2770 CONGRESSIONAL RECORD - ·HOUSE February 19

·BY Mr. BOWLES:_ By Mr. CURTIS of Missouri: By - ~. McFALL~ · H. Con. Res. 87. Concurrent resolution H .R. 4826. A bill for the relief of Arthur H.R. 4~40, A bill for tlie reltef of Montano seeking United States initiative for a joint E. Collins; to the· Committee cin the Judi­ Rigodo Ralnirez; -to the Committee on- the free world economic mission to ilndia; to the ciary. Judiciary. Committee on Foreign Affairs. By Mr. DORN of New York: By Mr. MONAGAN.: . By Mr. MERROW: H.R. 4827. A bill for the relief of Judith H.R. 4841. A bill for the relief of Mrs. Ha· H. Con. Res. 88. Concurrent resolution and Veronika Askenazi; to the Committee llna Rudnicka; to the Committee on the Ju. seeking United States initiative for a joint. on the Judiciary. diciary. ' · free world economic mission to India; to. H.R. 4828. A bill for the relief of Bruce­ By Mr. OLIVER: the Committee on Foreign Affairs. Rubenstein South; to the Committee on the H .R. 4842. A bill for the relief of· Yoll By Mr. BURLESON: Judiciary. Bellussi and his wife, Janina Bellussi; to the H. Res. 179. Resolution restricting the H .R. 4829. A bill for the reHef of Mrs. Ro Committee on the Judiciary. · payment of dual compensation by the Clerk A Candelmo (Cho Ro A) and her minor son, By Mr. QUIGLEY: of the House of . Repres~ntatives; to the Com• David Phillip Candelmo; to the Committee H.R. 4843. A bill for the relief of Mrs. Anna mittee on House Administration. on the Judiciary. Jaborek Gaussmann; to the Committee on H .R. 4830. A bill for the relief of Primetta the Judiciary. Galli; to the Committee on the Judiciary. By Mr. TEAGUE of California: MEMORIALS By Mr. FLYNN: H.R. 4844. A bill for the relief of Mrs. H .R. 4831. A bill for the relief of Istvan Wong, Lau Sau Kam; to the Committee on Under clause 3 of rule XXII, memorials Bokor; to the Committee on the Judiciary. the Judiciary: were presented and referred as follows: By Mr. FRELINGHUYSEN: H.R. 4832. A bill for the relief of Ioanna By the SPEAKER: Memorial of the Legis­ Leontaritou; to the Committee on the Ju­ lature of the State of Missouri, memorializ­ diciary. PETITIONS, ETC. ing the President and the Congress of the By Mr. FRIEDEL: Under clause 1 of rule XXII, petitions United States to establish a national recrea­ H.R. 4833. A bill for the relief of Mrs. tional area on the Current and Eleven Point Anna Toezser; to the Committee on the Ju­ and papers were laid on the Clerk's desk Rivers, and declare the rivers national diciary. and referred as follows: streams, and to provide for the acquisition By Mrs. GRANAHAN: 82. By Mr. CANFIELD: Resolution adopted of the necessary land; to the Committee on H .R. 4834. A bill for the relief of Giuseppe by the board of trustees, Milk Dealers' Asso­ Interior and Insular Affairs. Antonio Turchi; to tlle Committee on the ciation of Northern New Jersey, in opposition Judiciary. to any increase in Federal gasoline tax; to By Mr. JACKSON: the Committee on Ways and Means. PRIVATE BILLS AND RESOLUTIONS H.R. 4835. A bill for the relief of Milton •sa. By Mr. MONAGAN: Petition of the s. Koblitz; to the Committee on the Judi­ Public Utilities Commission of the State of Under clause 1 of rule XXII, private ciary. Connecticut tliat ·the Federal excise taxes bills and resolutions were introduced H .R. 4836. A bill for the relief of Grace on telephone services are not consistent with and severally referred as follows:. West Hawkins; to the Committee on the the maintenance of a reasonably priced and By Mr. ANFUSO: Judiciary. nondiscriminatory public telephone service H.R. 4823. A bill for the relief of Anna H.R. 4837. A bill for the relief of Walter and, that such Federal excise taxes should Marina Marolo Rossiello; to the Committee E. Durham; to the Committee on the Ju­ be repealed;· to the Committee on Ways and on the Judiciary. diciary. Means. By Mr. BLATNIK: H.R. 4838. A bill for the relief of Robert 84. By the SPEAKER: Petition of town­ H.R. 4824. A bill for the relief of Mate Dunham; to the Committee on the Ju­ ship of Gloucester, N.J., petitioning consid­ Vukelic; to the Committee on the Judiciary. diciary. eration of their resolution with reference to By Mr. CURTIN: By Mr. LINDSAY: giving favorable consideration to the Fed­ H.R. 4825. A bill for the relief of Jean K. H.R. 4839. A bill for the relief of Peter F. eral loan of funds for the construction of a Simmons; to the Committee on the Judi­ de Ullmann; to the Committee on the Ju­ superliner ship; to the Committee on Mer­ ciary. diciary. chant Marine and Fisheries.

EXTENSIONS · OF REMARKS

Use of Dairy Products special, individual cases in which the pa- I am sure the Milwaukee Journal's tients are su:fferng from specific problems editorial writer was being primarily fa­ EXTENSION OF REMARKS of high blood cholesterol content does cetious when he suggested that Wiscon­ Dr. Calver warn his patients to avoid sin politicians might wish to suppress OF foods having a high content of animal sound medical advice concerning the . HON. WILLIAM PROXMIRE fat and hydrolized vegetable fats, as well. effects of diet upon health. Neither OF WISCONSIN SpecificaJly, Dr. Calver tells me, he· Wisconsin's dairY industry nor Wiscon­ advises patients to .avoid all rich foods, sin's official representatives would be IN THE SENATE OF THE UNITED STATES such .as gravies, sauces, fried foods, and party to encouraging individuals who Thursday, February 19, 1959 so forth. He emphasizes that vegetable have special health problems to consume Mr. PROXMIRE. Mr. President, a fats, when used · in the preparation of foods which are not good for them. But few days ago the Milwaukee Journal paid foods, such as in frying, become hydro..: on the other hand, it is important to a high and well-deserved compliment to lized, and, therefore, contribute as seri- have a clear and fair picture of precisely Dr. George W. Calver, the chief medical ously to the blood cholesterol problem as what the facts are-as fully as they are officer in the Capitol. The Journal edi­ do animal facts. Finally, Dr. Calver known to responsible medical authorities. torial complimented the vigor and fit­ emphasizes that it is the manner of life Without this clarification, I fear that the ness of the Members of the Senate, too, of the individual patients-rather than Milwaukee Journars editorial may have and noted-quite properly-that Dr: the characteristics of these foods-that left its readers with a completely unin­ Calver deserves at least some of the is the determining factor as to whether tended, but nevertheless false, impres· credit. Certainly each one of us is grate­ they should avoid them. The fact of sion of the true health considerations in ful to Dr. Calver for the conscientious the matter is that fats are extremely respect to dairy products. The fact is concern with which he helps to guard high in energy-much higher than are that milk and milk products are whole­ the health and fitness of members of the legislative branch of our Government. proteins or carbohydrates. As Dr. Cal- some, nutritious, and health-giving The Journal editorial, however, wa.S ver says, if a man is digging ditches or foods; and any suggestion that this is somewhat inaccurate on one point­ engaging in some other strenuous form" not so would be a greater disservice to namely, in stating that "Dr. Calver is of activity and exercise, he will readily. the Arilerican public than even to the telling Congressmen to avoid cream and burn up as much energy as he can con- dairy farmers. butter." I have checked wfth Dr. Calver,. sume; but a man who spends long hours ·· Mr. President, I ask unanimous con· who tells me that this is not his general of work at a desk, ·with littl~ exercise, sent to have the editorial printed in the advice to his patients. In fact, only in. does .not require a high-energy diet. RECORD. · 1959 i. CONGRESSIONAL RECORD- HOUSE 2771 There being no objection, the editorial part of universities and other nonprofit with other free nations all effective means was ordered to be printed in the RECORD~ organizations as well as providing a posi­ for joint assistance to India in meeting her vital needs for long term democratic growth. as follows: tive encouragement to similar efforts on The text of the concurent resolution fol­ DANGEROUS DIET ADVICE the part of industry. lows: Watching the United States Senate in It is my firm conviction that encour­ "Whereas the continued vitality and suc­ action recently we were struck by the physi­ agement of basic research by inducing cess of the Republic of India is a matter of cal vigor and trimness of the Members of contributions to organizations covered common free world interest, politically be­ that venerable body. Many of them had under this bill and by encouraging in­ cause of her 400 million people and vast land obviously been dieting. Many of them dustrial expenditures for such purpose area; strategically because of her command­ showed the results of exercise. Even 90- is preferable to a system of governmental ing geographic location; economically be­ year-old Senator GREEN, Democrat, of Rhode cause of her organized national development Island, seemed physically spry-resulting in grants. Under the provisions of the bill effort; and morally because of her hearten­ part from the fact that he walks to work interference in research programs by the ing commitment to the goals and institutions every day and takes other forms of exercise. Federal Government would be kept to a of democracy: Now, therefore, be it Credit for some of this physical fitness minimum. In the case of contributions "Resolved: That it is the sense of Congress must go to Dr. George W. Calver, resident to universities and nonprofit institutions, that the United States Government should physician to Congress. He's a great man for there would be no interference in that invite other friendly and democratic nations exercise-says a Congressman should take a under the bill a determination of what to join in a free world mission to consult brisk hour's walk before breakfast. And he's with India on the detailed possibilities for a great man for dieting, too. But he's going constitutes basic research in science joint action to assure the fulfillment of In­ to have some trouble with Wisconsin's con­ would be left to the conducting institu-· dia's second five-year plan and the effective gressional delegation. tion. In the case of expenditures by design of its third plan; and that the Secre­ Dr. Calver is telling Congressmen to avoid industry the bill would provide for the tary of State report to the Congress on the cream and butter. He tells them they can establishment of a certifying authority feasibility of such a miss\on after consulta­ eat oleomargarine. If these are require­ consisting of a board of eminent scien­ tion with interested governments and with ments for physical. fitness, Wisconsin's.dele­ tists appointed by the President on the the Republic of India." gation won't carry off any fitness prizes. A recommendation of the National Science diet restriction like that would be treason. And it might-in Wisconsin-even be Foundation. Thus, there will be pre­ political suicide. served in the Federal participation in the program, the point of view of the Major Amendments Needed in Davis­ active scientific researcher rather than Bacon Act the point of view of an administrator A Bill To Amend the Internal Revenue of a Government agency. EXTENSION OF REMARKS It is my conviction that favorable ac­ OF Code of 1954 To Encourage Basic Re­ tion on this legislation designed to en­ search in Science by the Allowance of hance basic scientific research in the HON. JAMES ROOSEVELT OF CALIFORNIA a Tax Credit for Contributions and United States would do much to assure the maintenance of our country's scien­ IN THE HOUSE OF REPRESENTATIVES Other Expenditures for Basic Research tific and industrial world preeminence Thursday, February 19, 1959 in Science and is in the interest of fostering the improvement of humanity and the cause Mr. ROOSEVELT. Mr. Speaker, I of peace. join with my able colleague, the gentle­ EXTENSION OF REMARKS . man from Rhode Island [Mr: FOGARTY], OF in offering a bill to amend the so-called HON. THOMAS B. CURTIS A Joint Economic Mission to India Davis-Bacon Act, relating to the payment of prevailing wages on Federal construc­ OF MISSOURI tion work. A companion measure is be­ IN THE HOUSE OF REPRESENTATIVES EXTENSION OF REMARKS ing introduced today in the pther body Thursday, February 19, 1959 OF by Senator HuMPHREY, of Minnesota, Mr. CURTIS of Missouri. Mr. Speak­ HON. CHESTER BOWLES and Senator McNAMARA, of Michigan. er, I have introduced today a bill to This law was first enacted in 1931, and OF CONNECTICUT was considerably revised in 1935 to rep­ permit an allowance of a tax credit for IN THE HOUSE OF REPRESENTATIVES contributions and other expenditures for resent what was then a comparatively basic research in science. The bill Thursday, February 19, 1959 effective instrument for preventing the which I propose would provide a tax con­ Mr. BOWLES. Mr. Speaker, I wish purchasing power of the Federal Gov­ cession with respect to contributions to to include in my remarks the following ernment from undermining existing la­ universities and nonprofit organizations joint statement issued today by the dis­ bor conditions in the construction in­ for basic research in science as well as a tinguished junior Senator from Massa­ dustry. tax concession to industry for basic re­ chusetts [Mr. KENNEDY], the distin­ Since 1935, however, experience has search in science. guished senior Senator from Kentucky revealed many drawbacks in the frame­ The tax concession in the case of con­ [Mr. CooPER], the gentleman from New work for administering the Davis-Bacon tributions to universities and nonprofit Hampshire [Mr. MERROW], and myself Act. In fact, changing conditions in the organizations would take the form of a concerning the concurrent resolution construction industry, and in the meth­ credit against tax to the extent of 90 which we have jofned in introducing in ods of Federal financing, has required a percent of the contributions made with this body and the other body today: new look at the way the act operates to­ a further limitation that the credit shall day. That is the purpose of this bill; We are today introducing in both the namely, to provide a basis for taking a not exceed 5 percent of the tax. In the House of Representatives and the Senate a case of basic research activities by in­ concurrent resolution urging our Govern­ new and more realistic look at the Davis-· dustry the credit would be limited to 75 ment to take the initiative in consulting Bacon Act. percent of the expenditures with a fur­ other nations of the free world, including May I say at the outset, that major de· ther limitation that the credit shall not India, about the appropriateness and use­ fects in the Davis-Bacon Act have be­ fulness of a joint economfc mission to India. come apparent over the years. exceed 3 percent of the tax. This is the great moment of assessment, It will be recalled that the report to appraisal, and forward planning for India as FIRST. ADMINISTRATION the President on basic research by the it seeks means to complete its second 5-year It has been shown time and time again National Science Foundation, dated Oc­ plan and to set in motion its third plan that the Secretary of Labor does not tober 19, 1957, indicated that the Nation's scheduled to begin in 1961.. possess the necessary authority and re­ basic research effort must be substan­ There is a wide measure of support for these dramatic and critically important sponsibility to see that the Davis-Bacon tially increased. This bill, I believe, efforts, not only in the United States, but Act is properly enforced. No right to would give effect to the recommendation also among other nations of the free world. enter and inspect for violations now ex· made by the National Science Founda­ The 86th Congress, acting on a bipartisan ists, as it does under similar labor stand· tion by providing increased financial re­ basis in both Houses, can give timely assur­ ards laws such as the Walsh-Healey Pub· sources for basic science research on the ances to India of our willingness to explore lie Contracts Act and the Fair Labor 2772 CONGRESSIONAL RECORD- HOUSE February 19 standards Act, granting the Secretary This type of unfair wage competition all federally insured or guaranteed loans of Labor full power to investigate to see was the very reason for the enactment of for the purpose of financing any non­ that there is compliance with these laws. the Davis-Bacon Act in the first place. farm construction program other than Furthermore, the Davis-Bacon Act now It is the purpose of these amenqments to housing developments of less than 10 fails expressly to charge the Secretary upgrade the act so that it will once more units. with the duty to find violations and to carry out its original purpose. Second. To modernize the term "pre­ bar contractors from Government work THmD. OVERTIME AND PRE MIUM PAY vailing wage" : The Secretary of Labor would be required to predetermine, and for the prescribed 3-year period. In­ Going hand in hand with fringe bene­ stead, these powers rest with the con­ Government contractors would be re­ fit payments are overtime and premium quired to pay, not only the prevailing t racting officer or with the Comptroller pay provisions now prevailing in most General, with resulting failure in effec­ hourly rate as presently specified in the labor market areas across the country. Davis_;Bacon Act but also prevailing tive enforcement because of diffusion of These payments and all overtime, Sun­ responsibility. contractor payments to health and day or holiday work were practically un­ welfare funds, (b) retirement funds, (c) SECOND. WAGE DETERMINATI ONS heard of on Government work in 1935. vacation funds, (d) apprenticeship Since 1935, the Secretary of Labor has Both the depression and the rigid 8-hour funds. confined himself to determining the law combined to restrict all work to Third. To put hours of work and over­ basic hourly wage rate as the only pre­ straight time hours during the normal time on a prevailing basis : The Secre­ vailing rate required by the act. Now­ working day. tary of Labor would be required to pre­ adays, however, this basic hourly wage · But times have changed. The con­ determine, and Government contractors rate falls far short of reflecting the ac­ struction industry has been booming ever would be required to pay, the prevailing tual hourly labor costs on construction since the beginning of World War II and overtime rate for each construction craft jobs. Collective bargaining agreements the 8-hour law has been waived on Gov­ on a daily and weekly basis including throughout the industry now cover ernment work wherever time and one­ prevailing overtime practice on Satur­ many additional payments for the wel­ half is paid for overtime work each day. days, Sundays, and holidays. fare of workers-payments which did Common practice in almost all major In addition, as a minimum require­ not exist in 1935. For example, most cities in the country has been to pay ment, contractors would be required to agreements in many areas of the coun­ double the straight time rates for over­ pay not less than time and one-half for try now provide for payments, on an time work and for work on Saturdays, hours worked over 8 per day, over 40 hourly or payroll basis, to health and Sundays, and holidays. These practices hours per week, over 5 consecutive days, welfare funds, in ·order to provide much provide still another aggravating factor and on Saturdays, Sundays, and holi­ needed sick and hospital and medical which the Labor Department has ignored days-. benefits to construction workers and in determining the prevailing wage rate Fourth. To centralize enforcement their families. Payments are also fre­ under the Davis-Bacon Act. and create a construction appeals board: quently required for pension funds, for FOURTH. COVERAGE under this particular amendment, the vacation funds and for supplementary Today, and for more than 25 years, Secretary of Labor would have (a) Au­ unemployment benefit funds. Many thority to make uniform enforcement agreements also require payments to var­ the Davis-Bacon Act has only covered direct construction contracts of the Fed­ procedures for all Federal Government ious training funds of direct benefit to contracting agencies; (b) direct power­ journeymen · and apprentices whose eral Government. All other types of federally assisted construction have not including the use of subpena-to in­ skills are the lifeblood of the construc­ vestigate violations; and (c) authority tion industry and the mainstay of those been protected by the Davis-'Bacon Act, except in those cases where the act has to apply violation penalties, including who depend upon this great industry for authority to black list. their livelihood. be:m extended to cover special Federal aid programs. Examples of this type of In addition, this bill provides for the Recent surveys have shown that the creation of a Construction Appeals payments to these funds are not only a extension are the Hospital Survey and Construction Act-grants to States and Board, appointed by the President, con­ substitute .for direct wage increases sisting of one representative from the which workers would otherwise have re­ local organizations for hospitals-the Federal Airport Act-grants to local public, one from contractors, and one ceived as a part of their basic hourly from labor. This three-man independ­ wage rate, but in addition, that these agencies for airport construction-and various Federal housing acts-insuring ent board would be required to review payments now are a very large part of and issue, as expeditiously as possible, the hourly wage costs in the construc- loans or otherwise aiding multiple hous­ ing projects constructed locally. These final decisions on appeal from the (a) tion industry. . Secretary's wage predeterminations; In the plumbing and pipefitting extensions have been made largely on a "hit or miss" basis. and (b) the Secretary's findings of vio­ oranches of the construction industry lations. alone, there are funds in more than 68 When the Davis-Bacon Act first be­ came law, Federal aid to local construc­ These four major amendments are of 100 cities surveyed by the U.S. Depart­ necessary so that Federal money will ment of Labor. Payments to these funds tion did not exist the way it does today. At tha.t time it was not important to not be used to destroy prevailing wages, run as high as 46% cents per straight­ hours of work and working conditions time hour or as high as 12 percent of the cover all federally assisted construction. Nowadays, however, a very large share and to eliminate the present bidding basic hourly wage. Other crafts in advantage of unfair contractors in those other cities have negotiated even higher of the Federal construction dollar is spent by means of various types of areas where union building trades con­ payments. ditions are in fact the prevailing prac­ These payments cannot be ignored or grants, loans, payments, or guarantees tice. discouraged because they exist to bene­ given to local agencies of one type or fit workers for whom they are made. another, and it has become increasingly Yet they are ignored and discouraged. necessary to cover these types of con­ struction expenditures on a fair and per­ The Government's $10 Billion Gift to the ::(n fact they are completely overlooked in manent basis in order to make the Private Banks Last Year, and How tJle present administration of the Davis­ Davis-Bacon Act once more fully opera­ Such Gifts Can Be Stopped Bacon Act; the Department of Labor is tive in accordance with its original pur­ telling the various contracting agencies pose. that the prevailing rate, in one area after To remedy these many defects, the bill EXTENSION OF REMARKS another, is as much as 12 percent less I am introducing has four major objec­ OF than the actual rate. Thus the Depart­ tives. They are: HON. WRIGHT PATMAN ment of Labor is extending an open in­ First. To broaden the coverage of the OF TEXAS vitation to outside contractors to bring present act to include: (a) All nonfarm low wages and cheap labor into higher construction in excess of $25,000 in val­ IN THE HOUSE OF RzyRESENT.ATIVES wage communities because these lower ue, at least one-third of which is fi­ Thursday, February 19, 1959 labor costs give them a successful bid­ nanced by Federal funds, loans, pay­ Mr. PATMAN. Mr. Speaker, last year ding advantage on Government work. ments, grants, or contributions; and (b) the Government of the United States 1959 CONGRESSIONAL RECORD- HOUSE 2773 made a free gift of slightly more than banks could create the money auto­ throughout its use. - Most of the bank­ $10 billion worth of U.S. Government matically. ing reforms and regulations which had securities to the private commercial GOLDSMITHS OF OLD MANUFACTURED MONEY been added over the years-including banks of this country. More specifically, the Federal Reserve the Federal Deposit Insurance Syst.em­ This will be a surprising statement to gave its member banks additional "re­ have been designed as safeguards some people. If the Government gave against the trouble this system can serves," and because of the fractional­ cause. away $10 billion under most of the meth­ reserve system on which the commercial ods of gift-giving, the country would hear banks operate, this meant that the banks PRIVATE BANKS MANUFACTURE MONEY a great deal about it, and we would could create several dollars of new money Today the private commercial banks normally debate such a matter in this for each dollar of new reserves. create money in the same way as did the Chamber at considerable length. goldsmiths of old. The banks receive The statement is, however, in no sense Now, for those who may not know about the fractional-reserve system, and their reserves from the Federal Reserve a surprise to people versed in the banking System-not in the form of gold, but system. This sort of thing has hap­ how money is created under it, let me point out the elementary principles. merely as bookkeeping credits. The ac­ pened many times before. Indeed, the tual gold is owned by the U.S. Govern­ amount of the gift of last year is well The best way to understand the frac­ tional-reserve system is to begin with the ment, buried at Fort Knox, and the known in banking circles. Treasury simply issues certificates . to Now, of course, using the term "gift" operations of the goldsmiths who were the forerunners of our modern banking the Federal Reserve System to back up may seem to exaggerate the matter, be­ whatever money the Federal Reserve cause the methods by which $10.4 billion system. There was a time-before there were System creates. of interest-bearing securities were trans­ The Federal Reserve System operates ferred from the Treasury of the United any banks-when people who had gold usually took the gold into the goldsmith on a fractional-reserve system, too. States into the vaults of the private Under present law it can create money banks are slightly complex. If this were and left it with him for safekeeping. When a man left his gold with a gold­ up to $4 for. each dollar's worth of gold, not so, then, of course·, the general public or gold certificate. Under present Fed­ would already know about the matter; smith, the goldsmith would, of course give the man a receipt, or claim checl{: eral Reserve regulations, the private and we could expect that a great num­ commercial banks can, in turn, create ber of people would be considerably ex­ for his gold. This receipt was supposed to mean that the depositor could come $7 on each dollar of reserves received ercised about it. But the term ''gift" is from the Federal Reserve System. So, literally correct. The Government of the back and get his gold at any time. The receipts were transferable, so anyone the potential money-creating ability of United States gave away these bonds and the whole banking system is $32 for other interest-bearing securities just as having possession of a goldsmith's re­ ceipt was supposed to be able to present it each dollar's worth of gold-$4 created surely as if a convoy of trucks had hauled by the Federal Reserve plus $28 created them from the Bureau of Engraving and to the goldsmith and obtain the gold. What happened, of course, was that on these $4 by the private commercial Printing directly to the vaults of the banks. private banks. people who had these receipts found they could use them as money. In other ' In considering how the commercial The more exact amount of this gift is banks create money today, we must $10,410 million. It was made in several words, people passed them from hand to hand in commercial transactions, with­ keep in mind that most of the money in lots between November 27, 1957, and No­ ·use is in the form of bank · deposits. vember 26, 1958. The source of my figure out going back to the goldsmith to obtain the actual gold. · This is what is sometimes called check­ is the Federal Reserve Bulletin for Jan­ ·book money. uary 1959, page 33. This is an official Furthermore, the goldsmith soon publication of the Board of Governors learned that the people holding these Each time a commercial bank makes of the Federal Reserve System and it receipts rarely came in and asked for the a loan or invests in a security, it creates is available to all Members as w~ll as to gold, so he discovered that he could issue money. It creates new deposits to the the general public. By reference to page more receipts than he had gold. In account of the person who receives the short, the goldsmith began making loan or sells the security. But the bank 33, one may see that at the end of No­ does not, of course, make any offsetting vember 1957, all commercial banks in the ''loans," and issuing receipts to people who had no gold on deposit. These re­ reduction in my account, your account, United States held $56,910 million in 'Or the accounts of any other depositor. ~eipts went into circulation as money, U.S. Government obligations. A year The bank that makes the loan may not, later, at the end of November 1958, these JUSt as though the goldsmith had enough gold to back them up. of course, be the same one to enjoy the banks held $67,320 million of Govern­ increased deposits. The new deposits ment securities. Thus the commercial Each goldsmith was operating on the may go to some other bank or banks. banks increased their holdings of these probability that all the people holding his ·But deposits in the banking system as a obligations by $10,410 million within the receipts would not come in at one time ·whole are increased. Furthermore, the 12-month period. and demand the gold. person to whom the loan is made may Before coming to the mechanics of As experience proved, the goldsmith immediately pay out the funds, but how the Government put this $10.4 bil­ could usually issue receipts in amounts someone else's deposit account is in­ lion of Government securities into the several times the amount of the gold in ·creased, so the result is the same. New hands of the banks, -let me point out how ·his vault. The gold in his vault served money has been created. . The making the gift was distributed among the banks. ·the purpose of what today is called the ·of a loan or the purchase of a security First, all classes of commercial banks bank's reserves. At least a little gold by a commercial bank creates new shared to some extent in this gift. These ·had to be in reserve to cover the possi­ .money by that amount. include the New York and Chicago banks, bility that some of the people holding the Reserve city banks, and the country his receipts would come in and demand FEDERAL RESERVE GIVES PRIVATE BANKS RAW MA• banks. But 72 percent of these securities the gold. TERIALS FOR MANUFACTURING M-ONEY went to only 2 percent of all the banks A pamphlet recently circulated by one Last year, the percentage of deposits in the country. And consider this-$2.3 of the big business associations claims which the Federal Reserve System re­ billion went to only 18 New York City that experience proved these goldsmiths ·quired its member banks to keep in re­ banks. could safely issue $10 in receipts serve, on the average, allowed the bank­ Now, how did the commercial banks of for every dollar of gold. This is pre­ ing system to create money up to $7 ap.. the country acquire this $10.4 billion of sumptive history, however, and is part proximately, for each dollar of bank re­ Government securities? of the bankers' current campaign to sell serves. In a nutshell, they created the money the idea that their own required re- As a part of its antirecession program with which to buy them. They created ·Serves can_safely be reduced to 10 per­ of last year, the Federal Reserve System new money in this amount on the credit cent. Actually, no one can say just how gave its member banks additional re­ of the United States, which cost them not ·long the odds were that the old gold­ serves on three different occasions. In one penny. The Federal Reserve System smiths could safely play on. But we do February, the Federal Reserve Board re­ gave the banks the wherewithal to cre­ know that this system of fractional re­ duced required reserves of all member ate the money, and .this meant that the serves has given a great deal of trouble banks by one-half of 1 percent. This CV--175 2774 CONGRESSIONAL RECORD- HOUSE February 19 gave these ·banks $491 million of added sumes a risk in making the loan, and this these securities; For example, in 1958 the reserves, on which they could create is a matter which should be left to pri­ Federal Reserve gave member banks addi­ to In vate banking decisions. we would not tional reserves sufficient to allow them to new money at the rate of 7 1. create up to about $14 billion of new money. other words, on the basis of these added like the Federal Reserve System, a Gov­ About $12 billion was actually created; and reserves the banks could create up to ernment-owned agency, to have the job $10 billion of this was used by the banks to $3.4 billion of new money-by making of deciding for which companies or in­ increase their holdings of interest-bearing loans or purchasing securities in this dividuals money will be created, and for Government securities. amount. which would-be borrowers money will In every practical respect we can say that Then, at the end of March and the not be created. It is better to delegate the Federal Government made a gift of $10 beginning of April last year, the Board the Government's money-creating power billion in Government securities to private banks last year; and this gift, which cost the reduced required reserves another one­ to the private banks and let them use it private banks nothing, will cost the tax­ half of 1 percent. This gave the mem­ for these purposes-within limits, of payers about $300 m -illion a year to meet ber banks more reserves amounting, in course, and with proper safeguards. interest charges. this instance, to $495 million. This one­ Personally, however, I have never been The Constitution reserves to Congress the half of 1 percent reduction was also able to see any reason for allowing the power of creating and regulating money. given to all classes of member banks. private banks to create money on the There is no doubt about this. The power Finally, later in April, the Board made credit of the United States to purchase upheld in the legal tender cases decided by another reduction for the banks in New the Supreme· Court in 1871 and ~874, and interest-bearing obligations of the upheld again in the New Deal gold clause York and Chicago and in the Reserve United States. In the purchase of U.S. cases of 1935. cities-which accounts for only 5 percent Government obligations there is no func­ Congress has, however, delegated this of all the member banks. This time the tion to be performed in separating the power. It has delegated it primarily to the Board passed over the country banks. good · credit risk from the poor credit Federal Reserve System. And it has given Reserves of banks in New York and Chi­ risk. And the Government's credit the Federal Reserve System authority to cago were reduced by another 1 percent, which backs up its interest-bearing obli­ delegate the money creating power, within and reserves of the Reserve city banks, gations is no better or worse than its wide limits, to the private banking system. The power to create money is inherent in the by another one-half of 1 percent, giving credit on which the money is created. fractional-reserve system of the commercial these banks additional reserves of $462 Finally, in creating money to buy Gov­ banks and this system is authorized by law. million, which meant they could expand ernment obligations, the private banks More specifically, however, the Federal Re­ the money supply up to another $3.2 perform no service for the Government serve has authority to change, within limits, billion. which the Government cannot perform the fraction of reserves on which the banks All of these reserves handed out to the for itself-and without incurring inter­ may operate. At present, money can be, and member banks last year came to a total est charges. is, created both by the Federal Reserve and the private banks. The Federal Reserve may of $1.5 billion, on which the commercial Consequently, I am proposing that give private banks additional reserves, which banking system could create new money Congress take action to eliminate the automatically allows these banks to create in an amount up to $14.5 billion. abuses in this system which resulted in money-at the present time up to a maxi­ In addition to these reserves which the giving away $10.4 billion last year. mum of $7 per dollar of additional reserves. Federal Reserve System gave the banks Recently I had a note from the re­ Or the Federal Reserve can itself create through reductions in required reserves search director of a large organization the money in any of several ways. Its princi­ last year, the System also gave these who asked for details about my proposal pal mechanism is the Open Market Commit­ banks other great quantities of reserves for eliminating the abuses in the pri­ tee, which operates a trading center at the New York . Bank. The Open· Market Com­ through the System's Open Market Com­ vate banks' use of the Government's mittee may buy Government securities, in mittee. But for our present purposes it power of creating money. which case the Federal Reserve System gives will not be necessary to discuss these. I have written the gentleman on this the private banks added reserves in exchange It is enough to point out that the $14.5 subject, and I hope the Members will be for them. billion of money-creating power given interested in my proposal. Certainly this I have dwelt on the mechanics for this the banks through reductions in their abuse is no small matter. The $10.4 bil­ reason. My suggestion, that when money is required reserves were substantially all lion gift to the private banks last year created to buy Government bonds it ought used by the banks to acquire and hold an was, for example, about the same as the to be created by the Federal Reserve, is fre­ quently met with the statement that it added $10.4 billion of U.S. Government total Federal deficit expected in the pres­ would be much more "inflationary" for the obligations. ent fiscal year. As another example, it Federal Reserve to buy a given quantity of PRIVATE BANKS SHOULD NOT BE GIVEN USE OF is a great deal more than the cost to the bonds than for the private banks to do it. THE GOVERNMENT'S CREDIT TO LEND TO THE Government of all the farm price-sup­ Such statements are only intended to con.. GOVERNMENT port programs in the whole quarter-cen­ fuse the issue. The statement would be en.. The official reason stated for giving tury such programs have been in effect. tirely true if the Federal Reserve simply Consequently, I invite the Members' bought the bonds and took no action to off­ out these reserves is that they were in­ set the added reserves given the private tended to help the banks meet business attention to my letter as follows. I have banks, but it is not sensible to think that needs for credit. Actually, there was no not asked permission to use the gentle­ it would not take such action. It could, for expansion of business loans during the man's name, so I omit that. example, use its everyday mechanism of year, but rather a reduction of $1.5 bil­ FEBRUARY 17, 1959. raising reserve requirements to offset the lion. The money which the banks DEAR SIR: Thank you for your note of effects, or even more than offset the effects. created was, as I have indicated, sub­ February 11 concerning my proposal for My point is that I can see no reason why raising interest-free funds. the private banks should be allowed to create stantially all used to acquire interest­ · Let me pU:t the matter in its proper con-' ' money on the credit of the United States to bearing obligations of the United States. text. First of all, let me emphasize that buy interest-bearing obligations of the If these obligations draw interest at an Government securities should, to the maxi­ United States. average rate of 3 percent, it will mean mum extent possible, be paid for out of The Federal Reserve System is owned by that this $10.4 billion gift to the banks savings. This means that every effort should the Government and its income, including will cost the taxpayers about $350 mil­ be made to sell the securities to individuals the interest received on Government securi­ lion each year in interest payments, plus, and groups who have the money to pay for ties, flows back into the Treasury. At least of course $10.4 billion if and when the them, such as individuals, insurance com­ its net income, after expenses, flows back to panies, savings banks, pension funds, and so the Treasury. Its principal expenses are debt is retired. on. In other words, the securities should about $130 million a year for free services­ Now, I doubt if many serious students be sold to anybody and everybody except the such as cashing checks-to the private banks. of our banking system object to the prac­ commercial banks. Ideally all securities The simplest and the most practical way tice of allowing the private banks to should be paid for out of savings, except to of accomplishing what I propose is to pass create money to be used to meet the the extent that increases in the money sup­ an outright prohibition against commercial credit needs of business. True, the Fed­ ply are desirable to meet the needs of the banks increasing their holdings of Govern­ eral Reserve has the power to create the economic system. ment securities beyond what they have held The practice in recent years has been, in a base period--say the date on which the money, and to some extent uses it. But however, to sell a large percentage of the new prohibition is passed. In order to take care when money is created through loans to security issues to the commercial banks, of changes in the asset positions of individ­ business or individuals, some risk is in­ which means that the private banking sys­ ual banks, the prohibition would need to volved. The creator of the money as- tem creates the money with which to buy contain a proviso for individual adjust- 1959 CONGRESSIONAL RECORD- HOUSE 2775 ments. In other words, an individual bank INTERNATIONAL MEDICAL YEAR The National Cancer Institute, which is could be allowed to acquire more Govern­ Along with my colleagues, Senator LISTER part of our U.S. Public Health Service, makes ment securities as its capital account is in­ HILL, of Alabama, and Senator HUBERT grants throughout the Nation to all prom­ creased. HuMPHREY, of Minnesota, I have been pro­ ising avenues in the area of cancer research. In addition, another new authority would posing an International Medical Year and a Your own life or that of a loved one might be needed. While the Open Market Com..: pooling of medical discoveries made by all potentially be saved if you urge your Sen­ mittee can purchase and hold an unlimited nations. This has a particularly urgent ator to vote full and adequate appropria­ quantity of Government securities, it must meaning for me today. Cobalt radiation, a tions for this vital Government agency, purchase these from the open market, not vital factor in the successful treatment I which provides about 72 percent of the funds directly from the Treasury. The Federal Re­ have undergone, was developed by such for research into the causes and possible serve Board, on the other hand, has author­ illustrious scientists of Canada as Dr. David cures ot the series of diseases known as ity in law to purchase securities directly A. Keyes and Dr. H. F. Batho. I am for­ cancer. from the Treasury, but this is limited to a tunate that no unwise import quota kept maximum of $5 billion and, furthermore, this marvel of their intellects from coming this authority is intended for use only on a to the United States. temporary basis. The Federal Reserve Board A brush with cancer tends to place many Collegiate Nurse Training should then be given enlarged authority for things in true perspective. First, one be­ purchasing Government securities directly comes profoundly grateful to all those who, EXTENSIO~ OF REMARKS from the Treasury. through the long history of medical re­ OF Sincerely yours, search, have contributed to the advances WRIGHT PATMAN. thus far .made in treatment of this grim HON. EDITH GREEN disease. Secondly, old antagonisms fade OF OREGON away. I no longer can transform political disagreements into any feelings of per­ IN THE HOUSE OF REPRESENTATIVES A World Attack on Cancer sonal malice. When one is grateful to be Thursday, February 19, 1959 alive, it is difficult to dislike a fellow human being. Mrs. GREEN of Oregon. Mr. Speaker, EXTENSION OF REMARKS I am keenly aware that some of the most it is not only yesterday's headlines about OF eminent Members of the Senate have died a new weather satellite, the headlines of of cancer during recent years-among them a few months ago about artificial planets, HON. CHARLES 0. PORTER Charles L. McNary, of my own State of Ore­ the fantastic growth and increasing com­ OF OREGON gon; Robert A. Taft, of Ohio; Arthur Van­ plexity of our techniques of production denberg, of Michigan; Matthew Neely of IN THE HOUSE OF REPRESENTATIVES which give evidence of an everchang­ West Virginia; and Brian McMahon, of Con­ ing world. The arts of death, it is true, Thursday, February 19, 1959 necticut. That is why I regard it as so crucially important if I can stand in the are rapidly making science fiction novels Mr. PORTER. Mr. Speaker, under Senate and stress to my colleagues that read like historical romances. But, leave to extend my remarks in the my own life has been spared, because I thanks to the efforts of thousands and RECORD, I include the following article have had a type of cancer which has re­ thousands of unsung men and women, written for United Press International sponded to a discovery thus far made in the arts of life are advancing, too. by my friend and colleague in the Sen­ the realm of medical research. Today's nurse, though imbued with ate, Senator RICHARD NEUBERGER, Which Is it not vital that we devote every ef­ the same spirit that led Florence Night­ fort to extending these discoveries, if pos­ appeared in the February 12, 1959, edi­ sible, into other areas of cancer where suc­ ingale to the Crimea, and Clara Barton tion of the Eugene (Oreg.) Register­ cessful treatment has not yet been achieved? to the battlefields of the Civil War, must Guard: Does it make sense to invest in cancer re­ operate in an entirely different context. THANKFUL To BE ALIVE-NEUBERGER ASKS search only about 1 percent of what we In a former era, the American nurse gave WORLD ATTACK ON CANCER spend on research into armaments and baths, changed bed linen, cleaned up the (EDITOR'S NOTE.-Last fall, Senator RICH­ weapons of war? Two out of every three hospital wards and performed other such ARD L. NEUBERGER, 46-year-old Democratic American families are in peril of affliction vital but nonprofessional labors. It was Senator from Oregon, underwent surgery from cancer. not very many years ago that a nurse for removal of a cancerous tumor. Wed­ From the very beginning, I told my doc­ was not even authorized to give injec­ nesday, he was en route back to Washing­ tors to include candidly in their medical bulletins the fact that my illness has been tions. But today the heroic figure of the ton, grateful for being alive. In this dis­ woman-and man-in nurses' white patch, Senator NEUBERGER speaks frankly of diagnosed as cancer. I realize that has not his experience and, as he prepares to been done in the case of some public fig­ symbolizes not only a person who is will­ "resume a normal schedule of activity"-his ures. Yet we need to have full under­ ing to give of her time and energy to care physician's words--offers a message of hope standing of this disease if it is to be con­ for the immediate needs of the sickroom, to other cancer sufferers. He also speaks, quered. but in addition a person whose profes­ from the basis of his own trying experience, Medical scientists inform me that some sional, technical, and scientific training of what he feels this country must do to people, knowing they may have cancer, still is of a quality comparable with that of bring the possibility of cure to all cancer hesitate to seek treatment because they fear any profession. victims.) it is inevitably hopeless. Thus. if a per­ son in public life does recover from can­ Today's nurse cannot be just a high (By Senator RICHARD NEUBERGER) cer, it is an event which can give hope and school graduate, whose spirit of applied It has become almost axiomatic to pro­ courage for many millions of others. Christianity alone qualifies her for this test about our modern age. Yet if I did The American Cancer Society reports that, service. She is a skilled technician in the not live in a modern age, I would probably already, about 30 or 35 percent of cancer war against disease. In her hands any be dead now. Three miracles of modern victims are being saved. As new findings of our own lives may rest some day soon. medical science have given me a prospect are attained 1n the field of chemotherapy, for recovery from cancer which my doctors this percentage undoubtedly will be in­ To her education we should give careful regard as excellent. creased-especially if people seek immedi­ and conscientious study. These miracles are ( 1) early detection of ate medical care. Mr. Speaker, on the opening day of the tumor; (2) skillful surgery; and (3) this 86th Congress, I introduced a bill­ the twin agents of cobalt radiation and MANY COMPETENT DOCTORS H.R. 1251-designed to assist in meeting chemotherapy, with their destructive im­ While much remains to be known about the serious shortage of college-trained pact on any of the tumor which might have cancer, I think it is essential that Ameri­ nurses. Today, in a nearby legislative spread. cans have faith in the competence of their Even before cancer was diagnosed in me, doctors. Some believe that capable care can body, a similar bill is being introduced I stood on the floor of the U.S. Senate and be received only at a few nationally known by an American statesman whose lead­ advocated vastly increased Federal support medical centers. I chose to remain for treat­ ership in the fight for adequate health of medical research. Yet I used glibly the ment in my native city of Portland, Oreg., facilities for the American people is un­ reference that 40 million Americans were because I believe that knowledge and compe­ excelled-the distinguished and able destined to have cancer. I never thought I tence in this field are not confined to one senior Senator from Minnesota [Mr. might be among the 40 million. I always or two famous places. I think I have been felt that this would be somebody else. I confirmed in this decision by the fact that, HUBERT HUMPHREY]. I have asked leave suppose countless citizens feel this way­ in my travels around our State this past of the House to address myself to this otherwise we would not tolerate spending fall and winter, I have met quite a few men legislation, and to the needs which more on chewing gum than on cancer re­ and women who have recovered from cancer prompted it. search, and many times more on such under the able auspices of their own local The National Defense Education Act things as permanent waves and cigarettes. physicians. of 1958, within its own compass, was a 2776 CONGRESSIONAL RECORD- HOUSE ~ , · February 19 · major step forward in meeting the needs degrees. In spite of the excellent work­ as absolutely essential, we find that only of American higher. education. But the ing of Public Law 911, which the· Con­ 77 percent of the nurses involved hold victory gained by the passage of that gress enacted in 1956, the general pic­ bachelor's degrees. I ask unanimous act was not solely in terms of its sub­ ture has not changed. The latter act, consent that two tables, showing the per­ stantive content. It was equally sig­ designed to equip graduate professional centages of degree-holding nurses be nificant as a symbol of the recognition nurses for supervisory duties, t.hrough inserted-at this point in the RECORD, to­ by the Congress and by the American assistance in the obtaining of master's gether with explanatory material from people that higher education is a vital degrees, has been less successful than the U.S. Public Health Service. part of this Nation's strength. I do not was hoped, largely because of the serious TABLE 1.-Estimated number and percentage refer solely, or even mostly to our mili­ shortage in some areas of nurses who of active graduate nurses holding academic t ary strength, although this is not un­ have baccalaureate degrees, and who degrees, in the United States, 1952 and 1956 important. The 1958 act indicated to would thus be eligible for work on ad­ the Nation and to the world that we vanced degrees. Number. Percentage again asserted the Jeffersonian belief In the fields of teaching, administra­ Degrees held that an uneducated nation could not tion, and supervision the picture is even 1952 1956 1952 1956 long be a free nation. This belief has· more discouraging. In these three areas ------been a keystone of ~h€;l American system of nursing activity, where one might TotaL ____ : _~-- - 374,600 430,000 100. 0 100.0 since our birth as a nation. It is as · legitimately expect the percentage of No degree ___ ~ ------343,750 393,600 91.8 91.5 Bachelors degree ______27,050 30, ooo 7. 2 7.0 demoristrably true today as it has always nurses holding bachelor's degr'ees to be Masters degree 1______3;8oo 6,400 1.0 1.5 been. very large, the statistics indicate that But the National Defense Education only 22.4 percent are actually so pre­ t Includes an ·estimated 75 nurses in 1952 and 125 in Act of 1958 did not have an even effect pared. In the very field of nursing edu- . 1956 whQ hold do.ctorates. on all types of higher· education. It em- · cation, where the possession of a college Source: 1952 figures, "How many nursas have college degre.es?" by E~gen e Levine, N ursing Outlook, January phasized sCience and mathematics, at the degree migh~ legitimately be considered 1954, p. 23; 1956 figures, table 2. expense of other disciplines; and in terms of the context of the bill, this was per­ T ABLE 2.- Estimated pe1centage of active graduate nurses holding academic degrees, by haps justified. But there remains a field of nursing, in the United S tates, in 1956 shadow field, at the margins of science, as that term is used. There remains the Number of nurses Percentage of nurses healing arts, medicine and nursing. These are not considered as scientific Occupational field Holding Holding Holding Holding Holding Holding fields within the meaning of the National Total bachelors masters DO bachelors masters no Defense Education Act. Yet they are degree degree degree degree degree degree professions in which the paraphernalia ------and techniques of science are of the All fie lds------430,000 30,000 6,400 393,600 7.0 1. 5 91. 5 265,800 14,700 2, 200 248, 900 5. 5 .8 93. 7 greatest importance. And they are Hos~f~~tors--~ ======11, 400 2,600 1,300 7, 500 22. 8 11.4 65. 8 fields which we must develop for the Supervisors and a£sistants ______23, 900 3,100 600 20,200 13.0 2.5 84. 5 Head nurses and assistants ______44,000 2,800 200 41, 000 6.4 .4 93.2 same reasons that we must develop the General duty and others ______186,500 6,200 100 180,200 3. 3 .1 96.6 fields of science arid mathematics. Our P ublic health __------27, 200 6,900 1,300 19,000 25.4 4.8 69.8 national supply of college-trained doc­ Supervisors __ ------3,100 1, 400 800 900 45. 2 25. 8 29. 0 Staff nurses.. ------24,100 5,500 500 18,100 22.8 2.1 75. 1 tors and nurses-and especially the lat­ Nursing- education _:..------10,400 5,300 2, 700 2, 400 51.0 26.0 23. 0 ter-must be strengthened if we are to Industry----- ______'17, 000 800 100 16,100 4. 7 . 6 94. 7 meet the demands of the time, if we are D octors' offices, private duty, and other. 109, 600 2, 300 100 107,200 2. 1 .1 97. 8 to be adequately prepared for the pos­ Source: Figures shown in this table are estimates based on published and unpublished sources. A description of sible needs of a civil defense emergency, the methods used in makin!! these estimates and a list of source references can be obtained fr om the Division of if we are to meet the health ·needs of an Nursing Resources, Public Health Service, U.S. Department of Health, Education, and Welfare. · ' evergrowing Nation. From N ursing Outlook, vol. 6, December 1958. The bill to which I address myself Explanation of sources of data used in table 2 of article "How Many Nurses N ow Have provides for grants-in-aid for the con­ College Degrees?" published in Nursing Outlook, vol. 6, p. 689, December 1958 struction of teaching facilities for nurs­ ing education at the college level, in the amount of $20 million per year for each Occupational field Source of data of 5 fiscal years; for grants-in-aid to Hospitals, all categories of Survey of 682 hospitals in the United States, conducted by the D ivision of Nursing h elp meet the costs of collegiate nursing personnel. Resources, P ublic Health Service, in the early part of 1958. The 682 hospitals repre­ instruction in the amount of $10 mil­ sent a random sample of the 6,158 hospitals in the United States listed by the American Hospital Association. lion per year for the same period, for Public health ______Based on reports received from State health departments in the United States, as of $10 million yearly for scholarships for Jan. 1, 1957. T abulation prepared by Division of Public Health Nursing,. Public college training of nurses, both those Health Service. Nursing education ______Based on a 1957 survey of teachers in nursing education programs conducted by the just entering the profession and grad­ American Nurses Association, a 1956 survey of schools of nursing conducted by the uate nurses, and for the creation of an National League for Nursing, and on data collected in State surveys of nursing needs and resources conducted by Division of Nursing Resources durin ~?: years 1955 to 1958. advisory committee appointed by the · Industry_-- --__------­ Based on reports gathered by State health departments, Jan. 1, 1957, by occupational Surgeon General, to assist in the admin­ health program, P ublic Health Service. istration of the act. The bill contains· Dqctors' offices, private Projected from data collected in St ate surveys of nursing needs and resources conducted appropriate safeguards against the in­ duty, and other. by Division of Nursing Resources during years 1955 to 1958. trusion of Federal control into the field of curriculum, personnel; and adminis­ In an effort to meet the growing needs The members of the association believe tration of the collegiate schools. for college-trained nurses, the nursing that the public must share in the responsi­ What evidence have we of a need for profession itself, in the best traditions of bility of providing adequate financial sup­ such legislation? To fully explain the port for nursing education. American professionalism, has under­ Through its 1958- 60 platform, the associa­ desirability of an act such as I have pro­ taken rigorous self-analysis, and has es­ tion is committed to promote legislation posed, it is necessary to speak at some tablished a system of priorities, which which will provide public funds for research, length about the present stat e of nursing I ask unanimous consent be printed at scholarships, and continued improvement in education. this point. nursing education. At this time, primary needs for public support are in these two In the first place, it is a surprising and STATEMENT OF PRIORITIES- ADOPTED BY THE sobering fact that of the 430,000 profes­ areas : ANA BOARD OF DIRECTORS, FEBRUARY 1959 1. Traineeships, or scholarships for nurses sional graduate nurses in the Nation in The ANA is concerned with providing the in advanced programs preparing for teach­ 1956, only 30,000-some 7 percent-have best possible nursing service for the Ameri- ing, administration and supervision. bachelor's degrees from an accredited can people. If this is to be accomplished, 2. Expansion of coilegiate programs in college. One and five-tenths percent of there must be an adequate supply of quali­ nursing ·through assistance with costs of the total number of nurses have master's fied professional practitioners of nursing. · construction and instruction; and through 1959 CONGRESSIONAL RECORD- HOUSE 2777 scholarships for students in supplemental But, as I suggested earlier, why is it Mr. Speaker, in the days since H.R. and basic programs leading to the baccalau:. necessary to demand college training 1251 was introduced, I have received reate degree. · when the hospital-trained nurses now from nurses' associations and from The first of these has been partially corupris_e such a vast portion of the pro- nursing ed'ucators, considerable mail in fulfilled by the passage of Public Law f.ession? · support of this bilt I ask unanimous 911. The objectives stated in the· sec­ ·Let me say first that no question can consent that selections from this mail ond priority can be met, at "least in part, be posed as to the great w:ork· being done be printed at this point in the RECORD. by the subject legislation. by hospitals in training nurses, nor as FEBRUARY 14, 1959. What are the needs that have called to the quality of the work done by these The Honorable EDITH GREEN, forth this bill? Why are we especially nurses. They are not second-best, they House of Representatives, Washington, D.a. in need of college-trained nurses? In are not in some shadowy area of com­ DEAR MRs. GREEN: District 12 of the Idaho State Nurses Association wishes to inform view of the fact that we have managed petence. The professional nurse today, you that we are very much in favor of bill to get along with a nursing profession in whether hospital trained or college H.R. 1251, Collegiate Nursing Education Act. which only a tiny fraction are college trained, deserves the highest praise and Will you please send me a copy of the bill? trained, why do we now emphasize this the deepest admiration of her fellow Mrs. BARBARA JoHANSEN, R.N., type of training instead of asking for as­ citizens. They are not overpaid by any Leg~slative Committee, Route 1; Jerome, sistance, if assistance is needed, for the stretch of the imagination, and they are Idaho. · traditional hospital-based nurse train­ far from underworked. For most peo­ ing facilities? These are all questions ple, the constant strain of the nursing NEW YORK STATE NURSES ASSOCIATION, Albany, N.Y., February 17, 1959. which may legitimately be asked, and profession, the intimacy with death and Hon. EDITH S. GREEN, they are questions which I hope the disease, the responsibilities that fall upon Old House Office Building, distinguished Committee on Interstate these dedicated men and women, put Washington, D.a. and Foreign Commerce will put to the nurses in the same category as the mem­ DEAR MRS. GREEN: I am writing to you on nursing profession when this bill is bers of other professions whose choice behalf of the.New York State Nurses Associa­ brought up for hearings. of a lifework can only be attributed to tion in support of H.R. 1251, the Collegiate Nursing Education Act of 1959. But let me, from the information I the overriding power of conscience and It is a well recognized fact in this State have at hand, briefly discuss the needs the will to self-sacrifice on behalf of hu­ that if we are to meet the nursing shortage for more nurses and the reasons why manity that characterizes, for example, we must have better qualified teaching and training at the college level is urged by teacher. It is not from any dissatisfac­ administrative personnel as well as more stu­ the leaders of the nursing profession. tion with the caliber of the work being dents entering the nursing profession. If The most reliable figures available in­ done by the average nurse today that the we can increase the number of students dicate that the number of professional nursing profession itself has urged the entering baccalaureate degree programs we will have taken a step toward remedying both nurses in the Nation today is at an all­ expansion of college training programs. the shortage in bedside nursing and teaching time high. In January 1956, there were First, the nurse today is being called personnel as graduates of these programs may about 430,000 professional nurses em­ upon increasingly to perform work of a either remain in bedside nursing or in less ployed in the United States. This figure scientific and technical nature which is a time than it takes graduates of diploma shows a ratio of 259 nurses to every far different thing from the job given to school programs to prepare themselves for 100,000 population. In a past era when the nurse of a generation ago. Let me teaching and administrative posts. . few Americans could afford hospitaliza­ quote from an article appearing in the The board of regents of the University of the State of New York being· cognizant of tion, and even fewer availed themselves New York Times of August 25, 1957, writ­ the nursing shortage appointed a nurse re­ of it, this might have been an adequate ten by Wayne Phillips, a journalist of sources study group for the purpose of sur­ ratio. But today the situation is vastly several years' experience on hospital veying nursing personnel resources and needs different. In 1957, 13 out of every 100 staffs: and facilities in professional nursing educa­ Americans went to a hospital. The Besides the basic subjects she is expected tion. These studies have now been com­ growth of hospital insurance, the in­ to have studied in high school-biology, pleted, the first one published in 1956, the creasing public concern with health, the chemistry, mathematics-the professional second only just released and now awaiting growth of other demands on the nursing nurse today must have a good foundation publication. Copies of both of these studies in anatomy, physiology, microbiology, and are enclosed for your information. profession such as industrial nursing, Acting on the recommendations of the public health nursing, school nursing, nutrition. Through training in the specific needs of different types of patients, she is nurse resources study group, the regents and similar nursing activities outside of introduced to the principles not only of sponsored the following bills in the State the hosptials, the increase in the number simple medicine and surgery, but also of legislature: of hospitals themselves, the prolonged urology, neurology, geriatrics, pediatrics, ob­ Senate Int. 1846, Brydges; Assembly Int. demand for nurses by the Armed stetrics, orthopedics, psychiatry, sociology, 2563, D. B. Lawrence: It would amend sec­ Forces-all these factors have combined gynecology, ophthalmology, and otolaryngol­ tions 601 and 611 of the education law, to ogy. And she must learn the techniques establish 150 additional regents scholarships to bring the supply of trained profes­ for basic professional education in nursing, sional nurses below the demand. The of her profession as practiced in public to be awarded on statewide basis to pupils need for additional nurses is well docu­ health and clinical · and industrial nursing having highest standing on State list ar­ mented and undeniable. At the insist­ as well as in hospitals. ranged in order of merit regardless of resi­ ence of the profession itself, the stand­ The registered nurse today must pre­ dence. The measure, which was referred to ards for nurse training, both in and out pare medications, assist at surgery, and the senate finance and assembly ways and of the colleges, have been kept at a high means committees carries an appropriation carry out professional duties which not of $46,200. level. This fact, of deep comfort to mem­ very many years ago were restricted to Senate Int. 2429, Brydges; Assembly Int. bers of the public, whose very lives may the medical profession itself. Here is 3091, Brady: Adds new section 626, repeals some day rest in the hands of a trained the basic reason for the demands of section 613, education law, to change and nurse, has kept the supply of nurses from America's nurses that the newcomers to extend provisions relating to scholarships growing as it otherwise might. the profession be encouraged and en­ for advance professional educational nurs­ With the growing gap between the abled to pursue their education to the ing to provide for 60 regents fellowships for teachers and administrators of nursing, with public demand for nursing services and collegiate level. awards to be based upon competitive exam­ the limited supply of professional nurses, Today's nurse is doing a magnificent inations and entitle holder to $2,500 if in­ our hospitals have had to resort to varied job for inadequate salaries, on the basis come is $1,000 or less, and if income exceeds techniques to fulfill their mission. The of preparation which is not always able such amount, award shall be diminished by priceless skills of the professional nurse to keep up with the increasing complex­ $1 for each $4 over $1,000, with no grant to have had to be rationed, as it were, and ities of the nurse's job. She is being be less than $500; provides for payments, the nonprofessional aspects of what were given more and more responsibility of a fixes conditions of awards and appropriates once the duties of the nurses have had supervisory and educational capacity. $132,000. Assembly ways and means com­ mittee. to be handed over to nurses' aides, to The demands for a broader based, more Comment: Under the present law, New practical nu~ses, and to hospital order­ professional training program are ur­ York State annually grants 30 State scholar• lies. But even with these techniques of gent. The willingness of the persons ships for advanced nursing education. stretching available skills, the need fo~ engaged in the profession is manifest. Each such scholarship is for $750 for 1 year professional nurses remains unfilled. The time for action, Mr. Speaker, is now. of study. 2778 CONGRESSIONAL RECORD- HOUSE February 19 · While both of these measures, if passed Alabama during the past year was unable cent of our students are enrolled in schools . and signed into law, would be of tremendous to use several of the traineeships granted with bachelor's level preparation. assistance to us in this State they would under title n of Public Law 911 as we did Nursing studies in Connecticut have shown not nearly meet the real need as evidenced not have graduates holding baccalaureate that present faculty members of several of in the reports of the nurse resources study - degrees eligible for adniission to the masters our nursing schools are inadequately pre­ group, so you- see that even though on a program. pared for teaching. And not only is there State level we are making every attempt to Assuring you of the full cooperation of a .shortage of teachers, ·but there is a short­ secure financial assistance we also need the the nurses of Alabama, I am, age of qualified supervisory personnel and kind of help proposed in your bill. Sincerely, of professional registered nurses in Con­ We are, therefore, urging you to do all in Mrs. WALTER BRAGG SMITH, R.N. necticut also. The public health nurses in your power to secure passage of H.R. 1251 our State ranked 39th nationally in a 1957 not only because it will help to prepare more KANSAS STATE NURSES' ASSOCIATION, survey made by the USPHS in the number nurses but because it will be reflected in the Topeka, Kans., February 16, 1959. of nurses in public health positions who have kind of care the public deserves. Hon. EDITH S. GREEN, · had at least 1 year of approved preparation May we also take this opportunity to Old House Office Building, il). public health nursing. thank you for your interest in our profes- ­ Washington, D.C. We are grateful for the Federal trainee­ sion. ~aving had the pleasure of hearing DEAR Mas. GREEN: We are pleased to learn ships granted in the last legislative session. . you address our group in Washington last of the bill you are introducing in the House These have been helpful, but they are only year we now feel more than ever _indebted to of Representatives which will provide grants the beginning. Because our need is so great you. and scholarships for collegiate education in we in Connecticut are taking every oppor­ With all good wishes, I am, the field of nursing. We appreciate your tunity of improving our local area-we have Sincerely, concern and your practical efforts to pro­ introduced a bill in our 1959 State legisla­ K ATHERINE E. REHDER, R.N., vide opportunities for programs in nursing ture asking for scholarship aid to registered Executive Director. education in colleges and universities nurses on a baccalaureate level-but we also throughout the United States. need Federal assistance. We must have well-prepared faculty in ALABAMA STATE NURSES' ASSOCIATION, The University of Kansas, department of nursing, is the only collegiate program for order to increase our student nurse enroll­ Montgomery, Ala., February 17, 1959. nursing education in Kansas. One of the ment. If we can do this, we can thus offer Hon. EDITH S. GREEN, great needs at this school is for qualified optimum care to the increased number of Old House Office Building, faculty to teach the students seeking en­ patients our ever-increasing. lifespan and Washington 25, D.C. trance to the program. This year there were growing population presage. DEAR MRs. GREEN: A 1~ executive director more applicants for this particular school We hope sincerely that it will be possible of the Alabama State Nurses' Association, I of nursing than cot:ld be accepted with the for you to lend your support for an early Wish to express the appreciation of Alabama limited number of faculty for the school of · hearing. We, in turn, shall be happy to sub­ nurses for your interest in nursing educa­ nursing. We believe that this bill which mit more detail as the time for the hearing tion and your efforts in expanding oppor­ you are introducing will assist directly with approaches. tunities for this education in colleges and ­ this critical need in our State. Sincerely yours, universities tproughout the United States in Sincerely yours, ELEANOR LUNDBLAD, R .N., the introduction of H.R. 1251 in the House HULDA 0. WEGENER, R.N., Executive Secretary. of Representatives to authorize a 5-year pro­ Executive Secretary. gram of grants and scholarships for col­ COLORADO NURSES' ASSOCIATION, legiate education in the field of nursing. Denver, Colo., February 16, 1959. Members of the Alabama State Nurses' As­ THE CONNECTICUT Representative EDITH S. GREEN, sociation are cognizant of the vital need in STATE NURSES' ASSOCIATION, House of Representatives, this State for the expansion of collegiate Hartford Conn., February 13, 1959. Washington, D.C. educational facilities and for scholarship Representative EDITH S. GREEN, DEAR MRS. GREEN: The Colorado Nurses' assistance. House of Representatives, Association is vitally interested in your bill, There is a critical need in Alabama for Washington, D.C. H .R. 1251, and is most grateful to you for qualified teachers, supervisors and consult­ DEAR Mas. GREEN: We are a constituent of your interest in the nursing p:rofession. ants in nursing if the people of the State the American Nurses' Association and Nursing education is greatly in need of the are to receive optimum nursing care. Be­ speak for the graduate nurse population in help that interested and willing persons such cause of the high cost of education and Connecticut. In this State there are 15,000 as you can give, and we're deeply apprecia­ the relatively low salaries in the nursing active practitioners in professional nursing. tive. profession _few Alabama nurses can afford Because of the demands of our numerous Since the introduction of your bill, we to leave their jobs for an extended period urban centers, nursing in Connecticut pre­ have discussed it with the directors of the of time, obtaining their advanced prepara­ sents a complex picture. baccalaureate programs in nursing in this tion on a sporadic, piecemeal basis-night We have just learned through the Ameri­ State, and all have expressed the· same prob­ classes combined with full or part time em­ can Nurses• Association that you have intro­ lems. ployment. According to a recent survey 25 duced H.R. 1251, to authorize a 5-year pro­ These boil down· to the extreme need for percent of the active nurses in Alabama have gram of grants and scholarships for col­ well-qualified teachers and supervisors, and earned some credits toward a degree. Every legiate education in the field of nursing, and for funds to obtain facilities and instructors available scholarship on the baccalaureate for other purposes. to provide these people. level is being used and requests for addi­ We should like to express sincere appreci­ The directors in Colorado feel that persons tional scholarship assistance are frequent. ation to you on behalf of the nurses 'of with adequate preparation in curriculum­ Preparation beyond the basic level is gen­ Connecticut for this fine evidence of your building, in supervision, in present-day con­ erally considered necessary for nursing edu­ public interest. Favorable action on this cepts of how to teach, are sadly lacking, and cation, public health nursing, occupational bill will benefit not .only nurses but through that the present Federal traineeships help health nursing, anesthesia and certain levels them, all citizens in the United States. To only the students, not the schools of nursing, in institutional nursing. Alabama nurses, increase our schools by at least 40 percent since the tuition does not begin to meet the however, have been handicapped in securing in the next decade and to meet increased cost of obtaining such adequately prepared nursing education to fit them adequately for demands for nursing service, we too, concur personnel. positions in these fields as indicated by with you that favorable consideration be Those with whom we have discussed the the results of a 1958 study of nursing needs given to this bill. situation feel very strongly that there should in the State. In the field of nursing educa­ We in Connecticut feel very strongly as be a pool of baccalaureate degree people, tion 5 percent are shown to have no prepara­ to the need for such a law. At present we from which can be prepared in the master's tion beyond the basic level while 29 percent have only two collegiate schools of nursing program the teachers, administrators, and have some hours toward a degree. Approx­ in our State, the University of Connecticut supervisors so badly needed. They believe imately 25 percent of the public health under the guidance of Dean Carolyn L. Wid­ that such a program might encourage a sur­ nurses, 64 percent of the institutional mer (who is also the president of the Con­ vey of ~he present masters degree curricu­ nurses, 67 percent of occupational health necticut Nurses' Association) and the Uni­ lum which presently seems lacking in anum­ nurses and 20 percent of the anesthetists versity of Bridgeport under the leadership ber of areas, especially those of outright have no additional education beyond the of Dean Martha P. Jayne. teaching methods and certain clinical areas, R.N. Two additional collegiate schools in Con­ as well as administrative techniques. There are two collegiate nursing programs necticut have ciosed because. of lack of We have in Colorado three schools of nurs­ in the State, one at the University. of Ala­ funds, one connected with a liberal arts ing offering baccalaureate programs. Fol­ bama headed by Dr. Florence Hixson as dean, college (St. Joseph's) and the second a post­ lowing is a list of these schools with the the other at Tuskegee Institute, where Mrs. baccalaureate program at Yale. We in Con·­ names of the directors of the programs. We. Lillian Harvey is dean. Both of these schools nec'ticut have felt the loss of these schools believe that you will hear from these people, have limited facilities at present, a problem-, most keenly. Although we know we .need too, about their needs._. which will naturally be emphasized as the 33 percent · of our people prepared on a Mrs. He.nrletta"' Loughran, Dean, School of student body increases. - bachelor ~s level in Connecticut, only 10 per_-:_ .Nursing, Un iversity of Colorado, Boulder, 1959 I j t" CONGRESSIONAL .RECORD- HOUSE 2779 - Colo.; Miss Louise Golden, Dil'ector, School Idaho, Maine, Massachusetts, North editorial columns, the newspaper of Nursing, University of Denver, Denver, Carolina, South Carolina, South Dakota, stressed: Colo.; Miss Margaret Metzger, Director, Di­ Tennessee, Virginia, and Wyoming. vision of Nursing, Loretto Heights College, Such a program also depends upon the Loretto, Colo. It is not always called Columbus Day. interest of the average resident-your neigh­ A check with the director 'Of public health In Alabama October 12 is designated as bor and mine-who helps the police, the nursing in Colorado brought to light the fact Fraternal Day. In Indiana, North Da­ schools and the churches to do the job. that only about 50 percent of the public kota. and Ohio it is called Discovery Day, Crime is not absent from suburban com­ health supervisors have degrees, and only and in Wisconsin it is known as Landing munities such as ours-but we feel it is being about 45 percent of the staff nurses in local · effectively combated by such a program as Day. this one. health units are graduates of degree pro­ Arkansas, Iowa, and Oregon call it grams although 80 percent of these nurses Memorial Day. Highlights of the week included spe­ have public health preparation. The great cial church services; talks by Juvenile need in Colorado is for trained public health It seems to me- that with so many of nurses for the rural areas. About 4 percent the States celebrating October 12 each Court Judge Albert A. Waldman, De­ of the Colorado population has no general­ year as a legal or public holiday, the tective Robert Lee and Patrolman Fred ized public health nursing service whatever. time has come to make it known as a Standen, and Cuyahoga County Prose­ We were told that about 12-20 qualified pub­ national holiday for all Americans. cutor John T. Corrigan; a special proc­ lic health nurses could be used throughout Certainly there is no event deserving lamation by Mayor James A. Dunson; the State, particularly in the rural areas. more of nationwide acknowledgment and open house at the Fairview Police De­ Again, we express our very great appreci­ celebration than the discovery of Amer­ partment under the charge of Chief Al­ ation for the work you are doing on behalf bert Burkhart. of the nursing profession, and assure you of ica by Christopher Columbus. our cooperation and help wherever possible. There is no person in history, to whom Cooperating with the Exchange Club Very sincerely, the American citizenry is more indebted, in sponsoring Crime Prevention Week in MARGARET LEWIS, than Christopher Columbus; no person Fairview Park were the city administra­ Chairman, Committee on Legislation. of greater fortitude and determination; tion, the police department, the Boosters no person who better exemplifies the Club, the recreation department, the TENNESSEE NURSES' ASSOCIATION, INC., American impulse to discover new hori­ amateur coaches association, the Fair­ Nashville, Tenn., February 16, 1959. zons, to press forward, to prove for our­ view Athletic Club, and the board of edu­ Hon. EDITH S. GREEN, cation. Old House Office Building, selves the falseness of outmoded Washington, D.C. theories; and no person has made greater Mr. Weardahl's committee was com­ DEAR MRS. GREEN: Those of US present at self-sacrifice or taken greater risks in posed of the Reverend Fred E. Blue, Jr., the ANA conference on legislation in Wash­ order to serve the future of humanity. and Bill Gillam, of the Exchange Club, ington last year still recall your stimulating It is only fitting that Columbus Day · and Mayor Dunson, Chief Burkhart, Dr. keynote address with enthusiasm. It is with be declared by Congress as a legal na­ Frank Barr, of the Fairview Park schools, much satisfaction that we have learned of tional holiday. and Recreation Director Nelson Russ. your introduction of the Collegiate Nursing Education Act of 1959 in this session of Congress. Since a resurvey of nursing needs and re­ sources in this State in 1955 revealed our Crime Prevention Week Observed President Frondizi's Visit critical shortage of adequately prepared nurs- · ing personnel, we have been working dili­ EXTENSION OF REMARKS EXTENSION OF REMARKS gently to bring about solutions to some of OF OF our problems. At the moment we have two bills in the State legislature and a third to HON. WILLIAM E. MINSHALL HON. SEYMOUR HALPERN be introduced. Because of this activity, we OF OHIO have certain reports containing data about OF NEW YORK nursing needs in Tennessee that will interest IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES you. Also, this information will indicate to Thursday, February 19, 1959 Thursday, February 19, 1959 you that the enactment of your bill, H.R. 1251, would help to meet the health needs Mr. MINSHALL. Mr. Speaker, it is a Mr. HALPERN. Mr. Speaker, we have of this particular State. sad fact that crime has become big busi­ witnessed in the first month of 1959 a We deeply appreciate your continued in­ ness in the United States. Major crimes friendly and good will conquest of the terest in nursing and your willingness to last year neared the 3 million mark, an United States by the scholar-statesman work for expanding opportunities in nursing appalling increase of 50 percent since education in colleges and t:niversities. If we President of Argentina, Dr. Arturo can be of any assistance to you, please let 1952. Frondizi. Next month the Chief Execu­ us know. Recently, J. Edgar Hoover said: tives of Eire and El Salvador visit Wash­ Sincerely yours, One of the greatest obstacles which law ington and other great cities of our MARY ELIZABETH DUNN,' enforcement faces today is the apathy and Nation. These visits are far more im­ Registered Nurse. disinterest of a large segment of the popu­ portant than mere junkets; they present lation. Far too many of our citizens seem to America the image of our allies and to look upon lawlessness as a matter of con­ cern only to the courts, the police, and others they present to our allies a proper image in related professional fi~lds. of the United States. Columbus Day Should Be a National There were many special aspects of the Holiday Last week, the Exchange Club of Fair­ visit of President Frondizi; first, he came view Park, Ohio, which lies in the 23d in the wake of the publicized tour of District, took a giant step in dispelling Soviet Russia's Mikoyan, who tried to sell EXTENSION OF REMARKS their community's apathy and disinter­ us on comradeship with the Commu­ OF est in crime prevention. nists. As the head of International Mr. Arlin Weardahl was chairman of Packers in Chicago, A. Thomas Taylor, HON. WILLIAM C. CRAMER the Exchange Club's observance of Crime said in introducing President Frondizi: OF FLORIDA Prevention Week, February 8-14, in Fair­ We prefer the spirit of partnership offer_ed IN THE HOUSE OF REPRESENTATIVES view Park. Mr. Weardahl and his com­ by Argentina to the spirit of comradeship mittee performed a yeoman service in offered by Russia. Thursday, February 19, 1959 rallying local churches, parent-teacher Mr. CRAMER. Mr. Speaker, on Feb­ organizations, youth clubs, service During his 10 conference-filled days in ruary 5 I introduced a bill, H.R. 4188, groups, and law-enforcement agencies in 10 cities, President Frondizi dispelled any to make October 12, Columbus Day, a an impressive, week-long series of crime lingering doubts in the minds of Ameri­ legal holiday. prevention programs. can business and industrial interests Columbus Day is already a State holi­ The Fairview Herald, published by Mr. that we have anything to fear in the day in 39 out of our 49 States. Emil M. Uschelbec, gave strong support partnership he offers our investors in the In fact the only States which do not to the week's activities, featuring a four­ development of the enormous resources pay honor to .the discovery of America page spread on crime prevention in its of-his country. As De Gaulle has done are Alaska. -the District of Columbia, February 5 edition. Commenting in its in France, as Britain'::; belt-tightening 2780· CONGRESSIONAL RECORD- HOUSE February 19- did after the war, so has Frondizi's came, we saw, he conquered." This is gations are made that a committee has austerity program impressed all of us a healthy victory for international pub­ itself violated the individual and consti­ with his dedicated determination to lic relations. tutional rights of a citizen who has ap­ solve the economic problems of his coun­ peared before its committee then a try with a courageous disregard for the legitimate point of inquiry is raised normal political perils. which forms a very important part of Further, a group of 25 Argentine busi­ A Bill Which Proposes Congressional the bundle of facts leading up to there­ ness and industrial leaders have come quest by the committee for a contempt here to visit their counterparts in Procedures for Handling Contempt of citation. America, and they have candidly ex­ Congress Citations Is the citing committee an appropriate plained that most of them were opposed judge of its alleged abuse and disregard to Dr. Frondizi in his elections which of the rights of the individual witness? made him President, but his courage EXTENSION OF REMARKS I submit that it is not. Is it consistent since inauguration has so impressed OF with our basic sense of fair play to per­ them that they now find themselves in mit the accuser to try and find guilty the full support of his efforts to strengthen HON. THOMAS B. CURTIS accused of an act which may have been the economy of their country. Theirs OF MISSOURI the consequence of the accuser's act? To is eloquent testimony to the Frondizi IN THE HOUSE OF REPRESENTATIVES ask the question is to answer it. What leadership. Thursday, February 19, 1959 then is the solution? A possible solution All of this is of the utmost importance lies in a fair and impartial congressional to our country, because we know the Mr. CURTIS of Missouri. Mr. Speak­ review by an appropriate House com­ many shrewd moves of Soviet Russia to er, I have introduced today a bill which mittee. I submit that the House Judici­ infiltrate not only the culture and gov­ will amend section 194 of title II of the ary Committee in this instance would be ernment of countries in the Western United States Code to provide in sub­ an appropriate committee for review. Hemisphere, but also their economy. stance that all contempt citations which Under present House rules it is possible For a time, following the angry out­ issue out of a House committee will be for the particular committee in question bursts against us throughout Latin referred to the House Judiciary Com­ to come before the House with its re­ America at the time of Vice President mittee for its study, recommendations quest for the contempt citation of an NrxoN's trip to South America, we were and report to the House. Contempt pro­ allegedly recalcitrant witness to present shocked and shamed by the obvious ceedings are serious and should not be the matter under a rule limiting debate weaknesses in our relations with our lightly entertained. If the present House where only one point of view is presented onetime good neighbors. President procedures which treat them casually and to secure House action on such a Frondizi has reassured us that at least without adequate study are not changed serious matter without a full inquiry in the southernmost anchorage of the the House will continue to find it difficult into all of the facts leading up to the hemisphere, we have- strong and good to have contempt citations enforced by committee's request for such citation. friends who are eager to be partners the courts in judicial proceedings. The The allegation has been made that a par­ with us. result will be that the investigating ticular House committee has violated Certainly, in this connection, the work powers of the House will continue to be House rules of procedure and disre­ of the State Department's Division of badly weakened. It is the basic preroga­ garded the individual rights of the par­ Protocol, under Wiley Buchanan and tive of the Congress to investigate and ticular witness. Then it is appropriate his Deputy Chief, Clem Conger, is to be legislate in legitimate areas of inquiry. and necessary for the House of Repre­ highly commended. And, also, in pass­ This is not an unlimited right. It is sub­ sentatives to make inquiry into these ing, I would like to note another role ject to reasonable and necessary re­ charges to determine their validity or in this fine presentation of a clear image straints which are contained in the same invalidity as the case may be. The House of Argentina to the United States. I instrument which created this legisla­ must determine for itself whether one of refer to the splendid public relations in tive prerogative, the Constitution. In its its committees has exceeded the bounds the handling of the informational task search for information it is necessary for when a report and resolution for a con­ of the Frondizi trip. I understand this the Congress to bring before its com­ tempt citation is presented to it by one was handled through Tex McCrary's mittee forums hundreds of citizens to of its committees. It should consider public relations firm. He and his as­ testify and to relate their experiences among other things, first, what are the sociate, Jerry Finkelstein, are to be com­ pertinent to the legislative matter in limits of the constitutional authorities mended for performing a valuable serv­ question. If we in the Congress are to of the Congress to investigate; second, ice to this country when they make perform the duties prescribed for us by what is the extent of the jurisdiction that available to the U.S. press, quickly and the Constitution, it is essential that we the House granted to the committee in­ concisely, all the necessary background have the help and cooperation of all our volved; third, has the committee fol­ information on the Government they citizens. We must have respect from the lowed the rules of procedure established represent. people for our congressional investigative by the Congress in conducting the in­ We all know our failing as a nation committees for from a healthy respect vestigation and which gave rise to the to think of other nations in terms of in­ comes the necessary cooperation. To alleged contempt. The failure of the dividual images-nearly 400 million gain this respect, we in the Congress House of Representatives to thoroughly people of India are symbolized in Pre­ must in turn respect the individual rights consider each request for a contempt mier Nehru; France was almost anony­ of all citizens who appear before our fact­ citation has resulted in the judicial mous until De Gaulle; England is the finding committees to encourage the reprimands contained in the Watkins Royal Family and Sir Winston Church­ necessary rapport between the investi­ decision and the Arthur Miller case and ill; and unfortunately, a few dictators gator and the witness. It is absolutely others. The review of each request for a have cast their shadows across the essential that we · set up proper proce­ contempt citation by an impartial third image of the whole of Latin America: dures that will strike a proper balance be­ party will make each of us more aware of Peron, Batista, Perez-Jimenez, and still tween committee rights and obligations the constitutional rights of our citizens Trujillo. But now there is emerging a arising from its legislative power and the who appear before our committees and new image of Latin America: In El Sal­ rights and obligations of our individual the duties which they demand for their vador, Jose Maria Lemus; in Chile, Jorge citizen. The very nature of a contempt protection and preservation. It will Allessandri; in Mexico, Adolfo Lopez proceeding denotes disagreement be­ then be self-discipline that will thwart t\:een the investigator and the witness. possible congressional committee abuses Mateos; in Venezuela, Romulo Betan­ This disagreement could be the result rather than attempt by the judiciary to court. of one or many complex reasons. It discipline the Congress. If this is done And clearest image of all, reminiscent could result from a disregard and dis­ the constitutional rights of our citizens of our own Woodrow Wilson, is Frondizi respect for a duly constituted legislative will be preserved and the dignity and of Argentina, who has in 10 days almost investigative body. The question then integrity and powers of the Congress will wiped out the memory of Peron. Of arises what has occasioned this disrespect be maintained. - I earnestly suggest, Mr. Dr. Frondizi it can be truly said: "He for a particular committee. When alle- Speaker, that my proposed bill will fill 1959 CONGRESSIONAL RECORD- HOUSE 2781 the obvious needs as a-bove outlined. I tory, a post he held until he was named Nearby, at the intersection of Fulton am hopeful that ·the Congress will · act to the headquarters staff of the NASA. and South Streets, the · settlement of upon this bill this year. Silverstein was a member of several Breukelen-Broken Land-was estab­ NACA committees and subcommittees, lished. It was named for a village in including: Committee on Aerodynamics, Old Holland. 1946 to 1947; Subcommittee on Self-Pro­ In 1643 Lady Deborah Moody, having Who's Who and What Is Going on ·in pelled Guided Missiles; 1945 to 1947; been excommunicated by the Puritan Subcommittee on Internal Flow, 1947; Church in Massachusetts because of her Space-A Space Lesson Subcommittee on High-Speed Aerody­ disbelief in infant baptism, settled with namics, 1945 to 1957; Committee on some English followers at Gravesend. EXTENSION OF REMARKS Powerplants for Aircraft, 1951 to 1957; By 1660-the year of the Restoration OF and the Special Committee on Space in England-New Utrecht, Midwout--­ Technology, 1958. Midwood-and Bushwick had been es­ HON. JAMES G. FULTON He served as chairman of the Cleve­ tablished. OF PENNSYLVANIA land section of the Institute of Aero­ These Dutch-Walloon settlers brought IN THE HOUSE OF REPRESENTATIVES nautical Sciences, 1946 to 1947. He was to Manhattan and Long Island a type of a member of the committee on arrange­ culture and community life entirely their Thursday, February 19, 1959 ments for the joint meeting of the Insti­ own, of which the Dutch Reformed Mr. FULTON. Mr. Speaker, Abe Sil­ tute of the Aeronautical Sciences and Church was the focal point. Around it verstein is Director of Space Flight De­ the Royal Aeronautical Society, held in all else revolved. Even after the Ameri­ velopment at the National Aeronautics New York City, in 1949. The Assistant can Revolution, the pattern was still and Space Administration headquarters Secretary of Defense for Research and strong enough to impress itself upon the in Washington, D.C. Before the NASA Development appointed him a member village and, later, the city. That pattern was established, on October 1, 1958, he of the Technical Advisory Panel on Aero­ was, as one writer has described it, one was associate director of the Lewis Flight nautics for the year 1955, and as chair­ of "order, sobriety, piety." Propulsion Laboratory, Cleveland, Ohio, man of the ad hoc working group on Oddly enough, the Dutch and Wal­ a research center of the National Ad­ rockets for 1956. He was a member of loons cared nothing, in these early days, visory Committee for Aeronautics, which the scientific advisory board of the Chief for waterfront rights: they were inter­ formed the nucleus of the NASA. of Staff, U.S. Air Force, for 1956 and ested in farming the hinterland; it was Silverstein directs those NASA pro­ 1957, and chairman of the OASD tech­ the enterprising Yankee across the river grams aimed at the development of space nical advisory panel on aeronautics, ad who established warehouses, slaughter­ flight. Development programs under his hoc group on propulsion for aircraft and houses, and tanneries to which the Long direction include space probes and missiles. He was a member of the As­ Island burghers brought their cattle bred manned and unmanned satellite systems. sistant Secretary of Defense's steering on the salt meadows sloping down to He is also responsible for the develop­ group of the Advisory Panel on Aeronau­ Wallabout and Gowanus. ment of propulsion systems capable of tics for 1958. With the coming of American Inde­ powering these space vehicles. Silverstein was American representa­ pendence and the consolidation into a Silverstein is a native of Terre Haute, tive to the joint meeting of the Institute closely knit union, Brooklyn, like her Ind., where he attended local grammar of the Aeronautical Sciences and the neighbor on Manhattan, thrived and and high schools. He earned a bachelor Royal Aeronautical Society, in London, prospered. When it was proposed in of science in mechanical engineering de­ in 1947. He delivered the annual Wright 1883, that the Long Island town· be in­ gree. in 1929, and a mechanical engineer­ Brothers Lecture before the !AS in 1949. corporated into the city of New York as ing degree in 1929, and a mechanical He is a member of Tau Beta Pi, and a a sensible and practical step, mutually engineer professional degree in 1934, fellow of the Institute of the Aeronauti- advantageous to both communities, a from Rose Polytechnic Institute. He was cal Sciences. - roar of protest went up from the old­ awarded an honorary Ph. D. degree by Silverstein, his wife Marion, and their timers. Stout old Gen. Jeremiah John­ Case Institute of Technology in 1958. three children, Joseph, Judith, and son, of Wallabout, speaking for the ma­ Silverstein joined the National Advi­ David, live at 7205 Rollingwood Drive, jority, roundly declared: sory Committee for Aeronautics in 1929 Chevy Chase, Md. Between New York and Brooklyn there is and soon after helped design the full­ nothing in common, either in object, in­ scale wind tunnel at the Langley Aero­ terest, or feeling-nothing that even ap­ nautical Laboratory. He later was placed· parently tends to their connection, unless in charge of this facility and directed re­ George Washington and Brooklyn it be the waters that flow between them. And even those waters, instead of, in fact, search which increased the high-speed uniting them, form a barrier between them performance of most of the combat air­ EXTENSION OF REMARKS which, however frequently passed, stm form craft of World War II. This work was OF and must forever continue to form an un­ recognized as a major factor in gaining surmountable obstacle to their union. U.S. air superiority during the war. HON. ABRAHAM J. MULTER . The forerunner of the argument that In 1943 he was transferred to the Lewis OF NEW YORK Hawaii is too far from the mainland to Laboratory at Cleveland to select and IN THE HOUSE OF REPRESENTATIVES train a staff which he directed in re­ be a State. search at the altitude wind tunnel. Thursday, February 19, 1959 The following year the intrepid gen­ These investigations led to significant Mr. MULTER. Mr. Speaker, we .in eral and his triumphant followers se­ improvements in both reciprocating and Brooklyn are not only celebrating the cured from the legislature a city charter early turbojet aircraft engines. He also 227th anniversary of the birth of the for the village. But, as one historian pioneered with large-scale ramjet en­ Father of our Country, but also the 335th observes: gines, now used on certain missiles. anniversary of the formal settlement of The general's defiance was fateful. Geo­ At the end of World war II, Silver­ Brooklyn. graphically and hence commercially, Brook­ lyn was bound to the island of Manhattan; stein was directing the work at several The first actual purchase of land on yet it became a city and remained one for major research facilities at Lewis. He the present site of Brooklyn was made 64 years. When incorporation finally took directed the erection of the $9 million in 1636 at about what is now Gowanus place, in 1898, the insurmountable obstacle NACA 8- by 6-foot supersonic wind tun­ Bay. Between the. following year and t.o the union had already been spanned by nel, first operated in 1949, and the $33 1654 a colony of Walloons built their the mighty Brooklyn Bridge. The Williams­ million NACA 10- by 10-foot supersonic dwellings on Waal-boght, which we now burg and the Manhattan bridges followed wind tunnel, completed in 1956. These know as Wallabout Bay. and · the high-sounding words of General facilities, the largest wind tunnels of As early as 1642-only 6 years after the Johnson have long since been lost in the their kind in the world, have greatly first land purchase-a ferry had been roar of three subways under the river. accelerated the development of super­ established by one Cornelis Dircksen, By daybreak of August 27. 1776, the sonic aircraft.. In 1952 he was appointed operating from Peck Slip, over in Man­ powerful British Ariny, landing under associate director. of the. Lewis Labora- hattan, to what is now Fulton Street. the guns of the fleet, threatened the 2782 CONGRESSIONAL RECORD- HOUSE February. 19- encirclement and complete annihilation expand the market, for the Japanese textile of the diploii).atic corps. The Army orches­ of the scanty and divided American industry and is interested in seeing the tra play in the Speaker's Lobby, the choir . Japanese textile market expand in the United of the Coast Guard Academy sang in the forces. Perceiving the peril of the situa­ States as much as the Japanese are inter­ Chamber, Frederick March recited the Get­ tion-the fate of the American cause ested." tysburg Address and Carl Sandburg, who of hung indeed in the balance during these I would be interested in knowing the all others has studied every word Lincoln 2 days-Washington, in a masterly deci­ source of the policy on which the Kearns spoke and wrote, gave an address none pres­ sion, evacuated his entire army from statement is based. The American industry ent will forget. It was a deeply moving hour, Brooklyn Heights during the night of the is presently sharing its textile markets with I can assure you. 29th in a counterstroke, unsurpassed for the Japanese to such an extent that it is It seeins to me peculiarly fitting that the swiftness and efficiency in military injurious to our industry and its employees. week set aside as "Boy Scout Week" should Please advise why, in view of the present contain the date of Lincoln's birth. And this annals. What is more, he had managed ease of access to our markets, the Assistant year we celebrate the 150th anniversary. to bring back intact all the cannons, Secretary deems it a matter of policy to en­ Could one find anywhere a more inspiring small arms, ammunition, tools, horns, courage the Japanese to seek an even larger example for Scouts and Scout leaders than and foodstuffs, so that when the be­ share. The U.S. economy cannot be expected this great man? wildered British, puzzled by the strange to absorb the Japanese industrial capacity Indeed, I would like to suggest that wher­ silence, finally climbed into the empty which has been largely rebuilt with American ever and whenever Scouts from Cubs on up works, they found, in the words of a tax dollars. meet, they would ask that their hours of to­ contemporary historian, not "so much WM. JENNINGS ·BRYAN DoRN, getherness .might be infiltrated by his sim­ Member of Congress. ple way~, his deep understanding, and the as a biscuit or a glass of rum wherewith challenge of his courage and his faith. I to console themselves." Though men Mr. Speaker, it is high time for this am very certain that his spirit rejoices that did not then perceive it, the independ­ Congress to know whether or not the there are nearly 5 million Scouts and leaders ence of America was secured. State Department and the Department currently in America; 26 million persons who It is well that we inhabitants of old of Commerce are really interested in have felt the impact of the Scout oath and Breukelen think of those great days as helping the industry and labor of Amer­ are infinitely better for it. Let us turn now to Scouting. we celebrate the birthday of the Father ica or whether or not their first alle­ This is a wonderful organization to whom of our Country and our own civic anni­ giance is to industry and labor in foreign Congress granted a Federal charter on Feb­ versary. lands. ruary 8, 1910. On this last evening of This Congress has a continuing respon­ Boy Scout Week in the year of Our Lord sibility to see that our trade laws and 1959, let us glance over the long list of Textile Industry Is Alarmed Over agreements are properly administered by achievements, remembering that more than executive agencies. 4,780,000 active Cub Scouts, Boy Scouts, Ex­ Imports From Tokyo plorers and their leaders have been meeting together in happy, earnest observance. EXTENSION OF REMARKS Since 1911, 331,719 Americans have qual­ OF ified for Eagle Scout rank; 199 awards for Importance of the Boy Scout Movement heroism or meritorious service were made HON. W. J. BRYAN DORN in 1957 by the Boy Scouts' National Court of Honor. The Safety merit badge has OF SOUTH CAROLINA EXTENSION OF REMARKS been earned by 869,756 Boy Scouts and Ex­ IN THE HOUSE OF REPRESENTATIVES OF plorers. This is only part of a wonderful Thursday, February 19, 1959 record. And let us rejoice that there are HON. FRANCES .P. BOLTON 7,589,183 Boy Scouts and leaders in 67 nations Mr. DORN of South Carolina. Mr. OF OHIO around the world. Speaker, the great American textile in­ IN THE HOUSE OF REPRESENTATIVES A year or more ago I foregathered with dustry is alarmed over imports from many of you in a tent on the Chagrin Res­ Tokyo. The textile industry was hoping Thursday, February 19, 1959 ervation. It. had been raining heavily and the ground was soggy, the air water-charged. that Assistant Secretary Henry Kearns Mrs. BOLTON. Mr. Speaker, on Feb­ But there were no empty chairs and no one on his present trip to Tokyo would sta~d ruary 13 last, it was my privilege to ad­ grumbled. · It· was my first direct contact up for the American industry and its dress a meeting of Scouters and their with Scout leaders and it was a thrilling employees. I was shocked a moment ago parents at the Windermere M.E. Church experience. to receive the following telegram from in East Cleveland on the "Importance And here we are. tonight under the de­ Mr. Leon Lowenstein of New York. Mr. of the Scout Movement." It was par­ lightfully friendly hospitable roof of this Lowenstein is a patriotic American who ticularly significant that Boy Scout Windermere Methodist Church which gives such wonderful service to this community. is desperately trying to furnish employ­ Week was being celebrated all over the What a miraculous thing it is, this to­ ment for Americans. Mr. Lowenstein is Nation at the same time that Americans getherness. Never in our history have we so working night and day to keep his indus­ everywhere were commemorating the needed strength of body, mind and soul, in­ try going: 150th anniversary of the birth of Abra­ dividually and collectively, as we do at this Hon. WILLIAM JENNINGS BRYAN DORN, ham Lincoln. moment. We are pitted against an adversary House of Representatives, Under unanimous consent to extend who, in denying the very existence of God, Washington, D.C.: my remarks, I include the text of my signed his own ultimate death warrant, but Today's news record reports U.S. Assistant speech herewith: who is terrible indeed in his present strength. Secretary of Commerce Henry Kearns as say­ We have found him to be ingenious, in some AnDRESS BY HON. FRANCES P. BOLTON, WEST­ things brilliant, in others not. . We know ing in Tokyo, "U.S. Government is interested ERN RESERVE DISTRICT, BOY SCOUTS OF in helping to expand the market for Japanese him to be cruel, ruthless, deceiving and AMERICA, WINDERMERE METHODIST CHURCH, deceitful. We have found him to be without textile industry and is interested in seeing CLEVELAND, OHIO, FE;BRUARY 13, 1959 the Japanese textile market expand in the morals and without honor. And we must United States as much as the Japanese are Members of the board of the Western Re- have realized by now that we are in a long, dark, treacherous battle for the survival not interested." If such quotation is correct I serve District (District No, 7) of the Greater wonder whether Mr. Kearns reflects official Cleveland Council (No. 440) of the Boy only of the nation that Mr. Lincoln hoped U.S. policy. By virtue of what authority Scouts of America, Den Mothers, Cubmasters, would go "onward and upward," that "will does any department of our Government Scoutmasters, Explorer advisers, Scouters of not pass away," but of free men across the world. seek to expand markets for Japanese indus­ every sort and kind, executive staffs and such try in the United States? Scouts as may be here, as well as your many And then it is as if someone lighted a guests: I greet you with a deep sense of the little candle and set it upon a rock and LEON LOWENSTEIN. privilege it is to be amongst you here in darkness gathered her cloak about her and Now, Mr. Speaker, in response to Mr. this great Windermere Methodist Church on oh, so reluctantly, turned from us and began Lowenstein's telegram, I am sending the this fellowship night. her long way through the gloom of hatred Yesterday in Washington a joint session toward the pity and forgiveness of Him whom following wire to the Honorable Lewis L. of the Congress gathered to do honor to the she had tried to destroy. Strauss, Acting Secretary of Commerce: humble, modest, magnificent Abraham Lin- · "On my honor I will do my best to do my Hon. LEWIS L. STRAUSS, coin, of whom it was said that when he went Q.uty to God and my country, and to obey the Acting Secretary of Commerce, to a town, a village, or just a gathering, "he Scout law; to help other people at all times; Washington, D.C.: · brought light with him." to keep myself physically strong, mentally Fairchild News Service, under date of Feb­ Gathered in the House Chamber at i1 a.m. awake, ·and morally straight." ruary 18 from Tokyo, Japan, reported Assist­ on Thursday, February 12,· were Mem.bers · These lads and those . who volunteer as ant Secretary Kearns as having said, "the of the Senate and House, the Supreme Court, leaders believe that "because God is, I am," U.S. Government is interested in helping to the Cabinet, and a very large representation their strength can be the support of free 1959 CONGRESSIONAL RECORD- HOUSE 2783 men and women everywhere. Their faith Scouting makes visible the elements that Again my deep appreciation for this priv­ can uphold the weakest among us, and even have made us a Nation of free men, united ilege of sharing this fellowship night with as it was with Lincoln they can ·bring light in the certainty that in a land such as ours, you. And may the Infinite bless this work, with them. "one Nation under God" there can be "liberty strengthen and keep you, and may His light · An organization such as the Boy Scouts of and justice for all." shine before you on whatever road you America does not come forth suddenly Out of this community there can and must · travel. from the heart and mind of one man. No, a · come a great tide of desire ·in the hearts of dream precedes it, a vision brings into being many to play a simple, quiet but very effec­ a tiny infant, lusty, perhaps, but not full­ tive role in giving youngsters a clearer pic­ grown or fully panoplied as Minerva when ture of what freedom means-of showing National Historic Shrine Assured she sprang from the head of Zeus. Yet, them that character is what makes a man Near Astoria from the moment of birth this infant has and builds a nation-that honor and loyalty drawn to itself the ever-increasing many and courage and faith bound together intel­ whose dreams have been but fleeting, whose ligently with understanding will inevitably EXTENSION OF REMARKS vision takes time to clear-the infant has become a cleansing force not only here in become a powerful force in the Nation, these United States, but also throughout the OF praise Heaven, and makes itself felt across world. the world. What must a boy do when he joins up? HON. WALTER NORBLAD So has it been with this great Nation of He must take the Scout oath solemnly, and OF OREGON ours which was indeed conceived in a dream as we say on Capitol Hill-"without reserva­ IN THE HOUSE OF REPRESENTATIVES and born because a few men with vision vations." Listen all over again as I read it joined together to build a nation under God. to you: Thursday, February 19, 1959 But a nation is not built of bricks and mor­ "On my honor I will do my best to do my Mr. NORBLAD. Mr. Speaker, under tar to fall in the first storm, but rather is duty to God and my country, and to obey it built and held together by the hopes and the Scout law; to help other people at all leave to extend my remarks, I include fears, the love and the labor of millions of times; to keep myself physically strong, herewith an excellent article by Sen­ men and women seeking a way to the in­ mentally awake, and morally straight." ator RICHARD L. NEUBERGER, of Oregon, finite. So it is with Scouting. It rests Strong meat, friends, but potent, for the regarding the Fort Clatsop National upon the patient collaboration of literally young respond to these things with every Memorial: millions of men and women determined fiber of their threefold being. How much NATIONAL HISTORIC SHRINE AsSURED NEAR that American boys no matter where they there is in those 40 words, friends. There ASTORIA live shall have the opportunities that spell is a promise in them so rich in possibility faith, hope and love, the greatest of the that one could sing for joy. (By RICHARD L. NEUBERGER, U.S. Senator three. "To keep myself"-not anyone else for for Oregon) I have said that the United States came him-"physically strong." I watch the As Oregon commemorates 100 years of into being because a few great souls saw a many Scout troops that flow in and out of eventful history as a State, talented men vision and determined that a nation dedi­ Washington when winter is done with a and women of the U.S. National Park Service cated to freedom, to the dignity of the in­ real thrill. Oh, they often are hot and tired are bending over drawing boards at their dividual and to the Eternal God should be and their uniforms are mussed and tell the regional offices in San Francisco, designing born. It is not yet 200 years that we have story of hikes in dust and rain. But Scouts the visitors' center and museum building for lived-nor have we been too successful in do not slouch and shuffie along, as an too the first national historical shrine ever to be giving true freedom of the spirit as well as many school groups do, even at the end of a located in Oregon. freedom under law to every American. long, hard, and exciting day. Praise Allah, This is the Fort Clatsop National Me­ There is yet so much, so very much to do. we have 4%. million youngsters who can morial, which Congress and the President And why not--for is not this great adven­ walk. have recently authorized for construction at ture we call living, as we come out of un­ "To keep myself mentally awake." · Just a cost of approximately $350,000 near Astoria. conscious perfection and go toward per­ sit down with a group of them-they are like Fort Clatsop National Memorial will her­ fected consciousness, given us that we may hungry vultures tearing at your brains. ald an epochal event which occurred more strive constantly to strengthen ourselves Just the acknowledgment of their recog­ than half a century before statehood-the and those around us to the end that man nition of moral values puts the whole coun­ original crossing of the continent by Ameri­ everywhere may indeed be free? try outside the Iron Curtain and all it has cans, when Meriwether Lewis and William What group is there better equipped than grown to mean of atheistic materialism. Clark ended their overland pilgrimage at you of the Scouting world? What does So it is not casually said that a Scout is the mouth of the Columbia River. They Scouting stand for? Is it not training and trustworthy for when a Scout repeats the spent the winter of 1804-05 in a primitive discipline each of himself, each helping oath-the Scout law-he is really saying that stockade of logs which they named "Fort those with whom he comes in contact? Is he will be trustworthy, loyal, helpful, Clatsop." It was the first such habitation it not very basic, very fundamental, not just friendly, courteous, kind, obedient, cheerful, by citizens of the United States along the for the Cub, the Scout, etc., but for the thrifty, brave, clean, and reverent. Rather Pacific seaboard. leaders as well, indeed, first of all? When wonderful, that--especially when one real­ The site of this occupancy, some 125 acres you sit down with yourselves-alone--at the izes that just the words have little value to in expanded dimensions, will be the Fort end of a Scout year and take stock, do you the Scout unless they are backed by dedi­ Clatsop National Memorial. not find that you, as an individual, have cated, constructive action. In November I conferred at San Francisco grown in many directions? Do you not Surely there are--just around the corner with the National Park Service officials in realize more and more each year the truth at least--the 600 who are needed right charge of preparing plans for the great you came across long since and only half away, men and women like yourselves who undertaking. They share my view that the believed, that you cannot teach another have dreamed dreams of a strong, healthy, buildings of the memorial should be in (least of all an intuitive youngster) any_. God-fearing land, and who will find such keeping with their Pacific Northwest locale, thing very vital about a character quality volunteer service more enriching than they and that perhaps such native materials as which you do not possess? Do you not find would now believe. field stone and Douglas-fir siding should increasingly that as Walt Whitman so well I agree wholeheartedly with a statement characterize the edifices. These officials as­ said, "The gift is to the giver and comes contained in a recent Boy Scout annual re­ sured me of their enthusiasm for the proj­ back most to him"? port, which says: ect, because they believe our system of n a ­ We need more Scouts, so we must have "The development of our youth to be tional historical shrines has too long neg­ more trained and dedicated leaders. I have physically strong, mentally awake, and lected the Lewis and Clark expedition. seen your plans toward this end and am glad morally straight, to be citizens of character, Representative WALTER NORBLAD of the indeed to add my earnest hope that the very with high spiritual ideals and motives, is First Oregon District and I jointly spon­ fire of the need for men who will stand up not just a desirable thing, but it is essential sored the legislation authorizing Fort Clat­ individually and together to strengthen the if America is to fulfill its mission as the sop National Memorial, which passed both great army of righteousness, will be a light leader of the free world." Chambers of Congress unanimously and was which will inspire hundreds and thousands Let us remember that: "Scouting is a way signed by President Eisenhower. Several and millions to take up their part of the of living. It values deeds above words. It months ago I presented to the Clatsop load. builds character through habit and citizen­ County Historical Society the pen which the Little by little in these years since ~cout­ ship through service. It develops coopera­ President used for this purpose. ing was brought to these shores people are tion through cooperating. It learns through Both Representative NoRBLAD and I con­ realizing that as President Coolidge said in doing. Its outdoor craft enhealthens, deep­ sider it particularly appropriate that the 1926, Scouting is a movement that has a ens, and enriches boy life. Scouting is a first national historical shrine ever to be "unique power for fusing together in a process of making real men out of real boys, built in Oregon should be under way just as common citizenhood in one generation, the by a real program-an interest-gripping,, Oregon marks its first century of statehood. different elements that make up the growth-producing, character-building pro­ In view of the existence of McLoughlin United States, which would otherwise take gram of activities. Scout activities are of House at Oregon City, even many Oregon two or three generations of schooling and great worth in themselves as well as in· their historians are perplexed by the claim that legislation." byproducts of habits and attitudes." Fort Clatsop National Memorial will be our 2784 , .. · CONGRESSIONAL RECORD ·- I-lOUSE.. . ' February 19 . State's first - histor-ical shrine of national were sent westward on their journey.of high As. chairman,qf the Republican senatorial proportions. destiny by our country's eminent third Presi­ campaign committee, I watch political McLoughlin House, which pays tribute to dent, Thomas Jefferson. trends down into the counties and into the the career of the illustrious Dr. John Mc­ (Senator RICHARD L. NEUBERGER Was the townships. In the recent November elec­ Loughlin of the Hudson's Bay Co., is a na­ first Member of Congress to propose Fort tion, you Saginaw Republicans showed t ional historical site, but it is under .non­ Clatsop National Memorial. He and Repre­ vitality and a comeback power that made Federal ownership. It is privately owned sentative WALTER NoRBLAD were the successful us proud of you. and privately administered. Federal funds sponsors of the legislation which President In most areas of the Middle West, the do not contribute to its operation or Eisenhower signed late last summer creating Republican Party did not sell itself to the m aintenance. the historical shrine near Astoria.) voters. Here in the Saginaw area, you did, Fort Clatsop National Memorial, by con­ and you did it very well. In Michigan, gen­ trast, will be developed and administered erally, the Republican Party was much entirely by the U.S. Government. Title to better than nearby States where, in some the land will be vested in the Federal Gov­ cases, the party lost a Senator, a Governor, ernment. Federal funds and personnel will Speech by Hon. Barry Goldwater, of Ari­ and control of both houses in the State be u sed in its administration-and, inci­ capitol. dentally, the budget for operation will be zona, .at the Annual Saginaw County Your candidate for governor, Paul Bag­ about $22,000 annually. Lincoln Day Dinner well, fought a great battle to turn back a Other simliar national memorials of great -trend. He was backed by a party finance fame are the Lincoln and Jefferson Memorials organization which did a great job h1 the in Washington, D.C., and the- De, Soto Na­ EXTENSION OF REMARKS face of adverse economic conditions; and by tional Memorial of Florida. There also is the very-effective staff assistance. Wright Brothers National Memorial of Kitty OF Above all, Paul Bagwell struck at a very Hawk, N.C., where two brothers named Orville · real .issue;-the . destruction of jobs in-Mich­ and Wilbur Wright flew their handmade QON. ALVIN M. BENTLEY igan;-a loss of jobs which ha~ resulted from flying machine in 1903. OF MICHIGAN the flight of industry to other States. Grad­ The Fort Clatsop National Memorial, which IN THE HOUSE OF REPRESENTATIVES ually the realization has spread in this State will be along U.S. 101, represents a longtime that industry is fleeing from a hostile busi­ goal of the Oregon Historical Society. Thursday, February 19, 1959 ness climate created by a Democrat Gover­ Through the years the society carefully nor's alliance with a powerful and ruthless marked the site of original Fort Clatsop, as Mr. BENTLEY. Mr. Speaker, under union politician. the logs crumbled back into the earth from leave to extend m~.r remarks in the Was the issue effective? Well, Paul did whence they had come. Without this d111- CONGRESSIONAL RECORD, 1 WOUld like to not overcome this 10-year cumulative trend gence on the part of the historical society, submit the speech given in Saginaw, at a single blow, but he took on a Governor there might have been so much doubt about Mich., at the annual Saginaw County who ordinarily runs ahead of his ticket by the location of the winter headquarters of Lincoln Day Dinner by Hon. BARRY a quarter of a mlllion votes, and when Paul Lewis and Clark that the memorial never was through with him, he stood a poor fifth GOLDWATER, of Arizona. Senator GOLD­ on the ticket. could have been authorized. WATER presented the citizens of Saginaw The Clatsop County Historical Society also Political observers were watching the Gov­ has played a key role in the plans for Fort with a powerful explanation of the dam­ ernor's race in Michigan with special inter­ Clatsop. Two of its leaders, Otto Owen and age done to our State by a labor dom­ est. It was thought that the Governor, Burnby M. Bell, have been particularly as­ inated and controlled state government. whose eagerness to be President is well siduous in marking out the location of the The results of Mr. Reuther's handiwork known, would have to run a very strong race historic winter encampment of the Lewis has been the destruction of the very if he were to be considered a serious con­ and Clark party. These local people in thing on which his strength is. based, the tender for the Democrat nomination in 1960. Astoria will see the memorial actually under Political observers were looking at this industrial job opportunities available in race as a sort of popularity index. construction during the fiscal year which our State. commences July 1, 1959, because the admin­ When the election was over, · political re­ istration budget includes $157,250 for the The speech follows: porters across the country looked at the start of work on the undertaking. SAGINAW LINCOLN DAY SPEECH BY SENATOR Governor's poor result and then marked Such a sum will be sufficient to finance BARRY GOLDWATER, I:l-EPUBLICAN, OF ARIZONA, him ·off the list of Presidential contenders. building of the houses to be occupied by the FEBRUARY 9, 1959 Just a week ago, in Washington, their personnel of the memorial shrine. It also judgment has again been confirmed. A non­ It is a real pleasure to be back in Michi­ partisan research agency took a poll of all will provide for installation of sewage facil­ gan. ities, parking lots, access roads, wells for a the Democrats elected to Congress to find This is a State of great beginnings-of what man these leading Democrats would domestic water supply and for rehabilitation great achievements. and protection of the recreated log fort. like to see as Democrat candidate for presi­ As a youngster in Arizona I remember dent in 1960. Two hundred and eighty­ It is highly likely that Congress will go reading about the energy and initiative, the three Democrat Representatives and 64 Sen­ along with the administration ~ s budget rec­ inventiveness of Michigan. ators were asked the question. The man ommendations in this field, because the proj­ For years I have been driving your great who looked so eagerly toward the 1960 nomi­ ect is not controversial. Our Fort Clatsop automobiles across rough desert trails. I nation before the race for the governor's legislation passed both the Senate and House have been giving them mountain road tests chair now is favored by only two of these unanimously. that would make your proving-ground hundreds of national leaders of the Demo­ The memorial will include the rebuilt log courses seem like Sunday afternoon drives. crat Party. Fort Clatsop, which was a joint project of the And they stand up to it. The fact is, there are seven Democrat Rep­ Astoria Junior Chamber of Commerce and the Yes. it's a wonderful State. resentatives and two Senators in all, nine Crown-Zellerbach Timber Co. at the time As I flew in it seemed there must be thou­ Michigan Democrats in the Congress. There of the Lewis and Clark sesquicentennial in sands of lakes here. seems to have been seven who did not ex­ 1955. Buildings added by the National Park Water everywhere. press a preference for your Governor. ' Service will be featured by the museum and When I think of what we could do in I believe that is as close to the bottom visitors' center, and also by two staff resi­ ,Arizoi).a with some of this water. as you can 'get, without an absolute zero. dences for the superintendent and the histo­ Solidarity House and its landlord you can· Bagwell was a great candidate, and he had rian of the project. Roads, trails and park­ keep. Just let us have some of the water. a sound issue. ing areas will complete the undertaking. In this month, when we are thinking espe­ He took on Walter Reuther's candidate Lectures on the dramatic Lewis and Clark cially of the name of Lincoln, we Republi­ for governor and cut him to size. A fifth­ trek will take place d aily at Fort Clatsop Na­ cans look back to the origins of the Repub­ place man in his own state. The fact is, tional Memorial for schoolchildren and other lican Party here in your State. You are Paul Bagwell seems to have put Walter visitors. A booklet distributed by the Gov- citizens of Michigan; I know you love this Reut her's candidate for president completely .. ernment will explain the historical signifi­ State. But perhaps you will allow us Re­ out of the running. cance of the site. Such men as Herbert E. publicans from other parts of the country For this, Michigan citizens owe Paul Bag­ Kahler, chief historian of the National Park to look with some affection and pride toward well a great vote of thanks. The rest of Service, tell me that they expect Fort Clatsop the State where began the party of Lin­ us, across the Nation, owe Paul Bagwell and National Memorial to become a mecca on the coln-this party of ours which has stood you Republican workers an even greater vote Pacific coast for families interested in Amer­ from the beginning for liberty, for the con­ of thanks. ican history. cept of the individual as sacred, this party Now let us look a little more closely at I believe the entire project should be con­ of ours which has always believed in the the issue you Republicans had here in structed and ready for formal dedication full exercise of citizenship rights, without Michigan. some time late in 1960 or early in 1961. It is obstruction, without surrender of any part On the face of it, the issue looks like a hoped that the dedicatory address will be of these rights to any person, or to any simple bread-and-butter problem, something given by the President of the United States, group. directly connected with the everyday prob­ whoever he may be, at that time. After all, I am proud especially to be talking to lems of anyone in Michigan who works for Lewis and Clark, whom the memorial honors, Saginaw Republicans. a living. 1959 CONGRESSIONAL RECORD- HOUSE 2785 Some who thought about the importance came to see me in Washington, because I This is no temporary condition. This of this issue went no fl.lrther in their think­ was on the Senate Labor Committee. They flight of industry is so great and so swift ing. They saw -that the issue ~as genuine, ­ asked for help in solving some of their prob­ that it more than made up for the enormous and also that it spoke importantly to every­ lems. They told me their civ_il rights were demands made upon the automotive indus­ man and woman in Michigan who _worked, being· imder~ned by certain politically am­ try in 1955 and 1956. Some people who wish or who depended upon someone who worked. bitious, union leaders in Michigan. to confuse thi& picture for political purposes This was enough. Now these men were strongly loyal to their have tried to blame Michigan's economic Now I invite you to review again with union's economic objectives. But they felt predicament upon last year's national reces­ me, briefly, the genuineness of this issue, that meddling in politics was not the job for sion. How do these people account for the considered as a purely economic matter, for union leaders, and they wet:e afraid that they very great loss of jobs at the height of the a constant effort is being made by the union would end up by jeopardizing their economic national boom, ·before there was any sign political propagandists and the Governor to gains unless certain ambitious union leaders of a national recession? blur and confuse these facts. could be kept out of politics. Michigan's problem arose before -the reces­ Let me say now that the issue here in Deeper still, these men resented having sion. When the recession came, Michigan Michigan has two major aspects, as I see it. their union-dues money diverted into politi­ was the worst spot in the country. And now, On the surface, and very immediately, it is cal slush funds. They had to pay dues to with the rest of the Nation climbing swiftly an economic problem-one, as I have said, hold their jobs, but they did not believe they again, a professor in your State university which touches very directly every citizen of ought to have to pay dues money which predicts that Michigan will still continue to the State. Underneath, and more important, their union leaders would use for politics, have a large pool of unemployed. And for it is a profoundly moral problem-one which sometimes for candidates actually opposed how long? For an indefinite period of time. · touches vitally upon the civil rights of Michi­ at the polls by their own union members. Michigan's problem arises within the State gan citizens. This, the union men told me, was an im­ itself. That is clear. The attempt to blame As I talk to you tonight I am reminded of moral thing. This, they said, was a basic Michigan's problem on the national admin­ an evening more than a year ago when I attack on their civil rights. istration was a shoddy political trick. stood before an audience of Michigan Repub­ I was impressed by the sincerity of these Nor can the problem, it seems, be related licans in Detroit. Will ycu forgive me if I men from Michigan. They were not crack­ to the large role which the automobile in­ recall briefly several things I mentioned that pots or union soreheads. They were solid, dustry plays in the Michigan economy. If night, because they seem just as pertinent family men, one of them a member of the this were true the State should have made now? United Automobile Workers for 18 years. As great increases in factory jobs when the auto A few years ago, in Washington, as some Senator CuRTIS and I listened, we could see industry was at its peak in 1955, 1956, and of us were reviewing the economic trends of their problem was real, and it was important. 1957, which were respectively the first, the the country as a whole, we were paying spe­ As I began then to study the Michigan fourth, and the third best years in more than cial attention to the great economic expan­ situation, I became more and more struck by a half century of the automobile business. sion in the country during the period 1950 the fact that there were elements in your Instead, as we have seen, Michigan was los­ to 1956, after the Korean war and under the problem here which were national in impor­ ing jobs at this time. new Republican administration. This period tance. Since then I have followed develop­ What then is the cause? was before the recent recession from which ments here very closely. I am convinced now Is this flight of industry and jobs due to the country is presently recovering. that Michigan is being used as a laboratory, an attempt by industry to escape paying Now, looking again at the period of great a testing ground, for something new in Amer­ Michigan's high wages? Well, it may · be national economic expansion, from 1950 to ica, something, in my opinion, that is poten­ true in some cases that a combination ot 1956, we find that 46 States, big and small, tially deadly. And I believe this statement high wages and fringe benefits have put some increased their number of factory jobs. Al­ is conservative, based on a compelling array Michigan business out of competition. most no State was so backward that it was of facts. Such is not the case with the major losses not carried along by the tremendous expan­ The methods used in Michigan, and the you have suffered. The great automobile in­ sion. results of these methods on the economy and dustry is moving out of Michigan to Ohio Only two States in that period lost factory especially on the civil rights of Michigan and Indiana. These are not low-wage States. jobs. One was little Rhode Island. The citizens give us a preview. A preview of what Ohio, in fact, was the third highest wage­ other, surprisingly enough, was Michigan, a we may expect if these forces in Michigan level in the United States. great industrial State which we in the rest spread their methods to the rest of the I have read that the automobile industry of the country had come to look upon as a country. has built 29 new plants in Ohio alone leader, certainly not as a backward and weak It is Michigan's problem now, but it threat­ since the war. The industry is certainly not State. ens to be soon the problem of the Nation. In moving to Ohio and Indiana to escape high Let me remind you that 1955 was the great­ fact, it has already spread to many parts of wages. est year for the production of automobiles the country, but only in Michigan do we see No, except for a few marginal cases, wage in the history .of the industry. The whole this thing in its mature form. We can study differential is not the cause for this flight Nation was reaching hungrily toward Michi­ here not only cause; we can study some of of industry and jobs from Michigan. gan for more and more automobiles and the results. Not all the results, mind you, Now, finally, there are some who deny en­ trucks. Even 1956 was one of the best years because you may have worse to come in this tirely that Michigan industry is actually in history for automobile sales. State, if some strong measures are not taken. leaving the State. They claim that the This enormous national demand was di­ Now we are talking about results. Let us whole issue is artificial. They say it is a rected right at Michigan and should have look again at the disastrous economic record trumped-up political issue, without any real produced an unprecedented prosperity in the of Michigan in recent years. substance. Now I have received a very interesting State. We know that Michigan was the only State Why, then, did the exact opposite take study by Professor Jamison of the University in the Middle West, one of only two States in of Michigan. Professor Jamison shows be­ place? Why, instead of a great gain in fac­ the whole Nation which lost factory jobs tory jobs, was there an actual loss in jobs? yond question that Michigan, once a national between 1950 and 1956. I would remind you leader, has, since 1948, been falling behind What sickness in this State could be so again that this was a period of unprecedented acute that even a great economic "blood the Nation in many types of industry-in economic expansion throughout the Nation. furniture manufacture, in pulp paper and transfusion" from the rest of the Nation I would remind you again, too, that Michi­ would still leave Michigan anemic? p-aper products, in chemicals, in petroleum gan's greatest industry, automobiles, was and coal products, in rubber products, in What was so unique about this sickness receiving an unheard of stimulus from a that not one other large industrial State leather and leather goods, in stone clay and prosperous Nation at the very time jobs were glass, in primary metal products, in fab­ was affected? Why, too, were even small and disappearing from the State. relatively undeveloped rural States, with no ricated metal products, in electrical ma­ industry like automobiles to attract a na­ While the whole Nation was going forward, chinery and in transportation equipment. tional demand, nevertheless increasing fac­ Michigan was going backward. According to Professor Jamison's report, tory jobs, while Michigan limped along at Why? Michigan not only has lost leadership in in­ the end of the procession? I believe I know the cause. Paul Bagwell dustries for which the State was once famous. There was something profoundly wrong spelled it out. But in the heat of a cam­ It goes far deeper than that, Michigan is with Michigan's economy. That was clear. paign a picture can be blurred. Statements steadily losing across a broad front, big in­ We looked with surprise at this State of and counterstatements can lead to confusion, dustries, small industries, and across a broad Michigan, propped up on all sides by the doubt. range of manufacturing. greatest demand for automobiles in the his­ The political campaign is over, and it is What is wrong with Michigan's economy tory of the country. How could Michigan be time now to review again the facts. is not limited to any special size or type of the only State in the whole Middle West to Even now there are those who would de­ industry. No, this sickness is general. lose factory jobs, almost the only State in liberately confuse this picture. There are Only a few miles from Saginaw you have this country? those, I regret to say, who have much at a great chemical manufacturer, Dow, one of This was almost unbelievable, but it was stake in covering up or distorting the actual the greatest in the country. Once this was true. facts. a Michigan industry. You know that this Now I have, for some years, had a special The simple fact is that industry is fleeing great company has expanded its facilities interest in the State of Michigan. Five from Michigan. And new industry which the not so _much in Michigan, but outside the years ago a group of Michigan union men State needs so badly is avoiding the State. State. So great has this outstate expansion 2786 CONGRESSIONAL RECORD- HOUSE February 19- been that now less than half of the total to come into the States means this:. The I'll say tonight again what I said in De­ assets of the company remain in the State. hlgher and higher taxes of Michigan will troit over a year ago: You all know this company. You know not be shouldered by a growing industry. What is wrong with this State is not this outstate expansion to be true. Only The taxpayer will have to carry the addi­ economic. It is political. recently in my study of your State did I tional burden which an expanding or incom­ Some politicians in your State have feared learn of this fact. ing industry would otherwise have shared. that the real facts-the truth-might be­ No amount of political propaganda can . Now this is a bitter set of facts. And I come apparent to the citizens of the State. hide facts of such magnitude and impor­ hesitated long before deciding to address Not only have ·they, in turn, denied the t ance. such an audience on facts which many of problem exists, they have also set up false Now we have talked of industry leaving you must know better than I. causes, and then, finally, they have turned Michigan. What of industry searching for Yet I felt it might be useful for you to • to deliberate obfuscation. a location? hear how these facts appear to an outsider­ They have tried to make this problem look Is. the sickness which is driving industry not entirely an outsider, I hope, .,since I have mysterious. I have read how they set up and jobs out of Michigan also keeping indus­ good friends in your State-but to one, not study committees ostensibly to find out what try from coming into the State? embroiled in the politics of your State, nor is causing the disastrous Michigan decline, Since I last spoke in your State, somewhat with any business interests here. but I cannot believe they are actually mys­ more than a year ago, several studies have What facts I have seen convince me that t ified by this problem. They know all too been developed which seem relevant. One your predicament is a matter not only of well the cause. was produced by an independent research concern to Michigan but to the Nation. You Well-intentioned people seem to have lent organization in Chicago, Market Facts, Inc.; are a great State, and what h appens to you their names to these committees and, with­ another was developed by McGraw-Hill Re­ cannot be a matter of indUierence to the out intending to do so, have helped poli­ search for the magazine, Business Week. I rest of us. ticians to keep alive the myth that this is a found these studies told me a great deal Now, if you will be patient with me, I mysterious thing. What do these commit­ about the attitudes of manufacturers toward should like to proceed to the next step. tees accomplish? They have one major, but coming into Michigan. We have seen that the Michigan predica­ unexpressed objective-"to take the heat In each case the research organizations ment is not due to the short-lived national off" the politician. asked top manufacturing executives to list recession, nor to the dominance of one in­ Now it is not actually very difficult to find specific States they would consider if their dustry in Michigan nor even to the lure of cut why industry is leaving Michigan, and company were going to select a site for a low-wage structures in other States. why other industry is staying out of the new plant. We have seen that the Michigan predica­ State. The McGraw-Hill study received replies ment is very real and that there is a wide­ In each of these industrial organizations from 283 executives. spread conviction in the rest of the country there is a small group of responsible execu­ Now how did Michigan compare with other that Michigan is no longer a good place in tives at the top who make such decisions. sites as a desirable plant site? which to expand or to enter with a new man­ They know why they decide one way or the Of the 283 executives expresisng an opin­ ufacturing business. The McGraw-Hill and other. There is nothing mysterious about ion only 3 considered Michigan a first-choice Market Facts studies clearly substantiate the the process. location. Only 19 would give Michigan any fact that these opinions are widespread And I can tell you this. Their decisions consideration at all. When the size and among manufacturing executives whose job have nothing to do with political partisan­ importance and industrial history of Mich­ it is to locate plant sites. ship. In my own State of Arizona, both igan is considered, I believe you will agree It does no good to try to hide these facts. houses of the legislature have heavy Demo- this reflects an attitude toward Michigan Such facts cannot be hidden. . crat majorities. Yet Arizona is the most which could be disastrous to the economy A doctor who tells a patient with cancer swiftly growing State in the Union, indus­ of your State. that he is suffering only from a slight stom­ trially. At the same time Michigan was My own State of Arizona, relatively new ach ache, to forget it, and it ·wm go away, is declining in. the number of factory .jobs, in manufacturing, received almost twice as doing his patient no favor. between 1950 and 1956, the State of Arizona many first-choice mentions as did indus­ The doctor who tells his patient the cold was increasing 130 percent. trial Michigan. truth about the cancer gives the patient an No, responsible business leaders cannot Now let us turn to the Chicago study. opportunity to take realistic measures for a afford the luxury of party bias when it Market Facts, Inc., interviewed 113 top man- · cure. comes to economic decisions. It is their ufacturing executives. They were asked to Now I would not presume to take the role responsibility to go where the business will compare five Great Lakes States as desirable of doctor for the State of Michigan. You thrive, stay out of areas where the busi­ plant locations, Illinois, Indiana, Michigan, have men here in this State who have been ness will be harmed. Ohio, and Wisconsin. telling you the hard truth about your prob­ It is not because your State administra­ Market Facts asked the executives, as one lem. Men who know a great deal more about tion is Democrat. It is because the Demo­ question, to rate any one of the States as your State than anyone from the outside crat Party in your State is a shell-mere­ "worst." Do you know that every executive could ever know. ly a label-taken over by a special inter­ who gave a "worst" rating gave this rating It is very difficult for men who live here, est. That special interest is the United to Michigan? who love this State, who have known its Automobile Workers. And I am not re­ Now there is no doubt of the objectivity or greatness, to tell the hard story of its present ferring to the ran k-and-file union mem­ the competence of either of these research condition. It takes courage, and it takes bers. I am referring to · a few political­ organizations. Each has a national reputa­ integrity. ly ambitious union leaders, men with a tion, and each conducted their investiga­ It is easier by far, especially for men who Socialist background. tions with great safeguards to avoid bias of have more ambition than integrity, to re­ These men own and operate the shell any kind. peat the empty optimistic things. Easier by Let us look at the opinions of these execu­ of a political party. They have retained far, and more popular, to say it is just a only the Democrat label. tives. Is there a possibility that their opin­ little passing stomach ache, or to pretend ions would not necessarily be the same as The key points in the party are manned even that it does not exist at all. by their crew. The m achinery is fueled wit h their actions? To have a leader who takes this line is to Well, there is a simple way to test their union dues money from the general treasury have no leader at all, if the sickness is really of the United Automobile Workers. actions. We can look at actual plant con­ acute. Such leadership is a kind of betrayal struction in Michigan, and compare it with of trust. This party in Michigan which still car­ nearby States like Ohio and Indiana. Paul Bagwell said the hard things to the ries the label "Democrat" is so far to the In the 2-year period, 1956- 57, industrial citizens of Michigan. He ran better in the left, so irresponsible, that even regular New contracts for construction in Indiana were recen t election, not worse, because of this. Deal style Democrats find it very h ard to a little short of $1 billion, $889,123,000. He did not win, but he ran better than any accept. Ohio was larger with $921,678,000. This was Republican gubernatorial candidate in years. Only last Friday Governor Docking, a plant construction at the rate of $201 for He will win the next time, because he de­ Democrat Governor of Kansas, made a pub­ each person in Indiana, $101 for each per­ serves to. lic statement about the plight of Michi­ son in Ohio. As a man of integrity, as a responsible gan. I saw the statement as reported in Michigan? Well Michigan's total plant leader, he spoke the hard truths. The citi­ a Detroit paper. Docking said Michigan is construction in 1956 and 1957 was little zens of Michigan can trust a man like that. completely broke because of a "bureaucra­ more than a fifth that of Indiana or Ohio, We come then to the big question. cy" which has "run wild." ::md amounted to only $27 for each person in We know the great natural advantages of Now I ask you this, How bad does the Michigan. Michigan. We know of the great resources, situation have to be, for a New Deal Demo­ What does this mean to citizens of Michl­ the power, the skilled men. We know Mich­ crat to describe it as a bureaucracy which gan? It means that the plants not being igan industry is close to great natural mar­ is running wild? built today will be the jobs that will die kets. No, there is no mystery, no mystery at unborn tomorrow. None of these economic advantages has all, about the decision of business execu­ To the man looking for a job in Michigan disappeared. tives to move from this State, or to avoid today, this means no hope for new job op­ Now, what has happened in Michigan? the State, if they are already outside. No portunities tomorrow. Your State has not lost any of the great responsible executive could conscientious­ To the man who is paying taxes, the flight resources, the great economic advantages ly expose his business to the hazards of of industry and this failure of new industry- it had 10 and 20 years ago. a "bureaucracy running wild." 1959 CONGRESSIONAL RECORD- SENATE 2787 . And I shall venture to suggest, further­ Reuther and four other top officials of the ten an opinion which may, _In effect, compel more, that businessmen would be better union decided to run for city council in industry to finance strikes out of unemploy­ advised to avoid lending their names to Detroit. And what h appened? All were ment compensation funds. committees set up to "take the heat off" defeated. · This is the final touch. To convert the leading politicians who · are undermining a Reuther ran 15th, out of 18 candidates. unemployment compensation fund into a State's economy. May I suggest that such I don't know what was wrong with the strike fund, financed by industry. businessmen might better serve their State three who ran behind him. They must have If this trend continues, I venture to pre­ and their business by coming at once to been objectionable in the extreme. dict an increase in the departure of industry grips with the real problem, which is politi­ The union members in Detroit wanted from Michigan. As your budgets and your cal, and carrying the actual facts to the Reuther as union leader; they rejected him debt become steadily larger, the industrial people. There is a responsibility to carry as a political leader. This same Walter base which should provide tax revenue will the whole story to the citizens of this State Reuther who could not be elected to the grow smaller. so that, better informed, they may make city council of Detroit, now goes to the na­ You will have larger and larger budgets on political decisions that are appropriate to tional convention of the D ~mocrat Party a smaller and smaller industrial base. the actual facts of their situation. and exercises a veto over the nominations The man whose birthday we are honoring It can be understood why men in the to the Dzmocrat national ticket. once spolte of such a situation. business, for example, of selling industrial His is the hidden hand behind the policies Lincoln put it this way: "As an individual real estate might believe it in their short­ in the State of Michigan which have brought who undertakes to live by borrowing soon run interest to obscure the real facts of this great industrial State to its lmees, on finds his original means devoured by interest, Michigan's plight. It can also be under­ the verge of bankruptcy. and next, no one left to borrow from; so rtood why utilities executives whose rates The stranglehold of the labor politicians must it be with a government." are set by the State government, or leading on the State of Michigan is a well known It was true when Lincoln said it; the same educators on the State payroll, might find fact to businessmen across the country. is true today. it difficult to resist an invitation from the Just a year ago the representative of one Lincoln Day is a mighty good time for us executive office in Lansing to be listed on a . of the greatest industrial organizations in to be honest with ourselves. We must face committee, which is helpful to the public America cleared the air- took all the sup­ and acknowledge our problems-not only in relations needs of the Governor. posed mystery out of this situation. The Michigan but across the Nation-if we are How does any other businesman explain occasion was a meeting of industrial de­ to solve them. his presence on such a committee? velopment people and manufacturers from I can think of no better resolution for I have observed with interest the public five neighboring States of Illinois, Indiana, today in Michigan than to carry out to t h e statements of businessmen who declare Wisconsin, Ohio, and Michigan. people this idea of the greatest Republican their intention to get into politics. These This industrialist told how industry is of them all. expressions are very commendable. Busi­ searching all over the United States for You have a great worthwhile task: The nessmen, like all other citizens, should be good plant sites. In Ohio, his company has future of your State is truly at stake. informed and active citizens. built no less than 19 new plants in the last The economic problems of this State have May I suggest as an elementary first step 5 years. In Michigan they have built only an evil political root and it might well be the that these businessmen stop playing "foot­ one. They are· not planning, he said, to dedicated purpose of you all here tonight, as sie" with the forces of destruction? May I build any more in Michigan. citizens first, and secondly as Republicans, suggest that a little intestinal fortitude When he was asked why his company had to root out this evil cause of your great might be in order at this point? decided not to build further in Michigan, he State's present discontent. Across America, in the fast-growing States, said, "Because of your labor government." Every natural economic advantage which businessmen are getting into politics. · There was nothing mysterious about this Michigan ever had, it still has. The eco­ In my own State a successful business­ decision. nomic problem of Michigan originates in a man who had never held any political office Nor is there any doubt that this one in­ perversion of Michigan politics. ran for Governor and was elected Governor. dustrial decision alone cost Michigan tens The problem can only be cured by sound He fought a clean,· hard fight; on princi­ of thousands of jobs. political leadership. ple. Imported union politicians threw ev­ It does not seem to me to be necessary to In the final analysis, each citizen will solve erything they had at him and walked off set up a committee in an effort to discover the economic problem of Michigan alone-in the field with a bloody nose. what this man meant. the voting booth. You are faced here in Michigan by a labor It is there, on the face of it. I wish you well. For success you will need party, run by a small coterie of labor poli­ What is necessary, is that the people of some of the firmness, the devotion to truth, ticians, and disguised as the Democrat Michigan be given the facts. the dedication we knew in Lincoln. Party. Representative government is only sound Your t ask is formidable. This political organization is completely when the political decisions are made by But the energy, the spirit, the inventive­ ruthless and thoroughly irresponsible. The informed voters. ness that always has characterized Mich­ leaders of the organization make vital po­ The great State of Michigan is bankrupt. igan-this has not left the State of Michigan. litical decisions for this State, yet almost You have not exported your courage. none of these decisions can be reached or The executive is asking for new taxes which are estimated to add $38 to $40 million The character it took to build this great influenced either by the voters, or by the State, will not fail to meet the present chal­ union members. in taxes to the burden already carried by Walter Reuther ran for public office only business and industry. How many more lenge. once. The voters had only one chance at industries will decide to leave because of You can do it. him. this new tax burden, no one can say. Across the Nation, we others who are proud It was in 1937. Fresh from the violence The supreme court of your State of Mich­ to follow in the tradition of Lincoln will be of the sitdown strikes, flushed with victory, igan is adding its own special kind of night­ with you in spirit. Reuther thought his prestige as a union mare to the businessman. A former United A great responsibility rests on you here in leader could be transformed into political Automobile Workers organizer, now a justice Michigan. For what happens here today can power. on your supreme court bench, has just ~rit- happen to the whole Nation tomorrow.

May his warning sentiments bequeathed THE JOURNAL SENATE for the meditation of all future genera­ On request of Mr. MANSFIELD, and by tions come to us with undimmed fresh­ MONDAY, FEBRUARY 23, 1959 unanimous consent, the reading of the ness as a message for these turbulent Journal of the proceedings of Thursday, The Chaplain, Rev. Frederick Brown times. February 19, 1959, was dispensed with. Harris, D.D., offered the following By patience and faith may we, like prayer: him, rise above the dangers and diffi­ culties which confront us, as in this day CALL OF THE ROLL Our Father, God, and our fathers' of desperate battle his unsheathed sword God: inspires those who fight for the things Mr. MANSFIELD. Mr. President, I On this day hallowed by a grateful of the spirit wherever liberty is chal­ suggest the absence of a quorum. Nation, the towering form of one who lenged and imperiled by tyranny. The PRESIDENT pro tempore. The has left his image and superscription So, as the ages roll on, may the Na­ clerk will call the roll. forever upon our national life, being tion which calls him father cherish the The Chief Clerk proceeded to call the dead,yetspeaketh. luster of Washington's selfless service roll. With clamorous voices out of the and the greatness of his unsullied char­ Mr. MANSFIELD. Mr. President, I present demanding o.ur ears, we would acter. ask unanimous consent that the order listen again to the calm and reassuring We ask it in the name of the Christ for the quorum call be rescinded. voice of one who was Thy instrument.in he adored, at whose pierced feet he laid The PRESIDENT pro tempore. With­ fashioning the fabric of our freedom. his alL Amen. out objection, it is so ordered.