1957 ~ONGRESSIONAl RECORD - HOUSE 1607

-EXTEN .SIONS OF RE-MARKS free Marketing of Domestic Newly Mined action of gold, why should we not do the tober 13, 1783, Congress made him a same? Several countries, notably South brigadier general. Gold Africa, have brought great pressure upon Having served this country and its the International Monetary Fund to cause successfUlly and brilliantly, in July EXTENSION OF REMARKS break away from the $35 per ounce price. of 1784 he returned to his native land, OF Mr. Speaker, I wish to call to the at­ hoping to carry on the fight for her free­ tention of the Members that gold is dom. For more than 20 years he con­ HON. GRACIE PFOST grossly underpriced. Should the domes­ tinued his brave but unfortunately futile OF IDAHO tic free market price of newly mined efforts for Poland's freedom and died in IN THE HOUSE OF REPRESENTATIVES gold rise above the Treasury price it exile in Switzerland in 1817. Wednesday, February 6, 1957 would provide additional revenue for On the 211th anniversary of his birth­ Mrs. PFOST. Mr. Speaker, on the those many mines which produce gold day, we solemnly honor his noble mem­ opening day of this session I introduced as a byproduct of mining base metals ory. We do this not only because he a bill to permit the free marketing of and would thus help to defray the rising fought for our independence,.but also be­ domestic newly mined gold. · For the costs of operation. cause he was a vigorous champion of the benefit of other Members, and the many Mr. Speaker, I earnestly hope that the universal cause of human freedom as people from all over the United States Banking and Currency Committee will long as he lived. who are writing me to express interest in hold a hearing and give the gold miners this legislation, I would like to explain and others a chance to testify and tell briefly why I have introduced the bill us their problems. There is an appalling and what it would do. situation in the gold mining industry The Eisenhower Middle East Doctrine As you know, innumerable bills have today, and steps must be taken to revive been introduced in the House or the Sen­ the industry and place it on a business­ ate during the past decade to increase like basis. If this bill is not considered EXTENSION OF REMARKS the value of gold, to permit the free· coin­ feasible, perhaps a new one satisfactory OF age of gold, to restore convertibility, to to the Treasury Department can be allow our gold to circulate freely in world written around it in committee after in­ HON. CHARLES A. VANIK markets and for other purposes. With­ dustry and Government witnesses have OF OHIO out exception these bills have been ad­ thrashed the matter out. I have pointed IN THE HOUSE OF REPRESENTATIVES out the way by introducing the bill. versely received by the Treasury Depart­ Wednesday, February 6, 1957 ment and each one has been protested to the Banking and Currency Commit­ Mr. VANIK. Mr. Speaker, there are a tees by the Treasury and the Bureau of few Members of the House of Represent­ the Budget, and has died in committee. Thaddeus Kosciusko : Hero of the Ameri­ atives who may feel that they have had My bill was drawn after a careful can Revolution (1746-1817) something to do in formulating this Na­ study of the objections which the Treas­ tion's foreign policy by a vote for or ury Department has registered to the against the Eisenhower Middle East Doc­ previous gold bills. While it does not go EXTENSION OF REMARKS trine. During the next several weeks, all the way in doing what the hard­ OF several Members of the other body may money people and the free-gold people sense their great participation. eventually want to do, it opens the whole HON. DANIEL J. FLOOD The cruel fact is that Congress has had subject up for discussion. OF PENNSYLVANIA very little indeed to say about the im­ · It is ha.rd to see what material objec­ IN THE HOUSE OF REPRESENTATIVES plications and far-reaching effects of the tions the Government can have to this Wednesday, February 6, 1957 commitments being made right now. measure, as it only affects gold newly Last Wednesday evening, at the White mined in the United States after the act Mr. FLOOD. Mr. Speaker, Thaddeus House, the King of Saudi Arabia and 1.6 becomes law, and there will be no effect Kosciusko was one of those brave and members of his family and royal en­ whatever on the monetary stocks of gold restless Polish fighters for freedom who tourage dined at a state dinner for men at Fort Knox. No price is named in the was so strongly motivated by a love of only, oil men, to be exact. Among the bill and the relationship of gold to the liberty that he would go anywhere and out-of-town guests were Stephen D. United States currency therefore is not take part in any battle provided it was Bechtel, president ·and chairman of affected. There are no provisions for ex­ for a righteous cause. It was this feel­ Bechtel Co., of San Francisco; Fred A. port so the Government does not have ing which brought him to America not Davies, president and board chairman of to worry about this gold traveling out of long after our Revolutionary War had be­ the Arabian-American Oil Co., of New the country where it might disturb the gun. He arrived in Philadelphia in Au­ York; William T. Faricy, president of the international monetary situation, un­ gust of 1776 and immediately applied American Railroad Association; Ralph less it were smuggled out and no one for military service. He was admitted G. Follis, president and board chairman would take that risk unless there were a and charged with the drawing up of of Standard Oil, California, and Brewster very considerable difference between the plans for fortifying the Delaware River. Jennings, president and board chairman free gold market price here and that The success of this work earned him a of Socony Mobil Oil of New York. abroad. Various blocs and embargoes commission as colonel of engineers in the Also among those present was William imposed by other countries would not be Continental Army. L. Kleitz, president of Guaranty Trust violated. Jewelers and other fabricators In the spring of the following year, he Co. of New York; Augustus C. Long, or processors of gold in this country joined the Northern Army at Ticon­ chairman of the board of Texas Co., New would haye the option of buying through deroga. Later the fortifications he York, John J. McCloy, chairman of the their present channels or on the free erected at Saratoga contributed greatly board, Chase Manhattan Bank; Harry domestic market, whichever they might to the brilliant victory of our forces W. Morrison, president of Morrison­ prefer. there. During the next 2 years he Knudsen of Boise, Idaho; Warren L. Newly mined, untreated, domestic was placed in charge of the building of Pierson, board chairman, Trans World placer gold may be sold freely on the fortifications at West Point. Subse­ Airways of New York; Monroe J. Rath­ domestic market at the present time-­ quently, he took part in the battle of bone, president Standard Oil of New why then not newly. mined gold from Charleston, and was among the first of Jersey, of New York; Howard C. Sheperd, other sources? Canada has recently the Continentals to enter that city after board chairman, First National City eliminated restrictions on the trans- its evacuation by the British. On Oc- Bank, New York. 1608. CONGRESSIONAL RECORD - HOUSE February 6. · In between niblets of beef tenderloin with a long arm. It is an honor to salute eral Government and $115,000 by the and savarin, the boys probably discussed the Boy Scouts of America for their local interests. The estimated charges ways and means of keeping the King unselfish participation in United States after completion will be $40,000, of solid on his throne, to insure that a re­ foreign aid-at no Government expense. which $15,800 is Federal and $24,200 negotiation of his oil royalty contracts will be locally provided. . with American financial interests need This cost is more than justified when not occur. compared to the estimated annual bene­ One very likely commitment being en­ Flood-Control Measures for Weber fits from the project, $264,000, particu­ tered into by our Government is a com­ Basin, Utah larly when it is realized that the 1952 mitment to both King Saud and to the flood caused more than $1,600,000. American-Arabian Oil Co., and/ or their associates that our Government will pre­ EXTENSION OF REMARKS serve the integrity of the oil contracts OF between Saudi Arabia and American in­ Social Security for the Disabled vestment interests. Never has the word HON. HENRY ALDOUS DIXON OF UTAH ''integrity" received such blasphemous EXTENSION OF REMARKS use. IN THE HOUSE OF REPRESENTATIVES Wednesday, February 6, 1957 OF HON. AUGUSTINE B. KELLEY Foreign Aid at No Government Expense­ Mr. DIXON. Mr. Speaker, I am re­ introducing in this Congress a measure OF PENNSYLVANIA The Boy Scouts Did It which I had introduced in the previous IN THE ROUSE OF REPRESENTATIVES Congress in the House. This former Wednesday, February 6, 1957 EXTENSION OF REMARKS measure was H. R. 4262. Recently, in OF the Senate, Mr. BENNETT introduced, for Mr. KELLEY of Pennsylvania. Mr. himself and Mr. WATKINS, an identical Speaker, the Congress has authorized HON. BROOKS HAYS measure, known as S. 3. several giant forward steps in the last OF ARKANSAS The Weber Basin drainage area con­ few years in behalf of the disabled work­ IN THE HOUSE OF REPRESENTATIVES tains each spring the seeds of disaster er under the soci~l-security law, but from for many Utah families. The Corps of what I have ~een of the operation of th~ Wednesday, February 6, 1957 Engineers estimate that each year an av­ new program, it appears as if this ad­ Mr. HAYS of Arkansas. Mr. Speaker, erage of $264,000 in damages is wrought ministration is determined to stretch with the observance of National Boy in residential and agricultural lands every pqssible point to apply the bene­ Scout Week, it seems appropriate for the along the path of the Weber River. · fits as narrowly as possible. House to recognize the work of the Boy This is their estimate for an average In the 83d Congre~i;. we wrote into the Scouts in a field in which we seldom year, but I well remember the year 1952, social-security law the principle of a recognize their activity but one which when considerably more than $264,000 disability freeze s9 that if a worker be­ demands much attention. I refer to the in damages and havoc resulted from a ~~me disabled before reaching retire­ World Friendship Fund, the Boy Scouts' flood. I would place a conservative esti­ ment age his future benefits would be version of the United States Mutual mate of destruction at more than figured as if he had continued to work Security Act. Without disparaging the $1,600,000, for it was in that year that at the same wage right up to the time ·of mutual security program, I daresay the 1,200 acres of key residential, business, retirement. World Friendship Fund has gained more and industrial acres were flooded in This was intended to prevent a dis­ affection and brotherhood for America Ogden, Utah's second largest city. That abled worker from having his retirement over the years than some official foreign~ year more than 20,000 acres of improved benefits reduced practically to nothing aid projects. agricultural land were damaged and 100 by a long period of unemployment before The World Friendship Fund is foreign acres of residential and business land reaching retirement age. relations on a person-to-person level. in Morgan City were inundated. One In the 84th Congress, we took an even It is. actually a program of human rela­ transcontinental highway was com­ more important forward step by writ­ tions, for scouting recognizes its broth­ pletely washed out in several places ing into the law-over the vigorous erhood in all nations, climes, and regions. and another highway was flooded. Parts opposition of the Eisenhower Adminis-­ Through the World Friendship Fund, of the strategic Ogden railway yards tration, I might say-the provision for American Boy Scouts are afforded the were flooded. inauguration of a new program this opportunity to help brother Scouts in If enacted in time, this measure may coming July of paying : full retirement lands "a thousand leagues away." mean that 1952 will be the last year that benefits under social security beginning The World Friendship Fund began 11 water, mud, rock, and sand will do their at age 50 to workers who are covered by years ago as a continuing effort to help fearful damage in this strategic area. social security but who are, or become, 'less fortunate Scouts in other lands. This measure passed the House and permanently disabled. These boys and their leaders across the Senate in 1956, but had the misfortune Social-security taxes were increased seas have desperately needed things with to be included in the omnibus public­ January 1, for_both employer and em­ which to carry on their scouting activi­ works bill, H. R. 12080. This measure ployee to CQVer the cost of this added ties, and the Cub Scouts, Boy Scouts, and in particular had been approved by all new disability benefits program sched­ Explorer Scouts of the United States­ the executive departments, including the uled to go into operation in July. through the World Friendship Fund­ Bureau of the Budget, but many other But from what I have seen of the op­ have supplied them. projects which had not been investigated eration of the disability freeze provision The World Friendship Fund works and approved were included in the of the 1954 law, I am very much afraid through the nickels, dimes, quarters, and omnibus bill, which,. after passage by that very few deserving workers are going dollars contributed by our Scouts. These the Congress, was vetoed by the Presi­ to benefit from the disability program contributions in warmhearted torrents dent. unless Congress launches an investiga­ have sent thousands of handbooks and In general terms, the bill authorizes tion of present administrative policies badges to war-torn islands, completely the recommendations of the Corps of and cracks down hard. outfitted a troop on a lonely island .in Engineers for flood control in this area. For instance, it has been my under­ the Bering Sea, shipped hundreds of It will provide for channel improve­ standing that when a disabled worker uniforms to the struggling young Scout ments, low levees, rock revetments to who loses his job because of disability, movement in Korea, sent tons of needed prevent channel erosion, and the use of applies for a "freeze" of his work record camping equipment to South America, certain dams new in being as fiood­ in order to protect his future benefits, to Hong Kong, to Liberia--and much, control checks, as well as other improve­ the social security administration almost muchmore. . ments recommended by the Engineers. invariably turns down the application on The World Friendship Fund is aster­ The estimated first cost of the chan­ the ground that the wor.ker involved does ling example of the Scout belief in the nel improvements is $635,000, of which not appear to be completely unable to good turn-in this instance, a good turn $500,000 would be provided by the Fed- do any work. It then suggests that the 1957 CONGRESSIONAL RECORD - HOUSE 1609 applicant can file an appeal, but this Passaic from Grand Rapids, Mich., where It WO\lld please us no end to have you visit suggestion is usually made in a form let- . as a young man he had ventured into the us in the House and Senate when you come ter which seems to hold out little hope contracting business on his own. our way. May you have many happy years ahead. of qualifying. August will mark the 60th anniversary Very sincerely, DOES IT MEAN COMPLETELY PARALYZED ONLY? of the organization of the Union Build­ H. ALEXANDER SMITH; CLIFFORD P. CASE; I have looked into this matter at the ing & Construction Corp., of which he CHARLES A. WOLVERTON; ROBERT W. request of some of _the disabled people was president for 42 years. February 8 KEAN; GORDON CANFIELD; JAMES .C. who have gotten in touch with me either marks the 39th anniversary of Mr. Druk­ AUCHINCLOss; FRANK c. OSMERS, Jr.; ker and his associates' assumption of HUGH J. ADDONIZIO; PETER W. RODINO, because they are from Westmoreland ownership and management of the Pas­ Jr.; WILLIAM B. WIDNALL; ALFRED D. County or because they know of my in­ saic Daily Herald. In 1928 they pur­ SIEMINSKI; PETER FRELINGHUYSEN, Jr.; terest in the disabled as the former chair­ chased control of the Passaic Daily News, FRANK THOMPSON, Jr.; VINCENT J. man of the House committee on the and 4 years later merged the two as the DELLAY; FLORENCE P. DWYER. physically handicapped and as the au­ Herald-News. thor of vocational rehabilitation legis­ And now, "Dad" Drukker is looking lation. forward to the later part of 1957 when As I have gone over the standards the Herald-News will move into a new No Tax on Interest Earned on United which the Eisenhower administration building now under construction at Main States Savings Bonds has set up for determining permanent Avenue, Passaic-Clifton. disability, it strikes me that the only type of person who might seem to qualify Mr. Drukker was born in Holland and EXTENSION OF REMARKS is one who is completely paralyzed. Oth­ taken to Grand Rapids in infancy. His OF erwise, the bureaucrats seem to think the grandfather had previously lived in person can do some work even if he can­ Michigan many years. HON. VICTOR L. ANFUSO not qualify for employment anywhere, For 8 years Mr. Drukker served as a OF NEW YORK because of his health. member of the Passaic County Board of IN THE HOUSE OF REPRESENTATIVES Preeholders, serving as director for the It reminds me uf the early days of Wednesday, February 6, 1957 unemployment compensation when the last 4 years of that period. In 1914 he· Republican administration in Pennsyl­ filled the unexpired term of office caused Mr. ANFUSO. Mr. Speaker, I am vania held that a person was not to re­ by the death of Robert G. Bremner in introducing a bill to amend the Internal ceive the benefits if he turned down any the House of Representatives. He served Revenue Code of 1954 to provide that job at all, even though it was a case of full terms in the 64th and 65th Con­ interest received by individuals from a highly skilled industrial worker being gresses and retired from active politics United States savings bonds shall be ex­ offered a job at 25 cents an hour or less. jn 1919. cluded from gross income and therefore A skilled worker who, through accident Two years ago Drukker was invested not be taxable. as an officer in the Order of Orange­ For some time now the United States 'I or illness,- is no longer able to work at the job at which he spent his lifetime, N assau, the highest award the Nether­ Treasury Department has been telling us and in which he is· highly skilled, and lands can grant an American. The in­ that the American people have been re­ who cannot be retrained through voca­ vestiture was by royal decree of Queen deeming more Government defense and tional rehabilitation into some other Juliana, of the Netherlands. savings bonds than are being purchased. skilled employment is, I should think, In making the presentation for the On February 4 of this year, for example, disabled under any fair interpretation of Queen, Baron J. A. de Vos van Steenwijk, Secretary of the Treasury George Hum­ the law. To deny him disability benefits then consul general of the Netherlands phrey reported- that since August 1956 because he could, say, cut out paper dolls in New York, said in part: the American public has cashed $108 mil­ at home, is hardly realistic or reasonable. It is a pleasure to honor someone whose lion more series E and H bonds than they cradle stood in the Netherlands. had bought during the same period. We salute you as a former Congressman of I do not pretend to know the causes for the United States. We salute you as an im­ this situation, as each family un­ migrant from Holland who has made a great doubtedly has valid reasons for redeem­ Dow H. Drukker, Sr. success in business and with your family • • • and are very proud of you and your ing these bonds. In some instances it is EXTENSION OF REMARKS achievements. probably due to the steadily rising cost of OF living which necessitates using family Mr. Drukker has frequently been hon­ savings to meet essential needs. In other HON. GORDON CANFIELD ored by the Boy Scouts of America for instances it may be due to the fact that OF NEW JERSEY his great interest in the scout movement; the interest accruing on these bonds is particularly in relation to the acquisi­ IN THE HOUSE OF REPRESENTATIVES regarded as gross income and is taxable, tion and development of the Drukker which actually reduces the net value of Wednesday, February 6, 1957 Scout Reservation at Camp Aheka, in the bond. In addition, the interest is Mr. CANFIELD. Mr. Speaker, Dow H. Morris County above Towaco. smaller than the current rates paid by Drukker, Sr., "Dad" to those he employs The fallowing letter has been se:it commercial banks on savings. at the Herald-News, Passaic, and the to Mr. Drukker by members of the New As is well known, E bonds still pay only granddaddy of New Jersey publishers, is Jersey congressional delegation: 3 percent interest, but only after they celebrating his 85th birthday. JANUARY 30, 1957. are held by the purchaser for about 10 Mr. Drukker, one of the oldest active Hon. Dow H. DRUKKER, years. If redeemed earlier the interest is publishers in the United States, was born Daytona Beach, Fla. lower. For example, a bond held for 6 months before the old Passaic Daily DEAR MR. DRUKKER: We, of the New Jersey 5 years will yield only 2 ¥:.! percent inter­ Herald-which merged with the Passaic congressional delegation, have just learned est, while the same deposit in a commer­ that you will be observing your 85th birth­ cial bank would yield at least 3 percent Herald in 1932-was established by Orrin day on Thursday, February 7, and we join Vanderhoven. in sending you our felicitations and best and savings and loan associations offer 4 The silver-haired former Congress­ wishes. percent. man is chairman of the board of the Pas­ We are mindful of your many distinguished Millions of Americans are holding all saic Daily News, the company which pub­ services both· in private and public life, the types of savings bonds valued at around lishes the Herald-News of Passaic. latter including your service in the 64th $57 billion, of which about $41 billion Mr. Drukker, who is spending the win­ and 65th Congresses, and we feel it quite are in E and H bonds. This is not only ter months at his home in Daytona proper to salute you as "New Jersey's Senior an important part of the Government's Beach, Fla., is observing his birthday in Congressman." financial structure, but is an extremely a quiet manner surrounded by members While your career has been attended with many successes, we feel certain that. your important savings nest for millions of of his family. greatest pride is in your wonderful family, families. Many of these people are now This will be a year of anniversaries and members of which are carrying out so hon­ wondering what to do with the bonds innovations for Mr. Drukker. It was 60 orably the fine traditions of the Drukker they hold. Inflation has wiped out most years ago that Mr. Drukker arrived in name. of the value of the interest earned on the 1610" CONGRESSIONAL RECORD ·- HOUSE' February 6 bonds while taxes on the interest takes Iberian, published in ·my Congressional_ that it des·erved an open reply, which, the r~st. Up to about 1952 these bonds· District, wrote a very challenging edi­ follows: were maintained at fairly fixed prices,' torial on February 2, 1957, entitled "Time. CONGRESS OF THE UNITED STATES, but since then their value has gone down. To· Write Your Congressman." The edi­ HOUSE OF REPRESENTATIVES, The result has been a growing rate of torial deals with the subject of high1 Washington, D. C., February 6, 1957. bond redemptions or cash-ins in recent budgets and prospects for reducing · Mr. M. A. WOLCOTT, years. In the last 6 months of 1955 re­ taxes. Mr. Wolcott always writes with· Editor, the Daily Iberian, New Iberia, La. demptions of. savings bonds of all types logic and clarity. He does not comment· DEAR RED: I thought so well of your edi­ exceeded the sales of such bonds by $95 very often on problems of this kind, but torial of February 2, entitled "Time To Write million. During the first 6 months of when he speaks it makes sense. I com­ Your Congressman," that I mentioned it on 1956, redemptions exceeded sales by $691 mend the editorial to the thoughtful the floor of the House, as you will see from million. In the last 6 months of 1956, consideration of the entire membership the enclosed CONGRESSIONAL RECORD. $839 million more of savings bonds were of the House. In submitting the administration's budget cashed in than were sold. Unless some­ The article follows: to the Congress this year, the President indi­ cated -that we might want to trim it down. thing is done soon to correct this situa­ TIME To WRITE YoUn CONGRESSMAN This reminded me of the story of Sitting tion, the rate of redemptions ovei: sales: There seems to be a feeling that broadens Bull, which ls a modified form of the Who may go over the $1 billion mark m the every day that big Government spending is Shall Bell the Cat legend. As a condition first 6 months of 1957. getting out of hand, ana that the man who of his release Sitting Bull had to promise If this trend continues, it will mean pays the bills ought to speak his mind. to conform to the ways of the white man. that the United States Treasury will be The enormous size of the new Eisenhower He grunted begrudged approval to every­ forced to make huge outlays of funds to budget is the principal subject of conversa­ thing but when it came to his marital status, finance the growing number of redemp­ tion, not only among Members of Congress, he was inclined to pass the buck. Informed· but gradually the little fellow at the grass­ of the fact that the white man was entitled tions-and that may have its .effects on roots level is getting sick and tired of having to only one wife and reminded that he had our financial structure and our economy. Uncle Sam take off the cream without the 'fiwo, be w~ told that he would have to tell Ways must be found to convince ti:ie taxpayer getting a chance to look at it. one of them to go. To which he replied, .Ariierican public to hold on to these Dismayed conservatives in Congress say it "You tell her." . · bonds and to purchase new ones. The looks as if Ike may be going the way of I think the majority of the people would_ F. D. R.-who in 1932 promised a 25-percent agree that it would be fiscal irresponsibility public must be convinced that they are reduction in expenses and instead-after a profitable as an investm~nt, th~~ they to reduce taxes by going into the red every· few months of economy-turned to spend­ year in the same amount of the tax reduc-· are economically sound, m add1t1on to ing as the secret of political popularity and tion. You are eminently correct in saying· the patriotic duty to purchase such the remedy for all social ills. that the only solution ls lowering of Federal bonds. Perhaps another reason is the . During his 1952 campaign for the Presi­ expenditures followed by tax reductions. . value of these bonds in helping to curb dency General Eisenhower promised that his In view of the heavy demands made upon infiation. By holding· on to them and by. fourth budget--the one now . on the table-­ Congress by different groups in different' purchasing new bonds. excess consul!ler· would bring Federal expenses down to $60 areas throughout the United States for good billion. Instead, it has climbed to $71.8 causes and deserving projects, I would- b~' spending is drawn of! and thus ~he im-. billion, only 3 percent less than Truman's pact of inflation on our economy is much less than frank if I did not say that the prob­ last budget--sent to Congress at the peak lem of lowering the budget and reduction. smaller. , of expenditures for the Korean war. of taxes ls not an easy one. I think that in· The purchase of savings bonds must be If expenditures for highways, social secu­ commenting on foreign aid in your editorial, inade more attractive to the public at. rity, and other items for which special taxes however, you put your finger on at least one large in various ways. One way is to. are levied are included, the Ike budget goes item that can be considered with real hope encourage greater participation in the to $85 billion plus. for savings by the Federal Government. As payroll savings plan through the. pur­ Fiscal experts in Washington point out you know, the Marshall plan was instituted that if Eisenhower's 1952 campaign promises in 1946 to restore the economy of certain chase of savings bonds at regular mter­ were fulfilled, the $12 billion difference vals in factories and shops, through European countries that had been wrecked by, would be equal to an across-the-board per­ the ravages of war. The program was in­ trade unions and other organizati~ns; sonal income-tax cut of just under 30 per­ tended to last for 4 years and when I came and so forth.- It is estimated that some cent. (Estimated revenue in fiscal 1958 from. to Congress I voted for the program for the 7 or 8 million wage and 'salary workers the individual income taxes, $41 billion.) years 1949 and 1950, which was supposed to are at present participating in this plan Taxmen say a reduction of $12 billion be the termlnal ·date. From all the informa­ at their places of work, but with a good would not be difficult if there was the urge tion I was able tO obtain, I came to the to make it. conclusion that by. 1950 the economy of most incentive and better returns this could Ike's foreign-aid proposals· would cost be considerably increased. · · if not all of the European countries had im­ nearly $5 billion. Many Congressmen V':ould proved to the point where -it was at least Perhaps the best way to accomplish like that sum cut by at least $3 Y:i billion, as good if not better. than before. World War this is to make the interest earnings on which would still leave ample provision for II. Accordingly, when the ,same program savings bonds tax-exempt. I would sug­ Nationalist China, South Korea, South Viet­ was renewed under a _different name, about gest we designate the lower or E series as nam, and a few other special situations. 1951 (it is now called the Mutual Security wage earners' bonds and that we make The cost of maintaining ground troops in Administration), I voted against the foreign Western Europe is estimated at 3 or 4 billion economic aid, and I have voted against. it them nontaxable, in order to provide dollars. Western Europe has a larger pop­ such an incentive. It is for this reason every year ever since. Our o~position forces. ulatloli than the United States and should have increased every year, and I am hopeful that I am introducing my bill to exempt provide its own ground defenses, say those that real reduction, if no:t total eliminationi from income taxation the interest re­ Congressmen who would like our oversea('\ of foreign economic aid, will be accomplished ceived on United States savings bonds. commitments limited to token battalions this year. . I believe this may help to reverse the cur-. plus retaliatory Air Force units. I think it was a mistake for the President rent trend and stimulate greater sales of If you believe. the people's earnings should to tack on an economic feature to his Mid­ savings bonds in the future. · · be spent J:>y them rather than by bureauc­ west policy, and the fact that it was pre­ racy; 1f you believe an across-the-board, 30:_ sented on the House side in a single package percent cut ~n all personal income taxes is a and on a take-it-or-leave-it basis made our aesirable goal, why not do some writing? task doubly difficult. As ·it turned out, we Write your Congressman, Representative En.: were not asked to appropriate.new funds but Time To Write Your Congressman WIN E. WILLIS, New House ·Office Building, to transfer unexpended foreign aid funds Washington, D. C., and tell him what you which were provided without my vote last think. · year. Accordingly, desiring very much to EXTENSION OF REMARKS In the absence of any word from you, the' OF express confidence in the President in the taxpaying voter, he is right in assuming you condui;:t of our foreign policy, I voted for the agree with all the spending that is going on. HON. EDWIN E. WILLIS single package resolution. I ho_pe, howe~er, - You can start a revolt agains:t big spending. that the Senate will separate the two issues, OF LOUISIANA and in that case I will vote against the I IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, think that the broad economic,.aid feature even ~though new funds problem of fiscal policy ·should be made Wednesday, February 6,' 1957 are not involved, and I will vote against the subject of intense study and public direct appropriations later on. . Mr. wn.LIS. Mr. Speaker, Mr. M.A. pebate; and for my part I thought that I feel that your editorial has made a real Wolcott, editoi: and publisher of the DailY, the Daily Iberian's editorial was so timel~ contribution· to the debates that will un- 1957 ~CONGRESSIONAL RECORD-· "HOUSE 1611 doubtedly- ensue in the field of fiscal affairs Here ·is ·a glaring example of the double of the President's proposal to- accomplish this and I congratulate you. standard. Sanctions are threatened against purpose would serve as convincing evidence With best wishes, I am j:srael to force her to abandon her struggle .of United States determination to offer posi­ Very sincerely, . against illegal blockade, but no such threat tive cooperation to .the states in this vital EDWIN E. WILLIS, is advanced against Egypt, who continues area desiring to preserve their independence Member of Congress. her blockade in violation of the United Na­ 'against the Communist menace. The vote tions Charter and the armistice agreementS', of the House of Representatives on January and while she openly continues in her state 30, 1957, was an important and most welcome of war with Israel. step forward. An improved atmosphere in For Nasser, our Government offers free the Middle East should, I think, make solu­ Dulles' Reply Raises Serious Doubts legal advice. For Israel, the Secretary offers tions to regional political problems more the threat of sanctions. readily attainable. EXTENSION OF REMARKS Nasser continues to be treated by Mr·. "Sincerely yours, OF Dulles with all the tender solicitude a vet­ "JOHN FOSTER DULLES." eran internationa1 lawyer offers to a way­ HON. EMANUEL CELLER ward and incorrigible client. The text of Mr. Dulles' reply follows: OF NEW YORK The Penn-Texas Corp. IN THE HOUSE OF REPRESENTATIVES - "DEAR MR. CELLER: I have received the let­ ter of January 23, 1957, in which you and Wednesday, February 6, 1957 EXTENSION OF REMARKS a group of your colleagues in the Congress OF Mr. CELLER. Mr. Speaker, under discuss some of the current problems in the Middle East. HON. FRANCIS E. WALTER leave to extend my remarks, I wish to "I am in complete agreement with you and OF PENNSYLVANIA insert in the RECORD a statement rela­ your colleagues on the importance of the tive to the Secretary of State's reply to Suez Canal. Since I have been Secretary of IN THE HOUSE OF REPRESENTATIVES 75 Members of the House who had com­ State there has been no single issue to which Wednesday, February 6, 1957 municated with him on January 23, 1957, I have devoted more time and effort than relative to the crisis in the Middle East: this one. The record of the steps taken by Mr. WALTER. Mr. Speaker, Amer­ the United States Government to reach a ican industry and the American way of I am today making public a letter which .peaceful, just, and equitable Suez settle­ the Secretary of State, John Foster Dulles, life must be protected from unscrupulous ment reveals the strong defense which the practices such as two individuals, namely addressed to 75 Democratic Members of Con­ United States has made of the rights and in­ gress in reply to a communication sent to terests of the international community in Alfons Landa, a Washington attorney, him on January 23. In that original letter this waterway, as established in the Con.:. and David Karr, alias David Katz, a man we stated that the Congress should insist stantinople Convention of 1888. One of who was a. writer for the Daily Worker, on guaranties for free passage of all ship­ these is, of course, the right of free and un­ engage in. These two men, with the help ping through the Suez Canal and the Straits fettered transit. of moneyed Chicago interests, namely, of Tiran before the area is prematurely "The Secretary General of the United Na­ Robert H. Morse, Jr., of Fairbanks, abandoned. tions is now endeavoring to bring about re­ Certain passages are highly debatable. Morse, and his father, have conspired to sumption of the negotiations on a Suez wreck the reputation and progress of a Mr. Dulles reaffirms the views that there Canal regime on the basis of the 6 principles shall be free and open transit through the endorsed by the Security Council on October fiourishing Pennsylvania company. This canal without discrimination and that we 13, 1956. One of these principles is that is the same Fairbanks, Morse whose have made clear to the Government of Egypt there shall be free and open transit through questionable activities were the subject the importance we attach to an early ·con­ the canal without discrimination. We are .of remarks made by Senator STYLE$ clusion of a settlement. I, for one, have giving full support to the Secretary General BRIDGES of New Hampshire. This should seen no evidence that we are exerting any in this task, and have made clear to the influence on Egypt to persuade that Govern­ be no concern, ordinarily, of a Congress­ Government of Egypt the importance we man, except, of course, from the im.­ ment to resume negotiations. On the other attach to the early conclusion of a settle­ hand, Mr. Dulles' hint yesterday that the ment consonant with the six principles. We proper activities aspect of it which may United States might join in Unlted Nations shall continue to press for the resumption of injure job opportunities of workers. sanctions against Israel shows that we are negotiations on this basis. However, these men have willfully set exerting the most reprehensible pressure out to use Government agencies and against that country. "The matter of the Straits of Tiran ls also important. It seems to us that the position­ other public bureaus and the courts to Moreover, I am greatly alarmed by the "ing of units of the United Nations emer­ further their scheme. The scheme is to weakness of the Secretary's position on the gency force in this area, as suggested by Mr. Straits of Tiran. While this Government parade. falsely as a so-called committee Hammarskjold in his report of January 25, representing the stockholders of one supports the positioning of units of the 1957, would be of a constructive step. The United Nations emergency force in this area, company while actually serving interests problem of whether th~ straits are interna­ as Mr. Dulles states in his letter, the vague _tional or territorial waters is one which per­ diametrically opposed. In short it is the and meaningless resolution sponsored by haps could be determined by the Interna­ practice of a shocking fraud on the Ambassador Lodge at the U. N. has already public. been watered away by Egypt's veto. But ·uonal court of Justice. The important thing more significant, why does Mr. Dulles make at the present is to take measures to insure Landa, as a lawyer, should know better. the suggestion that the problem of free ·that developments in this area do not lead But as you look at his past history you passage through the Straits of Tiran could to the resumption of hostilities. Here I will see that he has already established be determined by the International Court would observe that the continued presence a record of activity in seeking to disrupt of Justice, since that Court has already ruled of Israeli forces on Egyptian soil, in contra­ companies. Now he has attempted to do in the Corfu case upon the preeminence of vention of the terms of the General Assem­ bly's resolution of November 2, 1956, and of this by posing as chairman and counsel int!'~national shipping in similar circum­ stances? Moreover, since freedom of passage the Assembly's reiterated calls for withdrawal of a so-called stockholders protective through the straits is so vital to all the since then, is making it much more difficult committee for the Penn-Texas Corp. free world, it is amazing that the Secretary for the United Nations and the states which Karr erstwhile has pulled the strings, of State has made this new and dangerous are genuinely interested in the peace and but has no doubt remained hidden be­ concession to Cairo. In his press confer­ .well-being of the Middle East to work for the hind the scenes. The record of Karr's ence yesterday, he has made disclosure that lessening of tensions in the area and the activities shows that when he was not the United States would have to give very solution of such problems as that of the working for the Communists, he was busy serious consideration to any proposed United Straits of Tiran. Nations sanctions against Israel to force the "It seems to me that the implementation working for the Nazis. withdrawal of her troops. by all parties of the pertinent recommenda­ This time the Landa activities have That statement is another monumental tions in Mr. Hammarskjold's report of Jan­ been more brazen. He first publicly an­ blunder. It will surely encourage the Soviet ·uary 25, 1957, would be a means of insuring nounced his sole unselfish interest in and Arab blocs to pressure for economic ·against a return to the conditions which ob­ the welfare of the Penn-Texas stockhold­ sanctions against Israel to force her to re­ tained on Qctober 29, 1956. We hope that ers. When he organized the so-called treat fr_om Sinai and permit Egypt to rein­ the substance of the report will be approved Penn-Texas protective committee, nei­ -state the blockade of Tiran. It is now likely by the General ·Assembly. that Egypt will resume that blockade 1! "I was gratified to note in your comments ther he nor Karr owned any stock in the Israel withdraws and that resumption will on the need for the United States Govern­ company. They did get hold of one little be justified by citing· Mr. Dulles' suggestion 'ment to take effective measures to strengthen disgruntled ex-Penn-Texas employee that the issue be determined by the Inter­ ·the Middle East against the threat of Com­ who did own shares of stock, of a grand national Court of Justice. munist aggression. Congressional approval total of exactly two shares. Then Landa CllI--102 1612 CONGRESSIONAL RECORD - SENATE February 7 bought some shares and he published in cooperation of the International Rescue and libel been exposed? Why has not the newspaper that the stockholders' Committee and the President's Commit­ the SEC held Landa as a lawyer to the protective committ_ee was formed, never tee. Now the strange counterpart of this standard of conduct that all practi­ saying a word about Karr, who was the activity is that Karr, masquerading tioners at the bar should observe and moving-spirit behind it. No mention was mercenaries of the Robert Morses, have which its own rules require? Perhaps made that Robert H. Morse, Jr., presi­ attempted to discredit him by slanders it is because the Commission has not dent of Fairbanks, Morse & Co., was the and libels carried to Silberstein's fellow been alerted to the situation. But there financial angel backing the committee. workers and officers of the International is no excuse now. The full and complete Landa kept him hidden behind the Rescue Committee. history of the real facts are available to scenes, so as to conceal the real purpose Again I must state, as a Congressman, them. A full public hearing of the mat­ of the plot. why I touch on this subject, and this is ter should be ordered at once. .what a threat this is to. American in­ another important reason. Landa and It is my sincere belief that Karr long dustry to have Karr, a writer for the Karr, in their conspiracy, have gone to since should have been eliminated from Communist organ, the Daily Worker, and the New York Stock Exchange and at­ any consideration as a public relations Landa, attempting to stir up dissension tempted to have delisted and removed man to be trusted. Long since he has among the stockholders of a prosperous from trading on that exchange the stock shown a record of serving both sides. Pennsylvania company. And backed by of Fairbanks, Morse in which Penn­ He can little qualify as the sponsor and the pursestrings of the Morses. This Texas has a stake in excess of $21 million. creator of any sort of protective commit­ company, Penn-Texas, is engaged in Frustrated-there, they now have descend­ tee, much less for such a successful and serious defense business. It employs 12,- ed upon the Government agencies and progressive company as Penn-Texas. 000 good Americans. It has over 30,000 have maliciously inspired investigation As to Landa, the SEC should see that stockholders. Landa, himself as a plain­ by Senate and congressional committees. he is barred from practice before them tiff, goes into the courts of Pennsylvania This so-called stockholders' protective or participation in committees of any to sue. He bought the stock in order committee of Karr and Landa, backed sort dealing with publicly held securi­ that he could sue. He financed the suit by Morse, must now have the immediate ties altogether. Robert H. Morse, Jr., with the help of Fairbanks, Morse money. attention of the SEC. It should concern also has much to answer. He used these He brought his co-plaintiff in with him. itself with the fraud and illegal con­ two persons as tools. Silently he has fur­ And all for what purpose? To seek to spiracy in which its principals, disclosed nished them money. America cannot have the courts of Pennsylvania stop the and undisclosed, are involved. Such a grow strong on this type of domestic sub­ Penn-Texas Corp. from increasing its committee must qualify by filing a true version. This is un-American in the real capital, when only by such means it has account of its makeup, personnel, and sense of the word. Any committee for beeh able to grow from a small struggling other. factors. Such filings must be the protection of American stockholders company less than 6 years ago to a com­ carefully scrutinized by the SEC. Has must be straightforward and honest. It pany which today is one of the 400.largest such scrutiny been made here, and if it cannot .masquerade and sail under false industrial corporations in the Nation. has, why has that agency not brought .colors: I believe something must be done Leopold D. Silberstein, the head of to light the character of Landa and Karr immediately to see that this present Penn-Texas, is a great humanitarian. posing as defenders of Penn-Texas stock­ fraud is stopped and that it shall not Most recently he aided in the resettle­ holders, whereas they are actually and in occur again.' A company like Penn­ ment of Hungarian refugees and offered fact paid mercenaries of Robert H. Texas Corp-_ , which we are mighty proud job opportunities to l,QOO of these Hun­ Morse, Jr., thereby deceiving the public of in the Commonwealth of Pennsyl­ garian fighters for freedom who fled as to their true interests and purpose? vania, must be protected and safe­ Soviet oppression in their own .land. Why have not Landa's activities and .guarded against Communist infiltration This· has been made possible with the Karr's activities in their field of slander and _brigand plots of this type.

lasting peace among the nations. Bless MESSAGES FROM THE PRESIDENT SENATE the distinguished Vice President, the Messages in writing from the President Cabinet, this illustrious body of Sena­ THURSDAY, FEBRUARY 7, 1957 of the United States were communicated tors, and all others who work for the good to the Senate by Mr. Miller, one of his of our Nation. Fill each of them with secretaries. Rev. James P. Wesberry, D. D., pastor, Thy holy spirit, that they may walk Morningside Baptist Church, Atlanta, humbly before Thee, seeking ever to know Ga., offered the following prayer: and do Thy will and to govern o·ur Na­ REPORT or SURGEON GENERAL OF Almighty and most merciful God, our tion according to the laws of Thy king­ THE PUBLIC HEALTH SERVICE-­ Father, whose wise and loving providence dom. And in the words of our great MESSAGE FROM THE PRESIDENT hast made us citizens of a great land, we leader, "May the light of freedom, com­ (H~ DOC. NO. 21) . give Thee humble thanks for the mul­ ing to all darkened lands, flame brightly The VICE PRESIDENT laid before the titude of tender and gracious blessings until at last the darkness is no more." Senate the fallowing message from the which Thou hast lavished upon us. Thou Give to us the able mind, the large President of the United States, which was hast truly favored us and given us a large heart, the magnanimous spirit, the far read, and, with the accompanying re­ and strategic place of leadership among vision, the strong hand, and true wisdom .port, ref erred to the Committee on Labor the galaxy of nations. Grateful as we to follow Thy counsel. May all that we and Public Welfare: are for our blessings, we are ·not unmind­ are, all that we have, and all that we To the Congress of the United States: ful of our responsibilities. We confess ever hope to be, be dedicated to Thee as Pursuant to the provisions of the that we are not all that we could be. We instruments of blessing for all mankind. Health Research Facilities Act of 1956, humbly ask Thee to forgive both our in­ Grant to all who bear the burdens and I transmit herewith for the information dividual and national sins, and make us responsibilities of government, patience of the Congress the annual report of the worthy of our reputation as a Christian in tribulation, fervency in spirit, joy in Surgeon General of the Public Health nation. hope, steadfastness of purpose, persist­ Service summarizing the activities of the Look, we beseech Thee, with special ence in righteousness, loyalty in justice, health research facilities program. favor upon our greatly beloved and es­ love in mercy, and efficacy in prayer. DWIGHT · D. EISENHOWER. teemed President. Surely Thou hast Through Jesus Christ, our Lord. Amen. THE WHITE HOUSE, February 6, 1957. brought him to the kingdom for such a time as this. Grant him an abundance of Thy grace, wisdom. and guidance. . As THE JOURNAL REPORT OF ST. LAWRENCE SEA­ he has led our Nation to mighty con-:­ On request of Mr. MANSFIELD, and by WAY DEVELOPMENT ·CORPORA­ quests on fields of battle in times past, unanimous. consent, the Journai of the TION-MESSAGE FROM THE use him now, O God, to bring us to even proceedings of Monday, May 4, 1957, was PRES~DENT (H. DOC. NO. 88) more glorious conquests, yea, even to the approved and its reading was dispensed The VICE PRESIDENT laid before the establishment of a permanent and ever- with. Senate the following message from the