April 2, 1974 EXTENSIONS OF REMARKS 9411

By Mr. RANGEL (for himself, Miss Mr. KocH, Mr. HARRINGTON, Mr. MET­ Idaho, relative to interference with laws o! JORDAN, Mr. ROYBAL, and Mrs. CALFE, Ms. ABZUG, Mr. BURKE of nature governing the effiiciency of engines CHISHOLM); Massachusetts, Mrs. BURKE of Cali­ of science; to the Committee on Science H. Res. 1023. Resolution creating a select fornia, and Mr. SToKEs) : and Astronautics. committee to conduct an investigation and H. Res. 1024. Resolution creating a select study of the health effects of the current committee to conduct an investigation and energy crisis on the poor; to the Committee study of the health effects of the current en­ on Rules. ergy crisis on the poor; to the Committee on PETITIONS, ETC. By Mr. RANGEL (for himself, Mr. Rules. Under clause 1 of rule xxn, MOAKLEY, Mr. MITCHELL of Mary­ land, Mr. LEHMAN, Mr. PEPPER, Mr. 417. Mr. BINGHAM presented a petition DELLUMS, Mr. BADILLO, Mr. MAZZOLI, MEMORIALS of the Legislature of Rockland County, N.Y., Mr. WON PAT, Mr. HELSTOSKI, Mr. concerning eligibility of naturalized citizens CLAY, Mr. CoNYERS, Mr. HAWKINs, Under clause 4 of rule XXII, for the Presidency of the United States; Mr. YOUNG of Georgia, Mr. FAUN­ 411. Mr. HANSEN of Idaho presented a which was referred to the Committee on the TROY, Mr. DIGGS, Mr. QUIE, Mr. NIX, memorial of the Legislature of the State of Judiciary.

EXTENSIONS OF REMARKS A DISCUSSION OF THE ADMINIS­ to see that funds are expended in accord­ Training Act and under the Rural Develop­ TRATION'S PROPOSED ECONOMIC ance with them. ment Act. It would also permit coordination This decentralization of decision-making with the programs proposed by the Adminis­ ADJUSTMENT ACT responsibllities is accomplished through the tration in the Better Communities and Re­ automatic allocation to States of a minimum sponsive Governments bllls. of 80 percent of the funds available under State and community planning for eco­ HON. HOWARD H. BAKER, JR. the proposed act. The division of these funds nomic adjustment can also be accom.plished on a more rational basis because funds are OF TENNESSEE among States is based on a formula that rec­ ognizes State and community needs, taking appropriated a year in advance of actual IN THE SENATE OF THE UNITED STATES into account population dispersal, land area, allocation to the States. Thus, the problems Tuesday, April 2, 1974 and unemployment and income levels. The inherent in developing plans in a vacuum, remaining funds are allocated to States on a with little or no information as to the re­ Mr. BAKER. Mr. President, one of the discretionary basis to meet special needs aris­ sources that w111 be available !or implement­ important legislative matters before the ing from State, regional, or local problems, or ing those plans, are eliminated. Committee on Public Works this year is from Federal actions such as the closing of AUTHORIZING A BROAD RANGE OF ASSISTANCE the Administration's proposal for a new large installations. Under the proposed act, States have a economic adjustment assistance pro­ In recognition of the importance of basing broad range of tools at their disposal, and funding decisions on priorities developed these tools may be used for a variety of pur­ gram. through a problem identification and analy­ Our Subcommittee on Economic De­ poses. States may offer assistance through sis process, the proposed act requires that grants, loans, subsidies, loan guarantees, tax velopment, under the able leadership of each State develop an economic adjustment rebates or other forms of aid to public enti­ Senators MONTOYA and McCLURE, has plan. The plan, which is to be submitted by ties, private profit and non-profit organiza­ scheduled a hearing on S. 3041 which the Governor, is to specify the target areas tions, and individuals. This assistance can was introduced with bipartisan support selected for economic adjustment ,assistance be used to support not only the kinds of proj­ earlier this year. and the general objectives for each area. To ects and activities that are currently funded William W. Blunt, Jr., Assistant insure that the knowledge and insights of by EDA, but other appropriate economic ad­ those working at community, county and justment efforts as well. Among the types of Secretary of Commerce for Economic multi-county levels are reflected in these Development, recently outlined the ad­ State aid specifically authorized by the pro­ plans, the proposed act requires that local posed act are assistance for public facilities, ministration's proposal in a speech be­ government and multijurisdictional entities public services, business development efforts, fore the National Governors Conference. assist in its preparation. planning, technical assistance, and adminis­ Because I believe it will be helpful for Thhl emphasis on the planning process is trative costs. strengthened by linking the preparation of my colleagues to read and understand STRENGTHENING REGIONAL PLANNING AND the administration's position on this is­ State plans to the actual obligation of allo­ cated funds. The proposed act requires that COORDINATION sue, I ask unanimous consent that a copy State economic adjustment plans be approved The proposed act also authorizes interstate of Secretary Blunt's speech be printed by the appropriate Federal Regional Admin­ compacts to permit States to work together in the Extensions of Remarks. istrator before the funds allocated to a State on common economic adjustment effor~. There being no objection, the speech are made available to that State. These Fed­ States participating in these multi-State or­ was ordered to be printed in the RECORD, eral Regional Administrators, whose func­ ganizations may use funds allocated under as follows: tions will be outlined later, are responsible the proposed act for joint adjustment effort expenses. If regional organizations are DISCUSSION BY WILLIAM W. BLUNT, JR. for reviewing State plans and approving them if they are consistent with the proposed act formed, they may require member States to MARCH 6, 1974. and any regulations issued by the President. submit their plans to them for review or The proposed Economic Adjustment As­ There is, however, an exception 'tO this approval. Such participation by multi-state sistance Act is designed to improve the rule. Allocated funds may be released to a organizations should assure that State plans abilities of States and communities to adjust State prior to approval of a State plan for reflect regional adjustment needs: to future economic changes and to imple­ use in preparing that plan. Thus, States are DECENTRALIZING FEDERAL ADMINISTRATION ment longra.nge solutions to problems in entitled to use part of their allocations under currently distressed areas. It is structured The principal Federal authority and re­ the act for financing the preparation o! their sponsibllity under the proposed act is given to provide State and local ofilcials with economic adjustment plans. greater flexibility in spending Federal funds to ten Federal Regional Administrators, one Since funds are given to a State as a block for each Standard Federal Region. These to assist distressed areas, in the expectation grant, a State has complete direction as to that such an approach will be more suc­ Federal Regional Administrators are ap­ how they are used, as long as they are con­ pointed by the President and are respon­ cessful in reducing unemployment and rais­ sistent with the general purposes of the act. ing income levels in these areas. sible for reviewing State plans, obligating As a result, States have the abllity to fund a funds to the States, and evaluating per­ DECENTRALIZING DECISIONMAKING liimted number of areas, or even one area, formance by the States in using the funds. RESPONSIBILITIES thereby providing each area with sufil.cient The Administrators have no authority to A pr1mary goal of the proposed act is to resources to resolve its economic problems. make project-by-project allocations of Fed­ return to States and communities the prin­ Furthermore, States may use funds in areas eral assistance as the Economic Develop­ cipal responsib111ty for deciding how to use before economic distress becomes acute. ment Administration does under the Public Federal assistance to achieve program ob­ The block grant approach maximizes State Works and Economic Development Act of jectives. Since State and locl'l.l ofilcials are and local responsibility for planning and 1965. closest to the problems, they are in the best carrying out economic adjustment efforts. It The Federal Regional Administrators are position to analyze area needs and set priori­ permits States, and areas within States, to required by the proposed act to work with ties for addressing them. The proposed pro­ develop and implement their economic ad­ other Federal agencies whose programs af­ gram not only places these responsibllities justment plans in conjunction with related fect area economies, and are permitted to at State and local levels, but also insures programs, such as those under the recently participate in the activities of Federal Re­ that those who set priorities have the power enacted Comprehensive Employment and gional Councils to promote interagency co- 9412 EXTENSIONS OF REMARKS April 2, 1974 operation. It is anticipated that the Presi­ these newspaper a:&:ticles to my col­ and born of an ethnic group, a group of alien dent will delegate to the Secretary of Com­ leagues. Japanese farmers," Yuge writes. merce responsibllity for the central Federal The articles follow: MEMBERSHIP GROWTH administrative and policy functions out­ A GOLDEN YEAR FOR CORTEZ GROWERS By law, however, aliens were prohibited lined in the act. from leasing, renting, or purchasing farm If there ever was a story of success through EXTENDING EDA FOR TRA.NCITION PERIOD unflagging cooperation in the face of shat­ land but the four worked around the law by Although the proposed Economic Adjust­ tering adversity, it is the story of the Cortez forming individual corporations naming their ment Assistance Act is designed to replace Growers Association. naturalized citizen offspring as chief stock­ the Pu·blic Works and Economic Develop­ It was !'ormed in 1924 from within the holders. ment Act of 1965, it extends EDA for one "In actuality, the original organizers and colony of Japanese immigrants who had set­ membership of the association was for many year in order to provide an orderly transi­ tled after World War I along Cortez Road in tion to the new program. Accordingly, the the Delhi-Ballico area of northwestern Mer­ years composed totally of corporations," ac­ President's budget for fiscal year 1975 in­ ced County. cording to Yuge. cludes $205 million for EDA and the Title V This was no small feat in itself for the four During its first year of operation, the as­ Commissions. The budget also includes an sociation had increased to 11 members. In original founders, whose status as aliens pro­ addition, a packing house was constructed additional $100 million as initial funding hibited landholding and whose unfamiliarity for the economic adjustment program, as at a cost of $757 at the present location on with the English language complicated their Cortez Avenue adjacent to the Santa Fe Rail­ well as $25 million for Indian development, dealings. requested for the Department of the Inte­ Yet they managed, surviving severe depres­ way tracks. rior. This will provide a total of $330 million sions in crop prices and showing amazing REVAMPED FACILITIES for economic development and adjustment resiliency and the flexibility to change their Many additions were made to the original programs in fiscal year 1975, including the crops and produce for the market. structure and have since given away to en· Indian program, an increase of nearly $50 The association was growing strong and tirely different operations with the switch million over the 1974 level. prosperous by the time World War II struck. from one crop to another. Almond hulling In summary, the Economic Adjustment Within months all members of the colony, machinery has replaced fruit and vegetable Assistance Act provides the basis for a sub­ aliens and citizens alike, were evacuated to packing facilities. A peach slab is used for stantial improvement in the ability of States war relocation centers. centralized delivery. And commercial truck and communities to adjust to economic Four years later they returned to their scales stand in place of a dehydrator for changes and prevent unnecessary distress land, revived their association, later opening grapes. and hardship. Its implementation would their membership to Caucasians. The association offers a complete line of represent a significant step toward achiev­ Throughout these trying times the asso­ fertilizers and chemicals to its members at ing the goal of making government more ciation was sustained by the industriousness reduced rates. effective by returning power to State and of its members, the fine quality of the crops It was a leader in bulk handling of al­ local authorities. they produced and the strong spirit of co­ monds. Board meeting minutes note the first operation they developed--a spirit which has bulk deliveries were made in 1953, at least been passed on to the second and third gen­ 15 years ahead of the overall industry. erations of those hardy founders. LABOR HOUSING CORTEZ GROWERS ASSOCIATION As the members celebrate the 50th anni­ In addition, the association was a leader in CELEBRATES 50TH ANNIVERSARY versary of their organization, we salute the bulk harvesting of wine grapes with the Cortez Growers Association and its presi­ switch to gondolas completed in 1954. dent, George Yuge, the son of one of the Cortez Growers was one of the first farm founders. They have helped and are helping organizations to construct housing for farm HON. ROBERT B. (BOB) MATHIAS America to fulfill its promise. OF CALIFORNIA laborers. Yuge notes 'by 1955 the Mexican Bracero progr.am had become a reality. Farm IN THE HOUSE OF REPRESENTATIVES workers were practically non-existent. No CORTEZ GROWERS: A HALF CENTURY OF Tuesday, April 2, 1974 one wanted to work on a farm." The firm SUCCESS built its own labor camp which housed 90 Mr. MATHIAS of California. Mr. (By Harold Geren) workers in 1955 and enlarged it to house 120 Speaker, the Cortez Growers Association, An organization which admittedly had lit­ single men the next year. which is located in Cortez, Merced Coun­ tle going for it in the outset but managed After the Bracero program ended in 1965, ty, Calif., will celebrate its 50th anniver­ to survive the Depression and a world war, following "severe opposition from the pub­ sary on April 19, 1974. This association last night celebrated its 50th anniversary in He," the association ent ered the migrant fam­ ceremonies in the Hotel Covell Fable Room. ily housing program by constructing 50 plas­ was founded in 1924 by four non-English­ The Cortez Growers Association, which re­ tic, accordion-type shelters for migrants. speaking alien Japanese farmers. Since ceived its incorporation papers in 1924 with Fam111es living in the shelters, which have that time, the Cortez Growers Associa­ four non-English speaking members, has since been rebuilt with wood, were free to tion has overcome numerous obstacles, grown to one of the most influential farmer seek agricultural employment anywhere they including the relocation of its members cooperatives in the state. chose. during World War II to the War Reloca­ RETAINS INTENT Hard times hit the organization during tion Center in Amache, Colo., to become From those first four Japanese members, World War II, although it had operated from one of the most influential farm co­ the outset with "very limited working cap- its membership has expanded to 62 today. ital." operatives in California. And more than 200 members and guests were The Cortez Growers Association was in­ present last night to observe the Golden WAR EVACUATION corporated in California as a nonprofit Anniversary. Writes Yuge: "The declaration of war be­ corporation by Mr. N. Morofuji, Mr. S. The association of 50 years ago is not the tween the United States and Japan on Dec. same as today-many different crops are har­ 7, 1941, affected everyone's way of life in Yonejama, Mr. Y. Kuwahara, and Mr. Z. vested-but "the intent and purposes of the the United States. This was especially true Yuge. Because of their language barrier founders are still paramount: To improve in Cortez, an isolated area populated most ly and the volume of their business, they the bargaining position of its members in by alien Japanese and their citizen offspring. found it necessary to band together in securing the best possible price for its prod­ Dec. 7 was a Sunday, but the association order to hire someone to represent them uce, to buy essential items at an advantage­ was operating as usual. It was nearing the and market their crops. ous price, and to provide services which are end of the carrot shipping season, and the necessary for its grower-members," according carrot pack line was operating at full capac­ The purpose of the association, as de­ ity. When the news of the attack on Pearl scribed by George Yuge, who is Presi­ to Board President George Yuge. Yuge, whose father was one of the four Harbor was announced over the radio, it be­ dent of the association and the son of one original members, collected historical data on came a matter of immediate decision whether of the organizers, is : the organization, compiled it in a 25-page to continue with the carrot packing oper­ To improve the bargaining position of its booklet and presented it to members and ation on a business-as-usual basis or to sus­ members in securing the best possible price guests attending the ceremonies last night. pend operations and wait for developments. for its produce, to buy essential items at an BACK IN BUSINESS advantageous price, and to provide serv­ DATE TO REMEMBER ices which are necessary for its grower­ It was on April 18, 1924, that four growers, "Would the American public be so aroused members. representing 190 acres of tree and truck that it would refuse to buy produce grown crops, received official notice of their incor­ by people from Japan? It was decided the An editorial and news article from the poration as a non-profit organization. The packing would continue, and so the 1971 March 24 edition of the Modesto Bee four included N. Morofuji, Y. Kuwahara, S. carrot season was completed." provide some good background material Yoneyama and Z. Yuge. At a membership meeting on Feb. 7, 1942, and an explanation of the success of the "This was the beginning of Cortez Growers it was recommended that all aliens be re­ Cortez Growers Association. I commend Association, a farm cooperative conceived quested to withdraw their membership from April 2, 1974 EXTENSIONS OF REMARKS 9413 the association in favor of a joint custodian There can be no question that things over actions brought by the select commit­ arrangement. move slower when the White House and tee to enforce subpoenas. Following several meetings of association Congress are ruled by opposing parties. The disclosure that the vice president was directors completing arrangements for a Obviously, it takes more time to recon­ the subject of a grand jury investigation for management agent to operate the 1,900 acres violation of criminal statutes triggered ana­ of property, evacuation of all members was cile and compromise opposing policies tional debate over whether a president or vice complete in May, 1942. After spending the and programs, and the resulting public president may be indicted while holding of­ duration of the war at the War Relocation frustration always seems to fall heaviest fice. Vice President Agnew's resignation on Center in Amache, Colo., association mem­ on the Congress. At the same time, the October 10 spared courts a battery of con­ bers returned to Cortez and were officially friction inherent in such a situation can stitutional questions and implemented for back 1n business on Feb. 1, 1946. be a healthy factor in terms of revitaliz­ the first time the use of the Twenty-fifth While the organization is still predomin­ ing a Congress too long dependent on the Amendment, under which the president antly comprised of Japanese ancestry mem­ nominates a successor vice president for con­ executive branch. This has clearly been firmation by a majority vote of both the bers, its ranks were opened to other growers the case over the last few years, and the in the late 40s. In 1949, Hilmar Blaine be­ House and Senate. came the first Caucasian to sit on the board. Congress is once again coming to the fore The president's relationship with Congress Last night's festivities sa.w numerous as an institution. The present Congress deteriorated considerably. Many believe that honors bestowed on past members, officers may well prove to be the most reform­ congressional attempts to regain lost power, and managers. Current President Yuge minded in recent history. In the House such as the enactment of the war powers presented Sam Kuwahara, who served as the we have opened committee deliberations measure, were encouraged and facilitated by organization's first year-round manager to the public and will soon vote on a the watergate developments. It seems clear, (from 1932 until 1947), with a silver, en­ however, that, while the scandals cannot be comprehensive overhaul of our com­ discounted, most of the progress made by graved bowl commemorating his years of mittee system. This Congress has enacted service. Congress on this front was inevitable, as MANAGE, THEN JOIN a war powers bill and is approaching much preparatory work had been accom­ final action on an omnibus budget re­ plished in preceding years and because the Yuge said "our association has the dis­ form, impoundment control bill. And we matter of restoration of congressional au­ tinction of having four past managers now thor! ty came to the fore last year. on its membership rolls which should say are also tackling the difficult problems of :fi­ During its first session the Ninety-third something for the organization." Executive privilege and campaign Congress attempted more-many more-ways Other managers cited were David Zollinger, nance reform. to reform and strengthen itself as an institu­ 1961-70; Don Toyoda, 1951-61 and Ken Miya­ At this point in the RECORD, Mr. tion than nearly any previous Congress. If moto, 1947-51. Speaker, I wish to include an article these efforts are continued throughout the Kuwahara went on to serve .as president in written by Bruce R: Hopkins in the Jan­ second session, this should be remembered as 1963. uary 1974, issue of the American Bar one of the great "reform" Congresses. SMALL BUT SUCCESSFUL Association Journal, entitled "Congres­ Much of what has been undertaken and Past presidents lauded include Nobuhiro sional Reform Advances in the Ninety­ accomplished lies outside the scope of revi­ Kajioka, 1964; Yoshia Asai, 1961-62; Mark sion of congressional procedures and in the Kamlya, 1956-59; Harry Kajioka, 1942-50, third Congress": broader-and generally more significant­ and Yuge who has served 12 terms in the CONGRESSIONAL REFoRM ADVANCES IN THE domain of congressional-executive relation­ office ( 1951-55, 1960, 1965-68 and 1972-74). NINETY-THmD CONGRESS ships. Orten resulting from virtual power Because of the background of many mem­ (By Bruce R. Hopkins) struggles with the president, accomplish­ bers, portions of the program were presented For those who watch Congress and seek ments range the separation of powers spec­ in the Japanese language, with interpreta­ consequence in the ebbs and flows of rela­ trum, affecting executive privilege, the shar­ tions provided for others. tions between the legislative and executive ing of war powers, impoundment of appro­ The current manager is Jerold Bookwalter, branches, 1973 was an incomparable year. priated funds, budget priorities and spending "who hasn't saved enough yet to go into There were to be sure myriad and notable levels, and appropriate exercise of the presi­ farming," according to Yuge. developments in congressional reform during dential veto. Although somewhat overshad­ Even with a membership of 62, the orga­ the first session of the Ninety-third Congress, owed by these more momentous events, Con­ nization might be considered small by some which ended in late December. Yet, of greater gress also has made or is in the process of standards. It is an interesting success story, significance were the events that led to a making notable changes in its internal rules, however, for those four founders who un­ confrontation between the president and the some to implement the changes in executive doubtedly did not realize it would grow into other branches of government and became an relationships and some in more traditional its size of today. extraordinary subject of conversation and "congressional reform" areas: the seniority Cortez is in Merced County, but the asso­ concern during the past year. system, the closed rule, the role of the party ciation is closely tied to Turlock across the Usually the province of constitutional law caucus, coordination and expedition of ap­ county line. And all its produce is grown on tomes, the terms "separation of powers," "ex­ propriations b11ls, and the jurisdiction of leg­ some 3,000 acres within a two-mile radius of ecutive privilege," and "impeachment" be­ islative committees. association facUlties. came household words. The scope of execu­ The House and Senate are changing, not tive power was commonplace discussion, prin­ only in institutional terms of rules and cipally as a result of televised hearings of the structure, but also in the nature of the mem­ Senate Select Committee on Presidential bership. In the Senate the establishment is CONGRESSIONAL REFORM IN THE Campaign Activities, which began last May. shifting away from conservative Southern 93D CONGRESS A constitutional struggle was joined when the Democrats to more liberal Midwesterners and president refused to release tape recordings Northerners of both parties. In the House the of his conversations with aides and various traditional, ever-present resistance to change HON. JOHN B. ANDERSON documents allegedly bearing on the Water­ is declining, largely the result of the retire­ ment or defeat of senior members and an un­ OF ILLINOIS gate affair. The refusal brought subpoenas from the Senate committee and the special usual rate of turnover in membership gen­ IN THE HOUSE OP REPRESENTATIVES Watergate prosecutor, sparking a historic erally. In both the House and Senate nearly Tuesday, April 2, 1974 court test of the separation of powers doc­ one half of the members have served less trine. than six years in Congress. This new compo­ Mr. ANDERSON of ffiinois. Mr. The federal district court ordered the presi­ sition is less resistant to reform proposals. Speaker, the question is often asked of dent to tum the tapes over to the court (360 Another factor having an impact is the me, "What if anything is the Congress F. Supp. 1) and was upheld in a modlfl.ed "public interest" lobby. In the past reform doing to improve its deplorable 21-per­ order from the United States Court of Appeals was an inside job, typically the effort of a cent job performance rating as re:tlected for the District of Columbia Circuit. When a coalition of interested representatives and in a recent Harris poll?" First, in all proposed "compromise" of the issue was re­ senators. Members of Congress remain the jected by the special prosecutor, the presi­ essential ingredient, of course, but they are fairness, I think it should be pointed out more and more being assisted and encouraged that the Congress has never consistently dent fired him, caused the resignation of the attorney general and his deputy, and later by groups such as Common Cause. the enjoyed a very high rating in the public League of Women Voters, the various Nader agreed to release the controversial tapes. Sev­ mind. While our low ratings have often organizations, and the Committee for Con­ been justi:tled, so too we have often been eral days later the White House claimed that gressional Reform, the last a coalition of fifty two of the tapes never existed. national organizations. saddled with bum raps. Congress has re­ The action brought by the Senate select ceived its highest ratings when working Congressional reformers began their push committee for the tapes was dismissed on for the Ninety-third Congress even before in tandem with a President of the same jurisdictional grounds. The Senate reacted the first session began on January 3, 1973. political party, and even then the rat­ by declaring its approval of the subpoena This process was helped by comparable at­ ings may have been unjustified as mo­ activities of the select committee (S. Res. tempts at the outset of and during the tion is confused with progress and good 164) and by passing legislation (S. 2641) to Ninety-second Congress-mod.ifl.cation of the intentions with good legislation. confer jurisdiction on federal district courts seniority system, strengthening of the party CXX-..593-Pa.rt 7 9414 EXTENSIONS OF REMARKS April 2, 1974 caucuses, reallocation of subcommittee chair­ Congress his reasons for assuining this au­ EXECUTIVE CONTINUES TO IMPOUND FUNDS manships, recorded teller votes, and elec­ thority. The report would have to be sub­ One of the gravest constitutional ques­ tronic voting. In December of 1972 hearings Initted by the president to Congress within tions confronting both the Ninety-third Con­ on reform conducted by an ad hoc Senate forty-eight hours of the introduction, stating gress and the courts is executive impound­ committee developed the theme that Con­ the circumstances necessitating the action, ment of appropriated funds. Congress main­ gress must reassert itself as a coequal branch the constitutional and legislative authority tains, and many courts have so held, that of government and to do so must first or at under which the action was taken, the esti­ when it enacts an authorization bill, appro­ least concurrently reform its internal ways mated scope and duration of the host1lities priates funds for the programs, and man­ of functioning. or involvement, and such other information dates the obligation and expenditure of the The Ninety-third Congress, with both as may be requested. Subsequent reporting funds, the president must spend the money houses control1ed by the Democrats, con­ is also required at least every six months. for the purposes for which appropriated, vened in a mood of antagonism toward the The mllltary forces would have to be with­ unless the Anti-deficiency Act applies. How­ Republican president, chiefly because of the drawn if Congress did not give its approval to ever, President Nixon has insisted that he escalation of bombing in Vietnam without the president's unilateral action within sixty has an inherent right under the Constitu­ congressional consultation, the extensive im­ days. Congress could simply declare war or tion to refuse to spend appropriated funds poundments of appropriated funds and the extend the sixty-day period. The president in order to hold down government spending, invoking of executive privilege. would not be bound by the sixty-day require­ for other purposes relating to the economy, The initial congressional reform activity in ment if the hostilities involved an armed or to set priorities for allegedly competing the opening session occurred in the party attack upon the United States. Congress needs. Although the courts have not sus­ caucuses. Senate Republlcans further modi­ could decree an earlier approval or with­ tained these views, the executive branch con­ fied the seniority system by agreeing to allow drawal by passing a concurrent :resolution. tinues to impound funds. Republicans on each committee to select the The resolution states that the president Both houses have passed remedial legisla­ ranking party member, subject to ratification may not derive authority to introduce mili­ tion concerning impoundment control by by the full Senate Republican Conference tary forces abroad from any provision of an Congress. The House version (H.R. 8480) and with both sets of votes a matter of pub­ authorization or appropriation act or from would require the president to notify Con­ lic record. House Democrats decided to con­ ratification of any treaty, unless Congress specifically states that authority is being gress and the comptroller general within duct an automatic vote on all committee ten days whenever he impounds funds. This chairmanships in the caucus at the start of conferred. The resolution further states that it is not intended to alter the constitutional bill would provide a procedure pursuant to each Congress, by secret ballot if requested which either the House or Senate could by one fifth of members present. The House authority of Congress or the president or be construed as granting any authority to the require the president to end the impound­ Democratic Caucus also voted to guarantee ment within sixty days after notification of all Democrats in the House one major com­ president concerning the involvement of military forces he would not have in the the impoundment action. The comptroller mittee assignment. general would analyze each executive im­ On opening day Democrats in the House absence of the resolution. The resolution should greatly contribute poundment message, give his opinion as to rammed through two rules changes that the legality of the action, and inform Con­ grant the majority party more control over to a restoration of balance between the presi­ dent and Congress in war-making authority. gress of any impoundment not reported by the scheduling of House business. Now the the president. The comptroller general would House may vote on four rather than two It was certain that the president would veto the resolution as, in the words of a White be empowered to bring suit against any ex­ days each month on noncontroversial bills ecutive branch official to force compliance under the quicker suspension of the rules House aide, "a matter of principle." The veto came on October 24, 1973, with the president with the anti-impoundment law. procedure. Debate on the measure indicated consid­ The House also may now by majority vote stating that the measure is "both unconsti­ tutional and dangerous to the best interests erable feeling on the part of House members rather than unanimous consent decide to that presidential impoundments are a re­ . begin its sessions earlier than the regular of our nation." In a significant legislative defeat for the president, however, both flection of an inability of Congress to decide opening time of 12:00 noon. among competing priorities, that this forces For the first time in sixteen years there houses overrode the veto four days later, was no battle in the Senate over easing the forcing the resolution into law (Public Law the executive to make spending cuts, and filibuster rule. 93-148). This was the first veto the Ninety­ that the ultimate answer is not impound­ House Democrats voted to open all House third Congress managed to override, having ment control but budget reform. To assuage committee and subcommittee hearings and failed in eight previous attempts. these members, the House bill would impose executive (lbill drafting) sessions to the pub­ A prelude to the war powers bill was the a congressionally mandated spending ceiling lic unless there is a specific public vote to timely and unexpected success Congress had of $267.1 b1llion. Nonetheless, the majority of operate in secrecy. In another significant in passing legislation to deny appropriations House members appear interested in mini­ rules change, House Democrats voted to curb for United States mllitary undertakings in mizing a president's abi11ty to use impound­ the closed rule as used by the Ways and Indochina absent advance congressional con­ ment as an item veto to thwart the collective Means Committee to bar floor amendments sent. The move began in June when the Sen­ judgment and determination of Congress. on tax and other legislation, by permitting ate Foreign Relations Committee added the Yet the imposition of a spending ceiling fifty Democrats to force the party caucus ban to a State Department authorization would run at cross purposes, at least with to consider an amendment. Under this pro­ bill, and the full Senate overwhelmingly respect to fiscal year 1974, with the anti­ cedure, if the caucus approves the amend­ passed the measure and sent it to a House­ impoundment thrust of .the bill. This is be­ ment, the Democratic members of the Rules Senate conference. Earlier a milder version cause the president would be directed to im­ Committee would be directed to allow a vote of the ban attached to a supplemental appro­ pound funds-within certain guidelines-as on it in the House. These rules changes were priations bill was approved by the Senate. necessary to keep federal spending at $267.1 approved by the full House in March. At The latter version was accepted by the House billion. While this impoundment would be the same time the Senate voted only to per­ but vetoed by the president. But both houses congressionally directed, it would grant the mit committees to adopt rules for open passed a similar r:>an as part of a continuing president considerable ability to withhold meetings. appropriations resolution. Keeping the pres­ funds for the purpose of negating congres­ sure on, the Senate added a Cambodia bomb­ sional intent. WAR POWERS RESOLUTION ENACTED ing prohibition to a routine measure to ·ex­ Earlier the Senate passed its version o! If any single activity in Congress illustrates tend the debt ceiling. an impoundment control bill (S. 373). Both the efforts being made to reinstate the sym­ Faced with the prospect of having to veto b1lls have an identical goal: improved con­ metry of powers between the branches en­ this essential legislation to avoid technically gressional scrutiny of and authority over visioned by the Constitution, it is the en­ leaving much of the government without impoundment. The Senate bill, however, actment of the war powers resolution (Pub­ spending authority and in an illegal deficit would require cessation of any impoundment lic Law 93-148) late in 1973. The passage position, President Nixon agreed to a com­ not approved within sixty days by action of of this resolution, climaxing three years of promise. During debate on a revised supple­ both House and Senate, require the comp· work in both houses, reflects the fact that mental appropriations bill (H.R. 9055), the troller general to determine whether an im­ legislation has /become necessary to limit the president sent word to Congress that he poundment is within the scope of the Anti­ power of the president to commit American would accept a cutoff as of August 15, 1973, deficiency Act, and permit Congress to disap­ military forces to combat in foreign lands on bombing in Indochina. This was accepted prove only part of an impoundment. without congressional approval, even though by the House and Senate, and all of the The House and Senate versions were un­ the Constitution expressly grants Congress affected legislation, except the debt ceiling resolved in conference as the first session the power to declare war. In recent years bill from which the ban was deleted, was ended. The final version is stalled in part be­ presidents have assumed this authority modified accordingly. cause some members are concerned that pas­ themselves, nearly ignoring Congress. Thus it was that Congress, despite years of sage of the bill would constitute recognition The war powers resolution requires the frustration with the Vietnam War, helped of greater impoundment authority in the president to consult with Congress in "every substantially to bring our combat activities presidency than they believe exists under the possible instance" before committing Inili­ in Indochina to a halt by exercising its ulti­ scheme of government envisaged by the Con­ tary forces to host111ties overseas. If the mate power: cutting off appropriations. The stitution. In the meantime, Congress seems president introduces combat forces to hos­ bomb halt measure was signed into law by content to await the outcome of the multi­ tilities abroad absent a congressional dec­ the president on July 1, 1973 (Public Law tude of anti-impoundment suits in the laration of war, he must promptly report to 93-50). courts. Congress has facllitated these actions April 2, 1974 EXTENSIONS OF REMARKS 9415 by enacting and extending a joint resolution deputy director of the Office of Management committee on Elections is holding hearings (Public Law 93-52), which grants jurisdic­ and Budget, including approval of the in­ on election campaign reform legislation. tion to federal courts to hear impoundment cumbents in those positions. However, the The House on numerous occasions during suits brought With respect to funds appro­ president vetoed the measure, and the House 1973 broke with its established operating priated for a particular fiscal year after the sustained the veto. procedures with respect to tax legislation. close of the year. In the meantime, however, comparable For the first time since 1929, legislation from CONGRESS REASSERTS POWER OF PURSE legislation was being initiated. The Senate the House Ways and Means Committee (H.R. and House have passed b1lls (S. 37, S. 2045, 3577) was granted an open rule. Ways and One of the most important undertakings H.R. 11137) requiring confirmation of future thus far by the Ninety-third Congress has Means and other committees held several appointees to the O.M.B. posts, as well as of open executive sessions. The House Rules been a resurgence of its effort to regain con­ the executive secretary of the National Se­ trol over the determination of federal pri­ Committee granted a rule to permit a non­ curity Council and the executive director of germane "tax reform" fioor amendment to orities and spending-a rea.ssertion of Con­ the Domestic Council. The Senate passed a gress's power of the purse. Congress began a debt-ceiUng measure (H.R. 11104), al­ btll (S. 590) requiring that future appoint­ though the committee subsequently reversed forfeiting this power years ago when it en­ ments of other executive branch officials be acted the Budget and Accounting Act of 1921. itself. · subject to Senate confirmation. The Senate Three subcommittees of the Senate Com­ Today the result is a presidential budget has also approved legislation making ap­ request that, while inltially conceived as mittee on Government Operations and the pointees to the Cost of Living Council sub­ Judiciary Committee held joint hearings on only a recommndation, has become the budg­ ject to Senate confirmation (S. 421). et in the executive's mind, and a,n omnip­ "executive privilege" legislation (S. 2432, S. The Senate Democratic Caucus approved Con. Res. 30) relating to congressional and otent Office of Management and Budget that a resolution requiring nominated cabinet of­ through its apportionment authority can public access to official government informa­ ficers and other executive branch officials, as tion, and they have begun final preparation effectively thwart congressional mandates. a prerequisite to confirmation, to agree to Congress has been working on a number of of the measures. Hearings have also been appear and testify before Senate committees held on a measure (S. 1923) to require fed­ plans to give it c~ntrol over national spend­ in response to a request and to give a com­ ing. Details of the proposals vary, but essen­ eral agencies to keep congressional commit­ mitment to testify when requested. The Sen­ tees fully and currently informed. tially what is emerging is a scheme whereby ate committees are complying with this pol­ Congress would set revenue and spending The Senate Subcommittee on Separation icy of the majority party. of Powers held oversight hearings on the levels in each session by means of a concur­ The House early in 1973 passed a resolu­ rent resolution drafted by House and Sen­ activities and procedures of executive agen­ tion (H. Res. 132) to establish a Select Com­ cies. The separation of powers subcommit­ ate budget committees. These committees mittee on Committees to study the organi­ would be aided by a congressional Office of tee also has approved a bill (S. 1472) to per­ zation, jurisdiction, and operation of all mit Congress to review and disapprove ex­ the Budget, analogous to the executive's House committees. The hearingt:; and panel O.M.B. Authorization measures would have ecutive agreements (rather than only sessions conducted by the select committee, treaties) between the United States and to be passed by a date certain early into the which were the most significant development year, followed by enactment of a resolution other nations. in the first session of the Ninety-third Con­ The Senate Judiciary Committee and a setting a spending ceiling and by subsequent gress leading toward internal reform of Con­ enactment of appropriations bills later in the subcommittee of the House Judiciary Com­ gress, explored the allocation of committee mittee held hearings on proposed legislation year. The federal fiscal year would be changed responsibilities, staffing needs, and use of to commence on October 1. Both bills con­ to establish an Office of Special Prosecutor computers. independent of the executive branch. The tain varying versions of procedures by which The select committee is expected to propose excessive appropriations would be recon­ House Judiciary Committee has reported ways to eliminate duplicative work by and such a bill (H.R. 11401) to the House. ciled with the spending ceiling, either by ef­ the overlapping of jurisdictions of House fecting cutbacks in spending or passing reve­ committees and to control the creation of CAUSE OF CONGRESSI ONAL REFORM HAS ADVANCED nue raising legislation. subcommittees. The committee also will ad­ The Ninety-third Congress has forthrightly The Senate Committee on Government Op­ vocate mechanisms for intercommittee co­ approached the related subjects of internal erations worked on budget control legislation operation on legislation, such as a joint re­ reform and interbranch relationships along a during most of 1973 and has sent its b111 (S. ferral system, a bill referral appeals process, wide range of fronts. Several of these efforts, 1541) to the Senate. The House Rules Com­ joint hearings, and greater use of ad hoc such as caucus rules changes, the war powers mittee has reported the proposed Budget committees. It is further expected to propose measure, cessation of Indochina war activ­ Control Act (H.R. 7130), the product (along that the House organize itself before the ities, and the broadening of the Senate's with s. 1641) of a joint study committee opening of the first session of a Congress, so power to "advise and consent," culminated on budget control. Other bills-the Congres­ as to make more productive use of the open­ in success in 1973. Other items, such as im­ sional Budgetary Review Reform Act (S. 905) ing weeks, and to suggest reforms in the poundment and budget control legislation, and the Fiscal and Budgetary Reform Act (S. areas of congressional oversight procedures may be enacted before the close of the sec­ 1030)-also have been introduced. Another and the scheduling of business. ond session. The groundwork for further proposal (S. 1214) would require copies of progress is being laid in still other areas. The agencies' budget requests to be forwarded to PROCEEDINGS ARE TELETYPED TO MEMBERS' OFFICES Ninety-third Congress thus far has signif­ Congress when sent to the president. icantly advanced the cause of congressional Critics of these and like measures con­ The House Subcommittee on Legislative reform. Additional reforms lie ahead this tend that the budget committees would be­ Reorganization has proposed House rules year. come conservative and inflexible supercom­ changes w1 th respect to an increase in the mittees dominated by senior members of the membership requirement for recorded teller House and Senate Committees on Appro­ votes, leadership control over the extent of priations, the House Ways and Means Com­ quorum calls, and the handling of nonger­ INCOME TAX RETURN FOR 1973 mittee, and the Senate Finance Committee. mane amendments by House conferees in Others maintain that the scheme would be conference committees. ineffective, that Congress should adopt a The Joint Committee on Congressional Op­ HON. WILLIAM L. HUNGATE multiyear (for example, three-year) budget, erations has established a pilot system for OF MISSOURI and should combine the authorization and immediately reporting congressional proceed­ IN THE HOUSE OF REPRESENTATIVES appropriations processes. ings by teletype to members' offices. This is Quarrels persist over the means, although designed to contribute to the efficient use Tuesday, April 2, 1974 nearly everyone in Congress agrees on the of members' and staffs' time and to provide Mr. HUNGATE. Mr. Speaker, in ac­ end: Congress must regain control over the summaries as valuable planning and refer­ cord with my regular practice since com­ expenditure of federal funds. Congress could ence materials. The joint committee also held I play no greater role on the domestic scene hearings on the subject of the constitutional ing to Congress, again disclose my in­ than to establish procedures for the main­ immunity of members of Congress and is come as shown by my most recent income tenance of its authority over setting priori­ continuing to issue reports summarizing tax return for the year 1973, due and ties by means of the budget and federal pending court actions involving Congress. filed in the year 1974. spending. Prompted by recent disclosures concern­ My joint personal income tax return, LEGISLATION REQUmES CONFmMATION OF ing political campaign gifts, Congress set form 1040, line 9, shows my congressional APPOINTEES about to reform the campaign financing laws. salary of $42,500. Line 11 shows inter­ The Ninety-third Congress has endeavored Chief among the measures under considera­ est income of $836. Line 12 shows other tion are bills providing for public financing mightily to extend the Senate's power to income as $4,990, consisting of an ac­ confirm presidential nominations to a wider of federal elections (S. 1103, S. 1954), which have been the subject of hearings by a sub­ counting for receipts to my nonpolitical range of executive branch omctals. The effort Legislative Service Fund of $4,411, in- began early in 1973 as part of an adverse committee of the Senate Committee on Rules reaction to the impoundment of appropri­ and Administration. Other pending legisla­ come from honoraria, musical composi­ ated funds. The House and Senate passed tion includes the proposed Campaign and tions and recordings of $998, and a rental legislation (S. 518) requiring Senate approval Election Reform Act (S. 1766) and the Cam­ loss of $419, primarily due to fire loss in of appointees to the positions of director and paign Mail Act (S. 1096). The House Sub- July 1973. 9416 EXTENSIONS OF REMARKS April 2, 1974 My total income, as noted on line 13, and I must say I was very surprised when opinion of the legal profession and the was $48,326, less line 14 of $5,429, con­ I read it. organized bar has been insufficiently sisting of adjustment for allowed con­ Your last paragraph stated to "please let represented. you know personally if you feel that the gressional living expenses attending Department is not responding appropriately By way of evidence for that last state­ Congress in Washington, D.C., $3,000, to your inquiries". How does one reach you? ment, I o:ffer a letter, which was origi­ and $2,429 for stationery, travel, and of­ I have been trying since last fall to get an nally sent to Mr. Howard Phillips, then fice operating expenses in excess of re­ appointment with you concerning research Acting Director of OEO, at the time he imbursement, leaving an adjusted gross training grants in pediatric hematology. I had testified before Congress regarding income of $42,897, as shown on line 15. have had correspondence with your Depart­ his plans for the future of OEO. This Form 1040, schedule A, shows total de­ ment since the fall of 1972 concerning this. letter, from Henry L. Pitts, a former Dr. David Nathan, Chief, Division of Hema­ As­ ductions of $11,385 on line 41, consisting tology, Associate Professor of Pediatrics of president of the Dlinois State Bar of State and local taxes of $3,144.82, in­ the Harvard Medical School, has had cor­ sociation, commends Phillips for his ef­ terest paid of $1,101.22, charitable con­ respondence with you dating back more forts, and indicates his desire that law­ tributions of $1,374.50, and allowable than a year. Congressman Tip O'Nelll is to yers for the poor should represent the medical and dental deductions of $150. attend this meeting and his omce has been poor, not ideological causes. I think it is Miscellaneous deductions due to casualty trying to help me get a meeting with you, typical of the sentiment in the heartland loss, dues, and storage were $444.90, non­ tonoavall. regarding legal services, and I would political committee, that is, newsletters, Dr. Nathan is to attend the meeting along urge all my colleagues to listen more with Joe Giusti, Director of The Pennsyl­ closely such voices from the country questionnaires, were $3,156.65. Bulletins, vania State University, whose daughter to district office expenses, printing and re­ Susan has a very serious blood condition. before making any rash decisions on the cording expenses were $1,244.60. Mis­ Your letter said a good place to start is future of Legal Services. cellaneous congressional expenses con­ in your Congressional Liaison Omce--what HACKBERT, ROOKS, PITTS, sisting of constituent entertainment, a farce. I used to think Katrina Schulhof did FULLAGAR AND POUST, newspapers, periodicals, and so forth, a pretty fair job, but she apparently has be­ Chicago, Ill., February 28, 1973. were $768.75. come too important with her job or herself to Mr. HOWARD J. PHILLIPS, The total income tax, Form 1040, line bother returning my calls. Her assistants I Director, Office of Economic Opportunity, find very incapable. In fact, why do you Washington, D.C. 16, is $7,592.18, less a tax credit of $25, have a Liaison Omce at ·all? DEAR MR. PHILLIPS: I have read with inter­ noted on line 17, making the total income Since you have extended yourself to the est an article that appeared in the Chicago tax of $7,567.18, shown on line 18. Line point of putting out a letter stating how Tribune on Monday, February 26, which in­ 19 shows the total self-employment tax to find information in your Department, why cluded an extensive account of the questions of $80, making the total amount due of not start with yourself and have your secre­ and answers growing out of a conference $7,647.18, shown on line 20. The total tary contact me or my Administrative As­ which you had with newsmen concerning net Federal income tax withheld, line 22, sistant, Mrs. Farlow, to set up a meeting? your administration of the Office of Economic was $11,330.40. There was an overpay­ Please don't refer this letter to your Liaison Opportunity. Notwithstanding the obvious omce as I don't want to bother any further tone of the "when did you stop beating your ment per line of $3,683.22, of which a with their lnemciency. wife" questions, I was much impressed with refund of $2,083.22 was requested, leav­ I am also putting this letter in the CoN­ your articulation of what I believe to be a ing the balance of $1,600 overpaid to be GRESSIONAL RECORD of April 2 for you to read. sound approach to the administration of credited on the 1974 estimate. The Mis­ Your letter, although addressed to me, was OEO. souri State income tax paid was $1,137. of such a general nature concerning the I have more than the usual interest that all I do not own any stocks or bonds. Department, I cannot but assume it went to lawyers should share in the legal services In accordance with the Federal Elec­ all Congressmen. I, therefore, felt my Col­ program of the OEO for two reasons. First, I tion Campaign Act of 1971, Public Law leagues would also want to read it. was president of the Illinois State Bar Asso­ Sincerely, ciation during a period when we were trying 92-225, all receipts and expenditures of FRANK M. CLARK, to carry out a program under the aegis of campaign funds are handled by the Member of congress. the OEO with disappointing resUlts which Hungate for Congress Committee, Iden­ brought sharper realization of the economic tification No. 007820, Don Thompson, waste which seemed to me inherent in carry­ treasurer, Troy, Mo., and I have no di­ ing out the views of some of the Washing­ rect control over such funds. That fund ton representatives. Secondly, as a member of FORMER ILLINOIS BAR PRESIDENT the House of Delegates of the American Bar filed its own income tax returns for 1972 CALLS FOR END OF LEGAL AID Association I have been close to the contro­ and 1973 and showed no income and no ABUSE versy between Vice President Agnew and some income tax due. elements of the bar on one aspect of the legal services program. Whlle all of us shoUld HON. SAM STEIGER agree that a lawyer must represent his client OF ARIZONA with complete fidelity I don't think that ls A LETTER TO THE SECRETARY OF IN THE HOUSE OF REPRESENTATIVES the real basis for the controversy. I have HEALTH, EDUCATION, AND WEL­ observed that many of those who parade FARE Tuesday. April 2, 1974 under that banner are actually more inter­ ested in advancing their own social and po­ Mr. STEIGER of Arizona. Mr. Speaker, litical views than they are in serving the about a year ago the administration was individual legal needs of the poor. In short, HON. FRANK M. CLARK trying to close down the largely waste­ OF PENNSYLVANIA I think that lawyers represent clients and not ful Office of Economic Opportunity. This causes. IN THE HOUSE OF REPRESENTATIVES year we are going to be asked to vote on I wish you well in your eft'orts to bring Tuesday, April 2, 1974 legislation to make permanent the most some new direction to this program. objectionable part of that so-called Sincerely, Mr. CLARK. Mr. Speaker, the at­ HENRY L. PITTs. tached letter was sent certified mail antipoverty effort, the Legal Services today to Secretary Caspar Weinberger in program. Mr. President, I am sorely response to a letter I received addressed afraid we are making a rash judgment. However, I recognize that there is still NATIONAL SMALL BUSINESS ASSO­ to me, but was of such a general nature time for a rethinking of the Legal Serv­ concerning the Department, I cannot ices Corporation. I most earnestly hope CIATION PROPOSES PROGRAM OF but assume it went to all Congressmen. that my colleagues give that idea the CATCH-UP GROWTH FOR SMALL I would like this inserted in the CoN­ serious rethinking it requires. BUSINESS GRESSIONAL RECORD of April2, 1974. Few items on our agenda have received The letter follows: the prolonged and heated attention that HON. JOEL. EVINS CONGRESS OF THE UNITED STATES, the Legal Services in its pros and cons OF TENNESSEE HOUSE OF REPRESENTATIVES, has. I am glad of that national debate. I IN THE HOUSE OF REPRESENTATIVES Washington, D.C., April 2, 1974. do not think it has been fully adequate Hon. CASPAR W. WEINBUGER, Tuesday, April 2, 1974 Secretary, Department of Health, Education, yet, however, so I would wish it could and Welfare, Washngton, D.C. continue longer. I believe that the opin­ Mr. EVINS of Tennessee. Mr. Speaker, DEAR MR. SECRETARY: Your letter of ion of the majority of Americans has not as you know, the National Small Busi­ March 28 arrived in my omce this morning, been really heard; I also believe that the •ness Association recently presented its April 2, 1974 EXTENSIONS OF REMARKS 9417 legislative program to the Select Com­ Yet, that right is slowly eroding. The gestion that it be utilized in an effort to mittee on Small Business of the House, application of new technologies to old achieve a more effective unity with the and more than 100 Members and!or their bureaucratic methods has created an in­ North Atlantic States, a unity which administrative assistants attended this formation gathering and retrieval sys­ would represent a massive advance in po­ briefing. tem of staggering dimensions. Tens of litical institutions, is a tribute to the Mr. Speaker, you were most kind to millions of raw, unchecked files on per­ American past, as well as a road to the take the time from your busy schedule to sons having only the most routine deal­ future. appear at the briefing and greet and ings with the Federal Government Despite the differences which have de­ welcome the officials and members of the threaten its very existence. veloped in recent years between the National Small Business Association. The Defense Department, Justice De­ United States and some of our NATO al­ Your expression of keen interest in the partment--including the FBI-Social lies, support for the Atlantic Union is survival of American Small Business is Security Administration, Civil Service broad. For example, several prominent deeply appreciated. Commission, and Internal Revenue Serv­ German leaders, including Dr. Helmut In this connection, I place in the REc­ ice are a few of scores of Government Kohl, chairman of the Christian Demo­ ORD herewith the highlights of the pro­ bureaus and agencies maintaining such cratic Union, Mr. Franz-Joseph Strauss, gram and presentation by Ken Anderson, files. The information contained in them the head of the Christian Socialist Party, president of the National Small Business is sometimes false, often misleading, and and Mr. Walter Scheel, the German For­ Association and president of Artex Inter­ usually based on hearsay. eign Minister, addressed the youth con­ national, Inc., Highland, ill.; carl Beck, Present law does not require an agency ference. They praised the concept of At­ president, Charles Beck Machine Corp., to notify an individual that it is keeping lantic Union, pointing to the challenge King of Prussia, Pa.; Milton Stewart, a file on him. Nor does it allow a person to freedom presented by the Warsaw president, Clarion Capital Corp., New to inspect his file or to add supplemen­ Pact as evidence of the need for closer York, N.Y.; and Thomas Rothwell, part­ tary material. The result is that, among Atlantic cooperation. ner, Rothwell, Cappello & Bemdtson, other things, an individual may be un­ I would also like to note the declara­ Washington, D.C. justly denied a job, full veteran's bene­ tion by the British Atlantic Youth. The highlights of their recommenda­ fits, a Federal loan, or a Government Speaking eloquently as representatives tions follow : contract. of tpe main political parties and of none First. The adoption, enactment, and For this reason, I have cosponsored they conclude with a call for an eventuai implementation of a 15-year program legislation which would require each political union of the Atlantic peoples. that will double the share of the market Government agency maintaining per­ The texts are as follows: now held in each industry by small and sonal files to: First, notify the individual ADDRESS BY MR. FRANZ-JOSEF STRAUB, CSU medium-size business. that a record exists; second, notify the PARTY LEADER Second. Establishment of a separate, individual of all transfers of such infor­ The political development during the very Cabinet-level department within the ex­ mation; third, disclose information from last few weeks has shown the importance ecutive branch of the Federal Govern­ such records only with the consent of the of a close German-American alliance. I did ment--a Department of Small Business. individual or when required by law; not only agree on that point with my Ameri­ can opposite numbers in Washington last This will insure that the 10 million small­ fourth, maintain a list of all persons in­ month, but I also stressed this during the last and medium-size businesses have proper specting such records; and fifth, permit few days in the German Bundestag as well representation and clout within Govern­ the individual to inspect his records, as in various statements in front of the Ger­ ment to advance its cause and defend its make copies of them, and add supple­ man and European public. The solidarity be­ interests. mentary information. tween Germany, the free Europe and the Third. A two-tier statutory principle This should only be the beginning. United States of America is based on com­ More legislation is needed to restrict the mon philosophical and political ideals, which must be substituted for the "equality of have to prove their worth again and again, treatment" concept so that the smaller use of corporate personal information and for which we have to stand up unitedly. companies will be favorably treated and to regulate the proliferation of com­ The proof of this attitude can only grow throughout the whole range of law. panies whose business it is to maintain from a close philosophical and political con­ Fourth. The writing, by Congress, of such files. tact, from mutual understanding and per­ a "Tax Magna Carta for American Small The need for individual privacy is es­ sonal friendship, and must particularly find Business," which would have three parts: sential to our way of life. Any arbitrary response in our youth, because it is they Enactment of the Evins-Bible small who will govern the world. It is the task of and unreasonable intrusion, no matter all of us to work towards the object that this business tax simplification and reform how minor, cannot and should not be world will be able to live in freedom. To this bill; modification of the capital gains tax tolerated by the American people. For the effect I wish the best of success for the Youth to spur investment in small business; cumulative effect of these minor viola­ for Federal Union Conference in Bad Lieben­ and review of other provisions of the tions is a Government viewed with sus­ zell and for its work. tax code to include either scrapping or picion and a society bereft of individual updating the inequitable fixed-dollar freedom and dignity. ADDRESS BY MR. WALTER SCHEEL, FOREIGN concepts. It would turn the tax code MINISTER OF THE FEDERAL REPUBLIC OF into a hard-driving battering ram GERMANY which will enable small business to re­ The conference of Youth for Federal Union GERMANS CALL FOR GREATER is a welcome occasion for me to send you coup the position which it has lost. my cordial congratulations. With this I Fifth. A progressive transactions tax ATLANTIC COOPERATION connect my acknowlegement of the work you on mergers and acquisitions, all in the achieved. Your activities for Good German­ public interest. American relations wlll also be of great im­ HON. PAUL FINDLEY portance for the future strengthening of the OF ILLINOIS Atlantic Alliance as well as for the cohesion IN THE HOUSE OF REPRESENTATIVES of the partnership. I wish you the best of THE RIGHT TO PRIVACY Tuesday, April 2, 1974 success for the conference. Mr. FINDLEY. Mr. Speaker, a Youth ADDRESS BY DR. HELMUT KoHL, CHAIRMAN OF HON. JAMES C. CORMAN for Federal Union Conference, attended CHRl:Sl'IAN DEMOCRATIC UNION, GERMANY OF CALIFORNIA by a number of young American and Ladies and Gentlemen: You have chosen IN THE HOUSE OF REPRESENTATIVES German political leaders, was held re­ the problem of Atlantic relations to be the cently in Bad Liebenzell, West Germany. core of your conference program and you wlll Tuesday, April 2, 1974 Under discussion were various ways of discuss this subject from several aspects. In Mr. CORMAN. Mr. Speaker, an indi­ promoting Atlantic Union, a concept doing so you stand up for a central theme vidual's right to live his life without ar­ which envisions the bringing together of of our days, at times in which European­ bitrary and unreasonable interference by American relations are not good., let alone the democracies of our Western Euro­ the German-American relationship which 1s the Government is so fundamental as to pean Allies with the United States and not far away from the freezing point. be beyond dispute. It is refiected in the Canada, in a single federal government. This situation confronts us Germans and Bill of Rights and has been judiciously The federal principle is perhaps the Europeans with urgent tasks which we may protected by the Supreme Court in a ser­ supreme American contribution to the not neglect, if we do not want to suffer ies of landmark cases. art of democratic government. The sug- lmm.easu:."a'ble damage. We have to proceed 9418 EXTENSIONS OF REMARKS April 2, 1974 from the realization that only alliance with In the eventual political union of the At­ White House; and he has given every public America guarantees European security. The lantic peoples. indication that his arrogance will similarly idle talk of r:eut~alization of the Federal Recognising that by joining the respective extend to the House Judiciary Committee Republic or Europe, which occurs here and strengths of the Atlantic peoples the whole conducting the impeachment inquiry. there, is thus disposed of anyhow. world is more likely to be ensured of a last­ As President Nixon has succumbed to the However, we can only assure ourselves of ing peace and prosperity. tendency to believe he is entitled to venera­ a durable partnership with the USA, if we, tion and to enshrinement; as he has in­ as Europeans, create the necessary precon­ creasingly manifested conduct exemplifying ditions: integration in all areas in order to his personal conviction that he is "larger be able to act politically as one community. JUDGING THE PRESIDENT than life"-that the President is more im­ Europe's lamentable attitude during the cur­ portant than the presidency-he has brought rent oil and energy crisis makes us drastically about a convincing metamorphosis in my realize the importance of this demand. HON. JEROME R. WALDIE personal attitudes toward this particular oc­ At the same time, however, we have to turn cupant of the office. our minds to the philosophical and socio­ OF CALIFORNIA My awe and reverence have disappeared. political challenge by the communist states IN THE HOUSE OF REPRESENTATIVES I have begun to experience unease and un­ of Eastern Europe. We may not counter this Tuesday, April 2, 1974 certainty at the possibility of the President only materially or r·emain in a position of continuing in office and continuing to be­ preserving only. We must counter it in an Mr. WALDIE. Mr. Speaker, as a mem­ lieve his fate is more important than the fate offensive way-offensive by the further de­ ber of the House Judiciary Committee, of his country. velopment of our social order. European I was asked by Ms. Blake Fimrite, of And so, finally, I find no trepidation, no politics therefore must be pre-eminently Newsday, to describe my position on the fear, no uncertainties, as I approach the re­ freedom-oriented social politics. difficult responsibility of passing judg­ sponsibility of judging the President of the Only an attractive Europe from the socio­ United States. political point of view will contribute to the ment on the President of the United In the final analysis I participate with surmounting of inner-European tensions, States. My comments as published in eagerness. I am fully persuaded that for fu­ will encourage social justice and will thus Newsday follows: ture Presidents to be deserving of the ven­ be able to make a contribution in solidarity JUDGING THE PRESIDENT eration and respect that past Presidents have received, we must judge-and judge clearly­ to social and economic progress in our world. It would be difficult for any person to ap­ Only a unified Western Europe will be able proach the responsibility of passing judg­ those Presidents who tarnish and diminish to assume its due position enjoying equal ment on the President of the United States their office. That responsib1lity is no occa­ rights with its partner America in the frame­ without, at some point, feeling private sion for reluctance or misgivings-it is an work of a newly formed Atlantic Alliance. doubts and experiencing some sense of in­ occasion for determination and resolve. Both demands, however, can on!y be real­ adequacy and, even, apprehension. ized, if all groups within our population, and Even to pass judgment on Richard NiXon particuLarly our youth, are convinced of the as a private person and not as a President importance of a unified Europe. You are presents some difficulty to me. Confronted AIDING SOUTH VIETNAM taking one step in this direction by driving with Richard NiXon only as a private indi­ the concept and commitment for Europe and vidual, I would be deeply involved with a Atlantic partnershlip further home to Ger­ sense of per~onal sympathy for a man whose man and American youth leaders. For this career and fortunes have proven ultimately HON. ROBERT J. HUBER gratitude is due to you. tragic, not only for the country, but for him OF MICHIGAN I wish you the best of success for the and his family. The extent of his personal IN THE HOUSE OF REPRESENTATIVES conference. responsib111ty for his plight only slightly mitigates my sympathy for a human being Tuesday, April 2, 1974 ATLANTIC YOUTH DECLARATION reduced to the pitiful remnants of reputation Mr. HUBER. Mr. Speaker, the House We, the undersigned, young citizens of the that Mr. Nixon now possesses. will be called upon this week to decide United Kingdom representative of the main But it is not as a private person judging political parties and of none, address this another private person that I am asked to whether or not to provide some insur­ Atlantic Declaration to our fellow citizens in confront and judge the performance of Presi­ ance for our large and costly investment the United Kingdom, Europe, and North dent NiXon. It is, instead, as a member of in a non-Communist Vietnam or America, and to the Governments of all the House of Representatives sworn to up­ whether to invite North Vietnam to con­ European and Atlantic countries, in the hold the Constitution and to perform the duct yet another large-scale invasion of hope that the need for Atlantic Unity w111 constitutional responsibilities of my office. that already devastated land. In my not be neglected. Among those responsibilities at this moment opinion, the Richmond Times-Dispatch We believe that the liberties of individuals in history is the solemn, unwelcome duty of of Friday, March 29, 1974, made a case and the territorial integrity of Nations are determining if the President has committed fundamental bastions of free civ111sed impeachable offenses in violation of the Con­ for additional aid very well and I com­ peoples. stitution. mend it to the attention of my col­ That these bastions are preserved in the As a member of Congress judging a Presi­ leagues. The article follows: Atlantic Community. dent, I seek to insulate myself from some of AIDING SOUTH VIETNAM That Unity within the Atlantic Community the doubts, misgivings and uncertainties that Predictably, senators like Edward Ken­ is essential to the preservation and further­ I would possess as an individual not en­ nedy, D-Mass., and George McGovern, D-S.D., ance of these ideals. trusted with this constitutional obligation. who would have abandoned South Vietnam That the forces of international dishar­ It has not been easy to free myself from to the Communist wolves when the going mony present a threat to the peace and free­ all self-doubt and hesitation. Like most was tough for the United States are leading dom of the democratic peoples of the Americans, I was raised with-and have never the fight to throw Saigon to the pack now Atlantic Community. lost--the tinge of awe and veneration we at­ that American troops no Longer have to fight We further believe in social harmony and tach to the office of the presidency. And I in that Asian land. economic justice within States and urge that have generally felt almost equal awe andre­ The Senate "doves" have lined up against due regard be given to policies which bring spect for its occupant. a Pentagon proposal to shift $474 million in .about that harmony. But perhaps too much awe and veneration left-over authorizations to help South Viet­ In the need for greater ties amongst west­ have been granted to those who have oc­ nam meet its defense costs, which have risen ern youth, particularly bearing in mind the cupied the office in recent years, and that because of petroleum price increases and almost universal acceptance of votes at has contributed to the tendency of Presi­ general inflation. Unless Congress permits eighteen. dents to consider themselves more important this boost, it is anticipated that South Viet­ In youth exchanges between western Eu­ than their office. That is why a President can nam will be forced to curtail acutely its mili­ Tope and north America, in the extension confuse his personal "diminution" with a tary operations. of European and American studies, and in "diminishing of the office of the presidency." But, unpredictably, the liberal faction has joint educational exchange programmes President Nixon is all too aware of the received some succor from Sen. Barry Gold­ from the two continents. tendency of most Americans to practically water, R-Ariz., the dean of Capitol Hlll con­ In an extended trade partnership between enshrine their Presidents. It is his knowl­ servatives. Goldwater said he thought he the European Economic Community and edge of this characteristic that has prompted could support Kennedy's amendment be­ North America as a basis of an Atlantic the arrogance he has lately displayed in seek­ cause Vietnamese inflation was no reason for Economic Community and its attendant de­ ing to deny access to evidence in his pos­ boosting congressional ceilings on m1litary .sirable polltical consequences. session sought by those official bodies in­ aid for Saigon. Besides, Goldwater said: "For In more measures to ensure common de­ vestigating presidential misconduct. The all intents and purposes, we can scratch fence among the Atlantic peoples with de­ President has imperiously ordered one spe­ Vietnam. I think it's evident that the South fence contributions fairly shared among re­ cial prosecutor to be fired because of his will fall into the hands of the North." spective countries. insistence on probing for truth; he has im­ Now, that is the kind of straightforward In a united Europe as an outward-looking !· ;·...-iously ordered another special prosecutor talk that has helped make Goldwater a hero :polltical and economic system. '\....; ooase seeking additional evidence from the to many Americans, but it is not--we would April 2, 1974 EXTENSIONS OF REMARKS 9419 submit--the kind of sensible reasoning that public interest. It has the wholehearted It is easy to find reasons for investigat­ equally should be expected from that emi­ support of the city officials of Corpus ing the private lives of citizens. Some nent conservative. For if the senator would Christi and all other communities in the argue that the Government needs more examine his statement, he would have to conclude that logically he should oppose not area. Extensive studies have shown the information about individuals in order to just the requested supplemental allocation Choke Canyon site to be the most eco­ legislate wisely, while others assert that for South Vietnam but also the $1.1 billion nomically feasible in meeting the water such information is essential for national basic amount for that nation's defense. For needs of the area. The Interior and In­ security. if the anti-Communist cause is manifestly sular Affairs Subcommittee on Water and Argume.,.ts such as these, however, can moribund in Vietnam as Goldwater implies, Power Resources last November held lead to excesses. The theft of the Penta­ then not one dollar more should be spent onsite hearings on the project. gon papers, credit data banks, and the there. But the evidence is that South Vietnam's It is time to move ahead on this im­ use of social security numbers to collect future in the face of continuing Communist portant and necessary project. information that is in no way related to aggression is far from being hopeless. Since Social Security Administration are prime the agreement calling for the Withdrawal of examples of the extremes to which some American combat forces was signed 14 AGAINST PSRO'S people in Government will go. months ago, the South Vietnamese have Unfortunately, PSRO law not only in­ tenaciously held provincial capitals and vades the right to privacy enjoyed by major population centers in spite of North HON. TRENT LOTT Vietnam's infiltration of some 130,000 troops every American; it violates the confiden­ into the south in violation of the agree­ OF MISSISSIPPI tiality of the privileged doctor-patient ment. The American Security Council, after IN THE HOUSE OF REPRESENTATIVES relationship. a recent fact-finding mission that included Tuesday, April 2, 1974 conservative Rep. Philip M. Crane, R-Ill., concluded that the next two years would be Mr. LO'IT. Mr. Speaker, every Ameri­ HON. WILLIAM S. MAILLIARD crucial to the ability of South Vietnam to can has a right to privacy. Nowhere is remain a non-Communist nation. this most fundamental principle more "It would be a mistake of historic propor­ essential than in lawYer-client, priest­ tions," the group said, "should Congress ac­ penitent, and doctor-patient relation­ HON. PHILLIP BURTON cept now the argument of critics who con­ OF CALIFORNIA tend that the U.S. participation in the de­ ships. But these privileged relationships fense of South Vietnam was all wrong and and the right to privacy are being eroded IN THE HOUSE OF REPRESENTATIVES that the U.S. should cut Its losses and aban­ daily. · Monday, March 25, 1974 don the South Vietnamese as a hopeless There has been a disturbing trend in cause." recent years for some organizations and Mr. BURTON. Mr. Speaker, I should If for no other reason, Congress ought to Government agencies to collect and ex­ like to congratulate and extend my best be interested in South Vietnam's success in change medical records as a matter of wishes to my distinguished colleague, order to protect a huge American invest­ routine. Patient's records have actually Bill Mailliard, as he assumes his new re­ ment already made there: 50,000 lives and sponsibilities as United States Ambas­ $130 billion. But beyond that concern, Amer­ been punched into computers where they are made available to credit agencies, sador to the Organization of American icans ought to have somewhere amid their States. boredom and self-centered concerns, at least insurance agencies, and others who want a tiny spark of compassion for the brave the information. In our years of service together, I have people of South Vietnam who do not want Even more disturbing, though, is a sec­ valued his friendship and I will continue to be conquered and who are resisting With tion of Public Law 92-603 which is com­ to do so. all their might. Bill Mailliard has represented the peo­ monly called professional standards re­ ple of California and the Nation with "iew organizations-PSRO. This Federal honor, ability, and integrity. law will require millions of Americans to NUECES RIVER PROJECT IN TEXAS He has, as a Member of the House, re­ have their medical records fed into data flected great credit on a proud San Fran­ banks and exposed to clerks and other cisco name and in this new post he will, HON. E de Ia GARZA bureaucrats before patients can be re­ I am sure, continue to gather new honors imbursed for their health care expenses. OF TEXAS in the service of the people of this Nation. Section 1155(a) (1) of Public Law 92- IN THE HOUSE OF REPRESENTATIVES Bill Mailliard is the only Member of 603 says, in part- Tuesday, April 2, 1974 Congress to serve simultaneously as the Notw1 thstanding any other provision of the ranking minority member of two com­ Mr. DE LA GARZA. Mr. Speaker, in law, but consistent With the provisions of this part, it shall ... be the duty and mittees; the House Foreign Affairs Sub­ conjunction with my colleagues the function of each Professional Standards Re­ committee on International and Ameri­ Honorable JoHN YouNG and the Honor­ view Organization for any area to assume, can Affairs and the House Merchant Ma­ able ABRAHAM KAzEN, I am introducing at the earliest date practicable, responsibil­ rine and Fisheries Subcommittee on today a bill authorizing the Department ity for the review of the professional activi­ Panama. Both of these committees have of the Interior to construct, operate, and ties in such area of physicians and other specific jurisdiction over matters relat­ maintain the Nueces River Project in health care practitioners and institutional ing to the Organization of American Texas. and non-institutional providers of health States. care services and itexns for which payment This bill is similar to legislation previ­ may be made (in whole or in part) under Bill Mailliard has worked to preserve ously introduced in the House but pro­ this Act. and protect open space. He has sponsored vides for a greater degree of local partic­ legislation which established the Faral­ ipation. Paragraph (4) of the same section lon National Wildlife Refuge, the Point The project calls for the construction continues: Reyes National Seashore and the Muir of Choke River Dam and Reservoir on Each Professional Standards Review Orga­ Woods National Historic Monument. the Nueces River. The reservoir would nization shall be responsible for the arrang­ He was the lead coauthor of my legisla­ ing for the maintenance of and the regular tion establishing the Golden Gate Na­ be a source of added water supply for reviews of profiles of care and services re­ the large and grow.ing city of Corpus ceived and provided With respect to patients, tional Recreation Area. Christi. utilizing the greatest extent practicable in His authorship of the Merchant My bill authorizes the appropriation such patient profiles ... Profiles shall also Marine Act of 1970 was of critical impor­ of $50 million. Prior to the appropriation be regularly reviewed on an ongoing basis tance to the San Francisco Bay Area be­ of any Federal funds, however, local with respect to each health care practitioner cause of its incentives for increased interests would make a contribution of and provider to determine whether the care shipbuilding and added employment. of $15 million. Upon completion of the and services ordered or rendered are consist­ Bill Mailliard voted his convictions and ent with the criteria specified ... work this sum would be applied as a supported legislation which many might credit to the repayment obligation of the This means all physicians' records have avoided. He voted his conscience on local entity-in this case, the city of must be made available to the bureauc­ such issues as busing and the Vietnam Corpus Christi-for municipal and in­ racy, and that laymen will be authorized war, although his position might have dustrial water service. to inspect these records as well as doc­ run contrary to a sizeable segment, if not Mr. Speaker, this much-needed project tors' offices. In addition, physicians will a major segment of his constituency. Blli has long been discussed. The State of be required to keep patient profiles for and I differed markedly on the Vietnam Texas found it to be feasible and in the regular review by clerks and bureaucrats. war. 9420 EXTENSIONS .OF REMARKS April 2, 19 7 4 While Bill Mailliard's work in the last and women dedicated to the common in the American Legion. His deep reli­ few years has been heayily concentrated good. Voluntarism is not only a great gious faith has found its larger outlet in in the area of foreign affairs, he has dem­ American tradition, it is the mainstay of the work of the Knights of Columbus onstrated an extreme alertness and the democratic system. It is that citizen and the Holy Name Society. awareness of our domestic problems; one participation without which free govern­ In times as these, there is a greater example of his interest has been his con­ ment cannot endure. need than ever before for active religious tinuing efforts to secure fundin;- for low­ Pick an area of interest and involve­ commitment. Mere formal or external and moderate-income housing for both ment-an area that has an immediate piety is not enough. There must be a San Francisco and Marin counties. importance and Joe Roberts will be found genuine investment of self in the wor­ Bill Mailliard is a man of stature and in the forefront. ship and mission of the church at every character who brings to his new assign­ Ecology-Conservation-as a member level. And that giving of self must ment the good will and esteem of all who of the Cresson Sportsmen Association proceed from a deep inner confidence in have been privileged to work with him you can be sure that he has supported God and in his good will for man. Com­ this body. the principles that make our air fresh missioner Roberts is no stranger to such He has my most sincere best wishes and our waters clean in an environment a faith, as those who know him can and congratulations. that allows us to live in harmony with testify. nature. He has made public service a way of Education? As a member of the board life and a source of good for all. We know of directors of Mount Aloysius Junior that these are days in which public serv­ A TRIDUTE TO JOE ROBERTS College he has an abiding desire to pre­ ice is often distrusted. There is a wide­ pare our children for the contribution spread loss of confidence in the integrity HON. JOHN P. MURTHA they will make to our society. of public life and public service. The more OF PENNSYLVANIA At this very moment there is a letter valued, then, to see a ma.n like Joe on my Washington desk with Joe's name Roberts, whom we honor here tonight, IN THE HOUSE OF REPRESENTATIVES on it, regarding a project which, if for helping restore the dimensions of Tuesday, April 2, 1974 funded, would enable Mount Aloysius to respect and the precious ingredient of Mr. MURTHA. Mr. Speaker, if all the survey the immediate community in trust without which no nation can live. tickets Joe Roberts has sold, for one depth, to determine its unmet educa­ "While we have time" wrote the good cause or another over the past 40 tional needs and to design programs Apostle Paul, "Let us do good unto all years, were laid end to end they would responsive to those needs as well as men." reach all the way from here to heaven. implement and evaluate those programs. Truly that has been the guiding prin­ Joe Roberts has made a life's work Now, of particular interest in this ciple for Commissioner Roberts--and it out of service and it is a happy occasion area, as you know, is the need for mining is that kind of life which we recognize for me-and a genuine privilege as well­ and railroad revitalization currently with gratitude- to join with you tonight in payin.g tribute being projected as part of the solution Joe Roberts is no ordinary man. to a man who has given freely of his time posed by the current energy crisis. We While he speaks softly and, in his own and energy to civic and religious causes must have answers to develop the tech­ gentle way moves mountains, there is without number. niques to assume a competitive stance. nothing fiamboyant about him that It is difficult to identify some small This project would produce a manual would indicate his tremendous drive and part of his work in the time we have here for management of educational and zeal. We, here in cambria County, are this evening. There are so many areas in operational change in 2-year private immensely fortunate in having benefit­ which he brings the benefit of his talents institutions of private education. This ted from his extraordinary sense of serv­ for organization, for determination and same manual could be used in similar ice. accomplishment. institutions. God grant that he will continue to So many good and worthwhile activi­ I have been in contact with Sister serve the people-and his church-for ties, from the Boy Scouts where he is Cecilia Meighan and Dr. Gardiner on many, many years to come. a member of the executive board of the this project, of course, and it is my And let me say this. Joe Roberts­ Adm. Robert Peary Council, to a director­ intention to do all in my power to see while I have been saying these grand ship at Mercy Hospital in Johnstown. to it that this work on junior college words in your praise-! say with all re­ His awards are numerous and do not capability is funded. I mention it here spect that you have no need of a single begin to cover his very substantial and as one example of the far-reaching inter­ syllable from me. Your life is of itself a excellent record of fund raising and civic ests of Joe Roberts. He asks that I do commendation. endeavor. what I can-and I respond-because I I wish you every good thing-for you, Back in 1962 the Cresson Mens Club know what is characteristic of Commis­ your children, and those grandchildren voted him Man of the Year, and in 1971 sioner Roberts. He asks for what is good of whom you are so proud. With luck, he received the Humanitarian Award for Mount Aloysius--and for what, even­ they may follow in your outstanding from the United Cerebral Palsy Associa­ tually, will be of benefit for the entire tradition of service and brotherly love. tion. community-the entire congressional He received the Citation of Apprecia­ district. tion Award from the American Legion Yes, Commissioner Roberts represents and Home Health Service Award from the that sense of community concern and HONOR OUR VIETNAM VETERANS Northern Cambria County Home Health community involvement of which I have services: Numerous Girl Scout awards; spoken. While satisfactorily discharging pride in excellence a wards from the the duties of his office, he has also given HON. MARJORIE S. HOLT Southern Alleghenies Planning and De­ dedicated service to such varied causes OF MARYLAND velopment Commission; the Muscular as scouting for boys and girls, the Order IN THE HOUSE OF REPRESENTATIVES Dystrophy Award for 1966-67. And the of Moose, the Pennsylvania Association Tuesday, April 2, 1974 Urban Service Award from the Com­ for Retarded Children, the Red Cross, munity Action Council. the Goodwill Industries, hospital work of Mrs. HOLT. Mr. Speaker, I would like Where does he find the time-the various sorts. All this refiecting his com­ to take this opportunity to express the energy? mitment to the health and well-being Nation's profound gratitude to our Viet­ This man belongs-heart, soul, and of the whole community, as well as a nam veterans. Although March 29 was body-to these organizations, he belongs lively interest in that spirit of fellowship set aside as the day on which we honor as a participating, actively committed, that gives extra meaning to his life. our Vietnam veterans, I would hope that concerned human being. In these troubled times for America, their achievements at the price of great Yes, it has been said-and truly-that times in which the values and ideals of personal sacrifice would be etched per­ the strength of America is to be found our past are often neglected or derided, manently into the American conscience, not in her armies nor in her industrial or he has upheld the basic elements of any and that we would remain constant in military might, but in her people; in the free society-loyalty to God and coun­ our recognition of the debt we owe these character and quality of individual men try. His patriotism has found expression brave men through the ensuing years. April 2, 1974 EXTENSIONS OF REMARKS 9421 As we enter our second year of peace, KEY RECENT VOTES The Panamanian government has changed Opposed minimum wage. 13 times since World War n, five tunes vio­ an honorable peace secured by the loss lently. That does not demonstrate the sta.­ of thousands of our young men, by the Opposed amendment which would have prolonged energy shortage by killing pro­ billty necessary to guarantee us future use, lifetime of disability and suffering of duction incentive (defeated, 163-216). and the U.S. shouldn't lose control of such a many thousands of others, and by the Supported bill to increase veterans' edu­ vital trade link which also enables ship displacement of the private lives of so cational benefits (passed). movements for our own national defense. many more, I earnestly hope that we Supported Water Resources Development A STRONG DEFENSE IS VITAL will recognize our debt to our veterans. Act with construction authority for chloride As a member of the House Armed Services What more concrete evidence could we control structure on South Fork of Wichita Committee, I know our country must be so present to them than the passage of River (passed, 374-4). strong that no na.Uon wlll dare attack us. Opposed federal debt increase (passed, equitable legislation drafted to assure The milltary and civilian personnel at Shep­ those who have returned of full employ­ 253-153). pard AFB near Wichita Falls, as well as the Opposed foreign aid increase through In­ management and employees of several indus­ ment and responsive educational bene­ ternational Development Association (re· tries in Northwest Texas, significantly con­ fits? jected, 155-248). tribute to the strong national defense pos­ I know that my colleagues join me in Supported legislation to aid development ture which serves as the basis for world this commitment as we honor the dedi­ of solar power (passed). peace, as well as contributing to local econ­ cation and the valor of our Vietnam vet­ WATER FOR NORTHWEST TEXAS omies. erans with heartfelt awareness of their Everyone in Northwest Texas knows the This year's Defense budget ts ~85.8 blllion, contribution to their country and to the importance of improved water quality and $6.3 billion higher than for FY '74. Much of free world. quantity, but officials in Washington are still this increase is for personnel cost increases, refusing to move on water import plans. procurement and more research and develop­ In response to my request that the once· ment. The committee has the task of detailed rejected Lower Mississippi water import plan analysis of each item in Defense budget. LET'S GIVE FREE ENTERPRISE A be re-assessed using today's higher agricul­ JANE FONDA, LOBBYIST FOR WHOM? CHANCE TO WORK tural product values, the Corps of Engineers When Jane Fonda broadcast her pleas over has responded it feels the project still would Hanoi radio, I asked that she be prosecuted not be economical and failed to make a com­ for treason, and I still believe she and her plete re-evaluation at this time. Although kind should be prosecuted. The U.S. Depart­ HON. ROBERT PRICE the Corps did agree that increased water ment of Justice, however, has taken a weak supplies for West Texas are needed to con· OF TEXAS posture on this. tinue municipal and industrial growth and IN THE HOUSE OF REPRESENTATIVES When Ms. Fonda and her husband Tom irrigation in future years, the Corps con­ Hayden (SDS founder and member of the Tuesday, April 2, 1974 tended that estimated annual costs of the "Chicago Seven") brought a campaign to import plan are four times annual benefits Capitol Hlll and obtained use of House Com­ Mr. PRICE of Texas. Mr. Speaker, as is and estimated construction costs are $16 consistent with my standing policy, I in­ mittee rooms to "educate" sta.1f employees, I blllion plus the cost of building new power circulated a letter to all of my House col­ sert the text of my current newsletter in generation facilities. leagues pointing out their favorable publicity the RECORD: This leaves us in a difficult position, but in a Communist Hanoi newspaper and ques­ BoB PRICE REPORTS we must encourage the Corps to recognize tioning just who they represented in their LET'S GIVE FREE ENTERPRISE A CHANCE TO the full importance of an adequate water lobbying efforts. WORK supply for municipal and industrial use and The concern of my colleagues resulted 1n a Our economy suffers from an energy short­ for irrigation to produce the food and fiber colloquy in the House Chamber tn which 33 age which has spawned shortages in fertilizer, this nation wlll need in future years. I am Members, including myself, participated. continuing my efforts to obtain a re-hearing synthetics and other vital products as well as Ms. Fonda. has now apparently ceased her gasoline, butane and diesel fuel. The energy in the Congress on the matter of water im­ Congressional lobbying effort. shortage stems from many years of Congres­ portation for Texas. sional actions which have discouraged ex­ Good News in the soil and water conserva­ ploration and production to the point where tion area is the new Rural Environment Con­ servation Program (RECP) , a. replacement increased demand hasn't been met. Now we THIRTEEN-MILE-HIGH STACK OF hear pleas for more government controls. for the REAP program. Under RECP, growers More government controls spell more trouble. can request annual and long-term agree­ MR. SIMON'S WASTEPAPER 30 months of price controls haven't worked. ments designed to share costs of conser va.· Congress should let controls expire April 30 tion practices. This is consistent with legis­ and give free enterprise a chance to work. lation I introduced calling for continuation for REAP program benefits. HON. BILL GUNTER Free enterprise has worked well in the past OJ' J'LOlUDA and will again, if we let it! Farmers plowing up any drought out Local water resources and local economic wheat should be sure to report the action to IN THE HOUSE OF REPRESENTATIVES development are areas that need constructive local ASCS offices to insure history credit Tuesday, April 2, 1974 assistance. That's why I hosted Rural & Com­ and be eligible for possible disaster benefits munity Development Symposiums with later. Mr. GUNTER. Mr. Speaker, my com­ County Judges and Commissioners; and why Encouraging water news for many locali· ments today might more appropriately I am seeking re-study of Mississippi water ties involves funds I have worked for totaling have been made yesterday, April 1, or import proposals, based on recent crop prices, more than $800,000 delivered in the last three April Fool's Day. In this instance, it is and why I am working for funding progress months alone. These include: the taxpayer who has been played for a for soil and water quality project for Red FHA grant and loan for King-Cottle Water fool. I refer to the extraordinary action River and tributaries. Supply Corporation in continuing support of Mr. William Simon, Administrator of Better water quality wlll result in more for a new water system for 225 rural families water for muuicipal and irrigation uses. the Federal Energy Office, in ordering a and businesses in Foard, King and Cottle $12 million printing job, for which no PRICE Bn.LS AND KEY VOTES counties; and funds had been appropriated by Con­ Passed by House: EPA grants to support new or improved H.R. 11873 to assist animal disease re- wastewater treatment facilities in Bellevue, gress, to produce 4.8 billion gas ration search. Burkburnett, Henrietta, Pampa, Amarlllo, coupons that will not be needed. This New B111s Introduced: Dalhart, Archer City, Canyon and Tulia. collection of waste paper in the form of H.R. 12842 to repeal Daylight Saving Time. STOP PANAMA CANAL GIVE-AWAY unneeded gas ration coupons, if put in H.R. 12969 to raise ceilings for guaran- one stack, would reach 13 miles into the teed farm ownership and operating loans. In an effort to halt any give-away of the Panama Canal, I have offered a resolution of sky. H.R. 13207 (with 26 cosponsors) to toughen opposition in the House. federal kidnap penaltlles. Mr. Simon acknowledges that he failed H.R. 13348 to increase disabled veteran The U.S. bullt the canal and has a legal to obtain congressional approval of the and war widow assistance. right to its ownership and use "in perpetu­ expenditure of funds for the purpose of H.R. 13297 to repeal Occupational Safety ity." Some $2,397,400,000 1n U.S. taxpayer printing 4.8 billion gas ration coupons and Health Act (OSHA) . funds used in construction 1s stUl outstand- and indicated it was a sort of oversight. ing and would be lost 1! the canal were H. Res. 849 to disapprove Congressional Speaker, I realize $12 million over­ pay raise (with 11 cosponsors). given away. Some 70% of cargo tonnage pass­ Mr. H. Res. 975 to oppose giveaway of Panama ing through the canal either originates tn, sights are all too common in the admin­ Canal. or is destined for, the U.S. istration of the executive branch. 9422 EXTENSIONS OF REMARKS April 2, 1974 However, if we are to believe the ru­ requested or enacted and that a viobtion of cattle prices declined even more sharply mors and press reports, the author of the law thereby appears to have been com­ downward, resulting in the largest farm­ mitted. It was further reported that Mr. this $12 million mistake is about to be Simon intends to seek retroactive approval retail spread in history. Of the $1.44 per nominated as Secretary of the Treasury. of this illegal expenditure of $12 m1llion in pound which consumers paid for beef It does not give me unbounded confi­ tax funds. during March, only 86.5 cents went to dence in Mr. Simon's qualifications for I am therefore writing to request that the the farmer. A record 57.5 cents went to the job, I confess, that his primary ac­ Appropriations Committee conduct a thor­ the middlemen. It is not the actual price complishments so far as head of the Fed­ ough Investigation of the apparent bypassing which matters here. It is the width of eral Energy Office have been to com­ of the Appropriations Committee in this in­ the far-retail spread. This shows where stance and which resulted in the illegal ex­ pletely foul up gasoline allocations to all penditure of funds, and that you report your a rise or drop in prices goes. areas of the country while, at the same findings in some appropriate manner to the The competitive marketplace system time, illegally expending $12 million in full House. I am further requesting that the is on trial today in the public mind. tax funds to provide a 13-mile-high stack Appropriations Committee disapprove Mr. Consumers and farmers alike are upset of waste paper that the taxpayers must Simon's request for retroactive approval of at the current situation. Mr. and Mrs. also now pay to house in Government the printing of gas ration coupons. Average Consumer wonder how much warehouses somewhere. Sincerely yours, real price competition actually exists at Mr. Simon has indicated he will ask BILL GUNTER, the retail, wholesale and processing Congress to retroactively legitimize his Member oj Congress. levels. Plenty exists at the farm end. The illegal expenditure of funds and to thusly breeding and feeding of cattle is one of correct his oversight. the most diversified and intensely com­ I have asked the House Appropriations RECORD FARM-RETAIL SPREAD petitive economic activities in our Na­ Committee to disapprove this request, tion. Cattle producers take high risks Mr. Speaker, and submit for the atten­ year after year, and accept the ups and tion of my colleagues the text of a letter HON. PAUL FINDLEY downs of this competitive market. I have today addressed to the chairman, OF ILLINOIS When cattle leave the feed lots, how­ Mr. MAHON. IN THE HOUSE OF REPRESENTATIVES ever, what are the competitive facts? It It would seem to me that as a mini­ is in the off-farm chain of events that mum requirement for the Senate's ap­ Tuesday, April 2, 1974 the consumer is now taking a beating. proving any forthcoming nomination of Mr. FINDLEY. Mr. Speaker, I have It is my hope that the subcommittee Mr. Simon to be the new Treasury Sec­ been looking forward to hearings on meat hearings will unearth some explanations retary, his much-touted abilities ought prices since November when I first wrote for the current situation and discover to first be put to a practical test by re­ to Chairman POAGE urging that they be the causes of the all-time record farm­ quiring that he find a way to sell this held. It was my contention then, as it is retail spread. It is surely more than pure monstrous accumulation of wastepaper today, that consumers are not getting a concidence that chain stores have been to any available bidders. fair shake at the meat counter. I am advertising meat price reductions within Given the current paper shortage, gratified that the subcommittee chaired the past 2 weeks. If subcommittee hear­ there ought to be some market for these by JOSEPH VIGORITO began hearings to­ ings on the price of beef can bring down curiosities Mr. Simon had printed up in day. Consumers are paying inordinately hamburger 15 cents a pound-as seems such abundance, and perhaps by selling high retail prices for beef compared to to be the case-then perhaps what the the gas ration coupons for recycling, the returns farmers receive for their consumer needs are more frequent hear­ some small amount of the total tax funds animals. ings of this sort. wasted can be redeemed. Traditionally, when the price of the If Mr. Simon is successful in this test basic raw material in a finished product RETAIL PRICE, FARM VALUE AND FARM-RETAIL SPREAD of his ingenuity, I confess I still shudder decreases or increases in value the retail FOR USDA CHOICE GRADE BEEF-JULY 1973-MARCH 1974 that his confirmation as Treasury Secre­ price of the finished product reflects with [In cents] tary would also put him in direct charge reasonable promptness this decrease or of all those printing presses over at the increase. This has not been the case with Farm-retail Bureau of Engraving and Printing, and meat products. As the table below shows, Retail price Farm value spread there is no telling what he might be while farm receipts for USDA choice printing next, perhaps a 13-mile high grade beef have plummeted by 22 cents July ______136.3 96.7 39.6 August______144.2 108.5 35.7 stack of $2 bills with pictures of Mr. from record highs, retail prices have September______144.9 91.9 53.0 Simon on the face. dropped only 6 cents. October______136.0 83.2 52.8 November ______134.9 80.0 54.9 I do not presume to advise the Senate Admittedly there are reasons for a December ______134.4 79.6 54.8 in its business, Mr. Speaker, but I do slight widening of the farm-retail spread. January ______143.0 96.9 46.1 February __ _------150.0 94.5 55.5 urge the House Appropriations Commit­ Increasing costs of energy, rising wages, March 1______tee not to make itself a party to an illegal higher transportation costs and other 144.0 86.5 57.5 expenditure of $12 million in tax funds factors have all contributed to some in­ I March data based on preliminary estimates from unpublished by retroactively approving this costly crease. Nevertheless, one would expect USDA data. bungling. the price of the hamburger to follow sub­ Source: Price Spreads for Farm Foods, Monthly Supplement The text of my letter follows: stantially any changes in the cost of the to Marketing and Transportation Situation, Economic Research HOUSE OF REPRESENTATIVES, steer. Service, USDA. Washington, D.C., April 2, 1974. When the retail price freeze on beef Hon. GEORGE H. MAHON, was lifted on September 10, overly fat Chairman, House Appropriations Committee, cattle, some weighing in excess of 1,300 U.S. Capitol Building, Washington, D.C. PROPOSES REDUCTION IN NUMBER DEAR MR. CHAmMAN: It recently came to pounds flooded the market. Consumers OF IRS COMMISSIONERS my attention that even following the clear who had spent the summer attuning indications the Arab oil boycott would be themselves to beefl.ess meals did not rush lifted and the announcement by the Presi­ to buy the meat as had been expected HON. ROBERT 0. TIERNAN dent that we would not have gasoline ration­ and livestock prices plunged. But retail OF RHODE ISLAND ing, the Bureau of Engraving and Printing, prices for September actually rose IN THE HOUSE OF REPRESENTATIVES nevertheless, continued to work feverishly slightly over August prices. Some grocery with their presses at top speed to print 4.8 officials said openly at the time that they Tuesday, April 2, 1974 b1llion gas ration coupons that will never be needed. were keeping beef prices high to com­ Mr. TIERNAN. Mr. Speaker, I have This collection of wastepaper, which if put pensate for losses incurred when they made several technical improvements in in one stack would reach 13 miles into the bought black market beef during the the legislation I proposed to establish an sky, cost the taxpayers over $12 million. price freeze. Small comfort to the con­ independent commission to enforce the My point in addressing this to your atten­ sumer, and a sad commentary on mer­ Internal Revenue laws, and am introduc­ tion, however, is the acknowledgement by chandising. ing this new bill today. Mr. Simon reported in the press that through Preliminary March estimates from The major technical change in this an oversight, no appropriation for an ex­ USDA data show a decline in retail beef reorganization bill I am introducing is penditure of funds for this purpose was ever prices. But they also show that farm the reduction in the number of Commis- April 2, 1974 EXTENSIONS OF REMARKS 9423 sioners from five to one. After consulta­ in Charge of the Pacific Coast-head­ ommendations which we feel could en­ tion with several persons experienced in quartered in Los Angeles--for Furness­ courage expansion of the domestic en­ administering the tax laws, I believe a Withy & Co., an organization he :first ergy production in a competitive fash­ system with a single Commissioner will became associated with in 1924. ion. I would like to submit for the RECORD, facilitate the enforcement of these laws. Then, on July 29, 1954, he became a the substance of the recommendation But I feel it is imperative to place the naturalized U.S. citizen. and the findings of our report. Brie:tly, control of the tax laws in an independent The next year, Captain Anthony joined our recommendations are that the Con­ agency. the Associated Banning Co., as executive gress- The basic premise of our income tax assistant to Harold Germain, the presi­ One. Require integrated oil companies laws is to raise revenues to finance the dent of the company. Nine years later, to divest themselves of their retail Federal Government. But this purpose he was appointed president of the orga­ marketing and distribution operations. often has been subjugated because of the nization. Two. During periods of shortage and whims of the political party in power. In 1967, Associated Banning Co. was before divestiture is completed, require We have seen political enemies often absorbed by Metropolitan Stevedore Co. suppliers of crude oil and refined pe­ subjected to undue investigation and and Captain Anthony was appointed troleum products to reduce deliveries by harassment while allies often receive ex­ president of the merged companies, a the same percentage to all consumers tremely favorable treatment. position he still holds. without preference to affiliated compan­ Tax laws should be administered as As a leader of the shipping and steve­ ies or franchises. tax laws, not weapons or rewards used by doring industry, Captain Anthony serves Three. Abolish the percentage oil de­ the administration in power. We need an as the president of the Marine Ex­ pletion allowance. independent commission to assure the change-Long Beach/Los Angeles Harbor, Four. Require large, integrated energy integrity of our taxing system. We must the president of the Los Angeles Steam­ companies to disclose corporate infor­ be assured that a large campaign con­ ship Association, a member of the board mation relating to costs, profits, inven­ tribution will not make the ms look the of directors of Master Contracting Steve­ tories, and reserves. other way when the contributor files his dores Association of the Pacific Coast. Five. Reduce tax incentives for forei~ tax return. And we must also be assured a member of the board of directors of the investment by completely restructuring that threatened harassment will not Pacific Maritime Association, and as the tax credit granted for royalty pay­ silence political objections. chairman of the Los Angeles/Long Beach ments to foreign governments. This independent commission will take Sub-Steering Committee. Six. Deregulate the prices of crude oil away the opportunity for political inter­ Captain Anthony's successful career and natural gas; impose a windfall ference. I urge my colleagues to support has not been without its tribulations­ profits tax on "old" oil and "old" nat­ this legislation and work for its passage the overcoming of which would not have ural gas. this session. been possible without the aid and sup­ Seven. Impose an excess profits tax port of his wife of 39 years, Isabel Logan, which would be waived on profits which a Scottish lass. are plowed back into investment in ex­ Mr. Speaker, it gives me great pride to panded domestic production. TRIBUTE TO CAPT. JOHN H. joint with the City of Hope in saluting Eight. Redistribute increased Federal ANTHONY this outstanding gentleman, Capt. John revenues to consumers via the tax sys­ Anthony, who certainly, according to tem in order to partially offset higher HON. GLENN M. ANDERSON Dr. Schweitzer, has enjoyed a "really energy prices. happy" lifetime of service. The recommendations follow: OF CALIFORNIA CONCLUSIONS AND RECOMMENDATIONS REGARD• IN THE HOUSE OF REPRESENTATIVES ING COMPETITION IN THE ENERGY INDUSTRIES Tuesday, April 2, 1974 GOALS OF FEDERAL POLICY COMPETITION IN THE ENERGY The central goals o! federal pollcy with Mr. ANDERSON of California. Mr. INDUSTRIES respect to the energy industries should be: Speaker, Dr. Albert Schweitzer once said: (1) the encouragement o! expanded domes­ I don't know what your destiny will be, tic exploration, production, and reflnlng ca­ but one thing I know: the only ones among HON. RICHARD W. MALLARY pacity for all energy sources; you who will be really happy are those who (2) the promotion of free competition in have sought and found how to serve. OF VERMONT order to ensure (a) that producers are re­ IN THE HOUSE OF REPRESENTATIVES sponsive to increases in demand and (b) that And among the many in our society prices are determined by the free market, not who serve humanity, the City of Hope Tuesday, April 2, 1974 by a sellers• ollgopoly. selects a "Man of the Year" who symbol­ Mr. MALLARY. Mr. Speaker, during !.Incentives tor expanding domestic izes the excellency and devotion em­ this session of Congress, we have been production bodied in service to one's fellows. preoccupied by debate over energy re­ We believe that present increased energy The 1974 recipient of this honor is no sources. We have dealt with the sub­ prices will encourage expanded production. different than his predecessors, nor is he ject in a piecemeal fashion but have In addition, we believe that the government different from those who will follow, in failed to determine what out overall can effectively encourage further increases that each continuously seeks to improve in domestic production by reducing incen­ Federal policy is, and ought to be, with tives for foreign investment and eliminating the conditions and eliminate the ad­ respect to the development and sale of disincentives for domestic expansion. versity which confronts mankind. energy resources. In the past, government regulatory and tax The man selected by the City of Hope Few of my colleagues, Congressmen policy--often supported by on lobbyists--has to receive this signal honor is Capt. John FISH, FRELINGHUYSEN, HORTON, and made domestic expansion less profitable than H. Anthony, an individual who has served WHITEHURST, and I have recently com­ foreign investment. For example: his community through business, civic pleted a study of "Competition in the on import quotas created uncertainty re­ involvement, and social organization. Energy Industries." We found, as it is garding the avanablllty of future crude sup­ plies and, therefore, discouraged the con­ Educated in England, Captain Anthony widely acknowledged, that there is a high struction of domestic refineries. attained the rank of Master in 1941, at degree of concentration in the energy Permitting on companies to take a tax the age of 32. industries. This concentra;tion allows the credit on royalty payments to foreign gov­ During World War II, he served in the behavior of the large, integrated firms to ernments encouraged investment abroad at British Merchant Marine and saw con­ be cooperative rather than competitive. the expense of investment in domestic pro­ tinuous action, participating in the North To insure that the producers are re­ duction. African landings and the Italian land­ sponsive to increases in the demand for Regulation of natural gas prices discour­ aged the exploration and development of ings. In addition, Captain Anthony made energy and that the prices charged by domestic reserves. the infamous Murmansk-Archangel run. the companies are determined by the Some observers have doubted that the re­ And in 1945, he was appointed to com­ free market rather than an oligopoly of arrangement of investment incentives would mand troop ships, a capacity in which he the producers, we feel that the Federal ensure an adequate increase in production. finished his sea career in 1947. policy actively should foster free com­ These observers have argued that the energy In December 1947, Captain Anthony petition in the energy industries. companies' strategy relies on curtailing sup­ was promoted to Marine Superintendent We have developed a series of rec- ply, thereby ensuring upward pressure on 9424 EXTENSIONS OF REMARKS April 2, 1974 price. We do not believe that the evidence addition, such a divestiture would arrest the remain profits nonetheless. Because of this entirely supports this allegation. In fact, the major brands' current trend toward carving fact, some observers have argued that ex­ energy companies ha. ve been eager to expand out monopolistic regional marketing en­ cess profits should be taxed away for rea­ production when domestic expansion has ap­ claves. This divestiture should be gradual sons of equity regardless of their end-use. peared to be profitable-viz., the Alaska and orderly, so that supply disruptions do We believe, however, that the nation's list of pipeline, drilling in the Santa Barbara Chan­ not occur and so that these holdings can priority policy goals must place the need for nel, development of off-shore and oil-shale be sold at a fair market price. expanded domestic production ahead of the reserves, rapid expansion by most oil-owned (2) During periods of shortage and before desire to impose punitive taxes. coal companies. divestiture is completed, require suppliers of ( 8) Redistribute increased federal reven­ In short, energy companies have followed crude oil and refined petroleum products to ues to consumers via the tax system in order a policy of maximizing profits. Unfortunately. reduce deliveries by the same percentage to to partially offset higher energy prices. Three business conditions--often engendered by all consumers without preference to affili­ of the above recommendations--the windfall governmental policies and supported by the ated companies or franchises. profits tax on old oil and natural gas, the oil industry-have made expansion of domes­ (3) Phase-out the percentage oil depletion termination of the depletion allowance, and tic production unprofitable. If these disin­ allowance. This would eliminate the incen­ the restructuring of the foreign royalty cred­ centives to domestic investment are removed, tive for integrated companies to shift profits its system-would increase federal revenue. we believe that the energy companies' self­ from the refining stage to the crude produc­ By returning this money to consumers, the interest will lead them to expand their do­ tion stage. Ending this market distortion effect of high energy prices on individuals' mestic exploration, production, and refining would provide relief for independent, non­ overall budgets will be mintmized. capacity. Especially in light of the high price integrated refiners, whose low profits reflect The redistribution of the increased rev­ of domestic crude, it is clear that the energy the artificially low refining profits set by enues should be made by tax credits to those companies will now be able to make a greater integrated companies. who file and pay federal income tax as well profit by expanding production than by with­ Prices and profits have already risen more as by a.n increase in direct payments to re­ holding it. than enough to offset the loss of corporate cipients of Social Security, Railroad Retire­ 2. Promotion of free competition revenue that this would entail. ment, or welfare or other transfer payments. ( 4) Require large, integrated energy com­ By immediate adjustment of withholding While relying on corporate "self-interest" panies to disclose corporate information re­ to increase supply, we must guard against schedules and rapid increases in transfer lating to costs, profits, inventories and re­ payments, the depressing effect of these taxes "self-interest" being developed to the detri· serves. The government must have complete ment of the public interest. Therefore, we would be alleviated and a. fairer distribution access to this information not only in order of the revenues would be possible. believe that free competition must be pro· to discover anti-competitive practices but moted if we are to achieve our energy goals. We favor a. redistribution formula which also in order to make informed decisions in would increase the size of the per capita re­ The principal competitive forces in the the areas of allocation and rationing, tax in­ bate tf retail prices increase. Deregulation energy industry which check the oligopolistic centives, and federal support for research power of the large, integrated companies are and development. of crude prices would, of course, put upward the independent producers, refiners and pressure on retail prices. However, federal (5) Reduce tax incentives for foreign in­ marketers. It is important to protect the vestment by completely restructuring the tax revenues from the windfall profits tax viability of these firms (1) in order to en­ credit granted for royalty payments to for­ would rise in proportion to crude and retail courage the responsiveness of large, inte­ eign governments. This would remove one of prices. Therefore, the amount redistributed grated energy companies to increases in de­ the principal incentives to priority invest­ through the tax, pension, and welfare sys­ mand and (2) in order to check the price­ ment in foreign production. tems could be varied according to average setting power of the large, integrated firms. retail prices. The viab111ty of the independents has been (6) De-regulate the prices of crude oil and Some observers have suggestect that prices threatened in two ways: natural gas; impose a windfall profits tax on cannot be allowed to rise above certain levels First, during the recent shortage, major "old" oil and "old" natural gas. De-regulation because of tnfia.tiona.ry ramifications for the oil companies have tied up supplies of crude is a. necessary part of ending market distor­ economy as a whole and for "emotional rea­ and refined products within vertically­ tions, removing obstacles to increasing pro­ sons", regardless of a federal per capita re­ integrated distribution channels, cutting off duction, and discouraging consumption of a. bate scheme. Most economists argue, how­ sales to independent marketers and refiners. scarce good. Specifically, deregulation would ever, that supply and demand for gasoline Some observers allege that the majors' cut­ eliminate the market chaos created by the will achieve equlllbrium well below unac­ off of supplies to independents represents a. $4-per-barrel disparity between old and new ceptable price levels. For example, Milton premeditated attempt to curtail competition. oil. Friedman argues that the market will "clear" Others claim that the cut-off was a. legit­ We recognize, however, that permitting the a.t less than 75 cents per gallon. Another imate and prudent response to the need for price of old oil and natural gas to rise to the study puts that figure at 59 cents per gallon. supplying the majors' own retail outlets. In market level wm temporarily create windfall Coupled with redistribution of increased fed­ any case, it is clear that the major producers' profits-profits which are irrelevant to the eral revenues, these prices do not seem too ownership of retail outlets has been detri­ encouragement of new production. There­ high a. price to pay for ( 1) eliminating gaso­ mental to the interests of independent fore, we propose that a windfall profits tax line lines and (2) the more efficient allocation marketers and, hence, detrimental to free be imposed on the difference between the of gasoline that market-regulated demand competition. present price and the price after de-regula­ would produce. Second, integrated oil companies have tion. This tax would gradually be decreased The adoption of these eight recommenda­ shifted profits from the refining stage to the and phased out. The tax levels should be tions would represent an effective and re­ crude production stage in order to take max­ high enough to substantially equalize the sponsible program toward ( 1) providing in· imum advantage of the depletion allow­ price of "old" domestic crude oil with re­ centives for expanding energy suppUes and ance. Due to the artificially high crude prices cently discovered oil, oil from stripper wells, reducing demand and (2) promoting free and the artificially low refining profits caused and foreign oil. The phasing out of the tax competition and, hence, fair prices and a re­ by this manipulation, non-integrated re­ should be gradual enough so that there sponsive market. While encouraging these finers have suffered. would be no incentive to limit production in goals, our recommendations also strive to In general, we believe that independent the hopes of deferred profits. lessen the hardships caused for consumers marketers and refiners (a.s well a.s available (7) Impose an "excess profits" tax which by high energy prices. free market foreign supplies) have served vrould be waived on profits which are plowed as a. significant check on price increases in back into investment in expanded domestic the past. In order that independents may production. Excessive profits which should continue to play this role in the future, the be defined as profits in excess of a reasonable ARAB BLOC MUST LOWER PRICE government must protect them from such return on invested capital-should be re­ practices as ( 1) curta.111ng deliveries to in­ duced or eliminated by the above recom­ FOR OIL dependent competitors and (2) reducing in­ mendation regarding the windfall profits tax dependents' profits by setting artificial and changes in foreign tax credits and the prices--practices which are anti-competitive depletion allowance. If "excessive" profits HON. LOUIS C. WYMAN in their effect regardless of their intent. remain, however, we believe that the Con­ OF NEW HAMPSHmE RECOMMENDATIONS gress should encourage the energy companies IN THE HOUSE OF REPRESENTATIVES In order to encourage expansion of domes­ to use them for expanded production rather tic energy production and in order to pro­ than expanded dividends. This could be Tuesday, April 2, 1974 mote competition in the energy industry, we done by placing a tax on "excess" profits Mr. WYMAN. Mr. Speaker, I have re­ recommend that Congress: which are not reinvested in an approved peatedly stressed that the price being (1) Require integrated oil companies to manner. Since energy companies are cur­ charged the rest of the world for Arab divest themselves of their retail marketing rently investing in expanded production at and distribution operations. Prohibiting af­ a rapid rate, this provision would merely en­ oil bears no relation to lifting cost and is, filia. tions between refiners and marketers sure the continuation of present positive in fact, unreasonably, and unnecessarily would foster the equitable distribution of trends. high. Because it is so high and because refined products among all retail outlets. In We recognize that even reinvested profits this oil is a necessity for such nations as April 2, 1974 EXTENSIONS OF REMARKS 9425 Japan and others that are oil-short, a happened in recent months has simply But I think that course of action which consequence of the excessive charges is reached the absurd. would better serve those I represent The sudden and massive increases of oil would be to try to explain why we have grievous imbalances in payments, huge prices has literally, overnight, doubled the cost increases and runaway inflation for entire national incomes of virtually every oil such shortages. I fully recognize it is these countries. country in the Middle East. dangerous for me to attempt to explain Governments of the oil-short nations, On a per capita basis, the situation in these our present shortages because some representing most of the world, are not tiny Persian Gulf states is even more unbe­ might interpret my explanation as mean­ going to stand idly by while their econo­ lievable. In Qatar, average income will go ing I am supporting or defending those mies go to blazes. Unless the Arab bloc from $5,800 last year to $17,400 this year. And, actions which caused the shotages. I am in Abu-Dhabi it could reach a dizzying $45,- not defending those aclions which caused voluntarily lowers its oil price it is pre­ 000 a year for every man, woman, and child dictable that there may be forced an in the country. That compares with about the shortages, but simply trying to ex­ eventual confrontation that would make $6,000 in the U.S., supposed to be the world's plain how the shortages occurred. the recent Mideast conflict look like a most powerful industrial nation. The American people can deal with picnic. These new riches are, of course, not evenly shortages. What bothers them is the un­ There is no sense in this and it is to distributed with the have-not nations of the known. It is this same unknown that is be fervently hoped that the Arab leader­ Middle East. Egypt, for instance, which has bothering the business world which re­ ship will recognize the problem and deal no oil will continue to have an average per sults in fewer business expansions, caus­ person income of about $240. ing more unemployment and creating with it on a constructive and rational The toughest impact of the new oil prices basis before the confrontation is reached. is not really on us in the United States, it is even more shortages. Time is running out on this, as witness on the already grinding poverty of the less Having to wait in line an hour for the editorial comment in last night's developed poor countries of the world now gasoline is obviously disturbing. Short­ Washington Star-News which is of in­ paying an extra $10 billion a year for energy ages of paper, lumber, and auto parts is terest in this connection. rmports. That is more than all of the devel­ frustrating to people, businesses, and the opment assistance money which these de­ WORRIES FOR TOKYO economy, but we have shown we can live pressed countries now receive from all the with it. What bothers us the most is not Japan is facing unprecedented problems rest of the world combined. India, for in- . that cloud the future of its economic mira­ stance, which spent $420 million on oil in knowing if we will have to wait in line cle and could affect the future development 1973, wlll pay more than three times that for 3 hours next week to get gas or if we of its postwar democracy. The main new ele­ amount for oil in 1974. can get any paper at all next month. It ment, of course, is the price of on, together The huge question now is what these few is bad to be hungry, but much worse to with zooming prices for all sorts of commodi­ small oil rich nations wlll do with the some be hungry and not know how long you ties and raw materials for which the country $90 billion in oil money which they will get are going to remain hungry or how much is enormously dependent on imports. this year alone, for with even the most am­ worse it might get. Consumer prices already are rising at an bitious spending on their own internal de­ annual rate of 20 percent, and the govern­ velopment, they can use only a small frac­ With different segments of our society ment has just been forced to allow increases tion of it? each pointing its finger at the other as averaging 62 percent on refined petroleum Among the ideas is a sort of "PL 480" pro­ the cause and with more apparent in­ products. Japan is undergoing a rare infla­ gram for oil under which poor countries terest in placing blame than in finding tionary experience for a highly industrialized could buy energy supplies from these newly solutions, it is easy to see why big busi­ country, and it is sure to increase the mlU­ rtch nations at reduced prices and easy credit ness, the Congress, and the White House tance of Japanese workers who already are terms. Much in the same way they have ob­ are held in such low esteem at present by seeking 30--percent wage increasP.s in their tained surplus U.S. food commodities in the the majority of the American people. "spring offensive." past. But, given the enormous dislocation of The general increase in costs is bound to the world monetary system, these would still FIRST STEP IS TO ADMIT THAT SHORTAGES EXIST m.ake Japanese goods less competitive in be only cosmetic measures. Obviously the first step toward solving world markets, to the extent that other na­ But, the die has been cast on all this for any problem is to admit the problem ex­ tions are able to hold their own inflation at the Arab nations have now effectively na­ ists. Millions of barrels of oil were waste­ less virulent levels, as seems to be the case. tionalized and taken control of the oil fields fully used last summer because Ameri­ Some Japanese industries-like steel-will which western companies had built over the stlll have advantages in efficiency, but it will past quarter of a century. cans were unwilling to listen to a crippled :require a big turnabout to overcome a pay­ And, the huge amounts of money they have U.S. Government. In May of last year, 5 ments deficit that reached $10 billion last is already going into such new directions as months before the Mideast war and the year and was $1.2 billion in February alone. buying stock interests in all sorts of other resulting Arab oil boycott, I said I feared Japan needs to export in vast quantities to American companies which itself leads to the developing energy crisis would force keep its crowded population of 103 million new possib111ties. For, if the Arabs should a lowering of speed limits to 50 or 55 miles working and reasonably happy. gain control of a couple of major U.S. com­ per hour by the end of the year. That means the ruling conservative poli­ panies such as Ford or General Motors, then ticians have a problem, as well as their big­ the U.S. Government could just nationalize And yet during the heavY driving business collaborators whose operations went them and take it all back. months in late spring and the summer largely unquestioned in the years of spec­ At any rate, and more seriously, it is a when we should have been stockpiling tacular success. The Liberal Democrats led dangerous and to the poor nations on earth, fuel so as to give us sufficient leadtime to by Prime Minister Tanaka face difficulty a harshly cruel game the Arabs are playing. head off this shortage, we were using holding on to their modest majority in the more gasoline than we consumed the pre­ upper house of Parliament, in elections to be held this summer. The major looming issue is vious year. Who was to blame-the inflation. Japan's tradition of consensus pol­ WHY DO WE HAVE SO MANY SHORT­ American people who would not believe itics could give way to increasingly direct AGES IN AMERICA NOW? or the Government which had apparent­ confrontations. ly had conducted its affairs in such a way Tokyo obviously must come up with some as to cause the American people not to convincing answers for assurtn.; its constitu­ HON. JERRY LITTON believe what they said? ents a good life through the economic trials OF :MISSOURI SECOND STEP IS TO UNDERSTAND THE SHORTAGE that lie ahead, in a country that also must solve substantial problems in housing, wel­ IN THE HOUSE OF REPRESENTATIVES The second step one must take in fare and the environment. Hard work and Tuesday, April 2, 1974 solving a problem is to understand the business imagination brought off the postwar problem. It is easier for people to make recovery. Some additional elements of politi­ Mr. LITTON. Mr. Speaker, as a Demo­ the kind of personal sacrifices that must cal genius may be needed to keep the mira­ cratic Congressman, perhaps the political be made if they understand how the cle going. course of action for me to follow in this time of shortages would be to place the problem developed, how long it might This was emphasized earlier last month blame on the Nixon administration, big continue, and how severe it might by an interesting editorial comment by business, or a Communist conspiracy. become. Mr. Arthur Arundel of radio station As a freshman Member of Congress, Uusually a crisis is created when a WAVA when on March 20, 1974 Mr. maybe I could just place the blame on series of events occur at or near the same Arundel said: both Congress and the administration time. For example, the break-in at The amount of money the raw wealth of and suggest that now that I am in Con­ Watergate, while serious by itself, be­ Arab oil shieks has over the past few years gress, I will work to see that it does not came a governmental crisis only when become something of a legend. But what has happen again. combined with a number of events. 9426 EXTENSIONS OF REMARKS April 2, 1974 Many of the shortages in America to­ I have shown that it was the culmination products at about the same time, but ex­ day are the result of a series of events of many events. The fact that these plain why we suddenly end up with which by themselves would not have had events happened at or near the same time shortages of all kinds of products at a major impact on our economy, but is why we had a crisis. Divorce, war or about the same time? when combined, created crisis conditions. bankruptcy may be triggered by one WHY DID WE RUN OUT OF SO MANY The coming together of some events cre­ event, but usually are caused by several THINGS "ALL AT ONCE"? ated the kind of clima;te which can lead events which by themselves may not be First let me answer that by saying that to shortages. Sometimes one event leads of major concern. frequently the same set of circumstances to another and sometimes one shortage Most businessmen can usually with­ that go together to create the shortage leads to another shortage. The energy stand one or two setbacks in a year. What of one product also go together to cre­ crisis is a good example of how a series of most cannot withstand are a series of ~et­ ate the shortage of another. Second, the events led to the shortage and how the backs in 1 year. A farmer can usually shortage of one product can be the main shortage in one fuel helped create a withstand a flood or drought, but can he cause of the shortage of another seem­ shortage in another fuel. The energy be expected to withstand a flood, fire, ingly unrelated product. Third, a number crisis is also a good illustration of how drought, disease and crop failure all in of our shortages occurred in basic com­ the shortage in one area can lead to the 1 year? We would expect our Government modities such as steel, oil, lumber or raw shortage in another seemingly unrelated to withstand several of the events men­ agricultural products which are used in area. tioned earlier as contributing to our en­ the production of a wide assortment of Who among those involved in finding ergy crisis. Unfortunately our Govern­ products in America. the great oil reserves in Alaska in 1968 ment was not prepared to handle all of For example, we now have serious would have thought that in March 1974, these events at one time. shortages in nitrogen fertilizer in the we would still not have started a pipeline WHY DID WE RUN OUT OF ALL FUELS "ALL OF A United States as well as throughout the to bring that oil to America? Who in the SUDDEN"? world. The fertilizer shortage in the 60's would have thought that by the I have had some ask me why we ran United States means we will produce ap­ 70's we still would not have deepwater out of gasoline "all of a sudden." I reply proximately 22.5 million tons less grain ports, productive offshore drilling, or · that you can fill your car with 20 gallons this year than we would if we did not operational nuclear plants? Who could of gasoline, drive all morning, afternoon have the shortage. This is almost twice have predicted that we would finally get and evening and when you run out you as much grain as was sold to Russia in around to cleaning up the air at the will run out, "all of a sudden." The point the famous Russian wheat deal. While same time we started running out of is, we have been running out of fuel over headlines talk of predictions by bakers energy reserves? a period of the last few years. Unfortu­ of a dollar a loaf for bread by the end The Clean Air Act of 1970 not only nately, as our demand for gasoline was of the year-! do not buy this prediction shifted our powerplants from coal--of beginning to exceed supply, we kept using and I do not think the bakers do either­ which we have plenty-to oil, but to low more and we kept passing more laws few have taken note of the fact that the sulfur oil which is limited in supply. which provided for less efficient use of it. fertilizer which we do not have this year Who would have thought that a country The three primary factors which came would produce enough extra grain to with 6 percent of the people of the world together to create the fuel shortage are: make 50 billion loaves of bread which is using a third of the energy of the globe first, increased demand, second, a peak­ a 5-year supply of bread-or 170-year would place emission control devices on ing of domestic production, third, less supply of com flakes-for the entire pop­ automobiles, sharply reducing efficient . efficient use of energy. ulation of the United States. use of gasoline in an area which con­ The first noticeable fuel shortage oc­ Earlier I said we had a shortage of nat­ stitutes more than one-third of our total curred in natural gas. What followed was ural gas and that the shortage of one consumption of all energy fuels-at the a chain reaction as the shortage of one product could lead to the shortage of an­ same time our use of fuel was outstrip­ fuel caused a shift in consumption to other. Did you know that all nitrogen ping our production of fuel? And at the other fuels resulting in a situation where fertilizer in America is made from nat­ very time the effects of these acts were it appeared as if we ran short of all fuels ural gas? to come together, who would have at about the same time. For years our As you might expect, there are other thought the major producer of oil, the Government has regulated the price of contributing factors to the fertilizer Arab world, would decide to embargo natural gas at the wellhead so low that shortage. Fertilizer profits were low in the their exports to the United States? we discouraged exploration for natural 1960's, causing some big companies to get It is obvious from these statements gas while encouraging its use at artifi­ out of the fertilizer business. Low profits that I do not think the major oil com­ cially low prices. meant that few plants were being built. panies go together and decide to create In recent years our natural gas sup­ Just as worldwide demand for fertilizer the oil crisis. Neither do I think Presi­ plies have been so low in comparison to increased, the American Government dent Nixon created it to take our minds demand that many industrial hookups instigated a domestic price freeze. Fer­ off Watergate or to repay favors to oil were made on an "interruptible basis" tilizer plants frozen at record low price companies for their $5 million in con­ meaning that the business had to have and profit levels were unable to expand tributions. alternative sources of fuel before they production to meet increased demand. While I do not think big oil com­ were put on natural gas. This was in an­ We had a similar situation which, cou­ panies conspired to create the shortage, ticipation of natural gas shortages. pled with strikes in Canada against rail­ neither do I think they have done all About two-thirds of our propane is roads and newsprint mills, caused a they can or should have done to solve made from natural gas so when we ex­ shortage of paper in America. the shortage. I also think they have perienced a shortage in natural gas we As the price of fertilizer on the world taken advantage of the situation to also experienced a shortage in propane. market increased well above that of the achieve economic benefits and objec­ The natural gas shortage also caused frozen price in America, fertilizer com­ tives. Their unwillingness to provide the businesses on an interruptible contract panies started exporting their fertilizer American people and the Congress with to shift to their alternate fuels which abroad, creating an even greater fertiliz­ satisfactory answers has been most dis­ were usually middle distillates creating a er shortage in America. Farmers in Red turbing to me. I am equally disturbed shortage in this line of fuels. China could buy American fertilizer last at the inability of Congress, as well as The Government, fearful of unheated year, but many American farmers could the White House, to create meaningful homes in the winter and serious short­ not buy it at any price. and responsible energy legislation which ages in middle distillates, asked refineries This was a situation we saw dupli­ might offend large campaign contribu­ to shift production from gasoline to heat­ cated in many products as their prices tors from the oil industry. Consequently, ing oil and other middle distillates. This were frozen at times of low profit mar­ I have cosponsored a resolution calling created shorter supplies of gasoline and gins while world demand increased. This for the creation of a nine-member Select caused refineries to cut back on gasoline encouraged exports or caused the shift­ Committee of the House of Representa­ production at a time when they began to ing of production away from those items tives to study the relationship between build stockpiles of gasoline for spring and frozen at unprofitable levels. big oil companies and the fuel shortage. summer driving. There are other factors which con­ In spite of the many unanswered ques­ Now you say-alright, I understand tributed to the fertilizer problem. A big tions concerning the energy crisis, I hope how we could be short of most petroleum factor was the Government's decision to April 2, 1974 EXTENSIONS OF REMARKS 9427 encourage farmers to plant all available losses. And this is what they did. There­ in short supply. However, because of the acres which will put nearly 20 million duced herd numbers resulting from the price freeze this did not happen. As a additional acres in production in 1974. A ill-conceived price freeze caused lower result we have had shortages of many second factor is that many of these acres meat supplies which are affecting meat items. have not had fertilizer for many years, prices even this year. Threats of boycotts At this point I think it would be well meaning they will need heavier than and calls for export embargoes fright­ to point out that in a free enterprise sit­ normal applications. Since many of these ened farmers and discouraged them at uation, shortages are usuallY of a short acres were marginal to begin with, this the very time they should have been en­ duration. This is true because short sup­ means they will need heavy fertilization. couraged to produce more. plies of certain products increase the An additional factor increasing the de­ Just imagine that you own a farm­ price of these products, encouraging pro­ mand for fertilizer is the increased price you have room to keep between 10 and duction of the product in short supply for grain, justifying heavier than normal 100 sows this winter. You hear that con­ and discouraging the consumption of its fertilizer use. sumers plan to boycott meat, and that use because of the higher price. Any of these factors which increased there may be food price freezes. Because How high the price goes before de­ demand plus those mentioned earlier of this, you decide to keep 10 sows and mand backs off to equal supply to avert which reduced supply could have oc­ not 100. Irresponsible talk of boycotts by a shortage depends on the elasticity of curred without creating a major ferti­ those supposedly interested in the con­ the demand. Products with a highly elas­ lizer shortage. It was a combination of sumer resulted in less food being pro­ tic demand are those where an increase situations and the pressure of one on duced and higher food prices. in price results in a similar decrease in the other that caused our present ser­ And so we saw a shortage of anchovy demand and where a decrease in price ious fertilizer shortage which will in­ help cause a shortage of soybeans, which results in a similar increase in demand fluence food supply and subsequently the led to a shortage of all protein, which for the product. Products with an in­ price of food to American consumers tr...is raised the price of livestock feed, which elastic demand are those where people year and the next. raised the price of meat, which led to are more interested in the product than Shortages or surpluses occur when food price freezes, which resulted in less price which means that significant in­ supply and demand got out of line. In meat being produced, which caused meat creases and decreases in price are not the case of energy, we had both reduced shortages, which caused even higher food followed by a similar increase or decrease supplies and increased demand. In the prices. It really was not that simple, but in buying. case of fertilizer where we are actually I think you can see how a shortage in For example, there is a very inelastic producing more fertilizer for domestic one product helps create a shortage in demand for food. In the case of most use this year than last, ·~he shortage in another, and how one event leads to products, when the law of supply and America is more a matter of demand out­ another with a combination of events, demand is allowed to work its will with­ racing supply. However, supply could creating a crisis condition in one or more out government intervention, we see have kept up with demand had it not products. prices go up a little when there is a short­ been for the factors I mentioned which WAS OUR ECONOMY VULNERABLE TO A SHORTAGE age of a product. Because of the slightly discouraged production and encouraged SITUATION? higher price, some people decide not to export. Of course, one must admit that the buy the product. This reduction in de­ A LOOK AT FOOD SHORTAGES economic climate in America was such mand provides a downward pull on price, A similar situation occurred in food that it made it easier for the series of meaning that the price did not have to last year. Did you know one of the rea­ events to occur that I have described and go up too much to bring supply and de­ sons why baby chicks were drowned and for them to have a bigger impact than mand back in line. a meat shortage occurred last year was normal on the supply of goods. An in­ However, in the case of food, people became of a change in the sex life of a adequate growth in our economy fol­ do not quit buying food when food sup­ fish off the coast of Peru? This fish, lowed by economic controls set the stage plies are reduced and prices go up. In called the anchovy, is one of the main for some of the events I have mentioned such cases, we have the same number of sources of protein for the world. A change which eventually led to shortages in people bidding against each other for in temperature of the water off the coast America. reduced food supplies. As a result, a 1 of Peru, together with overfishing, Real growth-the economy's expansion percent decrease in food supply can cause caused the government to halt the fish­ less the influence of inflation-has not a 3 to 4 percent increase in the price at ing for anchovy. This caused increased been as high as it should have been in retail level. The inelastic demand for demand for soybeans, a major source of recent years. In other words we have food can work just as quickly against the protein. Remember the skyrocking prices been underproducing. While demand for producer. Since people can eat only so paid for soybeans last year? This result­ goods was increasing in America, it was much food regardless of the price, a ed in shifts to other protein sources and increasing at an even faster rate­ slight surplus of food results in substan­ subsequently to shortages of these pro­ especially for agriculture and raw prod­ tial price reductions to the producer. teins. In other words, the shortages of ucts-on the world market. This caused Products with a highly inelastic de­ one protein source caused the shortage many American products to be sold mand will go up very high in price when of another. It appeared as if we became abroad, creating unexpected shortages in there is a shortage of the product. Prod­ short of all protein sources at once. America. Added to this was the devalua­ ucts with a highly inelastic demand are This automatically increased the cost tion of the American dollar twice in 14 usually essential products or low in price of feed for livestock producers. This months which made American products in relation to the role performed by the caused food prices to increase. Instead of far cheaper abroad. product. Water, air, and food are essen­ encouraging farmers to produce more Then along came price controls which tial and cheap in relation to the role per­ food to offset increasing food prices, the froze prices in America at a time when formed. People need all three regardless Government did just the opposite--they demand and prices were going up around of price. This is why shortages in food froze the price of food at the very time the world. This caused many products are translated so dramatically into the cost of feed to produce food was in­ to be priced higher on the world market higher food prices. This is also why a creasing. than on the American market. Thus, steady supply of food is so important to This resulted in farmers drowning price controls served to create many both the consumer and the producer. baby chicks because the cost to feed them shortages in America by encouraging the Dramatic price changes create economic in many cases would bankrupt the farm­ export of products priced higher abroad hardships for both. An understanding er. The food freeze also caused farmers than the frozen price in this country. of this relationship is essential to an un­ to send milk cows, beef cows, pregnant Some manufacturers shifted produc­ derstanding of farm programs. I might sows and hens to market. It is true farm­ tion from one item to another to escape add that one of the big contributing ers can often increase profits by produc­ production of items frozen at marginal factors to short supplies of food in Amer­ ing more, but when their cost of produc­ profit levels. This created shortages in ica last year was inaccurate estiinates on tion exceeded the market price they some items. Ordinarily these shortages the part of the USDA as to what our food could receive because of the retail food would have driven the prices up for these needs would be in 1973. price freeze, farmers were forced to re­ products, attracting manufacturers to Another item with an inelastic de­ duce herd numbers in an effort to reduce enter the market to produce the product mand-although not as much as that for 9428 EXTENSIONS OF REMARKS April 2, 1974 food-is gasoline. A slight increase in the America in a dramatic way, our country almost as if the Government thought it price of gasoline will not cause many to might have been so dependent on the could make something happen by saying quit driving. This means that if higher Arab world for oil that we might have it was going to happen. As a result, many prices are used to bring supply and de­ reached the point of no return. Because American people do not feel they can mand of gasoline together, the price they showed us what we should have rec­ trust their Government. The American would have to go awfully high. In the ognized, we now have enough time to people would be far better able to con­ meantime millions of Americans with develop our own energy supplies without tend with these shortages if they knew limited incomes would face extreme eco­ being dependent on any country for what caused them, how severe they nomic hardships. This is why the Gov­ something so vital as energy. I can assure might be, and how long they might last. ernment often gets involved when simply you my votes in Congress will be directed I might add that fear of or anticipa­ letting the law of supply and demand toward that objective. tion of a shortage can by itself create a work its will may appear the best solu­ I have long supported the free enter­ shortage. Talk that there might be a tion. Unfortunately, the handling of such prise system and thought of the law of shortage of a product can cause such programs by the Government is such supply and demand as being better than unusually heaVY purchases of that that frequently they result in discourag­ most we write in Congress. In the case of product that a shortage is created and ing production of the product in short the energy crisis where the supply of oil this in turn can create even heavie::- de­ supply. is in the hands of a few, whether it be a mand for a product which before the Usually you will find shortages more few countries or a few companies, the rumor was in plentiful supply. likely among those products with a :;.·ea­ law may not be permitted to work prop­ I remember the story of the man who sonably inelastic demand where product erly and the economic impact on large opened a hot dog stand. Through hard availability is almost more important segments of the population would be too work, good hot dogs, and imaginative ad­ than price. This would include such great in the short run. I might add when vertising, he soon had hot dog stands things as spare parts for a car or tractor, the supply of any product is in the hands throughout the country. He advertised toilet tissue, steel assembly units for a of a very few, the price may be dictated the biggest hot dogs in .h.merica. He had big machine, etc. In cases where the by design more than demand. signs on the highway, radio commercials, product was not as essential as food or A SUMMARY OF THE CAUSE OF THE SHORTAGES regular newspaper ads and exciting tele­ low in price compared to the role played vision commercials. One day his son

802 National-ElUott sold in 1959 by Elliott According to the Washington Post of July machine gained 164 of these machine"'; while Automation, Ltd., of the United Kingdom. 6, 1973, and the Wall Street Journal of Au­ the United States, reportedly he.-:; never National-Elliott is a General Electric sub­ gust 8, 1973, James Binger, Chairman, Honey­ owned more than 77 of them. sidiary. well Incorporated, Minneapolis, told a Mos­ Recent reports about agreements signed In 1966, Standard Cables and Telegraph, cow news conference his firm had begun ne­ by General Dynamics Corporation wl1;h the Ltd. installed a Standard 7 x 8 instrument gotiation with the Soviet government on two Soviet State Committee for Science and Tech­ landing system at Moscow's D. Sheremetyeva contracts involving several million dollars. nology are also disturbing. The fiv-e-year Airport. Standard Cables was then a subsidi­ During a recent aviation-space industries agreement for scientific and technological ary of ITT. exhibition, Soviet interests were noted. U.S. cooperation covers such defense-related In 1968, a second-generation Control Data companies at the exhibition included: West­ fields as ships and shipbuilding, telecom­ Corporation 1604 System was installed at the inghouse Electric Corporation, Bendix Cor­ munications equipment, asbestos mining and Dubna Soviet Nuclear Faclllty near Moscow. poration, Collins Radio Company, Texas In­ processing, commercial and special purpose In 1972, Control Data sold the Soviet struments, Inc., Boeing Corporation, United aircraft, computer-operated microfilm equip­ Union a third-generation CDC 6200 system Aircraft Corporation, Lockheed Aircraft Cor­ ment, and navigations and water buoys. computer. poration, Raytheon Corporation. Also upsetting is Fairchild Corporation's For these systems, Control Data's operating U.S. News and World Report of January 28, agreement with Communist Poland for sale statement has impr·oved by about $3 m111ion 1974, said International Business Machines of U.S. integrated circuit technology used in sales over the past three years. And the and the Univac Division of Sperry-Rand were extensively in modern weapons systems and Soviet Union has gained 15 years in computer competing in two areas for contracts for two in third-generation computers. technology. data systems for Soviet aviation. The February, 1974 issue of Armed Forces As 1969 ended, it was estimated that Red Star, the official organ of the Soviet Journal International reports this: The So­ Western computer sales to all of Communist Army used the Remington-Rand Univac com­ viets are asking major U.S. aerospace firms Europe and the U.S.S.R. were running at puter to illustrate an article on Soviet com­ (Boeing, Lockheed, McDonnell Douglas) to $40 million per annum. In great part, three puters with captions translated into the Rus­ sell them, on a major scale, the manufactur­ came from American subsidiaries. sian language. ing technology and managerial expertise to In 18 months during 1964-65, Elliott In Science magazine of February 8, 1974, build wide-bodied commercial jet liners. Automation delivered five Model 503 com­ Mr. Wade B. Holland, Editor, Rand Corpo­ Development of the Kama River truck fac­ puters to the U.S.S.R. The Elliott 503 ranged ration's Soviet Cybernetics Review, stated: tory will undoubtedly contribute further in price from $179,000 to more than $1 "There are no rigid standards. Getting a to Soviet military capability. Quite obvious­ million, depending on its size. license to export depends on how much ly any truck can haul troops and ammuni­ By the end of 1969, General Electric­ weight you can throw or whether your timing tion to the front as easily as lt can trans­ Elliott Automation sales to Communist is right. port corn from the field. countries were four times greater than in Even as I am worried about the export of In the Soviet view, the competition be­ 1968. computer technology to the Soviet war ma­ tween Communism and U.S.-based non-Com­ This market accounted for one-third of chine, I am worried about export of preci­ munism for scientific and technological General Electric-Elliott's computer exports. sion grinding machines for manufacture o1 superiority relates especially to direct mili­ Other G.E. machines, including a Model 400 precision miniature ball bearings. tary power. For there, as Soviet leaders have made in France by Compagnie des Machines Ball bearings are an integral part of many always seen it, rests the key to their ultimate Bull, were also sold to the U.S.S.R. weapons systems; there is no substitute. The goal of world domination. It follows, there­ Olivetti-General Electric of Milan, Italy, entire Soviet ball bearing production capabil­ fore, that strengthening the Soviet armed also has been a major U.S.S.R. supplier of ity is of Western origin. All Soviet tanks, all forces must forever have first call on all scien­ G.E. computers. Soviet military vehicles, run on ball bearings tific-technological resources and capabilities. In 1967, Olivetti delivered $2.4 million manufactured on Western equipment--or on Because, again and again, Soviet scientific­ worth of data processing systems to the copies of Western equipment. technological resource capabilities have U.S.S.R. This was in addition to Model 400 All Soviet missiles, all Soviet related sys­ ranged from inadequate to dismt~.l failure, and Model 115 machines already sold. tems-including guidance systems-have U.S.-based superior resources have been In 1967, English Electric sold the U.S.S.R. bearings manufactured on Western equip­ tapped. As they have been, so shall they con­ its System Four Machine with microcircuits. ment--or on Soviet duplicates of Western tinue to be-unless--the Congress of the This machine incorporated RCA patents. It equipment. United States shuts off the supply of this was similar to the RCA Spectra 70 series. Bryant Chucking Grinding Company, which, like the U.S. scrap metal of the 1930s Over the years, the U.S.S.R.'s largest single Springfield, Vumont, has been a major sup­ must one-day find its end result in a Soviet­ supplier of computers has been International plier of ball bearings processing equipment inflicted nuclear Pearl Harbor. Computers and Tabulation, Ltd. of the to the Soviet Union. I respectfully commend this problem to United Kingdom. The latter also licenses In the 1930s, when the U.S. Government the attention of this Committee. I do so with RCA technology. It has supplied at least 27 and corporations were providing ma,sive great concern. I do so in the hope that seri­ of 33 large computers to the Soviet Union. infusions of industrial technology into the ous consideration be given to badly-needed In November, 1969, five of the firm's 1900 Soviet Union, Bryant shipped 32.2% of its legislation to bring an end to what should series computers valued at $12 million, went output to the U.S.S.R. In 1934, Bryant never have been started. Provision to the So­ to the U.S.S.R.: These were large, high­ shipped 55.3% of its output to the U.S.S.R. viet Union and other Communist countries speed units with integrated circuits. With­ In 1959, under the then slightly relaxed re­ of anything which, by any stretch of the out question, they were well in advance of strictions commensurate with Khrushchev­ imagination, could possibly be used for mili­ anything the Soviets were able to manu­ decreed "peaceful coexistence," Bryant tary purposes against us. facture in the computer field; even by copy­ was able to sell 46 Centalign B machines to Mr. Chairman, again, I thank you for this ing previously-imported technology. the U.S.S.R. In 1960 the U.S.S.R. placed an opportunity. I thank the Committee for its These machines are capable of solving order for 45 similar Bryant machines. The attention. I request, most sincerely, serious mUitary and space problems. But, being ma­ U.S. Department of Commerce indicated will­ consideration to the facts which I have set chines, they cannot distinguish between ingness to grant Bryant an export license. forth, and to my plea for sanity in the name military and civilian problems. There is no Bryant accepted the order. It was not filled, of U.S. freedom. way that a Western firm or government can however, because of Defense Department ob­ prevent Soviet use of computers for mllitary jections that the machines would be used for work. production of bearings utilized in strategic In 1970-71, came the ultimate insult: components for Soviet military end items. MASS TRANSIT NEEDS IN DADE The Soviets indicated that if International The Bryant-Commerce Department effort Computers, Ltd. of Great Britain was allowed to export the Bryant machinery resulted in COUNTY, FLA. to sell two big, fast, highly-sophisticated an investigation by the U.S. Senate Subcom­ 1906A computers, American scientists would mittee on Internal Security. The Subcommit­ HON. WILLIAM LEHMAN be allowed to participate in further research tee's report stated: at the Serpukhov Institute of High Energy "We are now concerned ... the decision to OF FLORIDA Physics. The key equipment at Serpukhov, grant the license was a grave error." IN THE HOUSE OF REPRESENTATIVES Yet, in 1972, the Commerce and State De­ including the bubble chamber, had come Tuesday, April 2, 1974 from the West. partments approved Bryant's export to th~ The Soviets gave "ironclad" guarantees not Soviet Union of 164 precision grinding ma­ Mr. LEHMAN. Mr. Speaker, Han. to use these new British (RCA) 1906A com­ chines of a new-generation so sophisticated as John B. Orr, Jr., mayor of Metropolitan puters for military research. But, gentlemen, to be able to manufacture miniature ball Dade County, Fla., recently testified be­ we don't know how to prevent the Soviets bearings to tolerances of 25th mlllionth of fore the Subcommittee on Transporta­ from using the 1906A for m111tary purposes an inch. against us. If this, in itself, is not a bit ch1lling to tion of the House Public Works Commit­ Business Week of April 28, 1973, published those who recognize the importance of such tee on H.R. 12859, the Unified Trans­ word that the Soviet Union had contracted precision equipment in the hands of the So­ portation Assistance Act of 1974. for an IBM third-generation 370 computer viet Union permit me to add the information Mayor presented his statement on be­ system. The price: A reported $10 million. that while, in that manner, the Soviet's war half of the U.S. Conference of Mayors, April 2, 1974 EXTENSIONS OF REMARKS 9431 as well as to spell out the enormous needs and the Administration--of an emergency Third, adequate and guaranteed funding to ior mass transit assistance in south program calling for an outlay of at least meet all needs; and $400 million in 1974 to help expanding tran­ Fourth, a single Transportation Trust Florida. sit operating fleets as quickly as possible. For Fund. Mr. Speaker, I fully agree with Mayor the most part, such an emergency program I shall now demonstrate, through the ex­ Orr, and am inserting his testimony into would be directed toward placing more buses periences of Metropolitan Dade County, Flor­ the RECORD for the attention of my col­ on the streets. It also would require the ida, the justification for the National Transit leagues: cooperation of the automobile manufactur­ Legislative Program of the U.S. Conferell.ce of Mayors. TESTIMONY BY HON. JOHN B. ORR, JR. ing industry in tooling up to produce the Urbanized Dade County is a. 20th century Mr. Chairman, members of the Committee, buses we need. In this respect, we must think in terms of crash-efforts that were success­ American city of 1.3 million, with relatively I am John B. Orr, Jr., Mayor of Metropolitan low density development spread over many Dade County, Florida, and a member of the ful in providing aircraft in times of war. An immediate refinement of the Federal miles. Though there is a downtown, the Cen­ Transportation Committee of the U.S. Con­ tral Business District of Miami, it provides ference of Mayors. I am here on behalf of the Highway Act, which, as adopted in 1973, gave public transportation, for the first time, a. only 8% of the jobs. There are 12 other main Conference of Mayors as well as Metropolitan employment centers scattered throughout Dade County. The U.S. Conference of Mayors share of the assured source of funds of the Highway Trust Fund. Such refinement of the the urbanized area. is the national association of cities of over The County has completed its authorized :30,000 population, represented by their chief Federal Highway Act shold be directed not only toward placing public transportation on Interstate Highway System and other urban elected officials, their mayors. freeways. "l'hese roads are badly overcrowded I appreciate this opportunity to appear a. par with consideration given highway im­ provements, but also toward national and in rush hours and traffic moves very slowly. before this Committee to comment on H.R. In 1972 there were at least 50 miles of arterial 12859, the Unified Transportation Assistance region-wide planning on the basis of total streets and freeways carrying 150% of their Act of 1974. An analysis of that bill is sub­ transportation needs. The ultimate goal designed capacity, and at least 100 other mitted to the Committee as part of our for­ should be the creation of a single Trans­ miles of arterials carrying 115% of capacity. mal presentation. portation Trust Fund. Since 1972, vehicle registration and gasoline Rather than addressing myself to the spe­ The elimination without any further de­ consumption, and therefore miles driven, cific provisions of UTAP, allow me to present lay of all impediments which thus far have have increased 18%, and almost no new roads the views of the U.S. Conference of Mayors made ineffective the highly desirable pro­ have been opened. When traffic exceeds de­ on a national transit legislation program for cedure to providing federal aid for transit signed capacity on roads, the result is that 1974. As the Committee will see, our pro­ improvements through the so-called contract it slows down. posals demonstrate the funding level for authority procedure. This procedure, already The bus system 1s publicly owned and has · UTAP is woefully inadequate. I will then de­ incorporated in federal legislation, is de­ been gradually improving service. But buses scribe our situation in metropolitan Dade signed to assure the necessary funding over currently do not provide adequate transpor­ County, and justify why we need a fixed a period of years-such as a. span of five to tation. The running times are slow and serv­ guideway transit system. ten years-so that public transportation sys­ ice between many points is not available. NATIONAL TRANSIT LEGISLATIVE PROGRAM tems can caiTy out the large projects which We have a transportation "problem" in FOR 1974 cannot be accomplished overnight or in a Dade County. Mobil1ty 1s limited, inefficient, single year. This contract authority proce­ slow and expensive. The private car 1s relied A massive positive national program for dure is an excellent idea, but it must be improving and expanding public transporta­ upon disproportionately. The large elderly made to work. population, many of whom cannot drive, and tion facilities and operations in our urban In taking this immediate action, we must, regions, as well as in smaller communities, is the poor and the young who do not have now mandated by a combination of critical of course, keep in mind long range goals-­ cars, are severely restricted in their mobillty. factors. Besides the sheer necessity of pro­ such goals as developing a National Urban The transportation problem limits employ­ viding greater mobility for people as a prime Transit Plan and Policy. Such a national ment opportunities because the people can't public service, these critical factors also in­ plan and policy should be developed as get to the jobs and restricts the capacity of clude the pressing necessity to utilize e:m­ quickly as possible. many residents to participate in the full ciently-and conserve--our sources of energy It has been suggested that a National Urban variety of our community life. and the real threat that life itself, as we Transit Plan and Policy should be developed In moving to solve this problem, we have know it in our urban areas particularly, by the Department of Transportation and concluded that we cannot put additional re­ could become grievously injured if drastic Congress by 1977. There is, however, a real liance on the private car. Indeed, we cannot measures are not taken to protect the en­ danger in setting such a deadline four years use the automobile to the extent we now do. vironment. from now. It could lead to procrastination The facilities for automobiles are used to Our new national program for improving providing we do not set earlier deadlines for capacity. The roads and streets are full and and expanding public transportation must planning. While longer range planning may the city is full of roads. Parking lots are full be an ideal objective for many reasons, we and the city is full of parking lots. have a thrust comparable to the all-out ef­ At the prooent time, 22% of our urban fort and support that we have given to space also should not lose sight that planning 1s land, and over 40% of the Central Business exploration. Further, this new thrust for also an immediate and continuing process. District, is devoted to roads and parking lots. public transportation must be elevated to Immediate and continuing planning must go We cannot increase that capacity without the crash-program level comparable to space hand in hand with long range planning. unacceptable costs. To build more freeways exploration, free from the time-consuming Most important of all is the mandate for means destroying homes or businesses. To restraints of red tape that so often hampers immediate action at the federal level. create more parking means taking more space the legislative and administrative proce3s. Coupled with the need for immediate ac­ from what the city is for. With such a. thrust a.s the over-riding ob­ tion is another extremely important factor. Our city has spread out largely because of jective, the following program is proposed A massive program with increased funding the automobile, and this spread contributes for action in 1974: for public transportation will have litU~ to our transportation problem. To try to A combined effort by Congress and the Ad­ chance of success if Congress and the Ad­ build more automobile facilities would re­ ministration to increase to at least $3 bil­ ministration do not provide the assurance quire greater dispersal as commercial, indus­ lion a year the capital grant program of the that large appropriations of funds wm actu­ trial and residential uses are converted to Urban Mass Transportation Administration. ally be provided for public transportation roads and parking. This program should be assured for a mini­ systems. We need to encourage greater concentra­ mum of $15 billion for the next five years, There must be the immediate elimination tion of facilities. with full realization that this outlay may of the impediment that has stalled many Let us look at this matter from the point have to be increased as time goes by because transportation improvements in recent of view of the function of cities. What are of inflationary pressures and the identifica­ years. cities for? Why are there cities? The reason tion of new needs. The impediment and barrier has been the for cities is to create the marketplace--of impounding of transit appropriations by the A combined effort by Congress and the Ad­ ideas, of goods, of culture. The marketplace Office of Management a.nd Budget. requires direct confrontation between peo­ ministration to provide, for the first time at To appropriate funds for public transpor­ the federal level, a.n adequately funded pro­ ple. Physical concentration is necessary for tation but then to impound the funds is a confrontation. gram of financial assistance in the opera­ practice that no longer can be tolerated. tion of public transportation systems. State To a large extent, the private automobile Such was not the case for space explora­ hinders this function simply by taking up and local governments no longer can bear the tion. Such cannot be the case if we are to responsibility of providing financial assist­ meet the pressing needs for improved and too much space-in streets and for storage. ance for transit operations alone. The time expanded transportation on earth. Streets are crucial elements in the mar­ for federal government help is long overdue. This can only be effected if four factors ketplace, as they tie facllltles together and As a beginning, the federal government come together: make communication possible. Streets filled should provide $600 million a. year in finan­ First, local control over urban transporta­ with auto tra:ffi.c become barriers instead of cial assistance for transit operating costs. tion projects; facilitators of communication. The adoption by the federal government-­ Second, full flexibility between high -Rays We must also remember that cities are de­ again through a combined effort by Congress and mass transit, capital and operating costs; pendent on the resources of the land that 9432 EXTENSIONS OF REMARKS April 2, 1974 supports them, and cannot consume re­ We balanced the considerations of service 4. Pollution-With present technology, sources beyond the capacity of that land to and cost. We committed ourselves to a $700 buses cause far more air pollution and the produce. The private automobile, used as the million system, and passed a $132.5 million multiple sources make abatement difficult. primary transportation mode, already clearly general obligation bond issue. The electric system produces pollution at is straining the resource base of the world's Let me spell out the reasons for our deci­ only one source, so reduction is simplified. cities. Even smaller cars are profligate in sion to choose this system. Bus pollution is emitted where people are, their consumption of fuel, metals and other 1. Cost-It has been suggested that fixed while electric generation emissions are gen­ products. guideway transit systems are unjustifiably erally away from concentrations of people. I hope that, in planning for the transpor­ expensive. In fact, fixed guideway systems are We saw no evidence that buses can be tation future, we can set aside the question cheaper than freeways. In urban Dade made as quiet as the rail cars. Much of the of air pollution. This health problem, caused Oounty, a four lane freeway costs $15 mil­ rail system will be elevated, removing the mostly by cars, is increasing in severity in lion per mile. The land and guideway for source of noise from the pedestrian and Dade County yearly, and causes intolerable our system will cost $12 million per mile. The residences. situations in many cities. Apparently, there capacity of a four lane freeway is 10,000 per­ 5. Safety-The national experience is that will be cars that produce minimal pollution sons per hour. Our system will handle up to rail transit has half of the accidental injury by latter in this decade. 15,000 persons per hour and I might note rate of bus transit. We must bring about a change in trans­ that the Toronto system can carry 39,000 6. Utilization-Part of the conventional portation practices, changing many trips persons per hour. wisdom about public transportation is that from private car to public modes. The freeway requires four times as much rail systems cannot work except where there To achieve this, we must proceed in two land. is high density residential and business de­ ways simultaneously-improving public It has been suggested that the job could velopment and highly concentrated travel transit while discouraging autos. be done by improvements in bus service that into and out of a central business district. There are two strategies for reducing auto would require far less capital. This question We believe that, on the contrary, a large use. One is pricing-increasing the cost of involves a definition of the job that needs geographic area like ours requires the high gas, parking, tolls; the other is withdrawing to be done. To provide the service charac­ speeds possible only by rail for successful resources-reducing space, parking and teristics that will challenge the car, the rail transit. It is the speed that gives our system streets, and limiting fuel. system is necessary. the flexibility that can enable people to travel The pricing strategy is a license to drive The capital costs are clearly higher than by transit. Our system will run to within for those who can afford it. If cars hurt cities, for buses alone. You pay more, but you get walking distance of 380,000 residents and there is no justification for this license. more. Over .half, $400 million, of our costs 302,000 jobs. I believe we should withdraw resources is for construction of the guideway. It is the from the private car and devote some of those guideway which gives the advantages of resources to the public modes. I see no evi­ 8peed, safety, comfort and lower noise pollu­ BEEF CATTLE INDUSTRY dence that America can afford both cars and tion. transit. We should widen sidewalks so pe­ The rail cars cost more than buses. Our destrians can move, create bus lanes and 380 vehicles will cost $225,000 each, and will bicycle lanes from street space formerly de­ seat about 70. A new bus today costs $38,000 HON. ROBERT PRICE voted to cars, husband our fuel resources, and seats about 50. The rail car will be de­ OF TEXAS giving buses and trains all they need, and preciated over 20 years while the bus has an IN THE HOUSE OF REPRESENTATIVES change our ordinances to limit new parking economic life of only 10. Nevertheless, the facilities, instead of requiring them in new rail car costs $160 per seat per year while Tuesday, April 2, 1974 buildings. We should withdraw the resources the bus costs about $85. ~ Mr. PRICE of Texas. Mr. Speaker, as of street space, parking space and fuel. But again, you get more. The rail vehicle I believe these measures are a matter for provides the advantages of speed, comfort, a fourth generation rancher and cattle­ local government. We in Dade County are quiet, safety, and less pollution, and pro­ feeder myself, I want to see the $20 starting to accept our responsibility. On one vides greater service. billion beef cattle industry prosper and major commuter route, we are closing two While capital costs are higher, operating grow as I feel this is one of the great lanes to private cars, creating a bus lane and costs will be lower for our rail system. examples of a pioneer free enterprise a carpool lane. On another overcrowded free­ The rail system will cost only 41% of what industry which produces the No. 1 way route, we are adding a lane, but it will buses cost to opera~6¢ per vehicle mile nutritious food for the American only be used by buses. compared to $1.11 for buses. The rail vehicles family. Beef. But at the sa,me time, public transit must are substantially larger than buses. The rea­ be improved. It must be made faster, more son for this is the labor intensiveness of Mr. Speaker, live cattle prices have reliable, more comfortable, more convenient buses. When you add capacity, you add driv­ come down 15 percent to 20 percent dur­ and reasonably priced. ers to the same extent. Labor costs are 61¢ ing the past month, resulting in cattle Since public transportation is in fact of the bus costs of $1.11 per mile. With rail, feeders suffering losses of $75 to $125 per cheaper, as I will show, I want to see a labor costs are 56% of rail operations, 26¢ head on meat animals marketed; and situation where transit is so good people of 46¢. retail beef prices have not come down can have the choice of giving up a car and Let us look now at the advantages of rail. proportionately; and current retail prices saving money. To do this, transit must pro­ 2. Speed--The rail system has a clear ad­ for beef have apparently met some con­ vide transportation tha,t competes with the vantage in speed. Presently, the average speed service qualities of the automobile. for all buses is 11 m.p.h. This is reduced sumer resistance ; and retailers dras­ It is in the transit improvement side of somewhat in rush hours. The average auto­ tically reduced their featuring of beef the strategy that we need federal help. And mobile speed is 23 m.p.h., but in rush ~our following the truckers' strike. it seems to us equitable and appropriate this is lowered to the 11-12 m.p.h. level of The public is getting hit with higher that this help should be forthcoming. buses. The average speed of our rail system retail prices for beef at the same time We need the federal help because the will be 23 m.p.h. There will be no reduction farmer's prices are going down. costs of adequately improving transit are in rush hour. The average speed of the trains will be The spread between retail prices and beyond the financial c·apacity of the na­ farm prices for choice beef jumped 10 tion's cities. As a general matter, the basic twice the current level for buses, equal to revenue source for cities, the property tax, that of cars-but twice the rush hour car cents per pound for the week ended is at a level where any increase would ap­ average. Bus speeds can be improved on February 16. Retail beef prices increased proach confiscation, and would impose un­ some routes by making express lanes and from an average of $1.48 per pound in fair hardships. bus-only lanes, but the opportunities are mid-February to an all-time record of There is a strong federal interest in im­ limited. $1.53 per pound at the same time that proving mobil1ty in urban areas. Fuel and Currently, the bus trip the length of Miami farm prices for choice steers had fallen materials conservation is a national matter. Beach takes one hour. The transit schedule will be 18 minutes. There is little opportunity $12 per hundred pounds. Many urban areas are multi-sta,te so we are Prices for live cattle have been falling dealing with interstate commerce. As a for improving bus schedules on this route. mobile citizenry, the ab111ty to move about Miami Beach to downtown Miami now takes since mid-February, while there are in­ in any city, affects us all. 45 minutes by bus. The transit will take less dications that retail prices and the retail Let me address myself now to the question than 20. spread are at, or close to, record highs. 3. Service-Our investigations gave us no It is time for retail prices to reflect of the kind of transit that we need. We in evidence that the bus can offer the quality Dade County studied this issue and opted for of service that a fixed guideway car can. the lower prices for live animals. It would a grade-separated, fixed guideway backbone be helpful if retailers were to promote system, supplemented by express feeder The rail cars are smoother in ride and in acceleration and stopping and are roomier. beef through special sales programs. If buses. It is not an "ei.t'her/or" system, but retail stores would reduce their profit a comprehensive and balanced approach that Buses cannot provide the facilities that make builds upon and improves existing capacity. it easier for the elderly. Rail cars can be margins to something like normal levels, We considered and rejected an all-bus sys­ entered without steps. The smoother ride they could pay the farmers more, or ten:t. We cannot continue reliance on cars. is far easier for the infirm. charge consumers less, or both. April 2, 197 4 EXTENSIONS OF REMARKS 9433 The beef industry groups assure con­ prices for their grain this past year than and have the incentive to go on produc­ sumers· that ample supplies of beef cat­ in many years previous, their costs have ing beef in desired volume. tle are available now and for the next also doubled. Consequently, even with We must recognize, though, that we several months--and that they should be the higher prices, many farmers will not may never again see the very cheap meat able to buy beef cheaper. break even. Grain sorghum, I believe, and food of former years. The energy I have several suggestions that we wlll fight any thought of export controls shortage, worldwide demand for feed and might follow in order to help not only the on grain. This is not the answer to the food and sharply higher production costs beef producer but also the consumer. cattleman's problems. will not permit beef prices as low as the They are as follows: The grain farmers are dependent upon public became accustomed to. The short­ First. That chain stores be urged to the cattle feeders and the consumers are ages and costs of grain, fertilizer, protein continue and expand the featuring of dependent upon both for their future supplements, feed phosphates and even beef and do all possible to move the cur­ food supply. I encourage you to help in baling wire are contributing to the rising rent oversupply of beef that has stacked every way possible to get the cattle feed­ costs, while limiting the production of up in feedyards and in cold storage; and ers back on an even pattern of business food. Some supply shortages stem in large Second. That the DOD of the United without so many unusual interruptions measure from the price control system States be urged to modify their specifica­ from Government and economic agen­ and its distortions of an agricultural tions for beef purchases and move for­ cies. economy which can function efficientlY ward their purchase dates, in order to The cattle industry has always helped only under the law of supply and take advantage of current low prices; and itself in the past. They have initiated in­ demand. purchase domestic beef for our overseas tensive beef promotion campaigns, solic­ Also, when the Congress banned use bases. iting the help of supermarket chains of the cattle growth stimulant stilbestrol Third. That Congress and the admin­ in featuring beef and also assuring them in 1973, beef suppliers were reduced by istration take steps to immediately end of a constant supply as long as prices re­ the equivalent of 1 million head, and the economic stabilization program on main favorable for production. feed costs jumped by as much as 15 per­ food, which has not been successful but The cattle feeding industry has been cent-still another factor in higher costs which has disrupted normal marketing plagued with boycotts, price freezes, to consumers. If we are to produce the patterns of beef and caused cattle feed­ truck strikes, increased costs of feeding good protein food which is in demand, ers to lose an estimated $1 billion since and so many factors wrecking its normal we cannot afford to eliminate--on a tech­ September; and operation that one wonders how any nicality of an unwise law-a production Fourth. That the meat grading branch industry could be expected to survive whose safety was proven in 20 years of the U.S. Department of Agriculture with these problems. of use. DES has been reinstated but is of be urged to change present grading Consumers can expect a gradual return very little value because of uncertainty standards, taking into consideration that to more stability of beef supplies and to reimpose the ban plus restrictive we have a shortage of grain in the coun­ prices if the Government does not again guidelines for its use. try, that cattle gain less efficiency during disrupt the beef production and market­ The cattle industry also recognizes the the last 30 to 40 days of normal feed­ ing system. seriousness of the energy shortage and ing-it takes more pounds of grain per The ill-advised beef price freeze of will do all it can to conserve fuel. I also pound of gain to put on the excessive 1973 caused problems for consumers as must emphasize that adequate beef sup­ fat-and that the upper end of the well as · the cattle industry-artificial plies depend on fuel supplies for all seg­ present U.S. good grade is acceptable to beef shortages, abnormal fluctuations in ments of the production and marketing most consumers; and beef supplies and prices, and, at times, system. A shortage in just one place, like Fifth. That cattle feeders support and higher retail prices than would have cattle delivery trucks, can and did dis­ help National Cattlemen's Association prevailed under continued operation of rupt the entire system. and the National Livestock and Meat a free market. We may not see lower beef prices dur­ Board in their efforts to maintain liaison The only solution to these problems is ing the balance of 1974, but we can hope with chain stores and to expand the pro­ to eliminate artificial controls on agri­ for more stability of supplies and prices motion of beef. culture and food, particularly where if the present price control law is not My real concern today is that unless commodities like beef are involved, and renewed. Price controls on beef have been something is done immediately, the cat­ let the free market system work. In this tried 4 times in the past 28 years, and tle feeders will be bankrupt and will not way, we can help assure greater longrun not once has this mix of politics and eco­ be able to continue feeding cattle. As a beef supplies, with more stable prices nomics worked to the benefit of either cattle feeder myself, I know first-hand for consumers and adequate returns for consumer or the cattle industry. that the losses, which have been sus­ producers. The cattle feeding industry is heading tained within the last few months and One of the freeze-caused disruptions for a wreck, unless the market situation weeks, are only indicative of the overall was a recent supply-demand situation turns around quickly. Even though the situation facing every cattle feeder in the which brought the largest drop in live first three-quarters of 1973 were very business. Not only will the present low cattle prices in history--decreases of up profitable for feeders, they have suffered prices of fat cattle break those who are to $20 per hundredweight in the fall of unprecedented losses the last 5 months, feeding cattle, but it will also shake the 1973. Because of high feed and other because of: First, Government interfer­ banks and the other financial loan com­ costs, along with the disastrous break in ence in the form of a discrlminatory price panies that have been loaning large cattle prices, our feeding industry lost freeze last July; second, the energy cri­ amounts of money to develop and keep money at a rate of one-quarter of a bil­ sis, which caused a "recession" psychol­ the cattle industry in business. If this lion dollars per month. You know full ogy, resulting in consumers buying less happens, the cattle feeding industry will well that no cattle feeder can stay in beef; third, the truckers' strike; and be set back years. business and keep producing beef for fourth, increased feed costs. Not only is the cattle feeding industry very long with losses of $100 or more per On January 1, 1973, Texas had 2,215,- in jeopardy at the present time but so head. 000 head on feed; on February 1, 1974, is the future meat and food supply of the The larger beef supplies did bring we had 2,340,000 head on feed-a 5.6- Nation. The present disastrous prices of slight reductions in retail prices before percent increase. Marketings in February fat cattle are also having a serious effect Christmas and consumers enjoyed good and March have been so slow, I esti­ on cow-calf operations. It takes years to beef values. mate that 30 percent of the cattle that build a cow herd to supply the steers and However, the industry as well as myself should have been marketed in February heifers for feeders. For adequate supplies had warned the Government, placements and March have been carried over to .of beef in the future, it is imperative that of cattle in feedlots were reduced in 1973 April. This means we will have a long ·steps be taken to alleviate this situation because of the freeze, high costs and supply for the next several months or an 1n the cattle industry. prospective losses. Feeders st111 are not abundance of cattle for consumers. Some people have argued that export back to levels which permit most feeders Regarding cattle losses, the average .controls should be applied to grain to to break even or show a profit. We will loss is running from $100 to $125 per drive prices down. Although it is true need consistently strong cattle prices if head, depending on how much the owner that grain farmers have had higher feedlots are to meet today's high costs paid for the feeder calves. The biggest 9434 EXTENSIONS OF REMARKS April 2, 197 4 loss that I have been able to confirm was per hundredweight, considering today's new automobile once every 3 to 5 years. $178 per head. cost of grain and feeder calves. They will grumble about the price of An example: One company that mar­ Additionally, placements during Feb­ a dress occasionally. They will complain keted 27,569 head in October-November­ ruary were down about 30 percent, com­ about the rent when it increases. They December lost $2,289,901 or an average of pared to the same month last year. Thi§ will shake their heads in dismay over the $83.06 per head. On 10,175 head market­ means there could be a short supply of fat price of new furniture when they make ed in January and February, their losses cattle coming out during the summer, an occasional purchase. were $566,215 or an average of $55.65 per which would mean higher prices for con­ But food-that is different. At least head. sumers. If feeders continue to buy fewer three times a week, and often three times In Texas, we should market 398,700 replacements or to pay less for them­ a day, "It costs too much." head per month. If the average loss is both of which they are sure to do-it Mrs. Housewife echoes it. The college $143 per head, we are losing in Texas will mean that farmers and ranchers who student in the dormitory echoes it. The alone at the rate of $1,900,000 per day, produce the feeder calves will probably truck driver at the· lunch stop echoes $13,303,000 per week or $57,014,000 per have to sell them below cost. Thus, they it. The pensioner echoes it. The person month. will stop the expansion of their cow tearing out food stamps at the checkout Grain sorghum on March 1 cost feed­ herds, which amounted to a 5 percent in­ counter echoes it. ers $5.30 per hundredweight. That's an crease last year, and consumers will feel "If we could just roll back food prices," 18-percent increase since October 1- the effects 2 or 3 years from now. If the they say, "we could eat more food and $4.50, a 74-percent increase since May 1- consumer demand for beef continues, as better food and still have more money $3.05 and double that of November 1, it surely will, then the shorter supplies available to spend for the luxuries of 1972-$2.50. The total feed costs now are will mean higher prices for beef in 2 or 3 living." about $110 per ton, compared to about years. This philosophy is held, consciously or $65 per ton a year ago. As I said before, the solution is not unconsciously, by perhaps more Ameri­ Since it takes 9 pounds to 10 pounds of price controls. That is the cattle indus­ cans than any ::>ther economic concept. feed to put on 1 pound of gain, the cost try's biggest problem now-Government The concept is false. It simply does not of gain has increased from about 30 cents price controls, which upset the market­ work that way. per pound a year ago to about 53 cents ing patterns of cattle. The beef industry Nevertheless, periodically pressures to per pound in March. These figures in­ responds to and adjusts to the law of "do something" build up in our society­ clude interest on investment and normal supply and demand remarkably well. first through the consumer route, then death loss. Cattlemen want to increase produc­ fanned by politically ambitious but eco­ Most feedyards in Texas are custom tion-to supply the consumer demand­ nomically irresponsible advocates, the feedyards, meaning that they furnish and will do so, if left alone. movement eventually finds political ex­ "room and board" for the customer's­ Another problem facing the cattle in­ pression of such force that governments owner's-cattle. Many customers are go­ dustry is the suspension of meat import succumb to the pressures and take ing out of business, however. If this con­ quotas. On December 21, 1973, the Sec­ strictly counterproductive action in the tinues, the percent occupancy in feed­ retary of Agriculture announced that form of strict price controls in the food yards could drop below the breakeven meat import quotas, which the President industry. level-normally about 80 percent--and suspended for 1973 would be suspended Shortly everybody learns, "We've been cause some feedyards to go out of busi­ for 1974. As you know, this suspension wrong again." ness. Also, some feedyards that feed their applies to fresh, frozen and chilled beef, Those who fail to learn from the mis­ own cattle could go out of business soon, veal, mutton and goat meat subject to takes of history are condemned to re­ if the losses on cattle continue. the 1964 meat import law. peat them. Economic history is no ex­ You may ask, Will the smaller feed­ This meat will be able to move freely ception. yards-under 10,000 head capacity-stay into the United States without restric­ We wrote another chapter last sum­ in business? Yes, but only if they can get tions except for meeting the usual in­ mer in the history of counterproduc­ the financing. While there are some spection and health standards and tariff tive manipulation of food prices. When economies to be gained in size, some of regulations. we slapped ceilings on meat prices, for the smaller feedyards, if they are e:tn­ The Secretary has stated that this sus­ example, great hurrahs went up from cient, probably will be able to reduce pension of quotas is expected to continue som~ consumer groups-"Aha; at least overhead and compete with the larger throughout the entire calendar year of we have forced the hand of Government ones. 1974. However, as required by law, he to take action 9.gainst the selfish special What will it take to stop the big will review the situation every 3 months. interests in the food indtU;try." losses? The only way to stop losses for Should marketing conditions change sub­ The victory was short-lived. Quickly cattle already purchased and on feed is stantially, the suspension of quotas will baby chicks were destroyed. Poultry for chain stores to lower prices, feature be reconsidered. fiocks were liquidated. Pregnant sows more beef and move more beef. Con­ Furthermore, on January 2, the Sec­ were sent to slaughter. Milk cows were sumers prefer beef and will buy more of retary estimated that the United States marked for the block. it, if they can afford it. As retail sales would import 1 billion 575 million pounds Within weeks the very consumers who pick up, the excess of heaVY cattle-­ of fresh meat this year. had clamored for lower prices and for over 1,100 pounds-in feedyards, which We cannot expect to significantly in­ price rollbacks realized that everything are depressing prices now, will clear out crease the domestic supply of beef in this was not going according to plan. and prices for all cattle will improve. country, and thus provide our consumers Every chick destroyed represented For cattle not yet on feed, it appears with a continuing large supply of beef drumsticks that would never reach the the only way to prevent a loss is for the at reasonable p-rices, if we continue to meat counter. Every hen slaughtered feeder to pay less for the replacement import such i.rt~reasingly large amounts represented dozens of eggs that would feeder calves. At today's price for fat of meat. Massive importation which un­ never be cartoned. Every pregnant sow cattle--$41 per hundredweight--and to­ dermines the ability of a domestic in­ headed for market represented pork day's price of grain-$5.30 per hundred­ dustry to produce in quantities capable of chops that would not be eaten 8 months weight--and this means feeder calves meeting domestic consumer demand does later. Every dairy cow turned into beef will have to be purchased for about $31 nothing to fight infiation over the long represented milk that would not be on per hundredweight--instead of the run. What we need is sufficient incentives the table. ';)resent 40 to 50 cents per pound if they for the meat industry to increase sup­ The lesson was quickly and painfully are to break even. However, this jeopard­ plies to the point where consumers can relearned that low consumer prices are izes the cow-calf operator and soon he obtain the meat they want at prices they not the sole key-indeed not even the will be losing money. can pay. important key-to better living. Produc­ Of course, the preferred way out would The food sector seems to catch more tion is the answer. We live better only be for fat cattle prices to increase; then public fiak than any other sector of our when we have more of the things we everybody in the industry could make a economy. Consumers always feel that want and need-and the only way to get fair profit. This means that fat cattle they pay too much for food. more production is to let stronger prices would have to sell for about $50 to $55 They will grumble about the price of a induce producers to turn out more. In April 2, 1974 EXTENSIONS OF REMARKS 9435 tum, increased supplies keep prices in which monthly data is compiled, 1973 more of cattle being beef animals which line. placements were off 2,373,000 compared produce more meat than the dairy vari­ Farmers are no exception to this eco­ to 1972. Marketing for the year fell 1,- ety, total meat production is much nomic truth. We have just harvested rec­ 033,000 leaving a deficit in the number greater than it used to be. ord crops in 1973, and for 1974 Ameri­ in the pens of 1,340,000. In addition, once it was customary to can farmers will turn on their produc­ There are supposedly many hefty slaughter a large number of calves, par­ tion spigot as never before. While some feeders waiting to get into lots which ticularly those in the dairy breeds, to of this production may be response to could be ready for market in a relative­ produce veal. Now, virtually all calves patriotism or to exhortations by the Ag­ ly short feeding period. But there is no are fed to top slaughter weights of 1,000 riculture Department and the agricul­ sign that the lots are filling up yet, or will pounds or more, and this, of course, ture colleges the great bulk of it is purely soon. USDA economists calculated in De­ means more meat than if they were and simply response to stronger market cember a 1,050 pound steer would have to slaughtered at 200 to 300 pounds. prices. bring $55.25 a hundredweight to pay the All of these things were done by farm­ This is an incentive-oriented society. cost of production in the third quarter of ers in response to demand and in an ef­ Some people call it a profit-oriented so­ 1973. It is more now, and prices have not fort to make more money. ciety. Call it what you will-but experi­ risen close to $55 yet. But in recent years, all the readily ap­ ence has shown us, over and over again, If what lies ahead is indicated by past parent· efficiencies that would tend to that there is no substitute for economic performance, placements will be off greater beef production appear to have incentive in getting added production. around 2 million head the first half of been accomplished. We ignored that experience last sum­ 1974-January through June. The Nation's dairy herd is about at a mer. We took the bureaucratic approach. Over the past 5 years, feeders have put minimum to produce the milk needed. We were wrong again--dead wrong. 56 to 59 percent of animals for the Grass fat cattle are a thing of the past. For a little while after that lesson, feeding year into the lots in July-Decem­ Virtually all cattle are fed grain so that everybody knew we had made a mistake. ber, averaging 57.4 percent. The other they reach slaughter weights early, and Our politicians knew it. Our bureaucrats 42.6 percent was placed in the January­ they are bigger because they are grain knew it. Our economics professors knew June period. If this pattern applies this fed. Hardly any calves go to slaughter it. Our consumers knew it. year, only 9.5 ·million cattle will go into as vealers. All of us want the affiuent life. We want lots in the first half of 1974, which is Thus, in recent years, the only way to plenty of wholesome, healthful, nutri­ 2,300,000 short of a year ago. get more beef for the heavy demand in tious, and palatable food at reasonable The biggest on-feed cutback in January the United States has been for prices to prices. Experience has demonstrated, was Iowa's, at 207,000 or 11 percent. indicate to farmers and ranchers that time and again, that the best way to Colorado cut 120,000; Kansas, 90,000: they could make more money if they in­ obtain that food is wher. responsible Nebraska 56,000 and Texas 40,000. creased the size of their herds. This profit is a viable incentive for farmers to Only six States showed a little gain and meant holding back heifers to produce produce it. their total gain was 64,000. more calves. And as time goes on, the In other words, unless something Thus, it remains a mystery for me to only way to get more beef will be to raise changes soon the next big shortage will figure out where the extra market cattle more cattle. be oeef and red meat. USDA's new cattle are coming from in the second quarter, as The only way this country can get on feed report hangs out the warning foretold by the USDA. They are not in more forage supplies-pasture-is for signal that feedlot owners are continu­ the feedlots as they ought to be. the beef market to indicate to farmers ing to cut placements in the face of high An economic fact that is currently as­ it will be profitable to spend the money costs and substantial losses on every serting itself dramatically on food sup­ necessary for pasture improvements. animal they finish for slaughter. plies in the United States and around Virtually all of the Nation's grazing The total number of cattle on feed was the world is that if consumers want more land now is being utilized. Much of it 13,637,000 head as compared to 14,432,- of a product, they must offer some incen­ in the Far West and in mountaino~ 000 January 1, 1973-a decline of 795,000 tive to get it. That incentive, most of areas, cannot be improved upon with head or 6 percent. That includes an in­ the time, is money. present technology. crease of 4,000 head in the 27 States It is not the nature of the agriculture In other words, ranchers cannot get which feed very few cattle-575,000 in all business to expect high price guarantees profitable returns from the great ex­ 27 this year-making the decline 799,000 for increasing production. Farmers know pense of spreading fertilizer on vast acre­ in 23 major feeding States for which that prices go both up and down from ages in moisture-deficient areas. statistics are compiled quarterly. a myriad of factors. What they do have But they can improve pastures in the The 6-percent decline does not tell the to have, however, if they are going to more humid areas by the use of fertilizer ·whole story. The report shows place­ make the added investments to produce brush control and by seeding improved ments down 15 percent in the 23 States more, is at least an opportunity to make grasses, all of which takes money. in the October-December quarter. It more profit. Up to this point, the greatly increased shows December placements off 24 per­ Beef production is an excellent exam­ beef cow herd has been able to find cent in the seven States reported ple in the United States. The amount of grazing because of decreases in numbers monthly. Decline was 24 percent in Sep­ beef reaching U.S. tables now as com­ of other grazing animals. For every beef tember, 25 percent in October, and 8 pared to several years ago is relatively cow added since 1920, one horse mule or percent in November. much greater than the total number of dairy cow has disappeared and left its By weight groups, here is what USDA cattle in this country now as compared forage to feed the beef animal. Sheep found in the lots January 1: to years ago. · numbers also have declined, thereby leav­ For many years, the increase in beef ing more grass for cattle. There has been (In thousands! production came in a large part from in­ .some comeback in the number of horses creases in efficiency on the farm. For in­ but not enough to approach the total of 1974 as stance, once upon a time steers were 26.7 million head in 1918. Jan. 1 Jan. 1 percent All cattle and calves 1973 1974 of 1973 pastured until they were 3 or 4 years old The point is, that because of a rather before they were sent to market as ''grass static demand for pasture, the price fat." Now, virtually all steers are fed less than 50 lb ______1, 946 1, 516 78 structure has historically not provided 500 to 699 lb ______3, 847 2, 977 77 grain and reach market at choice grade a vigorous incentive to expand forage 700 to 899 lb ______4, 346 4, 161 96 at only 2 to 8 months of age. On Janu­ output. 900 to 1,0991b ______3, 076 3, 404 lll 1,100 lb and over------646 1, 004 155 ary 1 of 1973, the farms of this country Now it is ~o longer possible to reduce, had 11,651,000 milk cows. In 1935, they percentagewise, the number of horses, Total 13, 681 13, 062 92 had 26 million. On the other hand, in dairy cattle and sheep as was the case 1935, the number of beef cows on farms earlier. Placements in 1973 dropped in every was only about 14 million head, while on So, if consumers of this country want month except January and March, rang­ January of 1973 it was 41 million. With more beef, and more pasture is needed for ing up to the 24 percent declines in Sep­ the smaller number of dairy cows, more the beef cow herd, then the market struc­ tember and December. In seven States on milk is produced than in 1935. But with ture will have to be such as to pay for 9436 EXTENSIONS OF REMARKS April 2, 1974 pasture improvement. Present pasture CAUTION ON OFFSHORE DRILLING consideration in the White House on offshore rental rates in many States are not development, implore the President to seek enough to induce much of such improve­ oil elsewhere lest we all be run off this ments. HON. ROBERT E. BAUMAN coast. Obviously, as more cattle are being fed OF MARYLAND grain, more grain is needed and this ac­ IN THE HOUSE OF REPRESENTATIVES ARGUMENTS AGAINST THE CPA counts for the great increase in utiliza­ Tuesday, April 2, 1974 AMENDMENTS tion of corn and grain sorghums in re­ cent years in the United States, along Mr. BAUMAN. Mr. Speaker, in view of with those quantities fed hogs and poul­ the report issued by the Council on En­ HON. FRANK HORTON try. Handling grain going from farms to vironmental Quality regarding offshore OF NEW YORK oil drilling, it would be well for us in feedlots of various kinds now is a big IN THE HOUSE OF REPRESENTATIVES business. the Congress to pause and consider its In most years in the past, grains have implications. Brian Henley writes in the Tuesday, April 2, 1974 been in surplus. But not now. Foreign Eastern Shore Times of Ocean City, Md., Mr. HORTON. Mr. Speaker, I would and domestic demand appear to be tak­ and points up the need to take a cautious like to acquaint my colleagues with the ing all U.S. farms can produce. This year, approach in a very sensitive area of en­ reasons why I will not be supporting the all Government restrictions on produc­ vironmental concern. I include the edi- amendments which I understand will be tion are off. Presumably, all available [From the Eastern Shore Times, offered to the CPA bill, H.R. 13163. I am acres will be used. Of course, more acres Mar. 28, 1974] inserting in the RECORD my March 29 may be made productive, if money is to rial at this point: letter to OMB Director Roy Ash which spent improving them. OFFSHORE OIL-UNDER CONSIDERATION BY discusses the proposals he made in a At any rate, it does appear that many NIXON letter to the committee of March 13. of the efficiencies that so easily led to (By Brian Henley) I am also inserting an analysis of the greater and greater production in this After nearly a year of study, the President's three very major amendments to the country have been accomplished. If de­ Council on Environmental Quality an­ committee bill which are included in the mand is to grow, as it seemingly will in nounced last week that development of oil Brown substitute bill, H.R. 13810. The and gas rigs off the coast of Ocean City and Brown amendments, in my opinion, this country and abroad, then consumers other Atlantic resorts would pose serious en­ should be aware of an apparent economic vironmental, economic and social problems. would pull the teeth of the consumer fact. They will have to pay what it takes Some of the findings by the council, which advocate and render meaningless the to get the added production. held a hearing on potential offshore oil and skeleton authority that would remain. This situation does not automatically gas development in Ocean City last fall, are The material follows: suggest fantastic prices. But it does indi­ startling and deserve consideration by all HOUSE OF REPRESENTATIVES, cate prices promising a real possibility of residents of our coastal city. Washington, D.C., March 29, 1974. a. profit to the farmer who makes the in­ The council learned that onshore develop­ Hon. RoY L. AsH, vestment to produce more. I may mean ment of refineries and other industries re­ Assistant to the President, that the era of low farm prices has ended lated to support of the oil firms could dras­ The White House, tically alter the characteristics of this or Washington, D.C. for good. any other resort. DEAR RoY: I do very much appreciate the Instead of clean beaches, we could have support the Administration has given to our oil stained sand. Instead of clean water, we joint efforts at developing an effective, yet AN OUTSTANDING SEASON FOR THE could have pollutants from refineries and pe­ responsible Consumer Protection Agency bill. EXETER HIGH SCHOOL BASKET­ tro-chemical plants. Instead of clean, ocean Because of your continuing interest in pro­ BALL TEAM air, we could have airborne particles foreign ducing the best possible legislation, I do want to most of us. Instead of plenty wildlife, we to acquaint you with the reasons why the could have over developed farm land or oily Committee did not accept the amendments HON. GUS YATRON marsh and wetlands. you suggested in your letter of March 12, The President's council also discovered that 1974. I am sorry we did not have an oppor­ OF PENNSYLVANIA much of the income generated by offshore oil tunity to discuss your suggestions before the IN THE HOUSE OF REPRESENTATIVES production and related onshore industries letter was sent. If you think it would be help­ Tuesday, April 2, 1974 would likely go to incoming businesses and ful, I would, of course, be happy to sit down populations. Most tourist. based industries with you in an attempt to reach an under­ Mr. YA TRON. Mr. Speaker, I would now found here would board their doors and standing of the issues involved. like to pay tribute to the 1973-74 basket­ seek cleaner lands. INTERROGATORIES ball team of Exeter High School. The probability of a spill reaching shore Of course, you realize as I do that delet­ Through the outstanding performance of from the Baltimore Canyon-an area just off ing the interrogatory section is not a viable the players, this squad earned the Class this resort's coast said to be filled with under­ alternative. sea oil-would be about 10 to 20 per cent. You go on to suggest that if deletion of B second place honors of the Pennsyl­ The area is now a popular fishing ground and the section is not possible, the Committee b1ll vania. Interscholastic Athletic Associa­ supports two major businesses here now­ should be changed so that the host agency tion. The team compiled an impressive commercial and sport fishing. would have to agree to a CPA showing of 30-3 record, the most wins ever by a Not surprising, the council also determined merit before issuing interrogatories. Your Berks County scholastic team. that: the closer the rig is to shore the sooner approach was specifically considered by the Coach Rod Hand certainly deserves a spill wlll likely hit the beaches; drillers subcommittee and full Committee, but not high praise for his role in leading the off our coast would find Atlantic storms and adopted. Instead the present language was weather conditions more severe than those included, whereby the regulatory agency may team through this superb season. The found in the North Sea, a factor which could refuse to issue the interrogatories on the members of the team have earned praise lead to more frequent spills; and, oil spills basis of certain findings it makes on the ade­ for their obvious ability to excel and would stand a greater chance of reaching quacy and appropriateness of the request. their willingness to cooperate in a team this beach during the summer and spring. If This emphasizes the regulatory agency's right effort. The players on this year's squad a sllck occurred during those seasons, the to refuse to issue interrogatories. We also were: Michael Barrasso, Charles Booker, resort would have no chance to repair dam­ added a provision allowing the proposed re­ James Brizek, Michael Ciabattoni, Craig age to the beach before the height of the spondent to petition the regulatory agency Conrad, Kevin Conrad, Michael Edwards, tourist season. for reconsideration of the decision to issue The findings by the council, along with interrogatories. And, of course, the respond­ Thomas Farina, Richard Hendel, David their unpublished recommendations, now go ent has a right to seek judicial review of the Hinnerschitz, John Kubovsak, John Lein­ to the President for his consideration. Nixon regulatory agency's decision that the inter­ bach, Steven Meyer, Vincent Roberts and has indicated that he wants further explora­ rogatory would not be unnecessarily or ex­ Ralph Stock. tion of offshore oil and gas in an effort to cessively burdensome to the respondent. Un­ This team has brought much honor to meet runaway domestic energy needs. der the Committee bUl, in any court test of their school and their community. It is The President, like most of us, has been the agency's decision to send an interroga­ a pleasure to extend my warmest con­ caught in a headlock not only by Watergate, tory, it would be necessary to disprove the but by the oil industry which has set its regulatory agency's findings and not the gratulations to Coach Hand and these sites on coastal oil fields, no matter what CPA's statement of the necessity for the in­ fine young men and to bring their happens to towns like Ocean City. terrogatory. achievements to the attention of my col­ Area officials, residents, and all others You also suggest that the word "pending" leagues. should now, while certain moves are under is ambiguous and should be removed from April 2, 1974 EXTENSIONS OF REMARKS 9437 the language prohibiting CPA interrogatories the judicial review, requires meeting an "ex­ to then argue against the lawyers of the where they Involve information pertinent traordinarily indefinite" criterion, and would Justice Department representing the regu­ to "pending proceedings". Leaving the word put him at a distinct disadvantage since in latory agency. 1n is intended to make clear that the CPA the majority of cases participation below 1n CRIMINAL INVESTIGATORY MATERIALS cannot use interrogatories when a proceed­ no way affects an aggrieved person's right to ing has been initiated and subpena power seek judicial review. The Committee felt a Finally, you suggest that investigatory files or other compulsory process is available to better way to handle the problem was to re­ prepared in connection w1 th criminal cases the CPA and other parties. The interrQga­ quire the CPA, unlike other persons, to seek be exempted !rom disclosure to the CPA. I tories are to be used in the discharge of the a re-hearing of the case before seeking judi­ would point out that the FBI 1s exempt from CPA's investigatory responsibilities. When cial review. To emphasize the right of the CPA involvement by the terms of the Com­ warranted by the resulting information, they court to dismiss a petition !or judicial review mittee b111; and this, for the most part, ac­ may result in a CPA request to the appro­ based on considerations of equity, we allow commodates any concern over criminal priate regulatory agency that it initiate a courts to dismiss a case if they feel it would investigatory files. In other cases, as you may proceeding. I! the regulatory agency felt that be "detrimental to the interest of justice". be aware, investigations generally result 111 the information collected by interrogatories The Committee approach keeps the attention civU action, although occasionally, cr1m1na1 prior to the proceeding was relevant and of the parties focused on getting at the issues action may be undertaken. In any case, the valid, then it would be foolish of us to insist of the case without causing undue delays and investigation develops one record, principally in statute that the information acquired by still giving the court clear authority to reject civil in nature, and it would be next to im­ the CPA be re-collected, any more than in­ frivolous or unwise cases or cases where possible to distinguish the criinlnal material formation now gathered by a regulatory further litigation would be inordinately !rom the civU material. The Comm1ttee felt agency pursuant to interrogatories during an costly or otherwise unduly prejudicial to a it would be wrong to close the civUinvestt­ investigation on its own Initiative, has to be company's interests. gatory files of the agencies just because at re-collected when a proceeding is started. I! Your second point is that we should allow one point there may be an additional crim­ the regulatory agency felt the interrogatory a regulatory agency a reasonable time inal charge filed as well based on the same information was not relevant or valid, then rather than the 60-day period included in the information. it could, of course, refuse to accept it or in­ bill to decide on a petition for re-hearing. Kindest personal regards. sist it be collected anew. This language was included to assure that Sincerely, INFORMATION AVAILABILITY AND DISCLOSUllE neither the CPA nor the regulatory agency FRANK HoRTON. would be able to delay final action simply You recommend that the word "volun­ through inaction. We felt the regulatory tarily" be put back 1n section 10(b) (6) (B) agency would be sufficiently acquainted with ANALYSIS OF MAJOR AMENDMENTS INCLUDED I« of the Committee b111 which gives the CPA the record of its subject proceeding and THE BROWN BILL, H.R. 13810 access to trade secret information 1n other would be able to pass on a petition for a PROHmiT JUDICIAL REVIEW OF LEGAL WRONGS agencies unless it is claimed the information re-hearing within 60 days. The provision SUFFERED BY THE CPA IN REPRESENTING was not obtainable without a promise to would also permit the CPA to allow the CONSUMERS treat it as a trade secret and, therefore, agency additional time to make a decision confidential. This word was taken out 1n Basic to our system of government is the if the CPA felt the delay would not be prej­ notion that if someone is treated illegally or subcommittee at the request of certain busi­ udicial to the interests of consumers. ness and consumer groups. If it were re­ improperly by an agency of the government, stored, it would encourage business to re­ EXEMPTIONS he may ask a court to order the agency to act quest a confidential label for almost all You suggest in your letter that it would Within the law. I expect an amendment w111 information it submitted. The Committee be "virtually impossible" to separate the be offered which would allow the CPA to seek felt the CPA should have a right to see "national security or intelligence functions" judicial review only in cases involving its information the Congress has authorized from the other functions of the Departments "access to information or to an opportunity governmental agencies to obtain in view of of State and Defense and the Atomic Energy to represent consumers in a proceeding or the CPA's role as advisor to the Congress Commission. I think that statement goes too activity." In other words, legal wrongs sus­ and the President, and its responsiblllty to far in that, indeed, there are numerous tained by the CPA while representing con­ investigate practices which are hannful to areas, such as Army civU works and surplus sumers would not be subject to judicial re­ the consumer interest. equipment disposal, where one can clearly view. Such a proposal would put the CPA In deference to the other agencies, the identify non-security aspects. In the State in a clearly inferior position to business and b111 makes special provision for information Department case, for example, I would think other advocates. The Committee bill essen­ received from another Federal agency within the CPA might be interested 1n tar11f agree­ tially grants judicial review "to the extent any of the exempt categories of the Freedom ments. It must be remembered that under that any person, if aggrieved, would have a of Information Act, including the trade the terms of our b111, the CPA can partici­ right of judicial review by law." In the in­ secret category. In such cases, the CPA must pate only to the extent that other persons terests of fairness and parity, I !eel the CPA conform to any notice from a Federal agency may participate, such as business groups. I! should be given the rights to judicial review that the information 1s not to be disclosed others are allowed to submit data and argu­ that are accorded by law to other persons. 1n to the public, or may be disclosed only a ments, there is no reason to deny the same LIMITS CPA PARTICIPATION IN ADJUDICATORY particular form or manner. Thus each Fed­ opportUnity to the CPA. PROCEEDINGS TO THAT OF AN AMICUS eral agency is assured full control over dis­ You also raise a question about the pro­ closure of such information after it goes to hibition against CPA involvement in collec­ Regulatory proceedings of the Federal gov­ tlie CPA. tive bargaining and other management-labor ernment can be divided generally between Second, the blll contains a number of pro­ rule making and adjudications. The former matters. I think the only area where there category results in agency rules which have visions specifically directed toward the pro­ could possibly be any involvement is 1n those tection of business confidential information. NLRB proceedings involving unfair labor the force of law. The adjudications at issue It prohibits public disclosure of trade secrets practices. The Committee felt it unWise to determine whether laws have been violated. The laws involved are civil, not crimlnal, al­ and other confidential business information. allow the CPA to involve itself 1n such hard­ Under the Freedom of Information Act, non­ fought labor-management contests, which though sometimes a criminal action may be disclosure of such information is authorized do not directly involve detenntnations of discovered 1n investigating a civU violation. but not mandated. Thus the b111 goes beyond wages, hours, or other cost !actors, but only I understand an amendment Will be ot!ered the Freedom of Information Act 1n placing assure appropriate conditions !or employers which would dlsallow the CPA !rom fully a positive and nondiscretionary obllgation and employees to negotiate such matters be­ participating 1n such adjudications. The upon the CPA to protect trade secrets and tween themselves. Committee bill limits CPA involvement where commercial or financial information. Exist­ punishment is being considered. The reason ing law, such as 18 USC 1905, which makes REPRESENTATION IN JUDICIAL PROCEEDINGS the Committee did not limit participation in it a criminal offense for a Federal employee You suggest that the Justice Department all proceedings is that 1n most of these cases to release confidential information, would be given an opportUnity to decide if it wants the determination of whether a law has been also apply. of course. to represent the CPA 1n court proceedings. violated involves consideration of the appll­ JUDICIAL REVIEW Under our b111, the only court proceeding in cablllty of standards of law or rules to cer­ which the CPA itself would intervene as a tain practices. Many major revisions in regu­ You suggested that the CPA Administrator party would be that 1n which the CPA seeks latory standards have come through adjudi~ be required to make an affirmative showing or joins in judicial review of an agency deci­ cations. We cannot restrict the CPA's right to before he could be allowed to involve him­ sion. In many cases, the Justice Department involve itself in those cases where major is­ self 1n a judicial review where he had not would be representing the regulatory agency sues on the scope or applicability of regula­ participated 1n the case below. The Commit­ involved. In such cases the Justice Depart­ tory laws and rules are decided. It should be tee rejected this approach at the suggestion ment would be confronted with a confilctlng noted that under the Committee blll, there of the American Bar Association and the Ad­ interest. The Commlt1iee felt both the CPA 1s no dimlnutlon of the alleged violator's ministrative Conference of the United States. and the Justice Department would be put ln rights to due process and procedural fairness, They argued that forcing a hearing on the an untenable position 1! the CPA had to first and he can fully protect his rights through showing that the case would further the show its case to the Justice Department to the courts, even in cases where the CPA 1s interest of justice would unnecessarily delay get it to disqualify itself before being able participating. C.XX--594-Part 7 9438 EXTENSIONS OF REMARKS April 2, 1974

MAKES NO PROVISION FOR !~ORMATION­ dent and Vice President of the United States, Presently, the OEO subcommittee of GATHERING BY THE CPA FOR INVESTIGAT,IO.NS and be it further the Education and Labor Committee is OUTSIDE FORMAL PROCEEDINGS Resolved, That the Clerk to the Legislature be and she is hereby directed to send a copy considering the fate of OEO. We would One of the most difficult issues for the urge the Members to carefully consider Committee was deciding how much informa­ of this resolution to the President and Vice­ tion-gathering ab111ty the CPA should have. President of the United States, the United our proposal, which we believe is the Some favored broad authority to collect in­ States Senators representing the State of most logical way to insure a continued formation by direct subpena issued by the New York, and to the appropriate members Federal focus on the problems of the dis­ CPA itself; others felt it should have· no of the House of Representatives from dis­ advantaged. Q.b111ty at all to gather information relevant tricts which incorporate parts of Rockland to serious consumer concerns. The Commit­ County in their districts, urging each of the tee felt that because of the CPA's role as above to take whatever action may be nec­ advisor to the Congress and the President essary and appropriate to support the con­ U.N. ADDS TWO LANGUAGES .8-nd proposer of action to the appropriate stitutional amendment that would allow regulatory agencies, it ought to have some naturalized citizens to run for the office of limited information-gathering ab111ty that President and Vice-President of the United would be compatible with our existing regu­ States. HON. JAMES J. DELANEY latory system. The Committee solution was OF NEW YORK .to authorize the CPA to request regulatory IN THE HOUSE OF REPRESENTATIVES agencies to issue interrogatories, if they had EXTENSION OF OEO WITHIN DE­ the authority to do so. If an agency does PARTMENT OF HEALTH, EDUCA­ Tuesday. April 2. 1974 not have authority to issue the interrogatory TION, AND WELFARE Mr. DELANEY. Mr. Speaker, I insert requested by the CPA, it will not be able to into the CONGRESSIONAL RECORD a very do so under the committee bill. The CPA interesting article written by Mr. Don would have to make a showing as to why HON. MARVIN L. ESCH Shannon of the Los Angeles Times, the interrogatory was necessary. The regula­ OF MICHIGAN tory agency could refuse to send the inter­ which discusses a recent decision by the rogatory if 1t felt the CPA has not made a IN THE HOUSE OF REPRESENTATIVES United Nations to expand to six the good case for the interrogatory, or if it Tuesday, April 2J 1974 number of working languages to be used felt it would be unnecessarily burdensome by this world organization. to the Federal agency or the persons to whom Mr. ESCH. Mr. Speaker, today I join The key points made by Mr. Shannon the interrogatory was addressed. The Com­ with my colleagues, the Honorable focus on the cost factors involved to ac­ mittee bill provides, therefore, a carefully­ PHILIP RUPPE and the Honorable GARRY prescribed right to gather information. I BROWN in introducing legislation de­ commodate each new working language, understand an amendment will be offered signed to preserve and extend the Office the need for more interpreters and the which would disallow any such information­ of Economic Opportunity within the De­ increased workload necessary to trans­ gathering. Such an amendment is undesirable late and process each language. This in view of the carefully-prescribed language partment of Health, Education, and leads up to the question of how long the in the bill, which adds nothing to in any Welfare. United Nations can function efficiently way broaden the scope of Federal informa­ Our bill would extend existing OEO and economically if further working tion-gathering authority which Congress has programs for 3 more fiscal years, but languages are permitted. The full text already authorized by statute for specific would transfer responsibility for oper­ ·existing agencies. ating these programs out of the Office of follows, and I trust my colleagues will the President and into an office under find the article enlightening reading: the supervision of an Assistant Secre­ Two ADDITIONAL LANGUAGF.s To CosT U.N. tary. MILLIONS NATURALIZED CITIZENS SEEKING It is time to recognize that whether EXP.-\NDED USE OF CHINESE AND ARABIC THREAT­ OFFICE OEO remains a separate agency, there ENS TOWER OF BABEL ON EAST RIVER continues to be a pressing need for a sin­ (By Don Shannon) gle office to monitor, operate, and direct UNrrED NATIONs.-A 38-story Tower of HON. JONATHAN B. BINGHAM Federal assistance to the poor and dis­ Babel is threatening to become a reality here OF NEW YORK with the United Nations about to make advantaged, be it in HEW or elsewhere. Chinese a full working language and Arab IN THE HOUSE OF REPRESENTATIVES The programs of OEO have matured nations demanding that Arabic be made the Tuesday. April 2. 1974 from the crisis ridden days of the 1960's sixth working language of the world organ­ to provide what is now one of the few ization. Mr. BINGHAM. Mr. Speaker, on Jan­ major vehicles for involvement of the Even with a moderate start in the next uary 28, I introduced House Joint Res­ disadvantaged in helping themselves. two years, the expanded use of Chinese wlll olution 880 which would amend the Con­ While Congress is not in complete agree­ add $1 million to the two-year budget period stitution to enable all citizens of the 1974-75. The addition of Arabic would cost ment over the effectiveness of all OEO more, because the program would be starting United States to be eligible to hold the programs, the transfer would allow an office of the President. from scratch. orderly review over the next 3 fiscal The changes will also require physical al­ I was pleased to learn that the Legisla­ years. terations in the General Assembly, the Se­ ture of Rockland County, N.Y. has over­ Our bill extends for 3 years, urban and curity Council, and the meeting rooms of the whelmingly adopted a resolution declar­ rural community action programs, day headquarters building, which have provided ing their support for this amendment. care projects, community economic de­ simultaneous translation for a maximum of The resolution, which I have formally velopment and other poverty programs. five languages and now must accommodate introduced for referral to the Committee a sixth. In practice, there were rarely more We have long believed that OEO must than four sets of interpreters working in the on the Judiciary, follows: be reformed-not abolished-and that REsoLUTION No. 224 oF 1974 United Nations during the first 25 years be­ OEO has become a vital tool in helping cause the Nationalist Chinese delegations, Memorializing the House of Representatives the poor to help themselves. here until 1971, usually spoke English to concerning naturalized citizens seeking Community action agencies have lighten the economic burden on the Secre­ office played an important role in assisting de­ tariat. Whereas, it is in the public interest that With the arrival of Peking's representa­ naturalized citizens be permitted to run for velopment of urban and rural America. tives, the practice came to an abrupt end the office of President and Vice President of Poverty remains one of the greatest and all their speeches have been delivered in the United States, and social ills of our Nation and it exists pri­ Chinese. The unaccustomed workload put a Whereas, Congressman Bingham has in­ marily in the urban centers and rural strain on the sta.:tf of 13 interpreters, whose troduced such legislation in the United areas. I know that in our districts OEO­ number has been nearly doubled since. Bven States House of Representatives, now there­ supported CAP agencies are working ef­ recently, however, there have been awkward fore be it fectively in funding and building better gaps in the Security Council debates when a Resolved, That the Legislature of Rockland relief interpreter failed to appear on time. County hereby memorializes the United communities. Whether it be services to The Advisory Committee on Budgetary States House of Representatives to give fa­ senior citizens, health programs, pro­ Questions estimated that the full use o! vorable consideration in support of the con­ viding jobs or helping to develop hous­ Chinese in the coming two years would re­ stitutional amendment introduced by Con­ ing and other public facilities, CAP's quire the United Nations to print 18,000 gressman Bingham that would allow nat­ have been effective mechanisms of Fed­ pages of translations instead of the token uralized citizens to run for the office of Presi- eral assistance in Michigan. amounts now published. To do this would April 2, 197-'i- EXTENSIONS OF REMARKS 9439 mean the hiring of 84 Chinese-language ex­ Bill Mailliard has served this country buy materials to place in all our school perts beyond those now on -the payroll and his State, and his district in the House of libraries." 16 temporary employes during the annual In countless instances, small gra.nts !rom Representatives for 21 years. Prior to the federal government have made the differ­ General Assembly sessions. that he had already completed a distin­ Secretary General · Kurt Waldheim sug­ ence to libraries, perhaps to your own neigh­ gested a. "more cautious and pragmatic ap­ guished career as a naval o:fficer, during borhood public library or bookmobile, or proach.'' aiming at only 8,000 pages of trans­ which he held positions of high responsi­ your children's school library. lations a year for the first stage, a goal which bility and was decorated for valor. In this Since the time of President Eisenhower, could be met with recruitment of 39 full­ service he established an interest and a the federal government has recognized its time employes and eight temporary ones. competence which he carried into the Re­ respons1b111ty, along with the state a.nd local Qualified. interpreters and translators are serves where he obtained :flag rank. As is governments, to see that every American has access to a library. And by this support, the hard to find, however, and the secretary gen­ characteristic of this energetic and dedi­ eral predicted. that even the reduced number government has acknowledged that libraries cated public servant, he now goes on to are a national resource as well a.s a state of jobs would not be filled during the first further service of importance to the Na­ year. The heightened activity will mean ad­ and local one. Though less than five per cent ditional high-priced office space in mid-Man­ tion in the field of foreign service. of public and school library funds, on the hattan because the 38-fioor Secretariat build­ Reluctantly his colleagues see this dis­ average, come from the federal government, ing long ago ran out of room. But by far the tinguished American leave the House. We this small contribution often makes a dra­ greatest item will be salaries, more than 80% wish him the best of luck as the U.S. matic difference in vital services in hundreds of the $1,050,000 estimate. permanent representative to the Orga­ and even thousands of communities. Today there are three major library pro­ No budget calculations are available for the nization of American States. grams assisted by federal funding. Under addition of Arabic to the working languages. Title n o! the Elementary and Secondary This would call for changes ranging from an Education Act of 1965, federal assistance additional interpreters' booth in the As­ THE IMPORTANCE OF LIBRARIES IN was granted to all of the 50 states for the sembly hall, the Council, and a dozen meet­ AMERICAN LIFE purchase of elementary and secondary school · ing rooms to the modification of all the indi­ library resources. As a result, libraries were vidual listening equipment. Seats for dele­ created in thousands of schools where there gates, the preSs and the public-about 7,100 had been none before, and existing library tn all-are wired to receive simultaneous in­ HON. JOHN BRADEMAS collections were updated and expanded. The terpretation of only five languages-English, OF INDIANA Elementary and Secondary Education Act­ French, Spanish, Russian, and Chinese-at IN THE HOUSE OF REPRESENTATIVES including its school library program-has present. been amended, and its funding extended by At least 18 interpreters would be needed Tuesday~ April 2, 1974 Congress over the years. to get Arabic started, and the addition would Mr. BRADEMAS. Mr. Speaker, the An earlier statute, the Library Services call for increases in the five existing lan­ and Construction Act, also better enables guage sections as well. Here ts where the March 1974 edition of Parents' magazine carries an excellent article by Dr. Jean E. states, cities, towns, and counties to improve problems arise-English-Arabic or even Eng­ their public libraries to carry out special pro­ lish-French-Arabic speakers may be relatively Lowrie, president of the American Li­ grams for the disadvantaged, the handi­ numerous in the United States, but Arable brary Association, which describes the capped, and the homebound. speakers capable of simultaneous interpreta­ importance of library services in our so­ The third library program supported by tion of Chinese or Russian are a rarity. ciety and the hostility of the Nixon ad­ the government under the Higher Education A question that already has been raised­ ministration to continued Federal sup­ Act of 1965 gives assistance to public and the elevation of other languages to official port for libraries. private institutions of higher education. status-is what arouses the fear of an As Dr. Lowrie writes: From the outset, the Nixon administration eventual glass Tower of Babel on New York's has recommended major cutbacks in these East River. Since the time of President Eisenhower, national library programs, but Congress has the Federal government has recognized its voted to continue federal support. Last year, Arabic won its support largely on the responsibllity, along with the state and local grounds that it is spoken by 18 member the Administration recommended abrupt states, but their total population is only 120 governments, to see that every American has termination of all library programs, but once million, and their various dialects differ con­ access to a library. And by this support, the again Congress voted to maintain them. The siderably. Economically and culturally more government has acknowledged that libraries alarming question of whether federal fund­ significant, German ts spoken by three mem­ are a national resource as well as a state a.nd ing will suddenly be cut otf continues to ber states with a population of 85 million, local one. plague libraries throughout the nation, how­ while Portuguese is spoken by more than 100 Mr. Speaker, in the fiscal 1974 Labor­ ever, for this Adm1nistration has an un­ million in two nations. Cases could be made HEW appropriations bill, Congress re­ precedented record of refusing to spend the for other tongues but even the addition of money voted by Congress. It was only after one more would involve a geometric progres­ jected President Nixon's suggestion that the pressure of public sentiment, legal suits, sion in the work and the cost of keeping the we terminate Federal support for our a.nd Congressional urging that the President United Nations going. libraries, and included $175 mllllon for released impounded funds this January and school, college, and public libraries. 11gnec1 a current appropriations blll which The President's 1975 budget requests provides some money !or library programs. only $25 million earmarked for libraries, Libraries cannot long survive neglect. Once A TRIBUTE TO THE HONORABLE and I am confident that Congress will, their collections fall behind, the cost of up~ dating them becomes prohibitive. Every WILLIAM S. MAILLIARD once again, reject the administration's American who values libraries should write ill-considered proposal. to his legislators in Washington, D.C. thank­ But because Dr. Lowrie's comments so ing them for voting to continue federal HON. JOHN M. MURPHY persuasively document the importance of library assistance despite the Administra­ OF NEW YORK Federal assistance for American libraries, tion's plan to end it. Your support voiced IN THE HOUSE OF REPRESENTATIVES I insert her article at this point in the now, may help to guarantee the future exist­ ence and assure the high quality of your Monday, March 25, 1974 RECORD: community's school and public libraries. Mr. MURPHY of New York. Mr. YOUR PUBLIC LIBRARY NEEDS You: SUPPORT ·FEDERAL LIBRARY FuNDING Speaker, may I take this opportunity to say a few words in tribute to our distin­ (By Dr. Jean E. Lowrie) guished colleague, the Honorable William A public library in Georgia puts the prob­ JAYCEES WELCO:ME TO S. Mailliard, who is leaving us to become lem one way: "We have struggled to continue CASTRO VALLEY our Right to Read program on our own. Now the permanent representative of the we find that we have to close it down for United States to the Organization of lack of funds. People came to our class, with American States. its informal atmosphere, who would go to no HON. FORTN·EY H. (PETE) STARK Bill Mailliard and I have served to­ other." A mother in Indiana writes to her or CALIFo:&NIA Congressmen about a blind son who recently gether for 12 years on the Merchant Ma­ IN THE HOUSE OP REPRESENTATIVES rine and Fisheries Committee. His broad learned to read "talking books" provided expertise and grasp of maritime matters through the local library, but now the special Tuesday, April 2, 1974 library service is endangered by a proposed and foreign affairs has been evident to cut-off of federal funding. And a public Mr. STARK. Mr. Speaker, the Jaycees all of us. His counsel and advice have school omcer in Kansas says, "Our local prop­ of America are an organization of young been invaluable, not only to his col­ erty taxpayer is carrying a heavy burden and men dedicated to developing leadership leagues, but to me in particular. no end in sight ... we need federal help to abilities of their membership toward 9440 EXTENSIONS OF REMARKS April 2, 1971, skillful decisionmaking, planning, or­ fought, a human need, a hopeless cause to dent of the Condominium Executive Oounc11 ganizing, and implementing action proj­ be championed, no matter how great the of Florida) , crowned by this newest award odds, David Osterer was there. to add luster to that long Une before, he ects to solve community problems. Jay­ What prompts such a man to spend h1s would probably tend to agree with that cees are men between the ages of 21 and Ufe representing hls fellow man, seeking the phllosopher who once said, "that the noblest 35 who are motivated in "Service to redress o! their grievances, volunteering his honor and highest award a man can ever win Humanity" and their record of accomp­ time to protect the rights o! other&-inter­ is the knowledge held deep within him that lishment is testament to these young ceding on behalf of those with only a small he has been of service to his fellow man." men of action. voice, and demanding they be heard-mag­ Community involvement in all phases nifying their ideas, presenting a forum for their needs? of city activities make the Jaycees a most What makes a man fight unceasingly for ANTIBUSING AMENDMENT valuable resour.ce of informed and human dignity? What makes him a staunch knowledgeable citizen participants. Their advocate o! democratic principles undaunted skill and expertise will now become acti­ by pressure groups and ineptitude? What HON. ROBERT P. HANRAHAN vated within the Castro Valley environs. makes him seek the spirit o! cooperation OF n.LINOIS It is my pleasure to announce that and understanding for his fellow man? IN THE HOUSE OF REPRESENTATIVES Perhaps, it can be most clearly under­ for the first time, a Jaycees chapter will Tuesday, April 2, 1974 be opened in Castro Valley, Calif. On stood by David's own words, "The volunteers of our country are the backbone of a free Mr. HANRAHAN. Mr. Speaker, I wish April 5, there will be charter night cere­ democratic society. Volunteers seek out and monies and installation. At this time, I understand problems long before legislative to take this opportunity to indicate my would like to pay tribute to the incoming correction. Volunteers are always in the van­ strong support for Congressman AsH­ officers of the new Jaycees of Castro guard of progress, social, as well as, political. BROOK's antibusing amendment which Valley. The new omcers are as follows: They are the conscience of America. Without was successfully added to the Elementary President, Bill Bland; State director, the free spirit of volunteers, a bureaucracy, and Secondary Education Act, H.R. 69, Rodman Dickson; internal vice presi­ or even worse, a dictatorship would ensue". by the House on March 27, 1974, by a vote dent, Gregory Knight; external vice To volunteer, to serve unselfishly on the of 239 to 168. If I had been present, I behalf of others, to be dedicated to the re­ would have voted for this amendment. president, Patrick Fain; treasurer, Jon lief o! human grievances, to seek ethical ap­ Orellana; and secretary, Norman proaches to the solving of common problems; I have long felt busing to achieve radal Kellogg. these are the achievements of David Osterer. integration is an ine:trective and disrup­ I know they will be a credit both to All this, David, you have done. Thank you. tive method which can destroy the sound their new chapter and to the communi­ YoUR FRIENDS AT ARLEN. concept that made this Nation's elemen­ tty they serve. I welcome the Jaycees tary and secondary education system to Castro Valley. I am proud they are SOME NOTES ABOUT ••• DAVID G. 0STERER great, the neighborhood school system. my constituents and I am privileged to David G. Osterer is a man of dynamic en­ Studies have indicated that busing has, salute them before my colleagues today. ergy and social foresight as well as academic at best, only a marginal impact on im­ distinction-his Honorary Doctor of Humani­ proving the educational opportunities for ties (L.H.D.) comes from Pbllatbea College, Ontario-so that one finds it hard to paint children. Equally important is the obvi­ a brief word-portrait that will do justice to ous safety disadvantages of continually DAVID G. OSTERER someone with so broad a spectrum of social busing children over long distances. interests and humanitarian activities. As a result of my firm conviction that Originally, he was a businessman and, busing for racial integration is a waste HON. WILLIAM LEHMAN prior to his retirement, Dave had ser\Ted as of the taxpayers' money, I have signed OF FLORIDA President o! New Rochelle Precision Grind­ discharge petitions circulated by both ing Corporation and as Chairman, (now re­ Congresswoman GREEN and Congress­ IN THE HOUSE OF REPRESENTATIVES tired) , and Founder o! the Induction Heat­ man BEARD which would allow the House Tuesday, April 2, 1974 ing Corporation and, also, as Fou;nder and Chairman of the Board, (now retired), of the of Representatives to act on House Joint Mr. LEHMAN. Mr. Speaker, on March A.M.F. Thermatool Corporation. Resolution 95, the antibusing proposed 21, 1974, David G. Osterer was the guest Dave has become known as a man who is constitutional amendment. of honor at a testimonial dinner given always ready to exert himself for a worthy Only the fact that I had pledged my for him by the Condominium Executive cause and to donate his time, his energy, word I would make an important speak­ Council of Florida. It was a well-deserved his knowledge, and, above all, his concern, ing engagement, prevented me from vot­ honor for David G. Osterer personally, to helping those less fortunate than himself. ing for the Ashbrook amendment. I wish These quaUties have been helpful in such and it is also a tribute to him as a.n out­ positions as the Board of Directors of Harri­ the record to be made very clear as to my standing symbol of those who well earned son Community Synagogue, the Board of position on the important subject of bus­ their retirement but have without com­ the National Conference of Christians and ing for racial balance. pensation and often without public rec­ Jews, and the Board of St. Agnes Hospital ognition worked long hours effectively Association. He bas also served as President of the United Cerebral Palsy Association of to make south Florida a better commu­ POW-MIA MEMORIAL TO BE nity for all of us. Westchester County, New York, from 1958 to 1970. Dave ts also active in lodge work, DEDICATED APRIL 6 Testimonial follows: being 32nd degree Mason and Shriner (Mecca OUR FRIEND DAVID G. OsTEBEK Temple) and a holder of the Eloy Alfaro While other men content themselves to Grand Cross and Diploam (T.C.E.A.). HON. JAMES A. BURKE spend their days playing golf and sunning at Dave also served on the Youth Services Ad­ OF MASSACHUSETTS the pool, David Osterer has dedicated his visory Board of Westchester County. It 1s IN THE HOUSE OF REPRESENTATIVES time and energy to us and our problems. His no wonder that the B'nai B'rlth awarded unselfish dedication to fair play and the pro­ him the coveted Human Rights Award in Tuesday, April 2, 1974 tection of common as well as human rights 1965 along with Mr. Roy Wllklns. Mr. BURKE of Massachusetts. Mr. has made Arlen a better place to llve. Dave Osterer has always been a friend in Speaker, I was personally very gratified Whether alone or in Committee, he bas need and in deed, not only to those who constantly protected the rights of each con­ could reciprocate hts generosity, but to those to hear recently that the Freedoms dominium owner. who could not, and were never even aware Foundation at Valley Forge, Pa., will be Undaunted by barrages o! attorneys and that it was he who had made their Uves a dedicating the POW-MIA Memorial on not so subtle innuendos, David's vision broke little brighter and happier. This is especially April 6, 1974. It was very heartwarm­ the legal quagmire o! resistance and brought true of his tireless efforts to better the lives ing to learn that this historic monument a new concept to Florida, a concept o! !air of the handicapped. To them, he is a very to the brave Americans who fought in play and ethics. special friend, and they know him on an the Vietnam conftict has been cast from No longer was a condominium owner at intimate and special basis. His 15 years of over 7,000 POW-MIA bracelets which the mercy o! the developer or his agents. devoted service were recognized by his receipt were presented for this purpose by those There was a voice to protect him. David's of the Jimmy Vejar Memorial Award given efforts were instrumental 1n producing a by the Westchester County Cerebral Palsy who wore them during the long years of contract that was a model and example to Association. this conftict. Indeed, the sacrifices of be followed. Having now seen his long career in the these American soldiers for the ideal of His history reveals that wherever there was commercial, fraternal, philanthropic and individual liberty shall not be allowed a mountain to cllmb, an injustice to be other areas, (he is now also Executive Presi- to fade from the mind of American man. April 2, 1974 EXTENSIONS OF REMARKS 9441 I urge my colleagues to stop and re­ gency number, but the telephone was dead, indicators led our officials to believe that fiect for a. minute on the sacrifices these a malfunction that police later specV}ated a strategic alert was necessary. might have been caused when a line was Yesterday, I inserted into the RECORD Americans have made. severed by the flames downstairs. The following is the announcement of Irving grabbed a licensed .38-callber pistol this series of letters but one important the tribute to our MIA's and POW's: he keeps in the apartment for protection. letter to the Department of Defense was General Harold K. Johnson, United States He said he went to the door and shouted inadvertently left out and therefom I am Army, Retired, President, Freedoms Founda­ to find out who was there, but he got no reinserting the correspondence. tion at Valley Forge; The Board of Directors; response and the pounding kept up. The letters follow: The Council of Trustees; cordially invite you The firemen claimed they heard no shouts Ho"l11D: OF REPBESE!n'ATIVES, to attend a Ceremony Dedicating The Pris­ before shots rang out and three bullets Washington, D.C., November 20,1973. oner of War and Missing in Action Memorial, ripped through the door--one bouncing off Bon. JAMES R. SCHLESINGER, which has been cast from over 7,000 POW­ Crosby's chest without penetrating h1s rub­ Secretary, Department of Defense, MIA Bracelets Presented By Their Former ber coat, the second whizzing past Bernard's Washington, D.C. Wearers Durtng the Vietnam Conftict and head, and the third dropping to the fioor DI:Aa Ma. SECRETARY: In the Subcommittee the dedications in the Medal of Honor Grove where Thomasian had fallen to his knees. on the Near East and South Asia's ongoing of The Massachusetts Area and The Alaska Other firemen meanwhile had managed to hearings on the October Middle East war Area; Saturday afternoon, the siXth of Aprll, control the fire from below; pollee came and and its aftermath, we want to explore the at one thirty o'clock, at Freedoms Founda­ took Irving into custody. reasons for the United States alert of October tion at Valley Forge, Valley Forge, Pennsyl­ The firemen were treated at St. Luke's 24, 1973 and its implications. To that end, vania. Hospital, Crosby for a slight chest bruise, we would like to have your comments in open You may bring guests. In the event of in­ Bernard for ringing in his ears and Thomas­ session testimony or in letter form because clement weather, all three dedications w1ll ian for bruises of his knees. you were present during the meetings leading be conducted in the Main Foyer, Martha Fire ofllclals said the door's thickness had up to the alert. Washington Building. slowed down the bullets and saved the men Specifically, we are interested in three from more serious injury. problem areas. First, we would like your de­ At the W. 123d St. station, Irving was scription of the step-by-step decision-making charged with reckless endangerment-a mis­ process leading to the implementation of the BAN THE HANDGUN-XXXVITI demeanor-but he was not held. Instead, he alert, including a description of how, when was given a "desk ticket" for a later ap­ and by whom the alert was effected. Second, pearance ln court and allowed to go home. we would like to know why you felt the par­ HON. JONATHAN B. BINGHAM A policeman who answered the phone put ticular type of alert that was instituted was, OF NEW YORK it simply: in fact, necessary. And, third, we would lUte to know more about the demands and per­ IN THE HOUSE OF REPRESENTATIVES "What can you do to a 76-year-old guy who thinks he's defending his home?" formance of the Soviet Union during the Tuesday, April 2, 1974 events leading up to our move. I would appreciate an early response to this Mr. BINGHAM. Mr. Speaker, many inquiry. people living in high crime areas be­ Sincerely, lieve possession of a handgun will pro­ THE OCTOBER 24, 1973, ALERT LEE H. HAMILTON, tect them against crime. Rarely is this Chairman, Subcommittee on Near East so. Much more frequently, the gun ends and South Asia. up killing or injuring its owner, a fam­ HON. LEE H. HAMILTON WASHINGTON, D.C., January 23, 1974. ily member, a friend, or a well-meaning OF INDIANA Bon. LEE H. HAMxLTON, stranger. In the case recounte

.SENATE-Wednesday, April 3, 1974 The Senate met at 11 a.m. and was worthily measure up to the role Thou so that at the end each of us may be able called to order by Hon. HUGH ScoTT, a hast ordained for us. In a world uncer­ to say, "I have kept the faith." Senator from the State of Pennsylvania. tain about many things, make us certain In the Redeemer's name, we ask it. of Thee. Amen. PRAYER Deliver us, 0 Lord, from ineptitude The Chaplain, the Reverend Edward and cowardice, from moral paralysis and L. R. Elson. D.D., offered the following spiritual inertia. In our day when clever­ APPOINTMENT OF ACTING prayer: ness often is lifted above goodness and PRESIDENT PRO TEMPORE Almighty God, who hast called us to cunning above character, give us the The PRESIDING OFFICER. The clerk serve the Nation in times heavy with purity of life and honesty of purpose to will please read a communication to the crisis and fraught with peril, strengthen keep Thy commandments and walk in Senate from the President pro tempore our hearts and minds that we may Thy ways. Use us this day and every day (Mr. EASTLAND).