1110 EXTENSIONS OF REMARKS January 13, 1'977 EXTENSIONS OF REMARKS REMOVING THE EARNINGS LIMITA­ situation as typical of many senior citi­ RECORD the complete text of my bill, and TION ON SOCIAL SECURITY zens, Richard L. Tobin, executive director I urge my colleagues to fully support this of the Saturday Review, recently stated legislation. in the New York Times: H.R. 1768 HON. BENJAMIN A. GILMAN If your income derives from stocks or bonds A blll to amend title II of the SoclaJ. Secu­ OF NEW YORK and not from a paycheck, you can collect rity Act to reduce from seventy-two to IN THE HOUSE OF REPRESENTATIVES the whole Social Security check each month. siXty-five the age beyond which deductions But for those of us who live from paycheck on account of an individual's outside earn­ Wednesday, January 12, 1977 to paycheck, and whose income comes di­ ings wlll no longer be made from such Mr. GILMAN. Mr. Speaker, today I rectly from the sweat of our aging brow, individual's benefits am introducing legislation eliminating there is little or no chance of our beg1nn1ng Be it enacted by the Senate and House of to collect on the Social Security benefits Representatives of the United States of the earnings limitation on social security we've been entitled to ever since we hit 65. benefits paid to individuals age 65 and America in Congress assembled, That (a) For senior citizens who must live "from subsections (c) (1), (d) (1), (f) (1) (B), and over. (j) of section 203 of the Social Security Act Under the present social security sys­ paycheck to paycheck," the earnings are each amended by striking out "seventy­ tem, individuals between age 65 and 71 limitation attached to social security two" and inserting in lieu thereof "siXty­ receive a reduced social security benefit benefits, robs these citizens, as Mr. Tobin five". of $1 for every $2 earned above $3,000 a further stated, "of a chance to retire, at (b) Subsection (f) (3) of such section 203 year-or $250 per month. Individuals least partially.,. 1s amended by striking out "age 72" and in­ who are age 72 and over are exempt Second, the earnings ceiling promotes serting in lieu thereof "age 65". . from this earnings limitation and may the wrong set of values. It encourages (c) Subsection (h) (1) (A) of such section 203 1s amended by striking out "the age of receive their entitled social security ben­ some elderly individuals who are willing 72" and "age 72" and inserting in lieu there­ efits regardless of the amount of their and able to work, not to work out of fear of in each instance "age 65". earned income. of suffering reduced social security ben­ (d) The heading of subsection (j) of such Mr. Speaker, according to a Social Se­ efits-or no benefits at all. Senior citizens section 203 . is amended by striking out curity Administration publication enti­ who are able to continue their occupa­ "Seventy-two" and inserting in lieu thereof tled "Monthly Benefit Statistics"-De­ tional endeavors do not fully receive "SiXty-five". cember 28, 1976--20.5 million retired their benefits from the social security SEc. 2. (a) The last sentence of section 203 (c) of the Social Security Act 1s amended workers and their dependents were eli­ program, but they inequitably continue by striking out "nor shall any deduction" gible in 1976 for social security benefits to pay into the program, supporting their and all that follows and inserting in lieu amounting to nearly $4.2 billion. Francis able contemporaries who elect not to thereof "nor shall any deduction be made J. Crowley of the Congressional Record work, and pay income taxes on their under this subsection from any widow's or Service, in a paper entitled "The Social earnings. widower's insurance benefit 1f the widow, Security Retirement Test," stated: Historically, this Nation has valued surviving divorced wife, or widower involved The Social Security Administration actu­ self-reliance and the work ethic. Penaliz­ became entitled to such benefit prior to at­ aries intimate that in 1976 the cost [of re­ ing elderly citizens who are willing and ta1n1ng age 60.". pealing the retirement test] would be about able to work by reducing their social se­ (b) Clause (D) of section 203(f) (1) of $6-$7 b1111on. If the test were eUminated for curity benefits is detrimental to this pre­ such Act 1s amended to read as follows: people age 65 and over ... the average cost "(D) for which such individual is entitled to would be about ... $2.7 billion. cept and discourages able senior citizens widow's or widower's insurance benefits 1f from working. It robs our older Ameri­ she or he became so entitled prior to attain­ Some authorities claim that at least cans of their self-esteem, personal dig­ ing age 60, or". 2.5 million retired workers between age nity, and self-reliance, promoting their (c) Section 203(f) (5) (D) of such Act ts re­ 65 and 71 are directly affected by the institutionalization. Productive senior pealed. earnings ceiling, and other authorities citizens become premature candidates SEc. 3. The amendments made by this Act shall apply only with respect to monthly ill­ are not certain as to the amount of rev­ for nursing homes or park bench pigeon surance benefits payable under title II of enue that would be returned to the feeders. the Social Security Act for months in tax­ Treasury through income taxes if the Finally, the argument that able senior able years ending after the date of the en­ earnings ceiling was lifted. Fortunately, citizens deprive younger individuals of actment of this Act. some aspects of the retirement test are employment has not been thoroughly clear and I would like to share the fol­ studied or demonstrated, especially since lowing thoughts with my colleagues: many elderly citizens reduce their oc­ First, many senior citizens cannot cupational activity or become semi-re­ BILL TO PERMIT INDIVIDUALS WHO retire on the combined social security tired-but, for many of these citizens, HAVE RETIRED ON DISABILITY OR benefits and the low earnings limitation. at the expense of their entitled social WERE ENTIT'LED TO RETIRE ON In the current, highly inflated economy, security benefits. However, even if the DISABILITY TO CONTINUE TO BE these individuals must work in order to argument has some merit, this would be COVERED BY THE SICK-PAY support themselves. But if they work and a high price for this Nation to pay. An EXCLUSION AS IT EXISTED PRIOR their earnings exceed $3,000 a year-or earnings limitation and other policies TO THE TAX REFORM ACT OF 1976 $250 per month-then they are denied that promote forced retirement of elderly their full social security benefits-bene­ individuals deprive this Nation of valu­ fits that they and their employers con­ able skills and talents. With unemploy­ HON. JOSEPH L. FISHER tributed through payroll deductions and ment at unacceptably high levels, let us OF VIRGINU benefits that morally, if not legally, be­ not perpetuate this economic condition long to the retiree. by discouraging elderly citizens from IN THE HOUSE OF REPRESENTATIVES To argue that the social security pro­ working by reducing their hard earned Thursday, January 13, 1977 gram was created to insure against loss benefits. Mr. FISHER. Mr. Speaker, today I am of income "following withdrawal from I support repeal of the retirement test, reintroduing a bill I offered last fall to employment and not, like private insur- but in the alternative, I support increas- enable those individuals who had retired ance, to provide annuities at a prescribed ing the earnings ceiling on social security on disability or were entitled to retire on fixed age" is a broken promise to every benefits paid to senior citizens. disability as of October 1, 1976, to con­ individual who contributes hard earned Mr. Speaker, in the interest of encour­ tinue to claim the so-called "sick-pay" wages to the social security program and aging our older Americans who are exclusion of $5,200 per year for disabil­ who expects, upon retirement, to receive willing and able to work without being ity payments received. the full benefits without any conditions penalized by reduced social security ben­ Although I voted for the Tax Reform attached to the promise. Citing his own efits, I am inserting at this point in the Act of 1976 and strongly supported many January 13, 19'77 EXTENSIONS OF REMARKS 1111 of its reform measures, I did so despite applies to this taxable year and all sub­ of Formosa. A combat pilot on the USS my strenuous objection to particular sec­ sequent years. Thus, individuals who re­ Wasp, he was captured by the Japanese tions of the bill. lied upon current law in preparing their and held until the end of World War II One of those sections which I strongly estimated tax return may find that they as an unregistered prisoner in various opposed was the change made under the owe a whopping tax bill at the end of the Japanese prison camps. At the end of bill to the so-called sick-pay exclusion year because of this retroactive change in hostilities he was found in a prison camp from income for disability payments re­ the law. in Omori, Japan and returned to the ceived. After an initial waiting period, To .remedy this harsh result, Mr. United States for rehabilitation, where the sick-pay exclusion as it existed prior Speaker, today I am introducing a bill he was personally greeted by President to passage of the Tax Reform Act per­ that will enable those who have retired Harry Truman. mitted an employee to exclude from in­ on disability on or before October 1 of His life back in the States since that come up to $100 per week received under this year or who were entitled to retire time has been equally impressive. Judge wage continuation plans when he is ab­ on disability as of that date to continue Millers' untiring activities in church, sent from work on account of injury or to receive the $5,200 annual exclusion for charitable, and civic organizations over sickness. disability payments or sick-pay received. the last 30 years are too numerous to de­ The tax reform bill retains the maxi­ The income ceiling would not apply to tail here, but those of us who have been mum annual exclusion of $5,200 for dis­ those covered by this rule. privileged to work with him-or merit ability payments but establishes new re­ Furthermore, my bill will promote his friendship-have reaped professional quirements which a taxpayer must meet equity under the tax laws by placing and personal rewards from his counsel, in order to qualify for the exclusion. civil service and private disabled re­ his wisdom, his work and his goodness. First, beginning with this taxable year, tirees under roughly the same standards I am glad to have had that opportunity­ the sick-pay exclusion will be available as military retirees. Under the Tax Re­ form Act as passed, all those who had and know that the man will be sorely only to ta:xpayers under 65 years of age missed. who are permanently and totally dis­ joined the Armed Forces as of Septem­ abled. Permanent and total disability is ber 24, 1975, will continue to be protected defined in the conference report to re­ under the law as it existed prior to en­ actment of the Tax Reform Act. I spon­ JAMES A. PAVLICEK, SYMBOLIC quire that a person be unable to engage OF SCOUTING in any substantial gainful activity by sored the move to protect all servicemen reason of a medically determinable phys­ and would like to extend this principle ical or mental impairment which can be of fairness to include retirees from civil HON. JOSEPH M. GAYDOS reasonably expected to result in death service and private employment, who re­ OF PENNSYLVANIA or which has lasted or can be expected tired on disability partially in reliance on the income tax treatment of sick-pay IN THE HOUSE OF REPRESENTATIVES to last fur a continuous period of not less Thursday, January 13, 1977 than 12 months. In addition, the confer­ and disability as it was prior to the Tax ence report indicates that proof of dis­ Reform Act. I believe that fairness and Mr. GAYDOS. Mr. Speaker, the ability must be substantiated by the tax­ equity dictate that they not be penalized achievement of Eagle Scout in the Boy payer's employer who must certify that because of a change in the tax laws, but Scouts of America is an honor shared by the disability status assigned to the indi­ instead that they be permitted to receive relatively few Americans. It is an award vidual was approved under procedures the benefit of the "sick-pay" exclusion which requires considerable time, effort from income without regard to the new and talent on the part of the Scout and a a~ceptable to the Internal Revenue standards or the income ceiling, if they Service. great deal of sacrifice and dedication on Of perhaps even greater importance to were retired or entitled to retire as of the part of those who advise him. residents of northern Virginia is a sec­ October 1 of last year. Consequently, when a young American ond additional requirement that reduces attains this honor, I feel privileged to call the amount of the $5,200 annual exclu­ it to the attention of my colleagues in sion on a dollar-for-dollar basis for each the Congress of the United States. In dollar of the taxpayer's adjusted gross JUDGE :MILLER RETIRES this particular instance, I am speaking income in excess of $15,000. Thus, a dis­ about a young man from North Braddock, abled retiree would no longer be entitled HON. JOHN B. BREAUX Pa., James A. Pavlicek. to any portion of the $5,200 exclusion OF LOUISIANA Jim is an active member of Troop 344 when his adjusted gross income reaches at St. Helen's Roman Catholic Church $20,200. This provision blatantly dis­ IN THE HOUSE OF REPRESENTATIVES in east Pittsburgh, and his attainment criminates against married couples by Thursday, January 13, 1977 of the Eagle Scout rank tops a long list requiring that the disabled retiree's in­ Mr. BREAUX. Mr. Speaker, the long of accomplishments: Holder of various come be combined with that of his spouse and outstanding career of one of the offices in the troop, 26 merit badges, 11 in determining whether the taxpayer's leading members of the Louisiana ju­ skill awards, 2 historical trail awards, adjusted gross income exceeds $15,000. diciary has come to a close with the re­ and the Ad Altari Dei Medal. He also Although abuses of current law oc­ tirement of Third Circuit Court of Ap­ holds membership in the Braddock Gen­ curred when certain individuals were im­ eral Hospital Explorer Post and the peals Judge Minos D. Miller, Jr. Brotherhood of the Order of Arrow. properly classified as disabled on retire­ The honorable judge began his service ment simply to obtain the benefits of Jim now is working to attain certifica­ the exclusion from income, nonetheless, in 1953 as the sole 31st judicial district tion as a junior scoutmaster as well as I feel that Congress has overreacted to judge, a post he held for 15 years and striving for the Pope Pius religious em­ this situation by penalizing those who held well, having been cited by the Ju­ blem and an Eagle palm. had legitimately retired on disability in dicial Administrator of Louisiana for Quite frankly, I believe Jim Pavlicek reliance on the current income tax treat­ maintaining a current docket with no could serve as an example of what the ment of "sick-pay." Instead of urging backlog of cases. Boy Scouts of America represents. One that the standards to be met in order to In 1968 he was elected to the appelate of six children, he is a hardworking qualify for disability status be tightened court and has served many times on the youth who contributes to the family's at the employer's level, the approach State supreme court by special appoint­ financial responsibilities by holding down adopted in the bill fixes a rigid standard ment. Judge Miller has also chaired or three paper routes and a part-time job in the tax laws which has the effect of served on numerous special committees at a local restaurant. changing the conditions under which a appointed by the supreme court dealing According to his scoutmaster, Mr. Jo­ substantial number of disabled people with the administration of justice, a vital seph F. Venturella, Jim is an excellent had previously retired. concern to us all. student at St. Thomas' IDgh School in Moreover, the income ceiling of $15,000 It is a record you would expect from a Braddock. His interest in photography deals a particularlY cruel blow to resi­ man so willing to serve his country. Mil­ has led to his serving as the official pho­ dents of a high cost-of-living area, such ler served in the U.S. Navy for 4'!2 years tographer for Troop 344. And, following as northem Virginia. Worse still is the and was awarded the Purple Heart when graduation, Jim has his eyes set for a effective date of the new provision, which his plane was shot down over the island career in medicine. ~ 1112 EXTENSIONS OF REMARKS January 13, 1'9'77 Mr. Venturella is understandably Chamber of Commerce, the Professional ances was held. A young man from Ken­ proud of his young charges. He points Baseball Player Association, Knights of osha, Wis. named Orson Welles, was at­ out the troop is relatively young, having Columbus, and the Chicago Automobile tending the Todd School, an executive organized in 1964, but in a short period Trade Association, to cite just a few. boys' school then located in Woodstock. of time three of its members have at­ Perhaps nothing says more about the The summer festival series that year tained the coveted rank of Eagle Scout. nature and character of a human being included such classics as "Hamlet" and The troop, he reports, is an active one; than the way in which those who know "Macbeth" and was attended by luminar­ camping from Pittsburgh to Canada and him best feel about him. At the birthday ies such as the distinguished author and participating in various community proj­ party in his honor last month, it was playwright Thornton Wilder, who then ects; tree plantings, litter cleanup cam­ clear that Tony has the love and respect was teaching in Chicago. When the festi­ paigns and pageants. of those who know him. He is a person val ended, Mr. Welles left Woodstock to Mr. Speaker, on behalf of the Congress, who cares about and gives of himself to join Katharine Cornell for the winter I extend our official congratulations to others. He surely deserves, and I wish season. James A. Pavlicek, who, in the words of for him, many days of continuued sun­ In 1948, several seasons of winter stock Mr. Venturella, is a "citizen, Scout, and shine and joy-just the kind of day you played the Opera House. Their casts in­ student who has proven to be a credit to experience at White Sox Park with the eluded Geraldine Page, Paul Newman, his family and his community." Sox seven up in the ninth on a balmy Shelley Berman, Tom Bosley, Betsy Pal­ June afternoon. mer, and Lois Nettleton. Days they worked in local stores or offices and nights they trod the boards at the Opera TONY PIET CELEBRATES 70TH House as members of the Woodstock BffiTHDAY WOODSTOCK, ILL., RESTORES Players. HISTORIC OPERA HOUSE But by 1974, city offices had been moved HON. MARTY RUSSO elsewhere. Should Woodstock destroy or OF ILLINOIS HON. ROBERT McCLORY restore the Opera House building? The OF n.LINOIS community rallied. Local citizens headed IN THE HOUSE OF REPRESENTATIVES by Marjorie Sharpe, president of the Thursday, January 13, 1977 IN THE HOUSE OF REPRESENTATIVES Woodstock Fine Arts Association, got the Mr. RUSSO. Mr. Speaker, last month a Thursday, January 13, 1977 Opera House placed on the National Reg­ remarkable gentleman in Tilinois cele­ Mr. McCLORY. Mr. Speaker, we talk a ister of Historic Places. brated his birthday and today I want to great deal about grave problems in this The Woodstock Opera House Commu­ extend a belated congratulations to Mr. House, about issues of economics and na­ nity Center, Inc., came into being tore­ Tony Piet, 70 years young. tional defense, unemployment and hu­ store it. Don Still of the Woodstock State I also want to tell my colleagues about man justice. Today, I wish to relate a Bank served as treasurer; Ray Pensinger, Tony Piet. It is a pleasure to know him story of a community proud of its historic a local doctor, was president, and Mrs. and I feel my colleagues would share in past, its prosperous present, and its Strohm became executive secretary. my admiration and respect for him if promising future. People responded. Of the approxi­ they were fortunate enough to know him Woodstock, Ill., in my 13th Congres­ mately half million dollars the final personally. sional District, became aware in 1974 restoration will cost, two-thirds came Anthony F. Piet, Sr. was born Decem­ that a glorious structure it calls its opera from individuals in amounts from a dol­ ber 7, 1906 in Berwi~k. Pa., to John house was not a relic of the past but was lar to $50,000, and one-third will come Stanley and Mary Danczuga Stanley. For as essential to the city's well-being as from the city itself. The largest private 44 years he and wife Panina have shared good air, good water, and good govern­ donation came from Alice and the late a beautiful marriage and they raised a ment. Dave Joslyn, lifetime Woodstock people fine family of four: Natalie Jean, Letitia Those of us who know and love Wood­ whom I have known for years. Joyce, Antoinette Celeste, Anthony F. stock, the county seat of McHenry Dave's grandfather, Mayor Merritt Piet, Jr. County, cannot imagine its town square Joslyn, signed the bill to erect the Opera In 1929, in the little town of Corsicana, without the old opera house which be­ House in 1888. The auditorium, where I Tex., Tony Piet entered professional gan its career both as the city hall and have been a guest many times, will be baseball. It was a career that would last opera house. It is to Woodstock as the named the Alice and David Joslyn nearly 10 years and :find him wearing the U.S. Capitol is to Washington, D.C.-its Auditorium. uniform of the Pittsburgh Pirates, the scepter and its crown. Mr. Speaker, unfortunately there is Cincinnati Reds, the Chicago White Sox, On Saturday, February 5, Woodstock neither time nor space to list all the and the Detroit Tigers. will dedicate its restored opera house. I names of those responsible for this great Tony's skills and talents extended· well look forward eagerly to being there, be­ civic outpouring. But I do want to cite beyond the baseball field and after his cause as we as a nation learned so vivid­ the current elected Woodstock officials: retirement from the game he became ly during our Bicentennial last year, only Mayor H. Joseph Gitlin, and council founder and then chairman of the board those who recognize the cultural, historic, members Richard Hahn, James Shoe­ of Tony Piet Motor Sales in Chicago. He and political roots that produced them maker, Frances Kuhn, and Ralph Stork. also demonstrated his compassion and can fully grasp the present or seek to Mr. Speaker, in the jargon of the his willingness to share his talents by mold the future. bureaucracy what Woodstock has done organizing Baseball Anonymous-to pro­ Mr. Speaker, it is with pleasure and might be called urban renewal. I see it vide aid to former baseball players-and pride that I share with my colleagues as much more. To preserve what mat­ organizing the Little League baseball some of the history of this building gen­ tered yesterday for today and tomorrow club on Chicago's south side as well as erously sent me by Mrs. Lillian Strohm, requires far more than brick and stone organizing and serving as president of a dedicated and highly motivated con­ and plaster. I call it spiritual renewal. the Marquette Little League Baseball stituent who is president of the Wood­ Club. stock Opera House Community Center. Tony has an extensive list of honors Woodstock, which now has a popula­ DEDICATING A NEW ARK and awards, such as the Chicago Park tion of 15,000, became a city in 1873. By District "Man of the Year Award" as an 1889, work had begun on this extraordi­ Adult Youth Leader, the Outstanding nary building with an exterior in the HON. LESTER L. WOLFF Service Award from the Chicago Lawn "Romanesque revival" style and an in­ OF NEW YORK Moose, WTZO Radio's Man of the Year terior called "Steamboat Gothic" and IN THE HOUSE OF REPRESENTATIVES Award, the Regional Ben Franklin "carpenter style"-a jewel of that period Thursday, January 13, 1977 Quality Dealer Award, and the Brand we call Victorian. Name Retailer of the Year Certificate of It was dedicated in style in 1890 befit­ Mr. WOLFF. Mr. Speaker, in the Distinction. ting the dream it represented. The Patti Jewish faith, the ark is the tradition~) This energetic gentleman is, as you Rosa Players, then billed as the leading house for the Torah-"the tree of life for might imagine, an active member of opera troupe in the Midwest, performed those who take hold of it." The ark is the many community, business and service "Margery Daw" for the grand opening. first thing that the Hebrews built and groups, such as the Marquette Manor In 1934, a notable series of perform- carried with them for 40 years across the January 13, 19'77 EXTENSIONS OF REMARKS 1113 Sinai, once out of Egypt. It is therefore THE SOBERING STORY OF AUS­ creases in 1973 would bring. Nevertheless, by 1974 Australia's economy was in a frighten­ understandable that the ark is one of the TRALIA'S BIG SPENDING ing mess. Inflation had soared as high as 28 most important objects that a synagogue percent in a single month. Why? A July 1975 will own, for it is the birth of Jewish law. HON. ELFORD A. CEDERBERG International Monetary Fund survey stated On December 19, 1976, the Great Neck it bluntly: "The origins· of the Australian Synagogue, of Great Neck, Long Island, OF MICHIGAN recession are to /be found 1n domestic devel­ dedicated a new ark. The ark was dedi­ IN THE HOUSE OF REPRESENTATIVES opment." cated in the honor of Rabbi Dr. Ephraim Thursday, January 13, 1977 MONEY MILL R. Wolf "in recognition of his 20 years Those developments began in mid-1972. A of devoted service" to his congregation. Mr. CEDERBERG. Mr. Speaker, as conservative coalition of the Liberal Party For a congregation to dedicate an ark is President Ford stated last night, we (representing the urban middle class) and have come a long way under his stew­ the National Country Party (representing perhaps the greatest honor that they can rural interests) had been governing without bestow on their rabbi. I had the great ardship. We have a ways to go yet, and it will be the challenge of this Congress interruption since 1949. Despite a good record pleasure and honor to participate in this in managing Australia's postwar develop­ special service on behalf of the Great and the new President to strive for the ment, the senior coalition member, the Lib­ Neck community. I was more than goals which all Americans seek. eral Party, appeared to have stagnated after pleased to share this great day with We must, however, keep the lessons so long in office. And in the 1972 election it Rabbi Wolf, his family, and his congre­ of history in mind. Our own recent eco­ was not able to counter the appeal of a nomic difficulties can be instructive. We dynamic Labor leader, 56-year-old Sydney gation. Sharing with me in this celebra­ lawyer Gough Whitlam. For the first time in tion of their new ark and devoted rabbi can also, however, learn from the ex­ periences of our friends around the nearly a quarter-century, normally conserva­ were Mac Mender, chairman, board of tive Australians elected a socialist govern­ trusees; Godfrey Dallek, master of cere­ world. We are all familiar with the im­ ment. monies; David Yagoda, president, Great pact which the unrestrained growth of Within days of taking office, the Whitlam Neck Synagogue, and Rabbi Dr. Israel social programing has had on govern­ government plunged into a socialist-minded Miller, vice president of Yeshiva Univer­ ments such as Britain and Sweden. restructuring of the Australian economy. New sity. Great Britain is today struggling under expenditures were voted for free college edu­ something close to economic chaos. cation, increased aid to schools, higher un­ In this connection I bring to the at­ employment compensation and old-age pen­ sions, and subsidies for sports and the arts. HAPPY 92D BIRTHDAY tention of my colleagues an article from "Few of us bothered to count the cost in the January 1977 issue of Reader's Di­ those early days," Fred Daly, one of Whit­ gest outlining the experience of Aus­ lam's ministers, later confessed. "We spent HON. EDWIN B. FORSYTHE tralia. The article states graphically and money as if it were going out of fashion." OF NEW JERSEY starkly the result of leaping before we Almost immediately, inflation accelerated: IN THE HOUSE OF REPRESENTATIVES take a good hard look at the cost of the consumer price index jumped 8.2 percent Government programs. We can and in the first six months of Labor rule. In­ Thursday, January 13, 1977 creased unemployment benefits and relaxed must meet the legitimate needs of our eligibility regulations began to foster a wel­ Mr. FORSYTHE. Mr. Speaker, Jan­ citizens. The experience of the Aus­ fare mentality. One economist estimated that uary 11 marked the 92d birthday of a tralians, however, reminds us of the 10,000 persons stopped working. Handouts for woman, Whom I am proud to say is a need for prudence and caution. I com­ young unemployed workers in particular member of my constituency, who was a mend the article to my colleagues' care­ more than quadrupled, and the number of champion of equal rights for the wom­ ful consideration: "surfies" (beach bums) increased substan­ an's movement, Miss Alice Paul. THE SOBERING STORY OF AUSTRALIA'S BIG tially. A new life-style known as "dole bludging" (government-subsidized loafing) Miss Paul never subscribed to the no­ SPENDING proliferated. tion that women were second -class citi­ (By Anthony Paul) zens. Educated at Swarthmore in 1905, PADDED PROGRAMS In April 1975, the Australian economy was As Labor prepared its first budget (1973- she earned her Ph. D. at the University in its worst shape since the Great Depression. 74), senior civil servants warned that the of Pennsylvania in 1912 at a time when The country's socialist Labor government was economy could absorb a government spend­ women rarely were permitted to enter running a $3-bllllon deficit, five percent of ing increase of only $1.8 billion. Determined college. Immediately she became active the gross national product. Business confi­ to have its new programs, however, Labor in the sufiragette movement. dence had all but vanished, unemployment lifted outlays by $2.3 billion. Judicious tax­ Organizing the National Woman's had soared to the highest level in 30 years ing might have dampened the resultant in­ Party, which had a membership of 50,- and inflation had accelerated to an annual flation, but Labor had pledged not to in­ 000, she battled for passage of the 19th rate of 13.4 percent. In Canberra, Australia's crease taxes. Instead, it announced an across­ federal capital, a wry joke went the rounds: the-board 25-percent cut in tariffs. By ex­ amendment. Finally, after many years "The only Australian factory working day posing Australia's tariff-protected industries of being beaten and jailed for her causes, and night is the government mint." to foreign competition, Labor reasoned, the 19th amendment was ratified by the Eight months later, the Australian people, prices would be forced down. For the same States. in their most decisive vote in recent history, reason, the government also formed a Prices Although the women's party distinte­ threw the Labor government out of office. Justification Tribunal, charged with limiting grated into confusion as to its future role But the story of Labor's three-year rule company profits. after the amendment's passage, Miss makes a sobering case study of what can The policies backfired. Many factories, un­ happen to even such an economically advan­ prepared for the invasion of cheaper imports, Paul's efforts for total equality for wom­ taged country as Australia when high-spend­ closed down. As a direct result of the cuts, en continued on. She worked diligently ing proponents of big government. are voted at least 23,000 workers lost their jobs. And to gain complete equality for women into power. inflation reached 13 percent. through the passage of an equal rights Australia, the "Lucky Country," as Aus­ The Labor government also set out to boost amendment to the Constitution. This tralians began calling it in the 1960s, has one wages and benefits. It pushed through a 17.5- struggle began in 1923. While it 1s not of the world's highest living standards. With percent pay increase and a fourth week's an­ widely known, Miss Paul wrote and had a population of 13.5 million, it produces nual vacation for the 245,000 federal civil introduced into the U.S. Congress the much of the West's wool, wheat and sugar. servants, and supported a. trade-union plan Minerals abound: 70 percent of the world's to extend the longer vacation to private in­ first equal rights amendment. The spirit zircon; a near-monopoly of titanium ore; one dustry. In three years, Australian wages rose of that first amendment was constantly quarter of the non-communist bloc's ura­ 70 percent, while industrial productivity in­ introduced from that point on until its nium; plentiful supplies of coal, iron, copper, creased le~s than one percent. passage by this body in 1972. bauxite, silver, lead and zinc. During the election campaign, the Labor My fellow Members, we all owe a debt According to World Bank figures, Australia Party had argued that its trade-union links of gratitude to Miss Paul for her tireless also has the West's most egalitarian economy, would enable it to negotiate more effectively efforts on behalf of freedom and equal­ with the smallest gap between rich and poor. with militant unions. But in Whitlam's ity. Her motto, "equality of rights under When Labor came into office in late 1972, first year, strikes proliferated and 2,634,000 unemployment was just 2.4 percent and in­ working days were lost (a 31-percent increase the law shall not be denied or abridged flation 4.5 percent--an economic perform­ over the previous year) . by the United States or by any State on ance matched only by West Germany. And Civil servants warned the Labor govern­ account of sex" is still a worthwhile with 70 percent of Australia's oil coming from ment of the need for 1974-75 budgetary re­ goal. I am sure t.hat my colleagues will local wells, she should have been relatively straint to curb inflation. Labor hesitated as join with me in wishing her a happy insulated from the world inflation that the its factions fought; contradictory budgets birthday. oil-producing countries' sudden price in- were put forward month by month. Business 1114 EXTENSIONS OF REMARKS January 13, 1'9'77 confidence further slumped and unemploy­ Tira.th Ha.ssaram Khemlani, who claimed to The U.S. and the Soviet Union bear about ment rose. Finally Whittam fired his treas­ be in touch with rich Arab sheiks. equal responsibility :for allowing the llllclt urer, Frank Crean, and replaced him with Details of the proposed borrowing under­ traffic in military weapons to get out of con­ Deputy Prime Minister Dr. Jim Cairns of the scored the Labor government's consistent trol. Sma.ll, sophisticated arms designed to party's left Wing. lack of sympathy for the Australian taxpay­ put more firepower into the hands Of in­ The new treasurer's inability to say "no" er. The loan was to have been repaid at com­ dividUal soldiers are rolUng off assembly lines to socialist colleagues' pet programs earned pound interest-but with no payments !or in both countries, and are being shipped to him the nickname "Dr. Yes." Soon Canberra 20 years. Thus, !or the $4 billion, the next other countries around the globe. Suppllers buzzed with alarming stories of what the generation of Australians would have had to don't keep track of what happens to them Sydney Bulletin called the government's repay an astonishing $17.6 billion. Moreover, after that. "handout industry, the fastest growth area in Khemlani was to have received a. 2% -percent Often, the arms land on the black mar­ the Australian economy." Concerned that lo­ "finder's commission"-$100 million! ket, where they are readily available to any­ cal governments were not spending all the When these details leaked to Parliament one with the patience to develop the right money available to them, the Department of and the press, the uproar was such that connections. An estimated $5 billion in arms Urban and Regional Development published Whitla.m was forced to withdraw Connor's that the U.S. abandoned in Vietnam hasn't a 57-page book, Sources of Funds and How permission to raise the loan. When the min­ even hit the black market yet, knowledge­ To Apply for Them. Members o! Parliament ister quietly continued his negotiations with able U.S. authorities say. If the Vietnamese voted themselves a 37-percent salary in­ Khemla.ni, the press uncovered this, too, and begin dispersing that arsenal, it should be crease. Cairns presided over a cabinet meet­ COnnor was obliged to resign. Within two even easier for ama. teurs to arm themselves ing that listed the cell1ng on public-service months, the Labor government had been In the years ahead. hirings, and in Labor's three years in office swept away. A landslide anti-Labor vote re­ From a shelf in almost any library, you the number of public servants increased 12.6 turned the conservative coalition to power. can pull down the military reference text, percent. Last May, in his first televised address to "Jane's Infantry Weapons," and find a grim SKYROCKETING STAFFS the nation, the new Prime Minister, Malcolm catalog of destruction. An antipersonnel In a development familiar to Americans, Fraser, referred to some political truisms grenade maker's ad guarantees "uniform dis­ these soaring administrative overheads trag­ which many countries besides Australia have persion of fragments in every case." A firm ically negated many of the well-meaning recently neglected. called Euroinissile boasts that its product programs which Labor introduced. Perhaps "Over the past year or so," he said, "the enables "a mere infantry soldier" to destroy the most poignant example was welfare for view had begun to develop that we could enemy tanks within a 6,500-foot range ("min­ the sadly disadvantaged remnants o! the have It a.ll without really having to pay for imum training required") and lists write­ Aborigines, Australia's native race. Deter­ it. But one of the things we've got to under­ away addresses in France and Germany. mined to do something about their misery, stand is that when politicians promise Jane's also features detailed, illustrated in­ Whitlam sponsored a threefold spending in­ things, they are not promising anything of structions on how to assemble and operate crease on Aboriginal programs. In response, their own, because they have nothing of their almost every known small arm, !rom the the Department for Aboriginal Afi'airs own to give. They are promising something Thompson submachine gun to the M-11 and promptly doubled its staff and poured much which is yours, and the more politicians pro­ the Strela. missile. of the new funds into 89 largely fruitless re­ Inise, the less there is for you to meet your Some 14,000 of the M-11 and a slmlla.r M-10 own needs or your farn11y's needs. The less have been made. They list !or $80 each, al­ search projects, including an attempt to there is for industry, for investment, and to farm turtles and crocodiles. Aboriginal wel­ though when a Marietta., Ga., manufacturer create jobs needed to improve the real wealth of the guns went out of business recently, fare became a self-sustaining bureaucracy, of Australia.." with a huge share of the government money M-lOs were sold at auction !or $5 to licensed going to social workers, administrators, re­ dealers and representatives of foreign gov­ searchers and consultants. Observed Canberra ernments. "They're all over the world now," political commentator Peter Samuel, "If the mostly in Third World countries, says Geof­ Department's whole budget was simply paid HOW TERRORISTS OBTAIN U.S. frey WerBell of Powder Springs, Ga., whose to the Aborigines, each man, woman and WEAPONS ON THE BLACK MARKET father helped design the guns. child would get $1800. Instead, each Aborig­ EASY TARGET: JETLmERS inee received an average of $96." The Strela 1s a Soviet-made, heat-seeking, As the recession deepened and inflation HON. THOMAS J. DOWNEY precision guided missile. It can be toted com­ continued, the government launched its OF NEW YORK fortably on your back. Launched from the single most expensive program yet--Medi­ IN THE HOUSE OF REPRESENTATIVES ground, it will knock a jetliner out o! the bank, a system of free universal health ca,re sky at altitudes of up to 6,560 feet. Accord­ which added some $1.8 billion yearly to the Thursday, January 13, 1977 ing . to Jane's, Third World countries that taxpayer's burden. Medical costs now began Mr. DOWNEY. Mr. Speaker, headlines have taken delivery of Strelas include the to climb at a. rate outstripping even inflation. concerning the activities of terrorists People's Democratic Republic of Yemen Physicians' fees increased 20 percent in the (which has proclaimed an alliance with rev­ first year of operation. General practitioners have alarmingly increased both in this olutionary movements elsewhere), Egypt, would order unnecessarily full pathological country and throughout the world in North Korea., and India.. U.S. intelUgence tests for their pa,tients, then pass on the en­ recent years. Terrorist use of U.S. mili­ sources say Strela.s also have shown up in tire charge to the government. Some doctors tary weapons has too often been the real almost all Arab countries and some African reportedly were seeing up to 20 nursing­ story behind these headlines. A report on nations, including Mozambique. home patients an hour and billing Medibank. this issue, written by Jonathan Kwitny, In 1973, Italian police burst in on five Medibank, said the editor of The Medical appeared in the January 11 edition of the Arab terrorists setting up Strela.s in a rented Letter, had become "a. multimillion-dollar, Wall Street Journal. I urge my colleagues apartment four miles from Leonardo da Vinci money-eating machine." Airport near Rome, directly under the traffic All told, Australian federal spending to consider his article on this pressing pattern for the north-south runway. Intelli­ reached an estimated $26.3 billion in 1975- problem: gence sources suspect that those Strela.s were 76, up a. staggering 80 percent in just two (From the Wall Street Journal, Jan. 11, 1977] shipped originally from the U.S.S.R. to Egypt, years. THE TElUtORISTs--THluviNG BLACK MARKET which in turn sold them to Libya. Libya. •s THE KHEMLANI AFFAm PUTS Mn.ITARY WEAPONS INTO AMATEURS' head of state, Moammar Kha.da.!y, is said to It was appropTiate, perha,ps, that a gov­ HANDS distribute arms to almost anyone who will ernment so careless of money should pass (By Jonathan Kwitny) use them against a government he opposes. from the scene over a. money scandal-the The M-11 might be called the perfect as­ Libya. has obtained from the U.S.S.R. large all-but-incredible brouhaha. called the sassination weapon. A U.S.-made hand ma­ quantities of RPG-7 rockets, which weigh Khemla.ni Afi'air. chine gun that fires bullets by gas propul­ under 10 pounds and can destroy a tank, let This was an attempt by the Labor govern­ sion without sound, 1lash or smoke, It can alone a. limousine or speaker's platform. In ment to borrow $4 billion in Middle empty its 32-round cUp in approximately 1.7 turn, Libya is believed to have supplied the Eastern petrodolla,rs by going outside normal seconds. It comes in two pieces, each nine Provisional Wing of the Irish Republican governmental fund-ra1s1ng channels. With­ inches long, and weighs about seven pounds. Army with RPG-7s and other weapons. A out notifying Parliament, a group of high­ With it, one U.S. arms dealer says, "I could boatload of arms that intelligence sources ranking cabinet members, including Whit­ kill a hundred people in the next room and had tracked all the way from Libya was in­ lam, authorized Minerals and Energy Min­ you'd never hear it." tercepted off the coast of Northern Ireland ister Rex Connor to borrow funds for un­ The world is glutted with arms like the in 1973. The IRA has used RPG-7s against specified "temporary purposes" (belleved to M-11: lightweight, lethal, low-cost and easy armored British military vehicles and police have been the_nationalizing of large seg­ to use. They are being produced in such installs.tlons. ments of the mining industry). Their inter­ quantity and with so few controls that get­ PENTAGON IS MIDDLEMAN mediary was to have been, not one of the ting them poses no problems !or any group of u.s.-ma.de weapons also find their way large New York or London banks tradition­ revolutionaries, vigilantes, terrorists or just into the hands of revolutionaries and ter­ ally used by the Australian Treasury, but, in­ plain crazies who are w1lling to spend a llttle rorists, though usually not directly through stead, a Pa.k1sta.n1 money merchant named time looking. the government. Most are siphoned of! into January 13, 19'77 EXTENSIONS OF REMARKS 1115 the black market after lawful sales to for­ firm and now with the U.S. Arms Control of weapons and munitions were frequently eign governments or private individuals. and Disarmament Agency, calculated that written o1f as inventory errors Without any Most shipments of U.S. arms to foreign more than 85 xnillion such weapons are scat­ investigation.'' countries are commercial transactions, as tered around the world. She counted only Weapons purchased from U.S. companies opposed to the military-aid programs com­ the dozen or so most popular rifles, excluding by South American governments for use by mon in the 1950s. Many such sales, espe­ the M-16. (Although Colt won't disclose pro­ their internal police forces often wind up cially of big-ticket items like fighter-bomb­ duction figures for the M-16, Miss Clapp es­ in the hands of right- and left-wing ter­ ers, are made with the Defense Department timated that 25,000 were being manufac­ rorist groups there, according to several acting as middleman. (Foreign governments tured each month, a figure that agrees with sources, including Michael T. Klare, visiting and U.S. manufacturers often prefer title to Pentagon reports.) fellow at the Center for International the goods and payment to flow through the The immense stockpiles held by private Studies at Princeton University. Mr. Klare, Pentagon.) Other sales, especially of small arms dealers also suggest that there are far a specialist in international arms traffic, says arms suitable for guerrilla use, are made di­ more guns being made than there are sol­ right-wing groups often obtain weapons di­ rectly by manufacturers to foreign buyers. diers to use them. Probably the largest such rectly from the police, who covertly encour­ All sales must be approved by the State De­ dealer is Samuel Cummings, whose firm, In­ age vigilante-style terror that they can't partment, which keeps a list of hundreds of terarms, is based on Monaco and has agents carry out officially. Left-wing groups, he U.S. concerns that have registered to obtain with pipelines into virtually every country says, steal the same weapons by raiding arms-export licenses from the government in the world. Mr. Cummings says-and police depots. on a sale-by-sale basis. others have verified-that his warehouses The State Department's decisions on over­ Among the most popular mA weapons contain more than 500,000 light arms and seas arms transfers are made after consulta­ are the A.Rr-15 rifle, made by Colt Industries more than 100 million rounds of ammuni­ tion with the Department of Defense and Inc. in New York, and the A.Rr-180, made by tion. That is enough to equip 40 military the Arms Control and Disarmament Agency. Armalite Inc., a privately held company in divisions, more than twice as many as the Recipients must pledge not to transfer the Costa Mesa, Calif. Both weapons can be U.S. has 1n active service. arms to third parties without American per­ bought legally in the U.S. by almost anyone. Mr. Cummings says he pays $5 to $25 for mission. But a system for enforcing such (They are considered civilian "sporting" surplus submachine guns for example, and promises doesn't exist. weapons.) Both are versions of the M-16, the sells them for $25 to $60 after rebuilding State Department officials refuse to dis­ principal U.S. military rifle, which was de­ them. Arms experts say that the Costa Rican cuss on the record whether violations of the veloped by Armallte and is manufactured by civil war of the 1950s, the 1961 Bay of Pigs no-transfer agreement have occurred. Gen. Colt and its licensees. Jane's lists the price invasion in Cuba and possibly other wars Howard Fish, who directs the Pentagon's of an M-16 at $85; the A.Rr-15 and AR-180 were fought with weapons that both sides had review of foreign arms sales, says U.S. em­ commonly retail for about twice that. bought from Mr. Cummings. bassies keep "very very good control" of Federal law prohibits the sale to civilians CIA CONNECTIONS American arms sent overseas. He says he 1s of fully automatic weapons-those that fire unaware that the mA has been using Amer... repeatedly like a machine gun. For the civil­ The American taxpayer helped establish Mr. Cummings in this lucrative business. He lean-made weapons. ian market, the manufacturers doctored the SMALL ARMS GO UNNOTICED fully-automatic M-16 slightly and came up served as a weapons expert in the Army in With the semiautomatic A.Rr-15 and A.Rr-180, the 1940s, then went to work for the Central Officials of the CIA, the Army and the which fire one shot for each pull of the trig­ Intell1gence Agency. In the early 1950s he set arms control agency all acknowledge that ger. With just a few hours of tinkering, how­ up a private international concern that sold they don't keep close tabs on U.S. weapons ever, the A.Rr-15 and A.Rr-180 can be made arms for the CIA. Some observers think it was shipped overseas. It was ascertained in other fully automatic. Many IRA weapons re­ an arms-laundering operation controlled by interviews that nobody else does either. covered by the British have been recon­ the agency. Interarms, a successor firm, now Government officials say that the transfer of verted in this way. seems largely independent of U.S. control­ major weapons systems, such as military air­ except, of course, when it ships arms into or Guns found on mA members have been craft, probably would be noted in the ordi­ traced by their serial numbers to American out of this country. However, it's doubtful nary course of Intelligence. But the transfer buyers, but this hasn't provided sufficient that Mr. Cummings could operate so suc­ of small arms probably would not, they add. cessfully were it not for the contacts he made As for the amount of investigation that evidence to convict the Americans. A federal while with the CIA. court in Philadelphia recently reversed the precedes the granting of arms-export licenses Mr. Cummings and many other private convictions of five men for illegally shipping by the State Department, a recent case in­ arms dealers say they sell only to govern­ volving an attempt to put 10,000 U.S. sub­ more than 100 AR-180s to the IRA. Though ments, and there's no indication that they the serial numbers showed that the Ameri­ machine guns on the black market 1s hardly do otherwise. But Washington sources say reassuring. Seven men, including the former cans had purchased the guns in the U.s., these arms often end up on the black market the court noted that the serial numbers of military chief of staff of El Salvador, v;rere through official corruption, theft, or a gov­ convicted in federal court in New York for guns sold overseas aren't registered. It might ernment's collusion with nongovernment be proved, the court said, that the original conspiracy to violate the arms-export laws. groups. And, the sources add, some private As part of the conspiracy, the El Salvador buyers didn't simply sell the guns through arms dealers don't have scruples about whom a licensed exporter to an approved foreign m1litary chief was charged with taking a they sell to. $75,000 bribe to provide phony export docu­ buyer, who then transferred them to the When it comes to guns, Communist gov­ mA. The court did uphold the group's con­ ments. The documents were submitted to ernments have a reputation for being as the State Department as evidence that the viction for conspiring to sell the guns me­ profit-minded as any private trader in the gaily, but only because the men unwittingly guns were needed by his country's armed West. According to many reports, SoViet arms forces. disclosed their plans to a government under­ often hit the black market through a Czech Apparently unaware that El Salvador's cover agent who testified against them. trading company that operates through a armed forces number only about 5,000 men, David Hopkins, who prosecuted the case purportedly independent arms dealer in the State Department began routine process­ for the Justice Department, thinks the gov­ Amsterdam. ing of the export request for the 10,000 guns. ernment should record the serial number, Persons who are aligned with revolution­ Before a decision could be reached, how­ place of origin and destination of every ary causes but are unwill1ng to pay black­ ever, the conspirators made the mistake of weapon leaving the country legally. How­ market prices can get free or cut-rate arms bringing an undercover Treasury Department ever, he acknowledges that the number of at Libyan embassies in Europe, according to agent into their plan, and he turned them in. weapons involved is "awe-inspiring." French sources. The method isn't guaran­ Indeed, the defense in the Philadelphia teed, but with a few months of waiting it SOUTH AFRICAN SHIPMENTS case, arguing that the AR-180s could have has been productive, the sources say. The State Department did approve a se­ entered Ireland from almost anywhere, pre­ Another ploy, of course, is theft. One haul ries of arms sales over the past few years in sented a State Department report showing taken from a well-stocked arms depot can which the end purchaser was South Africa, a that 2.5 million firearms were legally ex­ keep a violent group and even its allies in country under a U.S. arms embargo. The ported from the U.S. in the five years end­ other countries supplied for years. Grenades Justice Department 1s investigating the ing last June 30. That figure didn't include stolen in 1972 from a U.S. military depot in sales, made by Colt, the Winchester Group the three firearms that anyone leaving the West Germany by anarchists known as the of Olin Corp. and possibly other arms manu­ U.S. 1s allowed to take with him unlicensed. Baader-Meinhof gang are believed to have facturers to third-party countries that trans­ Nor did it include the many U.S. firearms-­ been used two years later in other parts of ferred the weapons to South Africa under including M-16s and AR-180s-that are Europe by Venezuelan and Palestinian ter­ prearranged plans. Colt and Olin say the manufactured overseas under licensing rorists. sales were engineered without their knowl­ agreements, or firearms sent abroad for use Ml:SPLACED MUNITIONS edge by employes who were fired after the by U.S. troops that are "lost," siphoned o1f In April 1976, a House Armed Services sub­ sales were discovered. But when a former or stolen. committee reported that uncounted tens of Colt employe pleaded gullty to an Ulega.l 8 5 Mn.LION RIFLES thousands of U.S. military weapons have sale last July, u.s. District Judge Robert (J. In a 1970 study designed to show the been lost or stolen from storage. The sub­ Zampano in Connecticut said he doubted abundance of military rifles in circulation, committee found that records were "hap­ that the deals could have been made without Priscilltl. Clapp, then with a private research hazard" and that "losses of sizable quantities the knowledge of "higher ups" at Colt. 1116 EXTENSIONS OF REMARKS Janua,ry 13, 1'9'77 Bra.ndo Alvy of the Justice Department mary causes of higher inflation. We are incident triggering the oil pollution is says, "The cases we have found have left thus m the position of rewarding our­ caused by his willful misconduct. The tracks. I'm sure there are scores of cases selves for causing a problem rather than bill also contains an expedited claims we don't know anything about." Some authorities stlll hope that a.n effec­ solving it. We appear to be more con­ settlement process and a procedure for tive international agreement can be made cerned with our own welfare than with the Government to recover the costs of controlling the spread of the sophisticated the good of the Nation. removing oil pollutants, a most essential new weapons. The U.S., for its part, has for­ We cannot ask the American people guarantee of speedy action when a criti­ bidden Third-World sales of its Redeye mis­ to have faith in their Government unless cal and controllable spill occurs. sile, similar to the Soviet Strela.. Iran, for and until the Government, and Congress This legislation breaks new ground in example, has been denied Redeyes despite in particular, sheds its image of self­ numerous ways, not the least of which repeated requests for them. aggrandizement and is seen by Ameri­ are the claimant's right to recover for A SOVIET LIMITATION? cans as being concerned with the well­ economic losses, such as the loss of Brian Jenkins, a Rand Corp. researcher being of the ordinary citizen. profits or the impairment of earning ca­ who has written extensively on terrorism, I hope, Mr. Speaker, that by repeal­ pacity, and the Attorney General's au­ believes that the Soviets might agree to ing the cost-of-living escalator for our­ thority to bring an action for loss of tax some such 11mltatlon. "When a. couple of air­ liners get knocked down and one of them is selves, we can take a positive step toward revenue due to injury to real or personal a.n Aeroflot," he says, the Soviets may begin restoring the confidence of the people in property. Moreover, the bill contains en­ to limit sales of Strelas to Third World coun­ their Government. hanced incentives for a polluter to un­ tries. He adds: "In whose interest is it to dertake immediate cleanup or restorative have hundreds of these things loose in the action by providing for compensation for world?" the cost of cleanup in excess of his limit But the battle to control more conven­ COMPREHENSIVE on.. POLLUTION of liability. tional weapons is clearly lost. An American LIABll..ITY AND COMPENSATION doctoral student, just back from Bangkok. The legislation stands to relieve real reports that M-16s were selling in stores ACT OF 1977 human suffering in a most cost-effective there for $50 to $100, even though such sales manner, and to improve the quality of are illegal in Thailand. A French journalist life by a fair system of burdens, obliga­ who is writing a book on illegal arms sales HON. PHILIP E. RUPPE tions, and benefits. We can wait no says he has accompanied arms dealers on OF MICHIGAN longer. The time is ripe for action now, regular runs to Africa. He says that just be­ IN THE HOUSE OF REPRESENTATIVES and I welcome the support of my col­ fore being interviewed by this newspaper, Thursday, January 13, 1977 leagues in an effort to secure swift enact­ he talked to a. French dealer who was trying ment of this important measure. to black-market a shipment of 3,000 World Mr. RUPPE. Mr. Speaker, today I am War II American submachine guns for $20 each. introducing legislation designed to revise One arms-control authority says he's our laws dealing with the difficult prob­ THE CRISIS OF THE CITIES "frankly not that concerned" over reports of lems resulting from oil spills. The need illegal machine-gun trades because "they're for such legislation has once again sur­ already out of control." faced in connection with recent oilspills HON. JOHN CONYERS, JR. "Cut off the flow of munitions?" asks an­ off the coast of the United States. My OF MICHIGAN other rhetorically. "How are you going to bill will provide a comprehensive system IN THE HOUSE OF REPRESENTATIVES cut off the flow of arms to terrorists when of liability and compensation for oilspill you can't even cut off the flow of arms to Thursday, January 13, 1977 teen-agers who hold up stores right here in damage and removal costs. Washington?" The people of northern Michigan, sur­ Mr. CONYERS. Mr. Speaker, the crisis rounded by the beauty of the Great facing our cities is, in fact, a crisis of our Lakes, are especially sensitive to the im­ entire Nation. The cities are the cutting pact of water pollution on our natural re­ edge of the economic problem that is REPEAL OF THE CONGRESSIONAL sources and our economic livelihood. The crippling America, an analysis of which PAY RAISE dumping of taconite tailings into Lake is ably presented by Mayor Coleman Superior of Reserve Mining and the Young of Detroit in a recent article in introduction of PCB's into the Great Freedomways. His understanding of the HON. TOM CORCORAN Lakes environment have further demon­ urban problem has been honed and re­ OF n.LINOIS strated to the people of northern Michi­ fined through years of involvement and IN THE HOUSE OF REPRESENTATIVES gan the need to protect important ma­ struggle. rine resources. Too often the urban problem is con­ Thursday, January 13, 1977 Oil pollution represents a threat to the ceived merely in terms of crime and vio­ Mr. CORCORAN of Illinois. Mr. Speak­ Great Lakes as well as other coastal re­ lence, and the solution advanced is to ex­ er, in 1975, the Congress, by a one-vote gions and important waterways. My bill, pand the resources alloted to ever more margin, enacted into law an amendment speaking directly to this issue, would sophisticated equipment, support staff, which provided for annual automatic establish a single compensation fund for and patrolmen. But no amount of re­ cost-of-living raises for top executives of the protection of injured persons, includ­ sources going into the police sector can the legislative, executive, and judicial ing those who might suffer irreparable be effective so long as the economic de­ branches of the Government. The law harm from discharges into waters of the pression existing in most American cities provides that Members of Congress and Great Lakes. continues to deprive citizens of the basic others named in the law should receive The size of the fund would be $200 means of survival, let alone decent liveli­ the same annual raise as is given to civil million, and would be financed, in large hood. For crime, outandish as it may service employees under the Pay Com­ measure, by a fee of 3 cents per barrel seem, is not primariy caused by criminals. parability Act. of oil. The fee is to be assessed against Crime in the aggregate is more funda­ I believe this was a mistake. The Pay refineries receiving crude oil and owners mentally the product of desperation that Comparability Act was set up to provide of terminals receiving any oil for export issues from joblessness, poverty, and annual raises for civil service employ­ or import into the country. I believe the community disintegration. It emerges ees, not political officials, whether elected fee is low enough to avoid unnecessary when a neighborhood, a city, a nation or appointed. Nor was the law written cost burdens on the consumer of oil has so degenerated in its capability and to include the top executives of Govern­ products. commitment to provide for the well­ ment in the survey on which the recom­ The key provisions of the bill are those being of people that individuals feel that mended pay raises are based. that would subject owners and operators stealing, mugging, or selling dope is not More importantly, I am strongly op­ of vessels to strict liability for damages an unacceptable means of survival. posed to the concept of automatic cost­ caused by oil pollution. The limit of li­ When neighborhoods are starved of jobs, of-living raises for Members of Congress. ability for tankers would be $300 per social services, and supportive local in­ Cost-of-living is, after all, directly tied gross ton with a ceiling of $30 million stitutions-and once neighborhoods be­ to inflation, and Congress, through un­ per incident. Of course, the operator of a come defined as high crime areas, their wise spending policies, is one of the pri- tanker cannot limit his liability when the services disappear at an alarming rate; January 13, 1977 EXTENSIONS OF REMARKS 1117 when citizens are so desperate and iso­ only be achieved within a political system more and more the repository of the poor, the lated they must fend for themselves; by sharing in the levers of power of that aged and the Blacks. And there are those who then that community loses the prospect system. subscribe to a new theory, a new social and So, the freedom struggle, as I have known political theory that I describe as a "dough­ of marshaling enough political strength it, led me first to organize, to be a part of nut" theory-that suburbia can exist inde­ to fight for the larger interests necessary the organization of labor. The lesson I learned pendent of the vacuum in the center. Well, for recovery. there was the necessity of unity between that's a new theory of history, of economics. There is also the notion that urban de­ Black and white workers. Strains were put I thlnk no nation in the history of this world, cay is the direct outcome of changing on that unity, even then, and they have been no civilization has existed beyond the col­ racial and demographic patterns, in par­ constant. The polarization between the lapse of its cities. And .A.merica is no excep· ticular, the emergence of black-majority suburbs and the cities-polarization within tion. Part of the problem of our cities today cities. This notion simply reflects upon the city itself-the misconception that there is that America is blinded by racism and can­ ls an antagonism of interests between the not really understand that the crisis threat­ the racism that has immobilized the Na­ Black and white poor, I think, lies at the ening the cities threatens America, because tion for so long. And as Mayor Young root of our inability to deal effectively with the crisis of the cities is too often looked observes, the trend toward "regionaliza­ our problems. I think it is a significant and upon through race colored glasses. tion," whatever its other merits, would positive thing in the last ten years that The President was tempted to let New York wrest power from black-led cities to Black people working in the political system City fall, which is an indication of his full white suburbs, and from low-skilled and have been able to achieve a greater degree ignorance of the significance and importance marginal groups to middle-class profes­ of political representation. Although that of the great city of New York. One of the sionals. degree of political representation today reasons that New York was allowed to nearly probably approximates a previous height-­ go under is because New York is looked upon The real crisis that predicates urban and it is not new; we've been there before­ across the nation as a city of Jews--the decay is economic, not one of crime, race, it approximates the level that the newly Mayor is a Jew, Blacks--everybody knows or administrative process. Cities are the freed slaves echleved during the period of n:ost of them are on welfare, and Puerto product of massive, longstanding unem­ Reconstruction. I think if we look at history, Ricans-who are half Black and also on wel­ ployment and economic debility-of the we know the bitter lesson that progress can fare. And this is the national perception of flight of capital and jobs from central be wiped out in blood and repression. The New York! And many people beyond the cities to the suburbs as well as overseas, price of freedom is not only eternal vigilance, Huqson, including some in Detroit and Chi­ the relocation of industry in the relative­ but eternally to have the necessary man­ cago and other cities who should have known power in terms of your alliances to main­ better, blinded by their racial concept of ly union-free "sun belt," and of the ir­ tain your position. I think that the freedom what New York is, were prepared to see this responsibility of Federal policy in failing movement that has expressed itself through great city go down. As it was, New York City's to give a fair break to the young, the Black political leadership today is chal­ crisis damn near bankrupted the State of elderly, and the urban working class, lenged, but more than Blacks are challenged. New York which had no choice at that point black and white. These factors have com­ The existence of the cities is challenged, but but to come to the rescue of the city. It bined to strip cities of their economic much more than the cities are challenged. imperiled the credit and stabllity of every base, leaving behind a virtual wasteland Today, to a greater degree than we've had city in this state, and its shockwaves spread in which the generational cycle of pov­ in a long time, the future of this nation, as across the nation. erty acts itself out. we know it, is challenged. MANY CITIES BECOMING INCREASINGLY BLACK Economic depressions, unconscionable CRISIS OF CITIES IS NATIONAL CRISIS My city was approaching the bond market interest rates, pervasive poverty, and When I was here in 1974--I think it was to build a new hospital, and using New York wrecked neighborhoods are not matters, in conjunction with Martin Luther King's as an excuse, an extortionate rate of 9.8 per­ in the final analysis, which city halls and birthday celebration a.t a cathedral in New cent interest was charged the city of Detroit York City-! said at that time that the crisis on bonds which previously had paid 5 ~ community organizations can readily of the cities was a national crisis; that if percent. This is true in every city across this address, certainly not by themselves. And the cities were allowed to die, the suburbs nation. And so part of the threat in the therein lies the challenge to the new would surely die, and if the suburbs went perception of cities collapsing is the bonanza, administration and COngress. Unless the down, then the cities in our nation would a big profit bonus to Wall Street and to those Federal Government undertakes a thor­ die. I know that at that time Detroit was in who control the money markets. Most cities oughgoing economic reorganization that the forefront. Detroit is a bellwether, eco­ in this nation, or let us say, many cities, are nomically, in this nation, being the center of becoming increasingly Black. Detroit is the ceases to waste human resources--the the automobile industry, an early warning largest city, the only city of over one Inillion young and old who are eager to work and of economic trouble. It's been said that when that has a majority Black population and at produce, but who cannot find jobs--and the automobile industry catches a cold, De­ the same time a Black mayor. But many other commits the Nation to full employment troit catches pneumonia., and we were in cities are heading ln this direction. Chicago and rational economic management, we pretty bad shape already in the latter part is at about 40 percent Black and running. have little prospect of breathing eco­ of 1974. But you here in New York had not Cleveland is very, very close to 50 percent. nomic life back into, and revitalizing our yet felt the impact of that economic crisis Washington, Philadelphia, major cities across cities. With this in mind, I commend to that was known as the energy crunch. So the nation because of the Black immigration when I came here, I was beset by newsmen and, of course, the birth rate is a little higher the attention of my colleagues Mayor who looked at me as if I came from Mars, who in the Black population. As a whole within Coleman Young's perceptive article, could not understand the economic d11Ilcul­ the cities there 1s a younger population. All "Crisis of the Cities: A National Crisis," ties we were having in Detroit. And I couldn't these factors are combined to create a new which appeared in the third quarter 1976, understand why they couldn't understand situation in the cities. And so, Blacks have issue of Freedomways: our economic problems but could understand struggled to gain some degree, some handle CRISIS OF THE CITIES-A NATIONAL CRISIS the crime problems thart we were having in in the levers of power. Now that has been Detroit. As I was standing in Times Square achieved to a small degree, because whereas (By Coleman A. Young) talking to them, I had a feeling of not being Blacks comprise 11 percent to 12 percent of This has been a warm evening-warm in too safe-based on reports in the Detroit the population of this country, we are stlll the sense that the music and the spirit of newspapers. I said to them at that time, "De­ less than 1 percent of the elected officials. FREEDOMWAYs are apparent. I have been a troit today, New York tomorrow." Our prob­ Progress is relative. Obviously there's a long subscriber since 1961, when the publication lems are an early warning. I had no idea of way to go. But even that progress is be­ first began anC.: probably have most of the the depth of that prophecy. I could not fore­ grudged by some, and you find a move on issues published from the beginning. I've see--! guess none of us could have-the fa<:t now toward metropolitan government. always found it to be a faithful chronicle that the impact of the economic crisis would I just left Buffalo, and they're talking of an ongoing struggle. Of course, that strug­ hit New York so hard that literally several about regionalizing Buffalo. They're talking gle is with us today to a greater degree months later this great city, greatest city in about regionalizing Detroit. They're talking perhaps than any time in the past. I think this nation, one of the greatest cities in the about regionalizing practica.l.ly every city, it's been a long, hard struggle during my world, would be literally on its knees, at the ~d many Black people look upon this as lifetime-the early struggle to organize the point of bankruptcy. New York City's prob­ changing the rules in the middle of the labor movement, which was a critical one in lems have become a. national problem. game, as we reach for power. And this is the the '30's, early '40's and beyond that, the To one degree or another, every city in threat that is being held over the cities struggle within labor, the emergence of the America faces an exodus by middle-class, across this nation which refuse to surrender :freedom movement in the South which has largely white citizens, but there is a Black their autonomy-and that includes New York transformed itself in the recent period into, middle class fiight also. Blacks are a part of Olty, because after New York City got In as far as the Black people are concerned in the middle class to the degree that they can trouble, it had to be vtrtually surrendered to this nation, a struggle for political power, find some place to flee beyond the perimeter a receivership which was composed primarily based on the recognition that freedom could of the central city. The cities have become of the state and the bankers and the ftnan- 1118 EXTENSIONS OF REMARKS January 13, 19·77 ciaJ. interests. So as Black folks gain politi­ they want, again, to take our bus system, and today, and I can assure you the reports a.re cal power, as poor folks gain political power, the question is, one man, one vote. And exaggerated, of the crime situation in Detroit. the cities a.re taken over in a joint receiver­ again, it's one man, one bus. And maybe I I gather the New York Times has literally had ship by the state, the high level of govern­ wouldn't be so suspicious of my suburban a ball, runn.ing stories about how bad it was ment a.nd the monied interests. neighbors who talk about regionalizing ev­ in Detroit, that Detroit was dying. Well, we Now, in many, many areas like Mia.mi erything, except that I cannot understand have a rough gang situation. But it 1s little where this regional government concept was their spite and demands for our water and different from that of New York. I think that first ex:perimen.ted on in the United St81tes­ our buses and their vigorous rejection of the there's also some racism behind the sensa­ Jacksonville was another area. in Florida and regionalization of our children. There's a tional manner in which the situation in De­ Toronto was another example--there were contradiction there. The same region that troit is treated, with its majority Black popu­ some semi-valid excuses. As in most cities, cries for control of the Detroit Police Depart­ lation and its Black mayor compared to sim­ middle-class people hSid run from the central ment. Detroit water system and the Detroit ilar situations in Chicago or New York. I city to suburbia, but in these particular in­ bus system, is up in arms at the prospect of think that you know that you had two very stances, Toronto, JSICksonvllle a.nd Miami, one Black child being bussed to a suburban serious invasions by gangs in downtown Man­ they h8ld run faster than the water and the school across Eight Mile Road. hattan recently, either one of which was more sewer lines could follow them. So they estab­ COME TO CROSSROADS serious than the incident we had in down­ lished these fancy middle-class homes out in So, what I'm really saying is that suburbia, town Detroit. I don't see any headlines that the suburbs dealing with wells and septic obviously, cannot exist without the city and New York is dying. It's not dying, but I'll tell tanks. The urge then on the pa.rt of the mid­ vice versa. There's obviously a commonality you one thing-it's damn sick. And so is De­ dle-class people who hSid run from the cities of interest here. But racial and political con­ troit. And so is Philadelphia. And so is Bos­ was to seize control of the cities and thus siderations, misconceptions of self-interest ton. So is Los Angeles. And so is America. The avail themselves of the water, the sewers and have caused divisions. I think that the im­ unemployment which threatens this nation other economic facilities that they had left pact of the last recession-and as far as today has produced a social reaction which behind. But even that excuse doesn't exist in Detroit and many other cities are concerned, is predictable. Direct relationship between a. city like Detroit. The State of Michigan has that was a depression, not a recession-has unemployment, lack of educational opportu­ literally fed from the wealth of our city for revealed an underlying and endemic weak­ nity, lack of adequate housing, etc., and 50 years, the same as the State of New York ness in the American social and economic crime, has seen no addressment from the ha.s fed from the wealth of New York City. fabric that if not corrected is going to call present administration and from most state The city of Detroit historically has received for some violent changes in our form of gov­ administrations and most city administra­ less than a. half dollar back in the form of ernment. I believe we've come to a crossroads tions except repression. services from the state government than the that can lead to repression as a first step As Mayor of the City of Detroit, I have an taxes we send in. And that's certainly true toward some type of fascist repression, or a immediate responsibility to maintain the of New York City's relationship to New York break in the right direction which would lead peace; the conserver of the peace is the official State. Any big city performs that function, to a democratization, to an opening up of our description of the responsib111ty of mayor un­ and there is nothing wrong with that. Cities government. I believe that we are approach­ der the charter. And I intend to conserve the historically are the centers of culture, of ing that critical point in 1976, and that the peace. I recognize that there are many who commerce, of education. They play essential issue--the main issue-around which this is would like to see the city go down. There are roles. They are the jewels, the showpl81Ces of expressed is the crisis of American cities. It many who would like to seize upon the seri­ any civilization, and most nations under­ is a universal crisis. It's not restricted to ous problems in our cities to increase the stand that. During New York's early crisis, Detroit or to New York. It's endemic across heavy hand of repression. The only answer the French Amba.ssador came to Detroit. We the nation. Its major manifestation is we've had from the federal government in happened to be talking and he apologized chronic unemployment. The new and mis­ the last several years to the problems in our for interfering-giving his opinion on Amer­ quoted high of some 15 percent to 16 percent cities is millions and billions of dollars of aid ican pollti~but he said to me that he just nationally that we reached in the current to the police force. That's Law Enforcement could not understand how President Ford for recession-and I do say current, because it Assistance money to buy bigger machine guns one moment could consider allowing New is not over-the 16 percent is dramatically and more sophisticated radio equipment. York City to go bankrupt. He talked about understated, as everyone in this room must weapons of repression. And the same admin­ what Paris meant to the French nation. Long know. The real percentage has got to be istration in Washington that pumps out btl­ ago, European nations recognized the essen­ closer to 20 percent or 25 percent, and most lions in LEA aid, vetoes b1lls to provide jobs. tial role of the city, and cities a.re literally economists say that when 25 percent of the bills to proVide assistance to beleaguered subsidized in practically every nation but work force of any society is unemployed, cities. So I believe that we come to real crisis this one. This nation, which rose to greatness that society is suffering a depression and in this nation. I am convinced that Water­ as a. result of the development of the cities, not a recession. Most of our cities, even be­ gate revealed this country shrinking back whose rural and suburban areas fed on the fore the economic crisis, suffered depression. from the precipice, on the edge of going over wealth of the cities, now because of racially When the official unemployment rate in this into a fascist repression. Let me indicate to distorted approaches believes it can survive nation was 5 percent and 6 percent, that's you that not too much is changed in Wash­ without the cities, and that, in my opinion, considered prosperity in America, only in ington. The top two faces changed but the is what's happen.ing. America. The unemployment rate in West basic cast below them is still the same, and When they talk about regionalism in De­ Germany is 1 percent, and sometimes one the basic line and direction of march are still troit, the facts are that we have a fine water wonders who won the war. And when that the same. With cynicism, the Ford adminis­ system in Detroit, and it's entirely owned by unemployment rate approached 2 percent tration could veto bill after bill dealing with the City of Detroit. It's a combination water people nearly overthrew the government in jobs and the welfare of people; and the cava­ and sewage system. We furnish water to half Germany; yet we can regard 5 percent and lier fashion in which the revelations of the the population in the State of Michigan. The 6 percent official, which means 10 percent repressive, investigatory measures of the CIA. water system is owned and controlled by the actual, as prosperity. What does 5 percent the FBI, the Internal Revenue could be dis­ City of Detroit. Imagine how that sets at and 6 percent mean? What did it mean be­ missed, is an indication that it is later than this particular moment in history when fore this recession in Detroit? It meant the we think. Detroit has a majority of Blacks and is con­ real unemployment rate was 10 percent and So the answer that I have, to the degree trolled by a Black mayor. We, literally, are 12 percent. It meant in the central city that I have an answer, is that I have the in a position to cut their water off! And so, among Blacks, Latinos, poor whites, unem­ greatest confidence in the people of the City the demand that is now in Detroit-as they ployment exceeded 30 percent. That's before of Detroit, who, I think are representative talk about regionalism, and nobody com­ there was a recession. And among young of the American people. I can tell you that plains when Detroit puts its credit on the people in these same groups, it was in excess for the Black people in my city, who are a market in order to get bonds to expand their of 50 percent for males, and for females, tn majority, and for a great section of the white water system, to expand that sewage sys­ excess of 60 percent. Now this condition ex­ people in Detroit and around it, there are a tem-is one man, one vote. Let's take over isted in central cities, in ghettos, in barrios strength and a belief that have not been that water system. Well, my answer to that across this nation, even before the so-called destroyed. The people in the City of Detroit revolutionary slogan of one man, one vote recession. The recession exacerbated, ob­ have always had a tough fiber. I think that is one man, one gallon, and how much water viously, this serious condition, Already, there has been demonstrated in the type of co­ have you got. The same with transportation. have been all types of warning signals--of operation that we've had. We're attempting. Detroit is the only city in Michigan whicp alienation, frustration and desperation by in Detroit, to deal With young criminals in has a municipally subsidized transportation our unemployed, our dispossessed-crime, a different manner. I'm not saying that system. The other communities had private dope, prostitution, social unrest. we're going to let young criminals take over enterprise as their bus systems. And, of An answer from our federal government the city. I understand what poverty and lack course, when the system became.unprofitable, has been to ignore the problems of the cities, of jobs, lack of education and lack of hous­ private industry went out of business. The to ignore the unemployment which threatens ing can do. But just because I understand citizens of Detroit have long subsidized our to destroy America. and to concentrate on in­ doesn't mean I'm going to accept the hooli­ bus system. And so now, a regional system flation, to control inflation even 1f it meant ganism and destruction of civilization and is set up. I can understand regional coopera­ encouraging an increase of unemployment. the city as an excuse. At the same time, it is tion. I've been for that for a long time. But You're undoubtedly reading in the headlines my belief that this type of crime, social mis- January 13, 19'77 EXTENSIONS OF REMARKS 1119 conduct, can be controlled by a police de­ the forces of freedom are marching trium­ cal persuasion over more inflammatory or partment Without brutality, if it's firmly phant throughout our land, but .that isn't revolutionary rhetoric might have kept me under civilian control, if it can be made into true. And that isn't true in Africa. But I from qualifying as a Movement "heavy," but a people's pollee department. The Detroit think they're going to win in Africa because the consistency of my involvement, the mul­ Police Department is not that. You know, I think they recognize the enemy a whole lot titude of petitions and advertisements every move I make, I'm in court, I move for better than we do. This we must learn from signed, the many demonstratioru; I attended affirmative action; I move for more Black the African liberation movement. (often enough listed as a sponsor) --all of police officers. The point is that we are mov­ these should have merited more concern or ing and handling our situation without at least notice than these files reveal. Con­ brutality. . ducive though this may be to a spiritually I think that we are honored here tonight ONE MAN'S FILES beneficial state of humility, I must confess to have just such an example: We have here, that it also presents a serious temptation to sitting in the audience, the family of the give in to more uncharitable thoughts and late Rev. William Paris, a Black minister HON. ROBERT F. DRINAN suspicions. from New Rochelle who organized the For one thing, there was the time it took Detroit Police Chaplain's Corps. Bill Paris OF ndASSACEncrSETTS to get even these meager files. Fully eight had an idea that if ministers would establish IN THE HOUSE OF REPRESENTATIVES months passed between my original request themselves as chaplains in the police de­ Thursday, January 13, 1977 for copies of my files under the provisions partment they could guarantee-they could of the Freedom of Information Act and their give a message to the police-that people Mr. DRINAN. Mr. Speaker, it is now arrival. Interestingly, both agencies took have some concern for what happens, but at well known that the FBI and the CIA about the same amount of time, the mailings the same time, help the people, Bill Paris maintain a large number of files on from each arriving Within a week of the became the first Chaplain in the United American citizens, many of whom have other. Part of the delay was due to the need States, I believe, to lose his life in the course to obtain "additional identifying data"­ of duty in attempting to apprehend a sniper. done nothing more than express their date and place of birth, past addresses and Police surrounded this sniper rather than opposition to Government policies. With occupational history, notarized signature, chopping the building down, as has been done the exposure of such improper conduct etc.-to make certain, as the requests ex­ so many times. There was an attempt made coming as a nearly daily occurrence, it plained, "that we have a positive match be­ to talk the sniper out. He was a disturbed is easy to ignore the precise contours of tween records we may have and a person Black man in the Black community. Chap­ those activities. making a request." That this was a thor­ lain Paris asked if he could talk to the young Prof. Gordon C. Zahn, of the Uni­ oughly reasonable and circumspect proce­ man and was told to go upstairs; and as be dure no one Will deny, though one might entered the stairs, he was shot and killed. A versity of Massachusetts, recently dis­ question whether it was necessary or appro­ white police officer was blinded and almost cussed the contents of his files in the priate for the C.I.A. to ask for "other names killed trying to rescue him. We are thankful December 18 edition of America. The which you may have used." for New Rochelle's contribution to the City age and insignificance, from the stand­ Apologies for the delay because of the of Detroit, Bill Paris. point of any legitimate governmental in­ heavy volume of requests and the shortage I think that we have to have an approach terest, of the data contained in them of personnel available to deal with them in our cities---certainly, we cannot condone remind us once again that measures must seemed reasonable, too; but, here again, the lawlessness. We have to protect society be­ be taken to stop this information col­ C.I.A. added a troubling note by suggesting cause each of us must walk the streets. But that a possible alternative to the "thorough at the same time, we have to insist on a pro­ lection system and prevent its recur­ search" and "thoughtful review" of whatever fessional approach by our police department rence. material they might have, would be for them and, more importantly, we have to insist that I am inserting Professor Zahn's mono­ to "issue a formal denial" and leave it for our law enforcement agencies are representa­ graph in the RECORD so that each Mem­ me to appeal. I had not complained about tive of the people among whom they enforce ber may appreciate the folly of certain the lapse of time, so it seemed gratuitous to the law. Now, in Detroit, as in every city in surveillance practices of the FBI and suggest that less than full compliance with this nation, Blacks and other minorities are the CIA: the obvious intent of the law was even a underrepresented. We have a high percent­ ONE MAN's FILEs conceivable option. It was not entirely clear whether such a age of Blacks in the police department of (By Gordon C. Zahn) Detroit right now, about 18 percent, but the "denial" would take the form of claiming city has a Black population of about 52 per­ (Availing himself of provisions in the Free­ there was no file to send or refusing to copy cent. In no city in America is the percentage dom of Information Act, a Catholic peace and send whatever material could be found. of minorities in the population equal in the activist asked to see what the F.B.I. and In my case, at least, the former could not police department. We're attempting to do C.I.A. 'had on him'; it took a while to find have applied. My letters of request set forth that in Detroit. I believe that what is hap­ out.) my reasons for certainty on that score. The pening in our cities is a threat to the nation Not long ago, Art Buchwald compiled a F.B.I., I knew, had conducted a full-scale itself, and I believe that we must fight for list of recommended conversation-stoppers investigation of my claim to conscientious the type of administration which sees this as for use at Washington cocktail parties. In­ objector status during World War II as was the answer. I think there's an apathy and a cluded was a well-timed announcement that reqUired under the conscription program at disbelief among the people. There's an ali­ one has just received his or her file from the time. I was able not only to remind them enation, a disgust, as a result of Watergate. the F.B.I. of this fact but also to furnish them With I can tell you that as Mayor of the City of Well, I have--and my C.I.A. file, as well. the name of the agent who- had been in Detroit, I cannot mobilize enough police­ Although I have not had the opportunity charge of the investigation. This may account men, I cannot mobilize enough good will and to put the Buchwald thesis to a test, I must for the rather surprising result that of the 23 unity and all these other good things to meet confess that, all things considered, the whole pages of photocopied material furnished in the growing demand for jobs, for education, affair has proved to be a rather disappoint­ response to my original request all but one for equality of young people, Black and white, ing letdown. were related to that 1942 report. who exist in unemployment at rates of better Not a total loss, of course. There 1s grati­ My confidence that the C.I.A. had a file on than 50 percent. It is my contention that fication in discovering that, as fa.r as the me calls for a more detailed explanation, lest America's greatest enemy lies in the poverty C.I.A. is concerned, I am too "controversial" my credentials as a member of the peace and degradation of its people. We must get a figure to be allowed to speak under that movement in good standing be summarily our priorities straight. We must elect some­ agency's auspices or to wander unescorted revoked. In 1972, at the agency's invitation, I body who can recognize that if the main through its corridors. But the gratification took part in one of its senior officers' train­ enemy and danger are Within, then the main pales when the inconsequential evidence ing seminars. My "assignment" was to present money should be spent within rather than upon which that judgment was based is taken an adverse critique of American foreign in armaments and in foreign policy. into account. In fact, there is so little of sub­ policy. For obvious reasons, this was not an There's a struggle going on out there. It's stance in the files that one is almost inclined easy invitation to accept: whatever contribu­ a struggle for survival. We have no guaran­ to credit both agencies With being overly tion I made, however inspired my denuncia­ tees. We have never been guaranteed any­ cautious out of concern for my rights as a tion, could only serve C.I.A. purposes and thing but struggle. If we don't do that, I'm private citizen. On the other hand, given objectives in some fashion or other. At the afraid that things are going to get worse be­ their record over the years, a more likely ex­ same time-and, rationalization or not, this fore they get better. I have said that I have planation may be simple carelessness and was the consideration that finally carried the greatest confidence in the people of this general inefficiency of operation. the day-the invitation did provide a rare This admittedly cynical judgment is based, opportunity to "speak truth to power." I nation. Well, I think the people of this na­ not on what the files contain, but rather on have no way of knowing what impact, if any, tion must be given leadership. One reason what is missing. I would be the first to grant my words may have had. But I could be I'm here is becau.se I think that Freedomways that my pacifist activities before and during certain that my appearance had to be cleared 1s one of the ways, one of the informational the Vietnam years were comparatively rou­ in advance, which meant there had to be way, of giving that leadership. tine and, With at most one or two excep­ some kind of file in existence. Not only was I wish that I could indicate to you that tions, eminently legal. A preference for logi- I proved correct in that assumption, but its 1120 EXTENSIONS OF REMARKS January 13, 1977 con"teuts included the ego-gratifying evidence such was the case can be inferred from one attempt to serve as an "expert witness" at that I had been rejected, not once, but twice, of the 11 · partially censored items. A June, the first of the Berrigan trials). So it Is sur­ before my appearance was finally approved. 1971 request for intra-agency approval of 19 prising, to say the least, that none of the This is getting too far ahead of the story, prospective participants in the senior train­ teams of agents unleashed by J. Edgar Hoover however. Before the isSue was closed, I got ing seminar program received favorable ac­ to crush that Catholic "peace conspiracy" two separate mailings from both the F.B.I. tion on all but one--me. The only hint of made note of by guilty association with the and the C.I.A., and all four, taken together, explanation was a handwritten notation to conspirators. served to increase rather than dispel the the effect that I was "connected" with Ram­ That none of these activities were caught suspicions that led me to write in the fir&t parts. It might be well to note in this con­ by the C.I.A. is equally surprising despite the place. text the point to be developed later in more fact that these activities were domestic in Certainly, there was little satisfaction or detail: at this stage of the game I had no nature and not that agency's responsibility. information to be gained from the F.B.I.'s idea my name had been submitted; I was not After all, the items they did record in their first batch of documents. Apart from that to be asked if I would be willing to appear file fell Into the same category. But there complete record of the 194.2 investigation, until the following February, after my name were other activities of a clearly foreign na­ the single remaining page (dated March, had been submitted-and rejected-again. ture that might have stirred more legitimate 1967) consisted of a summary listing of six The Ramparts connection, such as it was, interest. When my study of German Catholic minor items. One noted that I "claimed" did not represent the full range of C.I.A. at­ support for the Hitler war effort was pub­ to be a conscientious objector to World War tention to my activities. The file included lished in 1962, it was met by a storm of in­ II-a strange way of referring to something several 1967 entries concerning talks given dignation and denunciation. One recurrent supposedly established by the other 22 pages or articles published dealing with such charge was that my findings could only serve of evidence. In the second item, "a source things as opposition to nuclear tests, the war the interests of "the enemies of the church" who has furnished valuable information in in Vietnam, war taxes and the like. A copy (meaning Communists) and encourage the the past" had informed the bureau that I of a long letter describing the newly formed forces in Germany seeking ";o undermine the had been a member of something called the Catholic Peace Fellowship was included, even Adenauer Government. Regardless of whether "Pax Vobis Workers' Circle of German Catho­ though the only reference to me was a state­ such charges were valid, it is passing strange lics," an organization reportedly identified ment including my name as one of the spon­ that the whole controversy and its implica­ by West German authorities as having been sors. Also noted were a couple of advertise­ tions for NATO and American foreign policy established by "pro-Communist forces." A ments I had signed and the fact that I had interests did not merit any notice on the third item reported my listing in a New York participated in a 1966 "town hall" meeting par; of the agency most responsible for Times advertisement as a sponsor of a Wash­ under the auspices of the Chicago Peace checking such potential threats. And it was ington march for peace in Vietnam, while the Council. Why any of these required censor­ true that my book and its findings were most fourth noted that a reproduction of that ship is not indicated; I can only assume the enthusiastically received by the intellectual same ad had been published in the Worker, parts deleted had to do with names or other linkskatholiken (Catholic left) critics of "an East Coast Communist newspaper." In identification of the sources from which the Der Alte, including prominent figures and September, 1963, according to the fifth, an­ information was obtained. As far as the items organizations that must have been on the other (or possibly the same?) "source who withheld in their entirety are concerned, agency's list of candidates for observation. has furnished reliable information in the they seem to be internal memos having to Perhaps it is too much to expect a literary1 past" identified me as one of the sponsors of do more with procedures and operation than theological tempest in a teapot to be given the Universities' Committee on the Problems with substance. At least I am prepared to a position of priority, but there are two other of War and Peace. The final item, which takes give the agency the benefit of that doubt. omissions deserving mention. Even I, who on added importance when considered in The obvious question, and one to which know how innocent they were, would agree connection with the C.I.A. file, made it a we shall return at a later point, is why any that they should have stirred some official at­ matter of record that I was listed as an as­ of these items were in the C.I.A. file at all. tention, even concern. I am not sure when it sociate editor of Ramparts magazine. Even if one were to view them as proof con­ began-perhaps it was an outgrowth of that The C.I.A. report, if nothing else, was more clusive of subversive acts or intent, they were "Pax Vobis" exchange of hazy memory-but impressively organized: seven items were all "domestic" in nature and, consequently, for some time now I have been engaged In a furnished in their entirety; 11 others had not within the agency's proper jurisdiction. very occasional correspondence with organiz­ been subjected to some deletions; nine others Only the "Pax Vobis" item had to do with ers and leaders of the Berliner Konferenz, an were listed in the cover letter but withheld foreign contacts, and that was in the F.B.I. East Germany-based organization of Cath­ in toto. The first group contained nothing file, not in that of the C.I.A. olics from 20 or so "Iron Curtain" countries particularly startling. Two were standard Even more striking-and this applies to With a program for promoting international bibliographical entries taken from American both files-is the fact that the materials, peace and friendship. I have never been un­ Men of Science and Contemporary Authors. except for the 1971 entries about my pro­ der the illusion that this organization, or, for Then there was a copy of the program for jected appearance (and the 1942 record), that matters, its members share my own the 1968 Liturgical Week (on the theme do not relate to my period of most Intense pacifist commitment, but ! nonetheless wel­ "Revolution: Christian Response") listing me and organized opposition to war-that is, the comed the opportunity to establish some as a speaker. There was a photocopy of a war in Vietnam. It is almost as 1f I had bowed measure of contact with them. Over the past Times ad in which I, along with a long list of out of the peace movement in 1967 when In several years this has dwindled ~o an annual other signers, protested the Soviet invasion of fact I was escalating my involvement. Along exchange of Christmas cards, but, back in Czechoslovakia. The remaining three items with Dr. Spack and the others selected for 1967, I accepted an invitation to participate all were concerned with my Ramparts "con­ prosecution in the famous "show trial," I in a meeting held In Potsdam as a guest ob­ nection," one· being nothing more than a was one of the original signers of the "Call server. Not only were my expenses while there compilation of the dates of 13 issues in to Resist" with its declarations of shared assumed by my hosts (I assume the East which my name was included on the mast­ culpability with those draft-eligible men who German Government, ultimately), but spe­ head. responded to the "Call." Like many others I cial arrangements were made to drive me to It is probably best to pause at this point operated as a volunteer draft-counselor and East Berlin and back !or a lavish and lengthy and comment on these various disclosures. succeeded in helping a goodly number of morning conference with leaders of the Chris­ Except for the "Pax Vobis" reference, I can young men obtain their classificatwns as tian party in the official Government political enter the proud plea of "guilty as charged." conscientious objectors. This was the period, coalition. Even with respect to that item, I do have a too, when I was elected to the governing Is It possible, I must ask, that the meeting vague recollection of correspondence with a boards of national peace organizations and my attendance at It did not merit a brief German group of that name; but I do notre­ (SANE, the Fellowship of Reconc111ation) and item for my file? My hosts apparently call the "Workers' Circle" part, and I cer­ served as chairman of the American Pax So­ thought otherwise, for the generously offered tainly know that my contact with them ciety, the predecessor of the American section to dispense with stamping my passport to carried no "membership» implications. That of Pax Christi International. spare me any embarrassment or Inconven­ the Ramparts editorship should receive so The point of all this is not to recite a. ience-an offer, incidentally, I did not accept. much attention borders on the comic. Some litany of service to the cause of peace in If, as we have learned, overseas mail from time after that magazine published an arti­ the hope of adding stars to my heavenly East Germany and other Eastern nations , cle of mine, the publisher or editor (I don't crown. There were others who achieved great­ was regularly monitored. or if, a.s everyone remember which) wrote to say he had taken er prominenc~ome would say notoriety­ assumed, my efforts to reach my prospective the liberty of adding my name to the Ust of in the resistance movements and deserve the hosts by telephone from West Berlin were editors. He also assured me that 1! I had any greater share of whatever praise is due. carefully recorded, there is no logical reason objections, it would be removed at once. Though it 1s true that I stretched or bent why there should be no reference to that Needless to say, I had none. The title turned the law by accepting draft cards turned in visit in my file. out to be strictly honorific, however. I never at a public protest ceremony or withholding The other omitted item was similar, received an article to review or any other the telephone tax, I invaded no draft board though admittedly far less dramatic. In 1973 editorial task to perform. offices and vandalized no files. St111, I did I visited the U.S.S.R. as a member of a It is amusing, therefore, to find this asso­ maintain close personal contact with some "Toward Enduring Peace" tour. However ciation, remote as it was to the point of be­ of the priests and others who did such things commonplace such international tour ar­ ing practically nonexistent, assuming sinis­ and contributed to their defense efforts (once rangements have become, the specific focus ter implications 1n the files of the C.I.A. That journeying to Baltimore in an unsuccessful of this particular tour and the personaL back· January 13, 19'77 EXTENSI·ONS OF REMARKS 1121 ground of some of its members would have For good or ill, the appeal was approved­ tivity, I am more than confident that all the justified some show of interest on the part but only on condition that, because of my material they have on me could be assembled of our national security organizations. Or, if "highly controversial background," all par­ and in hand in much less than eight months. such Interest would not really have been ticipants in the seminar were to be cautioned Carelessness, incompetence or inefficiency justified, it also would not have been un­ that any discussions with me had to be con­ are not sufficiently compelling explanations. expected. ducted on an "unclassified" basis and, a real I find it most plausible that the fault lies I have gone into considerable detail on surprise, that I "be escorted at all times in the processes and procedures employed these omissions because I consider them ex­ while on agency premises." All the time I than in the sincerity and intent with which tremely significant, for reasons to be ex­ thought that was standard procedure I the agencies approach requests for copies of plained. In any event, they seemed to justify It was at this point that "subject" was their files. To put it bluntly, I am not con­ further correspondence with both agencies to finally brought into the picture. Requests, vinced that these agencies are prepared to challenge the adequacy of their response to rejections and successful appeals were all comply with either the spirit or the letter of my request for the files. Though I honestly played out without anyone contacting me to the law. There is, of course, no way definitely did not expect much satisfaction, I could see if I would be willing to take part, and, to confirm or refute this suspicion, short of at least take some enjoyment from imagining needless to say, none of what had gone on being given full and unrestricted access to the consternation my letters, describing in before was made known to me when the in­ the files themselves. But the suspicion per­ some detail what my file "ought" to have vitation was finally extended. sists, nontheless. If it is unfair to give voice contained, would cause when they arrived. But that pessimistic assessment was only It should be obvious by now that what has to the suspicion without proof, it is surely partly confirmed. A few weeks later I was to been described here has crucial implications no more so than for these agencies to pass an receive a mailing of 15 additional items from reaching far beyond one individual's unsatis­ adverse judgment on the -basis of such thin the F.B.I., the product of a second search factory experience. Some of the questions evidence as has been presented here. On the "based on additional details provided by raised by this account require no elaboration. other hand, if more substantial evidence is at you in your recent letter." It took the C.I.A. Given the kind of material included in all hand, the failure to make it available would about a month longer before they, too, came four mailings-two each from the two agen­ constitute an evasion of the law as charged. up with copies of 17 additional items from cies-was there anything to justify gathering One final point. I would not want this ac­ their files. such minor items in the first place or, allow­ count of my experience to dissuade anyone Not all this additional material was new; ing for the possibility that they came to the from exercising the rights established under none of it, despite references to my letter, agencies unsolicited, entering or keeping the Freedom of Information Act. Quite the touched upon the omissions I had requested. them on file? Next, by what stretch of the contrary. It was most gratifying to learn that The 10 "new" items in the F.B.I. dossier-all imagination could one justify the judgment the C.I.A. has been "virtually inundated" by relating to talks I had given, ads I had signed that the material so accumulated constituted requests for files and to find the F.B.I. justi­ and certain of my peace affiliations--dupli­ a "highly controversial background"? Final­ fying its plea for patience on the same cated material previously furnished by the ly, once we have carried it to this point grounds. If nothing else, this testifies to an C.I.A. It was interesting to note that while how could one ever justify going the addi­ upsurge of citizen concern over the actual or some of the entries now extended to 1971 and tional step of basing any kind of a decision potential intrusions on the rights and privi­ 1972 activities, there was stm no reference on so insubstantial a judgement without the leges provided under the Constitution. Such at all to my contacts or connections with the "subject" being made aware of the conse­ requests, I would hope, will be increased Berrigan brothers and others involved in quences of that decision and given some op­ rather than diminished by this account. It their draft board actions. portunity to counteract it? In this particular is a matter of record now that anyone who In like manner the additional C.I.A. mate­ instance, fortunately enough, there was little signed a petition or an ad, who may have rial studiously ignored the specific points I at stake. If, however, such procedures had written a letter to a newspaper or expressed had raised concerning my overseas relation­ been applied to someone under consideration an opinion that some "source who has fur­ ships. Nevertheless, it did furnish two "reve­ nished reliable information 1n the past" for a Government appointment or in some found subversive enough to report, might lations" of some significance. The first had other area of personal importance, the out­ to do with the rather thorough accounts of learn to his discomfiture that even these come might have been as tragic as it was minor things have been carefully recorded talks I had given at two universities. It was unjust. clear from these accounts that they repre­ and may at some future time be enough to sented the kind of on-campus surveillance of These considerations are premised, of classify him as a "very controversial" figure. anti-war activities that had brought the course, on the assumption that both agen­ It is certainly worth t:tie effort to know where agency such well-earned criticism and con­ cies knew what they were doing. There is a one stands in the eyes of Big Brother. demnation for unwarranted intrusion upon second and somewhat unsettling set of pos­ One should not expect too much, of course. the rights of individual citizens. sibilities that might apply. For all we know Patience is advised, and a goodly measure of Of more immediate personal interest, how­ these may be other items of information­ stubborn persistence may be required. Oper­ ever, were the new documents and internal even other flles?-that have not been made ating as Government-subsidized "clipping memoranda bearing upon the objections that available to me. In one of Director Clarence services," these agencies, I fear, are-to bor­ had been raised to my 1972 appearance as Kelly's letters, he refers to a search of the row Ron Ziegler's classification of the Water­ part of the ·agency's own training seminar "central files." Are there perhaps "peripheral" gate afl'air-"third rate" at best. Even so, let program. The earlier mailing had shown that files or "branch" files left unsearched? One no one be deterred. If nothing else, the day a July, 1971 request had been disapproved; cannot help but be troubled by the fact that may come when the opportunity will present now there was information as to the reason a lengthy search of the files produced a single itself at some cocktail party or other social for that negative action. A September, 1972 page of six relatively recent entries while a affair to bring the idle chatter to a halt sim­ memo referred to "current National Agency later, and much briefer, search of the same ply by saying: "You know, I have just re­ checks" and provided a list, or description, (?) files came up with more than twice that ceived my file from the F.B.I.... " headed "subject's activities"-which, alas, number. Is it possible that a third request, was completely blacked out. But whatever then a fourth and fifth and more. would that section contained, it was enough to lead each produce additional and more recent to the conclusion: "The subject has been items? If so, how many such.searches would HEW-SOCIAL SECURITY ADMINIS­ associated with numerous questionable activ­ it take before the F.B.I. discovered that TRATION REPORT ON MEDICARE ities in direct opposition to major U.S. for­ Daniel Berrigan had once honored a book of eign policy and has counseled others to op• COST-SAVING EXPERIMENTS mine as having had a major influence 1n the AV.ATI...ABLE FROM WAYS AND pose [the) Selective Service System." The formation of his and his brother's "will to decision to deny clearance carried no less resist the legitimized murder of 20th-century MEANS COMMITI'EE than five handwritten and initialled concur­ war"? And, even more important, what con­ rences. clusions might be drawn !rom that? Until now I had assumed it was this deci- . HON. CHARLES A. VANIK sian that had been appealed and reversed. These are not frivolous questions. If a citi­ OF OHIO zen's request for his file brings such care­ The new material revealed that a second and IN THE HOUSE OF REPRESENTATIVES separate application was submitted the fol­ less or incomplete responses, the purpose of lowing January and that this one, too, was the Freedom of Information Act is being cir­ Thursday, January 13, 1977 denied "in view of the unfavorable informa­ cumvented i.n effect, 1f not in intent. It is tion." It was this second rejection that was possible. I suppose, that our security agen­ Mr. VANIK. Mr. Speaker, in May 1976, then appealed on the grounds that 1) "Sub­ cies are so inept in their operations and their · the Ways and Means Oversight Subcom­ ject is no worse than some of the other ap­ files in so chaotic a state of disarray that mittee, which I chair, held 2 days of proved speakers who are quite 'controver­ the pattern described here in such detail hearings on the subject of medicare cost­ sial'"; 2) I had maintained a consistent rec­ could be dismissed as a simple matter of bu­ saving experiments. At that time, we re­ ord of conscientious objection since 1941; reaucratic breakdown. Possible, yes; but un­ quested periodic reports from HEW on 3) I and had been selected precisely !or the likely. If tomorrow the F.B.I. or the C.I.A. the progress of the various experiments purpose of presenting my dissident views to mandated under the Social Security Act. an audience described as consisting of "20 were to receive word from a "source who has senior agency officers who can hold their own furnished reliable information in the past" I have received detailed reports from in heavy discussions on the world situation." that I was engaged in some subversive ac- HEW and Social Security on the status CXXIII--71-Part 1 1122 EXTENSIONS OF REMARKS of the various projects underway and A SOCIAL GOOD of the passage in that year of the Coal Mine planned. I believe that these reports are Mind you, I am not saying that the new Health and Safety Act. These indirect costs filtering equipment is just money down the are not capitalized, of course, and techni­ valuable and interesting documents for cally are not "hidden." On the other hand, all of those interested in health care de­ drain. It does buy cleaner water, after all. But that cleaner water is a free "social good" who would claim that the public appreciates livery, medicare, and the control of and a "social asset" to the population in their dimensions? health costs. the neighborhood (and for the fish, too) ; As one contemplates those numbers, vari­ Copies of the reports are available, it represents no economic gain to the cor­ ous inferences suggest themselves. One is without charge, from the Ways and poration, which has only economic assets that a clear distinction ought to be made Means Oversight Subcommittee, 1539 and knows nothing of "social assets." It between "capital spending'' and "capital in­ Longworth House Office Building, Wash­ also buys governmental "good will"-but vestment." We are told that capital invest­ ington, D.C. 20515. so do bribes to foreign officials, and I am ment last year amounted to $121 billion, and not aware that anyone has yet thought to economists were somewhat disappointed that capitalize them. On the other hand, the new this represented only a 7.5% increase over equipment is unquestionably an economic 1975. But if, as seems likely, as much as cost to the corporation-and, of course, to 1.0% of th!llt figure should not be counted as THE HIDDEN COSTS OF REGULA­ the economy as a whole. "capital investment" at all, since it consisted TIONS As things now stand, we render those eco­ of economically unproductive expenditures nomic costs invisible. That is both sllly and of capital to meet governmental regula­ undesirable. Silly, because they are real costs. tions--where does that leave us? It leaves HON. BUD SHUSTER Undesirable, because we shall never persuade us, I would suggest; with a net reduction in OF PENNSYLVANIA the American people to take the problem of true capital investment in 1976, the eco­ IN THE HOUSE OF REPRESENTATIVES regulation seriously untll they appreciate, nomic effects of which will be with us for in the clearest possible way, what it is cost­ years ahead. One such probable effect, a de­ Thursday, January 13, 1977 ing them-as stockholders, consumers, cline in the rate of growth of the American Mr. SHUSTER. Mr. Speaker, I com­ employes. worker's productivity, has already been The costs we are talking about are by no noticed-though never accounted for. mend to my distinguished colleagues the means small, and their impact by no means It may be argued that these economically following article by Mr. Irving Kristol marginal. In fact, they are far, far larger unproductive expenditures do, after all, cre­ which appeared in the Wednesday, Jan­ and more serious than most people realize. ate jobs (temporarlly) and do contribute to uary 12, 1977, Wall Street Journal. Unfortunately, there are no comprehensive, the Gross National Product. But so would the Mr. Kristol's brainy article brings to precise estimates available. But one can get corporate construction of beautiful pyramids, clear light the effects that the costs of a sense of the magnitude of such costs from at governmental behest. That would create regulations have on the corporation in the following bits and pieces of information: jobs (temporarily), inflate the GNP, and pro­ terms of capital spending versus capital U.S. Steel has just signed a seven-year vide us with a "social good" (a great spec­ agreement with federal, state, and local en­ tacle). But it would be a cost to the economy, investment and on the public as stock­ vironmental agencies that will require it and if our conventional statistics are incap­ holders, employees, and consumers: to spend $600 mllllon over that period to able of showing it as such, then it is those THE HIDDEN COSTS OF REGULATION eliminate air pollution from its Clairton statistics that need revision. (By Irving Kristol) Coke Works in Pittsburgh. COSTS PASSED ALONG In all of the recent discussion of our eco­ The steel industry as a whole will be It is also true that, in many cases, corpora­ noxnic condition, there has been controversy spending well over $1 billion annually on tions are able to maintain their profit mar­ pollution controls-and that is a conserva­ gins by passing on their increased costs-di­ over whether a tax cut is really necessary tive estimate. This expenditure amounts to and, if so, what kind of tax cut would be rectly to the consumer, indirectly to their most beneficial. To the best of my knowledge, over one-quarter of the industry's total an­ stockholders (by holding down dividends) or no one-not even John Kenneth Galbraith­ nual capital investment. to their employees (by granting lower wages has dreamed of proposing a tax increase. Yet Meeting EPA's 1983 water pollution stand­ than they otherwise xnight). But that is what that is what we shall get this year--specific­ ards will cost all of American industry, over usually happens to corporate taxes-they get ally an increased tax on corporate income. the next seven years, about $60 billion for passed on to someone since the corporation Indeed, we got such an increase last year too, capital equipment and another $12 billion itself is only an economic mechanism, not an only no one noticed. annually in operating and maintenance costs. economic person (except, fictitiously, in law). It is not really as surprising as one might Meeting noise pollution standards, as man­ In the world market of today, however, not think that our economists, our accountants, dated by Congress and enforced by the Oc­ all corporations can pass on those costs. In even our business executives should be obliv­ cupational Safety and Health Administra­ those instances, we get declining businesses, ious to the steady increase in corporate taxa­ tion (OSHA), wtil involve expenditures of declining industries, a sagging economy. In tion that has been taking place. Habitual over $15 billion in capital costs and $2 bil­ any case, those costs-passed on or not-­ modes of perception and conventional modes lion to $3 billion in operating costs in the should be visible, instead of hidden as they of reckoning are likely to impose themselves year& immediwtely ahead. If these noise now are. The Federal Reserve's index of plant on a changing reality rather than go through standards are raised to the level recom­ capacity, for example, apparently makes no a painful process of adaptation. And the mended by the U.S. National Institute for effort to distinguish between capital expendi­ learned economist or alert executive can fall Occupational Safety and Health-a recom­ tures and capital investments, and is to that to observe an important feature of a situa­ mendation endorsed by EPA-the capital degree misleading. tion, simply because he wasn't looking for it. costs will climb over $30 btilion. It is true, too, that firms can depreciate Here is an example of what I mean. Cor­ The Wall Street Journal recently reported their uneconomic, mandated ca.pital expentii­ poration "X,'' in order to meet water pollu­ that new health regulations in the cotton tures. But that equipment will have to be tion standards set by the Environmental industry will cost some $3 billion over the replaced as it depreciates with age-we are Protection Agency, has to install new filter­ next seven years. It has been estimated by not talking about a one-time expense. ing equipment that costs $2 million. How Professor Murray Weidenbaum that Amer­ The situation we have gotten ourselves into is this expenditure to be accounted for? Well, ican industry's costs to meet OSHA safety would be ridiculous if it were not so serious. at present, it is counted as a "capital invest­ standards this year will be over $4 billion. We are much exercised-and quite rightly­ ment" and is carried on the books as an EPA is on record-for what that is worth­ by the fact that the OPEC monopoly has cost "asset" of the corporation. But does this as calculating that industry's total capital this country some $30 billion in increased oil make any sense? investment requirements for all kinds of prices since 1972. But in that time we have After all, a "capital investment" is sup- pollution control equipment will, in the dec­ inflicted upon ourselves much larger eco­ posed to promise an increase in production ade 1972-81, add up to $112 blllion. nomic costs through environmental and other or productivity, or both. An "asset," simi­ None of the above figures is particularly regulations--and will continue to do so, per­ larly, 1s supposed to represent earning haps at an increasing rate. power, actual or potential. But that new fil­ reliable, and they may even not be entirely Yes, these economic costs do buy real tering equipment may do none of these consistent with one another. But they do "social goods." But may the price not be too things. Indeed, it may actually decrease pro­ suffice to give a pretty fair indication of what high? Is the resulting inflation of prices, con­ ductive capacity and productivity. In short, is going on. Even so, important costs are striction of productive capacity and increase the $2 mlllion ought properly to be counted ·omitted-those costs, for example, which in- in unemployment worth it? Would it not be as a government-imposed costr-in effect a. volve product redesign or the design of the appropriate for us to ask ourselves this ques­ surtax; an effi.uent tax, if you wish-and the work place. Thus, the increased cost of hous­ tion openly, instead of going along with the company's stated after-tax income should ing over these past years results, to a sig­ environmentalists' pretense-so pleasing to be reduced accordingly. nificant degree, from various environmental our politicians-that our "social goods" cost The government, instead of imposing an regulations. And Ewan Clague, former U.S. us nothing at all? Isn't it time that business actual tax and using the proceeds to pur­ Commissioner of Labor Statistics, points out stopped bleating in a general way about those chase and install the equipment, mandates costs and showed us what they really mean, that the firm do so. The end result, however, that productivity in bituxninous mining has decreased 30% since 1970, largely as a result all the way down to the bottom line? 1s the same. January 13, 19'77 EXTENSIONS OF REMARKS 1123 A LETI'ER TO PRESIDENT-ELECT specialists wrongly treated the huge energy producers rather than OPEC but the eco­ JIMMY CARTER price increases as a one-time price bulge nomic ripple effects in terms of 1nfl.a.tion, which would be quickly absorbed. The real lost sales, unemployment and spiral1ng Na­ economic damage only becomes apparent tional Debt will be the same. HON. JOSEPH L. FISHER when the 1973-76 years are examined as a The following are a few of the pressures OF VmGINIA block. From July 1973 to December 1976 it that wlli force up prices in 1977: (1) U.S. is estimated that final prices for natural gas, energy companies will be under pressure to IN THE HOUSE OF REPRESENTATIVES coal a nd refined ou products will have in­ increase domestic crude oU prices in accord­ Thursday, January 13, 1977 creased over $186 billion. ance with the 1975 Energy Policy and Con­ But t his is only the start of the economic servation Act and also at the refinery level Mr. FISHER. Mr. Speaker, I am insert­ damage assesment. The $186 billion caused a to compensate for loss of revenues caused by ing into the CONGRESSIONAL RECORD a self feeding series of economic ripple effects nationalization of their foreign income pro­ letter from Matthew J. Kerbec, president resulting in massive inflation, millions of ducing assets. If President Ford's current of Output Systems Corp., to the Presi­ lost jobs and ever growing budget deficits. It attempt to decontrol gasoline prices is suc­ dent-elect on the subject of the economy. is estimated that higher prices will siphon cessful, it w1ll mean the end of price con­ over $587 billion in purchasing power out of trols on almost all refl.ned oU products. Mr. Kerbec's remarks do not neces­ the economy in the 1973-77 years. Industries sarily reflect my own point of view; how­ Thus, the Nation will be subjected to still recycle part of this back into the economy as more periodic energy price increases, in ad­ ever, I did want to share his opinions wage increases, taxes, dividend p ayments and dition to OPEC's increases, which w1ll si­ with my colleagues: investments. But, more was taken out than phon away more purchasing power. The di­ DECEMBER 22, 1976. returned. The $100 billion in stimulative rect and ripple effects of each one cent per President-elect JIMMY CARTER, spending in 1975 and 1976 went like water gallon increase in refl.nery products w111 Atlanta, Ga. through a sieve. Even wJ.th this spending un­ drain approximately $6.5 billion out of the DEAR MR. CARTER: There is little hope for employment rose to 8.1 % m November 1976. economy. This could be cumulative if whole­ prosperity in the next four years. Present The eVidence shows that higher prices salers and retailers added a cent; (2) an­ energy and economic policies will guarantee drained away purchasing power faster than other inflationary factor is that many com­ a sick economy. How sick, Will depend on wage increases and Government spending re­ panies have !¥lopted the practice of hiking whether the Government will return enough placed it and this was the primary reason for prices regardless of whether sales go up or money to consumers to compensate for in­ the 1976 recession. With an estimated 6% down. Many believe that companies are do­ creasing prices and how much energy and cost-push inflation for 1977, another $113 ing this because they fear price controls. econoinic policies will change. billion will be taken away as higher prices. In 1974 President Ford absolutely guaran­ It is frightening to :find that at the ~nd Under the assumption that $20 billion is teed there would be no price controls; yet, of 1976, the Nation is again in a recess10n programmed for economic stimulus in 1977 from December 1973 to December 1974 steel after spending over $100 billion in 1975 and there is little reason to believe the economy prices increased by 38%, industrial chemi­ 1976 to stimulate the economy. This was $11 will improve unless something is done to cals 83%, plastic resins 97% and agricultural billion more than the entire Defense budget reduce prices. chemicals Jumped 71%. No industrial1zed, for FY76. If another $20 billion is spent LITTLE HOPE FOR ECONOMIC IMPROVEMENT profit oriented ecOnomic system can endure for economic stimulus in 1977, the National 1977-1980 without massive disruptions under these Debt will increase by another $97 billion and It is logical to assume that the Organiza­ pricing pressures. Since then, these prices there is another whopping increase already tion of Petroleum Exporting Countries have continued to increase even In the face programmed for FY78. The U.S. is follow­ (OPEC) w111 periodically increase ou prices of falling demand; and (3) multiyear wage ing the borrowing patterns of Italy, Great to the level that w1ll keep its customers contracts in the basic industries have pro­ Britain and other countries which have been solvent but not overly prosperous. From vided relatively large wage increases in the hit with triple digit energy price hikes. OPEC's standpoint, a just1fiable pricing heavily unionized baste industries wllich will The real shocker is that the National Debt schedule could be one that mandated price contribute to infi&tion and create additional 69% 1973-77 will increase by in the years. increases (all the traffic will bear) until ripple effects. It required 196 years and four major wars OPEC members felt that the standard of Guaranteeing there will be no price or to accumulate a debt of $437 bllilon by 1972. living of their people was equal to that of wage actions is like a cancer specialist say­ From 1973-77 the National Debt will go up their customers. Ripple effects are of little ing he would never use surgery to treat another $303 b1ll1on. PUlng up debt at this concern to OPEC or domestic energy pro­ breast cancer. Price and wage policies are rate can set the stage for hyperinfiation as the Treasury Departmen t keeps printing and ducers. a necessary part · of a complete set of eco­ nomic tools which should also include :fiscal, selling more and more securities to pay its This is another way of saying that the U.S. and other oU importing countries w111 monetary and antitrust policies. bills. Little publicized is the fact that there not have to worry about overheating their Based on new economic theories I devel­ 1s a significant difference between the yearly oped, it was possible in 1973, to predict the "budget deficit" and the increase in the debt. economies by too much fiscal or monetary . It would be much more meaningful for the stimulus. Both OPEC and most governments coming unprecedented infl.atlon/recesslon in now know that one quick way to reduce the Government's financial goal to be "zero in­ the 1974-5 years and the recession 1n 1976. crease" in Nation al Debt than a "balanced demand for goods and services is by increas­ Most of these economic lllnesses could have budget" which does not include off-budget ing energy prices. Actually, the OPEC cartel been avoided ~nd presently there are actions deficits which will amount to over $90 billion would be remiss in its respons1b111t1es if it that can be taken to minimize the Nation's did not increase prices when the demand economic and :financial deterloration. I will in the 1973-77 years (see Table n . for goods exceeded supply in the oil Import­ THE 1976 RECESSION WAS NO SURPRISE ing countries. Under these conditions, pros­ be happy to meet with your representatives To understand the reason for the 1976 perity may only become a dream to oil im­ to discuss how this can best be done. recession, it is necessary to go back to 1973 porting Nations. Sincerely, when the :first massive price increases for As U.S. energy pricing pollcies are aimed MATTHEW J. KERBEC, energy started to switch the economy from at getting domestic energy prices up to Prestdent. a demand-pull (too much money chasing too OPEC levels in the shortest possible time, P.S. Some of my comments in notes A and. few goods) to a virulent cost-push inflation the "windfall" profits that accrue for each B have been quoted in the December 27, 1976 (skyrocketing basic product prices). Many price increase will mostly go to U.S. energy edition of Newsweek Magazine, p. 30.

TABLE I.-SELECTED STATISTICS FOR THE YEARS 1973-77

Purchasing power lost U.S. budget through deficits, Inflation CPI inflation (billions) Off-budget Total national GNP current year to year col. 1Xcol. 2 surplus or deficits debt (billions) Year (trillions) (percent) (billions) deficit(-) (billions) cumulative (1) (2) (3) (4) (5) (6)

1973 ____ ------·-·------·------. $1. 306 6. 2 $80. 9 $14. 3 $16.8 $468.4 1974.______------·---·---·· -- ·------·------·-·------. :g~ 1~: ~ ~~~: ~ -3.5 14.3 486.2 t - 43.6 14. 3 544.1 ~~~~-estiifiiiieil~:: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 1. 1os 6. o 102. 5 -65.6 21.6 631.3 -12.7 1.5 645.5 I~~gs!~~~~t~~~~~: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::: i:::: :::: =~== :::------~.- s9o-- ·- --·-·- -s.-a·------ii3:4- -75.4 22.0 742.5 TotaL ...,. .•.. --·---______:. ______------____ ---·--·-· ------·------· 78, 09 38. 3 587. 8 -214.7 90. 5 3, 518.0

Notes.-{1) Cols. 1, 2 and 3 are in ~lendar years. (2) Co!s. 4, 5, and 6 are in fiS~I years. q) stimulative actions. Prepared by Output Systems Corp., Arlington, Va, Unless estimated cols. 4, 5, and 6 data 1s from Economic lnd1ca1ors, October 1976, Jomt Economic Committ~e. {4) The $75,000,000,000 defiCit for fiscal year 1977 mclud_l!s $20,000,000,000 for fiscal Source: Unless otherwise noted data is from Economic Report of the President, January 1976, 1124 EXTENSIONS OF REMARKS January 13, 1977

DISCUSSION ripple effects which caused massive unem­ that more than 2.5 million older men had Column 5 (Off Budget Deficits) represents ployment and record budget deficits. This "withdrawn" from the labor force. As­ money spent by the government that does chain reaction is still in motion as energy suming that just 25 percent of these in­ not go-through the Congressional budget and other basic prices continue to increase regardless of whether sales go up or down. dividuals wanted and needed employ­ process. These deficits come from Govern­ ment, then 600,000 people would have to ment owned activities and Government There is no relief in sight in 1977 or 1978. sponsored Credit Systems. The debt from SoURcE: The Ripoff Years 1973-76, Output be added to the number of unemployed. these entities is part of the Gross Federal Systems Corporation, 2300 S. Ninth Street The figures are even worse for women. Debt but is not subject to the statutory Arlington, Virginia 22204, Phone: (703) 521- The NCSC study noted that in 1972, 11.6 debt limit. Budget authority and outlays 2300. million older women were out of the for these off budget entities completely es­ labor force. If just 5 percent of these cape the new Congressional budget process women wanted and needed employment, (Ref: Off Budget Activity of the Federal THE MIDDLE-AGED AND OLDER then another 600,000 people would have Government, House of Representatives Re­ WORKER EMPLOYMENT ACT OF to be added to the unemployment figures. port No. 94-1740.) President Ford's Budget 1977 for 1977 observed that, "In Ina.ny cases there The conclusion by the NCSC was that if is little or no justification for off-budget the present trend continues, in a few treatment." HON. FREDERICK W. RICHMOND years 1 out of 6 men between the ages of is In Table I above, this hidden debt esti­ OF NEW YORK 55 and 59 will no longer be in the labor mated at $90.5 blllion (1973-77) and was force. in addition to the $214.7 billion which is IN THE HOUSE OF REPRESENTATIVES One of the major problems facing widely reported in the news media.. In the Thursday, January 13, 1977 1973-77 years the Treasury Department's older workers who have been laid off and printing presses will have to print and the Mr. RICHMOND. Mr. Speaker, on Jan­ seeking employment is the duration of Treasury will have to sell a. total of $305.2 uary 4, 1977, I introduced the Mid­ unemployment. billion worth of securities to pay its debt for dle-Aged and Older Worker Employment The Senate Special Committee on Ag­ these five years. Assuming a 6.5% interest Act of 1977 as a means of easing the ing reported that older workers can ex­ rate, in FY78 interest alone will cost $19.7 unemployment crisis and stimulating pect to be unemployed 30 to 70 percent billion. This is more than the total budgets longer than other groups. Currently, 1 of the Department of Commerce, Interior, greater opportunities for the worker over HUD, Justice. and State plus the combined the age of 40. out of 3 has been unemployed longer budgets for the Legislative and Judicial The legislation which I have intro­ than 15 weeks, 39 percent are in the cate­ branches of Government in FY76. duced would establish a midcareer de­ gory long-term unemployment or un­ As there is no reason to believe that we velopment service within the Depart­ employed longer than 27 weeks, and 40 will pay back any of the principle, starting ment of Labor through which the Secre­ percent are in the category of very long­ with FY78 the Treasury will have to print tary would be authorized to make train­ term unemployment or unemployed for and sell $303.7 billion in new securities and longer than 6 months. pay interest on the interest. It required 196 ing loans and grants for programs to im­ years to accumulate a National Debt of prove the skills and abilities of older and These figures become more significant $437.2 billion by 1972. From 1973 through middle-aged workers, and would provide when one takes into consideration that, 1977 the U.S. will have increased its Na­ recruitment, placement, and counseling though, in some States, such as New tional Debt by over 69%. The projected defi­ services in the case of a mass layoff in a York, it is possible to collect unemploy­ cit for the FY7'8 budget is approximately given area. The bill provides for research ment benefits for as long as 65 weeks, $44 billion with an estimated $20 billlon to improve and stimulate opportunities the average duration of unemployment for off-budget deficits which are beyond for middle-aged people, and enables the benefits is 20 to 25 weeks. Congressional control. Primarily responsibil­ The options once unemployment com­ ity for the deteriorating economy and finan­ President to appoint a Commission on cial structure of the U.S. can be traced to Lifelong Adult Education. pensation is exhausted are limited. For the huge price increases for energy and en­ All the elements of the bill are in­ many the only recourse is welfare. For ergy intensive basic products that occurred tended to alleviate the stages of crisis others, if they are at the Social Security in 1973 and 1974. As these prices keep ever that the employed person encounters ages, 62 or 65, it is possible to begin col­ rising the economic and financial condition once he reaches the age of 40, and to lecting social security benefits. However, of the U.S. will get worse. keep the person over 40 as a productive many of those who begin receiving social NOTE A member of society. security benefits hope to find some in­ Energy as a percentage of total material According to several key studies con­ come to supplement the benefits, but not costs for the following products are: steel ducted over the past several years, when so much income that it would decrease 23 %; fertilizer 43%; chemicals 30 to 60 % an employed individual reaches his 40's the benefits. and aluminum 18%. It takes 22 % of all U.S. or 50's he begins to face some very seri­ For those below social security age energy to farm, process and distribute food. there is a possibility of taking part-time 011 and coal costs amount to about 45 % of all ous di:fficulties-"joblessness begins to electric bills. When energy prices increase rise, duration of unemployment inc.reases employment but very often it is with over 75% in one year (July 1973 to June sharply, occupational mobility is seri­ drastic reductions in pay and require­ 1974), they automatically create Economic ously limited, and the incidence of pov­ ments in skill. For these individuals, Ripple Effects that cause massive inflation, erty increases." aside from the di1Iiculty in paying mort­ unemployment and budget deficits. From August 1969 to November 1976, gages and supporting families, long-term The U.S. from now on will be in a per­ the number of unemployed increased unemployment may possibly have the petual series of economic and financial crises from 2,856,000 to 7,769,000, representing damaging effect of reducing future re­ c.~.s present U.S. energy price policies are aimed at getting all U.S energy prices up to a percentage increase of 272 percent. tirement income. OPEC levels regardless of the economic dam­ While the increased unemployment was The saddest element of all the figures age. difficult for the entire Nation, the in­ concerning older people is the increas­ Kerbec predicted the economic disruptions crease had very serious consequences for ing level of poverty. According to the of 1974-76 in 1973 and states that most of that group of workers over the age of 40. Bureau of Census, there are 25,877,000 the disruptions could have been avoided. In August of 1969, there were 596,000 people now living in poverty. Of that NOTE B unemployed Americans over the age of figure 5,450,000 represent heads of houSe­ From 1973 through 1974, coal, natural gas 40. Today there are 1.4 million Americans holds. Of these 5 million family heads, and refined petroleUin product prices in­ over that age out of work. According to well over 1 million are between the ages creased an estimated $62 billion or a. total Department of Labor statistics, this rep­ of 45 and 64, 'and 728,000 are over tbe of $186 billion from 1973 through 1976. About resents 26.7 percent of the total unem­ age of 65. $50 billion of this went to OPEC. The rest ployed. While the national unemploy­ represented an approxJ.mate loss of purchas­ One of the problems of older employ­ ment rate as of November was 7.8 per­ ment legislation is convincing people tha~ ing power of $136 billion. cent, it is fast approaching 9 percent for In 1976 the total cost for all forms of older people want and need to work. The energy in the U.S. is estimated at $165 bil­ individuals between the ages of 55 1 million heads of household are obvious lion. This is greater than the total food cost. and 64. evidence of the need. It can certainly be From Dec. 1973 to Dec. 1974 energy, steel, According to a report by the National assumed that a good percentage of them chemical and other energy intensive basic Council on Senior Citizens, the above are able and willing to work. Though, the product prices increased over 60% and were figures only represent the "tip of the ice­ Age Discrimination Act was a positive the primary causes for the 12% infiation in berg." Because of the limited possibilities step, it is not positive enough. Though, 1974. These price increases caused economic for employment, it was estimated in 1972 title IX, community service jobs are an January 13, 19'77 EXTENSIONS OF REMARKS 1125 excellent step, officials have testified that trous !allure to appreciate the folly of un­ that sudden infant death syndrome 1s more the serious problem rests with those peo­ necessary meddling in the normal birth likely to occur among bottle-fed than breast­ fed babies. This was supported last year by a ple below the social security age seeking process, a. meddling which is stlll to be pub­ licly decried by the American College of New Zeal•and study which claimed 10 bottle­ full-time employment. Though, CETA Obstetricians and Gynecologists and the fed infants die of the syndrome to every was supposed to assist older workers, title American Academy of Pediatrics. breast-fed infant. m mentions the elderly as a target group, it is up to the discretion of the Mrs. Cohen has also furnished me with prime sponsor whether or not it intends the following items of interest in the to make use of elderly workers. same connection: an article from the THE FRENCH CAPITULATION: A Obviously, a more affirmative step is New York Daily News of November 16, BLOW !!'0 PEACE IN THE MIDDLE needed to provide jobs, uplift the skills 1976, and excerpts from a Jack Ander­ EAST and capabilities of older workers, provide son column of February 23, 1976. seriously needed training and counseling [From the New York Dally News, services to prevent future despair, and Nov. 16, 1976] HON. STEPHEN J. SOLARZ to research and develop more oppor­ HoME BmTHs SAFER, SAY SoME Docs OF NEW YORK tunities for middle-aged and older (By Gus Dallas) IN THE HOUSE OF REPRESENTATIVES Americans. Women should give birth at home instead Thursday, January 13, 1977 of in hospitals because the risk of damage to the baby is greater in the hospital, according Mr. SOLARZ. Mr. Speaker, I am out­ to some doctors who attended an obstetrical raged, as I suspect most Americans are, CURRENT TECHNIQUES IN CHILD­ management conference at the Statler Hil­ at the cowardly capitulation of the BffiTH ton Hotel yesterday. French Government in releasing the Dr. Robert S. Mendelson, pediatrician and associate professor of preventive medicine Palestinian terrorist known as Abu HON. JONATHAN B. BINGHAM at the University of Illinois, predicted that Daoud. This man has publicly boasted of 10% to 15% of the babies born in hospitals his role in the murder of 11 Israeli ath­ OF NEW YORK in the next 12 months Will be needlessly dam­ letes and 6 other people at the 1972 IN THE HOUSE OF REPRESENTATIVES aged during labor and birth. He advised Munich Olympics. But it was not only Thursday, January 13, 1977 greater use of midwives. some innocent Israelis who were the vic­ HOW DAMAGE OCCURS tims of the murderous machinations of Mr. BINGHAM. Mr. Speaker, one of "Doctors intervene too much in what is a the terrorist organizations with which he my constituents, Mrs. Estelle Cohen, of natural process; they act as if pregnancy is a is associated. Our own Ambassador to the Co-op City in the Bronx, has made a nine-month disease that needs their help to Sudan was murdered in an attempt to special study · of current techniques in be resolved," he said at the conference of the obtain his release from an earlier childbirth which she is convinced are American Foundation for Maternal and Child Health. imprisonment. dangerous and responsible for many In hastily releasing a leading terrorist grievously handicapped children. The He said birth damage is brought about when doctors rely too much on drugs, anes­ whose extradition was sought by both following letter, which appeared in the thesia, analgesics, inducing birth, discourag­ Israel and West Germany, France belies New York Post on February 23, 1976, ing breast feeding and ignoring psychological its recent threats to crack down on the summarizes her position: needs of the patient. Risk of infection and plague of terrorism of which its own [From the New York Post, Feb. 23, 1976) accidents in a hospital is greater than in the agents have been the victims. How would BARBARIC CHILDBmTH? home, he said. if A compa.rison matching women who had the French Government react another Let's continue to manage chlldbirth in our babies at home with women who had them nation were to casually release the ter­ hospitals in the worst interests of babies; in a hospital indicated greater damage in­ rorist Carlos who has murdered French let's continue to use hazardous drugs and stances in hospitals, according to a study citizens? The battle against terrorism fiat delivery tables; let's continue to start reported by Dr. Lewis E. Mehl of the Infant cannot be effective unless all nations labor at our convenience and hurry it along; Development Center of the University of Wis­ cooperate. let's remove newborns from their mothers consin. to be fed from a. bottle by a. stranger in a. Beyond this, the French action is rep­ There were 1,064 women in each group rehensible because it diminishes the nursery. when the study commenced, but 8% of those Let's pour mlllions of nonlea.rning and who had ploanned to have their babies at prospects for peace in the Middle East. disturbed children into our population and home had their delivery in the hospital be­ If Israel is to withdraw from occupied let's continue to ignore the relationship be­ cause of complications, he said. territories as part of a peace agreement, tween their impaired nervous systems and He said the study showed that there was thereby rendering itself more vulnerable the assaults on them at their births. When no difference in deaths but that there were to another Arab attack, it must have be­ the barbarism of childbirth, American style, 30 birth injuries in hospitals compared to is finally recognized, let's wonder why so lievable assurances from the nations of none at home; 52 hospital infants needed the world that they will guarantee the many were silent long after the warning resuscitation to 14 at home; six suffered neu­ signals went up. rological damage in hospitals, to one at home, inviolability of whatever borders are and eight had infections in the hospital, to agreed to within the framework of such I also include herewith a letter Mrs. two at home. a settlement. When France violates its Cohen wrote to the New York Times "I believe that a hospital environment leads own treaty with Israel as well as ac­ published on April 20, 1976, in response the hospital practitioner to expect pathology cepted standards of international justice to a letter from a Vermont doctor who and intervention is started that may not be and morality, it is hardly likely to re­ criticized the movement toward births necessary," he said. assure Israel that it can rely on the kind at home: He did not advise that all women should have their babies at home, but said women of subsequent commitments that will [From the New York Times, Apr. 20, 1976] should be informed of risks and options so necessarily have to be part of any future To the Editor: that they can make their own decisions. Mal­ agreement between Israel and the Arabs. In decrying the movement toward births practice suits also would decrease drastically, Unfortunately, France appears to care at home, Dr. Landrum B. Shettles wrote he said, since many suits are brought by pa­ more about its blatant campaign to [letter April 10] that "a. single loss of a baby tients who contend that they were not told curry favor with the Arabs than its in­ or mother under such inadequate circum­ about side effects and other risks, he said. stances is simply unacceptable." ternational reputation for independence The sad fact is that for the healthy woman and integrity. The French now have bids capable of bearing ch.Udren without the JACK ANDERSON {WITH LES WHITTEN) on several enormous projects in Egypt intervention of less-than-omniscient obste­ We recently reported that the stodgy ad­ and Saudi Arabia. The irony is that tricians the odds in favor of a. neurologically ministrators of the National Institutes of France does not appear to have been intact baby are probably better in the home Health were stifling reseoarch which they con­ any more successful in obtaining such birth than in most of our hospitals. sidered ••unconventional." This has caused contracts than West Germany and other A Congressional inquiry is long overdue the U.S. to drop behind other nations in cer­ European nations which have not found on the continued ignoring of research warn­ tain fields. ings about potentially hazardous obstetrical In response to our column, several scien­ it necessary to abuse themselves before drugs and techniques because the presence tists have contacted us about other vital re­ the Arabs. of such great numbers of brain-impaired search that NIH is neglecting. Here are a few What is at stake here is not merely children in our population should be "sim­ emmples: the interest of Israel in bringing to jus­ ply unacceptable." There has been a dlsas- Dr. Robert Reisinger has claimed for years tice those responsible for the murder 1126 EXTENSIONS OF REMARKS January 13, 1'9 77 of its citizens but also the ability of the people. These programs, the council re­ and set the national benefit at that level? entire international community effec­ ported, are characterized by "administra­ What about regional variations in the cost tively to curb the scourge of terrorism. tive complexity and expense: inequalities 1n of living? And, finally, how much more the distribution of benefits and requirements federal money can we atrord to devote to Without the cooperation of all nations, for eligibillty, and confusion among poten­ income maintenance? . no nation ca.n assme its citizens of their tial recipients." When we start looking for the answers, safety. France, by its craven capitula­ "The situation has been made even more we run into the realities of congressional tion to the terrorists, has not only for­ complicated and confusing," the council politics. Welfare reform is a relatively sim­ feited its claim to national respect, but added, "by the tangled mix of benefits which ple political issue for representatives from has also dealt a severe blow to the cause include cash, food, housing and medical the smaller states with low benefit levels. of international tranquility. • care as well as a long list of services." Any new federal program which replaces A SPRAWL OF PROGRA!4S AFDC is likely to mean a reduction in state The ancient shibboleth of the French spending and at least a slight increase in Revolution which has inspired thousands The study was limited to aid for the benefits for recipients. But House and Sen­ may have to be amended to read liberty­ elderly, but the same fragmentation atrects ate members from the larger states, par­ equality-fraternity-terrorism. benefits for all age groups. A recent Library of Congress report listed 55 separate pro­ ticularly those in the Northeast, will find grams providing government payments of that welfare reform does little to help their cash or services to various groups of people recipients or to lighten their states' financial with limited incomes. load unless substantial new federal money STREAMLINING WELFARE These 55 programs have grown haphazardly is injected into the system. PROGRAMS over the years. Programs have been piled on How can we ease the fiscal pressures fac­ top of programs with little regard for unl­ ing the high-benefit states at a time when formity or equity. voters are clamoring for a cleanup of the HON. MARTHA KEYS A landmark congressional study of the welfare "mess'' and a tight federal budget OF KANSAS welfare system, directed by former Rep. permits little in the way of new initiatives? Obviously, this central question will not be IN THE HOUSE OF REPRESENTATIVES Martha Griffiths, looked at the causes of this chaotic development and found: answered easUy or quickly by political Thursday, January 13, 1977 "Our income security programs are shaped decision-makers. Mrs. KEYS. Mr. Speaker, my colleague, by at least 21 committees of the Congress NEEDED; A POLICY and by 50 state legislatures, by six Cabinet While we are looking at the "tangled mix" Mr. FRASER, has written a superb article departments and three federal agencies, by of federal benefits, we need to keep in mind for the Washington Post on the stream­ 54 state and territorial welfare agencies and that federalizing AFDC and "cashing out" lining of our welfare system. With the by more than 1,500 county welfare depart­ the "in-ktnd" benefits represent only one Congress facing the problem of sorting ments, by the U.S. Supreme Court and by approach to the issue of welfare reform. out the many issues involved in welfare many lesser courts. Some have proposed that we leave the reform, I highly recommend Mr. FRASER's "Each of the congressional committees current programs in place and concentrate concise analysis of the present problems typically deals only with its own subject instead on helping the needy by giving them and some proposed solutions: area, although changes in one benefit pro­ jobs and tax credits. Many welfare experts gram, such as cash welfare or social security, advocate a "three-track" system which deals STREAMLINING WELFARE PROGRAMS commonly atrect another, such as food in di1ferent ways with those who can work (By Donald M. Fraser) stamps or veterans' pensions. Because of the but are unemployed, those who are work­ Mr. H. was angry. categorical nature of the •system' and the ing but at low-paying jobs, and those who ..Uncle Sam, keep your lousy raise," he restricted viewpoint of the executive agencies are unable to work outside the home. Un­ wrote. "I am much better otr without it!" and congressional committees, attempts to der this plan, public jobs would be found The irate constituent, a 56-year-old dis­ remedy one program tend to create another." for the able-bodied in the public sector if abled construction worker, explained that In an etrort to cut through the "tangled no jobs could be found tor them in the his problems started in July when his social mix" of federal programs, Martha Gr11fiths private sector. These people could obtain security disab111ty benefits increased by $14 and others have proposed building a na­ benefits at least temporarUy through the a month. "First, they took away my Medic­ tional welfare system around a uniform, unemployment compensation system if they aid, then the price of food stamps went up, federally administered program that pro­ could find work in neither the public nor and also my rent in the high-rise. The final vides a minlmum income for those who can­ the private sectors. The working poor would blow came when my veteran's pension was not support themselves for one reason or be aided through the tax system by ex­ cut. another. Under this approach, the state­ panding the earned income credit now pro­ "They took away the tncrease and much administered Aid to F'am1Ues with De­ viding a kind of negative income tax for more!" pendent ChUdren (AFDC) program would those earning less than $8,000 a year. Wel­ Mrs. S., a 67-year-old widow, used less be eliminated. Certain non-cash benefits fare would be retained for the eldery, the harsh terms when she wrote to complain such as food stamps, housing assistance and disabled and single parents with small chil­ about the same problem. "I had to get re­ social services would be "cashed out." Re­ dren at home. certified for food stamps in May," she ex­ cipients would get the full or partial cash Congress and the Carter ad.m1n1stra.tion plained. "I was told: 'You'll be getting an value of these various "in-kind" benefits. wUI have to explore the various approaches increase in your social security in July, so This approach brings uniformity and ad­ to welfare reform and develop a plan that 1s we will have to raise the cost of the food ministrative simplicity to the current frag­ humane, cost-etrective, administratively effi­ stamps by $5.' Then a letter came to reduce mented welfare system, but it also raiSes cient and polltically stable. Obviously, this my [state welfare) supplement by $2.10. some dtmcult fiscal and political problems. is not a task that can be completed in the Then a letter from the housing authority VARYING STATE STANDARDS first hundred days of any new administration raising my rent by $2." To begin with, current benefit levels va.ry or Congress. "SO after a social security raise of $12.20, greatly from one state to another. In Min­ OUr first task w1l1 be to develop a frame­ I came out with a $3.10 'profit.' Sometimes nesota, for example, a famUy of four can work within which the work of welfare re­ you wonder just who is getting the increase!" receive the cash equivalent of roughly $7,000 form can go forward. We will have to look at Mr. H. and Mrs. S. are two of the millions a year in various welfa.re benefits, whUe the the broad policy questions: What are we of Americans caught up in the complex same family in Alabama or Mississippi can trying to accomplish through the welfare sys­ interactions of a vast array of federal pro­ receive only about half as much in benefits. tem? How do we deal with the needs of the grams providing cash payments and "in­ If Minnesota's standard is adopted for the working poor? How do we divide our re­ kind" services for those with special needs. entire country on a cash basis, the cost to sources between this group and the unem­ Because they receive assistance from mul­ the federal government would be 1n excess ployed? What kinds of work requirements tiple sources, these people often find that of $120 billion a. year. and work incentives do we build into the an increase in benefits from one program Some will argue, of course, that Minne­ system? Which "in-kind" programs shou1t\ triggers reductions and/or loss of aid from sota's standard is too generous. They will be "cashed out?" other sources. Mr. H. and Mrs. S. receive maintain that the federal government A ROLE FOR CONGRESS their main source of income from social should set a. lower standard and permit security. Their other benefits are "income states like Minnesota to supplement the As we look for the answers, we many find tested," meaning that eligibility 1s contin­ federal benefit with state funds 1f they that the solution to the welfare "problem" ge-nt on llmited income and assets. As their choose to do so. But that would require does not lie in major new federal initiatives. income rises, these benefits are reduced and a. complicated two-tier system of federal Rather, we may find that current programs eventually ellminated. and state benefits. can be adjusted to function more adequately The lives of these two recipients are not "Cashing out," moreover, poses some within a coherent, integrated framework. as complicated as some. The Federal Coun­ broad policy questions: How do we deter­ Congress has contribued in large part to cil on the Aging in its 1975 report deter­ mine what the federal benefit level should the fragmented development of existing pro­ mined that the federal government funds 34 be? Do we merely calculate the average grams, as the Griffiths study notes. With 21 separate programs that directly aid older benefit now being paid by the various states committees in the House and Senate each January 13, 19'77 EXTENSIONS OF REMARKS 1127 shaping its own legislation, it's understand­ confront Mr. H., Mrs. S., and millions like possible" to get the Hill-Burton Fund to able that a more integrated welfare policy them. give financial backing to a hospital in has not emerged from Congress. Clearly, any major welfare reorganization the South Bay area since San Pedro was effort will need the active support of the ad­ THE COMMUNITY SALUTES campaigning for a new hospital at the ministration i! it is to succeed. President­ CHARLES F. CRAWFORD same time. Drawing on his vast experi­ elect carter has indicated strong support !or ence as a journalist, Charles began a 3- the goal of welfare reform and is likely to year publicity blitz in order to fill the send a legislative package to Capitol Hill HON. GLENN M. ANDERSON need he saw in his community. sometime this year. OF CALIFORNIA Thirty-one newspapers published his But Congress need not wait for the ad­ IN THE HOUSE OF REPRESENTATIVES articles and photographs during that ministration to prepare the legislative blue­ time, documenting the need for a new prints. There are steps the legislative branch Thursday, January 13, 1977 can take early in the new session to over­ medical facility. Working up to 18 hours come structural roadblocks to comprehensive Mr. ANDERSON of California. Mr. a day, Charles Crawford raised funds for policy-making. New rules in the House, for Speaker, the winner of the combined the facility. Finally, as a result of his example, enable the Speaker to establish San Pedro Lions Clubs' Annual Com­ monumental efforts, Hill-Burton granted temporary committees to handle those is­ munity Recognition Award must be a $594,000 to establish the Bay Harbor sues that cut across existing committee juris­ very special person. Mr. Charles F. Craw­ Hospital. Besides the resources needed dictions. This procedure might be used to ford, who will receive this honor on Jan­ for property and furnishings, an addi­ deal with the question of welfare reform. Members of a Temporary Committee on Wel­ uary 27, 1977, certainly qualifies under tional $350,000 still had to be raised-a fare Reorganization could come from Ways that description. task that Crawford worked on with typi­ and Means, Agriculture, Veterans' Affairs and Born in Iowa in 1904, Charles Craw­ cal gusto. Today, he still sits on the hos­ other House units with jurisdiction over the ford moved to Tustin, Calif., at the age pital's board of directors, heading up various cash and "in-kind" benefit programs. of 2. Married in 1924 to his lovely bride, public relations for the facility. This committee, working together with the Grace, he moved to San Pedro in Oc­ Mr. Speaker, the South Bay and har­ administration, could begin the task of na­ tober of 1936. bor areas seem to be the kind of com­ tional goal-setting that must proceed before Charles Crawford--or Charlie, as he munity that fosters involvement and out­ we can start overhauling programmatic ma­ chinery. The committee could spend the ear­ is known to his many friends in the Los standing citizens. Charles Crawford is a ly months of the new session examining the Angeles Harbor area--worked for a time perfect example. At the age of 72, he current programs and formulating an ap­ as a waterfront reporter for the Long keeps up a pace that makes his retired proach to those broad issues that Congress Beach Press Telegram. On December 8, status a joke among his many friends. has not been able to address because of juris­ 1941, the day that the United States en­ National director of the Izaac Walton dictional fragmentation. The new House unit tered World War II, Charlie joined the League of America, he donates his efforts could then begin developing reorganization staff of the Los Angeles Times. From and services to the Bay Harbor Hospital, proposals that the 95th Congress could con­ his original position as a waterfront re­ the Boys' Club, the Retarded Children's sider and act upon during its second session. Given the timetable required by the Con­ porter, Mr. Crawford later became ma­ Foundation-whose publicity campaigns gressional Budget Act, these proposals, if rine editor for that paper until his re­ he developed-and other local commu­ adopted, probably could not take effect until tirement in 1969. nity activities too numerous to list here. the fiscal year beginning Oct. 1, 1978. During World War II, Charles Craw­ In addition, he developed the harbor SOME INTERIM STEPS ford took over Boy Scout Troop 207 at area hunter safety program with in­ Major welfare reorganization may be at Leland Street School in San Pedro, and structors from the Izaac Walton League, least two years away, but there are interim held all troop meetings in his home. In which has helped make hunting safer steps that Congress can and should take. addition, during this period he served as and more enjoyable for many. As a mem­ In the short run, the new House Welfare official photographer for the Standard ber of the national executive board of the Committee could deal with certain program Shipbuilding Co., ran a weekly news­ Izaac Walton League of America, he is interaction issues that cause such problems paper in Newport Beach, and tried to one of nine elected officials of the 60,000 for recipients and administrators. care for an orange ranch he owned in member organization. For example, the Committee could examine the impact of the automatic cost-of-living Tustin-quite a busy schedule for any I can think of few people who deserve increases built into the social security and man. the combined San Pedro Lions Club supplemental security income (SSI) pro­ In early 1942 Charles Crawford became Community Recognition Award as richly grams for the elderly, blind and disabled. district chairman of camping activities as does Charles F. crawford, and I would These yearly increases have caused many for the Boy Scouts in the South Bay area. like to take this opportunity to commend recipients to lose other benefits, since cligi­ He and his son, Richard, were the first him for his many outstanding achieve­ b1lity standards for food stamps, Medicaid harbor area residents to receive the ments and good deeds. His lovely wife, and other "in-kind" benefits have not been "Order of the Arrow," a national cam­ Grace, and their son, Richard, must be adjusted at the same time that social secu­ rity and SSI payments have risen. More paign group whose membership is open very proud of the honor he will soon standardized eligibtllty limits, adjusted !or by invitation only. He demonstrated his receive. increases in the cost of living, could help considerable expertise in camping by resolve this interaction problem. taking a group of Boy Scouts for a week The committee might also examine the in the mountains that year, returning CAPITULATION TO INTERNATIONAL automatic linkage between certain cash and with three cracked ribs to prove it. TERRORISM "in-kind" benefits. Currently, an AFDC re­ An avid outdoorsman and conserva­ cipient is automatically eligible to recP.ive tionist, Charlie joined the Izaac Wal­ Medicaid while his or her nextdoor neighbor HON. JOSHUA DLBERG who is not a recipient but whose income 18 ton League in 1950 and has been an ac­ the same, may not be eligible for this "in­ tive member ever since. He took part in OF PENNSYLVANIA kind" benefit. The same linkage exists be­ the first fish plants in California's Sal­ IN THE HOUSE OF REPRESENTATIVES tween the cash grant programs and food ton Sea by helping the California De­ Thursday, January 13, 1977 stamps. These arrangements clearly discrim­ partment of Fish and Game capture fish inate against those of the working poor who in the Gulf of California and transport­ Mr. Ell.aBERG. Mr. Speaker, today I do not receive cash benefits. The automatic ing them to the desert salt lake. These sent the following telegram to the Presi­ linkages could be eliminated by making all dent of the United States: people at the same income level eligible for efforts have resulted in a unique, inland saltwater sportfishing paradise located DEAB MR. PRESIDENT: The release of Abu the same benefits, regardless of income Daoud by the French Government was a source. in the middle of a desert. Charles Crawford's activities as a jour­ cowardly capitulation to international ter­ Streamlining the fragmented welfare sys­ rorism. tem will not be an easy task, but it is a task nalist, Scout leader, Parent-Teacher As­ The United States must make it clear that should not be put oft'. By developing a sociation member, and conservationist through its statements and action that it coherent policy framework Within which the alone would qualify him for an award condemns France's decision without a.ny federal programs can operate and by helping from a grateful community. However, in to make these programs mesh more smoothly, reservation. we can lay the groundwork for a more inte­ 1957 he began a drive that resulted in a Unless the free countries of the world grated national income maintenance system. unique gift to his area. make it clear to all terrorists that they will In.doing so, moreover, we can deal in a tan­ After speaking to osteopathic doctors not give 1n to their demands nor retreat in gible way With the very real problems that Crawford was told that it would be "im- the face of their threats these international 1128 EXTENSIONS OF REMARKS January 13, 19.77 criminals will eventually control all of our H.R.- Our profit-motivated way of doing things actions. A bill to prohibit travel at Government won out over the various forms of socialism For these reasons I ask that you recall our expense outside the United States by Mem­ long ago. It never was much of a contest. Ambassador to Paris as a sign of our total bers of Congress who have been defeated, When it comes to efficiency in producing and disagreement with action of the French or who have resigned, or retired distributing goods and services for people, Government. there just is no comparison. Be it enacted by the Senate and House of Things are available to Americans in an Representatives of the United States of abundance and variety undreamed of in America in Congress assembled, That, not­ other parts of the world. PROHIBIT LAMEDUCK TRAVEL withstanding any other provision of law, no True, prices are high by past standards. part of any appropriation and no local cur­ but remember that personal incomes con­ rency owned by the United States shall be available for payment of any expenses, nor tinue to keep ahead of the rate of infiation. HON. ROBERT H. MICHEL shall transportation be provided by the True, unemployment is a serious and un­ OF n.LINOIS solved problem, but don't forget there are United States, in connection with travel out­ more Americans with jobs than ever before. IN THE HOUSE OF REPRESENTATIVES side the fifty States (including the District There are more than ever, too, living in of Columbia) of the United States of- comfortalble retirement; and more who are Thursday, January 13, 1977 (1) any Delegate, Resident Commissioner, able to retire early if they choose. Mr. MICHEL. Mr. Speaker, there can or Member of either House of Congress after Ab111ty and talent are so commonplace in be no doubt that many citizens look upon he has been defeated as a candidate for this country that most of us ta.ke them for the Congress with something less than nomination, o:- election, to a seat in the House of Representatives or Senate of the granted. It didn't create much of a splash admiration. A recent poll taken by Poto­ United States in any primary or regular when Americans made a clean sweep of the mac Associates, shows that in a list of 18 election until such time as he shall there­ Nobel Prizes this year. Still, it was the first public and private institutions, the "Fed­ after again become a Member of Congress; or time ever that one country won all the eral Legislature" ranks 11th insofar as awards. (2) any Delegate, Resident Commissioner, Poll after poll shows much criticism of public confidence and trust are con­ or Member of either House of Congress after U.S. capitalism, but only a vague under­ cerned. I hasten to add that even this the adjournment sine die of the last session standing of how it really works. ranking should give no comfort to us. of a Congress if he is not a candidate for Most Americans are capitalists-they are Among Government officials generally we reelection in the next Congress. buying homes, investing in insurance or SEc. 2. The first section of this Act shall ranked 14th. We did just manage to edge not apply with respect to any Delegate, Resi­ other savings, devoting time, energy and out the CIA and labor unions for rock dent Commissioner, or Member of Congress enterprise directly or indirectly to making a bottom but not by much. where a concurrent resolution passed by Con­ personal profit--though they don't think of Taxpayers are, quite bluntly, fed up gress so exempts that individual, or, with themselves as capitalists, and they are sus­ picious of the profits of business. with the pomp and circumstance and, respect to utilization of Federal funds pro­ Yet, profit is what makes the system work. quite often, nonsense, that passes for ef­ vided by law for round trip travel of such Delegate or Resident Commissioner between And the system fills the wants and needs of ficient government in Washington. They people better than any other anywhere. Com­ are particularly angry-and quite cor­ the District of Columbia and the district which he represents. munism, !or example, has been trying to rectly in my view-<>ver those little com­ catch up with the American standard of liv­ forts and "perks" and psychic rewards ing for more than half a century, and it with which we console ourselves from hasn't even come close. time to time. Among such, none appears AMERICANS SHOULD BE THANKFUL Ask yourself this: to rankle more than the time-honored If the United States is such a bad bet for custom of defeated or retiring Congress­ the future, why did foreigners invest nearly 27 billion dollars of their own money in men traveling overseas at taxpayers ex­ HON. ROBERT McCLORY OF n.LINOIS American enterprises last year? That is three pense after their defeat or retirement times more than they sent over here a decade announcement. IN THE HOUSE OF REPRESENTATIVES ago. While I have no doubt that these trips Thursday, January 13, 1977 Sometimes it takes the observations of vis­ can be solemnly defended as being ab­ itors from abroad to remind people what an solutely necessary to the safety of the Mr. McCLORY. Mr. Speaker, although impressive place this is. Republic and that ingenious arguntents the 94th Congress adjourned before last A European banker, for example, remarked can be constructed demonstrating that Thanksgiving Day, I wish to recall one to an American acquaintance the other day: the fate of the Western World depends meaningful Thanksgiving statement "American children are better brought up which appeared in the November 29, than the well-to-do in Europe. Here they upon defeated Congressman Smith or learn to do things with their hands. They Jones :flying first class to Paris or Tokyo, 1976, issue of U.S. News & World Report aren't asha.med to get them dirty taking the taxpayers are simply not listening to composed by Howard Flieger. cars apart, building a cabin in the woods or those arguments any longer. They want His Thanksgiving message is an ap­ laying out a veget8ible garden." nothing less than lasting results for their propriate reminder to all Americans The wife of a foreign diplomat: hard-earned tax dollars. They most cer­ which is applicable every day of the year. "Americans are so law-abiding. Driving to tainly do not see any lasting resu1ts Mr. Speaker, as we open this new Con­ the airport at five in the morning recently I emerging from lameduck overseas travels gress it would seem most appropriate to noticed cars stopped at red lights waiting recall the strengths and virtues which for the signal to change even though there except perhaps to provide at great public was no cross traffic. At home, we'd never do expense, a store of happy memories for characterize our great country-to give that with no cars coming." the defeated official. thanks for those-and to honor and re­ And from another visitor: I am, therefore, today reintroducing spect the characteristics of our American "You people are so friendly, ready to smile my bill to "prohibit travel at Govern­ system which have led us to our impor­ and help. There aren't many places around ment expense outside the United States tant position in the world today and the world where this is true." by Members of Congress who have been upon which we must rely as we move for­ Such remarks deserve the attention of defeated, or who have resigned or re­ ward toward even greater heights in the those who despair of Thanksgiving. They ex­ years ahead. plain why so many Americans return from tired." a thoroughly enjoyed trip abroad, recount It is my hope that this bill will be Mr. Speaker, Howard Flieger's edi­ their travels with enthusiasm, they say: looked upon by the Members not as a torial, "Thanks, Thanksgiving," follows: "It's good to be back home." blanket condemnation of foreign travel THANKS, THANKSGIVING on the part of Congressmen. I support the (By Howard Flieger) right and, indeed, the duty of Congress- A friend complained the other day that, men, at the proper time, traveling abroad with the passage of time, it is more and more BffiTHDAY OF DR. MARTIN LUTHER at taxpayers expense for purposes rele­ difiicult for him to find anything about this KING vant to public business. What I am at­ country for which to be thankful. tempting to do here is simply ratify what The trouble with him, as with many others, I believe is the consensus here and in the is that he has stopped looking. HON. BENJAMIN A. GILMAN Nation. We have the duty to put our own There is so much in this country to merit OF NEW YORK thanksgiving that some people can't see the House in order. Let us put an end to forest for the trees. IN THE HOUSE OF REPRESENTATIVES lameduck overseas journeys at taxpayers The American economic system-basically Thursday, January 13, 1977 expense. It is sensible and desirable re­ free enterprise-has its faults, of course. But form, long overdue. it st111 is the best and strongest in the world, Mr. GILMAN. Mr. Speaker, I welcome The text of my bill follows: all things considered. this opportunity for commemorating the January 14, 1'9'77 CONGRESSIONAL RECORD-SENATE 1129 birthday of Dr. Martin Luther King, a beliefs and actions. Our gratitude to our In Arlington County in my district more man whose courage and conviction re­ Nation's heroes is great, but our debt to than 65 percent of all occupied residen­ main with us today, even 9 years after our martyrs is far greater. Martin Luther tial units are rental dwellings. his untimely and tragic death in April King reawakened in all Americans the Under present law a homeowner may of 1968. compassion for the less fortunate, the deduct on his Federal income tax the Dr. King is a national hero in no com­ downtrodden, for those to whom life amount of real estate taxes paid to his monsense of the word. While the concept proved, not a blessing, but a burden. Our county or city of residence. No such tax of a hero as the man of bravery and valor debt to' him demands more than a .simple deduction is available to the renter even has been with Americans since the .con­ reawakening, but a finn, staunch course though the taxes are paid as a part of ception of our Nation hundreds of years of action, complemented by a spirituality the monthly rent check. My bill seeks to ago, there is a distinct difference between which has for too long a period been correct this inequity. the traditional American hero and Dr. secondary. The way it would operate is simple. King. Americans have had to use force If Dr. King were still alive today, I Once the total amount of Federal income throughout their history, and often­ believe he would remind, in his gentle, tax has been computed, the amount owed times bravery has been equated with nonviolent, and magnetic way, that we, would be reduced by up to $75 for a some form of violence. And those who the Members of the 95th Congress, re­ married couple who file jointly or $50 were considered heroic have been those dedicate ourselves to the basin tenets of for a single taxpayer-$37.50 for mar­ who were best equipped to kill-the pio­ the Bill of Rights, to the sentiments set ried taxpayers filing separately-provid­ neers who struggled against the rugged forth so eloquently in the Declaration ing a direct savings to the renter. The elements of the frontiers, and who man­ of Independence. He would prod the leg­ proposal is intended to be simple and aged to overcome threats posed by In­ islators of this Nation to be constantly understandable to insure its wide use. It dians, natural disasters, and the wilder­ aware of the children who go to bed each does not require the calculation of ac­ ness. Our soldiers have been held up as night cold and hungry, of the thousands tual real estate taxes paid as a part of paradigms of bravery for all Americans; of old Americans who waste away in ne­ the rent but establishes a uniform dol­ their battlefield sacrifices having been glect, of the millions of the poor and lar figure and gives the taxpayer a direct lauded and recorded throughout our jobless who view life with a sense of credit. A plan similar in form is now in history. despondency and hopelessness. And he effect in the State of California. The use Dr. King is a hero in the true sense, would pray that we would act in their of the device of a tax credit rather than but his heroism is of a distinct and dif­ behalf to provide all of our people with the more customary tax deduction in­ ferent kind. Martin Luther King the opportunities which belong to all sures that those renters who take the struggled against all of the violent in­ Americans. standard deduction on their Federal tax stincts of man. He lived his life with the I urge my colleagues to join with me returns rather than itemizing their de­ knowledge and certainty that nonvio­ in offering our respects and' tributes to ductions will still benefit under my bill. lence is a superior force, that nonvio­ Dr. Martin Luther King on this anni­ For example, a renter earning $1.5,000 per lence in all aspects of one's life insures versary of his birth. year and filing as a single taxpayer a humanity which transcends the or­ would remain eligible for the full $2,400 dinary man and which summons up our standard deduction and would be eligible finest qualities. Dr. King, in all that he TAX CREDIT FOR TENANTS for the $50 tax credit as well. This com­ sought and ac-complished, maintained, as bination of tax credit and standard de­ did Ghandi and the American, Henry HON. JOSEPH L. FISHER duction is an effort to place renters in David Thoreau, before him, that passiv­ roughly the same position as homeown­ ity and pacificism are not to be equated OF VIRGINIA ers under our Federal tax laws. The use with cowardice and ineffectiveness, but IN THE HOUSE OF REPRESENTATIVES of a tax credit rather than a tax deduc­ rather, that these qualities are to be de­ Thursday, January 13, 1977 tion has the further advantage of pro­ veloped and utilized with the knowledge Mr. FISHER. Mr. Speaker, today I am viding a larger relative tax benefit to that nonviolence is far stronger and far lower income families and individuals. more human than brutality and unre­ reintroducing a bill I offered during the stricted force. last session to provide a tax credit for I recognize the fact that this proposal For his beliefs, Dr. King was jailed renters, who under current law are not is a major change in Federal tax laws and he was ridiculed for the concern and permitted to deduct on their Federal in­ which have historically put renters at a compassion that made him a leader not come tax the amount of local real estate disadvantage. A measure of the impact of only of black people, but of all Ameri­ taxes they pay as part of their rent. this change is that the staff of the Joint cans on the long road to equality. His My bill would provide a credit against Committee on Internal Revenue Taxa­ dreams and ambitions parallel the Amer- · Federal income tax of 5 percent of an­ tion estimates the revenue loss from my ican dream, and indeed, have become nual rent, up to $75 for a married couple proposal to be $1.7 billion. With increas­ part of the American dream: That all filing jointly-$37 .50 each if they file ing numbers of Americans choosing the men and women, regardless of color or separately-and $50 for single taxpayers. efficiency and relative convenience of creed, regardless of sex or economic back­ This would apply to persons who rent apartment living I believe we must re­ ground, have the privilege and right to their principal residence for 8 months examine the policies of our tax laws. I aspire to all that America is capable of out of any year under a genuine rental hope my bill will serve as a basis for that giving: spiritually, humanistically, and agreement. reexamination. materially. A large and growing segment of our I shall make every effort to urge the Dr. King is not only an American hero, population rents its residence. In 1970, Ways and Means Committee, on which he is an American martyr who gave his 37 percent of all Americans rented their I serve, to begin deliberations as soon as life so that others might benefit from his residences, 42 percent in the Northeast. possible.

SENATE~Friday, January 14, 1977 The Senate met at 12 o'clock meridian goodness to us and to the Nation we act. Spare us from harboring memories and was called to order by Hon. DENNis serve. In these days of transition help us of what cannot be corrected but help us DECONCINI, a Senator from the State of with discretion to forget some things and to remember the things rightly done. Arizona. with appreciation to remember other Keep us from lugging into the future any things. Give us grace to shed the destruc­ lingering resentment, unforgiven hostil­ PRAYER tive debris of the past and to grasp the ity, or chronic ill will. As Thou dost for­ The Chaplain, the Reverend Edward affirmations which give strength for the give, help us to be forgiving. Endow us L. R. Elson, D.D., offered the following future. Grant us grace to forget some with the strength, the wisdom, and the prayer: "failures, some mistakes, some moments grace which comes from above, that we of bad judgment or unwise decision. Help may reflect that faith, hope, and charity Almighty God, whose glory is revealed us to remember the wise action, the which endures forever. in the Earth, the sky, the sea, and in the sound judgment, the hour of selfless We pray in the Redeemer's name. works of man, we praise Thee for Thy service, the generous deed and the kindly Amen. CXXIII--72-Part 1