37480 EXTENSIONS OF REMARKS November 19, 1975 We can save a great deal in those the Budget Committee, the senior Sena­ . Upon the disposition of the congres­ amounts. But with such things as social tor from (Mr. MusKIE) and the sional budget resolution, the Senate will security, retirement programs, and pen­ distinguished ranking minority member take up the Interior appropriation bill, sions, we are not going to reduce those, of the committee, the senior Senator with a rollcall vote expected on final and I think we all recognize that. from Oklahoma (Mr. BELLMON). passage. Mr. DOMENICI. There may be some In the past year they have assembled The Senate conceivably could be in reform necessary, and that might occur, a truly excellent staff, and proved that session until a reasonably late hour to­ but I think my distinguished chairman is the complex provisions of the budget and morrow, with rollcall votes throughout. saying if the Budget Committee were to Impoundment Control Act of 1974 can put a figure in other than the real outlay in fact help to reassert the congressional expected for one of those programs we control over the Nation's purse that the RECESS UNTIL 8:45 A.M. would be fooling ourselves and we would Constitution provides. Mr. MUSKIE. Mr. President, if there be fooling the American people on the Over the past year I have often dis­ is nothing further that any Senator budget, because there is a legal entitle­ agreed with a majority of the committee wishes to say at this time, I move that ment that exists in the field on the part on specific issues. But I have been deeply the Senate do now recess until 8:45 a.m., of the American citizen unless Congress 1mpressed with the fairness with which tomorrow. changes the law. So I make that point. I all points of view have been treated. The motion was agreed to; and at 9: 04 think the chairman will agree with me For the first time we have looked at p.m. the Senate recessed until tomorrow, that we would be doing a useless act un­ Federal spending with all the relevant Thursday, November 20, 1975, at 8:45 less this Congress wanted to change some question before us-the overall state of a.m. of those laws, unless we put thos-e in en­ the economy, the import of the deficit titlement--entitlement being the legal on credit markets, the available revenue, CONFIRMATIONS right to receive on the part of the benefi­ the specific question of priority which ciaries-who are predominantly Ameri­ determine the allocation of available Executive nominations confirmed by cans who have received that right from funds. the Senate November 19, 1975: Congress in valid law. Is that not correct? And in future years, I am convinced DEPARTMENT OF STATE Mr. MUSKIE. That is correct, and let that this committee's usefulness to the Walter L. Cutler, of Maine, a Foreign Serv­ me give another perspective. The $72 bil­ Senate will grow-and stimulate a new ice officer of class 2, to be Ambassador Ex­ lion sounds like a lot of money for social and badly needed national debate on this traordinary and Plenipotentiary of the security, when one looks at the $72 bil­ Nation's priorities as we face the fourth United States of America to the Republic of lion, but the average payment to a bene­ Zaire. quarter of the 20th century. James W. Spain, of Florida, a Foreign ficiary is $7.50 per day. That is a little Service officer of class 1, to be Ambassador over $50 per week, which is well below the Extraordinary and Plenipotentiary of the poverty line in this country. So although PROGRAM United States of America to the United Re­ it is a large amount of money, when Mr. ROBERT C. BYRD. Mr. President, public of Tanzania. viewed in terms of its totality, in terms the Senate wiU convene at 8:45 a.m. Nathaniel Davis, of New Jersey, a Foreign of those who are dependent upon social tomorrow. There will be a brief period Service officer of the class of Career~ Minister, security to buy food, to pay rent, to pay to be Ambassador Extraordinary and Pleni­ for the transaction of routine morning potentiary of the United States of America their bare essentials, the average pay­ business until 9 a.m., at which time the to Switzerland. ment is well below the cost of living. Senate will go into closed session to dis­ Mary S. Olmsted, of Tennessee, a Foreign So we have to have those perspectives cuss the report on the special investiga­ Service officer of class 1, to be Ambassador as we talk about budget control, budget tion of the CIA. That closed session will Extraordinary and Plenipotentiary of the cutting, and budget balancing. There is a not exceed 4 hours. United States of America to Papua. New . human equation involved in all of these When the Senate resumes open session, Guinea. programs that Congress has to consider. the Senate will conduct further debate (The above nominations were approved Mr. MONDALE. Mr. President, I wish subject to the nominees' commitment to on the congressional budget resolution. respond to requests to appear and testify to express my appreciation for the fine Rollcall votes are expected thereon and before a duly constituted committee of the work of the distinguished chairman of on any amendments thereto. Senate.)

EXTENSIONS OF REMARKS

GOLDEN JUBIT..EE OF THE MEDICAL GOLDEN JUBILEE of the women of the world, even though they MISSION SISTERS 1975 has been a. very special year of cele­ had to personally sacrifice the privilege of bration for the 700 Medical Mission Sisters making public vows in the Church until all over the world. 50 years of living, grow­ Canon Law was changed in 1936 to permit HON. JOSHUA EILBERG ing, successes, fa.Hures, beginnings and ends women religious to practice surgery, medi­ OF have been poignantly remembered and, once cine and obstetrics. IN THE HOUSE OF REPRESENTATIVES again, gratefully appreciated. Memories of In the past 50 years the Medical Mission the early days and the constant support of Sisters have grown in their concern for the Tuesday, November 18, 1975 sacrificing friends have been and continue healing of persons and the advancement Mr. En.BERG. Mr. Speaker, the Medi­ to be re-lived and represented to the Father of women in the world. ThrQugh their pro­ for His blessing. And the reminiscences of fessional medical care, training schools and, cal Mission Sisters, which have their the m1111ons of patients and friends whose most recently, grassroots public health, com­ world headquarters in my district in lives we have shared around the world have munity development, nutrition education, northeast Philadelphia, will celebrate deeply enhanced our joy and gratitude dur­ family counseling and home-industry de­ their Golden Jubilee this year. ing this 50th Anniversary Year. velopment work in the villages, they have The Medical Mission Sisters are an It is perhaps coincidental, perhaps provi­ tried to meet head-on the many screaming, outstanding group of women who devote dential, that 1975 has also been celebrated glaring needs for healing that they have seen worldwide as the "Holy Year of Reconcilia­ and heard.· Yet, the Community is keenly their lives to helping persons in under­ tion and Renewal" and "International Wom­ aware that there is still so much to be done. developed and troubled areas. en's Year," for both he8J.ing, the full mean­ Thousands and thousands of men, women In the 50 years of their existence they ing of "reconciliation and renewal," and the and children still cry out for healing all over have established a record not only of cause of women have been central to the the world, persons not only weighed down service, but of bravery and devotion to Medical Mission Sisters' vocation since the by physical or mental disabllities but criti­ the people they have chosen to serve earliest days of the Society. It was the need cally broken by the oppressively unjust eco­ for healing of so many women of the East nomic and social systems operative ln our and they deserve our thanks and honor world today. In every corner of the globe for their work. tha,t first motivated Anna Dengel to begin her unique Community of religious women in there are also thousands of women who At this time I enter into the RECORD 1925. And it was this basic motivation of need to discover their worth as persons, their an article from their newsletter which healing that encouraged and challenged the value as intelligent, creative and responsible outlines the work of this fine organiza­ early members of the Society to dedicate human beings in the family setting, in the tion: themselves to the imperative medical needs local community and in society. November 19, 1975 EXTENSIONS OF REMARKS 37481

As we celebrate our 50 years of hea.llng muslim women and children, are tremendous­ Medical Mission Sister to go to India to service, the task looms as great as ever as ly overwhelming. She knew, too, that the work. The next year she was followed by Sis­ we more fully realize the height, depth, American women would be very challenged ter Agnes Marie Ulbrich, and soon there width and breadth of the need for healing by the need and hoped they would be gen­ were dozens of Medical Mission Sisters help­ of all persons and the special needs of wom­ erous in their response. ing to heal in the need areas of the world. en in our world today. And, with a full­ Anna contacted the newly formed Medical Right before her eyes Mother Anna Dengel hearted "Amen," a trusting "So be lt," we Mission Board in and through Dr. could see that her dream for a healing re­ recommit ourselves to this awesome service. Paluel J. Flagg, one of its founders, and ligious community of women was becoming The Golden Jubilee Year of the Medical Father John Considine of Maryknoll, she a reality. And always then, as now, she re­ Mission Sisters has been marked with many was put in touch with Father Michael A. minded her Sisters that their lives must ex­ moving reunions, but perhaps the most spe­ Mathis, C.S.C. The contact was to be a vital emplify the words of the Gospel: "So let cial was the one which took place ln Rome, one for it was with Father Mathis' direct your light shine before men so that they may Italy, in late September and early October help that the Medical Mission Sisters were see your good deeds and your Father of 1974. Here Mother Anna Dengel and five born. Father himself had sent four Catholic who is in heaven." of the early members of the Society met to day nurses to Dacca in 1924, but without the renew old friendships and to commemorate support of a community or a definite reli­ with joy and thanksgiving the gift of 50 gious motivation the experiment failed. ENERGY LEGISLATION years of healing service of the community When Father Mathis asked Anna Dengel what whose beginnings they had all shared. she thought would work, she replied em­ Sisters Laetitia Flieger, Agnes Marie phatically "a religious community." HON. G. WILLIAM WHITEHURST Doctor Joanna Lyons from Chicago was the Ulbrich, Helen Lalinsky, Margaret Mary Van OF Agtmael and Eleonore Lippits joined Mother first member to join Anna Dengel in her new Dengel for a month Of celebration and recol­ community. She arrived in Washington, D.C. IN THE HOUSE OF REPRESENTATIVES lection at the Community's Rome house. Two on September 8, 1925, having heard about Tuesday, November 18, 1975 very important persons from the Early Days the new venture in an article written by of the Society, however, were not able to be Anna Dengel in "Hospital Progress." After Mr. WHITEHURST. Mr. Speaker, I present. Dr. Joanna. Lyons who was Mother "checking it out" with her Jesuit brother want to insert in the CONGRESSIONAL Dengel's first companion, left the Society in and Archbishop Curley in Rome, Dr. Lyons RECORD a letter which I received from December, 1932 to enter the cloistered com­ closed up her house in Chicago, gathering Mr. Norman W. Horton, of Virginia munity of Franciscan Nun-Adorers of the up linens, blankets, a statue of St. Joseph Beach, Va., concerning the inclusion of Most Blessed Sacrament. Because of ill health and ~er small savings and headed for Wash­ stripper wells within the price control Mother Miriam, as she is now known, was ington. After a few days at a home for busi­ unable to travel to Rome from her convent nesswomen, she and Donn-a Dengel found a structure recently established by the in Euclid, . Father Michael Mathis of house at 1000 Newton Street and, although House-Senate conference committee on the Holy Cross Fathers was another very im­ it was totally empty, they moved in. the energy legislation. Mr. Horton per­ portant person in the history of the Medical On September 24, 1925, the two doctors suasively points out that the small pro­ Mission Sisters. As a young priest he was were joined by two nurses. Evelyn Flleger, ducers who operate stripper wells must responsible for the foundation of the Holy originally of Britain, had just graduated be allowed to receive the world price for Cross Foreign Mission Seminary ln Wash­ from Bellevue Hospital School of Nursing in their products to make it economically ington, D.C. known as "The Bengalese." Here New York. Even as a child she had wanted young Holy Cross seminarians destined for to be a Sister and in her teens she had de­ feasible to continue their efforts to .find the missions in Bengal were trained. Father cided she "was going to be a missionary, a new oil. I hope that all of my colleagues Mathis had also visited Dacca, East Pakistan nun, and a nurse doing nursing and not will read this letter and keep it in mind (now Bangladesh), and he was very moved anything else." After meeting Anna Dengel as they consider the energy legislation by the medical needs of the people there. in New York she decided that this new com­ which will soon come before the House: With his help and encouragement Mother munity was what she wanted. Marte Ulbrich VIRGINIA BEACH, VA., Dengel was able to recruit women interested had been working as a nurse in for November 14, 1975. in forming a religious community to respond several years when she heard about Anna Ron. G. WILLIAM WHITEHURST, to these healing needs in the East. Father Dengel's plan. Marte "had been wanting for Cannon House Office Building, Mathis had a great spiritual influence on the several years to be a rellgious but in the Washington, D.O. Community, passing on to its members his medical field, and in the field where there DEAR CONGRESSMAN WHITEHURST: It is with great interest in and for the liturgy. He were a lot of poor to be served." When Dr. amazement that I read in the Norfolk Vir­ died at Notre Dame, Indiana on March 10, .Dengel answered her letter of interest, Marie ginian-Pilot what Congress is proposing in 1960. Ulbrich wrote back: "Name the date and regard to rolling back oil prices. The part The following is excerpted from interviews l'll be there." of the bill that bothers me most is that about the Early Days made in Rome in Sep­ The official Opening Day of the Society ·•stripper" wells are not exempt from price tember and October of 1974. was set for September SO, 1925, and with controls. I own and operate several oil leases When asked what motivated her to found the help of many new and sacrificing friends in northeast Okla.homa and northern such a unique reltgious community of wom­ somehow the house was made liveable by on which all the wells are the "Stripper" en, Mother Dengel responds that the under­ then. Rt. Rev. Monsignor Cornelius F. class. A .. ~tripper" well, as you know, 1s one lying impetus really dates back to her Thomas, the representative of Archbishop that produces less than 10 barrels of oil youth-to the upbringing in her family, her Curley of Baltimore, gave the homily at the a day. There are many "Stripper" wells that schooling, her family's interest in the mis­ Opening Day Mass. It was a homily of great produces less than one barrel of oU a day but sions and also the atmosphere around her. impact and one the Sisters vividly remember the· cost of operating these wells is just us "When I was 15 or 16 I had the desire to to this day: "You four stick." much and often more than a well that become a religious and, so, I went to the The Early Days were fraught with new produces several hundred barrels. Reason, little Franciscan Church in Hall, Austria, adventures, whether they took the form of the large volume producers often :flow oil at and after confession I simply asked the studying missiology, Hindustani, Bengali and practically no cost and the "Stripper" well super-ior 'to what convent should I go?' And spiritual life at the Bengalese; gardening and must have expensive pumping equipment to I got a very good answer ... 'You should raising chickens; speaking in schools and maintain and operate. know yourself!' " Churches to make themselves known; choos­ In the last two years thousands of At about this time Anna Dengel heard of ing a simple garb to wear from a Butterick's "Stripper" wells that had been abandoned nr: Agnes McLaren's appeal for somebody pattern book; doing the laundry of priests !or years because they could not be operated who would study medicine to go to the mis­ and seminarians to financially keep their profitably have been cleaned out and sions. "It was a new idea," reflects Anna, heads above water; coping with local hobos equipped for productlon--e.t great expense. "and I had to go myself. And I must say, and bootleggers who'd camp out on their Most of this costly work has been done with I made my decision at once because it ap­ property or sincerely and simply trying to borrowed money expected to be paid off with pealed to my whole being. It appealed to learn how to pray and be religious women. oil to be sold at current prices. me because it was a work of charity. And the Although they could not be a "religious com­ It wiD be eevastating to litera.lly thou­ two things that appealed to me particularly, ·munity" until Rome lifted the ban on re­ sands of small on producers (myself in­ and deftnitey, were that it was a definite work ligious practicing surgery, medicine and ob­ cluded) if the "Stripper" producer is not . . . and the need was something very stetrics, they prayed for the day when Rome exempt in the Energy Bill. definite." would allow them to make public vows-an It ts to be noted that "Stripper" well · Anna Dengel didn't know anyone in Amer­ event which happily occurred in 1936. Ac­ production on which there was no price con­ ica when she came here in 1924 to try to cording to a priest friend in Rawalpindi, the trol had a large increase in 1974 and all interest women in her idea of forming a Medical Mission Sisters' positive influence other (controlled) oil production showed a reltgtous community dedicated to the care on the granting of Papal permission for re­ sharp decline. , of the sick. After four years of working alone ·ugtous to practice medicine was ''a Itfe•s It ts beyond my power to comprehend that as "the" doctor at St. Catherine's Hospital work alone," and 'a definite benefit to all Congress will penalize the domestic producer tn Rawalpindi, Paldstan, she knew that the religious communities in the Church. while oil is being imported from our need for health care, espeoially among the In 1926 Dr. Joanna Lyons became the first "Friendly" neighbors to the North and 37482 EXTENSIONS OF REMARKS November 19, 1975 South (Canada and Venezuela) a.t OPEC aspects of the reapplication--and that we bargo is described in a recent Wall Street prices. then decided there were no foreign policy Journal article by reporter Seth Lipsky It is because your colleagues in Congress objections to the issuance of these licenses. entitled "Many U.S. Executives in Asia would want this information to help them Q. That is correct. make this decision that this letter is written. A. The announcement came out Friday Urge Easing Ban on Dealing With Viet­ Sincerely yours, afternoon--on the new&-after the Secretary nam, Cambodia." A copy of that article, NORMAN W. HORTON. had met with the House Select Committee . as well as a recent Los Angeles Times on Missing in Action, which had an interest editorial entitled "A Silly War," also in this question. At that time, the Secretary follow my remarks. THE STATE DEPARTMENT AND informed the Select Committee of this deci­ The articles follow: THE VIETNAM EMBARGO sion which had been previously made. I think [Statement Provided to the Subcommittee the decision had been made the day before. on International Trade and Commerce, De­ Now, there had been other Congressional partment of State, Nov. 17, 1975] HON. JONATHAN B. BINGHAM interest in this question. In particular, the LICENSING OF ASSISTANCE TO VIETNAM OF NEW YORK Bingham Subcommittee of the House Inter­ national Relations Committee had held hear­ The American Friends Service Committee IN THE HOUSE OF REPRESENTATIVES ings on this and other issues. And these had resubmitted requests for Treasury li­ Tuesday, November 18, 1975 Congressional views--that is to say, those of censes for approval for export of fishnets, the Bingham Subcommittee, as well as those rototillers, and wood-screwmaking machines. Mr. BINGHAM. Mr. Speaker, last Fri­ of the Select Committee on MIA's-were In accordance with normal procedure, the day, November 14, Secretary of State obviously taken into consideration in mak­ Department of State was requested to advise Kissinger, in a closed meeting with the ing this decision. on the foreign policy aspects of the reappli­ members of the House Select Committee Q. Bob, you say on a case-by-case-basis cation. The Department has advised the on MIA's, told the committee that the these have been approved. Is there any other Treasury that under present circumstances, administration plans to license a broader case? in these specific cases, there were no foreign category of assistance to the people of A. Yes, there have been some other cases policy objections to the issuance of these li­ approved. I do not have any figures on it, but censes. Vietnam by private American church I know there have been other cases approved. This recommendation reflects conditions and humanitarian groups. Later the Q. Well, there's a report-! think in the prevailing at the present time and is thor­ same day, the American Friends Service Post-which said we're interested in making oughly consistent with the speech by Secre­ Committee was informed that its pend­ good-will gestures to the Vietnamese because tary of State Kissinger on June 18 at the ing license applications for private as­ they released nine American prisoners. Did Japan Society in which he said we would look sistance to Vietnam, some of which had this influence the Department's thinking? to the future in our relations with Vietnam been previously rejected by the State De­ A. Well, I think that description is a fair and that our policies would be influenced by way to describe our action. Vietnamese conduct toward their neighbors partment, now have the approval of the and their attitudes towards us. Department. The State Department statement, Mr. The recommendation to issue licenses for The Subcommittee on International Speaker, indicates that the State De­ the rototillers, wood-screwmaking machines, Trade and Commerce, which I have the partment will recommend to the Treas­ and fishnets takes into account the North honor to chair, held a hearing on the ury Department that licenses be granted Vietnamese release of nine American prison­ U.S. embargo against Vietnam yester­ for items the State Department regards ers who had been captured during the Spring day-the third hearing on this matter. 1975 offensive in the Central Highlands. The as "economic" rather than "humani­ Department remains concerned about the The State Department provided the sub­ tarian" assistance from private groups, approximately 50 Americans remaining in committee with a brief statement elab­ but that this broadening of assistance Saigon, many of whom we understand have orating on the "new policy" announced will be applied only on a case-by-case not yet been permitted to leave by the Viet­ by the Secretary with respect to private basis. namese. humanitarian assistance to Vietnam. In As I have said, State Department ap­ The Department of State will continue to the belief that this statement will be of proval of the American Friends Service examine applications for licenses on a case­ interest to many Members of the House Committe·e license requests is a welcome by-case basis, taking into account the nature development. But it represents no mean­ of the assistance, the current laws, regula­ who have become aware of this issue, I tions and policies, and the attitudes and ac­ submit the text of the statement to ap­ ingful change in State Department pr tions of the Vietnamese towards us and to­ pear in the RECORD following my re­ administration policy. A policy applied wards their neighbors. marks, along with press reports of the on a case-by-case- basis, involving no new license approvals. change in codified procedures or bind­ (From the Washington Post, Nov. 17, 1975) The subcommittee welcomes the action ing policy formulations, is no change in QUAKERS GET APPROVAL FOR VIETNAM Am taken by the Department on the Amer­ policy at all. A recommendation by the (By Marjorie Hyer) ican Friends Service Committee appli­ State Department to the Treasury De­ The American Friends Service Committee cations, and is gratified to note that the partment in response to particular de­ was notified over the weekend that the State Department was responding in part to velopments and conditions constitutes Department. in a policy reversal, has granted the actions and expressions of concern no basic change in the administration's the Quaker agency permission to send self­ by the subcommittee. That is confirmed approach to Vietnam. help supplies to Vietnam war victims. by the explanation given at the Monday, Witnesses representing the U.S. Cath­ Last Monday several hundered Quakers November 17, 1975, State Department olic Conference, the United Methodist and sympathizers demonstrated at the White Church, the U.S. Presbyterian Church House to protest the denial by the State De­ news briefing, from which I now read: partment of licenses to ship fish nets, small ExCERPTS FROM MONDAY, NOVEMBER 17, 1975 of the United States, and Clergy and agricultural equipment, wood screwmaking STATE DEPARTMENT PRESS, RADIO AND TELE­ Laity Concerned, uniformly endorsed machinery and acrylic yarn for making chil­ VISION NEWS BRIEFING congressional approval of H.R. 9503 and dren's sweaters. (Speaking for the Department: identical bills which would remove the Quaker officials had said they would break Robert Funseth) U.S. trade embargo on Vietnam as a first the law if necessary to carry out their pro­ Q. Has the Department reversed its policy step toward U.S.-Vietnam reconciliation. gram of aiding war-ravaged areas in North concerning shipment of humanitarian goods Only such a formal change in policy, they and South Vietnam. to Viet-Nam? argued, would provide full opportunity According to Rep. G. V. (Sonny) Mont­ A. No. We have not reversed our policy. for humanitarian groups freely to pro­ gomery (D-Miss.), of the House Select Com­ We have been approving, on a case-by-case mittee on Missing Persons in Southeast Asia, vide assistance to the people of Vietnam. the State Department has agreed to grant basis, applications for humanitarian aid to Mr. Speaker, other considerations sug­ Viet-Nam. church agencies licenses for "broad cate­ gest the need for removal of the U.S. gories of assistance" to Vietnam as a "good­ • • • • • trade embargo on Vietnam going beyond will gesture" in response to Hanoi's release A. So as not to confuse you, I assUlD.e that the very limited actions of the admin- last month of nine American prisoners. your question was prompted by the an­ istration in recent days. One of those The prisoners, most of whom are mission­ nouncement on Friday that the American considerations is the position of the aries, had been held since the fall of the Friends Committee has resubmitted its ap­ Thieu regime and the withdrawal of Ameri­ plication for some items to Viet-Nam which American business community-partic­ can forces from South Vietnam last spring. had previ~usly been turned d6wn-tha.t they ularly those American companies with The AFSC, an outspoken foe of the Viet­ had resubmitted their application to the investments in Vietnam. Growing sup­ nam war, carried out humanitarian aid pro­ Treasury Department--and, again, we had port among American companies doing gram in North and South Vietnam during been asked to advise on the foreign policy business in Asia for removal of the em- the hostilitie~, as did other church groups. November 19, 1975 EXTENSIONS OF REMARKS 37483 [From the New York Times, Nov. 15, 1975) Later today, Mr. Kissinger went to Capitol says: "We have learned from history that it UNITED STAT'BS READY To TALK WrrH Hill and defended the Administration's $4.7 doesn't pay to embargo." INDOCHINESE billion foreign aid request. He urged Con­ With surprising speed, the Communists gressmen not to cut funds from any nation themselves have been making it known they WASHINGTON, November 14.--Secretary of because it voted for the United Nations reso­ are willing-and apparently even eager-to State Henry A. Kissinger told a House com­ lution equating Zionism and racism. deal with Americans. They began sending out mittee today that the United States was now Several members of the House Appropria­ such signals less than a month after Saigon ready to open discussions with the Commu­ tions Subcommittee on Foreign Operations fell to the Communists April 30. The most nist nations of Southeast Asia concerning suggested that the Arab states, who spon­ important was an invitation, dispatched in the normalizing of relations. sored the anti-Zionist resolution, should be late May, to Bank of America's Asia rep­ Mr. Kissinger was speaking at a closed­ punished. resentative, Louis Saubolle. A French citizen door breakfast meeting at the State Depart­ with wide experience in Asia, Mr. Saubolle ment with members of a new committee set [From the Wall Street Journal, Nov. 13, 1975) went to Hanoi in July, traveling as an of­ up to deal with Americans missing in action ficial of his bank. He was the first official Ex­ in the Vietnam war. He said that he saw TRADING WITH INDOCHINA-MANY U.S. of a U.S. bank to go there in at least 22 years. "no obstacle to the principle of normaliza­ ECUTIVES IN ASIA URGE EASING BAN ON DEAL­ When he returned in mid-July, after a tion of relations and that the United States ING WITH VIETNAM, CAMBODIA week of meeting with North Vietnamese was also prepared to reciprocate on the basis (By Seth Lipsky) of gestures made by the Southeast Asian trade officials and others and of touring the nations." HoNG KoNG.-Only six months or so after Hanoi area, Mr. Saubolle gave an upbeat re­ This statement was made public with Mr. the Communist take-over of South Vietnam port. Although the Vietnamese were still Kissinger's authorization by Representative and Cambodia, a campaign is building among sorting out their development plans, he said G. V. Montgomery, Democrat of Mississippi, American businessmen in Asia for· an easing he saw a small but "very definite market" for the chairman of the group called the House of Washington's strict embargo against com­ goods from the outside. Select Committee on Missing Persons in mercial relations with the countries of In­ Vietnamese officials, Mr. Saubolle said, Southeast Asia. dochina. argued that the trade embargo wasn't effec­ When Communist forces took power in Opponents of the embargo are contending tive; they said they had obtained U.S. cotton Cambodia and South Vietnam last spring, that, since the war is over, trade sanctions from third parties. Mr. Saubolle also said he the Ford Administration adopted a wait-and­ in effect for years against North Vietnam­ understood that the North Vietnamese had see attitude toward future relations. Mr. and extended to South Vietnam and Cam­ been able to obtain U.S. pharmaceuticals. Kissinger said in May that American policy bodia when their governments fell-shouldn't Most important, Mr. Saubolle said, the Viet­ would be determined by the new regimes' be allowed to harden into a decades-long namese stressed repeatedly that they were actions toward the United States. freeze-out similar to the one the U.S. main­ willing to deal with American corporations Members of the House Committee, which tained against China until recently. Such a on a basis they considered to be "mutually hopes to meet with leaders in North Viet­ policy, they argue, not only would deny beneficial." nam and their representatives in Paris, told American companies access to potentially FURTHER SIGNALS Mr. Kissinger that they planned a wide-rang­ important markets in Indochina but could Since then, other signals have followed: ing discussion of issues, including the status damage U.S. economic relations in South­ An American who is an oil consultant has of the missing American and possible nor­ east Asia generally. been to Hanoi, presumably to explore the malization of relations. Their campaign is being spUITed by in­ question of what the Vietnamese want to do COMMUNIST VIEW UNKNOWN creasing signals from the Vietnamese Com­ about possible offshore oil. In broadcasts, munists thexnselves that they would like to the Communists have indicated they would The United States Government officially deal with American corporations and by a be willing to deal with major oil companies lists 820 Americans as missing in action in Indochina. In addition, 1,500 are counted concer~d drive by the Japanese to beat in the West, including u.s. firxns and those as dead but with whereabouts unknown. other trading powers to the Indochina that had been exploring oil and gas in South Mr. Kissinger, according to Mr. Mont­ market. Vietnamese offshore waters. gomery, gave "strong support to the com­ Last weekend in Seoul, South Korea, the Such explorations, by Mobil Oil Corp. and mittee's efforts to have discussions with rep­ Asia Pacific Council of American Chambers Shell Oil Co., were halted in early Aprtl, resentatives of North Vietnam-Cambodia" of Commerce called on the governments of shortly before Saigon fell. It was the impend­ and to inform them that the Administration the U.S., Vietnam and Cambodia to move, ing collapse of a hospitable government, not itself was ready in principle to talk. "on the basis of reciprocity," to "bring about geological conditions, that prompted Ameri­ It was not known, however, whether the a smooth and rapid development of trade." can on companies to halt their explorations. Communists would be willing to hold dis­ Some local American Chamber of Commerce By Aprtl, according to one well-placed oil­ cussions without having a prior American groups have been pushing even stronger posi­ xnan, the companies had found "traces" of oU commitment for aid. tions. And in coming months, businessmen but hadn't determined whether there were Mr. Kissinger told the committee mem­ opposing the embargo will probably step up commercial quantities. "Given the right con­ bers that the United States was making the their support for two bills in Congress­ ditions," this oilman said, "I think they'd llke "good-will gesture" of allowing church and one introduced only last week-that would to pick it up again." humanitarian groups in the United States lift the embargo against North and South Other signals have come from Commu­ to export more liberally to North and South Vietnam. nist ofiicials who have talked with several Vietnam than had been permitted since the A "SHAM ISSUE" Western newsmen visiting Vietnam since the Communist takeover in the south. It is too soon to tell whether the lobbying take-over. The officials have said they would This was being done, Mr. Kissinger said, effort cUITently under way will result in any be willing to do business with the Americans. because of the recent release of nine Ameri­ early changes in U.S. policy. But, baiTing an Aside from the Bank of America visit, cans who had been captured in South Viet- unexpected increase in interest in Congress, any contacts that have taken place with nam in March. . few Asians expect the administration to act American companies presumably have been Also, American officials said later, the on its own before next year's elections. The indirect. Because the embargo ls so strict, United States had noted the willingness of State Department is opposed to ending the some American executives are unwilling to the Communists to accept a ship carrying embargo, and this week, reinforcing that discuss the matter in detall. But the South 1,600 Vietnamese who wanted to return home stand. President Ford notified congressional Vietnamese apparently have indicated they after being refugees in Guam and elsewhere. leaders that the U.S. has removed Vietnam would like some companies that had opera­ Ever since they took power in Saigon the and Cambodia from the list of nations eligi· tions in the South to reopen there. And bank­ Communists have called for negotiations on ble for special tariff concessions. ers say that Vietnamese authorities cabled normalizing relations but have conditioned Some businessmen are also opposed to some U.S. banks inquiring about govern­ it on Washington's complying with terms of ending the embargo so soon after a bitter ment deposits frozen by the U.S. the 1973 cease-fire accord signed in Paris. war. And others downplay the importance of FREEZING BANK ACCOUNTS They have especially cited Article 21, which the issue. One observer calls it a "sham is­ However, there ls little American execu­ obliges the United States to act sympatheti­ sue." arguing that trade isn't likely to be tives can do but listen. On April 30, as Sai­ cally toward providing economic aid to North significant even if the embargo is ended. gon fell, Washington moved under the Trad­ Vietnam. Opponents of the embargo argue, how­ ing With the Enemy Act to freeze all South Mr. Kissinger told the House committee, ever, that past U.S. trade sanctions against Vietnamese bank accounts in U.S. institu­ according to several that the Administration Communist nations have gained little, if any­ tions at home and overseas and to freeze all did not envisage providing aid to Indochina thing for U.S. business interests. So they are Vietnamese accounts held in U.S. dollars at this point and that it was more realistic putting out cautious feelers, especially to­ anywhere. This action affected about $70 •to talk initially of normalizing travel and ward Vietnam, discussing the matter with ~ton. Most of this, the State Department trade and s1milar matters. He also said that while the United States U.S. diplomats and taking up the issue pub­ says, ls official funds, and most ls in the saw no reason not to norma.llze relations licly. U.S. Earlier, on April 17, as Phnom Penh with North Vietnam, this should not be done Says one member of the American Cham­ fell, Washington announced It was freezing on the basis of the Paris agreement. ber of Commerce in Hong Kong, describing Cambodian assets. Foreign bankers say that, Mr. Kissinger said that he regarded the the attitude of his colleagues; "We don't in practice, it is nearly impossible for the Parts accord as "dead" given Saigon's fall. want another Cuba." A business consultant U:S. to block South Vietnamese or Cam- 37484 EXTENSIONS OF REMARKS November 19, 1975 bodian U.S. dollar assets if they are held in to the continuing resolution now controlling States today is a complex one, and there non-American banks outside the U.S. foreign aid denies these n at ions offi cial Amer­ is no single, simple solution available to In mid-May, acting under the Export Ad­ ican aid and any American part of any in­ us. ministration Act of 1969, which allows the ternational aid progmm. Publication of the FBI report reminded use of export controls to further U.S. foreign But it is quite a different matter to use poUcy the adminlstration placed South Viet­ the authority of the Export Administration me of the contrast between the magni­ nam and Cambodia under its strictest limits Act to restrict what individual Americans tude of the law enforcement challenge -called Category Z. The combination of re­ and private American relief organizations today, and the situation which existed strictions-then already in effect generally may wish to do to extend a helping hand to 200 years or more ago. for North Vietnam and North Korea-:.made the peoples of Indoch ina. Last month, Mr. Ordway P. Burden, lt illeg~l for American businessmen to buy A reasonable caEe can be made to free.ze chairman of the Law Enforcement Com­ Vietnamese or Cambodian goods or to export the asset s of the three countries against po­ mittee of the National Society, Sons of their own products to those countries, even tential future claims. We do not challenge the American Revolution, and cha~r­ through a neutral middleman. (The ad.min­ the propriety of restricting t h e export of lstration, however, has allowed some ship­ strategic goods, although that can be ac­ man of the Hundred Clubs informa­ ments that it considers humanitarian.) complished under the "Y" category of the tional Council, delivered an interesting The reasons for the U.S. embargo are, of export law that already applies to China, address before the Thomas Jefferson course, political and have little to do with the SoViet Union and most of Eastern Chapter, Virginia Society, Sons of the the amount or kind of trade with Indochina. Europe. American Revolution, in Charlottesville, In the past five years. U.S. commercial ex­ There is no reasonable defense for re­ Va. ports that weren•t financed by the U.S. straints on nonstrategic exports, however. I believe this address is of particular Agency for International Development were The refusal of plows and fish nets for the all but nonexistent to Cambodia and ranged people of Indochina is a distortion of Ameri­ interest in this Bicentennial period, and between a paltry $30 million to $50 million can foreign-pollcy priorities and of the tradi­ I include the text at this time, as follows: for Vietnam. That figure was given before a tion of generosity based on need, not CoMMUNITY To CITY: AMERICAN LAw EN­ House panel in June by Robert H. Miller, ideology. FORCEMENT IN HISTORICAL PERSPECTIVE deputy assistant secretary of state for East (By Ordway P. Burden) Asian and Pacific affairs. "It is reasonable In colonial America law enforcement as we to assume," he said, "that even without con­ THE ALARMING NATIONAL CRIME now know it was largely a community respon­ trols, U.S. trade with South Vietnam would RATE sibility, undertaken by individual citizens be practically nil for the foreseeable fu­ by turns or as the need arose. Preserving ture." order in the boroughs and towns were mem­ Businessmen agree that trade wouldn't HON. J. KENNETH ROBINSON bers of the able bodied, free citizenry who be likely to leap to significant levels in the OF VIRGINYA rotated in the positions of constables and short term. But they aren't discounting the watchmen. The sheriff, principal keeper of possibility that Vietnam could become an IN THE HOUSE OF REPRESENTATIVES the peace for the county, was chosen from economic power to be reckoned with. There Tuesday, November 18, 1975 among wealthy landowners. are rich agricultural areas and timber .in the The American sheriff, like his English South and coal in the North. And there is the Mr. ROBINSON. Mr. Speaker, the an­ counterpart, could summon a posse comi­ possibility of offshore oil. Although some nual report of the FBI on Crime in the tatus, that is, raise a group of men to pursue others scoff, Bank of America's Mr. Sau­ United States, made public yesterday a criminal or suppress an insurrection. He bolle, who is among the most ardent propo­ was notable for its evidence of an alarm­ was chief administrator of the county courts nents of ending the embargo, argues that and supervised the impanelment of juries. As "before too long, Vietnam could emerge as ing nationwide increase in crimes, par­ ticularly by juveniles. a law enforcement officer, the colonial sheriff a serious competitor in the world export enjoyed far greater autonomy than the Eng­ market." Most disturbing of all the statistics in lishman, who was appointed by the king and this report, however, is the indication of subject to regular scrutiny by Parliament. [From the Los Angeles Times, Nov. 13, 1975) the degree to which the odds favor the It was Sheriff Nixon of Philadelphia who was A Sn.LY WAR perpetrator of a major crime. Accord­ the first to read the Declaration of Inde­ More than half a year has passed since the ing to the report, based on statistics pendence to the populace. This independence fall of Phnom Penh and Saigon, yet the furnished by local police authorities, an extended generally to other officers of local American government on occasion acts as 1t arrest was made in only one of each five government, the justices of the peace and the war were still being waged. cases of major crime in the United States jurors, and the propertied class from which A conspicuous silliness of America's policy in 1975. The FBI stated that nearly one­ they came. What direction Parliament and is its continued classification of North and the Crown gave to American affairs was on third of the arrests made across the the colonial level, leaving local government South Vietnam and Cambodia, along with country last year were of teenagers, al­ North Korea and Cuba, on the "Z" list of to develop more freely. the Export Administration Act. That means though this group comprises only 16 The communities which grew up on the that nothing may be sent them without a percent of the Nation's population, and Eastern seaboard in the seventeenth century license from the Treasury Department. half of all the persons arrested for bur­ were homogenous, religious societies which The Stwte Department has imposed its glaries, motor vehicle thefts and lar­ strove to suppress immoral as well as crimi­ own refinements on the licensing procedure, cenies were teenagers. nal behavior. On this side of the Atlantic, drawing a curious distinction between chari­ The total crime increase in 1 year was convictions for adultery, blasphemy, forni­ table humanitarian shipments----they are ap­ cation, swearing and profaning the Sabbath, 18 percent. More than 20,000 persons were frequent in the Southern colonies as proved-and economic assistance items-­ were the victims of , and prop­ they are not. well as the Puritan sections. In England The result is impressive: sweaters from the erty worth nearly $2.5 billion was stolen. prosecution was rare for these misdeeds. American Friends Service Committee receive The great majority of the criminals If it was easier to be convicted in the an export license. bUit not 16 tons of yarn. got away, with their criminal acts left colonies, the penalties were generally less Medical supplies, powdered milk, canned unpunished. severe. Whipping was reserved for the most pork, school supplies and pediatric drugs are Criminologists, sociologists and mem­ shameful offenses, and limited to 40 stripes, licensed. But not fishing nets, not rotary bers of other disciplines offer · various lenient by English standards. Certainly our tiller diesel plows, not the machinery to make reasons for this startling rise in crime. forefathers allowed room for improvement. prosthetic devices. Something on the order In Pennsylvania the most horrible punish­ Perhaps most of us have to accept some ment for adultery, 21 lashes, seven years in of $1 million 1n supplies from four organiza­ share of the blame by tolerating an over­ tions has been authorized for export this jail, and the imprinting of an "A" on the year. There 1s no accurate count of the value ly-permissive sooial order and excessive forehead, was for third convictions. The 40 of the exports denied. leniency by the courts. stripes administered for lying in the Massa­ Secretary of State Kissinger's purpose in Most of our young people do not de­ chusetts Colony were given only to eighth this policy is to see to it that China and the serve to be set apart for censure, but, too time offenders. Soviet Union bear the burden of putting Although treating moral offenses as crimes often, young criminals, guilty of killings, was a natural result o! the predominant in­ Indochina back together again. It was, he assaults, and other crimes of violence argues, their arms that fed the victory of the fluence of the church, it was also, in part, an· are 'excused from paying adult penalties economic necessity. Life in the early colonies Khmer Rouge, the North Vietnamese, the for adult offenses because of unduly VietCong. was hard, and sexual misbehavior could place Kissinger has the approval of Congress 1n liberal youth offender laws and judicial a strain on the community which was already keeping official American aid from the three policies. living near the edge of survival. In 1658 Mary­ nations. A special congressional amendment The crime problem in the United land's punishment for bastardy became more November 19, 19'75 EXTENSIONS OF REMARKS 37485 severe because of the increasing number of Following the Lon do:1 example, American American attempt to legislate morality. When servant girls who were becoming pregnant. cities in the mid-n ineteent h century founded an officer i.s directed to uphold the law to the In the eighteenth century, wh en life was a police departmen t s. First was New York, in letter, the public cries of anguish are long bit more comfortable, laws on adultery and 1844; then Chicago, 1851; Cincinnati and and loud. In Baltimore in 1919, for exam­ fornication were relaxed, with a view mainly New Orleans, 1852; Philadelph ia and , ple, the police were ordered to enforce the toward fixing responsibility for illegitimate 1854; Newark and Baltimore, 1857. Sunday laws. The result: 223 summonses, children. Like most institutional changes, the estab­ 113 persons taken into custody, including an In some instances hardship worked to in­ lishment of a professional police force was ice cream vendor, druggist, truck driver, crease freedom. In mid-seventeenth century not accompllshed by fiat, but by a series of baker and numerous shopkeepers. The order England many prisoners complained of long adaptatioi!-5 to changing social conditions. succeeded only 1.n undermining the hard­ confinement before trial. The Bay Colony, Boston in the 1820's was not experiencing won authority of the police in the com­ little able to afford any loss of manpower, in much serious crime, but incidents of drunk­ munity. 1648 set down strict laws governing incar­ eness and assault were emerging in the well­ Although the abolitioni.st forces dissipated ceration before trial. No one able to provide travelled sections of town, much to the dis­ with the Civll War, the confilct they rep­ bail was to be imprisoned unless the alleged tress of respectable citi.zens. The office of resented has remained the most difficult crime was capital or contempt in open court. constable was appointive, and paid, though problem the average pollceman must face. Through the time of the Revolutionary not well. Eighteen men served on night The phenomenal rate of increase in crime War, the agarian colonies in the south and watch, and hauled disorderly persons be­ in the last ten years may make us feel that mercantile societies in the north were able fore the justice of the peace the following our present predicament is unique, but it to police themselves by civillan effort. Large morning. None was stationed in South Bos­ has been delineated in the past. In 1936 scale uprisings, such as Bacon's Rebellion in ton, where there were no jails and the like­ August Vollmer, in The Police and Modern Virginia. and the mob violence at the time Uhood of attack while bringing the prisoner Society, reported an annual increase in crime of the Revolution, necessitated the use of the across the river was too great to risk. from 1916 to 1936, and noted there were militia, of course. But for the most part com­ In 1823, Mayor Josiah Quincy created the more crimes in one year in Chicago than in munities remained sufficiently small and uni­ post of Marshall of the City, a kind of super all the cities and counties of England and fied to maintain order by non-professional, constable who headed a department of in­ Wales. Some of the di.fferences he attributed unspecialized forces. ternal pollee and reported directly to the to a widespread contempt in this country for The movement from communal self-pro­ Mayor and Councll. The first to serve in this order and due process, a. carry-over from the tection to professional law enforcement was post was a Harvard graduate, Benjamin Pol­ frontier spirit. an urban development in the United States lard, who had at his disposal two deputies Another writer who in 1920 discussed the of the nineteenth century. And here, as with and a horse. During the period of the 1820's high rate of crime, Raymond B. Fosdick in colonial law, Americans constructed from the and early 1830's criminals posed a far lesser Crime in America and the Police, pointed out English model. threat to publlc welfare than poor sanitation that although foreign born and non-white II\ both England and colonial America and unsupervised traftlc in crowded streets. people committed proportionally more homi­ towns were patrolled at night by watchmen, So this first "pollee department" a.cted main­ cides than native-born whites, this was not whose duty was to look out for fire and ly as a Board of Health, handling fire in­ sufficient to explain America's lead. Native to be on guard for street disturbances. Origi­ spections, traffic control as well as issuing whites were still ahead of the Europeans. nally an office held in rotation by property summonses for misdemeanors. The complaint heard so much today that owners, in England, at least, it had degen­ The social conflicts of the next decade lent the judicial system is rigged in favor of the erated into a paid held by impecunious impetus to the movement for a standing cri.minal, that trivial clerical errors result in substitutes, frequen tly drunk or elderly. For professional force for dealing with civllian freedom for dangerous men, has its history, in eighteenth century London there was a crime. In 1835 an anti-Catholic burned a too. President W111ia.m Howard Taft was trend among the city's wealthy to move to convent to the ground, forcing the city fa­ known to have voiced his disapproval of thi.s the suburbs to escape the filth, noise and thers to allot an unprecedented $1,500 (nor­ practice. Fosdick in 1920 attributed the dis­ crime. mally a yearly expenditure) for special con­ mal state of cri.minal procedure to long These undesirable conditions were the re­ stables. delays and the uncertainty of punishment, sult of the early industrial revolution, or at The following year an attack on aboli­ abuse of the defendant right of not giving ~ least the enormous population boom which tionist Wllliam Lloyd Garrison required spe­ information against himself and the privi­ preceded it. London grew from approximately cial measures, and in 1837 there was the lege of jury challenge, ''badly chose person­ 500,000 in 1700, to more than one million Broad Street , which began as a colli­ nel on the bench", and the "unhealthy state in 1800, an increase which gave rise to entire sion between a company of volunteer fire­ of public opinion." Typically, he maintained, neighborhoods, who, through the combined men and an Irish procession. (Be­ Americans scream for justice when the crim­ forces of poverty and alcohol, could not police tween 1822 and 1846 the population of Bos­ inal is at large, but are only too quick to themselves, and were just those most in need ton grew from 49,000 to 120,000, due mainly find excuses and explanations for his con­ of policing. to the infiux of Irish immigrants). duct when the policeman's job is done. Watchmen and constables proved woefully The 184{)'s conttnued the class struggle in American law enforcement officers are, in­ inadequate to combat city crime. In 1776 the the city, with a temperance movement gain­ deed, hampered by public opinion as it is Lord Mayor of London was robbed at gun­ ing in strength, and an increasing Irish im­ represented, or misrepresented, on the bench. point, and within the following decade both migrant population which did not, in prac­ They must contend with the highest rate of the Prince of Wales and Duke of York were tice, certainly, share these views. In 1837 a violent crime in the developed world, and mugged. were not uncommon, and the Fifteen Gallon Law was enacted in Massa­ do it with highly decentralized pollee forces. brute force with which the military sup­ chusetts, restricting the sale of alcohol on Everyone becomes angry when pollee in a pressed them did little to improve the gov­ this quantity, and in effect, limiting the small town fall to apprehend burglars who ernment image in the darker parts of town. number of liquor licenses issued. One im­ stri.ke more than one, or whose victims have The Metropolitan Police of London were mediate result was a high turnover in the of­ seen, and can recognize them. But how many established i.n 1829, in the midst of a general fice of Marshall of the City, a job made dif­ people reflect upon the sheer impossib111ty reform movement. Under the direction of ficult in the face of limited prohtbition. of asking officers whos~ authority ends at the Home Secretary Robert Peel (the origin of the By the time Boston came to recognize a town li.mit, to track down criminals who can nickname "bobby"), the new force was or­ formal police department, constables who be in and out of the town in a matter of ganized as a group of professional eiv111ans, acted as pollee were earning $2 a day, about minutes? initially decked out in silk top hats, swallow twice the average for a laborer. In 1854 night It may be that American pollee forces are tail coats and white duck trousers, and armed watchmen were given warrants as policemen, on the threshold of a major reorganization, with only truncheons. All was to be expected, paid $2 a night as members of the "Watch that, Uke their predecessors of little more they were not greeted warmly in certain quar­ and Police Department". Police divisions than a century ago, they are lacking in ters. The first casualty was the same year, were created at this ti.me aJ.so. numbers and org~nization to handle the 1829, to a Constable Grantham, who was un­ When the first Bo!fton policeman, Daniel problems which beset them. Just as people fortunate enough to step between two Irish­ Estes, was murdered in 1848, police began to 150 years ago saw in the creation of a stand­ men quarreling over a woman. The three of arm themselves with guns, at first infor­ ing uniformed force, the spectre of military them turned on him, beating him to . mally. But with the coming of the Civll repression, most people today have a great Many people in London then thought he got War, mmtary trappings, guns and Uniforms. fear of centralizing law enforcement func­ what he deserved for interfering in other gained acceptance. tions. people's business. But affairs improved for The forces which were catalytic in the for­ Those of us who believe that the preserva­ mation of the Boston Police Department, re­ the British bobby, and in 150 years of service tion of law and order works to the benefit mained in somewhat altered form monumen­ only about 100 policemen have been mur­ of all know that some changes which cen­ tal problems for American law enforcement trallze functions while preserving local dered in the course of duty in England. In sad officers. The temperance movement of the autonomy are required. Crime is on the rise contrast, almost 1,000 United States law en­ middle of the century continued to plague in developing as well as developed, coun­ forcement officers have been slain in the last policemen with unenforceable laws, and 1s tries. To combat it we must support law en­ 10 years alone. in many ways typical of a long-standing forcement which ls stronger and more mobile 37486 EXTENSIONS OF REMARKS November 19, 1975 than the criminal element, but responsible to upon the counties all of the important should allow the act to die in 1976? Some men who write the laws, and sensitive to health and social services that are to be pro­ of our programs are too essential and too those who must obey them. vided for all county residents, such as the acceptable to be discontinued-but we do child care program, the mental health/men­ not have the resources to continue them tal retardation IM"ograms, the drug and alco­ without your help. , hol abuse programs, the public nursing home The return to the counties of a portion of programs, and various programs for the the income tax paid by county residents has PENNSYLVANIA COUNTIES URGE aging. become a way of llfe. Our citizens have been REENACTMENT OF REVENUE All are worthwhile programs--all are local tax dollars could not provide. SHARING needed programs. All require considerable lo­ Northampton County's projection of re­ cal matching funds, and in many counties all ceipts for the 5 year period January 1, 1972, of the new tax revenues generated from eco­ through December 31, 1976 1s $7,014,645. To HON. FRED B. ROONEY nomic growth must be used for these match­ this, interest earnings in the amount of OF PENNSYLVANIA ing requirements. $500,000 1s added, making available a 5 year IN THE HOUSE OF REPRESENTATIVES As a condition for receiving Federal aid total from revenue sharing of $7,514,645.00. under the medical assistance program in our Expenditures from January 1, 1972, to date Tuesday, November 18, 1975 county nursing homes, compliance with the have been made from the revenue sharing Mr ROONEY. Mr. Speaker, at lunch national life safety code was mandated. Since account as follows: the expensive and extensive alterations would Gracedale bond issue ______today members of the Pennsylvania con­ indirectly be a condition for receiving Fed­ $868,507 gressional delegation had the opportu­ eral aid, the costs of compliance alterations Lanta ------413,096 New administration bullding ___ _ 947,673 nity to meet with a delegation of the such as spr1nk11ng systems, etc. had to be New voting machines ______Pennsylvania State Association of financed with county funds and not with 513,200 Job classification and pay study __ 24,999 County Commissioners. general revenue sharing funds. Add to this Major equipment purchases ______the normal increased costs due to inflation 146,308 The purpose of the meeting was to dis­ C.P.A. auditing fees ______28,579 im­ and increased labor costs due to unioniza­ cuss Federal revenue sharing and its Reindexingdeeds ______dockets--recorder of _ portance to Pennsylvania's 67 counties. tion, and it is readily understandable why property tax rates have been steadily increas­ 40, 156 Participating from my congressional ing and why more counties, except for the Miscellaneous ------·-- 11,559 district were Martin J. Bechtel, chair­ revenue sharing funds, would have continued man of the Northampton County Com­ to postpone, year after year, the moderniza­ Total ------2,994,077 missioners and president of the Pennsyl­ tion or construction of sorely needed faclli­ In addition to these expenditures, rev­ vania State Association of County Com­ ties that would be for the betterment of enue sharing funds have been encumbered missioners; Commissioner George Stahl their citizens for years to come. Some coun­ as follows: ties have either reached the legal limitation of Lehigh County, and Richard Hell, Adml.ntstration bullding______$904,492 placed by the legislature on tax mlllages or Gracedale bond issue______chief clerk of the Northampton County are dangerously close to it. 470,000 Commissioners. Airport bond issue ______145,000 In these counties the bulk of the revenue Architectural fees-Gracedale___ _ Mr. Bechtel presented to the Pennsyl­ sharing funds is being used for their top 240,000 vania delegation a succinct report on the priority need--capital improvement programs Architectural fees-Administration impact of revenue sharing in our State that wm enable them to provide better pub­ Bullding ------66,000 and, on behalf of the State's counties, an lice service more efficiently. This leaves avallable $2,695,076 of revenue appeal for support of this important aid In those counties that did not need to sharing funds to be used to reduce the bond program's reenactment. His presentation undertake extensive capital improvement issue for the new administration bullding, programs, the commissioners have been able, which wm reduce interest payments over a also included data regarding Northamp­ with public awareness and input, to estab­ 20 or 25 year period. ton County's application of revenue lish prorities for programs or program im­ For all of the counties of Pennsylvania, sharing funds to local needs. Additional provements that could not be financed solely we respectfully seek your support for the material is attached outlining the uses from county funds. re-enactment of general revenue sharing. to which Lehigh County has applied its This list of prorities naturally varies in funds. our counties. Since the county is the most JULY 22, 1975. Mr. Speaker, Mr. Bechtel's statement important provider of social services for the GENERAL REVENUE, SHARING-LEHIGH COlTNTY underprivileged or aged, many commission­ is included in the REcORD at this point, ACTUAL USE REPORT ers initiated or improved those services which and I should like to invite my colleagues' again would not violate the prohibition General revenue sharing provides Federal attention to the compelling case for con­ against using revenue sharing money to gen­ funds directly to local and State governments tinuation of the revenue sharing pro­ erate additional Federal funds. your Government must publish this report gram offered by Pennsylvania county Pennsylvania counties, with the exception advising you how these funds have been used officials: of Philadelphia and Allegheny Counties, are or obligated during the year from July 1, not authorized to establish pollee depart­ 1974, thru June 30, 1975. This is to inform STATEMENT OF MARTIN J. BECHTEL, PRESIDENT, you of your government's priorities and to PENNSYLVANIA STATE ASSOCIATION OF ments, but some counties felt that they could improve the public safety by creating and encourage your participation in decisions COUNTY COMMISSIONERS on how future funds should be spent note: Honorable Members of the Congress: operating a county wide communication sys­ tem to serve all local police departments, any complaints of discrlmlnation in the use For all of the County Commlslsoners of of these funds may be sent to the Office of Pennsylvania, I would Uke to express our fire departments, and ambulance services. Certainly public safety has been enhanced Revenue Sharing, Washington, D.C. 20226. appreciation to you for giving us the oppor­ ACTUAL EXPENDITURES tunity to spend this time with you today. with these communication centers. As you know, representatives of county In some counties it has been determined Environmental protection, operating main­ government from all parts of the United that publlc transportation 1s a top priority, tenance, $536,096. States are here today to seek support for whlle in others recreation programs have Environmental protection, capital, $149,- re-enactment of the general revenue sharing been given priority treatment. Public li­ 348. • program by explaining to Members of the braries in many counties have been enabled Publlc transportation, operating mainten­ Congress the need for it in all the counties to provide county-wide availab111ty of their ance, $145,304. of ow- Nation. services with revenue sharing funds. Health, operating· maintenance, $199,135. The need for the continuation of the pro­ In many instances public interest groups Recreation, operating maintenance, $122,- gram 1s especially critical in Pennsylvania have provided county commissioners with 766. counties. The Pennsylvania legislature has vital information enabling them to put the Libraries, operating maintenance, $17,541. not expanded the taxing authorities of coun­ revenue sharing funds to the best use for Multipurpose and general government, ties in over 40 years. In this period the cities, the most people. capital, $240,000. · boroughs, townships, and school districts In summation, I might suggest that the Totals, capital, $389,348. have been authorized to levy many new State and local fiscal assistance act of 1972 Totals, qperating maintenance, $20,842. taxes such as the earned income tax, the has been landmark legislation as far as coun­ Nond1scr1mlnation requirements have been realty transfer tax, occupational tax, amuse­ ties are concerned. It has enabled the various met. ment tax, etc. The counties have only a four counties to do many things to enhance the NONDISCRIMINATION REQUIREMENTS HAVE BEEN mlll personal property tax, the real estate programs of public safety and health for MET tax with a twenty mlll 11m1t, and in the their residents. Certtftcation: I certify that I am the Chief smaller counties a $5 per capita tax. But re­ But we are worried. What will happen to Executive Otllcer and with respect to the en­ gardless of this imbalance. of taxing author­ the programs that we were able to initiate titlement funds reported hereon. I certify ity, the legislature continues to mandate with revenue sharing funds 1f the Congress that they have not been used 1n violation of N_ovember 19, 19'75 EXTENSIONS OF REMARKS 37487 either the priority expenditure requirement 1. Transit authority for purchase of buses. Who wlll come forward to lead a fight to (Section 103) or the matching funds pro­ C. Recreation. get our country back on the right road? hibition (Section 104) of the Act. 1. Land acquisition for Parks. Surely not those leeches in government who ERNIE G. STIEGLER, Chairman. ~. Renovation of Historical sites. have overspent and overspent and overspent! The Government of Lehigh County, has re­ D. Multipurpose and General Government. I am sending a copy of this letter to Rep­ ceived General Revenue Sharing payments 1. Payment of principal on bond issue for resentative Harold Ford, asking him to read totaling $1,446,631, during the period from capital improvements. it to his colleagues both on the Ways & July 1, 1974 thru June 30, 1975. II. Operating Maintenance: Means Committee and to the House of Rep­ Trust fund report: A. Environmental Protection. resentatives, as it wlll give them some idea, 1. Balance of June 30, 1974 $902,880. 1. Contribution to County Authority ( op­ at least, of exactly how one of their con­ 2. Revenue Sharing Funds Received from erate sewer and water services). stituents feels. And let me make it clear July 1, 1974 thru June 30, 1975 $1,446,631. B. Publlc Transportation. right now that this letter is not directed to­ 3. Interest Received or Credited (July 1, 1. Contribution towards operating expenses ward Rep. Ford personally. It is directed 1974 thru June 30, 1975) $107,381. of Transportation Authority (LANTA). solely toward those Congressmen who 4. Funds Released from Obligations $11,756. C. Health. haven't had the backbone to act decisively 5. Sum of lines 1, 2, 3, 4 $2,468,648. 1. Payments to local hospitals. to stop this wlld spending. Anybody With 6. Funds Returned to ORS none. 2. Payments to Homemaker services. any common sense at all knows that over­ 7. Total Funds Ava.ilable $2,468,648. D. Recreation. spending for so many, many years by the 8. Total Amount Expended (Sum of line 1. Tourist and Convention Bureau---cham­ Washington politicians has been the main 15, column B and column C) $1,410,190. ber of Commerce. and most direct cause of inflation! 9. Balance as of June 30, 1975 $1,058,458. 2. City of Allentown-Recreation Depart- Taxpayers, let's do something-and do it The news media have been advised that a ment. now! And 1! this be treason, let them make complete copy of this report has been pub- 8. Trexler-Lehlgh County Game Preserve. the most of it! lished in a local newspaper of general circu­ 4. Negro CUltural Center. Very truly yours, 5. Transfer to General Fund for operating Mas. R. A. INGRAM. lation. I have a copy of this report and rec­ expenses of Parks Department. ords documenting the contents. They are When I ran for Congress in 1974, I open for public scrutiny at Room 103, Court promised the people of Memphis that I House, Allentown, Penna. 18105 THE THOUGHTS OF MRS. R. A. would never vote to enrich myself at the INGRAM expense of the taxpayers. Both in the GENERAL REVENUE SHARING--LEHIGH CoUNTY Committee on Ways and Means and on ACTUAL USE REPORT the House floor, I intend to keep my word General revenue sharing provides federal HON. HAROLD E. FORD and I urge my colleagues to join me in funds directly to local and state govern­ 0:1' Tl!:NNESSB ments. Your government must publish thts this commitment. report advising you how these funds have IN THE HOUSE OF REPRESENTATIVES been used or obligated during the year from Wednesday, November 19, 1975 July 1, 1973, thru June SO, 1974. This is to inform you of your government's priorities Mr. FORD of Tennessee. Mr. Speaker, GASOLINE DEALERS PROTECTION and to encourage your participation in de­ I rise today to call the attention of my ACT OF 1975 cisions on how future funds should be spent. colleagues to a matter of great concern ACTUAL EXPENDITURES to me. I am speaking about a provision Environmental protection, capital, $68,851, of the "Tax Reform Act of 1975" which HON. JOHN J. RHODES operating/maintenance, $428,105. increases the income tax deduction for OF ARIZONA Public transportation, capital, $11,756, op­ the business expenses of Members of IN THE HOUSE OF REPRESENTATIVES erating/maintenance, $131,134. Congress while they are away from Health, operating/maintenance, $158,000. home. Wednesday, November 19, 1975 Recreation, capital, $416,892, operating/ The people of this country are out­ Mr. RHODES. Mr. Speaker, I am today maintenance, $127,825. introducing the "Gasoline Dealers Pro­ Multipurpose and general govt. capital, raged by this effort by the Members of $230,000. this Congress to give themselves another tection Act of 1975," which is aimed at Totals, capital, $727,449, operating/main­ pay hike. As an illustration of this in­ clarifying relationships between fran­ tenance, $845,065. dignation, I am inserting here a letter chised fuel dealers and the major oil NONDISCRIMINATION REQUIREMENTS HAVE BEEN that one of my constituents recently companies. MET wrote to the editor of the Memphis Retailing of gasoline and diesel fuels (E) Certification: I certify that I am the Commercial-Appeal newspaper: in the United States is a huge business. Chief Executive Officer and, With respect to LETTERS TO THE EDrroR, It has been estimated that, directly or the entitlement funds reported hereon, I THE COMMERCIAL APPEAL, indirectly, 1 of 7 jobs in this Nation certify that they have not been used in vio­ 495 Unton Avenue, Memphis, Tenn. depends on cars and trucks. Sales of lation of either the priority expenditure re­ The strike is the "in" thing today; so how motor fuels is a significant portJon of quirement (Section 103) or the matching about it, taxpayer? Let's go out on strike 1 this vital service to the American public. funds prohibition (Section 104) of the Act. The bunch in Washington recently voted The Arab oil embargo exacerbated a ------themselves, among other things, a 5% wage The Government of Lehigh County has increase and now the House Ways & Means situation that has been building for sev­ received General Revenue Sharing payments Committee has endorsed increases in certain eral years. It involves a termination of totaling $1,311,289, during the period from special tax deductions for Congressmen, such franchises by the large distributors, July 1, 1973, thru June 30, 1974. as a $44-per-day deduction while living in often under questionable justification. Trust fund report: Washington. It is very clear that they intend My bill would define the rights, both ( 1) Balance as of June 30, 1973, $1,076,979. to get all they can from the public trough of process and redress, for these ftan­ (2) Revenue Sharing Funds Received from before the whole country goes the way of chisers. They have put their money into July 1, 1973 through June 30, 1974, $1,311,289. New York City! a business operation. They receive the (3) Interest Earned, $87,126. So how about it, fellow taxpayers? The (4) Total Funds Available, $2,475,394. majority of us are middle-class with medium mutual benefits of name recognition, ( 5) Total Amount Expended, $1,572,514. incomes and we pay the largest share of national advertising, and a wide variety (6) Balance as of June 30, 1974, $902.880. income taxes. Let's show our spunk and do of automotive products to merchandise. The news media have been advised that a something about this mess we are ln. "Tax­ This combination of local initiative and complete copy of this report has been pub­ ation without representation" was the bat­ national marketing competence has lished in a local newspaper of general cir­ tle cry to our forefathers, and it should have given the driving public good service and culation. I have records documenting the the same meaning for us today! The public treasury is being emptied faster and faster the avafiabtllty of products that are contents of this report and they are open uniform in quality, and sold under brand for public scrutiny at ------. by those politicians who are supposed to represent our best interests but who, tn­ names they can identify. LEHYGB COUNTY ANALYSIS OF ACTUAL stead, are looking after themselves first; Of necessity, the large distributors ExPENDITtTilES playing politics, second (no matter which control a great deal of the franchise op­ party-and the country be damned); and, erations, to assure the kind of repre­ I. Capital Expenditures: third, buying votes by the thousands from A. Environmental Protection. the drones who contribute nothing to the sentation for their products commensu­ 1. Pre-treatment plant construction and economy of our country and who never had rate with the nationwide Image they major renovations. it so good. They are also continuing mas- create. Unfortunately, there has been a B. Publlc Transportation (LANTA). sive overseas give-away programs. tendency to summarily lift franchises, CXXI--2361-Pa.rt 29 37488 EXTENSIONS OF REMARKS November 19, 1975 without giving the businessman-investor appropriation for an additional 30 in­ those steps, such as earmarking, which adequate opportunity to demonstrate vestigative positions at HEW. I urge the will assure that all authorized funds are good faith, and without definite provi­ Senate to follow the leadership of Mr. actually allocated to Israel and not with­ sions for legal recourse after the fran­ FoUNTAIN in bringing some order out of held as leverage in further diplomatic chise had been canceled. the chaotic investigation procedures dealings. My bill would lay out the ground rules, presently employed by the Department of This is a time when all Americans are clarify the status of distributor-fran­ Health, Education, and Welfare. deeply concerned about the state of the chiser relationships, and provide injunc­ economy. It is tempting to say that we tive and civil action relief for franchisers ought to restrain our generosity to for­ who believe they are being unfairly eign nations when our domestic needs treated, contrary to the terms of their FOREIGN AID REQUEST are so great. Yet in the long run the franchise. FOR ISRAEL costs-human and fiscal-of a world less It is regrettable that the need for this stable would many times outweigh the legislation has arisen. But, I believe HON. JAMES G. O'HARA price of our foreign assistance activities. that since service stations are a nation­ An adequate aid package for Israel will wide business operation, necessary for OF prove a prudent investment in peace in the convenience of the American public, IN THE HOUSE OF REPRESENTATIVES the Middle East. we must act to define the legal status, Wednesday, November 19, 1975 and monitor the operations between re­ Mr. O'HARA. Mr. Speaker, the matter finer and retailer. I urge that early hear­ RESOLUTION CONDEMNING of foreign aid to Israel for fiscal year UNITED NATIONS ings be scheduled on this needed legisla­ 1976 is of far greater importance than tion. are most foreign aid decisions. At issue are not only the ordinary humanitarian HON. PIERRE S. (PETE) duPONT and political considerations. At issue also OF DELAWARE EFFECTIVE CONTROL OF FRAUD are the prospects for peace in the Mid­ IN THE HOUSE OF REPRESENTATIVES AND ABUSE IN THE DEPARTMENT dle East. Wednesday, November 19, 1975 OF HEALTH, EDUCATION, AND In a period when the United States has WELFARE suffered several setbacks in foreign pol­ Mr. DU PONT. Mr. Speaker, on No­ icy, one of our few and notable successes vember 10, 1975 the General Assembly HON. ROBERT W. KASTEN, JR. bas been our ability to bring about a step of the United Nations voted, contrary OF WISCONSIN toward peace between Israel and Egypt. to every principle on which the U.N. was IN THE HOUSE OF REPRESENTATIVES In large part we succeeded 1n this be­ founded, to equate Zionism with racism. cause of the flexibility shown by the Is­ Congress immediately reacted to this Wednesday, November 19, 1975 raelis. Israel took grave risks-weaken­ heinous action by unanimously approv­ Mr. KASTEN. Mr. Speaker, earlier this ing its defense lines and abandoning its ing Resolution 885, which sharply con­ year, the Subcommittee on Intergovern­ energy independence--in order to achieve demns the U.N. vote. mental Relations and Human Resources the recently signed interim Sinai Agree­ Congress has not been alone in de­ of the Committee on Government Opera­ ment. In doing so they placed far greater ploring the irresponsibility of the tions, on which I served, held a series of trust in the United States than nations United Nations in giving its official extensive hearings on the subject of are wont to place in other nations. It is sanction to anti-Semitism, however. In­ fraud and abuse review procedures of the both morally necessary and in our na­ dividuals, organizations, and govern­ Department of Health, Education, and tional interest for us to see that that ment bodies throughout the United Welfare. The results of the hearings were trust is justified. States have strongly denounced the U.N. appalling. Providing an adequate aid package to action. One of these government bodies, The Department of HEW has an an­ Israel for fiscal year 1976 is the first step I am proud to say, is the city council of nual budget of over $118 billion with a which we can take toward solidifying the Wilmington, Del. I insert for the RECORD, total staff of 119,000 employees. Despite progress represented by the Sinai Ac­ Mr. Speaker, a resolution condemning its enormous budget and its large labor cords. Our aid will serve two key pur­ the United Nations for characterizing force, the principal agency for investigat­ poses. First, it will enable Israel partially Zionism as a racist philosophy passed ing fraud and abuse--the Office of In­ to compensate for the sacrlfices and risks by the city council of Wilmington, Del., vestigations and Security-has only 10 entailed in the Sinai agreement. Israel on November 13, 1975: professional investigators on its entire will have to construct a new defense line RESOLUTION CONDEMNING THE UNITED NA­ staff. Only 5 of the Department's 10 and will have to purchase replacements TIONS FOR CHARACTERIZING ZIONISM AS A regionq.I offices have professional investi­ for the oil which it had been drilling at RACIST PHILOSOPHY gators assigned to them. Abu Rodeis. Second, it will enable Israel Whereas, the United Nations was estab­ The chairman of the Intergovern­ to maintain that military and economic lished in 1945 as a forum for the promotion mental Relations Subcommittee, our dis­ strength which serves as the most im­ of peace and understanding among the tinguished colleague from North Caro­ portant deterrent to further war in the peoples of the world; and Mideast. President Sadat of Egypt has Whereas, the United Nations has deviated lina

In October of that year the Mitchell broth· said "You better not interfere with our the "Arizona Republic." In hope that ers said they were visited by two men named bookings or you're going to get your legs Robert DeSalvo and James Bochis, who said broken." other communities throughout the coun­ that they wanted to obtain national distri­ Mr. Sumner declined to discuss the threat­ try might like to emulate this project, I bution rights to the film for one of their ening phone call in an interview, but he had insert the article by Thelma Heatwole companies, Gulf Distributors, based in Fort earlier told the police that he recognized the to be printed in the RECORD: Lauderdale, Fla. voice of the caller as that of a Robert Bern­ SUN CITY'S QUILTERS TACKLE PATRIOTIC TASX "He wanted to distribute our film, offering stein of Gulf Distributors, an associate of (By Thelma Heatwole) us a 50-50 split," said Arthur Mitchell, who Robert DeSalvo. Mr. Bernstein and Mr. De­ 1s 29. "We told him that we had already Salvo could not be reached for comment. SUN CITY .-Nimble fingers are at work here made distribution arrangements. They said Federal agents and pollee believe that Mr. fashioning a Bicentennial quilt, a project that if we didn't give them the film, pirated DeSalvo was working for Anthony and Joseph that has drawn the involvement of 110 Sun versions of it would be played around the Peraino, the Colombo family members, in pi­ City residents and an investment of 1,500 country in a week." rating and distributing ventures. The Peraino hours of work. "It's going to be the most fantastic quilt A BAD REPUTATION brothers have been involved in the produc­ tion and selling of obscene materials for ever made in Arizona," said Mrs. Viola Cody, "We turned them down," Mr. Mitchell the coordinator of the project. continued, "but a couple of weeks l!alter they many years, long before pornographic films became legal and fashionable. There are hundreds of work hours ahead. called back and made another e:trort. We The king-size quilt is double-faced with one turned them down again and a short time According to law-enforcement officials, it was Anthony Peraino who originally put up side featuring stars and stripes in red, white later pirated versions of the film started and blue. $25,000 to produce ."~eep Throat," the most playing in major cities all across the country. The other side has 63 squares depicting we obtained restraining orders, but before successful pornographic film of them all. Robert DeSalvo ultimately was given national activities and scenes in Sun City, including we could stop them they hurt us badly. They golfing, dancing, bicycling, churches, and wiped out several key markets for us: Miami, distribution rights for the film and an asso­ ciate of his said during a recent telephone desert vistas. Dallas, Las Vegas." Mrs. Cody originated ideas for the Sun He charged that the copies of the film dis­ interview, "Tony Peraino owns 'Deep Throat.'" City scenes and 13 artists, nine of them men, tributed by Gulf were not only pirated, but helped put the design together. also were of such poor quality that cus­ "Deep Throat" was made by an organiza­ tion called Gerard Damiano Productions, The quilt blocks have already been pieced tomers walked out "and our film got a bad or embroidered. reputation." owned originally by Louis Peraino, son of Anthony Peraino, and Gerard Damiano, who The big chore now is quilting, a task Mr. DeSalvo and Gulf Distributors also tackled by 21 quilters. The oldest is Mrs. wanted the distribution rights to the film directed the film. "Deep Throat" was filmed in Miami in January, 1972. When the cast Amelia Whlrledge, 80, who came here from "The Life and Times of Xaviera Hollander," Goshen Ind. and makes a hobby of quilting. but the world distribution rights had al­ and crew traveled to Miami, Althony J. Per­ aino, Louis' father and a Colombo family To get the chore done by an anticipated ready been assigned to a man named Robert Dec. 14 deadline, quilters work four hours Sumner. He began distributing the film on member traveled with them. When' the film was released and began to a day, six days a week. Fifty-seven seam­ Dec. 4, 1974, and sold righots for a five-week stresses have been involved in the project. engagement to five thea,ters in upstate New make money, Louts Peraino bought out the interest of Gerard Damiano for $25,000. The finished quilt will be placed in a frame York owned by Herbert Nitke, who had fi­ of Arizona-grown pine. nanced "The Devil in Miss Jones." When a reporter remarked to Mr. Damaino that he seemed to have received unfavorable The idea of the quilt began with Mrs. A few days later, Mr. Nitke informed Mr. Bobbe Roman, a Sun Bowl Plaza merchant. Sumner thalt the manager of his theater in terms in the deal, Mr. Damiano replied, "I can't talk about it." When the reporter per­ She placed a letter to the editor July 29 in Bu:tralo had disappeared with a copy of the the News Sun calling for quilting volunteers film. The manager, who wss known as Don sisted, Mr. Damaino said, "You want to get both my legs broken?" to lend their talents to a lasting memento Gaitano, had been recommended to Mr. of American Heritage and the project was Nitke for the job by Robert DeSalvo. Mr. Louis Peraino declined through his lawyer launched. Gaitano's real name, it turned out was to discuss the film, but he has previously justified the amount paid to Mr. Damiano by The Sun Bowl Plaza Merchants Association Phili.p Mainer, the man who later disap­ provided all materials for the quilt, includ­ peared in Youngstown, Ohio. saying, "he was compensated what he asked ing 300 square feet of Arizona cotton fabric, The involvement of Robert DeSalvo in the for-$25,000. He was even asked to stay. This thread, perle cotton and yarn. plra,ting of the film was demonstrated on was his decision." - The Bicentennial quilt is expected to be Dec. 12, 1974, when police raided a film­ Louis Peraino has used profits from "Deep presented to the Sun City people in a Jan. 14 processing laboratory at 533 West 47th Throat" to help establish a company called ceremony in the Sun Bowl. After being ex­ Street. In the lab they found a pirated print Bryanston Distributors which has become a hibited in Sun City, the quilt wm be ex­ of "The Life and Times of Xaviera Hollan­ major distributor of legitimate motion pic­ changed in exhibition for a new New York der" and an order for 103 more prints. The tures. Among the films the company has dis,: City Bicentennial quilt. order had been placed by Mr. DeSalvo's com­ tributed are Andy Warhol's "Frankenstein "It will never leave Sun City permanently," pany, Gulf Distributors. and "Dracula." "The Texas Chain Saw Mas­ said Mrs. Cody. "We hope someday it wll1 Mr. Sumner's problems in distributing sacre,'' and the new Frank Bakshi movie be in a museum here." "The Life and Times of Xaviera Hollan­ "Coonskin." Variety has estimated Bryan­ der" were only beginning. Shortly after the stan's gross income for last year as $20· theft, he said he received a call from Ernest mtiUon. Grecula, owner of the Art Cinema in Hart­ Louis Peraino is president of Bryanston and ford, Conn., who had bought the right to his brother Joseph is vice-president and sec­ OSHA NEEDS ALTERING show the film in his area. :Mr. Grecula com­ retary-treasurer. A spokesman for Louis Per­ plained that a competing theater nearby was aino insisted that either his father Anthony advertising the same film. nor his uncle Joseph is in any way involved with Bryanston. HON. JAMES M. COLLINS PmATED VERSIONS APPEARED OF TEXAS Mr. Sumner said he called the other IN THE HOUSE OF REPRESENTATIVES theater and was told by its owner that he Wednesday, November 19, 1975 had bought the film from Gulf Distributors. SUN CITY'S QU"ITJTERS TACKLE And when Mr. Grecula started advertising Mr. COLLINS of Texas. Mr. Speaker, the film for his own thea,ter, he said he be­ PATRIOTIC TASK gan receiving telephoned threats that his the Occupational Safety and Health Act theater would be bombed and he would be of 1970 is one of the most controversial hurt if he opened the movie. Mr. Grecula HON. SAM STEIGER laws now in effect. It has proven a dis­ decided not to run the film. OF ARIZONA astrous obstacle for American business, After the Hartford incident, pirated ver­ IN THE HOUSE OF REPRESENTATIVES in particular our small business concerns. sions of "The Life and Times" began appear­ Wednesday, November 19, 1975 For example, a survey conducted by Mc­ ing all over the country while theater owners Graw-Hill publications indicated that showing the authorized version received Mr. STEIGER of Arizona. Mr. Speaker, OSHA cost business $2.5 billion in 1973 threats similar to those which had frighten­ one of the most unique Bicentennial ed Mr. Grecula. and $3.1 billion in 1974. projects to come to my attention is un­ Some idea of the bureaucratic stu­ In an e:trort to stop the pirating, Mr. Sum­ der way in Sun City, Ariz., where more ner obtained injunctions against the unau­ pidity behind the OSHA regulations can thorized showing of the film. He then re­ than 100 citizens are involved in mak­ be gained from the experience of ceived a. telephone call from a. man who, ing a large Bicentennial quilt. "Blackie's Boatyard," in NewPOrt Beach, according to Mr. Sumner, identified himself The story of this patriotic community Calif. Here is the incident which ap­ as a Mr. Putro, a representative of Gulf, and endeavor was told in a feature article in peared in the May 1975 Reader's Digest: 37494 EXTENSIONS OF REMARKS November 19, 1975 Facing up to a possible $1,000 ftne, Ga­ population. This is consistent with national Moving now to specific actions being taken darian appeals to a Federal hearing exa.mlner. trends wherein population continues to be and to be taken to advance the local econ­ After Gadartan revealed that the water concentrated in greater and greater numbers omy, here is a synopsis: around his dock was only three feet deep and in metropolitan areas but at the same time Metro-while further delayed-ehould be­ consequently, did not require a ladder for is decentra.llzing (suburban1zing) within gin operating shortly. Projected to return rescue should someone fall off the low pier those major population centers. From 1973 three dollars for each dollar spent on its into the water, as the viotlm could stand up to 1974, the District's population declined construction, METRO will surely-whatever a.nd easlly climb back upon the pier, the ex­ by 9,000 persons and now totals approxi­ the benefit figures turn out to be-greatly aminer certified that Gadarian was innocent mately 723,000. But interestingly and sig­ enhance development potential, business of the charge. nificantly, during the same time period, the activity, and public tax revenues. number of households in the city rose by The Bicentennial-At the price of some 5,000 to a total of 277,000. It is this rise in inconvenience, congestion, and environ­ number of households and their generally mental dtificulties, the city should benefit to AN OVERVIEW OF THE ECONOMY upper income nature which provides cause a considerable extent economically from the OF THE DISTRICT OF COLUMBIA for judicious optimism regarding the city's additional millions of people coming to economic future. Average household income Washington in 1976. The magnitude of the in the District was $15,686 after taxes in benefits as well as of the difficulties relates HON. B. F. SISK 1974. This is more than 14% above the na­ closely to the quality of the preparations now tional average. underway, of course. OF CALIFORNIA Coupled with this is the beginning of a Pennsylvania Avenue Redevelopment-­ IN THE HOUSE OF REPRESENTATIVES trend back to the city and specifically back With the plan now approved by Congress and Wednesday, November 19, 197 5 to in and near downtown among predomi­ the White House apparently looking favor­ nantly young individuals and families plus ably upon the revitallzatlon proposals con­ Mr. SISK. Mr. Speaker, we have all so-called "empty nesters." The trend is tained in it, the District should enjoy an struggled with the question of how to aided, in part, by no-growth policies in the economic stimulus because of Pennsylvania revitalize our urban cities. The Federal suburbs and by the environmental and en­ Avenue redevelopment. Government has poured billions of dol­ ergy situation. The increase in the number Civic Center-With new awareness of the of households and the back-to-downtown need to identify and develop additional lars into the cities to arrest decay and movement create a base for the construction sources of revenue for the city, fresh interest deterioration. of new housing, rehab111tation of existing is being expressed in development of a civic Too often, however, we have failed in housing, improved business opportunities, center in Downtown. And the economic our efforts and urban cities become sores and greater tax revenues for the city. But spinoff will be substantial. The city's busi­ for which we believe there are no cures. these good things for the local economy are ness community has staunchly supported de­ The success or failure of our urban related to positive and prompt actions which velopment of a civic center as the single efforts depend in large measure, of must be taken by the District Government most important remaining publlc facillty course, on the attitudes of local business­ and others to strengthen the trends and needed to help spark the local economy and take full advantage of them. assist in Downtown revitalization. men and officials. For example, there is a need for an ap­ Let me summarize and emphasize. I was pleased, therefore, to have the proach to solving some of our financial prob­ Over the past two decades throughout the opportunity a few days ago to read a leiDS and municipal services on a metropoli­ United States, there has been increasing report on the economy of the District tan basis. One example could be a regional cooperation between the public and the pri­ of Columbia and, more importantly, on sales tax to help finance Metro. vate sectors in working to solve urban prob­ what can be done to revitalize the Na­ For example, long-range positive rather leiDS. In the older downtown of the District tion's Capital. than negative answers must be developed of Columbia between the White House and and used intelligently and intensively to in­ The Capitol, this has been exemplified by The report was written by Knox Ban­ crease and improve the housing supply. The the work of Downtown Progress and of other ner of the National Capital Downtown city's rent control regulations, its ban on business and civic organizations with all Committee. 'As a former chairman of a condominium conversion, and its intentions levels and branches of government here. subcommittee of the Committee on the to strictly control rehabilitation resale have Business leaders have contributed both time District of Columbia, 'I have known Knox produced a virtual end to new residential and supporting funds to these organizations for several years and have come to ad­ construction, and prospects for abandonment to help improve the economic vitality and mire his determination to make the Dis­ are increasing. The result is a growing hous­ the quality of life in this part of the District ing shortage at the very time that demand is of Columbia. trict a model city. mounting due to the growing number of Substantial progress has been made, but What is important about the report households and the back-to-the-city move­ much remains to be done. From the doldrums Knox wrote, I think, is that he and the ment. of the forties and fifties, the old downtown National Capital Downtown Committee There may be little question that these since 1960 has nearly a blllton dollars in acknowledge there are serious problems, latter negative actions on the part of the private and public development completed, but they have the will to overcome them. District Government have merit--at least underway, or scheduled to begin. This totals I believe it would be useful, therefore, on a short range basis--from a non-eco­ nearly 20 mllllon gross square feet. The new to have the study printed in the CoN­ nomic point of view, but in terms of eco­ opportunities afforded by HoJ;De Rule can nomics, they are largely self-defeating. The increase the effectiveness of this publlc­ GRESSIONAL RECORD SO that all my col­ physical, social, and economic health and private effort if both government and busi­ leagues may have the opportunity to vitality of the city are intertwined. There ness work even harder at it. review it: should be much cause for concern if a bal­ Business generally is re-examining its AN OVERVIEW OF THE ECONOMY OF THE anced approach considering economics is not role and its responsibilities, and the District DISTRICT OF COLUMBIA taken on a long range basts in dealing with of Columbia government is doing the same. As in all other cities in the nation, the housing and business enterprise. Together, we must achieve: District of Columbia and its people are ex­ A positive trend for the District which per­ A sound tax program. periencing economic dtificulties which stem tains to this overview is Washington's grow­ A balanced budget as responsive as possible from the probleiDS of the national economy. ing dominance as the center for association to local needs. Inflation and unemployment are major con­ activities ln the nation-Washington now Essential public services. cerns across the country. Washington has surpasses New York and Chicago. In 1972, Improved housing supply. felt the sting of inflation, particularly in approximately 40,000 persons were employed Increased employment and business oppor­ teriDS of the greater cost of housing. And in association work here with about three­ tunities. there is increased unemployment, especially fourths of these being located in the Dis­ An improved educational system at all among young blacks. But whlle these prob­ trict. Associations, along with professionals, levels. lems are a great concern to all, it must be account for much of the office space demand Safety and security in the street, home, noted that Washington has not experienced in the city. In turn, the creation of office and place of business. the same depth of dtificulties as most other space produces revenues for the District and Whlle these goals may be defined somewhat major central cities due largely to the in­ helps assure an increasing employee popu­ dlfferently depending on who is doing the sulated nature of the local economy, still lation which supports retail and service uses, defining, it seem.s to me that we need to be dominated as it 1s by governm.ent employ­ thus having a m.ultlpller effect. Various aware of a num.ber of potentia.l obstacles to ment. (Please note that this observation is sources on the subject of office space have achieving these goals, including: not very meaningful to the individual who 1s projected a short term excess o! office space For example, tax programs which tend to unemployed.) Many feel that the overall eco­ supply over demand, resulting in a higher drive out business rather than to attract nom.lc picture 1s not bright, despite the than norm.al vacancy rate for office space additional business which would bring in­ pronouncements by various national leaders. in the District of Columbia in the immediate creased revenues and increased employment; This affects all aspects of the local economy, future. While this is o! concern, a vacancy For example, the lack of positive encour­ of course, and it 1s not much comfort that rate of 8% or 9%-up from less than 2%­ agement of private development which will the depth of our difficulties is not so great is stlll favorable by comparison to other ma­ enhance the tax base; a.s in other major cities. jor cities. Again our insulated economy has For example, rent control and a freeze on The District of Columbia continues to lose come to our aid. condominium conversions which continue November 19, 1975 EXTENSIONS OF REMARKS 37495 past an emergency period during which posi­ New York's a.ttitudes had taken root in Buf­ further outwards, the price of land in tive rather than negative solutions should be falo that upstate city would long since have nearby rural areas becomes more pre­ developed; been a ward of the bankruptcy courts. cious and more expensive as speculators For example, a. crl.mlnal justice system The key point is that the fiscal prob­ try to determine where the sprawl will that falls to function more effectively 1n both preventive and rehabllitative aspects; lems of cities like Buffalo are not solely eventually lead. During the 1960's, it is For example, a publlc review process 1n the result of self-inflicted wounds like estimated, 2,000 acres a day were con­ which a vocal few can stop any develop­ municipal waste and extravagance. The verted from rural to suburban areas. ment--public or private--no matter how cities, for example, did not encourage While we are pouring billions into de­ useful it may be to achieving community middle class taxpayers to move to the veloping the infrastructure to sup­ goals. suburbs. Unwittingly perhaps, some well port suburban development--sewers­ We must overcome these obstacles. The intentioned Federal Government pro­ now 75 percent federally funded-roads, opportunities are here for accomplishment grams resulted in encouraging an exodus plazas, schools and hospitals-facilities and success by the combined effort of the public and private sectors to make a better to suburbia. Mobile, educated citizens in the cities often remain underutilized city for all of us. have taken advantage of the Federal in­ and funds are lacking for their moderni­ As the national economy improves, the centives which had led to suburban zation and improvement. District of Columbia.--we--all of us--must sprawl in the areas surrounding Buffalo Today, with energy at a premium and be ready to make the most of the opportu­ and,other major cities. environmental concerns at the forefront nities for our city. Take the GI bill for example. In Erie of policy decisions, we must recycle the County, which includes the city of Buf­ land and infrastructure already invested falo, there have been 66,348 such loans in our cities. Greater regionalization of totaling $701 million. While figures for services, where it will be more efficient, URBAN REVITALIZATION NEEDED the city of Buffalo alone have been avail­ must be considered. We cannot erect a able only for the last few years, they fence around the poor. We have subsi­ HON. HENRY J. NOWAK show that up to 80 percent of these loans dized the suburbs. Now, we must rein­ OF NEW YORK in a given year went to suburban bor­ vest in the cities. rowers. The environmental savings alone in IN THE HOUSE OF REPRESENTATIVES Compounding this suburban bias were rejuvenating our cities-using the streets Wednesday, November 19, 1975 reports that the Federal Housing Admin­ that are built, the utilities that are avail­ Mr. NOWAK. Mr. Speaker, in the area istration-FilA-at one time had a pol­ able-is greatly superior to the continued of Federal domestic policy, it is clear icy of redlining-refusing to approve high expenditure of Federal funds to en­ there are few problems today that are Federal loan guarantees-in certain ur­ courage sprawl. We must begin to take purely Federal or purely State or purely ban areas. greater advantage of the assets that al­ city. For instance, if the Congress gives a To get the middle class to their sub­ ready exist in our urban areas. tax cut to stimulate the economy and the urban homes, the Federal Highway Trust Economic development spearheaded States must then raise more revenue by Fund and various State user taxes were by a broadened Federal Economic Devel­ the use of the regressive property tax, funneled into road construction projects opment Administration-EDA-funding the purpose of the Congress is thwarted. that in effect further subsidized this sub­ concept is an essential element. Hence, when talking of urban prob­ urban flight. There is an antiurban bias We must also devise ways to make lems, all levels of government must be in this process also. For instance, in fis­ urban areas more attractive for private considered so what one is trying to ac­ cal year 1970 when the New York State investment. Our goal should be to make complish does not negate a goal of an­ gasoline tax counted more than $20 mil­ it as attractive for American corpora­ other. lion in receipts from Buffalo, the State tions to invest in Buffalo, for example, I am from the city of Buffalo, N.Y. In spent less than $640,000 for road con­ as our current tax laws make it attrac­ a sense, there are two Buffalo, New struction within Buffalo. tive for them to invest overseas. In this Yorks. One is the metropolitan area Long after the cities had borrowed vein, I have sponsored legislation aimed where more than a million persons live money to build sewers, the Federal Gov­ at providing one such incentive. My bill and work. This metropolitan Buffalo has ernment subsidized sewer construction, would increase the 10-percent business an expanding tax base and built a $20 again making the suburbs more attrac­ investment tax credit to 15 percent for million stadium while lowering taxes 3 tive. In Erie County, $240 million in fed­ investments in plant and equipment in of the last 4 years. The other Buffalo is erally funded sewer projects are under­ areas designated as economically needy the traditional area within the city lim­ way outside of Buffalo. by the Commerce Department. its, which is only a small part of metro­ Even legislative arenas have been un­ It is just not true, as has been said, politan Buffalo. In fact, the city ·limits fair to the cities. For years, cities ar­ that "real estate wears out." The cost of have not changed since 1854, approxi­ gued they were underrepresented in investing in new areas is so great that mately 50 years before the automobile. county, State, and Federal legislatures. economically and environmentally iti However, this area has a concentration The courts, however, took a dim view of makes better fiscal sense to go back to of tax-free government buildings, non­ the one man-one vote argument, until the cities. profit organizations, bankrupt railroad the population had already shifted to Promoting neighborhood revitalization properties, and the poor and elderly, who the suburbs. by tax credits for housing repairs and require a high level of public services. Our cities are a key part of our so­ modernization and devising ways to give Like many other cities, Buffalo has ciety, producers of a large portion of our banks incentives to approve home im­ been forced to curtail essential services, national wealth, buyers and consumers provement loans within urban areas reduce its municipal payroll, and delay of products and produce from nonurban would cost far less than continuing to needed community improvement proj­ areas. They are also the source of liveli­ invest in multimillion-dollar roads, ects. hood for many suburban residents. In sewers, and utilities farther and farther The reason is not that the city has Buffalo alone, an estimated 90,000 per­ from places of employment. We must been extravagant. In the case of the city sons daily commute into the city to work encourage balanced planned commu­ of Buffalo, the fiscal crisis can be traced and return to their suburban homes. Is nities within the cities, a balance of to the loss of a sizable portion of its mid­ it surprising then that Buffalo's popula­ commercial and residential construction dle-class tax-paying residents. Since tion has dropped by 100,000 since 1950? integrated, so business as well as in­ 1950, Buffalo's population has declined The programs that gave large impetus dividuals will have a stake in the com­ by 100,000. to suburban sprawl-the GI bill, re­ munity. That concept was very success­ Buffalo's austere approach to city strictive loan policies, the Highway Trust ful in the Allentown area of Buffalo. finance was attested to in an article in Fund, federally supported farm mechani­ We cannot tell the cities they must the Wall Street Journal on June 23, 1975, zation programs that forced rural resi­ fend for themselves, because other areas which said in part: dents to seek jobs in the cities-were not did not fend solely for themselves. The instituted to harm the cities. Yet, that 75 percent federally subsidized sewer In fact, it could be said that if Butlalo's approach had been applied to New York City has been the long-term impact. construction program and federally fi­ 10 years ago, that 1lletropol1s would now be Even food prices are adversely affected nanced roads that helped promote sub­ the darling of the credit markets, while if by suburban sprawl. As the suburbs move urban expansion compare with the cities' C:XXI--2362-Part 29 37496 EXTENSIONS OF REMARKS November 19, 1975 original sacrifices of building roads and ments made by USDA itself several years ago. Peterkin said that the new plan was tested sewers without outside help. "Many homemakers With llmited budgets do for about a week on seven welfare famllles, a The cities need and deserve help now. not have the skill or interest or equipment number she admits is inadequate. They were needed" to provide a family with nutri­ supplied With menus, recipes and food lists. We must take a long hard look at the tionally adequate meals. A member of Peterkin's staff discussed the problems confronting our urban areas The Thrifty Food Plan, an updated version plan with each family every day. Such moni­ now. Delay will only see matters worsen. of USDA's Economy Food Plan, actually toring by nutritionists is not available ordi­ The study process, however, should be requires less money than the earlier plan. narily to food-stamp recipients. At the same accelerated so that as soon as possible When the Economy Plan was devised, USDA time, Peterkin isn't "convinced menus and we can begin to implement solid initia­ did not envision it as a basis for food-stamp recipes are all that useful because no family tives to revitalize these areas, which are allotments because, the agency said: "It is is going to want to eat just the things we the core of our civilization. unlikely that families Will have good diets suggest." at the Economy Plan level." It is "for tem­ Beyond the faults which critics find with porary use when funds are low." the plan itself, Goodwin says: "If in fact you The Thrifty Plan, which is deficient in could get an adequate diet from the Thrifty iron for women of child-bearing age, teenage Plan, you don't get the necessary money to "THRIFTY FOOD" PLAN INADE­ girls and young children, uses less meat, buy it." QUATE TO THE NEEDS OF FOOD vegetables and fruit and more bread and Goodwin points out that: STAMP RECIPIENTS cereal products than the other three, more The food-stamp allotment is established costly plans devised by USDA nutritionists. every six months. The allotment for January For example, on the most expensive weekly through June, 1976, is based on food prices HON. SPARK M. MATSUNAGA food plan, an adult woman 1s allowed 6 as of July, 1975. Food costs have been rising OF HAWAn pounds of mealt, almost 3% pounds of citrus steadily since 1972, with only a few excep­ tions. As a result the allotment this January IN THE HOUSE OF REPRESENTATIVES fruits and tomatoes and slightly more than % pound of cereals. The Thrifty Plan allows will be based on prices already six months Wednesday, November 19, 1975 less than 2% pounds of meat, almost 2 old; by June there wlll be a 12-month lag. pounds of citrus fruits and tomatoes and Peterkin agrees that "this is a problem, Mr. MATSUNAGA. Mr. Speaker, on but changing the allotment more frequently September 19, 1975, the Department of almost 1 pound of cereals. Recently the courts have found that food is administratively difficult." Agriculture published proposed new reg­ stamp allotments based on the Economy Plan There is no allowance made for regional ulations for issuing food stamp coupon do not provide a "nutritionally adequate price differences. The allotment is based on allotments. (Federal Register• for Sep­ diet." Their decision was the result of a suit an average of food prices 1n 40 cities, but tember 19, 1975) The action was in re­ brought by a New York-based public interest Goodwin found that in 19 cities prices for sponse to a Court decision handed down, group, Food Research Action Center (FRAC). food were higher than the average. But FRAC is not satisfied with the Thrifty No allowance is made for the fact that June 12, 1975, Rodway versus U.S. De­ foo.d frequently costs more in the inner city partment of Agriculture. The Court or­ Plan as a basis for allotments, either. The organization's director, Ronald Pollack, has where many of the poor live. The allotments dered the Agriculture Department to fol­ called it "a subversion of the food stamp are based on supermarket prices. Often, inner low proper administrative procedure in program which calls for a nutritionally ade­ city residents cannot shop in supermarkets, issuing food stamp regulations which quate diet." He has charged that instead of but must shop 1n more expensive "mom and guarantee all recipients the opportunity determining a diet the poor reasonably could pop" stores. to purchase a nutritionally adequate diet. be expected to follow, USDA had to "make Peterkin acknowledges that USDA has "no USDA proposed three alternative pro­ sure the Thrifty Plan is no more expensive answers to many of these questions." than the Economy Plan, which is one hell of No allowance is made for meals outside posals, all of which are inadequate to the home, a fact which Goodwin finds par­ meet the needs of impoverished senior a way to determine an adequate diet!' Betty Peterkin, USDA nutritionist in ticularly harmful for the elderly because, she citizens as well as other needy food charge of devising the food plans, says the explained, eating at home alone "promotes stamp recipients. The reason for this revisions make it possible for food stamp loneliness and isolation." outrage is USDA's new "Thrifty Food recipients to eat properly. In 1969 she was Goodwin is also concerned because the Plan." The Thrifty Food Plan is not not as certain about the nutritional adequacy plan does not take into account ethnic, cul­ geared to provide recipients with a "nu­ of the lowest-cost food plan. At the time she tural, social and religious differences which tritionally adequate diet." It is based on recommended the plan which allows 20 per affect peoples' food choices. "Food " she said cent more money than the Economy Plan "is supposed to be a pleasurable ~xperience: food consumption data derived from a but the homogenized Thrifty Plan robs the is because, she said. "Only one in 10 (persons) survey that is almost 10 years old; it had an adequate diet on the Economy Plan." poor of this pleasure, one of the few pleas­ premised on the amount of money cer­ According to USDA's 1965-66 Household ures they have." tain households actually spend for food, Consumption Survey, on which the Thrifty The biggest problem, she said, "is that not on the amount needed or adequate Plan is based, less than 10 per cent of the people are people. They are not test tubes, nutrition; and it does not consider vari­ people eating at the cost of the Economy they are not in cages where they can be fed ations in regional food costs or variations Plan had a proper diet. what they are supposed to eat." In addition, major shifts in eating patterns USDA is required to consider all the com­ in the individual health of the food ments which they receive and devise a plan stamp participant. have not been taken into account in the revised plan. Peterkin said it was impossible which resolves significant problems and crit­ At this point, I insert an article by to do because there is no data available. icisms. If they are not resolved to FRAC's Marian Burros from the Washington Knauer wrote to the agency: "It is our satisfaction, the organization wlll take USDA Post: which presents an in-depth exami­ contention that there have been significant to court again. nation of the Thrifty Food Plan: Living changes in American food buying patterns in on Food Stamps a Losing Battle-Wash­ the last decade, particularly by those with ington Post, Thursday, November 13, very low incomes as a result of economic 1975. necessity." For example, 1972-73 data reveal THE CITY OF COMMERCE HONORS that there has been at least a 15 per cent STEPHEN S. FILIPAN LiviNG ON FOOD STAMPS: A LOSING BATTLE shift in purchasing habits for several major (By Marian Burros) food categories purchased by lower-income Critics of the Agriculture Department's consumers since their last survey in 1961-62." HON. GEORGE E. DANIELSON Thrifty Food Plan, the plan which deter­ According to Mary Goodwin, a nutritionist OF CALIFORNIA mines food stamp allotments, say the human with the Montgomery County Health Depart­ IN THE HOUSE OF REPRESENTATIVES equation was never factored into it. ment: "The Thrifty Food Plan also assumes President Ford's Consumer Advisor, Vir­ that people are going to know what to buy. Wednesday, November 19, 1975 ginia Knauer, brought this deficiency to Yet there is no money in the food stamp pro­ USDA's attention in a letter dated Oct. 10: gram for nutrition education. How are they Mr. DANIELSON. Mr. Speaker, on "It may be possible to achieve a nutritionally going to know what is nutritious to buy," June 2, 1975, the City of Commerce re­ adequate diet at the food spending levels of she said, "when USDA promotes the idea that named a road Stevens Place in honor of the Thrifty Food Plan if one is a nutritionist 'all food is good food.' " one of my constituents, Stephen s. Fili­ or home economist, but it 1s unrealistic to Goodwin says the Thrifty plan makes as­ pan. This tribute was well deserved by a assume the 'poorest of the poor' will be able sumptions which are unrealistic: in addi t1on man who has unselfishly served the busi­ to lacking shopping skills needed to make to do so. ness and residential community of Com­ "We question the assumption inherent in it work, the poor don't necessarily have ade­ the Thrifty Food Plan of 'average' home­ quate refrigeration or storage facUlties, or merce. The Stevens Restaurant has been maker skill and interest in households With the money With which to buy the large-size a focal point of community activity. very low food budgets." products rather than smaller and more ex­ However, this moment of honor has Knauer's statement is similar to com- pensive ones. been marred by the tragic fact that Steve November 19, 1975 EXTENSIONS OF REMARKS 37497 will never know of it. He has been in a fuel-making facllities--to countries like actor, they could cause the radioactive con­ diabetic coma for nearly 3 years. His Brazil and Pakistan that are not even parties tamination of thousands of square rnlles and life is maintained by a machine and to the Nonproliferation Treaty. thousands of . At present, the Inter­ there is no hope of his recovery. Once Despite the fact that my amendment had national Atomic Energy Agency has no re­ a Presidential waiver to allow exports 1f the sponsib1llty to set or enforce physical se­ again a family is faced with the un­ President was willing to say tha.t the national curity standards. bearable sorrow of having one of its security required such export, my amend­ 2. The second argument opposing the re­ members continue to live but has no ment lost by a vote of 117 to 139. It 1s pos­ striction of U.S. nuclear exports is that 1f chance for life. sible that, 1f 177 Members, including many the United States restricts nuclear exports, Therefore, I wish to express my sorrow liberals, had not already gone home before it will deny itself a lucrative market. The to Mrs. Mary Filipan and to their chil­ the vote took pla.ce late Friday evening, the U.S. can't afford to lose the foreign dren James and Donna and to join with result might have been d11ferent. exchange. the people of Commerce in honoring this ARGUMENTS OPPOSING Lll\UTATIONS ON NUCLEAR The possiblllty that the world w1ll be de­ man of service. EXPORTS stroyed is greater than that much money w1ll The first argument opposing Umitations on be made. Without some nuclear restrictions, nuclear exports is that there Js a strong in­ dozens of countries may soon have nuclear ternational nuclear safeguards system imple­ weapons. The United States could someday be hit by a nuclear attack and not know CONGRESS MUST ACT AGAINST mented by the International Atomic Energy Agency (IAEA); there has been no instance who its attacker was. Our nuclear arsenal NUCLEAR PROLIFERATION of violation of these nuclear safeguards to would have no deterrent effect, for we would produce a . not know whom to strike back at. We might HON. CLARENCE D. LONG If the international safeguards regime 1s even strike back at the wrong country. To so effective, how was India able to explode a provoke us into a nuclear war might even OF nuclear bomb? The answer is given that the be the purpose of such an anonymous nu­ IN THE HOUSE OF REPRESENTATIVES reactor from which the Indians gat the plu­ clear attack. Of course, there is the argument that 1f Wednesday, November 19, 1975 tonium for their bomb was not under safe­ guards. But all a country needs 1s one re­ the world is to be destroyed, let us at least Mr. LONG of Maryland. Mr. Speaker, actor not under safeguards to obtain the make money in the meanwhile on the ex­ on Sunday, November 16, I participated plutonium for a bomb. port of peacetime nuclear power technology. The Administration is proposing to sell However, the Barber Report, submitted in in the Critical Mass Conference on nu­ Feburary, 1975, to the Energy Research and clear power as part of a panel on nuclear Egypt two nuclear reactors that will pro­ duce over 600 lbs. of plutonium annually Development Administration, concludes that exports and nuclear proliferation. I (enough for so nuclear weapons of the most developing countries, except for a few should like to insert 1n the RECORD my Nagasaki-Hiroshima variety). Secretary of like Mexico, India, Brazil, and Iran, may statement for that session and would State Kissinger argues that the sale will be purchase relatively Uttle nuclear technology like to bring to the attention of my made under the "most exhaustive system of over the next fifteen years for a number colleagues my recommendations for safeguards in existence." The reactors will of economic reasons: congressional action on this problem, a be- Projections of rapidly increasing energy Subject to International Atomic Energy demand in developing countries are faulty; threat to the survival of us all. Food shortages will require some agricul­ The text of the statement follows: Agency (IAEA) and bilateral U.S.-Egypt safe­ guards against diversion; tural investment where the predominance CoNGRESSIONAL AcrroN AGAINST NuCLEAR Subject to a U.S. right to specify where of small fa:rmers will necessita/te light-capital PROLIFERATION spent fuel rods will be reprocessed, and where or labor-intensive technology; nuclear power (By Hon. CLARENCE LONG) the separated plutonium will be fabricated favors heavy capital and ur,ban development. and stored; and that such reprocessing, fab­ Relative costs are now shifting rapidly Congress must move to control U.S. exports back in favor of conventional over nuclear of nuclear fuel, reactors, and technology. rication and storage will be outside Egypt; Subject to standard U.S. security regula­ power plants. A very possible oil glut in the Nuclear weapons will proliferate unless sup­ 1980's could depress the price of oil and pllers agree on effective measures to prevent tions regarding physical security (i.e. against theft, terrorism, etc.) ; thus shift relative costs even more in favor the development of nuclear weapons, espe­ of conventional power. cially by underdeveloped countries. Subject to a new standard that, 1f Egypt Developing countries lack and wm con­ The difilculties of bringing more Congres­ later copies our technology to build their tinue to la.ck the trained manpower and sup­ sional control over nuclear exports are mani­ own reactors, those copied reactors will porting facilities to operate and service nu­ fold. If control is to be obtained, it will themselves be subject to IAEA safeguards. clear facllities. probably be only through grassroots pressure However, when I asked Dr. Kissinger on Although the Energy Research and Devel­ to force and support Congressional action. Friday whether Egypt, after getting this nu­ opment Administration has ha.d the Barber In an attempt to bring nuclear prolifera­ clear technology, could not simply throw Report for nine months, ERDA Administrator tion under control, I have since June, 1974, us out as it did the Russians before the Seamans had not heard about the Barber offered three amendments: Yom Kippur war and set about making report at all when I questioned him about June 1974-an amendment requiring the nuclear weapons, he admitted that it could. it last week (on Wednesday, Nov. 12). His U.S. Executive Director of the International Kissinger could not even say that our nu­ staff expert admitted to having only heard Development Association (IDA), one of the clear argeement with Egypt would prohibit about the Report through the newspapers. major multilateral aid institutions, to op­ the Egyptians from using our reactor to pro­ It should be emphasized, however, that even pose any loan to any country which de­ duce nuclear weapons 1f they used non-U.S. 1f there is not a huge nuclear market for veloped a nuclear explosive. This passed by nuclear fuel to produce plutonium that was peacetime industrial purposes, there still voice vote and became law. then swapped to another country for "laun­ exists a dangerous potential for nuclear July, 1974-an amendment to require Con­ dered" plutonium. weaponry, as a by-product. The Barber Re­ gressional approval of nuclear agreements Even 1f safeguards are legally sound, there port notes that "the desire to obtain plu­ sanctioning the supply of nuclear equipment is still the question of how effective is the tonium for national security purposes is or fuel to other countries. The amendment enforcement. The regulatory arm of the In­ related to prestige and may serve in some passed by 3 votes (194-191). ternational Atomic Energy Agency, which is countries as sufficient reason to select nu­ However, the Joint Atomic Energy Com­ responsible for implementing nuclear safe­ clear power units over conventional com­ mittee, also the Conference Committee, re­ guards, 1s underfinanced and undermanned. petitors." (p. xill). Thus, countries may moved my amendment even though the Sen­ Less than one-fifth of the International purchase at least one large power reactor to ate had barely defeated a s1m1lar amend­ Atomic Energy Agency's annual budget goes have a source of plutonium. A 1000 megawatt ment by 3 votes and went back to their for the inspection activities of the Agency. reactor, the standard size, produces about original procedure of allowing Congress to The rest goes to promote nuclear power. The 500 lbs. of plutonium a year. veto nuclear agreements by concurrent reso­ Agency has substantially less than 100 in­ 3. The third basic argument of the op­ lution, a far less effective and indeed a spectors for almost 400 nuclear facilities ponents of limitations on nuclear exports is constitutionally questionable procedure. A around the world subject to its safeguards. that the United States cannot force other motion to recommit the Conference Report Agency inspectors inspect reactors only at nuclear suppliers like France and West Ger­ with instructions to re-insert my amendment three-month or longer intervals, and the many to cooperate. Other countries have failed on October 10, 1974, by 87 votes (143- inspections are mainly accounting proce­ nuclear technology and are independent of 230). dures. us. The nuclear genie is out of the bottle June, 1975--an amendment to the Nuclear Physical security standards vary widely. In and can't be put back in. Regulatory Commission authorization blll to June of this year, a West German politician, It is true that other countries have nu­ suspend nuclear fuel supplles (and other to test physical security, walked into a large clear knowhow and can bulld, even export, nuclear exports) to countries like France German nuclear power plant with an anti­ nuclear reactors themselves. But all the and Germany which are providing nuclear tank grenade launcher on his back. If ter­ world outside the Communist Bloc depends weapons capability-in the form of nuclear rorists took over and blew up a nuclear re- on the United States for the nuclear fuel to 37498 EXTENSIONS OF REMARKS November 19, 1975 run its power reactors. Germany and France, information and ideas between the two that committee, the senior Senator from the two countries that are now spreading Houses of Congress in an area where such Wisconsin, who has an obvious interest all over the world the nuclear enrichment competition is vital in eliciting Congressional in the committee, stated to the press that and reprocessing facilities that can produce leadership. the move was motivated to halt investi­ nuclear weapons, depend on the U.S. for 86% The Joint Committee's opposition is a and 62 % of their nuclear fuel, respectively. major reason why amendments to limit nu­ gation of defense contractors. Before If we were to cut off those nuclear fuel sup­ clear exports and to combat nuclear prolifer­ questioning the motives of others, the plies, German and French power reactors ation usually fall. The Joint Atomic Energy gentleman might examine his own. would shut down in a matter of months, Committee, members of which are considered The senior Senator from Wisconsin and those countries would lose a significant to be nuclear experts, universally condemn knows full well that the Joint Commit­ part of the electric power needed to run such amendments with the arguments re­ tee on Defense Production has been mor­ their nuclear industries. counted above. Most importantly, there has ibund for years. The senior Senator from However, we wHl, in a few years, lose this been up to now little grassroots pressure on leverage over these countries. In the 1980's Congressmen to take action against nuclear Wisconsin and the chairman know full large nuclear fuel-making plants will begin proliferation. People have not realized how well that the legislative appropriations full-scale operation in Europe. Therefore, one the continued spread of nuclear weapons can subcommittee back last March raised might ask, "Why bother now trying to make directly threaten, in a short time, their own serious questions about the continuation the French and the Germans do what we lives and the existence of the world. of the committee and what, if anything, want if they will be out of our control dn a The need for strong and continuing pres­ it did. In fact, many Members have not few years." Because, where there is life, sure on Congressmen and Senators from their even known that it existed. there is hope. With our remaining leverage, constituents is where concerned citizen ac­ we can at least get started on some kind of tivists such as you come in. Since then the committee has appar­ an arrangement that might gather mo­ Individually-worded letters must begin ently been scurrying about to find some­ mentum in the future. If we do not use now flowing in to Congressmen demanding action thing, anything, to justify its existence. the leverage we still have, we shall greatly to stop nuclear proliferation. Congressmen But not until October 14 this year were reduce the hope of ever getting any agree­ and Senators should be visited and pressed there proud press releases that the com­ ment among nuclear suppliers to stop n u­ to stop nuclear proliferation. This lobbying mittee would probe defense contractors, clear proliferation. Therefore, it is essential must be done by constituents of the individ­ which should properly be done by other that we move now to press France and West ual Congressmen, not by Washington-based Germany, under threat of the shut-down of lobbyists, who should rather coordinate the committees. their nuclear reactors and at a time of still effort. When important amendments are im­ It is distressing that the very people great on shortage, to refrain from selling minent, word must get to the people and who are critical of congressional and nuclear weapon factlities to other countrtec; . letters and visits must be keyed to those Government fat and overspending, talk To make any such effort work, we must issues. out of the other side of their mouth when also obtain the cooperation of the Soviet In other words, a grassroots constituency someone tries to do something about it. Union, which has some nuclear fuel-making must develop to combat nuclear proliferation The senior Senator from Wisconsin capacity. Our control over the grain sup­ through limiting U.S. nuclear exports. With­ has been busily giving out "golden fleece" plies that the Soviet Union needs should be out that broad constituency, neither I nor helpful leverage to obtain Soviet cooperation. other Congressmen are likely to succeed, ex­ awards for programs he considers out­ Actually, the Soviets have been more con­ cept in rare instances such as July 31, 1974, rageous. Perhaps he can now be the re­ servative than we in exporting nuclear tech­ when my amendment to require Congres­ cipient of one of his own awards. nology. For example, only after Libya rati­ sional approval of nuclear agreements won by fied the Nonproliferation Treaty did the 3 votes. A number of transient factors made U.S.S.R . agree to supply Libya with a small that short-lived victory possible: The issue research reactor. was fairly clear and involved Congressional ONE MORE LOOK AT NEW YORK'S Since the Administration shows Uttle prerogatives at a time when Congress was CRISIS awareness of the seriousness of the threat strongly re-asserting its power; Nixon was and little inclination to use the United President but on his last legs; the memory States' enormous, but short-Uved, power to of the Indian nuclear explosion was st111 stop nuclear proliferation, it is the Con­ HON. GLENN M. ANDERSON fresh; and many were worried over the pro­ OF CALIFORNIA gress that must force the Adml.nlstration to posal to send nuclear reactors to the Middle act, and to act now. East less than a year after the Yom Kippur IN THE HOUSE OF REPRESENTATIVES CONGRESSIONAL ACTION AND THE NEED FOR War. Wednesday, November 19, 1975 GRASSROOTS PRESSURE However, as noted before, the Conference What are some of the specific actions that Committee, or the Joint Atomic Energy Com­ Mr. ANDERSON of California. Mr. Congress can take? mittee, struck out my amendment in favor Speaker, I hope that opinions on what Congress can require the Admlnlstration of the weaker, original b111, and a move to plan of action should be taken by Con­ to close loopholes in U.S. nuclear agreements re-insert my provision was defeated, two gress regarding the New York City crisis with other countries, loopholes that allow months after the original vote. have not solidified to the degree that one use of our reactors to make nuclear weapons To defeat any Committee on the Floor of more perspective will be overlooked. The by the device of "laundering" plutonium the House requires a large constituency, for question of assistance-at what point, to produced from non-U.S. fuel. the general rule is, "When in doubt, go with Congress can suspend nuclear exports, the Committee." You and many others like what extent, if at all-continues to be a especially nuclear fuel, to suppliers like you must get to work. I know you realize polarizing one. France and West Germany unless they adopt that the risks of not stopping nuclear pro­ In a November 9 article in the Wash­ responsible nuclear sales policies--mainly no liferation are enormous. The survival of the ington Post, staff writer Jack Egan ex­ exports of nuclear fuel facilities which make planet depends on it. amined the consequences of default, and nuclear weapons material and no nuclear concluded that "whether a New York exports to countries which do not accept City default will produce serious finan­ safeguards on all their nuclear facilities. cial side-effects depends in large measure Congress can condition grain sales to the ABOLISHMENT OF JOINT COMMIT­ Soviet Union on Soviet cooperation (which on its impact on the banking system and could well come willingly) in pressuring TEE ON DEFENSE PRODUCTION in particular, on the pivotal New York other nuclear suppliers to adopt sensible City banks." rules in nuclear sales. HON. LAWRENCE COUGHLIN Mr. Speaker, Mr. Egan makes some Congress can direct the President to use comments that get to the point of this all our diplomatic leverage to strengthen OF PENNSYLVANIA issue, and I would like to include this international nuclear safeguards and to bol­ IN THE HOUSE OF REPRESENTATIVES ster the International Atomic Energy Agen­ article in the RECORD: cy's ablllty to enforce safeguards-through Wednesday, November 19, 1975 NEW YORK BANKS NOT JEOPARDIZED adequate funding of the Agency's regulatory Mr. COUGHLIN. Mr. Speaker,IastFri­ (By Jack Egan) functions, more and better inspectors, bet­ day this House took one small step to­ NEw YoRK.-Whether a New York City ter eqUipment, and authority to reqUire ward sanity by abolishing the long default will produce serious financial side­ physical security standards for all nuclear dormant Joint Committee on Defense effects depends in large measure on its im­ facilities. Production effective June 30, 1976. In my pact on the banking system and, in particu­ To act effectively, Congress should update lar, on the pivotal New York City banks. basic laws and cominittee jurisdiction over memory this is the first time we have The six largest New York banks--First Na­ nuclear exports. The Joint Committee has ever abolished any one of our institu­ tional City, Chase Manhattan, Manufac­ probably outlived its usefulness if it ever tions. turers Hanover, Morgan Guaranty, Chemical had a.ny, because it suppresses competlttion in Subsequently, the vice chairman of and Bankers Trust--together hold an esti- November 19, 1975 EXTENSIONS OF REMARKS 37499 mated $1 billion in city notes and bonds and bankers attending an American Bankers As­ The following is an article from the another $800 million in Municipal Assistance sociation conference in New York City last Altoona Mirror which covered the sur­ Corp. (MAC) bonds. week revealed that 68 per cent fear:ed a prise testimonial dinner in his honor. It These banks also happen to be among the major negative impact in international is gratifying to know that the working largest in the world, aggregating $193 billion financial markets whereas only 19 per cent in banking assets as of last Sept. 30. About saw minimal impact. men and women of his district recognize $250 billion in transactions goes through The foreign view is considered extremely the outstanding job Bun SHUSTER is these banks weekly. They serve as corres­ important because of concern that a city doing for them. pondent for thousands of domestic and in­ default might be misunderstood abroad, The article follows: ternational banks. And they are major par­ leading to large-scale withdrawals from the RAILROADERS HONOR CoNGRESSMAN SHUSTER ticipants in the foreign exchange and the European branches of the New York City About 550 railroad workers and officials Eurodollar markets. banks where billions of dollars are on of the Penn Central Transportation Com­ Even under the "worst case" scenarios that deposit. pany surprised Cong. Bud Shuster Saturday some have sketched, nobody claims the sol­ A major uncertainty now as to any im­ night with a testimonial dinner. vency of these banks will be put in jeopardy pact default will have on bank earnings in­ The event, held at the Sheraton Motor Inn, by a New York City default. They are simply volves what kind of write-offs accounts will honored the congressman, the railroaders too large and too important to the national decide have to be taken. said, for his efforts in having the Altoona and international financial system. Under current rules, a bank may keep shops designated the repair facility of the And the Federal Reserve Board has stated securities in its investment account at the new ConRail system, leading the fight emphatically that it w111 supply virtually original purchase price or "book value" even against rail line abandonments in the area unlimited funds through its discount win­ if the market price has subsequently de­ and his efforts in behalf of the railroad dow to any bank which runs into liquidity clined. retirement legislation. problems as a result of a New York City But a defaulted security is supposed to be Joseph Fadale, manager of the Altoona bankruptcy. written down in asset value. The degree of shops, said Mr. Shuster was a "dedicated and But bank analysts believe that a city de­ the markdown depends on how much the tireless benefactor" of the Altoona shops. fault could create some definite problems security has been impaired, refiectlng any "Bud's efforts were in no small way responsi­ for these banks, with the effect varying from loss or reduction in interest or principal and ble for the USRA's $56 million for the Al­ institution to institution depending on their refiecting the likelihood the issuer will even­ toona shops," he said. exposure and their earning power. tually make good on that piece of debt George Datres, of the International As­ Depending on the degree of wr1 te-down through some kind of restructuring arrange­ sociation of Machinists, lauded Mr. Shuster eventually required on any defaulted secu­ ment. for his efforts in the restructuring of the rities they hold, a city bankruptcy could put In this case, the Fed and other bank regu­ Railroad Retirement Act. He also told the a serious dent into the earnings of some lators have agreed to give banks up to siX congressman, "You don't always vote accord­ banks at a time when they are already ex­ months to take any markdown. This is done ing to the way we think, but you're coming periencing the largest volume of loan losses to cushion any sudden impact on banks' along." since the 1930s. capital from a default and in the expecta­ "THANXS A MILLION" "The major concern," cla.ims one bank tion that New York City will come up with a analyst "is the fact banks have other expo­ repayment plan which will minimize or even H. L. Pressler, superintendent of the loco­ sures in addition to New York City. When eliminate the need for any wrtte-offs. motive shops, said Cong. Shuster was instru­ you see all of these things coming up at Fed Governor George Mitchell, in a meet­ mental in enabling the railroad to recall fur­ once-W. T. Grant, the REITs (Real Estate ing with bank analysts in Washington last loughed employes earlier this year. "Thanks Investment Trusts), etc.-it could be very week, told them no write-offs would probably a million, Bud," he said. damaging to bank earnings and bank capital be necessary, according to several individuals B. E. Porta, local president of the Trans­ accounts." at the session. port Workers Union, also hailed Mr. Shuster's Chemical, Bankers Trust and Chase Man­ But bank accountants and the Securities efforts in the Altoona shops' designation in hattan could all conceivably show actual and Exchange Commission, which regulates the ConRail plan. He said the testimonial losses for one or more quarters as a result reporting and disclosure by bank holding dinner was a "labor of love from the whole of a default, analysts say. The other three companies, have both indicated that they bunch of us." banks would probably stay in the black but will require write-downs in the quarter dur­ The congressman was also praised by union find their potential earnings reduced. ing which the default occurred. leaders Gil Ciambotti and Anthony Ruscio. The difficulties could be worsened consid­ Should the default occur in December, as John K. Cowman, foreman at Samuel Rea erably if the city default triggers a default now seems quite possible, the write-downs shops and chairman for the dinner, presented by New York State, its agencies, or another would have to be refiected in financial state­ Mr. Shuster with a model of a locomotive big state like Massachusetts, as some have ments for the fourth quarter and for all of and a gold pocket watch, inscribed "Thanks predicted. This would raise the crisis one 1975 which would normally come out by the Bud from your railroad shop friends." order of magnitude. middle of next January. In response, Mr. Shuster said, "I can't tell One immediate result is that the big New Perhaps the most comprehensive analysis you how much I appreciate this. This is the York City banks are paying a premium to has been done by Keefe, Bruyette & Woods, most astonishing and wonderful evening of obtain funds when they sell large-size cer­ the research firm that specializes in bank my life. I should be saying thank-you to tificates of deposit (C.D.'s). In the last few stocks. In an August report, the firm con­ you." weeks, as default seemed more imminent, cluded that even if a highly improbable 100 FATHER WAS A RAILROADER rates in C.D.'s have been increasing although per cent loss scenario where a bank's city "I can't think of any other effort that I general money market rates have declined. and MAC paper were marked to zero, none find my heart completely in," Mr. Shuster In the week ended last Wednesday, 90-day of the siX banks "would be hopelessly im­ said, telling the audience his father was a bank C.D.'s traded in the secondary market paired." railroader and his mother lived for a number at a 6.45 per cent average interest rate, up However, Chemical would experience a 14 of years on a railroad pension. from 6.16 per cent the week before. Con­ per cent drop in its capital position 1n 1975, Mr. Shuster said it was with a "complete versely, 90-day commercial paper issued by according to this scenario, as the bank with sense of purpose and dedication that I threw corporations to raise funds dropped to 5.88 the largest exposure, followed by Bankers myself into this fight,'' referring to the Con­ per cent from 5.93 per cent in the preVious Trust with a 7 per cent decrease. Rail plan. week. He said he is asked in other parts of his Additionally, the New York City banks, 10-county dlstrict why he spends so much which usually pay a lower C.D. rate than time on the railroad. He said he tells con­ the major banks outside New York, have stituents that the railroad is not only im­ found that the differential first disa.ppeared RAILROADERS HONOR BUD portant to Altoona and Blair County, but it and now has been reversed as investors seem SHUSTER is important to America. "If we don't re­ to prefer the regional banks in what is being vitalize it, we won't have a vital railroad termed a "fl.lght to safety.'' system for America.," he sald. One mitigating factor, however, is that HON. STEVEN D. SYMMS Mr. Shuster praised the railroad workers the New York City banks have been aggres­ OF IDAHO as "people who still believe in the value of sively increasing their C.D.'s in the face of IN THE HOUSE OF REPRESENTATIVES the work ethic." weak loan demand to insure that they are "If· I live to be 100 I shall never forget. liquid in the event of a default. This has Wednesday, November 19, 1975 tonight,'' he said. tended to increase interest rates. ~r. SYMMS. Mr. Speaker, Bun SHUS­ REASONS FOR HONOR "It isn't like the banks aren't prepared for The railroaders listed the reasons for the this situation because they are," says Mark TER, our colleague from Pennsylvania, has worked tirelessly in behalf of the testimonial: Blderman, bank stocks analyst at Oppen­ Cong. Shuster leading the fight for the heimer & Co. railroaders in his district and I was Railroad Retirement Act of 1974 and rallying As to the foreign perception of the im­ pleased to read that he has been honored his colleagues in the override of the presi­ pact of a city default, a survey of 18 foreign by them for his efforts. dential veto of that bill. 37500 EXTENSIONS OF REMARKS November 19, 1975 Working for the passage of legislation for much more palatable to both our constit­ and tangible public service. Let us pro­ emergency funding for the railroad until the uents and the Congress. In requesting a inauguration of ConRail. vide, :rv1r. Speaker, that service with a bill Co-sponsoring legislation to relay all ra.il $1.5 billion subsidy for the Postal Service that humanistically applies to each and abandonments until 1977, to allow time for the Post Office and Civil Service Com­ every citizen of the United States. their possible inclusion in ConRail. mittee only requested an increase in Testifying in the Washington ICC rail service which concerned providing new abandonment hearing and bringing the hear­ residential areas with door-to-door serv­ SURPLUS VEGETABLES FOR SENIOR ings to Altoona. ice of curbline or clusterbox service. They CITIZENS cutting through red tape to aid numerous assumed in their report, No. 94-391, that railroaders and widows with pension and dis­ door service was superior to curbline or abllity benefits. clusterbox service. HON. ALPHONZO BELL Fighting for inclusion of Central Pennsyl­ OF CALIFORNIA vania rail lines in ConRail. It is my opinion, however, that pres­ Helping negotiate the end of the Altoona ently there exists an ironic inequity in IN THE HOUSE OF REPRESENTATIVES shops furlough. our Postal Service. Curbline or cluster­ Wednesday, November 19, 1975 working to have the shops designated as box service is actually more efficient tha.n Mr. BELL. Mr. Speaker, the Monterey the prime repair fac111ty for ConRail. door-to-door service, with respect to mail Helping secure $56 milllon for the shops. County Community Services Depart­ Helping negotiate the suspension of state collection, because curbline and cluster­ ment in California has recently insti­ box mail is collected if the flag on those penalties against th~ Altoona shops and se­ tuted a very commendable program cure federal funding for environmental im­ mailboxes is raised. In contrast, as I have whereby fresh vegetables are distributed provements. previously stated, mail is not collected in on a regular ba.sis to senior citizens. Putting the spotlight on the Altoona shops door service areas if the mailman has by bringing to Altoona Secretary of Trans­ The program depends on a cooperative none to leave. This bill simply elevates effort undertaken by the county and portation Claude Brinegar and the chief ex­ door service to its rightful level above ecutive officer of ConRail, Edward Jordan. vegetable growers in the area who make curbline and clusterbox service. available the vegetables they do not send A mailman, in postal jargon, is called to market. a postal carrier. My amendment empha­ I would like to call to the attention POSTAL COLLECTION NECESSARY sizes that a postal carrier is not just a of my colleagues an article describing mail deliverer but is also, as the duality this program which appeared in a recent of the term implies, a receiver of the issue of the Council of California Growers HON. JERRY LITTON mail. To date, city area door carriers are Agricultural News Service Bulletin. not performing their receiver function. The text of the article follows: OF MISSOURI I must finally address the projected IN THE HOUSE OF REPRESENTATIVES cost of this legislation to the Postal Serv­ SENIOR CITIZENS GET SURPLUS VEGETABLES Monterey County senior citizens are get­ Wednesday, November 19, 1975 ice. The Postal Service estimates that 70 percent of residences in these areas re­ ting a regular supply of fresh vegetables and Mr. LI'ITON. Mr. Speaker, I have long growers are seeing their surplus crops being ceive delivery each day leaving a balance used to the best possible advantage in a been concerned with the inefficiency of of 30 percent which do not receive col­ unique food distribution program. our present Postal Service. The Congress lection under present regulations. One of "Because of the cooperation of vegetable recently expressed their concern toward my colleagues in remarks on the House growers in the Salinas Valley, we a.re able USPS financial mismanagement by twice floor asserted that this legislation, when to supply a weekly selection of produce to supporting the Alexander amendment to I offered it in the form of an amend­ seniors during our eight-month growing sea­ H.R. 8603, the Postal Reorganization Act ment to H.R. 8603, would increase the son," said Richard Bennett, executive direc­ Amendments. My constituents have ex­ workload of the Postal Service 30 per­ tor of the Monterey County Community pressed their concern with increased Services Department. cent. There are two reasons why this "The growers make available the vege­ postal rates and subsidy requests wh!le legislation will not increase either the tables they do not send to market," Bennett their service has consistently deterio­ workload or the cost anyWhere near that explained. "That doesn't mean they are really rated. Today, I am introducing legisla­ projection. culls--1 don't like that word. The carrots tion which requires a concrete increase First, this bill will just require one may be a little small, or the lettuce heads too in postal public service by requiring city large. But the qua.llty is good and the food type of mail carrier to provide additional is wholesome." door delivery mailmen to provide pick­ service. If every door delivery carrier up service for residences which have in­ had to provide those 30 percent who do PROGRAM EXPAND~G dicated they have mail they want picked not receive collection, with collection, the The program began with a weekly distribu­ up. total workload of the entire Postal Serv­ tion of 200 bags of vegetables. It has ex­ This bill simply requires mailmen in ice would not increase 30 percent. Sec­ panded now to approximately 2,500 bags. those areas to pick up mail 1f the resi­ Eligible senior citizens can get their vege­ ond, the percent of residences that would tables at various county locations. In some dent has indicated with a flag signal need this added service would probably cases the bags are delivered to shut-ins, Ben­ that they have mail they need collected. only increase 10 to 15 percent. Since nett said. Practically everything is done by Present Postal Service regulations do door delivery mailmen walk past these volunteers. not require these mailmen to pick up residences--some walk through their "This program has attracted attention up mail at residences unless they have mail yards-it should not require but a mini­ and down the state," said Bennett. "In fact, to deliver to that residence. Consequent­ mum increase in workload for them to a similar effort is beginning in Santa Cruz lY, 1f I want to pay my gas bill, I have County, and we have a vegetable exchange collect this extra mail. program with Fresno and Mereed Counties." to hope someone writes me within the I believe that the language of my bill next few days so the mailman will pick adequately reflects the dissatisfaction of FOOD EXCHANGED up my outgoing mail so that my payment both the citizens of this country and the Bennett explained that under the ex­ will reach the gas company on time. This change program, Monterey County can sup­ Congress with the failure of the Postal plement Its produce supply by obtaining situation is more critical for those who Service to promulgate efficient public items from other counties in exchange for are unable to take their mail to their service regulations and practices. Con­ goods they have in oversupply. post office or community drop box be· gress is oftentimes criticized for enacting Bennett said the program primarily bene­ cause of age, disability, or lack of trans­ legislation which places too many re­ fits persons over the age of 60 with llmited portation. Oftentimes the mail is their strictions on the public and of being in­ incomes. "Our distribution Is handled only contact with the outside world. sensitive to their daily needs. If my bill through a non-profit corporation called Ex­ This bill relies on the premise toot the perience, Inc., which also operates a senior is passed, the citizens of the United crafts store." Congress should determine what con­ States will recognize that we are em­ stitutes proper postal public service. If John Grtssim, the Community Services De­ pathetic toward their problems. This partment's senior director and a senior him­ our appropriation to the USPS is con­ amendment services this Nation's citizens self at 65, and Bennett share credit for get­ tingent upon real increases in service, I in a very practical way on a daily basis. ting the program started. believe congressional subsidies will be We are providing for them a very real "We called on the Salinas Grower-Shipper November 19, 1975 EXTENSIONS OF REMARKS 37501 Vegetable Association and with their help greatest city we have, on the verge of col­ and they were expelled to Nova Scotia. It was were able to talk with growers. The grow­ lapse, and yet we've been spending countless a little scar on American history. They were ers have been extremely cooperative-we billions trying to impose our system of life given a thousand acres at Pugwash in forced couldn't ask for more," Bennett said. on remote countries like Cambodia. Mrs. exchange for a substantial piece of property Eaton and I have been to Cambodia. It used at the corner of Broadway and Wall Street. to be one of the most beautiful countries on You know, this is a vast country, with enor­ earth. If New York goes, people all over the mous resources. But these panic spells, CYRUS S. EATON INTERVIEWED BY world will panic. I've been working quietly on which are to so large an extent emotional, THE NEW YORKER MAGAZINE your problem with some senators and con­ can be terribly destructive. If the greatest gressmen, and I've exchanged some ideas city in the world collapsed, it would be an with Nelson Rockefeller, whom I've known awful blow to the capitalistic system. There's HON. LOUIS STOKES since he was two. An able young man, Nel­ no perfect system anywhere, but generally son, with no temptation to do anything dis­ I'm in favor of capitalism. As a philosopher, OF OHIO honest financially. His paternal grandfather moreover, I try to look at the pros and cons IN THE HOUSE OF REPRESENTATIVES took care of that. I knew both his grand­ of questions, and I've come to believe in Wednesday, November 19, 1975 fathers well. When I first came to the United compromise and moderation, which wouldn't States, at the turn of the century, it was be a very good philosophy, of course, on Mr. STOKES. Mr. Speaker, one of the summer I'd finished prep school. I was which to run for political office. Well, I'm Cleveland's most distinguished citizens, visiting my father's younger brother, who not a candidate for anything, but I have an Mr. Cyrus S. Eaton, has recently been was pastor of Mr. John .Rockefeller's church interest in America, and anybody who feels interviewed by the influential New in Cleveland. That's John D., Senior, of that way ought to be concerned about the course. When I checked in at my hotel, I saw financial soundness of a city as big as New Yorker magazine. This article reviews a big sign saying that a night clerk was York. With so many cultures and nationali­ various highlights of his career and also wanted, and I applied and was hired. Then ties represented among your eight Inillion gives us a peek at his current lifestyle. my uncle took me over to the Rockefeller's people, New York is a tremendous experi­ I am sure that my colleagues will find for dinner, and when Mrs. Rockefeller asked ment in modern society, and the rest of the this article both stimulating and inter­ what I was doing and I said I had just landed country has got to take it seriously." esting: a fine summer job as a night clerk, she said, [From the New Yorker magazine, 'Oh, that's no job for someone like you I November 1975] John, can't you do something for this young man?' He more or less had to offer me a job. FOOD STAMPS THE TALK OF THE TOWN I didn't know if the hotel could survive "I'm perhaps the only living man who without me, so I demurred until I could ask was personally and profoundly affected by the the manager, and when I did, he said, 'You Depression of 1893, not to mention those of take it. If it were offered to me, I'd take it.' " HON. ROBERT H. MICHEL 1907 and 1929, and I don't want to spend Mr. Eaton, a trim nonagenarian with OF my last years being affected by another big snow-white hair and a ruddy complexion, one, brought on by the default of New York was rather formally dressed in a dark-blue IN THE HOUSE OF REPRESENTATIVES City," Mr. Eaton, who will observe his nine­ double-breasted suit, white shirt, gray tie, Wednesday, November 19, 1975 ty-second birthday next month, told us and highly polished black shoes. He said he when we called on him the other morning had to fiy to Baltimore that afternoon for Mr. MICHEL. Mr. Speaker, when an on his farm outside Cleveland, where the a railroad meeting (he is chairman emeritus issue comes to the fore as dramatically man who practically invented detente has of the Chesapeake & Ohio Railway), but as food stamp reform has in recent on display, along with other mementos of expected to be back home for dinner. "I'm months, many people wonder how it was an extraordinary life, a Lenin Peace Prize. a competitor of the Penn Central, but I'm that it all happened at this precise "In 1893, I was living at Pugwash, Nova bound to say its bankruptcy was the great­ point in history. Recently, U.S News & Scotia, my birthplace, and my father, who est econolnic disaster in recent years," he was doing quite well in farlning and lum­ told us. "The Penn Central was a marvellous World Report carried an excellent sum­ bering and general merchandise, was about property, and it could have survived if the mary of the issues and problem areas to move down to the States and join his cost of borrowing money hadn't been driven that led to the current drive for reform. brother Cyrus, for whom I was named, in up so high because the government was In addition, it describes concisely anum­ the tin-plate business. Then the panic hit. spending it all over the world, on arma­ ber of the recommendations which we Suddenly the American dollar was worth ments, lik6 a drunken satlor. If New York have made, and explains why so many only fifty cents in Nova Scotia. My prudent suffers the same fate as the Penn Central, of us are concerned. I insert this article father decided not to take a chance on a you may never recover from it. UntU lately, to be printed here in the RECORD. country in that kind of shape. We had a I went to my office, downtown, every day special interest in that depression up there from eight to five, but now I generally come WHY THE DRIVE TO LDIIUT FOOD STAMPS because, a.s you doubtless recall, one of Gro­ home at two, so I can walk around the farm. The Nation's problem-ridden food-stamp ver Cleveland's ancestors had some Nova I'm mainly a farmer and a philosopher at program, under fire as being completely out Scotia in his background. Poor Cleveland! present. You might say that I'm not techni­ of hand, now faces the first serious attempt That depression lasted all through his sec­ cally quallfied to use that 'philosopher,' but at a cutback. ond Administration, and it was one of those I do spend a great deal of time thinking Criticism of the program has grown even economic catastrophes that are due less to about big problems. In any event, I'm in faster than its cost--up from 1.6 bUlion any basic weakness in the nation than to good health-though when you get to be my dollars in 1971 to about 6 billion this year. the stupidity of statesmen. I was only ten age your hearing's apt to be not so keen­ The latest complaints- years old at the time, but I had been in­ and my doctors told me, when I last checked An official survey, released last month, terested in my father's business for quite a in with them, 'We can't see any end to indicated that 17.3 per cent of all fainilies while. I had begun taking on responsibllit1es you under a hundred.' The reason may be getting food stamps were ineligible to receive when I was four, and used to get on a horse that for nearly fifty years I've been strictly them. in wintertime and drive the cattle down adhering to a set of rules that the doctor Another 26 per cent, the survey found, from the barn to the brook. At five, I milked who prescribed them said he wouldn't dream were either issued too many or charged too my first cow, though I must confess she of observing himself: no tobacco, no alcohol, little, because of cheating or adm1n1strative was so good-natured my father said any no tea, no coffee, and none of those in­ bungling. idiot could manage her. At siX, I got a job digestlbles, like corned-beef hash. No corned­ Many families that earn more than $12,000 fetching water from a spring for some men beef hash! It used to be my favorite. I now are drawing stamps, legally. So are who were laying railroad tracks nearby. I played tennis up to a few years ago, but I famll1es with new oars, hidden incomes, was paid fifty cents for a ten-hour day. My quit it about the same time I quit skiing, shifted assets, gourmet tastes. father was also the local postmaster, so next having been persuaded to do so when the There are many cases of stamps being used I began sorting the mail. Even before that, doctors said, 'At your age, if you break a legally by students and strikers. Stamps also I had been looking at the Boston and Prov­ leg we can't repair it for you.' " are said to be used frequently to buy liquor, idence papers that came in to our Pugwash Mr. Eaton paused for a sip of orange to gamble, even in payment for prostitution. subscribers. As soon as I learned to read, I juice. "By the way, I have falnily ties to In some areas, such as Puerto Rico, they began reading American newspapers--a very New York City," he went on. "My Eaton often substitute for money. ancestors were all New Englanders who went bad habit, which I still have. I recently INTERNAL ABUSES found myself more attracted, however, to to Canada before the Revolution. My mother, though, was a MacPherson, and her fore­ In Pennsftvania, a study shows about half Le1bnitz, and Plutarch's 'Life of Lycurgus.'" bears were New York businessmen, who re­ of the abuses He with the system---35 per Mr. Eaton turned back to the plight of mained loyal to England and, after the sur­ cent attributed to errors made at the county New York. "You're suffering because of the render at Yorktown, were treated very rough­ level, 8 per cent at the State level. False state­ whole national economy," he said. "Here's the ly. Everything they owned was confiscated, ments by the recipients accounted for 23 37502 EXTENSIONS OF REMARKS November 19, 1975 per cent; their failure to report all of the THE ADVISORY COMMISSION ON IN­ late their operations, requiring substan­ facts, 34 per cent. TERGOVERNMENTAL RELATIONS tial funding. This was due to a Commis­ So huge has the demand for food stamps ON THE NEW YORK CITY FISCAL sion conclusion that underfunded retire­ become that the coupons are being printed by two bank-note companies, as well as the CRISIS ment systems posed an emerging threat Treasury Department's Bureau of Engraving to the financial health of local govern­ and Printing. HON. CLARENCE J. BROWN ments. Now the Administration 1s proposing a basic Fourth. Each State should establish change in the burgeoning program--one that OF omo guidelines for State intervention when would place a ceiling just above the poverty IN THE HOUSE OF REPRESENTATIVES local governments experience financial level for recipients of the stamps and would Wednesday, November 19, 1975 emergencies. This recommendation came require all users to pay 30 per cent of their from a Commission conclusion that net incomes for the stamps. Mr. BROWN of Ohio. Mr. Speaker. Its effect, as oftlcia.ls figure it: having just returned from a 2-day ses­ States are the l<>gical providers of as­ Some 17 percent of families now partici­ sion of the Advisory Commission on In­ sistance to local governments because pating in the program would be dropped; 28 tergovernmental Relations, on which I the States provide the basic constitu­ percent would have their benefits reduced, by tional and statutory authority for local paying more each month; 31 percent would am privileged to serve as one of three government operation. pay about the same; 24 percent-those at the representatives of this body, by your ap­ Fifth. Federal action in the case of lowest income levels-would pay a little less. pointment, I would like to share with my colleagues some of the commission's in­ local financial emergencies should in­ DRASTIC CUTBACK clude situations in which interstate con­ The net result, Administration planners sights into a problem which deeply con­ siderations require use of Federal bank­ say, would be to dump 3.4 million of the 18.8 cerns all of us at this time: the New ruptcy laws. A further recommendation million people now in the program, and to York City fiscal crisis. The Commission, was that Federal bankruptcy provisions cut its cost by 1.2 billion dollars. made up of representatives of all levels relating to local governments be adopted This plan was sent to Congress on October of government as well as private citizens, and clarified in three areas. 20. Also in the proposed bill: has taken a position on the matter which Fa.m111es drawing welfare checks would no should give us pause before we rush head­ Mr. Speaker, I think the Commission's longer be automatically eligible to draw food feelings that the States should have the stamps. long into an ill-considered scheme to in­ predominant role in cities' financial As a test of ellgib1lity, family incomes ject the Federal Government into the problems is obvious in the above recom­ would be calculated on the basis of actual picture. mendations. ACIR concluded that the incomes during the previous 90 days, in­ The Commission adopted the following State should bear the full responsibility cluding welfare, rather than an estimate of resolution: future income. This would keep newly un­ for supervision of municipal financial The Commission recognizes that the offi­ management and for providing assist­ employed or striking workers off the food­ cials, employees, and citizens of New York stamp rolls for at least a month or two, ac­ City and New York State have the initial re­ ance to local governments in financial cording to Agriculture Secretary Earl Butz. sponsibility for alleviating the fiscal crisis of emergencies. The Commission recom­ To encourage unemployed users of stamps New York City. The Commission also recog­ mended that warning systems be worked to find jobs, the plan would require all "able­ nizes, however, that the Federal Government, out to indicate prompt corrective actions bodied recipients to seek, accept and retain as required, should act in support of New before problems deteriorated to the point gainful employment," with monthly check­ York State and City efforts to assure that that they now have in New York City. ups. New York City's fiscal crisis does not have a. Commenting on the 2 %-year-old study College students would not be eligible for nationwide effect on the economy and on the food stamps unless their families also are borrowing activities of other State and local at this week's session, the ACIR staff eligible. governments. said: In computing a. family's net income-30 The New York crisis, in our opinion, does percent of which must be spent for the Mr. Speaker, this position was not not invalidate ACIR's conclusion reached stamps-most families would get a flat $100 seized upon hastily. On the contrary, the two-and-one-half years ago. New York State, monthly deduction instead of the present financial condition of our cities is a prob­ we believe, could have prevented the New complicated formula involving rent, child lem that has concerned ACIR long before York City emergency and rendered any nec­ care and taxes. A family with a member over our Nation's largest city discovered itself essary assistance if it had taken the legis­ 60 would get a larger deduction, of $125. lative and supervisory actions we contem­ Thus a family of four-the largest present to be on the brink of disaster. ACIR sev­ plated. group of users--could earn no more than eral years ago undertook a study of the $6,550 to still be eligible. financial problems of cities which re­ But the New York crisis should tell us The proposal also would require photo­ sulted in March of 1973 in the publica­ that most States have not followed identification cards for householders to use tion of a report entitled, "City Financial ACIR's recommendations to equip them­ 1n drawing their monthly stamp quotas, Emergencies: The Intergovernmental selves to exercise the supervision that plus a system for countersigning food cou­ Dimensions." In fact, if this study had seems to be necessary. pons at food stores. received more attention and had its ad­ The genius of our federal system has LONG STUDY vice been heeded, New York and other been the continual development of re­ Fast action apparently is not likely in cities might not now be in the position sponsibilities at each level of government Congress. The House Agriculture Committee according to their ability to perform intends to take its time completing a. study they are in. of the whole food-stamp program, now under I would like to summarize the five rec­ those responsibilities. Our National Gov­ way. ommendations of the 1973 report: ernment remains the most efficient and Planned are more Senate hearings in No­ First. Each State should establish a equitable raiser of revenues of any level vember, with no final action seen before next State agency to improve local financial of Government. spring. management functions and to detect State and local governments, on the Meanwhile, efforts are under way in the problems early enough to prevent local other hand, possess through their con­ Department of Agriculture to tighten up op­ stitutional responsibilities and closer eration of the program. One expected result: financial crises. This recommendation a. cutback in the estimated cost of the vast was based on the Commission's conclu­ proximity to the people, the most flexible stamp plan for the year ending next July sion that unsound financial management means by which to manage governments. from 6.6 billion dollars to 5.8 billion, with is one of the biggest causes of cities' fi­ It is clear that in New York City, as 20.2 m1111on participants by that date. nancial emergencies. elsewhere, political expediency has pre­ Involved are monthly audits of the pro­ Second. States should enact legislation vailed over prudent public policy. The gram in every State, millions of dollars in to regulate the use of short-term oper­ future of our local governments has, does, fines levied thus far against six States plus ating debt that extends beyond the end and must always rest with the respon­ the District of Columbia for "gross negli­ of the year. This was designed by the sible State governments. Any legislative gence" in running their programs, and court Commission to prevent the accumulation initiative by this Congress must take suits against about 35,000 individuals for will cheating. , of short-term operating debts over a account of this need or it most surely But these efforts all are directed against period of years, which can contribute to fail. the fraud and bungling involved in the wide­ a financial emergency. The full text of the report of the staff spread program. What t he Administration Third. States should consolidate local of the ACIR to the members of the Com­ now hopes to do is to cut back substantially retirement systems into a State-admin­ mission where it met in Chicago earlier on its size. istered system, or at least strictly regu- this week is as follows: November 19, 1975 EXTENSIONS OF REMARKS 37503

THE NEW YORK CrrY AND MUNICIPAL BOND management techniques may actually cause the requisite procedures for carrying out MARKET CRISIS: INTERGOVERNMENTAL As- trouble because of the uncertainties they remedial State action." PECTS create. Our report also set forth four local fiscal Mr. Chairman and Members of the Com­ THE RECOMMENDATIONS conditons that would justifiably trigger State mission: On the basis of its financial emergencies action, and recommended 13 actions the The New York City financial crisis and study the Commission adopted the follow­ designated State agency should be authorized municipal bond market repercussions have ing five recommendations, the first four ad­ to take in such emergencies. generated the most critical collection of dressed to the State and the fifth to the Recommendation No. 5. Federal Action in intergovernmental relations problems and Federal government: Case of Financial Emergency. tensions we have seen in many years. A host Recommendation No. 1. State Assistance, "The Commission recommends that Fed­ of questions concerning the appropriate roles General Supervision and Prevention of Local eral action in the case of local financial and actions of each level of government have Financial Emergencies. emergencies include situations in which arisen, and virtually every American govern­ "The Commission concludes that unsound interstate considerations require use of the ment is likely to be a1Iected sooner or later financial management stands out as one of Federal Bankruptcy Laws. The Commission by the current crisis. the most important potential causes of finan­ recommends further that Federal bank­ Chairman Merriam, therefore, has called cial emergencies in local governments. The ruptcy provisions relating to local govern­ on the ACIR sta1I to make a short report on Commission r~commends therefore that each ments be adopted and clarified as follows: this subject at this meeting. The purpose is State designate or establish a single State "1. The definition of 'creditor' should be to highlight the intergovernmental aspects agency responsible for improvement of local clarified in order to specify precisely what of the problem and to identify in advance financial management functions such as ac­ classes of creditors come within the scope some of the intergovernmental needs that counting, auditing and reportlng. The Com­ of the statute. have been underscored or created by the mission further recommends that the agency "2. Involuntary filings by either the mu­ crisis. The purpose is not to dwell on how be responsible for early detection of finan­ nicipal unit, the creditors, or the appropriate New York City's financial problems will be cial problems in order to prevent local finan­ State agency should be permitted under cer­ solved or whether there should be Federal cial crises." tain specified conditions where the parties assistance of some type. In the language expanding on this recom­ have seriously tried to gain approval of ap­ As you are well aware, ACIR beginning in mendation, the Commission stressed the need propriate parties for filing of a reasonable 1972 undertook research that resulted in its for an independent post-audit of each mu­ plan for more than six months. In such report entitled "City Financial Emergencies: nicipality. cases, the State should be considered to The Intergovernmental Dimensions." This Recommendation No. 2. Regulation of be a party of interest in the proceedings. report sets forth the five recommendations Short-term Operating Debt. "3. The Court should require continuous approved by the Commission on March 9, "The Commission concludes that the in­ supervision of a local government's compli­ 1973. Having had this background experi­ ability of local governments to repay short­ ance with the final court ruling, including ence, ACIR has followed the developments term operating loans, especially those which a written annual progress report by the ap­ in New York City with keen interest. have accumulated to a substantial amount propriate State supervisory agency or a Today I will quickly summarize ACIR's over a period of several years, can be an court-appointed board if an appropriate 1973 findings, including its financial emer­ important precipitating factor in causing fi­ State agency does not exist." gency warning signals, and the Commission's nancial emergencies. The Commission recom­ The Commission on the Bankruptcy Laws recommendations. At somewhat greater mends therefore that the States enact legisla­ of the U.S. was then in the process of re­ length, I will then identify five areas of need tion to regulate the use of short-term operat­ viewing Chapter IX as part of its work in that have been accentuated or created by ing debt that carries beyond the end of the updating and revising all the Federal bank­ the current crisis and other developments fiscal year. At a minimum, such laws should ruptcy statutes. We urged the Bankruptcy since ACIR's study. require that any short-term operating debt Commission to include our recommended revisions in its proposals for amending ACIR'S FINDINGS AND RECOMMENDATIONS remaining unliquidated at the end of the fiscal year should be charged against general Chapter IX. The ACIR study of city financial emer­ debt limits and provision for its retirement ISSUES AND NEEDS ll.LUMINATED BY gencies, which evaluated 30 cities with seri­ be automatically i.ncluded in the next year's NEW YORK CRISIS ous financia.l problems, revealed that, in budget. The Commission further recommends As I will indicate in my subsequent re­ general, the fiscal problems facing cities that those States which presently have stat­ marks, the New York crisis, the current need not cause a financial emergency in the utes regulating short-term operating debt municipal bond market condition, and cer­ technical sense, provided local financial take immediate action to enforce them tain other recent developments have spot­ management is reasonably good and provided strictly." lighted five areas that need further attention. there is no major national economic depres­ Recommendation No. 3. Locally Admin­ sion. Indeed the survey of 30 cities failed FEDERAL ASSISTANCE CRITERIA AND istered Retirement Systems-The State Role. CONDITIONS to locate any cities in which conditions "The Commission concludes that under­ were such that timely action by local, or in funded, locally administered retirement sys­ ACIR's city financial emergencies report a few cases, State officials could not avert or concluded not only that the State should promptly relieve a financial emergency. tems pose an emerging threat to the finan­ cial health of local governments. The Com­ bear the full responsiblllty for supervision THE WARNING t!IGNS mission recommends therefore that locally of municipal financial management and The review of financial operations of the administered retirement systems be strictly for providing assistance to local govern­ cities did reveal certain common character­ regulated by the States, or alternatively, be ments in financial emergencies, but that istics for those on the brink of fiancial trou­ consolidated into a single State-administered they had the financial capacity to do so if ble. Most important among these charac­ they established e1Iective warning systems system. At a minimum, States should re­ and took prompt corrective actions. Our teristics were: quire substantial funding for all local sys­ An operating fund revenue-expenditure report did acknowledge that the States' fi­ tems based on a reliable computation of full nancial capacities might be inadequate in imbalance in which current expenditures funding requirements." the event of a major depression. significantly exceeded current revenues in The supporting language called for atten­ one fiscal period; The New York crisis, in our opinion, does tion to three factors that are causing rapid not invalidate ACIR's conclusion reached A consistent pattern of current expendi­ increases in pension costs: substantial pay tures exceeding current revenues by small two and one-half years ago. New York increases, costly benefit increases, and more State, we believe, could have prevented the amounts for several years; employees retiring early or on disability An excess of current operating liabilities New York City emergency and rendered any pensions. necessary assistance if it had taken the legis­ over current assets [a fund deficit]; Recommendation No. 4. State Action in Short-term operating loans outstanding at lative and supervisory actions we contem­ Case of Financial Emergency. plated. However, the New York crisis pain­ the conclusion of a fiscal year [or in some "The Commission concludes that the States instances the borrowing of cash from re­ fully reminds us that most States have not are the logical providers of assistance to local equipped themselves to exercise fully ade­ stricted funds or an increase in unpaid bills governments in financial emergencies because in lieu of short-term operating loans]; quate supervision. New York has also demon­ States provide the basic constitutional and strated that an emergency in one State can A high and rising rate of property tax de­ statutory authority for the operation of local linquency; adversely a1Iect the nationwide market for governments. In addition, the credit and fi­ municipal securities, and that other State A sudden substantial decrease in assessed nancial reputation of the State and of all values for unexpected reasons. and local governments, especially those de­ the other local governments are adversely af­ pendent on the market for short-term Several other general conditions can <.ause fected by a credit failure of a local govern­ financial problems. One is the existence of operating cash, can be pushed to or over the ment within the State. brink in a market where there are no bids for an under-funded locally administered re­ "Therefore, the Commission recommends their securities. tirement system. Secondly, poor budgeting, that each State should establish by statute Given these newly recognized facts, it now accounting, and reporting techniques may a set of guidellnes to determine when the appears highly desirable that further re­ be indicators of impending financial prob­ fl.nancial condition of local government ne­ search be undertaken on the appropriate lems. In some cases, inadequate financial cessitates State intervention and to set forth Federal assistance role in such circumstances. 37504 EXTENSIONS OF REMARKS November 19, 1975 Among the primary questions to be addressed study of the intergovernmental aspects and only attractive to certain types of purchas­ are: without first giving the States and localities ers, primarily commercial banks, fire and 1. The standards or criterta for determining the opportunity to develop their own ma­ casualty insurance companies, and high tax when Federal assistance is required and chinery so as to determine through experi­ bracket individuals. justified; ence whether Federal supplementation is The 1969 credit crunch dramatically dem­ 2. The form of such assistance; necessary. onstrated this fact when credit shortages 3. The conditions attached; STATE-LOCAL PENSION SYSTEMS resulted in the banks serving their corpo­ rate customers first and reducing their mu­ 4. The arrangements for supervising or The New York crisis has increased aware­ enforcing such financial reorganizations and ness across the country that a number of nicipal bond purchases. Now, in 1975 we have the role of the State concerned; and public pension systeins provide inordinately a combination of circuinstances adversely 5: Whether standby Federal assistance ar­ expensive benefits, are underfunded, and affecting the municipal bond market with rangements should be continuously avail­ have suffered from poor administration and the result that some issuers cannot bor­ able or each future emergency, 1f any, han­ abuses. The crisis has also underscored that row and others are paying disproportionately dled sep.a.ra tely. the ultimate cost of certain benefits, particu­ high interest rates. The New York crisis has If the New York emergency results in uarly if inflation continues at high rates, wlll raised questions about the municipal bond Federal assistance, we will have one experi­ be monumental and in some cases beyond the instrument and the meaning of "full faith ece forged under pressuTe to deal with that financial capacity of the governments in­ and credit". The large Federal deficit is one specific circumstance, but further re­ volved. These alarming facts, of course, do tending to crowd out borrowers other than search concerning the type of machinery not apply to many well administered and ade­ the Federal government. Many banks and that would optimally cover the 50 State quately funded State and local systems. fire and casualty insurance companies have situation still appears highly desirable. Meanwhile, at the Federal level, the Con­ reduced their municipal bond purchases be­ cause their profits are down and it is not FEDERAL BANKRUPI'CY PROCEDURE FOR STATES gress passed the Employee Retirement In­ advantageous for them to hold as many ex­ President Ford has now proposed that the come Security Act of 1974, which regulates private sector pension systeins, and hearings empt securities. Hence, interest rates have Federal Bankruptcy Act be amended to add been pushed up by the need to enlarge the a chapter dealing with the adjustment of are now being held on the extension of this type of legislation to State and local public number of high tax bracket individual pur­ debts of major municip~lities, and Congress chasers. It was recently pointed out that, 1s currently considering such legislation. The employee systeins. The present hearings are not intended to result in legislation until while commercial banks in previous reces­ Administration proposal closely accords with sions made net purchases equal to 100 per­ ACIR's Recommendation No.5 on this exact after December 31, 1976, the deadline for completion of e. House study on the subject. cent of new municipal offerings, their net subject. purchases during the first half of 1975 only Despite their sovereign status and wide Among the major features of the private sector Act that could be extended to the represented 12 percent. taxing and other latitude, the New York ex­ In the aftermath of the 1969 credit crunch, perience shows that it is within the realm public sector are provisions establishlng minimum participation, vesting, and fund­ many State and local interest groups con­ of possibility that States or at least State sidered the taxable subsidized bond alterna­ instrumentalities could default under cer­ ing standards; benefit and contribution lim­ its; and reporting and registration require­ tive to tax exempt bonds, and a number tain circumstances. of such organizations endorsed the proposal. The question, therefore, arises as to ments. The New York situation and Congressional Their proposals typically provide that the whether the Federal Bankruptcy Act should State or local issuer would have the option be further amended to deal with the ad­ activity on pensions highlight several needs: 1. States should be moving expeditiously, to issue tax exempt bonds or a bond that justment of debts of States and State in­ would be taxable and in which the Treasury strumentalities. if they have not already done so, to take actions envisioned by ACIR's Recommenda­ would pay a large enough portion of the REGISTRATION AND REGULATION OF MUNl:CIPAL tion No. 3. Producing full and current in­ interest so that the issuer would break even BOND ISSUES formation on the benefits and funding re­ or enjoy a small gain. Such taxable sub­ Early in 1975 when the Securities Act quirements of State and local systems, re­ sidized bonds would compete with all other amendments regulating municipal bond viewing benefits, making certain that fund­ types of taxable securities in the market dealers were enacted, the Tower Amendment ing is adequate, and improving administra­ and therefore would be of interest to a much stipulated that issuers would not be required tion are essential steps. States which have broader range of purchasers than are ex­ to furnish directly or indirectly any applica­ local systeins should also be considering empt bonds. This proposal, in addition to tion or documentation with respect to their whether centralized State systeins are not widening the market for State and local se­ issues. There, furthermore, were strong state­ the best in the long run. curities, would improve the equity of the ments made by members of Congress and 2. So as to be fully ready and equipped to Federal personal income tax system, pre­ the Treasury that registration and regulation illuminate the cost effects of a Federal act sumably at no cost, or even a gain, to the of municipal bond issuers was not intended regulating State and local employee pension U.S. Treasury. or desirable. systems, individual States should be evalu­ ACIR in 1970 rejected the taxable sub­ Now, as a direct result of the New York ating the effects on their benefit patterns sidized bond proposal. However, the New crisis, Senator Eagleton has introduced a blll and costs 1f the Congress were to mandate York and other developments in 1975 have requiring cities and localities to register new changes similar to those now in effect for the shown that the market for State and local bond issues with the Securities and Exchange private sector. securities is increasingly vulnerable, and Commission, and the Ford AdminiStration 3. States should also be considering that consideration should once again be reportedly is preparing its own legislation to whether the private sector provisions passed given to the taxable subsidized bond pro­ require municipal issuers to supply infor­ by the Congress are meritorious for public posal, as well as other proposals for expand­ mation to investors! Secretary Simon stated employees. However, in doing so, the States ing the municipal market. to Congress that" ... we believe the time has should consider the whole benefit package THE ULTIMATE NEED come for a Federally-imposed uniform system and whether certain benefits for future em­ The New York City crisis has also illum­ of financial accounting and reporting by state ployees should be reduced or modified when inated a question that 1s far larger and and local issuers which sell a substantial they improve other benefits. Most impor­ fundamental than the five financial admin­ amount of securities in our capital markets." tantly, it should be recognized that only the Istration and system needs I have already The Secretary, in part, attributes his change States can custom tailor a new pattern and outlined. The question is, "What should be in position on this point to an exasperating, that there undoubtedly will be some benefit done to make our older central cities eco­ seven months of work by the Treasury that aberrations and substantial cost effects 1f nomically viable?" The central cities, of even then failed to corral full information on an overlay of Federal requirements is placed course, occupied center stage during the New York City's finances. on top of the widely VBirying State-local pen­ troubled 60's but have received less pur­ The Municipal Finance Officers Association, sion systeins. poseful attention thus far in the 70's. The which opposes Federal regulation of State While present signs are that there will not New York crisis is reminding us that thetr and local issuers, has developed full disclo­ be Federal action in this field until at least situation is probably as serious as it ever sure guidelines and other elements of a plan 1977, this does not mean that States and was and in some respects more so. that presumably would rely on the States or a their local governments have plenty of time The elements of the central cities prob­ voluntary association of issuers for in which to reevaluate their systems. The lem are too well known to require reciting. implementation. types of changes involved in many cases The probleins, to be sure, are partially at­ In this rapidly moving field, the intergov­ could easily take two to five years to tributable to local failures, but State and ernmental question, of course, is whether accompllsh. Federal 8/Ctlons and oinissions appear to ac­ there should be any Federal regulatory role ADEQUACY OF MUNICIPAL BOND MARKET count for the lion's share. Among the solu­ and, 1f so, how it can be circumscribed so as Since at least 1969, State and looal govern­ tions are many of the structural and fiscal to not detract from or weaken State respon­ ments have recognized that the market for changes envisioned by scores of recom­ B1..£!_11ty for supervising local government fi­ their bonds at reasonable interest rates will mendations adopted by ACIR. However, it nancial administration. A major concern is be inadequate under certain circuinstances. does appear that there is a need for a fresh that action may be taken without ample This is true because the tax exemption is and deep look at the older central cities' November 19, 1975 EXTENSIONS OF REMARKS 37505 situation if we are to avoid future crisis marriage was the exception, almost always an unchecked. We must still deal with these of the New York City variety. embarrassment. Today we're still proud of problems. ourselves but we're proud of our collective There are many examples that can be self. it's not "we" and "them," it's "us," an ''us" that now cuts across political, racial, given that shed light on the ongoing marriage and every other line. So how can problems that OSHA poses for private THE TOLEDO WAY New York City be "them"? industry: In sum, many in the Midwest equate mu­ One large company had to adjust nicipal bankruptcy With individual bank­ thousands of fire extinguishers through­ HON. ELIZABETH HOLTZMAN ruptcy; both are to be avoided at all costs OF NEW YORK out its plants and buildings so that they because in either instance it is the signal would be exactly 5 feet from the floor as IN THE HOUSE OF REPRESENTATIVES that there is no longer the abUity or Willing­ measured from their highest points. The Wednesday, November 19, 1975 ness to fight to recapture self-respect and the confidence of one's peers. But in our view job was extremely expensive, requiring Ms. HOLTZMAN. Mr. Speaker, Repre­ the very worst that can befall either an much drilling through steel. sentative AsHLEY, chairman of the Sub­ individual or a community is to be forced The manager of another firm provided committee on Economic Stabilization, unwillingly, while there is still the will and more extinguishers than necessary and has worked tirelessly to produce legisla­ capabilit y to recover, into the submission of ·carefully hung them at the required bankruptcy. height. He was fined anyway-for setting tion to avert a New York City default, The ultimate irony, in this view, is for our and spare the Nation the disastrous eco­ nation's largest and greatest city to suffer one extra extinguisher on the floor. nomic consequences that would result. this forced denigration solely on the insist­ One company was required by terms In an article which appeared in to­ ence and responsibility of a. national leader of a defense contract to lock exit doors day's New York Times, Representative who constantly asserts that the rightful role for security reasons. It was ruled that AsHLEY explains simply and clearly some of states and municipalities has been under­ this practice violated firesafety require­ of the reasons for preventing a default. cut and eroded by a. usurping Federal Estab­ ments-and a fine was imposed by the I commend his views to the attention of lishment. Agency. It may be well and good for New York City Employers are required to color code my colleagues. to become an object lesson for the rest of Representative AsHLEY's article fol­ the country, Washington included. But if the switches red and green even though they lows: health of the profligate is of any concern, may already have their equipment color THE ToLEDO WAY surely a. public flogging is inappropriate. coded with different colors which their (By Thomas L. Ashley) New York City, after all, is already in the employees have been using for years and WASHINGTON.-! suppose that how a Mid­ most painful kind of receivership. Further­ with which they are already familiar. westerner regards New York City's plight is more, Federal legislation, as a condition for Farmers must install roll bars on their largely a. matter of perception and a. reflec­ pre-tlefault assistance, would insist on even tractors. No provision is made for the tion of his background. more onerous sacri:flces to assure that past many tractors on which a roll bar can­ When the banks closed in the early 1930's, fiscal irresponsib1lity be corrected and a bal· anced budget restored. Is the pound of flesh not be attached. In many instances the my father lost his structural-steel business roll bars, which cost $200 or more, cost in its entirety because he owed one of the really necessary? closed banks $20,000. He had repaid more It's not to the working people who drink more than the tractors are worth. And in than $500,000 but he defaulted on 1lli; final beer at Jim and Lou's Bar on Lagrange Street the vast farming region of the Great payment, so the bank foreclosed and took in Toledo, every afternoon. They're smart Plains, farm tractors are never driven over the enterprise "for one dollar and other enough to want New York City to have a on anything but completely level ground valuable considerations," none of which I've chance to work its way back to solvency and blacktop roads, thus obviating the ever been able to identify. without benefit of their tax dollars and they need for any roll bars at all. My father then started a tiny fabricating simply do not believe this can best by accom­ plished by pushing the city into bankruptcy. It has been noted that literally billions shop and for nearly a. decade ours was a. typi· of dollars have been spent by private in­ cal middle-class Midwestern family, scram­ bling with considerable ingenuity to remain dustry to achieve OSHA specifications for solvent. Accounts went unpaid, bill collectors OSHA occupational safety and health-$13 bil­ were avoided, promises made and broken. The lion alone to meet noise level specifica­ immediate day-in, day-out concern was to tions. This investment is required by avoid bankruptcy because this was regarded HON. JOHN H. ROUSSELOT OSHA to "protect the worker while on as a permanent blot on one's respectablllty, O.F CALIFORNIA the job." It is interesting to note, how­ financial and otherwise. IN THE HOUSE OF REPRESENTATIVES ever, that studies have been made indi­ The only reason that my father and most other debtors escaped the humiliation of Wednesday, November 19, 1.975 cating that non-job-related diseases ac­ bankruptcy proceedings is that there were count for about 96 percent of the time more creditors decent enough to walt, often Mr. ROUSSELOT. Mr. Speaker, last lost due to disability. In other words, all at considerable risk, than those who Monday this body took a much-needed of the billions of dollars spent to comply wouldn't. step toward bringing under control the with the OSHA mandated job-safety re­ This is what allowed a great juggling game most notorious and unwieldy of all the quirements apply to only 4 percent of the to work. It always struck me as ironic that .regulatory agencies. I am referring, of disability caused absenteeism. the bad guys got paid first and the good guys course, to the passing of H.R. 8618 which Mr. Speaker, I would suggest that these last, but I've since come to learn that mem­ provided for on-site consultation to em­ ories are long and that there's a. system of billions of dollars that are now being rewards and penalties constantly at work, ployers to help them comply with the spent on unnecessary and silly OSHA even long after the fact. regulations and requirements imposed on regulations and rules can be better spent Then there's the matter of punishment. them by the Occupational Safety and by private industry in other areas. In­ The Midwestern ethic here is that 1f you Health Administration-OSHA. These stead of repainting switches that do not suffer your own sins, that's probably enough. types of consultation services will aid need repainting, I would think that in­ My Toledo community, beset by labor vio­ greatly to ease the burden of private dustry could use the money to make lence during the 1930's, was effectively red­ businessmen who try to decipher and lined for nearly a quarter of a century there­ much needed capital improvements in after by corporate America. comply with the nebulous edicts of areas that create jobs and bolster the But in the late 1950's, that same corporate the seemingly omnipotent Occupational economy. America. suddenly realized that only two Safety and Health Administration. In a time when industry is shorter on other cities in the United States had better H.R. 8618 did not go far enough, how­ capital funds than it has been in many labor records than Toledo on the basis of ever. Still left to cope with are many of years, when our Nation is far behind man-hours lost by reason of strikes. We had the arcane and absurd rules and regula­ other Western countries in terms of real made our mistakes, paid for them ourselves, tions. The power and breadth of OSHA learned the lesson and profited thereby. growth and capital formation, let us get There may be another thing that's a. part was left untouched by the reform bill rid of the inane and absurd regula­ of a Midwesterner's perception or under­ that was passed Monday. The ambigui­ tions that OSHA imposes on private in­ standing of New York City. Before World ties of language of many of the regula­ dustry. Let us repeal this economic War n, Toledo was a. community of separate, tions are still there and the arbitrary sponge and vex to the private employer fighting, proud ethnic neighborhoods. Inter- power of the OSHA inspectors continues and let business be about its "business." 37506 EXTENSIONS OF REMARKS November 19, 1975 MRS. GLADYS BAGLEY, ONE OF a. part-time employe of the Arizona Gazette, ing to point out some of the film's bias and ARIZONA'S OUTSTANDING WOMEN now The Phoenix Gazette. intentional inaccuracies. JOURNALISTS In 1936, she was made a. full-time employe. It was impossible in half an hour to deal Her appointment as women's editor was with every lie and distortion. The attached made in 1961. paper will give you some idea of their magni­ HON. SAM STEIGER Her duties included entertainment editor, tude. OF ARIZONA women's club editor and assistant society It is, of course, possible to produce a film editor. portraying worse living conditions in parts IN THE HOUSE OF REPRESENTATIVES She edited "Arizona. Women," the state of almost any country in the world. What­ Wednesday, November 19, 1975 magazine for the Arizona. Federation of Busi­ ever his differences of opinion and interpre­ ness and Professional Women, the State Bul­ tation of South Africa., surely no right Mr. STEIGER of Arizona. Mr. Speaker, letin for Arizona. Wesleyan Service Guild, minded American can accept that a. film dis­ I regret to report the passing on Novem­ and she wrote columns for "The JonquU," seminating objectively determinable lies, be ber 11 of Mrs. Gladys Bagley Schaefer, an Epsilon Sigma. Alpha. Sorority Interna­ shown, without a.n opportunity to redress the one of Arizona's outstanding women tional Magazine. balance, on public television and in schools journalists. She had been employed by Mrs. Schaefer was the recipient of nume­ and universities across this country. Where rous awards. She was a. member of several freedom of expression includes the freedom the Phoenix Gazette :or 46 years, and organizations including the Arizona Press to disseminate falsehoods, it should be pos­ one of her coworkers, :Mr. Jay Brashear, Women, Phoenix Writer's Club and the Ari­ sible to gain the right to repudiate and dem­ has written a fitting editorial tribute for zona. Alumni of Dakota. Wesleyan University. onstrate such inaccuracies. her. Services will be a.t 1 p.m. Friday in the For instance, when the film "Last Grave I ask that Mr. Brashe~u·s editorial, First United Methodist Church, Central and a.t Dlmbaza" was screened by B.B.C. Tele­ along with the story of her death, be Missouri. wlll be in Greenwood Memo­ vision in Britain last year, arrangements were reprinted in the RECORD. rial Park. A L. Moore and Sons is in charge made to show "Black Man Alive", a. film The articles are attached: of arrangements. produced in my country which rebuts the allegations made in "Last Grave a.t Dimbaza". [From the Phoenix Gazette, Nov. 12, 1975] My office is still negotiating with the pro­ GLADYS BAGLEY SCHAEFER DIMBAZA REBUTTED ducers of the U.S. programme to screen Gladys Bagley is dead, and in the "Black Man Alive" and I would appeal to you, hanging so heavily in The Gazette's offices in application of the fairness doctrine, to use today it simply isn't possible to pay a fitting HON. LARRY McDONALD your influence to ensure that balance is re­ tribute to her. She was remarkable in so OF GEORGIA stored to the vast audience of viewers who many ways, and she radiated always a gentle IN THE HOUSE OF REPRESENTATIVES have been presented with a. false, slanted glow of love that brightened so many harsh and a. one-sided picture. days for other people. Wednesday, November 19, 1975 Sincerely yours, Where to start about Gladys Bagley Mr. McDONAI.D of Georgia. Mr. D.F.BOTHA, Schaefer, as she was known in her nonpro­ Speaker, a constituent has drawn my Ambassador. fessional life? Her accomplishments as a. journalist over a. 40-year career fill typewrit­ attention to a recent Public Broadcasting FACT PAPER: LAST GRAVE AT DIMBAZA ten pages. Her good works with civic organi­ System showing of a film called "Last Many Americans have expressed their con­ za. tions fill pages more. Grave at Dimbaza" which presented it­ cern about the film "Last Grave at Dim­ Yet to list part or all of that biographical self as showing everyday conditions in baza," recently telecast by the Public Broad­ data. would say little about the magnificent South Africa, but which was in fact a casting System. woman who started with The Gazette as a highly biased production. It is interest­ When the South African Embassy was part time employe in 1929, became women's ing to note that PBS funds are in large first told of the program it was suggested editor in 1962 and worked most recently part provided by taxpayers' money. to the producing station, WNET-TV in New as the editor of Family News, our employe York to include the factually correct South newspaper. My constituent, concerned about the African film, "Black Man Alive," as well, to Perhaps it would be best simply to say that international Communist-inspired prop­ balance the inaccuracies of "Last Grave a.t Gladys was a poet in the finest sense that aganda campaign against South Africa, Dimbaza.." While welcoming the participa­ word can be used. She combined a zest for points to the fact that violations of hu­ tion of the South African Ambassador, Mr. life, a. love of people and a way With words to man dignity and rights in South Africa, Roelof F. Botha, in a panel discussion, we create smiles even in moments of sorrow. when they occur, are reported to the nonetheless felt that Dimbaza should also For those whose paths in life never crossed world by the free South African press. be visually replied to. with Gladys Bagley Schaefer's, it is possible "Last Grave at Dimbaza" was screened on to say only that they missed one of God's And he called my attention to an excerpt BBC television in 1974. At the same time finest creations. Those of us fortunate enough from a November 12 speech in the U.N. our own production, "Black Man Alive," was to have known her must suffer a. painful loss, by U.S. Ambassador Daniel P. Moyni­ also screened, followed by a. panel discus­ mixed With a. legacy of joy she left in com­ han: sion in which white and black South ing our way and staying in our midst for so In the Monthly Bulletin of the Interna­ Africans participated. many delightful years. tional Press Institute of June 1975, Mr. Frank Allegedly made in secret and smuggled out Barton, Africa. Director of IPI, is reported as of South Africa a few years ago, Dimba.za. [From the Phoenix Gazette, Nov. 12, 1975] having told the assembly of that impeccably purports to reflect the truth about· condi­ FORMER GAZETTE WOMEN'S EDrroR DIES AT neutral and scrupulous organization: "The tions in the Ciskei and in South Africa in AGE 73 unpalatable fact is---end this is something general. Mrs. Gladys Bagley Schaefer, 73, former that sticks in the throat of every self-re­ What has been the reaction of South women's editor of The Phoenix Gazette and specting African who w1ll face it-that there African blacks to Dimba.za.? We quote Mr. a. member of the newspaper's staff since 1929, is more press freedom in South Africa. than C.H.T. Lalendle, a. black man who lived 1n died yesterday in a. local hospital. in the rest of !Africa. pu.t together." Dimba.za while principal of the Dimba.za school. He said that the film depicts many Mrs. Schaefer had been in lll health in So recent months. much for claims of the filmmakers scenes which are "blatant lies as far as the Long active in numerous groups, she for having had to make a "secret" film Ciskei is concerned". helped organize 20 Business and Professional and "smuggle" it out of the country. Mr. La.lendle made his statement in Brit­ Women's Clubs, 15 chapters of Epsilon Sigma. In the interests of fairness and ac­ ain last year and at the same time ra.ised Alpha Sorority, 6 Camp Fire groups, 6 Wes­ curacy, here is the text of a letter from a. few very interesting questions during an leyan Service Guilds, an Episcopal Business the South African Ambassador to the interview with the press. Women's Club, Arizona. Poetry Society and "Why did these malicious perverters of United States to the constituent which the truth not visit the Clskei government to Owlets, a national young writers group. introduces his Government's rebuttal to She is survived by her husband, Richard secure first hand information about Dim­ H. Schaefer, and a. son, Jesse F. Bagley Jr. the charges made by "Last Grave at ba.za?" Mr. Lalendle asked. "Why did they In recent years, Mrs. Schaefer had been Dimbaza." omit a. school, a clinic, a. shop, a factory and with the public relations department of The material follows: a social center, all about 650 feet away from the area shown in the fUm?" Phoenix Newspapers Inc. Her duties included EMBASSY OF SoUTH AFRICA, communications manager and editor of Fa.m­ Washington, D.C., November 11, 1975. Why indeed? The film makers un­ doubtedly did so purposely for it would not Uy News, a. publication for Gazette and Re­ The Public Broadcasting System recently public employes. have helped their cause at all had they shown arranged for a nationwide shoWing of a. high­ Dimba.za.'s six schools, four churches, fac­ Mrs. Schaefer was born in Salem, S.D. She ly biased propaganda. film of South Africa tories and the many four and two roomed and her first husband, Jesse F. Bagley, moved entitled "Last Grave at Dlmba.za.". I partici­ houses with all modern fac111ties, where the to Arizona. in 1924, and in 1929 she became pated in a. panel discussion after the screen- township's 9,000 residents 11ve. November 19, 1975 EXTENSIONS OF REMARKS 37507 " 'Last Grave at Dimbaza' is a well cal­ tion classes, special schools for the physically services, has led to considerable progress in culated perversion of the truth intended to handicapped and institutions for higher ed­ this respect. disgrace Dlmbaza", added Mr. Lalendle, who ucation. According to the London Sunday Times of is presently a lecturer at the University ot Apart from almost forty teacher training September 2, 1973, the total number of tu­ Fort Hare in Cisket, South Africa. colleges and three universities, there are berculosis among 'the black population of Contrary to what this film shows, Dimbaza technical colleges, technical schools, trade South Africa in 1969 was 413.8 per 100,000 is a thriving community in the Ciskei where, schools, vocational schools and industrial and in 1970 366.5 per 100,000. According to according to a report in the Johannesburg training centers. Vocational training includes the commentary in "Last Grave at Dimbaza,'' Star, within two years there will be more in­ 26 different trades. the number is 1 in 5, or 20,000 per 100,000. dustries than the local labor force can sup­ The percentage of the white South African The remaining comments made in the ply. nation at school is 22.1, a figure which can original sound-track of "Last Grave at In the words of the former Chief Minister normally be accepted as representing all Dimbaza" which are contrary to fact, are of the Ciskei, Mr. Lennox Sebe, on the oc­ children of school-going age in any European as follows: casion of opening the township's fifth indus­ country. The percentage .of the black peoples COMMENT trial plant, the future for Dlmbaza was so of South Africa at school has reached 19. The The most fertile land lies in the white bright that it "will only be two or three averages for Europe and Africa are 17.4 and years before it will be possible to decentral­ area-the Banut Homelands are already 9.7 respectively (Unesco figures, published in overpopulated. ize industries from there to other growth 1971). FACT points in the Ciskei". School attendance for black children is Even the Rand Dally Mall, which does not still voluntary in South .t\..frica, but in view The total surface area of the Bantu Home­ support the government's policies, has car­ of the above figures the question of com­ lands comprises approximately 38.5 million ried reports critical of the film. According to pulsory attendance has become rather an acres-an area greater than England and columnist Patrick Laurence (OC'tober 5, 1974) academic question. The latest census figures Wales together. The largest Homeland, the "Dimbaza, once a dumping ground and a (1970) show that about 80% of black chil­ Transkei, comprises 9.4 million acres­ natural target for anti-apartheid protago­ dren of school going age are in fact attend­ larger than The Netherlands, Belgium, Israel nists . . . could become the showplace town­ ing school. or Switzerland. The population density of ship of the Ciskei". The fact that the goal of 100% has not yet the Transkei is 74 persons per square mile, Describing the developments in the town­ been reached, is partly the result of the high compared to 339 for Great Britain and 584 ship-the housing program (the construc­ population growth rate (3.5 % per year) and for The Netherlands. tion of hundreds of four roomed homes partly due to the fact that this age group If 20 inches of rain per year is regarded which would be rented out at $8 per month), comprises 28% of the total black popula­ as the minimum requirement for successful the six schools which absorb some 4,000 chil­ tion, compared to only 2Q-22% in the West­ agricultural cultivation without irrigation, dren and Dimbaza's employment opportuni­ ern world. 7 5% of the surface area of the homelands ties which have caused a tremendous vol­ The film also deals with housing. World can be regarded as most suitable for this untary influx of workers, Mr. Laurence re­ War II triggered a massive industrial revolu­ type of agriculture compared to 35% of marked: "With a birth rate of 65 per 1,000 tion in South Africa. In particular, this led South Africa as a whole. against a death rate of 18 per 1,000, Dlmbaza to a large-scale population movement from In South Africa only 62,500 square miles is bustling with life." the black homelands into the mining and in­ falls within a zone with moist temperature This then, is the real Dimbaza.. A township dustrial complexes of South Africa. climat~f this amount approximately in the Ciskei, 13 miles from King Williams­ Between 1936 and 1970 the urban black half lies within the black homelands. Sev­ town "'here several industries have been es­ population of Johannesburg alone increased enty six per cent of the land in the home­ tablished and where the potential for further by some 300%. In the two decades 1951-71, lands receive a minimum of 20 inches of industrialization is high as a result of its excluding dwellings and hostels provided by rainfall compared to the annual average ideal location and climate. the mining industry, 302,000 houses were rainfall over the whole of South Africa of A township which is rapidly growing in all constructed in urban complexes outside the 17 inches. The 156,250 square mile dry, semi­ respects and which faces all the normal black homelands. During the Sixties the em­ desert Karoo, for example, falls totally with­ problems of any other town or city in South phasis shifted to the homelands themselves in the white area. Africa. The allegations, however, that its and in the decade 1962-72 more than 100,000 COMMENT population was rapidly dying out and that it houses were built in the various homelands. Per capita annual income of the popula­ was a den of misery, are definitely not borne All new townships are constructed to meet out by the facts. tion in the homelands i.s only $35, making certain minimum standards. These townships them among the poorest in the world. "Last Grave at Dimbaza." does not, how­ have churches, schools, community centers, ever, deal with Dimbaza alone. Only one creches, clinics, shopping centers, cinemas, FACT tenth of the film, in fact, deals with the parks and other recreational facilities. The per capita annual income of, for ex­ township. The remainder is filled with twisted In the decades since World War II South ample, the Transkei and Wwazulu in 1973 facts and untruths about South Africa in Africa has provided a comprehensive net­ was $200 and was therefore much higher general. work of health and hospital services for her than the per capita annual income of, for We are told for example, that 45% of black black peoples. Medical and hospital fees paid example, 20 independent states in Africa children do not go to school. That 50% of by black people vary from province to pro­ (Burundi, Chad, Central African Republic, the black children die before the age of five vince and range according to the category of Dahomey, Ethiopia, Gambia, Equatorial and that only $16 million is spent annually patient. They are, however, usually nominal. Guinea, Lesotho, Malagasy, Malawi, Mali, on education for black children. Out-patients normally pay from 60 to 70 Niger, Nigeria, Rwanda, Somalia, Sudan, Even a cursory glance at otficial statistics American cents per month or 35 Amert.;an Tanzania, Togo, Uganda, Upper Volta and shows how untrue these allegations are. cents per visit, irrespective of the nature of Zaire (Source: Europa Year Book-1973, Vol­ In 1973 alone, some 3.3 million black chil­ the illness or the length of time such treat­ ume 1 and the Johannesburg Star's African dren (now closer to the 4 million mark) were ment takes and irrespective of the qualifica­ News Service) . attending school in South Africa. Given a tions of the doctor. Medicine is provided free For the residents of all the homelands in total black population of some 15 million at of charge. South Africa the following is the situation that time, the ratio is nearer to four out of At present there are 105 hospitals in the according to the Minister of Bantu Admin­ every five black children (or one out of every black homelands as well as nearly 550 clinic istration and Development, Mr. M. C. five per head of population) attending school. centers. Medical care is also provided exten­ Botha-"From 1960 to 1973 the per capita in­ If the figures supplied in sively at hospitals and clinics in the white come of the Bantu within the homelands "Last Grave at Dimbaza" were true, the black part of South Africa, where more than 80,000 increased from $87 per head to an estimated population in South Africa should be de­ hospital beds are available to non-white amount of $213-an increase of 145% creasing rapidly. Instead we find a growth patients. (Hansard, No. 7, 16-20, September 1974). rate of over 3% per annum-from 10 million COMMENT in 1960 to 15 million in 1970 to over 17 mil­ Dimbaza also deals wtih two diseases, tu­ berculosis and Kwashiorkor. There is a high Like all the Bantustans the Transkei is lion today. incidence of Kwashiorkor-mainly a protein In 1972-73 the South African government desperately poor and underdeveloped. spent over $74 million on education for the deficiency dtseas~n the African continent. FACT blacks and in 1973-74 over $103 million, near­ The incidence of Kwashiorkor in South According to the Johannesburg Star (19 ly a fourfold increase in one decade. Africa has declined and on the basis of cases December 1972) the budget of the Transkei South Africa has chalked up phenomenal notified the incidence appears to have de­ for that particular year amounted to $66 mil­ achievements in the field of black education. clined to less than one per cent. The average lion (presently $100 million). This amount The following educational institutions for for the rest of Africa has been estimated corresponds favorably with the budgets of black peoples have already been established: to be as high as 25%. For many years tu­ the following sovereign ind_ependent African Lower and higher primary schools, junior berculosis has been the main single public states: and senior secondary schools, teacher train­ health problem in South Africa. A well-con­ Botswana, $42 million; Burundi, $26 mil­ ing schools, vocational and technical train­ trolled service provided by the State De­ lion; Central African Republic, $57 million; ing schools, evening schools and continua- partment of Health providing entirely free Dahomey, $22 million; Equatori-al Guinea, 37508 EXTENSIONS OF REMARKS November 19, 197_5 $17 milllon; Gambia., $14 milllon; Lesotho, FACT DOUBLE STANDARD FOR $17 milllon; Mauritania., $55 milllon; Niger, This statement is totally unfounded. An AMNESTY $62 million; Rwanda, $21 million; Swaziland, extensive education inspection system is con­ $36 mllilon; Upper Volta, $54 milllon. tinually busy maintaining the level of edu­ The income of the economically active cation in all schools-black and white. In HON. ELIZABETH HOLTZMAN homeland inhabitants in 1970 tota.lled $1,234 addition, black pupils are required to pass OF NEW YORK million compared to $1,916 million in 1973, exactly the same exa.mlnatlon as white pu· IN THE HOUSE OF REPRESENTATIVES an increase of 55% (Hansard, No. 7, 16-20 pUs. September 1974). As was the case with all white universities, Wednesday, November 19, 1975 The homelands have in the thirteen years so the young black universities have for up to 1973 enjoyed an annual growth rate many years been under the supervision of the Ms. HOLTZMAN. Mr. Speaker, the of 7.2%, more than twice that of Zambia. and University of South Africa which has ensured United States has introduced a resolu­ Botswana and three times that of Malawi. that the quality of education and the level tion calling for unconditional amnesty COMMENT of competence required by examination has for all political prisoners around the In South Africa there 1s one doctor for been ma.lntalned. For both black and white world. At the same time. the United every 400 whites and one doctor for every universities external examiners are ap­ States continues to penalize its own 44,000 blacks. pointed. citizens who protested participation in FACT COMMENT the Vietnam war. It 1s misleading to say that non-white The system of job reservation reserved '8.11 The following article from the No­ South Africans are treated only by non-white so-called skllled work for whites. There is vember 14, 1975, New York Post points doctors, while white South Africans are not one black registered apprentice in the out the inconsistency of these two treated only by white doctors. When one country. positions . I commend it to your divides the total population of South Africa. FACT by the number of white and black doctors attention: the applicable figures are one doctor for 1,970 From the beginning of January this year DOUBLE STANDARD FOR AMNESTY? inhabitants and this figure in fact accurately training centers apart from the usual tech­ Introducing a draft resolution calling upon represents the actual situation. Very nearly nical schools have been established for black "all governments to proclaim an uncondi­ a.ll white doctors either have mixed practices employees in industry. In order to stimulate tional amnesty by releasing all political or work exclusively among non-white pa­ the education of black employees in so-called prisoners . . .,.. UN Ambassador Moynihan skilled categories the South African Govern­ tients. has decried hypocritical endorsements of Nearly $261 mllllon is spent annually by ment introduced in its 1974-75 budget a human rights by autocratic states as "selec­ South African authorities on health services number of attractive tax concessions to em­ tive morality.'' Unfortunately, he overlooked for the black population. There are 160,000 ployers who contributed in this education. certain gross U.S. deficiencies in that connec­ hospital beds available for the black popula­ Negotiations between employers a.nd trade tion, especially those arising from punitive, tion-a rate of 8.8 beds per 1,000 non-white unions were continually opening up fresh unrelenting reprisals against Vietnam war inhabitants compared to the international avenues of employment for black workers. resisters. norm of the World Health Organization It should be clear from the above that the As defined by the Ambassador in the elo­ which 1s 5 beds per 1,000 inhabitants. film "Last Grave at Dimba.za." presents a. mis­ quently phrased resolution, political prison­ COMMENT leading picture of South Africa., to say the ers are "persons deprived of their liberty pri­ least. Under the Master and Servant's Law a marily because they have ... sought peace­ black in many industries ca.n go to jail for As all the facts and figures about South ful expression of beliefs . . . at variance being absent from work, for trying to change Africa are freely available, one can only as­ with those held by their governments or have his job before his contract expires or for sume that the producers created this false sought to provide legal or other forms of and slanted film with full intent. non-violent assistance to such persons .. .'' refusing to obey. commands. Like all countries, the Republic of South By any civilized standard, that definition FACT Africa. has its difficulties and problems and, should be more than adequate to include The above-mentioned legislation was, be­ as in all other countries, the people in South Vietnam draft resisters who rejected the ig­ fore it was removed from the Statute Books Africa, both black a.nd white, are doing their noble, demeaning conditions of the Ford during the last Parliamentary Session (Au­ utmost to iron out these problems. "clemency" proposal. Yet Leonard Garment, gust-October 1974) only applicable to work­ This includes the removal of discrimina­ the chief U.S. representative on the UN Hu­ ers in the agricultural sector. The Factories, tory practices which lnhlbit tha.t improve­ man Rights Commission, maintains that the Machinery and Building Work Act of 1941, ment of relations between them. Galls are projected amnesty could not apply to the originally passed in 1918, and the Shop and repeatedly being made by the South African Vietnam men. Offices Act of 1964, regulate the hours of. Prime Minister and other public officials for Why not? What are the delicate distinc­ work and other service requirements of white the universal respect of the human dignity tions involved? What kind of "peaceful ex­ as well as non-white workmen in industry of every person, irrespective of race or creed. pression" is more meaningful than their and commerce. In the United Nations Security Council conscientious objection? COMMENT last year the South African Ambassador -Who qualifies as a "political prisoner"? The Black workers have no protection under stated categorically that his Government did grim term obviously applies to the uncounted the law. not condone discrimination purely on the inmates of wretched cells and brutish to­ FACT grounds of race or color, tha.t such discrimi­ talitarian labor camps maintained by many According to the Bantu Labour Relations nation could not be defended and that a member of the United Nations--including everything would be done to move away from some of those in the highest official fa. vor Regulations Act to 1953, provision is made with Washington. Should it apply any less for means whereby the wishes of Bantu discrimination based on race or color. While these sincere efforts are in progress to Americans who were, indeed, "a-t vari­ workers can be brought to the attention of ance" with their government's Vietnam pol­ the employer, the Central Bantu Labour by the peoples of southern Africa to remove obstacles which endanger peace and security, icy and are either stlllin ja.ll, denied the right Board, the Wage Board and the Minister of to return to their homeland freedom, or bear Labour. The Machinery for the Arbitration irresponsible initiatives are being planned by groups or countries which have no direct the stigma of dishonorable discharge? of Bantu Labour Disputes exists in the form The world's prisoners of conscience are an of a. Central Bantu Labour Board, Regional interest a.t stake in the area and are com­ mitted to principles which can have dire international society, whether they are be­ Bantu Labour Committees, Liaison Com­ hind bars or political refugees from their own mittees and Works Committees. During 1973, consequences in Africa. and wider afield. Films llke "Last Grave at Dlmbaza" do countries. Article 18 of this Law was amended giving As an appeal to the most generous in­ Bantu employees the same strike rights as nothing to aid anyone in South Africa. nor, in this age of detente, mutual understand­ stincts of mankind, the U.S. draft resolution white employees. seeks· to embody honorable ideals. It was Legislation is presently being planned by ing and peaceful co-existence, to help truly interested parties to understand the real obviously offered at this time as a response the South African Government giving black to the execrable pieties and frauds in which workers a better bargaining position in de­ problems f'Sicing black and white leaders in South Africa. some UN members freely indulged during the termining wages and service conditions. The debate on the "Zionism" resolution. proposed legislation, which will amend the They serve only to polarize differences and But In the end, tt lacks the moral weight Bantu and Labour Relations Regulations exacerbate rela.tions. South Africa. is a coun­ that would give lt strength and durability. Act, has already been published. The Blll, try which has always maintained friendly Washington's harsh treatment of the Viet­ which proposes the formation of black in­ relations with the United States and is of nam resisters and its tolerance of "friendly" dustrial committees on a regional basis, pro­ significant importance both strategically and despots around the globe make its preach­ vides for agreements reached with employees as a source of vital raw materials. The asplra.­ ments on political prisoners as vulnerable as in areas where there is no industrial coun­ tions of its people to solve their own prob­ the Orwellira.n double-talk to which it is ad­ cn to be made legally binding. lems peacefully is in accordance with the dressed. Example can mean infinitely more COMMENT United states' own traditions O

Population Total GNP (million) (billion) GNP per head Annual GNP growth 196G-73 (percent)

215 $1,500 $7,000 4. 550 2, 300 (1) From 3 (Britain) to over 10. 550 850 1, 550 5 to 10. 150 200 (2} Erratic. 2, 550 650 250 Generally around 5.

TotaL _____ -----_------4, 000 5, 500 1,400

1 From $3,300 (Britain) to $7,000. Note: Annual total GNP growth from 196G-73, generally around 5 percent 2 From $300 (Nigeria) to over $10,000.

THE COMING GLUT OF FOOD Asian nonproducers) eat more grain than 25 years (ie "known reserves" should in­ The present world political system is that all the world's people. With apologies to cows, clude all the already-used metals eventually nearly all poor countries (under an annual our children will move to rearing food by available for recycling); most of the indus­ $500 a. head) rig their economic policies conversion of cellulose by enzymes and of trial materials used today were not even con­ against their farmers-and then find that petroleum wastes by single-cell high-protein ceptually recognised a short time ago, and the universally-high elasticity of supply in organisms. Listen to America's J. Leon most of the materials that will be used in the agriculture means that their countries are Potter: coming century are not conceptually recog­ very short of food; while nearly all rich coun­ "A pound of bacteria, feeding on crude oil nised today; substitutions through plastics, tries (over $1,000 a. head) rig their economic so worthless that it is burned as waste, can etc, will hugely increase; and microminia­ policies in favour of their farmers-and then grow fast enough to produce 10 pounds of turisation with integrated circuits means find that the universally-high elasticity of protein in a day. If a yearling calf were able that it is going to be increasingly economic suoply in agriculture saddles them with but­ to manufacture protein at the same rate, it to put on to a chip the size of a postage ter mountains. Over the next three decades would end the day roughly the size of a stamp properly connected electrical circuits most countries will move above the $1,000 three car garage and it would have consumed which would previously have required as­ a. head mark, and we will suddenly find our­ several tons of expensive grain in the process. semblies of machinery that fill a rocm. selves swimming in food gluts. The cost of protein produced from waste One mineral probably is going to be short Shortages in food supply per head of local effiuents is approa.chin~ 3 cents/pound, com­ for a. while, because countries have foolishly population are not nowadays well correlated pared with agriculture and animal protein made it a free good; water. with soil conditions. India-Pakistan-Bangla­ at 10 cents/Pound. Algae produces protein POPULATION: THE FIRST WORRY desh, the most tragic area, has more arable at a rate of 30 to 50 tons/a.cre;yea.r, com­ At last year's World Population Confer­ land than the United States, great ability for pared with the conventional agriculture of ence in Bucharest, the United Nations Secre­ multiple cropping, a more bountiful water 3 to 5 tons/acreJYea.r." tariat presented a. World Plan for Action (on supply. More interestingly, the elasticity of Will this food from bugs be made palat­ which it had been working for years), call­ food supply (ie, the usual % rise in supply able? Unfortunately, yes. It is already pos­ ing for a reduction of world population in response to a % rise in real price) is not sible to make sewage taste like stew. growth to 1.7% a year by 1985. Nobody liked nowadays well correlated with social condi­ The real food problem for the future is to point out that world population had tions. rich men's habit of eating more food than probably fallen to 1.7% a year already. In the five years after 1965 there were huge is good for health, partly because of the ac­ The anti-baby hysteria of the 1960s was a. increases in wheat and rice yields in India­ cident that "entertaining", both social and classic of trendy innumeracy. It came after Pakistan (aided by the politicians' temporary business, has morblfica.lly become attached a fall in fertility rates had been made cer­ emphasis on agriculture, by favourable terms to this natural function, rather than to the tain by the breakthrough in both birth con­ of trade for petroleum-based fertilisers, by two that are assumed to be more disgusting trol technology (the pill, etc.) and in birth the green revolution, maybe by good than a drunken guzzle (defecation and sex), control attitudes (acceptance of abortion weather) , so that India t emporarily became or than to the civilised Roman one. It will and of papal falliblUty) . By 1972 the World self-sufficient in agriculture. If these in­ be wise in this next century to go back to Bank was already reporting a decline in fer­ creases in yields had been continued for a holding social gatherings and informal bust­ tmty in 56 of the 66 countries for which century, the world would have been destroyed ness negotiations in what could now be vari­ meaningful data on births are a.va.lla.ble; but because its entire surface would have been ous exciting sorts of baths. those whose jobs depended on the continued covered by rice to a depth of three feet. But ON YOUR METALS organisation of the anti-baby World Popula­ then Indian and Pakistani politicians turned tion Year pressed on regardless. The result to concentrate their budgets on more belli­ Five of the world's 16 main metals are in virtually limitless supply (iron, aluminium, wlll now be a risk of emotion the other way. cose things, and higher energy prices moved It is already fashionable to say that the pres­ the terms of trade against the farmers. magnesium, titanium, slllcon). Four others are subject to continuing improvements in ent 4 billion world population w111 stm be Agriculture in the rich countries is now the mining process, and the next will be the under 6 bllllon by the year 2000. This is prob­ uneconomica.lly energy-intensive, so it ls easy big step of just picking up nodules from the ably wrong, because the next problem has for those who count in megajoules to say ocean floor (copper, cobalt, manganese, not been foreseen. there is wild exaggeration in the argument nickel). That leaves seven whose long-term Awkwardly, medicine is bound eventu­ that if all the land now cultivated were prices might rise sharply if today's "known ally to make a breakthrough in curing the brought up to Dutch standards of efficiency, reserves" were the most economic way of main degenerative diseases, so that old peo­ then the world could feed 60 billion people, mining them (chromium, lead, zinc, tin, gold, ple wlll start to exist longer. This will set 15 times toda.y's population. Instead, there silver, mercury). But the whole anti-intel­ the real population problem. As the death is understatement. This estimate refers only lectual concept of talking about "known rate drops, mankind will probably have to to the tiny 3% of the globe's surface that is reserves" of anything, including oil, is often move towards acceptance of and now farmed. It ignores the fact that in most the last refuge of the scoundrelly oil com­ even planned death (with a. hell of a going­ poor countries there has not been a serious pany's public relations officer. Listen instead away party on your 85th birthday?). "green revolution" study of the best meth­ to Professor Wilfred Beckerman: My guess is that mankind will accept this ods and crops. It underestimates the fact "Given the natural concentrations of the smoothly. Witness how abortion was a word that 70 % of crops in some poor parts of the key metals in the earth's crust, as indicated you could not mention to auntie 15 years world are eaten by easily-destroyable pests. by a. large number of random samples, the ago, but today any woman could get an abor­ It takes no account of the way plant growths total na. tural occurrence of most metals in can already be increased between tenfold and tion in most cities bv next weekend. It wlll the top mlle of the earth's crust has been not be at all surprising if there is in some a. hundredfold in plastic greenhouses or other estimated to be about a. mlllion times as scientifically-controlled chambers free of dis­ quite near decade-and-a-half a similarly great as present known reserves. Since the swift and equally civilised dash to accept­ eases and pests. And the chemical equivalent latter amount to about a. hundred years' sup­ of outdoor protection by plastic greenhouses ance of killing off old codgers (by then, like piles this means we have enough to last me) as there has been, 1n so short a. twin­ is bound to come. about one hundred milllon years. Even Above all, it ignores the waste in the pres­ though it may be impossible at present to kling, towards the more emotive act of k111- ent extraordinary agricultural system of mine to a. depth of one mile at every point ing unborn babies. Acceptance of planned turning grain into meat through very inef­ in the earth's crust, by the time we reach death means that mankind must then surely ficient livestock converters. the year AD 100,000,000 I am sure we will alter all the lifestyles for all the ages of The world's pigs today eat seven times think up something." present individual existence as well. more primary protein than the world's North Other rather obvious points: the world But this had better be discussed later, Americans. The world's horses (now often a does not actually consume metals at all, but after first pondering whether the real dan­ recreational animal) eat more than its Chi­ employs them in ways that make them avail­ gers of 1976-2076 will allow mankind life­ nese. The world's cows (a. third of them Afro- able for re-use after anything between 3 and styles at all. November 19, 1975 EXTENSIONS OF REMARKS 37515 REPUBLICANS AND TAXES the owner of a $40,000 home has to come So when you think of consumers. Remem­ up with. ber there are no geographical boundaries. None is suggesting that there is anything The American farmer is paying the price just HON. PHILLIP BURTON 1llegal in what Reagan is doing. But there is like his city counterpart. OF CALIFORNIA something just a little immoral in someone But he can continue to pay it only if he running around saying that taxes should receives a fair return on his investments. So IN THE HOUSE OF REPRESENTATIVES hurt and then making sure that the guy let's not take him for granted. Wednesday, November 19, 1975 getting hurt is someone else. Of course there are similar legal tax loop­ Mr. PHILLIP BURTON. Mr. Speaker, holes which allow insurance companies, we Democrats are frequently accused of banks, oil interests, and other big wheels to AN ALARMED CITIZENS' VIEW OF overspending and being careless with pay far less than their fair share. But that taxpayers' money. doesn't make it right and it doesn't make THE NATIONAL DEBT I am inserting for the RECORD an arti­ Reagan fit for any public oftlce. Someone cle from the Service Union Reporter of once said that "Reagan believes in the mini­ HON. JOHN P. HAMMERSCHMIDT California, September 1975, about one of mum wage and he wants it to be as mini­ mum as possible." OF ARKANSAS those who most frequently proclaims his He has the same feeling about his taxes. IN THE HOUSE OF REPRESENTATIVES fiscal purity and how he protects the Preferential treatment on tax b1lls is what Wednesday, November 19, 1975 taxpayer. makes taxes for all the rest of us so high. Text of article follows : If all the loopholes were closed and everyone Mr. HAMMERSCHMIDT. Mr. Speaker, TAXES HURT EVERYONE ExCEPT RoNND:, BABY­ were paying a fair share of the burden of I have recently had the good fortune AND THAT COSTS THE REST OF Us MoRE government we wouldn't have politicians of receiving some very well-taken and Remember that fellow who said that taxes cla.l.m.lng that it is the high wages of public well-reasoned viewpoints on the national should hurt? He said that if taxes hurt, the servants which has caused all the trouble debt, from the point of view of my con­ taxpayers would zero in on all those wild in our cities. Our problems would be much less if the stituent, Mr. Russell T. Purdy, of Fay­ spenders in Congress, state legislatures, city etteville, Ark. and county government, and force them to politicians like Ford and Reagan were not keep taxes down. rigging everything for the rich and killing Mr. Purdy's thoughts on this subject Well, Ronald Reagan surely can't complain the rest of us with inflation and unemploy­ are enlightening and offer much insight that taxes hurt him no matter what he once ment. into the issue of fiscal integrity andre­ said. It was just a. couple of years ago that There are those who say that all the prob­ sponsibility. They reflect a good deal of it was revealed that he paid no state in­ lems of inflation go back to the last Demo­ commonsense, which is the most vital come taxes despite the tens of thousands of cratic president, LBJ. Well, look a.t the rec­ ingredient necessary in the effort to har­ dollars he took in one of the years he was ord. When Nixon took over in 1969, unem­ ployment was less than three percent and ness the runaway public debt that so governor. He found some loopholes, just as threatens the Nation's future economic Nixon attempted to do, and made sure that the inflation rate was less than four per­ taxes hurt someone else, but not Ronnie, cent. When Nixon left office, unemployment stability. baby. was 6.8 per cent and inflation was twice as I echo the sentiments expressed by my Now the former governor is back at his high. When we last looked at the Ford record constituent and I submit them for the same old tricks making sure that he's not we saw that over ten per cent of California consideration of my congressional col­ hurt even though every cent he doesn't pay workers were unemployed and inflation has leagues. I believe the sound and common­ averaged about 15 per cent for his 13 months has to be made up for by someone else. in office. sense views expressed could and should And guess who that is? You and I, that's Well, in his domestic policies, Reagan is serve as meaningful guideposts for the who. Congress to follow. Reagan recently bought a. 664 acre ranch even more rich man oriented than Ford. He up in Santa. Ynez in Santa. Barbara. County. is the living proof that politicians should be Mr. Purdy's remarks appear below: According to figures published in the news forced to reveal their income tax returns be­ AN ALARMED CITIZEN'S VIEW OF THE NATIONAL media., the property is worth more than fore being allowed to run for otfice. DEBT $500,000. That figures out to about $753 per When I say to young adults that they are acre which seems reasonable for valuable st111 paying interest on a. dollar borrowed by Santa Barbara County land. FARMERS ARE CONSUMERS the Government in 1932 and that this dollar The new Reagan spread, where he can play has doubled to two, redoubled to four and cowboy once again while he plots out ways again perhaps eight, on which they are now to destroy Social Security (have you heard HON. KEITH G. SEBELIUS paying interest, most are disbelleving and his radio broadcasts lately?), is valuable OF KANSAS some have said, "OH, No-they wouldn't let enough to be put up as security for $486,000 a. thing like that happen." in loans. The fact that banks would put up IN THE HOUSE OF REPRESENTATIVES When I tell them that the Government that much money on that ranch as security Wednesday, November 19, 1975 plans to go deeper in debt by 71 billion dol­ indicates that the land is worth even more lars this fiscal year and that this increase is than the halt mill1on Ronnie paid for it. Mr. SEBELIUS. Mr. Speaker, the fol­ a.t a. rate of almost 200 million dollars a. day But now comes the kicker. Despite the lowing is the eighth in a series of 10 mes­ and that in July it was actually 350 million value of the property Reagan has found sages sponsored by Far-Mar-Co Inc., dollars a day, including Saturdays, Sundays another loophole and he is paying almost Hutchinson, Kans., in U.S. News & World and holidays, they look at me in stunned dis­ no property taxes. So guess who's making up Report to stress the importance of a vig­ belief and usually shake their heads in total the dlfference in Santa Barbara. The other orous and reliable market for farm prod­ ina.b111ty to comprehend such staggering fig­ guys like you and me, that's who. ucts. The farmer, like any other busi­ ures. Reagan has signed a trust agreement set­ Next I show them a graph {Exhibit No. 1) ting his land aside as an agricultural pre­ nessman, attempts to maintain a bal­ of national debt plotted against time, ex­ serve which says he won't develop the land anced checkbook and tries to make ends plaining that the 24 billion debt of 1920 re­ or plow it up and plant something, which meet. It is often forgotten that farmers sulted from World War I and that we wisely he never intended to do anyway, and so he are faced with fixed and variable operat­ started reducing this debt so as to enhance only has to pay taxes on the buildings and ing expenses, payments for costly ma­ the nation's credit against another emer­ the small part of his ranch they stand on. chinery, buildings, and land along with gency, which soon came along as the great That might seem fair enough if the appraisal high grocery bills. The article follows: depression of 1929. From 1932 on the debt, were reasonable and if the land were opened with a few minor exceptions, has constantly up for the use of the other citizens of the A FARMER BY ANY OTHER NAME Is A increased until today it stands at about five state for riding and roughing it. CONSUM,ER hundred billion, one-half of a trillion dol­ Well, Ronnie has evidently found a friend Whether you're a. city-consumer or a. farm­ lars. in the tax appraiser's oftlce. We have been er-consumer, "consuming" is getting more It is planned to increase the debt this fiscal told that the living quarters on the Reagan and more expensive. year to five hundred and fifty b1111on, the rancho are a rambling Spanish style abode And whether you're a. city-consumer or a interest on which will be about a hundred and have barns, stables, and a. few con­ farmer-consumer, you have grocery bills, million dollars a. day (a hundred mill1on clothing bllls, gasoline biDs, utllity biDs, and dollars a. da.y borrowed to pay interest on veniences like a. swtmmlng pool and a. tennis a. variety of other bills. court. The records ln Santa Barbara indicate borrowed money!) But 1n addition to all of those b1lls they 'rnle sudden upturns resulting from World that Reagan's $500,000 investment has an have in common, a. farmer-consumer also ha.s War II and the Viet Na.m fiasco a.re apparent, assessed value of only $11,530, and his tax tractors, combines, trucks. And seed, fertn­ but nowhere do we show any tendency to blli is only $1,108. That means that the izer, herbicides, pesticides. And irrigation shore up the nation's credit by reducing this former governor is paying just about wha.t equipment, grain bins, silos, barns. debt, even in times of great prosperity. In 37516 EXTENSIONS OF REMARKS November 19, 1975 fact, I cannot recall ever having heard are­ begin our long, toil, tears and sweat, trek find myself alone at 51 wondering if I must sponsible candidate campaign on a platform back up and over the edge of the bluff. go Into someone's home an

~ -- November 19, 1975 EXTENSIONS OF REMARKS 37523 CRITICAL MASS: ILLEGAL ACTS jectors for a Pure Environment­ Both movements are internationalist and PLANNED AGAINST NUCLEAR NOPE-and a resident of an organic collectivist. POWERPLANTS farming commune which formerly served Many avowed Marxist revolutionary as the headquarters of the revolutionary groups have been trying to unite the two Liberation News Service, surrendered movements-from the Communist Party, HON. LARRY McDONALD himself to police on February 22, 1974, U.S.A., to the Workers World Party OF GEORGIA after loosening the bracing cables of a through its fronts and the October IN THE HOUSE OF REPRESENTATIVES preliminary weather tower at the nu­ League by linking up to the Marxists of Wednesday, November 19, 1975 clear plant site. The $50,000 tower col­ the Georgia power project. But it appears Mr. McDONALD of Georgia. Mr. lapsed. In a prepared statement to the that the articulate Sam Lovejoy, nuclear press, Lovejoy admitted "full responsi­ saboteur and "ecotage" expert, has Speaker, a conference called Critical bility for sabotaging that outrageous Mass '75, self-characterized as the "sec­ achieved a striking success in his own ond national gathering of the citizen symbol of a future nuclear powerplant." right. movement to stop nuclear power," drew After a trial in which Lovejoy defended A summer, 1974, article by Lovejoy was himself as having acted in the public distributed at the Critical Mass '75 con­ more than 1,200 people from across the interest, the judge directed acquittal on ference. The article, entitled "An Edi­ country to its 2 days of meetings here in grounds of a faulty indictment which Washington, D.C., November 16-17, 1975. torial," sets forth the ideology of the Conference-goers wandering through charged Lovejoy with destruction of radical antinuclear movement in clear the overhen.ted meeting rooms of the personal rather than real property. and unmistakable terms. Lovejoy wrote: Shoreham Hotel heard more than 50 sci­ Lovejoy then told the press. The tower ecota.ge episode wa.s a. catalyst The publicity • • • wa.s a. great victory, a.nd for awareness and action, a. moderate first entists and other alleged experts predict we've entered the issue of civil disobedience step . . . but it also surfaced a.n inevitable doom and dire consequences from the into the environmental movement. social collision between the progressive­ peaceful uses of nuclear energy and vil­ enlightened and the stagnant forces in • • • lify the U.S. nuclear power industry for Civil disobedience to Lovejoy and the United States and the world. The back­ trying to make a profit for their stock­ his supporters meaBS deliberate viola­ ground, the lifestyle, the entire mind set holders and for· future expansion. tions of the law including the destruc­ of myself, a.nd countless other brothers a.nd The prime mover in the Critical Mass tion of property. sisters, see the locally proposed NUKE a.s '75 operation was Ralph Nader, the "self­ Lovejoy has been touring the country the • * * microcosmic symbol for a.n enor­ lining up support from Marxist and mous political-social system so corrupt a.nd appointed crusader for all American so 1n need of change that . . . • • • (Em­ consumers." In his opening statement to leftist-pacifist groups like the War phasis added.) the Critical Mass conference, Nader Registers League who used civil dis­ made a broad "shotgun" attack on the obedience tactics in support of the Viet­ After that passage in which Lovejoy nuclear industry which he claimed was a cong. WRL works actively with several did everything but say the word "revolu­ ''shambles." Sovtet and Communist Party, U.S.A., tion," he continued by pointing how all Nader, who organizes public pressure fronts in support of disarmament and the various radical special interest for greater and greater government con­ detente. groups can be united around the anti­ trol, called for still more "citizen action As Mr. Nader buried his head in his nuclear issue: and involvement in coming months" to hands, Lovejoy read two resolutions pre­ As energy is a.t the base root of life itself, smash the nuclear power industry. pared earlier that day by an ad hoc ac­ so the ecology movement, the anti-war, anti­ He said: tivist caucus of some 60 conference race movements, the sexua.llibera.tion move­ participants. ments, a.ll progressive minded peoples every­ Nuclear energy is cllslntegra.ttng a.nd our where a.re uniting their energies to halt and full effort must now be deV'oted to designing Lovejoy said: prevent the scourges of prejudice, avarice, a.nd advocating a. non-nuclear future for the We feel that Critical Mass represents the injustice, a.nd yes, imbalance. The No NUKES country. leadership of the nuclear opposition move­ movement is thus profoundly political a.nd Nader, it appears, would rather ment. It seems fitting that as a. group we international. • • * should attempt to provide concise direction On the practical level * • • The nuclear have the United States dependent on for nuclear opponents across America.. In power industry is just a. shadow of the total the OPEC countries than have it develop this respect, we feel that Critical Mass should monstrosity of western industrial technology. a nuclear powerplant alternative. address its responsibilities to the people a.nd And the glutonous [sic] cry for electricity On the final day of the conference, adopt resolutions aimed a.t uniting all nuclear is only the end result of a.n impossible, ever­ Ralph Nader issued several warnings to opponents a.nd determining the most vital expanding economy a.nd fancy, highly the nuclear industry, its trade associa­ a.nd significant targets in order to maximize financed public relations. • • • until hu­ tions and employees-and to law enforce­ our effectiveness. manity ca.n eliminate self interest a.nd profit a.s the motive forces in society . . . planet ment-that their interest in the anti­ Lovejoy's resolutions, greeted with Earth will never attain its ultimate har­ nuclear movement could be considered tumultuous and enthusiastic applause mony • • •. "illegal interference" and an invasion by the crowd to Nader's obvious chagrin, of the right to privacy, which would be were: It is clear that America's energy in­ "relentlessly exposed." Reference was Number 1 : The opposition to commercial dustries-nuclear and nonnuclear-are particularly made to law enforcement nuclear power plants recognizes the integral vital to our future development and our agencies who have inquired into the ac­ connections between itself a.nd the nuclear national well-being and security. The tivities of so-called "environmental" or disarmament movement; a.nd also recognizes environmental extremists are a small a.nd seeks to ally itself with peace a.nd dis­ "ecology" groups which included among armament groups, orga.nlza.tlons a.nd coali­ minority who hope that America will re­ their members persons with records of tions in order to achieve total nuclear turn to a preindustrial "dark age." Their involvement in revolutionary organiza­ disarmament. allies are revolutionary Marxists who tions and persons with a potential for Number 2: The people here assembled rec­ would manipulate the movement to violence. ognize the nuclear juggernaut ma.y not be weaken and divide our country. stopped without a.n active, national popular And as Mr. Nader, in his role as the movement. We support a.ll non-violent forms Crusader Nader has his constitutional environmental knight in white armor, of nuclear resistance including civil dis­ right to carp and ·criticize. But when concluded his strictures against surveil­ obedience a.nd other humane means of direct Nader offers his movement as a cloak lance, he was joined on the platform by action. to screen the attacks of potential law­ Samuel Holden Lovejoy, 30, a successful, Observers of the nuclear disarmament breakers, we must call upon all the ap­ admitted saboteur of a nuclear power­ and the antinuclear power movements propriate agencies of our Government, plant under construction in Montague, have long recognized the close connec­ both Federal and local, to closely moni­ Mass. tion. Both movements are anticapitalist­ tor their activities in order to insure It will be recalled that Lovejoy, a lead­ aimed at smashing the free enterprise that in this volatile area neither the er of the environmentalist and anti­ system and the system of individual lib­ public safety nor our internal security nuclear power group called Nuclear Ob- erty and responsibility on which it rests. is subjected threats of violence. 37524 CONGRESSIONAL RECORD- HOUSE November 20, 1975 WHY ARE RAILROADS IMPORTANT than their competitors, who polluted much consumer service and marketing are TO THE NATION? more. years ahead of the times. Bert's involve­ WISE LAND UTILIZATION ment in the community is so well known Land is one of America's most precious that his name is synonymous with "good HON. BARRY M. GOLDWATER, JR. natural resources, so we should use it care­ neighbor .., Once again, I commend and OF CALIFORNIA fully. bring to the attention of my colleagues a Railroads operate on their own right-of­ IN THE HOUSE OF REPRESENTATIVES living example of what is right about way. In 1916, railroads had 254,000 miles of American business. Wednesday, November 19, 197 5 track. Since then, the mileage has been reduced to 201,000 miles, though traffic has Mr. GOLDWATER. Mr. Speaker, as a increased. Compare that to our highway sys­ member of the Committee on Public tem. Since 1955, the land that highways use FACE UP TO BUSING ISSUE Works and Transportation, I was espe­ has increased rapidly. Now, highways use cially interested in a prize-winning essay about ten times more land than railroads. HON. JAMES J. BLANCHARD written by a young man by the name of Studies show that one track of double­ track railroad is equal in capacity to ten to OF MICHIGAN David Harmer. He was the recipient of a twenty lanes of multiple-lane highway, yet IN THE HOUSE OF REPRESENTATIVES $1,000 scholarship, having placed second it uses far less land. Wednesday, November 19, 1975 1n a nationwide competition among the Many highways are crowded. However, ran­ Boy Scouts of America for essays on the roads are operating at only about one-third Mr. BLANCHARD. Mr. Speaker, it is subject of railroads. I present David's of their capacity-they could triple their about time the House of Representa­ essay for my colleagues interest: volume without acquiring any large amounts tives faced the issue of scliool busing WHY ARE RAILROADS IMPORTANT TO THE of new land. squarely. In my opinion, the only effec­ NATION? MASS TRANSrr tive way to face this issue squarely is (By David Harmer) All Americans want to reduce air pollu­ by adopting a constitutional amendment tion and urban congestion. One way would to prohibit forced busing and preserve American railroads have been called, "the be to use more commuter trains and other lifeline of the nation," and it's no wonder. forms of railroad tranfWortation. Ran transit neighborhood schools. Railroads are the backbone of America's is becoming increasingly important in Unfortunately, too many of our lead­ transportation system-they carry 39% of ers feel that someone else should resolve the nation's intercity freight load, and move America, because it can do what the auto more ton-miles of intercity freight each year can't--move many commuters quickly into the busing issue. They think that some­ than trucks, barges, and airlines combined. the heart of a city, with little congestion, one else will stop busing or that the Railroads also carry over half of all domestic pollution, or inefficiency. issue of busing will go away. They are non-local mail, and large amounts of baggage Light rail transit systems are being devel­ concerned with the divisiveness of the and express. oped in many cities because they cost less busing issue and hope to forestall action Because of this, all Americans have a than a superhighway, but help to reduce on it, thinking that it really can be re­ pocketbook interest in railroads, since trans­ congestion, pollution, and noise. Also, rail­ roads are seventeen times safer than automo­ solved without "biting the bullet." portation costs are part of nearly everything Two recent actions here in Washing­ we buy. Our nation's way of life, based on biles, as far as fatalities are concerned. large-scale production and consumption, In the future, railroads w111 be very im­ ton reflect the unwillingness of many would be impossible without railroads. (This portant in mass-transit and corridor serv­ elected o:fl!.cials to deal with the busing is often seen during major railroad labor ice. They're efficient, clean and safe, which issue·. strikes.) is so important today and wtll continue to be Today a majority of the members of And the load is constantly growing. Rail­ in the future. American railroads have the the Democratic Caucus voted to table road volume increased by a third in the last best freight service in the world, and it's consideration of a resolution calling for decade, and even greater growth is expected going to become even better. American railroads are important because a constitutional amendment to prohibit in the next--partly under the influence of busing. I think they are wrong. That is environmental and energy concerns. For rail­ without them, America wouldn't be what it roads can help solve many of our nation's is today. why I voted against tabling the resolu­ critical problems such as air pollution, en­ tion and why I feel we should adopt a ergy conservation, mass transit, urban con­ constitutional amendment to preserve gestion, and wise land utilization. FREE ENTERPRISE SYSTEM neighborhood schools. ENERGY CONSERVATION AND AIR POLLUTION Several weeks ago President Ford Railroads are extremely efficient--much HON. BARRY M. GOLDWATER, JR. stated he opposes a constitutional more so than highways or airplanes. Freight amendment to prohibit busing. I believe trains, for example, can move freight three OF CALIFORNIA both the majority in the caucus and the to four times more efficiently than trucks. IN THE HOUSE OF REPRESENTATIVES President are ignoring the reality of this On trains, the steel wheels move over the Wednesday, November 19, 1975 most serious issue. The busing issue will steel rails with very little friction-far less not be resolved by someone else and will than the tires of a truck moving over a high­ ~r.~IJ)VVATER.Mr.Speaker,twice not go away. Millions of our citizens way. Therefore. truck, truck engines must before, I have brought an outstanding across the country are a testimony to work harder than a locomotive to move the example of the American free enter­ same weight. In doing so, they consume prise system to the attention of my col­ that fact. Concern over busing is spread­ about three times more fuel than trains to ing, not receding, and it will continue to move the same weight. leagues. On both occasions, I spoke about do so until we adopt a constitutional Railroads pollute little because they are Galpin Ford in the San Fernando Valley amendment. so energy efficient. They pollute about three of California. Galpin Ford, owned and We cannot wait for the courts to come times less than trucks. In a study made dur­ operated by H. F. "Bert" Boeckmann II, to their senses or wait for someone else ing a recent year on air pollution, railroads' has once again won the National Auto­ to grapple with the great issues of the share of polluting emissions in America was motive Retailer of the Year Award. I am day. We were elected to do that. Let us about 1%. yet railroads moved more freight not surprised. Bert's way of providing do it.

HOUSE OF REPRESENTATIVES-Thursday, November 20, 1975 The House met at 12 o'clock noon. cool, clear fall day; or an intimate con­ allow our ears to grow deaf to the pain, The Rev. James R. Hallam, Asbury versation with a friend. anger, and despair expressed by the Job­ United Methodist Church, Philadelphia, Help us to take off our masks. You see Pa., offered the following prayer: less, the oppressed, the hungry, and the through our pretentions. You know our aged. Use us to accomplish Your purpose. 0 God, thank You for the gift of an­ mixed motives, our thirst for position Give us the wisdom to deal with complex other day of life. May we not become so and power, our fears, and our guilts. Give issues so that peace, justice, and compas­ lost in busyness that we do not appreciate us the strength to change our behavior sion may be experienced by all people. it. Increase our awareness so that we do and the courage to risk being human. In the spirit of Jesus of Nazareth we not miss a laughing, frolicking child; a Keep us sensitive to each other. Do not pray. Amen.