10994 CONGRESSIONAL . RECORD-HOUSE July 19 By Mr. KNOX: 'By Mrs. FARRINGTON: PETITIONS, ETC. H. R. 7484. A bill for .the relief of Kwon ID H. J. Res. 389. Joint resolution to authorize Under clause 1 of-rule XXII, petitions Joo; to the Committee on the Judiciary. the Secretary of Commerce to sell the steam­ By Mr. MACHROWICZ: . ship La Guardi4; to the Committee on Mer­ .and papers were laid on the Clerk's desk H. R. 7485. A bill for the relief of Purifica­ chant Marine and .Fisheries.. and referred as follows: 'Cion de Peralta; to the Committee on the Ju- By Mr. ALLEN of California: 354. By Mr. DIGGS: Petition of the Estoni­ 4iciary. H. J. Res. 39.0. Joint resolution to authorize ans, Latvians, and Lithuanians of Detroit to By Mr. MARTIN: the Secretary of Commerce to sell the steam­ support a bill recommending continuance of H. R. 7486. A bill -for the relief of Gianbat­ ship La Guardia; to the Committee on Mer­ work done by Congressman KERSTEN's inves­ tista Grosso; to the Committee on the Judi· chant Marine and Fisheries. tigating committee on methods and means ciary. By Mr. MAILLIARD: employed by the Russians to occupy the Bal­ By Mr. SHEf>P ARD: H. J. Res. 391. Joint resolution to author­ tic States and· the crimes committed by them ize the Secretary of Commerce to sell the H. R. 7487. A bill for the relief of Irmgard in the Baltic States; to the Committee on S. King; to the Committee on the Judiciary. steamship La Guardia; to the Committee on Merchant Marine and Fisheries. Foreign Affairs. By Mr. THOMPSON of New Jersey: 355. By Mr. SHORT: Petition of Mrs. Eldora H. R. 7488. A bill for the relief of Chief By Mr. MILLER of California: H. J. Res. 392. Joint resolution to author­ Curry .Allman and other citizens of Lawrence Warrant Officer Dominique Gaud·ette; to the and Barry Counties, protesting alcoholic-bev­ Committee on the Judiciary. ize the Secretary of Commerce to sell the steamship La Guardia,· to the Committee on erage advertising; to the Committee on Inter­ By Mr. WALTER: Merchant Marine and Fisheries. state and Foreign Commerce. H. R. 7489. A bill for the relief of Emllienne By Mr. PELLY: 356. By the SPEAKER: Petition of the gen­ s. Yetter; to the Committee on the Judici­ H. J. Res. 393. Joint resolution to author­ -eral manager, the port of Portland, Portland, ary. ize the Secretary of Commerce to sell the Oreg., petitioning consideration of their reso­ By Mr. WHITTEN: steamship La Guardia; to the Committee on lution with reference to requesting passage H. R. 7490. A bill for the relief of Mrs. Merchant Marine and Fisheries. of H. R. 5789, relating to the John Day Dam; Jeannette S. Hamilton; to the Committee on By Mr. TOLLEFSON: to the Committee on Public Works. the Judiciary. H. J. Res. 394. Joint resolution to author­ 357. By the SPEAKER: Petition of the By Mr. WILLIS: ize the Secretary of Commerce to sell the president, Guaranty Cycle Co., St. Louis, Mo., H. R. 7491. A bill for the relief of Basa Alon­ -steamship La Guardia; to the Committee on -so Dominguez; to the Committee on the Merchant Marine and Fisheries. petitioning consideration of their resolution Judiciary. By Mr. HENDERSON: . with reference to requesting that the Presi­ By Mr. WOLVERTON: H. Res. 309. Resolution providing for send­ dent apprpve t~e Tariff Commission's recom­ mendations for relief to the stricken Ameri­ H. R. 7492. A bill for the relief of Philllpe ing to the United States Court of Claims the Nedjaai Braxton; to the Committee on the bill H. R. 7453; to the Committee on the Ju­ can bicycle industry; to the Committee on Judiciary. diciary. Ways and Means.

EXTENSIONS OF REMARKS

'The Charleston, S. C., Naval Shipyard ton Naval Shipyard I express the pride Example No. 1: On one participating in such singular accomplishments. I project--the Hammond-the Reclama­ Rewarded by the 3ecretary of the Navy want the records of this Congress and tion Bureau. would collect from the future Congreses to know of what my ·farmers only $2,02 per acre per year, but EXTENSION OF REMARKS people did in their day and generation says the direct benefits are $41.50 per OF for their Nation and the security of acre per year, or 2,000 percent of the democracy everywhere in the world. amount it would require the farmer to HON. L. MENDEL RIVERS ·pay. This contrast in benefits and re­ OF SOUTH CAROLINA payment ability is simply not believable. IN THE HOUSE OF REPRESENTATIVES Any formula achieving .such a result ob­ Another Reason for Not Building the viously needs a drastic overhauling. Tuesday, July 19, 1955 Upper Colorado River Project · Example No. 2: The Government's Mr. RIVERS. Mr. Speaker, the revenues from firm power production at Charleston ~ava1 Shipyard is one of the Hoover, Davis, and Parker Dams would outstanding shipyards in the Nation. EXTENSION OF REMARKS be decreased as much as 25 percent dur­ Records in the Bureau of Ships indi­ OF ing the time-which may be as long as cate that the emciency and cost per unit -25 years-the storage dams of the pro­ of conversion and construction at the HON. GLENARD P. LIPSCOMB posed project are filling. This loss has Charleston Naval Shipyard is more eco­ OF CALIFORNIA been ignored by the Bureau. nomical to the Government than any IN THE HOUSE OF REPRESENTATIVES In view of these major discrepancies, other yard in the Nation. This is a rec­ Tuesday, July 19, 1955 coupled with the fact that most of the .ord of which we in· South Carolina are projects named in the bill have a mar­ indeed proud. The men and women in Mr. LIPSCOMB. Mr. Speaker, the ,ginal benefit-~ost ratio under the Bu­ the Charleston N-aval Shipyard, both benefit-cost ratio of the upper Colorado reau's own figures, there should be an military and civilian, have a tradition un­ "River project has been distorted con­ independent review of the Bureau's com­ excelled in the Nation. Part and parcel trary to reclamation law in an attempt putations by a· group of impartial expert to justify the project's unsound eco­ economists. On the Seedskadee project, of this tradition is pride of performance. nomics. In this connection, Mr. Speaker, re­ for instance, the Bureau had to find The bill would, in effect, approve the $638,500 of indirect benefits and $313,100 cently the Charleston Naval Shipyard use of the so-called benefit-cost ratio for was the recipient of the Navy's three top of public benefits to add to the finding of testing the economic justification of irri­ $614,500 in direct benefits-all items over safety awards for the last calendar year. gation projects. This has never been One was the Secretary of the Navy'.s In­ authorized by law. The testimony shows a 100-year period-to -arrive at a final dustrial Award, another was the Secre­ 'that, as now practiced, the benefit-cost ratio of only 1.46 to 1. The indirect­ tary of the Navy's Motor Vehicle Award, ratio is 'Simply a device used in attempt­ benefits category includes such nebulous and the last was aNational Safety Coun­ ing to justify projects which are both factors as "the increase in profits of all cil Award. The National Safety Award economically and financially infeasible, business enterprises handling, process­ is a natfonal distinction and was first, by use of fictitious and unrealistic ing, and marketing products from the

awarded over every other single naval values· to inflate the benefits1 while, sec­ project and profits of all enterprises sup­ shipyard in the Nation. · ond, at the same time overlooking factors plying goods and services to the project Mr. Speaker. for and on behalf .of the of cost to the Nation which would result farmers," while the.public-benefits cate­ great family of employees at the Charles- from the project. gory is even more speculative, including 1955 CONGRESSIONAL RECORD- HOUSE 10995 dollar figures for Bureau guesses as to it slightly differently, 400 to 500 pounds of the United States stand ready, as of now, to the "increase or improvement in settle­ natural uranium could provide all the elec­ build 6. commercial atomic power plants tric power currently used in the United with a total capacity of 765,000 kilowatts and ment and investment opportunities, States, assuming that complete fission could have them completed within the next 5 community facilities, and services and be achieved. It was early recognized that, years, at a total cost of nearly $250 million. stabilization of the local and regional in a reactor designed for the purpose, the Some of these groups are prepared to pay economy." uranium could be so handled as to breed the entire cost out of their own pockets The only true criterion of economic more fissionable material at the same time without any financial help from the Federal justification of reclamation is reimburs­ it was furnishing heat. In this respect, Government, even though atomic power ability which has been the required basis uranium has a potential which conven­ plants are not yet a paying proposition, that tional fuels do not possess. is to say, they are not as yet economically of findings of feasibility since the incep­ However, on that December day in 1942, It competitive with conventional plants. tion of Federal reclamation in 1902. the men gathered around that first atomic American industry, large and small, is in should be maintained in the law without reactor had little time to speculate on the the picture in an impressive way. In close change. This the project utterly fails future. Dreams of atomic power for man's partnership with the Federal Government to do. peaceful pursuits had to be put aside. We under the new Atomic Energy Act of 1954, were at war, and the goal was to win a deadly the role of industry will grow and grow. race to produce an atomic weapon. We had The feasibility of using the great heat Atomic Power Is Born in America good reason to believe that the Germans generated in atomic fission to make steam, were working on such a weapon, and it was which is in turn used in turbo-generators to clear that we had no recourse but to see that produce electricity (as is the process which EXTENSION OF REMARKS we were not bested and beaten to that goal. we will see demonstrated here in a few Once the war was over, we were com­ OF moments) was given a practical demonstra­ pelled to continue the development of nu­ tion by the Atomic Energy Commission as HON. W. STERLING COLE clear weapons, because no other prudent long ago as December 1951, although on a course lay open to us. On the strength of considerably smaller and more intimate scale OF NEW YORK our defenses rested our hopes of escaping than that we are now about to witness. IN THE HOUSE OF REPRESENTATIVES from another catastrophic war. Neverthe­ less, we were determined to move as rapidly - On that earlier occasion, using a small Tuesday, July 19, 1955 as possible in developing the peaceful uses pilot-type reactor of th~ experimental breeder of atomic energy in our own country, and design, we converted enough atomic energy Mr. COLE. Mr. Speaker, on July 18, to encourage similar development in other into electricity to satisfy the needs of a good­ 1955, for the first time in America, and countries. As a Nation, we have good rea­ sized commercial building. That was at the perhaps in the world, electric energy of son to be proud of the use we have made of Commission's testing station in Idaho. That commercial quantity was generated from the peaceful atom and of our cooperation is to say, a 250-kilowatt generator added to atomic energy. On that day, Lewis L. with friendly nations abroad. the reactor supplied enough electricity to run Fermi's first pile of uranium and graphite the machinery and provide lighting for the Strauss, chairman of the Atomic Energy reactor building. Commission, threw the switch which bricks was but a primitive ancestor and bore hardly any resemblance to the SIR Mark A Again, in March of 1953, at the Commis­ closed the circuit and sent the electricity reactor housed here at West Milton in its sion's Oak Ridge National Laboratory, the into the network of the Niagara-Hudson huge shell of steel. same results were achieved with an entirely Power Corp. to be used in light­ Fermi's pile had a computed normal power different type of reactor, a homogeneous ex­ ing homes and factories of the people level of one-half watt and, for a few minutes perimental type. in central New York. It was momen­ on that December day, it was allowed to rise In each case, of course, the amount of tous and historic occasion which I was to a level of 2 watts--barely enough to light electrical power produced was too small to privileged to observe, and represented a flashlight. be commercial. Not until today, has a suf­ the culmination of many years of plan­ Today, as the mere byproduct of a reactor ficient amount of power been produced as designed, not to provide commercial power the byproduct of an experimental reactor ning and effort on the part of thousands but to propel a submarine, we are met to to make its commercial distribution prac­ of persons directly and indirectly en­ turn over to the people, for their peaceful tical. gaged in the atomic energy program. pursuits, up to 10 million watts of electric­ However, there can no longer be any ques­ The address of Mr. Strauss is attached ity-5 million times the power level of tion of the feasibility of atomic power. The herewith: Fermi's pile of only 12Yz years ago. atomic submarine, the Nautilus, has provided Looking ahead to this occasion during the Surely this is an exciting occasion, but impressive testimony of that. past few days, I found myself thinking back even so, we must bear in mind t~at we are Our second atomic submarine, the Sea. to an event that preceded this one by 12Yz only now arrived at a point in the atomic Wolf, is to be launched at Groton, Conn., on years. age comparable perhaps to that reached by Thursday of this week. The reactor which I tried to create in my mind's eye what the the caveman who discovered that he could will provide the electric power for today's scene must have been on that raw winter's make fire by rubbing two sticks together, event, is, as you know, the land-based pro­ afternoon of December 2, 1942, under the and who went on to dig a pot hole in the totype of the liquid metal-cooled reactor stands of Stagg Field Stadium at the Univer­ fioor of this cave and chisel out a smoke hole which will go into the Sea Wolf. It is the sity of Chicago. There, you will remember, in the roof so he might warm himself and first full-scale reactor of this type. Enrico Fermi and his small group of asso­ cook his food. It took thousands of years This prototype reactor for the Sea Wolf ciates prepared to start the first atomic before his descendents learned to put that went "critical"-that is, it achieved sustain­ reactor. heat through engines to drive their trains, ing nuclear chain reaction for the first time­ What were their emotions in that moment ships and planes and do all tne multitude on March 20. And just 2 months ago to of eternity? Did any vision of the future of things that we now perform with the the day, its first useful power turned its own reveal itself to them as the control rods relatively feeble energy derived from the turbines and propeller shaft. were slowly inched out of the slots in that chemical reaction we know as fire. It is interesting to note that, since May primitive pile of uranium and graphite? We are just at the small beginning of 18, when this occurred, the Atomic Energy Of course, there could be no public cele­ trying to apply the greft.t energy of atomic Commission has had three power reactors bration of that event. Another 2Yz years reaction, but our program should be vastly operating simultaneously-this one at West were to pass before the secret could be told accelerated by our accumulated knowledge. Milton, the land prototype of the Nautilus of man's success in mastering the energy of Each forward step such as the one which is reactor at the commission's reactor testing the invisible atom by means of a self-sus­ occurring here today, adds to that store of station in Idaho, and the atomic power plant tained chain reaction. knowledge. · aboard the Nautilus herself. Dr. Fermi and the other scientists who In a matter of minutes now, the homes As I have said, this prototype reactor which were guardians of that awesome secret fore­ and industries of this part of the Nation are stands ready now to release its power into saw even then just such a day as this when to receive several thousand kilowatts of waiting homes and industries, was not built the energy they had brought under control atomic electric power. with the intention of serving as a commer­ would be used to light homes, provide pro­ In 2 years or less our first full-scale cial power plant. It was conceived, built pulsion and turn the wheels of industry. plant to produce commercial electrical power and operated on an experimental basis to They knew that 1 pound of uranium-a from atomic energy will be supplying 60,000 provide design information and develop op­ piece no larger than a golf ball-if :tlssioned kilowatts of electricity to the Pittsburgh erating techniques for its "sister plant" to completely, could prOduce as much energy as area. That plant, for which President Eisen­ be installed aboard the Sea Wolf. 2 Yz million pounds of coal. The energy hower broke ground last Labor Day, is und~r Therefore, the submarine intermediate re• bound up in such a 1-pound ingot of natural .construction at Shippingport, Pa. actor which is sealed inside the large steel uranium would represent about 3 million American companies, and groups of com­ sphere here at West Mllton might' properly kilowatt-hours of electricity. Or to express panies and cooperatives in various parts of be regarded as a military device. Certainly 10996 CONGRESSIONAL RECORD- HOUSE July 19 its prime purpose was to enable us to develop States mark the beginning of a fulfillment quota barriers had disastrous effects on the the most emcient power plant possible for of the scriptural injunction of Isaiah: 1mand. Now the administration has recom­ one of our newest and most effective "They shall beat their swords into plow­ mended changes in sugar legislation to divide ~hares and their spears into pruning hooks ... with domestic producers an expanded mar­ weapons of defense. ket. Some quick figuring has shown Cuba The capabilities of the Sea WoZf, the that, no matter, how it works out, her sales amount of power at her command and other will drop. When the island's largest in­ details of her power plant and performance dustry suffers, her people will suffer. must be secret. And this prototype of her Cuba Worries About Sugar Laws Well, what are we to Cuba. and what's atomic power plant must likewise remain so Cuba to us? There is a special relationship. classified, in the interest of our national se­ EXTENSION OF REMARKS We freed the island from Spanish domina­ curity, even though that prototype is today tion in 1898, and in years thereafter our being converted to the most benign purposes. OF statesmen promised her independence and a To my mind, this circumstance-that is to chance to grow in to a prosperous, modern say, the fact that this plant was designed HON. ALBERT P. MORANO hation. Over the years, 'despite fluctuations, and built to serve a military function-is the OF CONNECTICUT Cuba has grown to be a strong neighbor .and. most appealing aspect of this wholly peace­ IN THE HOUSE OF REPRESENTATIVES a good customer. Only fi"Ve countries in .tul occasion. the world bought more from us last year I find it appealing for thls reason. All of Tuesday, July 19, !1955 than Cuba. And, with prosperity, the is­ you will surely recall President Eisenhower's land has been pushing a public-works pro­ stirring speech to the United Nations on De­ Mr. MORANO. Mr. 'Speaker, under gram while private construction has been cember 8, 1953-when he launched his pro­ leave to extend my remarks, I wish to active. But it is .all based on a sugar econ­ posal which has since come to be generally 1nsert in the CONGRESSIONAL RECORD omy, and the prospects of American legis­ known as "atoms for peace." an editorial from the Hartford Courant, lative action have alarmed the Cubans. Let me bri~fiy quote from that speech, the oldest newspaper of continuous pub­ True, Cuba has been developing her out­ which has inspired and lifted the hopes of side markets. Demand from the so-called men and women all over the world. They lication in America. This editorial was published Saturday morning, July free-world market has been heavier than .are words that deserve to be heard again and 16, expected, but some of that has been via the again: · 1955. It concerns the matter of the Soviet Union. Cuba has received a large "It Js not enough to take this weapon out sugar quota for Cuba. It is an intelli­ share of business from Russian buying in of the hands of the soldiers. It must be put .-gently well-written editorial, with which the world markets. But 'if sttfting action is into the hands of those who will know ·how 'I am in complete agreement. taken here, Cuba will find her progress to strip its m1litary casing and adapt it to checked. A low state of political and eco­ the arts of peace. The United States knows Cuba is the gateway to Latin America. In some respects.. United States relations nomic health may result. And that, Cuban that if the fearful trend of atomic military 1eaders think, will be dangerous to us as buildup can be reversed, this greatest or de­ with Cuba act as a barometer of United well as them. For each American dollar structive forces can be developed into a States-Latin American relations in gen­ used to buy Cuban sugar, President Batista great boon, for the benefit of all mankind.n eral. CUba is the fourth most impor­ has noted, $1.18 ls spent on American goods, The President went on to say: tant country in the world for United including agricultural products. "The United States pledges • • • to de­ States private investment, which at the We have special reason to view with care vote its entire heart and mind to find the end of 1950 totaled $642,400,000: Forty­ any actions affecting our relations with good way by which the miraculous inventiveness one of CUba's active sugar mills are . neighbors of the Western Hemisphere. The of man shall not be dedicated to his death, .Cubans feel that any cut in the established but consecrated to his life." owned and operated by American inter­ sugar qubta would bring immedtate eco­ Now today, thts atomic powerplant de­ ests and produce approximately 4~ per­ nomic 1nstabi11ty and cause serious con- signed and constructed for experimental cent of Cuba's sugar crop. ·Any modi­ ·'Sequences. The island is a respected and m111tary purposes is being consecrated-in fication of the Sugar Act, based on leg­ close friend of the United States. We should the most convincing manner possible-to islation now being considered by the proceed cautiously in economic matters af­ the benefit of man. House Committee on Agriculture, would fecting that friendship. It is a moving demonstration that the have an immediate and adverse impact atom can indeed be stripped of .its miUtary on_the general economy of CUba. casing and adapted to the arts of peace. As this splendid editorial in the Hart­ What we are about to do may wen stand The Proposed F.all on Highway Bill as a symbol of our hopes and aspirations ford Courant points out, CUba is our for the day when the atom will serve only sixth largest marke't for exports from the as the servant of man, and never again United States. Products exported to EXTENSION OF REMARKS as his destroyer. Cuba are produced in every section of OF Like this submarine prototype r-eactor, now :the United States. Rice growers and converted to the production of civiUan processors in Louisiana, Texas, Ark13-nsas, HON. WJLLIAM H. AYRES power, our atomic weapons stockpile also has Mississippi, and California benefit. oF omo another and haj>pler potential. Conven­ Farmers in .Iowa, lllinois, Indiana, Ohio, IN THE HOUSE OF .REPRESENTA'I'IVES tional weapons such as shells. tanks, guns, and planes become obsolete with time and Missouri, and Minnesota derive income Tuesday, July 19, 1955 whatever is recoverable is by salvage at a particularly in agricultural exports. fraction of their cost. · Textile manufacturing states of North Mr. AYRES. Mr. Speaker, the pres- But when the day which we pray for finally and South Carolina, Georgia, Alabama, ent confusion surrounding the proposed comes,-when our atomic devices are no Virginia, Tennessee~ Texas, Massachu- Fallon highway bill shows what happens longa- necessary to deter aggression, then setts, and Connecticut find Cuba a good when a congressional committee other the nuclear components can easily be con­ market. Large quantities of iron, steel, than'Ways and Means attempts to write verted into material, such as is in this and other metal• products are exported a tax bill. reactor, to bec0me great sources of benefi­ from Michigan, Ohio, Illinois, Pennsyl- The original suggestion of the rail- cent power. providing the conveniences and vania, New York, and New Jersey. roads that a tax of not less than 50 cents blessings of peace to our people. ~t is to our best interest, therefore, per pound .of tire was so ridiculous that Beside me stands a large two-way switch. that we increase our sugar quota rather :a counterproposal of 10 cents additional If I throw its blade ln one direction tt will t per pound of tire was soon suggested. turn the propellor shaft of a military wea­ han cut 1t. If we in"Crease our sugar No consideration has been given to the pon. quota from Cuba, thereby stabilizing scientific development of the rubber in· But when I throw it in the other direction, Cuba's economy, this would also increase dustry. In a few years mnertubes may as I about to do, it wi111:1end atomic -electric our export market to this neighborly not be manufactured in any quantity at power surging 'through transmission li:nes country. all and 'tires, in all probability, will' wear to town,s and vlllages~ farms and factories­ power not to burst bombs or propel sub­ The editorial follows: longer and be lighter in weight. The nmrines, but to make llfe easier, hea1thier CuBA WORRIES ABoUT SuGAR LAws anticipated revenue may not reach half and more abundant. In CUba, wnere sugar-growing is the bul- the amount currently expected. This switch .is a symbol of 'the great ~­ wark of the economy, any changes in United Under the rules of the House -of Repre .. lemma of our a.ge. . States tr.ade policies are anxiously viewed. · sentatives, the Speaker is constrained to I throw 1t now to the side of the peaceful Cubans cannot forget grim days of the give precedent its proper inftuence atom and by that choice we of the United 1920s and 1930s, when American taritr and Precedent was broken when a major ta~ CONGRESSIONAL RECORD_- _ HOUSE 10997 bill was not referred to the Ways and property for Government socialism of inclusion of additional projects contem­ Means Committee of the House. Since desert mountain lands. · plated for authorization, the subsidy the Fallon Bill contains approximately Congress is being asked to appropriate would be substantially the same as under $12 billion in additional taxes, · if billions· of dollars to bring these new the Senate-approved bill, namely, $4 bil­ the Rules Committee follows precedent farms into .production in a country liori or $5,000 per acre. it wouldllave to grant a closed rule. In where there are as few as 42 days in As compared to Federal subsidies this case, the House would not have an which to grow even pasture grasses for amounting to $3,000 to $5,000 per acre opportunity to correct the inequities in dairy cows and sheep to graze on and to that would be involved in the project, the the present Fallon bill. produce more surplus butter and wool. value of irrigated land in the area of I suggest that Speaker RAYBURN re­ It snows· practically every month of the proposed reclamation projects aver­ verse himself and assign the tax part of the year in these 3 counties where it is ages only about $150 per acre. the Fallon bill to the Ways and Means proposed to develop 110,000 acres. · In view of the fact that the crops that Committee where an equitable nondis­ If more agricultural acreage is needed would be grown on the proposed project's criminatory pay-as-you-go tax bill in this country there are millions of high altitude marginal land would be can be written. Then the House can de­ acres of first-class land awaiting devel- largely hay. grain, and forage crops for cide whether they want President Eisen­ .opment in humid, fast-growing sections. livestock, and dairy products, which are hower's highway program or the Demo­ · We do not need to go to the top of the · now largely surplus and would in turn cratic highway proposal. Rocky Mountains to create new farms be resubsidized under the farm program, on poor land at fantastic cost. It is in- the huge Federal subsidy required for deed a proposition as absurd a.s growing the proposed upper Colorado River proj­ ·bananas on Pikes Peak. This further ect would be a totally unwarranted and Upper Colorado River Project Freezes Up extension of the absurdities of social- unconscionable burden on the Nation's ism which prevail in every country ought taxpayers for many generations hence. 323 Days a Year But Costs $5,000 an to be stopped right now in America. Acre

EXTENSION OF REMARKS There Can Be No Las6ng Peace Without OF Another Reason for Not Building the Russian Guaranties of- Freedom to the HON. RALPH W. GWINN Upper Colorado River Project Enslaved Peoples of Lithuania and the OF NEW YORK Baltic States EXTENSION OF REMAR~S IN THE HOUSE OF REPRESENTA'I1VES OF Tuesday, July 19, 1955 EXTENSION OF REMARKS HON. EDGAR W. HIESTAND OF Mr. GWINN. Mr. Speaker, a part of OF CALIFORNIA the proposed multi-billion-dollar upper HON. HAROLD D. DONOHUE Colorado River project lies at such high IN THE HOUSE OF REPRESENTATIVES OF MASSACHUSETTS altitude that it. would have a growing Tuesday, July 19, 1955 IN THE HOUSE OF REPRESENTATIVES season of only 42 days a year. Mr. IDESTAND. Mr. Speaker, the Tuesday, July 19, 1955 It would cost the taxpayers of the ·huge concealed Federal subsidy to the Nation nearly $5,000 an acre to develop States of Colorado, Wyoming, Utah, and Mr. DONOHUE. Mr. Speaker, . I am hay lands in this high; cold country New Mexico is unwarranted and uncon­ pleased to insert a copy of my letter of where in some places it snows every scionable. Jul-y 13, 1955, to the President request­ month in the year, and where spring Under the proposed plans of financing ing him to include, on the agenda of killing frosts come as late as July 11 the project, the concealed subsidy by ,summit meeting discussion, a demand and fall frosts as early as August 22. way of accumulating interest on money that the Kremlin representatives demon­ . A large part of the land to be irrigated borrowed to construct the project would ·strate the honesty of their loudly de­ in this inconceivable project lies at an be huge. Its burden would have to be clared desire for a peaceful world by altitude of 6,500 to 7,ooo feet in the borne by the Nation's taxpayers for gen­ promising freedom to the persecuted peo­ Wyoming counties of Lincoln, Sublette erations to come. ples of Lithuania and the other Baltic and Uinta. Under the repayment provisions of the States. The President acknowledged In Lincoln County killing frosts come Senate-approved project bill the con­ receipt of my request on July 14 and as late as June 30 on an average, and as cealed Federal subsidy on only the proj­ wrote in part: early as August 22. The growing season ects recommended by the Secretary of . I can assure you that the matter will have runs between 53 and 73 days. ·the Interior-Olen Canyon and Echo our earnest consideration. In Sublette County killing frosts come 'Park storage units and 11 participating My letter to President Eisenhower fol­ as late as July 11 and as early as August projects-as estimated and admitted by lows: 22. The growing season runs between the Bureau of Reclamation would be CONGRESS OF THE UNITED STATES, 42 and 62 days . . $1,153 million over the repayment period HOUSE OF REPRESENTATIVES, In Uinta County killing frosts come as or $3,150 per acre on the 366,000 acres Washington, D. C., July 13, 1955. late as June 11 and as early_as Septem­ to be irrigated. ~ the four additional The Honorable DWIGHT D. ErsENHOWER, ber 7. The growing season runs between storage units and the Navaho, San Juan­ The President of the United States, 88 and 92 days. Chama, and Gooseberry participating The White House, The upper Colorado River would cost reclamation· projects authorized by the Washington, D_ C. the Nation's .taxpayers $5,600,000,000 or Senate bill are included, the correspond­ MY DEAR MR. PRESIDENT: On the e.ve of more than $140 for each American fam:.. your departure !Qr the historical summit ing Federal subsidy, based upon equiva­ meeting with other Western Power repre­ ily, and possibly much more. This does lent methods of computation,. would sentatives and the Soviets, the full support not include losses due to the tax exemp­ amount to $4 billion or over $5,000 per of the Congress, the confidence of the Amer- ·tion of the project. It would grow crops -acre on the 745,000 acres to be irrigated. ' lcan people, and the prayers of all the 'Chris­ .which are unneeded. So.• on this recla­ - Under the repayment provisions of tian world are combined for the success of mation project the taxpayers would pay House project bi:ll, the concealed Federal your mission. for the land and then for the unneeded subsidy on the minimum number of proj­ I am positive that the most intensive work has been devoted to the assembly of crops it ~rows. ects authorized by the bill-4 storag~ -proposals to be advanced by you at the Con­ That is, ·it would grow crops if frost units and 11 participating projects­ ference in providing a foundation upon . and summertime snows did not kill would amount to $1.6 billion at the end which all parties can agree to work together everything. The whole thing is ridicu... of the overall repay~ent period of 90 toward easing the tensions of threatening .Ious, extrava:gant, and unnecessary. It to 95 years, or $~.300 per acre on the atomic war and cooperatively pursue the constitutes an immoral taking of private 366,000 acres to be irrigated; but with the . practically universal 9esire for world peace. 10998 CONGRESSIONAL RECORD- HOUSE ·July 19. Among such basic proposals, may I most come a substitute for action, but rather, Of the 63'{ projects mentioned aqoye, _546 respectfully advocate the inclusion of a r.e­ simply a step prior to action. were not iocated in congested urban areas quest for the Kremlin representatives to · or near major military installations; 86 were It would ·appear, however, that a granted exceptions to the criteria through promptly exhibit the honesty of their de­ Hoover-type commission could bring this clared desire for a peaceful wor~d by an­ documented evidence that excessive losses nouncing their intention to bestow freedom issue up to the proper level of govern­ or delays in production or unreasonable eco­ upon Lithuania and the other subjugated mental, industrial, labor, and public at­ nomic hardships would ensue due to a change Baltic States of Latvia and Estonia. tention, and set a comprehensive policy of site; and 5 were denied certification for As a premise to such a request, the Soviet which would thereafter be carried out. refusal to meet the dispersion criteria and representatives might well be reminded that -I send to the desk three items indica­ failure to justify exception. they were among the signers of the Atlantic If you desire any further information, tive of this problem. The first is the please let me know. Charter which solemnly guaranteed, and I text of a letter to me from Director Ar- quote, "Every Nation's right to a form of Sincerely yours, government and an economic system of its . thur s. Flemming, of the Office of De­ ARTHUR S. FLEMMING, own choosing is inalienable. Any Nation's fense Mobilization of the .Executive Of­ · · Director. attempt to dictate to another Nation their fice of the President, together with a form of government is indefensible!' copy of his testimony before the Senate ExTRACTS FROM REMARKS OF ARTHUR S. FLEM• You and I well realize from the history of Armed Services Committee earlier this MING, ·DIRECTOR, OFFICE OF DEFENSE MOBI• our own country, and I am sure the Soviet - year on this problem. Director Flem­ LIZATION, AT HEARING BEFORE SUBCOMMITTEE omcials very well realize it also, that peace ming commented upon a reference to the OF SENATE ARMED SERVICES COMMITTEE ON cannot be attained in either a nation or a. FEBRUARY 22, 1955 world that is half slave and half free. dispersal problem which I had made in an address in my State last month. The nature of the problem of dispersal was From personal knowledge of your own summari2!ed very effectively by those who · sentiments on this subject, I am certain you The second is a letter from the senior participated in the project East River when will exercise every persuasion to convince vice president of the National Associa­ they said: the Russians that the solution of this basic tion of Manufacturers, Mr. Kenneth R. "The problem, therefore, is one of achiev­ problem of enslaved peoples is·. essential to . Miller, likewise commenting on this sub­ , ing the best balance of dispersion or spacing any progress toward a peaceful world and ject. within the practical limits of a. properly that without such solution the Conference functioning urban economy." could be productive of no lasting contribu­ And finally, as an indication of the actual status of dispersal, which is, I re­ It is clear that this "best balance" is going tion to peace. to be obtained only as leaders in the fields of Praying God's blessing upon your mlsslon, peat, a very inadequate and disturbing management and labor as well as representa­ I remain, status, I append an editorial feature tives of our State and local governments Very sincerely yours, from Time magazine's issue of June 27. search for the best possible solution for their HAROLD D. DoNOHUE. I ask unanimous consent that all three specific problems. The Federal Government of these items be printed in the RECORD. must be an active participant in the search There being no objection, the several for these solutions as it has the responsibility items referred tO were ordered to be for pointing up the interests of the Nation as a whole- as judged by the capability of The· Problem of Industrial Dispersal printed in the RECORD, as follows: Soviet Russia to launch an attack on conti­ ExECUTIVE OFFICE OF THE PRESIDENT, nental United States. EXTENSION OF REMARKS OFFICE OF DEFENSE MOBILIZATION, This search .for the best possible solutions OF Wa'shington, D. c .• July 18, 1955. to the problem of dispersal is not going to be Hon. ALEXANDER WILEY, pursued vigorously until the legislative­ United States Senate, Washington, D. C. branch unites with the executive branch of HON. ALEXANDER WI-LEY the Federal Government in expressing their OF WISCONSIN DEAR SENATOR WILEY: Thank you for your letter of June 29, relative to accelerating joint conviction that. such a search must be IN THE SENATE OF THE UNITED _STATES plans for industrial dispersion in which you undertaken and likewise unite in establish­ ing the broad framework of policies within Tuesday, July 19, 1955 enclose a copy of your fine address recently delivered at Wisconsin State College. which such a search must take place. .Mr. WILEY. Mr. President, over the On February 22, I appeared before the In order to expedit~ a. united attack of this kind on the problem of dispersal it is sug­ years I have been deeply interested in Subcommittee on Civil Defense of the Sen­ ate Armed Services Committee and suggested gested that the Congress authorize the im­ the problem of dispersal and decentrali­ mediate establishment of a. commission to zation for purposes of decreasing the that the Congress authorize the establish­ ment of a Hoover-type commission to study be appointed in a manner comparable to the dangerous vulnerability of · the United the problem of dispersion. This problem has appointment of the Hoover Commission by States to enemy blitz attack. become more complex since the advent of the President and by the presiding omcers of Down through the years, I have been more powerful nuclear weapons, and its reso­ the Senate and the House of Representatives. in contact with every Government lution, I firmly believe, requires the united This commission should be charged with the action of the legislative and executive responsibility of presenting a series of rec­ agency working in this field. ommendations to the Congress on the prob­ I am frank to state that unfortunately branches of the Federal Government. It seems clear that the national dispersion pol­ lem of dispersal not later than May 15, so as we, as a Nation, have not achieved a to give the Congress the opportunity of act­ fraction of the progress which we should icy, announced by President Truman in Au­ gust 1951, is wholly inadequate in view of ing on them before the adjournment of the have achieved by now, reducing the ap­ these recent nuclear-weapons developments present session. The technical information palling overconcentration of industrial and that a revision is essential. that would be needed by such a. commission targets in this country. is available and as a. result it should be able I am pleased to see that a bill (S. 2215), to complete 1ts work within the time limits During the past decade there has been to establish a. civil defense commission to indicated. a tremendous expansion of the factories study dispersion, has been introduced jointly This is the only way in which a. solid foun­ of the American free-enterprise system. by Senator KEFAUVER, chairman of the Sub­ dation can be constructed on which a mean­ But we have lost to date a golden oppor­ committee on Civil Defense, Senator MAR­ ingful dispersal_program can be erected. tunity by not dispersing many of these GARET CHASE SMITH, and Senator JACKSON of In the meantime I feel that the problem that subcommittee. Other bills of a similar factories. Instead, they have largely should be approached along the lines of the nature ~ have been introduced in both the following statement: congregated in the already overcon­ Senate and the House of Representatives. gested handful of major American urban The executive branch of the Federal Gov­ I hope that the Congress will take favorable ernment a few years ago recommended poli­ centers. action on one of these at an early date. cies of dispersal and protective construction. I earnestly hope that legislation to You have indicated your interest with re­ Under the terms o~ the dispersal policy, new establish a Hoover-type commission to spect to the progress of industrial disper- defense facilities were to be located not less make a full and complete study of. the .sion so far achieved as a. result of rapid tax than 10 miles beyond the perimeter of cer­ dispersal problem will be enacted before amortization. May I point out, in this con­ ~ain designated areas of industrial and popu­ the end of this Congress. nection, that since the dispersion criteria. lation concentration. Adherence to this were made a. part of the tax-amortization standard by many industrial concerns has Ordinarily, I am somewhat skeptical procedure, we have processed through Feb­ of leaving to commissions the making of reduced their vulnerability to attack. ruary 15, 1955, 637 projects subject to the The r~cent statement of the Chairman of more and more studies on subjects which dispersion criteria, each costing $2 million the Atomic Energy Commission on weapons already have been studied in detail. I or more. Their total estimated cost 1s $4:7 effects makes it clear that it is stlll possible do not believe that studies should be- billion. · to reduce, by dispersal, the disastrous effects CONGRESSIONAL RECORD- HOUSE 10999.

of blast and heat, when accompanied by pro­ bers. We greatly appreciate the encourage­ miles outside New York City to feed, sleep, tective measures against fallout. It is equal­ ment given to American business outl1Iied and serve as GHQ for 100 top executives. ly clear; however, that a mileage yardstick in your letter of June 30. Curtiss-Wright bought 84 square miles in that would conform to the increases in weap­ Of course in all of our deliberations. as in northcentral Pennsylvania to assemble jet ons capabilities could not be applied in a your own thinking I am sure, we are guided engines and . 5,000 aeres in New Jersey's practical manner to all situations in all parts by the fundamental concepts of our free­ Ramapo Hills for a bombproof headquarters. of the country. Any effort to do so would enterprise system. The petroleum industry has set up five re­ disrupt the economy of some parts of the Sincerely, gional committees to run the natural-gas Nation and would fail to take into consider­ KENNETH R. MILLER. and oil industry in each area, and A. T. & T. ation differing geographic and other factors. arranged alternate toll-call routes and emer• Therefore, a revision of the dispersal policy gency generators. One company has even is necessary that will take into consideration INDUSTRIAL DISl"ERSAL-BETTER DEFENSE AND BETTER BUSINESS stocked its secret rendezvous with disaster the practical problems that confront the paychecks printed on distinctive notepaper States and cities and that will result in their In last week's simulated H-bomb attack. and made out in standard amounts. being able to work out reasonable dispersal Washington officials dispersed to 31 dUierent But dispersal is not practical for all, can plans applicable to their situations. · hideouts. But for United States industry­ be both bad economics and bad defense. State and local governments of each of our th-e heart of the Nation's warmaking power­ Some industries, e. g., automobiles and ship­ major target areas should develop plans, in dispersal was not so easy. Had there been a building, require large concentrations of cooperation with the Federal Government, real H-bomb attack, 15 accurately dropped machinery, labor, and materiais, and any at­ to enhance our ability to Withstand attack bombs could have demolished two-fifths of tempt to break them down into small, easily through dispersal of industrial facilities, pro­ America's industrial capacity. dispersed units would be almost as damag­ tective construction and active participation The Pentagon is deeply worried over the ing to war production as bombing itself. in civil-defense programs. No hard and small progress toward dispersing United Nor is dispersal simply a matter of picking fast rule can be provided by the Federal Gov­ States industry. Air Secretary Harold Tal­ up a factory and transporting it to the ernment that would be equally suitable in bott has already warned that the Air Force middle of nowhere. While the factory might all situations and in all parts of the country. plans to discourage further expansion of be safer in its new home, it might also pro­ Criteria for measures which will lessen or plane and missije factories in southern Cali­ duce next to nothing-for want of housing, minimize the damage which an attack might fornia, where 25 percent of the region's pay- · skilled labor, and transportation facilities to ·inflict must now take into account size of roll is devoted to military aircraft produc- ge:t raw materials. the cities, the relation of geography, terrain, tion. · economic, and other factors. Thus it can Nevertheless, from now on industry should So far, little has been done on purely mili­ incorporate military purpose in its economic be seen that the situation in each area must tary grounds to .speed up industrial dis- · be analyzed carefully in the light of numer­ thinking and keep dispersal firmly in mlnd persal-partly because of the enormous cost. as it plans further expansion. Dispersal and ous considerations. This has not been done. Not unti12 years after the Korean war began The Federal Government, however, has avail­ decentralization are as much considerations able some basic information to assist State did Washington take its first--and only­ of forward-looking management as healthy and local governments in making such significant step. It ruled that in the future labor relations or sound accounting practice. analyses with the Department of Commerce all new plants seeking rapid tax amortiza­ For many companies, dispersal will mean not being the focal point through which such tion certificates would have to be located at only greater safety in war but greater effi­ assistance will be given. Similar assistance least 10 miles outside "probable ground zero," ciency in peace. w111 be available to industries through the 1. e., defense industry and population centers. Department of Commerce as the focal point. By that time, however, the Government had In terms of new industrial construction, already granted fast tax writeoffs for $20 advice should be sought from the Depart­ billion in defense construction. Moreover, Minimum Wages in Puerto Rico ment of Commerce or other appropriate Fed­ even the belated rule has largely been eral agency. In the case of new .· defense ignored. Only 546 projects, costing $3.9 facilities where application is made to the billion, have met dispersal requirements. EXTENSION OF REMARKS Office of Defense Mobilization for a rapid Meanwhile, the requirements themselves are OF tax amortization certificate, the certificate outdated, have not been changed to meet the wm not be granted unless such advice bas greater threat of the H-bomb. HON. A. FERNOS-ISERN been sought and adequately considered in However, the situation is not as black as RESIDENT COMMISSIONER FROM PUERTO RICO the selection of the site. it looks. For purely economic reasons, The departments and agencies of the Fed­ United States industry has been doing a great IN THE HOUSE OF REPRESENTATIVES eral Government will not move forward with deal of dispersing on its own. In the past Tuesday, July 19, 1955 the construction of new buildings unless the year alone, the c}lance to save on shipping ~ ... proposed location conforms to the advice costs to the booming west coast market ' . Mr. !ERNOS-~~N. Mr. Speaker, given by the Federal Government to critical caused more than 35 national firms in tlie m takmg. up mm1mum wage amend­ target areas and industrial concerns. East and Midwest, e. g., Elgin, Borg-Warner, ments to the Fair Labor Standards Act, to set up branches in the southern California the House Committee on Education and NATIONAL AssOCIATION, area. The need for sufficient labor at rea- Labor wisely declined to go into the mat­ OF MANUFACTURERS, sonable wages has forced many other cor- ter of minimum wages in Puerto Rico. New York, N. Y., July 13, 1955. porations out of heavily industrialized re- The committee undoubtedly felt that Hon. ALEXANDER WILEY, glans into rural areas. Cleveland's Clevite the considerations involved were com:. Corp. (bearings and bushings), which has plex and that the effects would be far- Committee on Foreign Relations, decentralized into 11 plants in the past 10 . . . United States Senate, ·years insisted that "with smaller plants • • • reaching and cr~t1Cal to the future Washington, D. C. we a~hieve greater efficiency." overall since development of the islan~·s economy, DEAR SENATOR: We have read with great interest the very constructive address which 1940 the proportion of United states industry with particular reference to the vital in­ you gave before the Wisconsin State College concentrated in cities of 100,000 or more has dustrialization program. It was indi­ at Whitewater on June 29. We were indeed declined from about one-half to .one-third. cated that before making any recom- interested to note your comments on page 4 Industry has also gone to work in other mendations concerning minimum wages with respect to the business communities• ways. Twenty-four industry task forces in Puerto Rico, it would first conduct a interest in industrial dispersal-particularly have been formed, and the rubber, chemical, careful study of all important factors in­ the views of the NAM and the United States and iron and steel industries have each pro- volved. Chamber of Commerce. duced thick, detailed manuals on what to do . , . . . Our association has long been interested if bombs drop. Typical topics: how to set The c.om~tee s actiO~ m thiS respect 1n the problem of plant location and dis­ up management succession lists in case the was entirely In accord With popular and persal. However, it has recognized the many top echelon 1s wiped out; the collecting and official sentiment in Puerto Rico. I manifold problems incident thereto. Our storing of vital records in a safe place; ar- think the Education and Labor Commit­ various committees are concerned with. the ranging for alternate officers to sign emer- tee is to be commended for its wise and related problems of water supply, proximity gency payrolls. . . , ' realistic approach to the problem. of markets, transportation costs and, attend­ Some companies went to ;y;ork on theh- on July 11, 1955, the Secretary ·of ant to the latter, certain phases of the anti­ own. Koppers :picked a reorganizatiop. Labor responded to a series of 10 ques­ trust laws, availablllty of iabor and oth~r point" outsid~ ~ttsburgh, stocked· _nearby tions which I submitted to him with problems which must confront management bank vaults with microfilms of vital com- . . . , . in deciding where to locate or relocat~ their pany records, and instructed key personnel ~egard to c'?ns1deratwns affe~tmg wag~ planm. to head for this emergency shelter at the m Puerto Rico. Under unammous leave Questions of this nature have long been first sign of attack. Standard on (New to extend my remarks in the CONGRES­ of interest to our association and its mem- Jersey) set up an alternate office 60 to 75 SIONAL RECORD, I include the Secretary's 11000 CONGRESSIONAL· RECORD - ·HOUSE memorandum for the "information ·of all of the economic ednditions in a particular· of the remaining industries covered ·by the Members of Congress who might have industry. act. The budget approved by both the Senate 8. Does the Department favor an immedi­ interest in this question: and the House provides funds for 3 com­ ate, indiscriminate, across-the-board increase DEPARTMENT OF LABOR REPLY TO QUESTIONS mittees for the 1956 fiscal year but a supple­ in Puerto Rico, by percent or quantity,.as a RAISED BY THE HoNORABLE A. FERN6s-ISERN, mental submission of the President requests result of the mainland increases in· the legal RESIDENT COMMISSIONER, COMMONWEALTH an increase to 6 committees which we esti­ minimum, or would the Department r.ecom-· OF PUERTO RICO mate is required for a review of each wage mend that whatever increases may be called 1. Have all wage orders for the various in­ order every 2 years. for in Puerto Rico should be determined by dustries in Puerto Rico covered by the Fair 5. What industries which operate in the the committee system as has been the case Labor Standards Act been revised since the mainland and in Puerto Rico will have actual since 1949? . mainland legal minimum wage was in­ increases in wages in the mainland as direct The Department recommended a fiexible creased from 40 cents to 75 cents in 1949? result of a 1956 increase in the legal mini­ approach, as was noted in the departmental Wage orders for all Puerto Rican industries mum wage? In case there are any, will the letter of May 18, 1955, to Senator DoUGLAS have been revised upward at least once since increase in the mainland be uniform? Please which is contained in the transcript of the the mainland legal minimum wage was in­ give actual increases industry by industry. Senate subcommittee hearings at page 1251. creased from 40 cents to 75 cents in January The data presented by the Department to Industries in Puerto Rico have extremely 1950. the House and Senate subcommittees show wide variations in production costs and other 2. Has any determination for wages in any an extremely wide variation in the impact of competitive factors. These require the flex­ industry in PUerto Rico been revised since the proposed minimum wage increase on ible system afforded by the industry com­ 1949 more than once? How many times? mainland industries, both with respect to mittee procedure whereby adjustments in Fifte!'ln indu~tri~s, cqnstituting the vast those which have PUerto Rican counterparts minimum rates may be made in conformance bulk of all employment subject to the Fair and those which do not. In many mainland with the abilities of the individual indus­ Labor Standards Act in PUerto Rico, have industries there would be no direct impact tries to adjust without severe dislocation or had their wage orders revised upward more whatever, or at most a very negligible one. cessation of their operations. In some very than once since the 75-cent rate went into The primary metal industries, the transpor­ important industries, such as the hand-sewn effect on the mainland in January 1950. tation equipment industries, the machine needlework products, competition is not with Fourteen were revised twice: One, the metal, 1ndustries and most of the fabricated metal the mainland but with foreign countries like_ machinery, transportation equipment and · products industries are outstanding examples the Philippines and Japan. Hence.a manda­ allied industries, has been revised three among this group. Thus while an increase tory percentage or specified cents-per-hour times. Among these industries are those in the minimum wage would have no real ef­ increase, based presumably upon the theory having the greatest competitive relationship fect on members of such industries in the of equalizing competitive relationships with with industries in the States. These 15 in­ States, a direct percentage or cents-per-hour the mainland, would bear no relation to the dustries are: Banking, insurance, and increase on similar Puerto Rican flrins would ability of the industry to adjust. finance; button, buckle, and jewelry; cement; result in a heavy impact. E'ven in those industries which do compete corsets, brassieres, and allied garments; Among the mainland industries which with the mainland industries, extent of com­ hosiery; leather, leather goods and related would be affected by an increase in the legal petition varies markedly and cannot be meas­ products; men's and · boys• clothing and minimum rate, the impact both in terms of ured by any system of direct mandatory in­ related products; metal, machinery, trans­ the number of employees directly affected creaS€s. The only method that appears to portation equipment, and allied industries; and the direct wage bill increase would offer a satisfactory way of making practical needlework and fabricated textile products fluctuate widely. · In work clothing, for minimum-wage adjustments in these indus­ (16 of 19 divisions); paper, paper products, example, 51 percent of the production work­ tries is through the present committee sys­ printing, publishing, and related industries; ers would be affected by a 90-cent statutory tem pursued with vigor. The law already plastic products; rubber, straw, hair, andre­ minimum, with a resultant direct wage bill requires minimum rates for Puerto Rican in­ lated products; shoe manufacturing and increase of 5 percent. In synthetic tex­ dustries that are both (a) high enough to allied industries; sugar manufacturing; tex­ tiles, on the other hand, only 2 percent of prevent any competitive advantage to Puerto tile and textile products. the production workers would require in­ Rican over mainland industry .and (b) as 3. Have all wage revisions since 1949 re­ creases with a labor bill increase of less than high in relation to the mainland rate as pos­ sulted in raises, or have there been cases one-half of 1 percent. In contrast with this sible without substantially curtailing em­ where it has been found that no increase was ,. varying impact on 'mainland industries, a ployment in the Puerto Rican industry. possible? direct percentage or cents-per-hour increase 9. What would be the effect in Puerto Rico As indicated previously, minimum wage for Puerto Rican industries would result in of a un~form raise to all indu'strtes percent­ rates for all industries in puerto Rico have a uniformly heavy impact industry by in­ agewise or by a fixed amount? Would all in­ been increased at least once since 1949. dustry. . dustries in PUerto Rico be equally able to There have been instances however, in 6. W111 the Department be in a position to stand this increase. which the· rec·ommendations of an industry• revise wages in Puerto Rico in all indus­ An immediate increase in island wages by committee for a particular indllstry or in­ .. ti:ies which compete with those affected in a fixed percentage. or absolute amount for all dustry division have been rejected by the the mainland within the next year? industries which is out of proportion to the administrator of the wage and hour division current rate structure would seem likely to as not being adequately substantiated by the The Department is prepared to schedule reconsideration by industry committees of cause a substantial curtailment of employ­ evidence placed before him. In each of these ment pn the island. Experience shortly afte;r instances the industry or industry division all wage-order rates for industries which compete with industries on the mainland in the passage of the original act in 1938 which was subsequently referred to a new commit­ led to the adoption by Congress of the present tee and in every instance in which action order to achieve an ·appropriate adjustment in these rates at the same time, or soop. system of minimum-wage fixing for Puerto has been completed, some increase in the Rico reinforces this conclusion. Of course, preexisting rates was approved by the thereafter, as any increase in the legal mini­ mum wage applicable to the mainland. the effect would not be the same on all in­ administrator. Pursant to a Department recommendation, dustries. The imp'act of a fixed increase 4. Why have not revisions been more fre­ the Senate has adopted a modification of the would seem to be particularly great on the quent and how frequent should they be? wage-order proceedings in order that final Puerto Rican industries which compete pri­ The frequency of revisions has been orders may be issued more promptly after marily with low-wage foreign areas, produc­ limited by the budget allowed for the in­ receipt of committee recommendations than ing handmade products such as hand-sewn dustry committee program in PUerto Rico. ' is possible under the present act. · needlework products. During the last 2 years, for example, it has 7. Has the Department taken steps to cope A uniform increase in the wage rates for all been possible to convene only 1 industry industries may also affect seriously many of committee each year because of budgetary with the situation that may evolve in Puerto Rico from an increase in the legal minimum the Puerto Rican in~ustries for which wage­ limitations. Although several industries in the mainland? order rates have already been adjusted to have been assigned to each committee, it reflect actual minimum rates in the main­ has not been possible to review the wage In line with the appropriation approved by land higher than the present legal minimum orders with the frequency needed. both Houses of Congress, the Department is rate of 75 cents. This is the situation, for As a general rule, wage orders should be planning for three Puerto Rican committees example; · in the metal and machinery in­ revised on an average of once every 2 years. during the fiscal year beginning this month. dustries .for which minimum rates of 65 and This is the frequency which was recom­ If the supplemental appropriation requested 75 ,cents an hour became effective on June mended by a subcommittee of the. House by the President is approved by the Congress, 27,-1955. Labor Committee which made a first-hand tl;le Department will be ready-for a program Even wh~re the wage paying ap-ility of the study of this problem in 1950. A. certain of six committees during this fiscal. year. Puerto Rican industry wou~d be improved by fiexibillty ~s necessary, however! Newly Six committees will be ·able to -review all an incre~se in the _ l~g_al minimum on the emerging factors may in some industries re­ wage-order rates for the industries which mainland, there is no fixed relatlonspip be­ quire a review after a much shorter period compete with the mainland and also the tween the wage rates on the mainland and of time to keep the minimum rates abreast rates applicable for a substantial segment in Puerto Rico. Moreover, some industries 1955 CONGRESSIONAL RECORD- HOPSE 11001 on the island have received recent increases the protection that he would not enjoy, the Russian il"epresentatives to permit the in minimum-wage rates, whereas other in­ but which he is entitled to, under con­ Polish people to regain their free self-govern­ dustries have not received increases for pe­ ditions which preclude an open market. ment, while reminding them that the United riods up to 5 years. States w111 never abandon either the Poles 10. In case some industries in Puerto Rico or any other nation suffering unjust subju­ were so affected by a uniform increase as to gation by a despotic power. have to discontinue operations, what chances May God bless you and be ever with you are there that the other industries or newly The President Is Requesteci To Demand in your heavy responsibility. established industries would rapidly absorb Very sincerely yours, the unemployed resulting from the closing Polish Freedom During the Meeting at HAROLD D. DONOHUE, down of affected industries? Member of Congress. Historically, Puerto Rico has suffered from the Summit both unemployment and underemployment. While the situation has improved in recent years, lack of opportunities for employment is EXTENSION OF REMARKS stm a serious problem for a large part of the OF Still Another Reason for Not Building the work force. In such a situation, lt is ex­ Upper Colorado River Project tremely doubtful that workers from closed HON. HAROLD D. DONOHUE plants would readily be absorbed by other OF MASSACHUSETTS plants. EXTENSION OF REMARKS IN THE HOUSE OF REPRESENTATIVES OF Tuesday, July 19, 1955 HON. CARL HINSHAW Who's Worrying About the Consumer? Mr. DONOHUE. Mr. Speaker, I have OF CALIFORNIA been requested to include copy of the IN THE HOUSE OF REPRESENTATIVES letter I addressed to the President, under EXTENSION OF REMARKS Tuesday, July 19, 1955 OF date of July 13, 1955, urging him to de­ mand, at the summit meeting, a Soviet Mr. HINSHAW. Mr. Speaker, the ap­ HON. LOUIS C. RABAUT guaranty of Polish liberation as evidence propriation authorization is misleading. OF MICWGAN of the sincerity of the Russians to co­ Section 12 of the bill reported by the operate for world peace. President committee contains an appropriation IN THE HOUSE OF REPRESENTATIVES Eisenhower replied under date of July authorization of "such sums as may be Tuesday, July 19, 1955 14 and wrote in part: required to carry out the purposes of this I assure you that the matter wlll have our act but not to exceed $760 million." This Mr. RABAUT. Mr. Speaker, it seems earnest consideration. implies that such sum is sufilcient to to me that somewhere along the line we construct the projects authorized by the have somehow lost sight of John Q. Con­ My letter of July 13 to the President follows: act. In fact, according to the Reclama­ sumer, the person who pays the bill de­ tion Bureau figures contained in the spite what type of compromise is made CONGRESS OF THE UNITED STATES HOUSE OF REPRESENTATIVES, hearings, an additional $173,468,300 here legislatively. would be required to construct the au­ Much has been said about the plight Washington, D. c., July 13, 1955. The Honorable DWIGHT D. EISENHOWER, thorize features, bringing the total sum of the oil and gas producer. The tre­ to $933,468,000. mendous amount of money he must in­ The President of the United States, The White House, In view of the notoriously inadequate vest in order to realize a productive Washington, D. C. estimates made in the past by the Bu­ source of this fuel commodity which is MY DEAR MR. PRESIDENT: As you prepare reau, it is a very good possibility that now the major source of cooking and tor the coming meeting at Geneva, I am sure ultimate costs for these features alone heating means of some 25 million con­ you must be inspired from the knowledge will be well over $1 billion. sumers. The arguments of those who that the prayers and the trust and the hopes In any event, it should be thoroughly testified before the committee, if taken of all the American people are going with understood that the figure used in the as a whole, are contradictory to say the you on your most difficult mission. bill will not, according to Bureau esti­ least. Some say that a healty state of I am equally certain that, while your heart is hopeful, you are most keenly aware that mates, construct this project. Instead competition exists in the industry and unless some understanding of the basic of $760 million, the actual figure is $933 that Federal control at the wellhead problems currently generating atomic war million, or, if a lower Curecanti should would jeopardize this competitive situa­ tensions and preventing full peaceful agree­ be constructed-either is authorized by tion by driving the small producers out ment is arrived at, the conference may ac­ the bill-the cost would be $894 million. of business. While others contend that complish little other than another manifes­ Here are the figures taken from those only a mere handfull of the large gas and tation of the good will and intentions of the United States. supplied by the Bureau at pages 64-67 oil companies market 90 percent of all of the hearings. The projects here ac­ the gas that was used in 1953. Possibly In that concept, therefore, may I most respectfully but earnestly urge upon you the counted for are only those named as the entire question does hinge about the advisability of including a request at the authorized in section 1 of the bill: fact of competition. Does it or does it Conference for the Kremlin leaders to reveal 11 participating projects ______$304, 356, 300 not exist at the producing end? If it plans for the liberation of the enslaved peo­ Glen Canyon Dam______421, 270, 000 does not, then we have a situation where ples of Poland whose tragic fate is an ever­ Flaming Gorge______82,942,000 a few companies are free to exploit a present blot upon the character and honor Navaho (dam and reservoir captive market. And if that is the case of this country and the United Nations. only)------36,400,000 I am sure that I need not remind my able If such a request is refused, it most cer­ Curecanti (940,000 acre-feet)- 49,305,000 colleagues that this would not only vio­ tainly would have to be interpreted as clear . late the intent and spirit of the Natural evidence of the continuing insincerity of Total------894,273,300 the new Russian technique of apparent Curecanti (modified plan)---- 88, 500,000 Gas Act of 1936. peace seeking while still adamantly adher­ I do not believe in unduly controlling ing to their historically recorded objective Total------933,468,300 the activities of any form of economic of eventual world enslavement. enterprise where the ultimate consumer I am sure you :wni agree that the grant- . Actually, the project development is not being victimized because of his 1ng of freedom to the brave and heroic Chris­ sought to be authorized by the bill is total dependence upon that industry. tian people of Poland is basic to any honest just the starter for some 34 or more This is not a question of manacling the negotiations of the United States with the storage and reclamation projects specifi­ producer; but, instead, protecting the Russian Government, and such concession cally named, contemplated, and desig­ by the Kremlin is essential to the accom­ hapless consumer who's interest we plishment of peace in the world today. nated in House Document No. 364 as the should have primarily at heart. I realize full well that your own heart and upper Colorado River storage project, I feel that the question of competition efforts are devoted to the promotion of free­ involving a construction cost of $1.6 bil­ and reasonable price should be thor­ dom for Poland and all the other subjugated lion at least, or over twice the amount oughly investigated by this body with a nations, and I am confident you will do an of the appropriation set forth in the view to affording the captive consumer that you can at this Conference to persuade House bill. The figure of $760 million 11002 CONGRESSIONAL RECORD- HOUSE July 19, 1955 in the House bin is an attempt to hide At the House hearings, a 'Bureau wit­ in view of possible changes in economic from Congress the true cost of the ness, E. 0. Larson, stated~page 215, conditions, obsolescence, and competing development. House hearings on H. P . 3383: sources of power, including atomic With 11 participating proj€cts paid out energy. concurrently, you could do that and pay off power in less than 100 years. But one dis­ Another Reason for Not Building the adva.ntage of that plan is that you cannot take on more than the 11 projects without Letter From President Eisenhower Upper Colorado River Project raising the power rate, if additional projects are developed while the power is taking EXTENSION OF REMARKS EXTENSION OF REMARKS 100 years to pay out, the higher you have to OF raise the power rates. OF HON. GLENARD P. LIPSCOMB Studies indicl:l,te that the minimum HON. EDITH NOURSE ROGERS OF CALIFORNIA number of projects specified for author­ OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES ization in the House bill might pay out IN THE HOUSE OF REPRESENTATIVES under the repayment provisions of the Tuesday, July 19, 1.955 bill, and that it would take 90 to 95 Tuesday, July 19, 1955 Mr. LIPSCOMB. Mr. Speaker, the years to repay the power investment with Mrs. ROGERS of Massachusetts. Mr. project repayment provisions of the up­ power sold at 6 mills per kilowatt-hour. Speaker, on Thursday last I addressed per Colorado River project are unrealis­ But with additional projects added, a letter to President Eisenhower wishing tic and economically indefensible. The either storage units or irrigation proj­ him Godspeed on his mission to Europe. proposed Tepayment plan for the project ects, either the power rate would have to In response I have a letter from the would be to pay off the entire irrigation be materially increased to get within the President which is as follows: investment in 50 years by applying all 100-year payment period for power, or THE WHITE HOUSE, power and irrigation revenues toward the period of repayment would be far washington, July 15, 1955. that end. Thereafter, the huge power greater than 10(' years. The Honorable EDITH NOURSE ROGERS, investment would be paid oti in not to House of Representatives, exceed 100 years. The $1.6 billion overall project would Washington, D. C. The record reveals that such a plan have no possibility of payout with 6-mill DEAR MRS. ROGERS: I am deeply touched might work in the case of a development power under the repayment provisions of by your kind letter of July 14, and shall comprising the Glen Canyon and Echo the House bill. In fact, it could never carry in my mlnd its message as I leave this pay out under such a financial program. evening for Geneva. Thank you very much Park storage units and the 11 participat­ for taking the time to convey this message to ing reclamation projects recommended Moreover, to predicate a repayment me. by the Secretary of the Interior, but plan on continuing revenues from hydro­ With best personal wishes, would fail with additional projects electric power development for 100 years Sincerely, added. in the future is unreali~tic and unsound, DWIGHT D. EISENHOWER.