7816 CONGRESSIONAL RECORD - HOUSE June Z

EXTENSIONS OF RE.MARKS

tinguished alumni have done, to follow mili­ the certain knowledge that the ships and The Role of the Military tary careers. the men of the American Fleet were ready But even if you do not choose to continue to do their job. EXTENSION OF REMARKS as professional soldiers--and I use the term There is a parallel for this readiness in OF soldiers to refer to all military men-the our more modern times. As President Eisen­ training and the sense of integrity instilled hower has said: "We will never commit ag­ HON. L. MENDEL RIVERS in you by The Citadel will prove invaluable gression, but we must always be ready to OF SOUTH CAROLINA to you and to the Nation in whatever pro­ d efeat it." fession you may pursue. I wish I could assure each of you person­ IN THE HOUSE OF REPRESENTATIVES In my judgment, the greatest opportunity ally that the threat to our security has so Tuesday, June 7, 1955 to which you can aspire is the opportunity diminished that the United States no longer of service--both military and civilian. You requires strong military forces-and that Mr. RIVERS. Mr. Speaker, on the oc­ gentlemen have this opportunity for service there is no possibility of a war resulting casion of the graduating class of 1955 at directly on behalf of the United States of from today's conflict between two opposing The Citadel, the military college of South America. There is no greater honor than ideologies. Carolina, Charleston, s. c., the distin­ that. But I cannot. I must state flatly that a guished Chairman of the Joint Chiefs of It is on the subject of this role of the mili­ strong military posture is not only essen­ Staff, Adm. A. W. Radford, delivered the tary that I want chiefly to speak, and it is tial to our security, but it is clearly neces­ address on Saturday, June 4. His sub­ to you graduates that I primarily address my sary for all the free world. remarks. There has been, of course, a noticeable ject was The Role of the Military. Perhaps some of you wonder why so many change in tactics on the part of the Com­ In plain, simple, and everyday lan­ of your contemporaries are needed by the munist high command. Symptoms of this guage, this outstanding officer, the holder military services; and why so many, having change are the successful conclusion of the of innumerable decorations and citations completed their military service, must con­ Austrian Treaty, and the apparent Soviet for leadership, courage, and valor, in the tinue available for Inilitary duty in a na­ willingness to participate in Four-Power most deadly wars in which this country tional emergency. t alks. But there has been no real indica­ has ever been engaged, related to the The answer is simple: Today our Nation is tion so far that this represents a funda­ graduates of that fine institution the tre­ confronted with the world's greatest and mental change, either in their character or most dangerous menace to our freedoms and in their basic long-term objectives. mendous necessity for participation in our way of life; namely, militant interna­ Thus, while all America sincerely hopes the mission assigned to the military dur­ tional communism. and works for peace, there is still a definite ing the years in which they, as gradu­ Communism is backed by an immense requirement for us to maintain strong mili­ ates, will be called upon to give service military establishment, and is led by a hand­ tary forces in being. In this day, ready to their country. ful of ruthless individuals who, at any forces are strong forces. I stress this word Admiral Radford's address demon­ time they see fit, could plunge us into war. "ready." Our active forces must be ready Communist leaders have declared their in­ forces. So must our Reserve forces be ready strates to these fine young men how the tention to dominate the entire planet on military man, during this global partici­ forces. And all America must be ready to which we live-and they have demonstrated promote unity of action among free nations pation to which this Nation is committed, extraordina:ry capacities for pursuing this in establishing long-term security. among other things is part and parcel of intention. Needless to say, it is a struggle our economic and diplomatic life as we must not lose. ADVISORY ROLE well as the military. This being the case, what would you say A third important role or function of the I doubt that any man in the Nation is must be done by the Armed Forces in order Armed Forces, and these are not set forth in to protect our peace and security? What any order of priority, is to give military ad­ better qualified to speak on this subject is the role of the military? -vice on national security matters. Let's ex­ than Admiral Radford. The Congress The Armed Forces exist for one ultimate amine for a moment just what this role has confidence in his leadership. · The purpose: the security of the United States. means. Nation likewise knows that Admiral Rad­ They are organized, trained, and equipped Vvhen I was a young man most of us in ford regards its safety and security as for prompt and sustained combat opera­ uniform were inclined to regard foreign pol­ one of his most sacred obligations. tions-land, sea, and air-when and as di­ icy as an interesting subject for an evening's The address of the distinguished rected by the President and the American academic discussion. We did not feel di­ people in accordance with our constitutional rectly affected by foreign policy decisions un­ Chairman follows: processes. less the decision involved the use of military THE ROLE OF THE MILITARY Our :fighting role is probably our most ob­ force. (Graduation address by Adm. Arthur Rad­ vious role. It is our hardest and most diffi­ This has changed-just as the world itself ford, Chairman of the Joint Chiefs of Staff, cult role, but it is also our last-resort role, has changed. Fifty years ago our own secu­ before The Citadel, Charleston, S. C., June and one used only when our Government rity was relatively self-sufficient. Today our 4, 1955) calls upon us to use force in defense of security is bound up with the security of the our vital interests. free world. Fifty years ago the military had Quite naturally, a ceremony like this car­ READINESS ROLE but little concern with foreign policy. To­ ries me back around 40 years to when I was day there is often no clear line of demarca­ a member of the brigade of midshipmen at Our second role is our readiness role. tion between foreign and military policy. the United States Naval Academy. I saw the "Readiness" is the word for the graduates Instead, there is overlap. There are mili­ graduation ceremonies then, including my of The Citadel on this day-a glad and happy tary implications in foreign policy, and, con­ own, and I have seen quite a few since. day. versely, political implications in military As a result of my visit here, yesterday and Readiness means preparedness. Readi­ policy. ness is your response to your country's call. today, I have become impressed by the high In our democracy military men do not standards in your scholastics and training. Readiness is years of practice. It is train­ ing, and training means skill, and skill pro­ make foreign policies. Such policies are de­ It makes me very proud to take part this termined by the Chief Executive and the morning in your graduation. duces efficiency, and efficiency is economical of human life and resources. State Department. But their studies are not Like other top military schools, The Citadel made without advice of other governmental has more than a century of honorable tra­ Admiral Dewey demonstrated his keen un­ derstanding of the philosophy of readiness agencies in pertinent fields; for example, leg­ dition in contributing to the security of our islative, economic, scientific, and military. country. Its graduates have gone out to when he said: "You may fire when ready, Gridley." His words became an epigrarp. Hence, there must be a breadth of compre­ serve the Nation both as soldiers and as hension and understanding by the special­ civilians. As one of the oldest schools in destined to live as a part of American mili­ ists of each as to the roles of the others. the country, The Citadel has the reputation, tary tradition. After all, the United States is a partnership the curriculum, and the tradition of good Reflect for a moment on the significance of au America. education combined with a sound military of those timeless words. Note how the orientation. thought construction of that quiet com­ INDIVIDUAL ROLE In this day and age, most of you are going mand describes so well the complete confi­ Gentlemen, seldom has there been an op­ to be given the opportunity of service to dence and faith Admiral Dewey had in Grid­ portunity for service to your country such as your :D.ag. Some of you probably expect to ley's judgment and courage on the eve of now. You must realize, as I a.m. sure you begin a tour of duty as a member of one of that great victory in Manila Bay. do, your country expects great things from our active services. Others probably will Just as Admiral Dewey trusted Gridley's you in the future. enter our Reserves. ;rt is my .hope that many judgments that day, so Gridley was strength­ In your early years you will not be deali~g of you will go on, as so many of your dis- ened by his commander's confidence; and by with the broader aspects of global strategy, 1955 CONGRESSIONAL RECORD - HOUSE 1817 new weapons developments, or big business. found worthy. Now it is up to you to prove mission on Government security, I am But you will be dealing with the men and your worth as dedicated American citizens. pleased to note that the creation of the weapons themselves, and that in itself For the greatest place of honor is really the is no small task today. It is during these place of service. such a bipartisan commission was unan­ early years that you wm have to prepare I am sure I speak for everyone when I say: imously backed recently by a Senate sub­ yourselves for the time when you will assume You have made us very proud. Our heart­ committee even though the administra­ greater responsibilities. felt congratulations and best wishes go with tion so far has turned a cold shoulder to Now, what should you do, personally and each one of you, and with your families. the plan. individually, to measure up to your increas­ The commission plan provided in this ing responsibilities in both military and civil measure of mine has been urged by many life? of the country's leaders during the past I feel confident that several thoughts oc­ Soviet Union Is Graduating 300,000 More cur to each of you. First is to learn your job 3 or 4 years. It is high time that the and know it thoroughly. Second, keep your­ Scientists and Engineers Than the Congress moved to create such an im­ self physically and mentally flt. Third, set partial body and I am sure the country a proper example for the people with whom United States will heartily back the two-party inquiry you are associated. And fourth, strive to when it is established. maintain that spiritual strength and vigor EXTENSION OF REMARKS It is a matter of the most serious na­ which you have acquired during your life OF here at The Citadel. tional importance when, as a 1954 poll Inherent in all four of these guidelines is HON. FRANK THOMPSON, JR. showed, half of all new Ph. D.'s say they your American mission in life: To keep faith would prefer a lower salary to going in your country and the freedom for which OF NEW JERSEY through the present uncertainties of se­ it stands; and to be ready to defend it IN THE HOUSE OF REPRESENTATIVES curity practices. The 1954 poll showed against all those who would overthrow it. Tuesday, June 7, 1955 also that the 33 percent of Ph. D.'s who For you who are being graduated today, I wanted to work for the Government wish I might have the power to instill in each Mr. THOMPSON of New Jersey, Mr. had dropped to 8 percent and gave the of you a sense of the historic faith in this Speaker, this country faces a severe mission of America that has been handed chief reason as the present security pro­ shortage of engineers and technically gram of the Federal Government. If down through the ages. trained personnel. The critical nature After you leave The Citadel, you will find the bipartisan commission, when it is that your education in the broad sense has of the shortage was emphasized by Allen established, will come to grips with this only begun. The man who thinks he knows W. Dulles, director of the Central In­ problem we may still win the "battle for everything has ceased to learn. You should telligence Agency in a speech before the scientific manpower.'' Alumni Federation of Columbia Univer­ keep the insatiable urge to learn more and [From the New York Times of June 5, 1955] more about this great civilization of ours­ sity, Mr. Dulles said that in the decade history, geography, science, philosophy, ad­ from 1950 to 1960, the Soviet Union CRITICAL SHORTAGE OF TECHNICALLY TRAINED ministration, and so on, would graduate 1,200,000 scientists and AMERICANS Is CAUSING MUCH CONCERN How well you develop yourselves during engineers, compared to 900,000 in the (By Benjamin Fine) your early years after graduation-how well United States. He warned that unless This country faces a severe shortage of you continue to learn all that you can-will something was done at once, Soviet sci­ engineers and technically trained personnel. determine how good you will be in handling The critical nature of the shortage was em­ greater problems as you advance into posi­ entific manpower might well outnumber phasized last week by Allen W. Dulles, Di­ tions of greater responsibility. ours in many key areas. rector of the Central Intelligence Agency. Let me urge you in the strongest words I have introduced two bills, H. R. 2211 Speaking before the Alumni Federation of possible to throw yourself into this military and H. R. 5152, which would go far to­ Columbia University, Mr. Dulles said that in life-completely and enthusiastically while ward meeting the problem facing our the decade from 1950 to 1960, the Soviet you are in it. Military service gets into your country today, · Union would graduate 1,200,000 scientists blood. It wlll be a constructive help to you The Nation cannot afford to discour­ and engineers, compared to 900,000 in the in whatever career you follow afterward, age young scientists. At a time when its United States. And he warned that unless This is something which is a little hard to something was done at once, Soviet scientific express in words, but easy to feel in inspira­ requirements for trained men are rising manpower might well outnumber ours in tion. sharply, bachelor degrees in science have many key areas. And now if I may take a minute more to been dropping, 20 percent in 1950-51, This month, for example, just about 20,000 address a special word to the families and another 25 percent in the next year. In engineers will be graduated from American friends of this graduating class. To you I 4 years all bachelor degrees in science colleges and universities. At the same time, say that your young man has proven his and engineering have dropped from the Soviet Union will graduate more than mental ability, his physical stamina, and his 55,000. In addition, Russia will graduate far good character. He truly belongs with our 80,000 to 34,000. During this same period, Russia has more men in the subprofessional fields of country's finest. You can be proud of him. engineering, in the "technical" areas that And you can show your pride in ways he been extolling the scholar and scientists are so vital in a technological age. will appreciate. You can bear with him his and encouraging its best brains to go For a long time we boasted that our engi­ absences on far-flung duties. You can share into research. In a few years, Russia neers had greater technical know-how, and his sense of dedication to duty. In so doing, will be graduating 80,000 engineers a were superior in every way to those coming you contribute not only to his well-being­ year. Last year the United States gradu­ from the Soviet Union. However, experts you contribute to the overall strength o:f ated 19,000. Experts say it would be fatal who have studied the problem say this is no our country. to underestimate the growing quality of longer true. The caliber of training received Members of the graduating class, this is by the Russian engineers is rapidly approach­ your graduation day. Your parents have Russian engineers. It is :figures like these which led Dr. ing ours, and in some respects may even looked forward to it almost from the day surpass it. you were born. It may be that you will find John R. Dunning, dean of the Columbia it difficult to appreciate all they have ac­ University School of Engineering to say, CHANGES SINCE THE WAR complished for you, untU you attempt to do "We have almost lost the battle for scien­ What 1s the cause of the engineer short­ the same thing for your children. I am tific manpower." age? There is no simple answer. Some edu­ sure that all present here today congratu­ One of the major.factors in this dis­ cators say that the Government itself is to late them, as well as you. blame. Soon after World War II, when the Then your professors and instructors are couraging situation was discussed by Ben veterans began to flood the college campuses, to be congratulated on the fine product here H. Bagdikian in one of a series of im­ the engineering courses became extremely before us in the class of 1955. The improve­ partant articles which appeared recently popular. Back in 1950 about 50,000 men were ment, discipline, and cultivation of the in the Evening Star, Washington, D. C. graduated from the engineering colleges. youthful mind always is a goal worthy o:f The article was titled "Supersecrecy Government-sponsored reports at that time, man's finest efforts. Slows Advance of Science." It is included said that this was too large a number, that And, finally, you gentlemen are to be con­ here together with an article by Dr. Ben­ our economy could not absorb them. Many gratulated. This ceremony is symbolic o:f jamin Fine, education editor of the New engineers could not find Jobs. the great responsibility that is placed in your York Times. Then came Korea, and the frenzied at­ hands today-not by me, or the president of tempt to build up our defense establishment this college-but by all the American people, I have introduced in the House a com­ in a hurry. We found that we did not have Regardless of the career you have chosen; panion measure to the resolution offered enough engineers or technically trained men what will count the most in your future in the Senate by Senator HUBERT HUM­ to go around. The civilian economy, plus will be the service you give to your flag and PHREY and Senator JOHN STENNIS. This the military needs, absorbed them faster to your country, You have been Judged and resolution would establish a special com- than schools could turn them out. 7818 CONGRESSIONAL RECORD - HOUSE June 7 other factors entered the picture. The Finally, a better public relations program highly trained, studious men, or "eggheads." draft took away many potential engineers. appears to be badly needed. The educators The Federal establishment would collapse The colleges found that it was difficult for want their story told to the American public without them. Twenty percent of all Federal them to compete with industry for well­ so that greater support will be forthcoming. employees are of professional rank, most of .trained faculty members. Somehow, an in­ It is not commonly known that the United them with graduate degrees. Another 37 terest in engineering dipped to a new low, States is falling behind the Soviet Union in percent are of top industrial skill. But while despite the great interest in all things of a the training and preparation of able scien­ more than half are of top-grade talent, only technical nature, such as jet planes, atomic tists-, engineers and technical personnel. The 1 percent of Government workers get $9,000 weapons and scientific developments. story should be told. or more. The legal limit for civil service is $14,500 a year. It is precisely in these badly TO MEET THE PROBLEM needed skills that the Government cannot From the long-range point of view, educa­ (From the Washington Evening Star of compete with private industry in attracting tors are greatly disturbed at the sharp de­ ).,lay 31, 1955) talent. cline in interest in the sciences by high WHAT PRICE SECVUITY?-SUPERSECRECY SLOWS SECRECY HIT school students. Figures issued recently by ADVANCE OF SCIENCE Another factor in discouraging Govern­ the United Sta.tes Office of Education show (By Ben H. Bagdikian) ment research is supersecrecy. It hampers that proportionately fewer students now take Today there is a physicist in a Govern­ not only the individual scientist, but at times courses in chemistry, physics, science and ment laboratory waiting to hear whether he the Governm~nt itself. mathematics than ever before. More than is a "security risk" and therefore in danger · Recently, the Department o! Defense com­ half the high schools in the cauntry do not of ending his professional career. pleted a "secret" project. All that can be even offer chemistry today. Six years ago he asked security officers said of it ls that it cost somewhere between Educators are seriously concerned at the whether his forthcoming marriage would af­ $10,000 and $100,000 and took a number of apparent indifference to the engineering and fect his secret clearance. His fiance had senior scientists about a year to complete. scientific fields shown by college students no security problem, but her parents occa­ Unaware of the "secret" projects, some and high school graduates. At recent con­ sionally associated with persons thought to non-Government scientists in a university ferences, some called for this very purpose, be pro-Communists. The physicist planned did exactly the same work and published they have proposed certain steps that might never to see his in-laws after the wedding. their results. The published results were bring the situation into better balance. The security officers assured him the mar­ seen by scientists everywhere, who crhicized Among the most frequently mentioned riage would not jeopardize his status. and used them to improve their own projects proposals are these: Five years later the physicist suddenly and push to new horizons. This demon­ The creation of a Reeerve Officers Training had his clearance revoked. The charge: His strates a number of things: Corps in the :flelds of engineering and science. wife's parents are believed to associate with ( 1) There is no such things as a perma­ At present the campuses support these corps alleged pro-Communists. The information nent secret of nature; (2) any scientific dis­ in the various branches of the Army, in the against him was precisely that volunteered covery is a link to the future which, if kept Navy and Air Force. It is known that the by himself and accepted by the Government. secret, stalls the next step but does not pre­ Pentagon has under consideration an exten­ He has appealed at a. cost to himself of about vent others from creating their own links; sion of these programs, to include ROTC $1,000 and approximately $10,000 to the Gov­ and (3) safes, security officers, and generals units devoted to engineering and scientific ernment. He is still waiting for a decision. do not create new weapons like atomic bombS students. Under this plan, if approved, the Last year an aeronautical engineer who or defenses against them; only the "egg­ military officials would provide financial sup­ had worked for the Government for 14 years heads" can do that. port to qualified students in the technical was suspended from his top secret project in Few scientists want abolltion of secrecy in fields. The suggested program appears to Seattle, putting him out of a job and all military research, but almost all make a have considerable merit. Certainly it would but stopping the urgent project. The distinction between tactical secrets ( such as aid those who a.re interested in the scientific charge involved information he had given actual weapons designs, military plans, stor­ fields but, for :financial reasons, are unable the Government in 1940, which had been in­ age points of bombs, etc.) and secrets of to continue in this area. vestigated and cleared at least twice since nature (such as the basic information on then. After 6 months he was restored. The matter which any scientist anywhere can ENGINEERING SCHOLARSHIPS personal cost of the appeal to him was work on). Scholarships for engineering and scientific $3,242.83, to the Government, 6 months' loss students have been frequently suggested. In of time on an important defense project. NO ONE BAS MONOPOLY effect, the State or Federal Government These are the kinds of cases that today are The fact that no nation bas a monopoly would "subsidize" potential science or tech­ causing America's best young scientists to on research was demonstrated last year when nical students. It is costly to attend engi­ fear Government work. In 1953 a poll of sci­ fallout ash covered a Japanese fishing ves­ neering schools. MIT, for example, has ence Ph. D.'s graduating from research uni­ sel after a hydrogen bomb test at Bikini. just announced that its tuition will be in­ versities showed them equally divided on The Atomic Energy Commission has not re­ creased still further, and will go over the where they would like to work, one-third vealed scientific data on fallout materials $1,000 mark. Financial support, it has been each in Government, industry, and universi­ for fear it would tell something of materials argued, should go to liberal arts students as ties. In 1954-a.fter the investigation of in the bomb. But 4 months after Japanese well as those in the fields of science. Tb.is Fort Monmouth and the case of Dr. J. Robert scientists began their analysis of materials question, at the moment, is receiving the Oppenheimer-a poll of Ph. D.'s showed that on the fishing vessels, they had published thouhgtful attention of the educational au­ the 33 percent who wanted to work for the an open paper giving the elements involved, thorities. Government had dropped to 8 percent. The their proportions, and the amount of radio­ Higher salaries for teachers of science and chief reason given: security. activity in each-more information than the engineerln.g are essential if the faculties In fact, about half of all the new Ph. D.'s AEC has published to date. are not to be depleted. Although it is true said they would prefer a lower salary to going Another facet of secrecy keeps scientific that higher salaries should go to all teachers through the present uncertainties of security facts bottled up in sealed compartments, generally, it is doubly essential tn the case practices. giving each scientist only the information he of the professors in engineering schools. The Nation cannot afford to discourage needs in his own wol'k. This is sound mili­ The competition from industry is so severe young scientists. At a time when its require­ tary doctrine on secrets, but it can be fatal that the top-notch men are being drawn off ments for trained men were rising sharply, to scientific progress. · Some of the greatest by research groups, the Government and advances have come from men who saw bachelor degrees in science have been drop­ information they did not need in their own private industry. ping, 20 percent in 1950-61, another 25 per­ More adequate physical facilities are essen­ cent the next year. work, or at least thought so. The telegraph tial. The country needs more engineering was born, !or example, because a physicist, In 4 years all bachelor degrees in science Allesandro Volta, in 1778 discovered a mis­ laboratories more scientific equipment, bet­ and engineering hav~ dropped from 80,000 taken interpretation by Luigi Galvani of ter working conditions for the scientific and to 34,000. Galvani's own work. Under today's Govern­ engineering students. During this same period, Russia has been ment secret research rules, Volta would never AVOIDING THE DRAFT extolling the scholar and scientist and en­ see Galvani's data and discovery of the error couraging its best brains to go into research. would have been delayed. It is also essential, the educators almost In a few years, Russia will be graduating unanimously agree, that a more realistic at­ Today a secret-cleared AEC scientist in 80,000 engineers a year. Last year the United - Los Alamos has a laboratory problem. A titude be taken toward the question of selec­ States graduated 19,000. And experts say it tive service. Many complaints have been reg­ friend·in an eastern university, also a secret­ would be fatal to underestimate the growing cleared AEC man doing AEC research thinks istered in recent months that scientific and quality of Russian engineers. he has the answer but cannot question his engineering students have been drafted be­ It is figures like these which led Dr. John friend because in his own project he has no fore they have completed their studies. This R. Dunning, dean of the Columbia University need to know details of his friend's work at ls particularly true, the educators say, con­ School of Engineering, to say, "We have al­ Los Alamos. cerning graduate students. They point to most lost the battle for sc1ent~ man­ Security measures, as typified in the Wal­ men who get half way through their gradu­ power." ter-McCarran Immigration Act, also impede ~te work in engineering, only to be called Similarly, the Government as a whole can­ scientific progress which in the past had into service. not afford to encourage public contempt of been aided by friendly foreign scientists. 1955 CONGRESSIONAL RECORD - HOUSE 7819 Since enactment of the law about half of acre. Yes, that is right, $11,000 per ted to take part in the creation of a move­ all foreign scientists applying have been for­ acre. ment and a program which has contributed bidden to visit the United States. Some The project would grow agricultural so magnificently to the economic and cul­ have contributed much to this country. Dr. tural life of all Americans. Marcus Oliphant, of England, for example, products now supported by the tax­ The miracles of Aladdin's lamp have vir­ gave information on radar during World payers and in great surplus. Among tually been transposed into the everyday life War II which the United States said was these are grains, dairy products, and of the rural people of this Nation through "probably the most important single item of wool. the accomplishments of the REA program. A reverse lend-lease." Yet, under the McCar­ fair appraisal of these accomplishments dur­ ran Act, Oliphant was not permitted to at­ ing the past 20 years is convincing proof that tend a nonsecret conference here. Prof, your efforts and the work of your coopera­ E. B. Chain, of England, codiscoverer of peni­ Address by Hon. Sam Rayburn on the tives is responsible for the greatest economic cillin, whose wartime collaboration saved Occasion of the 20th Anniversary of upsurge in the history of rural America. hundreds of American soldiers, was not per­ And, let me say, here, now that the ulti­ mitted to set foot on United States soil for the Rural Electrification Administration mate responsibility of the success of the pro­ a 3-day visit. of Atlanta, Ga., May 11, 1955 gram rested upon the shoulders of each of Of the 12 men who headed the Los Alamos you who are the creators and organizers of atom bomb project, half were foreign born the 1,000 rural electric cooperatives in this and thus of questionable clearance today. EXTENSION OF REMARKS Nation. No segment of the population of The leader, J. Robert Oppenheimer, was de­ any nation ever discharged its duties and re­ clared a security risk last year. OF sponsibilities with more zeal and devotion The combination of supersecrecy and dis­ than have you. Therefore, to you who have trust of scientists from friendly nations does HON. PRINCE H. PRESTON, JR. labored along the dusty roads, in the rich not produce the strength which the United OF GEORGIA farmlands, and on the steep hillsides to sign Stat es depends on. This was only too clear IN THE HOUSE OF REPRESENTATIVES up members by the light of a wood fire or a in an incident during the building of the kerosene lamp goes the everlasting credit atomic submarine, the Nauti lus. Tuesday, June 7, 1955 for the impetus given an agricultural move­ At one time it was feared the sub would ment which in two decades has contributed require extensive redesign because of sleep­ Mr. PRESTON. Mr. Speaker, on May more to the agricultural industry than that ing-sickness paralysis of its atomic engine 11 more than 1,200 enthusiastic members industry has had contributed to it from all by accumulation of a chemical, xenon, when­ of REA cooperatives assembled in At­ other sources since the founding of this ever the engine stopped. The Government lanta, Ga., to mark the 20th anniversary Nation. desperately needed basic information on the of that great progressive organization Al though less than half of the farms of nature of xenon. A Canadian with top clear­ that has done so much to take the farm­ the Nation were served by electricity before ance in his native country's atomic project World War II, today 95 percent, or more than was brought to this country to do open re­ er out of the bondage of backbreaking 5 million, of our farms are electrified. In search under an AEC grant. toil. 1935, only 10.9 percent of those homes had Officials of the Georgia electric mem­ electric service. COULDN'T GET CLEARANCE bership corporation, in casting about for Fifty-five percent of the electrified farm Being a Canadian he could not get Ameri­ the most able American to address this homes of America are served by the 1,000 can clearance, a fact that did not bother great anniversary celebration inevitably rural electric cooperatives which you repre­ anyone until it was discovered that he sent. seemed to have discovered certain reactions decided to invite the father of the legis­ During the debate on the floor of the and equations which might apply to the lation that created the Rural Electrifica­ House of Representatives while the Rural sleeping-sickness problem. But he could not tion Administration, our beloved Speak­ Electrification Act was being considered, be asked to apply his reactions to American er, the Honorable SAM RAYBURN. many men wise in the financial world of this data because he was not permitted to know Fortunately for the good people of Nation argued eloquently that such a pro­ the American data. Georgia, SAM RAYBURN decided to accept gram was doomed to failure, Fears were A fairly high-level conference was held in the invitation to deliver the address cele­ expressed that even though the farmers and New York. An elaborate plan was devised ranchers joined in such a movement, that to have the Canadian apply his reactions to brating the 20th anniversary of the REA. they would certainly discontinue the service some dummy figures, while concealing the This was a statewide meeting, but the and refuse to pay their first monthly bill. true American figures. But at the last min­ eyes of REA members the country over Sincere though these men were, they could ute a nervous security officer dismissed the were focused on Atlanta for this mam­ not have been more wrong. They reckoned Canadian from the room, fearful that some moth celebration. without the spirit and determination of the secrets might be disclosed. It was my privilege to accompany our people who form the backbone of this Na­ This left the American data secret and speaker to Atlanta for this occasion. To­ tion-your actions have been even more con­ secure. But it also left them useless. Fortu­ gether with hundreds of my fell ow vincing than were those of us who answered nately, the Canadian's data was recovered their arguments. later and the sub did not have to be re­ Georgians, I thrilled to the message of The repayment record of REA borrowers designed. No one knows in how many other Speaker RAYBURN as he described his shows that only 14 of the 1,000 cooperatives instances we are not so lucky. fight to overcome the opposition to the are delinquent in their loan liquidation. establishment of this great farm cooper­ This ratio of one-tenth of 1 percent is far ative organization. I shared the inspi.. below that shown by any bank loan record. ration of his words as he told of the tre­ Approximately three-fourths of all rural mendous success of the REA both electric cooperatives have made advance pay­ Bananas on Pikes Peak? ments on their loans. In 1954, these ad­ economically and in banishing darkness vance payments totaled $78.5 million. In from the homes of rural America. 1953 the advance payments were $62.5 mil­ EXTENSION OF REMARKS I know many would want to read the lion and in 1952, $52.5 million represented OP stirring words of Speaker RAYBURN on the am.aunt prepaid, It is obvious that year this splendid anniversary occ'.l.sion, and by year the cooperative repayments record HON. CRAIG HOSMER I know many Members want to keep for is steadily improving. To date, the Rural Electrification Adminis­ OF CALIFORNIA their records his message to Americans, urban and rural, who look to his unpar.. tration has loaned to all of the electric co­ IN THE HOUSE OF REPRESENTATIVES operatives approximately $2.5 billion. But alleled wisdom and experience for guid­ that is not the interesting part of the story. Tuesday, June 7, 1955 ance and counsel. Surveys made by the electrical industry show The Speaker's address follows: Mr. HOSMER. Mr. Speaker, the Con.. that for every dollar loaned to the coopera­ Mr. Chairman, ladies and gentlemen, I am tives, the members of those cooperatives gress might as well appropriate money deeply honored to be here with you tonight. spend $4 for electrical wiring and appliances. to grow bananas on Pikes Peak as to As author and sponsor of the Rural Electri­ Conservative estimates from all sources avail­ approve the Navaho irrigation project fication Act in the Congress of the United able are that the farmers and ranchers have in New Mexico. States, I would be less than frank if I did purcha.sed in the neighborhood of $15 billion The Navaho project is a part of the not tell you that I have a deep and a.biding worth of merchandise which they obviously proposed multi-billion-dollar upper Col.. interest in your progress and welfare. On could not have used without electricity. this 20th anniversary of the Rural Electrifi­ Has this program spelled the doom of the orado River project. cation Administration, please believe me privately owned electric industry? Certainly The cost to the Nation's taxpayers of when I say to you that it is a source of pro­ not. You have created and are daily creat­ the Navaho project would be $11,000 an found satisfaction to me that I was permit- ing new markets for these privately owned ,7820 CONGRESSIONAL RECORD - HOUSE June 7 companies. In 1954 alone, you purchased Inclusive Amendments to Refugee Relief have, .then, both in the Senate and in from these companies $57 million worth of the House, a bill designed to make the wholesale power, 1n order that you might Act Introduced act effective, accomplish its purposes, serve your markets and customers through and remove the impediments both in your network of 1,332,000 miles of electric the law and in the person of the pres­ wires. EXTENSION OF REMARKS At what price have the farmers and OF ent Administrator. We have a bill that ranchers been able to receive this most valu­ is workable, realistic, and humanitarian. able of all services? Today, electricity mar­ HON. EMANUEL CELLER keted by rural cooperatives and public­ OF NEW YORK utility companies cost the average farmer IN THE HOUSE OF REPRESENTATIVES approximately one-third less per kilowatt­ Federal Aid for Highway Construction hour than it did in 1940. By contrast, dur­ Tuesday, June 7, 1955 ing this same period, feed prices advanced Mr. CELLER. Mr. Speaker, I have in­ 225 percent, farm wages 400 percent, and troduced a bill H. R. 6642, to amend the EXTENSION OF REMARKS farm machinery prices 100 percent. The OF rural market today is the largest user of Refugee Relief Act of 1953, as amended. electrical energy per average consumer by The bill as written by the administra­ HON. GORDON H. SCHERER about 50 percent. tion-professedly following President Surveys made this year reveal that more Eisenhower's recommendations-and in­ OF OHIO than 200 different services are performed on troduced in the House and the Senate IN THE HOUSE OF REPRESENTATIVES our farms and ranches by electricity. New equipment is constantly being designed and contains provisions that are unrealistic Tuesday, June 7, 1955 manufactured by the industries of this and do not go far enough to insure that we achieve the humanitarian objectives Mr. SCHERER. Mr. Speaker, the Nation to meet the ever-growing demand for House Public Works Committee has been rural homes and fields, for irrigation, milk­ of this legislation. ing, fertilization, incubating-for virtually There is no provision to remove Mr. considering legislation to modernize the every function which in the past has meant McLeod as administrator of the act. Nation's highways. There seems to be only back-bending and heart-breaking A change of law does not insure a change universal agreement that modernization drudgery. of heart, and Mr. McLeod's administra­ is needed if our transportation system is But these statistics are in a large sense tion to date has been inept and frustrat­ not to bog down. only the cold entries in a dollar ledger, which ing. The Senate has passed a bill which reflect little of the contribution which your came before our committee just as we program has made in the life of our Nation. My bill provides, in the main, as fol­ lows: were concluding hearings on a bill before ,We are today concerned with people us. throughout the world who are oppressed­ First. Increase of 15,000 in the number oppressed economically, socially, and spirit­ of authorized visas; inclusion, in addi­ I should like to point out some defects ually. In our own land we are confronted tion to the NATO countries, Turkey, in the Senate bill. with these same problems to a lesser degree. Sweden, Iran, and eligible refugees now The formula for distribution of funds Throughout all the ages, mankind has en­ residing in Spain and in the now highly to the States is based 50 percent on pop­ gaged in a never-ending struggle to emerge disturbed areas of North Africa. ulation and 50 percent upon the exist­ from the physical darkness of economic Second. Unused allotments of visas will ing Federal-aid formula of one-third tyranny, and to pierce the dark shroud of be carried over to all categories in pro­ population, one-third mileage, and one­ cultural and spiritual blindness. Thomas third area in each State. Jefferson once said, "I have sworn on the portion to the original percentage set altar of God everlasting hostility to every forth in the bill. If, after such allot­ This formula cannot result in the uni­ form of tyranny over the mind of man." It ments, there remain still unused visas, form development of an interstate sys­ is self-evident that no man or race of men these shall be used to fill applications re­ tem. can achieve mental and spiritual freedom maining unfilled on December 31, 1956. Under it, 31 States and the District when chained too long in economic bondage. Third. The administration of the of Columbia, as shown in the attached It was in the spirit of Thomas Jefferson Refugee Relief Act is taken away from table, would not receive sufficient funds that your Government felt the least of its the Bureau of Security and Consular to meet their needs in a 10-year period. obligations was to provide a financial at­ Affairs and given to a full-time admin­ Eighteen others would receive more than mosphere whereby through your own efforts is required to meet their needs. In the you might have hopes of emerging from the istrator within the Department of State. darkness which surrounded you and your Fourth. In addition to individual as­ extreme case, New Jersey would not be children. You sought no charity, and you surances, voluntary agency assurances able to complete its portion of the inter­ received none. You sought only opportunity for housing and employment will be ac­ state system before the year 1998 even for self-betterment. No responsive govern­ ceptable. assuming that apportionments would be ment could do less for its governed, and no Fifth. Distinction between refugees maintained after the 5-year life of the government will long endure which does not and escapees is withdrawn and only one bill at the maximum rate authorized in provide hope for its people that one day they category is established, to include those the bill. may achieve, with dignity, freedom of mind In contrast, the distribution formula and soul and body. who escape from behind the Iron Cur­ tain and refugees dating to World proposed in H. R. 4260, the bill our com­ On this 20th anniversary of the creation mittee has been considering, would pro­ of your program, it is well to reflect upon War II. Sixth. The requirement for a 2-year vide for the distribution of the available your achievements, but it behooves us even: funds in exact relation to the needs in more to pause and consider that relatively security history is eliminated. few people in all the lands of the world have Seventh. The cutoff date for all re­ all the States. The whole system would little reason to hope that their lot will ever allocations of unused visas is moved for: go ahead on a uniform basis with assur­ approach that which we now enjoy. In his ward to December 31, 1960. ance that it would be completed within wisdom, God gave man the power to forget­ Eighth. Under the present law, mem­ 10 years rather than 40 or more. lest his struggles and unconquerable hard­ bers of a family must all be admitted FINANCING ships would become unbearable. Likewise, together or not at all. I have provided The Senate bill does not guarantee we are prone to forget the hardships which that members of the family need not funds for the completion of the inter­ we have overcome and the blessings which all leave together but may be reunited state system. Even if the present for­ we enjoy. If I could leave you with but one at a later date. mula were corrected, the total funds thought today, it would be that you re­ dedicate your mind and your energies to your Ninth. The affliction of tuberculosis made available by the Federal Govern­ program which has meant so much to so will not render a member of a family ment for this purpose would be $7 ½ bil­ many people, and further, that you express ineligible if he submits to the safeguards lion in 5 years on a 90-10 matching basis. your divine gratitude that you live in a land to be established by the Attorney Gen­ Total needs are $23 billion. While the of hope and promise-a land where you eral and the public-health authorities. bill says that it is the.intent of Congress might hope that your earthly span will be These provisions fallow closely the pro­ tq complete the system at the earliest more bountiful through your own endeavors, visions of the bill introduced by Senator possible date, no further funds are pro­ and a land where you might fulfill the prom­ LEHMAN earlier in the session and the vided. ise of eternal life as preached by the humble last two follow the suggestions contained Since the Senate bill provides for only man who walked the shores of Galilea. in the President's message. We shall 5 years' programing, the States cannot 1955 CONGRESSIONAL RECORD - HOUSE 7821 properly plan their development of the taxes shall be used not only to amortize as applied to our Armed Forces and mer­ entire system because they do not know the bonding costs but also to continue chant marine sharply shrinks to a relatively small nucleus of Americans who refuse to whether or when sufficient funds will be other existing Federal-aid programs at forget the painful lessons we had been made available. The effect would be that least at current levels. taught in the past. they would use these funds to do the most Under this bill, the improvement would urgently needed spot-type work rather be effective without large increases in MERCHANT MARINE IN PEACE than developing an entire system. taxes which the Senate bill requires un­ In peacetime the average American has little interest in the complex multibillion H. R. 4260 provides a complete assur­ less the Government is to go further into dollar American export and import trade. ance of financing of the entire interstate debt. Many of us realize that our export-import system in 10 years through the provision Here is an authoritative table giving trade is essential to the development of our of bonds on roughly a 95-5 matching the comparison of interstate needs with economy which permits us to enjoy our basis. Further it takes the project out of approximate apportionment of interstate high standard of living. Too many of us the deficit-financing class through a pro­ funds under 5-year program pursuant to accept the theory of natural world markets vision that existing gasoline and diesel oil the Senate bill. which fall into specific relationships with­ out the exertion of efforts aimed at develop­ Comparison of interstate needs with approximate apportionment of interstate f unds under ing such world markets. 5-year program pursuant to the Senate bill Few Americans realize the importance of American shipping agents in foreign ports. These agents are busy drumming up busi­ Interstate 5-year total, InteNtate system mlleage ness which normally means the exporting of 1 State needs ~~8J: P ercent 1----,-----,--- American farm products and manufactured (millions (millions of needs commodities. In return for the exports, our of dollars) of dollars) Rural Urban Total ships carry to our shores the raw materials ------1-----1-----1----1------and finished commodities which are required Alabama______$365 U 59 44 790 114 904 to bolster our. economy and raise our stand­ Arizona______210 89 42 1,148 33 1,181 ard of living. Arkansas_ ------203 l13 56 467 61 528 A recent study shows that ln 1952, the ex­ California ______2,322 440 19 1, 680 219 1, 899 ports of our automobile industry totaled Co1orado______156 104 67 628 33 661 nearly $1 billion. One passenger car and Connecticut__------555 74 13 158 109 267 D elaware______66 49 74 23 3 26 truck out of every 20 manufactured in the F lorida______495 132 27 993 143 1,136 United States was shipped to a foreign mar­ Georgia______700 182 26 996 108 1,104 I daho______107 78 73 635 20 655 ket. Illinois ______1,065 365 34 l, 283 265 1,548 The American merchant marine is extreme­ Indiana______867 190 22 884 184 1,068 ly important to the agricultural segment of Iowa______276 160 58 632 65 697 our economy. Annually we export approxi­ K ansas __------206 143 69 677 51 728 mately two-fifths of our wheat crop, more than a quarter of all the cotton and tobac­ rM~~~~~!raine______~======147:~~ ~~63 43~~ 272~~ 27~ 299~ co, and one-half of our rice crop. Other im­ M aryland______434 92 21 204 66 270 portant agricultural exports are soybeans, M assachusetts______838 164 20 206 141 347 Michigan______1,296 278 21 849 136 985 barley, dried fruits, and such meat products Minnesota______483 176 36 750 106 856 as beef, pork, lard, and tallow. Over the ~: ~~~pf______~: m : = ~g 1. ~: last 10 years $1 out of every $8 of our Montana______152 109 72 1,209 28 1,237 farmers' income was realized by the export N ebraska______107 110 103 455 22 477 of his produce overseas. N evada______73 81 Ill 529 11 540 A recent study revealed that annually there N ew Hampshire______66 49 74 183 30 213 were 82,500,000 meals served to passengers N ew Jersey------1,357 169 12 102 102 204 N ew M exico______236 94 40 968 45 1,013 and crew members aboard our merchant N ew York_ ------1,336 548 41 740 305 1,045 ships. The conclusion of that study ls that North Carolina______247 198 80 627 87 714 these meals represent approximately $55 mil­ North D akota_------107 87 81 496 21 517 lion worth of food. Since American ships Oh io______1,361 332 24 996 235 1,231 Oklahoma______377 140 37 747 62 809 purchase their supplies in the American Oregon_------319 105 33 668 61 729 market, this means a substantial contr1.. P ennsylvania______760 412 54 1,068 296 1,364 bution to our farm economy. R hode Island______123 49 40 21 26 47 South Carolina______183 105 57 694 55 749 It has been estimated that our American South D akota______95 91 96 503 17 520 merchant marine consumes approximately Tennessee______380 166 44 958 80 1, 038 3 million electric light bulbs a year. It also T exas______872 446 51 2,487 283 2, 770 consumes over 9 million bars of soap a year. U tah______238 75 32 659 57 716 Taking into consideration American ships' ~r;=t~====:::::::::::::::::::::::::::::::::::: ~ ~g~ 1~~ ~ purchases of such items as linen, glassware, Washington______m468 1:124 26 507 86 593 dishes, washing machines, etc., it is evi­ West Virginia______259 92 36 179 42 221 dent that our merchant marine affects al.. Wisconsin______322 177 55 427 45 472 most every segment of our domestic econ­ ::;:::t111g ______------296_ ------78_ ------26 _ ------991 _ ------28 ____ 1, 019 omy. Some critics state that even if our PuDistricterto Rico of Columbia ______152 49 32 ______17 ______17 _ ships were swept off the high seas, foreign merchant ships would purchase the above­ Total ______· 1-----1-----1------23,253 33,295 mentioned items in the American market. 7,750 33 4, 391 37, 686 This is not true. We know that foreign merchant ships purchase their supplies in Our Merchant Marine peacetime. In time of national emergency their home markets or in world markets it is the means of joining our great produc­ other than the United States. The main ex­ tive capacity and our troops and allies over­ ception has been during austerity periods EXTENSION OF REMARKS seas. Historically, in wartime, the word in the world when foreign merchant ships OF "our" when applied to our Armed Forces and were compelled to purchase their supplies merchant marine is proudly used by the gen­ in the American market. HON. JOHN F. SHELLEY eral American public. During war the Ameri­ Many American shippers utilize foreign OF CALIFORNIA can public is made keenly aware of the heroic merchant marines because they believe that IN THE HOUSE OF REPRESENTATIVES it results in great savings. This is untrue exploits of our Armed Forces and merchant for general cargoes which are carried aboard Tuesday, June 7, 1955 marine assigned to the serious task of de­ f ending the freedom cherished by us and berth liners. Foreign and American berth Mr. SHELLEY. Mr. Speaker, under the free peoples of other democratic nations. liners are members of conferences which es­ Unfortunately, in peacetime many of our tablish uniform shipping rates for all ships leave to extend my remarks in the REC .. regardless of flag. In this field it ls obvious ORD, I include the following: citizens as well as other nationals quickly forget the great accomplishments of our that the shipping industry must conduct a OUR MERCHANT MARINE Army, Navy, Air Force, and merchant ma.. public relations program designed to con.. (Address by Hon. JoHN F. SHELLEY at Amert.. rine. In fact, up to pre-World War II it was Vince the American shipper to utilize Ameri­ can University Transportation Institute common to hear such expressions as "only can-flag ships. This would result in the de­ banquet, Washington, D. C., May 25, 1955) a bum joins the Army or Navy, and only a sirable equalization of the policies and prac .. Our merchant marine is an industry vital tramp or thief goes to sea as a merchant tices of foreign shippers who utilize ships to the development of our foreign trade in seaman." In times of peace the word "our" fiying the flag other than their national fiag 7822 CONGRESSIONAL RECORD - HOUSE June 7 only when their ships are definitely not tons. Of this tonnage 733 were American was recently confirmed by Secretary of the available. merchant ships aggregating almost 7 million Navy Charles Thomas. In a Maritime Day One of the greatest reasons for permitting deadweight tons. speech given 2 weeks ago before the Pro­ the American merchant marine to wither in In order to service our Nation and our peller Club of Washington, D. C., Secretary time of peace is the false belief that we allies, the United States embarked on the Thomas emphatically stated that it was abso­ can rely upon the merchant ships of our biggest shipbuilding program in history. We lutely essential to achieve and maintain an allies in time of war. This theory has been constructed over 5,000 merchant ships, ag­ adequate American-flag merchant marine to­ and is accepted by many despite the fact gregating more than 54 million deadweight day. He strongly emphasized the fact that that it has been disproved during every tons. Approximately 10 percent of our new the atomic age does not make our merchant major war. ships were made available for the operation fleet obsolete. by our allies with the remainder flying the 50-50 fight MERCHANT MARINE IN WAR American flag. In turn, our allies made World War I Last year we passed a law which provides available to us only 715,000 gross tons. This that American bottoms shall carry at least Prior to World War I, the United States, exploded the theory of our pre-World War 50 percent of our foreign-aid cargoes, car­ leaning heavily on the false theory of re­ II experts who had claimed that in the event goes financed by the United States Govern­ liance on foreign-flag shipping, permitted our of war the United States would require only ment or for the United States account, and merchant marine to shrink to the point 1,200 merchant ships because our allies cargoes financed by foreign currencies of where we were carrying less than 10 percent could adequately service the fr.)e world. which convertibility is guaranteed by the of our export and import trade. At the out­ During the war, American merchant ships United States Government. Since Col. Ar­ break of the war in 1914, the myth exploded delivered almost 300 million long tons of dry thur Syran, of the Foreign Operations Ad­ and our foreign and domestic economy near­ and liquid cargoes. During the last year of ministration, has given you a 1-hour lecture ly collapsed. We were trapped in the un­ the war, our merchant ships delivered an on the transportation of our foreign-aid tenable position of being a neutral produc­ average of 8,500 tons of cargo every hour of programs, I shall not go into the history or tive giant without ships to transport our every day and night. The successful Ameri­ details of the so-called 50-50 concept. How­ agricultural and manufactured commodities can shipbuilding and ship-operating pro­ ever, the most recent intensive attack by overseas and to import the raw materials grams enabled the Allied armed forces to foreign shipping lobbyists and some foreign required to keep our production machinery meet and defeat the Fascist aggressors. nations on the requirement that American in gear. The piers and warehouses in our The total American cost of the shipbuild­ bottoms carry 50 percent of our farm surplus American ports looked like garbage dumps ing and ship-operating program during World products under Public Law 480 warrants spe­ and junkyards heaped high with rotting War II totaled over $22.5 billion. Of this cial attention and comment. farm produce and rusting manufactured staggering amount, $12.5 billion was for ship­ Recently, several foreign nations have commodities. building and the remainder for ship operat­ stated that unless the 50-50 provision is In August 1913, we exported 257,172 bales ing. Unfortunately, in our haste to build waived they would not accept American farm of cotton. One year later in August 1914, an a,dequate wartime merchant marine, we surplus commodities to be shipped under only 21,219 bales of cotton were exported. were compelled to construct the relatively Public Law 480. They argue that these are During the last 5 months of the first year of simple design and slow-speed Liberty-type commercial transactions which are paid for World War I, the price of cotton tumbled dry-cargo and tanker ships. Approximately in foreign currencies guaranteed for con­ from $62.50 a bale to $36.25. three-fifths of all of our wartime ship con­ vertibility by the United States Government. . The foreign shipowners who sent a few struction were Liberty ships, which were ob­ I challenge their definition of commercial ships to service our trade became wealthy solete on the drawing board. Had the Mer­ transactions. To me, a commercial trans­ overnight. After the war had flared into chant Marine Act of 1936 been properly ad­ action is one in which one party receives a its full violence, the average rate on general ministered, we would have had a more ade­ given commodity which is paid for with cargo increased over 1,000 percent. Shipping quate merchant marine to meet the initial money or, in the case of barter, with other profits from one voyage often paid the entire war needs. This would have given us the commodities. There the commercial trans­ cost of the ship. time needed to design and construct more action between the two parties ends. This Our Government spent over $3 billion In modern ships which would have been of is not the type of transaction which takes acquiring an American-flag merchant marine greater commercial value in the postwar pe­ place under Public Law 480. Under this law, that was adequate to service the war needs riod. Also, it would have saved billions of foreign nations who are able to pay for our of our Nation. We came out of World War I the $12.5 billion taxpayer dollars which were farm surplus commodities receive those com­ with 2,547 low-quality merchant ships which spent for a hasty but necessary emergency modities and, in turn, are supposed to pay were purchased or built in a hurry. shipbuilding program. This is a good ex­ for them in their soft currencies. However, President Woodrow Wilson, in his third ample of saving pennies in peacetime and, recently the Secretary of Agriculture re­ annual message to Congress given in May as a result, spending dollars in time of war. ported that during the first year of Public 1915, warned Congress that we must main­ Korean war Law 480 operation, 50.7 percent of the soft tain an adequate peacetime merchant ma­ currencies received by the United States were rine in order to be prepared to meet world Immediately prior to the outbreak of the directly contributory to overseas economies aggression. He stated: Korean war our active American merchant and were not reimbursable to the United marine had shrunk to the approximate size States. "It is high time we repaired our mistake it had been immediately pre-World War II. and resumed our commercial independence Recently, one foreign nation refused to Again we were taught that we could fully accept $7.7 million worth of our farm surplus on the seas. For it is a question of inde­ rely only upon our own merchant ships in pendence. If other nations go to war or seek commodities because of the 50-50 provision. a national emergency. Fortunately, our Na­ In this particular case their currency was to hamper each other's commerce, our mer­ tion had placed a great number of our World chants it seems are at their mercy, to do merely a bookkeeping entry. In return for War II ships in mothballs. We activated the grain they were offered, they were to with as they please. We must use their ships, from 25 to 75 of these ships a month, up to and use them as they determine. We have ship a given amount of their manufactured the total of over 700 additional ships which products to underdeveloped areas of the not ships enough of our own. We cannot were needed to service our troops overseas. handle our own commerce on the seas. Our world. To me, it is amazing that a foreign During the Korean war, American merchant government would classify such a transac­ independence is provincial and is only on ships carried over 80 percent of the cargoes land and within our own borders." tion as a purely commercial one. In this to the war theater. It is my opinion that particular case we send them grain and boost Despite the knowledge that the lack of an if it had not been for our merchant marine adequate American-flag merchant marine their industrial production which is sent as we would have been driven out of Korea or aid cargoes to the world's more unfortunate prolonged a terrible war with the resultant compelled to engage in an allout third cost of many thousands of lives, the end of peoples. All we demand is that our de­ world war. pressed merchant marine carry 50 percent the war saw the virtual end of our merchant Atomic age marine. Our ships were stuck in the mud of the grain to the recipient nation. to become rust buckets. Today, at the beginning of a possible third Another foreign maritime nation refused world war, our merchant marine has again to accept surplus American tobacco unless World War II shrunk to its pre-World War II and pre­ the 50-50 provision was waived. Our Nation At the outbreak of World War II on Sep­ Korean war size. There is some loose talk compromised, compromised spelled g-a-v-e, tember 1, 1939, the United States merchant that a merchant marine will have little, if to the point where we agreed to ship them marine consisted of only 1,379 seagoing ships any, place in this atomic age. I sharply $15 million worth of surplus tobacco for of 1,000 gross tons and over. At this time disagree with this dangerous kind of think­ which the foreign government would spend the total world tonnage was 80 million dead­ ing. To begin with, we know that the Com­ their currency to build housing which they weight tons of which Britain and France con­ munist aggressors have been and are follow­ would lease to the American Air Forces sta­ trolled approximately 27 million tons. A ing a war strategy of nibbling away at the tioned 1n their country. The negotiators great proportion of the remaining tonnage periphery of the spheres of influence of the for that particular foreign nation quickly was under the control of neutral nations free world. Examples of this strategy are agreed that this was not a purely commercial which were friendly to the Allies. German Korea, Indochina, and at the present time transaction and, therefore, they were willing submarine warfare, especially at the begin­ the dangers over Formosa. In order to ade­ to permit American ships to carry 50 percent ning of the war, was extremely effective. quately meet this type of aggression, we need of the tobacco. Then an astounding thing During the entire war the losses of allied a large modern merchant marine flying the happened. The foreign shipping lobbyists shipping totaled over 36 million deadweight American flag. This strong belief of mine of that country immediately protested their 1955 CONGRESSIONAL RECORD - HOUSE 7823 government's "bowing down to the American 50-50 legislation. I state that our Govern• The emphasis was on that word "ready." merchant marine." To my knowledge the ment makes a good investment when it ships We were to be ready to respond to any call agreement has not yet been signed by the cargoes aboard the subsidized ships, our country might place upon us. We were representatives of that foreign nation. CONCLUSION to be ready to sustain the best traditions The maneuverings of the foreign shipping of our forefathers. We were to be ready to lobbyists and their foreign governments are In conclusion I wish to emphasize that the assume some of the responsibility and the clear. They want our farm surplus com­ problems confronting our merchant marine accountability for our fundamental beliefs. modities and they are satisfied with the are serious ones. During the few short days For we, too, had a share in this freedom. terms of payment. However, they are hope­ that you have been attending these informa­ We were responsible and accountable for it, ful that their temporary refusals to accept tive lectures at this great university, you under God, to the American people. the farm commodities will cause the powerful have been briefed on some of the major prob­ You, too, should be ready. You should be American farm bloc to take action against lems. I am hopeful that some of you now ready to perform useful functions in your their own American merchant marine. fall within the definition of the word "our" chosen careers. You should be ready to Recently a spokesman for one of the farm when we say "our merchant marine." accept individual responsibility in accord­ organizations stated that by applying the ance with your abilities and skills. And you 50-50 provision to the $700 million available should be ready to help defend our American in Public Law 480, $70 million would be paid way of life, to American shipowners. He stated that this Your American Mission This is a mission which is applicable today would result in a correspondingly lower ship­ to every American. As you progress along ment of farm surplus commodities. This the paths of your chosen careers, you will is absolutely not true. EXTENSION OF REMARKS see for yourselves there is no way of escaping Of the $700 million worth of commodities OF this mission without surrendering the things to be shipped under Public Law 480, approx­ you value most. It requires just plain com­ imately 80 percent will be carried in berth HON. L. MENDEL RIVERS mon sense to figure out that things worth liners. Since American and foreign berth OF SOUTH CAROLINA having are things worth defending. liners operate under conference rates, the Now, I realize that most commencement cost of shipment will be the same whether IN THE HOUSE OF REPRESENTATIVES speakers are expected to admonish you to the cargoes are carried by American or foreign Tuesday, June 7, 1955 beware of the pitfalls in the world outside ships. Therefore, the only possible addition­ the college campus; or to exhort you how al cost would be for the American tramp Mr. RIVERS. Mr. Speaker, Adm. A. best to achieve success in the world market­ carriage of the 20 percent of the total ex­ W. Radford, immediately upon deliver­ places. ports under this program. It is estimated ing the address at The Citadel on Satur­ But I wish neither to admonish you nor to that the total freight money which would day, June 4, boarded his plane and jour­ exhort you this afternoon. Instead, I hope to be paid to American and foreign tramp ships neyed to East Lansing, Mich., where, on set forth briefly in clear-cut, unmistakable would be $15.3 million. With the estimation Sunday, June 5, he delivered the com­ terms how important this mission in life is that the freight rates of American tramps to you personally for your long-term future. Will be 25 percent higher than foreign mencement address to the graduating tramps, it means that American tramps class of Michigan State College. MEANING OF FREEDOM would receive $8.5 million and the foreign His subject was Your American Mis­ In the early days of our United States, our tramps would receive $6.8 million. The esti­ sion. Founding Fathers established the framework mated difference for the entire program is This was a great address and one in which freedom could flourish. Those who $1.7 million, or one-quarter of 1 percent of fraught with advice every young man conceived this Nation, and brought it to life, the cost of the commodities in the basic breathed into it a sense of mission-a sense disposal program itself. would do well to heed. We in the Con­ of destiny-and of progress. It is important to note that the so-called gress could hearken to his timely re­ As representative government grew, these additional cost for using American tramps marks. Few men have the capacity to early Americans realized that our govern­ to carry 50 percent of the tramp cargoes is speak in everyday language of wisdom mental processes would have to be free of based on the assumption that foreign tramp of which Admiral Radford is an envi­ dependence on the few, and rest on the in­ rates would remain the same should we able possessor. I want the Congress and formed cooperation and hard work of the withdraw the American tramps from the the Nation to read this address: majority. we rejected tyranny, and took up market. However, being realistic, we know democracy. Thus our country and our his­ that as soon as we withdraw our tramp fleet YOUR AMERICAN MISSION tory began to take on substance. We became the foreign tramp rates would rise and the (Commencement address by Adm. Arthur in fact the living proof that freedom is the so-called $1.7 million saving would evaporate. Radford, Chairman of the Joint Chiefs of most worthwhile heritage of all. It has been estimated that the revenues Staff, before Michigan State College, East What is freedom? What does it mean to to the American merchant marine resulting Lansing, Mich, June 5, 1955) you? Billions of words have been spoken from the carriage of the surplus farm com­ Today a.s you graduate, you are about to about its concept. Entire books have been modities under Public Law 480 would result take your new places in the world, or per­ written about even a single phrase, such as: in estimated disbursements of $30 million haps continue your education in some other ''Life, Uberty, and the pursuit of happiness." within our domestic economy. These dis­ institution of learning. You have been for­ Actually, it is set forth best in the basic bursements would create some 8,000 man­ tunate so far, for your formal education here documents of our Nation. We commonly years of employment. Approximately 3,000 has given you an excellent start in life. I refer to it as "the American way." President man-years of this employment would be di­ am sure you recognize in truth that it is Lincoln made a blueprint for it when he said: rect employment of American merchant sea­ only a start-a commencement to a whole "A new nation, conceived in liberty and dedi• men who are now suffering from great un­ future. cated to the proposition that all men are employment. This contribution to our Many years ago, longer than I care to re­ created equal." economy is an important one. member, the big event of my graduation We also refer to freedom as "the rights o! It has been estimated that the revenue re­ finally occurred. It was a very hot day. I men." We hold certain truths to be self­ ceived by American shipowners by the car­ was sitting there like you, and a commence­ evident: That to secure these rights of men, riage of farm surplus commodities under ment speaker was standing here in my place, governments derive their just powers from Public Law 480 will result in a direct return In fact, we had two commencement speak­ the consent of the governed. You know of some $9 million of taxes to the United ers that day at Annapolis, early in June about this, for you here at Michigan State States Treasury in the form of personal in­ 1916. One was the President of the United College have been the recipients of the bene­ come taxes on wages and salaries and cor­ States, Woodrow Wilson; and the other was fits of this heritage, poration taxes. the Secretary of the Navy, Josephus Daniels. Another important potential saving may Probably most of the matters discussed THREAT TO FREEDOM be realized by our Government via the re­ by these two eminent commencement speak­ But this is not a heritage which we are capture provision contained in the Merchant ers have been long since forgotten. But one able to take for granted. Time after time, Marine Act of 1936. This provision enables idea they expressed in common that day, it has been challenged; and free men have the Government to recapture one-half of the I have never forgotten. It stood the test had to join together like the minutemen of profits of a subsidized shipowner which are of time so well that I would like to take yesteryear, and fight to protect our liberty. over 10 percent of capital necessarily em­ this opportunity to pass it along to you. In the early part of this century, World ployed during the period of the operating I want you to know about it. I hope you War I came about as a challenge to this subsidy contract up to the amount of the will remember it, and set your sights on heritage of ours. I can recall very well the entire subsidy accrual. During the years the target right now. triumphant end of that war. There seemed 1948 through 1952, the estimated gross sub­ I do not recall the exact words, but the no doubt then that not only was freedom sidy accrual is $279,046,000 and the gross idea was simply this: We who were about to our ideal, it was the most powerful and estimated recapture is $80,141,000. This be graduated in that class of 1916 had a worthwhile concept of human life in history, estimated recapture savings of over $80 mil­ special mission in life. Our mission, indi• As a matter of fact, it was a concept which lion is to a great extent due to the revenues vidually and collectively, was to be ready to had just been fully vindicated by the out­ the subsidized ship operators received under defend our country and our freedom, come of the war, ,7824 CONGRESSIONAL RECORD - HOUSE June 7 November 1918 was a great month all right. free system is the complete antithesis of Then came a summons from Palestine. No one in that hour of triumph could have Communist dictatorship. The new nation sought an experienced believed that fascism and nazism soon would I can tell you all this but, in the final soldier with advanced professional train­ threaten us. No one could have believed analysis, you must know it for yourself. that communism would become the ruthless You, individually and collectively, must be ing who could command the loyalty of and relentless menace which later would strong in your determination to preserve its then undisciplined and unorganized spread across half the world to plot our this Nation, and the freedom for which it guerrilla fighters. It was Col. Mickey destruction. stands. You must be stronger and more Marcus who organized these guerrillas, But we can believe it now. We can see it, durable than the forces which would destroy supervised their training, and created the hear it, feel it, and know it. Today, we are us. blueprint for the fighting Army of Israel. threatened by a formidable and sinister ad­ "We hold these truths • • • "-indeed we He then returned to Brooklyn, N. Y. But versary whose Communist doctrine specifies hold these noble truths right in our own hands. We hold them in trust. If we doubt not for long, for he was to be called to a program for world domination. The mili­ Palestine once more-there to end his t ary threat of communism is a very real one our mission in the world, we probably will since the Communist bloc maintains forces cease to progress. If America ever loses con­ life. far in excess of that required for its own de­ fidence in herself, we will retain the confi­ He was mourned by Americans of all fense. dence of no one. We could even lose our creeds-those who knew him as a soldier, There has been, of course, a noticeable chance to remain free. lawyer, city official, or simply as a neigh­ change in tactics on the part of the Com­ Members of the graduating class: This ls bor. Today fighting continues in Israel munist high command. Symptoms of this your commencement day. Your parents and I am sure that those fighting still change are the successful conclusion of the h ave looked forward to it almost from the day you were born, and they too are to be remember the good American who came Austrian Treaty, and the apparent Soviet to help his coreligionists in their strug­ willingness to participate in Four-Power congratulated. It may be that you will find talks. But there has been no real indication it difficult to appreciate fully what they have gle for peace and freedom. May his soul so far that this represents a fundamental accomplished for you until you endeavor to rest in peace. change, either in their character or in their do the same thing for your children. I am basic long-term objectives. confident that all present here today con­ Indeed, communism continues to be the gratulate them, and are proud of them as major challenge to our way of life-yours and well as you. Then your professors here are to be con­ Public Opinion Sample of Fifth Congres­ m ine. Its impact bears directly on man's gratulated. It was no easy task for them to destiny. At issue is the true nature of man turn out a product such as we see before sional District of Wisconsin himself. It is a struggle which goes to the us in the class of 1955. The improvement, roots of the human spirit-a struggle we discipline, and cultivation of the youthful must not lose. mind always is a goal worthy of man's finest EXTENSION OF REMARKS Where does it lead? What can the in­ efforts. OF telligent college graduate of 1955 do about it? And now I return to you and me. It is DEFENSE OF FREEDOM my hope you always will keep with you your HON. HENRY S. REUSS For one thing, you can keep faith in your American mission in life, and realize how OF WISCONSIN country and the freedom for which it stands; extremely practical and realistic it is. and be ready to defend it against all those Keep the defense of our freedom and our IN THE HOUSE OF REPRESENTATIVES who would overthrow it. way of life first among your goals in life. Tuesday, June 7, 1955 For you who are being graduated today, Serve your country well. This may not be I wish I might have the power to instill in easy, but it will be a rewarding experience. Mr. REUSS. Mr. Speaker, I wish to each of you a sense of the historic faith in For the greatest place of honor is really announce the results of a sample I have this mission of America that has been handed the pl.:.ce of service. taken of public opinion in the Fifth Con­ down through the ages. Congratulations. Good luck. And God bless each of you and your families. gressional District of Wisconsin. I pre­ After you depart from this campus, you pared this questionnaire with the help of may encounter some individuals who will try to tell you that we live in a world which public-opinion experts at Wisconsin could be destroyed without notice. They State College, University of Wisconsin may speak with voices that say we are like Extension, in Milwaukee, and Marquette Rome was in its declining years. They may David Marcus University. The questionnaire reached even try to tell you that our national values 5,000 people in all walks of life in every have decayed; that we have no great cause EXTENSION OF REMARKS ward and precinct of the Fifth District, to guide our future history; and that it is a true cross section of the people I rep­ futile to try to maintain feelings of true OF patriotism and self-sacrifice. resent. This leads, of course, to a newer version of HON. ABRAHAM J. MULTER I am pleased to announce that 21 per­ an old saying: "Eat, drink, and be merry, for OF NEW YORK cent, or 1,058, of those receiving the tomorrow we die." questionnaire mailed me their replies be­ But what if you do not die? Suppose you IN THE HOUSE OF REPRESENTATIVES fore the deadline of May 25, and from should live and face the consequences of not Tuesday, June 7, 1955 these returns the results have been tab­ defending your freedom and your way of life ulated. with all that is in you-even your life if need Mr. MOLTER. Mr. Speaker, on June be. 9, 1948, 7 years ago today, a fine Ameri­ As , the. final question, I asked what I suggest that if any of you young people can, David Marcus, died fighting for worried people the most. The answer ever think of betting your future on the Israel. He had a distinguished World given showed that 30 percent were wor­ world being destroyed, you better take a long War II record behind him, and a prom­ ried most about the possibility of an­ look at the odds. These end-of-the-world other world war. Next, with 9 percent, predictions are not new. Archeologists find ising law practice ahead. But he dropped everything to answer the call and on the were those worried about their own them chiseled on stone tablets thousands of financial security and the cost of living. years old. eve of victory, a few hours before the In a similar vein, in our own country, men truce, his life ended. The third highest group was 7 .8 percent, have been wringing their hands over the end Mickey Marcus, as he was known, had those worried about Government spend­ of freedom ever since the days of George led a good life. An American soldier, ing. Then came 2."6 percent worried Washington. Perhaps this occurs when there trained and commissioned at West Point, about national defense and 2 percent 1s a lack of "can do" spirit in fulfilling our worried about communism. mission. Perhaps it comes from Communists he served 6 years as a deputy commis­ sioner of correction in New York City The questionnaire reflects the view­ themselves who would like us to think that points of many occupational groups. communism is irresistible. under Mayor LaGuardia, and became full Regardless of where it comes from, or what commissioner in 1940. With the coming The tabulated returns are from the fol­ the cause of it is, I can tell you that com­ of World War II, he ·left this career to lowing: munism is not the irresistible force or the return to his earlier one and entered the Factory workers ______320 only way of the future. I can tell you that White-collar workers------~------278 Civil Affairs Division of the Army. He Professional ______155 we are fortunate-and that we have a gpod became head of this division in 1943·. cause. Housewives ______76 I can also tell you that the United States, During the war he saw action on many Businessmen______51 1ts institutions, its people, and its great prog­ fronts, serving in the Pacific theater and Students-----~------48 ress are refutations of the Communist dogma. the Normandy landing. V-E Day found Retired ______45 We are living proof that the assumptions on him a full colonel and at this time he Servicemen ______32 which communism is based are false. Our left the Army to reopen a law practice. Miscellaneous______53 1955 CONGRESSIONAL RECORD - HOUSE 7825 Of the 21 percent answering the ques­ from Federal regulation? Yes, 14 percent; 6. Do you favor the continuation of the tionnaire, the following are the results: no, 75 percent; don't know, 11 percent. reciprocal-trade program of lowering tariffs 4. Do you think that widows should be 1. Do you favor Federal appropriations to so as to increase exports and imports? Yes, eligible to receive social-security benefits at 63 percent; no, 23 percent; don't know, 14 deepen the Lake Erie Channel so as to com­ age 60 without waiting until 65? Yes, 88 percent. plete the St. Lawrence Seaway, permitting percent; no, 9 percent; don't know, 3 percent. oceangoing vessels to enter Lake Michigan 7. Do you favor Government assistance to 5. Recently 17 first-term Congressmen companies and workers injured by foreign ports? Yes, 95 percent; no, 2 percent; don't made recommendations to President Eisen­ know, 3 percent. competition due to lowered tariffs? Yes, hower in regard to our foreign policy: 35 percent; no, 47 percent; don't know, 18 2. Do you favor tax reduction for families (a) The President should take steps to in low- and middle-income groups: percent. end the cold war deadlock by proposing a 8. Do you favor statehood for: Hawaii? (a) Even though it will increase the Fed­ U. N. trusteeship and defense of Formosa. eral deficit? Yes, 53 percent; no, 42 percent; Yes, 82 percent; no, 11 percent; don't know, Approve, 60 percent; disapprove, 18 percent; 7 percent. Alaska? Yes, 83 percent; no, 11 don't know, 6 percent. no opinion, 22 percent. (b) If the Government can make up for (b) The President should ask Russia to percent; don't know, 6 percent. the loss in revenue by plugging tax loop­ withdraw to her original frontiers, which 9. Do you favor Federal financial aid to holes? Yes, 89 percent; no, 6 percent; don't would free Poland, Czechoslovakia, and other States for school construction? Yes, 76 per­ know, 5 percent. enslaved countries and permit unification of cent; no, 20 percent; don't know, 4 percent. 3. At present the prices of natural gas you Germany. In return for this withdrawal, Taken by occupational groups, the fol­ use in Milwaukee are regulated by Federal Central Europe would be demilitarized so law at the source in Texas and Oklahoma. that it could not make aggressive war. Ap­ lowing chart shows how these groups Are you in favor of a change in the law prove, 61 percent; disapprove, 23 percent; voted on particular issues in the ques­ which would exempt natural-gas producers no opinion, 16 percent. tionnaire:

1. Deepen seaway 2a. Tax cuts-Even 2b. Tax cuts-If tax 3· Exempt natural- 4. Social security for 5a. U. N. trusteeship for channels if deficit raised loopholes plugged £.~~ fe~~rig:rs widows at 60 Formosa

Don't Don't No Don't No Don't No Don't Approve Disap­ Don't Yes No know Yes No know Yes know Yes know Yes know prove know

-----·------1------Factory workers ______White collar ______305 6 9 184 73 15 268 14 21 38 242 33 296 18 1 194 33 72 266 6 6 106 128 8 238 21 8 42 201 36 236 30 9 161 52 53 Professional______146 4 5 47 79 9 126 13 7 23 118 15 125 16 11 77 38 29 Housewives ______•. ____ --_. _-- 68 3 5 32 26 5 62 4 5 10 51 14 68 3 4 35 13 19 Businessmen ______50 0 1 30 12 2 41 0 2 11 38 2 47 3 1 22 7 14 Students ______---- •. ------. 48 0 0 14 29 2 45 0 3 8 34 5 45 2 1 32 12 5 Retired. ______------44 0 1 31 6 0 40 1 2 4 38 3 40 3 1 26 2 11 Servicemen •• ______------31 0 1 7 19 0 25 3 0 1 24 6 27 2 3 19 9 4 Miscellaneous.. ____ --_____ • ---••• - 47 0 3 28 13 4 40 5 2 13 34 5 38 13 1 24 10 11

5b. Russian withdrawal to 1. Federal aid to historic borders, unified 6. Continue reclpro- com panics in- Sa. Statehood for Sb. Statehood for 9. Federal aid for Germany, neutralized school construe• Central European Com- cal-trade program jured by foreign Hawaii Alaska tion munity competition

Disap- Don't Don't Don't Don't Don't Don't Approve prove know Yes No know Yes No know Yes No know Yes No know Yes No know ------·------Factory workers._------211 40 54 174 83 55 146 95 66 276 26 25 · 271 18 20 259 39 15 White collar ______231 Professional______156 70 36 181 59 30 72 157 42 232 30 15 30 .J 17 201 69 5 73 55 22 112 29 9 33 85 25 125 19 11 132 15 8 105 47 3 Housewives.. ______• ______38 18 17 37 20 17 19 33 21 63 6 7 64 5 6 62 10 3 Businessmen ______• _____ • Students ______31 7 7 29 13 7 22 22 6 42 3 5 42 2 5 41 6 3 21 21 4 37 5 5 11 27 8 35 10 3 33 11 3 36 8 4 Servicemen.Retired._------______37 1 4 26 9 7 24 15 5 39 0 5 37 1 5 33 8 2 Miscellaneous ______18 7 5 23 6 3 6 21 4 22 9 1 20 12 0 24 7 1 28 14 10 211 15 1 22 25 3 35 13 3 29 15 2 31 17 4

Protecting Gas Consumers Power Commission does have such power in bringing the matter forcefully to public and responsibility. attention. EXTENSION OF REMARKS The editorial points out, "the FPC ap­ Mr. Speaker, I am this day dispatch­ OF parently is biding its time in the belief ing a letter to the Chairman of the Fed­ that it will be rescued by Congress." I eral Power Commission demanding a full HON. EDMUND P. RADWAN think this is a pretty brazen attitude for explanation in this matter. OF NEW YORK the Federal Power Commission to take, IN THE HOUSE OF REPRESENTATIVES because they most certainly have a duty function under the law as written and Tuesday, June 7, 1955 to as interpreted by the Supreme Court. Bananas on Pikes Peak? Mr. RADWAN. Mr. Speaker, it was Certainly they have no right to antic­ with considerable amazement that I ipate that Congress will modify the su­ read an editorial which appeared in the preme Court decision. It is passing EXTENSION OF REMARKS Washington Post and Times Herald on strange that Congress should be taken OF June 6 entitled "Speaking for the for granted this way. Such an attitude Consumer." on the part of the Federal Power Com­ HON. CRAIG HOSMER According to that editorial, the Fed­ mission is an affront to the Congress. OF CALIFORNIA eral Power Commission, an agency To further quote from the editorial: IN THE HOUSE OF REPRESENTATIVES charged with certain regulatory duties, The FPC is charged with regulating the Tuesday, June 7, 1955 is ignoring its primary obligation to prt,ce of gas at the wellhead. But it is not the American public. It was the Fed­ effectively carrying out this duty since it Mr. HOSMER. Mr. Speaker, the Con­ eral Power Commission that in the first has established no procedures and has acted gress might as well appropriate money instance took the position that it did more or less automatically in approving schedules submitted to it. It has thus set to grow bananas on Pikes Peak as to not have the power to regulate the off a chain reaction that will cost consumers approve the La Barge irrigation project prices charged by natural gas producers, in this area millions of dollars. Theirs is in Wyoming. and for this reason it took no steps in not the only interest at stake, but it is a The La Barge project is a part of the that direction. However, the Supreme primary interest, and the four utility com­ proposed multibillion-dollar upper Colo­ Court decided last year that the Federal missions have performed a notable service rado River project. 7826 CONGRESSIONAL RECORD - HOUSE June 7 The cost to the Nation's taxpayers of quality, can be sold in foreign countries, United States. In fact more than 96 percent particularly in Europe, if only a sufficient o! the world's wheat crop today is produced the La Barge project would be $1,250 an effort is made to create the market. That and marketed under price supports or other acre. this Is not true sometimes com.es as a shock forms of official incentive to grow more The project would grow agricultural to the American farmer. It is often not wheat. p1·oduets now supported by the taxpayers realized that two wars in Europe within A fact we must learn to accept is that and in great surplus. Among these are the span of a lifetime have brought about governments encouraging the growing of grains, dairy products, and wool. many profound changes in the thinking of wheat, plus favorable weather, has changed people and in the policies of the governments profoundly the older concepts regarding of European nations. Having suffered potentialities in Europe for the marketing of 1hrough food privations as a result of war, wheat. The situation can be illustrated the peoples and their governments have de­ effectively by comparing the 5-year average European Wheat Requirements veloped strong nationalistic tendencies to wheat production in several countries dur­ be as self-sufficient in food as the agricul­ ing the period 1935-29 with the 5-year period tural economy of the country will permit. from 1945-49. France, Germany, and Sweden EXTENSION OF REMARKS This policy has been implemented by high all produced much leas wheat during the OF p:rice supports for agricultural products, period 1945-49 than during the period 1935- especially wheat. Several E'uropean coun­ 39 but Switzerland increased production HON. ANDREW F. SCHOEPPEL tries encourage the growing of wheat with slightly. The specific increases are showT.. OF KANSAS support prices higher than these in the in this table: IN THE SENATE OF THE UNITED STATES Wheat pr<>duction Tuesday, June 7, 1955 .Average, Average, Mr. SCHOEPPEL. Mr. President, I 193&-39 1945-49 1954 Increase ask unanimous consent to have printed in the RECORD a paper entitled "European Bu&hels Bushels Bmkels Percent Wheat Requirements," which was pre­ France ______------286, 505, 000 238, 200, 000 386, 500, 000 62 sented by Dr. John A. Shellenberger at Germany (Western) __ ------92,400,000 67,420,000 105, 600, 000 67 Sweden ______-_- __ ------25,351,000 23,222,000 37,870,000 63 the Hutchinson meeting of the Kansas Switzerland ______------__ - 6,050,000 7,800,000 9,370,000 20 Wheat Improvement Association on May 27. Dr. Shellenberger is head of the flour and feed milling industries depart­ However, the 1954 wheat harvest in France isfactory than shipments f:rom the United ment of Kansas State College. He is was 62 percent above the average production States. The opinion prevails, in some quar­ also a consultant to the Grain Division of for the 5-year period 1946-49; for Germany ters of Europe, that only the poorer quality the Foreign Agricultural Service in con­ the same comparison shows an increase of wheats are delivered to port terminals for 57 percent; Sweden 63 percent, and Switzer­ export. It is therefore important to learn nection with the world wheat quality land 20 percent. It becomes obvious that what quality o! wheat is reaching Europe ~urvey. Europe is not dependent to the same extent from the United States and how these ship­ I believe that Dr. Shellenberger, in a.s previously upon the importation o! wheat. ments compare in quality with cargoes from the presentation of his paper, discusses Thus market potentialities have been re­ other countries. some matters which are very important duced. But most o! the wheat produced in Foreign buyers of United States wheats to the wheat-producing sections of the Europe ls soft wheat; therefore, there con­ often complain that our system of grain country, not only in my State, but in tinues to be a market for strong type wheats. grades and standards is inadequate or mis­ other states. He has sought to point out There are two important aspects in the leading ln.so:far as describing the milling and European market for wheat that need to be baking quality to be expected from wheat ways to deliver better wheat than we reemphasized, first, the large increase in the of a particular grade and market class. have been supplying for some of the production of wheat and, second, the need FAS has prepared material for our agricul­ export shipments. for the importation of strong wheats to blend tural attaches which explains the signifi­ The PRESIDING OFFICER. · Is there with the locally grown wheats to produce cance of our grain standards. Unfortu­ objection to the request of the Senator satisfactory flour for bread production. nately for m, the only other important from Kansas? Thus there is a market for United States wheat exporter using numerical grades is Mr. LANGER. Mr. President, reserv­ wheat, if the price is right and the quality Canada. The coincidence of wheat of com­ ing the right to object, may I inquire who satisfactory. It is in regard to the quality paratively uniform baking value, and some­ of our wheat exports that your special atten­ what more rigorous grade specifications for this gentleman is? tion is directed. damage and foreign material, makes a Cana.­ Mr. SCHOEPPEL. He is the head of The United States Department of Agricul­ dian No. 1 or No. 2 an appreciably more the flour and feed milling industries ture through its Foreign Agricultural Serv­ valuable wheat than our No. 1 or No. 2. The department of Kansas State Agricultural ice has worked hard to develop markets for Canadians enjoy another advantage in that College. He has made a considerable wheat in foreign countries. To be com­ the average protein of their exportable sur­ study of wheat. He is also a consultant petitive in a market it is essential, among plus will range between 12 and 13 percent, to the grain division of the Foreign other things, to know the caliber o! your whereas a special contract specification is competition with respect to price and the required to insure the delivery of such pro­ Agricultural Service, in connection with quality of the meTchandise. To obtain fac­ tein wheat from the United States. the world wheat quality survey. tual information on the quality of wheat Our system of official grades, on the other Mr. LANGER. Is he an expert on soft imported into northern European countries hand, is much more informative to a buyer wheat, or hard wheat? the Foreign Agricultural Service has ar­ than is the system off. a. s. deliveries under Mr. SCHOEPPEL. He is an expert on ranged to obtain samples from cargoes of which much of the European imports are all kinds of wheat. wheat as the ships arrive at the ports and purchased. In countries that do not have Let me say to the distinguished Sen­ for the determination in the United States a grading system, admixtures of Durum with a tor from North Dakota that if he will of the complete grading, chemical analysis, White and Hard and Soft Winter wheats baking, and physical dough determinations are often encountered as well as high check up on the article which I am pre­ of the samples. I have had the pleasure of amounts of shrunken or broken kernels, for­ senting for the RECORD, he will find it being associated with this project and I eign seeds, and also stones. informative and productive of the devel­ thought you might like to have some advance The application of our grading system to opment of a better quality of wheat for information on the tests being performed some of the wheat shipments arriving in general use over the country. I heartily and the results obtained. It is expected Europe from other countries would be an commend the article to the Senator from that approximately 136 samples will be re­ improvement because the grading and classi­ North Dakota. ceived from various importing countries dur­ fication of the wheat would provide much The PRESIDING OFFICER. Is there ing the sampling period extending through helpful information regarding the character­ the months of February, March, and April of istics of the shipment prior to its arrival, objection to the request of the Senator this year. The evaluation work on the sam­ from Kansas? ples will be completed by June 30 and full Thus the situation prevails whereby the There being no objection, the paper details will be available later from the For­ application of our grading system helps our was ordered to be printed in the RECORD, eign Agricultural service, USDA. Nation to deliver better wheat than that as follows: It is common knowledge that dissatisfac­ which originates from some other exporting tion has been expressed in Europe with the countries. But our system is not functioning EuROPEAN WHEAT REQUIREMENTS quality of some of the wheat shipments as effectively as would be desirable for the (By Dr. J. A. Shellenberger) originating from the United States. Usually delivery of wheat of a quality competitive The feeling seems to prevail among wheat the grain trade rates Canadian and Argen­ with that which is being delivered by other growers that surplus wheat, regardless of tine wheats as being stronger and more sat- exporters, particularly Canada. 1955 CONGRESSIONAL RECORD - HOUSE 7827 The majority of the wheat shipments from planned than all four of the States that purchases will be made available for sale to the United States arriving in the Northern benefit from it put together: them by the primary producers. European countries during the period Feb­ The reply to your question is that no di­ ruary-April 1955 graded Soft Red Winter. States that would What taxpayers rective was issued by the Office of Defense benefit from project: would pay Comparing the ha.rd wheat shipments from Colorado ______,______$36, 400, 000 Mobilization for the reason that in the opin­ the United States which graded Dark Hard ion of my general counsel the rights of the New Mexico______15, 200, 000 or Hard Winter or Dark Northern or North­ Utah ______16,000,000 nonintegrated users are set forth very clearly ern Spring with the wheat shipments from in existing contracts between the producers some of the other exporters, it is under­ Wyoming______8,000,000 and the Government. standable why our hard wheats are not in Total ______$75,600,000 As you pointed out in your letter, the guar­ greater demand. We are supplying, on the anteed market contracts between the Govern­ average, hard wheats of slightly lower test ment and the primary aluminum producer!$ weight and protein content than are obtain­ The taxpayers in these 13 States would provide that two-thirds of the production of able from some of the other exporting coun­ pay: primary aluminum covered by the contracts, Massachusetts ______$127,600,000 tries. The flours from the United States Maryland ______. ______102,400,000 less the quantities purchased by the Govern• ment, must be made available by the primary wheats have a lower absorption and produce Pennsylvania ______277,600,000 smaller loaf volumes than do the flours Texas ______194,400,000 producers for sale to the nonintegrated milled from important competing hard users. Illinois______276, 000, 000 wheats. In other words, even the hard wheat Michigan ______196,400,000 Accordingly, when the Office of Defense shipments from the United States are sur­ California ______372,800,000 Mobilization directed the General Services passed in strength and in desirability by the New Jersey______144,000,000 Administration to reduce its acquisition of wheats delivered by some of the other ex­ aluminum for the stockpile by 150 million New York______493, 600, 000 porters. Ohio ______236,000,000 pounds in the :first 6 months of 1955, the pri­ A partial solution can be effected as a re­ mary producers were obligated by contract MissourL______100, 000, 000 sult of the efforts of our foreign representa­ Indiana______102,400,000 to make additional aluminum available to tives to explain the quality characteristics of the nonintegrated users unless deliveries al­ our market classes. There is no doubt, how­ Wisconsin______88,0-00,000 ready arranged were sufficiently in excess of ever, about the need for improving the qual­ Twenty-eight States each would pay contract obligations as to cover the incre­ ity of our bread wheat exports to Europe. ment. We can take pride in the fact that we are more than the State of Colorado. In carrying out its responsibilities for ad­ supplying better wheat to Europe than that Thirty-seven States would pay more ministering procurement contracts, the Gen­ grown locally or delivered from some other than the State of Utah. eral Services Administration receives peri­ countries, but generally the fact seems to be Thirty-nine States would pay more odic reports as to the distribution of all alu­ that wheat exported from the United States than the State of New Mexico. minum produced in facilities covered by the is less satisfactory for bread-making pur­ Forty-one States would pay more than guaranteed marketing contracts to assure poses than that obtainable elsewhere. the State of Wyoming. that nonintegrated users receive the amount A way must be found to deliver better of aluminum which the primary producers The Congress might as well appropri­ are contractually obligated to deliver to wheat than we have been supplying for ex­ ate money to grow bananas on Pike's port shipments, if we desire to meet the com­ them. Thus far it appears that the primary petition in Europe. Wheat production Peak as to approve the upper Colorado producers have provided nonintegrated users throughout Europe is on the increase. The River project. with primary aluminum in amounts in ex4 wheat produced is predominantly soft and cess of those called for by the contracts. hence hard wheat is required to blend with Sincerely yours, it for the production of bread flour. ARTHUR S. FLEMMING, Mechanization of the baking industry is Available Aluminum Supplies for Director. on the increase in Europe. This trend will increase the requirements for stronger wheat. Industrial Use UNITED STATES SENATE, It is an inescapable fact that a means must COMMITTEE ON INTERIOR be found whereby wheat of better quality is AND INSULAR AFFAIBS, made available for export. This means that EXTENSION OF REMARKS June 6, 1955. farmers must give more serious considera­ OF Mr. ARTHURS. FLEMMING, tion than ever before to the strength char­ Director, Office of Defense acteristics of the wheat grown. It also means HON. W. KERR SCOTT Mobilization, Washington, D. C. that every effort should be made by all seg­ OF NORTH CAROLINA DEAR MR. FLEMMING: Senator MURRAY is in ments of the wheat industry, including Fed­ IN THE SENATE OF THE UNITED STATES Geneva, Switzerland, attending an interna­ eral and State agencies, to work collectively tional conference as United States delegate, to develop and grow better wheat, to pre­ Tuesday, June 7, 1955 and I have communicated with him about vent the debasement of good wheat by ad­ your letter of May 24 in answer to his of mixtures of poor quality wheat or foreign Mr. SCOTT. Mr. President, at the May a. We have now exchanged five letters material, and to segregate wheat on the request of the senior Senator from Mon­ on the current primary aluminum shortage basis of protein, variety, and baking quality tana [Mr. MURRAY], I ask unanimous for independent users and your recent order considerations. consent that an exchange of correspond­ deferring aluminum shipments to the stock­ There is no hungry Europe ready and ence between his office and the Director pile. The Senator recognizes that you have willing to take whatever quality wheat we of the Office of Defense Mobilization, only recently received his latest letter. How­ may wish to dispose of and all indications ever, he considers that your answers to date Attorney General Herbert Brownell, Jr., have been unseemly brief and almost totally are that the demands for strong, good qual­ and Representative SIDNEY R. YATES, of ity wheat will increase rather than decrease nonresponsive. Illinois, relating to available aluminum In his initial letter to you dated April 1 in the years ahead. supplies for industrial use, be printed in he pointed out that a deception was perpe­ the RECORD of today. trated in the writing of the Government There being no objection, the corre­ guaranteed marketing contracts. This re­ spondence was ordered to be printed in sulted in a travesty on the original intent of these contracts which sought in part to as 4 Bananas on Pike's Peak? the RE'CORD, as follows: sure additional supplies of primary alumi­ ExEcuTIVE OFFICE OF THE PRESIDENT, num for nonintegrated users. Your failure EXTENSION OF REMARKS OFFICE OF DEFENSE MOBILIZATION, to comment on this statement leads him to Washington, D. C., May 24, 1955. believe that you share this view. OF Hon. JAMES E. MURRAY, You provide no answer to question No. 1 United States Senate, of Senator MURRAY'S April 1 letter which HON. CRAIG HOSMER Washington, D. C. asked whether the Government knows if OF CALIFORNIA DEAR SENATOR MURRAY: This will acknowl­ the provisions of the guaranteed marketing edge your letter of May 3, 1955. You ask by contracts are being carried out by the pri­ IN THE HOUSE OF REPRESENTATIVES what directive to General Services Admin­ mary producers. He assumes, therefore, that Tuesday, June 7, 1955 istration, the agency charged by Executive you do not know whether these provisions order with administering the guaranteed are being enforced. Mr. HOSMER. Mr. Speaker, if Con­ marketing contracts, or to any other Gov­ You indicated, in answer to question No. 2, gress approves the multibillion dollar ernment agency, has the Office of Defense · that the General Services Administration is upper Colorado River project, it would Mobilization protected the rights and inter­ responsible for administering the guaranteed ests of the nonintegrated aluminum users marketing contracts. Senator MURRAY wants not quite grow bananas on Pike's Peak, by guaranteeing that the additional alumi­ to know who in GSA determines policy mat­ but the taxpayers in each of 13 States num available for industrial use as a result ters concerning equitable distribution of alu­ would pay more for the project as now of the cancellation of proposed stockpile minum under these contracts. CI--492 7828 CONGRESSIONAL RECORD - HOUSE June 7 In answer to the Senator's question No. 3 UNITED STATES SENATE, topped off this legislative kudo by sing­ of April 1 regairding steps taken by GSA ~ COMllrlITrEE ON INTERIOR AND ing "For he's a jolly good fellow" at the assure equitable distribution of aluminum INSULAR AFFAIRS, conclusion of their vote. Every member under the contracts and in answer to his June 6, 1955. question of May 3 asking specifically what Hon. HERBERT BROWNELL, Jr. of the legislature, Democrat and Repub­ directive action ODM took to protect the United States Attorney General, lican, joined in coauthorship of the reso­ rights and interests of the nonintegrated Department of Justice, lution, which received similar speedy aluminum users, you indicate that no direc­ Washington, D. C. treatment in the California State Senate. tive was issued because, in the opinion of DEAR MR. AT!'ORNEY GENERAL: Senator The resolution declared that while your general counsel, "the rights of the non­ MURRAY is in Geneva, Switzerland, attend­ Hanson, as a reporter, often differed with integrated users are set forth very clearly ing an international conference as United legislators and politicians, he had ''held in existing contracts between the producers States delegate, and so he has asked me to the respect and affection of thousands and the Government." transmit to you a copy of a letter from The testimony of the three primary pro­ Director Arthur S. Flemming of the Office of men and women in public life in Cali­ ducers on Tuesday and Wednesday of this of Defense Mobilization regarding the alu­ fornia." It praised Hanson as a "stu­ week, May 24 and 25, before House Small minum shortage for independent users and dent of government" as one who "during Business Subcommittee No. 3 belies the the reply which the Senator directed to be all his years had done an outstanding clarity which you contend exists in these sent to Mr. Flemming. job of consistent, forthright, and objec­ contracts. Each of these primary producers Sincerely yours, tive reporting." The resolution closed appears to have a separate and different view CHARLES A. MURRAY, with a "wish for many more years of of the rights of the nonintegrated users Administrative Assistant. happiness together for Chick and his under these contracts. Mr. 3.ichard S. Reynolds, Jr., president of wife Helen." the Reynolds :Metals Co., told the subcom­ UNITED STATES SENATE, Certainly, all of us who serve from mittee: "Our primary reason for producing COMMITI'EE ON INTERIOR AND California in Washington echo this ap­ pig was to provide our own fabricating plants INSULAR AFFAIRS, preciation to a true and able friend and with raw material." He also told the sub­ June 6, 1955. join in the good wishes for future hap­ committee: "We are fabricators and mer­ Hon. SmNEY R. YATES, piness for him and his family. chants; we went into the business for Chairman, Subcommittee No. 3, that purpose, not to supply other people Select Committee on Small Business, aluminum." House of Representatives, Reynolds does not consider itself a sup­ Washington, D. C. plier of aluminum pig, notwithstanding re­ DEAR CONGRESSMAN YATES: Senator MUR­ Actual Cost of Reclamation Projects quirements of the guaranteed marketing RAY is in Geneva Switzerland, attending an Below Cost Estimates contracts that they sell primary aluminum international conference as United States to independent users. Has it been Reynolds' delegate, and in his absence .I am acknowl­ intention not to live up to their contracts edging your letter of May 31. EXTENSION OF REMARKS with the Government? I am sure the Senator will be pleased at OF In 1951 the same Mr. Reynolds, testifying your reaction to his letter of May 24 and that before a subcommittee of the House Judi­ it will be inserted in the record of your pro­ HON. WAYNE N. ASPINALL ciary Committee studying monopoly in the ceedings. OF COLORADO aluminum industry, testified: "But let me Senator MURRAY has asked me to transmit point out we went into the aluminum pro­ to you a copy of Mr. Flemming's answer to IN THE HOUSE OF REPRESENTATIVES duction not to supply ingots; we went in as his letter of May 3, together with our answer Tuesday, June 7, 1955 having a source of raw material for our own thereto. fabricating plants. We have fabricating With best regards, t am, Mr. ASPINALL. Mr. Speaker, on plants that can fabricate twice as much Sincerely yours, numerous occasions recently in hearings aluminum as we can produce." CHARLES A. MURRAY, before the House Committee on Interior Either Reynolds' representation that it Administrative Assistant. and Insular Affairs and before this body would supply aluminum to independent statements have been made which leave users under a guaranteed marketing con­ the impression that the Bureau of Recla­ tract was not true or the contract was given to Reynolds by tl:.c Government irrespective mation consistently underestimates the of Reynolds' disavowal of intention to live Chester G. Hanson, of the Times, Retires cost of its projects. In order to have ac­ up to the contract. curate information on this matter I re­ The benefit of the Nation's credit was ex­ EXTENSION OF REMARKS quested the Commissioner of Reclama­ tended to Reynolds to support its own OF tion to furnish by Subcommittee on credit to enable the company to build Irrigation and Reclamation a compari­ facilities to produce additional primary HON. CRAIG HOSMER son of project final costs, or the pres­ aluminum. Either they obtained the bene­ OF CALIFORNIA ently estimated final costs in the case of fits of Government aid by trick and device, IN THE HOUSE OF REPRESENTATIVES projects not yet completed, with the orig­ or it was forced upon them by a Govern­ inal estimates of costs that were fur­ ment agency that knew in advance that the Tuesday, June 7, 1955 company would not live up to the guaranteed nished the Congress at the time of marketing contract. Mr. HOSMER. Mr. Speaker, for authorization. The general counsel of GSA, testifying many years anyone remotely connected This information has been furnished before the House Small Business Subcom­ with politics in southern California, on for all Bureau of Reclamation projects mittee Number 3 on May 23, told the sub­ the local, State, or National levels, has which have been authorized and started committee the primary producers have a moral obligation to sell primary aluminum known, respected, and loved "Chick" since the end of World War II. The produced from facilities covered by these Hanson, political columnist and corre­ comparison demonstrates that the Bu­ contracts to the nonintegrated users. Does spondent for the Los Angeles Times. In reau of Reclamation in recent years has this moral right flow from the contract? addition, his pithy style, accurate report­ been consistently conservative in its esti­ In light of these varying versions of the ing, and the philosophical musing which mates of project costs. The study shows obligations of the primary producers under sometimes crept into his writing en­ · that the Bureau of Reclamation has built these contracts, Senator MURRAY insists on deared him to millions of readers. or is building all of the projects author­ having your counsel's views on the rights "Chick," whose formal byline identi­ ized and started since World War II at and obligations of all parties to the con­ tracts. This should not be too difficult to fies him as Chester G. Hanson, is retiring a cost of only about 4 percent above detail if the contracts are as clear as your from service with the Times after having initial estimates as compared with an counsel tells you they are. served with that newspaper since 1932. increase due to inflation alone of from Irrespective of any revival of the third The passing of time has brought him up 15 to 30 percent, depending upon the round of primary aluminum expansion to the retirement age as inevitably as construction cost index used. Expressed which seems presaged by recent announce­ it brought this milestone to the lives of in another way this means that the Bu­ ment in the press that two companies have millions of others. reau of Reclamation is building its over­ made proposals to enter the primary pro­ all program for 10 to 20 percent below duction field, Senator MURRAY wants a His thousands of friends have refused prompt and detailed answer to all the fore­ to let the event go uncelebrated. In the estimates made at the time of au­ going. fact, the lower house of the California thorization if these estimates were ad­ Sincerely yours, Legislature not only passed unanimously justed to reflect the general rise in CHARLES A. MURRAY, a congratulatory resolution wishing construction costs at the time of actual Administrative Assistant. Hanson good luck in the future, but construction. 1955 CONGRESSIONAL RECORD - HOUSE 7829 This study indicates, then, that in re­ ments were made, as computed by the Bu­ struction or rehabilitation. This program cent years the Bureau of Reclamation reau of Reclamation, the initial estimates covers practically all types of construction would be increased to $581,124,900 on the performed by the Bureau of Reclamation in­ has an excellent record in estimating basis of inflation alone. The Bureau of Rec­ cluding earthwork, canal construction, dis­ costs for reclamation projects. lamation cost index is based on periodic tribution system repair, concrete structures, In view of pending legislation on recla­ studies of current bids on the materials major concrete dams, powerplants, and trans­ mation projects I am sure that my col­ and labor that go into reclamation projects. mission lines. The total of the cost estimates leagues are interested in this informa­ As a further check, our staff also adjusted of these projects at the time the work was tion and I desire, therefore, to include the total initial estimates of $506,232,898 to authorized is $506,232,898. the material and the letter of transmit­ reflect the independent index of construc­ During the period these projects were au­ tion cost as published by the Engineering tal in the CONGRESSIONAL RECORD follow­ thorized and placed under construction the News-Record in the October 7, 1954, issue. cost of labor, materials, and other construc­ ing these remarks: This index is a composite of the cost of tion services has experienced a continual rise UNITED STATES selected construction materials and common so that construction costs at the end of fiscal DEPARTMENT OF THE INTERIOR, labor and does not, therefore, reflect fully year 1954 or the beginning of fiscal year 1955, BUREAU OF RECLAMATION, all the categories of cost that enter into the latest date that cost data are available, Washington, D. C., May 26, 1955. reclamation projects; for example, skilled are considerably greater than at the close of Hon. WAYNE N. ASPINALL, labor. Based on the Engineering News­ World War II. The composite construction House of Representatives, Record construction cost index adjustment, cost index of the Bureau of Reclamation, Washington, D. C. the initial Reclamation estimate would be which is based on periodic studies of cur­ MY DEAR MR. ASPINALL: In compliance increased to $657,320,600. Of the 27 projects rent bids on materials and labor that go into with your recent request, I am pleased to included in the analysis, 13 have been com­ concrete dams, power generating plants, furnish you a comparison of the presently pleted and the remaining 14 are well under­ power transmission systems, earth dams, estimated costs of all Bureau of Reclamation way, ranging from 4 percent complete in canals, laterals, and drains shows this over­ projects which have been authorized 3:nd the case of Glendo to 99 percent in the case all increase to be 1.40. By comparison, the started since the end of \iv orld War II with of Cachuma. However, in the case of index of construction costs published in the the estimates of their cost that were fur­ Glendo, although only a small amount of Engineering News-Record for October 7, 1954, nished the Congress at the time of authori­ actual work has been done, the major con­ which is based on costs of selected construc­ zation. By including every one of the proj­ struction contract on Glendo Dam has been tion materials and common labor, shows this ects which has been authorized and started awarded. The total cost to date of all of overall increase to be 1.98. The rise in costs during this period, we avoid selecting only these 27 projects, plus the estimated cost of during only a portion of this period for any those projects which would present the best completion of those projects not yet com­ particular project would be something less picture from the Bureau of ~ecla:mation's pleted, is $526,833,790. than 1.40 or 1.98, depending upon the date point of view, and we also avoid domg what This study 3hows that Reclamation has the project was authorized and the years some of Reclamation's critics have done­ built, or is building, all of the projects au­ when funds were spent on construction. selecting only certain projects which, with­ thorized and started since World War II, at Therefore, if the estimated costs of recla­ out detailed explanation, would appear to a cost of only about 4 percent above initial show that Reclamation consistently under­ mation projects and rehabilitation work estimates, as compared with an increase due which were authorized since World War II estimates costs. Actually, as the attached to inflation alone of 15 percent based on the comparison demonstrates, Reclamation, in were adjusted in accord with the cost in­ Bureau of Reclamation index and 30 percent dexes and without taking into account any recent years, has been consistently conserva­ based on the Engineering News-Record con­ tive in the estimate of project costs. other factors which affect the estimates, such struction cost index as applied to the times as unforeseen site conditions, change in proj­ The date selected as a cutoff point was the during which the work was done. end of World War II, which gives us approxi­ ect plan, or bids actually received, the cost of Expressed in another way, Reclamation is this work today would greatly exceed the es­ mately a 10-year period .which should be building its overall program for 10 percent sufficient to demonstrate that the Reclama­ timates at the time the work. was authorized. (based on the Bureau of Reclamation index) If, for instance, the unspent portion of the tion adininistrators and engineers have been to 20 percent (based on the Engineering making good on the estimates which they estimates of these projects had followed the News-Record index) below the estimates construction cost index of the Engineering furnish to the Congress and congressional made at the time of authorization, if these committees when seeking the authorization News-Record since the time the initial esti­ estimates were adjusted to reflect the general mates were made, the total today of the esti­ of new projects. rise in construction costs at the time of With more research, the analysis could mates of construction in progress and actual actual construction. cost of work completed would be $657,320,600. have been extended to cover a longer period There is enclosed a table showing the and we are confident that such a larger study Similarly, if the estimates of this work were analysis of each of these 27 Reclamation based on the composite cost index of the would result in equally favorable findings, projects. While it is true that changes in if all pertinent factors were considered. Bureau of Reclamation the total would be project scope and the individual makeup of $581,124,900. Compared to these figures the However, to account adequately for pre­ any one project might cause a somewhat dif­ World War II cost estimates, we could be total of the official fiscal year 1955 estimates ferent conclusion for that one project than for projects under construction and actual faced with endless argument, as in the past, was reached by applying the general con­ not only on how to adjust for the general costs of completed work is $526,833,790. struction indexes to the initial cost, the To date construction has been completed inflation, which would be relatively simple, special circumstances tend to offset each but also on how to evaluate cost increases on 13 of the 27 projects and progress on the other in the consolidation of the entire pro­ remaining 14 ranges from 4 percent of com­ due to partial or complete shutdown because gram. Consequently, it is believed that the of the war and to justify changes in scope of pletion on Glendo to 99 percent on Cach­ analysis of the en tire new program since uma. However, despite the fact that only 4 the project which took place during the war 1945, as outlined above, is a fair one. period, when time was available for studying percent of the cost of Glendo has been spent, In your use of this material, you may wish the major contract has been awar~ed, and ways and means for improving and generally to use only one of the indexes in order to enlarging the project to meet increased needs the present estimate appears satisfactory. simplify the presentation. If you used the From the figures cited it is evident that for at the later date of initial operation. Bureau of Reclamation cost index, there From time to time Congress has written all of the projects authorized and started would be a better correlation with some of since World War II, the Bureau of Reclama­ into the appropriation acts provisions to the the other analyses that have been prepared effect that current construction prices should tion is completing the work at an estimated by this office on cost increases. On the other cost of 80 percent of what the initial esti­ be used. For example, the Interior Depart­ hand, if you used the construction-cost in­ ment Appropriation Act of 1950 provides mate would have been if it had been adjusted dex of the independent non-Federal organi­ to the index of the Engineering News-Record, "that no part of this appropriation shall be zation, such as the Engineering News-Record, available for the preparation of any com­ or 90 percent of what the cost would have you could better refute criticism that Recla­ been if it had been adjusted to the Bureau prehensive plan or project report the con­ mation had developed a special yardstick to struction estimates for which are not based make its estimates look favorable. As a of Reclamation composite index. upon current construction prices and matter of fact, Reclamation's cost-estimating The attached tabulation shows for each costs. • • •" Similar language appeared in record looks even more conservative when project the estimated cost at the time the the appropriation acts of 1947, 1948, and 1949. the Engineering News-Record index is used project was authorized, what the estimated By such provisions it is clear that the than when its own index is used. cost would have been at the beginning of fis­ Congress did not want the Bureau of Recla­ Sincerely yours, cal year 1955 if the uncosted portion of the mation to make any guesses as to future E. G. NIELSEN, initial estimate had followed the Engineer­ trends in its project cost estimates. Acting Commissioner. ing News-Record cost index and the Bureau Since the end of World War II the Bureau of Reclamation composite index, respectively, of Reclamation has had authorized and put under construction 27 projects, or new divi­ COMPARISON OF BUREAU OF RECLAMATION COST and the official estimated cost or completed sions· of projects, the initial cost estimates ESTIMATES OF ALL PROJECTS AUTHORIZED cost of the projects at the beginning of fis­ for which at the time of authorization to­ AND STARTED SINCE THE END OF WORLD cal year 1955. taled $506,232,898. If this amount is ad­ WAR II While, in general, the estimated costs. of justed to reflect construction c.ost increases Since the end of World War II 27 reclama­ individual projects based on the construction existing at the times when Federal invest- tion projects have been authortzed for con- cost indexes as shown in the tabulation are 7830 CONGRESSIONAL RECORD - HOUSE June 7 higher today than the current official esti­ for the higher construction costs prevalent Thus, considering the overall program mates, there are several instances where this in that area, nor include adequate provision which has been authorized and started since does not occur. In the case of the Cachuma for the type of construction contemplated. World War II, which includes the broad range project, approximately $15 million was added On the other hand, as a result of favorable of construction undertaken by this Bureau, to the construction cost in addition to gen­ bids and savings through modification in and taking into account both the favorable eral price increases as a result of unforeseen project plan, the current estimates for the and unfavorable circumstances where cur­ and extremely unfavorable conditions en­ Weber Basin, the Palisades project, and the rent or completed costs are compared to the countered in excavation of the tunnel. The Glendo unit are substantially less than the initial estimates, it is seen that the Bureau current estimate for the Eklutna project has estimates at the time the projects were greatly overrun the initial estimate adjusted authorized and it is expected that these of Reclamation is constructing these proj­ to 1955 prices by virtue of the fact that the projects will be completed at a cost in accord ects at a. cost less than would be the case initial estimate was Reclamation's first job with the current estimates with resultant if all costs followed the general price trend in Alaska and did not account sufficiently savings to the Government. during the same period. Comparison of Bureau of Reclamation project cost estimates at time of authorization; adjusted to reflect subsequent changes in construction cost indexes; and current official estimate or completed cost (This table covers all projects or separable divisions of projects which have been authorized for construction since World Warm

Initial estimate adjusted Estimate at time of authorization to date investment Percent actually made 1 of con­ Official struction Project estimated com­ Date of Date of cost 2 fiscal E.N.R. BuRec year 1955 pleted author­ estimate, Amount of construction composite June 30, ization, fiscal estimate 1955 fl.sea, year year cost indexes cost index

Lewiston Orchards, Idaho._------______._. ____ • ____ ._ --• -_. 1947 1946 $1,466,000 $1,971,000 $1,758,000 $2,484,000 100 :r?r~1~tio1i District, Oregon. ______1947 1947 a 3,030,000 4,383,000 3,866,000 6,677,000 30 !~~~~· 1948 1947 220,000 272,000 257,500 206,000 100 Cachuma, California_. ______-- _- __ -_------1948 1947 32,310,000 46,458,000 Hayden Lake Unit, Rathdrum Prairie, Idaho ______40,428,000 43,816,000 99 Kennewick Division, Yakima, Wash ______1948 1947 90,650 111,000 103,400 118,000 100 1948 1947 10,736,000 17,000,000 14,470,000 13,760,000 69 Preston Bench, Idaho ______.------1948 1948 453,000 463,000 461,700 450,000 100 Wellton-Mohawk Division, Gila, Ariz ______1948 1946 24,376,948 42,489,000 33,149,000 39,940,000 86 Ochoco Dam Division, Deschutes, Oreg ______1948 1948 1,500,000 1,644,000 1,592,000 849,000 100 Solano, Calif __ • ______. ______------1949 1948 45,577,000 63,783,000 54,882,000 47,111,000 21 American River Division, Central Valley, Calif. ______1950 1949 59,200,000 73,695,000 64,245,000 45,924,000 g5 Fort Sumner, N. Mex ______------1950 1948 1,798,000 1,940,000 1,867,000 2,432,000 100 Grants Pass-Northwest Pipeline, Deschutes, Oreg ______1950 1949 100,000 100,100 99,900 100,000 100 Middle Rio Grande, N. Mex ______1950 1947 30,179,000 48,234,000 40,784,000 29,606,000 23 Weber Basin, Utah ______------_. __ ------1950 1949 69,534,000 88,968,000 77,168,000 65,362,000 22 Sacramento canals, Central Valley, Calif ______1951 1951 54,396,000 62,167,000 63,117,000 57,762,000 6 1951 1949 20,365,400 24,771,000 20,836,000 29,500,000 100 fr1i:~o~:::1!n(Kendrick, Wyo ______1951 1951 6,377,000 6,888,000 7,143,000 6,428,100 100 North Side Pumping Division, Minidoka, Idaho ______1951 1948 11,395,000 15,821,000 13,531,000 9,759,000 39 Palisades (present progress), Idaho ______------_ ------___ --- 1951 1949 76,601,000 96,531,000 83,631,000 74,400,000 61 Vermejo, N. Mex ______------______---______-- 1951 1950 2,679,000 3,489,000 2,980,000 2,743,000 100 Savage Rapids Dam, Grants Pass, Oreg ______1953 1952 678,000 722,000 705,000 713,490 100 Avondale, Idaho ____ ------1954 1953 221,100 230,000 224,100 277,000 100 Dalton Gardens, Idaho ______------______------____ _ 1954 1953 267,800 277,500 271,300 270,200 100 Alamogordo Spillway, Carlsbad, N. Mex ______1955 1954 1,526,000 1,526,000 1,526,000 1,526,000 20 Crescent Lake Dam, Oreg ______------_ Glendo unit, MRBP, Wyoming ______1955 1953 297,000 310,000 302,000 320,000 80 1955 1953 50,859,000 53,077,000 51,727,000 44,300,000 4 Total. ______• ______• ______------1----__ ------_ ------·I--- 506, 232, 898 657, 320, 600 581, 124, 900 526, 833, 790

1 Amounts remaining to be invested adjusted to latest ful. year (fiscal year) for • Does not include cost of Minnesota unit which is now being considered for author­ which indexes are available. ization as part of Paonia project. 2 For completed projects, estimates shown are actual total costs.

A Bill To Provide Assistance to Communi­ I believe that this legislation if passed enter such communities to stimulate new will do much to help develop world trade. markets. ties, Industries, Business Enterprises, It will certainly help the people of the Second. Unemployment compensation and Individuals To Facilitate Adjust­ United States of America to make ad­ assistance would be doubled. Under ments Made Necessary by the Trade justments that will be necessary if we present law, jobless payments last for are to operate an effective reciprocal 26 weeks. Under the trade adjustment Policy of the United States trade policy. bill, this would be extended to 52 weeks, This trade adjustment bill would Third. Older workers would be al­ EXTENSION OF REMARKS establish a Government-wide adjust­ lowed to retire at the age of 60 instead ment assistance board which would be of 65. In addition, counseling and place­ OF empowered to step in when low tariffs ment and special training allowances HON.THOMASJ.DODD under the reciprocal trade policy would would be allowed, coupled with special endanger the American market. It moving allowances for workers seeking OF CONNECTICUT would provide that if the President in employment in other areas and fields. IN THE HOUSE OF REPRESENTATIVES the overall national interest disregards This legislation would, in my opinion, Tuesday, June 7, 1955 the escape clause or peril point findings make the individual enterprise system of the Tariff Commission, he could at even stronger than it now is, relative to Mr. DODD. Mr. Speaker, I have today the same time authorize the Board to totalitarian systems. It would go a long introduced a bill to provide assistance extend the following benefits to United way toward dissipating unreasoning fear to communities, industries, business en­ States communities and industries which and, at the same time, would strengthen terprises, and individuals to facilitate are hurt by the foreign competition. our own economy by bringing the econ­ adjustments made necessary by the trade First. The Government would finance omies of the other countries of the free policy of the United States. technical assistance to companies and world closer to ours. Unity here means This proposal is identical to H. R. 229, communities needing it, to encourage di­ economic strength. Economic strength which was introduced by our esteemed versification. Engineers, market re­ makes spiritual courage and determina­ colleague, Mr. HARRISON WILLIAMS, of searchers, and other technicians would tion easier, and together with the mili­ New Jersey. be financed for expert surveys out of tary preparedness that is already under I am introducing this bill today for the Federal funds. Easier tax provisions for way, such strength can go a long way purpose of cosponsorship with Congress­ building new plants would be allowed toward the creation of a truly strong man WILLIAMS, of New Jersey. and import firms would be encouraged to free world. 1955 CONGRESSIONAL RECORD - HOUSE 7831 The text of the bill is as follows: (c) require by subpena or otherwise the in a community which is eligible· or may be attendance of witnesses and the production determined to be eligible for the benefits pro­ A bill to provide assistance to communities, of books, papers, and documents; to admin­ vided for by this act. industries, business enterprises, and indi­ ister oaths, to take testimony, to have print­ In determining whether a particular busi­ viduals to facilitate adjustments made ing and binding done; and to make such ex­ ness enterprise is eligible for the benefits necessary by the trade policy of the United penditures as it deems advisable within the provided for in this act, the Board shall con­ States amount appropriated tl_lerefor. Any mem­ sider what portion of the total production of Be it enacted, etc., That this act may be ber of the Board may administer oaths or such enterprise consists of the production of cited as the "Trade Adjustment Act of 1955." affirmations to witnesses appearing before an article identical to or directly competitive PURPOSE the Board. Subpenas shall be issued under with the article with reference to which this the signature of the Chairman and shall be act shall have been invoked. In determining SEC. 2. (a) It is recognized that the main­ served by any person designated by him. The whether any such enterprise or any com­ tenance of a sound domestic economy and Board is authorized to exercise any of the munity or industrial development corpora­ ~ealthy international relations requires that powers conferred upon the Securities and tion is eligible for such benefits the Board the United States engage in trade among the Exchange Commission by subsection ( c) of shall also consider whether such enterprise, free nations of the world. Further, the Re­ section 21 of the Securities and Exchange community, or industrial development cor­ ciprocal Trade Agreements Act of 1934 re­ Act of 1934, and subsection (d) of such sec­ poration has developed satisfactory pro­ flects the congressional desire that the Presi­ tion ·shall be applicable to witnesses before posals for programs of economic adjustment dent be authorized to negotiate with the the Board; and consonant with the purposes of this a.ct. other countries of the world with a view to (d) establish such rules, regulations, and ( d) As used in this act-- lowering trade barriers. The Congress has procedures as may be appropriate to per­ ( 1) The term "industrial development cor­ also recognized, in enacting the peril point mit the Board to perform the functions pre­ poration" includes any body organized and and escape clause provisions of the Trade scribed in this act. operated by private citizens for the purpose Agreements Extension Act of 1951, that there SEC. 5. (a) Whenever the President, in ac­ of aiding the development of a more balanced are situations in which the reduction of cordance with the provisions of sections 4 and diversified economy or diversification of trade barriers, although redounding to the and 7 of the Trade Agreements Extension Act production in a community through indus­ benefit of the Nation as a whole, may have of 1951, as amended by sections 12 and 13 of trial development, the training or retraining serious adverse effects on particular domestic this act, shall determine to invoke the pro­ of employees, or through any other means. industries. These provisions provide mech­ visions of this act with reference to any ar­ (2) The term "employee" includes an un­ anisms for determining at what point reduc­ ticle as to which a modification in the rate employed individual whose last regular em­ tions in trade barriers, either in prospect or of duty or other import restriction, or any ployment shall have been in a business enter­ already accomplished, will have such adverse other concession, has been found either to prise which is eligible or may be determined effects. They provide no method by which threaten or to have caused serious injury to to be eligible for the benefits provided for greater prosperity and security for the Nation in this act. as a whole can be secured by the reduction a domestic industry, he shall notify the of trade barriers, while avoiding or amelio­ Board of his decision. ADJUSTMENT BENEFITS rating the economic losses which particular (b) After the notification by the President SEC. 6. Information and advice: Any busl• communities, industries, enterprises, and in­ provided for above, the Board shall, upon ness enterprise found to be eligible by the dividuals may suffer in the adjustment of application by any community, industrial Board for assistance under this act may ap­ their productive activities which may be .development corporation, business enterprise, ply to appropriate departments and agencies made necessary by such reduction. It is the employee, or organization representing em­ of the Government for technical informa­ purpose of this act to resolve this problem ployees, determine whether the applicant is tion, market research, or any other form of by providing assistance ~o communities, in_­ eligible, or represents persons· eligible, to re­ information and advice which might be of dustries, enterprises, and individuals in the ceive the benefits provided for in this act. If assistance in the development of more ef­ adjustment of their productive activity to the Board shall determine that any com­ ficient methods of production and in the the economic conditions created by the na­ munity, industrial dev~lopment corporation, development of new lines of production. tional trade policy. It _is not the purpose of business enterprise, employee, or organiza­ Similarly, any community or industrial de­ this act to provide a permanent subsidy, but tion representing employees is eligible for velopment corporation found eligible for rather to provide the means by which those the benefits provided for in this act, or rep­ assistance under this act may apply to ap­ affected by lowered trade barriers may be as­ resents persons so eligible, it shall issue a propriate departments and agencies of the sisted in the period of their adjustment. certificate describing the community, indus­ Government for such information and advice (b) It is the intention of Congress that, in trial development corporation, business en­ as will enable it to develop a more balanced determining eligibility for the assistance pro­ terprise, or employees found eligible which and diversified economy. vided for under this act, the act shall be con­ shall conclusively establish for a period of SEC. 7. Loans: Section 207 of the Small strued liberally and that any doubt regard­ 18 months or such shorter period as the Business Act of 1953 is amended- ing eligibility shall be resolved in favor of Board may determine that the described per­ ( a) by striking out the word "and" at the the applicant. sons are eligible for the benefits provided for end of subsection ( d) ; in this act. Such certificates shall state the (b) by striking out the period at the end ESTABLISHMENT AND ·FUNCTIONS OF ADJUST­ period for which they are valid and shall of subsection ( e) and inserting in lieu MENT ASSISTANCE BOARD automatically expire at the end of such pe­ thereof a colon and the word "and"; and SEC. 3. The President shall appoint a 5- riod. Upon application, the Board shall have (c) by adding at the end thereof a new member board to be known as the Trade Ad­ authority to renew any certificates olf eligi­ subsection as follows: justment Board (hereinafter called the bility for successive periods of 18 months, or "(f) to make such loans as the Adminis­ .Board), 1 member of which he shall desig­ less, upon a showing that such renewal is tration may determine to be necessary or nate as Chairman. The members of the necessary to accomplish the purposes of this appropriate to business enterprises and com­ Board shall be appointed from among the act. The Board shall also have authority on its own motion or upon the motion of any munities, either in their corporate capacity officers and employees of the executive or as represented through industrial develop­ branch of the Government and shall serve interested person, to cancel any such cer­ ment corporations or similar agencies, for without compensation in addition to that tificate of eligibility if it finds the continued the adjustment by such business enterprises otherwise received as officers or employees in existence of such certifi'cate is not necessary to accomplish the purposes of this act. and communities to economic conditions re­ the executive branch of the Government, but sulting from the trade policy of the United they shall be reimbursed for travel, subsist­ ( c) The following may be determined by States: Provided, however, That no such ence, and other necessary expenses incurred the Board to be eligible for the benefits pro­ loans shall be made by the Administration by them in the performance of the duties vided for in this act: to any business enterprise, or community vested in the Board. ( 1) Any business enterprise engaged in the unless the Trade Adjustment Board, as es­ SEc. 4. For the purposes of performing its production of an article identical to or di­ tablished under the provisions of the Trade duties, the Board is authorized to-- rectly competitive with an article with ref­ Adjustment Act of 1954, shall have certified (a) hold such hearings, to sit and act at erence to which this act shall have been in­ to the Administration that such business such times and places, and to take such tes­ voked. enterprise, or community is eligible for bene­ timony, as the Board may deem advisable; (2) Any unemployed individual whose last fits under the Trade Adjustment Act of 1954: (b) secure directly from any executive de­ regular employment shall have been in a And provided further, That the requirements partment, bureau, agency, board, commis­ business enterprise which is eligible or may · of paragraph (1) of subsection (a) of this sion, office, independent establishment, or be determined to be eligible for the benefits section shall be applicable to the loans au­ instrumentality information, suggestions, es­ provided for by this act. thorized to be made under this subsection." timates, and statistics needed to carry out (3) Any community a substantial _number SEC. 8. Unemployment compensation: (a) the purposes of this section; and each such of the residents of which are individuals who ( 1) The Secretary of Labor ( hereinafter re­ department, bureau, agency, board, com­ are eligible or may be determined to be eligi­ ferred to as the "Secretary") shall on behalf mission, office, establishment, or instrumen­ ble for the benefits provided for by this act. of the United States enter into an agreement -tality is authorized and directed to furnish (4) Any industrial development corpora­ with any State in which an enterprise, or such information, suggestions, estimates, and tion organized for the purpose of aiding the community, with respect to which a certifi­ statistics directly to the Board upon request development of a more balanced and diversi­ cate of eligibility has been issued under this made by the Chairman; fied economy or diversification of production act, is located, under which the State, as r7832 CONGRESSIONAL RECORD - HOUSE June 7 agent o! the United States, will make pay­ any sum by which the Secretary finds that SEC. 9. Training and transportation: (a) ments of supplementary compensation to his estimates for any prior calendar month The Secretary shall- unemployed individuals in the State as pro­ were greater or less than the amounts which ( 1) prescribe and provide suitable train­ vided for in this section, and will otherwise should have been paid to the State. Such ing for unemployed individuals eligible for cooperate with the Secretary and with other estimates may be made upon the basis of the benefits of this act who are in need· of State agencies in making payments of sup­ such statistical sampling, or other method, retraining, reemployment, vocational educa­ plementary compensation under this section. as may be. agreed upon by the Secretary and tion, or vocational rehabilitation; (2) Payments of supplementary unem­ the State agency. '(2) utilize and extend all existing Federal ployment compensation under this section ( e) The Secretary shall from time to time governmental facilities, and utilize the fa­ shall be made only to individuals within the certify to the Secretary of the Treasury for cilities of any other governmental agency class of individuals determined by the Board payments to each State sums payable to maintained by joint Federal and State con­ under section 5 of this act to be eligible to such State under this section. The Secre­ tributions, to carry out the purposes of this receive the benefits provided for in this act. tary of the Treasury, prior to audit or set­ section; and (3) In any case where an unemployed indi­ tlement by the General Accounting Office, (3) by agreement or contract with public vidual is no longer entitled to payment of shall make payment to the State in accord­ or private institutions or establishments, compensation under the unemployment ance with such certification, from the funds provide for such additional training facili­ compensation laws of the State solely by rea­ available for carrying out the purposes of ties as may be necessary to accomplish the son of the expiration of the period for which this act. purposes of this section. such compensation is payable under such (f) All money paid to a State under this (b) The Secretary shall have the power laws, there shall be paid to such individual, section shall be used solely for the pur­ and the duty to cooperate with existing out of amounts paid to such State by the poses for which it is paid; and any money so Federal, State, and local agencies and offi­ United States for such purpose and without paid which is not used for such purposes cials in charge of existing programs relating cost to such State, supplementing compen­ shall be returned, at the time specified in to retraining, reemployment, vocational edu­ sation in an amount equal to the rate of the agreement under this section, to the cation, and vocational rehabilitation for the State unemployment compensation which he Treasury and credited to current applica­ purpose of coordinating his activities with was receiving immediately prior to the time ble appropriations, funds, or accounts from those of such Federal, State, and local agen­ he was no longer entitled to receive such which payments to States under this sec­ cies. rate. In order to remain eligible for supple­ tion may be made. ( c) Whenever the Secretary shall deter­ (1) mentary compensation under this para­ (g) An agreement under this section may mine that no job opportunity for an un­ graph, an individual must comply with the require any officer or employee of the State employed individual found eligible for the provisions of State law with respect to ability certifying payments or disbursing funds pur­ benefits of this act exists within his own cur­ and availability for work, and with respect suant to the agreement, or otherwise partici­ rent labor market area, (2) a job opportunity to the acceptance of offers of suitable work, pating in its performance, to give a surety for such individual equivalent to his former and failure to so comply shall result in im­ bond to the United States in such amount employment is available at a place in the mediate cessation of payment under this as the Secretary may deem necessary, and United States outside of his current labor paragraph. The total period during which may provide for the payment of the cost of market area, (3) such individual agrees to an unemployed individual may receive bene­ s ch bond from funds available for carry­ take the job opportunity outside of his la­ fits under this section shall not exceed 26 bor market area, and ( 4) the acceptance of ing out the purposes of this section. such employment would be in the best inter­ weeks. (h) No person designated by the Secre­ (4) The amount of the Federal supple­ est of the United States, then the Secretary tary, or designated pursuant to an agree­ is authorized to make available to such in­ mentary compensation to an indiv!dual for ment under this section, as a certifying of­ a week of partial unemployment shall be dividual at Government expense, facilities ficer shall, in the absence of gross negli­ for the movement of such individual, his the amount necessary to provide such indi­ gence or intent to defraud the United States, vidual with a weekly benefit equal to the dependents, and his household effects to a be liable with respect to the payment of any location designated by such individual and amount he would have received under para­ compensation certified by him under this graph (3) of this subsection for a week of approved by the Secretary, by using Govern­ section. ment or commercial means of transportation. total unemployment, less his earnings for (i) No disbursing officer shall, in the ab• such week in excess of the partial earnings SEC. 10. Retirements: (a) Whenever the sence of gross negligence or intent to de­ Secretary shall determine that any individ­ allowance, if any, permitted by the unem­ fraud the United States, be liable with re­ ployment compensation law of the State. ual, 60 years or older, included within acer­ spect to any payment by him under this tificate of eligibility issued by the Board is ( 5) Any agreement under this section shall section if it was based upon a voucher provide that compensation otherwise paya­ unemployed as a result of the national trade signed by a certifying officer designated as policy of the United States and ls unable to ble to any individual under the State's un­ provided by this section. employment compensation law will not be find employment because of his advanced denied or reduced for any week by reason (j) For the purpose of payments made age, the Secretary shall issue a certificate of any payment made pursuant to such agree­ to a State under title III of the Social Se­ containing such a finding. ment. No agreement under this section for curity Act, administration by the State (b) Section 216 (a) of the Social Security payment of compensation by a State agency agency of such State pursuant to an agree­ Act is hereby amended to read as follows: be ment under this act shall be deemed to RETmEMENT AGE shall be valid if compensation payable to a part of the administration of the State un­ any individual under the law of such State employment compensation law. "'(a) (1) Except as provided in paragraph is less than it would have been under such (2), the term 'retirement age' means age 65. law as it existed on January 1, 1955. (k) The agency administering the unem­ ployment compensation law of any State "(2) In the case of an individual who is (b) Whenever the Board, either upon ap­ certified by the Secretary of Labor as unem­ plication of an interested party or upon its shall furnish to the Secretary such infor­ mation as the Secretary may find necessary ployed by reason of the trade policy of the own motion, determines that unemployment or appropriate in carrying out the provisions United States and unable to find employment among individuals found by the Board to be because of advanced age, the term 'retire­ eligible to receive the benefits provided for of this act, and such information shall be ment age' means age 60." in this act is no longer attributable to the deemed reports required by the Secretary for (c) The amendment made by this section trade policy of the United States, no further the purposes of paragraph (6) of subsection shall take effect with respect to payments payments shall be made under this section (a) of section 303 of the Social Security made for months beginning more than 1 to such individuals with respect to weeks of Act. month after the date this act is enacted. unemployment occurring after the date of (1) Whoever makes a false statement or SEC. 11. Accelerated amortization: (a) Sec­ such determination by the Board, or occur­ representation of a material fact knowing it tion 168 (e) (1) of the Internal Revenue ring during any period for which there is to be false, or knowingly fails to disclose a Code of 1954 is hereby amended by adding not in effect a certification under section 5 material fact, to obtain or increase for him­ after the words, "necessary in the interest of describing such individuals. self or for any other individual any payment national defense during the emergency pe­ (c) Each State shall be entitled to be paid authorized to be paid under this section or riod," the words "or necessary for the devel­ by the United States an amount equal to under an agreement thereunder shall be fined opment of new or different lines of produc­ the additional cost to the State of payments not more than $1,000 or imprisoned for not tion by an eligible business enterprise or of a of compensation made under and in ac­ more balanced economy in an eligible com­ cordance with an agreement under this sec­ more than 1 year, or both. munity"; and by adding after the words "at­ tion which would not have been incurred (m) The Secretary is hereby authorized to tributable to defense purposes" the words "or by the State but for the agreement. make such rules and regulations as may be the national trade policy of the United (d) In making payments pursuant to this necessary to carry out the provisions of this States, as the case may be." section, there shall be paid to the State, section. The Secretary shall insofar as prac­ (b) Section 168 (d) of the Internal Rev­ either in advance or by way of reimburse­ ticable consult with representatives . of the enue Code of 1954 is hereby amended by add­ ment, as may be determined by the Secre­ State unemployment compensation agencies ing the following: tary, such sum as the Secretary estimates before prescribing any rules or regulations "(3) Eligible business enterprise, com­ the State will be entitled to receive under which may affect the performance by such munity: As used in this section the terms this section for each calendar month, re­ agencies of functions pursuant to agreement 'eligible business enterprise' and 'eligible duced or increased, as the case may be, by under this section. · community• refer to business enterprises or 1955 CONGRESSIONAL RECORD - HOUSE 7833 communities holding certificates of eligibility Several days later I met with then Premier Unless we realize that we are but 1 of under the Trade Adjustment Act of 1954." Mendes-France. As I spoke with him across some 80 nations, albeit the most powerful, SEC. 12. Section 4 of the Trade Agreements his desk, he remarked that many people in we will be a frustrated people when events Extension Act of 1951 is amended by adding France were disturbed at press reports of occur in the international community which the following: my comments to the effect that the idea of we do not like. A frustrated people is not " ( c) In any case in which the President the EDC would not die. Mendes-France a good foundation on which to build a is required, under the provisions of subsec­ said that he wanted me clearly to under­ strong foreign policy-and I must emphasize t ion (a) above, to transmit a message to Con­ stand that the EDC was dead. But he added that public attitudes are extremely impor­ gress identifying an article with respect to that he knew what I meant. What I was tant in the formulation and the conduct of which a trade agreement has caused or saying, said the Premier, was that the spirit our foreign policy. The Senate and the threatens to cause serious injury to a do­ of a united free Europe was not dead. President cannot carry on a foreign policy mestic industry, he may determine to invoke MUST NOT DEAL IN ABSOLUTES which is not supported by a substantial the provisions of the Trade Adjustment Act majority of the American people. Every of 1954 by notifying the Trade Adjustment I tell this story because in foreign policy single person constitutes one element in Board, created under the provisions of such we must not deal in absolutes. that majority, or minority, as the case act, to that effect. The President shall in­ In Western Europe last summer, it was may be. clude in his message to Congress, provided not the EDC or nothing, as many of our friends thought. There were alternatives. INFLUENCING FOREIGN POLICY for in subsection (a) above, a statement in­ I referred earlier to the fact that the dicating whether he has so notified the Trade They have been explored and today-some 9 months after the EDC was rejected-we see United States cannot bring order to the Adjustment Board." international community by government SEC. 13. Section 7 (c) of the Trade Agree­ a new hope in Europe. Western Germany has regained her sovereignty; Western Eu­ fiat. There are, of course, ways in which ments Extension Act of 1951 is amended to the United States can and does influence read as follows: ropean Union is a going concern; plans are well under way to help the Germans build international events. Let me mention a few. " ( c) Upon receipt of the Tariff Commis­ defense forces; and we have in prospect large sion's report of its investigation and hear­ INFLUENCE OF MILITARY POWER possibilities of settlement in Europe. In the first place, the military power of ings, the President may (1) make such ad­ It was erroneous to think that it was EDC justments in the rates of duty, impose such this Nation is one of the most important or nothing. ways of influencing foreign relations. I am quotas, or make such other modifications as Diplomacy has been described as the art are found and reported by the Commission not one who believes that our power should of letting the other man have your own way. be used to compel nations to take courses to be necessary to prevent or remedy serious Diplomacy cannot operate effectively if peo­ injury to the respective domestic industry, or of action which we might find desirable. ple think constantly in terms of absolutes­ Power so used would surely corrupt. But (2) notify the Trade Adjustment Board, cre­ of everything being either black or white. ated under the provisions of the Trade Ad­ it is necessary that the United States main• justment Act of 1954, that he has invoked AMERICANS DEMAND RESULTS tain sufficient military power to deter poten­ the provisions of the Trade Adjustment Act There is perhaps a tendency on the part tial aggressors from seeking by force to of 1954 with respect to such industry. If the of Americans to think in these absolute impose their will on less powerful nations. President does not take either of such ac­ terms. We want to move fast and get things It has been American military power in the tions within 60 days, he shall immediately done. "Put up or shut up" is an American past few years which, in my opinion, has submit a report to the Committee on Ways phrase that indicates our impatience with served to prevent Communist encroachment and Means of the House and to the Commit­ halfway measures. We are not satisfied with in Europe, south Asia, and to some extent tee on Finance of the Senate stating why little results; we want big results, and we in the Far East. he has not made such adjustments or modi­ want them now. I have long advocated the establishment fications, imposed such quotas, or invoked Having so recently emerged from a frontier of American Air Force bases overseas within the provisions of the Trade Adjustment Act period, we feel that all things are possible. striking distance of the centers of produc­ of 1954." Within the confines of the United States, we tion in the Soviet Union. I am convinced have been able to control our destiny. As a that these bases have exercised a tremen­ result of our experience in the last 100 dous deterrent effect on the Soviet Union. years, it is perhaps but natural that we have We and our friends know these bases do not United States Foreign Policy a feeling of omnipotence-a capacity to see exist for purposes of aggression. But they things that need doing, and then do them. are available in the event the Kremlin should embark on a military adventure against the EXTENSION OF REMARKS Now that we move into a position of great importance in the international community, free. OF there is a tendency for us to feel that we We need the cooperation of friendly na­ can manage things in international affairs tions throughout the world to maintain HON. ALEXANDER WILEY much as we have managed them in domestic these bases. We must not let current dove­ OF WISCONSIN affairs. We tend to think of other nations like noises from Moscow persuade us to abandon these bases. IN THE SENATE OF THE UNITED STATES as box cars that we can move from place to place at will. INFLUENCE OF ECONOMIC ASSISTANCE Tuesday, June 7, 1955 LIMITATION ON CONTROL OF FOREIGN AFFAIRS There is another way in which this Nation Mr. WILEY. Mr. President, last Sat• But there are some great differences be­ may influence foreign policy. We can seek urday, June 4, it was my privilege to tween domestic and international affairs. to influence policy with economic assistance. journey to Columbus, Ohio, to address For one thing, most of the world is outside Some of our enemies have accused the the boundaries of the United States. Fif­ United States of using its foreign-aid pro­ the Buckeye state department of a great teen-sixteenths of the land area of the world grams to influence the policies of foreign veterans organization of which we are is not under our jurisdiction. Sixteen­ countries. There may have been isolated truly proud-American Veterans of seventeenths of the people of the world are instances when this has been the case. As World War II. foreigners to us, again not subject to our a general rule, however, our foreign money I ask unanimous consent that the text jurisdiction. This means that many events programs have not been used to coerce na• of my address be printed in the RECORD. take place over which we can have but tions to follow a course of action that would little influence and no control. be acceptable to this Nation. By way of There being no objection, the address We may not like what goes on behind the illustration, I would point to the hundreds RECORD was ordered to be printed in the 1 Iron Curtain, but there is not much we of millions of dollars which the United as follows: can do to prevent it. We may not like to States has made available to India in recent UNITED STATES FOREIGN POLICY see the Communists take control of China, years. I see no evidence that American ( Address by Hon. ALEXANDER WILEY at but we have not been able to stop it. We assistance has corrupted Mr. Nehru or made him change his policy with respect to the State convention, AMVETS, Department of may not like what Mr. Nehru does in India, Ohio, June 4, 1955) but our legislative mandate does not run United States one bit. to India. INFLUENCE BY PERSUASION Last summer I was in Europe on an as­ Although many of the things which occur signment from the Secretary of State and outside of the United States may have a Another way to influence nations is by per• in my capacity as then chairman of the terrific impact upon this country, they may suasion. Our delegates to the United Na­ Committee on Foreign Relations. It was in fact be largely beyond our control. Some­ tions are constantly engaged by word of during that critical period when the French times foreign relations is a little like the mouth in expressing American attitudes in Chamber of Deputies rejected the European weather. We do a lot of talking about it, the field of foreign policy. They seek to Defense Community. During the days im­ but not much can be done to control it, persuade other nations by the honesty of mediately following rejection of the EDC, American convictions and the logic of our th-ere was widespread dejection. If the MUST NOT BE DEFEATIST argument. They try to show that the courses French wouldn't accept the EDC, there was I do not emphasize this fact with the of action we desire are in the best interests no alternative. My voice seemed a lone one idea of being defeatist. I underline it be­ not only of the United States, but of the in the wilderness. But I kept repeating that cause we must understand the world in world at large. We also endeavor to influ• the idea of the European Defense Commu­ which we live if we are to be able to exert ence events abroad by our information pro­ nity would not die. our maximum influence in it. grams, which include the Voice of America, 7834 ·CONGRESSIONAL RECORD - HOUSE June 7 libraries, the exchange of students, and mo­ conduct of foreign policy is not a difficulty has moved rapidly toward the creation of a. tion pictures. in stating aims, but it is the difficulty of genuine democracy. INFLUENCE OF FREEDOM making the day-to-day decisions that will Yet Germany is in very real danger. She The most important way in which the promote our alms. The goals are important, naturally desires to be reunited and it is for United States can influence foreign policy is but the means by which we try to attain that reason that the recent suggestion that not by military power, not by money, and those goals are equally important. Germany be neutralized must be viewed with not by persuasion. The best way to influ­ MILITARY DEFENSE suspicion. That was a seductive, dangerous, ence foreign nations to accept American and unrealistic doctrine. Seductive because In recent years United States foreign it may have a wide appeal to those who do principles of foreign policy ls to convey to policy has proceeded along two main lines them the democratic ideas which underlie not want Germany to become a strong mili­ with bipartisan support. tary power again; dangerous because it would our system. In the first place, we have sought to main­ For 2,000 years, since the time of Christ, take the heart out of our Western defense tain our military defenses, and those of system; and unrealistic because no nation, the idea of individual freedom has constant­ allies, at a level sufficiently high to prevent ly grown. Man has won liberties for himself with Germany's location, population, and in­ the Communist conspiracy from seeking to dustrial might, could long remain neutral. in centuries of struggle. There have been impose on free nations its philosophy of col­ times when the individual's deep aspiration But it is just this kind of thing that we lectivism by force. I wish we did not need to must guard against in the weeks ahead. to control his own destiny has been thwarted maintain a military posture of this kind. As by tyrants, dictators, and authoritarian long as the threat continues, we need to be THE FAR EAST movements. But over the span of history, prepared. But the constant maintenance of the area of man's individual freedom has We must also keep a wary eye on the Far such a military posture is not the way to East. The Chinese Communists have re­ constantly grown. settle forever the conflict between commu­ cently had a demonstration of the strength THE ROLE OF THE INDIVIDUAL nism and democracy. of the idea of freedom in Asia. At the This is the idea upon which our Nation In a local community, if there is a problem Bandung Conference, many of the newly free ts founded-the idea that government is of juvenile delinquency, one way to handle nations gave positive evidence that they the servant of the people and that no nation it may be to increase the size of the police know the dangers of communism. That can expect to develop to its fullest unless force. This may protect the community. It statesman of- the Philippine Republic, Gen. it appreciates and honors the role of the will not, however, eliminate juvenile de­ Carlos Romulo, recently told me that he individual living in freedom. It is as a re­ linquency. Steps must be taken instead to came back from the Bandung Conference sult of individual freedom that we get mo­ get at the fundamental causes of Juvenile "exalted." He told of hearing representa­ tive power for invention, for economic de­ delinquency. tives of newly free Asian nations quote the velopment, and eventually for a world in It is somewhat the same in the interna­ language of the American Declaration of In­ which individual free men may live at peace tional community. Free states must main­ dependence, the language of Magna Carta, with each other. tain their military defenses, but only until and the language of the Gettysburg Address. This idea of individual freedom ls, I be­ it is possible to establish conditions in the But the fact that there are many in Asia lleve, the greatest power we have. It is the world which will prevent situations from who know of the dangers of communism and weapon of free men able to influence other arising where force may be needed. who have attached themselves to the ideas nations to conduct themselves in a. way I believe our military defensive strength is of democracy, does not lessen the possibility which will be beneficial not only to them­ now beginning to pay off. The Communists of Communist China seeking to precipitate selves, but to the United States. understand forces in being. situations in which her agents might take Unfortunately, while the idea of individ­ ECONOMIC DEFENSE over by subversion, supported by force. ual freedom is perhaps our greatest strength, Formosa, though a quiet area now, might we have been weak in using it. The second aspect of our present policy is to try to create conditions in the world that again become a focal center for potential The democratic idealism that fired the conflict. imagination and the creative powers of the will promote stability and eliminate the dangers of military conflict. The situation in Vietnam is fraught with founders of this Nation has been corrupted danger for freedom. Unless her gallant by materialism. We have been so busy de­ The technical assistance program, for ex­ veloping this Nation that we think in terms ample, provides assistance to backward Premier Diem is able to consolidate his of production, salesmanship, and investment. countries which, without such aid, might strength, there is danger that communism We seem to have a capacity to sell and ex­ find themselves in such chaotic conditions will infiltrate and conquer that new country. port every product of America except the that they would tend to throw away their I mention these matters because they are bedrock ideals upon which our system rests. aspirations for individual freedom in ex­ likely to give us trouble in the weeks ahead. change for promises of plenty under a col­ I wish it were possible for me to predict EXPORTING AN IDEA a future in which all our foreign policy lectivist system. I have supported economic In concentrating on bullding a nation we and technical assistance over the years. I problems would be small ones. I cannot have come close to losing the ablllty to ex­ propose to continue to support those pro­ do that. There is one thing we can be sure port an idea. I do not believe we have lost grams because they provide permanent cures of in the future and that is that we have the individual freedom ideals of our fore­ for conditions which might otherwise en­ lots of trouble ahead of us. There will be fathers, but those ideas have gotten so mixed courage violence. occasions when we will feel that the only up with material things that their underly­ recourse open is for us to use force. There ing importance is lost upon many of us. RELATIONSHIP OF MILITARY AND ECONOMIC will be occasions when we will be frustrated That is why I have said that while ideas DEFENSES almost beyond endurance. There will un­ are our strongest weapon in the worldwide It seems important to me that the Ameri­ doubtedly be instances in which we will be ideological struggle characteristic of this can people realize the close relationship offered panaceas which, though attractive century, we do not use ideas effectively. which exists between the military aspects of on the surface, may hold within them dan­ AMERICANS AS FREE MEN our foreign policy and the economic aspects. gers to our individual liberties. Our job throughout the world is to get Last year the United States spent 75 cents NEED FOR RESTRAINT AND UNDERSTANDING foreigners to think of Americans not a.s rich out of every dollar of national expenditures As we face the future, I would emphasize men, but as free men. When the nations of for military purposes. Only some 3 cents the constant need for restraint in our rela­ this earth think of the United States not was available for economic and foreign policy tions with foreign nations and the need for as a rich nation, but as a free nation, and programs of a nonmilitary type. This bal­ understanding on the part of our people. realize that the democratic way offers them ance is not right. We must gradually put This is especially important in the weeks also the chance to be free, we will need have more of our national expenditures in the immediately ahead. no fear but that the Communist conspiracy economic column and less in the military Our President will be meeting with the that walks like a state wm be destroyed column. But movements in this direction leaders of the United Kingdom, France, and from within. cannot take place overnight. They require Russia. This will be the first face-to-face One of the best ways by which our demo­ first the creating of world conditions in encounter by the heads of these states since cratic igeals can influence foreign nations which tensions are lessened and the threat the Potsdam Conference at the end of World is to exhibit those ideals in our daily life of force abated. War II-nearly 10 years ago. There have in the United States. It has been said that been several such meetings among the Big the United States is a. showcase of democ­ GERMANY Three, but none with the head of the Soviet racy. There is truth in this observation. It In the weeks ahead •one of the spots that State. 1s certain that the better democracy works will merit our special attention is Western I have the greatest confidence that Presi­ in this country, the greater the influence Germany. That nation, now reendowed dent Eisenhower will represent us faithfully this Nation will have abroad. with the attributes of sovereignty that were and well. We must back him up 100 percent wrested from her during the war, has cast because this is one of the times when unity A'ITAINMENT OF FOREIGN POLICY GOALS her lot with the West. Western Germany is in time of peace is nearly as important as It is easy to state the aim of our foreign now a full-fledged member of NATO. She unity in time of war. policy. It is our policy to bring about and will soon start creation of forces to serve The kind of unity of which I speak was to maintain conditions in the world in which with other NATO forces in defense of the free demonstrated earlier this week when the the United States may live at peace and be nations of Western Europe. Under the able Senate passed the Mutual Security Act of secure in its freedoms. The difficulty in the leadership of Chancellor Adenauer, Germany 1955. It has been our unity in support of 1955 CONGRESSIONAL RECORD - HOUSE 7835 these programs over the past years that is Let no one be deceived that toll televi­ viewing television programs transmitted by now paying off. sion will be inexpensive. A week's pro­ 1t a.nd received over television sets in the I recently asked Mr. Dulles how he felt graming of subscription telecasts, in time, home, shall be fined not to exceed $10,000 about this. He replied: "The policy of the or imprisoned for more than 5 years, or Soviet Union with reference to Western will cost the average family between $3 both." Europe has failed. Today marks the death and $5. While many shows may only knell of the great Soviet policy for western charge a fee of 25 cents, before long Europe which they have pursued with every some telecasts, like baseball, will be means at their command for the past 3 charging 50 cents to $1. In fact, tele­ Distribution of Salk Vaccine years. They now have to throw up their casts of certain prizefights, which are hands and admit they have failed. There­ shown exclusively over closed circuits in EXTENSION OF REM:ARKS fore • • • they have to find new policies." No one would deny that there has been movie houses, have already charged from OF a clash of Soviet and United States policy $2 to $5. throughout most of the globe for the past In addition, pay TV will preempt the HON. LESTER HOLTZMAN 10 years. The longer the peoples of the peak hours of the evening, between 8 and OF NEW YORK world have to examine communism on the 10 p. m. Today's most popular shows, IN THE HOUSE OF REPRESENTATIVES one hand with its outward evidences of unity like I Love Lucy will be the first ones to Tuesday, June 7, 1955 imposed by the domestic threat of force, be brought under the pay-as-you-see and democracy on the other hand with its programs. Thousands of viewers re­ Mr. HOLTZMAN. Mr. Speaker, since unity achieved as the result of the give cently enjoyed the delectable Peter Pan the announcement of the discovery of and take of free men, the more likely they the Salk polio vaccine almost 2 months are to choose the unity of the free. starring Mary Martin. Such a spec­ In conclusion, I should like to revert for tacular will, in the future, only be viewed ago, thousands upon thousands of par­ a moment to the point made at the begin­ after payment in a slot. ents throughout these United States ning of my remarks, that we must not think The price charged the public would have been awaiting positive action by in terms of absolutes. not, of course, be limited by the cost of the Federal Government in insuring I do not expect the meeting at. the summit programing the show. Instead, it would prompt inoculations for their children. will ring in the mlllenium of peace. Neither be set by the pay television operator at They are still waiting, and the entire do I expect that a failure at that meeting inoculation program is presently bogged would leave us with no alternative but the figure which would bring in the preparation for eventual war. The results largest box return. Pay television con­ down with no assurances that there will of the conference are not likely to be all templates no modest rate rise. The cost be a definite plan set up which would white or all black. per home per program today is about make this vaccine available to our It is essential that great organizations 1 cent now borne by the advertiser. youngsters without further delay. Al­ such as the AMVETS take the lead in help­ Under pay television, this could would be ready valuable time has been lost. ing the people of this Nation to realize that multiplied by 25 or 200 or more and The people in my home district, in we must not expect too much of this meet­ would be borne entirely by the viewing New York, are naturally concerned, and ing; we must not succumb to a feeling of rightly so, about the lack of Federal frustration if the conference does not go too audience. We were told that toll TV well. would eliminate advertising but already action on this important problem. We · We have a long pull ahead. The Ameri­ people like Walter O'Malley, of the can only hope that the Government will can people must have patience and fortitude. Brooklyn Dodgers are openly indicating realize the seriousness of the situation Ultimately we know that the way of freemen that advertising is a planned part of pay confronting us, and will put into effect will prevail and that man can live at peace. TV. Thus some of the inane, inept, if an equitable program for the distribu­ not insane TV commercials, will still be tion of the vaccine. with us. I would like to include in my remarks a copy of the letter I wrote to the Sec­ Bill Introduced To Prohibit Pay TV The proponents of toll TV talk about only what free television has not brought retary of Health, Education, and Wel­ to the public. They refuse to talk about fare, Mrs. Oveta CUlp Hobby, on April 21, EXTENSION OF REMARKS what they do not care to see or admit. 1955, shortly after the announcement o,f 01' Television is in its infancy and already the vaccine discovery. And I will also HON. EMANUEL CELLER it has brought into the American home include a copy of Mrs. Hobby's reply of great box-office attractions, including May 6, 1955, which indicated that sev­ OF NEW YORK opera, ballet, concerts, the legitimate eral committees were studying the prob­ IN THE HOUSE OF REPRESENTATIVES theater, omnibus shows, sports events,· lems involved. Tuesday, June 7, 1955 children's programs, educational pro­ To date nothing has been accom­ grams, current and patriotic events. All plished. Confusion still reigns, and the Mr. CELLER. Mr. Speaker, I have in­ polio season is upon us. The Govern­ troduced a bill today which will expressly it needs is time to grow. Let us not be impatient. ment must accept its responsibility and prohibit television stations from impos­ put into effect an equitable distribution ing any toll, subscription, fee, or other The television spectrum is limited. It system immediately. I hope and pray charge on the general public for the is in the public domain and the interest of the public should therefore come first. that this will be done. privilege of viewing TV programs in their The letters follow: own homes. The interests of telecasters are sec­ ondary. CONGRESS OF THE UNITED STATES, In addition to its high cost, pay televi­ HOUSE OF REPRESENTATIVES, sion (a) would reduce listening, by black­ The text of the bill fallows: Washington, D . a., April 21, 1955 ing out, for those who do not pay, chan­ A bill to prohibit the charging of a fee to Hon. OVETA CULP HoBBY, nels now devoted to free programs; (b) view telecasts in the home Secretary of Health, Education, and it would siphon off the best programs Be it enacted, etc., That section 303 of the Welfare, Department of Health, which the public is now receiving free; Communications Act of 1934 (48 Stat. 1082) Education, and Welfare, Washing­ and (c) it would divide the television as amended, is amended by changing the ton, D. a. audiences along economic lines. semicolon at the end of clause (b) to a colon DEAR MRs. HOBBY: Since the recent an­ The biggest ailment of TV today is not and adding the following: "Provided, how­ nouncement of the discovery of the Salk ever, That it shall not authorize or permit vaccine, one of our greatest problems 1s its the lack of money, but the lack of talent. any television station to impose a toll, fee, equitable distribution. TV is suffering from a dearth of authors, subscription or other charge, directly or indi­ The conference to be held at the Depart­ performers, and so forth, who are needed rectly, on the general public for the privilege ment of Health, Education, and Welfare to meet the continued, tremendous de­ of viewing television programs received over tomorrow should strive to set up a workable mand for novelty and variety in our TV television sets located in the home." plan whereby the vaccine will be adminis­ performances. If telecast stations could SEC. 2. The Communications Act of 1934 tered to every child in the United States, continually supply good shows they would (48 Stat. 1064) as amended, is amended by regardless of cost. This is an investment in attract not only large audiences but also adding the following section: our future well-being, and the Federal Gov­ advertisers who would be willing to spon­ "Sec. 508. Charging fees for viewing tele­ ernment must take the lead in putting into casts in home: Any television station, its operation a national plan which will abolish sor their shows in order to place their agents, officers, or employees, who, directly the confusion and vague proposals which products before the public. Pay or gas­ or indirectly, impose or attempts to impose have been heard since the announcement. meter television cannot guarantee good any toll, fee, subscription, or other charge, This is a tremendous medical achieve­ shows. on the general public for the privilege of ment, and with the results indicating that 7836 CONGRESSIONAL RECORD - HOUSE June 7 the vaccine is 80 to 90 percent effective in The Seedskadee project is a part of the Nation, it must be fixed in the understand­ preventing paralytic polio, we can feel that proposed multibillion dollar upper Colo­ ing of the American people. the dread disease is now facing defeat. rado River project. Now I know that you graduates have Thousands and thousands of children, whom heard many lectures over the past few years. it strikes most frequently, will be able to The cost to the Nation's taxpayers of You are probably not, on this day, in a mood live out their lives without any crippling the Seedskadee project would be $2,200 to tolerate another, at least not a long one. effects, and the many serious and often­ an acre. I shall not, therefore, tax your patience too t imes uncontrollable outbreaks of poliomye­ The project would grow agricultural heavily by attempting to review in detail litis will be terminated. products now supported by the taxpayers American policy throughout the world. The National Foundation for Infantile and in great surplus. Among these are Let me say in passing only that the pros­ Paralysis, which has been conducting re­ grains, dairy products, and wool. pects for peace and for liberty in Europe search against polio for a number of years, are brighter today than they have been for has initiated the rule of "children first," and a long time. The patience of this country I believe that this rule should apply in the and other Western nations has finally pro­ nationwide inoculations which have already duced a satisfactory peace treaty with Aus­ started. No child should be deprived of this American Foreign Policy in the Far East tria after 379 previous attempts had failed vaccine because of an inability to pay for because of the negativism of the Soviet Union. it. I believe that no time should be lost in EXTENSION OF REMARKS determining whether or not each child can Sovereignty has, at long last, been re­ afford the inoculation. If the cost of the OF stored to Western Germany and that nation shots cannot be undertaken by the child's has become a member of the North Atlantic family, then ways and means of appropriat­ HON. MIKE MANSFIELD Treaty Organization on the basis of full ing sufficient funds to care for this expense OF MONTANA equality with the other Western countries. should be developed. This is a step forward IN THE SENATE OF THE UNITED STATES All that remains in order to bring the whole 1n the field of medicine, the benefits of which of Western Europe under the protective should be extended to everyone. Tuesday, June 7, 1955 cover of this defensive organization is to The distribution of the vaccine calls for Mr. MANSFIELD. Mr. President, on secure the inclusion of Spain, a step which calm and orderly deliberation and planning, May 22 last it was my privilege to deliver I have urged on numerous occasions in the and the problems of making it available-­ a commencement address at Carroll past. first to our children, and then to adults when In the Middle East, the continued strife the supply is more equal to the demand­ College, Helena, Mont., on the subject between the State of Israel and the Arab can be resolved without delay if the Govern­ American Foreign Policy in the Far countries and the economic and political ment will act quickly and decisively to set up East. difflcul ties of the latter create a dangerous controls on allocations and prices, which I ask unanimous consent to have the situation. Your Government, however, is will ensure against any exploitation of the address printed in the RECORD. aware of the situation and is attempting discovery by special interests, or those seek­ There being no objection, the address to prevent a deterioration in it which might ing personal gain. was ordered to be printed in the RECORD, open the region to Communist penetration. I realize that there are many problems to Africa is beginning to press itself on the be overcome in setting up such a system of as follows: consciousness of the rest of the world. A controls, but I am confident that the urgency AMERICAN FOREIGN POLICY IN THE FAR EAST conference of Afro-Asian nations was re­ of the situation will be recognized by those It is good to be with you young men and cently held at Bandung, Indonesia. For the at the conference, and I earnestly hope that women of Carroll College, with your distin­ first time the voice of this least known but a satisfactory policy will be developed. guished faculty and your fam111es and vitally important continent was raised force­ Sincerely yours, friends. It is also good to be home again in fully in the councils of the nations. It is a LEsTER HOLTZMAN, Montana. voice that is bound to grow in strength and Member of Congress. In the years ahead many of you will use significance as the years go by. We in this those same words, "It is good to be home country, particularly our younger citizens, will do well to educate themselves in an un­ DEPARTMENT OF HEALTH, again," and some of you will use them often. I say that because the world of today and derstanding of Africa so that we may estab­ EDUCATION, AND WELFARE, lish sound relations with the nations that May 6, 1955. tomorrow, for better or worse, is the kind of world that propels people and especially will inevitably emerge and grow powerful on Hon. LESTER HOLTZMAN, that continent. House of Representatives. young people to distant places. It is a world of change, a world of movement. Latin America remains an area of primary DEAR CONGRESSMAN HOLTZMAN: This will concern to us. We are linked with the other acknowledge your letter of April 21, 1955, You will find, however, that no matter where you may go, the roots are here. The American Republics in defensive arrange­ concerning Salk poliomyelitis vaccine. ments and by cultural and economic ties. This Department has established a Na­ reason for that will become clearer as time goes by. You will find that from these roots, Nevertheless we cannot take these relations tional Advisory Committee on Poliomyelitis for granted. Our failure to pay sufficient at­ Vaccine to advise on the problems of dis­ "from these years that have already been, years of training and experience at home, in tention to them in the past has constituted a tribution and an Expert Technical Advisory serious gap in our foreign policy which we Committee on Poliomyelitis Vaccine. The church, in schools and college-from these roots you draw the strength to grow in may be able to remedy in time. As in the responsibilities of these committees relate to case of Africa much will depend on the con­ equitable distribution, as well as to a safe understanding. From these roots comes the background to put the vast and complex sideration which is given to Latin America and effective vaccine. The questions raised by our younger citizens. in your communication are currently being panorama of modern life into meaningful studied by these committees and wlll be dis­ perspective. These are roots which hold fast I have taken you on a 2-minute tour of cussed in our report to the President which to the enduring in what is otherwise a world two-thirds of the world in order that I might wm be completed in a few days. of incessant and rapid change. have 20 minutes for the remaining third, Sincerely yours, It is to this world, this world of the endur­ the Far East. That region, I know, is upper­ ing and the changing that American foreign most in the minds of Americans these days OvETA Ct7LP HOBBY, when they think of foreign policy because it Se,_cretary. policy must be adjusted. There was a time when we could largely ignore peoples and is in that region that peace has been most developments beyond the Atlantic and Pa­ consistently threatened in recent years. De­ cific shores of the Nation. That time is past. velopments in the far Pacific and our policies American foreign policy is now crucial to the with respect to them are not the sole con­ Bananas on Pike's Peak preservation of freedom in this country and cern of Washington. the world over. And the content of Ameri­ Every State, every community, and every EXTENSION OF REMARKS can foreign policy is of transcendant impor­ home in the land has a stake in them because OF tance to each of us if for no other reason they involve the issue of war or peace. I can than that it can move us toward peace or think of no question of greater concern to toward war. you men and women at the beginning of ma­ HON. CRAIG HOSMER While foreign policy is by no means a sim­ turity. Your interest is this situation in Asia. OF CALIFORNIA ple thing to understand, neither is it be­ thousands of miles away is direct and vital. IN THE HOUSE OF REPRESENTATIVES yond the understanding of American citi­ Your right to the facts in connection with it zens who try to fulfill the obligations of is fundamental. Tuesday, June 'l, 1955 their citizenship. Foreign policy is the Let me, then, try in the balance of my Mr. HOSMER. Mr. Speaker, the Con­ course by which we attempt to provide for remarks to give you some background on the safety of the Nation and its institutions recent developments in the Far East. When gress might as well appropriate money and to advance its total interests in the the Chinese Communists came to power on to grow bananas on Pike's Peak as to world. If it is to serve the Nation in that the mainland of Asia in 1949, the Govern­ approve the Seedskadee irrigation proj­ fashion and, if it is to develop in accord with ment of the Republic of China, under Gen­ ect in Wyoming. the religious and moral principles of the eralissimo Chiang Kai-shek, moved to the 1955 CONGRESSIONAL ·RECORD - HOUSE 7837 island of Formosa. The United States con­ elsewhere will determine in the near future cultural and the scientific relationships tinued to recognize his government as it which path Japan shall tread. which we now have with other nations. has done for decades. For the past 5 years Unity among the nations of Western Eu­ A few still cherish the notion that the military and other aid, hundreds of millions rope and ourselves can be strained by dif­ United States is a self-sufficient, invulnerable of dollars of it, has been provided to sup­ ferences in policy over Formosa and that is fortress. They would like for the United port and to sustain that Government. That another difficulty with which we have to States to turn inward in space and backward policy of aid has been based on the belief contend. The attitude of certain neutral in time. We can do neither. We can only that if the Communists were permitted to states in the Far East-countries like India, face the problems of national life in this take Formosa by aggressive force the safety Burma, and Indonesia-toward Communist modern world with such intelligence and and the freedom of this count ry and other China differs from our own and creates addi­ courage as God has seen fit to bestow upon free nations would be seriously jeopardized. tional problems of foreign policy. Further­ us. It is a policy which was instituted by Presi­ more an outbreak of hostilities in the For­ I, for one, am convinced that we have ex­ dent Truman and reaffirmed by President mosa area could signalize the resumption of hausted neither our intelligence nor ou~ Eisenhower. It hr,s had the continuing sup­ hostilities in Korea and Indochina. Finally, courage in dealing with the situation in the port of Congress. It has also had the sup­ behind all these and other factors in the Far East. The effort in the last 2 or 3 years port of both greet political parties. Asian situation we must reckon with the has been confined to pouring dollars into the A few months ago President Eisenhower tie-in of the actions of Communist China situation there. It has required neither asked Congress to pass a resolution support­ and the policy of the Soviet Union. great intelligence nor outstanding courage, ing the defense of Formosa. He believed the The difficulties in the Far East, in short, unless it be the courage to face irate tax­ resolution would strengthen his hand in are interrelat ed difficulties and action to deal payers at income-tax time. dealing with the crisis created by the threat with any one of them is not likely to be Economic and military aid has a place in of the Chinese Communists to invade the effective unless due regard is paid to the our policies in the Far East, but it is not a island. Congress passed the resolution by others. Yet in recent years, it seems to me, cure-all. It has not worked very successfully overwhelming votes in both Houses. It did we have been thinking of these crises and to date, yet it is the only formula that has so, however, only after three points had been dealing with them in a piecemeal fashion. been tried to date. It has not worked, it clarified. Many of us in the Senate sought Today the question is, What are we going to seems to me, because those who have oper­ to make clear in debate that the President do about Formosa? Yesterday it was, What ated it have overlooked one ingredient, an by the resolution would not dilute his con­ are we going to do about Indochina? And ingredient which does not carry a price tag stitutional power and responsibility to com­ the day before, What are we going to do and yet can be far reaching and profound in m and the Armed Forces and execute foreign about Korea? its effect. 1)olicy. We also tried to make clear that The answer almost invariably has been The missing ingredient is the human fac­ Congress was not transferring to the Presi­ more millions in economic or military aid tor and it is to be found in the realm of atti­ dent its sole power and responsibility to de­ dispensed in what appears often to be a dis­ tudes and ideas. I think that most of us clare war. Finally, we sought to establish connected and haphazard fashion. In the would agree that "man does not live by bread beyond doubt that the only purpose of the last 2 or 3 years we have, I repeat, con­ alone" and we might also add that "freedom resolution was to strengthen the defense of tributed hundreds of millions of dollars of is not preserved by weapons alone." What Formosa against the Chinese Communists economic aid to Formosa and the other free I am trying to suggest is that the struggle in and to prevent further bloodshed in the For­ countries of Asia. And we have provided Asia is fundamentally a struggle of ideas and mosan Straits, if that were possible. billions of dollars of arms and military attitudes, a struggle for the deeper loyalties The responsibility for keeping Formosa equipment in an attempt to strengthen their of millions of people. And if that is the case, out of the hands of the Chinese Commu­ defenses. These efforts, however, have so then it is in the spiritual as well as the mili­ nists now rests squarely with the President. far failed to put a stop to the recurrent tary and economic arenas where the long­ He is responsible to God and to the Ameri­ crises in the Far East. Unlike the Marshall term solutions to our difficulties in that part can people for what action he may or may plan aid which saved Europe from famine of the world may possibly be found. not take in carrying out this responsibility. and kept alive the light of freedom, our aid What I am suggesting is that we examine I do not know whether we shall avert war appears to have been far less effective on the the Asian attitudes which give rise to many or be plunged into war in the Formosan other side of the globe. of the basic problems with which we must Straits. No one can make a meaningful As a result we have exercised 1n the Far deal. I am suggesting, too, that we examine prediction of that kind. I believe, however, I East in recent years a kind of chain-reac­ Asian reactions to our state of mind and our speak for all of the people in this room when tion diplomacy, a kind of crisis-foreign actions. Perhaps, then, we will find some of I say that it is our common and our deepest policy. We have jumped from the effects the answers to the peace we seek. Such an­ hope that families shall not be separated of one crisis to its successor. From the Ko­ swers will not lead to a purchased peace, or once again by the demands of war. I be­ rean crisis we rushed too late to Indochina a power peace. They could, however, lead to lieve further that it is the obligation of all to quench a fire which had spread beyond a peace based on mutual understanding. and particularly those of us who are elected control. We have now rushed to the fire in We have grown too accustomed to wrap­ servants of the people to work to safeguard Formosa. We may be blinded by the glare ping all the ills of Asia into the single pack­ this country in peace and not by war so long in Formosa to the fire which is being kindled age marked "militant communism." Of as peace is humanly and honorably possible. in Japan or Indonesia. We have, in short, course this threat exists; we have seen a half That is why I want to go, today, a little never been ahead of the game. billion Chinese brought under the influence deeper into the difficulties in which we now That the crises continue to occur seems of that ideology. Countless millions more find ourselves in the Far East. In some ways to me to be evidence that either our positive are threatened with it elsewhere. We have the crisis in Formosa is a symptom rather measures have been insufficient or the situ­ spent blood to prevent the conquest of than a cause of the difficulties. And if there ation has been beyond our control. I think Korea by Communist aggression. Too late, is to be peace in Asia-if there are to be it is probably a little of both. There are we saw Vietnam north of the 17th parallel long-term solutions in Asia, it is to causes limits to what we can do to control the flow brought within the orbit of communism. rather than symptoms that our attention of events in Asia short of war, and even with We have seen militant Communist expan­ must be directed. war. sionism advanced not only by armies but The crisis in the Formosan Straits is not That does not mean the answer is to pick by political penetration, by organized propa­ an isolated incident. Our difficulties in the up our marbles and go home. Asia is too ganda, by the activities of disciplined cadres Far East include obvious threats of Chinese important to us, to our security and to our of intimidators and by calculated economic Communist expansion in Korea, Indochina, other national interests to permit that kind policy. The Communists have alternated and Formosa. They also include others that of response. That would simply amount to military threats and the allurements of are not so obvious. postponing the day of reckoning. Further­ trade, industrialization, and cultural ex­ The most important of these difficulties more, as Pope Pius XII said in his Christmas changes to capture converts to communism. center on Japan. That nation, as I have message in 1948: In Indochina we see the Communists and pointed out on many occasions, is the ulti­ "A people threatened with unjust aggres­ their agents using blackmail, bribery, and mate objective of Communist expansion in sion or already its victim may not remain intimidation in attempting to undermine Asia. Its position is precarious in the ex­ passively indifferent, if it would think and the honest government of Prime Minister treme. There are some 90 million Japanese act as befits a Christian. All the more Ngo Dinh Diem. We see the new maps of living in an area smaller than Montana-­ does the solidarity of the family of nations Communist China brazenly include the ter­ only 16 percent of which is arable. Japan forbid others to behave as mere spectators, ritory of its southern neighbors. North has three alternatives for survival. in an attitude of apathetic neutrality." Korea has been placed within a strangle­ 1. To expand trade with other free nations In a world as integrated as is ours today hold of Communist control. And now, the on a mutually beneficial basis; the chances are slight that we alone can Communist sword is pointed at Formosa. 2. To live on a more or less permament continue to move forward in freedom while It is all too evident that militant com­ subsidy from the United States; the rest of it, whether in Europe or Asia, munism is a force in Asia. But why, we 3. To turn toward the Communist bloc in slips backward into communist totalitarian­ may well ask ourselves, has it not met with Asia not because of ideo1ogy but out of sheer ism. From a practical standpoint, we would more resistance? Why haven't Asian pa­ economic necessity. · have little hope for continued advance as triots who in great measure were stimulated The attitudes of this country as well as a free people if we cut ourselves off from the by our own history interposed a more for­ economic circumstances in the Far East and spiritual, the economic, the defensive, the midable bulwark to the Communist advance? 7838 CONGRESSIONAL RECORD - HOUSE June 7 Some have assumed in recent years, in a back. No,v, for the first time, freedom has peace in Asia, and in our own national inter­ cynical fashion, that merely by pouring bil­ a :fighting chance. est, that we relegate force to the back­ lions of dollars into Asia, we could guide What does this experience in Indochina ground? Is it not in our interest to explore that continent toward our own precepts of suggest for our policy respecting the rest of any measure which offers some hope of lead­ democracy; some have also assumed that by the Far East? It suggests to me that part ing to peace? arming Asian nations heavily we could pre­ of our difficulty has been due to an unwar­ As a first step it seems to me essential that vent Communist penetration. These ef­ ranted emphasis on the material and our we keep clearly in mind that our national forts may have been necessary, but as I ignoring of the spiritual factors which move interest in the Formosan area is the defense have already said, I do not think they have people in that part of the world. of the islands of Formosa and the Pescadores; been conspicuously successful. Why is that Although the era of colonialism is almost President Eisenhower, in submitting the the case? over in Asia, its after effects remain. There Formosan resolution to Congress, stressed Perhaps we may find part of the answer is extreme sensitivity among Asians and that point. He also made clear that he was to that question in the experience of Indo­ especially among Asian leaders about being trying to prevent further warfare in the china. As you may know, I have had occa­ recognized and dealt wit h on a basis of Formosan Straits rather than to enlarge the sion to visit that area in the course of official absolute equality. There exists most of all conflict. In that objective, the President '1uties on several occasions in recent years. an ever-present sensitivity, an often un­ should have the full support of the people of We poured hundreds of millions of-dollars reasonable sensitivity, to any action which the Nation regardless of political parties. tn military and other aid into Indochina, resembles a return of the colonial relation­ I believe it is also essential to recognize into the State of Vietnam, in an effort to ships of an earlier era. And force, the mili­ that it is not enough to build a military wall help repulse the Communists. This aid tary force of foreign powers, is associated to contain communism in the Far East. We failed to prevent the disastrous defeat of the very closely in their minds wit h colonialism. must maintain adequate defenses there, but French colonial forces at the battle of Dien­ These deep-seated attitudes of Asia toward in the foreground our energy, our intellect, bienphu last year. It failed to prevent the the West form a base which is readily ex­ and our courage should be directed toward loss of northern Vietnam to the Communists ploited by Communist propaganda. As building bridges of understanding across the at the Geneva Conference. Asians look at the West from these attitudes, chasms which separate the free nations. Months before the defeat at Dienbienphu and particularly as they view the United It will t ake more than what we call mili­ I had reported to the Senate that Vietnam States there is a tendency for many of them t ary and give-away economic aid to do that. was not going to be saved by economic and to interpret present United States policy as The challenge is to move into spheres of co­ military aid alone. The fundamental prob­ a policy which emphasizes force. When ir­ operation in which the common progress of lem then as now was one of mobilizing the responsible spokesmen for the Government all free nations becomes possible. If we are people of Vietnam behind an independent, boast of our power, it undermines our d.ig­ equal to that challenge, if we have the pa­ honest, responsible govermaent able to lead nity and our prestige. For the mightiest tience and understanding to stay with it, them and to serve their interests. power on the face of the earth to flaunt we need have no fear of the outcome of this At the 11th hour, when the Indochi­ its strength in this manner is readily inter­ contest between totalitarian communism nese situation was lost almost beyond re­ preted in Asia in the light of a man who and freedom-in Asia, in Europe, or any­ trieving, a government of that caliber was threatens to shoot his neighbor if the latter's where else. installed in the Vietnamese capital of Saigon. cow comes into his pasture. The Asian, like I believe the President is trying to move in It was headed by Ngo Dinh Diem, a Viet­ the average American, would prefer that he that direction now and in so doing he has namese patriot of deep religious conviction, keep his pistol out of sight and discuss the had the encouragement and support of a who had spent a good deal of time in the problem of mending the fence. preponderance of the Senate. He has many United States and France. To be sure, the reactions vary in different times in recent months emphasized the need Diem faced monumental problems. The parts of Asia, but I think it is correct to of a policy of partnership. Such a policy State of Vietnam was split across the middle say that Asians in general, including the calls for close collaboration with other free by the Geneva agreement. The Communists Chinese people-in spite of recent actions nations based on national equality, mutual had fastened a tight grip on the northern stimulated by their Communist rulers--are respect, tolerance of differences, and free half of the country. In the south near an­ a peaceful people and they tend to admire association for the pursuit of essentially archy reigned outside the capital. Diem had the strong who are also peaceful. Much of common goals. to establish the authority of his government the great respect which this country enjoyed Partnership in international affairs, if it while at the same time providing food, shel­ in Asia in the past derived from that fact. ls to be successful, requires forbearance, ter, and a livelihood for some 700,000 refugees President Theodore Roosevelt's admonition compassion, understanding and accommo­ from the Communist-held parts of the to "speak softly but carry a big stick" won dation. It is not an easy approach to for­ country. · u~ a backlog of goodwill in Asia. This sen­ eign policy. It means give and take. If it When I was in Saigon last fall refugee ships sible advice seems to have been forgotten by succeeds, however, it can produce a united were arriving in a steady stream from the too many of our present leaders. strength which will make each free nation north. Most of them were American vessels; Those who know the peoples of Asia, and impervious both to the blustering threats our Navy was doing a magnificent job in I know there are several here today who and the glittering allures of Communist transporting these uprooted human beings. have given years of selfless service 1n that totalitarianism. Most of all it will provide I went aboard one of these American ships region, can attest to the great emphasis an international environment in which indi­ in Saigon Harbor. It was carrying several which they place on negotiations. A spirit viduals in this country and elsewhere will thousand Vietnamese, mostly Catholics, led of negotiation permeates their everyday life; have an opportunity to develop and to by their priests. They had chosen to come it involves adjustments and give-and-take prosper in peace. to the south with nothing but the rags on and prolonged discussion. Those who know their backs rather than to live under the Asia will also attest to the lack of the visible Communists. use of force in the everyday relations among In his attempts to salvage the situation Asians. Bananas on Pikes Peak? in Vietnam, Ngo Dinh Diem has had the The constant mention of force by our lead­ support and encouragement of the United ers therefore is easily misinterpreted in the States. At the same time, he has been op­ Far East. Instead of enhancing the strength EXTENSION OF REMARKS posed, not only by the Communists, but by of our position it has the effect of suggest­ OF a fantastic assortment of gangsters, racket­ ing that we are incapable of coping with the eers, ex-river pirates, witch doctors of situation on a plane of reason. The irony HON. CRAIG HOSMER strange religious sects, and French colonial in this situation is that communism, where OF CALIFORNIA adventurers, all of whom had terrorized and it is not known :firsthand in Asia, is por­ IN THE HOUSE OF REPRESENTATIVES exploited the Vietnamese people for years. trayed and widely accepted as a movement These underworld forces, as I pointed out for peace despite the fact that its deity is Tuesday, June 7, 1955 1n a report to the Senate some 8_months ago, force. This country, which has grown to Mr. HOSMER. Mr. Speaker, the Con­ were engaged in a constant conspiracy de­ greatness on the premise of reason rather gress might as well appropriate money to signed to sabotage the Diem government than coercion in relations among men and grow bananas on Pikes Peak as to ap­ almost from the moment he took office. The nations, 1s branded in the minds of many conspiracy finally came into the open and Asians as a worshipper of force. prove the Paonia irrigation project in staged the revolt in Saigon which you have Communist propaganda of that kind aided Colorado. been reading about in the papers during the by the irresponsible and boastful statements The Paonia project is a part of the pro­ last :few weeks. of some of our own officials negates much of posed multi-billion-dollar upper Colo­ The conspiracy has been defeated. It has the good that is done by our constructive rado River project. been defeated largely because there was in efforts in Asia. What then should be the The cost to the Nation's taxpayers of Ngo Dinh Diem a. native non-Communist role of force in our policy in Asia? We know the Paonia project would be $2,400 an leader who had the spirit and the courage that in all realism no great power, least of all to champion the independence and the in• the United States, can afford at present to acre. terests of his people against their oppressors. abandon or weaken its military power on a The project would grow agricultural Now, for the first time, there is at least a unilateral basis. We must continue to products now supported by the taxpayers glimmer of hope that Communist totalitari­ maintain our military defenses in the Far and in great surplus. Among these are anism in Vietnam may be stopped and turned East. Is 1t not, however, in the interest of grains and dairy products. 1955 CONGRESSIONAL RECORD - HOUSE 7839 Hearings Before House Antitrust trust Division; Prof. Milton Handler, of sitions, which doct;mented such facts as Subcommittee the Law School of Columbia University; that it is the large firms that are merg­ Prof. Walter Adams, of Michigan State; ing at present rather than the small; and and Prof. Eugene V. Rostow, of the Yale that 2 out of 5 acquisitions consist of EXTENSION OF REMARKS Law School. "additionai capacity to supply a market OF Witnesses were heard representing the already supplied by the acquirer." In Chamber of Commerce of the United addition, Mr. George F. Mooney, super­ HON. EMANUEL CELLER States, the National Association of Man­ intendent of banks for the State of New OF NEW YORK ufacturers, important trade associations, York, Mr. Gidney, Comptroller of the IN THE HOUSE OF REPRESENTATIVES leading farm and labor organizations, Currency, and others gave extensive sta­ Tuesday, June 7, 1955 and many national retail and wholesale tistical documentation of the present­ grocery, tire, petroleum, candy, and day trend to mergers in the banking field. Mr. CELLER. Mr. Speaker, in my druggist associations. Again there have been certain imme­ statement on May 10 opening the hear­ On the first of the six matters men­ diate results. In addition to the bills ings on emerging monopoly problems by tioned above, that of enforcement of the already mentioned strengthening the the Antitrust Subcommittee of the House antitrust laws, the Antitrust Subcom­ Celler-Kefauver Antimerger Act, there Committee on the Judiciary, I pointed mittee received testimony from several are several measures designed to apply out the six major reasons why our anti­ witnesses, including Assistant Attorney the standards laid down in that act to trust inquiry had been launched: General Barnes, in charge of the Anti­ the entire field of industry and finance, First. To probe deeply into the opera­ trust Division; Chairman Edward F. whether regulated by Government or tion and enforcement of the antitrust Howrey, of the Federal Trade Commis­ not. Such as H. R. 2115, that originat­ laws at this time. sion; and, among several others, Prof. ed with the Federal Reserve Board, and Second. To assess the dimensions of, S. Chesterfield Oppenheim, cochairman my bills, H. R. 6405 and 5948, the former and generating forces behind, the cur­ of the Attorney General's Committee To amending the Federal Deposit Insurance rent merger movement. Study the Antitrust Laws, which in its Act, the latter the Celler-Kefauver Anti­ Third. To study the adjustments in report on March 31, 1955, made no less merger Act, both bringing bank mergers antitrust policy made necessary by new than 73 suggestions of general guides or within the orbit of the Clayton Act pol­ foreign economic policies here and recommendations to enforcement agen­ icy of keeping whatever free, independ­ abroad. cies and the courts. Practically all of ent profitably competitive enterprises we Fourth. To secure up-to-date infor­ these were bitterly attacked by associa­ have wherever it is working effectively. mation from political, industrial, agricul­ tions representing small business, farm, To let a vigorous, independent unit tural, and labor leaders concerning the labor, retail and wholesale organiza­ swallow another like unto it in strength new monopoly problems which they now tions, university professors, lawyers for and competitive vigor is to sanction an face because of the new forces now trans­ private plaintiffs in antitrust cases-in economic cannibalism destructive of the muting the economy. fact, by nearly every group except giant American system of free, competitive · Fifth. To provide a f arum for the business organizations. enterprise. presentation, from all points of view, of While more evidence and testimony is Perhaps in no area do our antitrust recommendations concerning remedial obviously necessary to determine which, laws require greater strengthening and measures whereby present antitrust laws if any, of these suggestions merit em­ modernization than in the field of for­ might be :flexibly adapted to preserve bodiment in actual policy, the hearings eign trade and foreign economic policy. and promote strong, independent, grow­ have already borne fruit: First, in ap­ It is here that better economic weapons ing, competitive enterprises. prising Government agencies that many are urgently needed wherewith to win Sixth. To take inventory of the politi­ of these suggestions may contravene the the cold war on the economic front. cal and social dangers now involved in will and intent of the Congress, and, sec­ The evidence presented by Prof. Leon­ concentration of decision-making in the ondly, in evoking increased support for ard J. Emmerglick, Thorsten Kalijarvi, hands of giant aggregates of economic measures, two of which I have intro­ Deputy Assistant Secretary of State for power. As Shakespeare stated in Meas­ duced that have now passed the House, Economic Affairs, Sigmund Timberg, and ure for Measure. It is excellent to have and are presently awaiting action by the Eugene V. Rostov was most disturbing. a giant's strength; but it is tyrannous to Senate. These are H. R. 3659, raising In fact, the testimony with respect to the use it like a giant. the maximum fine for violation of the Iranian Oil Consortium and the opera­ · On all these points the Antitrust Sub­ antitrust laws from $5,000 to $50,000, tions of the alleged international oil committee had the privilege of listening and H. R. 4954, permitting the Govern­ cartel revealed such jeopardy to the na­ to antitrust experts from every walk of ment of the United States to recover as tional security interests of this country life inside and outside the Government. a party injured by antitrust violations that I announced the intention of the Senator EsTES KEFAUVER, of Tennessee; and setting a uniform statute of limita­ antitrust subcommittee to hold soon a Senator JOSEPH C. O'MAHONEY, of Wyo­ tion at 4 years in private antitrust cases. complete investigation in this field. ming; Senator PAUL H. DouGLAS, of Illi­ Senator SPARKMAN introduced a bill, S. Such extensive international commercial nois; Senator WAYNE MORSE, of Oregon; 2075, that requires any corporation with agreements in practical effect constitute and Congressman WRIGHT PATMAN, of assets over $1 million to give 90 days' private treaties between American com­ Texas; Congressman HENRY S. REuss, of notice to the Department of Justice and panies and foreign governments, which Wisconsin; and Congressman ABRAHAM the Federal Trade Commission before are undertaken and consummated with­ MuLTER, of New York, gave generously consummating or being a party to a out adequate control or supervision by of their counsel and knowledge derived merger. Congressman PATMAN has in­ duly constituted authorities of the United from their rich experience in the anti­ troduced a bill, H. R. 6748, that not only States Government. trust field. requires advance notification but sus­ Numerous recommendations were The Antitrust Subcommittee was like­ pends a merger if a complaint is filed by made concerning antitrust policy in the wise most fortunate in eliciting highly the enforcement agencies. foreign economic field. Mr. Timberg thoughtful and detailed presentations Other bills have also been dropped in advocated repeal of the Webb-Pomerene and recommendations from several of the hopper such as mine, H. R. 6404, re­ Act since the position of American firms the Nation's most eminent university versing the Glenshaw decision taxing the in export markets no longer resembles specialists in antitrust matters, includ­ entire amount of a treble damage recov­ that of 1918. He also suggested legisla­ ing such veterans of years of responsible ery, and Representative WALTER'S, H. R. tion reducing or removing the tariff pro­ service in the Antitrust Division and 4958, on the problem of triple damages. tection on commodities produced or sold leading professors of law and economics As more evidence is accumulated and by firms found guilty of violating the ~s Prof. Louis B. Schwartz, of the Law digested no doubt other bills will be antitrust laws. He urged implementa­ School of the University of Pennsyl­ drafted. debated, and passed. tion of the Thye amendment and to­ vania; Prof. Leonard J. Emmerglick, of The testimony relative to the current gether with Professor Rostow castigated the School of Law of Georgetown Uni­ wave of mergers, item 2 above, was vo­ the action which on April 4, 1955, termi­ versity; Mr. Sigmund Timberg, for many luminous. The Federal Trade Commis­ nated United States membership in the years Chief of the Judgments and Judg­ sion, on May 20, 1955, brought out its United Nations Ad Hoc Committee on ment Enforcement Section of the Anti- Report on Corporate Mergers and Acqui- Restrictive Business Practices. They ,7840 CONGRESSIONAL RECORD - HOUSE June 7 pointed out that notions of extensive procurement contracts almost wholly to spec~al message by President Theodore cartelism abroad are hangovers of the large firms despite heroic efforts and Roosevelt, was endorsed by Presidents Fascist-Nazi period and completely ig­ constant investigation by the Senate William Howard Taft and Woodrow nore the extensive liberalization of trade Small Business Committee and the Small Wilson, and has been urged by numerous that has taken place under the aegis of Business Administration to get a fair experts on antitrust problems up to the the Marshall plan. Removal of Fascist share for small business. Congressman present day, Of interest is the fact that trade barriers and of war controls cou­ MuLTER advocated further examination the Twentieth Century Fund in its three­ pled with the inauguration of controls of bank mergers. And so on. volume study of cartels and competition over cartels have created a new freedom Equally diverse and numerous were the puts first and foremost a proposal for of enterprise which has been an impor­ recommendations-point 5 above-ten­ Federal incorporation. tant factor bringing West Germany and tatively offered for study and action. Finally, the hearings of our Antitrust Europe generally to an all-time high in The witnesses cari be readily counted on Subcommittee reemphasized that the prosperity. the fingers of one hand who testified with basic goals of the American way of life The fourth item--current vexing mo­ respect to the Attorney General's report are individual freedom first and fore­ nopoly problems-was dealt with by that all of the 12 recommendations for most, then a system of justice establish­ almost a score of witnesses from every legislation and the 73 suggestions for en­ ing the zones of creative voluntarism field of commerce, industry, and labor. forcement be endorsed. More than 9 out within which a maximum of individual The gas-station owners, the tire dealers, of 10 witnesses dissented to a lesser or freedom can be obtained; and third, and the wholesale grocers, the retail drug­ greater extent, primarily on the grounds least important, economic efficiency. It gists, the cooperatives, small-business of their conviction that the antitrust laws is not enough for big enterprise merely men-all gave concrete and direct wit­ should be strengthened rather than to be efficient. It must not limit freedom ness of their difficulties. In this connec­ weakened. or generate injustice. Americans have tion Dr. Julian Caplan, of San Francisco, Many thoughtful and important sub­ repeatedly given heavily of their treasure became the first expert to be heard in stitute proposals were made to the Anti­ to pre~erve their freedom. Vigorous en­ recent years whose practice covered trust Subcommittee. So numerous were forcement of the antitrust laws that pre­ representation of plaintiffs in private they, in fact, that only a small sample serves small business and other recruit­ antitrust actions. From his decade of can be accorded space in this preliminary ing centers for managerial skill and free experience he gave the Antitrust Sub­ report. The subcommittee was urged to enterprise is necessary for the preserva­ committee extensive documentation con­ look into the pros and cons of legislation, tion of democracy. cerning the plight of small west coast for example, which might prohibit com­ steel fabricators who compete with sub­ panies of specified size from merging sidiaries or operating departments of except upon advance approval based on large integrated steel producers but are a showing of technological necessity, or Address by Robert B. Anderson, Deputy dependent upon ''big steel'' for sheet which might repeal the Reed-Bulwinkle Secretary of Defense, Before the Grad­ or other semifabricated materials. His bill, or repeal the McGuire Act, or amend evidence taken from court records of the Motor Carrier Act to eliminate con­ uating Class, University of Texas, cases settled in favor of the plaintiff both trol of entry and rates for trucks and Austin, Tex., Saturday, June 4, 1955 in and out of court showed coercion, buses, or prohibit restrictive licensing of intimidation, obstructive and discrim­ patents by large patentees. In addition, EXTENSION OF REMARKS inatory tactics in delivery of materials the Antitrust Subcommittee was urged, and even as condition of settlement in for example, to compile a list of the re­ OF one case the brazen and, in my judg­ straint of trade cases brought against HON. SAM RAYBURN ment, clearly illegal requirement that the "100 largest" firms, thereby identify. OF TEXAS plaintiff bind his lawyers not to take on ing habitual offenders; to examine care..; IN THE HOUSE OF REPRESENTATIVES a single additional antitrust case for a fully a few leading patent pools; to con­ period of 5 year. duct pilot studies of a few of the very Tuesday, June 7, 1955 The evidence here became crystal clear largest industrial giants with a ·1iew to Mr. RAYBURN. Mr. Speaker, I ask that there are hundreds of thousands of drawing up tentative reorganization unanimous consent to extend my re­ small-business men and farmers who re­ plans that might limit such enterprises marks in the RECORD by placing therein gard themselves as victims of monop­ to activities geared in kind and volume an address by-Robert B. Anderson, Dep­ oly practices. There seem to be a dozen to minimum technological requirements; uty Secretary of Defense, to the graduat­ or more areas here crying for intensive to compile a who's who of megalolatry, ing class of the University of Texas on investigation. Senator WAYNE MoRSE that is, of representatives and ideological Saturday, June 4, 1955. opened up a Pandora's box of monopoly fellow travelers of giant enterprises or I commend this address to you for problems in the field of electric power. their satellites who comprise the big­ thoughtful reading. It is a very able ad­ Senator DouGLAS highlighted the plight business network in Federal and State dress delivered by a very able man. of the farmer squeezed between the Governments; and others of this genre. The address follows: upper millstone of higher prices for the The sixth and last reason for probing ADDRESS BY ROBERT B. ANDERSON, DEPUTY things he buys, farm machinery, ferti­ antitrust and monopoly problems, the SECRETARY OF DEFENSE, BEFORE THE GRADU• lizers and other finished goods-and the fear that concentration of power in in­ ATING CLASS, UNIVERSITY OF TExAS, AUSTIN# lower millstone of declining prices for dustry, in labor, and in agriculture may TEX., SATURDAY, JUNE 4, 1955 the things he sells. such monopolistic generate concentration of power in gov­ Into the crucible of his experience, man price spreads and huge accumulations of ernment, ran like a connecting thread has poured the elements of time, endless ef­ corporate profits brought on the depres­ through the testimony of nearly all wit­ fort, experimentation, hope, drudgery, and slavery, and a multitude of other concomi­ sion of 1929, he warned. Senator nesses. They repeatedly stressed the tants, all aimed at producing things and KEFAUVER, Congressman PATMAN, and urgent need for full investigation of mo­ services suited to his requirements. The others called for intensive scrutiny of nopolistic trends and abuses to protect products of this crucible have been con­ the impact of monopoloid enterprises the country against the threat of un­ tinuous-some of them good and some evil; and restrictive trade tactics upon re­ limited agglomerations of private power some of them tangible and other describable tailers and wholesalers, notably of tires, of such proportions as to be inconsistent only in terms of a general sensing and ap­ gasoline, food, and drugs. Senator with the survival of genuine private en­ preciation. Through the course of history man's lot has been shaped by the adding o! O'MAHONEY showed how, despite ex­ terprise or the successful functioning of ingredients, the achievement or failure of plicit congressional policy, no new democracy itself. production, the masters of the brew and the entries had been certificated among the A highly interesting development in uses of the end results. trunk airlines since 1938, the field being the hearings on this point was the em­ Ever so often the pot bolls furiously and wholly preserved by the Civil Aero­ phasis on the need for tightening incor­ man's hopes are raised or new fears are gen­ nautics Board for 16-due to mergers,· poration laws, and especially the revival erated. Some of the time the restless tides now 13-"grandfather" carriers. Con­ of human activity are perceptibly slow and of a proposal long advocated by Senator progress seems to retrograde, although gressman REUSS suggested an exhaustive O'MAHONEY that a national rule be es­ measured in centuries this appearance is es­ probe of the forces which manage to tablished for national corporations. sentially unreal. Thus the panorama moves award some $30 billion of Government This proposal was made the subject of a on. At any given point of time and place 1955 CONGRESSIONAL RECORD - HOUSE 7841 1n history there always seeps into man's which will someday follow lt, will supple- instead produce a material environment consciousness the realization that this mo­ ment the power installations utilizing con- which tends to differentiate people, not drive ment, and only this moment, is his. Hence ventional fuels as we prepare to meet a de- them together into some drab and formless he represents the conjunction of the past mand for mechanical energy which is almost egalitarianism, which promotes individuality with the future in the transiency of the certain to double by 1980. Our experience rather than conformity, which demands present. What of today? What of tomor­ with the sea trials of the submarine Nau- from each member the very best of his own row? What of the measurement of oppor­ tilus daily increases our knowledge of the distinctly personal contribution to the tunity? How great is the challenge to ef­ possibilities of the atomic engine for the group. We shall direct our energies to real­ fort? How rich is the reward of achieve­ whole field of marine propulsion. This izing a world in which material advances ment? What to be hoped for? What do we knowledge we shall put to excellent use in ._ mean increased possibilities for the further dream of? Where is the door to the undis­ the next few years as we proceed with the expression of human talents, ideas, abilities, covered, the key to the locks of comprehen­ construction of the world's firsii nuclear- and creativeness. sion and creativeness? powered merchant ship. These objectives require that the improve- In recent months many of the headlines But the production of usable energy is ments to our social structure, such as our in america and around the world have told only one of the many possibilities of the political organism and our systems of pro­ of the development of power and the peaceful atom. From the progress of our duction and distribution, keep equal pace strength of nations; the capabilities of vio­ experiments in producing beneficial muta- with our advances in the physical sciences. lence, the destructive uses to which energy tions in plants, we can hope to reduce some I know of no more auspicious climate for can be put. of our staggering agricultural production such a demon:,tration than that provided There has been a parade of dreary items of loss to diseases such as rust and wilt. Meat by America. Here is the birthplace of gov­ uncertainty, crisis, and danger. exposed to mild gamma-ray pasteurization ernment by all the people. Here religious We cannot turn our backs upon these grim can be kept safely for much longer periods freedom is not only written into organic realities of our time, and this we will not do. than formerly. Radioactive isotopes are law, but, L1ore importantly, it is practiced We have, and we will maintain, both the used as tools of measurement and observa- in the customs and mores of the people. military capability and the resolution to ful­ tion in factories, laboratories, and hospitals Freedom of person, of speech, and of the fill our role as one of the primary custodians all over the country. Radiocobalt, radio- press are specifically provided for in our of freedom and hope for the whole world. iodine and radiophosphorus are regularly Bill of Rights. Our legal system is based But tonight I come to join with you in lift• used in the diagnosis and treatment of dis- upon an immutable higher law above the lng the veil to see what may lie beyond us eases such as cancer and leukemia. passion and prejudice of man in the falli- that can give new reality to hope and new A look at what is transpiring in our labo- bility of his interpretation. We work con­ purpose to life. ratories today gives some clue as to what stantly to improve its integrity. A recent example of the opening of the we may someday expect to see in common The philosophy of our competitive econ­ door to the future is the unfolding story of practice. It is of course true that many omy announces the thesis that if man works man's first conquest of polio, offering free­ successful laboratory experiments never get to produce the goods and services required dom and escape from a crippling disease. out of the laboratory stage, but our State by others for the betterment of life, his own For this our hearts are filled with thanks­ of material abundance attests to the fact lot may be benefited by additions of goods giving. that a great many of them do. About 2 and services as well. Other theories of econ­ Thus the progress of medicine moves alQng years ago scientists at MIT succeeded in omy-that of the Communist and Fascist its way, healing the sick, relieving pain and decomposing water into its component ele- dictatorships-improve the lot of the fa­ wretchedness, and enabling people to live ments of hydrogen and oxygen using only vored few by the appropriation of the labors longer, healthier, and more enjoyable lives. solar energy aided by catalysts, and last year of the rest. Only in a free world with the And we are assured that, while medicine is at the University of California, sunlight was privilege of competition does the whole level thus contributing significantly to man's actually harnessed to create starch and sugar of living standa.rds rise at one time, and only health and comfort, the discoveries and in­ from carbon dioxide and water for the in a free world are there rewards in propor­ novations we are making everywhere else in first time outside the living cells of green tion to the energy, the resourcefulness, and the realm of natural science are likewise plants. We have developed a battery which the pride of workmanship which a man adding to the prospects of a more abundant yields electric energy directly from the sun's invests in his contribution to society. life for people. In almost every way the rays. We have discovered chemicals which It is one of the high offices of education to years ahead will be marked by breathtaking kill cancer cells without harming the normal keep our material opulence and success in scientific progress, which may or may not cells about them. We have heated houses its proper perspective; to make it meaning­ be employed in ways which add to the pros• entirely through the radiant energy of the ful in terms of human living; to differentiate pects of human happiness. But the oppor• sun. We have done some astonishing things between culture and the . things it uses. It tunities for good certainly will be there, with chlorella, a sea plant which holds prom- is a continuous task, one which must be un­ and to a large extent the choice as to how ise of becoming an important source of dertaken anew· each year and each genera­ we dispose of them will be ours. food. We have found ways to make sea tion. For no people can "inherit" a civili­ With the coming of the fission and fusion water drinkable without resorting to the zation merely by falling heir to its material of the atom, mass became directly convert­ process of distillation. We have discovered relics. Civilization is a matter of spirit; of ible to energy, and the greatest source of and developed new techniques in the pro- conviction and belief; of folkway and tradi­ power of all time became in a measure sub­ duction and utilization of petroleum and tion. It is a shared attitude toward life and ject to man's control. This triumph of coal. · living that is felt ·and practiced by a whole science has been regarded with a marked Meanwhile we are witn~ssing a continuing people, into which each succeeding genera­ ambivalence by our people. Inadequately increase in the productivity of an economy tion is born, and upon which it is nurtured controlled, it could presage a new age of that is already maintaining the world's throughout childhood to maturity. Within destruction and fear-fear of the unknown highest standard of living on a 42-hour aver- this great and endless process the university antl of those who would use this power de­ age workweek. The continued development finds its place not merely as the repository of structively, and fear that man's capacity for of our industrial . technology holds out the accumulated wisdom, but as a source of moral and political responsibility cannot prospect that the American family in 1980 new truth and new understanding which measure up to its demands. may have an income after taxes of almost dedicated men and women may present to Yet at the same time, it represents the half again what it was last year on the basis the world of their own time and to all those hope of a vast new source of productive en­ of a workweek which may not exceed 36 who follow them. I dare say that there are ergy which may in time free millions of hours. few, indeed, among you for whom tonight human beings from the necessity of physical If any proof were needed of man's ulti- marks the effective end of your contact with drudgery, and in so doing create the material mate capacity to master his physical envi- this university. More than likely its in­ conditions in which life, liberty, and the ronment, it would seem that the example of fluence will touch your life again and again pursuit of happiness may have meaningful America in mid-20th century would be suffl- over the years of the future, in ways so in­ reality to those who now are able to regard cient. There is no question about that. It timate as to be surprising. For the future is them only as vague and distant abstractions. can be said that man is substantially the inextricably bound up with the present and This does not mean-it should not mean­ master of the physical world about him. Yet the past. Society is, as Burke remainds us, the lessening of a demand for useful work. all these scientifi_c triumphs have a common "a contract. It is a partnership in all sci­ Labor is indispensable to useful life, and use-· characteristic; they belong to the external ence; a partnership in all art; a partner­ fulness is indispensable to happiness. It world of things. They are the product--not ship in every virtue, and in all perfection. means rather that man-freed from the the essence-of man's creativeness, his hu- And as the ends of such a partnership can­ drudgery of toil, may address his talents to manness, his divine relationship with his not be obtained in many generations, it be­ a higher order of inte111gent achievement, to Heavenly Father. We must not forget that. comes a partnership not only between those the discovery of the new, to the order of We must not forget that these things have now living, but between those who are living, society by examination of cause and effect, meaning only to the extent that they serve those who are dead, and those who are not and to the other endless pursuits which may to enhance the dignity, the uniqueness, and yet born.'' stem from the efforts of beings created in the separateness of men as individuals. We We are thus within and of the great stream the image of God. are resolved not to produce a society of hu- of humanity, receiving of its bounty and Last year· saw the beginning of the first man automatons, conditioned like Pavlov's morally bound to return to it all that our atomic powerplant for ·commercial use, at dogs to a dreary set of uniform signal re- efforts can bring forth in a lifetime of use- Shippingport, Pa. This plant, and the many sponses to outside stimulation. We shall ful endeavor. · 7842 CONGRESSIONAL. RECORD - HOUSE June 7 Unused knowledge, for example, serves . American veterans, I know, have a prior "at the summit." They have even·been mak­ little better than ignorance. In fact, it may right to avail themselves of my impressions, ing pleasant little personal overtures to the well be worse, because it represents a waste, .a prior right also to my services as their White House in the form of letters of ad­ not only of the talent and capacity of him Representative in Washington and in the miration from Marshal Zhukov, the Soviet who possesses it, but to that extent, it means Congress. As your Representative at Large, I Defense Minister, to the President. This also a waste of the efforts and contributions suppose I am correct in regarding myself was followed up by a message of "friendly of all those who made it possible for such your eyes and your ears, in fact, your voice greetings" from Marshal Sokolovsky through knowledge to be owned without being used. and your will at the heart of the Govern­ Americans visiting Moscow on the occasion Learning is a privilege which all too few ment of the United States where the deci­ of the 10th anniversary of the meeting of enjoy, and because it is thus a privilege, it• sions are made that affect the lives of us all American and Russian Armies on the Elbe. carries with it the responsibility that it be and that will determine the survival of the The Communist oligarchy seems at the mo­ intensively and productively employed in free world. ment to be in a state of lull from the busi­ ways which contribute to the prospects of Let me disabuse you to begin with of any ness of murdering one another. And this human happiness in our world. notions that you may have from what I has afforded them the opportunity to make In pursuit of this objective, we are con­ have just said that I am going to let you in themselves seem as if they have indeed ren­ cerned with the past because we must use on some top secrets. On the contrary, I dered themselves harmless to world peace. the tools and the knowledge it has given us; -hope very much today that the Kremlin has Now we live in a thermonuclear age, and we are concerned with the present because an agent in this audience to report back we know there is no such thing as winning we must live in it, largely within the scheme to Moscow precisely and accurately and fully a war even if you win it. That's the para­ of things as they exist. It is only the future what I am going to say. dox of world war III. And there are those which we are free to influence, and to which The first point I have to make and that who find that even 1! you should win the we have any chance of making a real con­ I wish the Kremlin to recognize is that So­ third world war, you are very likely to lose tribution. viet Russia has no credit-no credit what­ much more than you win: ciVilization itself. So the future becomes the justification for ever-for integrity with the free world and This fact plus the horror of the two World that this credit for integrity is even less Wars this generation has been through-and the existence of those who live in the present. than zero with the Government of the United It will be largely the kind of future that we the cost-have deeply intensified the in­ States. stinctual desire of the average American for have the wit, the wisdom, and the moral If we start from that position, we can goodness to make. At all events it is cer­ -peace and decency. It is a feeling we share then proceed to evaluate realistically what with the British and the French-with all tain to be a very lively one. But if it is to has been happening in recent -weeks: The be productive in the sense that there ls a of Europe and the East. In fact, it is a strategic moments I spoke of in this critical feeling we share, I am sure, with the op­ spreading and diffusion of those values upon era of world history. which our civilization ls founded and from pressed and harassed Russian people them­ Little Austria has her independence back selves, mass victims of a form of government which it draws its strength, it will only be again. To be sure, it is a bit shriveled. Her because we who are the present custodians known as the police state. substance has been drawn out of her by the The free world is thus caught between embrace them with genuine conviction, live greedy paw of the Soviet Union. But never­ by them, and include them in our legacy to the Soviet threat and the risk of world de­ theless, she has her independence. And the struction, partial or total. And over all- hangs the world of our children. It ls not simply a Soviet Union did make concessions-pre­ matter of copybook answers or of any the danger of the psychology of a dynamic cisely those concessions she had failed to oligarchy of diplomatic and political gam­ ritualistic laying-on of hands. It ls a matter make all along, which would have permitted of loving and hating the proper things; a blers-without moral principle-who may sovereignty returned to Austria 6 years ago. play with the peace and safety of the world, matter of rejecting that which is known to be One of the concessions, just incidentally, to false in favor of that which ls known to as some of their compatriots are known to achieve this end, was the relinquishment play Russian roulette. The world-slave and be true; of putting principle before expe­ by the Soviet Union of its cruel claim to the diency, of cherishing universal values rather free-is thus at the mercy of ruthlessness lives of refugees from communism in Aus­ and caprice. than those of limited worth and application. tria. It had hoped to bring them back for It ls a problem of stark realism and honesty punishment-and we can imagine the kind There are Yalta and Potsdam, Moscow and in the evaluation of fact; it is one of mesh­ of punishment-behind the Iron Curtain. Berlin, the United Nations and Korea, Ge­ ing humanity and science; of balancing Thus the Soviet Union on this point and neva and Bandung-a hundred and one con­ frailties and determinations; of recognizing others reversed itself in signing the Austrian ferences-to testify to a voluminous record, responsibllity and acknowledging both the Treaty. with full documentation, of Communist restraint and demand of unimpeded con­ The Soviet Union has been making gra­ trickery and betrayal. science. The future will depend upon the cious overtures to dictator Tito of Yugo­ What policies we shall pursue with such instruments which we are able to bring to slavia, its estranged fellow Communist and an antagonist will depend upon many fac­ its solution: our moral conviction, our vision, semi-enemy. Tito replied by all but slapping tors, and I do not propose today to invade our wisdom, and our will. the Soviet Union in the face with his decla­ the province of the President, his Secretary ration of his continuingly favorable attitude of State, and the leaders of Congress who toward the West, irrespective of what the are engaged in this very sensitive and cru­ Kremlin delegates to Belgrade may propose. cial area of direct decision. I ask only for Is Moscow's "Sweet Reasonableness" a Tito, who should know the Kremlin even a reemphasis on what we already know: better than we know it, has no faith in The Soviet Union has no credit for integ­ Mirage? Soviet diplomacy either. But the Yugoslav rity with us and with the free world. That dictator remains loyal to the Communist ls the conviction, I believe, of the American people. In this, I am sure, all American EXTENSION OF REMARKS techniques. He has been talking to the West more recently in the same tone he veterans will go along with me and my fellow OF has applied to the East. It looks at the citizens here in Delaware. Nor will we seek moment as 1! he were playing both ends to obstruct-those of us who have these sus­ HON. HARRIS B. McDOWELL, JR. from the middle. picions of the Soviet Union-any negotia­ OF DELAWARE We know also that the wily Soviet com­ ~ions that may develop and are in process IN THE HOUSE OF REPRESENTATIVES missars are engaged right now in what they now. If there is good to come of what is now going on, let it come. · Tuesday, June 7, 1955 hope ls a monumental realinement of the international power situation in Europe and. If Zhukov and Sokolovsky mean their Mr. McDOWELL. Mr. Speaker, un­ that the major key in this alinement is friendly greetings to the President and they der leave to extend my remarks, I wish Germany and its possible unification under have the power to act, let it happen. If to include the following address I deliv·­ some questionable stipulations of guaran­ there is an iota of sincerity from the Soviet ered at the Memorial Day exercises of teed neutrality as between the East and the side in the Austrian Treaty, let us on the West, thus alienating the rebuilt free Ger­ show of proof act accordingly. If the death the Veterans of Foreign Wars at Seaford, many from its Western alliance. The Soviet of Stalin means in fact a change in the Del., May 30, 1955: Union would undoubtedly like to weaken aggressive expansionism of the Soviet Union Is Moscow's "SWEET REASONABLENESS" A NATO-I! possible even nullify it-and strike let us, by all means, take the fullest advan­ MIRAGE? some kind of a bargain whereby the pain­ tage of this change of heart, for the good Memorial Day this year occurs at one of fully constructed, democratically negotiated of all the world. A meeting at the summit the most strategic moments in a very critical defenses we have built up in Europe against or a meeting at the base, or a meeting at era of world history. possible Soviet aggression, would be turned any of the intermediary points, if it will It 1s for this reason that I propose to give into so much scrap. And by defenses I advance the cause of peace another inch, you-if I may-a briefing, that's what they mean both military bases as well as diplo­ another minute, another dollar's worth, is call it in Washington, a briefing, from my matic safeguards, and economic and politi­ 1n order. own angle of vision, on the situation that cal fortifications. All I can say fro~ the_ conduct of the past confronts the free world. This could then be expected to have re­ of Soviet negotiations and. from the known I hope this briefing ls even more pertinent percussions 1n the Far East with like results. facts about Soviet philosophy, and the teach­ because I am addressing myself particularly The Soviets have accepted the invitation ings of Stalin and Lenin is that I-for one-­ to the American veterans. of the Western governments for a meeting cannot be made to believe it. For m-e, It ls 1955 CONGRESSIONAL ·RECORD - HOUSE 7843 not enough that the parties to any nego­ If there ls 'anything in this series of faked gain mutual benefit. In this order we have tiations in the future are in oral agreement, up "sweet reasonableness" attitude of the banded ourselves together so that each in­ however clearly and plainly, in any form of Soviet Union it is this: They are in the midst dividual may lend to the entire group the words. For me it is not enough that the of a domestic economic convulsion. They strength and talents which he possesses and, parties to such negotiations put it all down are issuing to their own people exhortations in turn, receive the help, inspiration, and in writing, spelling out the details, item for that reveal low production in industry, and -protection of the whole organization. item, and word for word, in a commonly confusion and disorder in agriculture. They Fellowship is to be valued for what is in understood mutual translation of each oth­ have d eposed the ostensible successor to ,it-not for what may be gotten out of it. er's language. Stalin-Malenkov-in humiliation and self­ When a group of people unite for purely All I can say is that nothing is enough­ abasement. They have murdered the material benefit, that union is not a fra­ except performance. formerly powerful Beria. ternity. It is impossible not to have differ­ Performance is enough. We cannot accept They m ay be bidding for time to consoli­ ences of opinion. That is democracy. But anything less. date their power at home. without unity and cooperation there can be That means that every move we make This may very well be an opportune time no progress. It was this spirit which caused should depend upon our strength and not for the West to seize on the situation for the founders of Massachusetts, Pennsylvania, upon the supposition of honest dealing and the enduring enforcement of peace on the and Virginia each to lay aside his individual anticipated performance from the other side basis of guaranteed, concretely implemented, interests and prejudices and unite in forming of the conference table. Nothing can be ac­ terms, protected by the West's strength the Continental Congress which laid the cepted by the West less than the deed itself. in being. foundation for the world's great Republic. And this must be so implemented that the This- is Memorial Day, and we cannot for­ The building we dedicate today will pro­ continuing guaranties will insure the physi­ get the sacrifices of those who made possible vide our organization with greater facilities cal impossibility of a betrayal of a Soviet the freedom under which we live. We shall for becoming more useful and give us more promise, or a reversal after the promise is not betray the heritage they left us. capacity for enjoyment. Elkdom has ex­ half or all fulfilled. What remains of the free world is living panded and grown because within it men I make no recommendations of policy, and -on the profit of their heroism. find social fellowship which they can com­ I have the highest respect for those vested This is the hour for heroism on our part, bine with the opportunity to give expression with that responsibility, on both sides of for firm resolution and a demand for per­ to their instinctive desire to be of genuine the aisle in Congress and in the adminis­ formance in the face of Soviet blandish­ service to their fellow men. An Elks Lodge tration. ments. It is the hour for assurance, in the in any community gives that community new All I say is that for me the Soviet Union form of unmistakable and irrevocable guar­ civic strength and enthusiasm. is now playing a complicated game of chess anties, from the Soviet Union, that the world The passage of years is marked by changes and we shall be on the alert at every move. will have peace and that this peace will en­ all about us. Sometimes the changes are so It is right and good that they shall know dure for ourselves and for our children. sudden that they are immediately noticeable, they are not trusted. That is why I hope my On this principle we can and wm stand and we reflect upon the inevitab111ty o! words today, however humble and however fast. To negotiate through strength-to ac­ change and the instability of men and ideas slight, may be heard in the Kremlin as a cept only the deed, not the word of the dis­ and institutions. More often, however, symptom of what all the American people credited Commissars of Red Russia. change comes so subtly that we are unaware think. A nation without credit for integrity Betray me once-shame on you. Betray of the process and only later ls it realized cannot through a splurge for world atten­ me twice-shame on me. that modification has occurred. tion and by making minor concessions-still The 87 years through which the Order of minor as of this hour, I insist-come to the Elks has grown and prospered have brought bargaining table and expect us to fool our­ changes in the Order. These changes have selves into believing that her unclean hands The Elks Contribute to Community and been for the better. They have made no are clean. They drip with blood and the lost fundamental alteration in the character of liberties of vast masses of the earth's popu­ National Progress_ the order; on the contrary, we have held lation. firmly to those principles laid down by our We must not forget that Communist tyr­ founders, adding to them, yes, and strength­ anny rules one-fourth of the world's surface EXTENSION OF REMARKS ening them. Succeeding generations of Elks and one-third of the earth's population. OF have clung to the earliest traditions, and How much of it will they give up to prove have added to them wisely to give us a rich their good will? HON. HAROLD D. DONOHUE and valuable heritage. How much of the tyranny they have exer­ OF MASSACHUSE'ITS Of fundamental importance to the order cised and the powers they have usurped will IN THE HOUSE OF REPRESENTATIVES is our Elks ritual. It states with beautiful they surrender in the captive countries of clarity the noble ideals that inspire us. It Poland, Hungary, Albania, Czechoslovakia, Tuesday, June 7, 1955 is the golden cord that binds us together Bulgaria, Rumania, Lithuania, Latvia, Es­ Mr. DONOHUE. Mr. Speaker, I have 'in fraternity with our brothers of today, of tonia, East Germany, Russia, and the non­ the past, and with those yet to come. From Russian nations of the U.S. S. R.? been asked to include the address I delivered at the dedication exercises of the very first lodge, stress has always been That is the answer all the world is waiting laid on the faithful, dignified, and impressive for. · 'the new Elks Building, June 5, 1955, rendition of the ritual. Through good times After that there are counterpart problems sponsored by the Framingham (Mass.) and bad, the high standards set by the in the Far East. Benevolent and Protective Order of Elks, founding Elks were adhered to, and without Until these questions are answered accord­ Lodge No. 1264. question, this example has had a profound ing to the established laws of justice and influence throughout the order. sovereignty, how can the West take with any­ The address follows: thing like a respectful mien the Soviet prot­ It ls a high privilege and pleasure to take So it is with the tradition of Elk hospital­ part in these dedication exercises, not so ity. The visitor from far places always has estations of peace and its recommenda­ found a hearty and generous welcome await­ tions-ridiculous on the face of it-for dis­ much, indeed, as your Representative in Congress, but more as a fellow _member o! ing him at the door. Times, men and places armament? have changed, but the spirit of hospitality Disarm who? For what? the great Order of Elks. The Soviet disarmament plan was an­ The subscribers who have contributed so has never waned. swered by the British through Anthony Nut­ generously to this beautiful structure and The willingness of Elks to assist our Gov­ ting, the British Minister of State for For­ those who have labored so tirelessly and ernment and our Armed Forces was made eign Affairs, and by James J. Wadsworth, the earnestly toward the completion of this evident at the outbreak of World war I, when United States delegate to disarmament talks project now see the result of their efforts. adequate care of sick and wounded service­ in London. I have studied the Soviet pro­ It is eminently fitting that such a result men overseas was of urgent necessity. Our posals and the replies to them. And what should crown the devoted and self-sacrific­ grand lodge appropriated $1 million for this this all comes down to, as I appraise the So­ ing work of the many who have given freely purpose, and it was through this fund that viet offer is, just so much hogwash for which of their time, energy, and means in its the first 2 base hospitals set up in the battle the modern term ls "propaganda." There is behalf. area in France were made possible. The first the subtle presumption that the Soviet has The dedication of a building such as this reconstruction hospital for war casualties to somehow come around to the view on dis­ represents an offering on the altar of the be established in the United States was a armament we advocated as long ago as 1947 noblest aims of civilized mankind. It is 700-bed facility constructed and equipped and that the Kremlin has reversed its line. more than foundation stones, walls, beams, by the order in Boston, Mass., and turned They are now putting up a polite posture to steps, and a roof. It embodies the prin­ over to the Government in November 1918. what we told them was right and they for­ ·Ciples of frater~alism, good fellowship, and It was at that time that our order created merly rejected. cooperation which exists within the Benevo­ its revolving fund through which it was able The Soviet position regarding an effective lent and Protective Order of Elks. to assist over 40,000 disabled veterans during international control system, Britain's An­ The primary object of fraternal organiza­ their vocational training period. The de­ thony Nutting points out, is "still obscure." tions is to bring together men with kin­ tailed system of disbursement of these And "obscure" is the key word to describe dred interests, thoughts, and ideals so that moneys originated by our grand lodge was all Soviet negotiations. they may enjoy each other's society and found so practicable that it was adopted by CI---493 7844 CONGRESSIONAL RECORD - HOUSE Jitne 7 a Government agency in distributing its own solid public relations in -our communities The principles of our order are exactly the funds. which have demonstrated to our fellow man opposite of those embodied in communistic When World War II presented its problems that our order typifies Americanism. We practices. We believe in and have a concern to our Government, the order's reputation have demonstrated not only to our own mem­ for the rights, privileges, and responsibilities for ready cooperation and know-how was bership, but to the country as a whole, that of citizenship under our constitutional gov­ well established and its assistance in recruit­ our aim ls to translate into realities the ernment. We believe in community better­ ing flying cadets was requested. Over 400 cardinal principles of Elkdom. ment for the good of all. We believe that the lodges organized and conducted refresher­ our program ls one of expansion. Those blessings of liberty which we enjoy should course schools to qualify men for the Air who work the hardest in our order develop be passed on to posterity. We are here today Corps with such excellent results that the an even more profound love for it as they as Elks, but in a much larger sense, we are Army called upon the Elks for aid in recruit­ work. From our service to each and every here as Americans. ing 46,000 Air Corps ground crewmen; within community in the Nation we symbolize the When the Benevolent and Protective Order a few months 97,000 had been secured. The ideal relationship between the citizen and of Elks had its origin approximately 87 years Elks came through in such record time when his Government. Government in the hands ago, the Golden Rule became its foundation. the Navy asked for help in recruiting fliers of active, honest, faithful citizens is safe. The eternal truths of this foundation have that we were the only organization solicited The fundamental articles of faith of all lib­ been proven by the growth and virility of when both the Army and Navy were in vital erty-loving American citizens contain an un­ our order. Our accomplishments are proof need of engineers and Seabees. This faith swerving belief in basic human rights. The positive that Elkdom is composed of those in our efforts was rewarded when we were fundamental articles of faith of all loyal Elks who want to share their lives with their fel­ able to fill their quota 3 months ahead of contain an unswerving belief in basic human low man. schedule. rights. We believe in the dignity of man, It is a man's privilege to assume the re­ With this record of accomplishment for the freedom of the individual, and the Chris­ sponsibilities of citizenship. And it is his reference, it is not surprising that our Gov­ tian principles upon which these United responsibility to insure the privileges of his ernment continues to call upon the Elks for States were founded. fellow citizens. Two things are vital to assistance in its projects benefiting our serv­ If our American institutions are to sur­ democracy: that every man grant every other icemen. vive, our manhood must be characterized the rights he claims for himself, and that When the Veterans' Administration set up .by a great regard for the day set apart by every man accept the obligations he expects a Public Information Committee in its na­ God Himself. William H. Seward said: "The others to exercise. The good citizen con­ tional advisory group in order to bring to ordinances which require the observance of cerns himself with the privileges of others the public a better understanding of the 1 day in 7 and the Christian faith which and the responsibilities of himself. work being done by volunteers of all organ­ hallows it are our chief security for all civil The Benevolent and Protective Order of izations in its hospitals, the Elks National and religious liberty." Elks in this community has assumed the Service Commission's representative was Perhaps the 20th century has been prone responsibilities of citizenship in its finest named chairman. In that capacity, not long to direct too much attention toward mate­ interpretations for the good of mankind. ago, he enjoyed the privilege of delivering rialism. Ralph Waldo Emerson wrote: "The It is tremendously important that a build­ his committee's first, and well-received, re­ true test of civilization is not the census, ing be erected on a firm foundation, lest port before national representatives of lead­ nor the size of cities, nor the crops-no; but it sag and cause cracks to appear in the ing veteran, fraternal, and service organiza­ the kind of man the country turns out." walls, or even topple. It is impossible for tions in Washington, D. C. Accordingly, to counteract any landslide of a building to be constructed properly with­ Another outstanding contribution the Elks our civilization into materialism, we must out a plan. Regardless of the size of a have made to society is our interest in Amer­ give our attention not only to political, structure, good building material is needed. ican youth. Our order has noticeably in­ diplomatic, military, and economic en­ The foundation upon which this beautiful creased its sponsorship of youth programs in deavors, but we must also look with a large structure rests, the planning and material recent years. Every" major town in America and steady eye at ourselves and attempt to which has gone into it, represent these ideals has its youth problems. We must redouble add spiritual stature to our own society. of firmness, proper planning, and good ma­ our efforts and increase our program of The role that spiritu.al ideals have played in terial that are contained in our order. scholarships, leadership contests, Boy Scouts' our national life has filled volumes. Thirty­ We are happy and proud to have ar­ programs, athletic contests, playgrounds, five years ago Woodrow Wilson, in one of his rived at the completion of this structure. parks, swimming pools, and summer camps. last messages to the American people, said: Founded on charity, justice, brotherly love, Such activities are of great help and influ­ "Our civilization cannot survive materially and fidelity, we can have complete hope in ence if properly planned. We desire to unless it be redeemed spiritually." the fact it will fulfill its mission and assist reach all sort.s of children, to do more for These dedication ceremonies should in­ in spreading the ideals of Elkdom, that we the underprivileged child. clude a rededication of ourselves to the may remain free to continue the tasks which By proclamation of our Grand Exalted Christian ideals of human brotherhood for lie before us. May our ambitions for all Ruler, May 1 is designated as Elks national all in which our order so thoroughly believes. the great and good things which our order youth day. Every lodge is expected to spon­ Elks can continue to demonstrate to the represents be fulfilled within these walls. sor some particular event paying tribute to world the true principles of Christian broth­ A.s we dedicate this home, may we hope to the youth of our country "to demonstrate to erhood through our four great principles of be rededicated to the principles of our the world that we have a real interest in, charity, Justice, brotherly love, and fidelity. order-to the principles of America. and concern for, the welfare of our youth, We want our free America to continue as a and that we are proud of them." free Nation, but we should not forget that For many years our organization has been America will be no stronger, no more free concerned with improving our national than the people who are America. health. We have played an important part When an Elks lodge assumes the leader­ The Test of Real Leadership in the care for crippled children. Conva­ ship of any activity, bringing into play its lescent homes, diagnostic and rehabilitation organizational ability, enthusiasm, and EXTENSION OF REMARKS services for thousands have been provided. steadfastness of purposes, there is action: OF About 10 years ago the Elks began to real­ things happen, and another successful proj­ ize that the victims of cerebral palsy were ect results. That has been the case when­ HON. MICHAEL A. FEIGHAN not necessarily deficient in mentality and ever Elkdom has demonstrated its unwaver­ that they could be helped to live normal ing vigilance in preserving Americanism OF OHIO and useful lives through proper, intelligent against the encroachments of communism. IN THE HOUSE OF REPRESENTATIVES treatment. Little by little, subordinate The record of Soviet aggression has in it Tuesday, June 7, 1955 lodges, groups of lodges and States began to much of the quality of Aesop's fable of the take up this work. The trustees of the Elks wolf and the lamb who were standing in a Mr. FEIGHAN. Mr. Speaker, on June National Foundation became interested in shallow stream. The wolf complained that 5, 1955, it was my honor to address the this movement and played a part of strong the lamb was muddying the water the wolf commiss'ioning ceremonies of the Reserve leadership in the movement. Our national wished to drink. The lamb pointed out that Officers Training Corps at John Carroll foundation is constantly broadening its this could not be, for the wolf was upstream activities in the cerebral palsy treatment and the water flowed from him down to the University, Cleveland, Ohio. I chose as field. Up to July 1964, it has expended over lamb. "Anyway," said the wolf savagely, "I my subject for that address The Test of $100,000 to train doctors, teachers, nurses, heard that you told lies about me last Real Leadership. In that address, I have and other qualified persons in the treatment year." "How could that be," pleaded the suggested four basic objectives which of cerebral palsy. lamb, "since I wasn't born until this year?" should guide our preparation for, and Occasionally we meet someone who tries "Well, then," snarled the wolf, "it was some­ any participation in, a conference with to tell us that the Elks are nothing but a lot ·one in your family, anyway. But no matter the Russians looking forward to an of "good time Charlies" without serious who it was, I do not intend to be talked out thoughts in their heads. I would say they of my breakfast." And without further ado, easing of world tensions. I hope the are dead wrong. I doubt whether many so­ he leaped upon the lamb and devoured him. President and his advisers will give some cial or fraternal organizations in our Ameri­ The moral Aesop points out, is that the ty­ thought to my recommendations, be­ can communities could surpass our record rant can always find an excuse for his cause I sincerely believe they have a vital over the last 50 years. We have established tyranny. bearing on the future welfare and se- 1955 CONGRESSIONAL RECORD - HOUSE 7845 curity of the people of the United States. tion of war or peace. This is necessarily so manity which have been carried on under Under leave granted, I insert my address because informed leaders are the strongest the name of cold war. The long list of simi­ leaders as well as the most inspired type of lar crimes committed by the international in the RECORD: leaders. I would like, therefore, to discuss Communist conspiracy is almost endless and THE TEST OJ' REAL LEADERSHIP with you briefly what I consider to be some ever-increasing in its violence. (Address by Hon. MICHAEL A. FEIGHAN, Mem­ of the basic issues of our day having to do Against this background of criminal war­ ber of Congress, 20th Ohio District, at the with the question of peace or war. Follow­ fare being directed aga.inst all forms of commissioning ceremonies, Reserve Offi­ ing World War II all of us had hoped that civilization, the Kremlin recently called for cers' Training Corps, John Carroll Univer­ mankind would find the road to universal peaceful coexistence between the still free sity, June 5, 1955, Cleveland, Ohio) peace and freedom. That was the goal world and the world enslaved by the Russian I offer my hearty congratulations to each toward which we fought during World War Communists. The propaganda organs of the and every one of you who today has been II and it was only reasonable, with the mag­ Kremlin then began to blast out statements signally honored by being commissioned a nlftcent victory that was ours, that we could attributed to the leaders of the world Com­ Reserve officer in the Army of the United expect a rich reward for our great sacrifices. munist conspiracy to the effect that the time States. Consequently we rapidly turned our atten­ had come for a concentrated effort to ease This is a moment of great pride for all tion to peacetime pursuits and problems of world tensions. The pleas for peaceful co­ those who have played a part in helping you a purely domestic character but still finding existence by the Russians was quickly fol­ achieve this high honor. time to perform multiple errands of mercy lowed up by a propaganda and diplomatic of­ The officers on the faculty of the John in a world torn half apart by war. We en­ fensive on a worldwide basis. The clear Carroll University see in you well-trained visioned on the immediate horizon a golden objective of that propaganda and diplomatic leaders eminently qualified to carry out such era of peace, with freedom, as the heritage offensive is to split the political and military tasks as may be necessary to defend the for all men for all time. This state of mind, alliances of the free world, to neutralize security and welfare of the people of the in a large measure, took us into a deep slum­ Germany and Austria, thereby providing a United States. The good fathers and the ber out of which we have not as yet fully neutral belt between the Communist empire entire faculty of John Carroll University awakened. and the free world and finally to isolate the look upon you as men well grounded, not We, as a nation, were disturbed by the United States and the Western Hemisphere. only in the science of military tactics, but drums of war that were being thumped in In the face of this propaganda and diplo­ equally as well prepared with a philosophy every quarter of the world by the masters matic offensive engaged in by the Kremlin, of life which immediately gives you com­ of the Kremlin. Slowly we became aware of the Congress of the United States, through plete dedication to God and to country. the fact that a new and well organized tyrant the reports of the Select Committee To In­ For your parents this occasion is the climax was on the march. A new type of warfare vestigate Communist Aggression, has at­ to their hopes and prayers and sacrifices. was being waged against us and all other tempted to alert the people of the United They can take real comfort and satisfac­ free people. This new type of warfare was States to the true nature of communism and tion in knowing that you have had the best completely unlike the classical or orthodox the mea.ning of its current propaganda drive preparation available to anyone to meet the type which history records altogether too fre­ for peaceful coexistence with the free world. challenge of life as you must face it in the quently, but nevertheless we soon found it That committee, on which I had the honor days and years that lie ahead. to be total warfare, directed against the com­ to serve, recommended in January of this The Reserve officers movement in the plete destruction of the civilization of which year, that to meet this new propaganda chal­ United States has had a long and glorious we are a part. lenge by communism and to avert world war history. The first congressional stimulus There can be no doubt that the world of III, the Government of the United States to the Reserve officers program occurred dur­ our day is in a deep political crisis. Every engage in a. bold, positive political offensive. ing the Civil war. During World War I hamlet in every nation of the world-every That basic recommendation was supported and between the wars, it became, of neces­ man, woman, and child is involved. This is by 12 definitive recommendations which were sity, a fixed part of our national life. It not merely an economic crisis-that is only in the nature of concrete steps that should a pn.rt of the upheavel. This is not merely be taken to initiate such a political offensive. is no surprise, therefore, that during World a social crisis in the sense that we under­ war II more than 100,000 graduates of the These recommendations were arrived at after stand social values. That too, is only a hearing the direct testimony of over 300 eye Reserve Officers Training Corps program part of the crisis. This is not a military served in the Armed Forces in all ranks witnesses who themselves had been the crisis, because the use of military forces and victims of communism, and a.fter the study from second lieutenant to general. Without weapons in the orthOdox sense have been such advance preparation it would have been of thousands of sworn statements and all used to a minimum extent. I have called it available documentary evidence. Moreover, impossible for us to have put together so a political crisis because it affects every ele­ rapidly the mighty fighting machine re­ this was the work of a truly bipartisan com­ ment of society as we know it. mittee attested to by the fact that all 27 quired for us to meet the challenge of aggres­ Some people have called the crisis of our sive tyranny which brought about World of its reports were unanimous. Since that times a cold war. Almost all of us have come time, ma.ny prominent Americans have come war II. to realize that we were engaged in a new forward to urge the Government to take up The basic foundation and indeed justifi­ kind of war and cold war seemed like a cation for the Reserve Officers Training a political offensive against the conspiracy goOd description because it indicated the of communism. It is encouraging to see that Corps rests on the fact that we, as a Nation, absence of a shooting war. But, we have want to avoid a huge standing army with all there is an awakening to the fact that if we made a grave mistake in calling it a cold are to avert world war III and at the same the implications it has with respect to our war because the warfare being waged against time extend the cause of freedom and peace, family life, our educational system, the civilization as we know it is hotter than any training of our professional men and wom­ bold and resolute action is required. The war ever known to mankind. In this new record is clear that if we continue to engage en, and the development of careers in a type of warfare, more people have already in weak, half-hearted, fearful measures based free-enterprise system. Paired with this been tortured, maimed, imprisoned, and upon a. desire to placate the Russians, we are basic requirement is the realization that killed, than in any other war in history. As taking the course which inevitably leads to human freedom has been won by and will an example of my point, I would only cite war and possibly slavery for our people. be preserved only by men who are prepared these elementary facts to you. During the We are told of the likelihood of what one to fight to defend it. period of 1932 to 1933 the Russian Commu­ statesman of the free world has called a Con­ We Americans understand full well the nists starved to death by means of a man­ ference at the Summit. This, of course, im­ great sacrifices made in freedom's cause on made famine, over 5 million patriotic God plies a meeting of the leaders of the United our very land as well as the sacrifices we fearing Ukrainians. In the Soviet Union States, Great Britain, France, and the Soviet have made in all parts of the world to main­ alone there a.re over 15 million human beings Union. We are also told the primary objec­ tain it. We are aware that the tyrants down held in slave labor camps under the term tive of that conference is to find ways and through history have fought to destroy all political prisoners. In most of these prison means for easing world tensions and opening those things of the spirit which symbolize camps, the life span rarely exceeds a period the door to peace and freedom. You and I, freedom's cause and which we hold to be of 2 years. Millions of people have been because of our basic spiritual beliefs and our as dear as life itself. The Reserve Officers forcibly deported from their Communist oc­ faith in the free institutions as we know Corps has been a happy and safe answer to cupied homelands to the interior reaches of them here in America, must always seek with those basic requirements. Through that the Russian Federated Soviet Republic, fervor and determination the goal of peace, program we are assured of trained, alerted, bringing about the separation of husband justice, and freedom. But facing the facts as dedicated officers in all branches of the serv­ fron:.. wife and parents from children-few we know them to be, we realize that any lce who are real leaders of men. As leaders of whom wm ever be united, and stm fewer agreement entered into with the Russian of men, we know that in time of national will be returned united to their beloved Communists, whether it be on a bilateral emergency they quickly form the nucleus homelands. Entire nations have been de­ around which emerges a powerful fighting stroyed by this new type of warfare-nations basis or developed at an international con­ force competent to meet and destroy any such as the Crimean Tatars, the Chechen­ ference, it is not worth the paper it ls writ­ form of tyranny which challenges our na­ Inguish, and the Kalmucks. Yes, some of ten on. That is the irrefutable record which tional existence. these ancient non-Russian nations were de­ the Russian Communists have made for Being leaders of men, the Reserve Officers stroyed by the process of mass deportations themselves and it is a record which must, of Corps must at all times be well informed on carried out in a period of less than 48 hours. necessity, guide us in any discusisons we may all issues having to do with the basic ques- These are some of the crimes agalnst hu- have with them now or in the future. ,7846 CONGRESSIONAL RECORD - HOUSE June 7 Since we must arrive at all times for the The role of a leader in the affairs of nations vertising and related deceptive practices great goal of peace and avoid missing any op­ must not be guided by a desire to win the well over 100 complaints have been filed, portunity for winning it, it may be necessary popularity contest. Real leaders are seldom a number not exceeded in 10 years. This for our leaders in Washington to attend a popular, but real leaders are respected. That year also will be one of the greatest in conference with the Russians before this year inspiring lesson of history applies both to is out. If such a meeting does take place. nations cast in the role of leaders as well as history in the field of antimonopoly ac­ I believe that the guideposts to our partici­ those men cast in the role as spokesmen fo~ tions instituted. pation in such a conference must be those those nations. FTC has entered cease and desist or­ unalterable principles upon which our Na­ I have tried in these few minutes to pre­ ders in an equally large number of cases tion is founded. As a step in that direc­ sent to you some of the facts as I know this year, including more antimonopoly tion, I would commend the following to your them, so that you would be a better-informed orders than in any 1 of the 4 preceding attention as minimum goals we would seek in officer in the Reserve Corps of the Army of years. In addition, more civil penalty such a conference: the United States. I know that you have actions-for violation of existiag or­ First, we must regard such a conference as had the best possible training in military ders-are now pending trial in the Fed­ nothing more than an opportunity for us to science. I am also keenly aware that in pre­ spell out for the entire world what we stand paring you to meet all the trials of life, the eral courts than ever before. for and what we stand against. In this con­ good fathers at John Carroll University have Where inadvertent violations of law nection, we should make it clear that we left no stones unturned. It is now your re­ occur, the Commission has also secured stand for the rights of all nations, large and sponsibility to go forth in the world as a widespread compliance. For example. small, to national self-determination, and trained and responsible leader. I know that in the fiscal year 1955 FTC has already the natural rights of all people to the basic you will respond without hesitation to all approved 13 new or revised sets of trade freedoms. We should make it equally clear those demands that a leader in life must ex­ practice rules, each embracing an entire that we stand unqualifiedly against any pect. Remaining a well-informed leader will form of colonialism or imperialism and in make you not only a better man, but a better industry on a voluntary basis, a record particular, we will never acquiesce to the new citizen of our beloved country. unsurpassed in more than 20 years. Russian colonialism which is being carried My wishes for every success go to each and The people of my State have shared out under the camouflage of Communist im­ every one of you. the benefits of this outstanding record; perialism. it has taken on a real meaning to us. Second, as a logical followup to this first Businessmen of California have long condition, we must demand that the Com­ been plagued by the out-of-State poach­ munist-enslaved non-Russian nations be The Federal Trade Commi~sion er who manufactures goods elsewhere permitted to determine their own destiny and falsely labels them as being "made by the use of free elections, including mul­ tiple political parties, the secret ballot, to­ EXTENSION OF REMARKS in California" or deceptively marks gether with international supervision to OF styles or designs as having come from guard these basic requirements. If we fail within the State. So effective has the to do otherwise, the good people of Estonia, HON. GLENARD P. LIPSCOI\18 Commission been recently in stopping Latvia, Lithuania, Poland, Czechoslovakia, OF CALIFORNIA this unlawful practice that the Cali­ Hungary, Rumania, Bulgaria, Albania, IN THE HOUSE OF REPRESENTATIVES fornia Legislature passed a resolution, Ukraine Byelorussia, Georgia, Turkestan, which was filed with the California sec­ IdeJ-Ural, Armenia, Azerbaijan, Cossackia, Tuesday, June 7, 1955 and Russia will look upon any United States retary of state on May 2, 1955, as resolu­ participation in a conference at the so­ Mr. LIPSCOMB. Mr. Speaker, under tion chapter No. 135, congratulating the called summit as the failure of the last leave to extend my remarks in the Federal Trade Commission on its activi­ great hope of mankind and a sellout of all RECORD, I should like to direct the Mem­ ties. The resolution follows: those moral and political principles which bers' attention briefly to the recent Assembly Joint Resolution 21 the United States has stood for during the record of achievement of the Federal 179 years of our national existence. Joint resolution relative to the use of the Third, the Russians must agree to disman­ Trade Commission. word "Californ\a" on labels of garments tling and completely removing the Iron Cur­ Under the leadership of Chairman Ed­ manufactured by out-of-State garment tain which they have constructed from the ward F. Howrey, of Virginia, an out­ manufacturers Baltic Sea to the Pacific Ocean. They must standing lawyer, this small but active Whereas the Legislature of the State of remove the minefields, the barbed wire, the organization has since 1953 become one California, in 1953, by assembly joint resolu­ vicious dogs, the special squarts of machine­ of the most important agencies in Wash­ tion 5, requested that the Federal Trade gunners, and all other unnatural barriers ington. Life and vitality have been Commission investigate all instances of the which the Russians ha-ve concocted in order use o! the word "California" on labels by to divide the world into separate parts. The breathed into a heretofore almost mori­ firms in the apparel industry other than Russians must agree without reservation bund body. All of us who believe in fair, those who actually manufactured such ap­ that the Iron Curtain is the basic obstacle to vigorous, and effective law enforcement parel in California, and in the proper cases, true peace and freedom. should commend the present FTC. issue cease and desist orders; and Fourth, we must abide by the proven The administrative structure of the Whereas the Commission is to be com­ principle of open covenants openly arrived Commission has been reorganized, its mended for its prompt and vigorous action at. There can be no secret understandings procedures have been modernized and in this regard; and reached at such a conference. To insure strengthened, and, perhaps best of all, Whereas in the interest of a better in­ against this possibility, the administration formed public the Commission should pub­ should avoid being party to any joint com­ the element of delay in its work has been lish a report on such activities; and munique being issued from such a confer­ eliminated. Those who follow the Com­ Whereas since, however, there are still some ence because the constant Russian demand mission's work closely feel that its ac­ firms that are mislabeling their products in for unanimity would mean that any joint tivities reflect-now as never before-the an attempt to capitalize on the sales value communique would serve primarily the basic principles intended by Congress in of the word "California," the Commission Kremlin interests. President Eisenhower 1914 when it had before it the original should not relax its vigil: Now, therefore, be would be wise to issue his own communique, FTC legislation, proposed earlier by the it on a day-to-day basis, covering develop­ Republican Party and later agreed to by Resolved by the Assembly and the Senate ments and any successes or failures that of the State of California (jointly), That the might come out of such a conference. President Wilson. Legislature of the State of California does The proposecl conference at the summit, As Chairman Howrey has pointed out, hereby congratulate the Federal Trade Com­ if it takes place, will have much to do with the new FTC no longer believes in mission on its activities to date, urges it to the fundamental question of peace or war. wasting its energies on peripheral test publish a report of such activities, and fi­ All mankind will watch with keen interest cases of doubtful validity that in years nally, to continue unabated its good work;· the developments that come out of such a past consumed a substantial share of the and be it further conference. Those who are enslaved behind agency's appropriations and which often Resolved, That the chief clerk of the as­ tl:.e Iron curtain will be watching anxiously sembly is directed to transmit a copy of this to see whether we, as a nation, by act or required years to reach the Supreme resolution to the Federal Trade Commission. omission, confirm their enslavement. They Court; rather, FTC is giving timely at­ regard our beloved America as man's last tention to the predatory and fraudulent I feel the Congress of the United States great hope. All the people in the still-free practices that do damage to the fabric agrees with these sentiments of the legis­ world will watch this event with equal con­ of our free enterprise system, and it has lature of my State. cern. Our responsibilities are heavy. Con­ been effective in doing so. During the It should not be overlooked that two sequently we must stand resolutely by our present fiscal year, the Commission has former Members of this body have re­ principles whatever the transitory cost instituted more legal proceedings than cently joined Chairman Howrey as Fed­ may be. for many years. In the field of false ad- eral Trade Commissioners. All of us 1955 CONGRESSIONAL RECORD - HOUSE 7847 remember with pride John Gwynne, of see with me some o! its tremendous impli­ country's economy. As the Attorney Gen­ Iowa, and Robert Secrest, of Ohio. cations. eral himself said in a sharply critical report Greater competence aqd integrity could First, it authorizes the President to con­ on the potential effects of such agreements sult with representatives from various sec­ under the act: not be found, and President Eisenhower tors of the economy with the view toward "The use of voluntary agreements and pro­ is to be commended for his choice in each approval by the President of voluntary agree­ grams to carry out the mobilization pro­ instance. ments and programs to further the objectives gram may result in business enterprise, vig­ of the act. orously competitive in normal times, evolving Second, the act provides that- common courses of action to restrain pro­ Opposition to Antitrust Immunity for "No act or omission to act pursuant to duction, retard technical development, limit this act • • • if requested by the President expansion, reduce quality, and raise prices. Business Under Defense Production pursuant to a voluntary agreement or pro­ To the extent that the mobilization program Act gram approved under subsection (a) • • • requires joint action by businessmen, op­ shall be construed to be within the prohibi­ portunities are presented to work out restric­ tion of the antitrust laws or the Federal tive agreements either within or without the EXTENSION OF REMARKS Trade Commission Act of the United States." framework of a Government-sponsored pro­ OF What these and other provisions of sec­ gram. It is important that the public need tion 708 do, in effect, is to authorize the shall not become a cloak· for concerted action HON. EMANUEL CELLER President directly or his designate, who must undertaken privately to the public detri­ OF NEW YORK secure the approval of the Attorney Gen­ ment." I IN THE HOUSE OF REPRESENTATIVES eral after consultation with the Chairman emphasize to you again that the antitrust of the Federal Trade Commission, to exempt laws have formed the basic foundation of Tuesday, June 7, 1955 conduct in violation of the antitrust laws this country's e<:onomy since the Sherman from prosecution if such conduct is re­ Act was put on the books in 1890. Devia­ Mr. CELLER. Mr. Speaker, under quested in the interests of the defense pro­ tions therefrom, such as are proposed to be leave to ext.end my remarks, I insert gram. In other words, with no limitations continued in section 708, have been permit­ herewith the statement I made before as to the nature of the activity involved, ted only under the most serious national the Senate Committee on Banking and immunity from antitrust prosecution may be emergencies. The provisions of section 708, currency today in opposition to S. 2163 granted by this statute. This may be justi­ for examp~e, were enacted solely because of ands. 2165: fied in an all-out emergency. When the the grave situation confronting the Nation emergency is over, however, competition and as a result of the Korean conflict. As the Mr. Chairman and members of the subcom­ free enterprise should be encouraged, not distinguished chairman of the House Bank­ mittee, I am grateful for y·our kindness and lessened. ing and Currency Committee explained in the cooperation in scheduling my appearance I therefore believe this committee must report he submitted on behalf of the act: before this subcommittee. Members of the now seriously question whether there is any "The second fact is that in spite of these Banking and Currency Committees in both longer need for abandoning our traditional considerations we are at the moment faced Houses deserve the thanks and commenda­ antitrust policy in favor of concerted action with certain grim problems." tion of the people of this country for their among competitors and special treatment for Similar considerations motivated this com­ diligence and ability in presenting to the monopolies. mittee as explained in the committee report Congress proposed enactments deal~ng with We have, o! course, recognized that in accompanying the Defense Production Act our defense program which were models of times of dire emergency, certain exceptions of 1950: legislative draftsmanship. Mandatory con­ to our antitrust laws and free competition "The seriousness o! the situation which trol legislation is complicated at best, and must be made just as during such periods, was thrust not only upon the United States I believe considerable credit for the success­ certain exceptions to the personal liberty but upon the whole world as well when the ful transition of this country from a peace­ and freedom of individuals occur. To be per­ forces of communism were unleashed on the time to a mobilization economy and a sub­ fectly frank, as the price of survival, we had Republic of South Korea has impressed upon sequent return to more normal conditions no choice. Wartime, unfortunately, has every American the necessity and importance is due this committee, therefore been a catalyst which has stimu­ of taking prompt and vigorous action to meet The success · of the defense legislation lated the development of monopolies and the threat of Communist aggression." drafted by this committee has been attested retarded the growth of competition; it has Even in the period of crisis, however, I to by many eminent persons who have led to procurement policies favoring a few want to point out that no attempt was made pointed out that almost all of the controls select concerns with military and Govern­ to forsake utterly our reliance upon compe­ necessitated by the Korean conflict have now ment purchase orders while smaller firms tition and free enterprise. As this commit­ been removed. OPS, PAD, DPA, are now were literally driven to the wall. When my tee so forthrightly stated in its report accom­ buried with their brethren wartime Govern­ monopoly subcommittee studied the recent panying the Defense Production Act: ment agencies, with only their records in mobil1zation program, it found that 55 per­ "The situation (referring to the crisis) has the Archives remaining as epitaphs to their cent of the total volume of prime defense been the motivating factor in all the con­ eminent success. Thus, it was that your contracts had gone to just 100 large cor­ skierations of your committee in making an committee was able to state-and I think porations. A similar experience was had in effort to bring out a bill broad enough to give with some degree of satisfaction-that as of World war II when, between June 1940 and the Executive necessary powers to cope with 1953: September 1945, two-thirds of the prime con­ this critical situation, but not so broad as to "Very substantial expansion in the Na­ tracts awarded by the Government had been regiment the economy of our Nation to the tion's capacity for the production of goods placed with the top 100 corporations. Thus, extent that the fundamenal democratic prin­ and services since Korea has brought supply as Donald Nelson frankly confessed, during ciples of free enterprise are endangered." and demand in most segments of the econ­ wartime "business firms of subaverage size I submit to the committee that in view omy substantially into balance. That is why more often than not did get the dirty end of of the drastically changed conditions which it has been possible to decontrol prices and the stick." have obviated the need for mandatory ra­ wages and essentially limit the use of ma­ · Take the m·atter of allocation o! mate­ tioning of scarce materials, the control of terials controls to military production. That rials which are scarce. Small companies prices, and vast authority for supervising is why it has been possible to discontinue without historical positions with large sup­ agencies, there is no longer any need at all the general distribution of materials pliers or without integrated facilities of for continuing the immunity provisions ac­ throughout the civilian economy except for their own are unable to obtain raw or semi­ corded to businesses from prosecution under a few scarce and critical items essential to fabricated products and perish by the thou­ the antitrust laws. Indeed, the better argu­ defense." sands. Even today, as you know, small alu­ ment lies on behalf of removing these immu­ minum fabricators are finding it difficult to nities and encouraging more vigorous en­ It is just because of the successful progress obtain needed supplies from the large pro­ forcement of these statutes so as to promote made by this Nation under the statutes . ducers, such as Reynolds and Kaiser, not­ free and open competition. Yes; far from previously drafted and recommended by this withstanding the fact that these latter cor­ "encouraging the making • • • of volun­ committee that I today strongly urge upon porations have profited by millions of dol­ tary agreements and programs • • •" as you to allow another section of the Defense lars through Government tax-amortization advocated in the specific language of section Production Act to expire at this time accord­ programs and other assistance. 708, we should devote more of our attention ing to its terms. I refer specifically to sec- I need go no further to emphasize the fact toward discouraging such agreements and tion 708. · that the effects of monopoly are heightened other restrictions upon competition. Section 708, unfortunately, 1s not one of and the tempering effects of competition I have thus far limited my remarks to the better known and more widely discussed halted during emergency periods. But gen­ opposing the extension of section 708 for provisions o! your Act. lt is, however, in tlemen, isn't that all the more reason for another 2 years as is provided in S. 2163. I my consideration, one of the most significant removing monopoly restrictions and prevent­ would like to devote the remainder of my and far-reaching pieces of legislation now on ing further restraints of trade just as rapidly remarks to S. 2165, which would not only the statute books of the United States. I as we can upon the termination of a wartime extend the section of the act but would do not feel I exaggerate in this regard. Let crisis? make such far-reaching extensions in the me summarize, in brief, exactly what this These voluntary agreements provide a. voluntary agreement program as presently portion of the act permits, so that you will ready vehicle for serious restraints upon the established by statute so as to render the 7848 CONGRESSIONAL RECORD - HOUSE June 7 antitrust laws virtually useless in this area. divergent viewpoints on the Attorney Gen­ need for extension of the immunity provi­ of the economy for the next 20 years. eral's Committee resulted in bias 1n the sions of section 708? section 4 of this bill, S. 2165, would add committee's recommendations. It may be 4. What evidence did the Attorney Gen­ a new section to 708 as now constituted, that the Senate Banking and Currency Com­ eral's Committee have with respect to the which would enlarge the exemption provi­ mittee, before it acts upon recommendations need for extending these provisions beyond sion substantially. Under the law as it now attributed to the Attorney General's Com­ the expiration date of the Defense Produc­ stands, exemption from the antitrust laws mittee, may wish to investigate into whether tion Act? is given only for the period, and I quote, any particular interests would receive special 5. Has the President requested any volun­ "while this act is in effect." In other words, advantages from extension of the immunity tary program which required the participants all immunity will vanish should section 708 provisions of the Defense Production Act in to -commit large funds for long periods of be allowed to expire at the end of June of the manner recommended. time? What are they? Are any of these this year. If the act is extended for a 2- As you know, the Department of Justice programs now operative? Are any now pro­ year period, exemption for activities will be did not and does not endorse the recom­ posed? allowed until June 30, 1957-but no longer. mendations of the Attorney's General's Com­ 6. Does the Department of Justice review If you reads. 2165, however, you will see that mittee. The Attorney General himself has the activities of the participants in voluntary it empowers the President to continue any under study at the present time his com­ programs in order to ascertain whether the exemption already granted and approved for mittee's recommendations in order to as­ participants adhere to the terms of the pro­ a period as long as 20 years. And this im­ certain which he wishes to endorse. It gram? How current is the Department's re­ munity will stand, notwithstanding the fact therefore seems anomalous for the Defense view of existing approved programs? that Congress may have seen fit in the in­ Mobilizer, Mr. Flemming, to base proposed 7. What qualifications did the Attorney terim to let the act expire by its terms. In legislation upon these recommendations General's committee possess for evaluating other words, the immunity and exemption without any other economic or policy basis national security questions which justify the may be granted for a period of time in futuro therefor. authorization of immunity beyond the period although Congress may very well believe that On June 14, 1955, I requested the views of of the Defense Production Act? there no longer exists any need for the De­ the Department of Justice with respect to 8. Is there any evidence available any­ fense Production Act or section 708. s. 2163 and S. 2165 concerning extensions of where as to the need for continuing the im­ As Dr. Flemming, ODM Administrator, the immunity provisions of section 708. In munity provisions of the Defense Production testified yesterday, extension of the immu­ Assistant Attorney General Stanley N. Act? nity provisions of the Defense Production Barnes' response to my inquiry the Depart­ . 9. Is there any evidence available from any Act beyond the termination date of the act ment did not adopt the Attorney General's source indicating the need for giving 20-year was recommended by the Attorney General's Committee's recommendation. He empha­ immunities from antitrust prosecution? National Committee to Study the Antitrust sized that the Department of Justice takes no The amendment to S. 2165 suggested joint­ Laws. The Attorney General's national position at all with respect to either the ne­ ly by the Department of Justice and the Of­ committee indicated that such extension cessity for extending the antitrust immunity fice of Defense Mobilization, set forth on may be needed at least with respect to pro­ provisions of the Defense Production Act, or page 2 of Assistant Attorney General Barnes' grams for preserving the supply of critical for exempting from antitrust certain con­ letter to me, does not meet my criticisms. and strategic materials from abroad. It in­ duct beyond the termination of the De­ All that it accomplishes is to insure that the dicated extension also may be needed to pro­ fense Production Act. The position of the President's delegate, if one is appointed, will tect large-scale investments committed in Department of Justice seems to be that these get the approval of the Attorney General and such programs for long periods of time. problems rest upon national security con­ consult with the chairman of the Federal The House Antitrust Subcommittee, of siderations beyond the competence of the­ Trade Commission. The amendment still which I am chairman, in connection with Department of Justice to evaluate. Justice permits the President personally to authorize its recent exploratory hearings on current is concerned that the existing procedures voluntary programs and permits immunity to antitrust problems has investigated exten­ for granting antitrust immunity not be be granted for 20 years after the expiration sively the Attorney General's Committee and changed in such extension. Judge Barnes of the act with no standards, limitation, or the recommendations made by it. You said speci:flcally, and I quote: supervisory control. should recognize that the Attorney General's "S. 2165's declaration of policy, as well as · While Judge Barnes' statute, of course, ls Committee did not undertake to collect the necessity for amending its present anti­ to be preferred to the statute as now written, statistics or to assemble a body of factual trust exemption to effectuate defense aims, it nevertheless leaves unanswered the basic data with respect to the antitrust problems rests on national security considerations questions: on which its recommendations were based. beyond the competence of this Department 1. Is there any need for giving immunities? The Attorney General's National Committee to comment upon. Accordingly, I assume 2. Why must any 20-year exemption be primarily undertook to examine the existing Congress finds necessary extending present given? case law in the antitrust field and attempted law. In addition, I assume Congress con­ As I said before, I understand that the to enunciate a theory encompassing all past cludes that, to best effectuate defense Attorney General does not feel qualified to cases and statutory enactments in this field. policies, certain conduct be exempt from answer these questions. Ac<:ordingly, this committee should realize antitrust even beyond the Defense Produc­ The power accorded under this new section that the recommendation of the Attorney tion Act's proposed 2-year extension. My to exempt from the antitrust laws is a blank General's Committee with respect to the ad­ comments thus focus upon means for assur­ check delivered to the President to repeal the visab111ty or necessity for extending the im­ ing that in administering whatever exemp­ Sherman Act for any special or influential munity provisions of the Defense Production tion Congress deems necessary, antitrust con­ group for as much as 2 ·decades. If you Act are not based upon an examination into siderations are brought to bear in a forceful look carefully, you will see that the extension Government and business activities under and timely fashion. • • • What justifica­ may be made by the President or his delegate section 708. Nor were these recommenda­ tion is there for extending immunity under merely upon the formality of making certain tions based upon economic studies or secu­ the Defense Production Act longer than the findings which cannot be challenged any­ rity considerations upon which any justifica­ requirements of the Defense Production Act? where, either judicially, legislatively, or ex­ tion for authorizing immunities beyond the Justification for authorizing immunity ecutively. Nor need the President obtain the extension period of the Defense Production beyond extension of the Defense Production approval of the Attorney General or the Act must rest. Act must rest upon national security consid­ chairman of the Federal Trade Commission. Furthermore, in addition to having neither erations beyond the competence of this In fact, consultation with these expert agen­ the information nor the qualifications for Department to evaluate." cies is not even required under the bill as passing upon the factors involved in grant­ I wish to put this letter into your record presently written. ing immunities, under the Defense Produc­ at this point. I do not wish to belabor the point, Mr. tion Act, this Attorney General's Commit­ Accordingly, it would seem to me that be­ Chairman. But if you will ask yourself cer­ tee's recommendations suffered from other fore determining this question, it is incum­ tain questions, I am sure you will see with deficiencies. Our Antitrust Subcommittee bent upon your committee to examine me that this new section is fraught with has received considerable testimony bear­ thoroughly into the past operations of the serious implications to the very basic eco­ ing upon the objectivity of the Attorney Gen­ Government and activities of industry un­ nomic framework of this country. Who is eral's Committee's recommendations. Tes­ to supervise these agreements exempted from timony has been presented that of the 61 der section 708 programs. The answers to the antitrust laws during the 20-year period? members of the Attorney General's Com­ the following questions, among others, would How can anyone know if the activities of the mittee, 42 members were attorneys prac­ afford a basis for ascertaining whether in concerns involved will, with a 20-year mo­ ticing in the antitrust field primarily repre­ fact further extension of the immunity pro­ nopoly franchise, continue to "further the senting corporate defendants. Further half vision is necessary at the present time: objectives" of the Defense Production Act as of these practicing attorneys either personal­ 1. How many programs involving interna­ required by statute? Who will the President ly or through their law firms represented tional trade have been granted immunity un­ select to make the formal findings required defendants in antitrust cases instituted by der section 708? by the statute providing for 20-yea.r exemp­ the Department of Justice or the Federal 2. Are there any voluntary agreements now tions? Trade Commission which were pending at in operation or proposed concerned with I deplore wltn-esses who present a parade the time the committee prepared its report. stockpiling strategic raw materials? of horribles before a committee, Mr. Chair­ Witnesses before our subcommittee have 3. What evidence did the Attorney Gen­ man. But I must confess that if this new claimed that lack of fair representation for eral's Committee have with respect to the section is enacted, it would be well to estab- 1955 CONGRESSIONAL RECORD - SENATE ,7849 lish at the same time a new Cabinet post to let and how their companies may best and plans from the standpoint of their prac­ entitled Secretary of Monopolies who would proceed to obtain consideration. They also tical workability in every day industrial award 20-year monopoly franchises to well are in an excellent position to know what operation." deserving institutions with power, prestige, shortages are imminent and to advise their And, of course, that is exactly what this or a long history of contributions to cam­ companies on how best to proceed, either to legislation would approve of on a long-term paign funds. The power to grant monopolies, build up inventories against future short­ basis. gentlemen, was one of the evils of royalty ages, or to apply for early consideration for 2. Section 301 (d) of Order 10182 requires for which revolutions were fought in Britain. priorities. They can even advise them as that in obtaining woe·s, the administrator I trust you will not permit those who would to how to phrase their requests for priori­ or head of the hiring agency must certify seek special privileges to obtain this right in ties. In addition, such men are frequently that he has been unable to obtain a person the United States without even a struggle. close personal friends and social intimates of with the qualifications necessary for the Gentlemen, let me make my position on the dollar-a-year and woe men who do pass position on a full-time, salaried basis. Mr. this legislation clear. I believe that with upon the contracts in which their companies Chairman, it would be interesting indeed to the passing of the crisis that had actually are interested. see in how many instances even the slightest involved the United States in a shooting war, "These are only a few of the advantages attempt was made to find full-time Govern­ we are presently in a position to accomplish which large companies have obtained from ment employees before hiring a woe. Cer­ virtually all of our defense requirements the practice, and it should be especially tainly that can't be the policy now when a within the traditional framework of the anti­ noted that they are the very same ones preference has been expressed in the Busi­ trust laws. Free competition has provided which the small and intermediate business. ness and Defense Services Administration for the American people the wherewithal to men attempt to obtain by hiring people who hiring WOC's without thought to whether resist open aggression in the past, and, cer­ they believe have 'inside information' and there were qualified personnel on a paid basis tainly, wm continue to do so in the future. 'friends on the inside' who could assist them available. I want to add, nevertheless, that if you, in in obtaining favorable consideration of con­ 3. Section 301 (c) requires that in appoint­ your wisdom, see fit to extend the immunity tracts. Therefore, in a very real sense the ing woe·s for the head of the department provisions from the antitrust laws, they dollar-a-year and woe men can be termed to certify "That the appointee has the out­ should be carefully limited to terminate at 'lobbyists' • • •. standing experien-ce and ability required the end of the Defense Production Act. We "The committee ls opposed to a policy of by the position." If you examine how woe•s need no widespread monopoly licensing pro­ taking free services from persons with axes have been and are chosen in practice you visions which would grant a privileged few to grind, and the committee believes that will find that they are appointed not on the right to violate the antitrust laws for the Government should not continue to ac­ the basis of individual merit but on a com­ as much as two decades with no supervision cept the loan of dollar-a-year and woe men pany rotation basis. Large companies are or control. Immunity, if immunity there by companies with so large a stake in the requested-yea, urged, to send a man to must be, should be confined to the period defense program." Washington to staff the agency. The agen­ in which you extend the Defense Production Our experience with these woe•s in the cies get what the company can spare. As a. Act for all other purposes. And any exemp­ recent hot-war period of Korea has been no result, you will find that any number of tions from the act should be carefully re­ more successful. Mr. Fleming referred to the WOC's have been nothing but salesmen, stricted to matters coming within the aims, Executive orders of the President designed to with no particular skills to contribute that objectives, and purport of the basic statute. implement the woe provisions of the De­ could not have been found elsewhere. A number of WOC's have been so called "Wash­ woe PERSONNEL fense Production Act with respect to the use of woe·s. But these were blatantly ington representatives" of large and power­ Section 5 of S. 2165 provides for the estab­ and continue to be blatantly ignored. For ful concerns. And it would make a. most lishment of a reserve force of Woe's so that example: interesting study to learn how many WOC's they would be ready to take over top Gov­ 1. Section 102 (a) of Order 10182 provides once having worked in the Government ernment positions in the event of any emer. that as far as possible "operations under the thereafter remain in Washington to repre­ gency. I believe the committee should care­ act shall be carried on by full time, salaried sent their companies in Government trans­ fully study the background and need for employees of the Government." However, actions. such a provision before enacting any such Mr. Chairman, if you read the statements of In closing, Mr. Chairman, I want to leave provision. officials in setting up the Business and De­ with you for inclusion in your record, pp. Reference was made in your hearings yes­ fense Services Administration, you will find 78-91; and 97-98 of House Report No. 1217 of terday to our experience with these WOC's that there is expressed a preference and an the 82d Congress which has some valuable in­ during World War 11. I would therefore avowed policy of hiring woe•s notwithstand­ formation relating to the use of WOC's. respectfully call to your att-ention in this ing the availability of Government person­ This study was completed by a subcommittee connection the study of WOC's made by the nel on a paid basis. This policy was ex­ of which I was chairman. The committee Truman committee (S. Rept. No. 480, 77th pressed by Mr. Weeks in a speech describing concluded that: "the employment of WOC's Cong., 2d sess. (1942), pp. 7-10). In part, the aim of the new Business and Defense during the mobilization period should be this ls what the committee concluded-and Services Administration on June 9. 1953, as kept at a minimum." If this conclusion was I commend the report in full for your study: follows: true during a period of actual hostility, "Although the contracts obtained by the "We propose • • • (5) to establish ap­ how much more is it valid now during a companies loaning the service of dollar-a­ proximately 20 main industry divisions with period when there is no overt military action. year and woe men are not passed upon by key advisers, r~commended by various in­ For these reasons, Mr. Chairman, the the men so loaned, such companies do ob­ dustries to represent them, and staffed for committee should require Secretary Weeks tain very substantial benefits from the prac­ operation purposes by industrial experts from to furnish it a. list of all woe's with posi­ tice. The dollar-a-year and woe men so the career services, • • • the functions of tions they have oc-cupied in government and loaned spend a considerable portion of their the proposed business services agency will their corporate affiliations. I respectfully time during office hours in familiarizing be to. • • *(6) See to it that, while private urge a full and complete examination of the themselves with the defense program. They business, of course, cannot dictate Govern­ woe program before any such blanket re­ are, therefore, in a much better position than ment policy and plans, it be placed in a posi­ cruitment of persons representing private the ordinary man in the street to know what tion where it can effectively approve or dis­ interests for important government policy type of contracts the Government is about approve of the implementation of such policy provisions is undertaken by statute.

SENATE we come to Thee. But in the light of THE JOURNAL ,Thy presence we pour contempt on all On request of Mr. J oHNSON of Texas, our pride. As every ray of sunshine and by unanimous consent, the reading WEDNESDAY, JUNE 8, 1955 leads back to the sun, so, as we bow at of the Journal of the proceedings of The Chaplain, Rev. Frederick Brown this wayside shrine, teach our thoughts Tuesday, June 7, 1955, was dispensed Harris, D. D., offered the following to travel up the road of Thy benedictions with. prayer: to Thyself: "For every virtue we possess, MESSAGE FROM THE PRESIDENT Our Father God, help of the ages past, And every victory won, hope for the years to come: Thou God A message in writing from the Presi• And every thought of holiness, dent of the United States submitting of grace and glory, we would yield our Are Thine alone." flickering torch to the flame of Thy re• nominations was communicated to the deeming love. Closing for these dedi• We pray that Thou wilt make every Senate by Mr. Miller, one of his secre• cated moments the door upon the outer personal and national blessing a trans­ taries. world, with its shouting and its tumult, parent window in the temple of service, we know ourselves for what we are, petty, so that the effulgent light of Thy spirit EXECUTIVE MESSAGE REFERRED proud creatures who seek their own wills may shine through it in glory for human As in executive session, and whims in spite of the polished cour­ good. In the Redeemer's name we ask The VICE PRESIDENT laid before the tesies and noble professions with which it. Amen. Senate~ message from the President of