1957 . CONGRESSIONAL RECORD - HOUSE 6639

EXTENSIONS OF REMARKS The Road Ahead for Business ment-the Hoover Commission-headed by 1s not supposed to compete with private a truly great native Iowan, former President business. Hoover. Secondly, the competition that ls estab· EXTENSION OF REMARKS In almost 2 years of committee hearings lished between private business and Gov­ OF on the report of both the first and the sec­ ernment is not only a breach of principle, ond Hoover Commissions, I've seen the work but it is decidedly unfair. As you very well HON. THOS. E. MARTIN of the various junior chambers of commerce, know, one of the items that is highly im­ all across the country. It is my impression portant in establishing a record in business OF IOWA that in many, many areas the junior cham­ is the ability to keep production costs at a. IN THE SENATE OF THE UNITED STATES ber was one of the first-and often the very minimum. The b'.isinessman who keeps his Wednesday, May 8, 1957 first-organization to put its weight behind costs below his competitors' has a better the recommendations of the Hoover Com­ chanc~ to establish a lower cost for his Mr. MARTIN of Iowa. Mr. President, missions. For that interest and public serv­ product. When business and Government I ask unanimous consent to have printed ice, I sincerely congratulate you. In turning are the competitors however, Government in the Appendix of the RECORD an address your efforts toward one of the great tasks has certain advantages on its side. For ex­ which I delivered before the annual con­ facing our people today-that of reorganiz­ ample, Government business enterprises vention of the Junior Chambers of Com­ ing certain portions of our Government­ are usually relieved of many important you are fulfilling one of the public services charges private business must pay-charges merce of Iowa at Waterloo, Iowa, on May for which the junior chamber of commerce like taxes, interest, depreciation, a full pay­ 4, on the subject, The Road Ahead for was founded. roll and fringe benefits to personnel. I'm Business." National defense, security, and the general certain if your competitor were allowed to There being no objection, the address public interest sometimes justify active con­ ignore these charges you would consider the was ordered to be printed in the RECORD, duct of limited business operations by the competition highly one-sided, yet when Gov­ as follows: Government, but in my service on the Sub­ ernment is doing the competing, it enters committee To Study the Findings of the the economic battle with these built-in THE ROAD AHEAD FOR BUSINESS Hoover Commission, I have seen a great num­ advantages. (Address by THos. E. MARTIN, Republican, ber of instances where Government has vio..; There are two possible reasons why Gov­ Iowa, before the annual convention of the lated its proper role in relation to business. ernment has continued in these business Junior Chambers of Commerce of Iowa, To emphasize this point, allow me to pass activities. I have little patience with either Waterloo, Iowa, May 4, 1957) on to you some of my observations. Of them. One reason is the natural resist­ Mr. Chairman and my good friends of the It is impossible to make a precise estimate ance to change of great size and magnitude Junior Chambers of Commerce of Iowa, it is of the number and type of private enterprises in established operations. It certainly is a great pleasure to address your convention into which Government has extended itself easier to let things ride, but we can't afford tonight. The many communities of Iowa in the last several years. We did discover, to ignore any fund~mental disregard of prin­ are no different from any firm or any.organ­ however, that within the Department of De­ ciples. The other reason is that the advo­ ization-they need the enthusiasm, the in­ fense alone, the total number of commercial cates of Government in business sincerely be· terest and the new blood of their younger and industrial-type facilities that were owned lieve Government can do a better job than members in order to stay alive. Through the by the Government exceeded 2,500. Our sub­ private enterprise. Such persons haven't junior chambers of commerce, the towns committee was told by the Hoover Commis­ read their history lessons carefully enough. and the cities of Iowa benefit greatly from sion that on the 31st of December 1954, there They don't understand the philosophy of your knowledge and your services. To say were 47 categories of this type of enterprise our Constitution, our Government or our you are doing an outstanding service for the that the Defense Department was operating. people. areas in which you live would be a gross The list is far too long to enumerate now, I'm proud to report to you this evening understatement. You are making a signifi­ but let me call off a few of them for you. that in Washington we are '1.oing something cant contribution, not only through the Each of these is an instance where the Gov­ about this breach of principle. In the last many worthwhile projects you i .itiate and ernment actually owned n.J.d operated the 2 years the Defense Department alone has carry through, but also by the very fact that business: A clothing manufacturing plant, a closed down 359 Government businesses, and you care enough about your community to paint factory, an ice-cream plant, an eye­ action by other agencies brings the total work for it through your organization. I glass manufacturing firm, a furniture repair closed down to almost 500. Each of these sincerely congratulate you on your interest shop, a cement mixing plant, a tree and gar­ 500 examples is an instance wherein the and your service. den nursery, a coffee roasting business, an Government formerly operated a business­ I am going to talk to you about "the road airline, a steamship line and a railroad. operated it in direct competition with pri­ ahead for business." Since most of you par­ The estimates were that the total Govern­ vate business-operated it to such an extent ticipate in the business life of your commu­ ment capital involved probably exceeded $15 that in some cases it gained a monopoly nity, the future road of business is of real billion. I believe your conclusion is the because private business couldn't compete interest. same as mine. and had to fold up-but in each of the 500 You and I have a common meeting place It is easy to see how the Government be­ cases the Federal Government is now out of for my brief remarks tonight. You partic­ came involved in these businesses. Because private business and free enterprise has ipate actively in the business world of today of exceptional circumstances-an economic gained what it should not have lost. I'm and I am employed as one of your servants emergency or perhaps the emergency of war­ proud of the job we've done in the past 5 in government. Our mutual interest con­ the Government became involved in areas years. It's sheer nonsense to find the Gov­ cerns the blending of these two forces-busi­ usually reserved for private enterprise. But ernment involved in making bread, mixing ness and government. In the complex world the continuance in business by Government cement or repairing furniture. But a great of today government and business are thrown long after the emergency had passed is a dif­ deal remains to be done. We find special together in a variety of ways. That associa­ ferent matter. In 1954, a subcommittee of pockets of resistance whenever we start to tion generally works to the great benefit of the House Committee on Government opera­ translate a recommendation into a concrete both. Whenever the association works to the tions found that from 1929 to 1948 public removal of Government from a specific busi­ detriment of business, it behooves all of us wealth had grown 287.5 percent while private ness field. We will continue the fight to keep to do what we can to improve matters and wealth had increased only 78.7 percent. In Government where it should be. And we when a business group has organized a 1929 the public wealth represented only 15 welcome the support of such fine groups as monopoly that restricts trade and the free percent of the total national wealth, but in the junior chambers of commerce. fl.ow of commerce, government must step in. 1948 the public wealth amounted to 27.3 per­ I may have given you the idea that GOV'• There are other instances where the Gov­ cent of the total national wealth. These ernment should never be involved with busi­ ernment has undertaken competitive busi­ figures occasioned this comnient from one ness matters. That would be a mistaken ness operations that are not warranted. I of the Government leaders in Washington: idea. There are certain areas where Govern­ have had a firsthand view of some of the This is not creeping socialism-it's galloping ment and business can work together closely, abuses· that have occurred. When I became along at a very fast pace. hand in hand, to the mutual benefit of both. a Member of the Senate, I was assigned to There are many reasons why this is an One such area was aptly defined by President the Government Operations Committee. One unfortunate trend-why this trend must be Eisenhower in his economic report for 1956. of the subcommittees of that group is the stopped. In the first place it violates the I would like to quote a few sentences from Subcommittee on Reorganization of Govern­ basic principles of our Government. With• that report because the President puts his ment. We have been holding hearings and out any question, our Constitution places finger squarely on one of the most important investigating the recommendations and find­ protective and regulatory functions in the segments of our economy: ings of the second Commission on Organiza­ Federal Government rather than the right "Government can strengthen competitive tion of the Executive Branch of Govern• to produce goods and services. Government markets by helping small and medium sized 6&1:0 . CONGRESSIONAL RECORD - HOUSE May 8 businesses overcome impediments to their of this Government agency, 7 out o! 8 of was permanent. This confidence would expansion. In our mod{;lrn economy with them are made in cooperation with private spread to businessmen also. In short, the its heavy capital requirements, high 'talXes batiks. As I lru'freatea be.fore, tnis is 1lhe Srriall Business Administration is doing a and emphasis on national markets, -small model pa'ttern of cooperation between 'Gov­ 'Splendid job and I want to see it continue concerns are subject to serious handicaps in ernment and private business. In Iowa it its program of aiding and assisting the small many nnes nf enl!leavor. lYl!t "th'e con:t1:ml­ -works the way 'it stmu"id "WOI'k. businesses ot the CGWitry. ance of small and medium sized businesses, 'Jlhe flecom.1.fUllCt.J.lllll d the Small Business The small businesses of the country, and .and their 'a'billty o iprosper and :gr.ow, are Administration is to assist small buEinesses particularly those of Iowa, are making a "W.tal to the :Nation's w.elfa.re. • -. • Wlmn in ~i'ng a ta.ix sb:are ur Government :con­ great ..contribution .to 'the ~Y of the .tne Government nel.ps sma.ller -canoerm; rto "tr~s. There :are two reasons for this patlcy. country. They have :&hared the burdens that overcome 1iame .ol' the 'htndr:anoes to 1their In 1lhe first place, it .seems mama:tic tlha't a accom,pany economic or international crises. ..growth, lit is acting in the t:rtter..ests of the "thriving anel successful ..small-business com­ . And filley have contributed significantly to whole economy."' municy is the :com.man denominator to A.iroc­ the strength of the peacetime economy of It is not my role this evening to '3Dllke a oessful American -economy. O'a:r systmn of our country. Small business asks no special J.la.rtiHn speech to you, !but I wattld like ·to free enterprise uepends on bo'th sm:a11 lmd ifavors Irom this or au~ admiuis:tr&tion. .It d:.te the Teeord d the -past five :y~BJ."S in :r.ela­ large business. By .making .aerta.in the small asks onl:Y to fbe .allowed .:to gr.ow in an at­ tian lto the program to help :the Email . busi- :businesses -of tbe country receive th-eir pro­ mo~here of free economy and fair com­ nesses of the oomrtliy, ;rm. 'Certain you re­ portlonam -sbare of Government '.COntracts petitiOn. With Jill :the power 11.t my member, as .Ldo, the many 'Charges "'that 11ew we a.re helpmg to .assure ourselv.es of a nommand I .shall continue to w<>rk towa;rd ba-ck and forth a.crass "the country .il:a'St .No­ he-althy economy. :seoondly, ·in tbe -event of ·this _g-Da-1. vember to -the .etteet that "'the small-business it national-defense -emergency_, it is neces­ man has been the forgotten man. 'No s:pe:ech sary 'that the Email bUsinesses of -the coun­ llil -the future Uf business in our .cnuntry :cnn try are ready Ior Tull mObiUzation . .History Ninth Anniv.ersary of lnflependence el be complete ~tb:out .a .recimtiou m l!ome of makes it .abllndlUltly :elear that in 'bhe ev.ent the acoomplishments 1n >this iield in the last of such an emergency the country needs fille l•raet 1ive 'Years. effictenoy .and 1ngenuitf or the small-busi­ The Gm.rernment ..a:geney that 1s 'tied .!most n~ss man. EXTENSION OF REMARKS directly with .the -small businesses of the The t'hird function -Of the Small Business l:aunt.cy is .the 'Small J3llBiness ..Aclministra­ i\tiministration i's to provide management OF ticm. ':Chis ;agency, 1Cr.eated ,in 195.8, is the &na. technlcal assistance for tihe small bmi­ first agency in our country's htstary .that. is -nesses of 'thle .country. The . "significance of HON.· JACOB K. JAVlfS aevote'd ESClnsi:rely to aicli.ng 'the -small busi­ 11lis assistance ·is higb1iglrted by "figures OF .NEW .Y:OltX nesses of tht!i CC1Untry. The ~ncti'ons of the "'from Dun & llradstc.e~ .tndlca'ting that IN TFIE SENATE OF THE 1UNITI!lD f:>TATES Small Business Administration can be sum­ 86 iper,cent of business failures are due to Wednesday_, MO@ 8, 1957 marized in.to f-om .categories: poor mllllagement. rm 'Certain :you are 1. To pro:vide financial assistance Alld Beutely :aware :of one fact-: .today., !the busi- Mr. .JA'VITS. Mr. President, on the ceunseliDg. , nessma.n is eompetin·g in ·a highly complex oeeasion of the ninth anmversaT_y of the 2. To pr.ovide _proourement assistanoo to business 'World :of ~ting practices, cost "nd d f I l t"',,,,,..,,. small .firms. oontrols, -time and motion stud:ies, and a 'I epen enc~ ·o ~ srae,, L~L'C wa~ a 3.. Xo secure for &malrl business managa­ ~reat "varit:!t'y .of similar business -practices .commemcrativ.e ~ner .~1:'1 m Wa~­ inent and .technka.l assistance. anti stu:d.ies. '!lhe :SBA's pr,ogz:am to grant - ton by the wome.n s d1vLS10n_. .American 4. To provide disaster loans far .small tacbn1cal assistance .anu -managerial -aids to Jewish -Oongil'ess. The igatheliing 'WB.S businesses. .sm-all-lbusiness men puts him inn a more .addT.essefl by the Ambassador of F.r.BlDCe The SBA .1s most noted for the financial -n-e-arly equal ..footing ·viith his big bro'ther_ to the United States, Hervi Alphaind; loans .and ass·istance it provides for -the _ 'The .Small Business Administration tt1p- by the Amba'SSador from ~sme11o the .small-business ·cammunitie.s of our -Nation. erates tthis program_ in a variety of ways. United States Abba "Eban -and t>y One thing that is highly significant is the "Booklets and 1pam-plilets are made ava1la.1Sle, If. ' ' iPr.ocedur.al pattenn .of the Small Business ~urses a.re offered in conjunction With col- .myse . . Admillistr.a.tiOll. in .this field. ~.rue to the leges and :universities and. a new products - 'The .occasion of the dinner .of the prlnclples we .conceiv.e .to be basic to our -program is contlucted 'by tne SBA. .Ame11.iean-Jewish Oengress demonstr.ated .economy, the SBA does not _compete with t:>f course, the •elfeetlveness of Govern- three tpnints -which are so vital on this private bank-s. .It is n-ot the function of this ment ln thls program 1£ decid-edly llmited. anniversary: 'fir-st, that Israel has per­ Government .agency .to com,pete dillec.tly wlth The Bma11 ButSiness Administration, and the fo1med its mission 'Of being a haven f.or private banks for lo.ans to small business. top offici1als of the executive branch of Gov- appressed Jews from -everywhere its Rather, it is .an auxiliar_y for_ce-one that ernment, ;realize .that sucb a program must . . _ ' works with -banks to the eventual better­ be lmtire-ly -voluntary in natul'e. -Certainly doors oemg wide open to persecuted ment of the business climate of the Ao.un- . you ·do not want the Government to step in .J-ews i110Ill w?erever they ma.y ~ome ; try. Two-thir.ds of aJl loans made thrcough e;mt te11 yon nGw tto run your business. second. Israel cs .able and herore eff.orts the SBA are .e.ccomplisbed in ..cooperation But the SBA ma.ires this information avail- m secmeitsnational integrity ;and make with parti-cipatin._g banks. I am particularly 'll.ble if .you desire it. ll'his . aree. is one in the oountry viable; a;nd, rthird, that '.£8- proud of the r.ecor.d Jn this field .made in the which the junio: <:hamben; of D?-merce rael is a firm ally of the United States State of Iowa.. Without encumherl~ _y.ou ~t .ln~e a Sigmficant oontributmn to in the struggle of th~ free peoples of the with figures., I would Uke to cite the record :thlllr bumness commmllties. to prove that in .Iowa. ;the SBi\ and the pri- -Th-e:fourtil fmmtion of the SBA is oral that w.orld. ~ . 11ate banks ace w.orking to._g-etber in a model '1Dr.ttma:tely w.e haven't needed to a great I ask unarumous CQnsent 'to .have pattern <>f ,priJ.rate and Government coqpera­ lrlEli's were made whereby the banks and 'the SBA million tor Connectie'Ut, but it ls goOd to DIVISION, AMERICAN JEW,ISH 00NGRESS, NA­ participated jointly lmmedia:tely .a-nd .another known this service -emts if we do meed it. !I'IONAL CONVENTION, SHOREHAM HOTEL, 73 loans were ..made whereby the b&Iik .made I have spent £ome time diseussing 'tlle WASHINQTDN,D. C., ~y 6 the loan for the .first portion c0f .the "term 'SBA with you. "'I re-el this agency 'Of gov­ T.he iVita.1 :question -tar mu .a gov.ernmsnt .and 'the Small Business AlF imiporta:nt when ~rou.r.eali:ae1;hat years cosponsors ef legtsllttion -currently 'before an:niv.mrsa:ry .of 7th~ .es:tab.Usl:aue:rtt .of Israel, ago .under the BF\C .apprcOO.mai;ely ;one-~d the Senate which 'WOlllld make 1llre SBA a ¥1e note tllait Ismel ll-as met evf!ry ttmda­ ar ~ iloam w.ere participafling lomm !8-nd "Perm-anent organtza'tiun. i believe that cer­ mental ch-all:enge -wlrt:Ch .has 'been .extended the .other twD-:thirds were anade cSOJ:ely by the .tain 'definite •ad.vantages -would "'l'esult il "We to her. Gn'MT!J1'RPI1± agency_ Under 'the SBA, na­ catad make 1lhts .:arm ..o! Government per­ !'.t «preserved its e~ ~t .fibe ag­ tiolnvide, about 70 percent of 'the lo&nll 1:1.re ma;neni;. For en.mp~. 1: believe the ;agency ~an m 1J:re ~g .Arab ..states­ .mlilie mi cooperation '.Wltth batiks. 'But in \WOlllG. be able to

The successful operation of the wool There being no objection, the address Another great reason tor the alarming rise export program by the Department af was ordered to be printed in the RECORD, in the cost of government ls the constant Agriculture is of tremendous value to as follows: demand from organized pressure groups far domestic wool producers. This excel­ appropriations for their pet projects, for new ADDRESS OF UNITED STATES SENATOR EDWAB.D and expanded functions of government, for lent record of export ties in very well .M.z\aTZN, OF PENNSYLVANIA, AT THE CON­ .sectional .advantage and for every conceiv­ with the .succe.5sful operation of the wool VENT.ION OF XHE !NTERNAT.ION.AL .BROTHER• able form of .spending. incentive program. BOOD OF BOII.EaMAKEB.S AND BLACKSMITHS That same sort of pressure must now be The incentive program which has been IN THE BELLEVUE-STRATFORD .HOTEL,, PH.II.4• exerted in support of economy. Ii we are to of so much value to the eoonomic life DELP.HIA,Jl4AY 7, 1957 achieve government at lower cost we must of the country. particularly the wool pro-' It is an honor to greet this great organiza­ develop a demand for economy. so strong and ducing regi