1953 CONGRESSIONAL RECORD- SENATE .463 PUBLIC BILLS AND RESOLUTIONS · MESSAGES FROM THE PRESIDENT Ezra Taft Benson, of Utah, to be Sec.. Under clause 4 of rule XXII, public Messages in writing from the President retary of Agriculture. bills and resolutions were introduced and· of the United States submitting nomina­ Sinclair Weeks, of Massachusetts, to severally referred as follows: tions were communicated to the Senate be Secretary of Commerce. by Mr. Miller, one of his secretaries. Martin P. Durkin, of Maryland, to be By Mr. WARBURTON: Secretary of Labor. H. R. 1969. A bill authorizing the con­ Mrs. Oveta Culp Hobby, of Texas, to struction of a highway bridge across the LEAVE OF ABSENCE Chesapeake & Delaware Canal at Summit, · be Federal Security Administrator. Del.; to the Committee on Public Works. Mr. McCARRAN. Mr. President, I in­ Mr. TAFT. I sugg~st the absence of • H. J. Res. 145. Joint resolution designating vite the attention of the le.aders on both a quorum . the period beginning on the Sunday before sides of the aisle. I am compelled to The VICE PRESIDENT. The Secre.. Thanksgiving Day and ending on the Sunday tary will call the roll. after Thanksgiving Day of each year as leave the Senate floor at approximately 4 o'clock this afternoon, and I should The legislative clerk called the roll, Homemakers' Week; to the Committee on the and the following Senators answered to Judiciary. like to ask unanimou·s consent at this By Mr. LANE: time, as in legislative session, that I may their names: H. Res. 104. Resolution creating a select be excused from attendance on theses­ Aiken Gore McCarran Anderson Green McCarthy committee to conduct an investigation and sions of the Senate from that time for Barrett Griswold McClellan study. of the alleged atro~ities committed on a period of 2 weeks. Beall Hayden Millikin the members of the armed services of the The VICE PRESIDENT. Without ob­ Bennett Hendrickson Monroney United States since the start of the Korean Bricker Hennings Morse confiict; to the Committee on Rules. jection, it is so ordered. Bridges Hickenlooper Mundt Bush Hill Murray Butler, Md. Hoey Neely EXECUTIVE MESSAGES REFERRED Butler, Nebr. Holland Pastore PRIV,aTE BILLS AND RESOLUTIONS Byrd Humphrey Payne The VICE PRESIDENT laid before the Capehart Hunt Potter Under clause 1 of rule XXII, Senate messages from the President of Carlson Ives Purtell Mr. WARBURTON introduced a bill {H. R. the United States submitting the nomi­ Case Jackson Robertson .1970) for the relief of Wieslaw Jan Bartnicki Chavez Jenner Russell nations of Henry Cabot Lodge, Jr., of Clements Johnson, Colo. Saltonstall which was referred to the Committee on the Massachusetts, to be the representative Cooper Johnson, Tex. Schoeppel Judiciary. Cordon Johnston, S.C. Smith, Maine of the United States of America to the Daniel Kefauver Smith, N.J. United Nations with the rank and status Dirksen Kennedy Smith, N. c. PETITIONS ETC. of Ambassaelor Extraordinary and Pleni­ Douglas Kilgore Sparkman Dutf Knowland Stennis Under.clause 1 of rule XXII, potentiary, and the representative of the Dworshak Kuchel Symington 21. Mr. BUSH presented a petition of· the United St.ates of America in the Security Eastland Langer Taft Commissioners of Clinton County, Pa., urging Council of the United Nations; ·and Har­ Ellender Lehman Thye the Congress of the United States to amend old E. Stassen, of Pennsylvania, to be Ferguson Long Tobey Flanders Magnuson Watkins the existing act of Congress so as to make Director for Mutual Security, which were Frear ·Malone Welker the benefits of the Social Security Act avail­ referred to the Committee on Foreign Fulbright Mansfield Wiley able to any and all political subdivisions de­ Relations. Gillette Martin Williams sirous of adopting the said plan for its of­ Goldwater Maybank Young ficials and employees, which was referred to John Foster Dulles, of New York, to tinuing as usual. Those employed in the our supplication, we beseech Thee, be Secretary of State. departments appreciate the fact that no through Jesus Christ our Lord. Amen. George M. Humphrey, of Ohio, to be emergency was created by the failure to Secretary of the Treasury. confirm the nominations of the heads Herbert Brownell, Jr., of New York, to of those departments yesterday. THE JOURNAL be Attorney General. As I recall, it was on May 7, 1945, that On request of Mr. TAFT, and by unani­ Arthur E. Summerfield, of Michigan, I presented to the Senate, I believe in mous con·sent, the reading of the Journal to be Postmaster General. connection with the nomination of of the proceedings of Tuesday, January Douglas McKay, of Oregon, to be Sec- Robert Hannegan for Postmaster Gen- 20, 1953, was dispensed with. retary of the Interior. eral, a resume of some research work CONGRESSIONAL RECORD--SENATE January 21 which occupied me for a good many days "What I mean Is that the test of mental him 1! we were in the appointing position?" soundness, as we apply it in the law, should That right was not given to us by the advice­ prior to my speech at that time on the be applied to any Cabinet nominee or to any and-consent clause of the Constitution. The history of confirmation fights in the nominee proposed by the President for any framers of the Constitution did not say, "The Senate. With the assistance of members office." - President and a majority of the Senate shall of my stat!, I had previously analyzed to I applied what I consider to be the four appoint Cabine;t officers." the best of my ability the results of that major historical tests to the Wallace nomi­ Neither do I think a Cabinet nomination -research. We analyzed the history of nation, and in my honest judgment he met should be made use of in the Senate for every confirmation fight in our entire the tests, and on the basis of those tests carrying on political warfare against the history with res2ect to which we could I . voted for the confirmation of his nomi­ President, regardless of the party to which find any printed record. Without re­ nation. he may belong. I do not intend, in COll­ On the basis of those tests I will vote nection with the consideration of any Cabi­ peating in detail c~rtain excerpts from for the confirmation of Mr. Hannegan, unless net appointment, to seek to make politi­ that speech today, but giving only a I can be shown that he does not meet those cal capital out of it. I do not think a resume of it, I ask to have inserted at tests. single thing said today by the distinguished this point in my remarks excerpts from There is also a fifth test which I think senior Senator from Missouri [Mr. Donnell] the speech to which I have·referred. In we must take into account, namely, the so­ would justify any such interpretation of his the course of that speech I also discuss.ed · called test of competency. It is a highly remarks. However, such interpretations al­ the Henry Wallace nomination. subjective test . . It is one which must be ready have been made on the floor of the There being no objection, excerpts watched in its application lest there be a Senate. · from the speech were ordered to be possibility that one may be influenced by Mr. MORSE. Mr. President, in that partisanship. I think it is sometimes rather printed in the RECORD, as follows: easy for us to assume that the fellow in the speech in 1945 I pointed out that in all That leads me to the remarks which I wish other party is not competent, when what we the corifirmatien fights in the Senate in to make in regard to the tests which I have mean is that his success has shown his out­ relation to Cabinet positions, there always applied, and always will apply, until standing competency, to our party's dis-­ seemed to be the following majm: crite­ someone can show that I am in error, in con­ advantage . . Nevertheless, I think it is true ria along with others more minor which nection with the matter of nominations to that when we function under the advice and the Senate applied. Those criteria can the Cabinet. Earlier this afternoon the Sen­ consent clause of the Constitution, insofar be summarized in these quotations: ator from Tennessee made some reference to as the confirmation of nominations is con­ Is this particular nominee loyal to our my having voted for the confirmation of the cerned, we should give weight ·to the ques­ nomination of Mr. Wallace. At that time I tion of competency, from the standpoint of ::orm of government? tried to explain to him that he was mistaken whether in the particular job for which the Is he a man of good character? as to the basis on which I voted for the con­ President has appointed an individual he will Is he a man who possesses the com­ firmation of that nomination. I shall now be able to render service which. will be for petency to carry forward the policies of try to explain in greater detail the tests the public good and will protect the interest the President? · · - which I think should be applied by the Sen­ of our citizenry as a whole. I felt that · Is he mentally sound? ate in considering nominations. Mr. Wallace met that test, and I have yet to Does he in any way have a personal or At the time of the Wallace nomination I be shown that Mr. Hannegan .does not meet selfish interest in connection with the made as thorough a study as I could of. the it. question of rejections of Cabinet nomina­ particular position to which he has been However, I think it is only fair that we have nominated whfch, frqm the standpoint tions in the history of this country. The rec­ at least a committee hearing on the nomi­ ord shows that there have been seven re­ nation, to study the nominee's qualifications of public policy, would disqualify him in jections, out of a total of almost 400 nomi­ from the standpoint of meeting these tests. any respect for the office? nations. One of them occurred in the ad­ Senators may disagree with me in respect In the main, I believe that if we ex­ ministration of Andrew Jackson; ·four in amine all the confirmation fights in the President Tyler's administration; one in to its application as a legal proposition, but President Johnson's administration; and one let me point out that the advice-and-con­ history of the Senate, we shall find that sent clause of the Constitution is in the in President Coolidge's administration. those criteria have been the ones which When we make an analysis of those great form of language of limitation. The ap­ have guided the Senate~ Senate discussions we find, in my humble pointive authority is given by the Constitu­ In the 1945 speech I pointed out that judgment, that there are four m·ajor tests, tion to the President. Hence, I agree with under the advice-and-consent clause of and then I think another one which runs the Senator from New Mexico [Mr. HATCH] the Constitution the Senate does not through all four of them. The first is the in essence, I think, if I correctly understood the remarks he made a few minutes ago. I have the power of appointment. It is character test. Is the man of good charac­ not a question whether or not a Presi­ ter, as that term is generally used by all? agree if by those remarks he meant that a Second, is he one who believes in our form presumption exists in favor of a Presidential dent of the United States is· appointing of government and who seeks through our nomination. I say that because we do not to his Cabinet a man whom any Senator form of government to bring about any par­ have joint appointive authority with the would appoint if he were the appointive ticular reform which he advocates? Third, is President. The framers of the Constitution power. The advice-and-consent clause be one who is not disqualified because of did not use such language. of the Constitution in respect to the con­ some professional or personal or financial What the framers of the Constitution did firmation of nominations of Cabinet offi.- interest in the job, so that he cannot render say, in speaking of the Presidential appoin­ . cers has naught to do with any power of impartial, honest service? The Senate will tive power,·was- remember that at the time of the Warren "He shall have power, by and with the ad­ the Senate to appoint. Under the Con­ controversy in 1925, when President Coolidge vice and consent of the Senate, to make stitution the appointing power vests in bad nominated Warren to be Attorney Gen­ tr~ties, provided two-thirds of the Senators the President of the United States. eral, the charge was made that his connec­ present concur; and he shall nominate, and I repeat today in essence what I said tion with certain great business interests or by and with tlle advice and consent of the in 1945. ·I have no right to take the posi­ organizations in the State of Michigan and Senate, shall appoint ampassadors, other tion, in connection with a single one of throughout the country rendered it ques­ _public ministers and consuls, Judges of the these nominations, that I will not vote for tionable whether he could meet the test of Supreme Court, and all other officers of the the nominee because I do not 'like his impartiality as Attorney General, when it United Stat~s." came to administering the antitrust laws. It In my judgment the advice-and-consent policies; that· I will not vote for him be­ is not for me to say whether the Senate was language of the Constitution is language of cause he is not the one I would appoint; right or wrong, although on the basis of a limitation. It mea.ns that the presumption or that I will not vote for him because I study of the record, I am inclined to believe should be resolved in favor of the President, think his appointment might place me that had I been a Member of the Senate at unless we find that the particular nominee in a position in which I would find my­ that time I would not have voted for con­ falls short in respect to one of the tests I have self at issue with him on the merits of firmation of the nomination of Mr. Warren. enumerated. _There is nothing among those certain proposals which might subse­ I say that because, looking at the situation tests, and I find nothing in the debates on as it is now set out in the books, and records, the great historic cases, which would justify quently come to the Senate. I have no I have grave doubt whether his professional the making of any finding on the basis of right to pass that kind of judgment on connections met the test I have just men- partisanship. By that I mean that I do not any one of these nominees. tioned. · think we have a right to sit here and do I made a similar statement in 1945 in Then, of course, there is the fou_·th test of either one of two things: First, object to regard to the appointment of Henry mental soundness. At the time of the de­ the nomination of a Cabinet officer because Wallace. I knew full well, when I an­ bate on the nomination of Mr. Wallace, when we dQ not like his politics or because he is I discussed this particular test with some ot of a political party different from ours. I nounced in 1945 that I would support my Republican · colleagues, one said to me, think we should act nonpartisanly, froni that the nomination of Henry Wallace, that I ..What do you mean by that, Wayne? Do standpoint. Neither do I think we are justi­ would be subjected to criticism from you mean that he just is not nuts?" I said, fied in applying the test "Would we appoint those who felt that- he should not be 1953 CONGRESSIONAL RECORD= SENATE 465 appointed because they did not like his· I indicated my belief that the President hold yesterday, should be protected. policies. It was not a question of of the United States is entitled to have They know that I was not then, and am whether I liked his policies or not. It his official family consist of men in whom not now, activated by the motivations was a question as to whether or not he he has confidence and men whom he be­ that some attributed to.me. met the tests of the historical criteria lieves will carry out the policies which But, be that as it may, my skin is thick which have been applied iri connection will characterize his administration. when it comes to such matters. I am with confirming the nominations of Cabi­ After an analysis of the record which not afraid of being defeated, and I am net members. was submitted to us when the Senate not going to do things necessary to be re­ At the time the Senate confirmed the convened yesterday at noon I am satis­ elected if doing those things cannot be nomination of Henry Wallace the so­ fied that the nominees whose nomina­ squared in my judgment with the po­ called Progressive Party movement had tions were sent to us yesterday meet the litical principles in which I believe. not started in this country. I did not tests ·I have just enumerated. I have Mr. President, many people share the hear a word on the :floor of the Senate one question to ask later in , regard to point of view which I expressed yester­ or in the cloakrooms at the time of the one of them, because I do not believe day. I have received many telegrams confirmation of the nomination of Mr~ the record is entirely clear about it. I also of the opposite nature-critical tele­ Wallace which re:flected at all upon his am sure it will be cleared up quickly. grams-but I have received a good many political ideology or raised any question But speaking of them as a group I do telegrams which endorsed the position I as tO his Americanism. To the con­ believe the nominees meet the criteria took yesterday. I have taken a sampling trary, the consensus of opinion among which I have mentioned. I believe the of them, and I ask unanimous consent, all those with whom I talked was that President of the United States is entitled without the names of the senders being he was an ardent New Dealer. He was to have their nominations confirmed. printed, to have the telegrams inserted probably one of the most ardent of all I think also, Mr: President, that each in the RECORD at this point in my re­ the New Dealers. The fact that on this Member of this body was entitled at least marks. side of the aisle, so far as political phi- to have what I sought yesterday, namely, There being no objection, the tele­ - losophy was concerned, we were unani­ an opportunity to study the record af­ grams were ordered to be printed in the mously of the opinion-and I empha­ fecting each one of them. Having had RECORD, as follows: size the word "unanimously"-that some that opportunity we can today, as we DENVER, COLO., January 21, 1953. of the basic tenets of the New Deal were come to a vote on the nominations, feel United States Senator WAYNE MoRSE, not in keeping with what some of us assurance in the knowledge that we are United States Senate Office Building, considered to be sound constitutional fulfilling our representative responsi-. Washington, D. C. liberalism, had nothing whatsoever to bilities to the people of our States. We DEAR SENATOR: Please know· that in not fur­ do with the question as to whether or can be confident that we have kept faith thering the approval of the unknown men not we should vote for the confirmation with the trust inherent in the oath which nominated for Eisenhower's Cabinet you act­ of the nomination of .Henry Wallace. we took when we were sworn in as Mem­ ed with the usual incisive genius America has come to expect of you. Again you demon­ To the contrary, one of the question& bers of -this body that we would act on strated your brilliance and unparalleled grasp before us at the time was: Is he loyal the basis of our judgment, not on the of the difficult problems facing our Nation; to our form of government? Inciden­ basis of accepting without analysis the your action wasn't abysmal asininity. Your tally, I did not hear anyone in 1945 judgment of a committee of the Senate. selfless sacrifice will doubtless be well re­ raise any question about his loyalty. That leads me to make a few brief warded. But, of course, Mr. President, I will say comments about the position which the today that I believe he was mistaken in junior Senator from Oregon took yes­ CLEVELAND, OHIO, January 20, 1953. his political judgment and as to how the terday. Of course, he is well aware of Senator WAYNE MORSE: policies which he advocated should be the fact, and was well aware of it yes­ If what I hear is true, you are blocking ap­ terday, when he took a position in oppo­ pointment of Mr. Wilson to President's Cabi.;. carried out. net because his interest in General Motors. No question was raised as to his char­ sition to immediate ·confirmation in the I congratulate you. Stick to your guns. acter. I heard no one question his char­ face of the great desire to speed through acter. I would not question his char­ the nominations so that we could go out INDIANAPOLIS IND., January 21, 1953. acter or his loyalty if the same nom­ to see the beautiful and symbolic inau­ Senator WAYNE MORSE, ination were before us today. gural parade, that there would be those Senate Office Building, As to his competency to carry out the who would say that the junior Senator Washington; D. C.: policies of the then President of "the from Oregon was motivated by a spirit Congratulations on Cabinet stand. Even United States, I do not believe anyone of vengeance, retaliation, or vindictive­ Harding didn't dare pick 17 millionaires. Go could question it. At least I felt at the ness. after this clay-footed outfit. time he had competency to carry out the Those who know me, of course, were ARVERNE, N.Y., January 21, 1953. policies of the then President of the aware that I would take the position I Senator WAYNE MoRSE, United .States. There was no showing took yesterday irrespective of the action Senate Office Building, that he had any selfish economic inter­ taken by the Senate in regard to wha~ Washi~gton, D. C.: est in the position which would disqual­ I considered to be my rights in connec- . Congratulations on your honest and :forth­ ify him. Therefore, I said I would yote . tion with committee assignments. right stand on the side of our basic concept of American law. America looks to you to for·the confirmation of his nomination. My action yesterday was based entire­ help slow down reaction from running Of course, I have since learned that ly on my conviction that hasty action in rampant over the tried and workable prin­ when one stands up in the Senate of confirming Cabinet nominees is a mis­ ciple of governmental checks and balances. the United States and fights for what take and not in the public interest. I We respect your lone stand against being a he considers to be sound constitutional shall continue, as I have in the past, rubber stamp. principles, including the principle of to support my colleagues on the Repub­ checks and balances in our Government, lican side of the aisle and on the Demo­ GRAND RAPIDS, MrcH., January 20, 1953. he must expect to be misunderstood and cratic side of the aisle when I consider Senator WAYNE MoRSE, abused, and sometimes he must expect them to be right, and to oppose them Senate Office Building, Washington, D. C.: . also to be criticized as being motivated when I consider them to be wrong. Mr. God bless the few who remember the many. by a spirit of vindictiveness or revenge President, others may differ with my Listened to reports of you during recent cam­ or retaliation. But more of that a little judgment, as some did yesterday, but not paign. Admired then as now your :firm stand later. all in the Senate yesterday disagreed on principle, This was reaffirmed by your Mr. MALONE. Mr. President, will the with me, judging by the 17 Members of refusal to stand with "popular" majority. in Senator yield? this body who up until noon today had steamrollering through Eisenhower Cabinet Mr. MORSE. I should like to finish said to me, either in personal conversa ... appointments. Congratulations. my remarks first. Then I shall be very tion or over the telephone, that they happy to yield. PASADENA, CALIF., January 21, 1953. were glad I took the position I did yes­ Senator WAYNE MoRsE, Furthermore, Mr. President, the REc­ terday. They expressed Views agreeing Senate Office Building, . ORD will show that in my previous state­ with me that it was important that the Washington, D. C.: . ment on the floor of the Senate in con­ principle of checks and balances in our As a lifelong and active Democrat and a nection with the subject of confirmation Government, which I endeavored to up- Qsed legislation by a strongly to the effect that he felt that be improved or become developed taxa­ vote of 50 to 35, but if Senators will the five States whose areas lie partly or ble property, or whether piers could be examine the RECORD to see the declara­ wholly within the basin of the Columbia constl;ucted, or whether any such devel­ tions appearing therein, I believe they River had substantial rights and inter­ opment could be made to serve as an will find that at that time the sentiment ests, and he felt that he did not want addition to the important economy of in the Senate was approximately 57 to 36, those rights to be bypassed, and did not the maritime States. as the votes and positions were shown want the water. iights, which have so The reason for mentioning the point and declared openly upon the RECORD. much to do with the economic develop­ at this time is that the Western States, Furthermore, my recollection is that in ment of the resources of those States, to particularly the Northwestern States, for the House of Representatives-and I see be submerged beneath an all-powerful which the Senator from Washington as­ that we are fortunate enough to have.in Federal set-.up. · · · . sumes to speak this afternoon, all rather the Senate at this time several Members He did not announc·e his position after clearly, by their attitude in selecting who were Members of the House of Rep­ the adoption of the campaign document t]:leir governors, and by expressions resentatives last year-the vote was which has been mentioned by the dis­ through their governors, as well as by nearly 3 ·to 1 in support of the position tinguished Senator, but years before he expressions of the majority of their duly of the States. made it crystal clear: Since th.at time, elected Members in the Senate and House So although I respect highly and am as I recall, he has been highly honored of Representatives, and through adher­ very fond of my friend, the senior Sen.. by the people of his fine State of Oregon; ence to the principles in issue which were a tor from Washington [Mr. MAGNUSON]. I invite the attention of the distin­ set forth rather clearly in the Republican I wish to remind him that I desire to guished Senator from Washington also platform in the past election, have shown have the RECORD show that the two posi­ to the fact that at this hearing there that they subscribe to the very principles tions he has mentioned, and which he appeared the distinguished Governor of against which the distinguished Senator has said are adhered to by the distin· his own State of Washington. Several from Washington has always been very guished nominee, whose nomination to be times since then, and earlier, he has been clear in his oppo~ition. Of course there Secretary of the Interior, I hope the honored by the people of his State by be­ is.controversy on these questions, but the Senate will shortly approve, are posi.; ing elected Governor. He, along with fact remains that the governors of the tions supported strongly and tenaciously the Governor of Idaho, and, as I recall, States in ·that gi·eat Northwestern area not only in his area of the Nation-by the the governors of all the States affected, have consistentiy opposed the position governors and most of the congressional took that position. Certainly it is an taken by the Senator from Washington. representatives-but supported likewise honorable position. Apparently it is a In view of the fact that those States; very strongly by both Houses of Con­ position which is highly regarded by the in their voting in the presidential elec-· gress; and, by the way, they were sup­ people in the area which is· directly tions, have consistently-and unani .. ported in Congress as long ago as 1946, affected. mously, I believe, in the last one-taken when a similar measure was passed. So ·far as the Senator from Florida is that position, for as Senators will recall Mr. ANDERSON. Mr. President, will conce'rned he feels that the distinguished no States outside of the South and the the Senator from Florida yield to me? former Governor of Oregon, Mr. McKay, border States failed last November to Mr. HOLLAND. I yield. · made his record lorig ago, long before support the presidential nominee who Mr. ANDERSON. Since the question the plank was written into the 1952 Re­ was overwhelmingly elected, and who was . of submerged lands has arisen, I wish publican platform. The Senator from inaugurated· yesterday, it seems to me to say that I am sure the Senator from Florida welcomes the fact that the dis­ that the senior Senator from Washing­ Florida is familiar with the fact that tinguished former Governor of Oregon ton clearly expresses a minority position. a former Member of this body from the is consistent and is still following the Although the Senator from Washington State of Washington strongly supported course of action which he followed then, is entitled to express it, it seems to me the point of view advanced by the Sen­ and which the distinguished Governor it is important that the RECORD show ator from Florida, whereas the new Sen­ of Washington followed then in appear­ that he is definitely, distinctly, and com.. ator from the State of Washington sup­ ing before our committee to make their pletely in the minority in his own area, ported the Federal point of view, and position abundantly clear. · and in the minority insofar as the whole was elected by one of the largest majori­ Mr. MAGNUSON. Mr. President, will Nation is concerned. ties a candidate has ever received in the the Senator yield? With reference to the national ques­ State of Washington, even though Gen­ Mr. HOLLAND. I shall be glad to tion that is involved, I hope Senators eral Eisenhower carried the State. So yield in a moment. If' Senators will in­ will allow me to refresh their recollection. I wonder how my friend, the Senator dulge me for a little while I should like Last year we had the so-called tidelands from Florida, would rationalize that sit­ to advert to the so-called tidelands ques­ proposed legislation before us. Despite uation. tion. I recall-and I am very sure that the fact that the admiriistration then in Mr. HOLLAND. I think it is easily my recollection is correct-that the Go·v­ power was using all its powerful influence rationalized. I think the former Sena­ ernor of the State of Washington ap­ against the States and despite the fact tor from Washington had taken posi­ peared before the Senate committee and· that the majority of the oil companies· tions on the fioor of the Senate other 472 CONGRESSIONAL RECORD- SENATE January 21 than the one now under discussion. I State elected our good Governor on .sev­ Mr. MAGNUSON. Mr. President, if think there were a number of other is­ eral occasions. On the other hand, I the Senator from Florida will yield sues beside that one in the election. wish to remind the Senator from Florida further-- Mr. ANDERSON. ·Could not there that I have been elected on several occa­ Mr. HOLLAND. I yield again. have been issues other than the tide­ sions; and our views on these matters do Mr. MAGNUSON. I merely wish to lands issue in the last election? not coincide at all. say that I do not wish to delay the pro­ Mr. HOLLAND. Mr. President, I have I am not saying whether the opinion I ceedings here. I hope no one has re­ the :floor, and I hope the Senator from have expressed was the majority or ceived the impression that I thought New Mexico will permit me to spe.ak minority opinion in my section of the Governor McKay would try to ram any­ in my own time. country. I merely rose to say today that thing down anyone's throat, or that his As I recall, the State of Washington I disagree with the views of Governor philosophy was alien to us. There has still insisted on continuing in office a McKay on the question of water devel­ been a great controversy in our section governor who had that belief, and like­ opment and on the tidelands question. about these matters. I happen to hold wise insisted on going into the Republi­ I said that is my opinion. I wish the to one philosophy and one approach to can column in the national election. So Senator from Florida would permit me them. I am sure that he is not going it would be just as illogical to say that to take it back to the people of my State to try to force anything down the throat that was the sole issue that put the State and see what happens to me. I have of anyone, but I am very fearful that there, as it would be to say that ·it was been in the Senate a long time. I do not the philosophy, which I am sure he has the sole issue that removed a former know how long I shall remain here. accepted honestly, since he is an intel­ Senator who took a position contrary to However, that is my opinion. I have lectually honest man, is going to run that taken by our esteemed friend, the been consistent about it, and I merely counter to my philosophy in the matter. senior Senator from Washington. wish the RECORD to show that. I merely wanted the RECORD to show that If I may continue presenting my Mr. HOLLAND. Mr. President, let me fact. It is not alien to us, for we have thought, let me say that when the Gov­ say that I hope the Senator from Wash­ lived with it. I have lived with it in my ernor of California, the Governor of Ore­ ington will continue in the Senate a long State for 20 years. gon, the Governor of Washington, and time. Certainly his relationships with I may say to the Senator from Florida the Governor of Idaho, when most of me have been most pleasant. that, 20 years ago this month, as a mem­ the Representatives and Senators from Mr. MAGNUSON. As a matter of ber of the State Legislature of Washing­ those areas take that position, when fact, let me point out that another ton, I introduced, fought for, and ob­ such officials are elected over and over MAGNUSON has been elected to Congress­ tained passage of a bill to allow munici­ again-and, as I recall, certainly one in this case, to serve in the other body. palities to sell power outside the city of the issues upon which the distin­ Mr. HOLLAND. The point with which limits. The measure was fought by guished senior Senator from California I was concerned, and about which I every private power interest within the [Mr. KNoWLAND], running under the pe­ arose, was the idea I had received from area, including the same interests which culiar system which prevails only in are now advocating the turning of the his good State as the nominee of both the earlier remarks of my distinguished friend, the Senator from Washington, dams over to the private utilities and the the Republican and Democratic Parties, namely, that if this particular distin­ sale of revenue bonds. Mr. President, if was most vocal was the question of the that means my political defeat, it will preservation of the States' traditional guished Governor is named as Secretary of the Interior, he would attempt to ram have to mean that, because I do not be­ interests and important rights in the lieve that we developed our country in tidelands-and then when the entire down the throats of the Senate and the House of Representatives something the far West in that manner. We have western area of the Nation refuses to used the Federal Government's assist­ listen to some of the ultraliberal ideas, which was not acceptable, something which would constitute a new and hurt­ ance during the past 20 years, and we including opposition to this particular have done a good job. I do not want to tidelands measure, which were voiced by ful theory, whereas my understanding of what has happened in that great section see that job scuttled. I do not imply another party, but insists upon going that Douglas McKay would scuttle it. I along unanimously, without the excep­ of the country is that on nearly all occa­ sions when they have had a chance to do simply do not agree with his philosophy, tion of one State, in support of the and I want the RECORD to show that. new President, I believe those things so, the people there have clearly shown that they disapprove the position now Everyone in the Pacific Northwest knows make a rather good case. how I stand on this matter, for it has On the other hand, when one Senator urged by our good friend, the Senator from Washington, who has so many vir­ been the subject of many political con­ from Washington rises to say that this troversies. Douglas McKay is a fine strong case is negatived by the fact that tues that he has been returned to the Senate consistently on account of those man. We happen to disagree on this one Senator happened to lose in the elec­ question, and that is all there is to it. tion, and that that defeated Senator virtues, for which I rise to plead; in fact, I wish I could plead for them "like angels, Mr. HOLLAND. Mr. President, if it happened to have taken, on this issue, a is understood now that the Senator from position which was in line with the posi­ trumpet-tongued," because those virtues are almost innumerable. Washington is really supporting the tion of the great majority, I believe the confirmation of the nomination of Gov­ Senator who makes that statement to us On the other hand, when the Senator at this time is straining at a gnat, be­ from Washington rushes upstream and ernor McKay, the Senator from Florida cause the overwhelming weight of the butts his head against a wall and seeks will have nothing further to say, but to give the impression which I under­ he, at least, got the impression during evidence is that the West and the great the earlier impassioned speech of the Northwest wish to preserve and safe­ stood he was seeking to give, namely, guard the rights of the States, both with that the present nominee for Secretary distinguished senior Senator from Wash­ reference to the question of water rights of the Interior is following a theory and ington that Governor McKay held to in the development of their great river philosophy alien to the theory and phi­ certain ideas which were so variant from systems and also with reference to the losophy of the senior Senator from those which prevail here that we might narrow coastal belt of land and water, Washington and not approved by the just as well understand that, in the event 3 miles wide in the case of all three of Senate or the House of Representatives, I we confirmed the appointee, we were the Pacific Coast States, which has so was trying to refresh the recollection of facing a terrible battle and were going much to do with their development and the Senator from Washington about the to be overrun from that source. their strength and the prosperity of their fact that quite recently-in fact, as late Since the Senator mentioned the fact various coastal communities. as last summer-Congress rather over­ that, over 20 years ago, he was in the Mr. MAGNUSON. Mr. President, will whelmingly passed the tidelands bill in Legislature of the State of Washington­ the Senator from Florida yield to me at the face of very strong opposition from and I am sure he did an excellent job this time? an administration which at that time there, as he has been here most of the was pulling every string it could pull in time since-the Senator from Florida Mr. HOLLAND. I yield again to my feels that he will be pardoned for men­ friend, the Senator from Washington. the other direction, and which had mar­ tioning the fact that 20 years ago he, Mr. MAGNUSON. I think the Sena­ shaled nearly all the oil companies to tor from Florida is becoming unduly too, was in the legislature of his State, support it in that position, in an all-out since which time he served as chief exec­ excited about the political opinion of the effort to prevent the passage of that pro.. Northwest. I know the people of my utive of his State, and is now serving in posed legislation. the United States Senate, and he knows 1953 CONGRESSIONAL RECORD- SENATE perfectly well the position with reference the Senate. I shall do this, not sullenly, alSo lead one t.o believe that his views to the tidelands taken then and later by but gladly, and with heartfelt approval. on this important farm program are con­ the State government which was com­ I think they are excellent men. Fur· trary to those expressed by President pletely contradictory to that now taken thermore, I am sure that we on the Dem­ ·Eisenhower so clearly in his many farm by the Federal Government, which had •Ocratic side want the administration of speeches during the campaign. not been taken at that time. General Eisenhower to be a success. . President Eisenhower not only has For instance, when war broke out, I Unexpectedly, this discussion, however, committed himself ·to the continuance recall well that the defense author­ turned into a skirmish on some of the of 90-percent supports but in his ities. and Mr. Ickes, who was then the issues which may shortly come before speeches he indicated he believed they distinguished Secretary of the Interior, this body in connection with the power were most necessary. I quote the follow­ were knocking at our door, insisting that policy and the offshore oil policy. I de­ ing from his Kasson, Minn., speech on the State speedily make arrangements sire to speak very briefly on the last September 6, 1952-: with its offshore areas so that they might ·point, merely to define the issue so we And here and now, and without any "ifs" be explored. and so that, if oil were will know what the coming struggle will or "buts," I say to you that I stand behind­ found there, it could- be produced. I be about. and the Republican Party stands behind­ remember likewise that from the same The issue is not tidelands .oil, though .the price support laws now on the books. source strong representations were made that phrase repeatedly occurs. The Su­ '!'his includes the amendment to the basic · to the effect that certain rare minerals, preme Court on many occasions has af­ .Farm Act, passed by votes of both parties in Congress, to continue through 1954 the price ·zirconium, for .instance, being one of firmed that the land which is daily supports on basic commodities at 90 percent them .and rutile-and ther.e were oth­ washed by the tides between the low­ ,of parity. ers-existed in large quantities in the water mark and the high-water mark sands of our submerged coastal belt, and belongs to the States. Later in the campaign at Brookings, that they would greatly appreciate it. We who take a different position on .s. Dak., on October 4, he had this to say.: -if the State, in the exercise of its sov­ this matter from the position taken by I have in a number of texts d.uring this ereign jurisdiction, would speedily enter the Senator from Louisiana and the Sen­ campaign tried to outline the specific posi­ into contracts under which those sands ator from Florida certainly do not wish tion .of the Republican Party and my own might be explored and utilized, so that to change that decision of the Court; in­ personal convictions about agriculture. At Kasson in Minnesota some weeks back, later these rare and needed minerals could deed, we are perfectly willing to affirm in Omaha, and in a number of so-called be produced for the wartime use of our that position by statute, so that no later back-platform speeches, I have tried to make Government. The Senator from Flor­ Court can reverse it. We believe that the my position clear. The Republican Party is ida remembers that not only has .the land washed by the tides ·belongs to the pledged to the sustaining of the 90-percent Florida legislature taken the position States. That is not.the issue. Neither parity price support and it is pledged even consistently that that area belonged to . is the issue the own·ership of the sub­ more than that to helping the farmer ob­ ·the State,. as will appear from the CoN­ -merged lands underneath the bays. That tain his full parity,. 100-percent parity, with GRESSIONAL RECORD, but the Legislature land belongs to the States, according to the gu::ranty in the price supports of 90. of the ·state· of ·Florida unanimously the courts, and we are willing to a:flirm Certainly no one statement could more ·passed such a reSolution and · sent it it by statute. Neither is it the ownership · precisely state his views .in support of ·here, and our governors throughout the of the land underneath inland lakes and ·the continuance of 90-percent supports intervening years, thdugh sometimes of rivers. That also belongs to the States for at least basic farm commodities. ·differing philosophies, have all taken -by court decisions, and we are willing to Many of us in Congress, during the that position. The position has been a:flirm it by. statute. The issue is simply course of the campaign and over a wide taken likewise by the governors and by .the ownership of and the paramount area of the United States, quoted time the cabinet members as members of the rights in the submerged land seaward and time again from President Eisen­ o:flicial boards which operate our State. from the low-water mark. That is the hower's speeches. We told the farmers Those views have been taken consist­ point, and as we move into that debate that if General Eisenhower were elected ently by the entire congressional dele­ it is highly important that the issue be he would continue these programs, and I ·gation from our State, and there has at once narrowed and be understood. am convinced that is his intention now. not been one drop of oil ever found in . Mr. YOUNG. Mr. Pr.esident, I wish to 1 am sure he believes in their necessity. the offshore areas of our State. . speak briefly in opposition to the con­ Personally, I believe that the continu­ It is not the oil question which prima­ ..firmation of the. nomination of Mr. Ezra ance of at least 90 percent price sup .. rily concerns us, but the fact that all the Taft Benson as Secretary of Agriculture. ports are more necessary now than for ·other factors, of which I mentioned but · It is with great reluctance that I feel many years past. For example, the a few a few minutes ago, relate so defi­ compelled to vote against the confirma- Government of the United States has nitely to the performance of local func­ . tion of Mr. Ezra Taft Benson as Secre·­ asked for increased production of many · tions and to the carrying out of local tary of Agriculture. Mr. Benson is an farm commodities and particularly ma­ responsibilities and also relate so directly exceptionally fine person. He is an jor crops such as wheat, cotton, corn, and definitely to the prosperity and honest, able man, and one of high in­ and many feed grains which are vital to growth of our great coastal communities tegrity and purpose. No one could ques­ our war preparedness program. Cer· that they should not be subjected to the tion his devotion to the cause of agricul­ tainly so long as we have large. Gov­ paralyzing hand. of Federal control. ture. My vote against his confirmation ernment-sponsored surpluses, .a farmer Therefore, we should not be a party to as .Secretary of Agriculture is solely be­ could never expect to receive a fair cash setting up an. additional octopus at cause 'I disagree with his apparent views P.rice. It is well known that even a Washington, to add to the already too on farm price supports and some other 5-percent surplus of almost any com­ large Federal Government, which, by its important phases of agricultural pro­ modity will greatly depress prices. Like­ greatness of size. batlles almost any mind .grams. wise, a 5-percent shortage will greatly that tries to grasp its many problems. My vote against. his confirmation is inflate prices. So I will ·very gladly yield the fioo.r, .since difficult because I am not certain as to Farm income has been dropping stead­ I now understand that the distinguished what his views really are. His public ily for the past 4 .or 5 years and very Senator from Washington, my good statements and those that he made be­ sharply in the past year. Farm income ·friend, is not now arguing against the fore the Senate Agriculture Committee ·last year alone dropped approximately confirmation of the nomination of Gov­ when he appeared. .for confirmation were 12 percent. Farmers now are in a bad ernor McKay as Secretary of the· Inte­ not clear as to what his policies will be. way economic.ally even with price-sup­ rior-far from i~but that instead he After reading a biographical sketch of port programs· which, in many respects, now wishes his nomination to be speedily Mr. Benson which appeared in the Wash­ are inadequate. Farm indebtedness is confirmed, and he was simply voicing nis ington Evening Star under date of Janu­ increasing at an alarming rate. .To own views in opposing some of the ..ary 15, 1953, one would be led to believe abandon the price-support program now, philosophy of Governor McKay. that he is opposed to all price-support or even in years to come, unless there Mr. DOUGLAS. Mr. .President, I am programs. The article itself may not is some drastic change in our food sup­ going to vote for the confirmation of the give an accurate pict·ure. of w.hat Mr. ply. and price situation, would mean not nominations of all the members of the Benson,s views are. Many other news ·only disaster for the farmers, but. it Cabinet appointed by President Eisen­ stories, purportedly quoting from his would put our entire economy in a tail­ hower whose nominations are now before speeches since being appointed, would spin. lndeed, .even with our present 474 CONGRESSIONAL RECORD- SENATE January 21 price-support program, a depression the distinguished Senator from North ging down the industrial and labor seg­ may be difficult to forestall. Dakota referred to the address which ments of our economy. Some may argue that Mr. Benson has President-elect Eisenhower delivered at I think the most vital domestic deci­ promised to carry out present price-sup­ Brookings, S. Dak., and related it to his sion the Eisenhower administration will port laws. Unless the Secretary really position with reference to the nomination have to make is with respect to the ques­ believes in the necessity of farm price­ of Mr. Benson to he Secretary of Agri- tion of what should be done to provide support programs, he could carry out our culture, I should like to say very defi- a sound program for the maintenance present law as written and still eliminate nitely that my voting to confirm the of agricultural prices that will keep the over one-half of our present vitally nomination of Mr. Benson does not mean - agriculture segment of our economy from needed price-support operations. For that I am abandoning in any sense the going bankrupt. example, under the law, price-support position I have taken with respect to I read the Senator's statement before programs for oats, barley, rye, soy beans, support prices. he made it on the floor of the Senate, many grass seeds, perishables, and oth­ With the indulgence of the Senator and I commend him most highly for ers are optional with the Secretary of from North Dakota, I should like to call raising this important question now and Agriculture to support at from zero to attention to the fact that the hearings for the soundness thereof. 90 percent of parity. On all these com­ now before us show that the· distin- I understand that Mr. Benson is a modities and others the Secretary would guished Senator from North Dakota read Christian gentleman of very fine charac­ be in compliance with the law if he, in to Mr. Benson during the hearings this ter, a man of outstanding ability. I his own judgment, deemed it advisable paragraph from the statement of Presi- believe that the President of the United not to have .any price-support program dent Eisenhower at Brookings, S. Dak., States, after making sure that his no~­ whatever. . on October 4: inees are men of character and ability, Many Members of Congress and others I have in a number of texts during this has a right to make his own choices. I told farq1ers during the course of the campaign tried to outline t}J.e specific posi- shall vote for the confirmation of the campaign that, if elected, General Eisen­ tion of the Republican Party and my own nomination of Mr. Benson with the un­ hower would continue the important personal convictions about agriculture. At derstanding that I have the right, along Kasson in Minnesota some weeks back, later with other Senators, to try to persuade price-support program and that he sin­ in Omaha, and in a number of so-called cerely believed in it. We who thus back-platform speeches, I have tried to make him to our viewpoint, and to vote quoted what we believed to be General my position clear. The Republican Party is against his policies if he does not come Eisenhower's position on price-support pledged to the sustaining of the 90 percent around to our way of thinking. programs would be in a most embarrass­ parity price support and it is pledged even Mr. YOUNG. I thank the Senator ing situation, to say the least, if Mr. more than that to helping the farmer obtain from Mississippi. He has made a fine Benson decided to discontinue these his full parity; 100 P.ercent parity, with the statement; and coming, as it did, from programs. guaranty in the price supports of 90. one of the best friends agriculture ever In many speeches, both in North Da­ After reciting that, the Senator from had in the Senate, it is greatly appreci- kota and as far away as California, dur- North Dakota asked Mr. Benson: ated. ing the course of the campaign, I told Do you agree with his policy? I now yield to the Senator from Utah. farmers-including my three farmer Mr. BENNETT. I have been inter­ sons-that General Eisenhower believed The hearings show that Mr. Benson ested in the statement of the Senator in price-support programs just as I did replied: from North Dakota. It seems to me and, if elected, would continue them. Yes. I think the General and I are in that it is not Secretary-designate Ben­ Mr. Benson, in my opinion, has not ex- general agreement, Senator, on this matter. son whom he puts on the spot, but it is pressed himself plainly and _clearly as to I merely wish to· say that I expect to President Eisenhower, because President what his position will be, which leads me vote for the confirmation of the nomi­ Eisenhower's statements were m~de dur­ to think that he does not believe in price nation of Mr. Benson. While perhaps ing the campaign. It was after those supports. I may be wrong in my ap- there may be some phases of his admin­ statements were made that he chose his praisal of Mr. Benson's views, and I hope istration with which I will not agree, yet Secretary of Agriculture. I am. If I am wrong, I shall be the first under the criteria which have been dis­ Does the Senator believe that the man to make public apology for having today cussed for the confirmation of Cabinet President· Eisenhower chose to be his opposed the confirmation of the nomi- appointments, I think I may vote for Secretary of Agriculture would repudi­ nation of Mr. Benson as Secretary of confirmation of his nomination, al­ ate that basic part of his campaign Agriculture. though, as I have indicated, occasiOhs policy? Mr. LANGER. Mr. President, will the may arise in his case, as in the case of • Mr. YOUNG. I may say to my good Senator yield? other nominees, when I will not wholly friend, the Senator from Utah, that I Mr. YOUNG. I yield. agree with his views. So in voting for do not think he would. I want to make Mr. LANGER. Is it not true that the the confirmation of their nominations, I sure campaign commitments are kept. indebtedness of the farmer in the North- :reserve the right to disagree on specific Nowhere in the campaign speeches did west at the present time is larger than it issues, if I feel that I should do so. I hear President Eisenhower advocating was even at the time of the depression? Mr. STENNIS. Mr. President, will flexible price supports. Yet Mr. Benson, Mr. YOUNG. Yes. I would say to my the Senator yield? in answering questions, led me to be­ distinguished colleague that that is Mr. YOUNG. I yield. lieve that he may favor flexible supports exactly correct. The .financial situation Mr. STENNIS. I should like to com- over rigid 90 percent supports. As I said of the farmer is deteriorating day by day, mend highly the Senator from · North before, I may be wrong. If I am, I will and that in spite of favorable crops over Dakota for bringing to the attention of be the first to apologize. most areas of the United States. the Senate the most vital question of Mr.· BENNETT. Is it not true that Mr. LANGER. Is it not also true that price supports for agriculture, not a give­ while the nominations of department we are receiving more letters from farm- away program of any kind, not a shored­ heads must be confirmed by the Senate, ers of the Northwest trying to obtain up program, but simply a program that such officers may be removed at will by loans than we have received at any other will give agriculture a chance to get the President? Is it not reasonable to time in the past? some kind of fair break in the market suppose that if a Cabinet officer should Mr. YOUNG. Certainly more than I places and a chance to come out even repudiate the President's position, the have received during my term in the and perhaps make a little profit from -President could easily remove him? Senate. time to time. . Mr. YOUNG. Yes; that is correct. Mr. LANGER. And it is becoming I myself am in favor of 90 percent of Mr. BENNETT. Under the circum­ more and more difficult to obtain loans? parity-rigid, mandatory price supports stances, it seems to me that we are Mr. YOUNG. That is correct. for basic farm commodities. I certainly jumping at conclusions to assume that Mr. CASE. Mr. President, will the hope that the new Sec.retary of Agricul- at the request of the President Mr. Ben­ Senator from North Dakota yield? ture, if not already fully persuaded to son would take an office which he did Mr. YOUNG. I yield to the distin- that viewpoint, will come around to it, not seek, with a determination to violate guished Senator from South Dakota. not as a favor to agriculture, but because the campaign promises of the man who Mr. CASE. Mr. President, I do not it is a necessary part of the machinery has nominated him for that office. It is wish to delay the confirmation of the of our economy, to keep agriculture from hard for me to believe that such a situ­ nomin~tion, _but in view of the fact that •. : becomtng bankrupt, and thereby drag- . a.tion could exist. I hope the Senator 1953 CONGRESSIONAL RECORD- SENATE 475 from North Dakota will change his posi­ tion of the Secretary of Agriculture is upon the market at the height of the tion and vote with the other Senators with respect to price-support programs. marketing season this fall. There could for the confirmation of Mr. Benson's lf he is enthusiastic about the need of be no other result than a break in the nomination. price supportsJ then he might be expected price. I am not going to discuss that Mr. AIKEN rose. to continue these programs. If he is op­ ·question today, because it would take too Mr. YOUNG. I yield to the Senator posed to them in principle, then we could long. I simply wish to point out that the from Vermont. · expect either their complete elimina­ points made by the Senator from South Mr. AIKEN. I desire the floor in my tion or support at lower levels. Dakota were raised in the committee own right, when the Senator from North Mr. HOLLAND. Mr. President, will meeting last Thursday when Ezra Ben­ Dakota has finished yielding. the Senator yield once more? son appeared before the committee for Mr. HOLLAND. Mr. President, will Mr. YOUNG. I yield. examination. The Senator from North the Senator yield? Mr. HOLLAND. Am I then to under­ Dakota there ra~sed the points which he Mr. YOUNG. I yield. stand that the position of the Senator has made today. Mr. HOLLAND. As the Senator k:pows, from North Dakota is based upon the· The other members of the committee the Senator from Florida also was upon fact that certain prices are flexible, and did not share his alarm or fear that E:z;ra the committee, as was the distinguished that he is unwilling to approve the nomi­ Benson as Secretary·of Agriculture would Senator from North Dakota, who inter­ nee for Secretary of Agriculture because destroy or weaken the farm programs rogated Mr. Benson at some length with he favors .tlexible price supports except which are now in effect. In fact, · Mr. respect to his views upon various agri­ as to basic crops? Benson said that he would strengthen eultural matters. Mr. YOUNG. I have not been able to them to the best of his ability. I am My only question is this: Does not the find out what Mr. Benson's thinking is. sure he will do so. The Republican Senator well remember that, not ·once, I gather from General Eis~nhower's platform states that "a prosperous agri· but several times during the course of speeches that he was for 90-percent sup­ culture, with free and independent farm­ the hearing, Mr. Benson made it very ports as against :flexible supports. At ers, is fundamental to the national inter­ clear. by specific· statements, that he re­ least all the leading publications of the est." That is a worthy objective. I am garded himself as being solely an admin­ Nation, including large magazines such sure·that Mr. Benson will do everything istrative officer; that he would be there as Time, Newsweek, and others, assumed within his power to achieve tlfat objec­ solely to carry out future policies that that he was in favor of 90-percent sup­ tive. Ws did not feel that it was fair may be enacted by Congress, and present ports. Nowhere in those publications to Mr. Benson to ask him to tell us today policies that have been passed by earlier did I see any statement to the effect that what his position would be 3 or 4 years Congresses? he favored :flexible supports. Indeed, he from now, or whether he would approve Mr. YOUNG. I am very happy that never advocated them during the cam­ this or that method of maintaining a the Senator from Florida has raised that paign. But after Mr. Benson was ap­ prosperous agriculture at some future question, because it is an important one, pointed there were several news stories time. No one knows what we shall have so far as I am concerned. _ to the effect that he was inclined toward to do to maintain a prosperous agricul­ The law now provides that all farm .fiexibl~ supports, or perhaps no supports ture and a healthy economy 3 or 4 or 5 ~ .commodities can be supported up· to 90 at all. years from now. We simply cannot see percent of parity. I think there ar·e Mr. HOLLAND. Mr. President, will · that far into the future. But we do have about 150 farm commodities altogether. the Senator yield for one further ques· the objective of a prosperous agriculture, Over half of the commodities now receiv­ tion? with free and independent farmers. I ing price supports are on a discretionary . Mr. YOUNG. I yield. know of no man who is better equipped basis with the Secretary of Agriculture. Mr. HOLLAND. Is the basis of the with sound thinking and integrity to · The Secretary of Agriculture would be Senator's position, then, primarily that undertake to achieve that objective than acting in complete compliance with the he does not favor flexible price supports is Mr. Benson. · law even it he were to eliminate the for any commodities, even the nonbasic Mr. WATKINS. Mr. President, the price-support program we now have f,or commodities? people of Utah are justly proud of one of many commodities, including oats, Mr. YOUNG. There are some -com­ Utah's great citizens, who was chosen by barley, rye, flax, soybeans, grass seed, modities for which I think flexible price General Eisenhower to be Secretary of .cottonseed, and many others. Elimina­ supports have a place, but certainly not Agriculture. Mr. Benson did not seek tion of price supports on these crops is with respect to basi-c commodities. this position. He was not acquainted optional with the Secretary of Agricul­ When the Government is asking for in­ with General Eisenhower, but he had ture. He would be acting in complete creased production, and large surpluses many friends throughout the United compliance with the law if he wiped out are being created by the GovernmentJ States who knew of his service to agricul­ that phase of the program tomorrow. the farmer could not possibly hope to ture, his understanding of agricultural Mr. HOLLAND. Mr. President, will receive a fair cash price under such cir­ problems, and his sympathy with the the Senator yield further? cumstances. farm people of this country. It was Mr. YOUNG. I yield. Mr. AIKEN. Mr. President, I do not largely as a result of this widespread Mr. HOLLAND. The comment by the rise to discuss the merits of a rigid 90- support that his nomination as Secre· Senator from North Dakota and his feel­ percent support pr,ogram at this time. . I tary ·Of Agriculture was brought about. ing that he cannot support the. nominee do not question the statement of the I regret that my good friend from relates entirely to nonbasic crops, not to Senator from North Dakota with regard North Dakota [Mr. YoUNG] finds himself the basic crops, of which, of course, to the plight of the farmer today. The in the position of being unable to vote wheat is one of the principal ones, and farmer's plight today is serious, but that for Mr. Benson. I think probably Mr. is the principal crop in North Dakota, can in no way be charged to Ezra Ben­ Benson's position is as clearly stated as for which fixed-price- supports are pro­ son, whose nomination has not yet been was that of any of the other men who vided in the law now existing. confirmed, and who .could not perform a appeared before the various committees Mr. YOUNG. That is correct. Wheat -single official act. · to give their views on the problems in­ is one of the commodities. Cotton, to­ The plight of the farmer today is due volved in the various departments before bacco, rice, peanuts, and dairy products to a considerable extent to the misappli­ .confirmation of their nominations. are a few that have mandatory supports cation of the law as intended by the Con­ I invite the attention of Senators to at from 75 percent to 95 percent of gress. The plight of the North Dakota the fact that Mr. Benson is pledged to parity. Where the price-support pro­ grain farmer today is due largely to the support the Republican platform for gram is mandatory under the law, the fact that the late administration per­ 1953. Mr. Benson has affirmatively Secretary has no alternative but to carry mitted the importation of price-breaking stated that he subscribes to the policies out the program. However, under ·the quantities ·Of low-quality grain from outlined by General Eisenhower. I could law, as I pointed out before, a.il of the Canada. read many quotations to support that crops except potatoes are eligible for It is due partly to the fact that the statement. Later I shall ask to have the price supports but the Secretary ·can Secretary of Agriculture placed upon the entire hearing printed in the CoNGREs­ · support them or not with the exception market 50,000,000 bushels of corn and SIONAL RECORD as. a part of my remarks. of a few commodities that have manda­ a great quantity of wheat-:-! think i5,­ At that hearing Mr. Benson made very tory supports. That is what makes it ooo,ooo bushels of Commodity Credit elear his support of General EisenhowerJs really important to know what the posi- Corporation-owned wheat were placed farm program. 476 CONGRESSIONAL RECORD~ SENATE January 21 Mr. Benson has stated that he will In the interest o! continuity o! the work the members of this committee may .have support the present price-support pro­ and of saving time, most of the committees some more things they want to know about · that are having to consider prospective Cab­ you and your work. · ~ram so long as it endures. inet members are having advance informal It seeins to me that in the interest of sav· Mr. Benson told the committee that meetings. They have to be informal. We ing time, perhaps, and efficiency, we might he will not change the present support are meeting officially but Mr. Benson cannot have each member of the committee ask you policies over night, but will study them be officially a nominee until he has been such questions as they wish to. Personally, before he acts. That statement refers named by the President. I have known you for a long time and I do to the discretionary matters which are In the event that the members here de­ not know at this moment of anything that left within the Secretary's control. cide-after talking with Mr. Be11son and [ wish to ask you. quest ioning him on whatever they want to­ I will start with Senator YouNG and then Mr. Benson has said that he will give that they are satisfied with his qualifications alternate back and forth across the table. the producers the level of support guar­ to handle the job, then as I understand it Senator YouNG. I would like to ask a few anteed by law. In other words, he will when the nomination is placed before the questions of you, Mr. Benson. First, I want carry .out the law. Senate next Tuesday, I will be in a position to say that you do enjoy an excellent repu­ Mr. Benson declared that our objec­ · to get up and say that the committee mem­ tation. Certainly no one could question tive should be full parity. That, of bers have considered· Mr. Benson, have looked your loyalty to farm causes and your devo­ course, is in line with the Republican him over, decided that he is all right, and tion to all the problems of agriculture. There ·platform. that we are not interested in havi11g the may be some honest differences of opinion nomi~ation referred to the committee, in and I am particularly concerned about some Mr. Benson has said that he wants the which case it can be acted upon immediately views that you might have. soil-conservation program continued. by the Senate so that the work of the De­ I think we all know that agricultural in· Mr. Benson told the committee that he partment may continue without any break. come has been dropping steadily and severely will be aggressive in carrying out the we have asked Mr. Benson to meet with for the past 6 years. I have some market mandates of Congress with respect to us here today. Let me say that immediately quotations with me that are of significance. agriculture and other matters. That is following this part of the meeting I would For example, farm prices for oats in North one of the most important statements like to have a short executive session because Dakota are 60 cents a bushel based on Bis­ there are certain things that we have to do marck, N.Dak., as of this week. The support of them all. · If he carries out the man­ before we can officially get under . way for dates of Congress which fix the policies price is 80 percent of parity or 69 to 72 cents the session's work. a bushel average in the State. The low farm under which this Government is to oper­ I think it might be a good idea, Mr. Bensm.~. price is due largely to the importation of ate, then we should be satisfiep. if you will start out by telling this commit­ Canadian oats. Largely because of imports, As to his character, his sincerity and tee who' you are, what you have done, and and I think some improper handling of the his honesty in carrying out the pledges anything else that you think is pertinent. present price-support program, and lack of he makes, there can be no doubt among Tell us something of yourself. exports, prices are in a bad way. those who know him. Mr. Benson is an STATEMENT OF HON. EZRA TAFT BENSON, SECRE• The outlook for the future is not too good. honest man, and a Christian gentleman. TARY-DESIGNATE TO THE DEPARTMENT OF I would like to know if you subscribe to ·the He believes in the great destiny of this AGRICULTURE policies as outlined by General Eisenhower in country. When he makes a ple.dge, as he Mr. BENSoN. Senator, members of the his campaign speeches. I would like to read has done in his statement to the com­ committee, I consider it a great privilege and two or three short quotations and ask if you a great honor to come here today. It is a agree with them. mittee and to General Eisenhower, I ·am bit embarrassing to talk about ·myself. In his Kasson, Minn., speech on September sure that the people of the country, par­ There is not much to say. I of course have 6, 1952, Genera1 Eisenhower had this to say: ticularly the ·farm people, · can accept always been interested in agriculture. I am "And here and now, and without any 'if's' that pledge at 100-percent value, with a native of the State of Idaho, born and or 'but's,' I say to you that I stand behind­ the firm assurance that it will be carried reared on a farm in that State; one · of 11 and the Republican Party stands behind­ out. children, all born on the same farm in the the price-support laws now on the books. I do not c·are to prolong this discus­ same farm home, and in the same room. This includes the amendment to the basic sion. I now ask unanimous consent to I worked on the farm, later operated my Farm Act, passed by votes of both parties in own farm and later was a county agricul­ Congress, to continue through 1954 the price have printed in the RECORD at this point tural agent. For a period I was with the supports on basic commodities at 90 percent as a part of my remarks the entire hear­ State land-grant college doing extension of parity." ing before the Committee on Agriculture work in marketing, and later did some grad­ Later on at Brookings; S.Dak., on October and Forestry of the Senate, on the nomi­ uate work at Iowa State College at Ames 4, he had this to say: nation of Ezra Taft Benson to be Secre­ and the University of California, and engaged "I have in a number of texts during this tary of Agriculture. From that hearing in some livestock business, feeding, running campaign tried to outline the specific posi.;. -it will be learned that Mr. Benson an- livestock on the range. My whole. back­ tion of the Republican Party and my own ground and interest have been in agricul­ personal convictions about agriculture. At swered frankly all questions asked of him tural work. that would give light on his views on, and Kasson in Minnesota some weeks back, later I was here in Washington for a period o! in Omaha, and in a number of so-called back· support of, General Eisenhower's farm 5 Y:z years as a representative of one of the platform speeches, I have tried to make my program. !arm groups, as you know, Senator. position clear. The Republican Party is There being no objection, the tran­ The CHAIRMAN. The National Council of pledged to the sustaining of the 90-percent Farmer Cooperatives. script of the hearing was ordered to be Mr. BENSON. The National Council o! parity price support and it is pledged even printed in the REcoRD, as follows: Farmer Cooperatives, as its executive secre­ more than that to helping the farmer ob­ EZRA TAFT BENSON, SECRETARY OF tary. I served on some agriculture commit­ tain his full parity, 100-percent parity, with AGRICULTURE-DESIGN ATE tees and have been intensely interested in the guaranty in the price supports of 90." Do you agree with his policy? (Thursday, January 1'5, 1953) · the industry and I am very proud to be Mr. BENSoN. Yes. I think the general and UNITED STATES SENATE, associated with it. I do not know that I need say more, unless I are in general agreement, Senator, on this COMMITTEE ON there are some questions on my background matter. If I could, in answer to that, I AGRICULTURE AND FORESTRY, and experience in agriculture. I have, of would like to read to you just two or three washington, D. c. course, a deep love for the people who are paragraphs which represent my views as I The committee met, pursuant to call, at close to the farms. I have great confidence understand my views now. 2 p. m., in room 324, Senate Office Building, in them. I think they are a solid, substan­ Of course, I am new, as you know, and I Washington, D. C., Senator GEORGE D. AIKEN, tial segment of our society. I think they ·am not as familiar with all the prograins of of Vermont, presiding. represent one of the real bulwarks we have the Department as I hope to become. I have Present: Sen a tors AIKEN (chairman) , in this country against many of the move­ felt that we have sufficient programs and YOUNG, THYE, HICKENLOOPER, MUNDT, WIL• ments and programs that may destroy our policies already established in the Congress LIAMS, SCHOEPPEL, WELKER, ELLENDER, JOHN• way of life. that can pretty well get at this problem Q! STON Of South Carolina, HOLLAND, ANDERSON, I do not suppose there is any other group prices. I know we have a problem. Some and CLEMENTS. that.knows so well that "As ye sow, so shall prices have been declining. Congress has The CHAIRMAN. Tlie committee will please ye reap." I have alw~ys been proud t? be provided the machinery to help to meet these come to order. associated with them, to serve them, and I situations as they arise. I am in sympathy The primary purpose of calling this meet­ feel very much indebted to them for what with that machinery. ing today is to invite the members to meet they have done for me. I say this: To me the object of all labor the prospective Secretary of Agriculture, Mr. I am very happy over the prospect of possi­ on the farms is to provide consumers of the Ezra Benson. bly helping to serve further this important Nation with food and fiber at reasonable Mr. Benson has not yet been nominated segment of our population. J?rices and, at the sa_me time, to improve the and, of course, he cannot be nominated for The CHAIRMAN. I think that is a very good productivity of the basic land resources and the position until General Eisenhower takes general background picture that you, :qave to contribute to rising levels of nutrition the oath of office next Tuesday. given us, Mr. Benson. I expect that some of and living. 1953 CONGRESSIONAL RECORD- SENATE 477 I think that we have not reached the to be introduced. This bill would extend 90· the basic commodities, so-called, but other standard of living yet that we are hoping for percent support for basics for three addi· commodities as well. I am in full sympathy. for rural people, or people in the cities, either. tional years. We want to get the very best policy we can, The reward of such labor must be a steadily Would you care to comment? and I do not think Government supports are rising standard of living for our farm popu· Mr. BENsoN. I would prefer not to, Senator. a substitute for a fair price in the market lation fairly related to that of the other great Senator YouNG. I think, Mr. Benson, it is place. The whole thing is involved in the productive groups of the Nation. I believe customary for a prospective Cabinet :tnember problem. I would like time to study the that firmly. to answer questions such as that. question and become more familiar with it I believe our agriculture policy should aim Mr. BENSON. I would like time to get better before I commit myself. to achieve full parity prices and parity in· acquainted with the problem involved, with Senator YouNG. Of course, the uncertainty come in free markets as the long-term objec· the legislation now on the books, before of your public statements, Mr. Benson, is tive. This objective can be achieved only making any commitments for the future. having an adverse effect on farm prices now. with general prosperity, high employment I think it would be unwise for me to make I do not know of anything that would bolster and production, along with increased out­ any commitment beyond the extent of the farm prices now more than a clear-cut state­ put per worker, throughout the national present legislation, at least at this moment. ment from you with respect to these price­ economy. Senator YouNG. You would agree, though, support programs. There is an interrelationship. Agriculture if General Eisenhower himself said that the Will there be a lowering of price-support today is not like it was a generation or so party is for sustaining 90-percent supports, programs or will they be maintained at the ago. The most important method to me of and in the absence of any speeches support­ present levels? promoting agricultural and natio~al welfare ing the flexible idea of supports, that his Mr. BENSON. Do you mean immediately is the support, from a long-term standpoint, position would be for 90-percent support? when I take office? No. of adequate programs of research and educa­ Mr. BENSON. I understand he is committed Senator ELLENDER. You could not change tion in the production, processing, market· for 90-percent support for the next 2 years it overnight. ing, and utilization of farm products, and in at least. lV.rr. BENSON. No; it is not going to change. problems of rural living. Senator Yo'CTNG. There is another very im­ I will be in full support of it. This is the way which has enabled our portant part of the Kasson, Minn., speech Senator YouNG. Many of these -price sup-. farmers in the past to do their full share I would like to read to you: ports are optional. Oats, barley, rye, and in providing the American pepole with "As provided in the Republican platform, soybeans, and maybe 50 others that we are the highest standard of living in the world. the nonperishable crops so important to the now maintaining, are optional with the Sec­ The development, however, of modernized, diversified farmer-crops such as oats, barley, retary of Agriculture. mechanized, commercial agriculture which rye, and soybeans-should be given the same Mr. BENsoN. We plan to use the machinery has made-possible these great advantages has protection as available to the major cash that is availa_ble to support the prices for the placed the family farm in a vulnerable eco· crops." · farmers. That is my feeling. nomic position. I think this is generally a In other words, he advocates extension of Senator YoUNG. At what level? point that is not recognized because farm the same supports now enjoyed by basic Mr. BENSON. At whatever level is provided prices and income decline more rapidly than farm commodities to oats, barley, rye, and for in the law. farm costs. soybeans. Senator YouNG. Most of them are nothing There is always a lag. Hence, the guard· Mr. BENSON. That involves so;me very seri­ to 90 percent. Oats, barley, rye, all the grass ing of farm standards of living requires a ous problems. I am not prepared to say see

Senator YoUNG. I am not quite satisfied Mr. BENSON. I have ~ld, I think, 1n gen• Speaking for the cotton area where I come with the answer, Mr. Benson, but I will pass eral, that anything that will improve our from, last October, as I recall, cotton was. for the time being. marketing machinery, our methods of dis­ selling for over 38 cents and today it is al­ The CHAIRMAN. Senator ELLENDER? tribution, will be of benefit not 9nly to the most down to 31 cents. You remember the Senator ELLENDER. Mr. Benson, of course I farmer but to the producer. Depart~ent of Agriculture urged the farm-. realize your position. Not being Secretary I have been hopeful that we might do ers to plant a great big crop. The goal was· yet, you may pe at a disadvantage to tell us more toward developing industrial uses and 16,000,000 bales.. TP.e Lord only knows what what you want to do. I do not think you all possible uses of farm products. I have would have happened to the price of cotton need fear being frank with us in answering been interested in that, and in the develop­ had they produced that much. the questions, whether you are Secretary or ment of further foreign markets for our We fell short a million bales of that goal; not. agricultural products. yet prices have gone down and -down and You said that you believe farmers should Senator ELLENDER. Do you think that can down. Have you any remedy to suggest as to get full parity? be done? If so, how? how we could help that segment of our Mr. BENSON; I think that should be our Mr. BENSON. I think it ought to be ex­ economy? objective; yes. plored very carefully. I am not sure but Mr. BENSON. Possibly we need to be a little Senator ELLENDER. How are you going to what it can be done. more careful about setting goals. do that? I think you should be able to tell Senator ELLENDER. We have been exploring Senator ELLENDER. But of course what we us. We have been trying-at least ever since it, to my knowledge, for many years. I have expected, you understand. was that the for­ I have been in th~ Senate, and I have been found this, at least in recent years: So long eign consumption would be around 6,000,000 here 16 years now-I have been trying to as we furnish our friends across the seas with ~-r bales, but it happened to be only 4,000,000. obtain that goal. money with which to buy our farm products, I believe that was because we did not give Mr. BENSON. I know you have. we have no trouble disposing of them. Have them enough money with which to buy our Senator ELLENDER. It is all sweet words. you any clear-cut views as to how you pro­ own cotton. You favor the farmers getting full parity. pose to create a better market for our farm Your remedy in that case would be then I would like to have you tell me or tell the surpluses abroad? · to lower the goal? ~ommittee how ,you expect to obtain that Mr. BENSON. I have not worked them out Mr. BENSON. I think that if we are going goal. in any detail, Senator. I am not at all con­ to have the price supports at a high level Mr. BENSON. I do not know that I have vinced, however, that there are not oppor­ then the question of acreage goals, produc­ the answer offhand, Senator. I think we tunities to develop some markets abroad. tion goals, becomes very important. need to place a lot of emphasis on our exist­ Senator ELLENDER. A man assuming ·the Senator ELLENDER. You are familiar with ing programs for more adequate research Secretaryship of Agriculture, it strikes me, the statement made by our present adminis­ and education. ought to have ~ome definite views on such a tration that food in all probab111ty is going Senator ELLENDER. That would mean more subject as that. It has been before us for to win the peace and for that reason we keep production. many, many years. I have , contended for on growing a lot of wheat; corn, cotton, and Mr. BENSON. And better distribution­ a long time that we ought to be able to sell a lot of this, that, and the other. more effective distribution, utilization, and more abroad, but somehow we have not If you, as Secretary of Agriculture, should marketing of our farm products. I presume found any good solution to the problem. set goals for the production of certain com­ we will need some supports to prevent undue I am wondering if you have studied the modities, you would of course expect to pro­ disaster. " subject to such an extent that you might vide some kind of incentives that those goals Senator ELLENDER. When you say "sup­ be able to give us an inkling of how you would be reached; would you not? ports" do you mean along the same lines as think that will be accomplished. Mr. BENsoN. Yes, 1f there is a need for are provided in the present laws? · Mr: BENSON. I have thought many times those incentives. Mr. BENSON. Possibly. I hope we can even as we give this foreign aid, give our dollars Senator ELLENDER. Do you not think there improve on them. to foreign countries, that there could be would be? In other words, if you requested Senator ELLENDER. Why can you not be some arrangement so that they would be the farmer to produce so many bushels of more specific? required to spend at least a portion of that wheat, so many ~ bales of cotton, do you not Mr. BENSON. Because I have not had an for our agricultural products here. think that he ought to be protected to some opportunity to study the present program in Senator ELLENDER. That is when we are extent, at least against any losses in the detail. giving foreign aid. I hope we will not have event that they should reach the goal that Senator ELLENDER. You have been in the to continue that. What I am talking about you advocated as Secretary of Agriculture? farming business all your life? now is when we get back to normalcy. Mr. BENSON. Our farmers have always been Mr. BENSON. Yes; that is right. The CHAIRMAN. You are an optimist. . pretty willing to produce. Senator ELLENDER. I am surprised that you Senator ELLENDER. Congress has been ap­ Senator ELLENDER. I understand that. did not keep up with the development of the propriating in the past few years quite a few ~. BENSON. The principal incentive, of program. billion dollars to help our friends a.cross the course, has been the price in the market Mr. BENSON. I know something about it, seas. I do not believe tllat we are going to place. Senator. be as liberal in the future as we have been Senator ELLENDER. Right. Senator ELLENDER. You know something in the past. So; let us put that out of the Mr. BENSON. Of course, I think that ts about it? picture for the time being. desirable. Because of the relationship of our Mr. BENSON. Yes; I know something about Assuming that that will occur, what spe­ industry to foreign markets, to our farm it. cific suggestions have you to offer to the program, if that incentive is not su1Dcient, Senator ELLENDER. You knew enough to committee as to how you h·ope to expand then it may be necessary and probably will criticize it; did you not? these foreign markets? be to add additional incentives. That is Mr. BENSON. Well, no; I do not think I Mr. BENSON. There was a time, Senator, what we have done through the price-support have criticized it unduly. when we did quite a lot, I understand, in program and other programs. Senator ELLENDER. This 90-percent pro­ the Department of Agriculture, to help to Senator ELLENDER. So that you are of the gram on basics, if that question comes up promote the use of our own products abroad. belief that if you go out to the farmers and in the next 2 years, are you willing to say I think we have not done so much in recent say that "You are to produce so much," if now whether or not you will oppose it? years along that line. I would hope that that so much is produced they ought to be Mr. BENSON. No; I do not think I am ready possibly we could do more of that in the protected to the extent of at least a fair now, Senator. I want to study it very care­ future, encouraging the use of ·our • own return. fully. I am anxious to get the very best products in the foreign countries, or release Mr. BENSON. I think there should be some program possible for our farmers. many of them to exporters of food. safeguard, of course. Sena tor ELLENDER. Do you think that that If they do not get the food products from Senator ELLENDER. Of course. I am inter­ is the proper method to obtain this millen­ us, they will get them from some other ested also-and I presume you are--in the nium that you are talking about of getting countries. I believe there is a potential there sugar industry. To what extent do you be­ parity for the farmers? that we might well study and consider care­ lieve that the sugar industry should be pro­ Mr. BENSON. I think it has been effective fully and help to promote. tected, the domestic sugar industry? in large measure_. It does not mean that Senator ELLENDER. But you have no specific Mr. BENSON. I am in agreement with the it is perfect by any means. I know a lot of program? domestic sugar program. I had something study has gone into it. We are trying it out. Mr. BENSON. No; I have no detailed pro­ to do with it in the early days in my home Certainly there is legislation now to give it gram formulated, Senator. I would be very State. I feel that it has worked quite sat­ an adequate trial. We can tell better about glad to know of any program that has been isfactorily as far as I am aquainted with it. the effects of it after it has run for another formulated, a workable program, along that Senator ELLENDER. Do you have any sug­ year or so. line. If you have any suggestions, I would gestions to change the present law? Senator ELLENDER. I remember reading be glad to have them. Mr. BENSON. No; not at this point. somewhere where you took the position that Senator ELLENDER. I am looking for some. Senator ELLENDER. You think the law now it would probably be possible to handle a I cannot offer any now. I am looking for on the statute books- good deal of our surpluses through coopera­ some myself. tives. Mr. BENSON. I understand it is looked upon Mr. BENSON. I am, too. with considerable favor by the producers as Mr. BENsoN. I do not remember ever mak• Senator ELLENDER. As Senator YOUNG just lng that statement. well as the processors. indicated, the price of wheat and other com­ Senator ELLENDER. That 1s correct. You Senator ELLENDER. What 1s your view? ~ - ·i. modities has gone down considerably. are correct ·in that. 1953 CDNGRESSIONAL RECORD-· SENATE 479 Mr. :BENSoN. I have . h·a'd ··some conferences'· conservation, the extension services; all the ·take- the $10Q,OOO .and divide it among a w~th growers and wi,th uui.nufactur~rs in the agencies that serve the farmers at the county thousand people· the tax might be 4 percent. last few weeks, and I have ·had. occasion .to and State levels. . , . . . or 10 percent. I do not want to be misunder­ 'study the program somewhat. I believe,:· Senator ELLENDER. There has been consid- · stood. I am for cooperatives, understand, generally speaking, it seems to be satisfac• erable talk here recently that it might be but I am trying to get your views since you tory. a good ide:;t to transfer the soil-conservation were so closely connected with cooperatives, Senator ·ELLENDER. For your information­ program to the Extension Service. Have you on the extent to which you are going to you may know it already-there were only given that matter sufficient study so that permit them to own and operate, let us say, four votes against the bill. you can tell us how you feel about it? parti~ularly here, the fertillzer industry. Mr. BENsoN. I dld not know it. · Mr. BENSON. No; I have not. The Agriculture Department in the last Senator ELLENDER. That is the bill that I Senator ELLENDER. Then for the moment 6 or 8 months has been advocating expansion fostered at the time, with the help of the it is your view that the programs should of the industry. We have, I believe, extended other Members of the Senate. As you know, be c~rried on as they have in the past as it almost a billion dollars, and the Govern-· under that act, under the law, both the con­ far as you ~e willing or able to tell us now? ment has loaned money in order to expand sumer and the producer must be . protected. Mr. BENSON. For the immediate future. I this industry. Most of that has been done The section to; which I refer in particular do not· contemplate any radical changes as by private capital. 1s section 201, which reads as follows: far as I am concerned. · _we are looking con­ Should the question come up as to whether "In order that such determinations shall stantly toward improvement of these pro­ or not that ought to be handled by coopera.. . be made so as to protect the welfare of con­ grams, greater efficiency and more effective­ tives or private capital, what would be your sumers and of those engaged in the dmpestic ness of the programs. · view? sugar industry by providing_such supply of I think from _an_administrative sta1.1dpoint Mr. BENSON. I think there js room for both. sugar as will be consumed at'· prices which that there will probably be a need for some Senator ELLENDER: Room :for both? will not be excessive to consumers and which adjustments, some changes. · Mr. BENSON. Surely. There is room for will fairly and equitably maintain and pro­ Senator ELLENDER. Mr. Benson, you have both. · tect the welfare of the. domestic sugar indus­ been closely connected, from what I can Senator ELLENDER. Should they pay taxes try, the Secretary • * • shall-do so­ understand, with the cooperative movement on the same basis? and-so." throughout the country. Mr. BENSON. It is hard to describe. This is, to keep the demand in balance with Mr. BENSON. Yes; I have been. Senator THYE. Mr. Chairman, might I ask consumption. I presume that you believe in Senator ELLENDER. To what extent will a question? tha~ method of handling the sugar price. you permit· these cooperatives to compete Senator ELLENDER. I am not quite through. Mr. BENsoN. Yes. I think it is a very with private industry, for instance, in the Go ahead, Senator THYE, if you want to grave responsibility to place upon the Sec­ development of the fertilizer industry and clarify it. retary of Agriculture. I am in sympathy with things of that kind? Senator THYE. My only concern here is it, and I think it has worked quite effectively Mr. BENSON. 'I feel, Senator, that our co­ that we are entering into the field in which from all I can learn. operatives are part of our free enterprise sys­ the Finance Committee makes studies and Senator ELLENDER. It is your hope to carry tem, they are to-ols, agents of farmers. They determines policy and Congress enacts the out that particular provision? perform essential services. They can be used law relative to taxes, and the taxes imposed Mr. BENSON. It is my hope to carry out by farmers to help them in the marketing, upon all, whether private or corporations. I every provision that is now on the statute in the purchasing of some of their supplies. am just wondering whether we are asking books that has been ·approved by the Con­ I think they will not take the place of pri­ the Secretary of Agriculture a question which gress, Senator. I have no ·other desire, no vate operations.- is beyond his prerogative. . other plans whatever. Senator· ELLENDER. You would not permit Senator ELLENDER. Senator THYE, my. Only Senator ·ELLENDER. How-do you feel about them to supersede ·private industry, would reason for asking such a question, as I predi­ our present soil-conservation program? Do you? · cated my question, was that he was very you think it ought to be expanded, decreased, Mr. BENSON. I think there will always . be closely allied with the cooperatives; I think, changed, or anything done with it? · a place for both. I think it would be a for 4, 5, . or 6 years. Mr. BENSON. I presume there should be bad thing to have a cooperative monopoly. Mr. BENSON. Five years. . something done with· it. · I am not ac­ They only handle a very small proportion Senator ELLENDER. I do · not mean to say quainted with it as I wlll be later, probably. now, ·as you know, of the farm products of that he is going to lean backward to help I think it is yery basic and•very important the country. the cooperatives or anything like that, but that we conserve, protect, and even improve Senator ELLENDER. Yes, but quite a few I want to find out what his views are with our productive resources. of them are expanding beyond the expecta­ respect to cooperatives. Senator ELLENDER. Are you satisfied with tions of what the law contemplated. I will repeat that I am for them 100 per­ the ·present method involved in bringing Mr. BENSON. Possibly. ·r do not know what cent. I addressed the cooperatives in New about this protection to which you refer, the the law contemplated. · Orleans last Tuesday. I have a lot of friends consultation to which you refer? Senator ELLENDER. It was more or less a among them. · I was glad to learn from the Mr. BENSON. I think the program has been law for the protection of the farmers so that president, Mr. Brooks, that this great associ­ quite effective, as far as I am acquainted they could group together, buy together, ation did not accept all cooperatives because with it. I have seen something of its opera­ and sell. I understand that quite a few of they were of the opinion that some of these tions. That does not mean it is perfect by these cooperatives have gone far afield in cooperatives went far beyond the purview of any means. We hope to improve on it as it. owning oil :fields, in owning oil refineries the present law in getting into business that goes along. We hope our programs will all and things of that character. Do you be­ should be handled by private enterprise. get better as time goes on. lieve that the cooperatives should go that '!'hey did not pay the taxes they should pay. I certainly think the objective has been far without paying taxes equal to those in I understand you are aware of the position worthy and I am sure there has been much private ·industry ·doing the same thing? Of the same group. good result. Mr. BENSoN. The tax question is largely Mr. BENSON. Yes, I think generally, I Senator ELLENDER. What position, if any, a legal question. would be, Senator, but more than half of wm you take with respect to the quarter of Senator ELLENDER. I know. the farmer cooperatives of the country claim a billion- dollars· appropriations that have Mr. BENSON. I felt always that all of ·om· no exemption of any kind, you know. Un­ been recommended for the continuation of citizens ought to pay their proportionate der the law they are entitled to certain the soil conservation program? share of the taxes, regardless of the type exemptions. About half of them today, Mr. BENSON. I do not know as to the o.f business they are in. · as I recall, are not claiming any exemption amount. Senator ELLENDER. If that is true, then, of any kind because it involves a lot of red Senator ELLENDER. But you are for that? you would be opposed to cooperatives owning tape, special record keeping, and the like. Mr. BENSON. I want to see the soil con­ oil :fields and oil refineries unless they paid They just felt it was not worth it, what servation service program continued. taxes to the extent that is being paid by possible saving they might get from it. Senator ELLENDER. Certainly. Along the those engaged in a similar business? Senator ELLENDER. I have just one more lines that we are now working? Mr. BENSON. There ru:e many types of question to ask you. I do not want to take Mr. BENSON. Yes; I think so . . I do not cooperatives. too much time. Are there any laws pres­ know whether the appropriation is what it­ Senator ELLENDER. Wait now. Will you ently on the statute books affecting agri­ should be, whether it should be more or answer that question? culture tha;t you propose to change? whether it should be less, but certainly we . Mr. BENsoN. If it is a true cooperative, Mr. BENSON. I do not think I have the want to conserve our resources, .and our agr1- of course, the individual member pays taxes authority to change any laws: culture resources particularly. on any savings that come to him. Senator ELLENDER. I mean suggested Senator ELLENDER. Have you any views as Senator ELLENDER. SUJ;'ely. changes. to whether or not the programs, such as soil Mr. BENsoN. You are raising the question Mr. BENSON: No; not offhand. I hope to conservation and PMA, should be changed in of taxes on patronage refunds. I think become more familiar with the agriculture any manner from the way they .are ;now be- . the cooperatives ought to pay their fair share legislation, study it carefully. It may be ing operated? of the taxes as determined by the Congress. that I will have several recommendations Mr. BENSON. I am studying it, Senator. I Senator ELLENDER. But let us assume that for the consideration of the committee later. am not ready to express any views at this a corporation makes $100,000 profit. It has The CHAIRMAN. You do not understand point. I would hope that we could work out to pay I think, 52 percent on the $100,000 that as Secretary of Agriculture you would. a ·coordinated program between PMA and soil less-a certain specific exemption. But if you have _ anything to say about cooperatives? (:ONGRESSIONAL RECORD- SENATE January 21 480 . - ~ . . . . ~ - ...... Mr. BENsoN. That is right. It would be­ . Mr. BENSON. Yes. I would be very sympa­ to do so. I don't know that I am ready ' to pretty much out of my field, Senator. thetic to it. make any recommendations for changes or The CHAIRMAN. I would like to ask one Senator THYE. You recognize that prob­ anything of the sort. . In a general way I am question on the matter of cotton. What lem? familiar with what it is. would be your attitude toward the efforts of Mr. BENSON. I recognize it and I would be : Senator HoLLAND. I understand, of course, several cotton interests, producers and very sympathetic. . that two of its large fields of activity not others, to raise a fund to promote foreign Senator THYE. While it is left to the dis­ covered elsewhere are in the fields of emer­ markets for cotton? Would you encourage cretion of the Secretary of Agriculture to gency loan handling? such action on their part or would you say use not only section 32 funds but to make Mr. BENSON. That is right. "No, that is the Government's business to purchases to stabilize that market, would' Senator HoLLAN.D. In the case of disaster? work up the foreign markets for cotton, and you be aggressive in the use · of your dis­ Mr. BENSON. That is right. something that you fellows should keep out cretionary authorization? Senator HoLLAND. And. in the field of as­ of." Mr. BENSON. I hope to be aggressive in sistance of submarginal operations to better· I understand they contemplate an assess­ carrying out the mandates of Congress pro­ meet their problem? ment of so much a bale to develop their own vided in the various legislation, to help pro­ Mr. BENsoN. That is a very special field. markets in foreign lands. tect the various products of our farms. That Senator HoLLAND. And that that is not met Mr. BENSON. I think, Senator, that any­ is my objective•• I hope to be aggressive by the ordinarily more commercial type of thing that can be done th.:ough private ef­ in it. · Federal organization? fort, including cooperatives, to encourage · Senator THYE. If you are aggressive the . Mr. BENSON. Yes; I understand that. the expansion of markets abroad, or at home, authorization is there. Senator HOLLAND. The Senator from Min­ J?hould be encouraged. Mr. BENSON. I may not always be as ag­ nesota asked you some questions about per­ The CHAIRMAN. That is all. gressive as some of you may think I should ishables. I believe he confined himself Senator THYE? be. I will have to use my best judgment. largely to the dairy field, whereas the people Senator THYE. Mr. Chairman and Mr. Ben­ It is a tremendous responsibility for a man in a large part of the Nation are more inter­ son, the one great question that is in my to have. I hope to go forward and do the ested in the field of fruits and vegetable mind concerns the perishable farm com­ very best I can with your counsel-the coun­ production, when the word "perishables" is modities. I introduced a bill since the ope]:l­ sel of this committee. mentioned, than in the dairy field. ing of this session to include oats, barley and Senator THYE. I ·suppose Senator YOUNG You understand, of course, that the pres­ rye among the list of the commodities to be and Senator ELLENDER have covered all the ent legislation requires that the section 32 supported at 90 percent of parity for the major quest~ons very thoroughly. . funds shall be used preferentially--or I be­ crop years 1953 and 1954. Mr. Chairman, for that reason there are lieve maybe a little different word is used­ Am I justified in asking that these major not many questions that are basic that are that the preferred field of operation shall be crops, which are storable, should be listed Ieft to be asked. I was concerned about the in connection with the meeting of the prob­ among the basics? perishables. When I have your assurance lems of crops that do not have price-support Mr. BENsoN. I presume you are justified that you will be aggressive in your discre­ programs, with emphasis on perishables, in asking me that, Senator. I presume it · tionary authorization, then I know that we fresh fruits and vegetables? has been debated many times by this com­ can maintain a stable market for the per­ Mr. BENSON. That is my understanding. mittee. I presume there must be good rea­ ishable commodities. . Senator HoLLAND. You will of course be sons why they have not been included. · Mr. BENSON. I hope to do my duty to the governed by that expression of -the law? Senator THYE. Would you recognize the best of my ability under the legislation pro­ . Mr. BENSON. Yes, sir. need~ vided by the Congress in carrying it out as Senator HoLLAND. You realize, of course, · Mr. BENSoN. I recognize the problem. they intended it to be carried out. that there is much emphasis now on the Senator THYE. You recognize it is a good Senator THYE. Of course, they didn't in­ way to expand markets, export markets in reason for anyone in the diversified area to tend other than that you should have dis­ particular, in both the· storable commodity, include those m~jor crops that are major cretionary authorization. fields and also in the perishable fields. Even in some sections of the United States? Mr. BENSON. Yes, sir. That is where the naving that in mind you would stm be pre­ Mr. BENSON. I can certainly see why one question of judgment comes in. pared· to give prior emphasis or preferential from those areas would be interested. And · Senator THYE. That is why I wanted to be consideration to the fresh fruits and vege-. I am interested in it, too. certain about it, as to whether you would tables and other nonsupported products in Senator THYE. You are sympathetic to I>e aggressive or not. · connection with these attempts to build ex­ their problem? Mr. Chairman, those are all the questions port markets? Mr. BENSON. Yes; I would be. that I will ask. · Mr; BENSON. I think they need a lot of Senator THYE. The other great question, . The C;HAIRMAN. Senator HOLLAND? attention. · I think some of OUr major prob: of course, is the dairy industry. We at the Senator HoLLAND. Are you familiar with lems have to do with the perishables. present time have a mandatory support from the rural electrification prograin? · Senator HOLLAND. You are not supporting 75 to 90 percent. Mr. BENSON. Yes;. somewhat. the Branila"Q. program, are you, Mr. Benson? May I ask you this question: Is it your Senator HoLLAND. Are you in sympathy· Mr. BENSON. I think .you know the answer opinion that the Department of Agriculture with it? · to that, Senator. . and the United States Government have Mr. BENSON. Yes. I have been in sym-.. : Senator HoLLAND. I wanted you to answer made as great an effort as they should have pathy with it through the years. it. You are not for the Brannan plan? Senator HoLLAND. Are you familiar with Mr. BENSON. No, sir. Not as I understand and possibly could have in developing mar­ it. . keting, processing, packaging, and making the rural telephone program that has just these perishable commodities storable as gotten well under way? . Senator HoLLAND. To come back to the they should have? Have . we done as good Mr. BENSON. Not as familiar as I am with ::Jranners .Home Administration for a mo­ a job in the field of research, in the field of the other phase of REA. But I am some­ ment, there has been discussion of merging, marketing and processing, as can be done? what familiar with it. i 't with other excellent programs. It has 1\.fi". BENSON. That is a very broad question. Senator HoLLAND. Are you in sympathy. always occurred . to me that here is a field Senator TIIYE. It is a broad one, but it with that? · dealing more with cases of need than the ties in. Mr. BENsoN. I remember when the tele­ others in which you deal with cases of right­ Mr. BENSON. I think very rarely do we ever phone first came into my home. It was a ful credit values, and that there is a great do as well as we could. I think it ought to cooperative project which the farmers pro­ dissimilarity between the field covered by be studied more. I believe it can be im­ vided themselves. That was a happy day in the Farmers Home Administration program proved. I think we can do a better job in our home. and the others. the field, in the general field of distribution, Senator HoLLAND. You understand that· 1\-lr. BENSON. I understood that it fills a marketing, and packaging of our farm prod­ the rural telephone legislation on the books special need and is in a special credit field. gives emphasis to the helping of private tel­ The field ordinarily is not fully covered by ucts. commercial credit institutions, or even by · Senator THYE. Would you support an en­ ephone projects to better fill the rural field, farm credit administrations. It is a special deavor to promote a program that will ex­ if that can be done? Mr. BENSON. That is right. field. pand our research field in the marketing and Senator HoLLAND. In this field of credits the handling of perishables? Senator HOLLAND. And that that would J;l.ave you had any experience in the executive Mr. BENSON. Yes; I would. I certainly have precedence over the organization of· field, and particularly in the banking field?. would. Not only the perishables, but the new associations under the Rural Telephone Mr. BENSON. No; not especially. others as well. I think that is very basic Act. Are you familiar with the operations · Senator HOLLAND. You recognize that the to our program. of Farmers Home Administration? ~?ecretary of Agriculture is the head of the Senator THYE. The perishables are our Mr. BENSoN. Yes; in a general way. largest banking institution in the world? big problem. · Senator HoLLAND. What is your attitude Mr. BENSON. That is right. Mr. BENSON. That is right. with reference to that organization and its· · Senator HoLLAND. Do you have any views Senator THYE. We know that the price of usefulness and its place in the picture? which you would care to ·communicate to pork has dropped drastically to the producer. Mr. BENSON. I understood it is performing­ t:Pis committee with reference to the need for In fact, it has been way below 90-percent a very desirable and good service. I want reorganization of the Commodity Credit parity at various times in the past 15 months. · to stu,dy it _carefully, if you will give me time Corporation. 1!)53 CONGRESSIONAL RECORD-· SENATE 481

Mr. BENSON. J: have ·thiS. view,· 'Senator: ·I r Mr.- BENSON. Yes. I am familiar with Senator THYE• .May I Just make a brief hope to get around me the very best men that. I have traveled in many e.ouJ;ltries comment on the last statement of the former that it is possible to get, and men who have abr~ad where tl).ey have suffered as a result Secretary to increase the agricultural in­ experience i:m. those fields where 1 may be of not providing for refores-tation. come? If Senator ANDERSON would yield. lacking somewhat. I do not have all the Senator HoLLAND. Thank you very much. Senator ANDERSoN. Surely. answers. I am trying to bring into the De­ The CHAIRMAN. You stated your belief Senator THYE. What I recognize in that partment the very best qualified men it is that an advisory committee would be of value phase of the Federal payment is the incen­ humanly possible to get. .I .am finding that to you. Do you agree that the value of an tive to improve tbe farm techniques, such you cannot get that type of man always on the advisory committee will depend almost fully as the growing of legumes, the .application basis of Government salaries, but that you upon the Secretary giving credence to the Of commercial lime, which assures the farmer can on the. basis of public service oftentimes, advice he receives from such committee and that if he puts grass seed in the ground he and the opportunity to help get a job done,· following it if it appears valuable? has a better chance of getting a good stand even at a substantial sacrifice in salary. I Mr. BENSON. Yes; I think that is true. I of grass. What I .recognize in the program have already had evidence of that. I hope have already ha-d an example of it. As you is that incentive is very, very important. that we can get men on the team who can· know, there has been an interim agricultural · Therefore it does tie in to soil conservation do the job. advisory committee .appointed. I met with in a degree. Senator HoLLAND. You know~ of course, them for 3 days. I found that they were Senator ANDERSON. I do want to remind that the present legislation permits the set­ very valuable. I took to them some problems you that the American Farm Bureau Federa­ ting up and utilization of an advisory com­ for checking. I am sure that such a com­ tion, after carefully studying this and talk­ mittee for the Commodity Credit Corpo­ mittee can be very "helpful to the Secretary. ing lt over at the grass roots, at its last ration? · ~ would hope that I would have the advan­ meeting in Seattle-which I had the privi­ Mr. BENSON. Yes, sir. tage of the use of such a committee. lege of attending-passed a resolution pretty Senator HoLLAND. Which 1n the opinion of The CHAIRMAN. I was going to ask you next strongly against agricultural conservation many members of th·is committee-as here­ whether you recommended the establishment payments for items that the farmer would tofore set up--h.as been a very strong method of such a committee with advisory powers on ordinarily do himself. And the National available to strengthen the soundness of the a permanent basis? Grange-I saw Mr. Sanders here a moment operation of the Commodity Credit Corpora­ Mr. BENSON. Yes. I recommended the ap­ ago--has also taken a position of trying to tion, but which has not been very mueh used. pointment of this committee to the Presi­ put the payments on' permanent practices. Do youllave any plan with reference to the dent-elect. He named the committee at my I noticed that the question a moment ago making of greater use of that program? recommendation. I would hope that there was phrased entirely ln terms of soil con­ Mr. BENSON. I am .a very strong believer in would be a continuing committee, maybe servation. I think we will g.et along better advisory committees, particularly if they can with some change in personnel from time to if we frankly label it "agricultural conserva­ be rather informal committees that are not time to bring in fresh points of view, and tion payments," for whatever purposes used. set up and become another Government in­ possibly to get a wider re-presentation, not General Eisenhower got into this discus­ stitution. I think they can render a very only a general advisory committee but it f!ion. May I call your attention to what he useful service. I was thinking in terms of seems to me we need advisory committees said at Memphis, Tenn., on October 16? I dealing with the Commodity Credit Corpora­ probably on commodity products as well, par­ understood this was the last major farm tion particularly, where such a committee ticularly on commodity credit. reference that he made in the campaign. would be inv.aluable. · The CHAIRMAN. Senator YOUNG has a ques­ ~~d: - Senator HOLLAND. You recognize that that tion. "Here and now let me say to you what I 1s one of the fields where material strength­ Senator YouNG. Will you be appointing have said to farmers elsewhere: I stand be­ ening of the present program is required? . any farmers to these committees? So far as hind the price-support laws now on the Mr. BENSON. I think that is true. I know you have not appointed any farmers. books." Senator HOLLAND. One more question, re­ Mr. BENSON. Yes; there have been some, As I understand it the price-support laws lating to the field of forestry and forestry Senator. now on the books have some provision for products,. which of course is an important Senator ANDERSON. I hope the Republican flexibility in them. They include the Agri· field in the Department of Agriculture. Do National Committeeman in my home State, cultural Act of 1948, as amended by the you .have special experience in that field? Albert Mitchell, is regarded as a farmer. He Agricultural Act of 1949. I hope that any Mr. BENSON. I have lived very close to the operates the Matador Ranch, runs his own of these other utterances do not lead you national forests. I have run livestock on ranch, produces several thousand head of to believe that he was abandoning the basic the national forests. I know something o! cattle a year, and bought a ranch in the agricultural acts. their operations. southeastern part of the country. The Democratic candidate for President Senator HOLLAND- I .am not thinking so Senator YouNG. He is a large rancher, I 1n 1948 ran on a program of flexibility and much of national forests. I am thiriking of would say. did very well in the farm States, if my mem­ the privately owned forests and forest opera­ Senator HOLLAND. This question empha­ ory serves me at all. In 1952 our candidate tions and forest products. sizes the nonpartisan and bipartisan nature did not run on flexible price supports but Mr. BENSON. I know something of those. I of the committee. on rigid 90 percent forever and ever.- He never owned personally a private forest but I The CHAIRMAN. Sena tor WILLIAMS? did not carry a farm State north of the know something of the problems and the Senator Wn.LIAMs. I have no questions at. Mason and Dixon's line. relationship between the privately owned for­ this time. Senator YoUNG. Would you yield? ests and the national forests. The CHAIRMAN. Senator .ANDERsoN? Senator ANDERSON. I only ho.Pe that what Senator HoLLAND. You feel that you would Senator ANDERSON. May I say, Mr. Secre­ General Eisenhower so clearly stated over be able to give intelligent and aggressive han­ tary, that I am very happy at the answers you and over aga!n, to support the basic Farm dling to the forest and forest products side have given this afternoon. I am glad that Act, is not forgotten. of the operations...of the Department of Agri- you have not made up your mind on every Senator YoUNG. Would you yield? culture? · subject before you have a chance to take ad­ Senator ANDERSON. Yes. Mr. BENSON. I w.ould hope to. I would vantage of the wisdom that is contained in Senator YouNG. Th-e statements by both probably need your co-unsel and the counsel the wonderful career people who are inside President Truman and Vice President Bark­ of many others. but I will do the best I can. the Department of Agriculture. ley were all in favor of 90-percent supports. Senator HoLLAND. You will probablY' have Mr. BENsoN. I am sure there are hundreds The Democratic platform itself favored a the counsel of all members of this commit­ of them, Senator. flexible support, but their own policy was for tee. Do you have any special plans in your ~ Senator ANDERsoN. There was a question a 90-percent support. Is that correct? program of service-! see you are already moment ago about s0il conservation pay­ Senator ANDERSON. I am glad the distin­ building a program-relating to forests and ments and the amount of $400,000,000 was guished Senator from North Dakota paid so forest products? used. I think other people referred to a much attention to the Democratic platform Mr. BENsoN. No. No final conclusions, quarter of a billion dollars. I hope you at that particular tlme-1948. I could intro­ Senator. I have conferred with a number of recognize that the $400,000,000 or $250.,000,- duce the CONGRESSIONAL RECORD and the representatives of privately owned forests as 000, as it is in the budget, are agricultural campaign documents which the then Sen· l have made a junket around the country, conservation payments and that they are not ator Barkley presented as the legislative ac­ and have learned something of their views, 'to be confused with soU conservation pay­ complishments of the administration. It something of f.heir problems. I will not ments. I made a motion in the Senate to was done on the last day and he referred in make a decision until I am in oftlce, of course. reduce agricultural conservation payments. glowing terms to the Mken Act, so-called. and until I know a little more about it but the entire discussion was on soil con­ I have copies of what President Truman said myself. servation. - at Omaha and what he said in California, in Senator HoLLAND. You recognize, of course, Mr. BENSON. 1 understand they are sepa- which he almost endorsed the Aiken Act by that as our country h.as grown greater In rate. . name. population and as the forests have been in . Senator ANDERSON. Yes. One is a device tQ Senator YoUNG. Could you produce one many places denuded, that the problems 1n conserve the soU and the other is a separate 11peech made by either President Truman or connection with forestry and reforestation device to increase agricultural income. I be· Barkley which did not specify 90-percent llave grown more acute until they comprise lieve people recognize that. support in that campaign? now one o! our _greatest fields of national Senator THYE. Mr. Chairman? The CHAmMAN. You are referring to the necessity? The CHAIRMAN. "U tlle Sen~r _yields. 1948 election. XCIX-31

• 482 · CONGRESSIONAL RECORD- SENATE January 21..

Senator ANDERSON. Can you produce one · Sen~tor YouNG. My thinking is the same . Senator THYE. My observation has bee:n that did say they are for 90-percent price as that of most of the people of the Middle this: 1951 and 1952 have been the most diffi­ support? West, that a strong statement now by the cult years that the farmers have experienced Senator YoUNG. Yes; a great many. Secretary on the continuance of price sup- since late 1939. The expenses of the farmer Senator ANDERSON. In the 1948 election? port!;l would bolster these markets. 1 think are at their peak because of the inflationary Senator YouNG. Yes. that is perfectly proper. levels reached in 1950, and the farmer's re· Senator ANDERSON. I am glad you followed Senator ANDERSON. If the present Secretary turn, his income has been on a constant that campaign so closely. I campaigned a of Agriculture starts to make use of his offi.ce decline, but the expenses still remain up little bit with the Vice Presidential candidate, to influence markets up and down, people there. The farmer is hard pressed and mort­ Mr. Barkley. He must have skipped it when who are on one side of the market will lose gages are being written every single day, as I was there because he didn't say a word and other people on the other side will win. well as delinquent payments, both in mort· about it. All 1 am trying to suggest is that I hate to think of the possibility of the gages and in chattels, which are being re· the basic agricultural act is on the books, and Secretary of Agriculture going out and mak­ corded constantly. I hope the Department of Agriculture will ing statements in order to rig the market That is the concern that I have when I try to administer programs under the laws one way or the other. I do not believe it asked the Secretary would he be aggressive which Congress has passed and not by press will work, in the first place, and I think it in the use of his discretionary authorization release or Presidential speeches. can only lead to grief, in the second place. in purchases with section 32 funds. We._ I say press release advisedly because Mr. He is not allowed by law to comment on cot­ could hope for a better market in the perish··· Shields was back here a moment ago, who ton. I wish he were not-allowed to comment ables than we have experienced in the past was counsel for the Department, and who on other things. - years. recalls how we were hooked by ~ press re- Senator YoUNG. May I again state, my only That is my great concern. lease· inadvertently issued in 1941. That. thought \vas that a statement by him on The CHAIRMAN. Sena·tor ScHOEPPEL? _ press release tied the Government up for price supports would strengthen the markets, Senator ScHOEPPEL. Mr. Chairman, and Mr. the expenditure of a lot of money. and I think ·it is perfectly proper. Since Benson, there is an advantage from your I am glad that yo\l ar.e willing. to follow when are ·the departments dimied the right. s'tandpoil).t in getting down to the .lower end. the laws instead of "the press releas~s. to advocate a decent price for farmers, even · of the totem pole. I am tallting abouj; t~e Mr. BENSON. I certainly hope I will always if there might be some inference that specu- Senator from Kentucky and myself. · I want be found trying to follow the laws. lators would profit? to say that generally I am very much in Senator ANDERSON. I believe that you will Senator ANDERSON. I wm only say that agreement with the answers that you have made to many of these questions. Many o! beMr. B_ ENSON. The Secretary does not make there will be many days when people who are the questions I shall not repeat. on the wrong side of · the lard market or I know you realize that you will approach those laws. something else will try to influence that Senator ANDERSON. No, sir; he is the ad- market. I think the Department of Agricul- this from the angle that this is an evalua· ministrator of those laws. ture had some special announcements that tion proposition; that it is very important to Mr. BENSON. It will be an honest admin- a fellow was unkind enough to leave in the evaluate where we are, what are the causes lstratiori of them. . and conditions that are developing. I am Senator ANDERSON. I am confident it will pressroom, telling what would happen with glad you are taking the viewpoint that it lard, and yo~ gentlemen will recall that. be. That was done to influence the market. The has to be studied and it has to be approached I noticed the suggestion about new indus- man who did it I think faced trial for it · carefully. I think that is a mark of good tri&.l -uses made a moment ago. I hope that some time or other. judgment and a practical approach to theso the comments mean that you will try to find It is an extremely dangerous .thing, I think, things. new uses for products instead of i:Usposing if the Secretary of Agriculture should get You mentioned a while ago . !omethtng of them without finding new use for th'ein. · into that pos_ition. I sympathize with what· about your attitude and interests in the soil May I express the hope that yo:u try to conservation programs. I have had a feeling get the amount of research money that is the Sena_tor from North Dakota is tJ,"ying ' to. tl,la.t . the wateJ;"shed programs were not. permitted by law. It may be diffi.cult to get accomplish. ·Heaven knows he has tried press.ed· as vigo:r:o~sly by those: i;n ~harge ·of". it through the :Bureau of the 13udge't. At .. steadily and industriously to protect the the_ adq}lnistratiori of· . this important seg-: . ' least '-if the Department asks for· tlie $60,ooo;.; · int~r~sts. of tlie. far_mers. I have nev~r been . ment of· our Government as they should be. · · · critical of what he has done. ' He has been· a 000 that tliey are entitled to now, it may get ' very .fine Se_nator {l,np a true friend of farm-. - Are · you generallY: sympathetic ·with· the a fair-size'd chunk ·of· that. ·- · · · - watershed programs and the further· expan-: Do you not believe that .by the use of, this ·.. ers. I only wanted to ~?'.Pre,ss_ ~Y hop~ - ~hat sion of them?· ' research we can eliminate.. some of the the Department does not get in the'bUsiness . Mr. JJE~SoN ; As . I understand them, I am, troubles. that the farmers now have? , of rigging the markets. · 1 do not believe it . Senator• . It t~eexPs tO me they _are' very lin­ Mr. BENSON. I am sure it would make a should. · portant. . . eontribution, Senator. . I thi,nk it is basic to Senator YoUNG. I agree with you. . · Senator . ScHOEPP-EL. Some .of the· recom­ the future growth and expansion and -wel• - The CHAIRMAN· For the purpose Of kee,plng mendations from the Department came down · tare of the whole industry. the record straight, the Chair would like to later. I know the Department is pressed for ' Senator ANDERSON. And that we may need make note of the remark of the Senator from many other serious and what they consider this food that will be produced as a result North Dakota earlier in this session. i: be- more important matters. ' They came in too Of it. lieve the Senator from North Dakota made late for this Congress to implement, many Mr. BENSON. Yes, slr. mention that farm prices had been ·steadily of them, the way they felt they should be Senator ANDERSON. Let me say in passing falling for the past 6 years. · If the records · ~J;Ilplemented. I am glad to have your views that I could- not help but notice that you of the Department are correct,· the all-time with reference to that matter. It is a very are silent on the drop in grain markets. I peak in farm income was the years 1947 and important approach. hope the silence continues. I do not think 1948. Since 1948 net farm income has fallen · There was a controversy 1n t!he program you -have authority to 'try to bolster these 10 percent, while net .farm mortgages liave of the Army engineers as related to your :Qe- _ prices by utterances before you' become sec· increased a littie over 30 'percent. . . partnient and others. ~ere will be before retary, as you do ·afterward. You may find · That points up the seriousness' of the sitU· you, I am ·sure, from many of us, plans fpr that you ·wm find it necessary to do it after- ation anc1 'the ineffectiveness, perhaps, ·of­ expa%lsions in the watershed programs, some ward. · · maybe we had· better not say "methods used · from my State and some f.r:om other States. - Mr~ B~oJf. I may find 'ihat I · am not • ,so- far";-:we might say failure to use all of · I notice with reference to the . advisory ~cretary ; Senator. _ '. . . the instruments wliich ·have been available councils t):lat you have a belief in their being senator ANDERSON. I hope that does not for the· preveption of such decline. "' bene~clal and . cOljlstructive. I might . say happen. I ·.do want to -commend •the. ·sug· . It may have been lnadv~rtent · on the part frailkJy 1ihat' I haye heard-I!Qme rumbling~ gestion Senator HoJ.I.ANJ) made a - moment of the Senator from Nortli Dakota. 1 \varited already--:-mayQe . honestly,. maybe · because ago about the use of advisory: boards in Com· the record to :;how that: . ' ' : they are_ a little· impatient; althoug_h I Q.q 'i modity Credit. . i:t is . a. tremendously. large - Seriapor Yol!N:G· ~0; ilne:with ~ Y?}ir ~tllinking not think they are too. impatient--:-about banking operation. Members of .this com- recently they took 18 cargoes of wheat out some of those advisory councils or the over­ mittee were very helpful in trying to work pf the Commodity Credit Corporation stocks all group not being fully representative ·of out an advisory program that they could ap· :tor European needs. It would have been the industries that are. tied into the agri­ prove an advisory committee that they more proper, if they wanted to maintain cultural field, and related commodities, for could confirm. pric~. to take them out of the market. · msta.nce, the . chemical industry;. . I under­ I do not .think th_at advisory committee has Senator ANDERSON. Certainly. 1 !eel quite· stand that the total sum in ' dollar-and· come back many times to the Congress for a good-deal of sympathy with what the Sen· cent sales value of the chemical b:~dustry iS any future suggestions. I do hope th~t yo~ ator from North Dakota is saying. I have nex;t to foods in this country. At least I have might find it in your heart.. tq ma~e . ~~ ... 9f · , been so informed. Would you consider that· 1ihe . accumulate_q . y;i~q<;>m . tha1i- you ~nd 1 ~ 180 cattle 'on full feed. They ~ave been there -. such councils, ·to the extent that you think :Some of the members of this committee. 'since' the 1st of OCtObe-r~ .· I bought ~ them ahy 'of them· represent the.. ~hemical - indu·s- Senator YouNG. wm the senator· yield earlier in the year. · They have.had 9 mont~ . fries, ought to have some representatiQn in since yoU .. made reference apparentiy to a of pasture, 3 months of fun-feed. · If· r am 'tlie advisory committee? remark -that I made earlier as to his position lucky I will almost get back what I p'aid for ·Mr. B!::N8o:N-.. I think it·would be wise· on on price supports· in bolsterinJZ.marketsf · '\he catt.le originally. · . · the·part. of the Secretary to get advice from ' Senator ANDERSON. Yes. · L.,. ,:'he CHAIRMAN. Senator THn? every possible source. This interim agricu.l·

• 1953 ~O~~~SS_IONAL_ RECORD·- SENATE 483

tur~l advisory com.mittee1 of course, was rela­ ~o get for his grain. I am sur.e you realize Mr. BENSON. They seem to be quite happy tively a small committee, We tried to select that. ' with the program as it has operated. It 1s men who Md -a .broad ~ders'tanding of· Mr. BENSON. Yes; 1 do. somewhat unique. I must say. agriculture. We coul~ not have representa-' ,Senator ScHOEPPEL. l ·throw. that out only Senator CLEMENTS. But it has not been tives of every commodity and every 'industry for-- expensive to the Government. It has not cost related to agriculture on the small commit­ Mr. BENSON. It has already be~n thrown the Federal Government a dollaT. tee. I would hope that we would have a· out to me several times on this junket I Mr. BENSON. Yes, sir. number of committees. made aToung the country, Senator. I made The CHAIRMAN. Senator HICKENLOOPER had Mention has been made of having an ad­ that trip on my own initiative-no one sug­ to leave us briefly to attend another meeting visory committee for commodity credit in gested it to me-because I felt the need of' for a few minutes. this operation. 'I would hope we might have counsel from leaders throughout the agri­ 'In your absence, Senator, we passed over a number of advisory committees on a com­ cultural industry. your question period. Now that you have modity basis. Maybe there is a need for a I do not mean only farm !Jeople. I had returned, have you any question to ask Mr. special- advi'Sory committee on the matter of representatives of farmers, handlers and Benson? · fertilizers and .chemicals. It is very impor­ processors in, representing various com­ Senator HICKENLOOPER. I am sorry, I found tant, certainly. The .Secretary is going to modities. When I got into the grain belt myself caught between two confirmations need all the help he can get, and even then in Kansas City we had people come in from this afternoon, one on the Foreign Relations he will not have all the answers, all over that area--from. fi¥e or six States­ Committee and one on the Agriculture Com­ Mr. ScHOEPPEL. Mr. Benson, there is one this was one of the problems tbat was worry­ mittee. 'I tried to listen in on both of them. other angle that many of us in the small ing them. The CHAIRMAN. Not entirely separate. grain-producing areas-my State, for exam­ When we had people come in· from up in Senator HICKENLOOPER. Yes, they are in­ ple-are very much interested in wheat and your area, Senator YouNG, in the cash wheat terrelated, I assure you. the ramifications that follow. Naturally, we belt, they were worried ahout it also. Ap­ I think, Mr. Chairman, that I have no are interested in :where the price-support parently it is a serious problem. particular questions to ask Mr. Benson. I program will land. I am glad we have the Senator ScHDEPPEL. It affects not only the have discussed matters with him heretofore. price-support program on the statute books man who produces it, the man who buys It I think I know generally his agri.cul tural and, as you indicated, you will carry it out. for storage and later disposition, but it af­ views. I only want to say that I sympa­ When you look at the International Wheat fects whbe'Ver hanclles it. It is a situation thize witb anyone who undertakes to solve Agreement, ramifications are going to come that has to be treated realistically. all :the problems ·of agriculture. I hope to from that. It is not going to be too pleas'ant Mr. BENSON. CJ:lrtainly. give him what assistance I can in my small a picture. Do you fe~l that tbat is one of Senator ScHOEPPEL. That is all that I have. way. I think many of the questions that the fields of important matters that have to Thank you. I might have · asked have been asked so I be approached rather realistically? The CHAIRMAN. Senator CLEMENTS? will not take further time. The CHAIRMAN. We also have with us at Mr. BENSON.. I think so, Senator. I am Senator CLEMENTS. You mentioned that studying that right now. As you know, the this first meeting of this committee the new­ you would be very aggressive in the support est Agriculture member, possibly qualified as present wheat agreement expires in July. A Of nonbasic commodities and perishables. ccmference is being held here with repre­ a freshman member-though I am not sure sentatives of the Nation, .4-6 of them, begin­ Mr. BENSON. Possibly not as aggressive as about that-Senator WELKER. I will ask Sen­ some of you think I should be. ning on ~he 30th of January. That is right ator WELKER at this time if he has any ques­ on our doorstep. Senator CLEMENTS. I recall that. I also tions to ask Mr. Benson? Senator HoLLAND. It ·has cost us about heard you express your sympathy for the Senator WELKER. Mr. ChaiTman. I first $600,000,000 m 3 years. REA program. About 10 percent of the want to apologize to the chairman aL.d to Mr. BENSON. Yes; I noticed that. That, of farmers of this country are still without our distinguished new Secretary. I am sorry course, concerns me. You speak of advisory electricity. Would you be just as aggressive I was not in attendance at the meeting. committees. We have called an advisory toward getting that 10 percent electricity As did Senator HICKENLOOPER, I had an­ committee of the industry-growers, han­ as you would in· the support of these com­ other conflicting meeting. I welcome to modities that were mentioned? dlers, and processors~to - meet here tomorrow Washington a native Idahoan. Mr. as the firs~ step. J: understand arrangements BENSON. My first interest, Senator, as I have no questions. Thank you. have been made so that we can have an ad­ I envision it, is 1:he national welfare. Then The CHAIRMAN. Senator JOHNSTON, one of visory committee from the Congress. we: of closely related to that is the welfare of the our members who Md to leave briefly for an­ course, must .dete'rmine what is peing done, farmers. Having been one of them, having other committee me.eting, has returned now. . tbe matter of whether that agreement should been closely associated with them, I think · Have you some questions to ask the Sec- be continued or whether it should not, and you can count on me being aggressive and retary, Senator JOHNSTON? on what basis'tt shmild be continued. It is helping them. Senator JoHNSTON. I have no questions. a problem that is right before us now. It Senator CLEMENTs. That is, to get the other The CHAIRMAN. We aTe certainly glad to concerns .me very deeply: · 10 percent electricity? have this large percentage ·of the committee Senator. ScHOEPPEL. I know it does. I 'Mr. BENSON. I would like to .see the con­ present at this meeting.. l want to say, Mr. wanted to throw · that out as one of the veniences which we enjoy, which many of Benson, that we appreciate your appearance immediate problems we are going to have to us in the cities and rural communities en­ here this afternoon, and the frank manner face, which problems are going to bave an joy, out on the farms all over the country. in which you have answered quest·ions as effect on this great field of grain marketing ·Senator CLEMENTS. What ls your attitude f-ar as you were able to answer them. and price structure. on acreage limitations on any of the basic Mr. BENSON. Senator, l.did not know what this inv0lved. I have not been thrcm;gb' it One other thing and I shall conclude. I commodities? . have heard much concern expressed. I note Mr. BENSON. I know th-at generally speak­ before. I am not an experienced . witness that you are interested, and have been for a ing f.armers are independent. They like to as you . probably observed. . number of years, in the cooperative move­ be free. They do not like to be controlled, The CHAIRMAN. We will have you up here ment. They aTe in my State-and rightfully as I understand them. I never did. undoubtedly after you become more ex­ On the other. hand, if we have conditions perienced. so-interested in purchasing and distribution Senator ANDERSON. This is mild. Wait un­ of commoditit;lS. · · of surpl'!J.S facing us and if we are going to til he ·holds his first press conference. In the grain field we have many, many have price supports, which we now have, and they seem desirable, then w;e are faced pos­ Mr. .BENSON. I would like to say this: Of people who operate country elevators, buy, course this whole thing has come as -a great store, and · use those facilities for storage sibly with some control. It seems to me it is inevitable, ev.en though farmers may not like surprise to me, you know. I did not seek it. purposes. A very troublesome situation, I did no:t want it. That is wat.er over the prol:)ably because of the approach that might it. It is one of the problems, one of the real pr.oblems that we face. dam. Now that I have accepted, at least be made by the Department in implemen.. ting the nomination, if the Senate sees fit to further restrictions that might develop that Senator 'CLEMENTS. You recognize the need confirm me I will do the best I can. That will affect the profits in the Pure Food and f.or it under certain conditions? is all any man can do. Drug Division. I know that you are familiar Mr. BENSON. Under certain conditions. I I do not expect to spend my time trying with it. wish it was not necessary, but it seems to to protect my job, because any time the Mr. BENsoN. Yes, sir. · t heard about it in me it is inevitable. Senate or the President is through with my your Stat.e. · . ·, Senator CLEMENTS. I come from a State services .I will be greatly relieved and happy Senator ScHOEPPEL . .It is there, and it gc>es tb-at is the largest producer of burley to­ to return to what I was doing. But I am into Oklahoma and Texas and other States. bacco and our growers are interested in -acre• determined to use my every energy iii the 'Plere is a situation, that I assure you, as age limitation. Only a few weeks ago the interes~s of agriculture and in the interests Secretary-and you .. will . be the Secretary, farmers tn the burley area voted for acreage of the welfare of the Nation. God willing-.- limitations by nearly 99 percent. I believe I appreciate this opportunity of coming . Mr. BENSON. If He ls ,not willing, I do no.t the percentage was 98.3 percent. here and getting acquainted with some· of want to be. · Mr. BENSON. I had · some of them in to the Members of the Senate whom I have Senat~r ~HOEPPEL. That ·is go1ng to be. a see me. not met, and seeing further some whom I problem that will have to be considere(l . ..If . . -Senator CLEMENTS. I am glad th,ey have have met . it is not approached realistically it is going been t~ere. I hope_you wi11 familiarize yo~­ The CHAIRMAN. I for one have not felt like to aft'ect t.~ price ,tl;lat ~he farmer is ~oing self fully with the tobaccq pJ;ograiil. asking ~ou 'to tell the committee definitely 484 CONGRESSIONAL RECORQ- SENATE January 21 what you would do about this matter or hind the price-support laws now on the 1. We must have on a permanent basis a that matter because I realize it will take you books. system of flexible price supports for agri­ some time in the Secretary's office to famili· cultural commodities. Price supports and arize yourself with these various problems The laws now on the books dealing related measures help us keep our farm which arise so that you could give what, in with price supports relate to three things. production adjusted to shifting market re· your opinion, is a fair and decisive answer. First of all is the Agricultural Act of quirements. . All I want to know about the next Sec· 1948, sponsored by the distinguished Sen­ retary of Agriculture is whether he has the ator from Vermont [Mr. AIKEN]; second, The then minority leader of the ability to get hold of the problems as they some changes made by the Agricultural Eightieth Congress, who later became arise, to hear all sides fairly, and then to Act of 1949, with which my name is as­ Vice President of the United States as a make fair decisions. There are problems on result of the 1948 election, Senator Alben which decisions cannot possibly be made to sociated; and, third, temporary legisla­ tion which provides 90 percent support Barkley, produced Senate Document No. suit everybody. The questions here this 203, which was published in 1948, in afternoon have indicated that you will have for 2 years. both regional and commodity problems arise, Mr. YOUNG. Mr. President, will the which he uses this language: and sometimes in different regions different Senator yield? When President Truman announced in commodities will come in conflict. Mr. ANDERSON. I yield. May that he was going to send his formal I want to express the hope and the belie! request for a modernized program to Con­ that we will have full cooperation between Mr. YOUNG. The law on the statute gress in a few days, the Senate Agriculture the executive and legislative branches of the books provides 90 percent support at the and Forestry Committee got busy. Government in trying to work out the an­ present tinie, does it not? The committee reported for its long-range swers to these major problems which now Mr. ANDERSON. It depends on what farm program May 17, less than a week after confront us, and to obtain our major objec­ we mean by the law on the books. There the President sent his special message on tive, which is a prosperous agriculture here is temporary legislation which expires farm problems to Congress. in the United States. in 2 years. It provides 90 percent flat The President had succeeded tn prodding As far as this committee is concerned I the Senate committee into action. And the think we can sum up our objective very support at a time whe:p. we need more Senate committee's bill was almost a carbon briefly by saying that, first, we want to find food to meet the Korean situation, but copy of the sensible farm program proposed out what factors are contributing to this support levels will then revert to perma­ by the President. disturbing decline in net farm income and nent legislation, which is the Agricul­ increase in farm indebtedness; second, what tural Act of 1948, as amended by the Mr. YOUNG. Mr. President, will the is contributing to the slump, slump, slump Agricultural Act of 1949. That is the Senator yield? of farm prosperity which we are sadly ex­ only permanent legislation now on the Mr. ANDERSON. I should like to add periencing at this time, and finally, we want pare;nthetically that I am glad to have to find out, if we can, what can be done books. Mr. YOUNG. Mr. President, will the that language from the distinguished about it. minority leader, who subsequently be­ The symptoms today are so reminiscent Senator yield? or those of a little over 20 years ago with came our Vice President, because when Mr. ANDERSON. I yield. he speaks of a sensible farm program expanding stock market activity and a steady Mr. YOUNG. I wonder whether the drop, drop of farm income. We know what proposed by the President, it was the came of it, and knowing what came of it at Senator from New Mexico, in view of his program which the Department of Agri­ that time we ought to be able to recognize wide experience with agricultural sub­ culture had worked out and submitted the symptoms and do our utmost to prevent jects, and in view of the fact that he is a to the President, and which he had in such an occurrence as we had during the former Secretary of Agriculture, could turn transmitted to the Congress of the thirties. tell us whether Mr. Benson favors a per­ Are there any other questions to ask Sec· United States. manent or temporary 90 percent sup­ As the person who had transmitted retary-designate Benson before we dismiss port program in that connection. him? If not, we will adjourn this public it to the President and had helped in hearing and go into executive session. Mr. ANDERSON. I would not wish to drafting the program, I ought to know I want to announce that the committee speak for Mr. Benson on that subject. what was meant by a program of :flexible has no requests to be heard on Secretary I hope that the new Secretary of Agri­ price supports. I had spent long months Benson's confirmation from anyone. culture will take the time to find out all in hearings and I had spent many (Thereupon, at 3:47 p. m., the committee the facts involved before he takes a po­ went into executive session.) months discussing it with officials of the sition on it. Department whose judgment I had come Mr. ANDERSON. Mr. President, I rise I referred in the hearings to the fact to respect. Certainly I knew what that merely to state that I differ very com­ that the idea of fiexible price supports :flexible price-support program meant. pletely with the conclusions which the had been considered very carefully. It If we need volume upon volume of testi­ Senator from North Dakota [Mr. YouNG] is not necessary now to refer to the fact mony to do so, I could do what I did has drawn as to the testimony before the that the Department of Agriculture set once before-put into the CONGRESSIONAL committee of Mr. Benson, the nominee up a postwar planning committee and RECORD page after page of testimony in­ for Secretary of Agriculture. I tried to that it spent several years in developing dicating that the President knew what express in that hearing my conviction what I regard as the finest type of post-· he had submitted to the Congress of that Mr. Benson had answered in a way war planning for agricultural price pro­ the United States and what Congress which I thought was eminently satisfac­ grams. The matter was first presented adopted. tory. I certainly was pleased by the fact to the Congress of the United States in Mr. YOUNG. Mr. President, will the that he did not come to the hearing with committee hearings after there had been Senator yield? · · · all his conclusions worked out. He was extended hearings within the depart­ Mr. ANDERSON. I yield. willing to depend upon the very valuable ment. Mr. YOUNG. Does the Senator recall advice which he would get .from the ca­ Arising from that study there was that when the Anderson Act, setting up reer employees and officers of the De­ adopted a program, sponsored by the the present agricultural price-support partment of Agriculture; and he was distinguished Senator from Vermont program, passed the Senate there was a happy, as well, to let conditions in the [Mr. AIKEN], which incorporated the tie vote on the Young-Russell amend­ country develop as they should develop. · principle of :flexible price supports. ment, which would·have provided 90 per­ I think it would be too bad if, at· the The question then arose as to whether cent supports on basic farm products at very outset of this administration, an in 1948 the then President of the United a time when the farmer was under either · attempt were made to persuade everyone States, Mr. Truman, seeking reelection, acreage controls or quotas, and that Vice that General Eisenhower throughout the had actually come out for :flexible price President Barkley broke the tie, stating campaign loyally supported 90-percent supports. I made the offhand observa­ that he had campaigned for 90 percent fixed, rigid price supports, because I be­ tion that I could produce the speech he support and he would keep his word? lieve a careful reading of what he said made at Omaha and his remarks at the Would the Senator mind inserting in the would indicate something a little differ­ press conference at Los Angeles, in which RECORD the remarks of the distinguished ent. For example, in the last speech he almost mentioned the Aiken bill by Vice President at that time? which he made, which dealt very defi­ name. Mr. ANDERSON. No; I would not, nitely with farm policy, and which was In a speech which he delivered because I know what he said, and no delivered at Memphis, Tenn., on the 16th strangely enough, at Springfield, Ill., on one in Government was more disap· of October, he said: the 12th day of October, he said: pointed than I was by what he said. I Here and now let me say to you what I Here are the main outlines of .the agrl· did what a kind friend would do. I have said to farmers elsewhere. I stand be· cultural program we must have: waited until the incident was well for- 1953 CONGRESSIONAL RECORD - 'SENATE 485 gotten· and then reminded him of what gram, and we ·cc)ntinued t'o' lose money. v1ding 90 percent of parity would be a he had campaigned for. . I think he· was We eliminated that, and the farmers at e forgotten one. grateful to me for not standing up and now getting along a little better with However, Mr. President, I wish to say saying, "You did such-and.,.such a thing, ·the potato program. I hope that the new that 90 percent of parity has in the pas~ and this is what you said in your cam­ Secretary of Agriculture will take time been provided for only the six so-called paign." to consider these matters. basic agricultural commodities, which · I continue to quote from the statement I wish to state that I was well satisfied are corn, whea.t, cotton, tobacco, rice, of the former Vice President in Senate with the answers he gave to the com­ and peanuts. Of course it might be said Document No. 203: mittee, and I hope he will continue to that wheat and corn are crops in which _The Senate Agriculture and Forestry Com-. take his time and make up his own mind the northern section of the United States mittee reported a realistic, modern farm bill and study agricultural matters very. care­ has a definite interest. On the other early in the second session of Congress. fully. I hope that he will not favor a hand, the northern section of our Na­ Some of the high lights of the measure were: 90-percent price-support program on tion is not engaged in the production oJ First. Abundant production would be as­ eggs, for example, or feel that 90 percent cotton, tobacco, rice, or peanuts. I have sured. of parity is sufficient for dairy products, often criticized the · administration ot Second. Agricultural income · would be maintained on a flexible parity base. ' because there have been many times the agricultural commodity price-sup­ when 145 percent of parity was not suffi­ port program by reason of the fact that Mr. President, those are rather sig­ cient for dairy products. The laws we those who produce perishable commodi­ nifican-t words from the then minority now have on-the statute books permit the ties, such as citrus fruits, dairy products, leader, the former Senator and former Secretary of Agriculture to go to any nec­ poultry and meats, have not received the Vice President, Alben Barkley. essary levels to which he may need to go just and reasonable support of the De­ These provisions indicated that the Sen­ in order to obtain proper agricultural partment of Agriculture in its adminis~ ate committee had closely followed President production. trative activities, in that such producers Truman's recommendations. But the House I am simply trying to say that I was were not supported by the Department · refused to go along with the Senate in enact­ very· pleased with the answers given by of Agriculture in respect to having the ing a realistic farm program; the designee to be Secretary of Agricul­ prices of the commodities they raise sup­ They adopted an extension of 90 per­ ture, that my past experience with him ported at 90 percent of parity. cent supports. Then he said: bore out everything he said, and that I I believe that as Members of Congress The result was that the farm legislation believe he is a sound, sensible, and proper we have a greater responsibility than we finally passed by Congress merely extended person to administer that great Depart­ have exercised in the past, in endeavor· existing :taws until June 30, 1950, and post­ ment; and I shall enjoy voting to con­ ing to settle the question of price sup~ poned a long-range tarm · program until firm his nomination. ports for the perishable, nonbasic com· that date. Mr. THYE. Mr. President, I was pres­ modities, because therein lies the interest Mr. President, all I am trying to say is ~nt at the hearing the Senate Commit­ of the family type of farm, the type o1 that I am not endeavoring today to tell tee on Agriculture and Forestry conduct­ farm which will build soil rather than Ezra Benson what he should do. My ed when Mr. Ezra Taft Benson appeared deteriorate and deplete soil fertility. deaiings with him when I was Secretary before it. I know that many a pointed After all, the family type of farm is the one on which we find the youth engaged o~ Agriculture and he was a representa­ question was asked of him in the course tive of agricultural organizations per­ of the interrogation. I would have in the gainful occupation of aiding their suaded me to believe that he is an honor­ thought less of, Mr. Benson had he been parents in the management and opera· able person, with a yery fine ·agricultural specific in saying, "I will do -thus and I tion of such small agricultural units. background, and that he can be expected will do such and I will do the other thing," ·That is the type of farm with which we to give. the far;rners of this country a very because he was not then sworn in as Sec­ must concern ourselves in the future, in fine administration. I think it would be retary of Agriculture. He was being in• respect to the program for price sup­ very · unfortui)ate if the farmers of terrogated in order that we might estab­ ports for agricultural commodities. America were saddled with permanent lish what his general philosophy would Many a time we have seen the prices 90-percent price-support legislation. If be in the field of agriculture. of dairy products much below--90 percent anyone wants to know what happened in, Mr. Benson is a student of agriculture, of parity. Many a time we have seen the that connection, let him examine the and has been for all his adult years. No farmers' income far below 90 percent o1 scars which I received from the potato man can be a student of agriculture and parity in respeet to other perishable com­ program, . which .was a program provid­ then work against the welfare and in­ modities, such as poultry and eggs.· Yet ing fixed 90-percent price support. terest of the farmer. Being a student the philosophy was to support the prices Mr. YOUNG. Mr. President, will the of agriculture and a man well grounded· of agricultural commodities at 90 percent Senator yjeld? · in the field of agriculture, I am confident of parity, but that philosophy was appli­ . Mr. ANDERSON. In a moment. I that Mr. Benson will work for an agri­ cable only to the six so-called basic agri­ cultural program which will provide 100- cultural commodities, rather than to the should say that 60 percent was. fixed sub­ broad field of the many commodities sequently. It was fixed at 90 percent by percent parity for the farmer: Mr. President, we should not enC:eavor which are basic in respect to the respec­ the terms of the Steagall amendment. I tive areas of the United States in which think I know whether it was or was not. to provide anything less than 100 percent of parity, whether it be for agriculture, they are produced. Does the Senator from North Dakota So, Mr. President, in listening to the wish to contradict that statement? or for those in the professional fields, for interrogation of Mr. Benson at that ses­ Mr. YOUNG. At the time when we labor, or any other segment of our econ­ sion of the Committee on Agriculture and got into trouble the price support pro­ omy. As Members of Congress parity Forestry, I was satisfied that he came gram was 60 percent of parity, was should be our endeavor for all the groups not only as an able student of agricul­ it not? in the economy of our Nation; and agri­ ture but also as one who has integrity Mr. ANDERSON. No; it was not. I culture is justly entitled to 100 percent and sincerity and as one who will en­ know of the time when the Senator from of parity, rather than only.. 90 percent. deavor with all his might-which is very North Dakota claims we got into troubl~, Similarly, a laboring man is justly en­ great, because of his qualifications in and I know when I got into trouble. titled to 100 percent of parity in his case. that field-to develop and carry out a Mr. YOUNG. .I know when the De­ So I am confident that Mr. Benson's farm program which will provide for 100 par.tment of Agriculture got into trouble. general philosophy and fairness are percent parity, rather than 90 percent It was when $440,000,000 was lost in such that he . will endeavor to establish parity. in the case of only six commodi­ supporting potato. prices at .60 percent for the producers of our land 100 percent ties which are only a part of our great· of parity. . of parity in terms of their income and agricultural economy. Mr. ANDERSON; l hope the Senator their share in the national economy. Therefore, Mr. President, I am happy . from North Dakota will look up the :rec· Mr. Benson cannot foresee what will to support and vote for the confirmation ord. It happens that we. started under be the· agricultural situation 1 year, 2 of Mr. Benson's nomination. the terms· .of tpe. St~agaU · amendment, years, or ·•3 years from now. A major Mr. WATKINS. Mr. President, . wiil and eventually lost many hundreds of drought could bring about a scarcity. the Senator from Minnesota yield for a millions of dollars. We subsequentiy of ~any of the agricultural commod­ question? adopted a rigid: 60-:percent· support pro• ities, in which case the question of pro- Mr. THYE. I am glad to yield. 486 CONGRESSIONAL RECORD:..:::: SENATE 'January 21 Mr. WATKINS. With respect to price way an attack upon Mr. Benson as a. Mr. WELKER. I yield to the Senator supports for agricultural commodities, is person or for his devotion to agriculture from Vermont. it not true that there are many other or anything else. . Mr. AIKEN. The Senator from Idaho policies an administration could carry We do have some honest differences of is probably fully aware of the fact that on which would aid agriculture tremen­ opinion. I do not believe that any Mem­ the support programs now in effect are dously, and that support for agricultural ber of the Senate today can tell me what the ones required by, law. commodity prices is not the only method Mr. Benson's views ate with respect to Mr. WELKER. That is correct. of assuring parity for ·farm commodity 90-percent -supports for basics or flexi­ Mr. AIKEN. There are numerous prices? ble supports. Which does he favor? types of support which are now in effect. Mr. THYE. Mr. President, I may say That is what I have been trying to ascer­ Since the outgoing administration saw to my distinguished friend the Senator tain. It is basic to the entire program · fit to put them into effect, plenty· of from Utah that if the United States Gov­ of price supports for agricultural com­ money is available, with plenty of au­ ernment in its endeavors had put forth modities. thority, yet they have not seen fit to put as great an effort in the fields of re­ I hope none of my remarks will be supports under certain other commodi­ search, processing, packaging, and stor­ interpreted as being derogatory of Mr. ties as they were authorized to do by ing of agricultural commodities as the Benson himself. He is a fine person. law. Mr. Benson certainly could not be effort it has made in the field of the pro­ He may have his own views about agri­ expected to do any less under the law duction of those commodities we would cultural matters. I have some different than the recent Secretary of Agriculture not have misused the agricultural com­ ones. has been doing. Mr. Benson, as the Sen­ modity surpluses in the manner we have I am much concerned about whether ator from Idaho will recall, simply re­ often misused them and prevented them the Republican Party will carry out its fused to state what he was going to do from being consumed by human beings. campaign pledges. If the Republican after 1954. So I say we have a tremendous job on Party does not carry out the campaign Mr. WELKER. That' is correct. our hands, namely, in the field of re­ pledges of Mr. Eisenhower, it will be a Mr. AIKEN. I maintain that neither search to develop a sounder and better bad day for the country as well as for the Senator from North Dakota, the farm program .than the one we have had the Republican Party. Senator from Idaho, nor the Senator in the past. Mr. WELKER. Mr. President, I know from Vermont can say today what means I am confident that Mr. Benson has the that my friend, the Senator from North we would use to promote a prosperous educational background and understand­ Dakota, did not attack the honesty or agriculture for free and independent ing which will enable us to go forward integrity of Mr. Benson. On the other farmers after 1954. We certainly, 3 years toward 100 percent of parity for the hand, it seems to me that when Mr. Ben­ ago, did not foresee the conditions which prices of all agricultural commodities, son said at the committee hearing-in prevail today. rather than only 90 percent of parity reply to a question which I believe the Mr. WELKER. I thank the Senator for the prices of only six agricultural Senator from North Dakota asked him­ from Vermont for his learned discourse. commodities. that he would enforce the laws Congress Mr. YOUNG. Mr. President, will the Mr. WATKINS. Mr. President, I thank charged him to administer, that an­ Senator yield? the Senator from Minnesota for his re­ swered the question. Mr. V/ELKER. I yield to the Sena­ marks and for his very fine contribu­ Mr. President, I am not the least con­ tor from North Dakota. tion to this discussion. cerned about the possibility that Mr. Mr. YOUNG. I wonder whether the Mr. WELKER. Mr. President, Ezra Benson would destroy the Republican Senator from Vermont was exactly ac­ Taft Benson was born in the State of Party. I wish we had in the Cabinet curate in his statement? Oats, barley, Idaho, and the State of Idaho rejoices more persons with the great ability of rye, soybeans, flax, and many other com­ in his nomination. We are proud that Ezra Taft Benson. modities presently are being supported the Nation will receive the great services Mr. YOUNG. Mr. President, will the at about 80 percent of parity but on a of this able man. Senator from Idaho yield again to me? discretionary basis-not mandatory. Ezra Taft Benson has been a dirt Mr. WELKER. Yes; I am very glad to They will be supported at 85 percent of farmer. He has been a scientific farmer yield. · parity next year, under the present an­ engaged in the extension service work Mr. YOUNG. I think the Senator nouncement by the Department of Agri­ throughout my State. from Idaho knows that under the price­ culture, but again I may point out that Idaho is primarily an agricultural support program the Secretary of Agri­ these su·pports are not at all mandatory. State, although in addition it has giant culture can support the prices of most Mr. Benson can eliminate them next forests. Mr. Benson knows and under­ agricultural commodities at any level, at year. That is the thing I was trying to stands every phase of agriculture and anywhere from nothing to 90 percent of ascertain; namely, what his position forestry. parity. mig~t be. As a Member of the Senate, When I heard Mr. Benson say, the Mr. WELKER. That is correct. I thmk I should know that. other day, during his appearance before Mr. YOUNG. He can provide no sup­ Mr. WELKER. As the Senator from the Senate Committee on Agriculture port pro&'ram at all and still can be. in Vermont has stated, the controversy and Forestry, that he would abide by the complete compliance with the law. In arises from the fact that the distin­ law, it was no surprise to me, for I knew fact, there are as many as 50 price­ guished nominee would not tie himself he would abide by the laws Congress support operations which are optional in down as to what he would do 2 or 3 years passes. character. hence. Am I correct in that assump­ I say to you now, Mr. President, that I may point out again that Mr. Ben­ tion? never has the West sent a more able man son, as Secretary of Agriculture, could Mr. YOUNG. That was only a pass­ to Washington than Ezra Taft Benson. completely eliminate those price sup­ ing question. I asked him whether he I am distressed that my learned col­ ports and would still be entirely in com­ wanted to comment; he said "No," and league and friend, the Senator from pliance with the law. If he did, I think that was the end of that particular dis­ North Dakota [Mr. YoUNG], will not sup­ it would be contrary to the campaign cussion. port wholeheartedly the nomination of commitments of Mr. Eisenhower. Mr. LANGER. Mr. President, will the Mr. Benson. I know Mr. Benson's back­ Mr. WELKER. I believe he made the Senator yield? ground and religious training. Never statement that he would be glad to do Mr. WELKER. I am glad to yield to have I seen a finer nominee come before away with all supports. Well, who, the distinguished senior Senator from a legislative group. ideally, would not be? If we could live North Dakota. I urge the Senate to vote for the con­ in an economy without supports, if that Mr. LANGER. I am sure the distin­ firmation of this nomination. were in any way possible, I think all of guished Senator from Idaho misspoke Mr. YOUNG. Mr. President, will the us would be glad to do away with them. himself a minute ago when he said he Senator from Idaho yield to me? Once again let me say this man has was opposed to all price supports. From Mr. WELKER. I am glad to yield to the ability and the integrity that few conversations I have had with him I my friend, the Senator from North Secretaries have ever had within the know that he is very much interested Dakota. period of my young life. I urge the con­ today, for example, in seeing that the Mr. YOUNG. There seems to be a firmation of his nomination. mineral interests of his own State of misunderstanding as to the statement l\1:r. AIKEN. Mr. President, will the Idaho are protected, the same as in I have made. My statement was in no Senator yield? North Dakota. · 1953 CONGRESSIONAL RECORD- SENATE 487 Mr. WELKER. If I said that, I cer­ know he meant what he said. I feel So I ask the Senator from Colorado, tainly shall correct the RECORD. What I . that Mr. Benson, as an employee of his, chairman of the committee, on whose wanted to say was that I do not think so to speak, as Secretary of Agriculture, judgment I place great confidence, if he anyone cherishes the idea of the neces­ is goirig to carry out that promise. I is satisfied that Mr. Humphrey has di­ sity of supports. Certainly they are nec­ know that he will do so. vested himself of financial holdings, par­ essary at this time .. We hope to see our Mr. Benson will be taking over the ticularly in connection with the Hanna economy develop to the point where they Department of Agriculture at a time Co. and the subsidiaries of that company will become unnecessary. · when farm prices are declining. We to the point that, in the opinion· of the Mr. LANGER. I know from conver­ have some very critical situations, par­ Senator from Colorado, there is no phase sations I have had with my distinguished ticularly in the livestock industry. But of Mr. Humphrey's work as Secretary of friend that he is in favor of price sup­ I know very definitely that though this the Treasury that would cause him any ports on such items as antimony, tung­ is happening at a time of high employ­ embarrassment because of his connec­ sten, and all other minerals which come ment of labor and high industrial pro­ tions with those companies? to·us from foreign countries, and which duction, agriculture will be protected. Mr. MILLIKIN. ·Mr. President, I will have a tendency to tear down the stand- I am very happy over the nomination say to the distinguished Senator from ards in this country. · of Mr. Benson. He is, a man who . is Oregon that I do not believe the situa­ Mr. WELKER. That is very true, and thoroughly familiar with the problems tion is different from that· disclosed by I thank my friend from North Dakota affecting agriculture. He is a man of the record or that it is such that it would for calling that to my attention. high character, a Christian gentleman. cause embarrassment. I do not believe Mr. YOUNG. Mr. President, will the I again want to assure the Senate and Mr. Humphrey would allow it to cause Senator yield? · the farmers of the Nation that they need embarrassment. Mr. WELKER. I yield to the Senator have no fear that the rug will be pulled Let me say that before Mr. HumpUnited States Army; the Chief civilian economy, particularly in regard to matters. of Naval Operations; and the Chief of Staff, the procurement or disposition of strategic "SEc. 402. (a) The Secretary of each mili• United States Air Force. The Armed Forces and critical material and the maintenance of tary department, subject to the authority, Policy Council shall advise the Secretary of adequate reserves of such material, and mak· direction, and control of the Secretary of Defense on matters of broad policy relating ing of recommendations as to policies in Defense, shall cause budgeting, accounting, to the Armed Forces and shall consider and connection therewith; and progress and statistical reporting, internal report on such other matters as the Secre· "(9) assembly and review of material and audit and administrative organization struc· tary of Defense may direct. personnel requirements presented by the ture and managerial procedures relating "SEC, 211. • • * Joint Chiefs of Staff and by the production, thereto in the department of which he is "(b) Subject to the authority and direc· procurement, and distribution agencies as­ the head to be organized and conducted in tion of the President and the Secretary of signed to meet military needs, and making of a manner consistent with the operations of Defense, the Joint Chiefs of Staff shall per­ recommendations thereon to the Secretary of the Office of the Comptroller of the Depart•. form the following duties, in addition to Defense. ment of Defense. such other duties as the President or the ...... • • • • • Secretary of Defense may dl.J:ect: "SEc. 214. (a) There is hereby established "SEC. 403. (a) The budget estimates of the "(1) Preparation of strategic plans and in the Department of Defense a Research Department of Defense shall be prepared, provision for the strategic direction of the and Development Board (hereinafter in this presented, and justifie'd, where practicable, military forces; section referred to as the "Board"). The and authorized programs shall be adminis· "(2) Preparation of joint logistic plans Board shall be composed of a chairman, who tered, in such form and manner as the Sec· and assignment to the military services of shall be the head thereof and who shall, retary of Defense, subject to the authority; 490 CONGRESSIONAL RECORD- SEN:ATE January 21 and directibn of the President, may deter- [From the New York Times of January 19, actment. hi its earliest form (sec 8, act of mine so as to account for, and report , the · 1953] March 2, 1863, 12 Stat. 698). Such a search cost 'of performance of readily identifiable MR. WILSON's PREDICAMENT might disclose some indication of congres­ f-unctional programs and activities, with General Eisenhower's selection of President sional intent with regard to the content of segregation of operating and capital pro- Charles E. Wilson, of General Motors, to be the quoted phrase, but 'it would require a grams. So far as practicable, the budget Secretary of Defense was favorably received considerable period of time and might prove estimates and authorized programs of the by almost everybody except those who dis­ to be completely unrewarding. Accordingly, military departments shall be set forth in approve of successful businessmen on prln­ other aids to statutory construction have readily comparable form and shall follow a ciple. Mr. Wilson must be the more cha­ been used in. the preparation o! this uniform pattern." grined that his candidacy has now run into memorandum. MUTUAL SECURITY ACT OF 1951, AS AMENDED substantial opposition in the Senate on the ABSTRACT DEFINITIONS (ACT oF OCTOBER 10, 1951, 65 $rAT. 373, AS ground that his refusal to get rid of his GM Webster's New International Dict ionary AMENDED> stock would, if he took office, controvert a (2d ed., 1947)· contains the following defini­ "SEC. 506. (a) In the case of aid under this Federal la.w and be contrary to the public tions: act for military end items and related tech- ili terest. "Direct: In a direct manner; directly; iro- nical assistance and advice, the Secretary of The iast thing in the world that Mr. Wilson mediately; straight; absolutely" (p. 738). Defense shall have primary responsibility proposed, we are sure, was to disregarl a law "Indirect:· Not direct; specifically, (a) Not and authority for- - or injure the public interest. As he ml:!st straight or rectilinear; deviating . from a " (1) the determination of milita.ry end- have seen the situation, he was giving up a direct line or course; circuitous; oblique; Item requirements; ~ . . , private income - which .has reportedly, run •. • • (d) Not resulting directly from an " (2) the procurement of military equip-· above half a million dollars .a year in return act or cause, but more or less remotely con- - . ment in a manner which permits its 'integra-- for a public inco~e of $22,500 a year,. and was n'ec.te·d with, or gr· owing ou· t of', it,· as indirect. , tion with service programs; doing .this to serve his cou,ntry. No :one can_ results" .·(pp. 1266'-1277). - . . . , . " (3) the . supervision of end-. item use · b Y doubtti hisld·. utter t integ~ity t th• t . h~is l;>itterestld t k " As ·suggested by those definitions, the cri cs. wou · no ~ugg~s · a e. wou a e · words "direct" and "indirect" are not terms · the recipient countries; . . - a public position in order to serve a private of absolute connotation, but are used ordi- " (4) the supervision of the training of 1 t t · foreign military personnel; and n Beres t · 1 - 1 d ev if the law n'arny to express a degree of relationship . "(5) the movement and· delivery of mili- hiu h a aw t1s fita thaw, pan nt encase does not · w'hich may vary with the subject to which w c seems o e reee · they are applied. Thus precise meaning can tary end items. actually do so, or could be amended to ex- be ascribed to those terms only as they are . "(b) The establishment of priorities in empt Mr. Wilson, the moral responsibility . used in connection with a particular subject, · the procurement, delivery, and allocation of would remain. We cannot distinguish, in situation, or relationship. As noted in People military equipment shall be determined by law or in principle, between persons who are v·. Boylan ((C. C. D. Colo., ) (25 Fed. 594, the· Secretary of Defense. The apportion- above temptation, as Mr. Wilson surely is, 95- ) )·: . 1885 ment of funds between countries shall be and those who are not. The good and honest 5· "The596 word 'direct' is o! large use in · the determined by the President." man must accept restraints in order that the bad and dishonest may not run loose. language, and it has been adopted into the DEFENSE APPROPRIATION ACT, 1953 (ACT OF JULY Mr Wil law in many r,elations. We have direct de- 10, 195,2, PUBLIC LAW •sa, 82D CONG.> The restraints that at first glance · - scent, direct taxes, direct interest, direct "SEc. 619. Irisofar as 'practicable, the Sec- son might have to accept are severe. In ad- route, and so on, untii we have come now ditibn to sacrificing most bf his present in- retary of Defense shall assist ·American small come . he'. would be asked to ~ispose of his . to direct payment. Any effort to assimilate . business to participate equitably in the -rut- · its meaning in all the places and connec- · nishing of commOdities ·and services financed stock ·Under· circumstances Tequir1 ng ·h 1m to . tfons in Which .it may be plac.eci InUSt f;a,il . with funds appropriated under this act by - pay a heavy tax. He would; in a sense, be for obvious·· reasons. One meanh:~g of the making available or ·caustng : +. o be made· _:p_ayin_g theGov,~r:nment _ a ~ons~der~ble . l:iUin; - wo.rd·, as g·i.ven_· ·.. i. n. ,.W,_ ebsfer's _D_ictionary; .'i_s · ~ , in order to be permitted 'to wo~k for it. , But - · · available to suppliers- in ·the:·united States; - . dOes not a' i;oldier who loses :hiS life, ·liri:ib, · ·immediate, express, unamQiguous, confessed, and particularly to small independent enter- or·health in battle take an even greater' loss? absolute·. . hi 'my. judgment, this 'ti cleariy · prises, information; as far 1n advance as'p'os- Mr. Wilson · may conclude, ~ ~fter he : has the se:b.se b:i which it is· applied t<)':i>aymen·ts. Sible, with' respect to purc_hases. proposed to . thought the matter over, -that. patriotism A, direct pay~ent is _one which is absOlUte . Pe :financed . withj -furicfs approprijl.ted under .. may well demand sacrifices· in 'one case as and .unconditional as to time, amount, .and tbis ·act, 11-nd·by making available or causing ' . . . the persons by whom and to whom' it is to_ ' b ~. - bl t h i. "" d , , . i~ , the other. ~ · · . · ·, . . . __ •• . t 0 e ma..,_e a:val 1a e 0 pm:.c ~s no: an ~n- · To sum up, we · believe that Mr. Wilson be made. t:r;acting. ·agencies of the Department of De- would find it intolerable to dea."I a5 a public · · In c·onsidering the power· conferred uppn fense information as to commodities and - official ..with a great cor-poration in which lie the C.ongress by the commerce clause · o~ .the services produce~ and furnished by small continued to have a :financial interest . . We Constitution, wh~ch ;has been .constr:ued to 1\;··- independent enterprises in the United States, · believe it will be the part of wi~dom for him apply ·only _- with re,spect to. direct b~rdens and by_otherwise helping to·give small busi- either to divest himself of his corporate upon or obstructions to i~terstate commerce, ness an opportunity to participate in the . holdings or withdraw his acceptance of the it has been stated (N. L. R. B. v. Bradford D. furnishing ot commodi~ies and services designation. We hope he will choose the Ass'•n (C. c. A: 1. 1939, 106 F. 2d 119, 121- fi.nance·d with funds appropriat ed by this :first course. 122)): act. "Only as thus qualified may an act of ...... Congress be construed as exercising that con-' "SEC. 638. (a) Notwithstanding any other MID.tORANDUM FOR THE CPMMITTEE ON ARMED SERVICES trol within constitutional bounds. Acts provision of law and for the purpose of · which only indirectly affect the :flow of com­ achieving an efficient, economical and prac­ T~is memorandum is transmitted pur­ merce between'the States are not within the tical operation of -an integrated supply sys­ suant to the request of the ~hairman of control of Congress, but are left to the con: tem designed to meet the_needs of the mili­ the Committee on Armed Services, made on . trol of the several States. ·Direct in respect · tary departments witho_ut duplicating or motion of Senator BYRD, for information to sequence, either in point of-time or result , · overlapping of either operations or func­ concerning -the meaning to be ·given to the means mediate, no~hing interven_ing." tions, no officer or agency in or unqer the words ~~directly or : indirecj;Iy" as used in. Department .of Defense; after the 'effective · section 434,· title i8, United states· Code. coNJUNCTIVE usE .OF :TERMS · ·:!- date of this section, shall .obligate any -funds . That section provides.: , : . ,_ ... -.. , , ,. The .t'erms _"directly". ant;I --"i~-directly~ ' are · :for procurement, production, warehou'sing,·; '.!Whoever,: beiJ;lg ~n officer; agent or rmem- -not used separately in section 434, .but are · distribution ·of ·supplies·or··equipment or re- ber of, or directly or indirectly interested . u.sed in conjunction w_ith·each otlier to char-. . lated supply manageme~t 'functions, except iJ;I t~e pecuniary ·profits or contracts of-any - acteri~ cpllecti-vely the quality of interest ·· .in accordance .with regulations issued by the , corpor!'tt.ion, joint-$tock compa~y. or associa- ~ to which the section is directed. "When so I • Secretary of 'Defens~." · tton, or of any, fi.rm or partnership, or other. used, those terms if taken literally can ·be . business entity, is employed ·or acts as an ' given a very· broad me_aning-so· broad as to MILITARY PuBLic· WORKS APPROPRIATION AcT, officer or agent of the United States for the be virtually ~_;ynonymous with the expression 2 · 1953 (ACT oF JULY 15, 195 , PUBLIC LAW 547. transaction of business with such business· "in any manner." In a very early case _de- ~ .. 82 ~ CONG.> . ·· entity, shall be fined not m:ore than .2,000 cided by the Court 'of Appeals of ·Maryfand _ ·~sEC. 802. None of th,e funds appropriated or impri2oned not more· than 2 years, or (Davis v. -Barney (2 G~U & J, 382 (1830)·), in tbis ·title shall be expended for ,pa,yments both." · in which it interpreted the phrase "direct· or · · ·under a cost-'plU:s-a-fixe_d.:.fee contr!l-ct . for _Tl;le words '!directly or indirectly" are used indirect'! in relatiword . 'indir~ct.' se~ms tq .us to have Stat,es v."itho};lt the specific approvl;\l in · ~~it- _ r~spe_~ to a corJ>~ation ~r · other · bu!!liness·· bee~· usedfor.the. specialpurposeofguarding .. ing !)f the SecretarY. of. De~e~se_ se~ting forth · entity: ( 1·) in:terests in its peciuiiary profits, .: against any . kind of .int_erference _by t.he the reasons therefor." ·.· and (2) interests in the ,co~ tracts of .S'uph c1' eferi('la~.t. in·. aidiri.g_oi' in· any manner pro- Respectfully, entity: _ · - - . ~- · · .: · _· _····motihg;'the establishment pf~ or · car_ry'ln~ on• .JOHN d. HERBERG, . -The press· of -time has preve~ted- any un- · ·imy__ opposit~on~ . Our 9onstruction therefore, Assistant Counsel. d~rtaking to search th~ entire legislative his· of the contract is, that the defendant' could ._'JANUARY 21, 1953. ...._tor~ o! section 434 !rom the date o! its en- not, without violating the contract, set up 1953 CONGRESSIONAL RECORD- SENATE 491 or carry on, or knowingly aid or intermeddle, scribed in a comment which appeared in the with his company. To a larger degree his or in any way whatsoever, directly or in• Yale Law JoUrnal in 1925 {34 Y. L. J~ 652, share in the earnings of the corporation as a directly, be concerned in setting up or carry­ 662-64) : stockholder would be affected by his advice. ing on any line of stages on that road, in "It is said that a corporation holds its "The advice of the officer would probably opposition to the appellants; he was bought property in trust for the individual sp.are­ also materially influence the nature and ex­ out for _the purpose of being pu~ entirely bolders. In accordance with this statement tent of the contracts entered into with his out of their way. -Under any other construc­ and in description of shareholders' rights in company. Conflict between the interests of tion, the word 'indirect' would lose its office, undivided profits as recognized in the decided the United States, the interests of the cor­ and the object of the contract be defeated." cases, it seems proper to say that accruing poration, and the interests of the Army officer Whether a meaning of such inclusiveness profits co_me into the hands of the corpora­ as an officer and stockholder of the corpora­ is to be ascribed to the phrase "directly or tion impressed with a trlJ.st in favor of the tio_n are more than likely to arise. Such indirectly" when used in any particular stat­ shareholders who would be entitled to re­ conflicts and results were doubtless intended ute must depend upon the language em­ ceive them, were they then divided. The to be avoided by the statute. In this case, ployed in the full text of the statute, inter­ norm is the corporation with only one class the officer would clearly be a person directly preted with a view to effectuating the pur­ of shareholders. In such a concern the stock­ or indirectly interested in the pecuniary pose for which it was enacted. holders take their equitable interests in profits within the meaning of the statute." APPLICABn.ITY OF SECTION 434 TO SHAREHOLDERS accruing profits in proportion to their hold­ The foregoing discussion as to the nature ings. Before the accrual of such profits the of a shareholder's interest in corporate profits Whatever may be the full import of the stockholder has merely an expectant interest leaves little doubt that such an interest in words "directly or indirectly," present co~­ analogous to the expectancies of the law of a corporation as to which a Government cern as to that matter appears to center real property. After their accrual he is the officer "is employed or acts as an officer or chiefly upon the question whether that beneficiary of a trust, whose res is the undi­ agent of the United States for the transac­ phrase, as used in section 434, includes the vided profits and whose terms are settled by tion of business" is of the .kind included interest of a shareholder in a corporation. the law of corporations and the contract within the scope of section 434. In that .AB to that question, the critical words of between the parties. The expectant interest interest is not direct, it is almost surely an the section are these: "Whoever, being • • • of the common stockholder, as the norm, is indirect interest within the meaning of that directly or indirectly interested in the pe­ that given by the law as an incident of the section. However, this is not to say that cuniary profits or contracts of any corpor­ shareholder relationship when the nature the mere existence of some interest as a ation • • •." Those words are used of the expectant interest of the shareholder shareholder would necessarily and in all in­ to describe the class of persons to whom the is not the subject of express contract. To stances result in the application of section section can be applied if any such person designate shares as 'preferred,' 'cumula­ 434. There remains for consideration the should engage in conduct of the ki~d pro-:­ tive,' 'noncumulative,' and so on is to con­ question whether, in giving effect to the ulti­ hibited. by the language which follows tract expressly as to the nature of this ex­ mate purpose of section 434 as a criminal therein. pectant interest in profits not yet in esse. statute, the courts might apply an additional Determination whether the phrase "di­ The _cumulative preferred stockholder has test to determine whether an existing inter­ rectly or fndirectly" applies to shareholders during the first year an expectant interest in est of that kind is actual and substantial or requires recognition that the word "interest" that fraction of the first year's profits which merely nominal and trivial. A discussion o! also is one which may differ in meaning ac­ equals the promised percent of his hoid­ that question appears in a later section of Burton United cordfug to its use. See v. ings--say 7 percent. If profits are earned, this memorandum. States (202 U. S. 344, 371 (1906)). As stated this expectant interest becomes actual and OPINIONS DISTINGUISHED by the Acting Attorney General in an opinion immediate; if not, it continues merely expect· date~ March 31, 1942 ( 40 Op. A. G. 168, 170), Certain opinions examined in the prepara­ 4 ant, and during the second year such stock~ '1t was the obvious purpose of the statute to bolder will have an expectant interest in the tion of this memorandum have appeared at prevent an officer of the United States from second year's profits equal to 14 percent of first impression to be at variance with the _ transacting "busines's with a corporation in his holdings; and if in the second year there view expressed above, .but on closer examina­ such a way that his action might result in are likewise no profits, then in the third year tion have been considered inapplicable to di'tect or indirect personal pecuniary benefit be will have an expectant interest equal to the question now under consideration. The to the officer." Taking into account that 21 percent, and so on. In other words, his following are the principal opinions of that purpose, the word "interested'• referred to in expectant interests for the various years ac­ kind. section 434 probably refers to a private gain cumulate, when they are not realized, and it An opinion of Attorney General Mitchell through the acquisition of money or some should be noted that, although they are dated April 18, 1929 (36 Op. Atty. Gen. 12) other· thing of value. The phrase "directly realized as actual and immediate equitable gave consideration to the eligibility of An­ or indirectly interested," as used in relation interests in undivided profits, these latter drew W. Mellon to serve as Secretary of the to the words "pecuniary profits or contracts,•' relapse to mere expectant interests if the Treasury. The statute there considered . suggests 'that it was intended to include profits--the subject matter of the equitable (presently 5 U. S. C. 243) provided in part something more than an absolute, presently interes~are lost through the chances of that no person appointed to that office "shall existing, legal title to profits or contracts. directly or indirectly be concerned or inter­ It is very clear· that a shareholder is not the enterprise, and continue as such until again realized. The expectant interest of ested in carrying on the business of trade or a legal owner of corporate property. Hum­ noncumulative shareholders differs from that commerce.'' The Attorney General took the phreys v. McKissack (140 U. S. 304, 312 of the cumulative shareholder only in ~his, view (p. 18) that "the words of the statute (1891)); Rh,ode Island Trust Co. v. Doughton that the expectant interests of the former would not be deemed by those who wrote it (270 U. S. 69, 81 (1926)); Wabash Ry. Co. for the various years never accumulate; they as appropriate words :to describe one who v. American Refrigerator Transit Co. (7 F. must be realized, if at all, out of profits for simply received dividends from stocks which (2d) 335, 342 (C. C. A. 8, 1925)). As stated the corresponding years." be owned and took no active part in the by Chief Justice Taft in the Rhode Island management or control of the corporation Trust case (p. 81): In an opinion referred to above ( 40 Op. A, G. 168), Acting Attorney General Fahy which issued them." Relying in part upori "The owner of the shares of stock in a the decision of the Supreme Court in U.S. v. company is not the owner of the corpora­ gave cognizance to the interest of a share­ bolder in corporate profits in expressing the Delaware & Hudson Co. (213 U. S. 366 tion's property. He has a right to his share ( 1909) ) , the Attorney General concluded in the earnings of the corporation, as they view that an individual who was both an officer and a shareholder in a corporation (p. 19): may be declared in dividends, arising from "My conclusion is that Secretary Mellon is the use of all its property. In the dissolu­ could not be appointed as a liaison officer of the War Department to have dealings with not disqualified from holding the office of tion of the corporation he may take his pro­ Secretary of the Treasury by reason of the portionate share in what is left, after all the that corporation. He stated, with regard to section 41 of the Criminal Code, from which fact that he owns stock in business corpora­ debts of the corporation have been paid and tions. To give the statute any other con­ the assets are divided in a·ccordance with the section 434 was derived (pp. 169-170): "No man can serve two masters. The struction would be to sacrifice the spirit to law of its creation. But he does not own the letter, and under modern conditionS the corporate property." statute in question is clearly grounded on this assumption. Its manifest purpose is would probably exclude from the office a Shareholders are, however, the beneficial great majority of the men most competent owners of corporate property. Koehler v; such that any attempt to reconcile it with to hold and administer it efficiently without Black River Falls Iron Co. (67 U. S. 715, 721 the proposed employment runs into difficul­ accomplishing any good." (1862)); Ashman v~ Miller (101 F. (2d) 85, 91 ties. Some of these difficulties are pointed The Supreme Court opinion there relied (0. c. A. 6, 1939)). In the Ashman case·, the out by the Judge Advocate General of the court states (p. 91): Army -in his opinion em the question. Others upon involved an interpretation of th-e so­ "Equity recognizes that stockholders are are equally apparent. No matter how high called "commodities clause" of the Hepburn the proprietors of the corporate interest· and are the- motives of the Army officer who Act (34 Stat. 584), which provided in part are ultimately the only beneficiaries thereof. advises, he is likely as a realistic matter to that it shall be unlawful for any railroad ThOl'le interests are ·in virtue of the law in­ be consciously or unconsciously influenced company to transport in interstate com­ trusted through the corporation to the direc_. by the fact that his actions may benefit tile merce "any article or commodity • • • tors and -from that condition arises the corporation of which he is an officer and a manufactured, mined or produced by trusteeship of the directors with the- con­ stockholder. · To a degree his salary as an it • • • or which it may own in whole or comitant -fiduciary relationship.'.' officer of the corporation would be affected .in part, or in which it may have any interest The nature of -a shareholder's interest in. by whether his advice leads the War Depart­ direct or indirect • • • ." The Court held the pro:tlts of a c.orporation is -clearly de-· ment to -enter into a procurement contract that commodities produced by a company 492 CONGRESSIONAL RECORD- SENATE January 21 " which was not a railroad company, but in enjoy a moderate income from dividends. stantial interest, remains an open question. which a railroad held stock, were not in­ The fact that the Congress did not specifi­ Such a course would be consistent with the cluded within the prohibitions of the clause. cally use the word 'stockholder' but only observation made by the Supreme Court in In so doing it relied (p. 414) upon the legis­ 'officer, agent, or member,' supports this the Chemical Foundation case (272 U. S. 1. lative history of the clause, which showed argument.'' 19) to the effect that the transactions re.o that the Senate had rejected a proposed A possible means of escape from the logi­ viewed "did not involve any of the evils amendment which by express language cal dilemma described in that article is sug­ aimed at by section 41." would have made the clause applicable to gested by the disposition of a case of like CONCLUSION such commodities. kind by the Supreme Court of North Dakota. Because of differences in the statutory State v. Robinson (2 N. W. (2d) 183 (Sup. The words "directly or indirectly" used in language involved neither the opinion of the Ct. N. D., 1942)). In connection with a section 434 are not words of absolute mean­ Attorney General dated April 18, 1929, nor criminal prosecution, the State district court ing. Their content must be ascertained the Delaware & Hudson case appear to be certified to the Supreme Court certain ques­ from the use to which they are put in con­ particularly helpful with regard to the ques­ tions with respect to a State statute (Comp. text with other language of the section, tak­ tion considered here. The statute consid­ Laws, N.D., 1913, sec. 9829) which provided: ing into account the purpose for which the ered by the Attorney General was concerned "Every public ofiicer, being authorized to section in its entirety was enacted. with direct or indirect interest in "carrying sell or lease any property or make any con­ The evident purpose of that section was to on the business of trade or commerce." The tract in his official capacity, who voluntarily prevent an officer or employee of the United statute considered by the Court was con­ becomes interested individually in such sale, States from transacting business with a cor­ cerned with direct or indirect interest in lease, or contract, directly or indirectly, is poration or other entity in such a way that any article or commodity produced by a guilty of a misdemeanor.'' his action might result in direct or indirect corporation. Both seem readily distinguish­ From the questions certified, it appeared personal gain through the acquisition of able from a statute which, like section 434, that the defendant, acting in his capacity as money or some other thing of value. Inclu­ is not directed at participation in the affairs motor vehicle registrar of the State, pre­ sion of the word "indirectly" in the phrase of a corporation or concern with its products, pared and approved vouchers of the motor "directly or indirectly interested in the pe­ but is aimed instead at a direct or indirect vehicle department in payment for gasoline, cuniary profits or contracts of such corpo­ interest in the pecuniary profits resulting lubricants, and repairs furnished for State ration" suggests that the section extends to from the activities of a corporation. vehicles by a corporation in which the de­ private gains which flow recognizably from profits or contracts even though the gains DEGREE OF INTEREST WHICH MAY BE REQUIRED fendant was both secretary and a stock­ holder. The first question certified was pass through other hands or instrumental­ As suggested above, and in an earlier whether his status as secretary and stock­ ities before realization by the officer con­ memorandum of this office dated January 16, holder made him "interested individually" in cerned. 1953, !=In the interpretation of section 434 the. corporation within the meaning of the In the llght of the relationship existing (p. 9), it is quite possible that the courts statute. After reviewing a number of opin­ between a corporation and its shareholders, in giving effect to that section may inquire ions of other State courts to the effect that it seems quite clear that the interest of a into the extent of the shareholder's interest the holding of stock in a corporation dis­ shareholder in a corporation is of the kind possessed by a Government officer. qualifies a public officer, under the laws of included within that phrase. However, as a The possible implications of giving to sec­ such States, from contracting on behalf of criminal statute, section 434 will be strictly tion 434 a literal and mechanical interpre­ the State with such corporation, the Su­ construed, and it is very doubtful that the tation have been discussed in a recent article preme Court answered that question (so far bare existence of such an interest would be by Edwin McElwain and James Vorenberg as defendant's status as a stockholder was regarded as sufficient ground for the visita­ in the April 1952 issue of the Harvard Law concerned), as follows (p. 189): tion of criminal consequences. A clear Review. In that article it is stated (65 Harv. "The interest contemplated by the stat­ showing of the presence, in a material de· L. Rev. 955, 964-965) : ute may be either direct or indirect but it gree, of the substantive evil at which the "Section 434, although it applies mainly must be an interest that accrues to the ofiicer section is directed would seem to be a neces­ to businessmen and other nonprofessional personally and not in a representative ca­ sary element of proof. The existence of a persons, is a further hurdle which the lawyer pacity such as that of receiver, trustee, or nominal or trivial interest, such as the pos­ thinking of entering Government must administrator. The interest of a stockholder session of a single qualifying share, or the watch for. in a corporation is a personal interest. Gains possession of naked legal title to shares in • • • • or losses of the corporation may redound to which the beneficial interest is held by "More important problems arise out of the interest of the stockholder personally. others, probably would not be enough. But the fact that many Government employees, If his interest in the corporation is sub­ a showing of an actual and beneficial interest lawyers, and others, have small .investments stantial, it undoubtedly comes within the of such magnitude as to demonstrate a prob­ in the stock of corporations which transact purview of the statute even though it may able influence upon the official actions of the business with the Government. Obviously accrue through the holding of stock. On the officer concerned would seem to be sufiicien t. section 434 would prevent a contracting other hand, we do not imply that the holding The sufficiency of proof of such influence ofiicer from letting a contract to a corpora­ of one share of stock in a large corporation necessarily presents a question to be deter­ tion in which he owns a controlling interest, makes an omcer criminally liable in every in­ mined from all evidence presented in each but does it apply when he holds only a few stance wherein he makes a contract with individual case, and any endeavor to state a shares of stock in General Motors, General that corporation. . Criminal liability must generalization applicable to an cases would Electric, or some comparable enterprise? depend upon evidence as to interest other seem inadvisable. "If one looks at the language of section than the 1:iare existence of the relationship It must be noted, by way of precaution, 434, the answer seems to be inescapably of a stockholder in a corporation. The in­ that a showing of the requisite degree of 'Yes.' Almost by definition, a stockholder terest made criminal by the statute is a interest by a Government omcer in the of any size is 'interested in the pecuniary question of fact that does not depend en­ profits or contracts of a corporation or other profits' of the corporation. And the use of tirely upon the relationship that a stock­ business entity does not of itself establish 'directly or indirectly' before 'interested' holder bears to the corporation in which he the existence of any crime punishable under would seem to bar any technical escape based owns a share of stock.'' .section 434. That is but one of two basic on the nature of the stockholder's interest. In substance, the court declared that in el~ments which must be present before any On the other hand, it is almost inconceivable determining such a case it would inquire cnme occurs. The second necessary ele­ that a contracting officer would let such an into the degree to which the defendant was ment is a clear showing that such officer has insignificant interest influence his decision. interested in the corporation, and would ap­ been employed or has acted as an omcer As a matter of mathematics, it is unlikely ply the penalties of the statute if the -interest or agent of the United States for the transac­ that even the most venal act could make should prove to be substantial, but not if tion of business with such corporation or more than a few cents difference to him. that interest was nominal or trivial. No in­ entity. That element, too, presents a mixed Further, a rigid interpretation of 'interested dication was given as to the test which would question of fact and law, and its establish­ in the pecuniary profits' could give ridicu~ be applied in making that determination. ment will depend largely upon the factual lous results; it could lead to the application In the Chemical Foundation case (see prior showing made in each case as to the legal of section 434 to an employee who owns memorandum dated January 16, 1953, pp. responsibilities of the omcer concerned and shares in an investment trust, or, even more 4-6) the Federal courts concluded that, upon the functions actually performed by him. absurdly, who owns life insurance in a com­ all the facts there presented, the mere hold­ Respectfully, pany which holdlil stock in a corporation iD:g of qualifying shares in a corporation did JOHN C. HERBERG, with which he is dealing for the Government. not create an interest which violated section Assistant Counsel. "The only escape from applying section 41 of the Criminal Code, from which sec­ JANUARY 19, 1953. 434 to small stockholders is to remember that tion 434 was derived. That result is in har­ the section was enacted in substantially its mony with the view expressed by the North present form in 1863 when stockholding by Dakota court as to that element in the AUTHORIZATION TO THE SECRE­ people of modest income was rare. In en­ Robinson case. Whether, upon a similar TARY OF THE SENATE TO RE­ acting the section, Congress presumably was state of facts arising under section 434, a CEIVE MESSAGES DURING THE concerned with the Government employee Federal court would follow the North Da­ who had a substantial interest in a· corpora­ kota court in taking one more step in the RECESS tion, not with people who might invest their direction of looking to a substance, rather savings in a few shares of stock in order to Mr. TAFT. Mr. President, I ask than form, and require a showing of a sub~ unanimous consent that during the ad- 1953 CONGRESSIONAL RECORD- SENATE 493 journment of the Senate the Secretary Theodore Francis Green, of Rhode Island. eign Relations and ordered to- be printed of the Senate be authorized to receive Guy M. Gillette, of Iowa. · in the RECORD, as follows: . · ·Thomas c. Hennings, Jr., of Missouri. messages from the President of the THE MASSACHUSETTS STATE United States submitting nominations, Mr. MILLIKIN. Mr. President, will FEDERATION OF WOMEN'S ITALIAN and that they be referred to the appro­ the Senator yield? . CLUBS, INC., priate committees. Brookline, Mass., January 6, 1953. Mr. TAFT. I yield. Hon. JoHN F. KENNEDY, The VICE PRESIDENT. Is there ob­ Mr. MILLIKIN. The same remarks ·united States Senate, jection? The Chair hears none, and it which I made a while ago with respect Washington, D. C. is so ordered. to the original suggestion apply also to DEAR SENATOR KENNEDY: At a recent meet• this one. I have no objection, but I am tng of the executive board of the Massa· chusetts State Federation of Women's Ital· LEGISLATIVE SESSION acting without setting any kind of prece~ ian Clubs, Inc., the following resolution was dent. · adopted: Mr. TAFT. Mr. President, I move The VICE PRESIDENT. Is there ob· , "Because Trieste, which· is predominantly that the Senate proceed to the consid· j ection to the request of the Senator Italian in population, in culture, in history. eration of legislative business. from Ohio? The Chair hears none, and and location, should remain Italian; and The motion was agreed to. "Because it was the .agreement of the it is so ordered. United States, the .United Kingdom, and France, by their declaration in March 1948, COMMITTEE SERVICE that they recommend to the Security Coun­ EXECUTIVE COMMUNICATIONS, cil of the United Nations the return of the Mr. TAFT. Mr. President, I ask ETC. Free Territory of Trieste to Italy as the best unanimous .consent that the Senator answer for the furtherance of stability and from Nebraska [Mr. GRISWOLD] be re­ The VICE PRESIDENT laid before the peace in the area; and lieved of his position on the Committee Senate the following letters, which were "Because the above-mentioned powers referred as indicated: have since violated their agreement by urging on Rules and Administration and be ap­ that this problem be settled between Italy pointed to the Committee on Labor and PARTICIPATION IN .UNITED NATIONS EoUCA• TIONAL, SciENTIFIC, AND CULTURAL 0RGANI• and Yugoslavia: Therefore, be it Public Welfare, and that the Senator ZATION "Resolved, That we, . the Massachusetts State Federation of Women's Italian Clubs. from Wyoming [Mr. ·BARRETT] be re­ A letter from the Secretary of State, dated lieved of his position on the Committee Inc., petition immediate action by our De~ January 19, 1953, tra.nsmitting a draft of partment of State to carry out the agreement on Labor and Public Welfare and be ap­ proposed legislation to amend the act pro· contained in the declaration of 1948 of the pointed to a position on the Committee viding for ·membership and participation by three above-mentioned governments andre· the United States in the United Nations Edu· on Rules and Administration. cational, Scientific and Cultural Organiza. turn the Free Territory of Trieste to Italy.'' The PRESIDING OFFICER. Is there Sincerly yours, tion to provide for the acceptance of gifts, ELVIRA M. FRENCH, objection? and for other purposes (with accompanying papers); to the Committee on Foreign Re· Mrs. Charles W. French, Mr. MILLIKIN. Mr. President, will President. the Senator yield? lations. Mr. TAFT. I yield. REPORT ON INTRA-AGENCY PROPERTY TRANSFERS Mr. MILLIKIN. I should say that I A letter from the Director, Executive Offic·e REPORT OF A COMMIT'l'EE ·believe that as a matter of complete pro­ of the President, Bureau of' the Budget, transmitting, pursuant to law, a report on The following report of a committee .priety a question of that kind should be intra-agency property transfers, for the fiscal was submitted: taken up by the majority conference. year 1952 (with accompanying papers); to By Mr. SMITH of New Jersey: However, under the circumstances, and the Committee on Government Operations. S. Res. 37. Resolution authorizing the em­ without creating any precedent, I shall ployment of additional clerical assistants by not object. I do :riot believe that any the Committee on Labor and Public Welfare; PETITIONS without amendment, and under the rule, the objection will be raised. resolution was referred to the Committee on The VICE PRESIDENT. Is there ob· Petitions were laid before the Senate Rules and Administration. jection to the request of the · Senator and referred as indicated: from Ohio? The Chair hears none, and By the VICE PRESIDENT: it is so ordered. Four telegrams in the nature of petitions PREPARATION AND PRINTING OF Mr. T,AFT. Mr. President, inasmuch from Frederick E. Munschauer, R. W. Dean, REVISED EDITION OF SENA~ Otto Kiel, Jr,, and E. D. Heinz, all of the RULES AND MANUAL as this change is a change which is made city of Buffalo, N.Y., praying for the prompt by consent of all the parties concerned, confirmation of the nomination of Charles Mr. JENNER, from the Committee on the position ,with respect to seniority on Wilson to be Secretary of Defense; to the Rules and Administration . reported. the committees should be the same as Committee on Armed Services. · without amendment, the resolution (S. though this arrangement had been made A resolution adopted by Calloway County Res. 17), submitted by him on January when the Members were first appointed. Post, 5638, Veterans of Foreign Wars of the 7, 1953, and which was considered by To accomplish that purpose, the order United States, Kirksey, Ky., favoring the is· unanimous consent and agreed to• . as of seniority on the Committee on Labor suance of a special stamp in honor of'Nathan follows: and Public Welfare will now read: B. Stubblefield, inventor of wireless teleph· Resolved, That the Committee on Rules ony; to the Committee on Post Office and and Administration be, and it is hereby. ~. Alexander Smith, of New Jersey, chair· Civil Service. directed to prepare a revised edition of the man. Senate Rules and Manual for the use of the Robert A. Taft, of Ohio. Eighty-third Congress, and that 1,500 addi· George D. Aiken, of Vermont. tiona! copies shall be printed and bound. Irving M. Ives, of New York . . TRIESTE-LETTER FROM MASSA­ CHUSETTS STATE FEDERATION of which 1,000 copies shall be for the Senate. Dwight Griswold, of Nebraska. 200 copies for the use of the Committee on William A. Purtell, of Connecticut. OF WOMEN'S ITALIAN CLUBS, INC., Rules and Administration, and the remain­ Barry Goldwater, of Arizona . . BROOKLINE, MASS. ing 300 copies shall be bound in full morocco James E. Murray, of Montana. and tagged as to conte1.1ts and delivered as Lister Hill, of Alabama. Mr. KENNEDY. Mr. President, I may be directed by the committee. Matthew M. Neely, of West Virginia. present for appropriate reference, and Paul H. Douglas, of Illinois. ask unanimous consent to have printed Herbert H. Lehman, of New York. INVESTIGATION OF PROBLEM~ RE­ John F. Kennedy, of Massachusetts. in the RECORD, a letter dated January 6, 1953, which I have received from Mrs. LATING TO ECONOMIC MOBILIZA .. The order of seniority on the Commit- Charles W. French, president of the TION AND STABILIZATION, BANK .. tee on Rules ·and Administration will be: Massachusetts State Federation of Wom­ ING AND HOUSING.POLICIES, ETC. William E. Jenne.r ; of Indiana, chairman. en's Italian Clubs, Inc., of Brookline, Frank Carlson, of 'Kansas. Mr. CAPEHART. Mr. President, from Charles E. Potter, of Michigan. Mass., embodying .a resolution adopted the Committee on Banking and Cur.. William A. Purtell, of Conne((.ticut. by that organization, relating to Trieste. rency. I report an original resolution Frank A. Barrett, of Wyoming. 'There belng no objection, the letter providing for an investigation of prob· Carl Hayden, of Arizona'. was referred ··to the Committee on For- lems relating to economic mobilization 494 CONGRESSIONAL RECORD- SENATE January 21 and stabilization, banking and housing Marine Academy the Senator from Kan­ S. 56.1. A bill for the relief of Charles policies, and certain other matters, and sas [Mr. ScHOEPPEL] and the Senator Chardon Brooks; and . from Oklahoma [Mr. MONRONEY]. S. 562 (by request). A bill for the relief of I submit a report m~ke S . 541. A bill to extend detention benefits tion therewith; to the Committee on the a full and complete study and investlgatwn under the War Claims Act of 1948 to em­ Judiciary. of such problems as it may deem proper ployees of contractors with the United By Mr. IVES: relating to (1) economic mobilization and States; to the Committee on the Judiciary. S. 566. A bill for the .rellel' ol' Kerupe stabilization; (2) domestic and interna­ (See the remarks of Mr. McCARRAN when Herant Liman, Mrs. Vi.olet Liman, and Hilda tional banking policies, including Federal he introduced the above bills, which appear Annik Liman; to the Committee on the Reserve matters and deposit insurance; (3) :u,nder separate headings.) .Judiciary. construction of housing and · community S. 542. A bill for the relief of Pedro Goi­ By Mr. STENNIS: facilities in the present national emergency; coechea Bengoechea; to the Committee on S. 567. A bill for the relief of William (4) Federal loan policies; and (5) war dis­ the Judiciary. Robert De.Grafft; to the Committee on the aster insurance. By Mr. KILGORE: Judiciary. SEC. 2. For the purposes of this resolution, S. 543. A bill for the relief of Sarah Ka­ By Mr. HUNT: the committee, or any duly authorized sub­ bacznik; to the Committee on the Judiciary. S. 568. A bill to·· establish a policy with committee thereof, is authorized during the By ·Mr. KILGORE (for himself, Mr. respect to the granting of special exemptions sessions, recesses, and adjourned periods of MORSE, Mr. MURRAY, Mr. MAGNUSON, to organizations and corporations from taxes the Eighty-third Congress, until January 3~, Mr. HUMPHREY, and Mr. LEHMAN): imposed by the laws of the District of Co­ 1954, inclusive, ( 1) to make such expendi­ S. 544. A bill to assist the States in the tures as it deems advisable; (2) to employ lumbia; to the Committee on the District of· removal of adult illiteracy by the develop­ Columbia. upon a temporary basis such technical, cler­ ment and maintenance of special programs ical, and other assistants as it deems advis­ By Mr. GOLDWATER: of basic elementary education for adults, S. 569. A bill for the relief of Lina Anna able; and (3) with the consent of the head and for other purposes; to the Committee on of the department or agency concerned, to Adelheid (Adam) Hoyer;· to the Committee Labor and Public Welfare. on the Judiciary ~ utilize the services, information, facilities, (See the remarks of Mr. KILGORE when he and personnel of any of the departments or By Mr. MANSFIELD: · introduced the above bill, which appear s. 570. A bill for the re~ief of Giovanni agencies of the Government. under a separate heading.) SEc. 3. For the purposes of this resolution, DePinto; and By Mr. CASE: S. 571. A bill for the relief of Josef Burger; the committee, or any duly authorized sub­ S. 545. A bill to increase to five the number committee thereof, is authorized to expend to the Committee on the Judiciary. of Commissioners of the District of Colum­ By Mr. McCARRAN: not to exceed $23,000 in addition to any bia; to the Committee on the District of other unobligated balance of funds made Columbia. S. 572. A bill for the relief of Fernand Jean Soques; to the Committee on the Judi­ available pursuant to Senattl Resolution 248, S. 546. A bill to authorize payment for Eighty-second Congress, second session, losses sustained by owners of wells in the ciary. agreed to on January 24, 1952. vicinity of Cold Brook Dam by reason of SEC. 4. Expenses of the committee undei.' the loweJ; ing of the level of water in such AMENDMENT OF ROBINSON-PAT­ this resorution shall be paid from the con­ wells as a result of the construction of Cold MAN ACT RELATING TO PRICE tingent fund of the Senate upon vouchers Brook Dam; to the Committee on Public approved by t~e chairman of the committee. Works. DISCRIMINATION · By Mr." BUTLER of Maryland: Mr. McCARRAN. Mr. President, I S. 547. A bill for the relief of Hava Shpak, FUNERAL EXPENSES OF LATE SENA­ introduce for appropriate reference a A. A. Shpak, and Sympeha Shpak; to the bill, which was Senate bill 719 in the TOR BRIEN McMAHON Committee on the Judiciary. By Mr. LANGER: Eighty-second Congress. Mr. JENNER, from the Committee on S. 548. A bill to amend the act authorizing The purpose of this bill, as Senators Rules and Administration, reported an the negotiation and ratification of eertain will remember, is to establish and con­ original resolution uld not obtain a return because the ter of this legislation number approxi­ January 7, I introduced Senate bill 34, to Custodian construed section 32 to deny re­ mately 1,500 employees of certain con­ amend section 32 of the Trading With turns to so-called dual nationals, that is, tractors who were engaged in the the Enemy Act to provide for judicial Americans who, Germany could claim, were construction of airfields, fortifications, relief. also German nationals by reason of marriage and ship facilities on Pacific Ocean is­ I ask unanimous consent that the text or parentage. This indefensible interpreta­ of the bill, together with a statement tion was set aside by Public Law 859, Eighty­ lands prior to the commencement of first Congress, second session. Thereafter World War II. When war broke out explaining the need for the legislation and its purpose, may be printed in the the Claims Branch of the Office of Alien Prop­ these men were captured by the Japanese erty advised that Mr. Pass could not obtain a forces while taking part in the defense RECORD at this point as a part of my return for the reason that he had violated of Wake Island, Guam, and the Philip­ remarks. Nazi Exchange laws in an effort to conceal pines in late 1941 and early 1942. After There being no objection, the bill and his American assets from the Nazis so as to their capture they spent the remainder statement were ordered to be printed: in escape Nazi coercion to transfer the assets the RECORD, as follows: to Germany. of the war in Japanese prison camps Meanwhile, Mr. Pass instituted suit under throughout the Orient. • Be it enacted, etc., That section 32 of the Trading With the Enemy Act, as amended, is section 9 (a) of the act. The suit was dis­ These employees of contractors were further amended by adding after subsection missed under section 33 as coming tod late. ·confined in prisoner-of-war camps and (g) thereof the following new subsection: Section 9 permits a citizen to seek either were considered by the Japanese author­ "(h) Any person eligible for a return un­ administrative or judicial relief or both. It ities as "civilian prisoners of war," and der this section who has timely filed a notice contains no warning that administrative re­ as such were treated in the same manner of claim for return or who may hereafter file lief is a mantrap, that claimants should as the military prisoners with whom they a notice of claim within 2 years from the avoid it in favor of the judicial remedy. date of seizure by or vesting in the Alien Originally section 33 provided that the pe· were captured and imprisoned. Property Custodian, may institute a suit in riod for bringing suit should be tolled by It should be pointed out at this junc­ equity to recover such money or other prop­ the filing of an administrative claim. Sen­ ture that the people or persons that this erty in the manner provided by subsection ate Report No. 1839 (79th Cong., 2d sess.) legislation will benefit have received no .9 (a) hereof and with like effect: Provided, which accompanied section 33 said (p. 3)' detention benefits or other type of com­ That said suit may be filed within 1 year that "fairness requires" that the period dur­ from the date of enactment of. this subsec­ ing which a claim was pending before the pensation for forced labor and inhumane Administrator be subtracted from the time treatment as has been awarded both the tion, anything in section 33 hereof to the contrary notwithstanding, but in computing for filing suit. When section 33 was amended military prisoners of war and those such 1 year there shall be excluded any pe­ in 1948, the tolling clause was inadvertently classed as internees. The persons dealt riod during which there was pending a claim omitted with respect to some claimants, but ·with here have received their pay and for return: Provided further, That the court retained with respect to others. The legis­ allowances for the period of their cap­ in which suit is filed shall advance the cause lative history shows that this discriminatory ture and have been provided with certain for hearing and determination with all pos­ omission was never intended. The conse­ sible dispatch." quence is that Mr. Pass, a resident American medical privileges a:r;1d compensation for who owns the vested property, will be de­ permanent injury benefits as provided by prived of his life work, contrary to the in­ the Longshoremen's Act. STATEMENT BY SENATOR McCARRAN tention of Congress, unless the inadvertence Payments which will be made under During World War II, the property of per­ respecting tolling in section 33 is corrected this proposed legislation will come from sons who were not enemies of the United so that he may ask judicial protection of his the War Claims Fund and not out of the States was vested by the United States for rights. This is just one example. protective purposes. After the war, the The amendment goes beyond relief to Treasury of the United States. The War Congress passed, and the President approved, American citizens in that section 32 includes Claims Fund was created by the War an amendment to the law under which this refugees and persecutees~ It is almost 6 years Claims Act of 1948 and consists of funds property bad been vested. The amendment, since Congress provided relief in section 32 covered into the Treasury after liquida­ which became section 32 of the Trading With for those unfortunate victims. In the in­ tion of German and Japanese property the Enemy Act, was enacted to facilitate the terim the mountain of these claims has not vested by the Alien Property Custodian return of their property to these nonene­ been appreciably reduced. If the· Congress pursuant to the provisions of the Trad­ mies. However, return of this vested prop­ wishes these claimants to enjoy their prop­ erty was made an administrative function erty during their lifetime, it must open the ing With the Enemy Act. without the imposition of .any restraint in courtroom doors and order that their cases The reason that the persons who the form of judicial relief or review. be advanced !or hearing. would be benefited by this proposed leg­ The bill which I have just introduced is islation do not receive compensation is designed to insure a judicial remedy to those reflected in subsection (a) of section 5 claimants. It springs from the creeping pace NATIONAL LITERACY EDUCATION of the War Claims Act of 1948, wherein at which returns to eligible claimants are be­ it was stated that persons of this cate­ ing made, from the arbitrary manner in ACT OF 1953 gory were excluded from that act. which some of these claimants are being de­ Mr. KTI..GORE. Mr. President, on be­ nied returns, and from the fact that the ex­ half of ... the Senator from Washington In this connection, the American Fed­ piration of the statutory time limitation for eration of Labor, in a letter dated March filing claims for administrative relief by [Mr. MAGNUSON], · the Senator from 7, 1952, and in reference to S. 2678, these non-enemies has been held to deny Oregon [Mr. Mo.RSE], the Senator from which was a bill intended to accomplish judicial relief notwithstanding the fact that Montana [Mr. MuRRAY], the Senator the claim had been time~y filed for admin­ from Minnesota [Mr. HUMPHREY], the the purpose of the legislation I am now istrative consideration. In consequence, Senator from New York [Mr. LEHMAN], introducing, stated: these nonenemies (some of whom are Ameri­ and myself, I introduce for appropriate The persons to which your bill, S. 2678, cans) are being ·stripped of their property reference a bill entitled, "National Lit· applies, who were held as prisoners of war by contrary to the intention of Congress and eracy Education Act of 1953." I intro­ the Japanese, were forced to work during without resort to the courts. their entire internment or until the time of The proposed amendment is modeled after duced· a similar bill in 1948, and during their death and they received only those section 9 (c) of the Trading With the Enemy each Congress since that time. I am in­ benefits due them under the provisions of Act. The proviso for advancement of the troducing it again now bec~use I am 496 CONGRESSIONAL RECORD-· SENATE January 21 more convinced than ever of the serious­ ILLITERACY SLOWS NATIONAL DEFENSE fare depend on the efficiency of its workers, Adult illiteracy is a serious problem to our the competencies of its citizens, and the ness of the problem of illiteracy, of its ·wholesomeness of the relationship of its fam­ national importance, and of the urgency defense authorities. The loss in manpower because of illiteracy during the last war is ilies, it follows that anything that will con­ of the need to do something about it. well known. The number of men rejected tribute to the achievement of these goals--as This is a bill "to assist the States .in the by the Selective Service System would have does literacy-becomes an urgent responsi­ removal of adult illiteracy by the devel­ made 40 Army divisions. Even today, with bility of the Nation. opment and maintenance of special pro­ our limited mobilization, the military could ILLITERACY ENDANGERS DEMOCRACY grams of basic elementary education for do a much more effective and speedy job of · Democracy, more than any other form of adults, and for other purposes." preparation if they did not have to contend government, calls for a literate population. I am introducing this bill early in the witb the illiterates. It is estimated that ap­ Our founding fathers recognized this, how­ proximately 75,000 male youths who are ever, they did not specifically provide for its session in the hope that each Senator functionally illiterate (had completed fewer and Representative will have an oppor­ achievement in the organic law. Neverthe­ than 5 years of schooling) reach registration less, the principle has been so generally ac­ tunity to study the problem, and in the age each year, and that the corresponding cepted that we have established the most hope that the appropriate committee will number of females is approximately 50,000. comprehensive system of .free universal com­ hold adequate hearings on the bill, and Unless means are provided to. lift this mass pulsory education found anywhere in the that the Congress will finally ei;lact it of undereducated youth to a level of func­ world. into law. tional literacy, and if we face all-out· mobili­ Despite this fact, we still have millions of In my speech introducing the bill 4 zation, the Defense Establishment will find adult citizens who are illiterate, whose lack itself saddled with the burden of training of education is a handicap to themselves, years ago, I called attention to the ex­ as was the case during the last war. To tent of illiteracy in the Nation, basing and causes them to become a drag on so­ the extent to which this is necessary, it will, ciety and a potential menace to our demo- my conclusions on the 1940 census. We of course, divert the ·time and energies of cratic way of life. · now have the 1950 census data available, the military from their primary task of defense. In order to function effectively in a de­ and I regret to inform you that during mocracy, citizens must possess facts about the decade the situation changed only ILLITERACY RETARDS ECONOMIC GROWTH many things and people. If they are to ex­ slightly. In fact, in spite of the exten­ Our economic strength is an important ercise the kind of independent judgment sive literacy education program of the link in our defense program. The .industrial which our representative form of govern­ Armed Forces, and many other similar and agricultural activities which are at the ment requires and are not to be unduly programs, the number of functionally foundation of our economic strength are be­ swayed by the rabble rousers, and the bom­ illiterate adults was reduced by less than coming highly mechanized, requiring an bardment of mass media, they must think ever-increasing amount of literacy. Lack of clearly and discriminately about those things one-half million. ability to read makes the illiterate a menace and people. They· cannot think clearly and As further explanation and justifica­ to himself and his fellows in industry and independently unless they can participate tion' for my concern about this problem· prevents the agricultural worker from ben­ effectively in the arts and skills of commu­ of illiteracy, I wish permission to insert eft. ting fully from the services of Government nication which is functional literacy. in the ·RECORD an article which I wrote bulletins, county agents, and other sources The extent to which the individual is the of helpfulness. The products · of industry cornerstone of our democracy to that extent for the March 1952 issue of School Life, and farm are second only to manpower in our it is necessary that there be a high rate of the official organ of the United States defense efforts. Anything, therefore, which literacy among all groups of our population, Office of Education, and a brief analysis impedes their :How, as does illiteracy, is an because, as I have often said, "talk about of the 1950 census data by Dr. Ambrose enemy within our ranks. It retards eco­ democracy and our way of life is largely un­ Caliver, Assistant to the United States ·nomic growth and development and should intelligible to illiterates." be stopped without delay. The 1950 census data on illiteracy are not Commissioner of Education. Normally, when our economic establish- . yet available. But according to the 1940 The VICE PRESIDENT. -The bill will ment should be geared to the scientific and data, and the estimates of the Census Bureau be received and appropriately referred, technological progress of our times, illiter­ in 1947, the problem is extensive and wide­ and, without objection, the article and acy is as much of a deterrent as in times of spread. As I pointed out in my speech in analysis will be printed in the· RECORD. emergency. It is well known that industrial the Senate on June 3, 1948, "the men and wages and farm income of individuals, com- women in the United States who are now in The Chair hears no objection. . munities, and States rise in proportion to the the darkness of functional illiteracy are not The bill

Years of school completed by persons aged 25 years or over, by residence (urban, rural) and color, 1950 and 194-0 t

R esidence Color Grand total Years of school completed Urban Rural nonfarm Rural farm White Nonwhite

1950 1940 1950 1910 1950 1940 1950 1940 1950 1940 1950 1940 ------Total persons (aged 25 or over) ______87,675,000 74,775,836 58,836,000 45,229,242 16,920,000 14,753,758 11,919,000 14,792,836 79,766,000 67,999,523 7, 909,000 6, 776,313 ------No school years completed: Number ___ • _____ ------. ____ .------2, 299,000 2, 799,923 1, 816,000 1, 606, 2.'39 256,000 500,352 227,000 693,332 1, 992,000 2, 099,995 307,000 699,928 Percent ______-- _____ -_~_-- ______2.6 3. 7 3.1 3.6 1. 5 3.4 1.9 4. 7 2. 5 3.1 3. 9 10.3 Less than 5 years of school completed: Number __ • ______• ______.------_ 9, 630,000 10,104,612 5, 843,000 5, 078,203 1, 952,000 2, 012,335 1, 835,000 3, 014,074 7,312, 000 7, 322, 114 2, 318,000 2, 782, 498 Percent ______- ____ ------_ 11.0 13.5 9.9 11.2 11.5 13.6 15.4 20.4 9.2 10. 8 29.3 41.1 1 to 4 years of school completed: Number. · .------~------7, 331,000 . 7,304, 689 4, 027,000 3, 471,964 1, 696,000 1, 511, 983 1, 608,000 2, 320,742 5, 320,000 5, 222,119 2, 011,000 2, 082,570 Percent.------.----__ ------8.4 9.8 6.8 7. 7 10.0 10.2 13.5 15.7 6. 7 7. 7 25.4 30.7 ------Median school years completed ______9.3 8.4 10.0 8. 7 ·s. 9 8.4 8. 4 7. 7 9. 7 8.6 7.0 5. 7

1 Source: U.S. Department of Commerce, Bureau of the Census, 1950 Census of Population; preliminary report, May 3, 1952, series PC-7, No.6. PRINTING OF INAUGURAL ADDRESS The motion was agreed to; and