May 17, 1978 EXTENSIONS OF REMARKS 14221 total authorized strength of such units and ber of civilian personnel authorized for the in the same locality during the last preced­ by the total number of such individual Department of Defense by subsection (a) of ing calendar year elapsing before the start members. this section. The Secretary of Defense shall of the twelve-month period (beginning promptly notify the Congress of any authori­ July 1 of each year) in which the claim for TITLE V-ciVILIAN PERSONNEL zation to increase civilian personnel strength the payment is submitted/ '. SEc. 501. (a) For the fiscal year beginning under the authority of this subsection. (2) Section 1086 of such title is amended October 1, 1978, and ending September 30, TITLE VI-MILITARY TRAINING by adding at the end thereof the following 1979, the Department of Defense is author­ STUDENT LOADS new subsection: ized an end strengt h for civilian personnel " (f) The provisions of section 1079 (h) of 1,007,531. SEc. 601. For the fiscal year beginning Octo­ of this title shall apply to payments for (b ) The end strength for civilian person­ ber 1, 1978, and ending September 30, 1979, physician services under a plan contracted nel prescribed in subsection (a) of this sec­ each component of the Armed Forces is au­ thorized an average military training student for under subsection (a) .". tion shall be apportioned among the De­ (b) The amendments made by subsec­ load as follows: part ment of the Army, the Department of tion (a) shall apply with respect to claims the Navy, including the Marine Corps, the (1) The Army, 67,843; (2) The Navy, 58,086; submitted for payment for services pro­ Department of the Air Force, and the agen­ vided on or after the first day of the first cies of the Department of Defense (other (3) The Marine Corps, 21 ,324; (4) The Air Force, 44,917; calendar year beginning after the date of than the military departments) in such enactment of this Act. numbers as the Secretary of Defense shall (5) The Army National Guard of the , 11,793; By Mr. SKELTON: prescribe. The Secretary of Defense shall re­ TITLE VII-ciVIL DEFENSE port to the Congress within sixty days after (6) The Army Reserve, 5,959 : the date of enactment of this Act on the (7) The Naval Reserve, 991; On page 27, immediately after Line 23 in­ manner in which the initial allocation of (8) The Marine Corps Reserve, 3,074; sert the following new section: civilian personnel is made among the mili­ (9) The Air National Guard of the United "SEc. 702. (a) From the sum authorized tary departments and agencies of the De­ States, 2,471 ; and to be appropriated to the Defense Civil Pre­ partment of Defense (other than the military (10 ) The Air Force Reserve, 1,184. paredness Agency pursuant to Section 701 departments) and shall include the rationale TITLE VII-DEFENSE CIVIL PREPARED­ of this act, the sum of $200,000 shall be used for each allocation. NESS AGENCY for a study of the special civil defense needs (c) In computing the authorized end of areas which contain significant elements SEc. 701. Funds are hereby authorized to be of the United States' strategic nuclear re­ strength for civilian personnel there shall appropriated during the fiscal year 1979 for be included all direct-hire and indirect-hire carrying out the purposes of the Federal Civil taliatory forces. civilian personnel employed to perform mili­ (b) The study provided for in subsection Defense Act of 1950, as amended, for the (a) of this section shall include, but not tary functions administered by the Depart­ Defense Civil Preparedness Agency, in the ment of Defense (other than those per­ be limited to, the following information: amount of $96,500,000. (1) An identification of areas in the formed by the National Security Agency) This Act may be cited as the "Department whether employed on a full-time, part-time, United States which because they contain of Defense Appropriation Authorization Act. significant elements of the United States' or intermittent basis, but excluding special 1979". employment categories for students and dis­ strategic nuclear retaliatory forces are prime By Mr. CORNWELL: targets in case of a nuclear attack. advantaged youth such as the stay-in-school TITLE V-CIVILIAN PERSONNEL campaign, the temporary summer aid pro­ (2) A determination of what civil defense gram and the Federal junior fellowship pro­ Page 24, line 18 : delete 1 ~ , and insert 2. evacuation and shelter plans and warning gram and personnel participating in the By Mr. HILLIS : systems are now available or are proposed worker-trainee opportunity program. When­ Page 38, after line 9, add the following new to be available to these areas. ever a function, power, or duty, or activity is section: (3) An evaluation of the effectiveness of these existing evacuation and shelter plans transferred or assigned to a department or CEILING FOR PAYMENTS TO PHYSICIANS and warning systems. agency of the Department of Defense from UNDER CHAMPUS a department or agency outside of the De­ SEc. 812. (a) (1) Section 1079 of title 10, (4) A determination of the feasibility of partment of Defense, or from another de­ United States Code, is amended by adding at establishing more effective evacuation and partment or agency within the Department the end thereof the following new subsection: shelter plans and warning systems for these of Defense, the civilian personnel end " (h) Payment of a charge for physician areas, and a determination of the potential strength authorized for such departments services for which a claim is submitted under costs and methods of financing. or agencies of the Department of Defense a plan contracted for under subsection (a) (5) A detailed analysis of the specific ef­ affected shall be adjusted to reflect any in­ may be denied because the charge is in ex­ fects of a nuclear attack on each of these creases or decreases in civilian personnel re­ cess of a predetermined charge level based areas. quired as a result of such transfer or assign­ up0n customary charges made for similar (6 ) A determination of the need for edu­ ment. services in the same locality only to the ex­ cating and the most effective methods of (d) When the Secretary of Defense deter­ tent that such charge is in excess of the educating the public in these areas on civil mines that sut::h action is necessary in the charge level that, on the basis of statistical defense matters. national interest, he may authorize the em­ dat a and methodology acceptable to the Sec­ (c) The study required by this section ployment of civilian personnel in excess of retary of Defens.-, in consultation with the shall be complete, and copies filed with the the number authorized in subsection (a) of Secretary of Health, Education, and Welfare, Committees on Armed Services of the Senate this section but such additional number may is P.quivalent to the 90th percentile of the and House of Representatives, before April 1, not exceed 1 ~ per centum of the total num- customary charges made for sirnilar services 1979.

EXTENSIONS OF REMARKS WARPLANES PACKAGE SHOULD ously question the logic of this weapons the most influential voices in the Arab HAVE BEEN SHOT DOWN sale at this time. world-and a country which has done The administration's contention, that little to promote peace in the Middle HON. BILL FRENZEL distributing advanced weaponry is con­ East. It has not joined the more radical ducive to peace, simply does not make Arab States in attacking the peace ef­ OF MINNESOTA sense. forts of President Sadat, but it has failed IN THE HOUSE OF REPRESENTATIVES To make matters worse, the adminis­ to endorse openly President Sadat's ef­ Wednesday, May 17, 1978 tration has timed this sale at a time forts. Saudi Arabia's failure to com­ when peace negotiations are stalled. mend Sadat publicly has weakened e Mr. FRENZEL. Mr. Speaker, in my Egypts standing in the Arab world and judgment, the warplanes package ap­ Rather than offering an incentive to the proved by the Senate Monday is danger­ Egyptians to resume the discussions, the the chances for peace. ously flawed in conception, timing and administration, by submitting the war­ Even if the Saudis have supported structure. planes package at this time, is reward­ Sadat privately, this stands in sharp If our Government is really committed ing them for not negotiating. contrast to their public support of the to bringing about a just and lasting One must also question the timing of PLO. In 1976, Saudi Arabia provided in peace in the Middle East, one must seri- the plane sale to Saudi Arabia--one of excess of $40 million to the military arm

Statements or insertions which are not spoken by the Member on the floor will be identified by the use of a "bullet" symbol, i.e., • 14222 EXTENSIONS OF REMARKS May 17, 1978

of the PLO. They have also provided as­ It may not be prudent to provide this surprising, as in the last year alone, Congress sistance to other branches of the ter­ advanced aircraft to Saudi Arabia, a has seen eighteen di1Ierent national health rorist organization. Publicly, the Saudis insurance oroposals placed before it. The sys­ country who just 3 years ago had its teins proposed within this maelstrom of leg­ have praised PLO terrorist missions leader assassinated; a country where, ac­ islation range from total reconstruction of against civilians, including the March cording to former Army Counterintelli­ the health system in America to federal as­ 11 "Sabbath Massacre" in which 41 per­ gence Officer Tom Gervasi, "security is sistance for health expenses above $2,000. sons died. loose * * * some of its airport technicians These proposals represent the particular Clearly, the administration's timing is are Syrian, Iraqi, and Palestinian aliens interests of t heir sponsors and supporters. off in presenting this package at this who could be Soviet sympathizers." These include the AFL-CIO, United Mine time. This deal should be postponed to Workers, American Medical Association, It is hard to see how the sale can have Health Insurance Association of America, emphasize to Egypt and Saudi Arabia any effect except to make negotiating and American Hospital Association. Yet di­ that the United States is displeased for a final peace settlement more diffi­ verse as they are, all of these bills tend to with their hesitancy to make decisive and cult. The Israelis have no incentive to fall within two basic categories. Therefore, public movements toward negotiating for bargain. The last time they made an only the categories, and the most attractive peace with Israel. bills within each, will be considered. agreement at our request, we reneged on The first category calls for a complete re­ In addition to the timing of this sale, our promise. The Arab nations have no I find the administration's unprece­ structuring of health services and finances, incentives, either. We send them arms similar to those existing in Europe and Can­ dented insistence that sale of arms to Is­ anyway. rael be contingent on arms for Arabs, ada. In America, this type of proposal is best This package is a threat to our secu­ known, and represented, by the Health Secu­ unwise and unjustified. The congres­ rity Act, known as the Kennedy-Corman bill, sional veto was intended to apply on a rity, to Israel, and to peace in the em­ battled Middle East.e also known as H.R. 21. sale-by-sale basis, not for consolidated This system, by far the most innovative packages. ever seen in the United States, calls for fed­ In 1975, when Israel agreed to enter eral financing of all health care in this coun­ the Sinai II agreements, the United NATIONAL HEALTH INSURANCE try. Private insurers would be replaced by States made a commitment to supply agencies of the :9epartment of Health, Edu­ advanced fighter-bombers to Israel. Is­ cation, and Welfare, who would regulate and rael agreed, returned territory to Egypt, HON. CLARENCE J. BROWN administer payment of health providers (the legal term for doctors, hospitals, etc.) . The and in return has had her airplane re­ OF OHIO quest reduced. Now Israel is told her entire system, as part of the federal govern­ arms will only be delivered if the Arabs IN THE HOUSE OF REPRESENTATIVES ment, would be budgeted by Congress. Its Wednesday, May 17, 1978 budget would be limited to a percentage of also receive weapons. Is it any surprise the gross national product, and would there­ that Israel is hesitant to further with­ • Mr. BROWN of Ohio. Mr. Speaker, the by contain the escalating costs of health draw from her territory? Marion-Union Counties Committee of care. The system would operate on a regional While the Arab nations can and do my Seventh Ohio Congressional Youth basis, supervised by a national council. If a receive weapons from many nations, in­ Advisory Council recently completed its particular region threatened to exceed its cluding Russia, Israel can only look to study of national health insurance pro­ allocation, payment of all providers in the America for her security needs. posals. The members of the committee region would be reduced to levels which This sale touches on another aspect included: Chris McCord, chairman; would meet the budget. of Israel's security, namely, the use of Christy Fisher, secretary; Marcus Al­ ALL WOULD BELONG the Saudi weapons against Israel. The bernaz, Marty Harrison, Tom Haviland, All Americans would belong automatically F-15 would be capable of striking at Is­ Dave Hesse, Kathy Knapp, Lisa Mead, to the system, and would therefore no longer rael within 6 minutes of leaving Saudi David Miller, Jill Reasoner, and Sheryl need to purchase insurance, or pay for medi­ Arabia at Tabuq airfield. The Saudis Zug. The following is the report which cal services. Providers would be paid by the would have us believe that the F-15 they submitted to me. federal government, and it (the government) would only be used in defense against would in turn finance the system through a NATIONAL HEALTH INSURANCE 3.5% tax on employers' payrolls; a 1 % tax aggressive neighbors but in light of re­ In America today, we are told, only de81th on employees' wages; and a 2.5 % tax on self­ cent history, this statement is hard to and taxes are inevitable. But aside from employed and unearned income. All current believe. During the Yom Kippur war, the these, there are a number of things which, federal health systems, such as Medicare and Saudis transferred soldiers, jeeps, half­ if not inevitable, occur with alarming fre­ Medicaid, would be abolished and their fund­ tracks, artillery, anti-aircraft units and quency. One of these is the need for medical ing used in the new system. helicopters to Egypt, Jordan, and Syria. care. Neariy every American, at some time in The bill would establish minimum stand­ his life, will require the services of a doctor, ards for subscribing providers, and establish It is possible that F-15's could be trans­ dentist, optometrist, specialist, or hospital. ferred. All of these services are essential for the health service costs through collective bar­ The Saudis also claim that they will health of the public, and of society. And all gaining between providers and the govern­ not train pilots of other Arab nations to are expensive. Currently, 133 billion dollars ment. Hospitals and Health Maintenance fty the F-15. In light of recent history, are spent each year for health care in the Organizations would be allocated funds by this is also hard to believe. In 1975. the U.S. By 1980, this figure will be 223 billion. the regional boards at the beginning of the Saudis ignored American law and trained The expense of health care has driven fiscal year, and like the region, would operate most Americans to purchase health insur­ within that allocation. Private practitioners Egyptians to fty and maintain American ance to protect themselves from the financial would be paid by salary, capitation (agreeing F-5 fighters. Since the Saudis are buy­ ruin that can accompany major medical ex­ to treat a certain number of people at a set ing F-15 ftight simulators there is penses. Most, but not all. Any health insur­ rate per person) , or fee-for-service. legitimate cause for concern that Israel's ance policy costs money; good health insur­ Support of the Kennedy-Corman bill has security is dangerously being risked by ance costs more than many can pay. Some been loud and long, and has been limited this proposed sale. who cannot purchase quality health insur­ of late to labor unions and consumer ac­ Turning to a different aspect of this ance buy instead limited or low quality in­ tivists. These people could potentially receive surance; others rely on Medicare or Medicaid; unlimited health care for less than they sale, the administration's fear that many do without altogether. pay now. Opposition to the bill comes from America has neglected Saudi Arabia's These people represent an alarming per­ health providers and big business (who wm military needs is difficult to understand centage of America's population. Of Amer­ gain little or nothing and wm pay for the in light of the more than $15 billion in ica's 215 million citizens, 50 million have privilege). They point to a number of seri­ total arms sales we have provided them limited insurance, 26 million depend solely ous difficulties in establishing such a system. since 1973. on Medicare, 18 million have no health pro­ HIGH COST One must also contemplate the wisdom tection of any form. Ninety-four million peo­ ple, almost half of America, daily face eco­ The projected cost to the Federal Govern­ of providing America's best fighter to a nomic disaster from medical expenses. These ment of the Kennedy-Corman bill would be country where Soviet access cannot be people clearly require some form of a£sist­ 248 billion dollars annually, five times the ruled out. The F-15's radar is said to be ance. And in recent years, the form most amount it now spends. Studies by the De­ "a decade ahead of anything else," ac­ often proposed is national health insurance. partment of Health, Education, and Welfare cording to one Air Force general. It is indicate that the proposed system of financ­ EIGHTEEN PROPOSALS ing would not cover the costs of the bill. the fastest-2% times the speed of Most people have vague and confused ideas Money would then have to be appropriated sound-longest range--2,878 miles­ of what exactly is meant by the phrase "na­ by Congress. This would leave the medical fighter in the U.S. arsenal. tional health insurance." This is scarcely welfare of the Nation at ~he mercy of an May 17, 1978 EXTENSIONS OF REMARKS 14223 Appropriations Committee continually beset delivery of services * * * ." Although rule to H.R. 11315 was simply a vote with many urgent requests for money. In the title V became law in 1973, first-time against bad legislation. face of such competition for funding, there funding for the program did not take A clearer, fairer test of a Member's is no guarantee that health systems would attitude toward public financing of receive the necessary funding. This expense place until 1976 when $20 million was would also drive a government 700 billion appropriated as part of the fiscal year House races will come in the vote on the dollars in the red even further in debt. 1976 supplemental appropriations bill; previous question on the rule to the FEC On a regional level, once the yearly budget for fiscal year 1978, $40 million was authorization bill. has been allocated, no further money would appropriated. Through an amendment I Those who vote against the previous be available. If a region spends all of its offered in committee, which passed question will be friends of public financ­ money, it ceases to pay for health treatment, unanimously, the authorization provided ing. Those who vote for the question will and that region no longer receives health in fiscal 1979-$80 million, fiscal 1980- care. And even while the money lasts, the not be friends of public financing. bureaucracy required to pay each bill will $100 million, and in fiscal 1981-$120 Mr. Speaker, I have supported partial induce wastage, fraud, higher prices, and million for multipurpose senior centers. public financing of congressional cam­ more of doctors' time spent on paperwork Moreover, several other recommenda­ paigns for all the years I have served in rather than patients. tions have increased the effectiveness of the House. The establishment of such a system would these centers. The bill provides funds for I think public financing is in the public mean the end of organizations such as Blue new construction of senior centers in interest. I hope the House defeats the Cross and Blue Shield. And with the end of communities where there are no struc­ these businesses, and private health insur­ previous question on the rule to H.R. tures available. Multipurpose senior cen­ 11983 so we can take a record vote on ers, would come the unemployment of the ters may now also be acquired through several thousand employees of such orga­ public financing.• nizations. leasing; staffing and operation are also The greatest opposition to the Kennedy­ authorized. Carman bill, however, is emotional. Many These amendments will also make it Americans (48 percent by an NBC poll) are easier to acquire senior centers and will CONGRESSMAN ANNUNZIO COM­ opposed, on an almost instinctive level, to help to establish senior centers as real MENDED BY COLLEAGUES FOR the thought of government control of a pri­ focal points in the lives of older Ameri­ REPRESENTATION AT ALDO MORO vate industry. They are afraid of bureauc­ cans. MEMORIAL SERVICES racy, of socialism. While this opposition is Mr. Speaker, the Subcommittee on often irrational, it is still important, and should not be discounted. The American Human Services of the Select Committee Medical Association has made it clear that no on Aging, on which I am ranking minor­ HON. JAMES A. BURKE national health insurance act will succeed ity member, is very interested in the OF MASSACHUSETTS without their support, and that they do not future of aging. We have learned through IN THE ljOUSE OF REPRESENTATIVES support the Health Security Act. our foresight hearings that, as recently as 4 years ago, more than 7 million Wednesday, May 17, 1978 The expense of health care would continue Americans over 60 wanted to participate • Mr. BURKE of Massachusetts. Mr. to be paid by those receiving the services; in senior centers and could not. Today, Speaker, last Saturday, May 12, our good rather than by those who pay the highest 3,100 new centers are still needed. With friend and colleague, Congressman taxes, which is the result of the tax-based our Nation "greying" as fast as it is, this FRANK ANNUNZIO, represented the Presi­ Kennedy-Carman plan. Both health provi­ sion and health insurance would remain need will become even more acute. This dent of the United states at memorial free enterprise systems, allowing better and year's Older Americans Act Amend­ services for Aldo Moro in Rome at the more innovative services. And finally, most ments, especially those sections that Basilica of Saint John Latern. The Con­ Americans, who already own adequate in­ enhance the role of multipurpose senior gress had just passed, unanmiously, a surance, would be completely unaffected by centers, goes a long way today to meet resolution sponsored by Congressman this legislation, and those who need better the needs of tomorrow's elderly.e ANNUNZIO, myself, and many others, insurance would be able to purchase it at which said in part: an affordable cost. Aldo Moro will go down in the history of SUPPORT H.R. 1818 mankind's struggle against tyranny as a Therefore, we, the Marion-Union Counties A FAIRER TEST OF SUPPORT FOR noble and compassionate exponent of free­ Committee of Congressman Brown's Con­ PUBLIC FINANCING dom's ideals who died in the belief that the gressional Youth Advisory Council recom­ better instincts in human beings will tri­ mend the adoption of House of Representa­ umph in dignity and liberty. tives bill 1818.e HON. ROMANO L. MAZZOLI OF KENTUCKY The brutal assassination of Aldo Moro sent shock waves throughout the world IN THE HOUSE OF REPRESENTATIVES and was a bitter and sad event for Italy OLDER AMERICANS ACT AMEND­ Wednesday, May 17, 1978 itself. United States participation in MENTS OF 1978 • Mr. MAZZOLI. Mr. Speaker, when memorial services certainly signaled our H.R. 11983, the Federal Election Com­ deep and abiding concern for the Ital­ mission (FEC) annual authorization bill, ian people and their grief over this HON. RONALD A. SARASIN comes to the floor for a vote, a move will tragic event. I quote from the departure OF CONNECTICUT be made to defeat the previous question statement of the distinguished American IN THE HOUSE OF REPRESENTATIVES in order to amend the rule so that aver­ delegation: Wednesday, May 17, 1978 sion of the Foley-Conable public financ­ Aldo Moro died as a captive soldier in the ing amendment can be made in order. defense of Western democracy. Now all of us, e Mr. SARASIN. Mr. Speaker, on Mon­ I strongly support this effort and I his fellow believers in th3.t cause, must en­ day of this week the House passed the sure that his death was not in vain-by Comprehensive Older Americans Act urge the defeat of the previous question. working to strengthen the ties that bind Amendments of 1978 by a vote of 361 to 6. The House recently debated the rule the Western Alliance in which he believed. As a cosponsor of this legislation I am providing for the consideration of H.R. As we return home, we do so with a re­ delighted that the House gave its full 11315, the Federal Election Campaign newed determination to strengtheen those Act amendments of 1978. This bill was to ties; with a renewed sense of Italy's impor­ support to this reauthorization. As a have served as a vehicle for the adoption tance as a friend and ally; with admiration member of the Education and Labor of partial public financing of House cam­ for Prime Minister Andreotti and with deep­ Committee which has legislative juris­ ened feelings for the Italian people. diction over aging, and the Select Com­ paigns. mittee on Aging, I enthusiastically However, H.R. 11315 was a highly par­ Mr. Speaker, the House of Representa­ endorse the direction this legislation tisan and unfair measure which would tives was exceptionally well-repre­ gives for senior citizen programs. have had devastating effects on the two­ sented by the distinguished presence of In particular, I support the increased party system. A vote against considera­ our colleague, FRANK ANNUNZIO. I think emphasis that this bill places on senior tion of the bill most assuredly was not a it is a great testimonial to Congressman centers. Congress wanted multipurpose vote against public financing, though ANNUNZIO's statesmanship-his thorough senior centers "to provide a focal point some so characterize it. understanding of world events and their in communities for the development and In my judgment, a vote against the meaning-that he was chosen by the 14224 EXTENSIONS OF REMARKS May 17, 1978 President to represent him on this del­ oversight is very lax in some instances. There Act, the House voted on the amendment icate occasion filled with sadness for the is a severe shortage of manpower to prose­ offered by Mr. JoHNSON to exclude to­ Italian people. Congressman ANNUNZIO cute those who commit fraud, and the sheer bacco from the food-for-peace program. size and complexity of federal programs represented us with dignity, respect, and make the job even more difficult. Split juris­ At the time the vote came up, I was en­ as a true representative of the U.S. Gov­ diction is also a problem since the state and gaged in a meeting of the House-Senate ernment. For this we owe him a great local governments which run many federal conference committee on the first budget debt of gratitude. We are indeed fortu­ programs tend to have other law enforce­ resolution and it was necessary for me to nate to have a man of his caliber among ment priorities. There is no immediate vic­ rush to the floor in order not to miss the us. tim of federal fraud, no public outcry and vote. In my haste, I inadvertently re­ In addition to our esteemed colleague, very little chance of the offender's being ap­ corded my vote in favor of the Johnson the American delegation representing prehended. Bureaucrats are not as vigorous amendment, when in fact it was my in­ in rooting out fraud as they might be be­ the President included: Secretary of cause they may believe that the discovery of tent to vote in opposition. I am there­ Health, Education, and Welfare Joseph corruption will damage their careers and the fore taking this opportunity to make it Califano, Senator PETE V. DOMENICI of programs they administer. clear that I do not favor the exclusion of New Mexico, Ambassador to Italy Rich­ All this fraud is more than just a viola­ torbacco from the list of commodities ard Gardner, and Deputy Assistant Sec­ tion of the law. It indicates a feeling among available for purchase under the food­ retary of State for European Affairs people that the theft of public money really for-peace program.e Robert Barbour.• does not matter. The true impact of fraud is to subvert federal programs and to under­ mine the integrity of the democratic system and the people's confidence in it. Fraud en­ NEW AIRCRAFT LANDING SYSTEM courages people to think that their govern­ FRAUD AGAINST THE GOVERN­ ment is inept. It angers them because it rep­ WINS INTERNATIONAL APPROVAL MENT resents a complete waste of 1lheir hard­ earned tax dollars. It may cause them to withdraw their support of the worthy objec­ HON. WILLIAM J. HUGHES HON. LEE H. HAMILTON tives of federal programs. OF NEW JERSEY OF A series of dramatic congressional hearings IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES and critical audits by government account­ Wednesday, May 17, 1978 Wednesday, May 17, 1978 ing offices has brought about an increased awareness of the extent of fraud in federal e Mr. HUGHES. Mr. Speaker, on April e Mr. HAMILTON. Mr. Speaker, I would programs. The hearings and audits have also 19, one of the most significant decisions like to insert my Washington Report for shown that the government has not yet es­ in recent aviation history was made in May 17, 1978, into the CONGRESSIONAL tablished effective mechanisms to detect and Montreal, Canada. prevent fraud and abuse. In fact, the govern­ RECORD: ment's defenses are very thin. For example, On that day, the International Civil FRAUD AGAINST THE GOVERNMENT last year there were only four inspectors as­ Aviation Organization ICATED SERVICE TO THE strong commitment to Israel, and em­ corporations: CITY OF CHEVIOT phasizes the urgent need to lower our voices as we continue to seek effective [From the Washington Post, May 6, 1978] means for insuring Israel's security and TREASURY FINDS BIG FIRMS PAY HIGHER TAX HON. THOMAS A. LUKEN for securing a lasting Middle East peace. RATES OF OHIO For the benefit of my colleagues and the (By Art Pine) IN THE HOUSE OF REPRESENTATIVES RECORD's executive branch readership, I The Treasury Department released a study yesterday concluding that large corporations Wednesday, May 17, 1978 insert Rabbi Sky's open letter at this pay much higher tax rates than is gener­ point: ally believed. • Mr. LUKEN. Mr. Speaker, on Sunday, AN OPEN LETTER TO PRESIDENT CARTER The study said that corporations with as­ May 21, the city of Cheviot and many DEAR MR. PRESIDENT: I thank you for in­ sets over $1 million paid between 39 percent residents of Hamilton County will join viting me to the reception at the White and 46 percent of their income in taxes on together to celebrate the 50th anniver­ House on May 1. I appreciated the oppor­ the average in 1972, the year examined. sary of the founding of Cheviot Elemen­ tunity of sharing the 13-fternoon with you Large manufacturing concerns such as tary School. and Mrs. Carter and Prime Minister and auto companies paid slightly less than 42 Cheviot was founded in 1926 and its Mrs. Begin. It was an interesting afternoon percent in taxes. Banks were the lowest of first principal was Mr. L. P. Stewart. In in the company of many of my colleagues the groups surveyed, at slightly more than and illustrious lay leaders of the American 19 percent. Treasury said the reason bank 1944 a committee was organized to im­ Jewish community. taxes were low is because banks have tax prove the building. In 1952, when a fire We were very moved by your words of exempt income, such as bonds, and receive destroyed the cafeteria, the committee's support for the State of Israel. We were large tax breaks in the form of artificial bad work was thrust to the front as new grateful that you recognized the sense of debt reductions. additions became imperative. A total of hurt we Jews have felt throughout our The report, which Treasury described as $363,879 was spent to build a new cafe­ history. Your offer to establish a commis­ "the most comprehensive set of such com­ teria, a gymnasium, severe! classrooms, sion for the erection of a memorial to the putations" it has prepared, appears to con­ and a science wing. In 1964, new colony Holocaust victims is of great significance to tradict the conclusions of several recent buildings were installed to meet the ris­ us. congressional studies. ing enrollment. But, Mr. President, there is a dimension Sen. Gaylord Nelson (D-Wis.) , chairman to Jewish existence that sometimes is over­ of the Senate Small Business Committee, Today, Cheviot school can boast of looked by well-meaning non-Jews. Above all has published studies by his staff that con­ many accomplishments and an enroll­ else we consider ourselves to be a people. A tend that many small and medium size busi­ ment of 501 students. Much of the people, in our eyes, is a family; therefore, a nesses pay a higher tax rate than larger school's success can be attributed to the Jew-wherever he or she may be-is our ones. dedicated service of Miss Callie Trinkle, brother and sister. Central to our existence And Rep. Charles A. Vanik (D-Ohio) • a principal of Cheviot elementary from as a people is the state of Israel, for it sym­ member of the House Ways and Means Com­ 1943-69. bolizes the home away from home. Our roots mittee, annually issues a report claiming that are there, our history began there, and dur­ dozens of big corporations pay extremely Recently, history was made at Cheviot ing the tragic twentieth century it was the school when one of their students, Peter low effective tax rates-often less than 1 only country where our troubled and percent. Lusenhop, a sixth-grader, won the local, anguished souls could find peace. While not specifically citing the Vanik regional and State oratorical award from We do not treat Israel's existence lightly. and Nelson studies, the Treasury report cau­ the Fraternal Order of Eagles

As a result of the widespread dissatisfac­ Under the latest Supreme Court guidelines, (In percent) tion, School Superintendent Robert Alioto is racially imbalanced neighborhood schools are pushing a new plan for redesigning school not necessarily unconstitutional unless they attendance, which he hopes the court will are the result of discrimination. And, on a 1968 1976 permit to begin next autumn. review of the evidence ordered by the Su­ One proposed change is to raise the per­ preme Court, the district judge found no St. Louis ------63.5 71.5 mitted ratio of any racial or ethnic group proof of deliberate segregation by school au­ San Antonio ______73.1 84.9 to 45 percent of a school's enrollment. Alioto thorities in Dayton. San Diego ______23.9 34.0 tastimates that his proposal would save tax­ Pending an appeal of the new ruling, the San Francisco ______58.8 77.1 payers 1.6 million dollars a year in reduced buses in Dayton are still roll1ng. If the ap­ Seattle ------17.8 32.7 busing costs. peal fails, however, Dayton plans to go back Washington, D.c. ______94.4 96.5 BOSTON; SOCIAL ISOLATION, TOO to a "freedom of choice" approach that will permit students to attend schools that are In Boston, three years of court-ordered located in their own neighborhoods. Thus, in all these 29 major school systems, busing and racial clashes have helped make The integration program cost Dayton 2.8 the whites make up a smaller share of enroll­ city schools predominantly black in enroll­ million dollars last year. And about 13,000 ment than they did 10 years ago. ment and have left parents and officials ques­ whites left the public schools after the bus­ (NoTE: Minorities include blacks, Hispan­ tioning the quality of education the schools ing began. provide. ics, Asians and American Indians.) Thousands of parents, mostly white, have CHARLOTTE: THE MOST THOROUGHLY MIXED SoURcE: Study by Diane Ravitch, Colum­ shifted their youngsters from public schools Probably the most thoroughly integrated bia University.o to parochial and suburban institutions. The school system in the entire United States is outflow is leading slowly to not only racial that which includes the city of Charlotte, but also social isolation inside the city N.C., and surrounding Mecklenburg County. schools. The problem is keeping it that way. In a city whose population is mostly white, In 1971, a federal judge ordered a compli­ THE MARXIST ALLIANCE AGAINST only 41 percent of the public-school pupils cated pattern of busing children between SOUTH AFRICA this year are white. Before busing began in city and county schools to produce a ratio 1974, whites made up more than 60 percent of approximately 70 whites to 30 blacks in of the school enrollment. each school. HON. LARRY McDONALD In addition to the racial shift, there has But almost every year, students have had OF GEORGIA been a sharp drop of 21 ,000 in total public­ to be shifted to different schools to maintain school enrollment. Most of the pupils lost that ratio. Next fall, another big shift would IN THE HOUSE OF REPRESENTATIVES were children of middle-class parents. The move 4,825 children to new schools is Wednesday, May 17, 1978 result, according to School Committee mem­ scheduled. ber Kathleen Sull1van, is that: "Some 62 Because so many white students have left • Mr. McDONALD. Mr. Speaker, the percent of the students now in city schools the public schools, the 70-30 ratio has had British journalist, Robert Moss, an in­ are members of fam1lies eligible for medi­ to be abandoned, and the new goal is to keep ternational authority on Marxist ter­ caid. This means that we're facing a social any school enrollment from being more than rorism and subversion has recently vis­ isolation, where we're dealing with econom­ half black. ited South West Africa and in the Daily ically poor students.'' The cost of busing 47,000 of the county­ Under federal-court orders, Boston is bus­ wide school system's 79,465 pupils is high: Telegraph of May 8, 1978, reports on the ing about 22,000 pupils to schools outside more than 3 million dollars this year. activities of the South west Africa Peo­ their neighborhoods. The costs of the de­ In addition, busing is time consuming for ple's Organization

LAND ACREAGES PER RESIDENT BY STATE Franklin Roosevelt to Jimmy Carter-as a a Cliff Hanger and human justice should not journalist and later in the Johnson Adminis­ be a Cllff Hanger. Popu­ tration where I have seen poUtics from both Opponents are telling legislators, "hold the lation inside and outside the process. line just ten more months and ERA will go (thou- Acres Ac res/ Two years ago, I won a bout with Potomac away." Some legislators are blind enough to sands) 1 (millions) 2 resident Fever and surfaced as a born again Texan. believe it. I went home to Texas to spend the rest of But what is at stake here in this Commit­ Alaska. ______407 149 366, 093 my life writing and living a leisurely life­ tee today are I believe three questions, Cri­ Alabama ______3, 690 33 8, 943 ! thought. I can't retire-none of us who teria suggested by Justice Hughes in Coleman Arizona ______2, 296 73 31, 794 believe in the extension of full civil rights v. Miller. And I hope that you will ask your­ Arkansas. ______2, 144 33 15, 392 Cal iforn ia. ______21 , 896 100 4, 567 to au persons in this country can slow selves these questions: Colorado ______2, 619 66 25, 200 down-until the is Have conditions changed to make the 27th Connecticut. ______3,108 3 965 ratified. Amendment no longer necessary since it Delaware . __ ------__ _ 582 1 1, 718 District of Columbia ______The demands for us to speak, to rally, to passed Congress in March, 1972? The answer 690 .039 56 is clearly no. Florida_------8, 452 35 4, 141 testify have convinced me that ERA is more 5, 048 37 7, 329 alive today than when it was overwhelmingly Is there still an intensity of public feeling 895 4 4, 469 passed by the Congress in 1972. and debate? The answer is clearly yes. ~~~:iIdaho i_i~_~~===___ _=_====____ ===___=====____ _ 857 53 61 , 843 Illinois______11,245 36 3, 201 I am here today as Co-Chair of ERAmerica, Is there still activity in legislative bodies Indiana ______5, 330 23 4, 315 the national alliance of over 200 organiza­ Iowa ______on ratification? The answer lies in the fifteen 2, 879 36 12, 504 tions of men and women-from the American states which have given ERA short shrift. Kansas. ______- - •.. -.--- 2, 32b 52 22, 355 Bar Association to the Girl Scouts to the Kentucky ______3, 4!>8 25 7, 229 A handful of willful and mischievous Louisiana. ______3, 921 29 7, 396 National Council of Senior Citizens-who men-two in Florida, two in North Carolina, Maine ______1, 085 20 18,433 support ERA. I have attached a list of the Maryland . ______1, 449 5 in South Carolina seldom more than a 4, 139 6 groups supporting ERA to my testimony be­ dozen anywhere who are blocking passage of Massachusetts ... ______5, 782 5 864 cause I think you will recognize them. They Mich igan ______9, 129 36 3, 943 ERA-using fun and games to maneuver it, Minnesota. ______3, 975 51 12, 830 are all from the mainstream of American life deciding to stall justice toward women as 2, 389 30 12,557 and are the groups which have supported 44 9, 164 the expendable issue which can be used to ~ l ~~~s~;r_~i======4, 801 most of the progressive measures enacted in barter for political mischief. Montana. _____ . ___ . • ----- 761 93 122, 207 this country. And ERA has been a part of . ______1, 561 48 30, 749 The very fact that the going is so rough in Nevada ______633 70 110, 584 both the Republican and Democratic plat­ New Hampshire ______849 6 7, 067 forms since 1940 and 1944. these different states, many of which only New Jersey ______7, 329 5 682 I come here also as one who has covered ratified suffrage a few years ago, is evidence New Mexico ______1, 190 78 65,546 enough that ERA is very much alive. New York ______17,924 31 1, 729 this noble capitol for 16 years, one who North Carol ina ______5, 525 31 59, 047 watched the march for human rights across So here we are with this overwhelming Nortol Dakota ______653 44 67, 381 your stage and saw Congress fill in the gaps momentum. ERA merits major national news Oh io______10,701 26 2, 429 for civil rights legislation in the 60s. I do coverage. It is a priority for hundreds of Oklahoma ______2, 811 44 15, 652 organizations and thousands of individuals Oregon . __------____ _ 2, 376 62 26, 904 not believe this Congress will now, or ever, Pennsylvania . ______11,785 29 2, 460 let time run out on Human Rights. There who are active in the fight. ERAmerica re­ Rhode Island ______935 . 67 716 must be no arbitrary barrier to ultimate ceives over 500 pieces of mail each week ask­ South Carol ina------2, 876 19 6, 606 justice in America. And the clock on Equal ing for information or volunteering service South Dakota ______689 49 71 , 117 for the campaign. Tennessee. ______4, 299 26 6, 047 Rights for women or for any eitzen in this Texas . ____------12, 830 168 13, 094 country poses an arbitrary barrier which We seek every alternative possible to con­ Utah ______l, 268 53 41,798 must not end when the issue is very much clude this debate. we speak for a diversity of 483 6 12,422 organizations, each with its own strategy for 5, 135 25 4, 868 alive. ~~~~n~~~Wash ington= ==.= __== __ ===__ =_=_ =___ = = ==_ _ =_ 3, 658 43 1, 755 The opponents argue: "Don't change the the prompt ratification of ERA, and count­ West Virginia ______1, 859 l!l 18, 068 rules in the middle of the game." Equally less individuals and the positions they rep­ Wisconsin______4, 651 35 7, 525 Wyom ing ______under the law for all Americans is not a resent. In fairness to these differing strat­ 406 62 152, 709 egies, the Members of the Board of ERAmer­ United States (not Alaska) _ 215,925 1, 901 8, 804 game. It is a serious issue and deserves the most serious attention of the people of this ica have not taken a position on the exten­ nation. We have been subjected to too many sion. The extension of the deadline for 1 Bureau of Census, provisional data, July 1, 1977. games in the legislatures where grown men seven more years is one measure for taking 2 For Alaska, State and Native land selections only. For other out an added insurance policy. Other meth­ States, total land area. e often seem too embarrassed, too inhibited, too impatient to discuss the matter of simple ods might place no deadline, as with the first justice for the women of this country. 17 Amendments to tr.e Constitution. You can be sure that if the March 22, 1979 dead­ But the people in this country are just line is not met, hundreds of bills will be LIZ CARPENTER SPEAKS OUT now beginning to inquire and ask for more dropped into your hopper on March 23rd to information, they have been dismayed by start the process again. There are other pro­ the noisy lies about ERA. That is why ponents who would go back to the 14th HON. J. J. PICKLE ERAmerica wa'S created 2 years ago, and we Amendment to spell out unmistakably that have been racing ever since to catch up for OF TEXAS discrimination on the basis of sex is the demand for speakers, meetings, debate. included. IN THE HOUSE OF REPRESENTATIVES The momentum is at its highest crest now, Until the Equal Rights Amendment is part Wednesday, May 17, 1978 and there is a high desperation level because Americans realize this is not a women's issue, of the Constitution of the United States, the • Mr. PICKLE. Mr. Speaker, I am not a feminist issue, but a simple extension battle will go on. Every major poll taken in of civil rights to the largest group left out this country has shown a solid majority of pleased to present to my colleagues the the people support ERA. Over two-thirds of testimony Mrs. Liz Carpenter delivered in 1787. the states have ratified it, 16 states have this morning before the House Judiciary I alone get ten or twelve speaking requests enacted state Equal Rights Amendments, Subcommittee on Civil and Constitu­ each week for the major groups in the un­ that kind of mandate cannot and will not go tional Rights. ratified states. away. Such groups in the last six weeks as the Liz Carpenter is well known to many Across the nation, over 100 organizations Alabama Education Association, National are showing their commitment to equal Washingtonians for her keen perceptions Legislative Conference of the Communica­ rights for all citizens by refusing to hold and her ready wit. She has been ''back tions Workers of America, the National As­ their conventions in states which have not home" in Texas for 2 years but has come sociation of Women Deans, Administrators ratified the Amendment. These conventions before us today to present her views on and Counselors, Junior Leagues throughout bring over 100 million dollars annually to the proposed extension of time for ratifi­ the South and rallles in Chicago, Little Rock the cities in which they are held. The people cation of the Equal Rights Amendment. and Birmingham by our own coalitions. making this commitment are scientists-like Multiply my itinerary with that of Judy the American Association for the Advanc-e­ She is a strong advocate and a dy­ Carter, Erma Bombeck, and my Republican ment of Science-church men and women­ namic spokesperson. Her testimony fol­ colleagues Elly Peterson and Jlll Ruckel­ like the United Methodist-educators-like lows: shaus and Maureen Reagan. Add in the the National Education Association-trade TESTIMONY BEFORE HOUSE SUBCOMMITTEE ON itinerary of Phyllis Schlafiy and you know unionists like the United Auto Workers. Cxvn. AND CONSTITUTIONAL RIGHTS the debate is raging. This is not a dormant And the Democratic National Committee. As I am Liz Carpenter of Austin, Texas. I have issue. much as they would Uke to sample the de­ been a wife and mother and I have known I believe we will have three more states by light of the Windy City, stroll along the the pain of widowhood. I spent over 34 years March 22, 1979, and that is where my priori­ French Quarter of New Orleans or sit on of my career life in Washington-from ties are-to get them. But it is going to be the sands of Miami Beach, they're com- 14242 EXTENSIONS OF REMARKS May 17, 1978 mitted to Equal Rights for all citizens as allowed to make a political joke out of leadership. Lt. Governor Jimmy Green who their first priority. equality for women. wanted to show his political muscle against I believe, for instance, Atlanta would like This fall, we will "hang some scalps" to Governor Hunt who was pro-ERA, held up to host the Democratic Convention. And I show legislators that they cannot betray the vote until two men, including James suspect that Jimmy Carter would like to have our trust. McDuffie, men who had signed pledges of it there, and I know that the Democratic I have travelled the 15 states which are support for ERA during their campaigns, Party would enjoy the Southern hospitality blocking ERA and have met with many of could be persuaded to switch their votes. of Atlanta, truly a city of the New South. But the "no" voters who are playing games with Shortly thereafter, in the Spring of 1977, it won't happen unless Georgia ratifies the ERA. Many of you have seen this type in ERA. A recent article in the Washington when ERA came up for a vote in Florida the your political life and must agree such last things on the minds of the state legisla­ Star estimates that Atlanta alone could lose mediocrity should not cost women equality. 168 million dollars because of this tors was equal rights for women. Senator They are: Dempsey Barron, Dean of the Senate, wanted commitment. First. State Representative Postoffice. This I want to applaud these organizations who to show his political power. ERA was the is a member who doesn't lead, but is led, highly visible vehicle he chose to do it with. are the backbone of American life for putting who takes the mail and weighs or counts the Equal Rights Amendment where it be­ At the start of the session, there were 21 which side can get the most letters in. He announced votes, the number needed for longs. It is a matter of simple economic doesn't look at the quality of the argument justice. And let me point out that the de­ passage of ERA. Their maneuverings or who generatert the letter. And so he switched votes-among them Senator Ralph cisions were made as a solid commitment doesn't know that many of these letters to ERA. The boycott will go on until the Poston who had run for the Senate on a come from the same people who got writer's Equal Rights Amendment is ratified. It will pro-ERA platform. Senator Poston was hur­ not go away on March 22, 1979. cramp trying to impeach Earl Warren. riedly cleared of a conflict of interest charge You see, ERA is the last measure needed Second. State Representative Apron two days before voting no on ERA. Now, that to fill in the gap of the Constitution, which Strings. He tells you, "Oh, I voted against it is an interesting conflict. left discrimination on the basis of sex a very because my wife is against it." Now there Senator Poston should take note of James "iffy" catch as catch can issue. Your own isn't one other issue where he would use this McDuffie's defeat. It augers ill for him too. Congresswoman Barbara Jordan, speaking to justify a position on a vote. And often, The voters of Florida-who favored ERA by of ERA said, "We have a commitment which he hasn't even asked her. 62 % with only 19 % opposed in a poll taken is not going to be shattered by inanity, Third. State Representative Consensus. just before the vote-put him in office to ignorance and idiots who would vi-ew our He doesn't want to take a stand until "You vote yes on ERA and they will defeat him cause as one which somehow is violative of girls get together." We aren't going to get because he voted no. the American Dream of Equal Rights for together anymore than women were tx>gether on other issues--including the right to vote. We understand so much more clearly now everybody. All we're trying to do is make what we are up against, and this new politi­ this government of the United States Many who opposed the right to vote for women are using the same trite arguments. cal awareness will be used in the battle for honest. We only ask that when we stand up ERA. You all know that ERA will not cause and talk about one nation, under God, Why do we need it? Doesn't it open up un­ known dangers? Doesn't it take away our the break-up of the family. As if a law can with liberty and justice for all, we want to regulate a man's love for his wife and family be able to look at the flag, put our right hand femininity to go into a polling place? Fourth. State Representative States or a wife's loyalty to her husband and chil­ over our hearts, repeat those words and dren. ERA has nothing to do with co-ed know that they are true." Rights. This is a man who suffers apoplexy every time the word "Federal or Congress" bathrooms and homosexual marriage, yet the Using English Common law, the founding opposition continues to spread these lies and fathers, writing the Constitution in 1787 did is mentioned. He looks at the second sec­ tion of the Amendment, exactly like the sec­ appeal to the fears of decent Americans. not recognize women as citizens but as prop­ And it's so easy to be negative, to be against erty and chattel. The power of the ballot ond section of the 13th, 14th, 15th, 19th, 23rd, and 24th amendments and thinks there something. rather than to support positive was denied to women; it was also denied to change. Indians, Slaves, the mentally unfit and should be something different a;bout the criminals. In the wake of the civil war, the Equal Rights Amendment. Who needs the Equal Rights Amendment? 13th. 14th and 15th amendments brought Fifth. State Representative Macho. Here's The United States of America needs it. minorities into the Constitution. But it one fur you. He is a dirty old man who grew How long must women stand outside the took another fifty years for women, black and up as a dirty little boy. He enjoys sensa­ door of the Constitution begging to be let white, to even get the vote. But that was tional gossip fed to him by the fear and in? It took 72 years for suffrage to make its all that we got. smear artists; that the ERA will lead to co-ed way into law. I am 57 years old and I was What ts happening in the unratified states? bathrooms, trench warfare, homosexual only three years old when the ERA was first In one state-MississipPi-ERA has never marriages: "Play me that old pornograph introduced in Congress. There were 49 years come to the floor in either House. In one again," he says as he rails against it. None of foot-dragging and an arbitrary time limit state-Alabama-ERA has never had a House of these phases exist except in the Represent­ of 7 years was set for the most difficult part floor vote. In one state-Utah-ERA has ative's mind. of the Amendment's realization, its pathway never been voted on in the Senate. The last Governors of five states, where ERA has through the 50 state legislatures. House vote in Arizona was in 1975, and in not only been ratified but put into the state I want the assurance that your daughters Arkansas the last time the Senate considered constitution, have stated that not one of and mine will not have to fight this whole ERA was in 1973. Georgia, Louisiana, Okla­ these allegations has come true. battle from beginping to end again. I pray homa and Virginia have held ERA in com­ Sixth. State Representative Master of the they will not be forced to travel this long mittee. South Carolina has tabled ERA in Castle. This is the man who never associates circuit, this weary, road, because time ran both houses, only voting on the merits of with women except in bed or the kitchen a.nd out on them in 1979.e the issue once, in the House, when it passed he wants to keep them there because of his 85--0. Illinois adopted a 3/5s majority rule own insecurity. He doesn't think marriage is for constitutional amendments, which dealt a partnership. What he earns is HIS money. a blow to ERA, since ERA has passed both What property he buys is HIS property. UNITED STEELWORKERS SUES houses wi:th a simple majority. Knowing that this is the kind of man FOUNDATIONS FOR INTERFERING In answer to the question Chairman we're up against, we're still committed to WITH UNION INTERNAL ELECTION Edwards asked me to address with my testi­ continuing debate for however long it takes mony, I do NOT believe ERA has been fully to ratify the Equal Rights Amendment. and fairly aired in these states. You should understand that since ERA HON. LARRY MrDONALD Women who have been left out of the was ratified in Indiana in January, 1977, political process for so long have only re­ what we have been up against is that ERA OF GEORGIA cently become aware of what is happening has been traded, bruised and misunderstood. IN THE HOUSE OF REPRESENTATIVES to them. We cannot be expected to learn in a My friend, Erma Bt>mbeck, says that ERA Wednesday, May 17, 1978 crash course what men in the political proc­ is the most misunderstood few little words ess have learned to understand and often since "one size fits all." e Mr. McDONALD. Mr. Speaker, the master in 200 years. For instance, in North In the early days of the campaign, when United Steelworkers of America has filed carolina in the May 2 Democratic primary, ERA passed 30 legislatures in the first two a lawsuit against eight tax-exempt ERA supporters ousted Senator James Mc­ years, we were debating ERA on its merits. foundations charging them with having Duffie, who has had a hard time deciding But since then, it has become a political funneled money through "laundry" op­ whose side he is on. TWo years ago, when he football, used by a handful of legislators to erations to the Steelworkers fight-back campaigned for office with the support and flex their political muscle against each other. machine of Edward Sadlowski, who was money of ERA proponents, he led the ticket. For example, in North Carolina in 1977, He even signed a campaign pledge to vote polls showed that 60% of the people sup­ defeated in his campaign for president for ERA. But he switched to vote "no" when ported ERA while only 19 opposed it. The of the USW A last year. he thought he was safely inside the halls General Assembly passed it and sent it to The foundations included the Rocke­ of the North Carolina Senate. There are the Senate, where it clashed head on with feller Family Fund, the Samuel J. Rubin other James McDumes who wm not be an tnter-party powerplay by the Senate Foundation, Field Foundation, New May 17, 1978 EXTENSIONS OF REMARKS 14243 World Foundation, J. M. Kaplan Fund, ganization, for using "employer monies .. . The complaint noted that all of these are the Youth Project, the New York Com­ on behalf of candidates for USWA offices in "routine campaign expenses incurred. by all munity Trust, and the Ottinger Founda­ blatant violation of . .. the Labor-Manage­ candidates for union office," but that in ·this ment Reporting and Disclosure Act of 1959," instance the slate of candidates who received tion. An organization called the Associ­ and asserted that the rights of USWA mem­ the benefit of the foundation's contributions ation for Union Democracy is also a de­ bers to freedom of choice without employer "obtained an unlawful advantage . . . for it fendant. interference was being tampered with. did not have to spend lawfully obtained con­ It is interesting that the Samuel J. The complaint filed in New York by at­ tributions for these purposes and they had Rubin Foundation, Field Foundation, torneys for the union on behalf of its Inter­ more funds available for other campaign and Youth Project have been particu­ national officers and five rank and file mem­ purposes." larly active in the last several years in bers charged that, "these illegal expenditures The complaint also notes that "officers, providing massive funds to the projects by the defendant-employers"- The Rocke­ directors, and managing employees of these staffed by U.S. revolutionaries to destroy feller Family Fund, The Samuel J. Rubin defendants made substantial campaign con­ Foundation, Inc., The Field Foundation, The tributions directly to the Sadlowski slate America's foreign and domestic intelli­ campaign." gence agencies. The Youth Project pro­ New World Foundation, The J . M. Kaplan Fund, The Youth Project, The New York The complaint warned that outside inter­ vides money to the Mobilization for Sur­ Community Trust, The Ottinger Foundation vention by employer money in a union elec­ vival, a project set up by the Soviet and The Association for Union Democracy tion can result in court battles and other in­ World Peace Council to pressure the (AUD)-"pose a continuing threat to de­ stabilities that can undermine a union's American people and public officials for mocracy within the Steelworkers." ability to represent its members effectively dangerously lopsided disarmament Lloyd McBride, president of the USWA, and can place the union in "turmoil." agreements with the U.S.S.R., and to noted that "these named foundations, hold USWA President McBride said, "We have Morton Halperin's campaign to stop gov­ stocks and bonds worth well over $16 million good reason to believe from our research that ernment spying. Previously the Youth in companies, many of them major corpora­ these disclosures are only the tip of the ice­ tions, tha.t bargain with the Steelworkers and berg of foundation intervention in the Project did the same for Counter-Spy USWA election and into the affairs of other magazine's subsidiaries. Halperin's anti­ include some firms such as Tenneco that the NLRB has cited for failing to bargain in good unions, sometimes creating chaotic situa­ intelligence projects have received gen­ faith with Steelworkers. The USWA is now tions. I hope this court case reveals the full erous funding from the Field Founda­ in its 13th month of strike at Newport News truth." tion. And Sam Rubin uses large amounts Shipbuilding Company; a major subsidiary McBride concluded: "It's an outrageous of his tax-exempt fortune to pay the of Tenneco." violation of democratic principles when a salaries and transportation costs of ter­ McBride said tha.t he believed the USWA tiny group of non-union foundation execu­ rorist and revolutionary leaders from officers and rank and file members who tives, masquerading under the noble banner Latin America, Africa, Europe, and the joined in the suit "were speaking for most of of democracy, can try to use foundation Middle East. Rubin was instrumental in the union's members who, when the full grants to dictate to union workers who 1976 in tricking some American Jewish truth of these machinations comes out, will should represent them. In the past the old leaders into meeting secretly with rep­ be appalled by the fact that these tax-exempt robber barons tried to use the money they foundations which, in effect, are subsidized exploited from workers to break their unions resentatives of the terrorist Palestine by. taxes from the hard-earned wages of and today their heirs and beneficiaries, set Liberation Organization--meetings then Steelworkers and other working people, are up in plush foundations, are using their ill­ made public by the PLO's supporters to trying to manipulate their internal election gotten and tax-exempt gains to try to run bolster the terrorists' cause. process." McBride added: "During my cam­ the unions." The leaders of the groups which these paign I promised to stop the interference of The executive director of the AUD, Herman radical foundations have supported are these and other outsiders in our union and Benson, was reported in the Washington trying to manipulate legitimate union I intend to keep my promise." Post as declaring that the "services were issues of internal accountability of their The USWA's law suit charges a conspiracy provided to 'guarantee legal rights.' not to leadership in order to purge anti-Com­ by the eight named foundations and onere­ promote a political candidate, and denied cipient group, the AUD, "and other em­ that the foundation money amounted to munist labor leaders. It was no secret ployers unknown at present to plaintiffs," to employer contributions. 'These are founda­ that the Sadlowski campaign was a use the AUD and others "as conduits through tions that support liberal causes,' he said.'' major part of that anti-Communist ef­ which monies and other assets were laun­ An attorney-spokesperson for Edward Sad­ fort, and that the Communist Party, dered for use by or on behalf of the Sadlow­ lowski told the Wall Street Journal that the U.S.A., and other U.S. Marxist groups ski slate" the defeated candidates in the suit "was a transparent effort to intimidate were working for his election. February 1977 Steelworker referendum elec­ tion. public interest foundations from continuing Sadlowski never repudiated the revo­ to assist union-reform groups in seeking fair The suit noted that: "defendants . . . elections." e lutionaries in his fight-back organiza­ channeled monies and assets to the AUD, tion; and that he is still on the best of and to other conduits as yet unknown, in terms with them was evidenced during the guise of ostensibly non-partisan grants. April by his attendance at the Ninth In actuality, however, the monies and assets LOLA HENDRICKS, A NATIONAL World Congress in Prague of the Soviet were intended by all defendants to be used ROSE Union's international labor movement for blatantly partisan activties promoting front, the World Federation of Trade Un­ the Sadlowski slate, and they were so used by AUD and other conduits with the knowledge HON. ROBERT L. LEGGETT ions

set forth very clearly those Issues which had APRIL 7, 1978. ceived from the European side confirm that been agreed upon thus far, as well as those Han. LEo J. RYAN, your recent meeting in Sicily was an espe­ still unresolved. House of Representatives. cially useful and productive exchange of The details of the SALT briefing cannot, DEAR MR. RYAN: At the conclusion of our views on these important issues. of course, be covered in this unclassified com­ meeting on March 14, you asked for my views I know from conversations I have had munication. It is possible, however, to pre­ on the importan.:!e of the interchange be­ with members and officials of the European sent a few general observations and to com­ tween Members of Congress and the Euro­ Parliament how highly they value their re­ ment on the character of the briefing itself. pean Parliament. Since there was not time lationship with Congress. Their interest in Ambassador Earle opened his remarks by for me to respond orally, we agreed that I this periodic exchange over the past several giving a status report on the negotiations. would give you my views in writing. years extends to the organization and pro­ He indicated that although progress had As you know, the European Community cedural functioning of Congressional bodies­ been made, continuing differences exist be­ is the world's largest trading bloc and (after which they are currently studying in con­ tween the United States and the Soviet Canada) the most important trading part­ nection with restructuring their own ad­ Union, especially on the Backfire bomber ner of the United States. It is the embodi­ ministrative format-as well as to the sub­ and cruise missile questions. Earle said that ment of European integration within there­ stance of the discussions they have had with the unresolved issues, though few in num­ gion and, in recent years, has taken on an Members in Washington and Europe. ber, were proving to be quite difficult. While increasingly global outlook. As the geographic I believe that, in view of the increasing openly optimistic about the prospects of scope of its interests has widened, its activi­ importance of the Community and of the concluding an agreement with the Soviets, ties have also expanded into a wide variety of European Parliament within the EC, it is Earle stated categorically that he had never economic and political fields. Close relations vital to build upon current contacts between been given a deadline or even so much as a with the community are therefore central Congress and the Parliament, just as it is suggestion to hurry. to the successful implementation of U.S. in­ to build upon the close consultative rela­ On several substantive points, differences terna tiona! economic/poll tical policies. tionship between the U.S. Executive Branch of opinion were expressed by Ambassador The European Parliament is one of the and the non-legislative EC entitles. I hope Earle and General Rowny, which provided principal Community instruments for bring­ that you will agree, on the basis of your ex­ an interesting balance to the briefing. Gen­ ing about European unification and for fos­ perience with exchanges between Congress eral Rowny's objections on several occasions tering democratic ideals in Europe. The Par­ and the Parliament, and that you will con­ seemed to be prompted by the Ambassador's liament has already played a significant role tinue your active role in fostering it. failure to articulate the existing negotiating in Community affairs. That role will take I hope that this has been responsive to position, as opposed to presenting the rea­ on an added dimension, in my view and that sons why that position might not be tenable. your question, and that you will feel free to of most informed Europeans, when (almost ask any further questions you might have. Questions of verification and possible vi­ certainly in 1979) the European Parliament olation were specifically reviewed. Ambassa­ I enjoyed our discussion on March 14, and will be directly elected for the first time look forward to continuing it. dor Earle stated that he did not believe the by universal suffrage rather than appointed Soviets would sign an agreement only to Best regards, as at present from member state legislatures. DEANE R. HINTON, turn around and violate it. Also discussed I believe that this development will fun­ was the matter of cost savings as a result Ambassador, U.S. Mission to the Euro­ damentally enhance its role and infiuence pean Communities.e of SALT. Here, after some initial divergence within the Community, and that direct elec­ of opinion, it was concluded that SALT II, tions will call for an even closer relation­ like SALT I, would be unlikely to produce ship between the Parliament and Congress. any significant savings. One Member of our The U.S. commitment to working closely delegation noted in this connection that with the Community, both bilaterally and DR. NORMAN FOX such savings as occurred would likely be in multilateral fora, has been given new em­ channeled into European conventional arms phasis by the visits of President Carter to or into other areas of ongoing competition. the EC Commission in January 1978 (the HON. LEO J. RYAN In conclusion, Mr. Chairman, I would like first ever call by a U.S. President on the full OF CALIFORNIA to make a few summary observations, which Commission); Vice President Mondale to I hope this report has made obvious, perhaps the Commission a year earlier; Commission IN THE HOUSE OF REPRESENTATIVES even redundant : This study mission was in­ President Roy Jenkins to Washington; Prime Wednesday, May 17, 1978 volved-from beginning to end-in serious Ministers Callaghan, Tindemans, and Jor­ business-business which, I might add, has gensen to Washington in their EC Presi­ • Mr. RYAN. Mr. Speaker, it is with immensely significant implications for U.S. dency capacity, and by many other meetings great sadness that I rise on this occa­ foreign and domestic policies. between high-level Administration and EC sion to apprise by colleagues of the un­ All of our delegates were well prepared for officials. The level and increasing intensity of timely and unfortunate death of my close their respective assignments and participated these exchanges, which since last May also friend and associate, Dr. Norman Fox. fully in the discussions which took place in include the presence of the Commission Presi­ Taormina. l"t was a group with which I dent at Economic Summits, underscore the Dr. Fox, who died suddently this past am exceedingly proud to have been asso­ importance we attach to close consultation Monday night at the age of 66, was both ciated. with the Community on such issues as trade a leader in medicine and an outstand­ Let me also say that each of us profited and protectionism, the Multilateral Trade ing conservationist. A man dedicated to greatly from the briefings and background Negotations, North/ South relations, agri­ the preservation and enhancement of analyses we received from U.S. diplomatic culture, macroeconomic policy and energy. San Francisco Bay and its ecologically and military personnel at all stops on our I believe that maintaining and even up­ itinerary-both en route to and from the grading the present interchange between rich habitat, Norm was a devoted nat­ conference site. We are grateful to those Congress and the Parliament is equally as uralist and bird watcher, and spent much individuals for giving us so much of their important as the foregoing Executive Branch of his career traveling extensively time and expertise. efforts. The Parliament includes a cross-sec­ throughout the United States, China, With respect to the overall usefulness of tion of informed Western European opinion, Australia, New Zealand, the Galapagos the parliamentary exchange with our Euro­ both geographically and politically. Discus­ Islands, and Costa Rica in support of pean colleagues, I believe the letter which sions of current topics with this group conservation and ecological awareness. I enclose from Ambassador Hinton makes should provide a useful barometer of Euro­ clear the importance attached to it on the pean thinking and, equally importantly, give A graduate of Stanford Medical European side. To his comments I would members of the European Parliament the School, Dr. Fox was a past president of merely add that this exchange is of equal benefit of a range of U.S. views. the San Mateo Medical Society, a mem­ value to our Membe.11s-both in terms of Interchanges between the narliament and ber of the Peninsula Memorial Blood what they learn in the process and in what the Congress not only refiect the current con­ Bank, an adviser to the Peninsula Hos­ they are able to contribute. Those adamant cerns and sensitivities among political fig­ pital Explorer Scout Troop · 806, and a and persistent critics of Congressional travel ures on both sides of the Atlantic, but can who profess to believe that all such meetings give rise to practical understanding of the director of the Sequoia Audubon Society. are basically exercises in ceremony and fri­ implications for the two regions of policy in I first met Norm through his two volity have obviously never attended a work­ specific areas. While Members of Congress children, Jim and Norma, both of whom ing session of this group. who have participated in these exchanges I taught in high school. That was the be­ Finally, without attempting to exaggerate are better able than I to judge their effec­ ginning of a life-long association: It the role or significance of our biannual de­ tiveness, reports I have received from both started on a personal level and grew into liberations, I would merely point out that sides suggest that such understanding has a far broader association as we became they deal with issues which impact directly been improved in areas of mutual concern on the lives and fortunes of all Americans. like trade policy, protectionist pressures, de­ aware of the interests that we had in With personal best wishes, I remain, velopment aid, human rights, and nuclear common. When I was a member of the Sincerely, energy, as well as policies regarding the California State Legislature, I conferred LEO J. RYAN, Eastern Mediterranean, Southern Africa, and with Dr. Fox regularly regarding medi­ Member of Congress. East-West rela.tlons. Reports that I have re- cal issues of significance in California. 14252 EXTENSIONS OF REMARKS May 17, 1978 Later, his advice on conservation and en­ ernment power to such an extent that pri­ since competitors in the industry or profes­ vironmental protection issues was in­ vate businesses can gain short-term profits sional association will take the favor. The through the intervention into the competi­ general attitudes is this one: "If I don't take valuable to me in connection with both tive market by state officials. Offer the typical it, somebody else will." As a statement of State and Federal legislation. businessman the opportunity to escape the fact, rather than principle, it is absolutely I will miss Norm as a friend and as a constant pressures of market competition, correct. Somebody else will. person whom I depended upon for advice and few of them are able to withstand the There are several possible forxns in which on medical issues and, most important to temptation. In fact, they are rewarded for the aid may come. Industrial groups may us all, issues relevant to the preservation taking the step of calling in the civil receive tariff protection, which is a tax levied government. on consumers on both· sides of a border over and enhancement of our environment. The government's officials approve, but which trade had been carried on or over Speaking on behalf of my constituents in more to the point, from the point of view of which it might be carried on in the future. San Mateo County, I wish to extend our the businessman's understanding of his role, Consumers pay higher prices on both sides sincerest sympathy to Dr. Fox's wife, shareholders and new investors also approve, of the border. There can be no grants of Eila; his son, Jim; his daughter, Norma; since the favored enterprise is initially government economic benefits without some­ and his three grandchildren. Dr. Fox will blessed with increased earnings per share. one or some group bearing the costs. A tariff indeed be missed by the people of the The business leader has his decision con­ is a tax. firmed by the crucial standards of reference For professional groups, another approach San Francisco Bay area.• in the market, namely, rising profits and ris­ is offered. It is usually in the form of licens­ ing share prices on the stock market. No one ing, which is a grant of monopoly rents to pays the entrepreneur to be ideologically those inside the protected profession. The pure. Almost everyone pays him to turn a profession elects representatives who sit on WALKING INTO A TRAP profit. government boards, or who actually make up This being the case, those within the gov­ the whole board. They can police entry into ernment possess an extremely potent device the profession's ranks by unqualified com­ HON. LARRY McDONALD for expanding political power. By a compre­ petitors, meaning those who have not passed OF GEORGIA hensive program of direct political interven­ certain educational and/or sk111 requirements IN THE HOUSE OF REPRESENTATIVES tion into the market, government officials can established by the board. Most professionals steadily reduce the opposition of business­ believe that such restrictions on entry are Wednesday, May 17, 1978 men to the transformation of the market entirely natural for the sake of preserving • Mr. McDONALD. Mr. Speaker, there into a bureaucratic regulated, and even cen­ the present-day standards of practice that has always been the myth circulated that trally-directed organization. Bureaucracy re­ the majority of the profession accepts. Like places entrepreneurship as the principal the businessmen, they see these benefits as businessmen are the staunchest de­ form of economic planning. Bureaucrats can normal, natural, and altogether beneficial to fenders of private enterprise. This, sadly, use the time-honored pair of motivational the public. Result: highP.r fees and fewer is not always the case, and this is partic­ approaches: the carrot and the stick. The choices. ularly true in the case of some of the carrot is by far the most effective device Another way to buy off almost any industry really large industries. Now that many when dealing with profit-seeking or professional association !s by means of Members of Congress are suggesting that businessmen. direct grants of money. The government may many of our industries could be deregu­ Those individual enterprises that are ex­ simply buy products from a company. It may lated it is surprising to see where the pected to benefit from some new government establish government research grants. It may objections come from-mostly from program have every short-run financial in­ subsidize certain industries directly. In the centive to promote the intervention, while case of the great railroads in the United large businessmen. How does this hap­ those whose interests are llkely to be affected States which were built in the 1860's and pen? Dr. Gary North suggested how this adversely-rival firxns, foreign enterprises, 1870's, the government offered m1llions of comes about in a very timely article en­ and especially consumers-find it exoensive acres of land to the railroad companies as an titled: "Walking Into A Trap", which t::> organize their opposition, since the ad­ incentive to begin and complete construc­ appeared in the May issue of the Free­ verse effects are either not recognized as tion. man. His article follows: stemming from the particular government Perhaps the most popular form of subsidy program, or else the potential opponents are is tax relief. Certain occupations, companies, WALKING INTO A TRAP scattered over too wide an area to be or­ or organizations receive tax breaks. In an era (By Gary North) • ganized inexpensively. The efforts of the of growing taxation, this approach has been (There is some justification at least in the potential short-run beneficiaries are con­ one of the most effective; the higher the tax taunt that many of the pretending defenders centrated and immediately profitable; the level, the more advantageous is tax exemp­ of "free enterprise" are in fact defenders of efforts of the potential losers are dispersed tion. The American oil industry was the re­ privileges and advocates of government ac­ and usually ineffective. cipient of multiple tax breaks until quite tivity in their favor rather than opponents The expansion of political power in the recently, and they are stlll substantial. of all privilege. In principle the industrial market process has been going on in the West All of these special favors are adopted in protectionism and government-supported for about a century, at least in the modern the name of the general welfare of the public. cartels and the agricultural policies of the form of interventionism, starting with the All of them involve the financial incentives conservative groups are not different from social security legislation of Bismarck's Ger­ for private individuals and firxns to conform the proposals for a more far-reaching direc­ many in the 1870's. Governments have thexnselves to the goals set forth by the tion of economic life sponsored by the so­ evolved a strategy by which whole industries sponsoring agency, the government. All of cialists. It is an musion when the more or professions are captured by the bureau­ them involve the transfer of wealth from conservative interventionists believe that cratic state. While this strategy is not the consumers and taxpayers to the beneficiaries. they will be able to confine these government only one used, in peacetime it has proven All of them involve a temporary suspension controls to the pe.rticular kinds of which they enormously successful. (Nothing, of course, of market forces and a redirection of those approve. In a democratic society, at any rate, favors political centralization more than competitive pressures. All of them necessarily once the principle is admitted that the gov­ war.) I have outllned this strategy by means involve a reduction of the sovereignty of the ernment undertakes responsib111ty for the of the following analogy: recipients, since they become partially de­ status and position of particular groups, it 1. Baiting the trap pendent on the government for continued is inevitable that this control will be extended 2. Setting the trap benefits. to satisfy the aspirations and prejudices of In short, the bait is most tempting. the great masses. There is no hope of a 3. Springing the trap return to a freer system until the leaders 4. Skinning the victim SETTING THE TRAP--EXTRA-MARKET COSTS of the movement against state control are BAITING THE TRAP--EXTRA-MARKET BENEFITS The government is a. political organiza- prepared first to improve upon thexnselves The pollticians enter an otherwise compet­ tion. Its justification is that it is an agency that discipline of a competive market which itive market situation with an offer to pro­ of the popular wm, an agent of the public they ask the masses to accept.-F. A. Hayek.l.) mote certain industrial or professional pro­ In its political capacity. It is therefore an grains. Taxpayers' money is used to finance agency of public defensE-. The general public The idea that businessmen are strong is to be protected from adversaries, Includ­ defenders of the free enterprise system is this program, but it is rare for the poten­ one which ts believed only by those who tial short-run beneficiaries to reject the offer ing domestic adversaries In a limited-gov­ have never studied the history of private on these grounds. Certainly, a majority of ernment system, this means that those who enterprise in the Western, industrial na­ those who are to be the recipients of the use fraud or violence against their neighbors tions. What businessmen are paid to worry special favor gladly accept it. They see their are to be penalized In modern Intervention- about is profit. The problem for the survival goals as being part of the public interest, 1st states, the concept of public defense is of a market economy aris'es when the voters and they view an offer of government aid as much broader. permit or encourage the expansion of gov- being only natural. They see it as their due. The government cannot lawfully make Those who refuse to take the special favor gro.nts of power or money to any group un­ Pootnotes at end of article. risk lower profits in the immediate future, less it Is in the publlc interest to do so. In May 17, 1978 EXTENSIONS OF REMARKS 14253 short, the state must police those who are threaten the semiautonomy of the group. but no prosecutions are begun by the govern­ subsidized by the state. The money cannot (There is no real autonomy if the govern­ ment, since nothing specifically illegal has be used exclusively for the benefit of private ment h~s granted some sort of favor.) been detected. The guild is powerless, ob­ citizens. The tong arm of the law is at the NEED FOR POLICING viously, for the same reason. This means that end of the strings attached to every grant The government demands that the indus­ the reports are going to continue. The guild of monopoly power or special favoritism. In try or professional group pollee itself. The will st111 be under pressure to do something theory, every dollar spent by the government market as a policeman has been compromised to stop the causes of the reports. Finally, new must be accounted for, to make sure that by the original grant of power or money. This laws are called for to clean up the industry, the public's interest is upheld in each ex­ compromised policeman-the consumers­ since the industry is seemingly incapable of penditure. The result, among others, is an cannot enforce its decisions inexpensively, policing itself. endless proliferation of forms. given the government grant. So the govern­ For professional associations, this is a dis­ The state grants a particular group spe­ ment calls on the group to pollee itself, and aster. Members have been led to believe that cial favors. But it cannot do so randomly. It it draws up certain standards that should be there are standards of practice within the must have a purpose, officially and unof­ met. The "partnership" between government profession. Yet these reports keep hitting ficially. The official purpose is not nearly so and professionals grows strained. So the in­ the front pages. Their self-esteem is chal­ important as the unofficial purpose. The of­ dustry or professional group elects (or more lenged. They begin to wonder what has gone ficial purpose is offered to calm the public likely accepts) certain spokesmen who will wrong. Maybe the reports are correct. Maybe (which must finance the grants) and to "work with" the other partner. This sup­ the government needs to do something-not make sure that the judiciary does not in­ posedly will insure that the interests of the anything drastic, of course, but enough to tervene. The unofficial purpose is almost government and the favored group wlll mesh, clean up the temporary mess and let honest universally this one: the expansion of po­ and that the group will continue to receive men continue to practice. They miss the litical power at the expense of private as­ its favors. On this point, I can do no better point: the government's task is to alter the sociations. than to quote Enoch Powell, the former M.P. practice of the honest men. The government Once the grant ha.s been made, the bene­ in Great Britain. He makes quite clear what wants to set all standards and enforce them. ficiaries use it for their purposes. The money the industry can expect. There will then be no doubt about who the is spent. Parkinson's Law takes over; expend­ They start more than half-beaten, by the senior partner is. Bureaucrats want control. itures rise so as to equal income. But ex­ very fact that they are, or claim to be, the The crisis is not created by the negative penditures are always difficult to reduce, spokesmen and representatives. It has been reaction of consumers. Businessmen do not especiaJ.ly in large, buree,ucratic organiza­ their pride and occupation to "represent" in­ find that one morning sales are down 30 per­ tions. The firms becom~ used to the higher dustry to the Government. Yet the safest pos­ cent because the public has decided to walk income. The income becomes part of annual ture for an industry confronted by Socialism away from the fraudulent segments of the forecasts. Managers expect it to continue. would be not to have an organization or industry. Professionals do not find their of­ After all, they are all agreed that such sub­ spokesmen at all. Instead of being able to fices empty for weeks on end. In short, it is sidies are in the national interest. Would coax, browbeat or cajole a few "representa­ not the market which drives home the mes­ the nation (the politicians) revoke their tive" gentlemen into co-operation, the Gov­ sage to the supposedly crisis-bound industry trust? Never! The organization is hooked. It ernment would then, unaided and at arm's or profession. The critics come from outside has become dependent on the continued length, be obliged to frame and enforce laws the market, probably from those who sel­ favors, meaning the continued favor, of this to control, manage or expropriate a multitude dom use the products or services involved, state. of separate undertakings-the true picture or if they do, who find the products or serv­ Inevitably, one firm or some individual be­ of private enterprise-with no means of get­ ices quite adequate in their particular cases. gins to take advantage of his position. He ting at them except the policemen. But the crisis is no less real, for the public exercises the monopoly grant of power which Powell is here speaking of an industry and even members of the associations per­ the state provided for him. He charges a bit which is not on the receiving end of major ceive it as a crisis. This means that the crisis too much. He starts running a "factory." Or government favors. If government has the in­ is real politically. "Politically" is what counts the firm or individual cuts quality. In short, dustry on a string, it need not have to resort in an era which is socialist or intervention­ someone actually begins to milk the system. to the policeman. All it needs to do is to ist in its economic outlook. THE PATTERNED RESPONSE cut off the subsidies, and the whole industry is put into a financial crisis. The ex­ What about the representatives of the in­ Some of us have become cynical over the istence of the subsidies calls forth the "in­ dustry? wm they co-operate? Powell answers years. We have so often seen this pattern, dustry's spokesmen." And to quote Powell, straightforwardly: and the government's equally patterned re­ "As soon as 'our President, Lord So-and-So' You bet they will. They are afraid not to. sponse, that we have been inclined to come is in a position to talk about what such-and­ They are afraid of being pllloried by the to a startling conclusion, namely, that the such an industry 'wants• or 'thinks' that in­ Government and its political supporters as government establishes the system in order dustry is on the road to the scaffold .... The "unpatriotic" or simply (damning word) that some beneficiary will milk it. That is a Association of these, the Federation of those, "unco-operative." They feel that the eye of primary purpose of the system of govern­ present just that one neck to the Socialist the public will be upon them, and they do ment favors. garrotter." 2 Once the government uses the not like the adjectives which they foresee Once the pattern of "exploitation" is de­ bureaucratic garrotte to strangle the repre­ would be liberally used inside and outside tected by citizens or government officials, not sentative of the industry who stands in pl.:l.~e Parliament--and w111 be, anyhow, before the to mention bureaucrats at any level of gov­ of all the members, there is no way out ex­ end of the day. Of course the line of true ernment, the response is politically inevita­ cept to repudiate the compromiser who stuck patriotism would be the opposite to the one ble. Someone calls for the government to do their collective necks into the garrote. If they are going to take. It would be to protest, something about the unfair use which is they do not pull out their own necks, they by all means in their power, short of break­ being made of the government's trust. Some will suffer the same fate. ing the law, against every kind of error and firm or some professional must be stopped The professional guild is perhaps the most nonsense as it comes along, and to oppose in and stopped now. The industry or guild must vulnerable, since the very nature of the their own industry any measure which does be policed. The consumer must receive pro­ "bait," namely, a monopoly position based of not commend itself to their knowledge and tection from the unscrupulous. guild-policed licensure, creates the very experience. But they shrink from this be­ The industry leaders naturally resent this policing organization necessary for the gov­ cause, although they have no seats to lose intrusion into the semi-free market. They ernment to impose its will at lowest cost. and no voters to offend, it takes courage of resent the fact that someone is milking the They can be appealed to on the basis of pro­ a special kind-political courage-to outface system. That person, for one thing, is trying fessiona.l standards and the guild's responsi­ authority and the popular cry of the hour. to get more than his "fair share" of the bility to a vaguely defined public, irrespec­ These men have commercial courage, and no booty. Also, he is making the government tive of the individual professional's ability to doubt physical courage too; but facing the angry. He is threatening the continuation of satisfy the needs of specfic members of the political music is something they have the subsidy. He is violating professional public. neither been trained nor volunteered for. So standards. SPRINGING THE TRAP-EXTRA MARKET CRISIS they play along with the search for an in­ This appeal to professional standards is comes policy, or export incentives, or what­ very important. The government knows what More cheaters are discovered. The guild ever else it may be. waffies. The cheaters continue to operate. appeals to make, and this is a good one. And, as Powell points out, "The effect is (The industrialist is not nearly so alert to The press scents blood and headlines. Politi­ cians scent blood and votes. When they look doubly damaging; for it also hamstrings any such violations, since the agreed-upon politicians who are prepared to raise their standards are not so clear.) The ethics of into the actual operation of the industry, they find more examples of men or firms that voices in protest." The public thinks it the professional association are at stake. strange that industry representatives have have goug~d the public, meaning people who They must be defended. Yet it is extremely not protested the accusations by the gov­ expensive to enforce standards on a col­ are taking advantage of the very system that the government created-an eminently ex­ ernment. Apparenlty, the leaders approve of league. Friendships are at stake. Careers are the government's policies. "Thus the co-op­ at stake. And eountersuits are at stake. Yet ploitable system. So the reports of cheating a small percentage of iD£ompetents (usually and fraud continue. The reports continue, erators effectively expose the fiank of the said to be about 3 percent by every repre­ anti-Socialist opposition and compel it to sentative of the professional association) Footnotes at end of article. fall back on positions which are better pro- 14254 EXTENSIONS OF REMARKS May 17, 1978

tected." 3 But not much better protected, he and fees are controlled, and work loads in­ Roll No. 307: To resolve into the Com­ might have added. crease. Regulatory agencies each claim a. piece mittee of the Whole House on the State Once the crisis is admitted to exist by the of the action, and the multiplication of of the Union. Yes. leaders, though of course on a. much reduced paperwork is endless. The formerly inde­ sca.le-3 per cent of our members, not 20 per pendent producers, who answered directly Roll No. 308: Amendment to H.R. cent-the battle is pretty well lost. To clean to the formerly independent consumers, now 12222, the International Development up that 3 per cent, the government wm answer to a. multitude of bureaucrats and and Food Assistance Act of 1978, to make alter the entire foundation of financing, enraged customers who detect the collapse of tobacco and tobacco products ineligible policing, and pricing of the industry's serv­ productivity on the part of the now-con­ for use in the food for peace program. ices. The corruption wlll escalate, but now it trolled suppliers. Most suppliers lose, most Yes. wlll be a. government problem, to be met by consumers loSE', and a. real crisis is produced. even more intervention. More laws can be Conclusion: Avoid the bait, rely on prin­ Roll No. 309: Substitute amendment passed, more penalties handed out, more ciple. to an amendment to H.R. 12222 to pro­ regulations enforced: the government ex­ The answer, philosophically, is to avoid hibit only direct aid to Vietnam, Cam­ pands its control relentlessly. The trap has sniffing at the bait. This must be done on bodia, or Cuba. . that what remains for submission to the To me it is an important incentive for Three demonstration plants utilizing ex­ Congress will be cut down considerably the cleanest, safest, and most economical isting technology and western coal can from the Department of Energy with its gasification have not been outlined by approach is nt~clear energy. It is puz­ the administration. This o:ff-the-shelf zling to me that the administration does major plant scale-up is an unfortunate premature narrowing of this option. technology simply does not work on east­ not even consider the nuclear option to em coal. So we must push R. & D. for be an integral part of their supply pic­ I am also calling for the creation of new second-generation technologies or ture. The licensing bill before the Con­ a Liquefaction Mobilization Board to we will never see gasification plants in gress to expedite siting and deployment prepare industry's project plans for half of the country including the North­ of nuclear powerplants has not even submission to DOE. I intend to in­ east which needs them so badly. I intend been mentioned by the administration troduce a liquids-from-coal bill which to pursue this facet of the program by as a part of the phase n initiative. includes these features. The additional seeking set-aside DOE R. & D. funding My nuclear strategy has three major funds required would be less than the within gasification for these new ap­ parts : First, breeder reactor develop­ DOE requested in their initial phase n proaches. We have already put together ment; second, nuclear fuel reprocessing: package mentioned earlier. this program in the Science and Tech­ and third, expeditious deployment of In the area of oil recovery it seems nology Committee. nuclear power plants. to me that a guaranteed purchase of I believe that the administration's ini­ The President has persisted in his op­ Western shale oil for national security tiatives in R. & D. for unconventional position to demonstrating fast breeder is the proper incentive. I prefer this to sources of natural gas is a move in the reactors on the basis of concerns about a fixed subsidy per barrel because the right direction. It is a tragedy, however, weapons proliferation. Yet we ·in the Department of Defense purchase can that the National Energy Act

Statements or insertions which are not spoken by the Member on the floor will be identified by the use of a "bullet" symbol, i.e., •

CXXIV---898-Part 11