1957 CONGRESSIONAL RECORD - SENATE 1007 (d) To safeguard world peace and security Mr. MORSE. Mr. President, I close by - The motion was agreed to; and (at 4 under the United Nations Charter .pending saying in all sincerity that I have sought o'clock and 45 minutes p. m.) the Senate the conclusion of a peace treaty between today to offer what I consider to be a ·adjourned, the adjournment being, under .Israel and the Arab States the President constructive and affirmative program the order previously entered, until Tues­ should take steps through the United Na­ day, January 29, 1957, at 12 o'clock ·tions and by other means (i) to reduce ten­ which will accomplish the legitimate ob­ sions between Israel and· the Arab States, jectives of the proposal of the President, meridian. (ii) to stabilize their relations and prevent but wil~ provide those checks and restric­ the use or threat of force in violation of tions and modifications which in my NOMINATIONS the Charter, (iii) to resettle the refugees, judgment the perpetuation of a sound (iv) to keep United Nations police forces in­ Executive nominations received by the constitutional system of government in Senate January 25, 1957: terposed between Israel and Egypt to pre­ the clearly requires. vent border clashes and the remilitarization I know there will be strong differences DEPARTMENT OF STATE of the Sinai· peninsula and the Gaza strip, Christian A. Herter, of , to and at critical areas about the Gulf of with the points of view I have expressed this afternoon. . I am fully a ware .of the _be Under Secretary of State, vice Herbert Aqaba to prevent the obstruction of com­ . ~oover, Jr., res~g~ed. merce· and navigation. type of attack that· will be made against ( e) The Pre_sident should concert United me in some quarters for the position I MUNICIPAL COURT FOR TI:IE DISTRICT OF States policy in the Middle East so .far as is have taken. However·, let me make clear COLUMBIA consistent with the purpo~es and principle in closing that I believe Russia would Catherine B. Kelly, of Maryland, to be of the United Nations Charter with the· policy associate judge of the Municipal Court for of other nations of the free world . . When we fear much more the type Of resolution I the District of Columbia' for a terni of 10 invoke the Charter against our allies, we must have proposed than the resolution which years vice Nadine Lane Gallagher, term see that they are protected in their rights has been offered by the President of the expired. under the Charter and international law; United States. SEC. 2. The President is hereby authorized, Mr. President, I ask unanimous con­ when he determines .that such use is impor­ CONFIRMATION tant to the security of the United States, to sent that the resolution submitted by Executive nominations confirmed by use for the purposes of this joint resolution, me as a substitute for the other resolu­ the Senate January 25, 1957: without regard to the provisions of any other tion be referred to the Committees on DIPLOMATIC AND FOREIGN SERVICE law or regulation, not to exceed $200,000,000 Foreign Relations and Armed Services, from any appropriation now available for sitting jointly, now considering the Ellsworth Bunker, of Vermont, to be Am­ carrying out· the provisions of the ~utual bassador Extraordinary and PieJ?-ipotentiary Security Act of 1954, as· amended. This problem. of the United States of America to India, authorization is in addition to other existing The PRESIDING OFFICER (Mr. and to serve concurrently and without addi­ authorizations with respect to the use of MARTIN of Iowa in the chair). Without tional compensation as Ambassador Extraor­ such appropriations. objection, it is so ordered. dinary and Plenipotentiary of the United SEC. 3. The President shall; within the States of America to Nepal. months of January and J"Uly of each year, report to the Congress his action hereunder. SEC. 4. This joint resolution shall expire ADJOURNMENT TO. TUESDAY . WITHDRAWAL when the Congress by a . majority vote of Mr. MORSE. Mr. President, in ac­ Executive nomination withdrawn from both houses shall determine that the peace _cordance wl.th the order previously · en-· . tJ:ie Senate Ja:r.mary 25, .1957: v.nd security of the nations in the Middle East are reasonably assured by international tered, I now niove that the. Senate stand FOREIGN SERVICE OFFICER conditions created by action of the United in adjournment until Tuesday next at William Kelley, of Florida,· for promotion Nations or otherwise. 12 o'clock noon. to cla.Ss 3. - ·

EXTENSIONS- OF REMARKS

Small Business and National Security given this subject now, we can go back to -has ever been made. This particular definl· 1890 to find, in the passage of the Sherman tion has been used not only by the Depart­ Antitrust Act, legislation designed to pre­ ment of Defense but by the Atomic Energy EXTENSION OF REMARKS serve the competitive structure of our econ­ Commission, the General Services Adminis­ OF omy. The question of the position of small tration, and other civilian agencies having a business in our economy is neither new nor procurement function. · HON. LEVERETT SALTONSTALL is it partisan. It is, however, vital. I am informed that the Bureau of Census OF :MASSACHUSETTS The interest in small business which has considers all manufacturing establishments been generated during the past decade has IN THE SENATE OF THE UNITED STATES with less than 100 employees as small, while been based on a very real concern that our the size of distributing firms is determined Friday, January 25, 1957 competitive system is weakening. I would by volume of sales. like this morning to point out where these The Bureau of Internal Revenue in its Mr. SALTONSTALL. Mr. President, I weaknesses have occurred, examine some of statistics on income separates the small ask unanimous consent to have printed the attempts which have been made to help from the large at the figure . of $250,000 of in the CONGRESSIONAL RECORD an address small · business and, finally, to suggest to -total assets. I delivered this tnorning at the Industrial you further steps which should be taken. The Small Business Administration, in its College of the Armed Forces on the sub­ WHAT IS SMALL BUSINESS? financial assistance program, considers man­ ject Small Business and National Secu­ · Let us first delineate the area for discus­ ufacturing concerns as small in relation to rity. sion-what is small business? There have their position within the industry. This has There being no objection, the address been many definitions of small business-the been translated into employment figures so .was ordered to be printed in the RECORD, Defense Department has one, the Bureau of that in some industries a small fl.rm would as follows: Internal Revenue has another for its pur­ have less than 250 employees and in others poses, and the Small Business Administra­ less than 1,000 employees. A small retailer SMALL BUSINESS AND NATIONAL SECURITY tion has still another. is one w.hich has. annual sales of $1 million or (Address of Senator LEVERETT SALTONSTALL, of (The Department of Defense considers for less, while a small wholesaler is one which Massachusetts, before the Industrial Col­ procurement purposes that all firms with has less than $5 million in annual sales.) lege of the Armed Forces, Washington, less than 500 employees, including affiliated, Only this month the Small Business Ad­ D. C., January 25, 1957) are small. This particular definition origi­ ministration in cooperation with m111tary Throughout our Nation's history, small nated in the Selective Service Act of 1940 and civilian procurement agencies promul· independent business units have been recog­ (Public Law 759, 80th Cong.), which stated gated a new definition for procurement pur· nized as a basic and indispensable element that a business enterprise would be deter­ poses. This definition provides that all con­ of our free enterprise system. The inher­ mined to be small business if ( 1) its posi• cerns with under 500 employees can certify ent strength of our industrial life is a direct tion in the .trade or industry was not domi· that they are small. Firms with more than result of the freedom of opportunity for every nant; (Z) the number of employees did not 500 employees may apply for a certificate to citizen, possessed of the necessary energy exceed 500; and (3) it was independently the effect that they are small and, on protest and talent, to strike out for himself, to start owned and operated. I do not believe that a firm with less than 500 employees may his own business. While more attention is under this definition the test of dominance even be declared not to be small business. 1008 CONGRESSIONAL RECORD - SENATE January 25 An examination of congressional and ad­ -some of the problems confronting this type J>Ossible be done to encourage subcontracting ministrative definitions of small business re­ of company today. These characteristics are, ·to small business concerns. There has been veals two important things. First, that Con­ in part, the basis for many of the difficulties a tendency, however, for many prime manu­ gress cannot and should not attempt to leg­ encountered by small business concerns. facturers with Government-furnished equip­ islate a specific detailed definition. Legis­ Small business is subject to greater fluctu­ ment to retract work which had formerly lation can only establish the broad criteria ·ation in its profit rates. This characteristic -been performed by independent small busi­ upon which a definition can be made. Sec­ also makes it difficult for a small business to ness concerns. As a matter of fact, current ondly, any definition of small business must accumulate long-term investment to put renegotiation procedures do not encourage be flexible, with particular consideration giv­ back into the· firm, thus making frequent subcontracting. I believe the entire subcon­ en to nondominance within a partinular in­ borrowing necessary. Outside investment is .tracting program within particular industries dustry and independence of ownership and discouraged. would bear intensive study. For instance operation. While small firms have the advantage of we should determine what duplicate facili­ The most important thing is to understand great flexibility in varying their operations, ties have been established by prime con­ the problem of small business. Our aim is to they are also hampered by lack of specialized tractors, what relative costs are between use maintain a vigorous competitive system with knowledge on the part of management in of Government-furnished equipment and in­ -unlimited opportunity to establish new en­ comparison to larger firms. ermit full fense on research and development work. Small business was less able to compete for competition. I have constantly worked to Here then, is a specific area of procurement scarce materials and for skilled labor or to try to get procurement agencies to seek ad­ which presents -a · challenge to Government expand plant facilities. ditional sources of supply among small procurement officers . . It should not take Larger business, with greater physical re­ business concerns. much effort to expand the small business s~urces, and abundance of engineering skills Our committee has continually recom­ share of research and development con­ anel financial resources, caused procurement mended that negotiation be reduced in as tracts-an objective, I feel certain, which officers to award the vast major-ity of prime many instances as possible and that adver­ is both desirable and obtainable. contracts to larger firms. tised procurement become the rule rather The construction of productive facilities The military agencies and other agencies than the exception. Admittedly, there are of the executive are constantly making plans with Federal funds and the abandonment of billions of dollars worth of procurement competitive bidding in the awarding of for the mobilization of the Nation's pro­ which may not be susceptible to perform­ contracts are procedures which certainly ductive resources. It is most important that ance by small business concerns acting as violate our concepts of free enterprise, even such plans provide for the greatest use of the though they may wen have been necessary prime contractors. This is perhaps particu­ small business potential. They must pro­ in time of war. These procedures acted larly true today in the age of electronics and vide for equitable allocation of scarce ma­ against the interests of small business. guided missiles. In such instances the role terials, machine tools, manpower, with seri­ small business must perform is that of a ous consideration given to the impact of THE CHARACTERISTICS OF SMALL BUSINESS first or second tier subcontractor. any controls which will be considered neces­ I should like to discuss some of the char­ It is necessary, with a weapons system sary. Consideration must also be given to acter istics of the small business concern and concept of procurement, that everything the need for financial assistance and tax 1957 CONGRESSIONAL RECORD - SENATE 1009 benefits. Above an, these plans must be emergency .dictates that contracting officers others have all provided that small business formulated well in advance. In both World and procurement officials exercise great care must receive a fair share of Government War II and the Korean conflict, considera­ and judgment in awarding, wherever possible, contracts. Congress has not legislated, nor tion for the particular needs of small busi­ contracts to small companies, everi though does it seem advisable to do so, what is to ness came too late to prevent damage to we may have a greater degree of confidenc~ be considered a fair share of Government their competitive position in the economy. in the larger and tested ones. Every effort contracts. The percentage of military net Finally, in regard to procurement, I wish should be made to cooperate with the Small procurement going to small firms has fluctu­ to state most emphatically that the consid­ Business Administration in the latter's effort ated annually between 32 and 16 percent eration which will be given small business to provide new sources of supply. since the end of World War II. It is clear depends not just on the laws enacted by · Two. Contracting officials for the Defense that Congress does believe that every effort Congress, but primarily on the attitudes of Department must bear in mind the inherent must be made to open up and to increase the men who administer these laws~ A con­ limitations of small business to cope with the the small-business share in every type of structive attitude must prevail · from the administrative complexity of G_overnment procurement. highest echelon down, through the con­ contracting. ·We can greatly assist the role Three times Congress has established an tracting officer and the plant inspector. It of small business in our defense picture if agency to deal specifically with the prob­ is most important that al~ in authority un­ we keep to the simplest form the amount of lems of small business. During World War derstand the vital and essential role of small administrative and paperwork demanded of II the Smaller War Plants Corporation as­ business in our economy. They must under­ our suppliers. sisted small firms to secure Government con­ stand that small firms require at least equal Three. Defense officials should become tracts and financial assistance. In 1952 as opportunity, free of man-made impediments. thoroughly familiar with and utilize to the an amendment to the Defense Production In such a climate ·they can, with their own maximum extent possible the established Act, the Small Defense Plants Administra­ know-how, compete in many instances with small-business set-aside procedures.- These tion was established to assist small firms dur­ much larger concerns and contribute signifi­ are designed not only for the benefit of small ing the Korean emergency. Believing that .cantly to our defense efforts. It is also most 'business but for the benefit of our entire .financial, procurement, technical, and man­ important that every man having a procure­ -Defense Establishment. agerial assistance was necessary in peace­ ment function understand the impact on our Four. Every attention should be given to time as well as during emergencies, Con­ economy of contract awards amounting to the possibility of rendering financial assist­ gress established the Small Business Admin­ billions of dollars a year. ance through established contracting proce­ istration in 1953. TASK BEFORE US

House: Mr. ENGLE, of California; Mr. UDALL~ Mr. O'BRIEN of New York; Mr. DEROUNIAN, of HOUSE· OF REPRESENTATIVES of Arizona; Mr. RHODES, of Arizona. New York. BOARD OF REGENTS OF THE SMITHSONIAN FRANKLIN DELANO ROOSEVELT MEMORIAL MONDAY, JANUARY 28, 1957 INSTITUTION ·CoMMISSION The House met at 12 o'clock noon. Pursuant to the provisions of title 20, sec­ Pursuant to the provisions of Public Law tions 42 and 43, United States Code, the 372, 84th Congress, the Chair appoints as The Chaplain, Rev. Bernard Braskamp, Chair appoints as members of the Board of members of the Franklin Delano Roosevelt D. D., offered the following prayer: Regents of the Smithsonian Institution the Memorial CommiEsion the following mem­ 0 Thou who art the only . source of following members on the part of the House: bers on the part of the House: Mr. McCOR­ wisdom and strength, we thank Thee for Mr. CANNON, of Missouri; Mr. BROOKS of MACK, of Massachusetts; Mr. KEOGH, of New Louisiana; Mr. VORYS, of Ohio. York; Mrs. ST. GEORGE, of New York; Mr. the high privilege of having a part in the SCHENCK, of Ohio. great task of finding the right solution THE NATIONAL HISTORICAL PUBLICATIONS to iife's many perplexing· problems, per­ COMMISSION JOINT CONGRESSIONAL COMMITTEE ON CON­ Pursuant to the provisions of title 44, sec­ STRUCTION OF BUILDING FOR MUSEUM OF sonal and social; local, national, · and tion 393 (a), United States Code, the Chair HISTORY AND TECHNOLOGY FOR THE SMITH• international. appoints as a member of the National His­ SONIAN INSTITUTION Show us how we may break down all torical Publications Commission the gentle­ Pursuant to the provisions of section 4, the manmade walls of partition between man from California, Mr. MILLER. Public Law 106, 84th Congress, the Chair ap­ nations and between the members of the JAMESTOWN-WILLIAMSBURG-YORKTOWN CELE- points as members of the Joint Congressional human family. BRATION COMMISSION Committee on Construction of a Building Grant that everywhere we may· be the f-Or a Museum of History and Technology for Pursuant to the provisions of Public Law the Smithsonian Institution the following channels of Thy gracious spirit, bringing 263, 83d Congress, the Chair· appoints . as faith where there is doubt; hope where members on the part of the House: Mr. CAN­ :i;neml?,ers of the J&.mestown-Williamsburg­ NON of Missouri, Mr. BROOKS of Louisiana, there is despair; love where there is Yorktown Celebration Commission the fol­ Mr. JONES of Alabama, Mr. VORYS of Ohio, hatred; harmony where there is discord; lowing members on the part of the HouEe: Mr. CURTIS of Massachusetts. Mr. ROBESON of Virginia; Mr. POFF, or' Vir­ light where there is darkness, and joy COMMISSION ON GOVERNMENT SECURITY where there is sadness. ginia. Inspire us ·with the unshakable confi­ . THE ALEXANDER HI.MILTON BICENTENNIAL Pursuant to the provisions of section 2, COMMISSION Public Law 304, 84th Congress, the Chair dence that beneath the surface tumult appoints as members of the Commission on Qf the world there runs dee.p and strong Pursuant to the pro.visions of Public .Law Government Security the following mem­ the mighty current of God's eternal and 601, 83d Congress, the Chair appoints as bers on the part of the House: Mr. WALTER, beneficent purpose. members of the Alexander Hamilton Bicen­ of Pennsylvania; Mr. McCULLOCH, of Ohio. tennial Commission the following members Hear us in Christ's name. Amen. And the following from private life: Mr. on the part of the House to serve with him­ James L. Noel, of Texas; Hon. Edwin L. The Journal of the proceedings of self: Mr. ROONEY, cf New York; Mr. RODINO, Mechem, of New Mexico. of New Jersey; Mr. CouDERT, of New York; Thursday, January 24, 1.957, was .read· Mr. REECE, of TenneEsee. COMMITl'EE ON -THE HOUSE RECORDING STUDIO and _approved. . Pursuant to 'the provisions of.' section 105· THE WOODROW WILSON CENTEN~IAL CELEB~A­ (c), Public Law 624, 84th Congress, the Chair TION. COMMISSION . . appoints· as members of the Committee on MESSAGES FROM THE PR·ESIDENT Pursuant to the provisions of Public ·Law the House Recording Studio the following 705, 83d Congress, the Chair appoints as Members of the House: Mr. GARY, of Virginia; Messages in writing from the President members of the Woo'drow Wilson Centennial Mr. EVINS, of Tennessee; Mr. Bow, of Ohio. of the United States were communicated Celebration Commissio1i the following mem­ PRESIDENT'S ADVISORY COMMISSION ON to the House by Mr: Miller, one of his bers on the part of tbe House: Mr. HARRISON, PRESIDENTIAL OFFICE SPACE . secretaries. of Virginia; Mr. FRELINGHUYSEN, of New Pursuant to provisions of section' 2, Jersey. th~ Public Law 954, ·s4th Congress, the Chair THE NATIONAL FOREST RESERVATION appoints as members of the President'~ Ad­ APPOINTMENTS TO BOARDS, COM­ COMMISSION visory Commission on Presidential Office MISSIONS, ETC. Pursuant to the previsions of title 16, sec­ Space the following members on the part The SPEAKER laid before the House tion 513, United States Code, the Chair ap­ of the House: Mr. SMITH of Virginia, Mr. the following appointments to various points as members of the National Forest McGREGOR of Ohio. boards, commissions, and· committees, Reservation Commission the following mem­ bers on the part of the House: Mr. COLMER, which were read by the Clerk: of Mississippi; Mr. BUDGE, of Idaho. FORTY-SECOND ANNUAL REPORT JOINT COMMITTEE ON ATOMIC ENERGY OF THE NATIONAL ADVISORY BOARD OF DIRECTORS OF GALLA UDET COLLEGE Pursuant to the provisions of title 42, sec­ COMMITTEE FOR AERONAUTICS-­ tion 2251, United States Code, the Chair Pursuant to the provisions of section 5, Public 1:>aw 420, 83d Congress, the Chair ap­ MESSAGE FROM THE PRESIDENT appoints as a member of the Joint Commit­ OF THE UNITED STATES tee on Atomic Energy on the part of the points as members of the Board of Directors House to fill the existing vacancy thereon of Gallaudet College the following members The SPEAKER laid before the House the gentleman from Ohio, Mr. JENKINS. on the part of the House: Mr. THORNBERRY, of the following message from the Presi­ Texas; Mrs. DWYER, of New Jersey. MIGRATORY BIRD CONSERVATION COMMISSION dent of the United States, which was Pursuant to the provisions of title 16, THE NATIONAL HISTORIC SITES read, and together with the accompany­ section 715 (a), United States Code, the COMMISSION ing papers, was referred to the Commit­ Chair appoints as members of the Migra­ Pursuant to the provisions of section 2, tee on Armed Services and the Commit­ tory Bird Conservation Commission the fol­ Public Law 75, 84th Congress, the Chair ap­ tee on Interstate and Foreign Commerce: lowing members on the p~rt .of the House: points as a member of the Boston National Mr. KARSTEN, of Missouri; Mr. ANDRESEN, of Historic Sites Commission the following To the Congress of the United States: Minnesota. member on the part of the House: Mr. In compliance with the provisions of O'NEILL, of Massachusetts. JOINT COMMITTEE ON NAVAHO-HOPI INDIAN the act of March 3, 1915, as amended, ADMINISTRATION CENTENNIAL COMMISSION establishing the National Advisory Com­ Pursuant to the provisions of title 25, s~c­ Pursuant to the provisions of Public Law mittee for Aeronautics, I transmit here­ tion 640 (a), United States Code, the Chair 183, 84th Congress, the Chair appoints as with the 42d annual report of the Com­ appoints as members of the Joint Commit­ members of the Theodore Roosevelt Centen­ mittee covering the fiscal year 1956. tee on Navaho-Hopi Indian Administration nial Commission . the follow,ing members on DWIGHT D. EISENHOWER. the following members on the part of the the part of the House to serve with himself: THE WHITE HOUSE, January 28, 1957.