1962 CONGRESSIONAL RECORD - SENATE 9885 all the houses that even the people of Mr. SPARKMAN. Perhaps the Sen­ · The motion was agreed to; and (at 6 the countries in Latin America want. ator from New York has something to o'clock and 10 minutes p.m.), the Sen­ The point is that there is a definite say. ate adjourned until tomorrow, Thursday, need for a guarantee program such as Mr. KEATING. Mr. President, it is June 7, 1962, at 12 o'clock meridian. the one envisioned by the Senator from my desire to call up my amendment at Alabama, in order to encourage private some time. capital to develop in these areas the Mr. SPARKMAN. I wonder whether CONFIRMATIONS necessary housing programs, because the we may dispose of the pending amend­ Executive nominations confirmed by governments of these countries simply ment. the Senate June 6, 1962: cannot do that work all by themselves. I yield back the remainder of my time. I think this amendment provides the The PRESIDING OFFICER. All re­ COLLECTOR OF CUSTOMS best means of accomplishing that result; maining time has been yielded back. Edward J. Gosier, of New York, to be col­ and I believe it will bring about great The question is on agreeing to the lector of customs for customs collection dis­ good. amendment of the Senator from Ala­ trict No. 7, with headquarters at Ogdensburg, So I congratulate the distinguished bama [Mr. SPARKMAN], for himself N.Y. John W. Crimmins, of Kentucky, to be col­ Senator from Alabama [Mr. SPARKMAN] and the Senator from Florida [Mr. lector of customs for customs collection dis­ for his leadership in this field; and I am SMATHERS]. trict No. 42, with headquarters at Louisville, delighted that he is willing to permit me The amendment was agreed to. Ky. to be a cosponsor, with him, of the The PRESIDING OFFICER. The bill Mrs. Marion F. Baker, of Georgia, to be amendment. is open to further amendment. collector of customs for customs collection Mr. SPARKMAN. Mr. President, I do district No. 17, with headquarters at Savan­ not know of any other Senator who ADJOURNMENT nah, Ga. wishes to speak on the subject. Paul E. McNamara, of New York, to be The PRESIDING OFFICER (Mr. PELL Mr. SMATHERS. Mr. President, on collector of customs for customs collection in the chair). Do Senators yield back behalf of the majority leader, I move district No. 8, with headquarters at Roches­ their time? that the Senate adjourn. ter, N.Y.

EXTENSIONS OF REMARKS

Antimerger Provisions of the Clayton Act For even if the Government prevails, the of commerce in any section of the coun­ court may find it difficult or impossible try the effect of such proposed acquisi­ Should Be Facilitated to "unscramble the eggs." If the merger tion may be substantially to lessen com­ were restrained or held in abeyance un­ petition or to tend to create a monopoly; EXTENSION OF REMARKS til its legality is determined, however, and, fourth, exceptional circumstances OF these difficulties would be avoided. do not exist for the denial of the appli­ As the Supreme Court recently noted, cation. HON. EMANUEL CELLER the problem of unscrambling a merger In addition, the bill provides that a OF NEW YORK once it has been consummated is enor­ court, in lieu of granting an application IN THE HOUSE OF REPRESENTATIVES mously complex. In California against for a preliminary injunction or tempo­ ·Wednesday, June 6, 1962 FPC - U.S. - April 30, 1962, the Court rary restraining order, may make such said: order as it deems necessary to insure Mr. CELLER. Mr. Speaker, I am to­ adequate relief in the event a violation day introducing a bill to amend section These unscrambling processes often raise complicated and perplexing problems of tax of section 7 is ultimately found. This 15 of the Clayton Act to facilitate the matters and otherwise. • • • The very pros­ provision reflects the action taken in granting of temporary restraining or­ pect of undoing what was done raises a pow­ the Brown Shoe Co. case where the Court ders or preliminary injunctions to pre­ erful influence in the antitrust litigation. permitted a merger to proceed despite vent violations of section 7 of the the pendency of section 7 proceedings, Clayton Act as amended by the Celler­ Thus, the inability of the Department of Justice to obtain temporary relief in but required that the merged companies Kefauver Act. be operated separately until a final deci­ Under section 15 of the Clayton Act merger cases often may hamper enforce­ ment of section 7 of the Clayton Act, as sion could be reached. (United States v. the district courts of the United States Brown Shoe Company, 179 F. Supp. 721 are authorized to prevent and restrain amended by the Celler-Kefauver Act, as well as making a dead letter of section (E.D. Mo. 1959) .) violations of section 7, among other sec­ The bill I am proposing is thus de­ tions of the Clayton Act. 15 which provides for equitable relief in such cases. The Department of Justice signed to promote the fair, effective en­ The need for legislation arises out of forcement of section 7, as amended by the difficulties encountered by the De­ has so indicated. The bill I am proposing would encour­ the Celler-Kefauver Act, while preserv­ partment of Justice in obtaining pre­ ing the power of the courts to fashion liminary injunctive relief in merger age the courts to exercise their existing authority under section 15 to grant pre­ flexible remedies to meet the particular proceedings. In a goodly number of needs of each case. important cases, effective enforcement of liminary injunctions and restraining or­ the Celler-Kefauver Act has been frus­ ders in merger cases in a manner more trated by denial of the Government's in keeping with the public interest in applications for preliminary injunctions effective antitrust enforcement. At the Public Law 480 Program: An Important or temporary restraining orders to pre­ same time, the bill contains a number vent the consummation of mergers pend­ of important safeguards designed to pre­ Partner in Our Foreign Aid Program ing litigation. An example is the merger vent the ·improvident granting of such of the Continental-Illinois Bank-CCH orders. EXTENSION OF REMARKS Federal Trade Regulation Reporter, 1961 My bill would amend section 15 so as OF Trade Cases, par. 70, 110, D.C.N.D., Ill. to provide that an application for a tem­ 1961. porary restraining order or preliminary HON. EDNA F. KELLY In my view, the courts have regarded injunction under this section, to prevent OF NEW YORK their authority under section 7 far too a violation of section 7, shall be granted IN THE HOUSE OF REPRESENTATIVES narrowly. Merger cases are notoriously if the Court finds that there is reason­ protracted. Once a merger has been . able cause to believe that, first, the pro­ Wednesday, June 6, 1962 . consummated, years before the court can . posed acquisition will take place unless Mrs.- KELLY. Mr. Spe&ker, we fre­ decide whether it is legal, the Govern­ · enjoined; second, divestiture or other quently hear that Members representing ment faces a long drawn-out lawsuit appropriate relief will be difficult to ef­ rural districts are opposed to the foreign which may only serve to lock -the barn fect if the proposed acquisition is later aid program. I do not believe that such door after the horse has been stolen. found to be unlawful; third, in any line statements accurately reflect the feelings 9886 CONGRESSIONAL RECORD - SENATE June 6 of the rural American population or of and distributed abroad. Between July the 3-year period ending December 31, their representatives in Congress. The 1, 1954, and December 31, 1961~ the Pub­ 1964---With not more than $2.5 billion in people on the farms, just like those in lic Law 480 program has resulted in the any single year. These dollar amounts the cities, have an important stake in movement, out of the Commodity Credit refer to the cost of commodities to the foreign aid. The sole :rurpose of the Corporation's stocks, o.f $13.7 billion Commodity Credit Corporation. They foreign aid program is to promote the worth of surplus farm commodities. reflect domestic support prices, process­ security and national interest of the Sales under this program have generated ing, storage, handling and transporta­ United States. Our national security and the equivalent of $7.6 billion in foreign tion costs. The prices at which com­ interest is not confined to the urban pop- currencies. These foreign currencies are modities are sold abroad for dollars or 11lation. It affects all of our people, being used by our country for several foreign currencies reflect generally lower whether they live in the city or on farms. purposes, including loans to private U.S. world market prices. There is, however, one special feature firms doing business abroad; payment Between July 1, 1954, and December in our foreign aid program which relates of the expenses of U.S. embassies in 31, 1961, we have entered into sales agree­ directly to the prosperity of our rural those countries; research programs in­ ments and commitments with friendly areas. Our foreign aid program promotes volving potential expansion of markets foreign countries providing for the sale expanding markets abroad for our sur­ for U.S. agricultural products; economic of $7.6 billion worth of our surplus agri­ plus farm commodities. To the extent development; and others. cultural commodities under title I of that we can increase the sale of our sur­ At this point, I would like to sum­ Public Law 4'80. Through September plus farm commodities abroad, our marize briefly the main provisions of 30, 1961, collections from these sales, in farmers benefit directly from this pro­ Public Law 480 and the extent of the foreign countries, amounted to the gram. food-for-peace programs. equivalent of $5 billion. Approximately As we all know, the food-for-peace TITLE I PROGRAM: SALES OF AGRICULTURAL one-half of this amount-the equivalent programs, authorized by Public Law SURPLUSES FOR FOREIGN CURRENCIES of $2.4 billion-has been disbursed to 480, as amended, are closely coordinated Title I of Public Law 480 authorizes further the objectives of Public Law 480 within the broader program of foreign sales of U.S. surplus agricultural com­ and our overall foreign aid policy. aid. Through food-for-peace programs modities to friendly countries for their At this point I would like to place in tremendous quantities of American agri­ own currency. Under long-term au­ the RECORD a country-by-country break­ cultural commodities---such as wheat, thority provided in 1961, programs of up down of sales for foreign currencies un­ rice, cotton, tobacco and others---are sold to $4.5 billion may be undertaken during der title I of Public Law 480:

TABLE VI.-Status of foreign currencies under title I, Public Law 480 [In million-dollar equivalents]

Agreement Allocations· Disburse- Agreement Allocations Dlsburse- amounts by Budget Collections ments by Country through Bureau through agencies Country ~t~:: b)J~~~et Cf?r«;~~ins ~:~i~i Sept. 30, through Sept. 30, through Sept. 30, through Sept. 30, through 1961 Sept. 30, 1961 s Sept. 30, 1961 Sept. 30, 1961 s Sept. 30, 1961 l S 1961 I 19611 s 1961 a

Argentina------64.1 . 33.5 30. 5 17.3 Korea ___ .------217. 0 197.3 186.3 169.8 Austria ______Mexico______28. 2 Bolivia ______42.9 40.1 -40.1 36.0 .25. 2 25.2 20.9 3.3 Netherlands______. 3 .3 .3 '.8 Brazil ______284.4 200. 2 202. 8 135. 6 Pakistan_------444. 4 323. 7 394. 8 229.3 Burma ______40. 7 37. 4 37. 3 11. 5 Paraguay______9. 9 -2.9 2. 9 2.5 Ceylon ______26. l 21. 2 21.3 9. 2 Peru_------37. 3 27.3 27.1 21.8 Chlle _____ ------71.9 48. 3 52. 3 35. 2 Philippines______.14. 4 14.1 13.8 12.2 China (Taiwan) ______Poland______365. 3 Colombia ______84.0 61. 4 60. 3 34. 8 35.2 352. 7 1.6 70.9 50. 0 54. 6 32. 3 PortugaL _ ------7. 1 7.1 7.1 6.6 Ecuador ____ ------13. 2 8.8 10.0 7.3 50 442.4 444.8 239. 4 Finland_ ------­ 46.5 51. 4 41. 7 27. 7 ~~Nand:::::::::::::::::::::::::: t: 4. 3 4.3 4. 3 60.4 33. 1 34. 2 23. 1 Tunisia______15. 3 FranceGermany __ ------______Turkey______.308. 0 Greece ______1. 2 1. 2 1. 2 'l. 6 222. 8 247. 6 140. 4 87.9 82. 9 85. 0 69. 5 United .Arab Republic (Egypt)____ 284. 5 180. 0 204. 3 93. 6 IndiaIceland ______· ------_ 12.1 9. 5 9. 9 8.3 United Arab Republic (Syria)_____ 28:2 22.6 24.0 3.0 2,337. 3 1, 767. 2 1, 182. 1 301. 4 United Kingdom______48. 2 43. 8 48. 5 28. 5 Indonesia ______173.4 175. 5 160. 4 47. 7 Uruguay______46. 4 34. 6 34. 7 14. 8 34.3 22.5 19.8 19.4 Vietnam______------34. O 16. 6 19. 7 5. 9 ~1-:::::::::::::::::::::::::::: 194.4 163.1 171. 9 113. 3 Yugoslavia______472. 5 370. 8 442. 9 255. 2 Italy __ ------­ 152.9 145. 2 144. 2 114. 8 1----11----1----1----- J apan __ ------150.8 143.1 146. 3 137. 5 Tota]______1 6,823. 9 5,066.6 4,986.9 6 2,434.1

1 Includes amounts.specified in the agreements, to be used for grants and loans under 1or the balances remaining in such accounts. Subsequent to June 30, 1961, disburse, secs. 104 (e) and (g), not subject to allocation. ments under secs. 104 (a) through {r) are calculated at the end of the preceding quarter :i Calculated using the collection .rates of exchange. Treasury selling rates. a Prior to July 1, 1961, disbursements under secs. 104 (c), (d), and (e) grants are cal­ ' Disbursements exceed collection because of conversions from ·other currencies. culated at collection rates; sec. 104(f) sales at current Treasury selling rates; sec. 104(g) 1 Differs from table V which xeflects purchase authorization transactions. loans at1oan agreement rates; secs. 104 (a), (b), (e) loans (b) .through (r) at the weighted • Differs from appendix table No. 21 because of rounding and the exclusion of.about average rates at the end of the months in wbieh transfers are made to agency accounts $8,500,000 equivalent disbursed in nontitle I countI1es through convertibility.

TITLE ll PROGRAM: GRANTS OF SURPLUS COM­ support prices, processing, storage, han­ to the needy overseas and in the United MODITIES FOR FAMINE RELIEF dling and transportation costs. States. Again, the dollar amount re­ Title II of the act authortizes grants fers to the cost of commodities to the TITLE m PllOGJLAM: DONATIONS TO U.S. VOLUN­ CCC. of commodities held in stock by the Com­ TARY AGENCIES FOR DISTRmUTION TO THE modity Credit Corporation for famine NEEDY TITLE IV PROGRAM: LONG-TERM SUPPLY CON­ TRACTS FOB REPAYMENT IN DOLLARS relief and certain other assistance pro­ Title m of the act authorized dona­ grams. Programs of up to $300 million Title IV of the act authorizes long­ (CCC cost) plus carryover from previous tions of surplus foods from stocks held term supply contracts for repayment in years may be undertaken annually dur­ by the CCC to the U.S. voluntary or­ dollars over a maximum period of '20 ing each of the calendar years 1962 ganizations and intergovernmental or­ years. through 1964. ganizations for distribution to the needy Between July 1, 1954, and December 31, Between July 1, 1954, and Dece~ber 1, overseas. Donations of food to the 1961, these contracts involved $40.3 mil­ 1961, we have used $983 million worth of needy in the United States and barter lion worth of surplus agricultural com­ surplus commodities held in stock by the transactions are also authorized under modities held by the CCC. The dollar CCC for famine relief and certain other this title. figure in this instance represents con­ assistance programs abroad. This dol­ Between July 1, 1954, and December tract figures and is somewhat smaller lar figure represents the cost of commod­ 31, 1961, we have distributed $1.9 bil­ than the CCC cost of the commodities ities to the CCC and refi~cts domestic lion worth of surplus farm commodities involved. 1962 · CONGRESSIONAL RECORD ·-· SENATE 9887

CONCLUSION Public Law 480 sales agreements, fiscal year sycophants reveals their ultra.liberality Mr. Speaker, in_ conciusion I would 1962 and their dedication to the insane phi­ · like to again stress the fact that the LATIN AMERICA ·. 1osophy that we can win over .the Com­ food-for-peace programs are an im.­ [In millions of dollars] 'munists by· simply being nice to them. · .portant supplement to our foreign-aid There is not a single person of my program. They help less developed U.S. Country Total acquaintance who wants to go to war countries achieve balanced economic uses uses . and we are convinced that the extension development, meet emergencies, and of the policies inherited by Mr. Kennedy . Bolivia______1. 3 3.8 5.1 from the Eisenhower administration will care for the needy. They also pro­ Brazil______10. 5 59.5 70.0 mote more effective and efficient Cbile______1. 9 7.6 9.5 keep us strong and obviate the neces- utilization of other types of assistance Colombia______· 2. O 6.0 8.0 . sity of surrendering in principle and in furnished by the United States. · In the Uruguay______1. 7 5.1 6.8 fact to· a group of international brig­ ands that are pledged to destroy us. long run~ all of these programs enhance EUROPE -the security of our own country and Apparently the Joint Chiefs of Staff promote the development of wider over­ . Finland ______1. 4 1. 8 3.2 are opposed to this surrender dictated sea markets for American goods-both ·Iceland ______.5 1. 5 2.0 by someone's crack-brained whim. It is Poland ______130.0 130.0 to be hoped that the American people agricultural commodities and manu­ Spain ______40.5 40.5 81.0 Yugoslavia ______3. 9 34.6 38.5 will also rise up in their wrath and re­ factured products. pudiate all those who would accommo­ I insert in chart form that which is Total, fiscal year 1962 ___ ------176. 3 78. 4 254. 7 date a godless aggressor already pretty explained in the above statement. Total, fiscal year 196L-- 162. 8 63.0 225. 8 well occupied by economic disaster·· re­ Total 'cumulative sales under title I and sulting from his own insane policies. As title IV, and grants under title II and title for me, if this trend toward capitula­ III (Public Law 480), July 1, 1954, to Dec. The Rostow Revolution tion to our enemies persists I intend to 31, 1961 1 withhold my support from everything [In millions of dollars] EXTENSION OF REMARKS that may be identified with a foreign policy that is predicated on defeatism Export OF and a complete disregard for our own Sales C.C.C._cost market value HON. PAUL B. DAGUE self-interests. OF PENNSYLVANIA Title J. ______10,872.7 7,592.3 Title IV ______58. 7 40.3 IN THE HOUSE OF REPRESENTATIVES TotaL ______National Little League Baseball Week 10,931.4 7,632.6 Wednesday, June 6, 1962 Donations: Mr. DAGUE. Mr. Speaker, despite Title IL ______892.8 . (2) EXTENSION OF REMARKS Title IIL ______the decisive manner in which this House 1,850.6 (2) has repeatedly rejected the idea of ad­ OF TotaL ______2,743.4 ------mitting Red China to the U.N. and ex­ HON. HERMAN T. SCHNEEBELI Grand totaL ______13,674.8 tending recognition to that Communist OF PENNSYLVANIA ------regime, and in complete indifference to IN THE HOUSE OF REPRESENTATIVES 1 Tbese figures represent sales agreements and commit­ the vote of 47 to 37 against seating the ments for donations-not shipments. Reds by the United Nations itself, the Wednesday, June 6; 1962 2 Not available. one worlders a~e at it again. Mr. SCHNEEBELI. Mr. Speaker, Uses of local currenci~s generated by title I Before me is a column datelined Little League baseball will observe its programs, July 1, 1954, to Sept. 30, 1961 May 14, 1962, by Robert S. Allen and annual Foundation Week beginning Paul J. Scott reporting on a new two­ June 11, as designated by proclamation Millions China policy attributed to . Dr. Walt W. of the President of the United States Rostow, chairman of the Policy Plan­ and the Congress. Against a rising tide Total collections______$4,986.9 ning Council of the State Department. of juvenile delinquency, Little League has Disbursements __ ------2, 442. 6 This plan proposes that we offer th~ proved an effective counteragent, instill­ TotaL______2,544.3 Chinese Reds a seat in the U.N. (as ing healthy values of :fitness, disciplfne, Exchange rate adjustments______362. O China) , and then permit Chiang Kai­ respect, and fairplay. Balance on band______2,182.3 shek to retain his seat with Formosa Little League had its early beginnings as a separate and independent state. in Williamsport, Pa., in my congressional Represented by- Treasury account______837. 0 Also large in these unrealistic and il­ district, and now maintains its national Agencies' accounts______1,345.3 logical plans is the proposal to withdraw headquarters there. Today over a mil­ · from Quemoy and Matsu, an objective lion and a quarter boys are enrolled an­ TotaL------1 2,182.3 long sought by those who would have us nually. In ·positive ways, Little League abandon our friends and embrace our builds morale, sets intelligent goals of Beimbursements to CCC for costs attribut­ enemies. leadership, and effective training. It able to Public Law 480 shipments · The current issue of the news maga- strengthens families and benefits thou­ [In millions of dollars] zine World also explores this latest in­ sands of communities. It is a youth pro­ sidious program to sell us short by gram which offers a proven formula of Congressional appropriations Credit to pointing out that a part of the Rostow service to Little Leagues throughout the 1------1 ·ccc of dollars plan also centers in the de facto recog­ world that meet its standards. . Today Fiscal year received nition of -East Germany with the added there are Little Leagues in more than Title Title Title Title from sale I II III IV offoreign stipulation that armed opposition to 25 foreign countries, and each year the currencies Communist aggression · be pulled back program spreads farther around the around the perimeter of the Soviet em­ world. It is an effective medium to build 1963 !______1, 081 300 472 90 152 pire: And that is not all. As World re­ good will with our foreign friends: 1962 ! ______22,816 2 460 384 13 146 ports it, there will be a broad educational 1961______881 107 200 -'------98 Monday, June 11, marks the beginning 1960______968 105 152 72 program to sell the American p~ople of the 1962 National Little League Base­ 1959______1,034 119 206 90 on a general acceptance of this sellout of ball Week, in accordance with the follow­ ·1958 ______21,928 2 220 275 72 our friends and our connivance with 1957 ------67 88 264 ------58 ing Presidential proclamation: 1956 ______------· ------. . 10 those who are pledged to destroy us. The effrontery of those brazen pro- . NATIONAL LITTLE LEAGUE BASEBALL WEEK­ TotaL__ 8,775 1,399· 1,953 103 A PROCLAMATION BY THE PRESIDENT OF THE 698 posals must leave every patriotic citizen UNITED STATES OF AMERICA . - -1-E-st_im_ate'--d_ ___;__ --'---'-'-----'------'---- gasping with amazement. · But why Whereas active participation by youth in 2 Includes reimbursement for 2 years'·operations. should anyone be surprised? A cursory appropriate physical activities contributes Total congressional reimbursement, $12,230,000,000. examination of the credentials of two- to their fitness and to the maintenance of Total credits to CCC from sales of foreign currencies, $698,000,000. thirds of the President's advisers and our national vigor and vitality; and 9888 CONGRESSIONAL RECORD - SENATE June 6 Whereas little leagues in communities ~- Speaker, I am informed that ap­ ment under a "sole source" agreement throughout the Nation have made it possble proximately 80 percent of our defense with a firm I shall call, Company A. for thousands of young boys to take an ac­ equipment is procured through "sole tive part in our national game of baseball; To do this it was necessary to issue a and source or negotiated" methods. This justification for what is known as a Whereas Little League baseball not only means simply that -someone in a branch determination and finding of a sole­ promotes the physical well-being of the of, say, the NaVY Department, determines source requirement. This order was players, but also' lnstllls into them the quali­ that for some reason or another only one signed on March 22, 1962, by Under Sec­ ties of fairness, cooperation, and discipline-­ company is to be allowed to make needed retary of the Navy Kenneth M. BeLieu, qualities which contribute to the develop­ equipment. In many cases no other who certified that the property was ment of good citizenship; and company is allowed to bid. The favored needed so urgently that "procurement Whereas the Congress, by House Concur­ company submits its bid, negotiates with by advertising and competitive bid will rent Resolution 17, agreed to June 1, 1959, the civil servant responsible for the con­ unduly delay procurement." For that has requested the President to designate the week beginning the second Monday in June tract, and gets the award. reason it was decided by the Navy De­ of each year as "National Little League The effect of this sole source or ne­ partment that only Company A would Baseball Week," in recognition of the na­ gotiated award is as simple as it is be allowed to bid on the AN/PRC 41. tional and community benefits resulting disastrous for the American taxpayer. In making that decision, however. the from Little League activity: Now, therefore, My investigation has disclosed that due Navy Department was also bound by a I, John F. Kennedy, President of the to this tactic, approximately 30 percent Navy policy stated in a letter to the United States of America, do hereby desig­ of our defense procurement funds are Comptroller General on April 14, 1959. nate the week beginning the second Monday being squandered and wasted. That policy provides that even though in June of 1961 and the week beginning the If second Monday in June of each succeeding this is allowed to happen during the the determination and findings specifi­ year as "National Little League Baseball next fiscal year, approximately $12 to cally state that only certain companies Week!' $15 billion of taxpayers' money will go are believed to be able to meet require­ And I invite the people of the United down the drain. This is a disastrous and ments, other companies shall not be pre­ States to observe that week in schools, unnecessary waste of funds, but it has cluded from bidding. Consequently, we parks, athletic fields, and other suitable been going on for years and is getting now give a request for proposal to any places with appropriate ceremonies and ac­ worse instead of better. I have docu­ company in the industry. tivities designed to emphasize the im­ mentation in my files. built up during In other words, American industry is portance of the physical development of our Nation's youth. • my study, that proves the inefficiency, allowed to compete even if there is a In witness whereof I have hereunto set my impropriety, and lack of foresight of this determination and finding of sole source. hand and caused the seal of the United sole source method. That is what the NaVY Department pol­ States of America to be affixed. Almost every one of these sole source icy says, is it not? Done at the city of Washington this 18th and negotiated procurements is justi­ As you are going to learn, what the day of April, in the year of our Lord 1961, fied for reasons of emergency or ur­ Navy Department says and what the and of the independence of the United gency. The excuse that is given is, "we Navy Department does are two different States of America the 185th. must have it. and we must have it now." things, because on April 5, 1962, a repu- [SEAL] JOHN F. KENNEDY. Using reasons of national defense ur­ . table manufacturer--one of the finest By the President: gency, the department involved shuts electronics fi·rms in the world-was de­ DEAN RUSK. out all competition, awards the contract nied a request for proposal. D. E. Secretary of State. as it sees flt, and inevitably wastes mil­ Weatherly, Acting Director, Contract Di­ lions of taxpayers' dollars. vision, Bureau of Ships, denied the com­ The procurement mechanism of the pany a chance to bid. His reason was various departments is such that officials that drawings of the equipment were Gross Waste in Military Procurement involved can weed out all competition not available. Why were they not avail­ except desired sole source manufac­ able? Because. as my evidence shows. EXTENSION OF REMARKS turers. the NaVY Department paid almost $1 OP' In conducting my 15-month study, I million to Company A to develop this concentrated on one area of the Defense radio and then told the developer not HON. EARL WILSON Department-the Navy Department. I to send the plans for it. This action was OP' INDIANA asked specific questions of the General justified by a Navy Department indi­ IN THE HOUSE OF REPRESENTATIVES Accounting Office on various NaVY pro­ vidual identified as H. Mullally and an­ curement transactions. I was gjven other named S. D. Keim. Wednesday, June 6, 1962 specific answers. When woven into a Acting on the assumption that Navy Mr. WILSON of Indiana. Mr. full story, they paint for me as they policy means what it says, I asked this Speaker, for the past 15 months I have would paint for you a picture of gross same highly regarded firm that was de­ been making a detailed study into the waste of taxpayers' money, almost un­ nied a chance to bid to prepare a pro­ procurement methods of the Defense De­ believable mismanagement, and possible posal on this radio set. Company B, partment. I have looked into scores of duplicity on the part of Government ap­ as I shall call this firm, is a solid elec­ cases and have studied the pattern of pointees. tronics manufacturer with a $100 million procurement procedures in various My purpose here today is not to con­ backlog of business and an extremely branches of the service. fuse you with a recital of all the cases I high degree of performance in past con­ The discoveries I have made and the have documented. My files speak for tracts, military and domestic. I secured information I have uncovered are shock­ themselves. The questions are written; technical information for Company B ing to say the least. If an unprejudiced the answers are written. The conclu­ that was available to any other com­ committee can be authorized to make a sions. therefore, are as easily reached panies interested in the radio set. In full-scale investigation, it will find a as they are damning. doing this, I might interject, I found that scandal in military procurement that will To illustrate my point, I have pre­ the Navy Department paid $1 million for make Teapot Dome look like a ladies tea pared a statement about one particular the development of the AN/PRC 41, party. case. I have stated exactly what I ex­ · which was already 40 percent developed I want to thank the Comptroller Gen­ pected to happen in this case. It has under another expensive Research and eral, Joseph Campbell, and his fine staff happened in just that way, and I want Development for a radio identified as the in the General Accounting Office for to call the case to the attention of the AN/ARC 51. their cooperation in my study. There Congress. There are more. Some are At the same time. I requested the NaVY are others whom I would like to thank even more serious. This is just one. Department to delay any award of con­ for assisting me in documenting various The case I wish to describe is that of tract for this radio until I could com­ case histories. Their assistance has the AN/PRC 41 radio set-a portable plete my study, and it did so. been invaluable. and now, although all UHF radio that is to be used. I am told, On May 21, 1962, I made a written the facts are not in, the conclusions are, by the Marine Corps. The Navy De­ presentation to Secretary of the Navy for the most part, formed. partment proposed to buy this equip- Fred Korth, in which I reviewed in gen- 1962 CONGRESSIONAL RECORD - SENATE ·9889 eral terms the findings of my 15-month ing those in authority as well as the B" and a full-scale investigation of Navy study. I also reviewed with particular Navy Department, once the facts are procurement should be ordered by the detail the AN/PRC 41 procurement, made public. proper agency of the House to begin-at pointing out how stated N-avy policy had But, I repeat, there is no correlation once. My files are open for just such a been subverted and how it appeared to between the award of contract and an public investigation. The taxpayers have me that the American taxpayer was pay­ investigation. If the Marines need this a right to know how their money is be­ ing dearly in these sole-source actions. equipment, it should be contracted for, ing squandered and wasted, and they I also included in my presentation to built, and delivered as fast as possible, have a right to insist that the practices Secretary Korth the proposal ·of Com­ with the best equipment purchased for be stopped and those who are guilty of pany B, the reputable firm I had pre­ the least expenditure of the taxpayers' promoting them punished by the law. vailed upon to make a bid for the dollar. After the contract has been In conclusion, Mr. Speaker, I wish to manufacture of this radio set. It was awarded, the investigation can, should, state that I shall have more to say on complete down to the price of every bolt and will proceed, and my documenta­ this matter at another time in the near and nut and was a perfect presentation tion will be available for those who wish future. It is not all over with this first in every manner. It stood on its own answers to specific questions. presentation. There are more details merits. At this point; I wish to tell you that on this first case. And there are many On May 11, 1962, I requested that the the Navy Department does not appar­ more cases much more serious in nature. Comptroller General take cognizance of ently agree with my feelings. I am in­ We have but scratched the surface here the Company A bid and determine the formed that those who are in charge of today. The festering sore underneath cost to the taxpayer for this sole-source this procurement have stated there are that costs the taxpayers billions each action. I stated at that time that I did only two avenues now open to the Navy year is still untouched. Let me assure not wish to know the amount of the Com­ Department. One is to give the con­ you that before I am through, it is going pany A bid, but wanted a third party to tract to the sole source company-"Com­ to be lanced and the core removed. Let have full particulars. This was done to pany A"-at a price 34 percent in ex­ me promise you that you will be as ap­ prevent any shenanigans by anyone in cess of "Company B's" bid, costing the palled as I at the waste in our military the Navy Department with the original taxpayers $1,300,000 more than neces­ procurement sections when all the facts Company A bid. It may sound like I dis­ sary. The other is to cancel the present have been revealed. trust some Navy personnel, but my 15- procurement and readvertise it as an month study has convinced me to leave open and competitive action. no stone unturned in trying to get a fair If the first course is followed, the tax­ treatment of any case. payers' pockets will be picked to the Promises and Performances When my presentation was given to an tune of $1,300,000. If the second is fol­ aide of Secretary Korth, I requested lowed, the Navy Department will be ad­ that the General Accounting Office have mitting that its certification of urgency EXTENSION OF REMARKS two representatives there to observe the of March 22, 1962, was fraudulent on its OF action. At the same time, I also re­ face and was arrived at simply to give HON. BRUCE ALGER quested to then be allowed to look at the a favored company-"Company A"­ proposal of Company A to see just how Government business at highly inflated OF TEXAS the cost of producing these radios dif­ prices. The Navy Department will also IN THE HOUSE OF REPRESENTATIVES fered from the proposal of Company B. delay award of contract for this radio Wednesday, June 6, 1962 -Upon receipt of the Company A bid, for several months, and this will hold I checked it with ·i-;he Company B bid, back delivery of the radios to the Mr. ALGER. Mr. Speaker,- under which I had had prepared, and found Marines. leave to extend my remarks in the that the Company B bid, the firm in Mr. Speaker, every electronics firm in RECORD, I include the following article my district, was 34 percent lower than the United States had the same iden­ entitled "Promises and Performances" the Company A bid, the sole source tical opportunity to bid on this radio from my newsletter to my constituents: firm. Company B's bid saved the Gov­ set as the company which I have the PROMISES AND PERFORMANCES ernment $1,300,000 in one stroke of the privilege to represent as a part of my National policy and goals at home and pen. district. All they had to do was follow abroad are so inconsistent and fluctuating Prior to the delivery of my presenta­ the same procedures. They did not do that it is difficult to assess our position in tion, prior to the time the bids for Com­ so, and because of that, there can be no the world today. We have no fl.seal policy or pany A and Company B were both excuse or justification for reopening of basic program either in spending or taxing. known, Secretary of the Navy Korth had any bidding for the manufacture of this We have no recognizable foreign policy. These statements are incontestable. Let's informed me of the urgent need for radio. There can be no excuse, that is, look at some promises and performances and this material. He assured me he was unless, as the history of previous con­ round up some of this week's legislative going to personally see to it that it was tracts dictates, it is intended that even­ events. In promising to "get America mov­ delivered. tually the same sole source firm get the ing again" President Kennedy promised less After studying both bids, however, the contract and the taxpayers will have to unemployment; unemployment is higher, inexcusable predicament the Navy was shell out $1,300,000, or 34 percent more averaging over 6 percent, and business fail­ in was apparently realized. Secretary than necessary. ures are up 11 percent. He promised stabil­ Mr. Speaker, there is one and only one ized cost of living; it is climbing, and at the Korth then said the award of contract highest level in history. He promised to cut was to be delayed pending an investi­ honorable way to handle this situation the Republican farm program cost by $2 bil­ gation. The urgent nature of this pro­ in view of the repeated statements of lion; the farm program has been increased al­ curement had already started slipping urgency of requirement by procurement ready $1.1 billion in the last year. He prom­ away. officers. That way is to issue this con­ ised lower interest rates; there is no change, I told Mr. Korth then as I tell you now, tract to this reputable electronics firm­ He promised sound fiscal policy and a bal­ Mr. Speaker, there is no correlation be­ "Company B"-and then get on with the anced budget; the 1961 deficit was $3.8 bil­ tween any investigation and the award job, save the taxpayers $1.3 million, get lion, the 1962 will be $7 billion (or more) and this equipment to the Marines, and, in 1963 estimate is out of sight. He promised of this contract to either Company A more new reclamation starts; not one start in or Company B. Certainly there should due time, let the red faces in the Navy a full year. He promised aid to depressed be a full investigation of this and many procurement section cool off. timber industry; nothing. He endorsed the other Navy procurement matters I now The only thing now holding up this B-70 program; he killed it. These are but a have in my files. project is the embarrassment to incom­ few of the promises. Granted that some or Why was this contract justified as a petent, inefficient, people who have got­ many of these areas should not be the re­ sole source award? Why was $1,300,000 ten themselves into this mess and who sponsibility of the Federal Government, as in are now looking for a way to save their the case of employment, yet the President, of the taxpayers' money about to be having injected the Federal Government, in wasted? The answers to these and other own skins. promising changes, to take credit for the questions may embarrass certain Mem­ It should be held up no longer. The better, must accept the blame. Remember­ bers of Congress responsible for appoint- contract should be awarded to "Company ing promises and performances and the role 9890 CONGRESSIONAL RECORD- SENATE June 6 of Federal Government let's look at current long-term basis, and would only be a first up to 91 percent, we can't get much more events in legislation. step on still more expensive Federal health there. Taking all the money over $25,000 as The School Lunch Act passed 370-11. care. Even more generally he pointed out President Roosevelt proposed wouldn't pay Others have joined me in my earlier lone what I've been saying on the House floor for the cost of Government except for several opposition. Once again the Government years "already we are postponing the evil days.) The burden of taxation as it always will expand its welfare work into fields of day of paying for the present social security must be, is borne by those of modest in­ nutrltlonal standards with greater Federal beneficent structure." ' come. So every time the big spenders add control over our youth and local school "Trade, not aid" is a forgotten slogan. another Federal program or spend more in systems. With justifiable pride I reported to The Senate voted a $4.7 billion gift to other an existing one it means more out of John the House the rejection of the school lunch nations, including aid to Communists at a and Jane Doe's paychecks. When will our program by the Richardson school board. time when they are in trouble (and we should people wake up? I hold this feeding of our people is uncon­ not bail them out) and we are in trouble stitutional and the imposing of nutritional (only $16½ billion gold left, $11.7 billion standards by Federal mandate doubly so. needed to undergird our currency). This As a side issue, this would be a possible week's modern tragedy includes the Senate Children's Exchange means for any subversive to impair our reversing itself on aid to Communist govern­ Art children's health. Who's to say in a show­ ments. I predict the people will force the down, what food is nutritional for your President and Congress to act responsibly EXTENSION OF REMARKS child, you or the Federal bureaucrat? and deny aid to our dedicated enemies. This OF The Tax Extension Act of 1962 continu­ is not charity, this is our suicide. Fortu­ ing the temporary Korean wartime taxes nately, the actual appropriation is still to be HON. CHARLES McC. MATHIAS, JR. passed handily. These taxes include cor­ considered. Meanwhile, the trade bill is being readied for floor debate-while the OF MARYLAND porate rate up from 47 to 52 percent and ex­ IN THE HOUSE OF REPRESENTATIVES cise taxes on spirits, beer, wine, tobacco, Common Market countries are raising their autos and auto parts, telephone, and trans­ trade barriers against our industries, we are Wednesday, June 6, 1962 portation. I opposed the bill for these rea­ busily engaged in preparing to lower further sons: (1) Taxes should be less, not more; (2) our already low tariffs. How some of our Mr. MATHIAS. Mr. Speaker, during taxes should be removed in reverse order as businesses will fare is becoming increasingly the past year an organization has come put on, starting with most recent increases; and painfully clear. Still not reckoned by into existence in Montgomery County, (3) wartime emergency taxes of a punitive or Congressmen is the cost to our industry (in Md., which has been enlisting the help deterrent nature are not proper now; (4) its world competition) of our Government of our Nation's junior diplomats business and consumers need incentives and laws superimposed on other costs of doing throughout our country. The Children's stimulus; (5) more spending money resulting business. Federal regulation and taxes ham­ string in competing in world markets. Art Exchange was conceived and de­ from lower taxes is the answer for business to veloped by Mrs. Paul A. Allee, director, reinvest and people to save or spend; (6) The State Department sickness is best lower taxes will provide greater revenue to exemplified by Under Secretary Ball's "no in Rockville, Md., for the purpose of de­ Government ultimately, since business can win'' official policy-as he said "The word veloping good will exchanges of artwork reinvest, hire more, produce more, make 'victory' has a militaristic and aggressive between our young people and those of more profit, and taxes come out of profit; (7) ring. * * * other countries. I think it is worthy of the entire package includes lower taxes, less "It also implies an 'all or nothing' approach nationwide recognition. Federal spending, reduced debt, and balanced leaving no room for accommodation." (Ac­ The work of the Children's Art Ex­ budget; (8) as a Member dedicated to sound commodate, as explained in Webster's New change on all fronts is serving us all lo­ fiscal policy I will not pick up the tab for the Collegiate Dictionary: ( 1) to render flt or big spenders, but will force them to reduce correspondent; to adapt; to accommodate cally, nationally, and internationally by spending by lowering taxes and preventing ourselves to circumstances; (2) to bring into striving for improved understanding and debt ce111ng increases; (9) these taxes are agreement or harmony; to adapt oneself; friendship in the world community. wrong as a part of the "carrot and stick" to make adjustment; accommodation: the Working largely through our schools, tax policy to effect social reform, instead act of accommodating.) As DoN BRUCE, Con­ pictures and other artwork have been of solely to raise revenue for Government gressman from Indiana said, " 'Give me collected and sent to numerous countries cost; ( 10) these taxes are borne by those of liberty or give me death' would today be blue­ at the request of government and em­ modest income, and I'm for increasing take­ penciled by the State Department to read bassy officials. Art from 18 countries has home pay in the envelope. Union members 'Give me accommodation with the enemy and and laboring people everywhere, all of us, minimize the risk involved in protecting also been collected for display in small should remember the words of the "father" liberty.'" What would the State Depart­ exhibits within the Montgomery Coun­ of the labor union movement in America, ment have done in editing General Mac­ ty school system. Samuel Gompers, "Doing for people what Arthur's speech (last week's newsletter)? Through the School Arts magazine, in­ they can and ought to do for themselves is a Perhaps this policy now explains our policy terest has spread throughout the Na­ dangerous experiment. In the last analysis, and the men behind it in our refusal to win tion, and requests for participation are the welfare of the workers depends upon in Korea; our refusal to win in Cuba; and currently being met by the Children's Art their own initiative. Whatever is done un­ our present attempt to neutralize Laos into der the guise of philanthropy or social moral­ the hands of the Communists. Exchange in the form of direct two-way ity which in any way lessens initiative is the The New York Herald Tribune has been exchanges of artwork between our greatest crime that can be committed against boycotted by the President and now, in­ schools and those of other countries. the toiler. Let social busybodies and pro­ terestingly enough, has been removed from Two categories of artwork are being fessional 'public morals experts' in their fads the Speaker's lobby, where the Congressmen developed. A social study group puts reflect the perils they rashly invite under receive daily the newspapers of the Nation. the program_ within reach of every this pretense of social welfare." President Can It be the President and his advisers classroom. Small packets of artwork Kennedy and the overwhelming Democratic really think they can prescribe or limit Con­ majority prevailed in extending these taxes. gressmen's reading material? are developed by the students, giving (See earlier newsletters.) This week all Republican Members of Con­ consideration to content, particularly P.S. to union members: A modern-day de­ gress of both Houses joined in a single ex­ with respect to sharing cultural and velopment is no credit to the unions-juris­ pression of principle, uniting them despite geographical information. The work is dictional warfare between unions, which differences in an overall concept of govern­ executed on personal terms making this has held up construction of a Titan missile ment which the Democratic Party as a whole a valuable educational tool in the hands base in Wichita, Kans., more than 2 months, or in groups could not possibly support. of competent teachers. The children over "who's to dig and set the power poles­ Since this statement is basic American con­ are personally involved in the problem the Operating Engineers Union or the In­ stitutional interpretation of the role of ternational Brotherhood of Electrical Federal Government in our lives, it is a of telling children of other countries Workers?" blueprint which expresses, I feel sure, the about life as we live it in the United Medical care for the aged under social se­ beliefs of a great majority of all Americans States, specifically in terms of their own curity is generating heavy mall with 90 per­ everywhere and supports the claim now made real experience. This phase of the pro­ that the Republican Party alone is truly a gram proceeds quietly and without fan­ cent or more of the people against such a national party representing all the people proposal. Obviously, . the American people (in or out of pressure groups) as a unified fare, often accompanied by photos and are not going to be "snowed under" on this whole for the betterment of our people and "Dear Friend" letters. issue by the President. Interestingly enough the preservation of personal freedom from The second category is the art­ Postmaster General Day in 1960 said the Government regimentation. oriented group, where special emphasis United States couldn't afford such a program On the contrary, the Democratic Party is on visual impact. Artwork varies in pointing out that it would increase costs stands for big spending and heavy taxation. size and media. Here, too, emphasis is 26 percent more under social security on a Who foots this bill? (The wealthy? Yes, placed on conveying our way of life 1962 CONGRESSIONAL RECORD - SENATE 9891 to children in foreign countries. Artis­ No. 738, Catholic War Veterans and La­ has this been more true than in Washington, tic expression is given a wider range, dies Auxiliary, sponsored a program in D.C., the seat of our Federal Government, however, and the artwork which results my congressional district to alert the and in the !-square-mile area known as Capitol Hill. is a visual delight to young and old alike. parents to the ever-present danger to No lengthy studies are needed to docu­ The individual differences and similari­ their children of narcotics addiction. It ment the facts about the railroads, in con­ ties prove again that art is a truly uni­ was my privilege to appear on the pro­ trast to other transport industries. versal language which in its sharing pro­ gram together with Assistant District Every person who has kept in the least duces an immediate feeling of kinship Attorney, Queens County, N.Y., John informed knows that the airlines have been with the junior artists of the world. Santucci. subsidized for decades-built up from a few We in Maryland are justly proud of I take this opportunity to compliment regional airline companies into great inter­ the work being done by our young people Thomas Carbett, commander; Leonard national and national carriers. They criss­ cross the country, hauling hundreds of thou­ through the program of the Children's J. Demchak, chairman; and Jack Kelly, sands of passengers who once used trains Art Exchange. During the month of cochairman, for their foresight in bring­ exclusively for their pleasure and business May the Rockville Art Gallery held a ing to the attention of the community travel. showing of a fine collection of artwork this serious problem of addiction. I am· Inland waterways and ocean shipping have sent by the children of Athens, Greece. convinced that only through proper at­ been favored in special ways also for decades, In return, a large collection is being sent tention and education can this disease as the facts of history show clearly. Hun­ to Athens from the students of Rockville be wiped out. The New York Journal­ dreds of millions in open or hidden subsidies schools. American is also to be congratulated for may be traced to these phases of the trans­ An additional collection is also being its sponsorship of the fl.Im "Assignment port industry. Teenage Junkies," which it makes avail­ Trucks and buses also have been favored assembled for UNESCO to be exhibited like the first two branches of our transport in Seoul, Korea, and exhibitions are able, free of charge, for programs of this system mentioned. Trucks always have en­ being formed which will be sent to Aus­ kind. This film graphically illustrates Joyed the privilege of using the public high­ tralia, New Zealand, South Africa, and the dreaded results of the use of nar­ ways for private profit in carrying goods. Brazil, in response to requests. cotics. Another competitor, quite obvious but The Montgomery County Arts Center It is my hope that foresighted or­ sometimes overlooked, has been the motor sponsored the Children's International ganizations throughout the United car. In virtually every phase of the devel­ Art Exhibit from May 25 to May 31 at States will follow the lead of St. Teresa opment of the use of the automobile, and the National 4-H Club at 7100 Connecti­ of Avila Post No. 738 and forcefully particularly through the multibillion-dollar superhighways now stretching across the cut Avenue in Chevy Chase, Md. This bring to the attention of parents every­ country, the private manufacturers of cars exhibit included art work collected by where the problem of narcotics addic­ have had the willing assistance of public the Children's Art Exchange from 18 tion. We must not be complacent, authorities. In ways so numerous they can­ countries, and is the first international thinking it cannot happen here. Statis­ not be detailed for lack of space, the auto­ exhibit of its kind in the Washington tics prove that narcotics addiction is mobile has been the darling of our govern­ Metropolitan area. on the rise, especially in the teenage mental leaders through decades, locally and These were made available to our chil­ population. nationally, Just as its auxiliaries-the bus dren and to the general public without and truck-have been. charge, which means a considerable Yet, the railroad industry and its devoted employees have continued to give good and amount of financial responsibility is thus vital service to the people. The railroads placed on the functional, skeleton organ­ A Call for United Rail Action through our various wars have performed ization of the Children's Art Exchange, mighty services to the Nation. There is Financial support for the exchange in EXTENSION OF REMARKS every reason to believe that now, as always, the form of patron donations and con­ OF in case of a limited war on or in a full-scale tributions is urgently needed. conflagration, the Nation would be severely May marked the beginning of a fund­ HON. JAMES E. VAN ZANDT handicapped, if not prostrate, if the rail­ OF PENNSYLVANIA roads could not deliver the vital goods-the raising sale of stationery bearing the har.d.ware that is more precious than gold in imprint of block prints executed by the IN THE HOUSE OF REPRESENTATIVES battles anywhere these days. students of Punahou School in Hawaii. Wednesday, June 6, 1962 In short, although sorely pressed by com­ This is a charming "History of Hawaii" petitors, the railroad industry still is the series, and the art work of our newest Mr. VAN ZANDT. Mr. Speaker, un­ transportation backbone of an industrial and 50th State has been chosen for this der leave granted to me, I am inserting economy-and the United States is far and important event. Support of the Chil­ in the CONGRESSIONAL RECORD an ar­ away the greatest industrial power the world dren's Art Exchange is possible through ticle entitled "A Call for United Rail has ever seen. the purchase of this stationery as well as Action," written by me for the May­ In recent weeks, the President has sent to through direct contributions to the Chil­ June 1962 issue of Progressive Railroad, Congress a 6,000-word message on transpor­ published in Chicago for railway execu­ tation, bristling with old and new ideas. dren's Art Exchange, Box 48, Rockville, Generally, it is considered to be highly fa­ Md. tives throughout the Nation. vorable to the railroad industry. There have The Children's Art Exchange is an im­ This article, I believe, underscores the been some bills introduced to implement portant feature of international cultural need for both management and labor in parts of the President's proposals and others exchanges, and I am proud that this the railroad industry, plus their sup­ undoubtedly will be introduced, but the odds worthwhile endeavor is taking place close pliers and loyal customers, to unite now seem to be great that neither the House of to our Nation's Capitol, in the Sixth Con­ to push through Congress the salient Representatives nor the Senate will get gressional District of Maryland. refarms needed to make it possible for around to considering the most vital of railroads to compete, on an equitable these proposals this year. basis, with other forms of transporta­ NOW IS THE TIME FOR UNITED ACTION BY THE tion moving men and materials. RAILROAD INDUSTRY Catholic War Veterans Alert Parents to The railroads still are the backbone That is why I feel that this is a time for united action by all segments of the rail Narcotics Addiction of our great industrial economy. I industry, and all of those companies which earnestly hope that my colleagues will supply the railroads and help not only them­ EXTENSION OF REMARKS read this article and will be moved to selves but the general economy. work for the enactment of legislation OF I believe that a concerted campaign should desperately needed by the railroad in­ be started by the railroads to let the voice HON. JOSEPH P. ADDABBO dustry today. of rail management and labor be heard more loudly and clearly in the halls of the peo­ OF NEW YORK The article is as follows: ple. If it were begun, and maintained in IN THE HOUSE OF REPRESENTATIVES A CALL FOR UNITED RAIL ACTION intensity, such a campaign would make it (By Hon. JAMES E. VAN ZANDT) Wednesday, June 6, 1962 possible for Congressmen, pressed with other The raiiroad industry long has been the matters and other interests, ,to concentrate Mr. ADDABBO. Mr. Speaker, on "underdog" in the Nation's vital transporta­ once more on the most vital of our trans­ May 28, 1962, St. Teresa of Avila Post tion industry. And in no part of the Nation port industries, and its problems, and to pass 9892 CONGRESSIONAL RECORD- SENATE June 6 legislation that will implement the Presi­ recent years, there has not been real com­ thing about the many problems facing the dent's pertinent recommendations. petition between the railroads and their industry. A concerted effort at this time This is not a call for a new congressional competitors, because the railroads, like Gul­ might serve to unify these many friends investigation, or any other kind of investiga­ liver among the Lilltputians, have been and supporters into a cohesive, working bloc, tion. As my senatorial colleague, JOHN bound down by a myriad of small regula­ regardless of party, to put over the Presi­ MARSHALL BUTLER, Republican, of Maryland, tions, taxes and conditions that did not dent's recommendations and to initiate and has pointed out, there is little need for fur­ apply to their competitors. Gulliver, you to pass other specific, concrete proposals to ther studies. He declares that the Archives remember, could have snapped one or sev­ give our railroad industry some equity with of the United States already are "bulging eral of the strings, with ease, but when there its competitors. with 36,000 cubic feet of studies on trans­ were thousands of threads around his huge portation." arms and legs, he was relatively powerless. As most of those familiar with transport Likewise, the railroads have been ham­ problems know, a lengthy study of rail prob­ strung, debilitated, and rendered almost pow­ lems, in relation to its competition, was made erless, too, by a myriad of strings. My Cannot Trust TVA Public Power Boys under the direction of my senatorial col­ thought is that, unitedly and with vigor, league, GEORGE SMATHERS, Democrat, of the giant should begin to work to remove EXTENSION OF REMARKS Florida, only a couple of years ago, and the many of the threads that add to his impo­ OF facts have not changed so greatly since then tence, or sap his strength. as to require new studies, new investigations, TAXES HON. GORDON H. SCHERER or new ways of wasting the taxpayer's Tax-wise, railroads have been considered OF OHIO money. fair game by every little municipality and IN THE HOUSE OF REPRESENTATIVES It seems to me that a united effort, coming every State. There is no reason to repeat at this time, not only would do much to Wednesday, June 6, 1962 alert the Congress to the pressing needs of the figures--for one railroad or for all of them-for they are a matter of public rec­ Mr. SCHERER. Mr. Speaker, the the railroad industry but also once more ord in every case. Yet, if the railroads could .would focus the public's gaze on the railroad just get a 10-percent reduction in local real other day I received a letter from Mr . industry and its many problems. There estate or other taxes, it would go far toward F. I. Fairman, president of Kentucky would be subsidiary benefits--millions of restoring their vigor and competitivity and Utilities, in which he tells of the activi­ younger Americans-having been brain­ the equity of the competitive race among ties of TVA officials encouraging city washed, so to speak, to believe only in cars, the forms of transport. officials to pressure the Congress to per­ buses, and trucks-would be able to get ac­ Likewise, in the Federal Establishment quainted with facts about fast-moving mit TVA to expand its territory. He freight by train and the vitality of the rail­ much more could be done to give the rail­ brings up a matter that should be of roads a tax break. Some railroad interests utmost concern to every Member of this road industry today. supported the new tax revision act (which Something must be done-and it ought to provided for a 7-percent tax credit in the House. be done now-to impress upon the people the form passed by the House of Representa­ It might be said that this particular staggering growth in population ahead, and tives), although they knew that this ap­ problem had its beginning in 1959, be­ the problems to be posed by this growth, in proach was not the best. Faster deprecia­ cause as I see it, we in the Congress made terms of moving both manpower and ma­ tion, in my view, is the correct approach to two mistakes. The first mistake was in terials from one place to another. There is helping industry tax-wise, from the stand­ no reason to tear up rails to build bigger permitting TV A to get out from under point of Uncle Sam's enormous tax-hands, the direct control of Congress by financ­ highways, when traffic jams get longer and but I couldn't blame those in the railroad more frequent. There is every reason to be­ industry who favored the tax credit idea. ing its future construction through the lieve that railroads can play a bigger part The railroads need every form of tax help sale of revenue bonds. In working out in moving both men and materials in the they can get, and anyone fam111ar with the the amendment to the TVA Act which future than they are playing now and that facts knows that in desperation an industry would perm.it revenue bond financing, they will represent the most economical way, will accept a "half a loaf," rather than no the Congress established-at least it from the overall standpoint of all our people. help whatever. thought it was establishing-an area PRESIDENT'S MESSAGE ONLY A MESSAGE Local, State, and Federal authorities can limitation within which TVA was to con­ The President's commendable message was do much to remove some of . the strings ·fine its operations. just that-a message. As they say in the which bind down the rail industry, too, by Then we made our second serious mis­ book field-"words on paper are only words tightening both laws and inspection forces take by allowing six cities to be excepted on paper." In Government, words on paper on "illegal cargo," which has moved around are stacked away in archives or libraries and the Nation in increasing quantities in re­ from the area limitation simply because become somewhat meaningless without ac­ cent years. There's really no telling-ac­ it was said those cities had contemplated tion. The time for talk is not over, but a cording to men who have studied this sub­ getting TVA power at sometime in the time for talk and action certainly has ar­ ject-how much freight ls moved by unregu­ future. rived, in regard to rail problems, as these lated carriers who have no business carrying It may be recalled that several of our relate to local, State, and National Govern­ the freight. colleagues thought at the time this was ments. They escape taxation, in most ways, and whatever they carry obviously is subtracted a bad move and so expressed themselves There is a real danger, in this session of 6, Congress, that the Senate may take action from the freight that would be available to on the floor of the House. On May on ill-conceived proposals to halt mergers the legitimate carriers in the transportation 1959, I said: and to delay needed · consolidations in the industry. Is anyone so naive as to believe that, as rail field. If the railroad industry, by failing One of the great problems in Govern­ time goes on, TVA will not find additional to take unified action on the President's ment---considering the multiplicity of prob­ excuses or reasons why other communities program-and on other legislation designed lems which face the legislators and the ad­ should be included as exceptions to the Vin­ to be of positive benefit to rail management ministrators all the time-is that of focusing son amendment? In fact, I Just learned that and workers alike-allows those who would attention on the plight of one industry and amendments are to be offered which will put the Interstate Commerce Commission in getting prompt and effective remedial legisla­ exempt additional communities from the a straitjacket to gain the limelight, it tion. The rail industry has gone along for operations of the Vinson amendment. Does would be tragic for the railroad industry and literally decades, seeking to get its story be­ anyone believe that, after TVA has been given for the country. fore the Congress in such a way as to rectify its bond-issuing authority, assaults will not The White House has furnished Congress age-old damages and troubles, and still there be made to repeal the Vinson amendment? a wonderful document in the President's are delays and much hedging all over the message, and railroad leaders, in my view, lot. I believe that with a unified effort now, I said at the time that the ink would were correct in hailing it as a partial answer in view of the report on "featherbedding" of not be dry on the bill before the prop­ to many of their current and upcoming prob­ the Presidential Railroad Commission and of aganda campaign for decimation of the lems. the President's emphasis on new legislation Vinson amendment would begin. Well, Yet, my call for action is not limited mere­ and procedures, it may be possible for the Mr. Speaker, the record of the past cou­ ly to the generally fine recommendations railroad industry to make more progress this ple of years clearly shows it did begin made by President John F. Kennedy. year, and in the upcoming 88th Congress, and has been going on ever since. I believe that local and State governments, than it has made in many, many years of through various tax changes and reforms, desultory "business as usual" effort. After the revenue bond act was passed can make life a bit easier for the railroads The truth is that the railroad industry one of TV A's first moves was to start con­ and certainly can make the competitive race has many friends in Congress, on both sides struction of a gigantic steam electric between railroads and trucking companies of the aisle, who recognize the realities of generating plant in Kentucky at the ex­ more equitable, As events have worked in the situation and earnestly want to do some- treme northern edge of its territory. 1962 CONGRESSIONAL · RECORD- SENATE 9893 One would think that economy and good would save in power rates, the venture is be ·glad to work with Cumberland on any engineering would dictate that a power­ worth working for. legal problems encountered." In discussing the possibility of changing It was explained that Cumberland would plant would be located as close as pos­ the law, by a.n act of Congress, General Vogel be closing the door on eventually getting sible to the population centers where the said: "We're using your water (southwest TVA power if another 20-year franchise were power would actually be consumed. But Virginia. is in the TV watershed) to help pro­ given. in locating the Paradise steamplant TVA duce pmyer, and you are not getting any of seems to have had motives other than the benefits. That's a. strong moral point." Mr. Speaker, are we appropriating sound engineering and economics in When one of the TVA officials was pinned Federal funds to pay the salaries of mind-like perhaps wanting a steam­ down, when his advice was asked on the con­ General Vogel, Mr. McCarthy and other plant at the edge of its territory so it troversial ODP franchise proposals, he an­ officials of TVA so that they can go swered, "If you sign the franchise you'll around the countryside trying to get could start agitation for extension of its lock the door." boundaries. people worked up against the intentions As soon as possible after the act was I do not know how many more meet­ of Congress? ings TVA representatives have had with Some of my colleagues were no doubt passed, some of the exempted cities in sincere in their belief that if we gave Kentucky authorized elections to deter­ officials of cities outside the TV A area in mine whether they would kick a good promoting dissatisfaction with electric TVA authority to finance with revenue taxpayer, Kentucky Utilities, out and service they are now getting and trying bonds and limited the area in which it take subsidized TVA power. One would to drum up agitation for TVA power, but could operate that we would relieve our­ I am sure they must have been quite selves of a continuing worrisome prob­ think that this was a decision that lem. Obviously, we have not. That should be made solely by the citizens of active. I have here, for example, an excerpt should be clear to all who follow the the community involved but that did not machinations of that outfit. All we did deter TVA. During the campaign pre­ from Tri-City News of Cumberland, Ky., dated January 25, 1962, with a headline was to relieve TV A of close congressional ceding the election, TVA officials were in scrutiny. It had always been a sacred these cities advising, and I am sure cam­ that reads: cow; but, so long as it was dependent paigning for TVA power. Local officials "TV power for Cumberland is possible," upon appropriations, the Congress could of rural electric cooperatives also joined says General Vogel. exert some semblance of control over it. in the campaigns even to the extent of This article refers to a meeting that We turned it loose; now I want to ask running advertisements in the local you what control do we have over it? newspapers. Cumberland officials held with the TVA board. I want to quote a news state­ The bureaucrats running it apparently Mr. Speaker this is quite a picture to ment from the Tri-City News: have no more respect for the wishes and paint in your mind's eye-there was sub­ intentions of the Congress than the sidized TVA and nontaxpaying rural Gen. Herbert D. Vogel, Chairman of the Communists have. electric cooperatives, financed by 2-per­ Tennessee Valley Authority, told city officials at a. meeting in Knoxville last Thursday that When we created TVA the majority cent Treasury funds, spending money TVA power for Cumberland is possible, and apparently thought we were entering for a campaign in a local municipal elec­ that the TVA powerlines are located only upon a great natural resources develop­ tion on an issue that was none of their 10 miles from the city. Vogel also stated ment venture that would bring prosperity business. Since Kentucky Utilities is a that the nearest TVA substation was located to a weak and downtrodden area of ~he heavy taxpayer, it might be said that this only 31 miles from Cumberland. He said country. We were to develop the rivers company was being forced to put up that his board would be glad to work with providing flood control and navigation some of the money-at least indirectly­ Cumberland officials in any way possible in and, as an incidental byproduct, some that TVA and the electric cooperatives their quest for low-cost power. cheap electric power that could be dis­ were using against it. Director Wagner said, "Never let up in your drive for low-cost power. Getting lower tributed through existing facilities for If this was not bad enough, now we power rates would mean better living condi­ the benefit of the homes in the area. We have an even more serious situation. We tions and great savings for all the citizens. were to conserve the soil, reforest untill­ have TVA board members, headed by the It would also be an inducement to industry." able lands and develop methods of pro­ chairman actively urging officials of Mayor Isaac requested General Vogel to ducing different types of fertilizer. In cities outside the TVA area to pressure outline the proper steps for the city to follow fact, we were to develop a virtual Congress to amend the act and permit in getting TVA power. Vogel said, "The paradise. expansion of the TVA territory. I for main hurdle to overcome is to get congres­ . The dream did not last .very long; a one have enough problems that come up sional action to amend the TVA Act passed in 1959 which limited the area TVA can mghtmare took its place. The socialized naturally without having some bureau­ serve." power boys got control. They kicked crats out trying to stir up more people Vogel continued, "It is possible for the out old Dr. Morgan, the original chair­ to put pressure on us. people of Cumberland to have low cost TVA man, because he still believed that elec­ How did this come about? It seems power if they are willing to work for it." tric power should be an incidental by­ that Kentucky Utilities, an investor­ Mr. Speaker, I want every Member of product subordinated to the legitimate financed electric utility company, functions of the agency. They then set through its subsidiary, Old Dominion this House to listen carefully to what General Vogel told these city officials to forth with interest-free money and ex­ Power Co., was attempting to renew its emption from Federal taxation to devel­ franchises with some electric customers do to put pressure on the Members of Congress. I am still quoting from the op a giant Federal power monopoly and in Wise and Lee Counties and the city of that is what we have today: This in­ Norton in southwestern Virginia. At Tri-City News. satiable Federal octopus has its tenacles this same time, according to the July 27 He then enumerated the steps the city pounding at the boundaries established 1961, issue of Coalfield Progress, a news~ officials should take. by the Congress and if we ever weaken paper of Norton, Va., officials of Wise 1. Start work at once on the Kentucky delegation in Congress to get a commitment and let one of these tentacles break and Lee Counties and the city of Norton through they will break through in all met with Chairman Herbert Vogel and from them to extend the limits of the TVA service area to include Cumberland. directions. It would only be a matter of other officials of TVA. The following 2. Get neighboring cities in Virginia to time before TVA would occupy the en­ account of this meeting is quoted from work on their delegation to also support the tire Southeast. · the Coalfield Progress: extension. · When we were considering a boundary, _Tennessee Valley Authority officials in 3. With these two congressional delega­ TVA proponents, including its officials Knoxville, Monday morning, told representa­ tions behind your efforts, let them work for vigorously opposed such restriction~· tives from Wise and Lee Counties, and the your cause with their fellow Senators and while at the same time disclaiming any city of Norton, that their only "loophole" in Representatives until enough are favorable getting TVA power into the area is by an to it. desire to expand. A review of the news­ act of Congress. 4. Get other nearby cites in Virginia and paper articles I quoted disclose the hy­ They tempered these cold, hard facts, how­ Kentucky who want TVA power to join pocrisy of their denials. Oh, they will ever, by stating that such an act is not out Cumberland in their efforts. deny promoting expansion and say they of the realm of possibility. They told the General Vogel said, "Feel free to contact were only fulfilling their official duties group that for the amount of money they our general counsel, Mr. McCarthy. He will · by advising citizens as to why TVA could 9894 CONGRESSIONAL RECORD - SENATE June 7 not serve them. But, Mr. Speaker, the They volunteered the services of the contempt of the Congress. I suppose it actions of TVA agents far exceeded any TVA general counsel in ·working out the would be expecting too much to think official duties. legal problems. . the administration would call them on They encouraged citizens to pressure They volunteered the help of the TVA the carpet for such things because our the Congress to extend the TVA bound­ board in promoting expansion of TVA's Federal agencies that handle electric aries to serve them. operating area. power matters have been loaded with They told them they were entitled They cautioned the cities against re­ Government power advocates who would to the power because their water helped newing franchises with existing suppliers probably encourage these activities. generate it. Of course, they did not tell lest they close the door against TVA · But I do think Members of Congress them that if they got TVA power, three­ service. on both sides of the aisle should be in­ fourths of it would be generated in steam Then they threw out the ever-enticing censed at these public officials who so plants. bait of bringing new industries into the utterly disregard the wishes of Congress They said that the question of their cities with cheap TVA power. I suppose and encourage others to bring pressure getting power was a "strong moral the hunting ground for such· industries to bear on its Members. point." Were they insinuating that Con­ would be your and my districts as it has No, Mr. Speaker, we did not get rid gress was immoral in denying them the been in the past. of the TVA problem-it is just beginning, power? Mr. Speaker, do these activities of TVA And we will never be rid of it until we They instructed cities in the procedure officials strike you as being legitimate deprive it of its socialistic status and to follow in pressuring the Congress to duties of Federal employees? They put it on the same basis as investor­ extend TVA boundaries. strike me as bordering on the verge of financed proprietary businesses.

MESSAGE FROM THE PRESIDENT ment to the budget for the fiscal year 1963, SENATE in the amount of $955,500, for the Library A message in writing from the Presi­ of Congress (with an accompanying paper); THURSDAY, JUNE 7, 1962 dent of the United States submitting a to the Committee on Appropriations, and nomination was cominunicated to the ordered to be printed. The Senate met at 12 o'clock noon, Senate by Mr. Miller, one of his secre­ APPOINTMENT OF ADDITIONAL ASSISTANT SEC­ and was called to order by Hon. LEE taries. RETARY OF STATE METCALF, a Senator from the State of A letter from the Assistant Secretary of Montana. MESSAGE FROM THE HOUSE State, transmitting a draft of proposed legis­ The Chaplain, Rev. Frederick Brown A message from the House of Repre­ lation to authorize the appointment of one Harris, D.D., offered the following additional Assistant Secretary of State (with prayer: sentatives, by Mr. Maurer, one of its an accompanying paper); to the Committee reading clerks, announced that the House on Foreign Relations. Eternal God, our Father, Thou hast had passed the following bills, in which ordained that not in cushioned seats of it requested the concurrence of the Sen­ AUDIT REPORT ON PANAMA CANAL COMPANY safety, but in danger and stem conflict ate: AND CANAL ZONE GOVERNMENT A letter from the Comptroller General of shall we find our strength and our tri­ H.R. 11665. An act to revise the formula for umph. the United States, transmitting, pursuant to apportioning cash assistance funds among law, an audit report on the Panama Canal In our hearts, O Lord, we cherish the the States under the National School Lunch Company and Canal Zone Government, fiscal golden heritage that has been bequeathed Act, and for other purposes; and year 1961 (with an accompanying report); us through the virtue and valor of those H.R. 11879. An act to provide a 1-year ex­ to the Committee on Government Opera­ whose records within these legislative tension of the existing corporate normal­ tax rate and of certain excise-tax rates, and tions. halls have helped to make the greatness for other purposes~ REPORT ON REVIEW OF ADMINISTRATION 01' of our free land. PUBLIC ASSISTANCE PROGRAMS AND SURPLUS Inspire us, we pray, so to follow their FOOD DISTRmUTION PROGRAM, DISTRICT 01' shining example that we, the children HOUSE BILLS REFERRED COLUMBIA GoVERNMENT of their faith, may not only hold our in­ The following bills were each read A letter from the Comptroller General of heritance as a precious trust, but by our twice by their titles and referred as in­ the United States, transmitting, pursuant to loyalty, love, and labor may leave it with dicated: law, a report on the review of administra­ increased luster to those who, after us, H.R. 11665. An act to revise the formula tion of public assistance programs and sur­ shall inherit the land still bright with for apportioning cash assistance funds plus food distribution program, Department freedom's holy light. Amen. of Public Welfare, District of Columbia gov­ among the States under the National School ernment, dated June 1962 (with an accom­ Lunch Act, and for other purposes; to the panying report); to the Committee. on Gov­ Committee on Agriculture and Forestry. ernment Operations. H.R.11879. An act to provide a 1-year DESIGNATION OF ACTING PRESI­ extension of the existing corporate normal­ REPORT ON REVIEW OF WAGE RATE DETERMI­ DENT PRO TEMPORE tax rate and of certain excise-tax rates, and NATIONS FOR CONSTRUCTION OF CAPEHART for other purposes; to the Committee on HOUSING AT MARINE CORPS SCHOOLS, QUAN­ The legislative clerk read the follow­ Finance. TICO, VA, ing letter: U.S. SENATE, A letter from the Comptroller General of PRESIDENT PRO TEMPORE, LIMITATION OF DEBATE DURING the United States, transmitting, pursuant to Washington, D.C., June 7, 1962. law, a report on the review of wage rate de­ To the Senate: MORNING HOUR terminations for construction of Capehart Being temporarily absent from the Senate, On request of Mr. MANSFIELD, and by housing at the Marine Corps Schools, Quan­ I appoint Hon. LEE METCALF, a Senator from unanimous consent, statements during tico, Va., Department of Labor, dated June the State of Montana, to perform the duties the morning hour were ordered limited 1962 (with an accompanying report); to the of the Chair during my absence. to 3 minutes. Committee on Government Operations. CARL HAYDEN, REPORT ON REVIEW OF AUTOMATIC DATA PROC- President pro tempore. ESSING SYSTEM USED IN SUPPLY MANAGE­ EXECUTIVE COMMUNICATIONS, MENT BY DEPARTMENT OF THE NAVY AVIA­ Mr. METCALF thereupon took the ETC. TION SUPPLY OFFICE, PHil.ADELPHIA, PA. chair as Acting President pro tempore. The ACTING PRESIDENT pro tem­ A letter from the Comptroller General of pore laid before the Senate the following the United States, transmitting, pursuant to communication and letters, which were law, a report on the review of automatic THE JOURNAL referred as indicated: data processing system used in supply man­ agement by the Department of the Navy On request of Mr. MANSFIELD, and by PROPOSED AMENDMENT TO THE BUDGET, 1963, Aviation Supply Office, Philadelphia, Pa., · unanimous consent, the · reading of the FOR LIBRARY OF CONGRESS (S. Doc. No. 99) dated May 1962 (with an accompanying re­ Journal of the proceedings of Wednes­ A communication from the President of port); to the Committee on Government Op­ day, June 6, 1962, was dispensed with. the United States, transmitting an amend- erations.