. an antiballistic missile system. den resumption of SS-9 construction. Only After 14 senators have examined their own The issue came to light recently when a few missiles were involved but this raised personal situatio:rs, including a wage hike of Defense Secretary Melvin R. Laird asserted concern because of the large payload. of this $12,500 per year and a vast array of other there was "no question" that Russia was system. price hikes that are the real culprits in an seeking "a first strike capability" against the NONE BELIEVED ACCURATE overheated economy, then a request for scru­ United States. He credited new intelligence tiny of the oil industry would not seem so The question was whether the Russians information with bringing him to this view. had decided to resume the earlier construc­ apparently full of gall. Qualified sources say that the new evidence tion pace that would result in a tot al of Sen. Everett Dirksen said when Congres­ gathered by high-flying satellites shows the about 500 SS-9's in five years. sicnal pay raises were being considered. "Even following: None of the Soviet ICBM's is considered senators have to eat." We contend that oil The Soviet Union has a total of about 1,200 very accurate. The one-megaton missiles, industry people also have that right and to intercontinental ballistic missiles, in place however, are considered quite adequate for no lesser degree than congressmen afford or rapidly going into place, roughly 150 more destroying cities. They are five times more themselves-and you can eat pretty good on land-based ICBM's than in America's arsenal. powerful than the atomic bombs that de­ $42,500 per year. After deploying about 225 giant SS-9 mis­ stroyed Hiroshima and Nagasaki. The real victims of price hikes, whether it siles the Russians abruptly stopped the pro­ But the SS-9 makes up in warhead size be in salaries or congressmen, in hospital gram early last year, but then, in December, what it lacks in accuracy and thus could be room fees or at the grocery shelf are the na­ surprisingly started it up again. used to try to destroy minuteman missiles tion's poor-the unemployed whose assist­ The Russians are believed to have deployed in their steel-and-concrete silos. ance is not boosted in accordance with rising a fractional orbiting bombardment system, a More chilling yet is the possib111ty that costs, the nation's elderly who find Social weapon that could only be used effectively the Russians would put accurately guided Security checks no larger when living costs in a first strike against so-called "soft" multiple warheads on the SS-9. The experts continue to rise. Most other Americans have targets, such as bomber bases. say it has enough thrust to carry three 4-to- realized increases in take-home pay in excess They are also testing new multiple war­ 5-megaton multiple warheads, or six 1-to- of the 9 per cent in eight years that oil prices heads for the SS-9. 2-megaton warheads, or conceivably 18 200- have risen-but still below the 30 per cent As of last fall, the American intelligence kiloton warheads. congressional pay hike and numerous other community was convinced the Russians The Russians have been actively testing cc-st increases. were merely following the American lead in a three-part multiple warhead on the SS-9, In the battle of rising costs, reality dic­ building a secure "second strike" force that sources say. But, as yet, these are not be­ tates that when wage costs rise, so does the would enable them to ride out a surprise lieved capable to separate guidance against cost of production. That increase is passed on attack and then retaliate overwhelmingly. different targets. Instead it is said, they land in increased costs to the consumer, who, in The new information, centering on the "like a string of beads" in a straight line. t'Llrn, demands more wages. The people who SS-9, has raised a serious question in many There were three main theories on what are hurt by this process are those whose pay­ officials' minds. However, Mr. Laird has ap­ the Russians are up to: checks do not rise in proportion to living parently resolved that question to his own One school holds that they have power­ costs, but if congressmen aren't responsible satisfaction in favor of assuming that the ful internal pressures to continue construc­ enough to hold the line against the spiral Russians are bent on upsetting the balance tion of at least some more missiles, a sort of we find it hard to understand why they want of power dramatically in their favor. Others Soviet "m111tary-industrial complex." any industry--oil or otherwise--to absorb in the Government are far from sure. Another group believes they have decided the blow without raising the prices of its Secretary Laird's statement was made be­ they ought to build a first-strike force, more products. fore a recent session of a Senate Foreign to exploit as an implicit threat in future Relations subcommittee that was strongly confrontations than to use suddenly one skeptical about the need for the $6-billion morning in a surprise attack. CAPABILITIES, JUDGMENTS, AND to $7-billion Safeguard antimissile system, A third group holds that the Russians are THE ABM designed in part to defend America's ICBM's interested in limiting damage in the Soviet against Soviet attack. Union in case deterrence fails and nuclear Without squarely disagreeing with Mr. war breaks out. ICBM's that can destroy HON. JONATHAN B. BINGHAM Laird's assessment, Secretary of State Wil­ enemy missiles in their silos would limit liam P. Rogers nonetheless told a news con­ d amage on Russia fully as much as ant i­ OF NEW YORK ference he doubted that the Russians had missile missiles. IN THE HOUSE OF REPRESENTATIVES the "intention" of launching a first strike. MOST EXPERTS UNDECIDED Tuesday, April 15, 1969 But he said one of the first questions the United States would raise with the Russians Most analysts say the evidence is not at Mr. BINGHAM. Mr. Speaker, Secre­ when arms limitation talks got underway all clear enough to choose among these al­ tary of Defense Laird has based a large was: "Why would you have a 25-megaton ternative strategies with confidence. missile?" Mr. Laird, some officials point out, has the part of his case for the Safeguard ABM responsibility to make conservative judg­ system on his judgment that the Soviet A megaton is equivalent to one million tons of TNT. ments where the country's survival may be at Union, by resuming deployment of the stake and thus understandably wants to Since the Administration h as apparently SS-9 missile system, is seeking to achieve move ahead now to start the slow deploy­ a first-strike capability against our of­ chosen to pitch much of its case for the mis­ ment of a defense for the Minutema n force. sile defense system on the rising Soviet (The Administration argued for the Safe­ fensive missile forces. As William threat, the differing assessments within the Beecher noted in a perceptive article in Administration on the nature of that threat guard system, additionally, as a full protec­ could well undermine its case. tion against ICBM's Communist China is ex­ yesterday's New York Times, the evi­ pected to have in the mid-1970's and as a dence to support Mr. Laird's contention PACE OF DEPLOYMENT defense against a small number of missiles is not nearly so clear as the Secretary Back in 1965, when the Russians moved to launched accidently or without authoriza­ would have us believe. Indeed, Frank a large-scale deployment of ICBM's, they con­ tion from China, Russia or anywhere else.) Mankiewicz and Tom Braden have gone centrated on two second-generation liquid- Those who lean to the Soviet first-strike 9244 EXTENSIONS OF REMARKS April 15, 1969 school point to the Russian deployment of SS-9s, at a cost of $25 million each. Such a public order without which liberty itself the fractional bomb system. It uses the same program would give them a minimal chance would be lost in the excesses of anarchy. boost er as the SS-9 ICBM, but carries a of destroying 1000 of our Minutemen, built smaller warhead and is believed less ac­ at a cost of $5 million to $6 million each. crrES DANGERS TO SOCIETY curate. Its main feature is its ability to come There is no evidence that they are embark­ The authority of government is not so in low, under the view of long-range radar, ing on any such ridiculous course. trifling as to permit anyone with a complaint thus being potentially capable of destroying And if they did it would still threaten to have the vast power to do anything he bombers before they can be warned and get neither our substantial fleet of submarine­ pleases, whenever he pleases, and wherever airborne. borne missiles nor those carried by U.S. stra­ he pleases. If this were true, our customs Such a weapon would be of little use un­ tegic bombers. and our habits of conduct--social, political, less employed in a first strike. After war had Ever since mid-1968, when details of the economic, ethical and religious- would all be begun, the bombers would not be sitting SS-9 were first made public in the commer­ destroyed and become no more than relics around on their bases waiting to be hit. cially published "Jane's All the World's Air­ of a gone, but-not-forgotten past. Additionally, the Russians have long ex­ craft," it has been known to be inferior to I firmly believe that our cities, and the pressed interest in building a large missile the U.S. Minuteman in both reliability and residents of these cities, can be and must be defense system. So far they have deployed launching time. Indeed, it is most compara­ protected by their government from noisy, only 67 long-range defensive missiles around ble to our Titan I missile which we are now chanting, shouting, marching, threatening Moscow but are testing a more advanced in the process of discarding as obsolete. To picketers who, under the guise of free speech, model. resurrect SS-9 now, as a reason for starting hurl pieces of brick, stones and fireworks, If the Russians installed a heavy defensive an ABM program, seems very close to down bent on :filling the minds of men and women all around the country, this too could cut right deceit. and children who reside in our city, with two ways. On the one hand it could limit For far less money-say about $2 billion­ fear and hysteria. damage if someone else started nuclear war. the United States could "superharden" all THREAT TO ORDER But it also could be used to knock down of its Minuteman sites. Roughly speaking, In the case at bar, there is ample evidence retalitatory American missiles that survived a superhardened site is five times as strong that the totality of the circumstances in the a Soviet first strike on the United States. as a hardened site. Thus, in order to main­ city of Chicago and particularly in the vicini­ Administration officials hope a freeze on tain the same counterforce ability, the Rus­ ty of 18th and Michigan on the night of otiensive and defensive missiles can fore­ sians would have to do one of the following: Aug. 29, 1968, did present a clear, imminent close these horrors. But they question (1) increase the warhead size of the SS-9 and present threat of violence to our com­ whether the United States can safely start a by a factor of 11; or (2) double its accuracy. munity. Under these circumstances the au­ unilateral freeze even before those long and Either of these is a far bigger order than thorities have the right, as well as the duty, difficult talks get under way. penetrating the "thickest" ABM system. to take action under ordinances enacted by In short, the much trumpeted SS-9 is not the municipal authorities for the welfare and (From the Washington (D.C.) Post, Apr. 15, a breakthrough in the balance of terror. It protection of the citizenry. 1969) is a weapon of great horror-but of no great­ The ordinance which the defendants are LAmD ScARE STORY ON SOVIET MISSILE WON'T er horror and somewhat less efficiency than charged with violating is narrowly drawn WASH many of our own. It justifies neither panic in such a way as to avoid abridging the right nor the ABM. (By Frank Mankiewicz and Tom Braden) of speech, assembly and petition. It is in no Even so reasonable a. man as Secretary of sense a "meatax ordinance." It is also clear State William Rogers has apparently been in this record that the Illinois national taken in by the Pentagon's hard-working guard, as well as the Chicago police depart­ propagandists on the subject of the SS-9, DEFINING LIMITS OF FREE SPEECH ment, did make a determined and success­ or Soviet "supermissile," as it fs now being ful etiort to permit the marchers to peace­ called. fully demonstrate and acted only in the The belief of too many Americans that HON. JOHN M. ASHBROOK interest of maintaining public order. "bigger is better" is helpful to Secretary of OF OHIO ORDER NOT MAINTAINED Defense Melvin Laird and the generals in the IN THE HOUSE OF REPRESENTATIVES I do not believe that this group and its campaign to make the SS-9 into a new and leaders did all in their power to maintain frightening reason why we should spend $6 Tuesday, April 15, 1969 order. On the contrary, it appears that such billion to $7 billion-for openers-on an Mr. ASHBROOK. Mr. Speaker, yester­ efforts that were made were nothing more ABM system. than a shallow pretense-no more than an There is no doubt the SS-9 is big. Secre­ day the 13 Democratic National Con­ empty gesture. It is noteworthy that one of tary Rogers, at his recent press conference, vention delegates and campaign staff the defendants in this cause stated that he referred to it as a "25-megaton missile." This workers who were arrested on August was a. parade marshal with the responsibility is a far higher estimate than that made by 29 of last year during the convention of maintaining order, abandoning his duties, the CIA, which estimates it to have a war­ fracas were convicted yesterday of dis­ did remove his identifying armband, press­ head ca.pa.city of 5 megatons. But there is no orderly conduct. The ca.se was heard by ing to the forefront of the marchers, refus­ need t;o argue the point of size. Probably, ing to obey the laWful order given to him the SS-9 has a bigger warhead than anything Magistrate Arthur L. Dunne whose state­ ment on the limits of free speech and by a peace officer, ultimately being taken the United States now deploys-and it is still into custody. far too small to knock out more than one assembly put this complex is.5ue in It is readily apparent that this group, bent ICBM site, of which we have 1054. its proper context. Stated Magistrate on airing emotional grievances, either ima­ The fact is that the SS-9 is not a first­ Dunne: ginary or real, on the streets of our city, strike weapon, no matter how many grisly The right of free speech and assembly, acted in such a fashion that the joint etiorts (and already public) details the Pentagon while fundamental in our democratic so­ of the Illinois national guard and of the "declassifies." It is not designed to destroy ciety, does not mean that everyone with Chicago police department were of no avail, the U.S. ICBM system and cannot do so. It opinions or beliefs to express InaY do so at resulting in the issuance both by personal is, instead, a large warhead designed to any public place at any time. contact and by means of amplifying devices, destroy large "soft" targets, such as cities. of an order to disperse-which was laWful It is-in other words-a second-strike Conveniently forgotten by some of our in every sense. weapon, and that's all it is. free speech advocates these days is the The defendants in this cause knowingly Thus, it does not change the balance of principle of the common good which im­ disobeyed this order and sought arrest, rath­ terror in any way or give the Russians some plies the maintenance of public order in er than obey the duly constituted and laWful huge and mysterious advantage which authority of the community. should cause us to escalate the arms race. the community. Perhaps the future will Secretary Laird and the generals in the see more realistic definitions of the in­ Pentagon have chosen to ignore this fact-­ dividual freedom versus individual re­ for a very good reason. The reason is that sponsibility issue, with the community HON. ALVIN M. BENTLEY the Safeguard ABM as proposed by Presi­ receiving its rightful protection from de­ dent Nixon is not intended to protect large liberate violations of the law. targets, such as cities. It is intended to Here is the text of Magistrate Arthur HON. CHARLES E. CHAMBERLAIN protect our ICBM silos. And it is a tenable L. Dunne's statement as it appeared in OF llllClilGAN proposal only if Congress and tbe American IN THE HOUSE OF REPRESENTATIVES people can be persuaded that the Soviets the Chicago Tribune of April 15. 1969: have a missile capable of destroying these The right of free speech and assembly, Monday, April 14, 1969 silos. The SS-9, being large, meets the needs while fundamental in our democratic so­ of the argument so long as the argument ciety, does not mean that everyone with Mr. CHAMBERLAIN. Mr. Speaker, I ignores the facts. opinions or beliefs to express may do so at was indeed saddened to learn of the The facts are these: In order to threaten any public place at any time. The constitu­ passing of our former colleague, the only the U.S. land-based second-strike capa­ tional guarantee of liberty implies the exist­ Honorable Alvin M. Bentley, of Owosso, bility, the Russians would have to build 2000 ence of an organized society maintaining Mich. April 15, 1969 EXTENSIONS OF REMARKS 9245 Courageously denied once before, the famous words of the great 18th­ motivations and station in life reach as high century English statesman, Edmund a plateau as did Al's, there is nothing to do death nevertheless came unkindly long but fight for that in which you believe. before its time on April 10, at the age Burke, Al Bentley's happiness and glory In politics, of course, infighting was one of of 50. Not before, however, Al Bentley was to live in the strictest union, the the rules of the game. However, if you lost to had already completed two distinguished closest correspondence, and the most un­ Al Bentley in one of those fights, you never careers in service to the Nation. The mis­ reserved communication with his con­ had the justification to claim "foul." fortune of ill health, which he gallantly stituents. Their wishes had great weight How many of us would have carried out our struggled against in recent years, recalls with him; their opinion high respect; trusteeship for the public good nearly as well the fateful day of March 1, 1954, when a their business unremitted attention. But as did Alvin Morell Bentley? Too few, we fear. his The list of Al Bentley admirers who will group of terrorists sprayed this Chamber unbiased opinion, his mature judg­ come from the state and nation to Owosso to with gunfire, inflicting upon Al wounds ment, his enlightened conscience, he pay their last tribute to the man will be im­ so serious he only narrowly escaped sacrificed to no man or any set of men pressive and lengthy. death. living. No one will ever know the numbers of those Following graduation from the Uni­ At this point, I insert a copy of the who are left to say, in eloquent simplicity, versity of Michigan in 1940, Al was one warm editorial tribute appearing in the "I liked that guy." of a group of 30 appointed to the U.S. Owosso Argus-Press of Friday, April 10, 1969, and the perceptive memorial by [From the Detroit (Mich.) Free Press, Foreign Service from among 600 appli­ Apr. 14, 1969] cants, and for a period of some 8 years Judd Arnett in the Detroit Free Press of he served most ably at various posts, in­ Monday, April 14, 1969: MR. ALVIN BENTLEY, TRUE MIDWESTERNER (By Judd Arnett) cluding Mexico City, Bogota, Budapest, (From the Owosso (Mich.) Argus-Press, and Rome. Apr. 11, 1969] There is sadness in this corner at the news of the passing of Alvin M. Bentley of OWosso. In 1950, the year the Korean war I LIKED THAT GUY He was a good man in the true sense of the broke out, Al resigned from the Foreign It seemed fitting that our front page of phrase and those who had more than a sur­ Service to speak out publicly about his yesterday, which carried the somber news of face knowledge of what he stood for and what concern over the growing threat of Com­ the death of Alvin Morell Bentley also car­ he wanted to do for others will long regret munist aggression and subversion ried another story which proclaimed, "There his demise at the still-tender age of 50. throughout the world. Are Many People Who Care." Generally speaking, Alvin Bentley was best Fitting because Al Bentley did care. He In 1952 he ran successfully for the known as a four-term Republican Congress­ cared about his family and friends, of course. man who survived an assassin's wounds in House of Representatives from Mich­ But Al also had a deep concern for his fellow the 1954 attempt on the life of Harry Truman igan's Eighth Congressional District, man. and other public figures. Later, he gave up which at that time was composed of Awareness of the depth of Alvin Morell his safe seat in the House to run for the Clinton, Gratiot, Ionia, Montcalm, Sagi­ Bentley's concern for his fellow man is denied United States Senate; and subseq11ently he naw, and Shiawassee Counties. He served those who would seek it in an edition of a sought to be elected Congressman-at-Large in the 83d, 84th, 85th, and 86th Con­ newspaper or even between the covers of a when our state was in the throes of mal­ gresses, always being returned by the book. districting. On both occasions the majority It was understood by those who loved said "no," quite decisively. He never com­ citizens of the Eighth District with a him . . . and their ranks extended far be­ plained of this rejection. generous vote of confidence. yond the ties of family. Had Alvin Bentley, with his advantage of To the House Committee on Foreign It had somehow been communicated to great wealth, been Eastern-born and Eastern­ Affairs, Al brought the wealth of his ex­ people like the Owosso housewife who, when indoctrinated, his political career might well perience and knowledge of international she learned that Al lay near death this week, have matched that of those from the area relations. remarked, "I liked that guy." still in the limelight. But he was small-town­ Al Bentley deserved to be liked. He wasn't Midwestern to the core, and shy, sensitive and A man devoted to the principles of his flashy or pretentious. He was a hard worker. reserved to boot; no better equipped, really, party. he was the choice of Michigan He was a rich man who considered himself a to repell the slings and rebuffs of public life Republicans in 1960 for the office of U.S. trustee of wealth put into his hands for the than you, dear reader, would have been. Senator, and in 1962 for the office of purpose of helping his fellow man. There were times when his money-he Congressman-at-large. As has been said, Al Bentley could have never seemed to grasp the extent of it--was chosen to sit on a yacht off the Florida Keys more of a handicap than a help. Not that he Nor was his a narrow partisanship. for the rest of his life. Returning to the House Chamber on feared losing it. Rather, one seemed to sense But selfle&sness, not selfishness, was a mark in him the fear that it might lead him into April 27, 1954, some 8 weeks after being of the man. That and his capacity for hard false circumstances, into advantages, person­ wounded, among Al Bentley's first work led him into the diplomatic corps, into to-person, he had not otherwise earned. He thoughts were these in speaking of the Congress for four terms and so deeply into was one of the least ostentatious of the very attack of March 1 : the field of education that he became a rich, and one of the most considerate in small Both sides of the aisle suffered casualties Regent of the University of Michigan. and polite ways. He had good manners; he and both sides of the aisle reacted in the To all appearances, Al Bentley had it was what we once called "well raised." same way. Political campaigns are good and "made" as a Congressman. But the same fel­ Again in the general sense, here was a man proper in their place but we here in Wash­ low wouldn't sit in that yacht off the Keys few people knew or understood. Yet in many ington have national and international prob­ also declined to "sit it out" on the House ways he contributed to the betterment of lems whose importance far surpass the exi­ floor. So he took aim at a seat in the U.S. his fellow man. Michigan, which he loved, is gencies of any political contest. When we in Senate. It didn't come off. But Al was never poorer now that he is gone. one to set h!s sights low. Congress faced a terrible problem 8 weeks ago yesterday it was met with no thought of If you resented Al Bentley falling heir to party lines. Perhaps the good Lord wanted many millions of dollars, this was a resent­ ment that had nothing to do with the "real" to see if we could still meet problems on a nonpartisan basis. Perhaps it would be well Al Bentley. That was your own hangup, and PROJECT CONCERN DEDICATION Al would gladly have helped you with that if we met some of our bigger problems in the OF MEMORIAL HOSPITAL--AD­ same way. problem if given half a chance. DRESS BY GEN. W. C. WESTMORE­ One measure of the man was evidenced LAND And he concluded: when he showed sympathy instead of malice With the help of Almighty God, let us then toward the Puerto Ricans who shot him with remembrance of the past, look to the down on the :floor of the House of Represelllt­ HON. OLIN E. TEAGUE atives. Many friendships were cemented future and so conduct ourselves in the pres­ OF TEXAS ent thait we may be worthy representatives when the Bentleys later visited Puerto Rico. of the American people, the greatest people Being on one of Al Bentley's committees IN THE HOUSE OF REPRESENTATIVES the history of the world has ever known. here in Shiawassee County or elsewhere was quite an experience. As that housewife said, Tuesday, April 15, 1969 I cannot help but think that these you got to like the guy. And you liked the Mr. TEAGUE of Texas. Mr. Speaker, I thoughts would be among those he would, way things got done, because Al Bentley al­ had the unique experience of attending if given the oppartunity, wish to leave ways did his homework. He was a leader and the dedication ceremonies of a clinic and his leadership was based on doing more than with us. his share of the work and listening with refugee center under the auspices of the Al Bentley served his country, his patience and interest to all sensible points of major veteran organizations of Worces­ State, his constituency, his community view. ter County, Worcester, Mass., to be lo­ untiringly in the finest tradition of rep­ While he was patient and understanding, cated in the central highlands of resentative government. To paraphrase Al Bentley was also a fighter. When your Vietnam. 9246 EXTENSIONS OF REMARKS April 15, 1969 Some 3 years ago, the people of that it smacks more than a little of patting dedication ceremony. He wrote, in part, that: Worcester, Mass., decided that what was ourselves on the back. I am proud both of "We believe Worcester County typifies a seg­ needed most in Vietnam was a living what our Nation has done and why. I see no ment of our population who feel a humani­ reason why we should not accept credit for tarian contribution to the Vietnam cause will memorial to the war dead of Worcester. doing good. We certainly have enough critics better serve the wishes of our people." They approached Dr. James W. Turpin willing to take us to task for all of our fail­ No one can disagree with the logic of this of Project Concern. Today, as a result ings. Let us be proud of ourselves. statement---nor would anyone hope or want of the concentrated efforts of the people In my opinion, we Americans can be proud it to be any other way. However, I cannot of Worcester, Mass., there stands a liv­ of what we see. America has chosen not to help but wonder how long any humanitarian ing memorial in the form of a 60-bed flaunt her great strength among the less for­ contribution could exist without the shield hospital and refugee center, serving over tunate nations. Quite the opposite. America of our past---and present---military opera­ Da has shown her deep sense of responsibility. tions. The Viet Cong have clearly and re­ 200,000 citizens of the area of Lat, She has willingly assumed the burden of a peatedly demonstrated their total disregard Vietnam. great nation. She has shared her wealth and for humanitarian efforts. Making the main address of the cere­ her energies with other nations and peoples However, I hasten to add that I fully agree mony was Chief of Staff of the U.S. who hope to live without fear of their neigh­ with Commander Carroll's thought. And, I Army Gen. W. C. Westmoreland whom I bors' greed. would even go one step further. I am sure had the pleasure of accompanying. Throughout her relatively short history, that all Americans would hope to join the Under leave to extend my remarks in our Nation has championed the concept of people of Worcester County in this wish. But free society, and she has stood ready to de­ the RECORD I wish to include the text of we cannot forget that it is our youth who are f end that concept for herself and for others. making such a wish even a remote possibll­ General Westmoreland's address: In 1954, South Vietnam in distress called i ty-the same youth whom we honor to­ REMARKS BY GEN. W. C. WESTMORELAND, CHIEF for American help. In answer to this plea, night. OF STAFF, U .S. ARMY, AT THE MEMORIAL HOS­ President Eisenhower enunciated a policy of During my career as a soldier, I have served PITAL DEDICATION DINNER, WORCESTER ME­ assistance to South Vietnam-a policy that with many of the youth of our Nation. None MORIAL AUDITORIUM, WORCESTER, MASS., was endorsed by President Kennedy, reiter­ have been finer or more representative of APRIL 13, 1969 ated by President Johnson, and recently re­ American ideals than those whom it was my As many of you know, President Nixon was confirmed by President Nixon. privilege to lead in carrying out our national also invited to be here tonight to join with Our assistance took several forms. In an policies in Vietnam. us in dedicating this splendid living me­ effort to stem the tide of rising communist They have matched wits and skills with a morial to the gallant men of Worcester insurgency, we began economic and military determined foe, and they have shown them­ County. However, in view of the heavy com­ assistance. Our aim was to bolster a small selves to be winners. mitments on his schedule during the time and literally helpless nation until it could Yet, at the same time, these young men of the Ministerial Meetings of the North achieve the strength needed to resist aggres­ are demonstrating their compassion for ... Atlantic Treaty Organimtion, the President sion and-at the same time--take care of and deep understanding of . . . the Viet­ was not able to leave Washington. President its own people. Our Nation sought nothing namese people. Nixon is extremely interested in the type of in return--only the satisfaction of helping They have played important roles at the selfless dedication shown by your community a people to remain free. "grass roots"--or "rice roots"-level of effort, and he asked me to convey to you However, North Vietnamese Army units South Vietnam, particularly as advi.sers. again his personal regrets in being unable invaded the south to finish the job the in­ Extraordinary demands have been placed on to be present tonight. surgent had started earlier. South Vietnam them. Nevertheless, they have ably advised I am grateful for the privilege of being was faced with certain defeat at the hands and assisted their Vietnamese counterparts associated with Project Ooncern--even in of the aggressor from the north. America in carrying out programs dealing with ad­ such a small way. And, I appreciate the was called upon to make good her moral ministration, education, sanitation, and opportunity to join you tonight ... because commitment. And America responded, as a medical aid-as well as military programs. I can think of no group more deserving than responsible nation. Our young men and women have earned the men you honor ... or of no finer tribute America's response was in the form of the the respect of the South Vietnamese people to their heroic deeds and unselfish acts than necessary military forces to do the job. She by their courage, their deeds, and their what you are doing here tonight in their chose not to unleash her vast power. Rather, humanitarian acts. They have given volun­ name. she chose to exert only the means required tarily of their pay to build hospitals, It is a refreshing e~erience for me--and I to save a small nation. By design, America churches, and orphanages. Unfortunate believe for a majori.ty of people--to witness chose to undertake a limited war, with lim­ civilians have been cared for by the con­ a community effort such as yours. Too many ited objectives and to use limited means. tributions of our :fighting men-people who people waste their energies in pointing out As instruments of that national policy, have been caught and impoverished in the what is needed to improve our world. All too our Armed Forces undertook their missions. path of war. They have built ... they have few are willing to do more than just identify And they accomplished a great deal in repaired . . . and they have brought com­ what is wrong. Yet, here you have both seen Vietnam: fort. They-like all of us--would much a need and done something to fill th.at need­ They prevented South Vietnam from being rather devote their energies to building and in the name of men who also have seen militarily overrun by Hanoi. than to destroying. a need and acted to fill that need. The provided a shield behind which the Our young people in Vietnam have Both they and you have acted to share South Vietnamese people began to build a demonstrated by their attitude and con­ the responsibility of providing for the needs democratic nation in accordance with their duct that they are for the Vietnamese peo­ of your fellow men. The fighting men of own desires. ple. By teaching the Vietnamese to help Worcester County are helping to share the They gained time for South Vietnam to themselves and by giving them the oppor­ responsibility for defending the life of a build its armed forces to a point where, tunity to shoulder their own responsib111- young nation. You are helping to share the now, it gradually assumes a greater portion ties, they have raised the dignity of the responsibility for caring for the sick and of the fighting burden. Vietnamese people. At the same time, they homeless people of that young nation. Moreover, this union of military force and have helped overcome the apathy and in­ The beloved American Poet, James Russell political policy enabled the South Vietnam­ difference which followed in the wake of 90 Lowell-a man from Massachusetts-ex­ ese to: Mobilize their manpower . . . Gal­ years of colonial domination. pressed this thought far better than I when vanize their collective will ... and, Help If you detect an unbounded pride in my he wrote: stabilize their economy. accounting for the efforts of these splendid "Not what we give, but what we share-­ In my judgment, there are many aspects young people, you are correct. No one who For the gift without the giver is bare." of these accomplishments that were not has known them--or who has seen them brought fully to the attention of the world. perform-could hold them in other than the Yes, you and the men of Worcester County Perhaps it is reasonable to expect that the highest esteem. are sharing. Also, our Nation is sharing; and nature of military operations and the drama In my judgment, every American can be our youth are sharing. associated with battle overshadow the less proud of what these young men and women And-not unlike Project Concern--our Na­ spectacular events of nation building. Yet, have done and are doing. They have willing­ tion, our youth, and each of us are deeply from the outset, our aim has been to build a ly stepped forward when their country concerned with the ills and needs of our nation capable of standing on its own. And called; they have shouldered responsibility world. nation building-publicized or not---has been while a few others of their age have sat by For a few moments I should like to speak very much in evidence. Our military opera­ idly and dreamed. Unlike these few con­ a.bout how our Nation and our youth are tions, of course, provided the needed shield. temporaries who have chosen to demon­ sharing their gi.fts with other nations and Project Concern is a part of that nation strate their apparent disrespect for author­ people in the world who need them. building. Worcester County's living memorial ity, these young people have demonstrated I believe that we Americans could do well to its Vietnam War Heroes is nation building their great sense of responsibility under the to take time from our daily routine to think in its finest form. most difficult conditions. of what our Nation has done for mankind. I was struck by the deep significance of a They have given much of themselves. In Now, I say this in all sincerity, even though remark made by Commander Carroll in his time of their country's need, they turned I am fully aware that it sounds boastful and recent letter to me in which he discussed this to-not against those lofty principles on April 15, 1969 EXTENSIONS OF REMARKS 9247

which our Nation was founded~those same IKE TRmUTES RENEW FLOOD OF LOYALTIES IMPROVEMENT OF THE ELECTORAL principles that have sustained our Nation (By Fremont Power) COLLEGE SYSTEM IS URGENT throughout the years. I welcome them as our Dwight D. Eisenhower is dead and properly future leaders. I thank The Almighty for eulogized and, with simple dignity, interred them. in Abilene, Kan., whence he sprang. HON. HAROLD D. DONOHUE One thing is certain. They can return to The Eisenhower era in American history OF MASSACHUSETTS civilian life and be proud. They · can stand is thus closed. IN THE HOUSE OF REPRESENTATIVES tall; they can hold their heads high; they But some thoughts of last week remain and can look any man in the eye. They can they don't go away. Tuesday, April 15, 1969 proudly take their place with the veterans The man, even in death, seemed still to Mr. DONOHUE. Mr. Speaker, in a before them with the same sense of satisfac­ be speaking to America, for whom he gave tion. Like their predecessors, they have so much. And the essence of the message was news interview last January, preceding echoed the firm conviction that freedom is that the old verities remain and that more the opening of Congress, I expressed the not free. millions of Americans adhere to them than prediction and conviction that the House Yes, the youth of our Nation are sharing may ever be counted. would and should take early action on their gifts with others in need-gifts made It is easy, particularly in this business the challenging problem of electoral up of their talents, and, if need be, their th.at deals with the unusual rather than the lives. Like the Nation they represent so ably, college reform. ordinary, to acquire, unconsciously, an im­ Accordingly, I have been very pleased their gifts are far from being bare; their pression that this whole country is caught gifts are unselfishly given from the heart. up in quarreling, bitterness, legal pornog­ that the esteemed chairman of the House Earlier, I said that our Nation, our youth, raphy, defiance of authority and a predilec­ Judiciary Committee, of which I am a and each of us are deeply concerned over the tion for anarchy. member, saw fit to initiate public hear­ ills and needs of the world. This is as it ings on February 5, 1969. should be. We are a working partner in the NOT SO SELF-SUFFICIENT AFTER ALL affairs of the world. We have demonstrated It just isn't so. The way the nation re­ There is no question but that the prob­ repeatedly our intense concern in the well­ sponded to the old soldier's passing made lem of electoral college reform is an ex­ being of others who share our planet. Our this very plain once again. tremely difficult and complex one. concern is manifested everywhere a member Godless as we may seem to be, how many However, it is clear that the great ma­ of our Armed Forces stands prepared to millions of breaths must have been caught jority of American citizens very earnestly thwart aggression. as the old hymns came pouring forth from desire the Congress to effectively deal Nowhere is that concern more evident than the organ of the Washington National Cathe­ with the problem, and I most earnestly in South Vietnam today . . . and in Paris dral, played, incitlentally, by Indianapolis­ hope the House and Senate will complete where we seek peace. born John R. Fenstermaker Jr. These simple We earnestly pray that peace can come to expressions of faith stir old memories, old legislative action on this issue before the this war torn land. loyalties, old ideas of rightness. end of this session. We earnestly pray for the day when your Not all feel as self-sufficient as they might At this point, I am including the state­ fine hospital at Lien Hiep can give your gifts pretend. ment I presented to the House Judiciary of love and care without any need for a pro­ As pictures of these solemn ceremonies Committee on the first day of the com­ tective shield of soldiers. came floocMng over the news wires and the mittee's public hearings, last February 5, We earnestly pray for the day when there television screens, there was one recurring, urging appropriate committee action at will be no need for a refugee center at Lien refreshing feature: The young faces, looking the earliest possible date. The statement Hiep or any other place. on in seeming awe. follows: But until that day comes, America, her NO OCCASION FOR NEW OUTBURST youth, and each of us will continue to dem­ Mr. Chairman, may I first be permitted to onstrate our concern ... will continue to When Eisenhower died, a grisly thought extend my own very deep gratitude, together share our gifts with these unfortunate crossed the mind: What if the rebellious with that of untold numbers of my constitu­ people. misanthropeit took even this sad opportunity ents, to you and the esteemed members of Like each of you, I am proud to be among to insult and shock those who feel there are this committee for promptly initiating in the concerned. And, like each of you, I am still some things worth saving in this this new Congress, these hearings on the proud of the gallant men and women of our country? great number of bills before you, including Nation who have exercised that concern and Considering some of the other outbursts, it two proposals of which I am co-author, H.R. shared their gifts with others. didn't seem beyond possibility. But it didn't 4867 and H.J. Res. 317, concerned with the Thank you for permitting me to share this happen. Instead, there were these young very important subject of electoral college occasion with you. You can be very proud of faces, looking on as respects were paid one reform. both the men whom you honor and of your whom they oould only have known as an At the outset, let me make it very clear humanitarian effort. old man long passed from the stage of public that I well recognize as all of you do, that affairs. the accomplishment of such reform is a far Even they seemed to reflect some of the more complex and challenging problem than love that America held out to this man. may appear on the surface. I would not, As the funeral train went west, there was then, be so presumptuous as to contend that IKE TRIBUTES RENEW FLOOD this picture of a girl at Washington, Ind., the corrections advocated and the reforms OF LOYALTIES holding up a penny flattened by the wheels suggested in the bills in which I have joined that carried Eisenhower home. More mem­ ories came springing up, of small towns in contain the complete and errorless answer. another day where, if there was nothing else My primary purpose, here, is simply to HON. RICHARD L. ROUDEBUSH to do, there was always the putting of things urge your concentrated attention upon and OF INDIANA your earliest recommendation for the on the railroad tracks to be flattened: Nails, achievement of the basic objective of all IN THE HOUSE OF REPRESENTATIVES pennies, a washer. these measures pending before you, namely, Tuesday, April 15, 1969 SOLDIERING NOT WHOLLY DAMNED to enable the people of the United States Now this girl has a proper souvenir which to select their President without hindrance, Mr. ROUDEBUSH. Mr. Speaker, many surely she will want to show her children in the freest democratic manner that will fine eulogies to President Eisenhower some day and tell them how it was when the truly reflect the popular will, and avoid any have appeared, but one of the best I have train went through bearing a man they could necessity to resort to any other agency in­ read appeared in the Indianapolis News, know only from their schoolbooks. cluding the House of Representatives. the largest afternoon daily newspaper Perhaps if she conveys to those children I believe that is the desire of the great in Indiana. that he meant something to her, he will mean majority of American voters and I think it Mr. Fremont Power is the author of something to them. is the duty of this committee and the Con­ Eisenhower showed us in death that we gress to carry out that desire to the highest the eulogy which emphasizes the human are still capable of gratefulness to one who degree of our legislative wisdom. qualities that President Eisenhower pos­ gave so much, that soldiiering is not univer­ It is my own conviction as set forth in sessed to such a great degree. sally damned, that there are principles the resolution I have co-authored, H.J. Res. Fremont Power has long been recog­ worthy of cruel sacrifices, that simple reli­ 317, that this desired electoral college reform nized as a writer and columnist of ex­ gious faith has not been completely com­ can best be accomplished by adoption of a ceptional talent, and his column about puterized from the American psyche. constitutional amendment providing for the President Eisenhower is typical of his These old verities are still cherished by the election of the President and Vice President ability to get to the heart of a situation masses of Americans. by direct vote of the people. and interpret the importance of an As in any other death, we must return now Our proposed amendment would further to today's battles and not dwell overlong on require that a presidential candidate receive event. yesterday's sorrow. But it has been good to at least forty per cent of the total vote cast The article from the April 7, 1969, edi­ have this pause, to see that decadence has in order to be elected and that a national tion of the Indianapolis News follows: not become a way of life for so many. runoff election be held in the event that no 9248 EXTENSIONS OF REMARKS April 15, 1969 candidate obtained forty per cent of the oughly examine, as I know you Will, all the THE TIM:E FOR CORRECTING TAX vote. various legislative proposals before you and INEQUITIES HAS COME I believe, also, that the direct popular vote assemble from them a legislative recomw would serve to strengthen the two party mendation that Will enable, as fully as is system by making each State a voting prize humanly possible, the true popular will of HON. JONATHAN B. BINGHAM well worth a concentrated campaign effort the American electorate to be a reality in all by both sides. It ought, also, to strengthen future elections of the President and the OF NEW YORK the democratic ideal by stimulating and Vice President of the United States. IN THE HOUSE OF REPRESENTATIVES spreading voter interest and participation May I thank you for your kind attention Tuesday, April 15, 1969 everywhere throughout the country. In ef­ and courtesy. fect, it would extend the one-man, one-vote Mr. BINGHAM. Mr. Speaker, on principle to presidential elections. April 1 I testified before the House Ways Beyond these fundamental advantages to and Means Committee on H.R. 3655, the the proposed direct popular vote system, Tax Equity Act which I have sponsored, there are several others that deserve men­ RETAIN PORTSMOUTH NAVY tion. This proposed reform would make it YARD and other tax reform legislation. This impossible for the candidate with the legislation if enacted, would close a num­ greatest number of popular votes to be de­ ber of the most glaring loopholes in our feated by a candidate with fewer popular HON. PHILIP J. PHILBIN Federal tax system, bringing in addi­ votes. This system would give every vote, OF MASSACHUSETTS tional revenue without adding to the regardless of where it was cast, equal IN THE HOUSE OF REPRESENTATIVES burdens on moderate-income taxpayers, weight. Voters other than those from the and hopefully permitting some reduc­ so-called "pivotal" states would receive the Tuesday, April 15, 1969 concentrated attention of the candidates, tions in taxes on moderate-income and the votes from the large "doubtful" Mr. PHILBIN. Mr. Speaker, I am families. states would not be as overwhelmingly im­ gratified to note following my most re­ This legislation would also bring to the portant as they are now. The weight placed cent intercessions to retain the indis­ tax structure a measure of equity which upon selecting a candidate from a large pensable naval shipyard at Portsmouth, is currently lacking, and which the "key" state would be greatly diminished, N.H., that the Navy and the Department American people need and deserve, but since there would not be a disproportionate of Defense propose to take another care­ do not now enjoy. chance of the candidate completely carry­ In order to make my statement to the ing his home state. The possib111ty of a can­ ful look at the decision of the former didate coming from the smaller states would Defense Secretary to close this inval­ committee more readily available, I am be increased. No less than eighteen major uable yard by phasing out procedures including it in the RECORD at this time. party candidates since 1900 have come from over a period of time. TESTIMONY OF THE HONORABLE JONATHAN B. New York and Ohio. It is believed that the re­ Naturally, I am very anxious to coop­ BINGHAM BEFORE THE COMMITI'EE ON WAYS sults of any nationwide direct election erate with my colleagues of the Massa­ AND MEANS, HOUSE OF REPRESENTATIVES, would not be so close that small scale frauds chusetts, New Hampshire, and New WASHINGTON, D.C., APRIL 1, 1969 or minor accidents would have a signifi­ I want first to compliment you, Mr. Chair­ cant effect on the outcome of the election. England delegations in urging our for­ mer, esteemed colleague and present able man, and the members of your Committee, Also direct election would permit the es­ for scheduling these very crucial hearings. I tablishment of equitable nationwide stand­ and distinguished Secretary of Defense am grateful to be accorded this opportunity ards for the privilege of voting. Laird, not only to take a close look, but to appear before you and to register my Surely, the time is appropriate to focus to cancel out, the incredible decision to strong support, and the support of my con­ legislative attention and exert legislative ac­ close this invaluable, naval facility with stituents, for prompt and sweeping changes tion to improve the methoc;t by which we its unique nuclear potential. in the tax system. elect the president and the' vice president I am the sponsor of H.R. 3655, and a co­ of the United States. The present system The defense of the United States must have our top priority attention at all sponsor of the Congressman Reuss' bill, H.R. appears rightly described as undemocratic, 5250, both omnibus bills containing a num­ complex, and dangerously frustrating to the times. The fantastic plans to dispense ber of suggested tax reforms. I have been popular will. History shows that three times with this historic Portsmouth yard that urging for some time that legislation of the it has resulted in the choice of presidents is rendering such vital services to the kind I have sponsored be considered actively who received less votes than their opponents. Navy and our defense, one of the few by this Committee and the members of the Some historians insist that on one occa­ installations in the Nation, and the only House, and I was gratified earlier this year sion it unjustly deprived a candidate of when the Committee announced its inten­ the presidency to which be had been right­ one on the northeast coast with nuclear potential, is something that demands tion to convene these hearings and when the fully elected. But whatever these conten­ new Administration announced its intention tions, there can be no doubt that on many immediate consideration and action of to support tax reform legislation. The hear­ presidential election occasions in the past the Defense Department, our Armed ings that this Committee has been conduct­ the thwarting of the popular will has scarce­ Services Committees and the Congress in ing for several weeks now have contributed ly been avoided. order to reverse as soon as possible, the immensely to a better understanding of the No later than last November, the American previous, unwise decision to close this inequities in our tax system, and the need public had to wait many anxious hours to yard, and order it retention on a perma­ for remedial action by the Congress. I am find out whether or not the United States quite disappointed, however, by the recent House of Representatives would be called nent basis until world peace is assured. I propose to continue my efforts and announcement by Treasury Secretary Ken­ upon to select a President, With all its in­ nedy that the Nixon Administration does not evitably attendant partisan temptations and join with those of my interested col­ intend to submit a major tax reform propos­ disruptive potential. leagues in pressing this matter in the al to the Congress in the near future. Mr. Chairman, the evidence clearly shows Armed Services Committee and the Before discussing the specific tax reforms there is an urgent need for congressional House, and in every other possible way, which I feel are most needed, Mr. Chairman, legislative action to reform our current pres­ with the hope and expectation that we I would like to talk briefly about some as­ idential election procedure for the simple will secure favorable results before long, pects of the general need for this kind of reason that the electoral college system as guaranteeing the retention of this great, legislation which I feel have not been ade­ now projected can and bas defeated the quately emphasized to date. majority will. naval installation. This nation is currently experiencing a Of course, many people may be rightfully I urge our great President, and our crisis of confidence not only with regard to hesitant about proposals to amend our most esteemed former colleague, the Secretary some of its policies, but with regard to its cherished document, the Constitution. This of Defense, to scrap the plan to close basic political structure. We cannot afford to is a justifiable attitude and it is one of the this great, inexpendable yard, and estab­ underestimate the importance of taxation reasons our founders very properly made and tax equity as a factor in the despair and the process of amending the Constitution lish it as a permanent installation. It disenchantment which increasing numbers both difficult and time consuming. would be merely compounding a very of citizens are feeling and expressing toward Nevertheless, the fact is that the Constitu­ serious error of judgment not to cancel our system of government. tion has been amended twenty-five times and out this proposed closing as soon as it The income tax system of this nation when such amendment is clearly designed can be done. touches more citizens, more directly, more to eliminate an anachronism in our modern consistently than perhaps any other single democracy, as it obviously does in this in­ I earnestly solicit the help and support aspect of government. More than 74 million stance, I believe, the Constitution should be of the House to retain the Portsmouth Americans file an income tax statement amended again. Therefore, Mr. Chairman, I Navy Yard on a permanent basis and every year. For many of them-perhaps too respectfully urge you and your distinguished move ahead toward early implementation many-it is the most intimate contact they committee me~bers to carefully and thor- of this great facility as a modern base. have with the Federal government. As a re- April 15, 1969 EXTENSIONS OF REMARKS 9249 sult, it plays a major role in determining tion--one that is not nearly as easily an­ failures to increase the standard deduction their attitudes about the American political swered as asked. To even begin to answer it to keep pace with increased earning levels system. The extent to which the Federal tax and draw the proper policy implications from and living costs, only an estimated 57 per­ system appears to the average taxpayer to it will require much sophisticated analy­ cent of the taxpayers who file returns in "live up" to the ideals of this society-par­ sis. But it is a critical question, and given the 1969 will employ the standard deduction op­ ticularly our national dedication to fairness basic trends and figures I have cited, I feel tion. Another example of unnecessary and and equality-must be regarded as a crucial there is more than adequate ca use to begin frustrating complexity in the tax system is factor in determining the confidence, the immediately to elicit the views and data of the extra 15% tax credit accorded senior citi­ satisfaction, and the commitment with our very best economic brains to determine zens on incomes from private and government which the average citizen regards the Fed­ whether it would be feasible to readjust the penBions other than Social Security and Rail­ eral government. tax burden borne by individual taxpayers in road Retirement benefits. The computation Former Treasury Secretary Joseph W. Barr, relation to corpora.te taxpayers Without frus­ required is so complex that many elderly peo­ writing in the March 22, 1969 issue of the trating effort.a to achieve our basic economic ple do not understand it, and thereby lose Saturday Review, expresses amazement at and social goals. badly needed benefits to which they a.re the public response to his remark before the When that question has been a.nswered­ entitled. Joint Economic Committee of the Congress and I emphasize that I do not feel it has Even sweeping tax reform will not, of on January 17 that "we face now the possl­ yet even been adequately posed-then it wlll course, provide a total solution to the eco­ billty of a taxpayer revolt if we do not soon be appropriate to decide, as a matter of nomic problems of the nation. But that ts make major reforms in our income tax sys­ policy, whether it would be desirable to es­ not to say that tax reform would not pro­ tem." He describes the response to that tablish alteration of the ratio between total vide a significant increase in tax revenues. statement as follows: corporate and total individual taxation as a Although estimates vary on exactly how "The idea of a middle-class taxpayers' re­ major goal of tax reform. Any tax reforms much increased revenue could be realized volt caught the attention of the press, and instituted before a careful decision is made with a major tax reform program, a number the story was played up heavily around the one way or the other on this question of of tax experts believe the am.aunt would be country for a few days. Then the letters purpose will be putting the ca.rt before the enough, for ex.ample, to replace the "tax sur­ began to pour into the Treasury and Con­ horse, and will risk achieving little in the charge" now in effect. gress. Clearly this was an idea 'whose time way of increased public satisfaction. If, after Similarly, sweeping tax reform cannot be had come.'" careful consideration, it can be demonstrated expected to solve the problems of social un­ Secretary Barr need not have been sur­ that the total burden of individual taxation rest and the apparent crisis of confidence prised. His statement elicited such an over­ cannot be shifted, the public deserves to toward government that appears to exist whelming response simply because it accu­ know why not. If that burden can be light­ and to be growing in this country. But nei­ rately described the full extent and intensity ened, then tax reforms must be instituted ther would it be appropriate to underesti­ of public frustration with the operation of with that goal in mind. This Committee cer­ mate the importance of tax inequities as a the tax system. tainly possesses the authority and facillttes contributing factor in the erosion of respect Briefly, what are the reasons for this frus­ to take the lead role in such a determination, and confidence in government. The conten­ tration? I believe they can be summarized and I hope it will not fall to do so as pa.rt of tion of those in our society who are, in Sec­ under three general headings. First, many its current tax reform deliberations. retary's Barr's terms, on the verge of re­ individual taxpayers feel that the tax burden I do not intend to suggest by all this that volt is that the institutions of government they have to bear ts simply too great in rela­ inequities in taxes paid by some individuals a.re unresponsive to changing condittons­ tion to the tax burdens borne by non­ as compared to those paid by other indi­ that these institutions and their policies individual taxpayers, such as corporations viduals are insignificant, or do not consti­ a.re hopelessly frozen, insulated from legiti­ and other group enterprises. They cite, for tute a significant and legitimate area of con­ mate pressures for revision and change. That, example, facts like the following: cern. In fact, there is much evidence that it seems to me, is a reasonably accurate de­ During the past year ( 1968), according to such inequities exist and must be allevia.ted, scription of what has happened in the case a recent Internal Revenue Service report, and I believe these inequities constitute a. of our tax system. taxes on corporate profits dropped $5 b1111on. second major source of frustration for tax­ To a great extent, what constitutes the But the tax burden on individual citizens payers. best combination of tax reforms hinges on through personal income taxes increased by The fact is that individuals similarly sit­ the particular goals the Congress wishes to 13 percent during the same period. uated often pay strikingly dissimilar rates achieve. Those goals, in turn, depend upon "Real" net per capita income over the past of tax, and equal rates of tax a.re often paid the answers obtained to some of the kinds eight years ls up by 31 percent. But corporate by taxpayers with marked differences in in­ of questions I have tried to raise in this profits after taxes have gone from $26.7 bil­ come. This picture has been imprinted in testimony. lion to $51 billion-a. gain of 91 percent--tn the public mind by recent revelations that, But regardless of the answers that even­ the same period. on the one hand, some 2.2 million families tually emerge to these overriding policy The 1969 financial report of the First Na­ with incomes below the "poverty line" pay questions, I believe it is possible to desig­ tional City Bank of New York reports that taxes each year, while, on the other hand, nate some areas of reform which a.re likely "Corporations in the United States managed there are numerous examples of individuals to require highest priority in any tax re­ to improve their net earnings by 10 percent with annual incomes above half-a-million form program. Without going into great ~e­ during 1968" and the rate of return on in­ dollars who have paid little or no taxes. But ta.11 on the provisions in my own bill, or even vestment has remained steady. But "real" the inequities are not confined to these ex­ necessarily confining myself to them, I per capita. income increased by only about tremes. The fact is, for example, that the would like to suggest some of the areas of re­ 3 percent in 1968 over 1967, according to the compara.bilty of effective tax rates in income form that I feel should receive top priority Economic Report of the President trans­ classes erodes noticeably for income groups in the process of developing the best possible mitted to the Congress last January. above twenty thousand dollars a year. Par­ program of tax reforms. The question whether individual taxpayers ticularly at these high~r income levels, the In general, Mr. Chairman, I feel top prior­ as a group have come to shoulder an undue range of effective tax rates paid by indi­ ity must be given to tax treatment of the proportion of the growing tax burden-more viduals is broad, indicating that a substan­ fabulously large fortunes that a.re continuing than they need to bear and more than they tial number of individuals a.re paying less to be ma.de each year in this country, both should be required to bear-ts being over­ tax than others with roughly equal ability by individuals and corporations. Many of looked and ignored. to pay. these huge fortunes a.re made possible by On this point, I am disappointed to notice, Furthermore, a large majority of individ­ the fact that gaping loopholes in the tax for example, that the extensive study of tax uals with adjusted gross incomes in the 3-5 laws a.bound particularly at the highest in­ reform measures undertaken by the Treasury thousand dollar range are taxed at an effec­ come levels. Department and printed jointly by this Com­ tive rate Of 15-20 percent--the same rate at These loopholes a.re well known. Unreal­ mittee and the Senate Committee on Fi­ which an almost equal majority of individ­ ized capital gains are not taxed at the time nance, contains an extensive analysis and uals in the 10-20 thousand dollar range are of an individual's death, except as part of evaluation of tax reforms and inequities taxed. Considering the substantial difference his estate. Accelerated tax depreciation is within the individual income tax structure, in buying power between $5,000 of a.mended permitted on speculative investments. Large and within the corporate tax structure. But gross income and $20,000 of amended gross percentages of corporate gross incomes in the it does not get at the question of what many income, is there really any wonder at the oil and mineral industries a.re deducted as de­ regard as an inequitable sharing of the tax disenchantment of the "moderate income" pletion allowances. Corporations can treat all burden by individual taxpayers in relation taxpayer? kinds of questionable expenses as deductible to corporate taxpayers. Third and finally, I feel that taxpayer dis­ "business expenses"-a. category which too In my view, we cannot afford to concen­ content is a product of the increasing com­ often includes the costs of lobbying, lavish trate solely on inequities within the indi­ plex! ty of the tax structure. As the Treasury entertainment and travel, and even airing of vidual and corporate tax sectors, and fail to study to which I referred earlier clearly political views. Seven percent of the a.mount examine whether equity and rationality pre­ points out, the standard deduction, which is corporations and individuals invest in capi­ vail with regard to comparative taxation a device intended to simplify the tax form tal expansion ts written off as a tax credit. levels between these two major taxpaying for most taxpayers, was once used by over 80 Unfortunately, the undesirable effects of sectors. I realize this is a very complex ques- percent of those who filed returns. Due to these loopholes do not end with the tax CXV--583-Part 7 9250 EXTENSIONS OF REMARKS April 15, 19 6 9 avoidance they permit. Many economic ex­ STOP THE FLOOD OF MAIL SMUT The floodtide of pornography could reach perts feel capital investment credits and legitimate motion picture places next. A methods of accelerated depreciation accen­ swedish film depicting a sexual a.ct already tuate cycles of deflation and inflation, acting HON. GLENARD P. LIPSCOMB has reached New York City. It was rejected particularly as stimuli to added investment OF CALIFORNIA just two years ago. and production in periods of inflation when It is not a coincidence that forcible rape the economy is already overheated. IN THE HOUSE OF REPRESENTATIVES increased 14 percent in the United States Through misuses of the "business ex­ Tuesday, April 15, 1969 last year-and much of this crime is unre­ pense" deduction, the public and the govern­ ported because of embarrassment. ment are put in a position of encouraging and Mr. LIPSCOMB. Mr. Speaker, the Al­ The time has come to act decisively in helping to finance excessive advertising and hambra, Calif., Post-Advocate, which stamping out the menace of filth in our consumption, particularly of products like serves an area of the congressional dis­ nation. If the three branches of government cigarettes which can be harmful to health. trict it is my privilege to represent, re­ will not assume the responsib111ty, the people The lobbying efforts of corporations, and the cently carried a forceful and timely edi­ must. political propaganda of individuals like Mr. torial entitled "Stop the Flood of Mail The danger of this is that the public re­ H. L. Hunt and corporations such as Ever­ Smut." action could be so violent that censorship sharp-Shick which make a practice of mix­ will be the result instead of the smut con­ ing political views with product advertis­ The Post-Advocate is to be commended trol that is possible without it. ing are also subsidized by the public through for speaking out vigorously against the the "business expense" deduction. While the :flood of pornographic literature that is Congress in 1962 wisely attempted to cut :flowing through the mails. This problem EEOC SUCCESSFUL IN EMPLOY­ down the list of travel and entertainment has reached a point where it is a national activities that can be included in the "busi­ MENT CONCILIATION WITH LOCK­ disgrace. HEED ness expense" deduction, the government and Under leave to extend my remarks, I the public still subsidize too much high liv­ ing by businessmen, and more needs to be submit the editorial for inclusion in the done to close the door on this situation. RECORD: HON. JAMES C. CORMAN In addition to these lines of approach, I [From the Post-Advocate (Calif.), Mar. 20, OF CALIFORNIA would like to urge the Committee to give 1969] IN THE HOUSE OF REPRESENTA'T'J:VES serious consideration to establishing progres­ STOP THE FLOOD OF MAIL SMUT Tuesday, April 15, 1969 sive tax rates for capital gains. The effective Ugh! We are terrified! flat rate of 25 % on long term capital gains is Let's stop smut and fast! Mr. CORMAN. Mr. Speaker, I am con­ probably the most useful tool of all for those In recent weeks panderers have literally cerned about recent charges that Chair­ who are intent on building fortunes without L. paying commensurate income taxes. While solicited thousands of decent families around man Clifford Alexander, Jr., and the the United States of America right in their there may be considerable technical difH­ Equal Employment Opportunity Com­ homes in a new high level of permissive im­ mission as been "harassing" the busi­ cul ties involved in applying a higher rate to morality. net capital gains as the amount of such ness community. gains increases, I believe the effort ought The families have received in the mails a to plainly-addressed envelope that contains EEOC's efforts to persuade the busi­ be made. If it is done, however, it would be nauseating, repulsive filth illustrating all ness community to comply with the law more than ever important to change the of the land which prohibits employment present provision which permits capital kinds of sexual activity and depravity. Pur­ gains to go untaxed as such at death, so that pose of the mailing is to sell pornographic discrimination can hardly be considered there will no longer be the incentive for material that is even worse. harassment. people of advancing years to avoid selling The pornography is mailed from California EEOC has no enforcement powers but holdings which show substantial long term and East Coast cities. It seeks legitimacy by must rely on persuasion through the profit. comparing its "literature" to the volumes in conciliation process after charges of dis­ Finally, I strongly support proposals to in­ the Vatican Library and the British Museum. crimination have been filed. Or, it can stitute a minimum income tax, and such a It could be opened by the youngest, most in­ nocent child in the house. hold public hearings to discuss discrim­ proposal is contained in the tax reform leg­ inatory job patterns in industry and islation I have sponsored. But it would be a The new floodtide of obscenity that is mistake to fall back solely on this approach mailed, whether requested or not, is the last unions as it did in Los Angeles in March, as a solution to tax problems. The tax loop­ straw in the boldness of the pornographic and urge their respective leadership to holes I have cLted, as well as others, are the seducers. The permissiveness that has made it develop and implement an effective af­ ultimate cause of inadequate taxation on possible rests squarely with the Supreme firmative action program. many large incomes, especially when several Court, which opened the gates to filth with a I would like to call to the attention of tax loopholes are claimed in tandem by a landmark 1957 decision. Some blame also rests on the shoulders of my colleagues on both sides of the aisle single taxpayer. A minimum income tax a recent and notable example of busi­ should be looked upon only as a final safe­ the Congress, which has failed to define guard to insure that if all other tax provi­ standards of obscenity or regulate the flow ness-government cooperation where the sions fail, every taxpayer will pay some taxes. of filth in interstate commerce. If necessary, company involved worked with EEOC to This should, however, be a supplement to Congress could even limit the ability of the increase and upgrade its minority work action to close the tax loopholes that are the Supreme Court to review state pornography force. source of the problem, not a substitute for decisions. Only recently, the industrial relations such action. A bill introduced by Rep. Bob Wilson, Re­ director of the Lockheed-Georgia Co., Neither should a minimum income tax be publican of California, which would control Mr. C. A. Jenkins, had this to say follow­ looked upon as major source of added reve­ the mailing of smut across state lines, is an nues. Its major positive effect is likely to be essential minimum in the fight against inter­ ing a conciliation agreement negotiated psychological, not financial. Nevertheless, as state smut. Mr. Wilson should be applauded by EEOC with his company: I have pointed out, we face a national crisis for his leadership and supported by the peo­ Lockheed is pleased but not content with of confidence to which tax inequities con­ ple his measure would help. The post office its equal employment opportunity accom­ tribute substantially, and changes which also should crack down harder on interstate plishments. We are excited about our most alone promise to strengthen public confi­ smut peddling, just as it does against lot­ recent developments in the field of human dence deserve no less serious and prompt teries and racing results. relations- consideration than those which promise Some of the blame for the new boldness added revenues. of the smut merchants rests with the state Mr. Jenkins said- Tax reform is indeed an idea whose time legislatures. To this day police departments particularly those developed in 1968 with the has come. Moderate income families particu­ in many areas do not have definitive legal assistance of EEOC. larly are chafing under the real economic guidelines to evaluate smut, particularly its hardships the current tax system is im­ sale to minors. The innovations developed through the posing upon them, and the psychological And not the least of the blame for the smut assistance of EEOC to the Marietta, hardships they also bear as a product of the pollution lies at doorsteps of decent per­ Georgia division of Lockheed, include: blatant inequities in the system. If we fall sons who fail to speak up. Apathy and silence A new individual development program now to meet their needs and expectations, in the fight against obscenity is tantamount was designed to provide formal, individu­ and if we fail to live up to their ideals of to support for the seducers. ally tailored programs for specific devel­ rationality and equality, let us not marvel The breakdown of morality that under­ opment of an employee's potential for in the future at the wave of repudiation, al­ m ines our nation is a major crisis. Youths ready gathering in the land, that will as­ can buy the filthiest of publications with advancement. Revisions in testing pro­ suredly crash with determination not only ease, or see smutty movies at will in most cedures brought about more effective against the policies of the Federal govern­ states. Now entire families are exposed to selection of employees for training and ment but against the very system itself. the immoral filth through the mails. promotion. April 15, 1969 EXTENSIONS OF REMARKS 9251 Important advancements were made in Congress in view of the debate involving eluded the initial single-source award to the the anti-ballistic-missile system. Colt Manufacturing Co. that permitted that the company's established management firm to make profits of from 13.4 per cent to selection procedures. In order to make it available I am in­ serting it in the RECORD at this point: 19.6 per cent on a negotiated contract. A financial planning and counseling CONFLICT OF INTEREST service was designed to deal with the Now THERE Is AN ISSUE IN ABM DEBATE­ FOES EMPHASIZE PAST FAILURES A Senate armed services subcommittee saw "root causes" of financial difficulties, and a "conflict of interest" problem for former to ameliorate garnishment action against (By Clark Mollenhoff) Navy Secretary Fred Korth in the purchase of employees-the first known service of WASHINGTON, D.C.-A decade of docu­ the X-22 vertical take-off and ls.nding plane its kind in private industry. mented cases of waste, mismanagement and from the Bell Corp. Korth, a former director New promotional profiles and career corruption at the Pentagon is plaguing the of Bell, couldn't get his own subordinates to paths posters opened communications for Nixon administration as it faces the first award the contract so he turned it over to his all segments of the work force. major political test on the Safeguard anti­ superior, Deputy Defense Secretary Roswell Other unique accomplishments in­ ballistic missile (ABM) program. Gilpatric. While the United States has constructed Gilpatric then consulted with Korth, and cluded formal career counseling for and maintained what many call "the most made the decision to overrule recommenda­ hourly and salaried employees and the formidable military machine in history," tions for Douglas Aircraft, according to the prehiring training and employment of the reports of Congress have documented a committee report. more than 500 persons previously con­ decade of multi-billion-dollar blunders that The result was that Bell got the con tract sidered underemployed or unemployable. have suddenly become the targets of dozens despite the views of highest ranking Navy A Federal contract was negotiated to of major political figures. officers that Douglas had the best plane, and establish an industrial plant-the Ven­ The new focus of attention on the "mili­ at a price that was at least $350,000 to $1 tary-industrial complex" is creating alarm million lower than Bell's. tura Manufacturing Co. in San Antonio, in the highest circles in the Ni.xon adminis­ It took a threat of public hearings by Sen­ Tex.-for employment of disadvantaged tration. ator John McClellan's (Dem., Ark.) perma­ and hard-core unemployed. Lockheed At the White House, at the Pentagon, and nent investigating subcommittee to stop Air supplied key staff members for guidance in Congress there ls real concern that a Force Secretary Harold Brown, one of the and assistance. By the end of 1968, a flaming reaction against instances of Penta­ so-called McNamara Whiz Kids, from award­ total of 113 Mexican Americans and Ne­ gon blunderings and mismanagement under ing a $60 Inilllon computer contract to the groes were trained and employed. the last two administrations could create high bidder, IBM. All three other competing Progress was re:fiected in specific ad­ serious problems in obtaining public and firms, RCA, Honeywell and Burroughs-were congressional support for funds the admin­ well qualified and had bid about half of vancement of job opportunities for Ne­ istration feels are necessary to meet American IBM's bid on this $120 million contract. groes within the Lockheed-Georgia work military commitments. The Joint Committee on Atomic Energy force. That concern became alarm in the last in several unanimous reports cri ticlzed Mc­ During the 12-month period ending week, with the highest level White House Namara for pouring more than $200 million December 31, 1968, 1,614 Negroes were and Pentagon personnel giving much of into a conventional aircraft carrier, the John hired, raising the total Negro work force their time to the job of smothering the blaze F. Kennedy, rather than into a nuclear-pow­ to 2,636. The number of Negxoes holding of concern that could seriously harm Presi­ ered carrier. The committee charged that the dent Nixon's political future. John F. Kennedy was obsolete in a nuclear exempt salaried jobs increased from 95 Republicans fear that the new President age. to 163. Negro supervisors increased f ram could be the political fall guy for past Pen­ TFX CONTROVERSY 31 to 54. tagon blunders. Senator McClellan has dubbed the TFX More than 1,450 Negroes were pro­ Reaction against the military-industrial warplane "a multi-billion-dollar disaster." moted to higher rated jobs, substantially complex has included speeches by such po­ After waste of $1 billion or more, the Navy aided by the new career counseling litical figures as Senator Edward M. Ken­ version, the F-lllB, was canceled as too services. nedy (Dem., Mass.), Senator Edmund S. heavy, too costly and inadequate to meet As part of the internal promotion Muskie (Dem., Maine), Senator George Mc­ Navy mission requirements. programs, minority employees completed Govern (Dem., S.D.) and former Vice Presi­ The bomber version ls reported nearly as dent Hubert Humphrey. inadequate for its mission, and it has been more than 2,200 prehire, skills, tech­ The reaction ls growing in an inflammable sharply cut back. The plane has only 70 per nical, and career development training atmosphere of frustration resulting from cent of the range of present B-52s and B-58s, programs. the high costs and casualties of the long and and failed to meet the bomb-load perform­ In announcing the successful agree­ inconclusive Vietnam war and from new ance and speed criteria. ment, Chairman Alexander stated: instances of scandalous military buying The Air Force ls going ahead with purchase practices. By working closely together Lockheed and of F-lllA planes because there ls no alter­ EEOC made significant steps forward. This A $1 BILLION BOO-BOO native, despite the fact that the cost of the was the result of mutual respect on the part Within the last few months there have plane has jumped from $2.8 m1111on to about of industry and Government. been new hearings and reports that have $10 m1111on each and does not meet original revealed that the Army made what Repre­ performance specifications. Chairman Alexander is to be com­ sentative Samuel Stratton (Dem., N.Y.) called Also, it was noted by such critics as Sen­ mended for the progress the Commission a "billion-dollar boo-boo" in construction of ator John J. Wllliams (Rep., Del.) and Rep­ made under his chairmanship in assist­ the Sheridan tank and its Shillelagh missile resentative H. R. Gross (Rept., Ia.) that ing the business and labor community to and 152-mm. gun-launcher. there were serious "conflicts of interests" by The blunder continued for nearly ten two of McNamara's top subordinates-Dep­ carry forward our national purpose as uty Secretary of Defense Gilpatric and Navy defined in title VII of the 1964 Civil years, with high ranking army officers using a secrecy stamp to hide their fumbling from Secretary Korth. Rights Act. Congress. Correspondence established that Gilpatric, a former lawyer for General Dy­ It will indeed be regrettable if vacilla­ even when the lack of relia.bili ty of the namics, took a full role in making the TFX tion and confusion replace solid accom­ tank and missile system were obvious to a decision for General Dynamics. plishment in the elimination of racial command using them, the officers put the LOAN TO FIRM discrimination in employment. tank into a production schedule to avoid Korth, former president of Continental Na­ the possibility of having the budget cut. tional Bank of Fort Worth, Tex., counted The waste in this case has been estimated General Dynamics among his bank's best at $1.5 blllion as a minimum, with some customers. Only a few months before he be­ DECADE OF ARMS BLUNDERS NOW saying it could reach $5 billion. The blame came Navy secretary, Korth personally had AN ISSUE IN ABM DEBATE in this case is almost all wi t.h high Army approved a $400,000 loan to General Dy­ officers who continued to pour funds into a namics. pet project in the faoe of plentiful evidence Senator Stuart Symington (Dem., Mo.), HON. ff. R. GROSS that it was a failure. originally a defender of the TFX contract, OF IOWA Likewise, there were high ranking Army now calls it a blunder and declares that all IN THE HOUSE OF REPRESENTATIVES officers at fault along with political ap­ versions of the contract should be canceled pointees in the waste of more than $40 mil­ to let the Air Force move into a long-sought Tuesday, April 15, 1969 lion on contracts for the M-16 rifle. Advanced Manned Weapons System-a long­ Mr. GROSS. Mr. Speaker, the follow­ Under former Defense Secretary Robert range, high-speed, manned bomber. McNamara, the Pentagon awarded a contract Symington, a former secretary of the Air ing article in the April 13, 1969, issue of for 240,000 M-16 high-velocity rifies to the Force, has become a strong critic of a whole the Des Moines Register, by Mr. Clark Hydra-Matic Division of General Motors for range of past decisions. He told the Senate Mollenhoff, one of the best informed $56 mllUon-a full $20 million more than that the U.S. has spent over $23 billion on journalists in Washington on matters the $36 million bid of the Maremont Corp. missile systems deployed and then aban­ dealing with the Department of Defense, of Saco, Maine. doned. is well worth reading by all Members of Other bungling on the M-16 contract in- Senator William Proxmire (Dem., Wis.) has 9252 EXTENSIONS OF REMARKS April 15, 1969 been critical of the cost overruns of about $2 supported by such influential Senate Demo­ fleet issues of particular concern to my billion on the C-5A, the world's largest air­ crats as Richard Russell (Dem., Ga.), chair­ craft. That contract was a McNamara man of the Senate Appropriations Commit­ district, as well as the current major decision. tee, McClellan, and Henry M. Jackson (Dem., national and international issues. In the It has been pointed out by Senator Edward Wash.), a high-ranking member of the Senate multiple-choice questions, many re­ Kennedy tha.t there have been studies of 13 Armed Services Cammittee as well as the spandents chose several alternatives. major aircraft and missile programs that Joint Committee on Atomic Energy. Mr. Speaker, I wish to include here in show " only four programs, totaling $5 billion, The Nixon administration is seeking to the RECORD, the tabulated results of this could be relied upon to perform at more than keep the ABM and defense appropriations poll: 75 per cent of their specifications." fights away from the past problems of waste, "Five, costing $13 billion, failed 25 per cent mismanagement and corruption in the last RESULTS OF CONGRESSMAN GILBERT'S 1969 more often than promised." Kennedy told decade, and place the blame for those scan­ CONGRESSIONAL QUESTIONNAIRE the Detroit Economic Club last week. "Two, dals on McNamara or the milttary or civilian [In percent] costing $10 billion, were dropped within three subordinates who made the decisions. FOREIGN POLICY years because of low reliability; and two, "If the ABM fight is settled on it.s merits, 1. What kind of settlement would you after an outlay of $2 billion, were dropped I am sure the President can convince the favor for ending the war in Vietnam? outright because they performed so ineffec­ people that this is only an advanced research tively. and development project and it is the mini­ a. A coalition government in Saigon, to "This same study revealed that complex mum we can do in the ltght of the soviet's include the National Liberation electronic systems generally cost 200 to 300 SS-9," a White House aide said last week. Front ------25 per cent more tha.n the Pentagon predicts, b. An agreement b~tween our govern- MILLER'S VIEW and are generally deUvered to the military ment and Hanoi to withdraw all two yea.rs later than promised," Kennedy said. Senator Jack Miller (Rep., Ia.) said he outside troops, so the south Viet­ is hopeful that the discussions of defense namese can fight it out among CITIES NEED AID spending and the military-industrial com­ themselves ------25 Kennedy contrasted the waste at the plex "will be kept in perspective." c. Withdrawal on our part, whether or Pentagon with the need for more blllions for Miller declared that we need a great in­ not we reach agreement with the the poverty areas in American cities, and he dustrial complex to build today's weapons, other interested parties______15 pictured the "Safeguard" ABM as Ukely to and we need a well trained military corps d. No negotiation until we have won be more of the same waste. to use them. mmtary victory______15 President Nixon and Defense Secretary "The real point of concern is that this Undecided ------20 Melvin Laird are concerned that they may power be managed in such a way as to meet 2. What policy should the United States appear to be defenders of the milita.ry­ our security requirements without allowing adopt for assuring stability in the Middle industrial complex with all of its worst impli­ it to lead to excesses and abuses--well-in­ East? cations of favoritism and impropriety. tentioned or otherwise--whtch jeopardize our The critics of Mr. Nixon's ABM decision a. A formal alliance with Israel, possi- society," he said. bly including its admission to lean heavily upon quotations from the late He declared that much of the problem General Dwight D. Eisenhower warning that NATO, that would assure our inter­ arises because "those with little or no experi­ vention in the event of an Arab "We must guard against the acquisition of ence with the military are often so over­ unwarranted influence, whether sought or whelmed by the immensity of our require­ attack ------14 unsought, by the mllitary-industrial ments as to feel helpless." b. A public declaration that we would complex." Miller said the U.S. cannot expect all right intervene on Israel's side in the White House officials say that those push­ decisions by the military or civilian leaders event that the Soviet Union openly ing for sharp cuts in the military budget in the Pentagon in dealing with highly so­ intervened for the Arabs______13 seldom note that, in the same speech, General phisticated weapons systems. But he noted c. Press for a negotiated settlement Eisenhower also said: "Our arms must be that Congress has provided a continuing re­ through the United Nations______29 mighty, ready for instant action so that no view, has focused attention on the major d. Join with the Soviet Union to guar­ potential aggressor may be tempted to risk blunders of the past, and has forced the antee formally the terms of a peace his own destruction." Defense Department to correct some wrong settlement ------17 One high ranking military officer said last decisions. Undecided ------27 week that "The critics from the scientific a.nd Representative Gross declared that "there DOMESTIC POLICY academic field seldom note that the Eisen­ are dangers inherent in having high ranking hower warning on the military-industrial 3. What should the Federal Government military officers being recruited for defense do about in:flation? complex was coupled with a warning against industry, and in having executives of de­ becoming 'the captive of a scientific-techno­ fense industries working at the Pentagon. a. Legally control prices and wages____ 35 logical elite.' " "Congressional committees and the Gen­ b. Maintain high interest rates and These will be points that President Nixon eral Accounting Office must be constantly taxes, including the Surtax, in an and Defense Secretary Laird will stress as alert to the possible confilcts of interest. A effort to reduce consumption and they campaign actively in the next few weeks few prosecutions by the Justice Department slow business expansion______8 for the $800 million in ABM funds they wm would straighten out much of the outright c. Tie Federal salaries, Social Security need for next fiscal year as a part of the dishonesty in this area," Gross said. benefits. welfare payments, Medi­ $7-billion ABM program planned. care and other· outlays to the cost­ of-livlng index______26 NO SCHEDULE d. Nothing, on the grounds that in­ White House Press Secretary Ronald Ziegler CONGRESSMAN GILBERT AN- flation is better than unemploy­ would give no schedule on President Nixon's NOUNCES RESULT OF 1969 CON­ ment and business recession______7 campaign for the ABM nor for the $77 billion GRESSIONAL QUESTIONNAIRE defense budget. Undecided ------24 Laird also plans a major presentation 4. What should the Federal Government before the American Society of Newspaper do about crime? HON. JACOB H. GILBERT a. Increase anti-poverty expenditures___ 9 Editors (A.S.N.E.) late this week. OF NEW YORK From the administration as well as from b . Increase assistance to local police the Republicans in Congress there is ex­ IN THE HOUSE OF REPRESENTATIVES forces, for higher salaries, improved training and better equipment___ 25 pected to be a strong effort to point up that Tuesday, April 15, 1969 the series of scandals involving waste and [In percent] corruption flow from the Kennedy and John­ Mr. GILBERT. Mr. Speaker, I recently c. Revoke the constitutional guarantees son administrations. sent to my constituents in New York's recently affirmed by the Supreme Also, some special attention is expected 22d Congressional District, Bronx, my Court to assure representation by to be given to Gilpatric, whose activities annual congressional questionnaire. The counsel, avoid coercion in the ex­ for General Dynamics and whose role in the response was immediate and enthusias­ traction of confessions and end il­ TFX contract represent one of the docu­ legal wiretaps, searches and sei- mented problems of the "miUtary-industrial tic, and I want to thank the many thou­ zures ------8 complex." sands who were sufficiently concerned to d. Ena.ct more stringent laws to reduce He has turned up as a member of Ken­ take the time and trouble to complete the careless trafficking in firearms__ 19 nedy's Ad Hoc Committee of New Yorkers and return this poll. Particularly grati­ Undecided ------39 Against ABM. This ts regarded by the Nixon fying was the high degree of respondents SPECIAL ISSUE administration as a fortunate occurrence who further elaborated their views with since it presents the possibility for dra­ notes and letters. I regret that space Would you approve of a Constitutional matically planting the "military-industrial amendment which would substitute Popular complex" label on one of those closest to a limitations make it impossible for me to Election of the Presidency for the present man they regard as the most likely Dem.o­ share these comments with my col­ Electoral College? leagues, but I can testify to their worth­ :lratic candidate in 1972. 'Yes ------77 In the fight over the ABM and the defense while nature. No ------11 'udget, the Nixon administration will be My questionnaire was written to re- Undecided ------12 A'JYY'il 15, 1969 EXTENSIONS OF REMARKS 9253 NATIONAL PRIORITIES who I hope will see fit to recommend and read what is going on. Please, Hank with [In percent] this kind of amendment to the Consti­ all the power that God has vested in you think about it and then act. What is the order of importance that you tution. Sincerely, Your Old Neighbor, ascribe to the following budgetary items? ROLAND TuFFY ZINKEL. Replies in Priority Order: 1. Aid to public schools and higher edu­ WHAT WILL HAPPEN TO SILVER WHAT WILL HAPPEN TO SILVER DOLLARS? cation. DOLLARS? United States government vaults hold ap­ 2. The elimination of slums and low­ proximately 3,000,000 silver dollars, a major­ income housing. HON. HENRY C. SCHADEBERG ity of which were struck in Carson City, Nev. 3. Health care and health programs. Coins from this mint a.re desirable to col­ 4. Anti-poverty program, including job OF WISCONSIN lectors, and some of them sell at fairly high training. IN THE HOUSE OF REPRESENTATIVES prices. 5. The Vietnam war. Tuesday, April 15, 1969 Government officials have not decided what 6. Increased Social Security benefits. method will be used to dispose of them. 7. National defense (apart from Vietnam). Mr. SCHADEBERG. Mr. Speaker, the Among the thousands of suggestions, the 8. Mass transit, including inter-city rail toughest kid in my neighborhood when I most sensible are those which would enable transit. was a boy has taken time to inform me the country's leading national health agen­ 9. Space exploration. ices, such as mental health, heart, cancer, 10. Highway construction. of a program which he is vitally inter­ ested in. I would like to share these and others, to profit from the sale of these Mr. Speaker, if I were to make some thoughts with you: dollars. observations on these results, they would KENOSHA, WIS., Spokesmen for these groups and repre­ March 24, 1969. sentatives of the coin-collecting fraternity be the following: have testified at Senate hearings on the First. Three-fow.iths of those answer­ Congressman ScHADEBERG, Washington, D.C. disposition of these coins. ing the question indicalte clearly their DEAR HENRY: I don't recall ever writing to The government is fearful that abuses opposition to continuing the war in Viet­ you, but today ls a must. I was very happy might take place in the disposition, but there nam to win a military victory. They share to see you at the State convention for the must be a way Lt can be done under super­ my view thalt we should act with dispatch Disabled American Veterans last June. We vision and still help these grO'llps. to get out of Vietnam. were all happy that you took time out of Another suggestion is that the coins be Second. A plurality of respondents your busy schedule to spend a few moments sold as collector items to numismatists and favors our pursuing an effort to achieve with us. During the campaign I had the priv­ curiosity seekers at three or four times their peace in the Middle East through the lege of telling my friends that I knew you face value. This would easily give the govern­ when you were a kid with a running nose. ment an approximate profit of $10,000,000. auspices of the United Nations. A clear Also that you were born in the house on the Your suggestions should be sent to your majority, however, appears to accept the next street back of ours. I also told them that congressman and senators so that they will view that the United States has a re­ if they returned you to Congress, they could know your feelings regarding the silver sponsibility to assure Israel's integrity rest assured that there was one honest poli­ dollars. and safety. That is also my position. tician in Congress. Yes when I think of the Third. A substantial plurality of re­ good old days back home in Manitowoc it spondents is sufficiently concerned about pulls on the heart strings a little. Just to OUR MODERN DUTCH BOYS give you some C1f the old food for thought. inflation to favor price and wage con­ Barney the horse, riding down the hill next trols. Combined with the number which door on the sled you kids had that we called HON. ANCHER NELSEN favors tying various Federal benefits to rooster. The old Garfield School, the Soo Line OF MINNESOTA a cost-of-living index, I think there is swiming hole, and the wreck of the Midnighit ample indication that inflation is on peo­ Limited. Oh yes the day that Tuffy Zinke! IN THE HOUSE OF REPRESENTATIVES ple's minds. In my opinion, the most had a new sling shot and tried it out on the Tuesday, April 15, 1969 sensible approach to check inflation is to weather vain on your barn. Remember I missed and the stone went through your Mr. NELSEN. Mr. Speaker, those in­ cut back in military expenditures and window, hit your Dad while he was shaving clined to take a pessimistic view about to channel more Federal funds into do­ and he cut himself. Well the Blacksmith put the goodness of young people today just mestic programs. his kid over his knee heated up his butt have not met our kids. The people of Fourth. More than three-fourths of and took out the window and repaired it. the Second District will be everlastingly responden ts answering questions on This is what parents should do today. The grateful for the tremendous help being crime took the sensible view that we days of the nickel for the show and a nickel provided by our young people in fighting should improve our police forces and re­ for popcorn are gone but not forgotten. To­ ~evastating :floods. As a case in paint, I duce careless trafficking in firearms. An day Hank I am writing about Three Million Dollars. Enclosed is clipping from local paper. mclude for the RECORD an editorial by overwhelming majority of respondents As you know, I am blind and travel about Bill Macklin, which appeared in the left no doubt in my mind that we urgent­ like our friend Ed Broxmeier used to only April 9 issue of the New Ulm Journal ly need more foot patrolmen on our not as well. All the rehabilitation I received New Ulm, Minn.: ' streets and in our apartment buildings for my new life I received at Hines V .A. Hos­ OUR MODERN DUTCH BOYS to protect lives and property. We must pital. I learned how to type, such as it is, provide more adequate salaries for but I never typed before in my life. I learned Everyone knows the story of the Dutch Boy policemen. While police protection is pri­ Braille, and how to travel with a cane a.lone. who put his finger in a hole in the dike In general we were taught to be as normal and saved Holland, or part of it. This week marily a matter for local authorities; as other people. On my last visit to Hines Southern Minnesota has a lot of Dutch boys, nevertheless; as U.S. Congressman, I Hospital they were training 30 blind Veterans who are winning praises for their work in have supported Federal funds, training from Viet Nam and they had a waiting list. preventing greater damage than the :flood and equipment to local police depart­ While I was there there was a young man is doing. ments, and I shall continue these efforts. there, blind and minus both hands, he had to Delby Ames, the Springfield postmaster, Fifth. In a question on national prior­ be fed, and helped in the bathroom. Yet at sang the praises of the students who have ities, the overwhelming number of re­ this school he was in high spirits thank God. responded to pleas for help in manning the spondents conveyed their preference for All the teachers, instructors, and personnel dikes in the town, which has stood up were just wonderful to all of us and they to the relentless pounding of the Cotton­ domestic rather than military expendi­ never tired of helping anybody, regardless of wood River since the week end. tures. They ranked aid to education first, the problem. Along with training us they had "We asked for 50 from Southwest State followed by the elimination of slums, a bountiful program of recreation lined up to College at Marshall and 60 came,'' said Ames. health care and research, and anti­ keep all the patients in the best of spirits. "They had to cut off the volunteers." poverty programs. I heartily endorse I suggest that the Three Million Dollars be One young man came in a wheel chair, yet their sense of national priorities. put on sale by the Mint at a Premium, and filled 300 sandbags with soil Monday night. Finally, I think it is important to note the proceeds be used to create more Blind A former Springfield boy, Douglas Bloemke, that 85 percent of those answering the Centers in the Veteran Administration Hos­ who is still crippled by polio, ca.me back to pitals throughout this great country. I was at help his hometown in its hours of peril. question favor the popular election of Wood Hospital last week for my annual ex­ "That lad walked the dikes on his alu­ the Presidency over the present electoral amination, and they were just wonderful to m1num arm crutcher from 9 p.m. until 7 a.m. college system. I have often spoken out me. I am sure they could use a few dollars right up there with the rest of them,'' said in support of such a change and I com­ there to further their program. Hank, not Ames. mend this expression of opinion not only for my sake but for the sake of the young Dr. Don Tostenrud, 1n charge of filling to my colleagues, but to the President, Boys that gave their eyes so others can see sandbags, said he had never seen boys work 9254 EXTENSIONS OF REMARKS April 15, 1969 so hard. It wasn't just college students, have displayed a brand of citizenship which tional America. And he did it all on his either. The Springfield schools t.ook a day should put many of their fellow-Americans own, the very model of the traditional off Tuesday t.o let students work, and they to shame. .t\..merican virtues of hard work and self­ did. One student worked 36 hours without reliance. going home t.o sleep. Twenty-four hours of PRESIDENT DWIGHT D. EISEN­ So now he is gone after a hard year­ steady duty was not uncommon. HOWER: A TRIBUTE long fight against a weakening heart. He It's a well-known story that people are at confounded the medical profession by their best in a crisis. It certainly is true in surviving as long as he did. Of course, he the flood.-WEM HON. CHARLES W. WHALEN, JR. had excellent medical care. But it would OF OHIO have meant little without Ike's tremen­ IN THE HOUSE OF REPRESENTATIVES dous will to live. He was a great American who spent NAVAJO PATRIOTISM PRAISED Tuesday, April 15, 1969 virtually his entire adult life in the serv­ Mr. WHALEN. Mr. Speaker, I would ice of the Nation. like to take this occasion to pay tribute It is a monument-- HON. ED FOREMAN to the memory of our 34th President. OF NEW MEXICO Dwight David Eisenhower was a great The Cincinnati Enquirer editorial­ IN THE HOUSE OF REPRESENTATIVES public servant who had the respect and ized- Tuesday, April 15, 1969 admiration of the American people per­ that when death came to him, it found his haps more consistently than any other stature undiminished in the eyes of his Mr. FOREMAN. Mr. Speaker, today American Chief Executive. countrymen. when college campuses across the Na­ He :first captured these feelings as the tion are being subjected to demonstra­ planner and leader of the invasion of tions on various subjects and especially NATIONAL STUDENTS COMMITTEE Europe and held them for the rest of his ON COLD WAR EDUCATION against the action of our boys in Viet­ life. nam, I am proud to note that a group of His personal popularity was immense Navajo Indians ejected a group from after D-day and, once established, never HON. JOHN M. ASHBROOK their campus seeking to promote their really declined. It remained strong OF OHIO anti-Vietnam theme. enough for him to run for President suc­ IN THE HOUSE OF REPRESENTATIVES As it is pointed out in an editorial of cessfully some 8 years later. the Farmington, N. Mex., Daily Times Ike was an honest and uncomplicated Tuesday, April 15, 1969 on April 10, the Navajo students did not man. And these qualities enabled him Mr. ASHBROOK. Mr. Speaker, a fall for the line a group of San Francisco to achieve his many successes both in number of years ago several national or­ students, calling themselves entertain­ war and in peace. ganizations proposed and supported re­ ers, attempted to voice and disrupt the His direction of the European invasion sponsible courses dealing with education college. This group of Navajo students is cited as the best example of his un­ about communism in the schools. Con­ displayed their belief and support in canny ability to influence people to fol­ trasting the oppressive nature of com­ America by opposing the demonstrators. low his leadership. That war effort in­ munism with our democratic way of life, Mr. Speaker, under unanimous con­ volved men of many nationalities, in­ organizations such as the American Bar sent, I include the editorial of the Farm­ cluding some with major reputations. Association, the American Legion, the ington Daily Times, April 10, 1969, in They were placed under the command Veterans of Foreign Wars, and the Na­ the CONGRESSIONAL RECORD: of a junior American general who was tional Education Association, among HURRAH FOR NAVAJO STUDENTS not even well known in his own Army. others, sought to alert the young people P atriot ism on American college campuses Despite this, the enormously dangerous of the danger to the free world of this is not dead! and complicated operation of retaking alien and totalitarian philosophy. St udents at Navajo Community College in Many F arms, Ariz., provided a reassuring and Europe from the Nazis came off and ex­ To further increase knowledge in this refreshing news story Monday night when ceedingly well. all-important area, the Young Ameri­ they evicted the San Francisco Mime Troupe As President, Ike did not accomplish cans for Freedom, an alert and active from the campus after two skits of a sched­ everything he advocated. No President organization of young Americans who uled performance. ever does. seek to protect and preserve our constitu­ The Navajo Indians didn't fall for t he anti­ But his 8 years in office were a reflec­ tional form of government, established Viet nam war theme of the so-called perform­ tion of the man himself. His tenure was its national students committee on cold ers who one college official said used " obscene characterized by a general tranquillity, war education. The goal of the commit­ gestures and language" and "ridiculed the government and the national anthem." a period of consolidation. tee is to help initiate activities in State Individual Americans have a right to be The 1950's, it turns out, really repre­ legislatures to enact a statute requiring opposed t o the Vietnam war. Most Americans sented a period of transition. We were the successful completion of a secondary are opposed to war in any place. But a gov­ still recovering from the aftereffects of level course on freedom versus commu­ ernmental system which gives individuals a World War II when we were plunged into nism as requirement for graduation. As right to protest certainly deserves a degree of the Korean war. Thus, the stability we an aid toward this end the committee respect not generally associated with campus desired right after the Second World compiled and composed an action kit prot est grou ps. complete with the texts of several State It might be pointed out to the more de­ War was delayed until the Korean con­ monstrative anti-war protestors that the :fiict could be resolved. statutes, the text of a suggested bill, sam­ Indians of this country perhaps have the Ike presided over that transition. To­ ple news releases, suggested texts of res­ most to gain by the cessation of hostilities in ward the end of his term of office, the olutions for organizations of various Vietnam. :first signs of the turbulence that was to types, a selected bibliography of mate­ When it comes to who should be first in mark the sixties appeared. rials of communism, and other pertinent anti-poverty programs which might result at Although a general and a war hero, information. the conclusion of the Vietnam war, few will Ike was a man devoted to peace. It was Also included in the kit is a copy of deny that the Indian population of this count ry in all fairness should be given top he who issued the warning about the mil­ the report of the Committee on Cold War priority. itary-industrial complex just before Education of the National Governors' We can think of no element of our popula­ leaving office, words that have equal va­ Conference of 1963. This report was pre­ tion which has undergone the degradiations lidity today. sented to the National Governors' Con­ and poverty to which the Indian has been It also was Ike who cut back military ference and adopted as presented by the subjected. · expenditures to the bone after ending the unanimous vote of the 51 State and ter­ And yet in times of crisis when the nation Korean war. ritorial Governors participating. The calls for the support of its citizens, the As many were moved to comment dur­ report was the product of an interim Indian has been among the first to answer ing the 5 days of mourning for this great study committee which surveyed the that call. All of us should be proud of the heroism shown by the Navajos and other man, his death may mark the passing of views and activities of more than 200 in­ Indians who have served in the armed forces another era in our history. dividuals, institutions and organizations of this country. Ike was the storybook hero come true. active in cold war education. Included in Despite their generally stoic mannerisms, The product of small-town America, he the survey were major educational in­ the students of Navajo Community College became part and parcel of the interna- stitutions of the Nation engaged in some April 15, 1969 EXTENSIONS OF REMARKS 9255 facet of cold war education; those en­ on necember 3, 1963. As is usually the case [From the Miami (Fla.} Herald, Apr. 13, gaged in official stimulation of cold war with such treaties, military offenses are ex­ 1969) cluded. There are thus no grounds for re­ education, including Governors, Mem­ questing the extradition from Sweden of DESERTERS AsK DEAD Gl's DAD FOR Am bers of Congress, officials of the execu­ military absentees from the United States NEW PORT RICHEY.-Before dying in Viet­ tive branch agencies having concern in armed forces. nam, Arthur Moody's son told him the war this area, and local-level educational and According to our information, Sweden was just. But the American Deserters' Com­ governmental leaders, along with other does not grant permanent residence to Amer­ mittee in Sweden is asking Moody to help individuals and organizations from the icans who are in violation of the United end "the senselessness and the futility." educational, labor, and business fields. States Selective Service Act. In any event, And, according to a letter Moody received The report of the National Governors' this offense also is not covered by the ex­ from the deserters, he may be one of hun­ tradition treaty. dreds of grieving parents who will be asked Conference in 1963 by its committee on Our Embassy in Stockholm has had con­ to put pressure on the President and Con­ cold war education was but another re­ siderable success in convincing military ab­ gress to end the war. sponsible effort to emphasize the urgent sentees they should return to United States Arthur "Butch" Moody III, 22, died in importanee of learning the foundations military control and face the consequences Vietnam in 1965. This week his father got a of American freedom while at the same of their acts. The absentees return volun­ letter addressed to "the Gold Star Mothers time studying the philosophy, strategy tarily and must take the initiative in con­ of America, surviving widows, as well as other and tactics of the international Commu­ tacting an Embassy officer for advice and relatives." assistance, if needed. American deserters in The deserters said they were appealing to nist movement. Sweden know that they can arrange to re­ The effort by the Young Americans for this group "since you have directly suffered turn to military control with the help of a tragic loss, a loss which is made even more Freedom to encourage education in this the Embassy and about 40 have done so to tragic since it resulted from a futile and area is certainly to be commended. They date. senseless war." should be aided by all those who would If I can be of further assistance, please The letter-signed by the American De­ approach the grave danger of interna­ do not hesitate to let me know. Sincerely yours, serters' Committee, Stockholm, Sweden­ tional communism by first of all learning WILLIAM B. MACOMBER, Jr., asks the survivors "to force our government the very nature, strategy, and tactics of to cease and desist in the blood war in Viet­ Assistant Secretary for nam, an aggression against the Vietnamese the enemy we face. Congressional Relations. people." [From Human Events, Apr. 5, 1969) The letter urges: "Write your representa­ tives and senators in Congress and demand· ON MILITARY DESERTERS: SWEDEN'S DOUBLE SWEDISH HAVEN FOR DESERTERS that they decisively act to put an end to the STANDARD Vietnamese conflict. SiIIlilarly, turn to Presi­ (By Paul Scott} dent Nixon with the request that he stop HON. JOHN R. RARICK In handling military deserters and refugees the war in Vietnam, thereby showing the same resoluteness of decision as did Presi­ OF LOUISIANA from foreign countries, Sweden has operated under a double standard. dent Eisenhower during the Korean conflict." IN THE HOUSE OF REPRESENTATIVES While asylum is granted American military The committee asks relatives of dead sol­ Tuesday, April 15, 1969 deserters, the Swedish government has gone diers to "convince your friends and ac­ out of its way to turn over to Russia military quaintances of the senselessness and the fu­ Mr. RARICK. Mr. Speaker, Sweden, refugees that it requests. tility of the war in Vietnam." It suggests by admitted count, has volunteered A study made by the Senate Armed Services this is the way to "fulfill the legacy of your "privileged sanctuary" to several hnn­ subcommittee on Sweden's handling of mili­ dear departed ones, and also that of other dred U.S. milita.ry deserters and draft tary refugees and deserters highlights this young Americans who have perished on the dodgers from service to their country. double standard, stating: battlefields of far off Vietnam. "Not only is the policy of accepting and "It is your moral responsibility," the com­ An inquiry directed to the State De­ helping support U.S. military deserters one mittee says, "to preclude additional thou­ partment as to the existence of an ex­ of choice on the part of the Swedish govern­ sands of American families from suffering tradition treaty with Sweden brought a ment, but it is a policy which has not been the tragic loss of fathers, husbands, sons guarded reply from State, professing consistently followed in the past. and brothers siIIlilarly as you have. Only the existence of a treaty but that mili­ "The subcommittee has noted that the your decisiveness and civic courage can help tary absenteeism was not grounds for ex­ Swedish government disregarded humani­ put an end to the unjust war" which is tradition. tarian consideration regarding military robbing America of "the cream of her man­ refugees in the immediate post-World War II hood.'' Interestingly enough, a report from period. This involved the famous 'Baltic The deserters say they "found in ourselves the Senate Armed Services Subcommit­ affair.' sufficient courage and determination to re­ tee indicates that the Swedish Govern­ "According to accounts available to the fuse to obey the commands of our govern­ ment, following World War II, disre­ subcommittee, approximately 3,000 German, ment." They add: "Although compelled to garded all humanitarian consideration Estonian,· Latvian, and Lithuanian soldiers seek asylum, support and work here in to the military absentees from Germany, risked their lives in crossing the Baltic in Sweden, we would prefer to live in our home­ Estonia, Latvia, and Lithuania and in rowboats. They went to Sweden seeking land provided we could live and work there the infamous "Baltic Affair" extradited asylum from the almost certain fate of peacefully, as here." Siberia or slaughter which awaited them They can stay in exile, says Moody, and 3,000 military refugees from these Eu­ if captured by the Russians. they need not have wasted the postage. ropean countries to Russia where they "In callous disregard of the fate of these "Anybody who can't serve their country were exeeuted. military refugees, Sweden, in compliance to the best of their ability belongs in Sweden If our State Department really wanted with Russian demands, turned over these or Russia or some pla~e like that," Moody the return of these deserters, I am sure refugee soldiers to the Russian government. said. the Swedes could oblige by following the "In other words, the Swedish government "Butch was a professional soldier. I know chose, in the Baltic affair, not to give how he felt. In his letters he said this was earlier preeedent with the Soviets. sanctuary to the German, Estonian, Latvian a just war and if we didn't fight it there I include State's correspondence, Paul and Lithuanian troops who were actually in we would some day be fighting in our own Scott's column of April 5 from Human Sweden at the time and chose, instead, to backyard." Events, a clipping from the Miami Her­ consign them to Russian authorities. Moody-himself a disabled veteran-said: "In contrast, the Swedish government to­ "I'm sick and tired of protesters. I protest ald, and the Convention on Extradition day chooses to grant sanctuary to deserters the protesters." Between the United States and Sweden: and defectors from the Armed Forces of the DEPARTMENT OF STATE, U.S." Washington, D.C., January 24, 1969. In discussing the motives of the Swedish SWEDEN EXTRADITION Hon. JoHN R. RARICK, government in establishing this double Convention and protocol signed at Wash­ House of Representatives, standard, the subcommittee report con­ ington October 24, 1961; Washington, D.C. cludes: Ratification advised by the Senate of the DEAR CONGRESSMAN RARICK: Secretary "One can only speculate as to the motives United States of America October 22, 1963; Rusk asked that I reply to your letter of of the Swedish government in sending thou­ Ratified by the President of the United January 13 asking whether there is a re­ sands of World War II refugee soldiers to States of America October 29, 1963; ciprocal extradition treaty with Sweden a.nd, Russia and the fate awaiting them, while Ratified by Sweden April 27, 1969; if there is, what steps have been taken to today the Swedish government gives aid and Ratifications exchanged at Stockholm De­ extradite the military deserters and draft­ coIIlfort to deserters and defectors who cember 3, 1963; dodgers who have gone to Sweden. have fled to Sweden to escape U.S. military Proclaimed by the President of the United There is a ~eaty on extradition with jurisdiction and punishment for their States of America December 20, 1963; Sweden. This convention entered into force crime." Entered into force December 3, 1963. 9256 EXTENSIONS OF REMARKS April 15, 1969

A PROCLAMATION BY THE PRESIDENT OF THE papers; the forgery or falsification of official State authorize prosecution of such offense UNITED STATES OF AMERICA acts of government, of public authorities, or under corresponding circumstances. Whereas a convention on extradition be­ of courts of justice, or the utterance of the "3. The words "territorial jurisdiction" as tween the United States of America. and thing forged or falsified. used 1n this Article and in Article I of this Sweden, together with a related protocol, was "13. The counterfeiting, falsifying or al­ Convention mean: territory, including terri­ signed at Washington on October 24, 1961, tering of money, whether coin or paper, or torial waters, and the airspace thereover, be­ the originals of which convention and pro­ of instruments of debt created by national, longing to or under the control of one of the tocol, being in the English and Swedish state, provincial, or municipal governments, Contracting States; and vessels and air­ languages, are word for word as follows: or of coupons thereof, or of bank-notes, or the craft belonging to one of the Contracting utterance or circulation of the same; or the States or to a citizen or corporation thereof "CONVENTION ON EXTRADITION BETWEEN THE counterfeiting, falsifying or altering of seals when such vessel is on the high seas or such UNITED STATES OF AMERICA AND SWEDEN of state. aircraft is over the high seas. "The United States of America and the "14. Embezzlement by public officers; em­ "Article V Kingdom of Sweden desiring to make more bezzlement by persons hired or salaried to effective the cooperation of the two countries the detriment of their employers; larceny; "Extradition shall not be granted in any in the repression of crime, have resolved to obtaining money, valuable securities or other of the following circumstances: conclude a. Convention on Extradition and property by false pretenses, or by threats of "1. When the person sought has already for this purpose have appointed the follow­ injury; receiving money, valuable securities been or is at the time of the request being ing Plenipotentia.ries: or other property knowing the same to have proceeded against in the requested State in "The President of the United States of been embezzled, stolen or fraudulently accordance with the criminal laws of that America: Dean Rusk, Secretary of State of obtained. State for the offense for which his extradi­ the United States of America, and "15. Making use of the malls or other tion is requested. "His Majesty the King of Sweden: Gunnar means of communication in connection with "2. When the legal proceedings or the en­ Jarring, Ambassador Extraordinary and Plen­ schemes devised or intended to deceive or forcement of the penalty for the offense has ipotentiary of Sweden to the United States defraud the public or for the purpose of ab­ become barred by limitation according to of America, talning money under false pretenses. the laws of either the requesting State or the requested State. who, having communicated to ea.ch other "16. Fraud or breach of trust by a bailee, banker, agent, factor, trustee or other person "3. When the person sought has been or their respective full powers, found to be in wlll be tried in the requesting State by an good and due form, agree as follows: acting in a fiduciary capacity, or director or member or officer of any company. extraordinary tribunal or court. "Article I "17. Soliciting, receiving, or offering bribes. "4. When the offense ls purely Inillta.ry. "Each Contracting State undertakes to "18. Perjury; subordination of perjury. "5. If the offense ls regarded by the re­ surrender to the other, subject to the pro­ "19. Offenses against the laws for the sup- quested State as a political offense or as an visions and conditions laid down in this pression of slavery and slave trading. offense connected with a political offense. "6. If in the specific case it is found to Convention, those persons found in its ter­ "20. Offenses against the bankruptcy laws. be obviously incompatible with the require­ ritory who have been charged with or con­ "21. Smuggling, defined to be the act of victed of any of the offenses specified in willfully and knowingly violating the cus­ ments of humane treatment, because of, for Article II of this Convention committed toms laws with intent to defraud the revenue example, the youth or health of the person within the territorial jurisdiction of the by international traffic in merchandise sub­ sought, taking into account also the nature other, or outside thereof under the conditions ject to duty. of the offense and the interests of the re­ specified in Article IV of this Convention; questing State. "22. Offenses against the laws relating to "Article VI provided that such surrender shall take place the traffic in, use of, or production or manu­ only upon such evidence of criminality as, facture of, narcotic drugs or cannabis. "When the person sought ls being pro­ according to the laws of the place where "23. Offenses against the laws relating to ceeded against in accordance with the crim­ the person sought shall be found, would the illicit manufacture of or traffic in poi­ inal laws of the requested State or is serv­ justify his commitment for trial if t.11e offense sonous chemicals or substances injurious to ing a sentence in that State for an offense had been there committed. health. other than that for which extradition has "Article II been requested, his surrender may be de­ "24. The attempt to commit any of the ferred until such proceedings have been above offenses when such attempt ls made a "Extradition shall be granted, subject to terminated or he is entiitled to be set at the provisions of this Convention, for the separate offense by the laws of the Contract­ liberty. following offenses: ing states. "Article VII "l. Murder, including infanticide; the kill­ "25. Participation in any of the above of­ ing of a human being, when such act is fenses. "There ls no obligation upon the requested punishable in the United States as voluntary "Article III State to grant the extradition of a person manslaughter, and in Sweden as man­ who is a national of the requested State, but "l. The requested State shall, subject to the executive authority of the requested slaughter. the provisions of this convention, extradite "2. Malicious wounding; mayhem; willful State shall, subject to the appropriate laws a person charged with or convicted of any of that State, have the power to surrender a assault resulting in grievous bodily harm. offense enumerated in Article II only when "3. Kidnapping; abduction. national of that State if, in its discretion, both of the following conditions exist: it be deemed proper to do so. "4. Rape; abortion, carnal knowledge of a "(a} The law of the requesting State, in girl under the age specified by law in such force when the offense was committed, pro­ "Article VIII cases in both the requesting and requested vides a possible penalty of deprivation of "If the offense for which extradition is re­ State. liberty for a period of more than one year: quested is punishable by death under the "5. Procuration, defined as the procuring or and law of the requesting State and the law of transporting of a woman or girl under age, "(b} The law in force in the requested the requested State does not permit this even with her consent, for immoral pur­ State generally provides a possible penalty punishment, extradition may be refused un­ poses, or of a woman or girl over age, by of deprivation of liberty for a period of more less the requesting State gives such assur­ fraud, threats, or compulsion, for such pur­ than one year which would be applicable ance as the requested State considers suffi­ poses with a. view in either case to gratify­ if the offense were committed in the ter­ cient that the death penalty will not be ing the passions of another person; profiting ritory of the requested State. carried out. from the prostitution of another. "2. When the person sought has been sen­ "Article IX "6. Bigamy. tenced. in the requesting State, the punish­ "A person extradited by virtue of this Con­ "7. Robbery; burglary, defined to be the ment awarded must have been for a period vention may not be tried or punished by the breaking into or entering either in day or of at least four months. requesting State for any offense committed night time, a. house, office, or other building "Article IV prior to his extradition, other than that of a government, corporation, or private per­ which gave rise to the request, nor may he son, with intent to commit a. felony therein. "1. Extradition need not be granted for be re-extradited by the requesting State to "8. Arson. an offense which has been committed within a third country which claims him, unless the "9. The malicious and unlawful damaging the territorial jurisdiction of the requested surrendering State so agrees or unless the of railways, trains, vessels, aircraft, bridges, State, but if the offense has been committed person extradited, having been set at lib­ vehicles, and other means of travel or of pub­ in the requested State by an officer or em­ erty within the requesting State, remains llc or private buildings, or other structures, ployee of the requesting State, who ls a na­ voluntarily in the requesting State for more when the act committed shall endanger hu­ tional of the requesting State, the execu­ than 45 days from the date on which he was man ll!e. tive authority of the requested State shall, released. Upon such release, he shall be in­ "10. Piracy; mutiny on board a vessel or subject to its laws, have the power to sur­ formed of the consequences to which his an aircraft for the purpose of rebelling render the person sought if, in its discre­ stay in the territory of the requesting State against the authority of the Captain or tion, it be deemed proper to do so. might subject him. Commander of such vessel or aircraft; or by "2. When the offense has been committed fraud or violence taking possession of such outside the territorial jurisdiction of the re­ "Article X vessel or aircraft. questing State, the request for extradition "To the extent permitted under the law of "11. Blackmail or extortion. need not be honored unless the laws of the the requested State and subject to the rights "12. Forgery, or the utterance of forged requesting State and those of the requested of third parties, which shall be duly re- April 16, 1969 CONGRESSIONAL RECORD- HOUSE 9257 spected, all articles acquired as a result of formal request for his extradition, duly sup­ to matters not covered herein, extradition the offense or which may be required as ported, the person detained wm be set at shall be governed by the laws and r~gulations evidence shall be surrendered. liberty and a new request for his extradition of the requested State. "Article XI will be accepted only when accompanied by "Article XVI the relevant documents required by Article "1. The request for extradition shall be XI of this Convention. "1. This Convention shall be ratified and made through the diplomatic channel and the ratifications shall be exchanged at Stock­ shall be supported by the following docu­ "Article XIII holm as soon as possible. ments: "1. Expenses related to the transportation "2. This Convention shall enter into force "(a) In the case of a person who has been of the person extradited shall be paid by upon the exchange of ratifications. It may convicted of the offense: a duly certified or the requesting State. The appropriate legal be terminated by either Contracting State authenticated copy of the final sentence of officers of the country in which the extradi­ giving notice of termination to the other the competent court. However, in exception­ tion proceedings take place shall, by all Contracting State at any time, the termina­ al cases, the requested State may request ad­ legal means within their power, assist the tion to be effective six months after the date ditional documentation. officers of the requesting State before the of such notice." "{b) In the case of a person who ts mere­ respective judges and magistrates. No pecu­ ly charged with the offense: a duly certified niary claim, a.rising out of the arrest, de­ or authenticated copy of the warrant of tention, examination and surrender of fugi­ arrest or other order of detention issued by tives under the terms of this Convention, FATHER JOSEPH F. THORNING OB­ the competent authorities of the requesting shall be made by the requested State against SERVES PAN AMERICAN DAY IN State, together with the depositions, record the requesting State other than as specified THE HOUSE of investigation or other evidence upon in the second paragraph of this Article and which such warrant or order may have been other than for the lodging, maintenance, and issued and such other evidence or proof as board of the person being extradited prior HON. HENRY S. REUSS may be deemed competent in the case. to his surrender. OF WISCONSIN "2. The documents specified in this Ar­ "2. The legal officers, other officers of the ticle must include a precise statement of the requested State, and court stenographers in IN THE HOUSE OF REPRESENTATIVES criminal act with which the person sought the requested State who shall, in the usual Tuesday, April 15, 1969 is charged or of which he has been convict­ course of their duty, give assistance and ed, and the place and da. te of the commis­ who receive no salary or compensation other Mr. REUSS. Mr. Speaker, for 25 con­ sion of the criminal act. The said documents than specific fees for services performed, shall secutive years, our mutual friend, Father must be accompanied by an authenticated be entitled to receive from the requesting Joseph F. Thorning, has offered the copy of the texts of the applicable laws of State the usual payment for such acts or prayer in the U.S. House of Representa­ the requesting State including the laws re~ services performed by them in .the same tives on Pan American Day. It is a trib­ la.ting to the limitation of the legal pro­ manner and to the same a.mount as though ceedings or the enforcement of the penalty ute to the foresight of you and Father such acts or services had been performed Thorning that together you took the in­ for the offense for which the extradition of in ordinary criminal proceedings under the the person is sought, and data or records laws of the country of which they are itiative in inaugurating an official Capi­ which will prove the identity of the person officers. tol Hill celebration of the cause of inter­ sought as well as information as to his "Article XIV American understanding, friendship, and nationality and residence. "l. Translt through the terrl tory of one of cooperation in April 1944. The annual "3. The documents in support of the re­ observance is now a tradition, and has quest for extradition shall be accompanied the Contracting States of a person in the by a duly certified translation thereof into custody of an a.gent of the other Contracting been productive of many benefits to all the language of the requested State. States, and surrendered to the latter by a concerned. third State, and who is not of the nationality It is a matter of special pride to me "Article XII of the country of transit, wall, subject to the that Father Thorning was born in Mil­ "l. The Contracting States may reques·t, provisions of the second para.graph of this waukee. He studied at St. Louis Univer­ through the diplomatic channel, the pro­ Article, be permitted, independently of any visional arrest of a person, provided that the judicial formalities, when requested through sity and at Catholic University in Wash­ offense for which he is sought is one for diplomatic channels and accompanied by the ington. He now finds time among his which extradition shall be granted under presentation in original or in authenticated many duties to be associate editor of this Convention. The request shall contain: copy of the document by which the State of World Affairs, and Latin American edi­ "(a) A statement of the offense with which refuge has granted the extraditio>:i. In the tor of the Diplomat. the person sought is charged or of which United States of America, the authority of On more than one occasion in Wash­ he has been convicted; the Secretary of State Of the United States of ington, the world-renowned priest who "(b) A description of the person sought America shall be first obtained. "2. The permission provided for in this gave the invocation yesterday on the for the purpose of identification; 25th anniversary of our observance has "(c) A statement of his whereabouts, if Article may nevertheless be refused if the known; and criminal act which has given rise to the ex­ been described as "the Padre of the "(d) A declaration that there exist and will tradition does not constitute an offense Americas." The title was awarded to be forthcoming the relevant documents re­ enumerated in Article II of this Convention, Father Thorning in this House by the or when grave rea.sons of public order a.re quired by Article XI of this Convention. distinguished gentleman from Montana "2. If, within a maximum period of 40 days opposed to the transit. who is now the majority leader in the from the date of the provisional arrest of "Article XV other body, Senator MlKE MANSFIELD. the person in accordance with this Article, "To the extent consistent with the stipu­ Now, more than ever, inter-American the requesting State does not present the lations of this Convention and with respect programs need such leadership.

HOUSE OF REPRESENTATIVES-Wednesday, April 16, 1969 The House met at 12 o'clock noon. That when in danger knows no fear, THE JOURNAL The Chaplain, Rev. Edward G. Latch, In darkness feels no doubt. The Journal of the proceedings of D.D., otiered the following prayer: Into Thy keeping we commit our coun­ yesterday was read and approved. By grace you have been saved through try and all who live and fight and die for faith, and this is not your own doing, her that freedom may continue to be it is the gift of God.-Ephesians 2: 8. gloriously alive in our world. Strengthen PRESIDENT NIXON'S REVIEW OF Our Father God, in whom we live and them in danger; comfort them in sor­ THE 1970 BUDGET move and have our being, we humbly row; keep them steadfast in the perform­ Mr. MAHON. Mr. Speaker, for general pray Thee so to guide and govern us by ance of duty and ever loyal to this Na­ information and reference purposes of Thy spirit that in all the procedures of tion we love with all our hearts. Members who may be interested, I ask these hours we may never forget that Lead us, our Father, in the paths of unanimous consent to insert in the ex­ Thou art with us. Send us out into this right; blindly we stumble when we walk tension section of today's RECORD the new day sustained by- alone, only with Thee do we journey report summarizing the results of the re­ safely on. view of the 1970 budget, released yester­ A faith that shines more bright and clear In the name of Him who is the way, day by the Executive Office of the When tempests rage without; we pray. Amen. President.