January 23, 1969 CONGRESSIONAL RECORD- SENATE 1635

B y Mrs. MINK : Scavuzzo; to the Committee on the Judi­ Pa.ullno A. Olsrldades snd Dr. Lydia. A. Clari­ H.R. 4511. A blll for the relief of Crlsologo ciary. da.des; to the Committee on the Jud1c!ary. Redondo Campos; to the committee on the H .R . 4531. A bill for the rellef of Amnon By Mr. SCHEUER: Judiciary. Kahane and hls wife, Galla. (Paritski) H .R . 4550. A blll for the relief of Henry By Mr. MONAGAN: Kahane, and their two minor sons, Hlllel Joseph Condron; to the Committee on the H.R. 4512. A bill for the relief of Mr. and Kahane and Lier Kahane; to t he Commit­ Judiciary. Mrs. Joseph D . Hilbert; to the Committee tee on the Judiciary. By Mrs. SULLIVAN: on the Judiciary. H .R. 4532. A b!ll for the relief of Giovanni H.R. 4551. A blll for the rellef of Dr. Delfina By Mr. MORSE: Tavano a nd his wife, Natalina T avano; to M. Ibalio; to the Committee on the Judiciary. H.R. 4513. A bill for the relief of Rocco the Committee on the Judiciary. By Mr. TALCOTT: DeCiantls; to the Committee on the Judi­ By Mr. RODINO: H .R. 4552. A bill for the relief of Carl Aiello; ciary. H .R . 4533. A blll for the relief of Dlmitrlos to the Committee on the Judiciary. H .R. 4514. A bill for the rel!ef of Bene­ P. Tasslos; t o the Committee on the Judi­ By Mr. TEAGUE of Texas: detto Dimaggio; to the Committee on the ciary. H.R. 4553. A bill for the relief of A. J . Fred­ Judiciary. By Mr. ROONEY of New York: rickson; to the Committee on the Judiciary. B y Mr.NIX: H .R . 4534. A blll for the relief of Angelo By Mr. THOMPSON of New Jersey: HR. 4515. A bill for the relief of Vincenzo DlStefa.no; to the Committee on the Judi­ H .R. 4554. A blll for the relief of Dr. Sin San Argiro. his wife, Anna Marla Argiro, and ciary. Yang; to the Committee on the Judiciary. their minor children, Nataline Argiro, Aldo By Mr. ROONEY of Pennsylvania. : By Mr. VAN DEERLIN: Argiro, and Concetta Argiro; to the Commit­ H .R . 4535. A blll for the relief of Herbert H .R. 4555. A bill for the relief of Mrs. Tullio tee on the Judiciary. Chan, Szeto Wing Ha Chan, a nd son, Frank Zanella. Cacioppo; to the Committee on the H.R. 4516. A bill for the rel!ef of Maria Chan; to the Committee on the Judiciary. Jucticlary. La Valle Arrigo; to the Committee on the H .R. 4536. A blll for the relief of Mrs. Ana H .R. 4556. A blll for the relief of Mihalj Judiciary. Horvat and children, Josephine and Ksenlja l\Iesa.ros, his wife, Rozalija., his daughter, H.R. 4517. A bill for the relief of Euloglo Horvat; to the Committee on the Judiciary. Llolja, and his son, Robert; to the Committee Navasca Bayna, and his wife, Llgaya Nlca nor H .R . 4537. A blll for the relief of Efstathlos on the Judiciary. B ayna; to the Committee on the Judiciary. (Stephen) Kaunouplos; to the Committee on By Mr. VANIK: H .R. 4518. A bill for the relief of Raquel the Judiciary. H .R . 4557. A b1ll for the relief of Peh-An Falnszteln; to the Committee on the Judi­ H.R. 4538. A blll for the relief of Michael F. Chang; to the Committee on the Judiciary. ciary. Mouzakls; to the Committee on the Judi­ By Mr. WHALLEY: H.R . 4519. A bill for the relief of Dr. ciary. H .R. 4558. A bill !or the relief of Gordon Giorgio Ingargiola; to the Committee on the H .R . 4539. A bill for the relief of Dr. Angelo Pak Man Gartner-Chan; to the Committee Judiciary. Zosa; to the Committee on the Judiciary. on the Judiciary. H .R . 4520. A bill for the rel!ef of CJ!fton By Mr. ROSTENKOWSKI: H.R. 4559. A bill for the relief of Rosa. Oliver Johnson; to the Committee on the H.R. 4540. A bill for the relief of Nicola Marigliano; to the Committee on the Judiciary. and Marla Lerarlo, Vincenza Le.rarlo F avia Judiciary. H.R. 4521. A bill for the relief of R osalinda and Luigi Lerarlo; to the Committee on the By Mr. WILLIAMS : Misagal; to the Committee on the Judiciary. Judiciary. H.R. 4560. A b1ll for the relief of Sa Cha H.R. 4522. A bill for the relief of P atrocino H.R. 4541. A blll for the relief of Mrs. Bae; to the Committee on the Judiciary. Morales and h is wife, Divina Morales; to the Helena Wojcik; to the Committ ee on the By Mr. WYMAN: Committee on the Judiciary. Judiciary. H .R. 4661. A bill for the relief of the estate H .R. 4523. A bill for the relief of Gaetano By Mr. ROYBAL: of Capt. John N. Laycock, U.S. Navy (re­ Nazzyeno Pelllcclotta and his wife, Teresa H.R. 4542. A blll for the relief of Estrella. tired); to the Committee on the Judiciary. Pelllcclotta; to the Committee on the Ju­ B. Viray; to the Committee on the Judiciary. H .R . 4562. A b1ll for the relief of Cosimo dlclYy. By Mr. ST. ONGE: Damiano Ra.na.uru; to the Committee on the By Mr. PELLY: Judiciary. H .R. 4524. A blll for the relief of Phlllp D. H .R . 4543. A blll for the relief of Vuong Jang; to the Committee on the Judiciary. Thi Bick Tuan; to the Committee on the H .R. 4525. A bill for the relief o! Kam Oy Judiciary. Jung; to the Committee on the Judiciary. By Mr. SANDMAN: PETITIONS, ETC. H.R. 4526. A bill for the relief of Henry H.R. 4544. A blll for the relief of Fortunato Armlndo Arias-Maldonado; to the Committee Under clause 1 of rule XXII, petitions Louie; to the Committee on the Judiciary. and papers were laid on the Clerk's desk By Mr. PEPPER: on the Judiciary. H .R . 4527. A blll for the relief o! Milton H.R. 4545. A blll for the relief of Fran­ and referred as follows: Sang; to the Committee on the Judiciary. cesco Costanzo; to the Committee on the 32. By the SPEAKER: Petition of Jesse By Mr. PODELL: Judiciary. Earl Brown, Atlanta, Ga., relative to redress H.R. 4528. A bill for the relief of Antonio H .R . 4546. A blll for the relief o! Anna. Del of grievances; to the Committee on the Arena, his wife, Anna Arena, and their daugh­ Baglivo; to the Committee on the Judiciary. Judiciary. ter, Anna Nicoletta Arena; to the Committee H .R. 4547. A blll for the relief of Pietro 33. Also, petition of Henry Stoner, Port­ on the Judicia ry. and Gabriella Bianco; to the Committee on land, Oreg., relative to the right to petition; H .R . 4529. A blll for the relief of Gaetano the Judiciary. to the Committee on the Judiciary. F avuzza and his wife, Tommasa Favuzza; to H.R. 4548. A b1ll for the relief of Michele 34. Also, petition of Arlie K . Rudel, Ster­ the Committee on the Judiciary. Bovenzl; to the Committee on the Judiciary. ling, Colo., relative to salary increases; to the H .R . 4530. A blll for the relief of Mariano H .R. 4549. A b1ll for the relief of Dr. Committee on Post Office and Civil Service.

SENATE-Thursday, January 23, 1969 (Legislative day of Friday, January JO, 1969) The Senate met in executive session at which endures in all ,that is good and Senate by Mr. Geisler, one of his secre­ 11 a.m., on the expiration of the recess, pure and true. taries. and was called to order by the Acting Through Jesus Christ, our Lord. Amen. President pro tempore (Mr. METCALF). EXECUTIVE MESSAGES REFERRED The Chaplain, the Reverend Edward THE JOURNAL The ACTING PRESIDENT pro tem­ L. R. Elson, D.D., offered the following pore laid before the Senate messages prayer: Mr. MANSFIELD. Mr. President, I ask from the President of the unanimous consent that the Journal of Almighty God, who has made and submitting sundry nominations, which the proceedings of Wednesday, January were referred to the appropriate com­ preserved us a nation, prosper the con­ 22, 1969, be approved. sultations of these Thy servants for the mittees. The ACTING PRESIDENT pro tem­ (For nominations this day received, see honor, safety, and welfare of this Na­ pore. Without objection, it is so ordered. tion and all mankind. Keep us from easy the end of Senate proceedings.) discouragement or weariness, from giv­ ing up or giving in too soon. MESSAGES FROM T.r:IE PRESIDENT DEPARTMENT OF THE INTERIOR Grant us this day the grace which is Messages in writing from the Presi­ The Senate resumed the consideration generous, the determination which is dent of the United States submitting of the nomination of Walter J. Hickel, of steadfast in decision, the perseverance nominations were communicated to the , to be Secretary of the Interior. CXV--104--Part 2 1636 CONGRESSIONAL RECORD- SENATE January 23, 1969 Mr. MANSFIELD. Mr. President, I turn emor Walter J . Hickel to be Secretary may be impossible for the Secretary to over the time allotted to me to the dis­ of the Interior. determine what Congress wants. The tinguished Senator from Utah

and to those things which will make his ran gement of putting in trust or anything, hardship for tens of thousands of peo­ country better and stronger. such as Secret ary Stans has resort ed to? be, Governor VOLPE. I believe that because my ple--trusts, widows, whatever it may Thus, we have an eminently success­ stock was in a construction firm which I that own the stock of this company. The ful man, a great administrator, one of founded and because buildings are visible public would be asked to take the punish­ the most brilliant and creative men in pieces of property that can be seen as they ment for no reason but a forced action or America today, a problem-solver, who are erected, it was necessary not only to arbitrary request of the Government, and has been nominated to go into one of the avoid a conflict of interest insofar as t he because of a potential conflict of interest most sophisticated and complicated busi­ law ls concerned but the spirit of the law which many of us feel does not exist 1n nesses we have in goverrunent. He is a as well. Therefore, I felt the manner in which the first instance. So I do believe the case man who, I believe, can think through it ought to be done would be through the is sale of my st ock completely. I hesitated to entirely different. the kind of problems we face in setting do this because it ls a firm I founded m yself. Mr. President, it is for these reasons priorities for the defense of the free But I felt the only way that it could be done, that I support, and intend to vote for the world and the United States of Amer­ without any shadow or possiblllty or appear­ confirmation. I believe we have benefited ica, and yet who understands the most ance of conflict of interest, was to sell that greatly by bringing out some of the com­ sophisticated weapons systems. stock, and I have arranged for the sale of plexities of the situation. But a.gain, it is He brings to the Defense Department my stock back to the corporation as pro­ a matter of individual judgment on this a body of knowledge perhaps unparal­ vided for in our bylaws. man and this situation, and I think the leled in an industrialist coming into The Senator from Michigan (Mr. evidence is overwhelmingly in favor of Government. He is a man who all his HART) then entered the colloquy, as confirmation. life has been able to set priorities and follows: Mr. MURPHY obtained the floor. insure that whatever he was connected Senator HART. Governor, congrat ulations, UNANIMOUS-CONSENT AGREEMENT with-a company or an educational in­ good wishes. I had not really intended to get Mr. MANSFIELD. Mr. President, will stitution-will get the most value for the into this conflict except to ask the clarifying the Senator yield? money spent. He is a man remarked by question of the earlier witness, because how­ ever you approach it, it is an unsatisfactory Mr. MURPHY. I yield. everyone I know who has known him Mr. MANSFIELD Mr. President, I ask and I have known him myself for year&­ sit uation. But I was struck as you described the reasoning that persuaded you to sell unanimous consent that there be a time for his integrity, to the extent that he your construction company's stock, sell it limitation of 30 minutes on the pending could not conceivably be questioned by rather than put it in trust. You felt since nomination, the time to be equally di­ any of us. you had founded it and since the product vided between the distinguished Senator I cannot imagine Mr. Packard's per­ was visible-buildings-you just felt it was from Mississippi (Mr. STENNIS) and the mitting a decision ever to be made, or better to sell, that it would avoid a conflict distinguished senior Senator from Ten­ ever making a decision, that would in of interest. nessee (Mr. GORE) , the vote to take place any respect benefit directly or indirectly At some other hearing I read about it in the paper, there is another distinguished not later than 4 o'clock. him or any member of his family. American who ls confronted with the same The PRESIDING OFFICER. Is there (At this point, Mr. HUGHES took the problem. He founded a business, his products objection to the unanimous-consent re­ chair as Presiding Officer.) are tangible, a substantial quantity are pur­ quest? Without objection, it is so ordered. Mr. GORE. Mr. President, will the chased by the government, but he concludes Mr. STENNIS. Mr. President, will the Senator from Illinois yield? that he should not sell, and chiefly because Senator from California yield? Mr. PERCY. I am delighted to yield to of the devastating consequences of dumping all that stock on the market. Most people Mr. MURPHY. I yield. the Senator from Tennessee with pleas­ apparently agree that he need not sell. Mr. STENNIS. How much time does ure. How do you distingulsh your situation from the Senator want? Mr. GORE. I share the Senator's high his? Mr. MURPHY. Probably 2 or 3 min­ estimate of Mr. Packard, based upon Governor VOLPE. Well, first of all, I would utes. I believe I have been very patient. I every bit of information that has come distinguish it in this way, that although have been in the Chamber-- to me. I do not know him personally, but mine ls a substantial construction operation, Mr. STENNIS. I yield 5 minutes to the because of statements in this regard, a there ls no comparison between the amount of money involved in my situation and the Senator from California. number of people have volunteered their amount of money involved 1n the situation Mr. MURPHY. I will take only 3 min­ impressions. Nothing has been unfavor­ to which I believe your are referring: on the utes. able. Thus, I share the high esteem of order of $300 miillon. That is what I remem­ Mr. President, I should like to con­ the Senator from Illinois for Mr. ber by way of a figure, 300 to 1. gratulate my esteemed colleague from Packard. Illinois for his presentation of this mat­ However, I believe I said that con­ Mr. President, thus, if a man has $1 million, we apply the rule, but if he has ter. I am pleased to rise in support of the firmation, as I saw it, with a prima facie nomination. conflict of interest appearing, would $300 million, we apply another rule, or none at all. Mr. Packard comes from my State, shake confidence not destroy it. If I said California.. In examining his qualifica­ "destroy," I should not have used that Mr. PERCY. If I may reply to that statement, there are two very basic dif­ tions, his background and capabilities, word, because that has a totality about it some of us there were alerted and asked which I did not wish to imply. I believe, ferences here. The first is that Governor Volpe was to do all the research and all the studies however, I said tbat it would shake con­ that we could. fidence. confirmed to be the Secretary of a de­ partment. He will be the top man, the I am pleased to say that never in my The distinguished senior Senator from life have I heard a man receive such a Michigan (Mr. HART) , who has had final decisionmaker in the area of respon­ sibility for that department. glowing recommendation from all areas, to leave to catch a plane, asked me if I In this case, we a.re asked to confirm from scholastic groups, industrial groups, would call to the attention of the Sen­ and civic groups. No one, in my knowl­ ate a very pertinent colloquy on this a man who will be the second man, who will have over him a superior who can edge, would have the qualifications that point at another committee hearing, and are attributed to this man. I wonder whether the Senator from Illi­ reverse any decision and who is, as we nois would be willing to have me do that know, one of the most sophisticated and I heard, on three occasions, close knowledgeable men in this particular friends, close associates, and competi­ now. tors say, "I do not care what job you Mr. PERCY. I would be very happy to area that he could be dealing with. The second thing is that Mr. Volpe was gave Mr. Packard to do ; chances are he have the Senator do so. would do it better than anyone else." Mr. GORE. This is with regard to the able to sell his stock very easily. Appar­ committee hearing on the confirmation ently, the company just purchased it. It We have spent some time talking about of Governor Volpe. could be done, and it was done. the amount of money he has accumu­ The colloquy is as follows: In this case before us, it is entirely dif­ lated. I think it is exciting, I think it is ferent. We know the nominee's holdings in keeping with American tradition, par­ Senator COTTON. Governor, I glanced over ticularly when we understand that he your list of holdings and securities that you cannot be sold. The company does not submitted to the Committee, consistent with have $300 million to buy back Mr. Pack­ started the business in a garage with a the policy of the Committee having this in ard's stock, and the market could not be capitalization of less than $600. advance, and without being critical, let me asked to absorb it without a. break in He does not build any weapons. He ask you: Have you contemplated any ar- price that would constitute a. very great does not build any weapons systems. He January 23, 1969 CONGRESSIONAL RECORD- SENATE 1681 is not to be compared with Secretary received nearly $3 million, which he is I have looked at the new conflict of McNamara, whose company did build writing off to begin with. So that I found, interest rules for this body and the hardware, and great amounts of it, or on the size of his holdings, the conflict House of Representatives, and it amazes Secretary Wilson, whose company did of interest we seem to be worried about me that we file only for ourselves. My build hardware. Mr. Packard's company sort of dissipated and fell apart. I think wife happens to be a woman of means. builds an instrument that is used in his answer was truthful. It is hard for me Certainly what is of interest to her is of measuring components of electronics; to conceive of being worth $300 million. interest to me. My children own stocks. and apparently it is one of the best of I asked him: "Would you be worried My brother owns stocks, and my sister its kind. It is off the shelf. It is not built if your stock went down two points? That as well; and yet I do not have to file for especially for the Government. It is not means you would lose $6 million." them. I would suggest that we might take dependent upon Government contracts. His answer was: "That would not wor­ to heart the example of Mr. Packard, As a matter of fact, during the testi­ ry me a bit. If it did worry me, I would and follow through on it. mony he said something that I was very not be interested in this business of do­ But, Mr. President, during the course pleased to hear-that he would be in fa­ ing other things." of the testimony which our chairman vor of competitive contracts, that a con­ So I was impressed by the fact that, so ably handled, one thing was brought tract should go to the company that with Mr. Packard's $300 million, Mr. out that impressed me more than any­ could deliver the best product at the low­ Packard's concern for it long had ad­ thing else. For the last 8 years, if est price in the fastest period of time, vanced beyond the concern of the man there has been a place in this country rather than negotiated contracts. My ex­ who had made his $1 million and was where there has been a real lessening of perience with negotiated contracts leads looking for $5 million. morale, it has been in the Pentagon. In me to go along with that point. As the Senator from Illinois pointed fact, it got so bad over there that morale However, I sincerely hope that my col­ out, there is a particular factor involved, just did not exist. I have had a number leagues will w1derstand, as I believe the and that is the narrowness from which of friends in the military services who majority of the committee understood, the Hewlett-Packard Co. operates. It is have resigned rather than put up with that this man has done everything pos­ strange to say "narrow" when one thinks what they have had to put up with for sible, with the very best advice, so that of $34 million of Government contracts, the last 8 years over there. in no way can he benefit from any de­ but it is off the shelf. It is not a com­ Mr. Packard made it a point to bring cision he might make in this government ponent part of a missile, tank, or sub­ out what I think is the most important position; and if there 1s damage done marine. factor in any business: the people who from other influences to his company, he As we approach the overall problem, work for it. They are not figures in a. is not particularly worried about that. we find, which has been admitted in the ledger, or punches on a tape; they are He is a man whose public service in Cali­ debate today, that we have very little people, the most important factor to the fornia and across the Nation 1s well statutory guidance on the conflict of in­ success of any business. For that reason, known, and he is taking this job at great terest problems, and it seems to me each I would recommend a man going into the detriment to himself and his future. He committee sets its own standards. Pentagon, after what they have put up is doing it because he wants to give the I think, too, as the Senator from Vir­ with for 8 long years, who will listen very best service he can to the country. ginia does, that if we followed the logi­ to people who have something to offer, I think the President of the United cal conclusion of the Senator from Ten­ and not go off half-cocked on his own, States is to be complimented on having nessee, we would find that what he seeks with the advice of some half wornout a man of such generous spirit and a man is complete divestment, as in the Mc­ computer. of such great capability and a man who Namara case, of the stock. Mr. President, I merely wished to point demands such respect. That means that this man becomes out that the emphasis Mr. Packard has I do not think any of my colleagues ineligible, and I do not believe, with the placed on people is, to me, one of the will have t o worry about that after this problems that the Defense Department most inlportant facets of this matter. long and distinguished public career, has today, that we can afford, as a na­ Mr. PROXMIRE and Mr. ALLOT!' they would have to be concerned about tion, to declare ineligible for office men addressed the Chair. Mr. Packard's being guilty of somet hing of the successful type of Mr. Packard. Mr. STENNIS. I yield 3 minutes to the that might lead them to believe there was I, too, agree that we should, as a body, Senator from Colorado. a conflict of interest. do something about the conflict of in­ The PRESIDING OFFICER. The Sen­ I will endorse the nomination and vote terest problem. ator has 2 minutes remaining. for it enthusiastically. With that, Mr. President, I close by Mr. STENNIS. Mr. President, I yield saying that I support the nomination of Mr. GORE. Mr. President, I yield my 5 minutes to the Senator from New Mr. Packard. remaining time to the Senator from Hampshire (Mr. McINTYRE .) Mr. STENNIS. Mr. President, I yield 3 Mississippi. Mr. McINTYRE. Mr. President, as a minutes to the Senator from Arizona. Mr. STENNIS. Very well. member of the Armed Services Commit­ Mr. GOLDWATER. Mr. President, as a The PRESIDING OFFICER. The Sen­ t ee, I must admit to certain reservations member of the Armed Services Commit­ ator from Colorado is recognized. that I had as we approached the hear­ tee, it was my pleasure to sit and listen Mr. ALLOTT. Mr. President, I simply ings on Mr. Packard. At that time, I was to the testimony given by Mr. Packard. want to add something to this debate involved in a committee of my own, in I was extremely impressed with his testi­ which I could not refrain from adding, which I felt that a conflict of interest was mony, as I have been with the man him­ because I can add something that no actually hurting my cause. As I con­ self for many long years. I rise at this one else in Congress can add. David cluded the hearings 2 or 3 days later, I point, not to reiterate what has been said Packard was born in the same town that found that three elements have brought about the trust, because I think it is one I was: Pueblo, Colo. When this young me around so I can support this nomi­ of the safest ones that I have seen in the lawyer who now stands before you got nation. years I have been here and in my new out of law school, it was David Packard's The first is a peculiar one. Perhaps it freshmen term; but I wish to comment father, Sperry Packard, who gave the is one the distinguished Senator from on one thing Mr. Packard did that I young man a place in his office and gave Tennessee (Mr. GOREJ would not appre­ think we in Congress might well emulate: him some business to get st arted, so that ciate. But I think it is on the very size, he included not only a statement of his he could pay off his school debts. $300 million, represented in the stock own holdings, but a statement of the Sperry Packard was one of the finest that Mr. Packard owns. There is acer­ holdings of his wife. men I have ever known in my life. He tain amount of integrity and insulation This conflict of interest problem is was not only a. man of scrupulous in­ in the amount itself. For instance, the something we are beginning to learn we tegrity; he was also a very capable and dividends from that stock will amount to do not know very much about. I do not brilliant lawYer. Knowing him as I knew some $720,000 annually. These dividends, believe it is encompassed in how much him very well, for a year, in my associa­ under the trust, will be distributed, either money or how much stock you own in tion there in that office-never a formal annually or semiannually, to those General Motors, Smith & Co., Ford, or association-I know what kind of stock named the beneficiaries. But witness, any other firm. I think 1f a man is basi­ Dave Packard came from. if you will, that Mr. Packard, from that cally honest, he is going to remain basi­ But more than that, I knew Dave $720,000, over a 4-year span, would have cally honest. Packard as a high school student. I knew 1682 CONGRESSIONAL RECORD- SENATE January 23, 1969 his sister Ann. I knew his mother. In fact, feet upon the value of the stock. Depend­ to buy 3 million shares of the stock with in the spring of 1930, I used to go out in ing on how long a time was taken, of the price steadily going down. the field with Dave Packard in an at­ course, it could be stretched away out, The judgment of the most outstanding tempt to help him with the hurdles, which perhaps; or there might be enough re­ authorities I could go to-the last as re­ he was then running. sources in those houses, so that if they cently as 1 hour ago on the telephone-­ Having known him, and having known were to combine for that purpose, they is that this statement is absolutely fun­ his family, although my acquaintance could doubtless absorb the stock. But damentally sound and they would sup­ with him since then has been onlY spo­ that is so far beyond the realm of reason port it in every respect. radic, I could not let this moment pass and practice that I believe, as a practi­ Mr. STENNIS. Mr. President, I have a without saying that, having known him cal matter, it is undoubtedly true that very few minutes in which to conclude. I and his background, having known what such an action would result in a great thank the Senator from Tennessee (Mr. he did at Stanford, and what he has sacrifice on the part of innocent stock­ GORE) for yielding time to me in this way. done since, I would be most remiss, Mr. holders. It was something that the com­ I shall certainly not use all his time. President, if I did not contribute this mittee backed off from taking on, even if I appreciate very much the fine presen­ little personal picture of Dave Packard Mr. Packard had agreed to do so. tation that he made of his viewpoint. He as I know him. Mr. PROXMffiE. I might say that the is always a formidable debater, and is Mr. STENNIS. Mr. President, if any Hewlett-Packard Co. is going to suffer a not given to idle language or idle points. Senator wishes to speak, the Senator severe sacrifice anyway, because Mr. He brought the question into sharp focus from Tennessee has yielded me his time. Packard is a remarkably successful and ably presented his views. Mr. MANSFIELD. Does the Senator leader of this firm, and the loss of his The question has been raised by the intend to conclude the debate? leadership undoubtedly will have an ad­ Senator from Tennessee: Why did not Mr. STENNIS. No; the Senator from verse effect on the company. the committee require Mr. Packard to Tennessee will. I have just a few words. Mr. STENNIS. It already has. dispose of the other stock, meaning the Mr. President, may I inquire what Mr. PROXMIRE. I thank the Senator. stock of the company that had contracts amount of time remains on each side? Mr. STENNIS. The Senator from Illi- with the Department of Defense? It was The PRESIDING OFFICER. The Sen­ nois (Mr. PERCY) had this question on salable and we required him to comply ator from Mississippi has used all of his his mind, too, and he made some inde­ with that ruling to the extent that the time. There are 12¥2 minutes remaining pendent inquiries. stock was salable, just as we have re­ on the other side. (Mr. PERCY subsequently made the fol­ quired anyone else to do so. Mr. STENNIS. Does the Chair under­ lowing statement, which is printed here Mr. GORE. Mr. President, will the stand that that time has been yielded to by unanimous consent.) Senator yield? me? Mr. PERCY. Mr. President, following Mr. STENNIS. I yield to the Senator The PRESIDING OFFICER. Yes. my previous remarks, the distinguished from Tennessee. Mr. STENNIS. I now yield to the Sen­ Senator from Wisconsin asked a question Mr. GORE. I am not an authority, of ator from Wisconsin for a question. pertinent to those remarks and I regret course, on the operations of the stock Mr. PROXMIRE. Mr. President, I ask I was not in the Chamber at that time. market and the marketing of securities. the distinguished chairman of t.he com­ I have since given him the answer and I think, however, for the benefit of the mittee about this claim which has been he has suggested that I make the state­ RECORD, I should say that some persons made over and over again on the floor ment for the RECORD. who are knowledgeable in the field, and and in the press, that if Mr. Packard is The question he asked relates to the upon whose expertise I have reason to required to dispose of his holdings in statement made by Mr. Packard before rely have told me that the stock could ' Hewlett-Packard, it will greatly depress the Committee on Armed Services, that be handled through an underwriting the stock of the company, and result in it was not practicable to sell his Hewlett­ agency within a reasonable time, with no sacrifice not only on his part, but on the Packard stock, and whether his position serious or adverse consequences to the part of many stockholders. is verified by expert advice. corporation. I do not know. But since I ask the chairman whether this has Mr. President, I wish to say to the dis­ the point had been made, I sought an­ been explored with investment banking tinguished Senator that in order to verify swers to it, and I was told by persons firms, and whether their advice has been this statement and make certain that it whom I have found to be reliable that It secured about it. could be validated by proper authority, I could be done. It is my understanding that a large contacted an outstanding investment Mr. STENNIS. The committee's in­ investment banking syndicate could dis­ banking firm in Washington, an out­ formation on that point was to the pose of 3 million or 5 million shares, or standing firm in Philadelphia, and two contrary. any amount of stock, over a period of of the largest firms in New York City. I failed to point out that former Secre­ several weeks, in the event they were The composite of their judgment was tary McNamara, who held the office of asked to do so, and if the company whose that from a practical standpoint Mr. Secretary of Defense for almost 8 years, stock is being sold is an established firm, Packard's statement is absolutely funda­ and former Secretary Clifford, of the De­ with strong earnings and so forth, there mentally sound. partment of Defense, as well as Mr. might be a limited sacrifice, but not the The rationale is as follows: If 3 Nitze, said that during their periods of kind of catastrophe which would occur million shares of Hewlett-Packard stock office no matter involving Hewlett-Pack­ if a man went to the market and said,· were placed on the market in a secondary ard had come to their attention. In "I am selling 3 million shares for what­ offering the question would immediately other words, no decision concerning this ever it will bring." go through the minds of stockholders of company's affairs had come before them. I am informed that it could be done Hewlett-Packard, including banks, That confirms the fact that such con­ by the investment banking syndicate trusts, and other organizations: What is tracts are made at field level or by Army with each member taking a limited going to happen to the price of this procurement agencies or by an Air Force amount, and being able to sell it at a stock? or another agency, wherever it might be. point or 2 or 3 points below the market. They might decide that there is going Furthermore, the new Secretary of Perhaps I am wrong on that, but. I should to be a depression in the price, with one­ Defense, Mr. Laird, assured us that he like to know what the result would be, third of the stock becoming available, would take the responsibility of making and whether or not this point has been and they might decide to sell their stock. certain that no matter involving Hewlett­ explored with investment banking firms. Certainly demand would have already Packard would ever go to Mr. Packard Mr. STENNIS. I am glad t.o answer the slackened; there would not be many buy­ so long as Mr. Packard was Deputy Sec­ Senator's question. ers, with the prospect of some three mil­ retary of Defense. Of course, Mr. Packard This transaction would involve $300 lion shares immediately becoming avail­ made the same pledge, that he would million in value of stock, and 30 percent able. Therefore, the price immediately see to it that such matters did not reach of the total stock of the company. We would begin to erode and the question him, either. are advised, including advice by invest­ would become: At what point will the One thing more. I did say that faith ment firms, that it could and would have floor be reached? in Mr. Packard-at least, some faith­ a very depressing effect, and could have In such a situation, no investment went to the heart of the matter. Of a very abrupt and almost disastrous ef- company could or would set a fixed price course, I had already outlined all the January 23, 1969 CONGRESSIONAL RECORD- SENATE 1683 other safeguards about the trust agree­ sent that the entire article be printed in teeth, neither should we send aircraft to do ment and the precautions that had been the RECORD. the work of trains, cars to do the work o! put around it, until it got down, in the There being no objection, the article buses, or buses to do the work o! rail transit," he said. final analysis, to the point where it was was ordered to be printed in the RECORD, In the press conference announcing his necessary to have some faith in the man, as follows: election, Mr. Boyd predicted there wlll be and that faith went to the heart of the ILLINOIS CENTRAL ROAD NAMES AS PREBmENT changes In publlc policies that tend to Im­ matter. I still feel that way. ALAN BOYD, FORMER TRANSPORTATION pair intermodal activity. One other point: Mr. Packard im­ AGENCY CHIEF CITES NEEDS OF RAII.ROADS pressed me. I was skeptical about the CHICAGO .-Alan S. Boyd, President John­ He also said there has been too much regu­ nomination when I was called about it son's Secretary of Transportation from the lation of the railroad industry, and the whole before the holidays. One thing that time the Department of Transportation was subject should be reviewed. Railroads have cleared up my mind is that he was not created until President Nixon's Inaugura­ been "hamstrung" by regulations, and the a coached witness. He spoke with spon­ tion Monday, was elected president of the industry needs more competition and free­ taneity, firmness, and conviction. He was Illinois Central Railroad, chief subsidiary of dom to compete, he said. Illinois Central Industries Inc. Asked If he blamed Government regula­ speaking from his heart and his mind, The announcement, which surprised many and he knew the answers. There was no tion more than railroad managements !or the members of the transportation Industry, was Industry's ills, Mr. Boyd said the industry hedging, there was no preparation. Inade at a press conference and luncheon for had enough trouble for everyone to share in Mr. GORE. Mr. President, will the Illinois Central shippers In Pittsburgh. spreading the responsibility. Mr. Boyd succeeds William B. Johnson as Senator yield? He predicted Mr. Boyd would ''provide out­ Mr. STENNIS. I gladly yield. president of the railroad, with Mr. Johnson continuing as chainnan and chief executive standing leadership," and be "increasingly Mr. GORE. I find it of some signifi­ officer. He also remains chairman and presi­ valuable" to Illinois Central as the time ap­ cance that Secretary Laird felt it advis­ dent of Illinois Central Industries. proaches "when the public Interest demands able to tell the committee that he would Employment of the 46-year-old Mr. Boyd more and more of the benefits that can be issue an order that no matter affecting is probably the most significant of a long generated by lntermodal operations." the Hewlett-Packard Co. would reach series of major personnel changes Mr. John­ Mr. Boyd said he believes a Government Mr. Packard. I do not know how Mr. son has made since he left the presidency of policy setting forth overall guidelines for Railway Express Agency Inc. to head the railroad mergers is needed in place or the Packard, as Deputy Secretary, could "case-by-case" approach utilized in the past. make decisions with respect to policy, Illinois Central in 1966. In the past two years he has assembled a That approach, he said, has failed to recog­ deployment of arms, armament pro­ management team that many competitors nize the "national picture." grams, and the further sophistication of concede may be the industry's most capable. He said Government subsidies are neces­ the weapons system without its having Instead of using the traditional rail industry sary for commuter railroad operations and an effect upon the electronics issue. This technique of promoting from within, he has possibly for longer-haul passenger runs In in itself exemplifies the existence of a obtained a number of key executives by cases where public demand for the service conflict of interest, which we are asked hiring top talent from other railroads and exists but It can't be met on a profitable Industries. basis. The Department of Transportation to approve. earlier this month announced a $25.2 million Obviously, with the unanimous sup­ BOYD'S RESPONSmn.rrms grant for replacement of cars In the Illinois port of the committee, with the recom­ In making the announcement, Mr. John­ Central's 40-year-old commuter fleet. mendation of a new President, with the son indicated Mr. Boyd will head this man­ Mr. Boyd also said he had a strong Interest grace which all of us wish to extend to agement team and have responsibility for in improving overall railroad industry service him, and with the flexibility we would all the day-to-day operations of the railroad. and Increasing freight car utilization. "It like to accord him in the selection of his Mr. Johnson, 50, said he expects to divide bis does little good for one railroad to break tts team, there is no chance to prevent the time between railroad and holding-company back providing good service and then have a duties. Sources close to Illinois Central be­ car delayed three or four days at a junction confirmation of the nomination at this lieve Mr. Johnson eventually will relinquish point," he said. point. his post with the railroad to devote full time His lack or committed positions in the field I should like to close by calling upon to a1fairs of the parent holding company. of labor-management relations should help Congress to consider this debate and to Mr. Boyd's starting salary will be $75,000 In that currently critical area for the rail­ let the issue on this conflict dramatize plus deferred compensation of $20,000 an­ roads, he said. nually and options not yet worked out. Mr. the note for a serious attack upon con­ ONCE SERVED ON CAB flict of interest, a practice which is grow­ Johnson said Mr. Boyd will assume his posi­ tion April 1 after a vacation. Mr. Boyd was sworn In as the first Trans­ ing bigger and bigger in our industrial­ In his position with Illinois Central, Mr. portation Secretary in January 1967 and the ized society. Boyd can be expected to be of considerable department formally came into being In Mr. STENNIS. Mr. President, I yield help because of his expert "Inside" knowledge April of that year. Previously, he had been 1 minute to the distinguished Senator of the complexities of Government regulation Under Secretary of Commerce for transporta­ from Arizona. of all forms of transportation. tion, a member and chairman of the Civil Mr. GOLDWATER. Mr. President, The Illinois Central currently Is engaged Aeronautics Board and chairman of the Flor­ earlier I commented that we hear much in several major efl'orts requiring Govern­ ida Railroad and Public Utilities Commis­ ment approval. The most significant ts an sion. talk about conflict of interest without application before the Interstate Commerce In Washington, the trim, tall former law­ knowing much about it. We tend to as­ Commission seeking to merge with the Gulf, yer and military pilot was known !or bis sociate it with nominations. I read from Mobile & Ohio Railroad. The merger would candid, witty and bold style. With the possi­ the Wall Streeet Journal of today an combine the 6,700-mlle, 14-state Illinois ble exception of the railroads, he managed interesting report, without making any Central system with the 2,700-mlle, seven­ through his policy proposals and their Imple­ charges. The headline is: state GM&O. Main routes or both roads run mentation to antagonize every mode o! Illinois Central Road Names as Presi­ from Chicago directly south to the Gulf transportation at some time or other as he dent Alan Boyd, Former Transportation Coast; the Illinois Central also runs from went about organizing the new department, Agency Chief. Chicago to Omaha, and the GM&O from Chi­ which now numbers 95,000 employes and cago to Kansas City, Mo. has a $6 b!lllon budget. "It may be that the The article contains the following "SOUGHT BY MANY OTHERS" bicycle makers are the only ones not mad at sentence: Mr. Johnson noted that Mr. Boyd's services him," It was said. The Department of Transportation earlier "have been sought by many others" because At Illinois Central he will run a railroad this month announced a $25.2 mllllon grant of his experience and quallflcE.tlons, and said with annual revenue in excess of $300 mil­ for a replacement of cars In the Illlnols Cen­ his decision to come to the Illinois Central lion and some 20,500 employes. In facing up tral's 40-year-old commuter fleet. should "reaffirm and hearten those who be­ to his new tasks, he jokingly said he recog­ lieve that railroads tn general and Illinois nized one Immediate problem: "As a former Also, the article states that Mr. Boyd's Central in particular have Important and Government official, I'll have difficulty oper­ salary will be $75,000 a year. productive work to do for the U.S. economy ating with the same sense of modesty I've seen In most railroad presidents." Ts this a conflict of interest. or is it in the years ahead." not? I do not think it is. But it is During his time in Washington, Mr. Boyd Mr. STENNIS. Mr. President, I thank demonstrative of what we have been has been regarded as an outspoken advocate the distinguished Senator from Ten­ or increased cooperation among all types of arguing about. We really do not know transportation, repeatedly urging an end to nessee for his unfailing courtesy, and much about the field of conflict of antagonisms among the various modes. "We I commend him for his presentation. interest. need to !ace the fact that, as we do not send I yield the floor. I believe that all time Mr. President, I ask unanimous con- dentists into court or send lawyers to fill has expired. 1684 CONGRESSIONAL RECORD- SENATE January 23, 1969 The PRESIDING OFFICER. One min­ Gravel McCarthy Muskie As it turned out, that prediction in the Hart Mondale Riblcoff ute remains. Hatfield Montoya Tydings New York Times proved to be inaccu­ Mr. STENNIS. I yield back the re­ Magnuson Moss rate. mainder of my time. Under established procedures a hear­ The PRESIDING OFFICER. All time So the nomination was confirmed. Mr. SCOT!'. Mr. President, I move to ing examiner's proposed decision in a has been yielded back. case is subject to review by the CAB, The question is, Will the Senate advise reconsider the vote by which the nom­ ination was confirmed. which is politically appointed. Of course, and consent to the nomination of David the CAB has authority to overturn or Packard to be Deputy Secretary of De­ Mr. BYRD of West Virginia. Mr. Pres­ ident, I move to lay that motion on the completely revise an examiner's recom­ fense? On this question the yeas and table. mendations. nays have been ordered, and the clerk In addition, the President of the Unit­ will call the roll. The motion to lay on the table was agreed to. ed States has authority, based upon his The legislative clerk called the roll. foreign policy responsibilities, to review Mr. BYRD of Virginia. I announce that Mr. STENNIS. Mr. President, I ask unanimous consent that the President any international phase of such a case, the Senator from Missouri (Mr. EAGLE­ and to rule independently thereon. TON), the Senator from Mississippi (Mr. be immediately notified of the confirma­ tion of the nomination. On December 19, 1968, about a month EASTLAND), the Senator from Arkansas before President Johnson would leave (Mr. FuLBRIGHT), the Senator from The PRESIDING OFFICER. Without objection, it is so ordered. office, the CAB and the President issued Alaska (Mr. GRAVEL), the Senator from their decision in the air route case. Michigan (Mr. HART), the Senator from As a result, Examiner Park's recom­ Washington (Mr. MAGNUSON)' the Sena­ LEGISLATIVE SESSION tor from Minnesota (Mr. McCARTHY), mendations were drastically revised the Senator from Minnesota (Mr. MON­ Mr. BYRD of West Virginia. Mr. Pres­ Braniff, Continental, and American Air­ DALE ), the Senator from New Mexico ident, I ask unanimous consent that the lines-which were excluded by the ex­

jets and more affluent travelers who want to to another carrier that already has rights to in which former presidential press secretary range farther from home. fly through Hawaii to the Orient. Or it could Pierre Salinger once served as a vice presi­ The Transpacific case Is unusual, beyond retain American's right to fly to Hawall but dent. The Board also overruled Park's rec­ Its size and complexity, because the CAB and designate another terminal In the Pacific to ommendation that Eastern serve Hawall President J ohnson have left an opening that which It must fly before turning around. through Mexico City. It gave that route to gives dissatisfied carriers a point of attack. No matter what the CAB rules, it may be Braniff, which has headquarters in Presi­ APPARENT SLIPUP faced with a • • • test • • • In a ruling that dent Johnson's home state of Texas, even though Braniff had not actively argued t.uat In an apparent slipup between the Board is the Board's exclusive jurisdiction. and the White House, decisions on American The President has complete and final say It wanted the route. Airline's routes were left unresolved when over international routes. The Board can Former White House aides Walter Jenkins t he case rulings were m ade public. only recommend. But the President has no and Ivan Sinclair are now executives with The Immediate problem started on Nov. 18, aut hority over domestic awards. Braniff. when the CAB recommended to President When he disapproved CAB's recommenda­ Taking away from Pan American the ad­ Johnson t hat American • • • part of an tion on American 's Tokyo route, the Presi­ ditional West Coast gateway cities that the overall revision of trans-Pacific rout es. dent said In the letter to Chairman Crooker: exa miner recommended to lllake it more The CAB, Insiders, say, was reasonably sure "I hope the Board will give consideration to competitive with Northwest. But the Board the President would approve because at least amending the domestic award to American retained the recommendation that North­ six of his former aides are now associated Airlines so as to enable it to serve Hawaii west, which has headquarters in Vice Presi­ wit h American. Moreover, Secretary of Com­ without long-haul restrictions." dent Humphrey's home town of Minneapolis, merce C. R. Smith is a former president of Some carriers, privately, contend that the be given additional interior cities from which American. President's statement can be construed as to fly to the Orient. The Japanese, however, protested strongly interference in the Board's business. Crooker The Board's deliberations over Park's rec­ to the State Department that Japan did not was obviously embarrassed by It and took ommendations are not on the public rec­ favor h aving another U.S. airline besides Pan pains to divert charges of Interference. ord. But some clues about the arguments American and Northwest flying to Tokyo. In a dissent to Issuing the domestic phase can be gleaned from the dissents attached rulings, in which he was joined by Mln­ to the CAB's findings. The Japanese government, which owns ettl, they said: "We are fully cognizant of controlling Interest In Japan Air Lines, did the line of demarcation between the Presi­ TWO CONCUR TOTALLY not want more competition for JAL. The dent's responsibilities and the Board's .. . Only Crooker and Minettl concurred totally Transpacific route Is by far JAL's biggest In the area of int erstate air transportation, in the final result. Vice Chairman Robert T. money-maker and, In effect, subsidizes other It Is exclusively the Board's . . . we do not Murphy criticized the elimination of TWA routes flown for prestige by the Japanese ffa.g regard the Presiden t's request for further from Tokyo, the principal traffic point in carrier. consideration of American's mainland-Ha­ the Orient, and pointed out that the route President Johnson, In a letter dated Dec. waii route as an attempt on his part to enter pattern has three carriers flying from Hawaii 17, told t he CAB that "foreign policy consid­ Into the area of our statutory jurisdiction." to Guam and Okinawa. erations" caused him to disapprove the route John G . Adams agreed with Murphy, con­ award to American. OPEN TO ACCU SATIONS tending that TWA's experience in Asia made CAU GHT BY SURPRISE American Is also In a ticklish position, for it a more logical choice for Tokyo. But he 1f the Board now gives it a Hawaii route, It agreed with the majority in the selection The CAB, caught by surprise, published Its will be open to accusations of Presidential rulings on the International portions of the of Continental over Eastern for the South favoritism. A spokesman for the airline de­ Pacific route. case Dec. 19. It withheld Its findings on the clin ed any comment on that point. domestic phase, primarily the covete..l routes Whitney Gilliland dissented from the en­ The Transportation case, clearly the larg­ tire decision. He would have chosen Eastern to Hawaii, until it could consider revisions est before the CAB In two decades, opened forced by t he President's disapproval of over Continental for part of the Hawaii in February, 1967 with hearings before ex­ route. More important, he said, he did not American's Tokyo route. aminer Robert L. Park. Before Park con­ CAB originally recommended that Ameri­ cluded the hearings in June that year , 433 agree with the increase in number of car­ can be permitted to tty to Hawaii and on riers and argued that the same services could witnesses submitted testimony, 18 airlines have been achieved without breaking up the to Tokyo but not to Hawaii and turnaround asked for routes, dozens of municipal au­ back to the mainland. thorities and other interested par ties pre­ routes among carriers. The President's action meant that Amer­ sented their points of view. After the CAB recommendations went to ican could get to Hawaii but couldn't fly Park's recommendations to the CAB were, President Johnson, the White House Intended back. In the main, that: to have its decisions out In time to close the CAB's withholding Its domestic route rul­ Trans World Airlines became the second case before the new Administration took ings, however, touched off a roar among the U.S. round-the-world carrier, extending its over. carriers. Delta, Western, and National, later service from the U.S. through Hawaii and But there was a miscalculation. Christmas backed partially by Eastern, demanded that Guam to Tokyo and then to join up with and New Year's Day do not count in the 30 the CAB release Its domestic findings Imme­ its Southeast Asia service In Hong Kong. days for reconsideration, which spilled the diately. Eastern Airlines be put Into competition case over into the Nixon Administration. The They contended that everyone should with Pan American in the South Pacific, fly­ uproar over splitting the domestic and Inter­ know all of the findings before they could ing from 11 Eastern and Midwestern cities national decisions and the sudden move to decide what appeals for reconsideration they to Hawaii without passing through the Cali­ repair that threw the case even further Into could make to the Board. This, in turn, fornia gateways. Eastern would be permitted the new Administration. touched off an argument within the Board. to fly beyond Hawaii to Tahiti, Samoa, Fiji, Most airlines will wait until the Jan. 24 LEFr UP IN AIR New Zealand, and Australia. deadline to file their petitions for recon­ sideration. But many have already given Chairman Crooker and member G. Joseph Pan American, serving the Orient through Minetti argued that the American route Hawaii, be given a great circle route through indications of what they plan to do. question should be settled before the do­ Alaska to Japan. Northwest, flying to J apan American says it will definitely ask that mestic findings were published. But they over the great circle, would be granted a the confusion over its Hawa11 run be re­ lost and the Board voted to issue domestic Hawaii-Central Pacific route to Asia. These solved. A spokesman said it has not decided decisions J an. 4, leaving American still up awards would put the two carriers in direct whether to ask the Board to recommend a in the air. competition. new ruling on the Hawa11-Japan segment to United Airlines, already flying the Cali­ the new President. CAB also set Jan. 24, four days after Mr. fornia-Hawaii route, be given 12 Eastern and TWA says It has not decided whether to Nixon's Inauguration, as the deadline for re­ Midwestern cities from which It could fly file a petition. But a spokesman said that ceiving petitions for reconsideration in both to Hawaii non-stop. Western Airlines would with President Nixon having a shot at the the International and domestic phases of the get two new routes to Hawaii from Western question, they find the situation case. For 10 days after that, the Board will cities and from Anchorage, Alaska. receive counter-arguments and then m ake its "interesting." The CAB, while accepting many of Park's TO ASK RECONSIDERATION decision. basic principles for a new route pattern, The CAB Is confronted with a t least four drastically revised his recommended car­ Delta which got nothing, says it will ask alternatives, with pressures coming from riers. The major changes Included: for reconsideration on the domestic phase, all over to rejigger the whole route pattern Taking TWA out of Tokyo and giving it a to Hawaii, and possibly in the International, it has established. rout e from Hong Kong through Taiwan and to Japan, which it originally wanted. One Is simply to take away American's Ha­ Okinawa to Guam and Hawaii-a route the Eastern, which also got nothing, will peti­ waii route altoget her and rule the case Board admitted is weak. One member called tion for reconsideration on both phases, hop­ closed. A second would give American the It anemic. The Hawaii-Japan segment, the ing to get into Hawaii and on to the South right to fly to Hawaii and back to the main­ most profitable In the Pacific, was given Pacific. land. to American, represented by President John­ Pan American says it will definitely appeal MORE TROUBLESOME son's ex-aides. the domestic decision, seeking authority to The two others are more troublesome for Taking the South Paciflc route from fly from interior U.S. cities to Hawa11 and the Board. It could give the American route Eastern and giving it to Continental, a line beyond, as Northwest will be permitted to do. 1688 CONGRESSIONAL RECORD- SENATE January 23, 1969 It may also seek reconsideration on the inter­ prohibited by law anyway, but did not for­ area, including Dulles and Friendship, national phase. ever bar himself from doing airline busi­ Northwest says It is satisfied and probably ness In private life. would help relieve the situation. I testi­ will not petition on the international runs Here, then, Is a delicate conflict-of-Interest fied at the opening session to urge CAB but hasn't decided on the domestic phase. question. If Pierson does now represent TWA, action to bring about a greater use of United spokesmen had no comment on his work in the White House on the Trans­ Dulles. There was hope in the beginning their plans. pacific case wm be considered suspect, prob­ that the CAB could bring about an in­ Branlfl' says lt ls "extremely pleased" but ably unfairly. Moreover, if the Transpacific formal agreement among the airlines to has not decided whether to appeal for more. case is reopened by Mr. NIXon, there will be shift some of their flights to Dulles, but Continental also said It is "very pleased" but whispered questions about whether Pierson that has not come to pass. It now ap­ will ask. !or more terminal cities on the main­ as TWA's Washington counsel 1s completely land from which to fly to Hawail and the keeping out of intra.firm discussions of this pears that if this investigation is to South Pacific. vital case. produce any meaningful results, the CAB Western appeared happiest of all. It put Actually Call!ano, McPherson, and Pierson will have to hold time-consuming, formal out a press release last week saying lt was are the more being suspect of the rainmaker hearings before amending any existing "elated" with its awards. syndrome. Most airlines seek out political op­ airline certificates to require that serv­ erators. The airlines with the highest per­ ice to Washington be furnished through (From the Washington Post, Jan. 22, 1969] centage of such rainmakers-Braniff, Conti­ Dulles. NIXON LoOKING AT AIRLINES' HIRING OF nental, and American-won highly lucrative Many Senators will recall the con­ INFLUENTIAL GOVERNMENT AIDES routes from the highly political CAB. These gested conditions at major airports in the (By Rowland Evans and Robert Novak) three airlines had been given absolutely nothing in new routes by the CAB exainlner's eastern portion of the Nation last sum­ Clouds of suspicion overhandging the half­ recommendation made after months of hear­ mer. That situation prompted the Fed­ b1llion-dollar Transpacific air route case will ings and deliberations. eral Aviation Administration to propose increase if the aide to former President John­ The CAB Increased Braniff's route mileage rules to curtail use of certain designated son who worked on the case becomes, as now by 200 per cent in the Transpacific case and seems probable, Washington lawyer for an high-density airports, including Wash­ the concunent Caribbean-South America ington National. I appeared at the FAA airline that benefited from the case. case. LBJ cronies Troy Post and Jimmy Ling W. DeVier Pierson, Mr. Johnson's staffer in control Braniff; the company's payrolls In­ hearing, too, with the suggestion that the stormy case, is a well-regarded young clude LBJ insiders Walter Jenkins and Cliff greater use of Dulles would help relieve Oklahoman with a spotless record as assistant Carter. some of the problem at National. The White House counsel. He would not be The list of rainmakers tor other airlines FAA's proposed regulations have created breaking any conflict-of-interest statute by benefitting from the CAB decision after be­ a considerable controversy and there has working for the airline, and the ethical con­ ing ignored by the exainlner reads like a siderations are foggy. been no positive action on the National who's who of the Great Society. LBJ Inti­ situation from this quarter to date. Yet, a regulator quickly joining the well­ mate Warren Woodward is a vice president paid ranks of the regulated typifies the syn­ of American; ex-Johnson aides Horace Busby I have said repeatedly that the exist­ drome of regulated industries generally and and Jake Jacobsen are on American's pay­ ence of the two federally owned airports the aviation industry in particular. Depend­ roll. Continental is represented in Washing­ in the vicinity of the Nation's Capital ing on favorable Government decisions for ton by Secretary of Defense Clark Clifford's with such an imbalance of traffic as there their very survival, airlines hire men of law firm; LBJ insider Lloyd Hand ls closely is between National and Dulles defies any political infiuence--"rainmakers" in the in­ connected with Continental. dustry's jargon. logical explanation. The most recent These Democratic rainmakers may well be figures available show that more than 9 Coincidence or not, companies with the considerably less effective in Mr. Nixon's heaviest concentration of rainmakers won Washington, but politically astute airline million passengers utilized National dur­ handsome prizes in the Transpacific case. companies have Republican rainmakers as ing the first 11 months of 1968 compared Thus, weeks before his Inauguration, well. That's one reason why Mr. Nixon, as he with only 1.6 million at Dulles. President Nixon was looking quietly and considers his inherited Transpacific mess, Mr. President, again I regret the delay closely at not only the Transpacific case may decide the whole potentially corruptive Mr. Humphrey experienced. I regret de­ (which he must now review) , but also at system needs immediate reform. the whole regulat ory process and its rain­ lay for any air traveler. Congestion at maker syndrome. airports is a growing national problem, At stake In that case are new air routes but there is less excuse for it here than to Hawa!! and beyond to the Orient worth DELAYS AT WASHINGTON NA­ perhaps at any other major city, and I $500 Inlll!on in annual revenue. In an indus­ TIONAL AIRPORT hope the responsible Federal agencies try where m ore companies are ailing than Mr. SPONG. Mr. President, according will find a prompt solution to this in­ healthy, the Transpacific case's final outcome to the Washington Post this morning, tolerable situation. could mean life or death to some airlines. Since the case opened June 15, 1965, airline the former Vice President, Mr. Hum­ Mr. BYRD of West Virginia. Mr. Pres­ payrolls have been loaded with rainmakers. phrey, was delayed 3 hours leaving ident, I suggest the absence of a quorum. Indeed, the Industry late last year was Washington National Airport Tuesday. The PRESIDING OFFICER. The clerk reaching into t he White House so deeply that As a result, he had to cancel some of his will call the roll. some key aides barred themselves from re­ schedule in Cleveland so he would not be The bill clerk proceeded to call the roll. viewing International aspects of the Civil late for a speaking engagement. Mr. BYRD of West Virginia. Mr. Pres­ Aeronautics Board's (CAB ) decision-the The experience prompted Mr. Hum­ ident, I ask unanimous consent that the President's const it utional responsibility in the case. phrey to describe the situation a t Wash­ order for the quorum call be rescinded. Joseph Califano, Mr. Johnson's general ington National as almost intolerable. He The PRESIDING OFFICER. Without handyman, disqualified himself because he told a Cleveland press conference, ac­ objection, it is so ordered. was joining a law firm representing Braniff cording to the Post, that the airport here International in Washington. So did White is trying to do a job too large for its House Counsel Harry McPherson, who is size and facilities. The news report says SPOTLIGHT ON SENATOR MARGA­ joining a Washington law firm representing Mr. Humphrey said something would RET CHASE SMITH Northwest Airlines. The job was handled have to be done to move more traffic to Mr. AIKEN. Mr. President, I hold in entirely by McPherson's deputy : DeVler Dulles International Airport. He said he my hand a small, attractive magazine Pierson. thought it was a shame that Dulles, By the fall of 1968, prior to Mr. Johnson's called "City East, a Magazine for New decision In the Transpacific case, airlines which represents a great investment of Yorkers." were also eyeing Pierson for post-Govern­ taxpayers' dollars, was used so little. One section of this magazine is called ment legal service. But, Pierson told us, he Mr. President, while I regret any in­ "Senatorial Spotlight." This month it refused to talk to anybody until after Presi­ convenience Mr. Humphrey may have features a biography-or a little more dent Johnson's decisions were announced experienced, I am pleased that he has than a biography, a very complimentary Dec. 19. called attention again to the congestion article-on Senator MARGARET CHASE Since then, he has been sounded out by that exists at National Airport and the SMITH, of Maine. I ask unanimous con­ Continental Airlines, which fared very well need to shift a greater amount of Na­ sent that the article entitled "Senatorial indeed in the Transpacific case. However, he tional's traffic to Dulles. is more likely to join a Washington law firm Spotlight," written by George Douth, and representing Trans World Airlines (which Approximately 18 months ago the Civil published in City East for January 1969, did fairly well in the case) and handle the Aeronautics Board initiated an investi­ be printed in the RECORD. TWA account there. Pierson told us he gation of congestion at Washington Na­ There being no objection, the article would not represent any airline in connec­ tional to determine whether a greater was ordered to be printed in the RECORD, tion with the Transpacific case, which is use of the airports in the Washington as follows: January 23, 1969 CONGRESSIONAL RECORD- SENATE 1689

SENATORIAL SPOTLIGHT as nominee. The General did poorly. He did o! the Cordlner Committee that drafted the 1968 pay act contlnned her report. (By George Douth) not have his facts in hand, and Senator Smith did. Adroit In handling documented • RESEARCH AND DEVELOPMENT CAPABILITY Senator Margaret Chase Smith h86 always data, imperturbable and precise, she formu­ spoken out in the councils o! the Senate !or In Senator Sinith's judgment, during the lated questions that cut through to the Johnson Administration, there has been a the· strongest possible national de!ens&-­ very bone, and the General soon was caught and !or a finn foreign policy to inatch it. serious deteriorat ion of the strength o! our with his feathers down. In fact, the record national security and defense resulting from As ranking Republican on the Space Com­ of the hearing looked so bad when it got mittee, the Armed Services Committee, its a destructive two-fold policy and theory of back to the Air Force that it was given what (a) cost effectiveness and (b) scaling down Preparedness Investigating Subcommittee the White House called "clarification" for and its Central Intelligence Subcommittee; our mll!tary capability toward nothing more the permanent record. Clarified O'Donnell than parity with Russia on the theory that third rianking on the Appropriations Com­ was a far cry from the confused O'Donnell mittee and second ranking on its Department such parity would result in stalemate and of the hearing. that stalemate would result in peace. The o! Defense Subcommittee, she exercises an Altogether, Mrs. Smith thought the nomi­ influence over the whole range o! national disastrous results o! this pollcy and theory nation was an unconscionable business, and are evident from our weakened position defense. No other woman has ever equaled other senators agreed with her when it her position o! power in the United States around the world. reached the Senate floor, Stewart's promo­ The Senator has cautioned against any Senate. tion was not approved, although it was As a member o! a subcommittee on con­ narrow and shortsighted emphasis on any backed by a resounding majority o! the single defense system. Instead she urged em­ gested areas o! the Committee on Naval Af­ Armed Services Committee. fairs in the House or Representatives. she phasis on priority !or research and develop­ Stewart's promotion came up again and ment because she is convinced that the fore­ traveled throughout the country in 1943 to this time he had done his training. Senator find the cause o! bottlenecks in the Navy's most power and leadership will be achieved Smith voted in his favor-but only after not by that nation which possesses the great­ war effort. It is one of the very few 1! not the the Pentagon assured her that, in the event only subcommittee that earned a Presiden­ est resources, natural, Inilitary or industrial, o! active duty, Stewart would be in publlc but rather by the nation which possesses the tial Unit Citation, which was given to it by relations and not !n the other more criti­ President Franklin D. Roosevelt. greatest research and development capability. cal job. The Senator has stressed that the space When the long, hard months o! subcom­ Senator Smith bas served as a Lieutenant Inittee work were over Mrs. Smith found her­ program is not merely a race to beat Russia Colonel in the Air Force ReServe. As the ac­ to landing a man on the moon. It is not only self deeply committed to the cause o! better­ knowledged Champion o! Reserve legislation ing national defense. The absorbing interest a moon program. Instead, !t is designed for in Congress, she has been cited !or her serv­ the security o! our country, the exploration has continued ever since. She served on the ice by the Air Reserve Association, the Na­ House Naval Affairs and Armed Services Com­ o! our universe, and the various spin-off tional Guard Association and the Reserve benefits that now-not just tomorrow-pro­ mittees unto her election to the Senate in Affairs Association. 1948. vide !or improvement in our health and en­ MORALE OF THE MILITARY joyment o! daily living. THE ARMED FORCES AND RESERVE AJTAIBS According to the Senator, Pentagon poli­ Margaret Chase Smith, daughter of George She has been a pioneer in some important cies on the Reserve since mid-December 1964 Emery and Carrie (Murry) Chase, was born legislative landmarks !or the Reserve and have resulted in undermining and weaken­ in Skowhegan, Maine, December 14, 1897. She she takes more pride 1n these pioneering ing the Reserve. The attempt to push the il­ attended Skowhegan public schools and achievements than 1n banner headline bat­ legal proposed merger o! the Reserve and graduated from Skowhegan high school in tles won. National Guard-without leg!slat!on--

EXTENSIONS OF REMARKS CONSUMER EDUCATION IN THE elude two from the affluent area west of I am reminded of a remark that New York SCHOOLS Rock Creek Park. Traffic Couunissioner Wylie made at his final press conference upon his retirement. He was asked whether he had any answer to Man­ HON. JOSEPH D. TYDINGS CONGRESSMAN OTTINGER DIS­ hattan's traffic congestion. He thought for a while and then said , yes he did, and he OF MARYLANll CUSSES "CHALLENGE FOR TODAY: A LIVABLE CITY" thought maybe it was the only answer. IN THE SENATE OF THE UNITED STATES "Make all the north-south streets one way going north and in 24 hours it would be Thursday, January 23, 1969 HON. THADDEUS J. DULSKI Westchester's problem." Mr. TYDINGS. Mr. President, the Dis­ OF NEW YORK As a Westchester representative, I can't say I'm too enthusiastic about that Idea, but trict of Columbia school system, in co­ IN THE HOUSE OF REPRESENTATIVES operation with the neighborhood legal I do recognize a strong element of truth in it. Wednesday, January 22, 1969 The answer to urban and suburban traffic services program of the Office of Eco­ congestion is to get the cars off the city nomic Opportunity, is innovating a con­ Mr. DULSKI. Mr. Speaker, the first streets and the only way to do that is to sumer education program which I feel anniversary meeting of the New York offer people a better way to get around. should serve as an example to be fol­ State Association of City Councils was Every local official recognizes this and lowed by other communities across the held last weekend in my home city of would give high priority to mass transit if Nation. Buffalo, N.Y. he could. The basis of the program is a law As a former member of Buffalo's com­ But the local official has relatively little course being offered to the elementary mon council, I am well acquainted with power under the present system and is de­ and junior high students in the 30 pendent upon the mercies of the state. the problems faced by our cities today, In 1967, we New Yorkers authorized a $2'!:, schools in the District. The course, "You and I am very much interested in the b1111on transportation bond issue which was and the Law-Rights and Responsibili­ success of this organization. Together, to be the panacea for our transportation ties," is designed to teach youngsters the through this organization, members of problems. Today, two years later, we've made rudiments of the law so that they will the city council of our cities in the Em­ virtually no progress, and what we have know when creditors are taking advan­ pire State may be able to help each other done has been going in the wrong direction. tage of them. The children, in turn, will and, at the samE> time, to work collec­ Of the $523 m1lllon in bonds and notes that have sufficient background in credit buy­ tively to deal with these problems. have been issued, 90 per cent has gone for ing to be able to give advice when their The new State association is restricted new highways. Barely 10 per cent has been committed to the kind of mass transporta­ parents purchase goods on credit. to cities outside Metropolitan New York tion that is really needed by the new urban An article describing the program ap­ City of 30 ,000 or more population. suburban c1v1lizatton we live in today, and peared in the January 7 edition of the One of the main speakers at the Buf­ almost all of that has gone to make up the Washington, D.C. News. I would like to falo meeting was my colleague, the gen­ deficit without improving service on the fast share it with my colleagues, and there­ tleman from New York (Mr. OTTINGER ) . deteriorating Long Island Railroad. fore ask unanimous consent that it be Following is the text of his remarks: From every corner of the State, citizens printed in the RECORD. CHALLENGE FOR TODAY : A "LIVEABLE" CrTY are protesting against the depredations of new highways. Here in Buffalo, it is the Ken­ There being no objection, the article (Address by Congressman RICHARD L. OTTIN­ was ordered to be printed in the RECORD, more Expressway. In my own district, it is GER before the New York State Association the Hudson River Expressway. I know there as follows: of City Councils, Buffalo, N.Y., January 17, 1969) are citizens who have a suspicion that the CHILDREN To LEARN LAW To HELP PARENTS State's answer to difficult problems is to pave D.C. schools and Neighborhood Legal Serv­ I am pleased and honored to Join with you them! But the State officials who have the ices wm try to keep Washington parents from at this first anniversary meeting of the New authority are not listening, are not re­ being gyped in credit buying and home pur­ York State Association of City councils. Your sponsive to the real needs. chases by giving their children a basic course membership h as one of the most challeng­ This attitude that "big brother knows ing-and, potentially, one of the most legis­ best" is reflected in almost every State pro­ in law. lative responslblllties in the country today. Lawyers and school officials hope the 1,500 gram affecting our cities. The formation of this Association 1s a wel­ elementary and junior high students in 80 come advance toward strengthening the role In 1968, Governor Rockefeller introduced schools who take the "You and the Law­ of local officials in meeting the great new his proposal for dealing with the problem of Rights and Responsiblllties" course will re­ challenges of urban-and suburban-Amer­ our inner cities. What he called for was not member what they have learned when their ica today. a program of State aid to help our cities act parents decide to buy a house or a car. Juve­ The constituency you represent now com­ to resolve their own individual and unique nile and family law as well as Constitutional prises the overwhelming majority of our peo­ core city problems. No. He called for an Ur­ safeguards also will be covered. ple---and our n ational problems. To a very ban Development Corporation with the power The law program is scheduled to start in great extent, the future of this country ts to condemn private or municipal property February and March with Neighborhood going to depend on our effectiveness in re­ and then bu1ld what ever the corporation Legal Services lawyers supervising what is to solving these problems and creating a live­ thinks is a necessary project for the city. Of be taught. able and economically viable economy. course, local officials can participate in hear­ Beginning today teachers are undergoing It is my conviction that an essential ings and present plans. modifications and two days of orientation for the course. ingredient in any resolution wm be to alternatives, but any of you who have par­ A similar program has been carried on strengthen and enlarge the powers and the ticipated in Transportation Department Informally for three years in 11 Southeast respons1b1l!t1es of the people who are most hearings know how effective that is. sixth grade classes by Dr. Katherine Nutter­ responsive to the needs of our urban popu­ We are trying to approach the problems of v1lle, an 80-year-old VISTA voluteer assigned lation, the local officials. This ts the reason the new urban-suburban society with gov­ to Neighborhood Legal Services. that I am so enthusiastic about the forma­ ernmental tools designed for a world we have The expanded law course has no specl.fic tion ot this A..csociation and the role it can left behind. The answer is not to grant un­ curriculum, said Mrs. Irene Rich, program play. limited powers to the State. The State must coordinator. If it is successful, parents, Let's take a simple problem: transporta­ be held to strict standards which w111 assure teachers and students may write a permanent tion. If the metropolitan complex is going full participation in planning and execution curriculum over the summer, she said. to work it needs a fast, efficient system for of projects to the officials who are directly Under the pilot program, each class wm moving people around. responsive to the people who m 3.ke up our pick a problem people in its neighborhood A modern highway system is essential to a new social structure; to give a meaningful wm face and learn how to solve it. "For ex­ strong and growing national economy, but say to the m ayors and managers, the council­ ample it might be how to buy a television," experience and reason both combine to prove men, aldermen and supervisors-and through Mrs. Rich said. that automobiles and highways aren't the adequate hearing provisions, to the people The 30 schools carrying the program in- answer to the city's transportation problem. affected. There must also be adequate pro-