EXTENSIONS OF REMARKS 13395 EXTENSIONS OF REMARKS

WELCH FOOD DAY the Greeley prize by the American Insti­ CHARLES WELCH DEVELOPS THE BUSINESS tute. Dr. Welch's son Charles took over the BULL'S HOME HISTORIC SITE business in 1872 and in 1890 changed the HON. JAMES M. SHANNON Ephraim Bull's cottage and little garden name from "Dr. Welch's Unfermented OF MASSACHUSETTS where the original vine still produces grapes Wine" To "Dr. Welch's Grape Juice." By IN THE HOUSE OF REPRESENTATIVES each year are historic sites to grape growers. then the juice was being sold to drug stores and other outlets. Monday, May 23, 1983 Over the fireplace in Mr. Bull's living room is an inscription which reads: A HIT AT THE CHICAGO WORLD'S FAIR e Mr. SHANNON. Mr. Speaker, today "I confess I did not expect to arrive at so Thousands sampled the grape juice at the has been proclaimed Welch Food Day great success so soon, but when I had the Chicago World's Fair in 1893. Charles by the Governor of Massachusetts, for good fortune to find the Concord among the Welch had a new label adopted, omitting Welch Foods, Inc., has moved its cor­ first crop of seedlings, the thought dawned the "Dr." from before the name Welch's. upon me that perhaps in the far off future porate headquarters and its historic THE COMPANY MOVES TO THE NEW YORK FINGER Concord grapevine back to its origins higher success awaited the cultivator who had the patience to wait. I had almost said, LAKES REGION in Concord, Mass. Ephraim Wales also, the courage to venture, for I was sensi­ In 1896 Dr. Thomas Welch reinvested in Bull, a Concord resident, spent many tive that any attempt to improve the wild the company as a partner with this son, years cultivating his grapevines until grape would be considered an imputation Charles, and they moved the company to he had grown what he considered to upon the judgment and sagacity of the op­ Watkins, New York, in the Finger Lakes be the perfect strain of grape which is erator. Fully aware of this, I kept my own region, where they would have a better now known as the Concord grape. counsel, and if I had not succeeded, nobody supply of grapes. The Welches then began a would have known I had ever ventured." vigorous advertising campaign . . . starting I am glad to see the Concord grape­ with $600. In the over eighty years that vine return to its rightful home in 400,000 TONS ANNUALLY GROWN TODAY IN have followed, Welch advertising has been Concord and have attached for my col­ UNITED STATES an accepted and dramatic part of the Ameri­ leagues attention a history of the Con­ Over 400,000 tons of Concord grapes are can scene because of its imagination and cord grape and Welch Foods. grown annually in five areas of the United good taste. States. The largest of these borders on the In 1897 the Watkins operation was moved GRAPE INDUSTRY TAKES ROOTS IN CONCORD, southern shore of Lake Erie, stretching just to Westfield, New York, so that even fur­ MAss. south of Buffalo, New York, through Erie ther expansion could be accomplished. That Welch Foods Inc., the company responsi­ County, Pennsylvania and into northern first year a plant was built and 300 tons of ble for the American grape juice industry, is Ohio. A smaller growing area borders on the grapes were pressed. A ten-minute blast putting down roots in Concord, Massachu­ Finger Lakes region of New York State. The from the plant whistle traditionally started setts, where the Concord grape was devel­ Yakima Valley in the state of Washington the grape pressing season for the communi­ oped. ranks second in tons produced, followed by ty that now had the Concord grape as its ORIGIN OF THE CONCORD GRAPE Van Buren and Berrien Counties bordering chief agricultural interest. This truly American grape was developed Lake Michigan. Concord grapes are also Dr. Thomas Welch died in 1903 and in the by Ephraim Wales Bull, who has been called grown in northwest Arkansas around next decade the present Westfield, New "the father of the Concord Grape." Bull, Springdale and in the southwest Missouri York, plant was constructed across from the born in Boston on March 4, 1805, purchased area known as the Ozarks. original plant, the general office was built seventeen acres of land near Concord when THE COMPANY KNOWN AS WELCH FOODS INC. in the center of town, another plant was ac­ quired in nearby North East, Pennsylvania, he was a young man. It was next door to Welch Foods Inc. is the world's leading "Wayside," the home of Nathaniel Haw­ and a 4-ounce bottle of grape juice was in­ processor of Concord grape products. The troduced to children all over the United thorne. The farm was ideal for growing company makes this American grape into grapes but the harshness of New England States. Called the "Welch Junior," it sold juices, concentrates, jams and jellies and for ten cents. winters ruined Bull's original crops. Bull de­ drinks. cided to develop his own grape, one that It began with a New Jersey dentist, Dr. WILLIAM JENNINGS BRYAN BOOSTS GRAPE JUICE would withstand severe winters, late frosts The juice had its biggest boost when Sec­ in the spring and early frosts in the fall. Thomas Bramwell Welch, who, in 1869, wondered if the theories of Louis Pasteur retary of State William Jennings Bryan He spent many years perfecting this could be applied to the processing of grapes gave a dinner on April 22, 1913, for James grape, beginning with a wild vine on his to produce an unfermented wine that could Bryce, the retiring British Ambassador. farm which he planted, skins and all. He be used in his church's communion service. Bryan shocked the world by serving Welch's cared for these seedlings for six years and at He and his wife and 17-year-old son picked Grape Juice instead of wine at this full dress the end found one worth keeping. about 40 pounds of Concord grapes near diplomatic function. The newspapers wrote On September 10, 1849 he picked a bunch their home in Vineland, New Jersey; cooked about it for months. Cartoonists lampooned of grapes that suited him in flavor and ap­ the grapes for a few minutes, then squeezed it. And Welch's exploited the situation with pearance. Year after year he planted the the juice through cloth bags into twelve the policy, "every knock is a boost." The seed from his new vine, resulting in, accord­ quart bottles. knocks drove sales higher. ing to Bull: "grapes of great variety, many After sealing the bottles with cork and When Josephus Daniels, Secretary of the of them excellent, if my judgement is to be wax, Dr. Welch lowered them into boiling Navy, forbade the use of alcoholic beverages relied upon. The original wild habit of the water long enough to kill all the yeast orga­ aboard Navy ships, a year later, and substi­ gypsy grape seems to be entirely eliminated, nisms in the juice and prevent fermenta­ tuted Welch's Grape juice, the Navy became and from the original stock, black as night. I tion . . . the same technique used in the known as "Daniel's Grape Juice Navy." have obtained grapes white as the Chasse­ pasteurization of Inilk. Again ... sales rose. las, delicious of texture, and of a most Weeks later, when the bottles were In the next twenty years sales were in­ agreeable flavor." opened, Dr. Welch discovered that he had creased by the "Welch Palace" at the SEEDLING EXHIBITED IN 1853 succeeded in producing a sweet, unferment­ Panama-Pacific Exposition in San Francis­ The new seedling was exhibited before the ed grape juice. co, new product developments, the purchase Massachusetts Horticultural Society in 1853 This unfermented wine, as he called it, of Welch products by the U.S. Army, and and in 1854, placed on the market. The was used in his church and he began proc­ the building of plants in Lawton, Michigan, grapes were called "Concord Grapes" after essing and selling it to churches in Southern and Springdale, Arkansas. Edgar T. Welch, the town of Concord. New Jersey and Southeast Pennsylvania. one of Charles' four sons, became President Horace Greeley called the Concord "The It was the beginning of the fruit juice in­ when Charles died. Soon afterwards the ma­ grape for the millions" and it was awarded dustry. jority of stock was sold to a group of private

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 13396 EXTENSIONS OF REMARKS May 23, 1983 investors in ·Nashville, Tennessee. Edgar setts-Just half a mile from the site where ton Act in 1917. These are the core of became .Chairman of the Board and Paul R. Ephraim Wales Bull planted his first Con­ the antitrust laws. Welch, Charles' eldest son, became Presi- cord vine, over 150 years ago.e In 1922, the Supreme Court ruled dent. that professional baseball was not an THE DEPRESSION TRIBUTE TO SAM TALARICO interstate business and, therefore, was During the Depression years of the 1930's exempt from the antitrust laws. Since and into the 1940's, Concord grape growing and processing declined. Demand for premi­ HON. SHERWOOD L. BOEHLERT then, other pro sports have sought um quality grape juice gave way to the ne­ OF NEW YORK similar antitrust immunity, but the cessity for basic food staples. Vineyards IN THE HOUSE OF REPRESENTATIVES courts have recognized that these were abandoned. Weeds grew where grapes sports are obviously engaged in inter­ should have been. Growers were disspirited. Monday, May 23, 1983 state commerce and are subject to the Prices for grapes paid by processors barely e Mr. BOEHLERT. Mr. Speaker, our antitrust laws. Nonetheless, as recent­ covered production costs. The Welch equip­ entire Nation, and my community es­ ly as 1972, the Supreme Court, while ment became run-down. pecially, suffered a great loss Wednes­ admitting that pro baseball's antitrust And then along came a man of vision. day with the death of a leading figure exemption is an "aberration," has re­ ENTER THE ENTREPRENEUR in American labor, Sam Talarico. fused to overturn its 1922 decision In 1933 J. M. Kaplan, an energetic entre­ Sam was a prime example of the which judicially created pro baseball's preneur from New York City, purchased a antitrust exemption. small winery in Brocton, New York, as a self-made man. Born in Chicago, his means of guaranteeing a supply of wine for father died when he was 2. By age 14, Repeal of pro baseball's exemption, a New York retail store of which he was he was supporting himself. He worked the Supreme Court held, must come president. The plant also had grape process­ in coal mines and cotton mills, and fi­ from Congress. My bill accepts that ing equipment and Kaplan used these facili­ nally ended up at a slaughterhouse in Supreme Court invitation, as well as ties to produce a small amount of juice. Utica. the recommendation made by the The grapes came from five small growers' There, he rose through the ranks House Select Committee on Profes­ cooperatives and North East Fruit Growers and in 1953 founded District Local No. sional Sports in 1977. The Justice De­ in North East, Pennsylvania. Kaplan saw that he could upgrade the financial status 1 of the Amalgamated Meatcutters. partment, during the Ford and Carter of the growers, providing that they man­ The union's members were impressed administrations, endorsed this meas­ aged their own affairs-viticulture-and the with Sam's leadership and in 1976, he ure, and in 1981, during hearings National Grape Corporation controlled was elected secretary-treasurer of the before the House Judiciary Subcom­ management of the processing and market­ international. He retained that post in mittee on Monopolies and Commercial ing. It worked. Within seven years the Broc­ 1979 when the union merged with the Law, Deputy Assistant Attorney Gen­ ton facility doubled in size. The growers re­ retail clerks to form the 1.3-million eral Abbott Lipsky testified that the ceived increased prices for their grapes and member United Food and Commercial Reagan administration Justice Depart­ were guaranteed a minimum before the har­ vest. Workers Union. ment supported my proposal to sub­ Sam's dedicated work on behalf of ject baseball to the same antitrust THE NATIONAL GRAPE COOPERATIVE the workers who had put their trust in laws adhered to by other sports. Mr. ASSOCIATION IS BORN him would be enough to earn our last­ Lipsky said: When the government set a limit on the price producers could pay to growers during ing respect. Principles that are embodied in the anti­ World War II, the six grower cooperatives But Sam did more. He brought his trust laws should apply to sports as they do supplying Kaplan his grapes decided to vision and his tirelessness to work for to every other unregulated sector of our form a single cooperative, encouraged by his community and numerous causes. economy • • • I know of no economic data Kaplan. They approached Kaplan in 1945 to That is why he received such honors or other persuasive justification for continu­ buy the plant and business of the National as the Israel Bond Award and the Con­ ing to treat baseball differently from the Grape Corporation. The growers would su­ other professional team sports, all of which temporary American Award. are now clearly subject to antitrust laws. pervise the growing and Kaplan would Sam's death leaves a profound gap. manage the processing and marketing of We must all carry on his work, in­ Reflecting just how widespread the the finished products. spired by his example.e support for this proposal is, even a Two months later the controlling interest baseball team owner, Ted Turner of in the Welch Grape Juice Company was of­ the Atlanta Braves, spoke in favor of fered for sale. Although he was not interest­ ed at first-Kaplan realized the plants were BASEBALL'S ANTITRUST EXEMP­ my bill last Congress. Mr. Turner told in poor condition-eventually Kaplan real­ TION SHOULD BE REPEALED subcommittee members that he knew ized the potential in Welch for National. of no reason for the sport to be The Welch brand name was well estab­ HON. JOHN F. SEIBERLING exempt from the Nation's antitrust lished-as was the market. Welch had pro­ OF OHIO laws. duction and distribution facilities in five IN THE HOUSE OF REPRESENTATIVES Congress should now adopt that states. same view and repeal baseball's ex­ The sale was set in motion and realized in Monday, May 23, 1983 emption by enacting this legislation. A 1956. Today, this unique arrangement contin­ e Mr. SEIBERLING. Mr. Speaker, I new development makes the need for ues. National Grape Cooperative Associa­ am introducing today the Sports Com­ this legislation even more urgent. The tion has 1,650 members, the plants are petition Act. This bill has a simple major league baseball owners recently modem, Welch Food sales have increased purpose: To bring professional base­ entered into an agreement requiring every year. Growers are consistently paid ball under the antitrust laws to the that all teams maintain an assets-li­ more for their grapes than they ever were same extent that other professional abilities ratio of 60 I 40 or higher. Since from independent processors. team sports are now subject to those liabilities are defined to include salary Jack Kaplan's dream became a unique en­ laws. commitments, this agreement means terprise that serves as a model for coopera­ Competition is central to our most that some franchises will not be able tives. basic social and political values. Our to incur high salary commitments. THE INDUSTRY GOES FULL CIRCLE economic freedom has always depend­ Absent baseball's antitrust exemption, And in May, 1983, the Concord grape in­ ed on the twin concepts of private en­ this agreement, which restricts teams dustry has come full circle. For, today, Welch Foods and the National Grape Coop­ terprise and the decentralization of from competing with each other for erative Association are returning to their economic power, and these require a outstanding and high-salaried players, roots. Welch Foods Inc. is opening its corpo­ healthy, competitive market environ­ would be illegal. rate headquarters in the town where the ment. To maintain this competitive Obviously, the business of profes­ Concord grape was seeded, born and nur­ environment, the Sherman Antitrust sional sports does require some coop­ tured-100 Main Street, Concord, Massachu- Act was enacted in 1890 and the Clay- eration between teams and leagues. In May 23, 1983 EXTENSIONS OF REMARKS 13397 other businesses, such interaction the environment, while enhancing our Hoban High School and as chaplain of might be deemed a per se violation of community for the Olympic Games. the Mountaintop Knights of Colum­ the antitrust laws. Therefore, the Twenty thousand Olympiad rose bus. courts have generally held that chal­ bushes have been donated to public It is an honor, Mr. Speaker, for me lenged practices of the professional gardens, parks, and cities across the to join with the parishioners of St. sports industry should be subject to United States including 7 ,500 in the Jude's, the entire Luzerne County the rule of reason analysis. That city and county of Los Angeles. community and all of his colleagues standard would not be changed by my This joint effort is a credit to Los and brothers in the American Legion, bill as it would relate to baseball. In Angeles and the State of California. I in saluting Father Edward P. Nolan on other words, a court would inquire appreciate having this opportunity to this magnificent occasion and in wish­ into whether the challenged baseball commend everyone involved with the ing him many, many more years of practice has a legitimate business pur­ Olympiad rose project for their impor­ health, happiness, and service to God, pose whose realization serves to pro­ tant contribution to a successful 1984 his country, and his fellow man.e mote competition. If such were Olympics.e deemed to outweigh any anticompeti­ tive effects, the practice would be al­ BAYLOR UNIVERSITY: THE lowed to continue, despite the anti­ REV. EDWARD P. NOLAN, 50TH PLACE TO LEARN AND GROW trust challenge. ANNIVERSARY AS A PRIEST Other pro sports teams beneficially HON. JACK FIELDS coexist with the antitrust laws, and so HON. FRANK HARRISON OF TEXAS can baseball. The beauty of the anti­ OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES trust laws is that they are sufficiently IN THE HOUSE OF REPRESENTATIVES Monday, May 23, 1983 flexible to account for facts peculiar to Monday, May 23, 1983 specific industries, including the pro­ • Mr. FIELDS. Mr. Speaker, many fessional sports industry. If certain of e Mr. HARRISON. Mr. Speaker, on parents and high school students are pro baseball's features or activities Sunday afternoon, June 5, the parish­ engaged in the time-honored experi­ have anticompetitive effects, but on ioners of St. Jude's Parish, in Moun­ ence of selecting the appropriate insti­ balance do more to promote competi­ taintop, will celebrate with their tution for higher education. Numerous tion, then a rational application of the pastor, Rev. Edward P. Nolan, the ju­ publications have recently offered ar­ antitrust laws under the rule of reason bilee of this 50th anniversary as a ticles with information about some of would not disallow such activities. priest. our country's most outstanding univer­ I find it ironic that the sport of base­ Father Nolan was ordained on June sities. I am proud that a persistent ball is based on healthy competitition 10, 1933, in St. Peter's Cathedral in member of this distinguished lineup is on the field while the business of base­ Scranton. He was assigned as assistant my beloved alma mater, Baylor Uni­ ball enjoys monopoly power off the pastor in parishes from Stroudsburg to versity. field. Professional baseball is an ag­ Scranton, until he entered the Chap­ The home of the green and gold is gressive enterprise with the aim of lain Corps of the U.S. Army in April one of the most select of institutions making profits, just like any other big 1942. He served with distinction of higher learning in the country, and business. And just like any other big throughout World War II and was dis­ the oldest university in continuous ex­ business, it should be subject to the charged with the rank of major in No­ istence in the great State of Texas. antitrust laws. Pro baseball team vember 1945. Baylor has the coveted distinction of owners are in a position today to exer­ Upon his return from military serv­ producing "work ready" men and cise unreasonable monopoly powers ice, Father Nolan was named adminis­ women graduates; these are young and the bill I have introduced would, trator of St. Patrick's Church in people fully prepared to take their if enacted, remove this special, unde­ Wilkes-Barre and, thereafter, pastor places in many areas of national life served ability which has been afforded of St. Thomas Church in Elkland. and contribution. professional baseball.• Father Nolan was recalled to active I am personally proud to be both an military duty in January 1952 and, alumni of Baylor University and a upon his discharge, was given one of member of its board of trustees. I en­ OLYMPIAD ROSE CONTRIBU­ those difficult jobs which men like thusiastically recommend Baylor to TION TO 1984 OLYMPICS Father Nolan make look easy. He was the families and friends of my col­ assigned as the first pastor of St. leagues. HON. JULIAN C. DIXON Jude's Church, which did not then I am · pleased to present for the OF CALIFORNIA exist. From a small Catholic communi­ record a recent article about Baylor IN THE HOUSE OF REPRESENTATIVES ty of 70 families, Father Nolan has University written by Gracie Hilton built a parish of 1,300, with two mis­ Monday, May 23, 1983 for the May 1983 issue of Parkway, sion churches of its own, and the larg­ the magazine of north Dallas. Gracie • Mr. DIXON. Mr. Speaker, the city est parochial school in Luzerne Hilton is also a trustee of Baylor. of Los Angeles and those of us in the County. BAYLOR UNIVERSITY: A Goon BUY FOR YOUR 28th Congressional District have the Father Nolan has been active in the MONEY honor to host the 1984 Olympic American Legion for almost three dec­ Games. ades, and his service and dedication Although many believe it was 1974-the This year, the Los Angeles Olympic was recognized by his election as Na­ year the Baylor Bears' surprise defeat of Organizing Committee has designated tional Chaplain in 1967. the Texas Longhorns led to Baylor's first the Olympiad, a beautiful hybrid tea Mr. Speaker, for 50 years, Rev. Southwest Conference football champion­ rose produced by Armstrong Nurseries Edward P. Nolan has served God and ship in 50 years-that enabled the school to of Ontario, Calif., as the official rose man with dedication and distinction. gain national attention, Baylor University of the 1984 Olympic Games. For 30 of those years, he has labored has long been recognized as one of the out­ Armstrong Nurseries, in conjunction with devotion and perseverance to standing major institutions of higher learn­ with the Los Angeles beautiful pro­ build St. Jude's from humble begin­ ing in the country. Baylor is the oldest university in continu­ gram, is graciously providing proceeds nings into an example for all of the ous existence in Texas. During its 138-year from the sale of the Olympiad rose to Diocese of Scranton. In the meantime, history, dating to 1845 during the prestate­ the LAOOC Olympic youth beautifica­ he has served in the Diocesan Senate hood days of the Republic of Texas, about tion program, which gives young of Priests, as a member and former 67,600 have graduated-all under the leader­ people an opportunity to learn about president of the board of Bishop ship of only 10 presidents, including Dr. 13398 EXTENSIONS OF REMARKS May 23, 1983 Herbert H. Reynolds, who assumed the Baylor is different. When I talk to the pro­ referral service as unrelated business reins only two years ago. fessors, they know all about the students. income. Baylor's 350-acre campus adjoins the his­ They sometimes even know the family." The Alameda County Bar Associa­ torically significant Brazos River near Activities outside academia include 150 downtown Waco, where a recreational campus organizations including national tion receives three types of fees from marina provides facilities for a number of fraternities and sororities. Southwest Con­ the operation of its referral service: water spots. The school's more than 55 ference membership provides excitement in First, an annual $15 membership fee buildings, with architectural design ranging all phases of intercollegiate athletic compe­ from attorneys; second, a $15 referral from restored 19th-century complexes to tition. Many students are involved in sports fee from the prospective client-which traditional to modern structures, include through intramural rivalry; still others is often waived, and third, 15 percent world-renowned museum and library collec­ enjoy a myriad of activities at the recrea­ of any contingent fee over $100 which tions. About $4 million in construction and tion marina. renovation projects are under way. Baylor is the largest Baptist university in may be generated as a result of the re­ More than 35 degree programs in 100 the world. But is Baylor only for Baptists? ferral. The IRS does not take issue major areas of study are administered by Decidedly not. Although 59 percent are with the first two fees but states that 500 full-time equivalent faculty members Baptist, the enrollment represents students the portion of any contingent fee re­ with impressive backgrounds from at least from all walks of life, with 35 denomina­ turned to the Alameda County Bar As­ 275 educational institutions throughout the tions and faiths represented. sociation Referral Service constitutes world. In the area of academic freedom, adminis­ unrelated business income. Baylor prides itself on producing "work­ tration and faculty are encouraged to en­ ready" graduates. In 1982, job offers for lighten rather than indoctrinate students. In doing so, the service relies on a re­ Baylor's bachelor's degree candidates in­ Baylor is a Texas Baptist institution, not a cently issued private letter ruling creased 7.98 percent over the previous year. seminary. The university's particular minis­ 7952002 competition over the long-run." During Total ...... 90 9 commission also revealed that active partici­ the entire course of its field hearings, the pation by shippers appears to be a function commission was repeatedly informed of The commission's initial finding dealing of firm size and probably is indicative of rampart destructive price competition in the with the historical basis of collective rate­ similar participation behavior by small industry, a condition accelerated by liberal­ making being neither relevant nor needed firms in other areas of business. Failure to ized market entry and the recession. 31 If the relative to antitrust immunity is certainly at participate is also misleading because many commission believes odds with the historical evolution of the rate matters were resolved by traffic or trucking service is homogeneous, it is incon­ concept.14 Any diligent reading of the histo­ trade groups representing small groups of gruent to assert that destructive price com­ ry of collective ratemaking and attendant shippers in the ratemaking process. 24 petition is a short-run problem. Evidence litigation involved in the process over time The commission's sixth finding that the was presented before the commission illus­ reveals the concept evolved and developed Interstate Commerce Commission's author­ trating the pervasiveness of the very condi­ because of the economic characteristics of ity to regulate rates is broad, but limited by tions necessary for creating excess capacity the initiating railroad industry. u A careful poor costing methodology, is somewhat in the industry are important commission in hearings held in Phoenix, community traffic moves in joint-line serv­ and should be carefully considered in collec­ Kansas City, Cambridge, and San Francisco ice provided by potentially competing carri­ tive ratemaking debates. Tests of hypoth­ clearly demonstrated that collective rate­ ers, all necessary arrangements for such eses regarding shippers' p~rceptions of col­ making is designed to prevent these abuses service can be made efficiently and lawfully lective ratemaking over time certainly indi­ that are presently widespread in the indus­ under full application of the antitrust laws." cate that most shippers believe efficiency try. 37 A lacuna has been created in this area Testimony, previous studies, and written was attainable under collective ratemaking. that clearly impacts upon small shippers submission certainly conflict with this find­ It is unfortunate that a needed public and communities evidence of this fact was ing. 44 Carriers are not only reserved con­ commission such as the Motor Carrier Rate­ provided to the Commission at virtually all cerning joint-line rates, but actual freight making Study Commission has issued such a of its public hearings. 38 Even a facile exami­ interchange between major and local carri­ tainted report which is as controversial as nation of rate discounts based on volume ers for service to small communities has de­ the various issues it addresses. Unfortunate­ and any subsequent impact on profits and clined substantially during recent years a ly, future reliance upon commission reports cost differentials between small and large harbinger of future decreases in inter­ as accurate indicators of issues and the in­ shippers supports this particular observa­ change if antitrust immunity is eliminat­ tensity of feelings associated with these tion. 39

FOOTNOTES Motor Carrier Ratemaking Study Commission, Motor Trucking Industry," Transportation Jour­ nal, 1 Cambridge, March 19, 1982. Vol. 21 , No. 4 nancial responsibility, and generally unsatisfactory introduced H.R. 2276, a bill to increase Upon the Motor Carrier Industry and Its Users," service." death benefits to families of police offi­ ICC Practitioners' Journal, Vol. 47, No. 4 CMay­ 34 Consult statement of Paul Roberts, hearing June, 1980), pp. 427-449. before the Motor Carrier Ratemaking Study Com­ cers. This is a tradition Congress can u Grant M. Davis and Charles S. Sherwood, Rate mission, Cambridge, Mass., March 19, 1982. be proud of and this is not a time for Bureaus and Antitrust Conflicts in Transportation: 3 • Consult notes 32 and 33. us to ignore that tradition. Public Policy Issues . "If the situation is as serious as you say it ble. I have cosponsored H.R. 953, the is, we ought to do something really serious." Law Enforcement Officers Protection A LETTER TO CONGRESS: ing the bullet-proof vests now worn by HON. JACK FIELDS "The Marxists are going to win anyway . . . The Salvadoran military is mean ... our police officers. OF TEXAS Police work is one of the noblest of We're piqued at you conservatives for professions. By commemorating Na­ IN THE HOUSE OF REPRESENTATIVES having supported the dictators in Central Monday, May 23, 1983 America all these years, and so it is really tional Police Week, we renew our com­ all your fault." mitment to and admiration for the •Mr. FIELDS. Mr. Speaker, Georgie Well, my friends, I am even more piqued men and women who are our first line Anne Geyer of the Washington Times than you are. Many of us have been begging of defense against crime.e has recently published an open letter the United States to change its policies in May 23, 1983 EXTENSIONS OF REMARKS 13405 Central America since the mid-1960s, when AMENDING THE AGE DISCRIMI­ Unfortunately, the Congress and the change would have been so simple. A de­ NATION IN EMPLOYMENT ACT American people have read in recent pressingly large number of my friends, both days published reports that have cast Central Americans and North Americans, HON. JOHN F. SEIBERLING doubt the administration's willingness gave their lives to try to bring decent re­ to conform either to the letter or the gimes to that area. OF OHIO IN THE HOUSE OF REPRESENTATIVES spirit of the requirements of the As wrong as most of the Reagan people Boland amendment. It is for this were over the years, that is just not enough Monday, May 23, 1983 reason for us now to sit back in anger and reason that 72 Members of the House let the whole area disintegrate. As unpleas­ e Mr. SEIBERLING. Mr. Speaker, I have joined me in sponsoring a resolu­ ant as it is, we have to start where we are am introducing legislation today to tion of inquiry, H.R. 159. This resolu­ and work with what we have. We can't pre­ amend the Age Discrimination in Em­ tion asks the President to provide cer­ dict whether we'll win, but we can certainly ployment Act. tain documents on the conduct of predict what will happen if we do nothing. The only serious controversy sur­ covert operations in Honduras and Can democracies afford to remain passive in rounding the ADEA's enactment in Nicaragua against the Nicaraguan today's world? Again? 1978 was provisions it contained pro­ Government. You see, this is not just another cycle of viding certain exemptions from the The Armed Services and Intelligence history for the United States. This is a point law's protections. The House-passed Committees have reported the resolu­ where history changes once and for all. The bill contained no such exemptions, but tion out unfavorably, under the as­ importance of this moment is that it repre­ the Senate Labor and Human Re­ sumption that the secret session to be sents a profound readjustment for America: a transition from an isolated country that sources Committee added several, in­ held before consideration of H.R. could most of the time stand safely aside cluding one permitting mandatory or 2760-prohibition on covert assistance from the great catastrophes afflicting the forced retirement for high-level busi­ amendment-will suffice. The Foreign rest of mankind to a country as involved ness executives if the corporate pen­ Affairs Committee reported out the and interdependent-and as vulnerable-as sion benefits to which they are enti­ resolution without recommendation all the rest. tled exceed $20,000. The $20,000 was pending the secret session where mem­ In the Middle East, we are now clasped by to be adjusted annually for inflation. bers of the intelligence panel will pro­ the treacherous arms of Byzantium. In Cen­ The conference committee adopted an vide information on covert activities to tral America, we are involved now in the exemption from ADEA protections for their colleagues. I still believe that the quicksand of the Balkans. business executives entitled to more American people deserve more infor­ It is therefore not only a grave moment than $27 ,000 a year in pension bene­ mation from the executive branch on militarily; it is a grave moment for our very fits. Under the act, the $27 ,000 figure CIA activity in and around Nicaragua. being, and it is not enough simply to is not adjusted annually for inflation. I will wait until after the secret ses­ answer, "No." In fact, you're disappointing The legislation I am introducing sion to decide my next step. the public you serve. Please think again. Sincerely yours, today increases the $27 ,000 exemption We took this initial action so that we GEORGIE ANNE GEYER •• to $42,400, reflecting the 57-percent in­ can prevent another administration crease in the Consumer Price Index from engaging in one more "secret since 1978. It also requires the Secre­ little war" against a sovereign nation, MISS MATILDA OLASH tary of Labor to adjust the exemption which would only serve to waste the TESTIMONINAL DINNER limitation annually to reflect changes taxpayers money, exacerbate regional in the CPI. Without this increase and tensions, cause innocent people to be inflation adjustment, more and more killed, and lead to the possible involve­ HON. FRANK HARRISON business executives will lose the pro­ ment of U.S. troops. Mr. Speaker, I OF PENNSYLVANIA tections of the Age Discrimination in now wish to submit the resolution of IN THE HOUSE OF REPRESENTATIVES Employment Act. It is arguable inquiry into the RECORD along with a whether the business-executive ex­ recent article from the Washington Monday, May 23, 1983 emption, or any other exemption, is Post: e Mr. HARRISON. Mr. Speaker, on justifiable at all, but at a minimum, we H. RES. 159 should not permit inflation to erode Saturday evening, June 11, her family, Resolution directing the President to fur­ friends and former students will honor the protections afforded by this im­ nish certain information to the House of Matilda E. Olash at a testimonial portant law.e Representatives with respect to United dinner marking her 50th year of States activities in Honduras and Nicara­ teaching in the elementary schools of COVERT OPERATIONS IN gua Luzerne County, Pa. NICARAGUA Resolved, That the President shall furnish to the House of Representatives within ten Miss Olash began her work in the days after the adoption of this resolution classroom at the age of 18, in 1933, HON. TOM HARKIN the following: this year she will complete a half-cen­ OF IOWA <1) Any documents showing the number of tury of dedication to the students of IN THE HOUSE OF REPRESENTATIVES reconnaissance sorties flown by United our west side communities, now com­ States military and civilian personnel for bined into the Wyoming Valley West Monday, May 23, 1983 military intelligence gathering purposes School District. Over all these years, • Mr. HARKIN. Mr. Speaker, after over Honduras and Nicaragua during the the passage of the amendment of period March 9, 1981, through April 15, she has enlightened and stimulated 1983, including any documents distinguish­ minds of the young just as she has Chairman EDWARD BOLAND by a unani­ ing such sorties by type of aircraft and by guided and assisted in the formulation mous vote of 411 to O during the 97th military and civilian unit designations. of their character. Congress, it was hoped that the ad­ (2) Any documents listing military weap­ There is no calling more noble, Mr. ministration would at long last realize ons and equipment furnished by or on the unwillingness of the American behalf of any agency of the United States to Speaker, than that of teaching the people to support the overthrow of Honduras or any group or individual in young. At this calling, Matilda E. the Nicaraguan Government. Covert Honduras during the period March 9, 1981, Olash has excelled for half a century actions taken by past administrations through April 15, 1983, including- and it is my honor to join today with against foreign governments to cause (A) any documents distinguishing such her many friends and admirers in weapons and equipment by type, their fall have come back to haunt us CB) any documents showing whether the wishing her many, many more years of on numerous occasions. The Boland recipients of such weapons or equipment health and success in all that she un­ amendment serves as a reminder of were Honduran military forces or were dertakes.e past excesses. other groups or individuals, including docu- 13406 EXTENSIONS OF REMARKS May 23, 1983 ments identifying any such groups or indi­ exchanges in Central America? Trying to regional governments. Instead, it authorizes viduals and the weapons or equipment they overthrow the Nicaraguan government? $30 million this year and $50 million next received, and Breaking the law by bankrolling the year for open military assistance, only to any documents showing that any such "contra" guerrillas who used to be Nicara­ governments and only to help them stop military weapons and equipment are no guan National Guardsmen? Helping people military supplies from Cuba and Nicaragua longer in Honduras, including any docu­ shoot their way into office? Little me? from getting to or through their countries. ments showing the disposition of such weap­ Heaven forbid. The participating governments can't move ons and equipment. What, the administration says it's doing is the assistance on to others, nor can they <3> Any documents giving estimates of ci­ trying to stop the flow of anns from Nicara­ conceal its source. vilian and military casualties incurred in gua to El Salvador's guerrillas. This is a While the bill is explicit on the military­ Honduras and Nicaragua during the period little hard to swallow when intense-looking paramilitary side, it does not cover covert November 1, 1982, through April 15, 1983, men in Miami and Honduras explain, on tel­ political actions by the administration. It including any documents identifying mili­ evision, that what they're doing is trying to would still be possible, apparently, to pass tary units engaged in battle and identifying overthrow Nicaragua's government. The il­ money and "advice" to anyone. Is this a locations and times of battle. lusion is further undermined by U.S. offi­ <4> Any documents showing the costs in­ loophole through which the administration cials' continuing public comment that the could continue to hand over cash so that curred by the United States in carrying out Salvadoran guerrillas provide for them­ reconnaissance in or over Honduras and the "contras" or others could simply buy selves largely through purchase or theft what they want from the black market? If Nicaragua during the period March 9, 1981, from their enemies, the Salvadoran govern­ through April 15, 1983. so, harassment, destabilization and efforts ment forces, which we also supply. to overthrow governments could continue (5) Any documents showing the costs in­ The administration doesn't deny instigat­ curred by the United States in furnishing with secret U.S. political aid, unless there ing or paying for its "secret" war. It only are clear prohibitions on political activities. military weapons and equipment, military denies that it is violating the Boland amend­ training and advice, or other material or fi­ While the House leadership is prepared to ment, which forbids any U.S. assistance in move it quickly, the Senate must also act nancial support to Honduras or to any indi­ overthrowing the Nicaraguan government. vidual or group in Honduras during the period But it doesn't make clear how sending foot effect. And it is wise to remember that be­ March 9, 19n, through April 15, 1983. tween passage of legislation cutting off mili­ soldiers across the border from Honduras to tary assistance to Chile and its signing by (6) Any documents showing the names of shoot up rural communities in Nicaragua the military and civilian authorities who ap­ the president, there was wild contract-sign­ will stop the air supply. ing and obligation that kept the pipeline proved the undertaking during the period It is also hard to figure how reconnais­ March 9, 1981, through April 15, 1983, of re­ sance sorties and intelligence gathering by filled and flowing for ye·ars. There should connaissance in or over Honduras or Nicara­ U.S. personnel will stop air shipment of not be a repetition, all these years later, in gua or approved the furnishing during the anns. One thousand photos, a thousand the interval. period March 9, 1981, through April 15, radio intercepts and purloined documents For some reason, the conventional wisdom 1983, of military weapons and equipment to won't ground a single plane, by themselves. on Capitol Hill seems to hold that the Za­ Honduras or to any group or individual in This semi-overt "covert" war is mighty blocki-Boland bill makes the Harkin resolu­ Honduras. tion of inquiry unnecessary and that the an­ (7) Any documents concerning the approv­ murky. All the American people know is that "we" are engaged. That's the overt swers to the questions don't need to be al by military and civilian authorities of the part. The big secret is what is being given, given. It could be that was the price that furnishing of military weapons and equip­ had to be paid to get rid of covert military ment to Honduras or to any individual or to whom, at what cost, for what purpose. Another piece of the secret is who decided assistance. But it might be too high a price group in Honduras and discussing the appli­ if it closes out the questions. cation of the prohibition in section 793 of to take these actions. Perhaps it is part of the Haig legacy. Secretary of State George This bill is a firm step in the necessary di­ the Department of Defense Appropriation rection in spite of its imperfections. And the Act, 1983 . may be more important, in fact, because (8) Any documents concerning the grant­ initiative. There is sufficient leakage around the edges to ascertain that some CIA offi­ until we have the answers to its questions, ing of approval or disapproval of the fur­ other legislative actions, congressional hear­ nishing of military weapons and equipment cials view this undertaking with a jaundiced eye. Maybe the president got the idea from ings and opinions are based on fragments of to any group or individual to be used in or facts in contention. Decisions of the public against Nicaragua, including any documents Reader's Digest. It doesn't seem much to ask of a demo­ and Congress about U.S. policy should be showing the purposes of, or the possible ef­ based on as much real information as they fects of such weapons and equipment, espe­ cratic government: who did it? The president has already put us into two can get. The administration has that infor­ cially any document showing that such mation, and we need to know it.e weapons and equipment were furnished for wars down south. But the polls consistently the purpose of overthrowing the Govern­ demonstrate that they are not supported by ment of Nicaragua or provoking a military the public. Poor people are falling dead exchange between Nicaragua and Honduras; from our bullets and the machete-wielding ON SACRED GROUND and the names of the civilian authorities soldiers U.S. tax dollars underwrite. The Ar­ who gave such approval. gentines have pulled out; Honduras lends its <9> Any documents showing the names of territory; Guatemala is hustling its own HON. PETER H. KOSTMA YER the officials in the executive branch, the case. Who are our allies in this debacle? OF PENNSYLVANIA members of Congress, or any individuals A couple of weeks ago, Rep. Tom Harkin outside the Government, who received in­ and 73 of his colleagues in the House intro­ IN THE HOUSE OF REPRESENTATIVES duced a resolution of inquiry to find out the formation regarding the use of intelli­ Monday, May 23, 1983 gence information gathered from reconnais­ who, where, why and when of administra­ sance in and over Honduras and Nicaragua, tion involvement in Nicaragua. It was re­ e Mr. KOSTMAYER. Mr. Speaker, and the use or disposition of military ferred to three committees-Armed Serv­ last Tuesday, May 17 the voters of weapons and equipment furnished to Hon­ ices, Foreign Affairs and Intelligence. They Bucks County, Pa., overwhelmingly duras or to groups or individuals in Hondu­ must act and report to the House. The reso­ defeated a proposal to construct the ras, including weapons and equipment no lution asks the pertinent questions in this matter. If the House passes it, the president Point Pleasant Pumping Station on longer in the possession of Honduras or the banks of the Delaware River in under the control of the United States. "shall furnish" the answers within 10 days. As Rep. Jim Wright said to one of the the village of Point Pleasant, Pa. [From the Washington Post, May 8, 19831 "contra" leaders last week, "I do not believe The citizens of Bucks County have financing the invasion of another country is A LITTLE INFORMATION, PLEASE once again expressed their determina­ what the United States should be doing." tion to preserve the character of our Reps. Edward Boland and Clement Za­ There is something unnerving about aging blocki have a bill that ought to knock the community. administration officials talking to the press relationship with the "contras" out of the "On Sacred Ground" by Joseph like simpering ing~nues of the 1940s. Wide­ box. It prohibits secret funding of military Chorlton, New Hope, Pa., expresses eyed and guileless, they avow chastity in the and paramilitary groups that want to their sentiments and I am delighted to Nicaraguan adventure. Provoking military harass, destabilize or overthrow any of the enter it into the RECORD today. May 23, 1983 EXTENSIONS OF REMARKS 13407 ON SACRED GROUND would support both "American Con­ with the quality and quantity of re­ No sunshine patriots we, tent" legislation to require a signifi­ sponses, and this year I found it par­ Our ancestors fought to be free, cant percentage of American-made ticularly beneficial to have received so Where Washington crossed the Delaware, parts in automobiles sold in the many well-written personal letters ac­ Our dedication we'll never spare. United States, and quotas to limit for­ companying the questionnaire forms. All this talk about a pump, eign automobile and steel imports to This exercise in public input is per­ This generation has the spunk. the United States. haps one of the most valuable activi­ We decry a loss of liberty, Almost 60 percent of those polled ties I conduct to gage the needs and For which brave men fought to be free. encouraged me to support a nuclear concerns of my constituents. And, Those who shun a referendum freeze resolution on the House floor. March to another patron's drum, often I have found that it is an enrich­ But, by God, we ever swear This margin very closely reflects the ing learning experience, both for them To stop the pump, and spare the Delaware! November 1982 Michigan general elec­ and for me.e -Joe Chorlton, New Hope.e tion ballot results in which 56.6 per­ cent statewide indicated their prefer­ ence for the freeze. Since my poll was NATIONAL POLICE WEEK RESULTS OF RECENT SURVEY taken, the House passed a nuclear freeze resolution with my full support. HON. JAMES V. HANSEN HON. WILLIAM D. FORD I was particularly pleased with my OF UTAH OF MICHIGAN constituents' response to my inquiry IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES about the need for a new Federal pro­ gram in math and science education. Wednesday, May 18, 1983 Monday, May 23, 1983 My constituents have indicated by a e Mr. HANSEN of Utah. Mr. Speaker, •Mr. FORD of Michigan. Mr. Speak­ 63-percent to 36-percent margin that I am honored to pay tribute to our Na­ er, since coming to Congress 19 years they endorse my efforts to help assist tion's brave and dedicated police offi. ago, I have polled my constitutents on local school districts in boosting their cers, who protect our families, who issues pending before Congress and on curriculum and improving teachers' share in our sorrow and grief when critical problems at home and skills in math and science. crime threatens us, and who literally throughout the Nation. I wanted to The lack of support for increased de­ place their own lives on the line for take this opportunity to share with fense spending was reinforced with the security and well-being of all you and my esteemed colleagues the the 15th District residents' belief that Americans. results of my most recent survey. in order to curb the trend in Federal Today, I especially want to pay trib­ In 1983, it comes as no surprise to deficits, the Congress should decrease ute to the American Police Hall of me that the foremost issue on the defense spending. While 70 percent Fame and Museum, the only police minds of residents in the 15th Con­ chose defense as a place to cut, 45 per­ memorial in the country that honors gressional District is jobs. The 68-per­ cent would opt for slashes in human officers killed in the line of duty. It cent positive response I received on services programs. A small percentage was built more than 22 years ago from whether there was support for a Fed­ would prefer a tax increase to elimi­ donations by lawmen and citizens, and eral jobs program reconfirms my deep­ nate the deficit, and a clear majority has honored more than 2,000 officers seated belief that what people want of 71 percent would choose an econom­ who have been killed in our country. most is employment. ic stimulus program. Lawmen are something like the Viet­ Their distress with the Nation's Of the several thousand responding nam veterans who suffered at the economy and its impact on their qual­ to the 1983 questionnaire, the majori­ hands of the media for years. This is a ity of life was also demonstrated in ty of respondents would seek more at­ gross injustice to such a dedicated and their assessment of how they have tention in the Federal budget for aid hard-working group of individuals. fared after 2 years of the administra­ to the elderly, with other priorities God has blessed our Nation with tion's program. Eighty-three percent being jobs programs, education, crime many things, among the greatest of said they are doing "not as well" or control, and energy. As in previous which are our police officers. Let us "about the same," with the clear ma­ years, the program receiving the not forget that they are one of our jority of those, 53 percent, in the "not smallest degree of support was foreign best friends.• as well" category. aid, with only a 3-percent support Still another indication of their con­ rating. When asked to list their own cern for current economic conditions priorities for more funding, my con­ THE BRONX: LIVING, GROWING, in Michigan is their ranking of unem­ stituents suggested that the space pro­ AND VERY MUCH ALIVE ployment as the Nation's most serious gram, mass transit, child abuse pro­ problem. Among five options listed as grams, energy cost control, basic edu­ HON. ROBERT GARCIA the important issues facing our coun­ cation skills, and small business initia­ OF NEW YORK try, more people checked unemploy­ tives should receive more attention. IN THE HOUSE OF REPRESENTATIVES ment than any other item. With 37 Asked about their choice of options percent, it outdistanced taxes at 23 for solving the short-term problems in Monday, May 23, 1983 percent, interests rates at 16 percent, the social security system, there was • Mr. GARCIA. Mr. Speaker, I am en­ energy costs at 15 percent, and nation­ no clear favorite among the five op­ tering in the RECORD an article which al defense at 8 percent. tions presented. Twenty-four percent appeared in the Washington Post re­ Respondents reconfirmed their dis­ would slightly reduce the rate of garding the continuing vitality of the approval of the administration's as­ growth of benefit payments and tie Bronx. This article is indicative of sault on human needs programs in benefit payments to a wage increase many articles exclaiming the virtues that, by a more than 2-to-1 margin, instead of consumer price increases. A of the Bronx. The interesting thing is they rejected proposed and ongoing significantly smaller group would that these articles are extolling what plans to cut such programs as public gradually raise the retirement age for people in the Bronx have been saying health, medical research, and child im­ full benefits, tax social security pay­ for a long time, the Bronx is a thriv­ munization. Only 32 percent of those ments above a certain level, and/or in­ ing, growing community. returning their surveys would cut fur­ crease the contribution rate by 1 or 2 Despite some negative publicity, the ther into human services programs. percent over the next few years. facts are, that the Bronx has turned As an important new policy initia­ The number of constituents who re­ the corner. We who live there are tive, overwhelming majorities sponded to my questionnaire contin­ proud of what is happening in the way throughout my congressional district ues to grow each year. I am gratified of community involvement to rebuild 13408 EXTENSIONS OF REMARKS May 23, 1983 our neighborhoods. In this regard, the now," he said. "I run around there every There are other signs of hope and a will to article in the Post represents only the day, and I still feel terrible." endure in the six-story apartment building tip of the iceberg. Neighborhood Each afternoon, Venerando Velilla and his that stands behind the two new houses. groups, local government, and the pri­ wife, Sara, and their friend Victor Colon­ Its 38 tenants held on when the others all custodial workers at P.S. 98, the nearby were fleeing. They rallied behind Harlem­ vate sector have made a comitment to junior high-spin daydreams about Char­ bom great grandmother Alice Myers, 73, and the Bronx that will mean jobs, pros­ lotte Gardens. painted in huge black letters on one side of perity, and the rebirth of many neigh­ "We've already chosen our spots," said the building their message to the world: borhoods we remember as children. Colon, 26, a father of four who lives in a Last Hope. As indicated in the article, there is a West Bronx apartment. "I'm on the Finally, last December, they were able to new hope emerging in the Bronx that comer." buy their building for $9,750. Now, the Last is guiding the hopes and dreams of us Velilla, 56, pointed to a pair of trees hold­ Hope is undergoing renovation, and the ten­ who live and care about maintaining a ing on in the rubble. "See those two trees? ants have chosen a new name: New Hope. sense of community. We want ours between those two trees." He Alice Myers has seen it all, the glory days smiled at his wife. "She wants to keep them, and the destruction. "I saw it go down to The article follows: but I told her no; they're too old already." the dogs," Myers said. "But now it's going to [From the Washington Post, May 11, 19831 He and his wife emigrated to the South come back up."e SOUTH BRONX FINDS HOPE IN TWO HOMES Bronx in 1946, among the Hispanics and blacks who followed the earlier immigrants from Ireland, Italy and Eastern Europe. NEW YoRK.-There they are: two new, pre­ DEDICATION OF THE LEONIDAS "It was a better future," Mrs. Velilla, 56, S. EPPS GYMNASIUM-A TRIB­ fabricated, ranch-style houses, with alumi­ said. "I love this neighborhood. We were num siding and picture windows, standing in married here-in 1948. All my kids were UTE TO A FINE ATHLETE AND the South Bronx rubble. born here." SCHOLAR So begins Charlotte Gardens, a 90-home There is constant activity at the houses. development that will center on Charlotte Peter Bray gives tours to urban planners, HON. WYCHE FOWLER, JR. Street, the devastated site that brought politicians and reporters. visits from two presidents, Jimmy Carter He ticks off facts and statistics: Mayor Ed OF GEORGIA and Ronald Reagan. Koch spent his early childhood a few blocks IN THE HOUSE OF REPRESENTATIVES Carter promised to help revive the South away. The nearby elementary school-P.S. Monday, May 23, 1983 Bronx. But it was the nonprofit South 61-has the highest reading scores in the Bronx Development Organization CSBDO), district Call but five of the students at the e Mr. FOWLER. Mr. Speaker, it is a along with a group of indomitable citizen ac­ school come from families on welfare>. The special pleasure for me today to pay tivists known as the Mid-Bronx Despera­ South Bronx still has 450,000 residents. tribute to Coach Leonidas S. Epps, a does, who brought about Charlotte Gar­ A regular visitor in Genevieve Brooks, ex­ dens. man who has dedicated 34 years of ecutive director of the Mid-Bronx Despera­ service to Georgia's and the Nation's "The South Bronx is experiencing a resur­ does. rection, a resurgence, a renaissance," said "We were desperate for housing, health youth. I am privileged to bring this Peter Bray, Charlotte Gardens project man­ care, education, everything," she said. "So man's achievements to the attention ager. "The houses are a part of that story." we called ourselves the Desperadoes-Span­ of my colleagues. Financed with federal, state and local ish, to give it a little zing. Then people Coach Epps has combined his superb funds, the houses were built in Berwick, Pa., thought we were revolutionaries, and we 34 year coaching career with academic and trucked in. The asking price: $4 7 ,800 for had to live down our image." three bedrooms, 11/z baths; $6,000 extra for a excellence and community service. Con Edison hooked up the electricity re­ Following Coach Epps graduate educa­ basement; 10 percent down, no subsidies. cently. One of the workers, who said he long With their cathedral ceilings, custom since had left the Bronx for an upstate New tion at Indiana University and a suc­ kitchen cabinets and washer-dryer hookups, York town 51 miles away, surveyed the des­ cessful career at Gilbert Academy in they look much like the suburban homes olation around the houses. New Orleans, he came to Clark Col­ that thousands fled the city for, a decade or "You ever been to Germany?" he asked. lege in Atlanta in 1949 as head basket­ so ago. But they also come with burglar "That's what it looks like-a bombed-out ball coach and assistant football bars, alarm systems and deadbolt locks. city. It makes me feel sad when I look at coach. In addition to coaching basket­ From the front windows, you can see Cro­ this area. I'll tell you: It was a great place to tona Park, the young ones on the swings, ball, he coached track, football, golf, live. They had nice trees and grass. They and tennis. In all sports, Coach Epps the old ones under the oaks. even had a beautiful pool-Crotona Pool. There have been 800 prospective buyers, They had all kinds of baseball fields." has produced championships. according to Bray. Most are working class But to him, the South Bronx is past, and In 1977, Coach Epps resigned as bas­ Bronxites or former Bronxites who remem­ 90 new houses on 15 acres won't bring it ketball coach and he now serves as as­ ber a South Bronx that was filled with life. back. "My total opinion? The Bronx is sociate professor of education and ath­ They come by and remember the stickball shot." games, the comer drug store and the letic director at Clark College. Among But Otha Mitchell sees a new beginning. his many honors, Coach Epps was one movies, and the factory jobs that gave immi­ A 50-year-old butcher, he lives with is wife grants a chance. and five children in a city housing project in of the first inductees of the Atlanta The Bronx, with its beautiful Art Deco Manhattan. He drove out after work one University Center's Hall of Fame. buildings lining the Grand Concourse-an day to look at Charlotte Gardens, where he Clark College, in designating the Le­ avenue fashioned after the Champs Ely­ dreams of buying his first house. onidas S. Epps gymnasium, honors and sees-was then a place of aspirations. Fifty "I've been paying rent all my life," he recognizes a man of considerable years ago, it was called a city without a said. "I should've had one of these a long achievement and sensitivity to the slum. Today it has 50,000 abandoned hous­ time ago. I was raised in the South. I never ing units. needs of others. Leonidas Epps makes had a break. A lot of my buddies have all Atlantans and Georgians extremely Charles Doherty moved away 19 years houses like these." ago, but returns for his job as a bus me­ Sociologists offer many explanations for proud.• chanic. On his lunch hour he runs through the ruin of the South Bronx-the unem­ deserted streets where once he played. Stop­ ployment and poverty that became a way of ping to catch his breath one recent after­ life in the 1960s when 600,000 manufactur­ BUSINESS EXECUTIVES FOR NA­ noon, he said "I grew up here. This was a ing jobs were lost: landlords who stopped TIONAL SECURITY OPPOSE MX fine Jewish community." caring; drugs; decisions by well-meaning but He pointed out the landmarks of his child­ misguided planners in Washington. HON. BILL GREEN hood in Crotona Park. "You could rent But the people who come to look at the boats there. And over there you could sit on houses and reminisce, and perhaps imagine OF NEW YORK a bench till 1 a.m. and never worry. See a future in one of them, seem mystified IN THE HOUSE OF REPRESENTATIVES those rocks-I used to make out with my about the reasons for the area's decline. Monday, May 23, 1983 girlfriend on those rocks. I played stickball "Damned if I know," said Willie Home, 63, in the street, basketball in the park." a retired city worker who moved to the • Mr. GREEN. Mr. Speaker, I recent­ His family's house, Just a few blocks away, neighborhood from North Carolina in 1939, ly received a letter from Business Ex­ was destroyed by fire. "It's a vacant lot "It just got burned out, burned up." ecutives for National Security, Inc. May 23, 1983 EXTENSIONS OF REMARKS 13409 , S. Bank will continue and they must Rep. William L. Dickinson . S. share major responsibility for that rs E~~~~ ::::::::::::::::::::::::::::::::::::: 1 ! Rep. Ronnie G. Flippo CD>. S&L. ------Rep. Richard C. Shelby . S. melancholy and dangerous fact. Their Grand total...... 37 19 56 actions-or rather lack of action-at a ALASKA crucial time places them in a histori­ Sen. Frank H. Murkowski . S. EAGLE SCOUTS Sen. Theodore F. Stevens CR>. S&L. cally tragic and morally unjustified SENATE position.e ARIZONA Mark Andrews, N. Dak. . Lloyd Bentsen, Tex. . Sen. Barry Goldwater . S. Rep. John S. McCain III CR), S. THE 98TH CONGRESSIONAL Bill Bradley, N.J. . Thad Cochran, Miss. . Rep. Eldon D. Rudd . S. SCOUTING SURVEY Chic Hecht, Nev. . Rep. Morris K. Udall . S&L. Richard Lugar, Ind. . ARKANSAS HON. BARBER B. CONABLE, JR. Sam Nunn, Ga. . Sen. Dale Bumpers . S. OF NEW YORK Warren Rudman, N.H. CR>. Sen. David H. Pryor . S. IN THE HOUSE OF REPRESENTATIVES REPRESENTATIVES Rep. Bill Alexander , S. Rep. Beryl F. Anthony, Jr. CD), S. Monday, May 23, 1983 Gary Ackerman, N.Y. . Bill Alexander, Ark. . Rep. Ed Bethune CR>. S. e Mr. CONABLE. Mr. Speaker, during Ike Andrews, N.C. . Rep. John P. Hammerschmidt . S&L. each of the past eight Congresses, the Doug Barnard, Jr., Ga. . CALIFORNIA Members of the House and Senate Charles Bennett, Fla. CD>. Sen. Alan Cranston . S. have been surveyed by the Boy Scouts John Bryant, Tex. CD>. Rep. Robert E. Badham . S&L. of America to determine their partici­ Bob Carr, Mich. . Rep. Anthony C. Beilenson CD), S. pation in scouting, either as scouts Barber B. Conable, Jr., N.Y. CR>. Rep. Howard L. Berman CD>. S. Jim Cooper, Tenn. . Rep. Douglas H. Bosco , S. during their youth, or as leaders. William Dannemeyer, Calif. . This year I was asked to survey the Rep. Eugene A. Chappie . S. Hal Daub, Nebr. CR>. Rep. Willian E. Dannemeyer . S&L. Members and the information has now John Duncan, Tenn. . Rep. Ronald V. Dellums . S. been compiled. I thank my colleagues Don Fuqua, Fla. . Rep. Julian C. Dixon CD), S. for their participation and coopera­ Richard Gephardt, Mo. . Rep. David Drier . S. tion. I am placing the results of the Dennis Hertel, Mich. (D). Rep. Mervyn M. Dymally . S. Dan Marriott, Utah CR>. survey in the RECORD, so they will be Rep. Don Edwards . S. available to Members and others with John Murtha, Pa. . Rep. Vic Fazio CD>. S. James R. Olin, Va. CD). Rep. Duncan L. Hunter . S. an interest in scouting. Charles Pashayan, Jr., Calif. CR). I am pleased to report that the per­ Rep. Robert J. Lagomarsino . S. William Patman, Tex. . Rep. Tom Lantos . S. centage of Members who have partici­ Donald Pease, Ohio . Rep. Richard H. Lehman . S. pated in scouting has increased by 1 Claude Pepper, Fla. CD>. Rep. Jerry Lewis CR>, S. percent since the 97th Congress, con­ J. J. . S. tinuing a welcome increasing trend. Jim Rowland, Ga. CD). Rep. Robert T. Matsui CD), S. The percentage of Members who Eldon Rudd, Ariz. . Rep. Alfred A. McCandless . S. have participated in scouting stands at Richard Schulze, Pa. . Rep. George Miller . S. Philip Sharp, Ind. (D). Rep. Norman Y. Mineta CD), S&L. 66 percent for the 98th Congress. The Ike Skelton, Mo. CD>. 353 Members who have participated Rep. Ronald C. Packard . S&L. Christopher Smith, N.J. CR>. Rep. Leon E. Panetta . S. are an increase over the 348 Members Robert F. Smith, Oreg. . Rep. Charles Pashayan, Jr. . S. of the 97th Congress. Totals include Larry Winn, Jr., Kans. CR>. Rep. Jerry M. Patterson . S&L. 279 Members of the House and 74 Gus Yatron, Pa. . Rep. Edward R. Roybal . S. Members of the Senate. SILVER BUFFALO Rep. Norman D. Shumway CR), S&L. There is one more Eagle Scout in SENATORS Rep. Fortney H. Stark CD), S. the 98th Congress than in the 97th. William Cohen, Maine . Rep. William M. Thomas CR>, S. The House lost 7 Eagle Scouts from Sam Nunn, Ga. . Rep. Esteban E. Torres . S. the 97th Congress, but gained seven Malcolm Wallop, Wyo. CR). Rep. E~win V. W. Zschau CR>, S&L. new Eagle Scouts. The Senate gained COLORADO one new Eagle Scout. SILVER BEAVER Sen. William L. Armstrong . S. The results of the survey follow: SENATORS Rep. Hank Brown CR), S&L. John Glenn, Ohio . Rep. Kenneth B. Kramer . S. 98TH CONGRESSIONAL SCOUTING SURVEY Mark Hatfield, Oreg. . Rep. Raymond P. Kogovsek , S. Sam Nunn, Ga. . Rep. Dan Schaefer , S. Malcolm Wallop, Wyo. . Rep. Patricia Schroeder , S. s!ri~ Senators Total REPRESENTATIVES Rep. Timothy E. Wirth (D), S. Scout ...... 194 51 245 Floyd Spence, S.C. CR>. CONNECTICUT Scout and leader...... 72 19 91 Larry Winn, Jr., Kans. . leader only...... 13 4 17 Sen. Christopher J. Dodd CD), S. ------George Wortley, N.Y. . Sen. Lowell P. Weicker, Jr. . S. Grand total...... 279 74 353 Rep. Stewart B. McKinney CR>. S. SILVER ANTELOPE Rep. Bruce A. Morrison . S. SENATORS Percentage of Members who participated Wendell Ford, Ky. . DELAWARE in scouting: 66 percent. Sen. Joseph R. Biden, Jr. . S&L. Percentage of Representatives who par­ Mark Hatfield, Oreg. CR>. Sam Nunn, Ga. . Sen. William V. Roth, Jr. . L. ticipated in scouting: 64 percent. Rep. Thomas R. Carper . S. Percentage of Senators who participated Malcolm Wallop, Wyo. . in scouting: 74 percent. REPRESENTATIVES FLORIDA Percentage of Members in 97th Congress Duncan Hunter, Calif. . Sen. Lawton Chiles . S&L. who participated in scouting: 65 percent. George Wortley, N.Y. . Rep. Charles E. Bennett , S&L. May 23, 1983 EXTENSIONS OF REMARKS 13413 Rep. Michael Bilirakis CR>. S&L. MAINE NEW MEXICO Rep. Bill Chappell, Jr. CD>, S. Sen. William S. Cohen CR>. S. Sen. Jeff Bingaman CD), S. Rep. Dante B. Fascell CD>. S. MARYLAND Rep. Manuel Lujan, Jr. CR>, S&L. Rep. Don Fuqua CD), S&L. Rep. Joe Skeen CR>, S. Rep. Sam M. Gibbons CD>, S. Sen. Charles McC. Mathias CR>. S. Rep. Earl Hutto CD>. L. Sen. Paul S. Sarbanes CD), S. NEW YORK Rep. Andy Ireland CD), S. Rep. Michael D. Barnes CD>. S. Sen. Alfonse M. D' Amato . S. Rep. Thomas F. Lewis CR>. S. Rep. Marjorie S. Holt CR>. S&L. Sen. Daniel P. Moynihan CD), S. Rep. Connie Mack 3rd CR), S&L. Rep. Clarence D. Long , S. Rep. Gary Ackerman CD), S&L. Rep. Claude Pepper CD>, S&L. MASSACHUSETTS Rep. Sherwood L. Boehlert CR>. S&L. Rep. Clay Shaw CR>. S. Sen. Paul E. Tsongas CD), S. Rep. William Carney CR), S&L. Rep. Lawrence J. Smith CD), S. Rep. Brian J. Donnelly CD>. S. Rep. Barber B. Conable, Jr. CR), S&L. Rep. C. W. Bill Young CR), S. Rep. Barney Frank CD), S. Rep. Thomas J. Downey CD>. S. Rep. Geraldine Anne Ferraro CD>. S. GEORGIA Rep. Edward J. Markey CD), S. Rep. Hamilton Fish, Jr. . L. Sen. Mack Mattingly . L. Rep. John Joseph Moakley CD), S. Rep. Thomas P. O'Neill, Jr. CD), S&L. Rep. Benjamin A. Gilman CR>, S. Sen. Sam Nunn CD), S. Rep. Frank Horton CR), S&L. Rep. Doug Barnard, Jr. CD>. S. Rep. James M. Shannon CD), S. Rep. Gerry E. Studds CD), S. Rep. Jack Kemp CR>, S. Rep. Newt Gingrich CR), S. Rep. Norman F. Lent CR>. S. Rep. Charles Hatcher CD>. S. MICHIGAN Rep. Stanley Lundine CD), S. Rep. Edgar L. Jenkins CD>, S. Sen. Donald W. Riegle, Jr. CD>. S&L. Rep. Raymond J. McGrath CR), S. Rep. Elliott H. Levitas cm. s. Rep. David E. Bonior CD), S. Rep. Matthew F. McHugh CD), S. Rep. Larry McDonald CD>. S. Rep. William S. Broomfield CR), S&L. Rep. Robert J. Mrazek CD), S. Rep. J. Roy Rowland CD), S&L. Rep. Bob Carr CD), S. Rep. Charles E. Schumer CD), S. HAWAII Rep. Robert W. Davis . S. Rep. Gerald B. Solomon CR), L. Sen. Spark M. Matsunaga CD), S. Rep. John D. Dingell CD), S&L. Rep. Samual S. Stratton CD), S. Rep. Cecil Heftel CD), S. Rep. William D. Ford CD>, S. Rep. Edolphus Towns CD>, L. Rep. Dennis M. Hertel CD), S. IDAHO Rep. Theodore S. Weiss CD), S. Rep. Dale E. Kildee CD>. L. Rep. George Wortley CR>. S&L. Sen. James A. McClure CR>, S. Rep. Carl Duane Pursell . S&L. NORTH CAROLINA Rep. Larry Craig CR>. S. Rep. Harold S. Sawyer CR), S. Rep. George Hansen , S&L. Rep. Mark Siljander CR>. S. Sen. John P. East CR), S. ILLINOIS Rep. Howard E. Wolpe CD>. S. Sen. Jesse Helms CR), S. Rep. Ike Andrews CD>. L. Sen. Alan J. Dixon CD), S. MINNESOTA Rep. James T. Broyhill CR>, S. Sen. Charles H. Percy CR), S. Sen. Rudy Boschwitz, CR), S. Rep. James G. Martin CR), S. Rep. Frank Annunzio CD>. L. Sen. David F. Durenberger . S&L. Rep. Stephen L. Neal CD>. S. Rep. Daniel B. Crane CR), S. Rep. Bill Frenzel, . S. Rep. Philip M. Crane CR), S. Rep. Tim Valentine CD>. S&L. Rep. James L. Oberstar CD>. S. NORTH DAKOTA Rep. Richard J. Durbin CD>. S. Rep. Bruce F. Vento CD), L. Rep. John N. Erlenborn CR), S. Rep. Vin Weber CR), S. Sen. Mark Andrews . S. Rep. Lane A. Evans CD>. S. Rep. Gerry Sikorski CD>. S. Sen. Quentin N. Burdick CD), S&L. Rep. Edward R. Madigan CR), S. Rep. Byron L. Dorgan CD), S. MISSISSIPPI Rep. Lynn Martin CR), S . . OHIO Rep. John Edward Porter CR>. S. Sen. Thad Cochran CR), S&L. Rep. Paul Simon CD), S. Rep. William W. Franklin CR>. S. Sen. John Glenn CD), S&L. Rep. Sidney R. Yates CD), S. Rep. Trent Lott CR), S. Rep. Michael DeWine CR), S. Rep. G.V. , S. Rep. Edward F. Feighan CD>. S. INDIANA Rep. Tony P. Hall CD), S. Sen. Richard G. Lugar CR>. S. MISSOURI Rep. Thomas N. Kindness , L. Sen. Dan Quayle CR), S. Rep. William L. Clay CD), S. Rep. Delbert L. Latta CR), S. Rep. Danny L. Burton CR), S. Rep. Richard A. Gephardt CD), S&L. Rep. Bob McEwen . S. Rep. Dan R. Coats CR>. S. Rep. Ike Skelton CD), S&L. Rep. Clarence E. Miller CR), S. Rep. Lee H. Hamilton CD), S. Rep. Harold L. Volkmer CD>. S&L. Rep. Michael G. Oxley CR), S&L. Rep. Elwood Hillis CR), S. Rep. Robert A. Young CD), S. Rep. Donald J. Pease CD>. S. Rep. Andrew Jacobs, Jr. CD>. S&L. Rep. Louis Stokes CD>. S&L. Rep. Frank Mccloskey CD>. S. MONTANA Rep. Lyle Williams CR), S. Rep. Philip Sharp (D), S. Rep. Max Baucus CD>. S. Rep. Chalmers P. Wylie CR), S&L. Rep. Pat Williams CD), S. IOWA OKLAHOMA Sen. Charles E. Grassley CR), S. NEBRASKA Sen. David L. Boren CD>. S. Sen. Roger W. Jepsen CR>. L. Sen. J. James Exon CD>. S&L. Rep. Mickey Edwards CR), S. Rep. Berkley Bedell CD), S&L. Rep. Doug Bereuter CR>. S. Rep. Glenn English CD>, S. Rep. Cooper Evans CR), S&L. Rep. Hal Daub CR), S&L. Rep. James R. Jones CD>, S. Rep. Jim Leach CR>, S. Rep. Wesley W. Watkins CD), S. Rep. Neal Smith CD), L. NEVADA OREGON KANSAS Sen. Chic Hecht CR), S&L. Sen. Paul Laxalt . S. Sen. Mark 0. Hatfield CR>, S&L. Sen. Bob Dole CR>. S. Rep. Harry M. Reid CD), L. Sen. Bob Packwood . S. Rep. Dan Glickman CD), S. Rep. Barbara F. Vucanovich CR>, L. Rep. Les Aucoin , S. Rep. Pat Roberts CR), S. Rep. Denny Smith CR>. S. Rep. Bob Whittaker CR), S&L. NEW HAMPSHIRE Rep. Robert F. Smith CR), S. Rep. Larry Winn, Jr. CR), S&L. Sen. Gordon J. Humphrey CR), S. PENNSYLVANIA KENTUCKY Sen. Warren Rudman «R>. S. Rep. William F. Clinger, Jr. CR), S. Sen. Wendell H. Ford CD>. L. Rep. Norman E. D'Amours CD), S&L. Rep. Judd Gregg CR>. S. Rep. Lawrence Coughlin CR>. S. Sen. Walter , S. Rep. Harold . S. Rep. M. G. Snyder CR>, S. Rep. James A. Courter CR>. S. Rep. William F. Goodling CR), S&L. LOUISIANA Rep. James J. Florio CD), S. Rep. Joseph M. McDade CR>, S. Sen. J. Bennett Johnston CD>. S. Rep. Frank J. Guarini CD), S. Rep. Austin J. Murphy CD), S&L. Rep. John B. Breaux CD>, S. Rep. James J. Howard CD>. S. Rep. John P. Murtha CD>, S&L. Rep. Corinne C. . S. Rep. William J. Hughes CD), S&L. Rep. Don Ritter . S. Rep. Thomas J. Huckaby CD), S&L. Rep. Peter W. Rodino, Jr. CD), S&L. Rep. Richard T. Schulze CR), S&L. Rep. Robert L. Livingston CR), S&L. Rep. Christopher H. Smith CR>, S. Rep. E.G. . S. Rep. W. Henson Moore . S&L. Rep. Robert G. Torricelli CD>. S. Rep. Doug Walgren CD>, S. 13414 EXTENSIONS OF REMARKS May 23, 1983

Rep. Robert S. Walker . S. Sen. Alan B. Mollohan , S. SECTION-BY-SECTION SUMMARY FOOD STAMP Rep. Gus Yatron , S. Rep. Nick J. Rahall 2nd CD), S&L. AND COMMODITY DISTRIBUTION AMEND­ RHODE ISLAND Rep. Robert E. Wise, Jr. , S&L. MENTS OF 1983 Sen. John H. Chafee , S&L. WISCONSIN TITLE I-REFERENCES TO THE FOOD STAMP ACT Sen. Claiborne Pell . S. OF 1977 Rep. Claudine Schneider . S. Sen. William Proxmire , S. Rep. Robert W. Kastenmeier , S. Unless otherwise provided, all references SOUTH CAROLINA Rep. Jim Moody , S. in this bill are to the Food Stamp Act of Sen. Ernest F. Hollings , S. Rep. Thomas E. Petri , S. 1977. Sen. Strom Thurmond . S&L. Rep. Roby Roth (R), S. TITLE II-FOOD STAMP BUDGETARY REVISIONS Rep. Carroll Campbell, Jr. , S. Rep. Butler Derrick . S&L. WYOMING Section 201-Household definition Rep. Thomas F. Hartnett . S&L. Sen. Alan K. Simpson , S&L. All persons who live under the same roof Rep. Floyd Spence . S&L. Rep. Malcolm Wallop . S. would be considered to be a single house­ Rep. John McK. Spratt . S. Rep. Dick Cheney , S.e hold, with certain exceptions. SOUTH DAKOTA Section 202-Thri,fty food plan adjustments Sen. James Abdnor . S. The amounts of the thrifty food plan Rep. Thomas A. Daschle (D), S. AMENDMENT TO H.R. 1590 would be frozen at the current, October l, TENNESSEE 1982, levels through April 1, 1984. Subse­ quent adjustments will take place on April 1 Sen. Howard H. Baker, Jr. . S. of each year. Rep. William H. Boner . S. HON. E de la GARZA Section 203-Standard/shelter deduction Rep. Marilyn Lloyd Bouquard . S. OF TEXAS Rep. James Cooper ,S. The current standard deduction, excess Rep. John J. Duncan . S. IN THE HOUSE OF REPRESENTATIVES shelter deduction and the combined depend­ Rep. Harold E. Ford (D), S&L. Monday, May 23, 1983 ent care/shelter deduction would be elimi­ Rep. Ed Jones (D), S. nated. Instead a standard/shelter deduction Rep. Donald K. Sundquist CR), S. •Mr. DE LA GARZA. Mr. Speaker, would be available to all households. A sepa­ during the consideration of the bill rate dependent care deduction would be TEXAS available and permanently capped at $115 Sen. Lloyd M. Bentsen (D), S&L. H.R. 1590 it is my intention to offer per month. Sen. John G. Tower . S. the following amendment: Section 204-Standard earnings deduction Rep. Michael A. Andrews , S. the following: "If the President releases all The current 18 percent earned income de­ Rep. Steve Bartlett , S. of the wheat in the food security wheat re­ duction would be replaced by a standard Rep. John W. Bryant . S. serve for the purposes specified in the Food earnings deduction of $75 per month. Rep. E. , S&L. Security Wheat Reserve Act of 1980, to the Section 205-Categorical eligibility for Rep. Martin Frost , S. AFDC participants/simplified benefit Rep. Henry B. Gonzalez . S&L. extent that stocks of wheat acquired by the Rep. Phil Gramm . S. Corporation are not adequate fully to re­ Determinations Rep. Kent R. Hance , S. plenish (as provided in the preceding sen­ This section would provide categorical eli­ Rep. Jack Hightower , S&L. tence> the quantity of wheat from the re­ gibility and simplified benefit determination Rep. Abraham Kazen, Jr. , S. serve used for domestic food programs, the for food stamp households, all of whose Rep. J. Marvin Leath (D), S. Secretary shall, notwithstanding the last members are certified to receive AFDC pay­ Rep. Mickey Leland , S. sentence of section 302(b)(2) of such Act, ments. Rep. Tom Loeffler . S. use funds of the Corporation to acquire Section 206-Work requirements and Rep. Solomon P. Ortiz . S&L. wheat through purchases from producers or community work experience programs Rep. Willam N. Patman , S. in the market to complete such replenish­ This provision would establish greater Rep. Ronald E. Paul , S. ment.".• conformity between the food stamp work re­ Rep. J. J. , S. quirements and those of the AFDC pro­ Rep. Charles W. Stenholm . S. gram. In addition it mandates a nationwide Rep. Charles Wilson, . S. community work experience program Rep. James C. Wright, Jr. S&L. FOOD STAMP AND COMMODITY for the food stamp program. UTAH DISTRIBUTION AMENDMENTS Sen. Jake Garn , S&L. OF 1983 Section 207-State agency liability Sen. Orrin G. Hatch CR), S&L. The error rate sanction and incentive sys­ Rep. James V. Hansen . S&L. tems would be revised to hold states liable Rep. David D. Marriott . S&L. HON. EDWARD R. MADIGAN for the full amount of incorrect issuances over Rep. Howard C. Nielson . S&L. OF ILLINOIS VERMONT three percent. Sen. Patrick J. Leahy , S&L. IN THE HOUSE OF REPRESENTATIVES TITLE III-IMPROVING ADMINISTRATIVE Sen. Robert T. Stafford . S. Monday, May 23, 1983 PROCEDURES FOR THE FOOD STAMP PROGRAM Rep. James M. Jeffords , S&L. Section 301-Clari,fication of student VIRGINIA • Mr. MADIGAN. Mr. Speaker, today eligibility Sen. Paul S. Trible, Jr. . S. I am introducing a bill, on the request This section deletes the income exclusion Sen. John W. Warner . S. of the Secretary of Agriculture, that for students' reimbursements. Current law Rep. Thomas J. Bliley, Jr. . S. amends the Food Stamp Act of 1977. concerning exclusion for education income, Rep. Frederick C. Boucher , S. This bill contains proposals that are to the extent it is used for tuition and man­ Rep. James R. Olin . S&L. designed to: datory fees, remains. Rep. Stanford E. Parris CR), S&L. Section 302-Technical amendment Rep. J. Kenneth Robinson , S&L. Support the President's fiscal year 1984 budget by achieving approxi­ The provision deletes the reference to an WASHINGTON mately $800 million in savings; out-of-date section of the Immigration and Sen. Slade Gorton . S. Nationality ·Act. References to conditional Sen. Henry M. Jackson . S. Improve the administration of the entrant status would be deleted and re­ Rep. Don Bonker , S. food stamp program and restore full placed by references to refugee status. Rep. Rod Chandler , L. authority to Puerto Rico to design its Section 303-Treatment offood stamps Rep. Norman D. Dicks , S. own food assistance program; and, under Federal housing assistance laws Rep. Thomas S. Foley . S. Provide additional administrative Rep. Mike Lowry (0), S. This provision lifts prohibitions against funding for the commodity supple­ considering food stamp benefits as income Rep. Al Swift , S. mental food program. WEST VIRGINIA or resources under Federal housing assist­ A section-by-section summary of the ance programs and against decreasing Fed­ Sen. Robert C. Byrd , S. provisions of this bill follows: eral housing assistance because of the re­ Sen. Jennings Randolph , S&L. ceipt of food stamps. May 23, 1983 EXTENSIONS OF REMARKS 13415 Section 304-Redemption of coupons crimes, repressed and refused emigra­ san Social Security Commission for This provision changes the definition of a tion and subjected to internal exile. providing an outline for a short-term financial institution to include all banks and I believe that this anti-Zionism solution, unfortunately, they did not savings and loan associations, not only those drive launched in the wake of the provide a viable method to close the insured by FDIC or FSLIC. World Conference of Soviet Jewry long-term deficit. Although I am com­ Section 305-Expedited coupon issuance must be unanimously and loudly con­ mitted to the necessity of restoring The time frame in which state agencies demned by the United States. This solvency to the social security system, are required to provide food stamps on an statement and the creation of this I could not in good conscience support expedited basis would be changed from five committee seeks to weaken claims this legislation. calendar days to five working days. about persecution of Jews in the Social security is a vital program for Section 306-lmproved wage matching Soviet Union and to deny the exist­ all Americans, and we must face this This provision corrects erroneous refer­ ence of a Jewish question in the important issue carefully and responsi­ ences to a section of the Internal Revenue U.S.S.R. It is apparent that these ac­ bly if we are to insure future benefits. Code. It also allows state agencies, with USDA approval, to base wage matching pro­ tions are designed to counter and dif­ I believe that H.R. 1900 was merely a cedures on sources of information compara­ fuse the impact of hard and sustained bellwether of higher taxes, unsafe ble to SSA files and state unemployment assaults made at the conference margins of security in the trust funds, records. against Moscow's treatment of Soviet and continued requests for general Section 307-State administration of work Jews. revenue funding down the road. registration and job search We have witnessed many attempts in This bill penalizes those who save, This provision would amend the Act to the past to make the process of apply­ and rewards those who do not, it dis­ identify administration of all work require­ ing to emigrate more difficult and the courages the spouse of a disabled ments as a required state activity and sub­ establishment of this committee has person from earning beyond the ject to the usual funding level. sent a new wave of fear throughout income threshold, thereby causing a Section 308-Stays of retailer/whol£saler Soviet Jews. Many believe that the reduction in benefits, it imposes a disqualifications Anti-Zionist Committee foreshadows a "means test" for social security benefi­ The conditions appellant retail food stores Government-backed drive to persuade ciaries, and it disrupts the historic and wholesale food concerns must meet in Jews waiting for exist visas to with­ parity between the tax treatment of order to obtain judicial stays of administra­ draw their applications and to dis­ employee and employer. tive penalties are changed. suade others from applying. A far-reaching precedent is estab­ Section 309-Repeal of noncash benefit re­ Jewish cultural and religious activ­ lished for the social security system by quirement for Puerto Rico nutrition as­ ism which has become widespread this bill. The "earned right concept," sistance since the early 1970's is the most im­ on which the system was based, is un­ The requirement that food assistance ben­ portant element sustaining the emi­ dermined by a massive infusion of efits in Puerto Rico be issued in a form other than cash, by October l, 1983, would gration drive. The advent of this com­ General Treasury funds through be deleted. mittee suggests that the authorities direct and indirect transfers. The self­ may intend to restrict private Jewish sustaining principle of social security TITLE IV-ADMINISTRATIVE FUNDS FOR THE religious and cultural activities. This is dismantled through the use of these COMMODITY SUPPLEMENTAL FOOD PROGRAM plan reflects a determination to con­ funds, and we have lost any hope of The bonus value of commodities will be in- cluded in determining the administrative tinue to enforce a recent sharp reduc­ returning social security to its proper cost ceiling for the commodity supplemental tion in Jewish emigration. role as a floor of protection. food program. The number of Jews allowed to leave These changes are a dramatic devi­ TITLE V-EFFECTIVE DATE the Soviet Union fell from a 1979 total ation from the discipline of a self-con­ The effective dates for the provisions of of 51,320, to a 1982 total of 2,688. This tained system, which was recognized the bill, except sections 205 and 207, would is a drop of 95 percent in 3 years. In by Franklin Roosevelt as the essential be prescribed by the Secretary, taking into January 1983, only 81 Jews were per­ component in the original design of account the need for orderly implementa­ mitted to emigrate. If this trend con­ the social security program. Make no tion.e tinues throughout this year only mistake, I am totally committed to the about 1,000 Jews will be allowed to necessity of restoring solvency to the leave Russia. social security system upon which so ANTI-ZIONIST COMMITTEE OF The suffering of refuseniks and pris­ many Americans depend. I am not, THE SOVIET PUBLIC oners of conscience cannot be denied however, willing to abdicate my princi­ or buried. The current attempt to in­ ples of responsibility. We owe more to HON. FRANK R. WOLF fluence Soviet Jews and silence the the elderly and to our children and OF VIRGINIA world outcry on their behalf should be their children.• IN THE HOUSE OF REPRESENTATIVES seen for what it is: A propaganda Monday, May 23, 1983 device. I urge Members of Congress to rec­ SOLOMON OUTLINES U.S. • Mr. WOLF. Mr. Speaker, I want to ognize how critical this human rights STAKES IN CENTRAL AMERICA express my serious concern and ada­ situation is and join me in voicing loud mant opposition to the establishment opposition.• of an Anti-Zionist Committee by the HON. GERALD B. H. SOLOMON Soviet Public. This committee was set OF NEW YORK up to mask and conceal discrimination SOCIAL SECURITY IN THE HOUSE OF REPRESENTATIVES against Soviet Jews and the emigra­ tion obstacles they face. HON. BOB McEWEN Monday, May 23, 1983 A handful of Soviet Jews-eight to OF OHIO e Mr. SOLOMON. Mr. Speaker, on be exact-purporting to speak on IN THE HOUSE OF REPRESENTATIVES Wednesday, April 27, 1983, President behalf of Soviet Jews published a Ronald Reagan made an elegant and statement in the Communist newspa­ Monday, May 23, 1983 urgent plea to the Congress and the per Pravda criticizing international Zi­ •Mr. McEWEN. Mr. Speaker, on American people for a bipartisan onism and accusing Israeli and other March 9, we deliberated and cast our effort to rescue the duly elected demo­ Jewish organizations of distorting votes for a proposal that is purported cratic Government of El Salvador. Soviet policies. These persons do not to resolve the short-term and long­ Since then, however, critics have ques­ represent the hundreds of Soviet Jews term shortfall of the Social Security tioned the size of the President's pro­ who have been falsely accused of System. While I commend the Biparti- posed commitment, as well as its value. 13416 EXTENSIONS OF REMARKS May 23, 1983 The Friday, April 29 edition of the continue to live in abject poverty while a Point Pleasant Pumping Station on Albany Times-Union contained an edi­ select few wallow in riches. In addition, in the Delaware. torial that clearly outlines the stakes spite of the recent progress reported on When I introduced H.R. 826, one of involved in Central America, and the human rights, the Salvadorans are still sub­ ject to intimidation and even worse by their the major reasons for my opposition need for American resolve. own government. If the present regime is to to the pumping station was that the The article follows: have any chance to grow to old age, it's people of Bucks County had not been CFrom the Albany

11-059 0-87-31 (Pt. 10) 13418 EXTENSIONS OF REMARKS May 23, 1983 measures which can and should be in­ Indian School theater arts program foundations' grant-making capacity. cluded. has won her State recognition as the Since 1969 the birthrate of new foun­ There are several areas which I rec­ recipient of this year's coveted Mark dations has dropped by two-thirds, and ognize need to be developed and are Medoff Scholarship for the Dramatic the value of foundation assets meas­ being pursued. First, neither this bill Arts. I know that Wilberta Leeann will ured as a percent of GNP has fallen by nor POWDR include any mechanisms gain the special skills she needs to over 40 percent. which would enlist the private sector's reach her goal as a professional ac­ These alarming trends stem largely assistance in preserving valuable wet­ tress when she begins her college from the unfavorable tax rules appli­ lands in the form of new and innova­ career at New Mexico State University cable to lifetime gifts to foundations. tive tax incentives to encourage a this fall. For example, under present law if a landowner or his estate to give or sell Wilberta Leeann will also receive the donor gives stock purchased for $10 qualified property or conservation Acoma Pueblo Scholarship for the and now worth $100 to a public char­ easements. It is also necessary to 1983 academic year. She has been an ity he can deduct $100; if he gives the review the existing Internal Revenue active member of the Acoma Pueblo same appreciated property to a foun­ Code to determine if there are sections community participating in traditional dation he can deduct only a fraction of which presently provide incentives to dances and ceremonies. She was a this amount. Other aspects of current drain wetlands. These should be care­ team leader for the Acoma Pueblo law likewise discourage gifts to foun­ fully examined to determine if their youth recreation program. dations. deletion from the code would be bene­ Mr. Speaker, Wilberta Leeann's These discriminatory tax rules are ficial. many fine personal achievements an unfortunate anachronism. As the Second, while this bill provides for a serve as a shining example and inspi­ legislative history makes clear, enact­ study of the economic and enviromen­ ration to young people in her conu~m­ ment of these restrictions reflected tal impacts of Federal assistance and nity and in the State of New Mexico.e congressional concern that, under the expenditures on the destruction of law as it existed prior to 1969, some wetlands, there may well be types of foundations were not using their re­ expenditures or assistance which could INTRODUCTORY STATEMENT sources actively and exclusively in the be productively prohibited at this FOR CONABLE-SHANNON BILL public interest. However, in 1969 Con­ time, without the need for further TO ENCOURAGE GIVING TO gress addressed these concerns directly study. FOUNDATIONS by subjecting foundations to a compre­ Finally, the protective provisions hensive set of legal restrictions-in­ contained in section 404 of the Clean HON. JAMES M. SHANNON cluding requirements that foundations Water Act are under a concerted OF MASSACHUSETTS make specified annual distributions attack intended to weaken them. Con­ IN THE HOUSE OF REPRESENTATIVES for charitable purposes and comply versely, I believe that these provisions Monday, May 23, 1983 with stringent prohibitions on dealings may well need to be strengthened in with related parties. These rules guar­ order to insure that the protection and e Mr. SHANNON. Mr. Speaker, antee that all funds given to private preservation of wetlands remains a throughout this century foundations foundations will be used for public program of high priority. have played a special and vital role in purposes. Mr. Speaker, I look forward to the responding to the needs of our society. Accordingly, the restrictions on continuing dialog between the admin­ However, present tax law restrictions giving to foundations are no longer istration and my colleagues in the on giving to private foundations are needed and should be repealed. H.R. Congress concerning these vital inter­ eroding foundations' capacity to make 3043 accomplishes this objective by ests. The Subcommittee on Fisheries similar contributions in the future. A making contributions to foundations and Wildlife Conservation and the En­ bill that I introduced on May 18 with deductible on the same basis as gifts to vironment will be scheduling hearings Mr. CONABLE and Mr. GEPHARDT, H.R. other charities. for the latter part of June to discuss 3043, will eliminate these restrictions Mr. Speaker, this bill represents a these and other associated legislative and thus help insure that foundations major step toward insuring the contin­ proposals.• will be able to continue their impor­ ued vitality of foundations and their tant philanthropic work. continued ability to respond to soci­ To appreciate the importance of this ety's ever-changing needs. The bill A TRIBUTE TO WILBERTA bill, one need only consider some of also eliminates four important techni­ LEEANN CHINO the ways in which our lives might be cal problems with the existing private different if foundations did not exist. foundation rules.e HON. BILL RICHARDSON For example, without foundation­ OF NEW MEXICO funded medical research we might well IN THE HOUSE OF REPRESENTATIVES still be living with typhus, malaria, AMERICA IS PAYING FOR hookworm, and a variety of other JAPAN'S DEFENSE Monday, May 23, 1983 major diseases. Without sustained e Mr. RICHARDSON. Mr. Speaker, foundation funding, the thousands of HON. LES ASPIN we can all be proud of the many young black college students who have at­ OF WISCONSIN men and women who have completed tended the colleges served by the IN THE HOUSE OF REPRESENTATIVES their high school educations. During United Negro College Fund might this time of graduations, I want to have been denied an education and the Monday, May 23, 1983 share with my colleagues the story of opportunity for fuller participation in •Mr. ASPIN. Mr. Speaker, each year a special high school student in my American life. Without massive foun­ the Reagan administration asks for district. · dation grants, public television in this large increases for defense. This is fol­ Wilberta Leeann Chino will graduate country might have died in its infancy. lowed by an announcement from from the Santa Fe Indian School in The list of foundation contributions to Tokyo that Japan will increase its de­ my district this week. She will receive our society goes on and on and on. fense spending by an infinitesimal the honor of being named the out­ Without foundations the quality of amount. standing student of the year. our lives would be reduced and the Put succinctly, Americans are paying Wilberta Leeann has earned several justness of our society diminished. for Japan's defense. academic distinctions during her high All who share my belief in the im­ The Japanese decision is quite ra­ school years. Her involvement, inter­ portance of foundations must also tional. Why should it spend more on est, and participation in the Santa Fe share my concern about the decline in defense when it can count on Wash- May 23, 1983 EXTENSIONS OF REMARKS 13419 ington to shoulder the burden alone? Crisis," an 18-m.inute tape produced by the Daytona Beach, Florida. Great balance of Right now, Japan, with the second Volusia Council of Governments ; the University of Michigan; and and civic club showings. Reagan wants to hike that by 25 per­ the University of Southern California at Los SECOND PRIZES, DOCUMENTARY cent over the next 5 years. Angeles. Two Public Service Announce­ ments CPSAs) were cited, and 13 additional "Architecture and Video: Tool of the New The money Japan and other allies Professional"-38:00 is increasing, and there is a high candid advice and support when we prevalence of measles, diphtheria, and polio needed it most. real. It began in 1979 and intensified through 1981, when a group of doctors, because there are no toxoids or vaccines. Mr. Speaker, Nick Stipanovich has nurses, and medical students protested the Malnutrition and skin and intestinal-tract enriched all of our lives and we salute killing and kidnapping of patients and doc­ parasites add to the toll. his many contributions to his commu­ tors in hospitals-sometimes even during The Ministry of Health has suffered a 50 nity. We all realize that the Pitts­ surgery. Retaliation against this group by per cent reduction in its budget during each burgh scene will not be the same with­ death squads, suspected of being govern­ of the past two years and is finding it diffi­ out Nick's day-to-day involvement. We ment forces, was swift and brutal. The cult if not impossible to provide adequate all want to wish Nick the very best in group's members "disappeared," or fled to staff and medical services for the 6,000 beds his retirement and that his many avoid death, or were killed. under its jurisdiction. We visited the only years ahead will be filled with happi­ We came to El Salvador with a list of 20 public maternity hospital in San Salvador, a health workers and scientists who had dis­ facility that has 75 deliveries each day but ness and good health.• appeared in the previous 12 months. Our in­ only 263 beds. The patient turnover is very vestigation revealed that only seven could rapid, but even so, up to three women are be accounted for: four were in prison, two assigned to a single bed. Premature births had been freed, and one was confined to a are common, but none of the bassinets for MEDICAL MISSION REPORT ON mental hospital outside the country. There premature babies is functional. The x-ray EL SALVADOR was no trace of the other 13. Moreover, equipment is obsolete, there is no x-ray film, while in San Salvador we were given docu­ and the pharmacy shelves are thinly sup­ mentation on the disappearance of 20 addi­ plied; the anesthesia equipment is outdated HON. JAMES M. SHANNON tional health workers during 1982. From and unsafe, but it is used for the 5 to 10 ce­ OF MASSACHUSETTS frightened families and colleagues we also sarean sections that are performed daily. IN THE HOUSE OF REPRESENTATIVES learned of a number of other physicians, Dr. Roberto Rivera Martelli, a senior obste­ nurses, and paramedics who had disap­ Monday, May 23, 1983 trician who was our host at the hospital, peared or been killed. Since merely notify­ and a man deeply committed to the care of • Mr. SHANNON. Mr. Speaker, I am ing the Church and independent human­ the poor, was taken from this clinic on Feb­ submitting for the RECORD a special rights groups of a relative's disappearance ruary 10 who have disappeared, been impris­ oned as political prisoners, or fled the coun­ The report follows: 1 The participants were Alfred Gellhorn, M.D., try has depleted the educational establish­ SPECIAL REPORT-MEDICAL MISSION REPORT visiting professor, Harvard School of Public Health; ment. No professors of basic medical science ON EL SALVADOR Robert Lawrence, M.D., director, Department of Medicine, Cambridge Hospital; Kathie McCleskey, remain. All entrances to the National Uni­ Alarmed by reports of the harassment, American Association for the Advancement of Sci­ versity have been sealed for the past two murder, and disappearance of doctors, den­ ence; and Nina Shea, J.D., International League for years, and the principal laboratory building tists, nurses, members of the medical facul- Human Rights. located outside the university grounds has May 23, 1983 EXTENSIONS OF REMARKS 13423 been gutted by the military so that only ex­ nomic assistance. Aid to this war-torn coun­ H.R. 3096, A BILL TO PREVENT terior walls remain. No students have been try should emphasize life-giving sustenance CERTAIN ABUSES INVOLVING admitted since the closing of the university. rather than arms and military equipment.• TAX STRADDLES AND TO PRE­ In the past semester, medical students in the last two years of the six-year course VENT THE AVOIDANCE OF THE have been taught in storefronts and private ACCUMULATED EARNINGS TAX homes by a few intrepid professors, but the THROUGH THE USE OF FOR­ complete absence of equipment, books, med­ EIGN CORPORATIONS ical journals, and demonstration materials THE 25TH ANNIVERSARY OF makes this valiant effort doomed. The dev­ FATHER LUIS CARDOSO astation is both physical and intellectual. HON. FORTNEY H. (PETE) ST ARK OF CALIFORNIA Our group visited two facilities for politi­ cal prisoners that are operated by the Min­ HON. BARNEY FRANK IN THE HOUSE OF REPRESENTATIVES istry of Justice: Ilopango for women and OF MASSACHUSETTS Monday, May 23, 1983 Mariona for men. We were permitted to IN THE HOUSE OF REPRESENTATIVES •Mr. STARK. Mr. Speaker, today, I interview the inmates alone and without am introducing a bill to close certain time restriction. Medical care in the Monday, May 23, 1983 women's prison is provided by a recent grad­ loopholes involving the use of foreign uate of medical school who devotes a few corporations, operating out of tax­ • Mr. FRANK. Mr. Speaker, on June haven countries, as vehicles through hours a week to the prison as just one of his 15, Father Luis Cardoso will celebrate four jobs. Medical records are inadequate which taxpayers funnel U.S. invest­ and incomplete. Prescriptions for medica­ the 25th anniversary of his ordination ments in order to circumvent current tions are usually not available in the prison to the priesthood. Father Cardoso is tax laws. The bill would also close a medical facility, so they are disregarded; if not the only person who will be cele­ loophole involving the use of a domes­ the prisoner is fortunate, her family may brating this anniversary. People tic or foreign corporation to avoid as­ obtain the medicine. In both prisons the po­ throughout southeastern Massachu­ pects of the straddle rules Congress litical prisoners have established their own setts will join in thankfully commemo­ adopted in 1981. health facility using minimal supplies of rating this day, in recognition of the Loopholes in current tax laws permit drugs and first-aid materials. good work that Father Cardoso has taxpayers to defer-and, thereby, min­ Few prisoners have been tried and convict­ performed in his 25 years as a priest. imize-U.S. tax on earnings derived ed. The medical students we saw in Mar­ In particular, his parishoners at Espi­ through a foreign corporation until iona, the men's prison, had been there for rito Santo Church in Fall River will be either those earnings are distributed two years-and others had been there for as expressing their love and respect for as dividends or the taxpayer disposes long as four years-without appearing the man who was thei~ assistant of the shares in the corporation. The before a judge. However, the prisoners told pastor from 1968 to 1976, and who has advantage of using a foreign corpora­ us that they were the lucky ones: They were been their pastor since 1979. tion to defer U.S. tax is considerably alive and probably would not disappear-no enhanced when the corporation is or­ matter that they were being held indefinite­ Shortly, this House will again be de­ ganized in a tax-haven country that ly without due process. bating the subject of immigration. imposes little or no tax on the corpo­ In summary, we found direct and indirect This is an appropriate time to note the ration's earnings. In recent years, evidence of frightful violations of human great contributions that immigrants more and more investment firms have rights, and we found fear among private have made and continue to make to organized foreign corporations in tax­ citizens who feel unprotected in a lawless so­ the economy and the culture of the haven countries solely for the purpose ciety. We found that the health of the of minimizing U.S. tax liability. Where public has suffered, that medical education, United States. Father Cardoso is him­ self an immigrant, born and ordained this practice serves as a means to cir­ medical care, and medical facilities have cumvent recent tax reforms, the advis­ been desperately depressed. How can one ac­ in the Azores. He came to Massachu­ setts shortly after his ordination, and ability of continuing the policy of de­ count for the willful dismantling of the uni­ ferral is called into question. versity, including the imprisonment GENERAL RuLE.-Paragraph <2> of sec­ intent of one of our most recent tax such a corporation, gain attributable tion 1246Cb) of the Internal Revenue Code reforms. For this reason, I urge adop­ of 1954 securities commodities, or iary. The corporations are insulated "CC) any interest (including a futures or source-of-income rule, applicable forward contract or option> in property de­ from U.S. taxation by incorporating solely for purposes of the accumulated scribed in subparagraph CA) or CB), offshore and, although potentially earnings tax. Under this provision, if at a time when 50 percent or more of the liable for tax on U.S. source accumu­ more than 10 percent of a foreign cor­ total combined voting power of all classes of lated earnings, seek to escape that tax poration's earnings and profits is de­ stock entitled to vote, or the total value of through distributions from the subsid­ rived from U.S. sources-or is effec­ all classes of stock, was held directly Corin­ iary to the parent corporation in tively connected with a U.S. trade or directly through applying paragraphs C2) whose hands the earnings become business-then any dividends distrib­ and (3) of section 958Ca) and paragraph (4) nontaxable foreign-source dividends. uted from such a corporation-directly of section 318Ca)) by United States persons The deal is structured so that the in­ or through one or more other enti­ Cas defined in section 7701Ca)C30))." vestors will not be subject to tax until ties-to a U.S.-owned foreign corpora­ Cb) EFFECTIVE DATE.-The amendment they dispose of their stock and then, if made by subsection Ca) shall apply to sales tion will be treated as from U.S. and exchanges Cand distributions) on or the long-term capital gain holding sources. For purposes of this provision, after May 23, 1983, in taxable years ending period requirements are satisfied, will the term "U.S.-owned foreign corpora­ on or after such date. pay tax at a maximum capital gain tax tion" is defined as any foreign corpo­ SEC. 2. TREATMENT OF CERTAIN DISTRIBUTIONS rate of only 20 percent. If successful, ration 50 percent or more of the stock RECEIVED BY U.S. OWNED FOREIGN this scheme results not only in defer­ of which is owned-directly or indi­ CORPORATIONS. ral of tax but in taxation of gain from rectly-by U.S. persons. Under this Ca) GENERAL RULE.-Section 535 of the In­ futures trading at a maximum 20-per­ provision, which will apply to distribu­ ternal Revenue Code of 1954 (defining accu­ cent rate, rather than the 32-percent tions received on or after May 23, mulated taxable income) is amended by rate prescribed in 1981 for taxpayers will adding at the end thereof the following new 1983, it no longer be possible to subsection: who engage in such futures trading di­ avoid the accumulated earnings tax by "(d) INCOME DISTRIBUTED TO U.S. OWNED rectly. The plan is also intended to interposing a holding company be­ FOREIGN CORPORATION RETAINS U.S. CONNEC­ avoid the present law treatment of tween U.S. shareholders and a foreign TION.- gain that results from the disposition corporation that earns significant "Cl) IN GENERAL.-For purposes of this of the stock of certain foreign invest­ U .S.-source income. part, if more than 10 percent of the earn­ ment companies. Under the foreign in­ Section 3 of the bill provides for a ings and profits of any foreign corporation vestment company rules, gain attribut­ limited category of stock that will be for any taxable year- able to untaxed corporate earnings is treated as an offsetting position for "CA> is derived from sources within the United States, or taxed as ordinary income, but this or­ purposes of the loss deferral rules of "CB> is effectively connected with the con­ dinary income treatment is not applied current law. Under this provision, off­ duct of a trade or business within the to corporations trading in commod­ setting position stock is included in United States, ities. the definition of property that is sub­ any distribution received (directly or Under a second offering, U.S. inves­ ject to the straddle rules. The term through 1 or more other entities) by a U.S. tors may invest in stock in an offshore "offsetting position stock" is defined or foreign corporation out of such earnings corporation that enters into forward as any stock of a corporation formed and profits shall be treated as derived by contracts in U.S. Government guaran­ or availed of to take positions in per­ such corporation from sources within the teed debt instruments, such as GNMA sonal property that offset positions United States. taken by such corporation's sharehold­ "(2) U.S. OWNED FOREIGN CORPORATION.­ certificates. The U.S. investors enter The term 'U.S. owned foreign corporation' into offsetting positions in their indi­ ers. This provision will apply to posi­ means any corporation 50 percent or more vidual capacities. The offshore corpo­ tions established on or after May 23, of the total combined voting power of all ration does not pay U.S. tax on its 1983. classes of stock entitled to vote, or the total gains and the U.S. investors are not re­ The bill that I am introducing today value of all classes of stock, was held direct­ quired to defer the deduction of losses is necessary to prevent abuse of our ly Cor indirectly through applying para­ on their individually held positions tax system. It removes an anomaly of graphs (2) and (3) of section 958(a) and notwithstanding unrealized gain in present law that permits a U.S. person paragraph (4) of section 318Ca)) by United their stock. Direct investment in both to avoid U.S. tax on U.S. business by States persons C30))." legs of this type of straddle would simply conducting that business (b) EFFECTIVE DATE.-The amendment have required such deferral of the de­ through a tax-haven corporation when made by subsection Ca) shall apply to distri­ duction of loss until the gain was rec­ a U.S. person who earned this income butions received by a U.S. owned foreign ognized. Under the tax shelter invest­ directly in the United States would be corporation of the Internal Revenue Code of May 23, 1983 EXTENSIONS OF REMARKS 13425 1954) on or after May 23, 1983, in taxable fortunate. There could not be a more Jersey the increase over the same years ending on or after such date. appropriate memorial to Jessie Ball du period was less than 13 percent. SEC. 3. TREATMENT OF OFFSETTING POSITION Pont than the beautiful Narthex of At a hearing of the Select Commit­ STOCK. this great cathedral; and Reverend tee on Aging which I chaired recently GENERAL RuLE.-Paragraph (1) of sec­ tion 1092 of the Internal Revenue Code Perry and the others who made this in Princeton, N.J., the committee of 1954 (defining personal property) is event a significant one are to be con­ heard testimony from the New Jersey amended by adding at the end thereof the gratulated.• Department of Health, medical ex­ following new sentence: "Such term also in­ perts, and representatives of senior cludes any offsetting position stock." citizens organizations. Their com­ (b) DEFINITION OF OFFSETTING POSITION LESSONS FROM NEW JERSEY'S STocK.-Subsection of section 1092 of EXPERIENCE WITH PROSPEC­ ments concerning the experience with such Code is amended by adding at the end TIVE PAYMENT DRG's in New Jersey offer a valuable thereof the following new paragraph: perspective as we implement the na­ "(6) OFFSETTING POSITION STOCK.-The HON. MATTHEW J. RINALDO tionwide DRG program. term 'offsetting position stock' means any OF NEW JERSEY Briefly summarized below are some stock of a corporation formed or availed of IN THE HOUSE OF REPRESENTATIVES of the concerns we heard at the hear­ to take positions in personal property which ing: offset positions taken by shareholders." Monday, May 23, 1983 (C) EFFECTIVE DATE.-The amendments Cost shifting to other payers: The made by this section shall apply to positions e Mr. RINALDO. Mr. Speaker, begin­ national DRG system will apply only established on or after May 23, 1983, in tax­ ning October 1, the Federal Govern­ to medicare hospital patients, unlike able years ending on or after such date.e ment will implement a new method of the New Jersey program which applies reimbursing hospitals which partici­ to all payers. Congress and HCFA will JESSIE BALL DU PONT HONORED pate in medicare. This system of pro­ have to work together to prevent the spective payment based on diagnostic transfer of costs from medicare pa­ related groups study, to discuss the study and elicit input allow the tax cheats and evaders to get WASHINGTON, May 1-In the widening and and recommendations relating to the re­ away scot-free-is a vote to increase increasingly intense debate over the Reagan search. The CDC officials have assured that the Federal debt. Accordingly, those Administration's policy on Central America, they will maintain open lines of communica­ one voice has been noticeably quite. The na­ who voted to repeal the withholding tion's senior military officers have had little tion throughout the study. provision should logically support an In turn, we have offered the cooperation to say in public. of the Legion in encouraging the participa­ increase in the debt ceiling. But do not The reason, in a word: Vietnam. Not the tion of Vietnam veterans in the study, as we hold your breath, Mr. Speaker. The Vietnam of a bloody war a long way from are aware of the importance that such par­ fact that the debt ceiling was in­ home, but the Vietnam of what they see as ticipation will play in the success of the creased by a voice vote testifies that it an absence of a national commitment, of a Agent Orange study. solid consensus supporting a carefully de­ would have lost on a recorded vote. vised and executed policy. Mr. Chairman, we understand and appre­ Mr. Speaker, I could not go back ciate that the intent of this legislation must Many military officers bear emotional as undergo the prudent deliberation of this home to face my auto workers, my well as physical scars from being in Vietnam Subcommittee, and, as with other issues electrical workers, my homebuilders, and feeling that nobody at home was behind where differences of opinion in the scientif­ and others who are out of work be­ them. The generals and colonels at the top ic community exist, we have no doubt that cause high interest rates have devas­ today were the lieutenant colonels and cap­ H.R. 1961 will be closely but objectively tated their industries, and I could not tains who fought in Vietnam yesterday. scrutinized. May we point out that other "We were the scapegoats of that confict," presumptions have been established by Con­ face the small business people in the said a senior officer. "We're the ones pulling gress based upon a lesser amount of evi­ Third Congressional District who are back on the reins on this one." dence than is currently available in support being forced to shut down because The reluctance among Inilitary officers of the instant legislation. they can not afford the cost of money was reinforced by a reaction in Congress to The American Legion thanks you Mr. had I voted to decrease revenues and the President's address Wednesday night. Chairman for your timeliness in scheduling to increase Federal debt. Military officers pointed to the applause this hearing on an issue that is of great im­ President Reagan got when he said that no portance to Vietnam veterans; and, again, But, the repeal measure was passed. American combat troops would be sent to we appreciate this opportunity to provide It is water under the bridge. I am dis­ Central America. the Subcommittee with the views of this or­ appointed that so many of my . col­ ADVICE FROM THE JOINT CHIEFS ganization.e leagues who have voiced serious con­ The reluctance, staff officers said, has cern over high deficits jumped on the shown up in advice from the Joint Chiefs of CONGRESS MUST HOLD THE repeal bandwagon. Now the House will Staff, who are the senior military advisers LINE ON DEFICITS have to act to make up, in a fair and to the President and to Secretary of De­ balanced way, the revenues that will fense Caspar W. Weinberger. They said the chiefs had strongly recommended against HON. ROMANO L. MAZZOLI be lost. But, again, Mr. Speaker, if the looking for military solutions. Aides to Mr. OF KENTUCKY past is prolog: Do not hold your Weinberger said he had agreed. IN THE HOUSE OF REPRESENTATIVES breath awaiting that fair and balanced The lack of enthusiasm for dispatching tax bill.• American Inilitary forces to Central Amer­ Monday, May 23, 1983 ica has been compounded by what some of­ e Mr. MAZZOLI. Mr. Speaker, this ficers consider privately to be disarray in week the House overwhelmingly voted OUR VIETNAM EXPERIENCE AND the Administration and a wide gap between policy and action. to repeal the proposal to withhold 10 LATIN AMERICA They said that top officers enthusiastical­ percent of earned interest and divi­ ly supported a policy paper entitled "U.S. dends which was contained in the tax Policy in Central America and Cuba bill adopted last summer. The Senate HON. THOMAS A. DASCHLE Through F.Y.84" that was drawn up a year earlier adopted a compromise plan OF SOUTH DAKOTA ago by the National Security Council. It dealing with the withholding provi­ IN THE HOUSE OF REPRESENTATIVES outlined a strategy to foster political sion. Now the measures will be re­ reform, regional cooperation, econoinic aid, solved by a House-Senate conference. Monday, May 23, 1983 military assistance and public information. But the officers complained that the Looming large over all this is the pos­ •Mr. DASCHLE. Mr. Speaker, a very policy had not been executed, largely be­ sibility of a Presidential veto since Mr. revealing article was published in the cause no one in the Administration was in Reagan has often stated his opposition New York Times concerning the Pen­ charge of carrying it out. They hoped the to a repeal of this withholding provi- tagon's views on events in Latin Amer­ President's speech would correct that. sion. · ica. Certainly, one of the lessons we "They're trying to get their act together Mr. Speaker, I am not a fan of with­ have all learned and can agree on from now," said one officer. holding on interest and dividends the Vietnam war is that you do not ISSUES CALLED POLITICAL earned. In point of fact, I voted commit American troops to a conflict Several senior officers were critical of the against the 1982 tax bill which ordered without the support and commitment Administration for failing to nurture a the withholding to start effective July of the American people. Leaders in the public consensus. "The military and the 1 of this year. Pentagon today who fought in Viet­ C.l.A. are doing as they're told but that But, still I could not vote for H.R. hasn't been coupled with public affairs or 2973-the bill repealing withholding­ nam, more than anybody else, realize persuading Congress," said an officer. especially since also this week the the accuracy of this axiom. · "We're not presenting the American people House, by voice vote, increased the It is quite apparent that this Nation with the facts." is not united behind the President's Many military officers said the problems ceiling on the national debt. in Central America were basically not mili­ If we do not withhold interest and plan to rely on military solutions to tary problems and that the military there­ dividends, full taxes will not be collect­ the political, social, and economic fore shouldn't be asked to solve them. They ed on these earnings. This means problems in Latin America. Of all the asserted that the issues were mainly politi­ Treasury revenues will decrease. With analogies between Vietnam and El Sal­ cal, econoinic and internal. less money coming into the Treasury vador, this one may be the most pro­ Many officers said they had learned from phetic. Unfortunately, many in the Vietnam that if a foreign government was there will be less revenue~ to pay the either unwilling or unable to undertake po­ Government's bills. Less revenue White House and State Department litical action and econoinic reform or to pro­ means more deficit spending, more have yet to be convinced. vide internal security, there was little the borrowing by the Government, more Following is the text of the article: United States could do. May 23, 1983 EXTENSIONS OF REMARKS 13429 Internal security is for police and para­ services, which enable these persons to prov1s1ons with regard to sheltered military forces to provide, the officers said, live and work outside of institutional workshops and handicapped workers, I and not for regular troops. If United States settings. help was requested, that would be a task for am recommending changes in the Fair the Army's Special Forces and similiar units The last major change in the special Labor Standards Act based on lan­ in the Navy and Air Force, they said. minimum wage provision, section 14(c) guage recommended by the General Moreover, several officers argued, the real of the Fair Labor Standards Act, came Accounting Office. The changes in sec­ threat was not in Central America but from in 1966 when a floor of 50 percent of tion 14(c) would guarantee that each Cuba and the Soviet Union. They contended the minimum wage was set for handi­ handicapped worker would be paid ac­ that it would be useless to get bogged down capped workers. There was a recogni­ cording to his or her individual pro­ in a fight in Central America unless the tion that there would be circum­ ductivity. nation was willing to confront the main ad­ versaries. stances when that level could not be I invite all Members to join as co­ met by the productivity of a handi­ sponsors of this bill. This is significant QUESTION OF THE DRAFT capped person. Thus, there were ex­ legislation for rehabilitation facilities Officers in the Army, which would bear ceptions for persons engaged in eval­ the brunt of a battle in Central America, and the severely disabled persons for said their service was just getting new weap­ uation or training programs, persons whom they provide services and em­ ons to replace obsolete equipment or arms certified by the State vocational reha­ ployment. It is supported by the Na­ burned up in Vietnam. They. said they bilitation agency as being too severely tional Association of Rehabilitation didn't want that supply consumed in Cen­ handicapped to meet the 50 percent Facilities. The full text of the bill fol­ tral America when they might have to fight level, and for persons in work activities lows: more threatening enemies. centers where the work is primarily H.R. 3091 The military services, particularly the for therapeutic reasons. The Depart­ Army, are just getting the volunteer force ment of Labor issues special certifi­ Be it enacted by the Senate and House of on its feet, 10 years after the draft ended. Representatives of the United States of Fighting in Central America could well lead cates for the basic program and for America in Congress assembled, That sub­ to a return to the draft, the officers said, each of the four exceptions to the 50- section Cc) of section 14 of the Fair Labor with all the divisiveness that would entail. percent floor. Currently there are Standards Act of 1938 (29 U.S.C. 214) is The Chief of Staff of the Army, Gen. 4,782 workshops holding 8,144 pro­ amended to read as follows: Edward S. Meyer, once summed up in a gram certificates. Seventy-five percent "Cc) The Secretary, to the extent neces­ speech a bit of ancient military philosophy of the certificates are for exceptions to sary to prevent curtailment of opportunities that seemed to lie behind the thinking of of­ the 50-percent floor. for employment, shall by regulation or ficers today. "Armies don't fight wars," he Since 1966, there has been a dramat­ order provide for the employment under said. "Nations fight wars." special certificates of individuals (including On another occasion, he expanded on that ic turnaround in the nature of persons individuals employed in agriculture) whose thought, saying: "When the United States served in sheltered workshops. Where earning or productive capacity is impaired Army, which is genuinely a people's army, is once there were predominantly phys­ by age or physical or mental deficiency or committed, the American people are com­ ically handicapped persons, now per­ injury, at wages which (1) are lower than mitted. And when the American people drop sons with mental or developmental the minimum wage applicable under section that commitment, then the Army cannot disabilities predominate. These more 6, (2) are commensurate with those paid to remain committed."• severely handicapped persons need nonhandicapped workers, employed in the vicinity in which the workers under the cer­ more extensive assistance and tend to tificates are employed, for essentially the AMEND THE FAIR LABOR be less able to produce at a level equal same type, quality, and quantity of work, STANDARDS ACT to or greater than the 50-percent level and (3) are related to the worker's produc­ and must work under one of the ex­ tivity.".• HON. THOMAS E. PETRI emptions to that general rule. A study of sheltered workshops by OF WISCONSIN the General Accounting Office pub­ WARSAW, IND.-A CITY ON THE IN THE HOUSE OF REPRESENTATIVES lished in 1981 concluded that the 50 MOVE Monday, May 23, 1983 percent floor was not having the in­ •Mr. PETRI. Mr. Speaker, today, I tended effect. Because of the high HON. JOHN HILER am introducing legislation which intake of much more severely handi­ OF INDIANA would amend section 14(c) of the Fair capped persons, only 17 percent of the IN THE HOUSE OF REPRESENTATIVES Labor Standards Act. persons served or employed in shel­ The Fair Labor Standards Act has tered workshops benefited from the Monday, May 23, 1983 always provided special provisions to 50-percent floor. GAO recommended • Mr. HILER. Mr. Speaker, much has pay physically and mentally handi­ elimination of the 50-percent floor. been written about the so-called de­ capped persons special minimum Workshops would be required to pay cline of our Nation's industrial belt, of wages based on their individual pro­ each handicapped worker based on his which my State, Indiana is considered ductivity. These provisions allow em­ or her individual productivity. This a member. Declining populations and ployment opportunities for handi­ would greatly simplify the process for decaying cities are the image many capped persons who would not be able certification and would allow sheltered Americans outside the Midwest seem to compete for jobs in the regular workshops and the Department of to have of our region. labor marketplace if the regular mini­ Labor to focus their efforts on sub­ I was very pleased to find that the mum wage had to be paid. stantive compliance reviews rather New York Times has discovered that While many handicapped persons than paperwork and technical compli­ one important community in northern are now able to work competitively ance. Another major study prepared Indiana, Warsaw, is doing much to and earn wages and salaries equal to for the Department of Health and dispel that image. those of nonhandicapped persons, Human Services found that the 1966 Warsaw is the seat of Kosciusko there are still large numbers of handi­ amendments to the Fair Labor Stand­ County. -A growing city of nearly capped persons whose disabling condi­ ards Act were complex and implement­ 11,000 people, Warsaw is undergoing a tions are so severe as to substantially ed by even more complex regulations tremendous transformation thanks to reduce their ability to work when com­ and produced an "administrative the ingenuity, leadership, energy, initi­ pared with nonhandicapped persons. nightmare." This 1980 study also rec­ ative, and foresight of community Many of these severely handicapped ommended elimination of the 50-per­ leaders. persons work in sheltered workshops cent floor and use of a single certifi­ Mr. Speaker, I commend the follow­ where jobs within the limitations of cate. ing article to my colleagues as an ex­ the handicapping conditions can be Based on a documented need to sim­ cellent example of what our communi­ provided as well as many supportive plify the Fair Labor Standards Act ties can do on their own. I look for- 13430 EXTENSIONS OF REMARKS May 23, 1983 ward to commending the Warsaw THEY GAVE THEMSELVES A NAME "We're about to have a change of genera­ Downtown Development Commission Unofficially, the 10 businessmen called tions around here," says Mrs. Wiggins, personally and extend my thanks to themselves the Downtown Development "There are some young, aggressive types Frank Saemann for converting civic Commission. Their first priority was fixing coming along. We've got a diversified econo­ up that one vital block of storefronts, many my. And we've got momentum now." pride and vision into reality. of them vacant and one of them, the movie, Mr. Saemann doesn't talk much now. But WARSAW, IND., WRESTS ITS DOWNTOWN FROM charred by fire. he still likes to keep his hand in business, PIGEONS It was a multimillion-dollar job for some­ poring over the numbers on the balance sheets for his own private urban renewal. "I