1953 CONGRESSIONAL RECORD- SENATE 713 • LEGISLATIVE SESSION publican Club of New Jersey; the Acad .. ADJOURNMENT TO MONDAY 'i Mr. SALTONSTALL. Mr. President, emy of Natural Science, in Philadelphia; Mr. SALTONSTALL. Mr. President, I now move that the Senate resume the the Pennsylvania Horticultural Society; I move that the Senate adjourn until consideration of legislative business. and the Chester County (Pennsylvania) 12 o'clock noon on Monday next. The motion was agreed to; and the Historical Society. The motion was agreed to; and (at 5 Senate resumed the consideration of leg Mr. President, save only our distin o'clock and 43 minutes p.m.> the Senate islative business. guished colleague, the senior Senator adjourned until Monday, February 2. Mr. SALTONSTALL. Mr. President, from Maine n\irs. SMITH], I know of no 1953, at 12 o'clock meridian. I am about to move that the Senate ad woman in public life who has served her journ; but before doing so, I yield to the party with the ·same devotion and loyalty Senator from ·New Jersey. . as has Mayme Cresse, unless it might be CONFIRMATIONS the .vives of those who have made pos Executive nominations confirmed by_ sible our success as United States Sena-. the Senate January 30, 1953: .. i.... """ ,..u MAYME R. L. CRESSE tors and Representatives in Congress. UNITED NATIONS .. _...!, Mr. HENDRICKSON. Mr. President, Mr. President, I regret that my duties Mrs. Oswald B. Lord, of New York, to be the granting of the franchise to the as a member of the Armed Services Com the representative of the United States of women of America-giving them the mittee at a very important hour of the America on the Human Rights Commission · right to vote-was one of the great Nation's history made it impossible for of the Economic and Social Council of the me to attend the last rites of this great United Nations, for the remainder of the advancements in our free way of life. term of 3 years expiring December 31, 1953. 1 I shall ever remember that event which lady. occurred when I was a very young mem Mayme Cresse helped give this Nation DEPARTMENT OF STATE ber of the district board of elections in the kind of representation it will ever Herman Phleger, of California, to be Legal Adviser, Department of State. my own district. At that tim~ I had just so desperately need. returned from World War I. I bow my head as I pay her memory DEPARTMENT OF DEFENSE Among the women in my State who the respect which her services to her Roger M. Kyes, of Michigan, to be Deputy · fought valiantly for the cause of equal community, State, and Nation so justly Secretary of Defense. suffrage was a great lady from a neigh deserve. DEPARTMENT OF 'JUSTICE boring community, a community of my H . Brian Holland, of Massachusetts, to be own county. Her name will ever be hal PRAGUE NEWS LETTERS an Assistant Attorney General. . Warren Olney III, of California, to be As· lowed in Gloucester County history. sistant Attorney General. I refer, Mr. President, to the Honorable Mr . . SALTONSTALL. Mr. President, Mayme R. L. Cresse. the senior Senator from Nebraska [Mr. DEPARTMENT OF COMMERCE On Tuesday of this week she passed BuTLER] found it necessary to leave dur Stephen F. Dun!]., of Michigan, to be gen• into the Great Beyond. Her passing is a ing the debate on another matter. He eral counsel, Department of Commerce. great loss to the county, to our State, gave me the following statement, which I desire to read into the RECORD at this ...... and to the Nation to which her· heart and soul were ever devoted. point: Sometimes, Mr. President, we are Ever so often our faith in our free insti SENATE given to long memorial tributes to men tutions is reemphasized by some meaningful incident. A few days ago I received a letter MoNDAY, FEBRUARY 2, 1953 and women whose ·names are known from Mr. Harold Hutcheson, superintend throughout the world, and on such occa ent of schools, Atkinson, Nebr., giving me The Chaplain, Rev. Frederick Brown s.ions I often wonder whether we over .. his views regarding a so-called news letter Harris, D. ·D., offered the following look the more humble souls who serve which is apparently being mailed to many prayer: .. a without reward to keep our country of our schools by one of the satellite em strong and virile here at home. bassies of the Communist empire. Mr. Almighty God, our ~ather, lead us who Mayme Cresse was one of these many Hutcheson's highly commendable reaction to seek Thy face, to still waters and green unsung heroes. She was a good wife, a this propaganda technique demonstrates pastures where, in some quiet shrine of again the stability of our educational insti the spirit, we may be reassured of those good mother, a good citizen. I use the tutions in America. I am certain his letter word "good" because the word "great" will be of interest to all Members of this values which are excellent and perril,a is so much overused in such circum body. Therefore, I request that the letter nent, and which assert their sovereignty stances. But Mayme Cresse was truly a be printed at this point in the RECORD. in all life's changing scenes. great citizen of our Republic. As we bow at this altar of prayer, with Mrs. Cresse was the wife of a diJtin For Mr. BuTLER of Nebraska and in his poignant sympathy we lift our suppli .. guished banker of New Jersey, Wads name, I ask unanimous consent that the cations for those who are in great lam worth Cresse. Her only son, Wadsworth letter of Harold Hutcheson be printed in entation today because of the devasta .. Cres~e. Jr., was a distinguished soldier the RECORD at this point. tions of tempest and of sea in the terri of world War II, and now is practicing The PRESIDING OFFICER. Is there fying catastrophe· which has swept the law in the city of Woodbury, N.J., where objection? shores of ancient lands, our partners in I live. There being no objection, the letter the free world. While today with the This great lady of New Jersey began was ordered to be printed in the RECORD, Nation's Chief Executive we come to a her long political career as an active as follows: place in these solemn times when the suffragist, serving as Gloucester County ATKINSON PUBLIC SCHOOLS, state of the Union is examined, may we chairman and a member of the State Atki nson, Nebr., January 20, 1953. carefully examine the state of our own board at that time. The 'Honorable HUGH BUTLER, hearts, our ideals, our motives, our rul When women's suffrage became law in United States Senate, New Jersey, she was appointed a mem Washington, D. C. ing passions, knowing that out of men's ber of the Republican State committee, Sm: I received six Prague News Letters hearts are the issues of life. And so, a post which ·she has held continuously from t~e Czechoslovakian Embassy addressed near the forum with its clash and din of to the Superintendent of Schools, Atkinson, human interest, may we ever raise an since 1920. Nebr. Mrs. Cresse was an alternate-at-large These papers are filled with the Communist altar where a constant sense of the to the Republican National Convention propaganda line and full of vilification of eternal may save us from spiritual de in Kansas City in 1928. the United States. cay, from moral cowardice, and from any Mrs. Cresse was also one of the organ.. The manner of addressing the package betrayal of the highest public good. We izers of, and for 7 years served as presi leads me to believe that similar papers have ask it in the dear Redeemer's name. dent of, the Gloucester County Health been mailed to most of the schools in the United States. Amen. Association. · I don't believe this type of propaganda can She was also a past president of the have any effect upon the superintendents THE JOURNAL Gloucester County Women's Republican of schools of the United States but the at Club, the Woman's Club of Woodbury, tempt to do so irks me. On request of Mr. TAFT, and by unani and the Woodbury Rotary Anns. yery truly yours, mous consent, the reading of ·the Jour.. She was a memb,er of the National HAROLD HUTCHESON, nal of the proceedings of Friday, Jan.. Repu~lican CluQ; the State w;omen'sRe .. Superi1!t7Jdent oj Schools. uar~ 30, 1953. was dispensed with. ,: . . . . ''·.' ... ._.. .• .. ' 714: CONGRESSIONAL RECORD-- SENATE February 2 • COMMITTEE MEETINGS DURING sonnel in the Armed Forces, and for other "Whereas the State of Idaho produces bet SENATE SESSION purposes (with accompanying papers); to the ter than 750,000 pounds of trout annually Committee on Armed Services. tor food; and On request of Mr. TAFT, and by unani REPORT OF ADMINISTRATOR OF GENERAL "Whereas the production of trout for com mous consent, the . Committee on Gov SERVICES mercial purposes is one of the main indus· tries in Idaho; and • ernment Operations was authorized to A letter from the Administrator, General meet this afternoon during the session Services Administration, transmitting, pur "Whereas the trout produced in Idaho is of the Senate. of superior quality; and suant to law, his report for the fiscal year "Whereas Idaho trout men, licensed in the On request of Mr. WILEY, and by ended June 30, 1952 (with an accompanying State of Idaho, in cooperation with trout unanimous consent, the Committee on report); to the 'committee on Government Operations. men from a.dJoining States, have gone to Foreign Relations was authorized to hold considerable expense in order to advertise a hearing this afternoon during theses STATEMENT OF BUSINFSS OF WASHINGTON GAS their product; and sion of the Senate. LIGHT Co. "Whereas foreign nations can and do im • A letter from the president, Washington port trout of an inferior quality at greatly On request of Mr. SALTONSTALL, .and Gas Light Co., transmitting, pursuant to law, reduced prices; and ·by unanimous consent, the Committee a statement of the busin.ess of that com . "Whereas foreign trout are being sold as on Agriculture and Forestry and the· pany, together with a list of stockholders, Idaho trout, or Rocky Mountain trout: Now, Committee on Armed· Services were au for the year endeQ December 31, 1952 (with therefore, be it thorized to sit this afternoon during the accompanying papers); to the Committee on "Resolved by the House of Representatives the District of Columbia. _. of the thirty-second session of the Legisla· session of the Senate. ture in the State of Idaho (the Senate con REPORT OF CAPITAL TRANSIT Co. curring), That we hereby urge upon the A letter from the president, Capital Transit Congress of the United States to pass an · EXECUTIVE COMMUNICATIONS. Co., Washington; D. C., transmi-tting, pur act requiring that all imported trout sold ETC. suant to law, a report of that company for in the United States be labeled as to its the calendar year 1952 (with an accompany origin and the date of processing and that The VICE PRESIDENT laid before the ing report); to the Committee on the Dis a fine be imposed upon any wholesale or Senate the following letters, which were trict of Columbia. retail handler removing said label; be it fur referred as indic_ated: REPORT OF POTOMAC ELECTRIC POWER Co. ther REQUIREMENT oF MERCHANT SEAMEN To A letter from the president, Potomac Elec "Resolved, That the Secretary of State of . UNDERSTAND ORDERS GIVEN IN ENGLISH trl!:! Power Co., Washington, D. C., trans the State of Idaho, be and he is hereby au '. LANGUAGE mitting, pursuant to law, a report o.f that thorized and directed, to send copies of this · A letter from the Acting Secretary of the company, for the year endEd December 31, joint memorial to the ·President of the Treasury, transmitting a draft of proposed 1952 (with an accompanying report); to the United States and to the Senate and House legislation to require that merchant seamen Committee on the District of Columbia. of Representatives of the United States" be able to understand orders given in the A joint resolution of. the Legislature of the English language, and for other purposes State of California; to the Committee on (with accompanying papers); to the Com PETITIONS AND MEMORIALS · Interstate and Foreign Commerce: mittee on Interstate and FQreign Comm£·rce. Petitions, etc., were laid before the "Assembly Joint Resolution 5 REPORT ON SYNTHETIC LIQUID FUELS Senate, or presented, and referred as "Joint resolution relative to the use of the A letter from the Assistant Secretary of indicated: word ·'California' on labels of garments the Interior, transmitting, pursuant to law, ma~ufactured by ou.t-of-State garment a report of the Secretary of the. Interior on By the VICE PRESIDENT: manufacturers · · A resolution of the Legislature of the State synthetic liquid fuels, for the calendar year · "Whereas for several years the apparel in 1952, together with parts I · and II, entitled of Nebraska; to the Committee on Inter- ' state and Foreign Commerce: . dustry in California has been concerned over "Oil From Coal" and "Oil From Oil Shale," injuries to it suffered as a result of the respectively (with accompanying papers); to "Whereas vesicular exanthema, hog chol era, trichinosis, and other diseases of swine practice by some out-of-State firms of label the Committee on Interior and Insular ing their apparel in such manner as to lead Affairs. are, or may be, transmitted by the feeding of raw garbage; and the public to assume that such goods are TRANSFER OF RIGHT, TITLE, AND INTEREST OF "Whereas these diseases cause heavy losses manufactured in California; and THE UNITED STATES IN A CERTAIN INVENTION to the swine industry of the Nation;· and "Whereas by the use by out-of-State firms : TO FREDERICK W. LEE "Whereas Nebraska and some of lier sister of the word 'California,' or other similar de 4 letter from the Under Secretary Of the States have enacted laws designed to pre vices, such firms are attempting to capi Interior, transmitting a draft of proposed vent the spread of these diseases by prohib talize on the sales value of said word in con legislation to authorize the Secretary of the iting the feeding of raw garbage, but other nection with the apparel industry, which Interior to transfer to Frederick W. Lee the States have not done so; and word the public has learned to associate right, title, and interest of the United States "Whereas a part of the problem is inter with superior styling of certain apparel in and to a certain invention (with an ac state in character, hence not amenable to manufactured in California: and companying paper); to the Committee un effective control by the States: Now, there "Whereas such practice has been suffi the Judiciary. fore, be it ciently widespread to be of a major con cern to the apparel industry of California REPORT OF BUREAU OF PUBLIC ROAD.3 "Resolved by the members of the Nebraska Legislature in six t y-fifth sessi on assemlrled: and is injurious to other California indus A letter from the Secretary of Commerce, "1. That the Congress of the United States tries which use the name 'California' on transmitting, pursuant to law, a report of the be urged to enact legislation forbidding the their labels; and Bureau of Public Roads, for the fiscal year shipment of raw garbage across State lines "Whereas under the Federal law (15 U. S. · ended June 30, 1952 (with accompanying for feeding purposes. C. A., sec. 1125) any person who affixes or papers); to the Committee on Public Works. "2. That the Congress of the Un.ited States uses in connection with any goods or serv REPORT OF INTERSTATE COMMERCE COMMISSION be further urged to enact legislation for ices a false designation of origin and with bidding the shipment of swine across State knowledge of such falsity causes or procures · A letter from the Chairman, Interstate the same to be transported or used in com- . Commerce Commission, transmitting, pur lines if such swine have been fed on raw garbage. me.rce is liable to a civil action by any per suant to law, the sixty-sixth annual report · son doing business in the locality falsely of that Commission, dated November 1, 1952 "3. That copies of this resolution be trans mitted by the clerk of the legislature to the indicated as that of origin or by any per (with an accompanying report); to the Com son who believes that he is or is likely to mittee on Interstate and Foreign Commerce. Vice President of the United States as Pres ident of the Senate of the United States, to be damaged by . the use of such false de REPORT ON FINAL VALUATIONS OF PROPERTIES the Speaker of the House of Representatives scription or representation; and OF CERTAIN INTERSTATE CARRIERS of the United States, and to each Member "Whereas lawsuits instituted for the pur- . A letter from the Chairman, Interstate from Nebraska in the Senate of the United pose of enjoining such activities and for the Commerce Com'Illission, transmitting, pur States and in the House of Representatives collection of damages suffered thereby are suant to law, copies of the final valuations of of the United States." costly, lengthy, and in many cases unsuc properties of certain carriers (with accom cessful due to the difficulty of proof required; panying papers); to the Committee on Inter A joint resolution of the Legislature of and state and Foreign Commerce. the State of Idaho; to the Committee on "Whereas the Federal. Trade Commission Interstate and Foreign Commerce: has in some instances, under its power to INFORMATION AND CIVILIAN EDUCATION FOR "To the honorable Senate nnd House of Rep prohibit unfair methods of competition, in PERSONNEL OF ARMED FORCES resentatives of th~ United States in vestigated such activities; and A letter from the general counsel, Office Congress assembled: · "Whereas it is felt by the Legislature of Of Assistant Secretary of Defense, Washing ''We, your memorialists, the Legislature of the State of California that this is the most ton, D. C., transmitting a draft of proposed the State of Idaho, as assembled in its thirty proper .and efficient method of controlling legislation to authorize the furnishing ot second session, do r·espectfully represent such unfair activities and that the Federal information and civilian education for per- that- Trade Commission should, with renewed ' 1953 CONGRESSIONAL RECORD..;...- .SENATE- 715 vigor, continue its .patrol of such offenses bower, Hon. George.D. Aiken, Hon. Ralph E. AMERICAN HISTORY MONTH - IN an d in proper cases issue cease-and-desist Flanders, and Hon. Winston L. Prouty. orders: Now, therefore, be it "CONSUELO N. BAILEY, K~NTUCKY-PROCLAMATION BY "Resolved by the :Assembly and Senate •'Speaker of the House of Representatives. THE GOVERNOR OF KENTUCKY of the State of California (jointly), That the "JOSEPH B. JOHNSON, Mr. CLEMENTS. Mr. President, I Federal "I:rade Commission be respectfully "'President of the Senate. have just received from Mrs. W. H. Noel, requested to henceforth investigate all in "Approved January 27, 1953. stances of the use of the word 'California' "LEE E. EMERSON, of Harlan, Ky., State chairman of the on labels by firms in the apparel industry "Governor." Americanism committee of the Kentucky other than those who actually manufacture By ~r. MUNDT: Society, Daughters of the American such apparel in California and, in the proper A concurrent resolution of the Legislature Revolution, a copy of a proclamation . cases, issue ·cease-and-desist orders; and be of the State of South Dakota; to the Com issued by the Honorable Lawrence W; it further mittee on Agriculture· and Forestry: Wetherby, Governor of the Common "Resolved, That the chief clerk of the "Senate Concurrent Resolution 3 wealth of Kentucky, on January 9, 1953, assembly be directed to transmit copies of "Concurrent resolution memorializing the designating the month of February 1953 this resolution to the President and Vice Congress of the United States; His Excel as American History Month in Kentucky. President of the United States, to the Chair lency, the President of the United States; man of the Federal Trade Commission, and It is my understanding that this procla to ta~e action regarding the land to be mation was issued at the request of the to each Senator and Representative in the inundat ed by the Missouri River develop Congress of the Unitetl States from Cali ment, the appraisal of said land, the peo Kentucky Society, Daughters of the fornia." ple dispossessed and other pertinent mat- American Revolution, and certainly in A resolution adopted by the Cuyahoga. ters in relation thereto view of the need at all times, particu County Bar Association, Cleveland, Ohio, "Be it resolved by the Senate of the State larly in these days of international strife f avoring the enactment of legislation pro- of South Dakota (the House concurring and oppression, to keep alive the great viding two additional Federal judgeships therein): principles and goals emphasized in the for the northern district of Ohio; to the "Whereas the Missouri River development pages of our glorious American history, Committee on the Judiciary. program will permanently inundate thou- I am indeed glati to send this proclama A concurrent resolution of the Legisla- sands of acres of hay meadow, pasture, tim ture of the State of iowa, relating to the ber, and farm land; and tion to the desk and ask unanimous con elimination of the Federal gasoline tax and "Whereas many farm families of long es sent that it be printed in the RECORD leaving that area of taxation entirely to the tablished residence will be dispossessed; and and be thereafter appropriately referred. States; to the Committee on Finance. "Whereas many other farm acreages will be There being no objection, the procla (See concurrent resolution of the Legisla- reduced so greatly that their operation would mation was referred to the Committee ture of the state of Iowa printed in full not be economically- sound; and on the Judiciary, and ordered to be when presented by Mr: HICKENLOOPER on "Whereas the land involved in this devel printed in the RECORD, as follows: January 30, 1953, p . 674, CoNGRES.3IONAL opment program is adapted to livestock rais- RECORD.) ing; and To All to Whom These Presents Shall Come: By Mr. AIKEN: "Whereas livestock raising requires pro- Whereas the strength of our Nation de• A joint resolution of the Legislature of grams extending over a long term of years pends upon the great principles of life,· the State of Vermont; ordered to lie on the to provide sufficient feed and equipment for liberty, and the pursuit of happiness for all table: this type of agriculture; and people; and · "Whereas the administration of Dwight "Whereas the families affected are re- Whereas such goals can only be achieved D. Eisenhower is about to embark on a most quired to dispose of their property on a closed if the youth of our Nation is educated and perilous journey, and the way ahead is beset or forced market and are required to secure indoctrinated in these principles; and with soul-testing 'trials that might cause replacements on an open market at a time Whereas such education is now imperative others to question the course to be taken by· when it is recognized that ·farm lands are because of the growing force of communism our leader: .Now, therefore, be it ·selling at· inflated values: Now, therefore, with its oppression of small nations which "Resolved by the senate and house of be it look to us for help and inspiration; representatives: That we _go on record as "Resolved, That the Senate of the thirty Now, therefore, I, Lawrence W. Wetherby, endorsing the hopes and visions . of our third session of the South Dakota Legisla Governor of the Oommonwealth of Kentucky, President, Dwight D. Eisenhower, who, on ture, the House of Representatives concur do hereby proclaim t}le month of February January 20, 1953, became our thirty;-Iourth ring therein, do memorialize the Congress of 1953 as Americ~n History Month in Ken President; and the United States to require that in all tucky and urge · all homes, schools, colleges, "That we express .our confidence in his land appraisals that these facts, including and universities, and the people of Ken leadership and join with him in pledging the good will of the people involved, be con tucky generally to especially emphasize our lives and fortunes in the fight against sldered and that the appraised value of the American history during the month and to totalitarian powers who are seeking to land be known by both parties making the impart knowledge of the pledge of allegiance destroy our democratic form of govern- transaction; and be it further to the flag, the Declaration of Independence. ment; and "Resolved, That the requirement that the and the Constitution of the United States. "That we express to him and his admin- money received from the sale of dispossessed Done at Frankfort, Ky., this the 9th day tstratron our confidence in his expressed land be reinvested in land within 1 year or of January in the year of our Lord, 1953, requiring the payment of income tax be desire to bring light to the people in the extended so that parties involved will not and in the yea:r bf the Commonwealth, the ,world who are in darkness; and be required to purchase land during the one hundred and sixty-first. ''That we want him to know his hopes are period of inflated values; be it further LAWRENCE W. WETHERBY, our hopes and we pledge to him and his "Resolved, That copies of this concurrent · Governor• . administration all that is ours in his eff.ort resolution be forwarded to His Excellency, the CHARLES K. O'CONNELL, . 'to build and unify the strength of the free President of the United States, to the Secre Secretary of State. peoples of the world for peace'; and · tary of Agriculture of the United States, to SUSAN B. RUTHERFORD, "That we are ready to make 'whatever the chairmen of the Committees on Agricul .. Assistant• . sacrifices may be required to us' to accom- ture of both Houses of Congress, to United plish this purpose; and States Senator FRANCis CASE, to United States "That we pray his hopes' and visions for Senator KARL MUNDT, to Congressman E. Y. RESOLUTIONS OF WISCONSIN SWISS all mankind will receive the support of all BERRY, to Congressman HAROLD o. LovRE, AND LIMBURGER CHEESE PRO free thinking people; and · and to the Presiding Officers of both Houses "That by the wisdom of his policies, with of Congress. Dl!CERS' ASSOCIATION, M;ONROE, the aid of the American people, we pray that "REX TERRY, WIS. t i his course shall be guided toward peace, "Lieutenant Governor. progress and prosperity at home and abroad "NIELS P. JENSEN, Mr. WILEY. Mr. President, I was and that by his actions he shall keep and •'Secretary of the Senate. glad to receive from Al Stoldt, president maintain the highest and truest traditions "HOBART H. GATES, of the Wisconsin Swiss and Limburger in our Government that will give to the "'Speaker of the House. Cheese Producers' Association, a series of world a true picture of our country; and "W, J. MATSON; three resolutions which had been adopt "That we extend to him and his aides out "Chief Clerk." ed by that fine organization at its four· heartfelt wishes for good health and a long life with abundant happiness for all; and The VICE PRESIDENT also laid be- . teenth annual meeting. I ask unani " That his uttered prayer, is our prayer; . fore the Senate a concurrent resolution· mous consent that the resolutions be and be it further · of the Legislature of the State of South printed in the RECORD, and be thereafter "Resolved, That the Secretary of·State be Dakota, identical with the foregoing, appropriately referred. ' 1· directed to forward a certified copy of these which was referred to the Committee on 'l'here being no objection, the resolu resolutions to President Dwight D. Eisen- Agriculture and Forestry. tions were referred to the Committee on ~16 CONGRESSIONAL RECORD- SENATE February 2 Banking and Currency, and ordered to By Mr. KENNEDY: shall consist of five members not more be printed in the RECORD, as follows: S. 737. A bill for the re_llef of Elias Mil- than three of whom shall be from the tiades Iordanopoulos; · , same political party. I ask unanimous RESOLUTIONS ADOPTED AT THE FOURTEENTH S. 738. A bill for the relief of Maria Busa; ANNUAL MEETING, WISCONSIN SWISS AND S. 739. A bill for the relief of Guntram consent that a very brief statement pre-· LIMBURGER CHEESE PRODUCERS' AsSOCIA• V/eissenberger; pared by me in explanation of the bill ~ TION, MONROE, WIS. · S. 740. A bill for the relief of Santa Muci be printed in the RECORD. PRICE EQUALIZATION accia (Sister Maria Fridiana) , Teresa Sara The VICE PRESIDENT. The bill will . ,. Resolved, That the Wisconsin Swiss and gaglia (Sister Maria Eutropia), and Caterina be received and appropriately referred; Limburger Cheese Producers' Association Isonni (Sister Maria Giovita); and, without objection, the statement recommend to Federal and St ate lawmakers S. 741. A bill for the relief of Henryk S. will be printed in the RECORD. that they keep in mind the necessity of uni Ryniewicz-Wisniewski; formity of the prices of farm products and S. 742. A bill for the relief of Manuel Se The bill
720 CONGRESSIONAL RECORD ~- SENATE February 2 .and fix the penalties thereof. . The Admlnis• fluencing in any way the action of the Ad .plants of si'nall-business concerns for such tration, with the consent of any board, com ministration, or for the purpose_of obtaining ,production; mission, independent establishment, or exec money, property, or anything of value, under (5) to determine within any industry the utive department of the Government, may this section, shall be punished by a fine of concer:p.s, firms, persons, corporations, part avail itself of the use of information, -serv not more than $5,000 or by imprisonment nerships, cooperatives, or other business en ices, facilities, including any field service for not more than 2 years, or both. terprises, which are to be designated "small thereof, officers, and- employees thereof in (2) Whoever, being connected in any ca,.. business concerns" for the purpose of effec carrying out the provisions of this _section. pacity with the Administration (A) em .tuating the provision of this section; ( 5) All moneys of the Administration not bezzles, abstracts, purloins, or willfully mis (6) to certify to Government procurement otherwise employed may be deposited with ·applies any moneys, funds, securities, ·or officers with respect to the competency, as to the Treasurer of the United St ates subject to other things of value, whether belonging to capacity and credit, of any small-business check by authority of the Administration or ·it or pledged or otherwise entrusted to it, or concern or group of such concerns to per in any Federal Reserve bank. The Federal (B) with intent to defraud the Administra form - a specific Government procurement Reserve banks are authorized and directed tion or any other body politic or corporate, contract; to act as depositaries, custodians, and fiscal _or any individual, or to deceive any officer, (7) to obtain from any Federal depart ·agents for the Administration in the gen auditor, or examiner ·of the Administration ment, establishment, or agency, engaged in eral performance of its powers conferred by ·makes any false entry in· r.ny book, report, defense procurel!lent or in the financing of this act. All insured banks, when designated . or statement of or to the Administration, defense procurement or production such re -by the Secretary of the Treasury, s-haH -or, without being duly authorized, draws any ports concerning the letting of con tracts and act as custodians, and financial agents for order or issues, puts forth, or assigns any subcontracts and making of loans to business the Administration. note, debenture, bond, or other obligation, concerns as itmay deem pertinent in carry (b) (1) Without regard to any other pro -or draft, bill of exchange, mortgage, judg- ing out its functions under this act; vision of law except - the regulations pre -ment, or decree thereof, or (C) with intent (8) to obtain from suppliers of materials scribed under section 201 of the First War to defraud participates, shares, receives di information pertaining to · the' method of Powers Act, 1941, as amended, the Adminis- rectly or indirectly any money, profit, prop filling orders and the bases for allocating tration is empowered~ . erty, or benefit through any tr·ansaction, their supply, whenever it appears that any (A) to recommend to the Reconstruction loan, commission, contract, or any other act small business is unable to obtain materials F inance Corporation loans or advances, on of the Administration, oP- (D) gives any U!l-- for defense or essential civilian production such terms and conditions and with such . authorized information concerning any fu from its normal sources; maturity as the Reconstruction Finance ture action or plan of the Administration - (9) to make studies and-recommendations Corporation may determine on its own dis- which might affect the value of securities, to the appropriate Federal agencies to insure .cretion, to enable small-business concerns to or, having such knowledge, invests or specu a fair and equitable share of materials, sup finance plant construction, conyersion, or lates, 'directly or indirectly, in the securities plies, and equipment to small-business con expansion, including the acquisition of land; or property of any . company or corporation cerns to effect uate the defense program of or to finance the acquisition of equipment, receiving loans or other assistance from the for essential civilian purposes; facilities, machinery, supplies, or materials; Administration shall be punished by a fine (10) to consult and cooperate with all · or to finance research, development, and - of. not .more than $10,000 or by imprisonment .Government agencies for the purpose of in · experimental work on new or improved prod for not more than 5 years, or both. suring that small-business concerns shall re ucts or processes; or to supply such ·concerns (d) (1) It shall be· the duty of the Ad ceive fair and reasonable treatment from said with capit al to be used in the manufacture of ministration and it is hereby empowered, to agencies; and articles, equipment, supplies, or materials coordinate and to ascertain the means by ( 11) to establish such advisory boards and for defense or essential civilian purposes; or which the productive capacity of small committees wholly representative of small · to establish and operate technical labora business concerns can be most effectively "~:?usiness as may be found necessary to tories-to serve small-business concerns; su ::: h utilized for national defense and essential . achieve the purposes of this section. loans or advances to be made or effected civilian production. (f) (1) In any case in which a small · either directly by the Reconstruction Finance (2) It shall be the duty of the Adminis- business concern or group of such concerns - Corporation or in cooperation with banks or . tration and it is hereby empowered, to con -has been certified ·by or under the authority other lending institut ions thiough agree sult and cboperate with appropriate govern~ of the ·Administration to be a competent ments to participate in insurance of loans, mental agencies in the issuance of all orders Government contractor with respect to ca or· by the purchas«:l of participations. or limiting or expanding production by, or i!l pacity and credit as to a specific Government otherwise; - the formulation of policy in .granting priori procurement contract, the officers of the Gov (B) to enter into contracts with the United ties to, business concerns. All such govern ernment having procurement powers are di States Government· and · any department, - mental agencies are required, before issuing rected to accept such certifications as con- . agency, or officer thereof having procurement . such orders or announcing such priority . elusive, and are authorized to let such Gov powers obligating the Administration to fur policies, to consult with the Administration ernment procurement contract to such con . nish-articles, equipment, supplies, or mate in order that small-business concerns will be .cern or group of concerns without requiring rials to the Government; ~ost effectively utilized in the production it to meet any other requirement with re (C) to arrange for the perfdrmance of of articles, equipment, supplies, and mate spect to capacity and credit. such contracts by letting subcontracts to rials for national defense and essential (2) The Congress has as its policy that a small-business concerns· or others for the . civilian purposes. fair proportion of the total purchases and manufacture, supply, or assembly of such (e) The Administration -shall have power, contracts for supplies and services for the articles, equipment, supplies, or materials, and it is hereby directed, whenever it de Government shall be placed with small . or parts thereof, or servicing or processing termines such action is necessary- business concerns. To effectuate such pol- in connection therewith, or such manage (1) to make a complete inventory of all . icy, small business concerns within the ment services as may be necessary to enable productive facilities· of. small-business con . meaning of this section shall receive any the Administration to pert:orm such con- cerns which can be- used for defense and es . a ward or _con tract or any part thereof as to . tracts; and sential civilian production or to arrange for which it is determined by the Administra (D) to provide technical and managerial such inventory to be made by any other tion and the contracting procurement agen aids to. small-business concerns, by main governmental agency which has the facili cies (A) to be in the interest of mobilizin g taining a clearinghouse for technical infor ties. In making any such inventory, the ap-_ the Nation's full productive capacity, or ·(B) mation, by cooperating with other Govern propriate agencies in the ·several States shall to be in the interest of the national defense ment agencies, by disseminating information, be requested to furnish an inventory of the · program, to make such award or let such and by such other activities as are deemed productive facilities of small-business con contract to a small-business concern. appropriate by the Administration. cerns in each respective State if such an in (3) Whenever materials or supplies are al . (2) In any case in which the Administra ventory is available or in prospect; -located by law, a fair and equitable per tion certifies to any officer of the Govern (2) to consult and cooperate with officers . centage thereof shall be allocated to small . ment having procurement powers that the of the Government having procurement plants unable to obtain the necessary ma . Administration is competent to perform any powers, in order to utilize the potential pro -terials or supplies from usual sources. Such specific Government procurement contract d;uctive capacity of plants operated by small- percentage shall be determined by the head · to be let by any such officers, such officer shall . business concerns; . of the lawful allocating authority .after giv be authorized to let such procurement con (3) to obtain information as to methods ing full consideration to the claims pre tract to the Administration upon such terms and practices which Government prime con sented by the Administration. and conditions as may be agreed upon be- tractors utilize in letting :;ubcontracts and (g) The Administration shall make. a re . tween the Administration and the procure to take action to encourage the letting of port every 90 days of operations .under this ment officer. subcontracts by prime contractors to small title to the President, the President of the (c) (1) Whoever makes any statement business concerns at prices and on conditions Senate, and the Speaker or· the Hotl.se of knowing it· to be false, or whoever willfully and terms which are fair and equitable; Representatives. Such report· shall include .overvalues any security, for the purpose of _ (4) to take such action, authorized under . the names of the business concerns to whom obtaining for himself or for any applicant this section, as is necessary to provide small contracts are let, and for whom financing is any loan, or extension thereof by renewal, business concerns with an adequate incen arranged, by the Administration, together. deferment of action, or otherwise, or the tive, excluding subf:!idies, to engage in de .· with the amounts involved, and such report acceptance, release, or substitution of s-e fense and essential civilian production and shall include such other information, and curity therefor, or for the purpose of in- to facilitate the conversion and equipping o! such comments and recommendations, with 1953 CONGRESSIONAL RECORD- SENATE 721 respect to the relation of small-business con representative may exercise any or all of his salaries,· and other compensation; to consult cerns to the defense effort, as the Adminis powers in ·any place. The President is au with advisory committees with respect to tration may deem appropriate. thorized to transfer to the Office of Price price trends and the improvement of pricing (h) The Administration is hereby empow Stabilization any of the powers relating to techniques which may be employed in fu ered to make studies of the effect of price, allocations and rationing conferred by law ture regulations; to draft for possible future credit, and other controls imposed under the upon any other department or ag~ncy with use new and simplified regulations incor defense program and whenever it finds that respect to any particular material or porating improved techniques suggested by these controls discriminate against or im materials. such committees and prior experience in the pose undue hardship upon small business, to (c) (1) The Wage Stabilization Board shall administration of controls; to conduct such make recommendations to the appropriate be composed of 15 members representative protest and review proceedings as may be ap Federal agency for the a~justment of con of the general public, labor, and business and propriate under sections 407 and 408 of the trols to the needs of &mall business. industry. The principal office of the Board Defense Production Act of 1950, as amended; (i) The Reconstruction Finance Corpora shall be in the District of Columbia, but the to complete promptly investigations of vio tion is authorized to make loans and ad functions of the Board may be performed by lations of regulations or orders relating to vances upon the recommendation of the duly authorized regional boards. prices or to wages; salaries and other com Small Defense Plants Adminjstration as pro (2) The members of the Board shall be pensation arising under the Defense Produc vided in (b) ( 1) (A) of this section not to appointed·by the President, by and with the tion Act of 1950, as amended; to assist the exceed an aggregate of $100,000,000 outstand advice and consent of the Senate. The Pres A:t:torney G~neral in the prosecution of any ing at any one time, on such terms and con ident shall designate a Chairman and Vice su1ts or act10ns based upon such violations· ditions and with such maturities as the Re Chairman of the Board from among the to furnish information and special report~ construction Finance Corporation may members representative of the general public. at the request of the Bureau of Internal determine. (3) Each member representative of the Revenue, the Federal Trade Commission, and (J) The President may transfer to the Ad general public shall receive compensation at the Department of Justite; to advise and ministration any functions, powers, and du the rate of $15,000 a year, and while a mem consult with other governmental agencies ties of any department or agency which re ber of the Board shall engage in no other concerning the pricing of materials required lates primarily to small-business problems. business, vocation, or employment. Each ip. . the. defense mobilization program; to (k) No loan shall be recommended or member representative of labor, and each mamtam current rosters of qualified per equipment, facilities, or services furnished member representative of business and in sons who would be available in the event of by the Administration under this section to dustry, shall receive $50 for each day he is the activation of controls to agencies con any business enterprise unless the owners, actually engaged in the performance of his trolling prices and wages; and to devise and partners or officers of such business enter duties as a member of the Board, and in perfect the appropriate pattern of organiza prise (1) certify to the Administration the addition he shall be paid his actual and tion and procedures which would be required names of any attorneys, agents, or other per necessary travel and subsistence expenses in in the event it should become necessary to sons engaged by or on behalf of such busi accordance with the Travel Expense Act of impose selective or general controls. ness enterprise for the purpose of expediting 1949 while so engaged away from his home SEc. 403. (a) (1) The President may iss11e applications made to the Administration for or regular place of business. The members regula~ions and ·orders establishing a ceiling assistance of an.y sort, and ·the fees paid or to representative of labor, and the members or ceillngs on the price, rental, commission, be paid to any such persons; and (2) exe-· representative of business and industry, margin, rate, fee, charge, or allowance paid. cute an agreement binding any such busi shall, in respect of their functions on the or received on the sale or delivery, or the ness enterprise for a period of 2 years after Board, be exempt from the operation of sec purchase or receipt, by or to any person, of any· assistance is rendered by the Adminis tions 281, 283, 284, 434, and 1914 of title 18 any material or service; and the President tration to such business enterprise, to ·re of the United States Code and section 190 shall at the same time issue regulations and frain from employing, tendering any office of the Revised Statutes (5 U. S. C. 99). orders stabilizing wages, salaries, and other or employment to, or retaining for profes (4) Except insofar as stabilization of compensation in accordance with the provi sional services, any person who, on the date wages, salaries or other compensation is in sions of this section. such assistance or any part thereof was ren volved, the Board shall have no jurisdiction (2) Action J.mder this section may be dered, or within 1 year prior thereto, shall with respect to anY labor dispute or with taken either with respect to individual ma have served as an officer, attorney, agent or respect to any issue involved therein. La terials and services and to individual types employee of the Administration occupying a bor disputes, and labor matters in dispute, of employment, or with respect to materials, position or engaging in activities which the which do not involve the interpretation or services, and types of employment general· Administration shall have determined in application of wage stabilization regulations ly. Whenever _any action is taken with re volve discretion with respect to the granting -or policies shall be dealt with, if at all, inso spect to any particular material, service, or of assistance under this section. far as the Federal Government is concerned, type of employment or with respect to ma (1) To the fullest extent the Administra under the conciliation, mediation, emer terials, services or types of employment gen· tion deems practicable, it shall make a fair gency, or other provisions of laws heretofore erally, ceiling prices shall be fixed and the charge for the use of Government-owned or hereafter enacted by the Congress. wages, salaries, and other compensation shall property and make and let contracts on a ( 5) The President may, notwithstanding be stabilized at the level prevailing as of the basis that will result in a recovery of the any other provision .of this title, authorize close of business on the business day next direct costs incurred by the Administration. the continuation of the Salary Stabilization preceding the day on which the action is (m) There are hereby authorized to be Board, the Railroad and Airline Wage Board, taken. As soon thereafter as practicable appropriated such sums as may be necessary and the Construction Industry Stabilization (within a period of 90 days after the tak and appropriate for the carrying out of the Commission, and delegate such functions to ing of such action, if possible, and within a provisions and purposes of this section. them as he deems advisable. The members period of 6 months after the taking of such of these Boards shall be appointed by the SEC. 306. This title shall be deemed a con~ action in any event) the President shall ad President, by and with the advice and con- just such ceiling prices and such .wages, sala tinuation of the authority contained in title sent of the Senate. · · III and section 714 of the Defense Production ries, ·and other compensation in the manner Act of 1950, as amended, and all assets, funds, (d) Upon the activation of ceilings on provided in subsection (c) of this section. contracts, loans, liabilities, commitments, prices and the stabilization of wages, salaries, (3) Whenever a ceiling has been imposed authorizations, allocations, and records pri or other compensation the operations of the with respect to a particular material or serv• marily related to the exercise of functions • Office of Price .Stabilization, the Wage Sta ice, the President shall stabilize wages, sala· under title III and section 714 of the Defense bilization Board, and any other agencies the · ries, and other compensation in the indus President may create under this title, shall Production Act of 1950 are hereby continued . try or business producing the material or in the administration of this title. be under the supervision ·and control of an official appointed by the President, by and performing the service. TITLE IV-PRICE AND WAGE STABILIZATION with the advice and consent of the Senate. ( 4) Whenever ceilings on prices have been SEc. 401.. (a) For the purpose of carrying .It shall be the express duty, obligation, and established on materials and services com out the provisions of this title, the Office of function of such official to coordinate the prising a substantial part of all sales at re· Price Stabilization and the Wage Stabiliza - relationship between prices and 'wages.· tail and materially affecting the cost of liv tion Board as hereinafter constituted are SEC. 402. In the absence of the activation ing, the President -(i) shall impose ceilings hereby continued and any activation of ceil of ceilings on prices or the stabilization of . on prices and services generally, and (ii) ings on prices or tbe stabilization of wages, wages, salaries, or other compensation it shall shall stabilize wages, salaries, and other com- salaries, or other compensation shall be exer be the continuing function of the Office of pensation generally. · - cised through these agencies or such other Price Stabilization and the Wage Stabiliza (b) In stabilizing wages under this sec· agencies as the .President may designate. tion Board to establish and maintain pro· tlon, the President shall issue regulations (b) The Office of Price Stabilization shall cedures for the study and evaluation of price be directed by an Administrator, who shall and wage trends; to make monthly reports to prohibiting increases in wages, salaries, and be appointed by the .President, by and with the Congress with respect to these and ,re . other compensation which he deems would the advice and consent of the Senate, and lated matters, and any special reports that require an increase in price ceilings or 1m be shall receive compensation at the rate of bear upon the proper administration of this pose hardships or inequities on sellers oper• $16;000 per annum. The principal office of title; to formulate and recommend to the ating under price ceilings. the Administrator shall be in the District of President general policies and regulations re. (c) So far as practicable, In exercising the Columbia, but he or any duly authorized lating to controls ·on J>rices and on wages, authority conferred ln this section, the XCIX--46 .722 CONGRESSIONAL ~:t;:CORD · - SENATE February 2 President shall ascertain and give dUe con (1) The parity price for such commodity, as as amended (hereinafter referred to as a sideration to comparable prices, rentals, determined by the Secretary of Agriculture non-Federal marketing area), shall not be commissions, margins, rates, fees, charges, in accordance with the Agricultural Adjust less than (1) parity prices for such milk, or and allowances, and to comparable salaries, ment Act of 1938, as amended, and adjusted ( 2) prices which in any such area will bear wages, or other compensation, which he finds by the Secretary of Agriculture for grade, the same ratio to the simple average of the to be representative of those prevailing dur location, and seasonal differentials, or (2) prices payable to producers for milk used ing the period from , to , inclu the highest price received by producers dur for distribution as fluid milk in all Federal sive, or, in case none prevailed during this ing the period from , to , in marketing areas as the prices for fluid milk period or if those prevailing during this pe clusive, as determined by the Secretary of in the non-Federal marketing area bore to riod were not generally representative be Agriculture and adjusted by the Secretary the average of the prices for such milk in cause of abnormal or seasonal market con of Agriculture for grade, location, and sea all Federal marketing areas on • ditions or other cause, then those prevail sonal differentials, or (3) in the case of any (f) For the purposes of this section, the ing on the nearest date on which, in the commodity for which the market was not parity price of any agricultural commodity judgment of the President, they are gen active during the period , to , as of any date shall be the parity price of erally representative. The President shall inclusive, the average price received by such commodity as of the beginning of the also give due consideration to the national producers during the most recent repre then current marketing year or season for effort to achieve maximum production in sentative period prior to , in which the commodity, except that, in the event furtherance of the objectives of this act. the market for such commodity was active that the marketing year or season then ll:n determining and adjusting ceilings on as determined and adjusted by the Secre current commenced prior to May 1, 1953, prices with respect to materials and services, tary of Agriculture to a level in line with such parity price as of any date during such he shall give due consideration to such rele the level .of prices received by producers for year or season shall be the parity price for vant factors as he may determine to be of agricultural commodities generally during the commodity published by the Secretary general applicability in respect of such ma the period , to , inclusiv~. and of Agriculture on April 29, 1953. The mar terial or service, including the following: adjusted by the Secretary for grade, 'loca keting year or season for a commodity shall Speculative fluctuations, general increases or tion, and seasonal differentials, or (4) in be determined by the Secretary of Agricul decreases in cost of production, distribution, the case ·of fire-cured tobacco a price (as ture; and, in the case of a commodity which and transportation, and general increases or determined by the Secretary of Agriculture the Secretary determines is not marketed on decreases in .profits earned by sellers of the and adjusted for grade differentials) equal a marketing year or season basis, shall be material or by persons performing the serv to 75 percent of the parity price of Burley the calendar year. ice, subsequent to. ; but no such ceil tobacco or the corresponding crop, and in SEc. 405. (a) The authority conferred by ings shall be established for the purpose of the case of dark air-cured tobacco and Vir this title shall not be exercised with respect controlling profits. In stabilizing and ad ginia sun-cured tobacco, respectively, a to the following: justing wages, salaries, or other compensa price (as determined by the Secretary of ( 1) Prices or rentals for real property; tion, the President shall give due considera Agriculture and adjusted for grade differ (2 ) Rates or fees charged for professional tion to such relevant factors as he may entials) equal to 66% percent of the parity services; wages, salaries, and other compen determine to be of general applicability in price of Burley tobacco of the corresponding sation paid to physicians employed in a pro respect of such wages, salaries, or other crop. fessional capacity by licensed hospitals, compensation. Any regulation or order (b) No ceilings shall be established or clinics, and like medical institutions for the under this title shall be such .as in the judg maintained hereunder for any commodity care of the sick or disabled; wages, salaries, ment of the President will be generally fair processed or manufactured in whole or sub and other compensation paid to attorneys and equitable and . will effectuate the pur stantial part from any agricultural com licensed to practice law employed in a pro poses of this title, and shall be accom modity below a price which will reflect to fessional capacity by an attorney or firm of panied by a statement of considerations in producers of such agricultural commodity a attorneys engaged in the practice of his or volved in the issuance of such regulation or price for such agricultural commodity equal their profession; wages, salaries, and other order. The President, in establishing and to the highest price therefor specified in compensation paid to professional engineers adjusting ceilings with respect to materials this subsection: Provided, That in establish employed in a professional· capacity; wages, and services, and in stabilizing and adjust ing and maintaining ceilings on products salaries, and other compensation paid to ing wages, salaries, and other compensation, resulting from the processing of agricul professional architects employed in a pro shall make such adjustments as he deems tural commodities, including livestock, a fessional capacity by an architect or firm of necessary to prevent or correct hardships or generally fair and equitable margin shall be architects engaged in the prac:tice of his or inequities. allowed for such processing; and equitable their profession; and wages, salaries, and (d) (1) Regulations and orders issued treatment shall be accorded to all such other compensation paid to certified public under this title shall apply regardless of any processors. accountants licensed to practice as such em obligation heretofore or hereafter incurred, (c) Whenever a ceiling has been estab ployed in a professional capacity by a certified except as provided in this subsection; but lished under this title with respect to any public accountant or firm of certified public the President shall make appropriate provi agricultural commodity, or any commodity accountants engaged in the practice of his sion to prevent hardships and inequities to processed or manufactured in whole or in or their profession; sellers who have bona fide contracts in effect substantial part therefrom, the President (3) Prices or rentals for (A) materials fur on the date of issuance of any such regu from time to time shall adjust such ceiling nished for publication by any press associa lation or order for future delivery of mate in order to make appropriate allowance for tion or feature service, or (B) books, maga rials in which seasonal demands or normal substantial reduction in merchantable crop zines, motion pictures, periodicals, or news business practices. require contracts for yields, unusual increases in costs of produc papers, other than as waste or scrap; or future delivery. tion, and other factors which· result from rates charged by any person in the business ( 2) Except as otherwise provided in this hazards occurring in connection with the of operating or publishing a newspaper, peri section, no wage, salary, or other compensa production and marketing of such agricul odical, or magazine, or operating a radio tion shall be stabilized at less than that paiq tural commodity; and in establishing the broadcasting or television station, a motion during the period from , to , in ceiling ( 1) for any agricultural commodity picture or other theater enterprise, or out clusive; no regulation or order shall be issued for which the 1953 marketing season com door advertising facilities; or-remain in effect under this title which menced prior to the enactment of this act ( 4) Rates charged by any person in the prohibits the payment or receipt of hourly . and for which different areas have different business of selling or underwriting insurance; wages at a rate of $1 per hour or less; and periods of marketing during such season; (5) (A) Rates and charges by any com no action shall be taken under authority of or (2) for any agricultural commodity pro mon carrier or other public utility, includ this title with respect to wages, salaries, or duced for the same general use as a com ing rates charged by any person subject to other compensation which is inconsistent modity described in ( 1), the President shall the Shipping Act, 1916 (Public Law 260, 64th with the provisions of the Fair Labor give due consideration to affording equitable Cong.), as an:1ended, and including compen Standards Act of 1938, as amended, or the treatment to all producers of the commodity sation for the use by others of a common Labor-Management Relations Act, 1947, or for which the ceiling is being established. carrier's cars or other transportation equip any other law of the United States. (d) Nothing contained in this act shall ment, charges for the use of washroom and (e) In order to carry out the objectives be construed to modify, repeal, supersede, toilet facilities in terminals and stations, and of this title, the President may encourage or affect the provisions of either ( 1) the · charges for repairing cars or other transpor and promote voluntary action by business, Agricultural Act of 1949, as amended, or (2) tation equipment owned by others; charges agriculture, labor, and consumers. In pro the Agricultural Marketing Agreement Act for the use of parking facilities operated by ceeding under this subsectio~ the President . of 1937, as amended, or to invalidate any common carriers in connection with their may exercise the authority to approve vol marketing agreement, license, or order, or common-carrier operations; and (B) charges untary programs and agreements conferred any provision thereof or amendment thereto, paid by common carriers for the perform on him under section 707, and may utilize heretofore or hereafter made or issued under ance of a part of their transportation services the services of persons and agencies as pro . t:q.e provisions of the Agricultural Marketing to the public, including the use of cars or vided in section 712. Agreement Act of 1937, as amended. other transportation equipment owned by SEC. 404. Except as otherwise provided in (e) Ceiling prices to producers for milk a person other than a common carrier, pro section 403- used for distribution as fluid milk in any tective service against heat or cold to prop (a) No ceiling shall be established or . marketing area not under a marketing agree erty transported or to be transported, and maintained for any agricultural commodity . ment, license, or order issued under the Agri . pickup and delivery; and local transfer serv below the highest of the following prices:. cultura~ Marketing Agreement Act of 1937, ices: Provided, That no .common carrier or 1953 CONGRESSIONAL RECORD-· SENATE .723 other public utility s:hail at any tlnie :atter and their use lawfuiiy requli-ed by another sonable .time after the ftling . of any protest ~the President shall have issued any stabili Government agency. · under this section, but in no event more zation regulations and orders under subsec (e) No rule, regulation, or order issued than 30 days after such filing, the President tion (a) of section 403 make any increase in under this title shall require any seller of shall either grant or deny such protest in its charges for property or services sold by materials at retail to limit his sales with ref- whole or in part, notice such protest for hear· _ it for -resale to the public, for which appli erence to any highest price line offered for ing, or provide an opportunity to present cation is filed aft~r the date of issuance sale by him at any prior time. further evidence in· connection therewith. In of such stabilization regulations and orders; (f) Where the sale or delivery of a mate- the event that the President denies any such before the Federal, State, or municipal · au~ rial or -service .makes . ~h~ person selling or protest in whole or in part, he shall inform thority, if any, having jurisdiction to con delivering it liable for a State or local gross __ the _p_!:"otestant of the grounds upop. w}1.ich sider such increase, unless it first gives 30 receipts tax or gross income tax, he may such decision is based, and of any economic days' notice to the President, or such agency receive for the material or service involved, · data and other facts of which the President as he may designate, and consents to timely in addition to the ceiling price, (1) an has taken official notice. intervention by such agency before the Fed amount equal to the amou~t of all such (b) In th~ administration of this title, eral, State, or municipal authority, if any, State and _local taxes for which the trans- the President may take o1ficial notice of having 'jurisdiction to consider such in action makes him liable, or (2) 1 cent, which- economic data and other facts, including crease: And provided further, That· the Office ·ever is·greater. For the purposes of the pre- facts found by him as a result of action .pf Price Stabilization or its successor shall ceding sentence, the ·amount of tax liability taken under section 708 of this act. not intervene in any case involving increases sh~~l be computed on sh_iPI?ing units at the (c) Any proceedings under this section in rates or charges proposed by· any com cmlmg price, and a fra?~w~al part of a cent may be limited by the President to the filing mon carrier or other public utility except as in the amount of tax nability shall be dis- of atndavits, or other written evidence, and provided .in the preceding proviso; regarded unless it amounts to one-half cent. the filing of briefs: Provided, however, That (6) Margin requirements on any commod or more, in which case it shall be increase~ upon the .request of the protestant, any pro ity exchange; to 1 cent. test filed in accordance with subsection (a) (7) Prices charged and wages paid for (g) No rule, _regulation, orde:, o~ amend- of this se.ction shall, before denial in whole services performed by barbers and beauti ment t~ereto Issued ur;rder this title s?all or in part, be considered by a.. board of re cians; fix a ceiling on the pr~ce paid or re~elV~d view consisting of one or more otncers or em (8) Rates, fees, and charges for materials on the sale or delivery _of_ any matenal . m ployees of the United States designated by or services supplied directly by· the States, any State be~ow the mimmum sales pnce the President in accordance with regulations Territories, and possessions of the United of such matenal fixed ~Y the State law (other to be promulgated by him. Such regulations States, and their political subdivisions and than any so-called ~air trade law) now in shall provide that the board of review may municipalities, the District of Columbia, and effect, or by regulatwn issued pursuant to conduct hearings and hold sessions in the any agency of any of the foregoing; such law. . . . . District of Columbia or in any other place, - ( 9) Wages,' salaries, or other compensation ~EC: 406. In carr_ymg out the provisions of - as a board, m: by'subcommittees thereof, and of. persons employed in small-business enter t~us title, t~e President shall,. so far as prac- shall provide that, upon the request of the prises as defined in this paragraph: Pro t~.::able, adv~s~ and con~ult With, and estab- protestants · and upon a showing that ma.. vided, however, That the President may from l~sh and utilize committe~s of, representa- terial facts would be adduced thereby, sub time to time exclude from this exemption tlves o! persons su~stantlally affected by penas shall issue to procure the evidence of such enterprises on the basis of industries, regulatwns or orders Issued hereunder. persons, or the production of documents, or types of business, occupations, or areas, if SEc. 407. (a)_ It _shall be unlawful, regard- both. The President shall cause to be pre their exemption would be unstabilizing with less of a~y obllgatwn heretofore or herea;fter sented to the board such evidence, including respect to wages, salaries, or other compensa entered mto, for any person to ~ell or deliver, economic data, in the form of affidavits or tion, prices, or ·manpower, or would other· or in the regu~ar course of bus~ness or tr~de otherwise, as he deems appropriate in sup wis.e be contrary to the purposes of thls act. to buy or _receive, any com:nodity or service, port of the provision against which the A small-business enterprise, for the purpose or o~her:v1se to d<;> 0~ omit to do any act, protest is filed. The protestant shall be ac of this paragraph, is any enterprise in which i~ vwlatwn of th~s title <;>r of any regula- corded an opportunity to present rebuttal a total of eight or less persons are employed twn, order, or r~q~urement Issued thereunder, evidence in writing and -oral argument before in all its establishments, branches, units, or or to offer, sollcit: attempt or agree to do the board and the board shall make written affiliates; ' any of · th~ foregomg. The Pr~sident shall · recommendations to the President. Tire (10) Prices charged and _·wages ~ paid by also prescnbe. the e~ent to Which~ any pay- · protestant shall be informed of the recant· bowling alleys; ment made, either I~ money or· property, by mendations of the board and, in the event · a;ny person in violat~on .of any such reg_ula- that the President rejects such recommenda (11) Wages ~ paid for agricultural labor. tiOn, order, or reqmre_ment shall be disre- tions in whole or ·in part, shall be informed (b) The President, in or by any regulation garded by the executive . departments_ ~nd of the reasons for such rejection. or order, may provide exemptions for any other governmental agencies in determining (d) A .., t fi . materials or services, or transactions therein, the costs or expenses of any such person for ny pro .es led under this section or types of · employment, with respect to tlle purposes of any other law or regulation, s~all be gra;nted or denied by th~. President, which he finds that ( 1) such exemption is including bases in determining gain for tax 0 grante~ m part and the r~mamder <;>f it necessary to promote the national defense; purposes denied Within a reasonable tlme after 1t is or (2) it is unnecessary that ceilings be ap (b) N~ employer shall pay, and no em- filed. Any protestant who is aggriev~d by plicable to -such materials or services. or ployee shall receive, any wage, salary, or und';le d~lay on _the part of the ~r~sident . transactions therein, or that compensation other compensation in contravention of any in disposmg of his protest may petl~wn the for such types of employment be stabilized,. regulation or order promulgated under this Emergency Court of Ap~ea:s ~or. rellef; and in order to effectuate the purposes of this title. The President shall also prescribe the such court shall have .Junsdictlon by ap title. · extent to which any wage, salary, or com- propriate order to reqmre ~he_ Presiden~ .to (c) The- powers· granted in this-title shan · pensation payment made in contravention dispose of such protest Withm such tm~e not be used or made to operate to compel of any such regulation or order shall be dis- as may be ttxed by the court. ~f the Pr~si• changes in the business practices, cost prac regarded by the executive departments and dent does not act finally within the time tices or methods, or means or aids to dis- other governmental agencies in determining fixed by the court, the protest shall be . tr.ibution, established in any industry, ex the costs or expenses of any employer for deemed ~o be denied at the expiration of . cept where such action is affirmatively found . the purposes of any other law or regulation. that penod . by the President to be: necessary to prevent SEC. 408. Nothing in this ·title shall be SEc. 410. (a) Any person who is aggrieved circumvention or evasion of any regulation, construed to require any person to sell any by the denial or partial denial of his protest order, or requirement under this title. material ·or service, or to perform personal . may, within 30 days after such denial, file (d) Nothing in thi~? title shall be con services. · a complaint with the Emergency CoU_!:"t of strued ( 1) as authorizing the elimination or SEc. 409. (a) At any time within 6_months Appeals specifying I;ris objections and pray any restriction of the use of trade and brand after the effective date of any regulation or ing that the regulatwn or order protested be ' names; (2) as authorizing the President to order relating to prtce controls under this enjoined or set aside in whole or in part. require the grade labeling of any materials; title, or, in-the case of new grounds arising A copy of such complaint shall fortJ:?.with be (3) as authorizing the President to stand after the effective date of any such :regula- served on.·the President, who shall certify ardize any materials or services,·unless the . tion· or order, within 6 months after s-uch and file With such court a transcript of such President f!hall determine, · with respect to new grounds arise, a'ny person subject to any Pvernment Corporation Control Act, as visory Council, by Executive order shall find agencies under this act; · and declare that the exercise of power to (2) ~uch business advisory committees amended. shall be appointed as shall be appropriate (2) "Credit" means any loan, mortgage, invoke consumer credit controls or real estate deed of trust, advance, or diiCount; any con construction credit controls, or both, as the for purposes of consultation during the ditional sale contract; any contract to sell or case may· be, is necessary in the interest of period prior to activation of controls author sale or contract of sale, of property or serv:. national security or economic stability. ized by this act and in the formulation of rules, regulations, or orders, or amendments ices, either for present or future delivery, TITLE VII-GENERAL PROVISIONS ' under which part or all of the price is payable thereto issued under authority of this act, subsequent to the making of such sale or SEC. 701. As used ln. this act-- and in their formation there shall be fair contract; any rental-purchase contract, or (a) The word "person" includes an indi representation for independent small, for any contract for the bailment, leasing, or vidual, corporation, partnership, association, medium, and for large business enterprises, other use of property under which the bailee, or any other organized group of persons, or for different geographical areas, for trade lessee, or user has the option of becoming legal successor or representative of the fore association members and nonmembers, and the owner thereof, obligates himself to pay going, and includes the United States or any· for different segments of the industry; as compensation a sum substantially equiva agency thereof, or any other government, or (3) in administering this act, such exemp lent to or in excess of the value thereof, or any of its political subdivisions, or any tions shall be provided for small-business has the right to have all or part of the pay agency of any of the foregoing: Provided, concerns as may be feasible without imped ments required by such contract applied to That no punishment provided by this act ing the accomplishment of the objectives · the purchase price of such property or sim shall apply to the United States, or to any of this act; and such government, political subdivision, or ( 4) in administering this act, special pro ilar property; any option, demand, lien, 1 pledge, or similar claim against, or for the government agency. vision shall be made for the expeditious delivery of property or money; any purchase, (b) The word "materials" shall include handling of all requests, applications, or ap discount, or other acquisition of, or any raw materials, articles, commodities, prod peals from small-business concerns• . credit under the security of, any obligation ucts, supplies, components, technical infor (b) Whenever the President invokes the or claim arising out of any of the ;foregoing; mation, and J'rocesses. powers given him in this act to allocate, or and any transaction or series of transactions (c) The word "facilities" shall not include approve agreements allocating, any material, having a similar purpose or effect. farms, churches, or other places of worship, to an extent which the President ftnds will SEC. 603. Any person who willfully violates or private dwelling houses. result in a significant dislocation of the any provision of section 601,602, or 605 or any (d) The term "national defense" means normal distribution in the civilian market, regulation or order issued thereunder, upon the operations and activities of the Armed he shall do so in such a manner ·as to make conviction thereof, shall be fined not more !\.. :·ces, the Atomic Energy Commission, or available, so far as practicable, for business than $5,000 or imprisoned not more than any other Government department or agency and various segments thereof in the normal 1 year, or both. directly or indirectly and substantially con channel of distribution of such material, a SEC. 604. All the present provisions of sec cerned with the national defense, or opera fair share of ·the available civilian supply tions 21 and 27 of the Securities Exchange tions or activities in connection with the based, so far as practicable, on the share re Act of 1934, as amended (relating to investi Mutual Defense Assistance Act of 1949, as ceived by such business under normal con· gations, injunctions, jurisdictions, and other amended. ditions during a representative period pre matters) , shall be as fully applicable with (e) The words "wages; salaries, and other ceding , and having due regard to the respect to the exercise by the Board of Gov compensation" shall include all forms of current competitive position of established ernors of the Federal Reserve Sy tern of credit remuneration to employees by their em business: Provided, That the limitations and controls under section 601 as they are now; ployers for personal services, including, but restrfctions imposed on the production of applicable with respect to the exercise by the not limited to, vacation and holiday pay specific items shall not exclude new con Securities and Exchange Commission of its ments, night shift and other bonuses, in cerns from a fair and reasonable share of functions under that act, and the Board shall centive payments, year-end bonuses, em• total authorized production, have the same powers in the exercise of such ployer contributions to or payments of in-· SEc. 705. (a) The President may delegate credit controls as the Commission now has surance or welfare benefits, employer con any power or authority conferred upon him under the said sections 21 and 27. tributions to a pension fund or annuity, by this act to any officer or agency of the SEC. 605. To assist in carrying out the ob· payments in kind, and premium . overtime Government, including any new agency or jectives of this act the President may at any payments. agencies, and he may authorize such redele· time or times, notwithstanding any other SEc. 702. There is hereby established a gations by that officer or agency as the Presi· provision of law, reduce, for such period as National Advisory Council composed of dent may deem appropriate; except that he he shall specify, the maximum authorized members to be appointed by the President, may not delegate the function of consulting principal amounts, ratios of loan to value or by and with the advice and consent of the with the Nfttional Advisory Council as re c0st, or maximum maturities of any type or Senate. The membership shall be repre quired by this act. The President is au types of loans on .real estate which there sentative of business and industry, agricul thorized to create such new agencies, and after may be made, insured, or guaranteed ture, labor, the military, and consumers. to continue such existing agencies estab· by any department, independent establish The Pres_ident shall designate a Chairman lished under the Defense Production Act of ment, or agency in the executive branch of from among the members. Such Council 1950 or the Housing and Rent Act of 1947, the United States Government, or by any shall, upon request, advise the President on as he deems necessary to carry out the pro· wholly owned Government corporation or by general policies relating to economic mobili visrons of this act, and any such agency may any mixed-ownership Government corpora zation, in addition to performing the func be placed on a standby basis prior to the tion as defined in the Government Corpora tions prescribed elsewhere in this act. Each activation of any title contained in this act, tion Control Act, as amended, or reduce or member may receive compensation not in to perform such functions as the President suspend any such authorized loan program, excess of $50 per diem for each day he is may delegate to it. The President is au upon a determination, after taking into con actually engaged in the performance of his thorized to appoint heads and assistant heads sideration the effect thereof upon conditions duties as a member, and, while away from of any such new agencies, and other officials in the building industry and upon the na his home or regular place of business, he therein of comparable status, and to fix their tional economy and the needs for increased may be allowed transportation and not tq compensation, without regard to the Classi ~efense production, that such action is nec exceed $15 per diem in lieu of subsistence fication Act of 1949, as amended, the head essary in the public interest: Provided, That and other expe:.1ses while so employed. The of one such agency to be paid at a rate com in the exercise of these powers, the President members shall, in respect to their functions parable to the compensation paid to the shall 'preserve the relative credit preferences on ·the Council, be exempt from the opera heads of executive departments of the Gov accorded to veterans under existing law. tion of sections 281, 283, 284, 434, and 1914 ernment, and other such heads, assistant Subject to the provision of this section with of title 18 of the United States Code and heads, and offic(als at rates comparable to respect to preserving the relative credit pref section 190 of the Revised Statutes (5 U. S. the compensation paid to the heads and erences accorded to veterans under existing 99). assistant heads of independent agencies of law, the President may require lenders or c. the Government. Any officer or agency may borrowers and their successors and assigns SEc. 703. Any provision of this act to the employ civilian personnel for duty in the to comply with reasonable conditions and contrary notwithstanding, the President may United States, including the District of Co-· requirements, in addition to those provided exercise any authority granted to him by lumbia, or elsewhere, as the President deems by other laws, in connection with any loan this act without prior consultation with the necessary to carry out the provisions of this of a type which has been the subject of National Advisory Council in the event of act. action by the President under this section, state of war exists. (b) The head and assistant heads of any Such conditions and, requirements may vary SEc. 704. (a) ln order to carry out the independent agency created to administer for classifications of persons -or transactions policY of the Congress that small-business the· authority conferred by title · IV of this as the President may prescribe, and failure concerns be encouraged to make the great- act shall be appointed by the President, by 1953 CONGRESSIONAL RECORD- SENATE 727 and with the advice and consent of the Sen and the President at such times as he deems not more than $1,000 or imprisoned for not ate. There shall be included among the desirable, reports setting forth the results of more than 1 year, or both. policy-making officers of each regional office any such surveys, including such recommen (e) Information obtained under this sec administering the authority conferred by dations as he may deem desirable. tion which the President deems confidential title IV of this act a resident of each State (f) No voluntary program or agreement or with reference to which a request for con served by f?UCh office whose governor re for the control of credit shall be approved fidential trea:tment is made by the person quests such representation. or carried out under this section. furnishing such information shall not be SEc. 706. The President may make such SEC. 708. (a) The President shall be en published or disclosed unless the President rules, regulations, and orders as he deems titled, while this act is in effect and for a determines that the withholding thereof is necessary or appropriate to carry out the period of 2 years thereafter, by regulation, contrary to the interest of the national de provisions of this act. Any regulation or subpena, or otherwise, to obtain such infor fense, and any person willfully violating this order under this act may be established in m at ion from, require such reports and the provision shall, upon conviction, be fined such form and manner, may contain such keeping of such records by, make such in not more than $10,000, or imprisoned for not classifications and differentiations, and m ay spection of the books, records, and other more than 1 year, or both. provide for such adjustments and reasonable writings, premises or property of, and take (f) Any person subpenaed under this sec,. exceptions as in the judgment of the Presi the sworn testimony of, and administer oaths tion shall have the right to make a record dent are necessary or proper to effectuate the and affirmations to, any person as may be of his testimony and to be represented by purposes of this act, or to prevent circum necessary or appropriate, in his discretion, cqunsel. vention or. evasion, or to facilitate enforce to the enforcement or the administration of SEc. 709. (a) Whenever in the judgment of ment of this act, or any rule, regulation, this act and the regulations or orders issued the President any person has engaged or is or order issued und~r this act. No rule, thereunder. The President shall issue regu about to engage in any acts or practices regulation, or order issued under this act lations insuring that the authority of this which constitute or will constitute a viola which restricts the use of natural gas (either subsection will be utilized only after the tion of any provision of this a·ct, he may directly, or by restricting the use of facili scope and purpose of the investigation, in make application to the appropriate court ties for the consumption of natural gas, or spection, or inquiry to be made have been for an order enjoining such acts or practices, in any other manner) shall apply in any defined by competent authority, and it is or for an order enforcing compliance with State in which a public regulatory. agency assured that no adequate and ' authoritative such provision, and upon a showing by the has authority to restrict the use of natural dat a are available from any Federal or other President that such person has engaged or gas and certifies to the President that it is responsible agency. In case of contumacy by, is about to engage in any such acts or prac exercising that authority to the extent neces or refusal to obey a subpena served upon, tices a per man en t or temporary injunction, sary to accomplish the objectives of this act. any person referred to in this subsection, the restraining order, or other order, with or SEc. 707. (a) The Pr'esident is authorized district court of the United States for any without such injunction or restraining order, to consult with representatives of industry, district in which such person is found or shall be granted without bond. business, financing, agriculture, labor, and resides or transacts business, upon applica (b) The district courts of the United other interests, with a view to encouraging tion by the President, shall have jurisdiction States and the United States- courts of any the m aking by such persons with the ap to issue an order requiring such person t o Territory or other place subject to the juris proval by the President of voluntary agree appear and give testimony or to appear and diction of the United States shall have juris ments and programs to further the objectives produce documents, or both; and any failure diction of violatiotls of this act or any rule, . of this act. to obey such order of the court may be regulation, order, or subpena thereunder, and (b) No act or omission to act pursuant punished by such court as a contempt of all civil actions under this act to enforce to this act which occurs while this act is thereof. any liability or duty created by, or to enjoin in effect, if requested by the President pur (b) No person shall be excused from com- any violation of, this act or any rule, regu suant to a ·voluntary agreement or program plying with any requirement under this sec lation, order, or subpena thereunder. ·Any approved under subsection . (a) and found tion or from attending and testifying or from criminal proceeding on account of any such by the President to be in the public interest producing books, papers, documents, and violation may be brought in any district in as contributing to the national defense, shall other evidence in obedience to a subpena which any act, failure to act, or transaction be construed to be within the prohibition of before any grand jury or in any court or ad constituting the violation occurred. Any the antitrust laws or the Federal Trade Com ministrative proceeding based upon or grow such civil action may be brought in any such mission Act of the United States. A copy ing out of any alleged violation of this act district or in the district in which the de of each such request intended to be within on the ground that the testimony or evi fendant resides or transacts "busine ~ s. the coverage ·of this section, and any modifi dence, documentary or otherwise, required Pro.cess in such cases, criminal or civil, may cation or withdrawal thereof, shall be fur of him may tend to incriminate him or sub be served in any district wherein the defend nished to the Attorney General and the ject him to penalty or forfeiture; but no ant resides or transacts business or wherever Chairman of the Federal Trade Commission n atural person shall be prosecuted or sub the defendant may be found; to subpena when made, and it shall be published in jected to any penalty or forfeiture in any for witnesses who are required to attend a the Federal Register unless publication court, for or on account of any transaction, court in any district in sl1ch case may run thereof would, in the opinion of the Presi matter, or -thing concerning which he is so into any other district. The termination of dent, endanger the national security. compelled, after having claimed his privilege the authority granted in any title or section (c) The authority granted in subsection against self-incrimination, to testify or pro of this act, or of any rule, regulation, or (b) shall be delegated only ( 1) to officials duce evidence, documentary or otherwise, ex order issued thereunder, shall not operate who shall for the purpose of such delega cept that such natural person so testifying to defeat any suit, action, or prosecution, tion be required to be appointed by the shall not be exempt from prosecution and whether therefore or thereafter commenced, President, by and with the advice and con punishment for perjury committed in so tes with respect to any right, liability, or offense sent of the Senate, unl~ss otherwise required tifying: Provided, That the immunity grant-. incurred or committed prior to the termina to be so appointed, and (2) upon the con- ed herein from prosecution and punishment tion date of such title or of such rule, reg . dition that such officials consult with the and from any penalty or forfeiture shall not ulation, or order. No costs shall be assessed Attorney General and with t:Q.e Chairman of be construed to vest in any individual any against the United States in any'proceeding the Federal Trade Commission not less than right to priorities assistance, to the allocation under this act. AU litigation arising under 10 days before making any request or finding of materials, or to any other benefit which is this act or the regulations promulgated thereunder, and (3) upon the condition that within the power of the President to grant thereunder shall be under the supervision such officials obtain the approval of the under any provision of this act. and control of the Attorney General. • Attorney General to any req-uests thereunder (c) The production of a person's books, SEC. 710. No person shall be held liable for before making the request. For the purpose records, or other documentary evidence shall damages or penalties for any act or failure to of carrying out the objectives of title I of not b e required at any place other than the act resulting directly or indirectly from com this act, the authority granted in subsec place where such person usually keeps them, pliance wit h a rule, regulation, or order t ion (b) of this section shall not be dele if, prior to the return date specified in the issued pursuant to this act, notwithstand gated except to a single official of the Gov regulations, subpena, or other document is ing that any such rule, regulation, or order ernment. sued with respect thereto, such person fur shall thereafter be declared by judicial or (d) Upon withdrawal of any request or nishes the President .with a true copy of such other compet ent authority to be invalid. No finding made hereunder the provisions of books, records, or other documentary evi person shall discriminate against orders or this section shall not apply to any subse dence (certified by such person under oath contracts to which priority is assigneq or for quent act or omission to act by reason of such to be a true and correct copy) or enters into which materials or facilities are allocated finding or request. a stipul?.tion with the President as to the under title I of this act or under any rule, (e) The Attorney Generalis authorized to information contained in such books, rec regulation, or order issued thereunder, by make, or request the Federal Trade Commis ords, or other. documentary evidence. Wit charging higher prices or by imposing differ sion to make for him, surveys for the pur nesses shall be paid the same fees and mile ent terms and conditions for such orders or pose of determining any factors which may age that are paid witnesses·' in the courts o! contracts than for other generally compa tend to eliminate competition, create or the United States. rable orders or contracts; or in any other strengthen monopolies, injure small busi (d) Any person who willfully performs any manner. ness, or otherwise promote undue concen act prohibited or willfully fails ·to perform SEc. 711. The functions exercised under tration of economic power in the course of any .act required by the above provisions of this act shall be excluded from the opera the administration of this act; and the. At this section, or any. rule, regulation, or order. tion of the Administrative Procedure Act torney General shall submit to the Congress thereunder, shalf upon .conviction be fined (60 Stat. 237) except as to the requirements CONGRESSIONAL RECORD-· SENATE February 2 of section 3 therepf. Any rule, regulation, such number and tn such manner as he nicians, and organizations· -thereof, and or order, or amendment thereto, issued under. deems appropriate, concerning the actions clerical and stenographic assistants as it authority of this act shall be accompanied taken to carry out the objectives of this deems necessary and advisable. by a statement that in the formulation act. (e) The expenses of the committee under thereof there has been consultation with in· SEC. 713. There are hereby authorized to this section, which shall not exceed $50,000 dustry representatives, ·including trade· be appropriated such sums as may be nec in any fiscal year, shall be paid one-half association representatives, and that consid. essary and appropriate for the carrying out from the contingent fund of the Senate and eration has been given to their recommen of the provisions and purposes of this act one-half from .the contingent fund of the dations, or that special circumstances have by the President . and such agencies as he House of Representatives upon vouchers rendered such consultation "impracticable or may designate or create. Funds made avail- · signed by the chairman or vice chairman. contrary to the interest of th.e national de able. for the purposes of this act may be al- Disbursements to pay such expenses shall be fense, but no such rule, regulation, or order . located or transferred for any of the pur made by the Clerk of the House of Repre ~hall be invalid l::iy reason of any subsequent poses of this act, with the approval of the sentatives out of the contingent fund of the finding by judicial or other authority that Bureau of the Budget, to any agency desig House of Representatives, such contingent such a statement is inaccurate. nated to assist in carrying out this act. fund to be reimbursed from the contingent SEc. 712. (a) The President, to the extent Funds so allocated or transferred shall re fund of the Senate in the amount of one he deems it necessary and appropriate in main available for such period as may be half of disbursements so made without re order to carry out the provisions of this act, specified in the acts making such funds gard to any other. provision of law. is authori:z.ed -to place positions and employ available. SEC. 715. The provisions of this act shall petsons temporarily in grades 16, 17, and 18 SEC. 714. (a) The Joint Committee on De be applicable to the United States, its Terri of the general schedule established by the . fense Production (hereinafter referred to as tories and possessions, and the District of Classification Act of 1949, and such positions · the committee) created by the Defense Pro Columbia. shall be additional to the number authorized duction Act of 1950, as amended, is hereby S"Ec. 716. If any provision of this act or the by section 505 of that act. continued and shall continue to be com application of such provision to any person (b) The President is further authorized, to posed of 10 members as follows: or circumstances shall be held invalid, the the extent he deems it necessary an"d appro ( 1) Five members who are members of remainder of the act, and the application of priate· in order to carry out the provisions of the Committee on Banking and Currency of such provision to persons or circumstances this act, and subject· to such regulations as the Senate, three from the majority an~ two other than those as to which it is held he may issue, to employ persons of outstand from the minority party, to be appointed by invalid, shall not be affected thereby. ing experience and ability without compensa the chairman of the committee; and SEc. 717. No person may be employed tion; and he is authorized to provide by reg (2) Five members who are membars of under this act who engages in a strike ulation for the exemption of such persons the Committee on Banking and Currency against the Government of the United States from the operation of sections 281, 283, 284, of the House of Representatives, three from or who is a member of an organization of 434, and 1914 of title 18. of the Unit ed States the majority and two from the minority Government employees that asserts the right Code and secti@n 190 of the Revised Statutes party, to be appointed by the chairman of to strike against the Government ·of the (5 U. S. C. 99). Persons appointed under the committee. United States, or who advocates, or who is a the authority of this subsection may be A vacancy in the membership of the com member of an organization that advocates, allowed transportation and not to exceed mittee shall be filled in the same manner t.he overthrow of· the Government of the $15 per diem in lieu of subsistence while as the original selection. The committee United States by force or violence: Provided, away from their homes or regular places of shall elect a chairman and a vice chairman That for the purposes hereof an affidavit business pursuant to such appointment. from among its members, one of whom shall shall be considered prima facie evidence that (c) The President is authorized, to the be a Member of the Senate and the other a the person making the affidavit has not con- - extent he deems it necessary and appropriate Member of the House of Representatives. trary to the provisions of this section en in order to carry out the provisions of this (b) It shall be the function of the com gaged in a strike against the Government of act, to employ experts and consultants or mittee to make a continuous study of the the United States, i.s not a member of an organizations -thereof, as authorized by sec programs authorized by this act, both be organization of Government employees that tion 55a of title 5 of the United States Code. fore and during activation of controls, and asserts the right to strike against the Gov Individuals so employed may be compensated all problems affecting consumer interest, ernment of the United States or that such at not in excess of $50 per diem and while giving special attention to prices charged person does not advocate, and is not a mem away from their homes or regular places of the ultimate consumer for food, fuel, and ber of an organization that advocates, the business they may be allowed transportat.ion · clothing and the costs and methods Of pro overthrow of the Government of the United and not to exceed $15 per diem in lieu of ducing, processing, and distributing these States by force or violence: Provided further, subsistence and other expenses while so em and other consumer goods, and to review the That any person who engages in a strike ployed. The President is authorized to pro progress achieved in the _execution and ad against the Government of the United Vide by regulation for the exemption of such ministration of this act. Upon request, the States or who is a member of an organization persons .from the •operation of sections 281, committee shall aid the standing commit of Government employees that asserts the 283, 284, 434, and 1914 of title 18 of the tees of the Congress having legislative juris right to strike against the Government of United States Code and section 190 of the diction over any part of the programs au the United States, or who advocates, or who Revised Statutes (5 U.S. C. 99). thorized by this act; and it shall make a is a member of an organization that advo (d) The President may utilize the services report to the Senate and the House of Rep cates, the overthrow of the Government of · of Federal, State, and local agencies and may resentatives, froll! time to time, concerning the United States by force or violence and utilize and establish such regional, local, or the results of its studies, together with such accepts employment the salary or wages for other agencies, and utilize such voluntary recommendations as it may deem desirable. which are paid from any appropriation or and uncompensated services, as may from Any department, official, or agency adminis fund contained in this act shall be guilty o:C time to time be needed; and he is authorized tering any of such programs shall, at the a felony and, upon conviction, shall be fined to provide _by regulation for the exemption request of the committee, consult with the not more than $10,000 or imprisoned for not of persons whose services are utilized under committee, from time to time, with respect more than five years, or both: Provided fur this subsection from the operation of sec to their activities under this act. ther, That the·above penalty clause shall be tions 281, 283, 284, 434, and 1914 of title 18 (c) The committee, or any duly author in addition to, and not in substitution' for • of the United States Code and section 190 ized subcommittee thereof, is authorized to any other provisions of exist ing law. ' of the Revised Statutes (5 U. S. C. 99). hold such hearings, to sit and act at such SEc. 718. (a) Title VII of this act shall be (e) Whoever, being an officer or employee times and places, to require by subpena (to come effective upon the date of enactment -of the United states or any department or be issued under the signature of the chair of this act. agency thereof (including any Member of man or vice chairman of the committee). or (b) Titles IV and V of this act shan· be the Senate or House of Representatives), re otherwise the attendance of such witnesses ~ome effective on May 1, 1953. ceives, by virtue of his office or employment, and the production of such books, papers, (c) Titles I, II, III, and VI of this act shall confidential information, and (1) uses such and documents, to administer· such oaths, become effective on July 1, 1953. information in speculating directly or indi· to take such testimony, to procure such SEc ." 719. (a) (1) Except as otherwise in rectly on any commodity exchange, or (2) printing and binding, and to make such ex this act provided, this act and all authority discloses such information for the purpose penditures as it deems advisable. The cost conferred thereunder shall terminate at the of aiding any ~ther person so to speculate, of stenographic services to report such hear expiration of 90 days after the President pro shall be fine~! not more than $10,000 or im ings shall not be in excess of 25 cents per claims that the existing international emer prisoned not more than 1 year, or both. As hundred words. The provisions Of sections gency requiring the involvement of Armed used 'in this section, the term "speculate" 102 to 104, inclusive, of the revised statutes Forces of the United States in actual hos shall not include a legitimate hedging trans shall apply in case of any failure of any tilities in the Korean conflict has ended. action, or a purchase or sale which is ac witness to comply with any subpena or to (2) Title III of this act .and all authority testify when summoned under authority of conferred thereunder shall terminate at the companied by actual delivery of the com this subsection. modity. close of June 30, 1954. (d)- The committee is authorized to ap (3) Title VII of this act shall terminate (f) The President, when he deems such point and, without regard to the Classifica at the time provided in paragraph (1) of action necessary, may make provision for tion Act of 1949, as amended, fix the com this subsection or at the close Of June 30, the printing and distribution of reports, 1n pensation of such experts, consultants, tech· 1954, whichever is later. 1953 CONGRESSIONAL RECORD- SENATE 729 (b) Notwithstanding the foregoing- 1ty of us will be glad to see the end of all sarily created and the strain and stresses ( 1) The Congress by concurrent resolution price controls on April 30. Not one Member it puts on our economic system. It creates or the President by proclamation may termi of this body, I am confident, wants to see all sorts of dislocations, inequities, disequi nate this act prior to the termination other controls continued one day longer than they libriums, friction, and disruptions in our wise provided therefor. think they are necessary. No one, least of personal lives and in our productive system (2} The Congr~ss may also provide by con all I, want "to see controls ever reimposed which take years to rectify, and in many current resolution that any section of this once they are removed. cases are never corrected. Most important, act and all authority conferred thereunder Certainly this is our feeling now after 2 it delays and hinders our chief objective at shall terminate prior to the termination years of economic controls. It was our feel such times-organizing and increasing our otherwise provided therefor. ing in 1946 after 4 years of controls. production potential· for our nationt.l de (3) Any agency created under this act may, Yet, just as surely as Congress voted for fense. J,n the discretion of the President, be con the Emergency Price Control Act of 1942 after Now, I am not so naive as to think an tinued in existence for purposes of liquida· the Japanese .invaded Pearl Harbor, and again economy like ours can shift from a peace '!;ion for not to exceed 6 months after the in 1950 after the North Koreans crossed the time economy to wartime economy, without termination of the provision authorizing the thirty-eighth parallel, just as surely shall some inflationary effects. But the effects creation of such agency. we, much as we detest controls over .our need not. be so great, nor must. they take (c) The termination of any section of this economic life, do the very same thing again. place before the shifts or changes in produc act, or of any agency or corporation utilized It is my- considered judgment that it is tion actually occur. under this act, shall not affect the disburse out of the haste with which Congress and Members of this body will recall how in. ment of funds under, or the carrying out of, the administration has had to act in enact June 1950 I urged an across-the-board .freeze any contract, guarantee, commitment, or ing the legislation and in getting the· pro on all prices, wages, and salaries. If we had o'ther obligation entered into pursuant to gram into operation that a very large num been able to do that when the Korean con this act prior to the date of such termina ber of our difficulties and problems with flict began and adjusted the inequities later, tion, or the taking of any action necessary the operation of a control program arises. we would have avoided a large part of the to preserve or protect the interests of the When you stop to consider the difficulties of inflation we experienced in the 8 months United States in any amounts advanced or trying artificially to control and direct an before the freeze was finally imposed. paid out in carrying on operations under economy as large, varied, and as complicated The bill which I have introduced would this act. and dynamic as ot~rs, you wonder how any permit the President, after certain findings ·one would be so bold as to attempt it. Yet, have been made, or in the event a state· of The statement and summary pre attempt it we did, and on ·balance, it seems war should come to pass, God forbid, to freeze sented by Mr. CAPEHART are as follows: to me, it was better for America and the all prices, wages, and salaries as of the busi STATEMENT BY SENATOR CAPEHART world that we did. Naturally any system of ness day preceding the date of the imposi I · have · just 1ntroduced a bill, the Eco controls will ~ive rise to some problems and tion of the freeze. He would then have 3 nomic Stabilization Act of 1953-which pro will result in a certain amount of inequities months, but in no event more than 6 months, poses, among oth·er things, a stand-by sys and unfairness. The problem is how to mini to make adjustments in such prices, wages, tem of economic controls. mize them. To a large extent this is a and salaries, the adjustments to be made in As Members of this body well know, and problem which takes time, hard study, ex accordance with fair and equitable standards as does anybody who is at all acquainted ·perience, and continuous cooperation be known and clearly set forth in the bill. with my record on various economic and tween business. labor, Congress, and the Imagine how fortunate we would have been social questions, I have always been promi administration. to have such a law on the books on June nently identified with those who believe It is the height of impracticability to ex 24, 1950. Or, think of how foolish it is not and strongly advocate that the less Govern pect that· Congress can do a proper job of to be prepared for such an eventuality ment control and the less Government in;;. legislating a good controls law into effect especially when we know there is an enemy terference in our economic and social. life. in a period of less than 3 months, and for ·increasingly armtng itself for the purpose of the better. I have been nourished on free -such a law to begin, properly functioning destroying us. dom. within 7 months from the incidence of the We are not a militaristic nation. Yet we To me free competitive enterprise Is not a request for the legislation. To expect -Con prepare for ·war: We are not a nation of glib phrase or some loose or abstract termi gress to act within a few days or a few soldiers, yet w_e have a selective· service and nology. To me it has been, truly, a way of weeks, or for an agency to begin a reason a military reserve system b . peacetime. The "life. It is a way of life that has profound ably adequate administration-of such an act fact is that we do prepare for war and have meaning for me and which I have done -earlier than 4 months from the date it is such a system ready to operate effectively everything in my power to preserve, enacted is to ignore valuable experience. But and efficiently to help mobilize our military ·.strengthen, and develop and to which I -even 3 months is not enough time in which to might. This is an important reason why we .shall continue to dedicate my life. frame a good, workable, and fair law, es have been able to do that part of our job It is exactly because our system of free pecially in a time of high tension, emotion, with relative smoothness, speed, and with a competitive enterprise means too much to and accelerated economic change. minimum amount of dislocation. There is me, and because I believe American enter · But what happens in a period of 3 months no question, if we were similarly prepared prise unfettered by controls and Govern or 7 or 8 months after the incidence of an for economic mobilization, we would be able ment regulation functions at its optimum economic emergency? The very evil :which to do that part of our job more emciently, that I am intr"oducing the Economic Sta we try to control or stop makes its greatest effectively, and with considerably less dis• bilization Act of ·1953 today. headway. People become panicky and in location. No doubt, this sounds somewhat strange an effort to avoid the higher prices which At the present time our economy is in and paradoxical. But I have only decided they expect, rush out and clean off the fairly good economic shape. Prices are in ·to introduce the bill after a great deal of shelves, hoard for anticipated needs; sav fairly normal relationship. We are close thoughtful deliberation based ·on lorig ex ings are converted into goods, and the . enough in tune to controls to know a good ·perience working on the subject of eco. .stream of spending expands in an accel . deal about them and their administration nomic controls as a member Of the Senate erated and explosive fashion. in the Congress, in the Executive Offices, and Banking and· Currency Committee, and as Business does likewise. It' expands greatly throughout industry. We are not being one who had personal experience-with con its buying, accumulates excessive inventories moved by emotion or fearing imminent tr.ols as an industrialist during World War ·and sells them at higher and higher prices. changes in our economy, or in our consumer II. . -The price mechanism almost ceases to func needs, or do we expect radical -changes in ·You will recall when I first carrie to th~ tion for consumers and businessmen . alike. our industrial outlook. We have a law that · Senate in 1945 I fought hard along with .Prices become ·a secondary consideration and ·is operating and being tested daily. We know · other Senators to' amend the price-control the inflationary spiral is already viciously lts faults and. its good points, if anyone will ·bill so that it would operate more equitably, destr~ying our purchasing power and. in- · agree such a law can have good points. It efficiently, and without unnecessary inter .creasing the· cost of our defense production seems to me, therefore, that this is the ideal ference with our production machinery. .and our cost of Gov.ernment. time for Congress to legislate on the subject You will remember, also, when it appeared In June 1950, when the Korean conillct of controls, free as it is fro~ the stress, strain, to many of us that the price-control pro began, industry was producing at very -high and tensions of a great national emergency. -gram was doing more harm than good to levels and consumer 'demand was being fair Moreover, as I indicated before, 3 months our production and distribution machinery ly well satisfied. There were no backlogs is hardly enough time in which to write an -that I wl.th .others .sought to abolish it. ·of demand like there were after World War . economic controls law from scratch. Even More recently you will recallmy efforts in ·II. and no cut-backs. were called for in the starting, as .I do, pretty much from our pres attempting to amend the Defense Produc . production of consumer durables. ·Yet the ent la"-', and with all the advantages the tion Act so that it would be administered vicious inflationary process took place pretty present time offers in writing such a law, more fairly and so as to insure that produc much in the manner I just described. From the existence of such a law on a standby . tion would not be discouraged. ·June 1950 to January 1951 when price con- basis would give those whQ would be admin No one who understands and appreciates trols were finally imposed, the cost of living istering it, and those business and labor our American economic system, no Member had increased by 7 percent. It is estimated advisory groups who would be constantly of this illustrous body-all good independent ·that this increase cost the American citizens . meeting and working together with them, and free Americans-likes or prefers a sys approxi~at~ly . $18,000,000,009. time and opportunity to perfect recommen tem of price and. production controls op More important than the money it cost dations for changes in the .law or in regu erating over our e'?onomy. A great major- 1s the human suffering which is imneces• lations :Which might be issued if such a law 733 CONGRESSIONAL RECORD- SENATE ever were invoked. Congress would receive the average citizen seemed satisfied that The necessity for a stand-by bill will expire monthly reports on the agency's operations prices were not going up very much more, with our present emergency and therefore and would continuously be kept informed and iriunediately the enormous pressure on titles I, II, IV, V, VI expire 90 days after the and educated with respect to the various consumer durables began to drop off. With end of hostilities in Korea. Title III is ex· problems that arise or might develop if the the outlook for prices fairly stable, the aver. tended for a definite period of 1 year and ex controls were invoked. In my conception age consumer purchased only what he pires June 30, 1954. Title VII which contains such a standby agency's important functions needed, and again he began to save rather general provisions and is needed when any and that of the advisory committees would than spend his surplus. It is this psychologi· other titles of the act are in effect expires at be constantly to study and agreE! on ways cal effect that price control has on the con the end of hostilities in Korea or June 30, and means of perfecting the basic statute sumer that encourages him to save rather 1954, whichever event occurs last. . and develop efficient, effective, and fair means than spend. This in turn reduces the flow In introducing this bill, I am aware that of administering it. of income into consumer-goods industries there are many who have long shared my It seems to me that industry and agricul· and relieves the marginal pressures on prices point of view on most economic and social ture, most of all, would benefit from such a for these goods. At the same time the in· problems who may disagree with me at this standby program. During previous times creased savings serve as a source of invest point. To those, all I can say is that my industry and agriculture had no .such op· ment capital for defense industries. All this views have not changed. My experience and portunity to help in framing the law or to makes price controls an effective instrument my study of this subject have increased assist to any great extent in helping to de· of economic stability in periods of emer· my knowledge about it. In sponsoring this velop and formulate the regulations. Under gency. legislation, it is my most profound and con· the pressure of time, it was almost impos A stand-by law would cause consumers and sidered ·opinion 'that I am laying the best sible, even if the administration had desired businessmen to have that same sense of as groundwork I know of to further promote it, for business and agricultural groups to surance that prices would not be allowed to and facilitate the system of free competi· play such an important and constructive a spiral upward, and as a result they would tive. enterprise, wbich has been the basis of part in the controls program. Speed was of not rush out with the first sign of an emer my whole economic philosophy. It would the very essence. A standby type of organi gency in panic to stock up on all they could take a great deal less courage and would zation and a standby type of law will afford get their hands on. Thus prices would tend result in a great deal less criticism, no doubt, the time and the opportunity for business to to remain more stable, as would savings, and if I chose not to introduce such a bill. But share its know-how with the administra the very need for invoking a control program I believe it is my responsibility and my duty tion and the Congress in the formulation, might be avoided by the· very confidence it as a Senator and one who is privileged to revision, administration, and operation of would engender. If controls finally had to serve as the chairman of the Banking and such a law, should it ever be invoked .. With be invoked, fear of price increases would be Currency Committee to bring this bill be· out such a law, this is for all practical pur· considerably lessened and so to would the fore you for your thoughtful deliberation poses impossible. problem of controlling such prices. and action. In addition to this, industry and agricul I have devoted most of my remarks, thus The bill does not contain an the provisions ture and labor representatives can become far, to my philosophy and approach to the that I would prefer it to have, nor does it acquainted with the key staff that will op problem of price, wage, and salary control, exclude many of the provisions that I would erate the program, if such a time should ·ever and the need for and the good practical prefer to see out of the bill. It probably can arrive; and they ca n be familiar with the sense of a stand-by system of such controls. be improved in many, many respects; but I organizational structure and the full mean The reason I have done so is because this is believe it does offer a reasonable and satis ing of the law and the regulations issued the more controversial part of my proposal factory basis upon which you can begin under it. In a word, millions of man-days and, if I m ay say, the side which I have thinking and acting. It is modeled after the of study, frustrating search for information, heard very little argument for, and which, it most recent bill Congress enacted last session. advice, and decision would be spared, not to seems to me, ought to get some very serious If an my efforts but result in greater mention the millions of man-days saved consideration. It should be given especially knowledge, if not action, my purpose will business, the administration. and the Con serious consideration by those who have been have been served. gress in attempting to straighten out and re most unsatisfied with controls. I think a vise what bad already been done improperly stand-by cont rol law offers the best means SUMMARY OF THE ECONOMIC STABU.IZATION or unfairly. that I know of by which the most irritating ACT OF 1953 Also, industry, in the process of working and unsatisfactory effects of controls can be with such a standby agency, in constantly The bill permits price, wage, and rent con eliminated or considerably lessened. trols to expire April 30, 1953, and allocation thinking about such problems that might Very briefly, the bill would continue until arise, would keep itself educated with re and other controls to expire June 30, 1953, June 30, 1954, the various loan, purchase, as provided in the Defense Production Act spect to the law and its operation and would, loan-guaranty, and development programs therefore, be able to· adjust itself to its re Amendments of 1952. The loan, loan· guar of financial aid to business and would like anty, purchase, and development programs quirements more efficiently and with less cost wise extend the Small Defense Plants Admin in time and money. Personnel who, because providing financial aid to defense industries, ist ration. auth.orized in title III of the Defense Pro· of their knowledge of the law and of the It would continue the priority and alloca standby agency, would not orily be valuable duction Act of 1950, as amended, and the tions programs of title I, and the power of Small Defense Plants Administration, au to the industry involved, but such personnel condemnation and requisition in title II, of would also be listed in the roster of quali thorized in section 714 of the Defense Pro the Defense Production Act, on a stand-by duction Act of 1950, as amended, are con fied persons available in the event of activa basis. The authority in these titles could tion of controls as provided in the bill. tinued until June 30, 1954. only be invoked after consultation with the The bill continues on a stand-by basis With industry being forced, as it were, to Nat ional Advisory Council, except in the case meet with those studying price, wage, and until 90 days after the termination of hos of war, in which event the President may act tilities in the Korean conflict power to es salary trends and other conditions in the immediately in respect to all titles. various industries and in the economy gen tablish priorities and make allocations, to erally, it is quite conceivable that many of · Similarly, rent control would be continued requisition and condemn, to control prices, the problems that might arise and eventu on a stand-by basis with the National Ad rents, consumer and real estate credit, and ally lead to the imposition of controls could ·visory Council advice necessary to invoke it to stabilize wages, salaries, and other com be foreseen and adjusted, or taken care of initially on critical defense areas. Its ·ad pensation. volur tarily without the need for invoking vice would also be necessary when rent con The bill recognizes in the declaration o! the law. trols are initially invoked on defense rental policy that direct controls are incompatible areas. With the bill providing, as it does, a Na with the American free enterprise system tional Advisory Council composed of distin Credit control would likewise be on a and that, since prices are now generally in guished representatives of business, industry, . stand-by basis and could be invoked initially normal relationship, direct controls are no agriculture, labor, the military, and the con on consumer goods (regulation W) only after .longer necessary to maintain· economic sumers, all of whom are subject to Senate consulting the National Advisory Council. stability. But it further recognizes that confirmation, to advise the President on the A similar procedure would be required for the ever-present threat of further Commu imposition of each of the controls in the the activation of real-estate credit control nist aggression and that the speedy destruc· different titles of the bill and to advise the (regulation X). · tive nature of war requires swift Executive President generally on policies relating to Price and wage controls would be con action. Controls should only be invoked if general mobilization, I am sure you will agree tinued on a stand-by basis and the necessity an emergency develops involving serious eco that we have provided sufficient opportunity of advising with the National Advisory Coun· nomic dislocations threatening the national for the President to secure the bes~ advice cil would be required before invoking in· security and welfare. available before taking any action. I am itially ·either selective or general controls. A National Advisory Council composed satisfied that such a council will prevent With a few exceptions the price and wage of members to be appointed by the Presi· any hasty or unwise decisions in the use of provisions are similar to those in the present dent, subject to Senate confirmation, who any of the authority granted in the bill. act. It is left to Congress to decide on the are representative of business and industry, The most important functions price, wage, representative base period for adjusting ceil· agriculture, labor, the military, and con and salary controls can perform, in my opin· ing prices after the freeze which would be sumers, is established by the bill. ion, is to give assurance to the consumers imposed on prices and wages on the business Before the President can initially invoke that prices will remain relatively stable. day preceding the imposition of ~he control any controls under any title of the bill he is pnce the freeze took effect in January ~951• o.t: controls. required to consult with this council. The 1953 . CONGRESSIONAL_RECORD ~ - SENATE 73l council Is also authorized to ·advise· the finds to be representative of those prevailing EXECUTIVE RFPORT OF A President on general policies relating to eco ·in a base period, the dates of which are left nomic ·mobilization. • blank. The bill provides that no such ceil COMMITTEE The President is required to consult with ·ings shall be established for the purpose of The following favorable report of a the National Advisory Council before he can controlling profits. nom,ination was submitted: · initially impose s-elective controls on prices A number of the technical and administra and wages and again before he can impose _tive provisions which were added to the De By Mr. CARLSON, from the Committee general controls on prices and wages. Like fense Production Act in 1951 and 1952 to ·on Post Office and Civil Service: wise, the President is required to consult correct what the Congress believed were in · Robert W. Burgess, Of New York to be with the National Advisory Council before equities resulting from the administration Director of the Census. ' he can initially impose rent controls in an of the act or were caused by _particular situa The VICE PRESIDENT. If there be area declared to be a critical defense area tions or circumstances which existed at the and again before he can initially impose rent time were not included in the provisions of . no further reports of committees the controls in a rental area that had taken this bill. Accordingly, the Capehart, Her clerk will proceed to state the r{omi.:. affirmativ·e action in requesting that the area long, and FUgate amendments and certain nations on the Executive Calendar. remain under Federal rent control prior to minor administrative and technical amend ·September 30, 1952. He . would, similarly, ments were not included in this bill. have to consult with the Council before he · The Wage Stabilization Board authorized DIPLOMATIC AND FOREIGN SERVICE can impose either regulation X or regf:tla by the bill has substantially the same powers tion W. Only in the event that a state of ·as in the Defense Production Act of 1950, as The legislative cferk read the nomi war exists can the President invoke any of amended. The bill provides that t'he 15 nation of Winthrop W. Aldrich to be the controls without consulting the National members shall be representative of the gen Ambassador Extraordinary and Pleni Advisory Council. eral public, labor, business, and industry, potentiary of the United States of Amer The priorities and allocations title (I), leaving the exact composition of the. Board ica to Great Britain. and the requisitioning and condemnation for the President to determine. The VICE PRESIDENT. The ques power title (II), except for the trigger device This bill authorizes the President to en tion is, Will the Senate advise and con of consulting with the National Advisory courage and promote voluntary action by Lent to this nomination? Council, are the same as in the Defense business, agriculture·, labor, ' and the con Production Act of 1950, as amended. The sumer, but he is not required to utilize the Mr. LANGER. Mr. President I an credit control title (VI) is substantially the voluntary procedure before invoking the con ticipate that there will be a voice ~ote on same as title VI of the Defense Production trol provisions. this nomination, and I should like. the Act of 1950 as originally enacted, except for record to show that the senior Senator the trigger device. Title III (expansion of Mr. DOUGLAS. Mr. President, will from North Dakota voted against it. productive capacity and supply) is the same the Senator from Indiana yield for a Mr. MORSE. Mr. President I should as title III of the Defense Production Act question? like to have the chairman of the 'Com of 1950, as am-ended, but it'" also contains Mr. CAPEHART. I yield. provisions relating to the Small Defense Mr. DOUGLAS. May I ask the Sena mittee on Foreign Relations give us a Plants Administration which are idlmtical statement regarding-Mr. Aldrich, setting tor from Indiana whether the bill .which forth why, in the opinion of the com with the provisions of section 714 of th.e he is introducing contains in it a pro Defense Production Act of 1950. This title mittee, Mr. Aldrich is qualified to serve is operative after June 30, 1953, without use vision for stand-by legislation on price as Ambassador to Great Britain. ·of the trigger device. It expires on June 30, and-wage controls in the event of a national .·emergency? Mr. WILEY. Mr. President, I am very 1954. The protest, court review, appeal, ·and _happy to address myself to the request penalt y provisions are subE:tantially the same Mr. CAPEHART. That is exactly as in the Defense Production Act of 1950, as what it does contain. It does contain made by the distinguished Senator from amended. such a provision. Oregon. The price. and wage stabilization title (IV), Mr. DOUGLAS. With respect to prices The Committee on Foreign Relations except for : the added trigger device, follows and wage_s? . to which was referred the nomination of in general the provisions of the Defense Pro Mr. Wint}?.rop W. Aldrich, of New York, ducti-on Act of 1950, as amended. The spe Mr. CAPEHART. Yes; and also with 'respect to rents. . . to be Ambassador Extraordinary and cial provisions for .agricultural commodities Plenipotentiary of the United States of are the same exoept for certain provisions Mr. DOUGLAS. Does that not differ in connection with milk ceiling prices. The somewhat from the m zssage on the America to ·Great Britain, has approved bill does not contain the 1952 amendment state of the Union which the President the nomination and recommends that it excluding fresh and processed fruits and has delivered today? · be confirmed by the Senate. vegetables from controls. Mr. CAPEHART. It certainly does to Mr. ·Winthrop W. Aldrich is a son of As stand-by agencies the OPS and WSB that extent. former Senator Nelson W. Aldrich, of would be required constantly to study and Rhode Island. He is a graduate of evaluate wage and price trends, to formu Harvard University, from which he re:. late and improve general regulation tech THE CALENDAR-BILL PASSED OVER ceived the degree of bachelor of arts in niques of controls, patterns of organization 1907 and the degree of bachelor of laws ~nd procedure in case of future use, to main The VICE PRESIDENT. Under Sen tain a roster of qualified persons who would ate rule VIII, a call of the calendar is in 1910. He received the degree o( doc be.available in the event of the activation of mandatory on Monday, unless suspend tor of laws from Colgate University in controls; ·to advise- the President generally ed by unanimous consent: There is one 1937; from NortJ:leastern University, in with respect to the proper administl;'ation of 1938; from Washington and Jefferson ·the act, and to make monthly and special bill on the calendar, which the clerk will state by title. College in 1939; from Brown University reports to Congress on its activities and its in 1944; from Columbia University in recommendations. The President is given The LEGISLATIVE CLERK. A bill, S. 242, the power, after affirmative action on his ·to provide . for the establishment of a 1946; from New York University in 1950, part, to continue any existing control . Veterans' Administration domiciliary and from Georgetown University in 1952. agencies and also to create any new agencies ·facility at Fort Logan, Colo: Mr. Aldrich's nomination was referred he deems necessary during the period when The VICE PRESIDENT. Is there ob to the committee on January 23, 1953. controls are in a stand-by status. jection to the present consideration of He appeared at a hearing held on Janu Whenever tfle Prestdent takes any price or the bill? · · ary 29, at which time he· very frankly wage action, selectively or generally, he is re Mr. TAFT. I ask that the bill go over. discussed his atiai:i.·s and his point of . quired to freeze, either selectively or gen view with the. committee. The vote of erally as the case may be, prices and wages I do ·not think any. notice was given .of the· committee recommending confirma . at the levels prevailing on the business day it. It iS no doubt a meritorious bill, but preceding the day on which the action was I ask that it go over. tion of his nomination was unanimous, taken. ·He is then required within 90 days, The VICE PRESIDENT. The biil will with the exception of one vote, that of ' if possible, but in any event within 6 months, _go over. the Senator from North Dakota [Mr. . to adjust such price ceiling or ceilings and LANGER]. wages. As I said, Mr. Aldrich is a son of for In 'adjusting such price ceiling or ceilings EXECUTIVE SESSION mer .s~:nator N~l.so~ W. Aldriph, of Rhode .and wages the President is authorized in Mr. TAFT. I move that the Senate . accordance with the same general require ·Island. He became president, and later ments of the.Defense Production Act to take proceed to the consideration of execu chairman-of the board, of Chase National ·into consideration comparable prices, rentals, tive· business. · Bank of New York. Mr. Aldrich has had -commissions, margin-s, rates, fees, charge·s The motion was agreed to; and the .extensive experience in international af and allowances, and comparable salaries, -Senate proceeded .to the consideration fairs generally, and in Great Britain in wages, and other compensation which he of executive business. p~rtictilar, which the committee believes CONGRESSIONAL RECORJ)- SENATE February 2 makes him well qualified to represent York; trustee, Rockefeller Foundation: trus .. very important-and· serve the best in the United States in London. tee, General Education Board; overseer, Har terests of his country. vard College; founder and president, British Mr. MORSE. Mr. President, does the War Relief Society, during World War II; I particularly inquired of Mr. Aldrich Senator mind being interrupted, or president, National War Fund, World War II; in relation to a statement made on the would he prefer to finish his statement chairman, President Ti:uman's Committee on fioor of the Senate to the effect that before yielding for a question? I will Financing Foreign Trade, from its foundation many of our posts are over-staffed, and follow the Senator's pleasure. until it was disbanded (1945-50); president, he stated that that was one of the things Mr. WILEY. I yield. i~!~~;:ional Chamber of Commerce, which he would look into. He said that Mr. MORSE. Can the Senator tell the he himself felt that we should not apply Senate anything in regard to any inter Mr. WILEY. Mr. ;Aldrich resigned meat-ax methods, but that if there is national holdings on the part of the bank· from those various positions. His only excess overhead he will see to it that the of which Mr. Aldrich has been president? present connections are as trustee of the situation is properly corrected. Mr. WILEY. Yes. That was gone Riverside Presbyterian Church, trustee I have personally known the distin into very thoroughly. As I recall, the of Presbyterian Hospital, president of guished gentleman only 2 or 3 weeks. I testimony shows that the bank has no the visiting committee of Harvard Grad .. met him when I was at the United Na international holdings, and that all it ua te School of Business Administration tiops. That was my first acquaintance does in its London office is limited to ·and as a member of the Advisory Coun~ with him. I met him again when he dealings back and forth, as it were~ over cil of the Department of Commerce. was a guest at the home of Mr. Dulles, the counter. Mr. Aldrich occupied all of the follow where I happened to be at the time. I Mr. MORSE. Did the committee go ing positions or offices until the time of saw him the third time in Washington. into the question of the holdings of some his nomination to be Ambassador to My impression of him is that in him we of the major clients of the bank ih inter Great Britain, from ·which positions or have·a man who is competent and able national cartels? offices he has now resigned. He was and who has a selfless desire to serve the Mr. WILEY. I recall no questions rel chairman of the board of the Chase Na Republic in this period. I wish we had ative-thereto, but as Mr. Aldrich has sold tional Bank of the City of New York a more of that type of person in positions his interest, and, as I recall, has no fur director of the American Telephone' & of trust. ther interest in the bank except his Telegraph Co., director of the Interna Mr. LANGER. Mr. President, will the interest in a fund from which he derives tional Paper Co., director of the Metro Senator from Wisconsin yield? a pension, that matter, as I understand, politan Life Insurance Co., director of Mr. WILEY. I yield. would not have any bearing at this time. the Westinghouse Electric Corp., direc Mr. LANGER. Will the Senator also Mr. MORSE. The Senator expresses tor of the New York Central Railroad tell -us that Mr. Aldrich has been deco the view of the committee that, insofar Co., president and director of the Chase rated by the British Government? as no present holdings on the part of Mr. Safe Deposit Co., director of the Discount Mr. WILEY. There was evidence of Aldrich himself are found to exist, the Corp., trustee of the Tuskegee Normal a certain type of humanitarian service fact that he has been president of the and Industrial Institute, treasurer and he had rendered. As I recall, there was bank, advising with clients, as bankers member of the executive committee of a joint relief society, in which France do, in regard to their great economic em the Welfare Council of New York ·vice and England participated, and of which pires that spread around the world in president of the National Institute ~f So he was the founder and president. Then no way creates any problem as to the cial Sciences, director of the American the society was divided, and he engaged wisdom of this appointment. It creates Cancer Society, director of the Nassau in the selfless work of war relief during no affinity of interest on the part of Mr. Hospital Association, trustee of Barnard World War II, and for that service he Aldrich in the perpetuation of a sys College, and president of the board of was given some decoration. I have for tem of international cartels, which in managers of the Home for Incurables. gotten just what it was. the opinion of the junior Senator from He has. had military service, and has .I again say, Mr. President, that, in my Oregon perhaps are ·a very serious threat been a lieutenant commander in the humble opinion, he is the type of man to the preservation of peace in the world. United States Naval Reserve from 1930 who undertakes to fill a position not for Mr. WILEY. I am not informed as to to date. . what he can get out of it, but for what the existence of what the Senator claims I might state further, Mr. President, he can give. We need more and more of that he was president of the National that type of person. to be facts. I may say that· Mr. Aldrich, .Mr. MORSE. Mr. President, my dis contrary to the accepted opinion, is a Chamber of Commerce from 1945 to 1947. sent will be very· brief. relatively poor man. His total estate I He resigned from the positions which I u~derstand, is worth about $300,000, a~ I have just enumerated when he was nom I think it is most unfortunate, in fact, thmk the testimony shows. That does inated to be Ambassador to Great Brit I think it is very undiplomatic of the not inclu~e - the pension fund. ain. Eisenhower administration, to nominate for the Ambassador's post in London the As to the bank's having dealings with ~e committ~e discussed with Mr. international concerns, an institution head of a great financial institution, the Aldrich some of the problems, particu Chase' National Bank, which, right1y' or ·such as the · Chase National Bank un larly economic probl~ms, which will con~ wrongly, has come to symbolize in many doubtedly does have~ But what sur ~ront him i~ London, and was favorably areas of the world American dollar diplo prise~ me was that the testimony shows Impressed with his grasp of world mone macy. I think it is very unfortunate and th~t I~ had very few foreign offices. I tary and economic affairs. The commit thmk It has an office in Canada and an tee believes Mr. Aldrich is well quali is anything but diplomatic to appoint to office in London. There were inquiries fied to make an outstanding contribution the ambassadorship to the British Em ·as to other places, where- it had no offices. to Anglo-American relations, and it rec pire a man who in the minds of maay The Senator from Nort:ti Dakota corrects ommends that the Senate confirm his Englishmen, and particularly those who me as to the office in Canada. It had no nomination promptly. are to be fo,und in the party affiliations of the Laborites, is looked up<1n as a symbol offices in Canada. I stand corrected as Mr. President, it has been stated that to that. of economic exploitation of peoples in Mr. Aldrich was the head of the .Chase the backward areas of the world. I think Mr. Aldrich was admitted to the New National Bank. In this world where it is most unfortunate to appoint to this York bar in 1912. l ask unanimous con problems are so complex, as has just particular position, when we are trying sent to have printed in the RECORD at been outlined by the President of the to develop the unity we need in Western this point a list of positions or offices United States in his speech before the Europe to meet the great thr~at of Rus formerly held by Mr: Aldrich. joint session of the Congress, it is well sian communism, a man who personifies The VICE PRESIDENT. Is there ob that America should have the best brains rightly or wrongly, in the eyes of many jection? in k~y positions. Through the years Mr. Europeans, the American dollar sign. There being no objection, the list was Aldrich has been privileged to serve in Because I think it is an undiplomatic ordered to be printed in the RECORD, as various J?Ositions, and the fact that he appointment . I shall vote against con follows: has accumulated merely $300,000 indi ·firmation of the nomination. I think Formerly .member of law firms Byrne, cates-that he is the type of man we need Altirich has too much self-interest in the Cutcheon & Taylor and Murray, Aldrich & in positions of trust and of leadership. appointment. Webb; president, Equitable Trust Co. of New · I believe he is a man who can go to . Th~ VI~E PRESIDENT. The ques York; director, Federal Reserve Bank of New London-and, after ·all, London is still tion 1s, Will the Senate advise and con- 1953 CONGRESSIONAL RECORD- S::rNATE .733 sent to the nomination of Winthrop W. have wealth of his own, he is a crook. I indicated. So far as my judgment is Aldrich to be Ambassador Extraordinary do not like to hear that kind of talk on concerned, the address was full of some and Plenipotentiary of the United States the :floor of the Seriate. interesting preachments, and some sound of America to Great Britain? I feel that if there is anything that principles. I only pray that it will not Mr. MURRAY. Mr. President, may I should be said about the nomination of take us down toward the goal of war, inquire if I correctly understood the sen Mr. Aldrich, it is that the great President which I say because I think the Presi ator from Wisconsin to say that Mr. of the United States has seen fit to send dent's discussion of Formosa was most Aldrich is worth only $300,000? his nomination to the Senate for confir unfortunate. I would have been very Mr. WILEY. That is my recollection. mation. We have listened to the Presi happy to have the President of the He estimated that his capital investment dent today, and we must say .that he United States discuss the Formosa issue was approximately $300,000. showed a pretty thorough grasp of the after he had given us evidence that there Mr. MURRAY. At one time he was issues before the American people. also had been discussion with our allies reputed to be a very wealthy man. Mr: MORSE. Mr. President, will the about it. Mr. WILEY. I know nothing about Senator yield? · We cannot avoid the fact that at the that. Mr. WILEY. In a moment. Let me time the United States became embroiled Mr. LANGER. Mr. President, will the carry through with my thought. in the Korean war, we moved very quick Senator from Wisconsin yield? I say that the President showed a good ly to make it a United Nations war. Al Mr. WILEY. I yield. grasp of the issues now confronting this though the oi~der of the then President Mr. LANGER. I think the Senator country. Among other things, he said he of the United States in regard to the from Montana is mistaken. The wife of wanted to get rid of the crookedness and use of the Seventh Fleet was in a very Mr. Aldrich is very wealthy. the graft that have come to light, and real sense a unilateral order, it was, nev Mr. MURRAY. I understand that Mr. he is choosing people whom he will hold ertheless, an order upon which our allies Aldrich also is very wealthy. He ap accountable to see that the house is have come to rely. peared before a committee of the Senate cleaned. So far as the major premise is con in 1938-- The President chose Mr. \Vilson to be cerned, let me make very clear that I am Mr. WILEY. Much water has gone Secretary of Defense. As the evidence anxious to have us take the steps neces over the dam since that time . . shows, Mr. Wil:son was a rich man, yet sary to guarantee the security of my Mr. MURRAY. I understand that, he set an example before the country ·by country at all times. · I recognize that but at that time he took a very strong offering to take a loss of $600,000. I the greatest threat to my country is Rus position against the economic reforms wonder how many of us, faced with a sia, and, further, I do not have any doubt which ha:l taken place in this country. similar situation, would be able to meet about what her intentions will be if Rus He said he was opposed to the Federal the issue squarely, as did Mr. Wilson. sia ever catches us off guard and finds deposit insurance system which we have He is the type of man we want to have us weak enough. In that event, she will adopted in this country, and he alEo criti in public office. Furthermore we want probably try to destroy us. That is why cized very severely the ,securities and men who can create wealth, who can I think it is so important that·we move Exchange Commission which undertoolc create jobs, who can bring about har- shoulder to shoulder with our allies on· · to regulate the New' York Stock Ex · mony. the whole international front. I do not change. At that time I asked him what_ Such a man is found in the person who see any escape from the fact that our his objection was, and. he said it went has had the experience Mr. Aldrich has allies have come to accept the program too far. I said, "Do you not think there had in various organizations, a man who · in Asia as an allied program. A part of form should go far enough to prevent. has engaged in eleemosynaty activities, that program has been the position we Wall Street from cheating the American for which he was decorated, a man who have taken in connection with the w:e people out of hundreds of millions of dol now says that, outside of his pension of the Seventh Fleet. l.ars by manipulations of stocks?'' - fund, he estimates the total market · What concerns me in following the He seemed to think that the stock ex-· value of his assets to be $300,000, a man· recommendation of the President ·today changes of the country should not be who has lived a long life, and who now is what is going to happen if Nationalist regulated. desires to render public service in one of China should decide that i.t wants to It seems to me we are selecting a man the key positions of our GQvernment. fight, and then moves on to the mainland who represents great wealth, and I am There was no claim by anyone that of China, is driven off, let us assume sure he must have great wealth himself. Mr. Aldrich was dishonest, that he did hypothetically for a moment, and then I know the Chase National Bank, be not have competency, that he was not goes back to Formosa. Are we going then cause of many of its manipulations, came efficient. There is nothing to that effect to give the Nationalists our protection? into very serious criticicm following the in the testimony. To the contrary, it ·could· not such an incident be used as. a crash in Wall Street in 1929. It sold was demonstrated by the Republicans basis for the claim on the part of some people its own stock across the country and the Democrats, including every that we are now expanding the war to and many American people were inftu member of the committee, that he was all of Asia, and be recognized as the spark enced into buying it at that time. The an ideal mali for the position to which that ignites the third world war? I .stock was manipulated in such a man he had been appointed, because all mem am still not willing to accept the view ner that people were induced to buy it, bers of the committee voted to confirm ·that we cannot· avoid such a war and thinking they were investing their money the nomination, except the Senator from neverth.eless defeat communjsm, but I in sound and safe stock, but very soon North Dakota [Mr. LANGER], who said he think we shall have to do it with our the stock began to go down. would not support confirmation of the allies, and not unilaterally. The Banking and Currency Commit nomination. That is the situation as it . I thought we had bottled up pretty well tee- of the Senate examined into the stands. for determination some time in the fu operations of those in control o( the I am now very happy to yield to the . ture the question of who has title to Chase National Bank and found many Senator from Oregon. Formosa; whose territory it is. I am very instances of manipulations. Mr. MORSE. Mr. President, I desire much concerned about the fact that in It seems to me, Mr. President, that to speak fm; a moment in my own right. the course of history-! do not know if Mr. Aldrich has only $300,000, he will The VICE PRESIDENT. The Senator whether it will be 50, 75, or 100 years not be able to represent very well the from Oregon is recognized. hence, or, as I hope, sooner than that- position of Ambassador to Great Britain, Mr. MORSE. I had not intended to there will be established a universal because it will probably require a little say anything, but the Senator from Wis system of international justice through more money than that if he is going consin [Mr. WILEY], by his comments, law, such as the great late Senator to represent the conservative, reaction- bas moved me to make a few remarks. from Michigan, Arthur Vandenberg, ary interests. · I am perfectly happy to have the Sen used to plead for on the :floor of the Mr. WILEY. Mr. President, I- am ator ·from Wisconsin express his views Senate, and which those of us who sorry the distinguished Senator from as to the address just delivered by the were his disciples and sat at his feet Montana has ftlled the RECORD with the President, but I do not wish to be in agreed was right in principle. He con statements he has just made. First, his cluded in the Senator's use of the plural tended that we must stand together attitude implies that because a man rep · ~ we," because I do not think the ad with the free nations. of the world and resents wealth, he is a crook; second, dress by the President showed any such keep ourselves so strong that Russia ~hat 'if he represents we:Uth, but does not thing as the Senator from Wisconsin has would not dare to attack us. We must 734 CONGRESSIONAL 'RECORD-- SENATE February. 2 stand together until Russia begins to dis program for ~ction in connection-with ever, that does not mean that we should integrate and dissolution begins within the Korean war. be silenced. Nor does it mean that' we her, and wedges of dissension can be Mr. CAPEHART. Mr. President, ·will should hesitate to suggest that he may driven between her and her satellites. the Senator yield for a question? be moving too fast, or that we should Eventually the jurisdiction over For Mr. MORSE. Not just now. not suggest that in the matter of Asiatic mosa should go to the World Court for I believe we need a common program of. policy he ought to confer with our allies. final settlement. However, that is prob action in respect to the Korean war, before. the fact rather than after the ably years away. such as, for example, an agreement on fact. What bothers me is the kind of recom all sides to stop the shipment of any · I now yield to the Senator from mendation the President of the United economic goods into China. I think we Indiana. · States made to the joint session of Con ought to sit down with our allies and see Mr. CAPEHART. Mr. President, I gress today. His address may play into how far we can get, if we can get any•. wonder if the Senator knows whether the hands of Russia, in that it may be where at all, on a common agreement as or not the President consulted with our the source of a wedge being driven among to the kind of blockade we are going to allies, and whether or not they were our allies over the Formosa issue. I carry on against the co-ast of China. informed of the statement which he was think we should stand united and not act In my judgment, we cannot afford to about to make to us. Does the Senator unilaterally on Asiatic problems. We run the risk .of unilateral action. What know. whether or not the President had should not proceed unilaterally, although worries me is that the kind of proposal an agreement with our allies that he it is true that our action in regard to the President makes today may result would follow the course of action which Formosa always has been our own action, in more and more unilateral action by he followed .today? I do not know. I am separate and distinct from United Na us. I do not believe we can do this job asking if the Senator knows. tions action. However, I believe it is also alone. I think we have _the right to call Mr. MORSE. I do not know; but I ·true that some of our allies in the United upon our allies to help us more than they certainly think that if he did he owed it Nations have come to consider the policy are helping us, and that we have the to us to tell· us. What a great strength of the United States in regard to For right to call upon our allies to stop ship that would have given to his recom mosa as a status quo situation on which ping into Red China goods which ciln be mendation. If the American people they could rely without consultation and used directly or indirectly to kill Amer could be told, at the same time, "This joint decision. So I am concerned about ican boys in Korea~ It is difficult, in my action is going to be a united action on that point in the President's address. judgment, to name any economic goods the part of the free nations of the world Of course, I have always said I am that are not of great assistance to Red in Asia," that would be one thing. But concerned about Yalta and about the China now, whether they be domestic if he did not see fit to tell us, in my serious mistakes which were made at goods which help the domestic economy, judgment, until he does tell us to the Yalta. But I think the cause of the mis or war munitions. contrary, I think it is fair to assume that takes made at Yalta, was, after all, ill Stopping their shipment is what is there has been no meeting of the minds ness. More than anything else, I think necessary by way of negotiation. Yet on the part of our associates within the it was illness that caused us to make. when we pic~ up the_ New York Times United Nations concerning this subject. many mistakes. . this morning we see, even before the If there had been such a meeting of the Mr. CAPEHART. Mr. President, will views expressed by the President in the m,inds, probably the press would have the Senator yield? _ joint se3sion this afternoon became of carried something about it. I know of Mr. MORSE. Not at pre~ent. ficial, disagreements among our allies in no formal representations which have Be that as it may, we made grave mis regard to this subject. I think the prob been made in this matter in any discus takes at Yalta. i think the whole matter lem should have been s~ttled in ad sions in the United Nations. in regard to the handling of China was vance. Let me make one fm~ ther observation one of the mistakes that goes back to So far as I am concerned-and I know with regard to the Aldrich appointment. Yalta. it is true of every other Member of the I join with the Senator from North My point is that, sooner or later, the Senate-once we mark out a course of Dakota [Mr. LANGER] in my opposition to world is going to have to decide what is action, once we have had full discussion the Aldrich appointment for the reasons to be done ·with Formosa. Certainly it and the decision has been made, then heretofore expressed. . is not American territory, and we do not it is the duty of each of us in the Con Mr. IVES. Mr. President, I cannot want it as American territory. How gress to help execute the program, no remain in my seat and hear a personal ever, I think it is sound foreign policy matter what the consequences may be. friend of mine maligned undeservedly. · to take the position that, for the time But in these critical days, when it comes I realize that the attacks which have being, in the interest of peace and the to the formation of policies, we all find been made against Mr. Aldrich have not. preservation of peace, we are not going to ourselves in a d~licate position in the been direct attacks, but by indirection let Formosa become the cause of war. carrying out of our legislatiye responsi they amount to almost the same thing, As I understood it, that was the posi-. bilities. Here in the Congress we have I have known Mr. Aldrich for many tion we had taken in regard to Formosa. the duty; it seems to me, to raise ques years. T:Qe people of New York City and We were hot going to let the Red Chi tions and suggest weaknesses which we of New York State know Mr. Aldrich. I nese take it to be used as a bastion for a may see in the program. I wish greater refer to my colleague across the aisle possible attack on our Pacific holdings opportunity could be provided us to do [Mr. LEHMAN] for correction, but never and our Pacific friends. The. President's these things in advance of the decisions. in my life have I heard the slightest criti proposal may be the course of action we I have been l}eard to say before, under cism of him with respect to his integrity should take now, but I say that I am wor other administrations, that it seems to or his honor. ried. I am worried about the Nationalist me that in the field of foreign policy too Mr. LEHMAN. Mr. President, will the Chinese and what they may do. I am frequently decisions are made and we in Senator yield? worried as to the effect of what they do the Legislature are confronted with an Mr. IVES. I certainly do. nay have upon us, and the effect of accomplished fact. Then when one· crit Mr. LEHMAN. The senior Senator what they may do may have upon the icizes, when be suggests that perhaps from New York .is entirely correct. l peace of the world. the decision is not so sound as some have known Mr. Aldrich for a great many So I hope that at least concurrently think, he opens himself to the danger 3f years, and I consider him a man of very with the President's decision to follow being charged with not cooperating with high character in every way and of great this course of action in Formosa he will his Government. ' ability. I do not believe that the at least discuss it with our allies, because I have made these remarks ·because objection which has been raised against I cannot think of anything worse than some of the things which the Senator him on the -ground that he has received to allow divisions of opinion to develop from Wisconsin said justfy them, in my a decoration from Great Britain should between ourselves and our allies. judgment, at least so far as concerns' serve as a basis for criticism. That dec-, In the main, Mr. President, in my opin-· separating myself from the general con oration was awarded to him because of. ion, there is not the unity of action· clusions which he has reached concern unusual service. In 1939 and 1940 the among the allies in Asia that there ought ing the Eisenhower speech. British people were fighting our battles. to be. I think there is need of conduct-" But if this is to be the policy, we must Mr. Aldrich was the head of what was. ing negotiations with our allies to see if get behind the policy and give the Presi then known as British War Relief. My we cannot get together on a common dent the support he must have. How- wife and the wife of the senior Senator 1953 CONGRESSIONAL RECORD- SENATE 735 from New York [Mr. IvEsJ were very wholeheartedly endorse the nomination I also was rather surprised at what I active in the Albany chapter of that or and I shall vote for confirmation. at least interpreted to be the argument ganization. They were in complete sym-. I now yield to the Senator from North of the Senator from Oregon [Mr. pathy with its efforts as was I. So I do Dakota. MoRsE], that, because the former Labor not think the circumstance of th~ deco Mr. LANGER. Was the Senator Government of Great Britain, or some ration should give ·any justificatiOn for from New York a delegate to the Re of its members, might object to a man criticism. It was evidence of the appre publican Convention in Chicago la~t of Mr. Aldrich's standing, he should not ciation and regard of the people of Great year? be accredited to the Court of St. James's. Britain. Mr. IVES. I was. Mr. President, since when are we select Mr. Aldrich has long been a gr~at Mr. LANGER. The Senator from ing our Ambassadors to represent the friend of Great Britain and he has tned New York must be familiar w,ith the Socialist form of government of Great to serve and strengthen the cause of de fact · that the Chicago Tribune, on :ts Britain. Our Ambassadors are sent mocracy in the west during the years front page, not once but several times, abroad to represent the people of the when it was under very great stress ~rom published items to the effect that Mr. United States. They are sent abroad to the Nazi hordes under the leadership of Aldrich's crowd-:-not he personally but represent the American constitutional Hitler. apparently with his consent-offered economic system. They are not sent · I will be glad· to vote for the confirma .$10,000 to a delegate, to another dele abroad to please the former Labor Gov tion of Winthrop Aldrich as Ambassa- gate $3,000, and so on, naming the dele- ernment of Great Britain. dor to Great Britain. ' gates. . Secondly, I was somewhat disturbed_ Mr. IVES. Does the Senator from Mr. IVES. I thank my distin~uisJ;ed by the remark of the distinguished Sen colle:1s-ue for that splendid contnbutwn North Dakota believe everything he ator from Montana [Mr. MuRRAY] in to this discussion. . reads in the newspapers? which he indicated on the floor of the To contin:ue, for my owh part, I pomt Mr. LANGER. That is not all. As a Senate that Mr. Aldrich's appointment out that the question which seems to member of the committee I voted against represented a point of view which fa the confirmation of the nomination of vored the exploitation, presumably, of have been raised in conne?tion with. the Mr. Aldrich. I voted against confirma confirmation .of Mr. Aldnch's no~m~ the people in more backward countr~es. tion is a question which seems, by mdi tion because when I asked about that I do not believe that such a suggestiOn rection to have' been raised also in con published statement, he said, "I saw it, represents the thinking of Mr. Aldrich nection: with the confirmation of other but I did not want to bring a libel suit." in any sense of the word, and I do not nominations which have come before the Mr. President, when is a libel suit justi"! know of anyone who will get any satis Senate. I refer to the question of the fied if it is not justified when a state faction out of a statement of that kind, material wealth of the nominee. ment such as that is made about a man unless it be the ·men in the Kremlin, for by a newspaper which is financially re use over their equiva!ent of the Voice I raise that point. Everybody knows sponsible? that I am a person of very moder~te of America, which might be the voi.ce ~f Mr. IVES. My answer is that the the Soviet Union wherever that v01ce IS circumstances. The point I raise IS: Chicago Tribune has printed at one · Have we in this Government of ours being broadcast. time or another editorially enough I also wish to discuss the question come to the condition where we must against me to justify my suing it for recognize for appointment to public serv raised by the distinguished senior Sen libel at any time that I might want to ator from North Dakota · [Mr. LANGER]. ice-and, of course, eventually it will also do so. I would not stoop to such a level. come to apply to recognition in the ma~ I think a careful examination of the I am sure that Mr. Aldrich has shown · hearings will show · that the distin-. 'ter of election-only persons who are, m that he is the kind of man who also effect, paupers? That is w~at it amounts guished Senator from Wisconsin [~r. would not stoop to it. WILEY], the chairman of the co.mmit to. Is the person who has been suc Mr. LANGER. Of course if he is cessful in business ·or. finance, and has tee on Foreign Relations, specifically willing to have a newspaper lie about asked Mr. Aldrich whether there was accumulated some wealth in the- proc- him and libel him without bringing suit . ess, to be condemned and not be per any basis in fact for the newspaper ar against the newspaper he is not the ticle to which reference has been made. mitted to hold public office on tJ;at kind of individual the senior Senator I think the record will show that ~e ground? I disagree wholeheartedly With from North Dakota is. that kind of philosophy, and I know that clearly indicated that there was no basis Mr. IVES. I base my position en in fact for it, regardless of his own per the country as a whole disagrees with it. tirely on the kind of newspaper involved. I went into this question during the sonal idea as to whether he should or Mr. LANGER. On three different oc should not file a libel suit. . last campaign because I was faced with casions I filed libel suits and in every ca~e it, at least by indirection, and I h~ndled I received a verdict, the last one being so much for the Aldrich nomination, it in a straightforward manner directly for $25,000 in settlement against a Bos for the confirmation of which I shall vote. with my audiences. Everywhere I we~t ton newspaper. The time has not come I believe that the President of the United I found a favorable response to the posi when a man in public life must stand states has a right to designate his Am tion I took then and have taken since. silent while being maligned and lied bassadors, who represent abroad the Likewise, in this instance, I think. we had about. I was particularly interested Chief Executive. better fotget all about any financial con when the nominee said that, although he At this time I wish to discuss very nection or any financial prosperity or considered doing so, he.had not brought briefly a statement made by the Sen well-being of the individual with respe?t a libel suit against the Chicago Tribune. ator from Oregon in regard to themes to the officft to whicJ: he has be~n nomi Mr. IVES. I have answered that mat sage delivered today by the President of nated by tlie President, provided the ter from my own standpoint. I do not the United States. I have particular ref function of that office in no way is con- expect to bring a libel suit against the erence to action concerning the neutral nected with any financial interest he Chicago Tribune or any similar news ization of Formosa. I differ quite con may have. papers. · siderably with the Senator from Oregon, As I understand, the appointment of Mr. KNOVJLAND. Mr. Presi!lent, I because it seems to me that since June an Ambassador to the Court of St. do not want time to pass, in view of 25, 1950, our Nation and a~l the Amer James's involves nothing which in any some discussion which has taken place ican people have been bearmg the over way should interfere with Mr. Aldrich's on the floor, without making a few ob whelming brunt of the fighting in Korea, qualification to serve in that capacity. servations. insofar as United Nations' members are Mr. LANGER. Mr. President, will First of all, I wish to associate myself concerned. Of course, the little Repub the Senator yield? with the remarks of the senior Senator lic of Korea has borne grievous wounds Mr. IVES. In my judgment he will from New York [Mr. IvEsJ. I agree that and has· suffered heavy casualties, far serve our country there with distinc it would be a very sad situation in this more than we have; but I am sure the tion. The very fact that he appears not country if an otherwise qualified· person Senate will recall that the Republic of to have accumulated much wealth him were to be foreclosed from representing Korea is not a member of the United self should in no way condemn him, and his Government· or serving in his Gov Nations, having been kept out of t.hat. the fact that he has been honest all his ernment either at home or abroad, mere body by the veto of the Soviet Umon. life should be a factor strongly sup ly becau'se he had been successful in a so, Mr. President, as we meet here in the porting his appointment. Therefore, I business or profession. Senate, more than .2Y2 years after the 736 CONGRESSIONAL 'RECORD- SENATE February 2". outbreak of hostilities in Korea, ·it is cor mosa question had been "put on ice" for anywhere else; nor·is the Senator from· rect to say that, insofar as the members a while. Although he conceded that California, in my opinion, any more cog_. of the United Nations are concerned, up p·erhaps we would not let the Chinese nizant than I am of the great danger to to today the United States of America. Communists take Formosa by force, at. freedom which Russian communism pre alone has supplied more than 90 percent least he implied that perhaps by a far sents to the world. of the manpower of the United Nations eastern Munich we would be willing to · What I did plead for earlier this after members used in Korea ·and has suffered hand over Formosa to the Chinese noon was a recognition of the importance more than 95 percent of the casualties in Communists if they would be good boys_ of our taking steps in our Asiatic policy Korea among forces of members of the· and would agree to an armistice in so as to make clear to our allies that we United Nations. · Korea. want more, not less, support from them Therefore it seems to me there is an Mr. President, I believe the American in Asia. If I correctly interpret the re• obligation upon the Government of the. people have determined once and for all marks of the Senator from California, United States to change some of the poli that we are not going to barter away the that is a part of his thesis, too, and has cies which have led to the present stale rights and freedoms of human beings at been for several years, as we may judge ment condition in Korea. Certainly, as· another Yalta or another Munich. I do by his statements on the floor of the the President very correctly pointed out, not believe that any administration Senate. The Senator from California. regardless of the . extent to which the worthy of the respect of the American and I have more than once stood to unilateral action we took in Korea on people or of the free . world could even gether in demanding greater aid in Asia; the 25th, 26th, and 27th days of July, consider entering into a negotiation with from our allies. That was the thesis of 1950, may have justified President Tru-· the Chinese Communists or the Russian the argument I tried to impress upon . man's action in neutralizing the island Communists with the result of bartering the Senate today. of Formosa or in preventing attacks away the rights of the 8,000,000 human I said that in my judgment the first from the mainland of China upon the beings on the Island of Formosa, who negotiation that is needed in connection island, such neutralizing action in rela represent the free people of China. Mr. with the foreign-policy problems which tion to Formosa lost its validity when President, if China is ever to be fr"ee, confront our country is a negotiation the Communist forces in China joined those 8,000,000 human beings are the with our allies, for I believe we must the forces in North Korea in the attack· seed corn for a free China which some bring to an end the statistics which have upon the Republic of Korea and upon day may exist on the mainland of China. been most correctly stated by the dis the United Nations forces then in Korea, Those who hold to the old ideas of tinguished Senator from California, where those United Nations forces were Yaltas and Munichs, the idea that one namely, that approximately 95 percent active in resisting the aggression from ean barter away the freedom of human of the United Nations' costs and casual North Korea. beings, may have gotten -some satisfac ties connected with the Korean war have As the President quite correctly tion under past administrations; but I been American costs and casualties. i pointed out, the action at that point was do not believe such persons will get any cannot reconcile· that situation with tantamount to the use of the United satisfaction under the administration of really unified allied action in Asia. ·States Navy to defend a part of Commu President Eisenhower.' I do not believe That is why I said earlier this after .. nist China at a time when Communist the American people would countenance noon, Mr. President, that I believe the China was attempting to destroy our. for a moment the surrender of the lives so-called unity among our allies in Asia own forces and was inflicting heavy cas and liberties of human bein~s by any is pretty much in name only; and that ualties upon our forces in Korea. I be such future Yaltas and Munichs. Fur is why I believe we should take our steps lieve that quite generally the American thermore, I believe that the President of in Asia very carefully until we can as .. people will applaud this forthright ac the United States made that point very certain whet.ner our United Nations' al.. tion on the part of the President of the clear in his message to the American lies have any intention of going along United States in at least not using the people arid to the Congress, when he said with us or whether we are going to have American Navy as an adjunct to the that even insofar as such · past secret to handle the entire Korean matter on Communist forces in Korea, for even if executive agreem::mts are concerned, he a unilateral basis. Believe me, Mr. Pres .. . the Republic of China does not move a would suggest to the Congress the pas ident, if it ever-becomes clear· that the · single soldier across the Formosa Straits, sage of . a joint resolution which would latter is all that is open to us in our the Communists will never know when make very clear that anything which endeavor to end the sacrifice of precious and under what circumstances the Re would result in a permanent surrender, American lives in Korea, then I will be public of China will move soldiers there. into the hands of a godless Communist found arguing for unilateral action. Therefore, instead of making it pos-. tyranny, of the lives and liberties of our All I tried to do was to express my s~ ble for the Chinese Communists to con fellow human beings would not be bind- concern and smile of my worries as to C::!ntrate their forces in Korea, as they ing upon the American people. · whether the action now proposed in con have been able to do, for the purpose of · Mr. MORSE. Mr. President, I wish nection with Formosa is such an action inflicting casualties upon our forces to comment on the remarks of the Sena as should be undertaken be~ore we at there and for the purpose of attempting tor from California [Mr. KNOWLAND]~ least have with our allies the kind of ne .. to destroy our forces there or to drive and thereafter I shall r-eturn to a con gotiations to which I referred, and which' them into the sea, if they can, the Chi sider~tion of the Aldrich nomination and · I have in. mind in connection with the nese Communists will have to begin to shall make some comments on the state whole Korean war. I said in my earlier move their forces along the long coast ment made by the Senator from New remarks that I thought we ought to find· line of China, some several thousand York [Mr. IvE:sJ. out from our allies what help we can get miles in length, never knowing at what . Of course, Mr. President, language from them in unity of actio·n, in ending point a commando raid may become a forms are always very interesting de the shipment into Red China of eco full-scale invasion and never knowing vices for leaving impressions or imputing nomic goods of any kind that will be of when, under those circumstances, they motives or even implying accusations assistance to Red China in the war now. will have to move some of their troops pertaining to others, even though with being carried on against us in Korea. and some of the materiel in order to out relationship in fact to the views such Such traffic ought to stop. It ought to oppose such an attack. Thus the Chi persons entertain or to the statements be stopped by our allies wlio may indulge nese Communists will have to bear a they have made. I am perfectly willing in it, and likewise we should see to it that great economic strain in order to build to let the official transcript of the CoN an end is brought to the activities of any coastal fortifications and new supply de- . GRESSIONAL RECORD .Of.my earlier-remarks· economic or business group in our coun .. pots, for they will never know when or answer the Senator from California in try· that uses any neutral ft.ag to trans .. where their lines of communications connection with the assertion I now ship to Red China . from neutral ports may be cut. As a result, it will become make, namely; that not a word in that goods manufactured in America and, more difficult for the Chinese Commu transcript will support, even by the most shipped in the first instance to such neu nists to concentrate their fo-rces ·for the elastic stretching of anyone's imagina tral ports. That ought to stop, because purpose of destroying our forces in tion, an interpretation to the effect that such traffic results in killing American Korea. I favor or propose ·a Munich in Asia. · boys in Korea. I am also a little disturbed by the Let me assure my friend, the Senator I do not yield to the Senator from statement by the Senator from Oregon from California, that he is no more op California; I do not yield to any other [Mr. MoRsE] that he thought the For- posed than I am to Munichs in Asia or Senator in my patriotic desire to take' 1953 CONGRESSIONAL RECORD·- SENATE .737 the steps necessary to bring· the· Korean· and interests in the· Pacific. "That is elusions· about an issue, even thm.igh· war to a successful conclusion; It can-· what I said, and that is what the REcoRD: their conclusions differ from the con-: not go on in the way it has been pro- will show when it is read tomorrow. Not elusions of other Members of the Senate, ceeding. All i tried to point out was a word or phrase did I use which justi-: or from the President or other officers of that I thought we ought to try to bring· ties, by the most ·elastic ·stretch of the the executive branch, i hope, Mr. Presi about this result through negotiations. imagination, the implication that I am dent, for the last time we have heard· with our allies first. I therefore ex- proposing a Munich with Red China or on the floor of the Senate the comment pressed worry and concern as to how. with Red Russia. that the mere expression of such views· the action recommended by the Presi- · What I am proposing, Mr. President, or criticisms will be interpreted as music· dent today is going to be interpreted in is that we get together with our allies to the ears of the Kremlin. That is not· certain of the capitals of the world and say to them, "Now, we are either in keeping with fair debate; it is not· among our allied nations. going to fish or cut bait; we are going in keeping, in my judgment, with our The New York Times this morning to find out what our unity of program is. system of republican government. Tac gave us a little forerunner of the reac- going to be." But I say again, Mr. Pres tics of that type are aimed at silencing· tion. I did not think it was very good, ident, that in my judgment the kind of· and muzzling speech, and there is no· nor that it was indicative of increasing action proposed by the President today place-in the Senate of the United States· unity. I thought the dispatches. in the would have been better undertaken after for such tactics. Times were written in terms of disunity, consultation with our allies . in advance. As for me, Mr. President-and I think· dissent, puzzlement, disagreement, and I repeat my assumption that there had it is true of my colleagues in the·senate doubt, rather than unity. That is the· been no consultation, or at least agree I will have to answer for myself when I way I judged their tenor. menton such action, because, had there think a comment of disagreement with Now let us take the reference of the been, I cannot 'imagine the President policy should be made, and I intend to Senator from California to Munich and of the United States failing to say that continue, unless attacked personally, to his intimation that apparently I thought. be had taken it up "with the foreign min make my comments above the level of· Formosa was "on ice." I want to be .fair isters of the following countries, and we. personal debate. with him, but he used language that are in agreement." I desire to say, Mr. President, that meant to me, at least, that he was seek- I said also earlier this afternoon that· I quite agree with-the Senator from Cali-· ing to give the impression that I was our original action was unilateral, not fornia [Mr. KNOWLAND] that in appoint favoring or advocating some kind of Mu- United Nations action, and we have the ing an ambassador to the ·Court of St. nich procedure with Red China and Red legal right to act unilaterally now, if we James's we are appointing someone to Russia over Formosa. Not at all, Mr: want to. The old question arises as to represent the American people. There· President. What I did say-and let the whether the exercise of one's ·technical is no question about that. I suppose that· RECORD speak for 'itself-and what I did 'legal right is the best way to settle a almost everyone agrees that when it point out was that I thought a great I_awsuit or whether to propose negotia comes to the appointment of an ambas many serious mistal{es had been made at· tions with one's allies might not be the sador we should take into account the. Yalta, and I said I thought the chief better way. · reaction to the appointment in foreign cause of them was illness. I said, fur- · So. Mr. President, in order to clinch· capitals. Although that is only one of, thermore, that I thought one of the great: the point I was making in regard to the factors involved, and I am not saying mistakes made at Yalta was in regard to· which I think the Senator from Call it should be the controlling factor, it· China policy. In fact, I am a little stir- f.ornia completely misunderstood my in certainly should be considered when we prised that the Senator from 'California tentions and my motives, I said earlier are appointing someone who, to a large. did not recall our joint action-his and '!;pis afternoon that Senator Vanden segment of the population, might be per mine-on the floor of the Senate, since berg's point was, that we have got to. sona non grata. That is not improving Yalta, when, as Senators from the west hold fast with our allies and have got relations between this cm.mtry and an coast, we both expressed our concern in to maintain a strong · mutual military,· other country. One of the functions of regard to Asiatic policy, and why we economic security program with our an ambassador is to try to improve un-· thought our country ought to adopt a · allies for as many years as necessary, derstandings and rela:tionships between· .stronger policy looking to the saving of· until division starts to break up the Rus this country and the nation to which China rather than losing it. I am sur- ~ian empire. I think that time will he is assigned.· prised that he did not recall some of the: come. Vandenberg very often said to us I quite agree with the Senator from criticisms I have made on the floor of · in conversation he did not see how they California that we should not refuse to the Senate in the past few years against.. could hold together for 2.5 years. I do appoint Mr. Aldrich to the Court of St.· the State Department for what I consid- not either, Mr. President, unless we let James's even if the Labor Party-and it. erect to have been a whole series and· them reverse the tables on us and drive has not-by formal resolution had said, chain of very bad judgments on the .part wedges between and among the allies. "We do not want him." In fact, that of that Department in connection with' That is my position on that issue, and kind of action would cause me, at least,· China policy. I_close that part of my remarks by say- to entertain' to some extent the feeling, 'What I tried to point out this after-. ing to the Senator from California that, "We will appoint whom we want to, and noon, Mr. President, was that ·at some as I have for the past several years, so if that is the way you feel about him, time in the future-and I said I did not· now do I stand with him and every other· you will get him any way." That is a know when; 50, 75, 100 years from now; . Senator on this flo?r, in following what normal reaction. · perhaps moner-the Formosa issue will . ever course of actiOn the facts show to But all I said, Mr. President, was that have to come before a great international be necessary to best protect the security there was a certain segment of the Brit tribunal, in keeping with the great prin- of my· country. But I think, Mr. Presi ish population, and I think it is best rep- ciple for which former Senator Vanden- dent,. we need to watch and to be on resented by members Qf the Labor Party, ben?; fought on the floor of the Senate guard against a tactic which I notice is who look upon Mr. Aldrich as a personi namely, a system of international jus~ · developing in debate in the Senate, fication of the dollar sign or dollar diplo-· tice through law. That is what I alluded namely, that if we suggest disagreement macy, rightly or wrongly. I think that to. I had reference to no proposal for· with a proposal of the administration, is true. If we check the British press, we any armistice ·talks with Red ·China or if we utter a criticism of the new Presi will find that sentiment is expressed by with Red Russia over Formosa. That dent, it is saiq that our words will be many persons. It is one of the factors would be furthest from my intention. pleasing to the men in the Kremlin. that should be taken into account. That· What I am trying to say, Mr. President, Mr. President, in keeping-with our sys- is all I said. is that until such time as the Formosa tern of government, if we are going to We do not know when political changes issue comes before an international court carry out our legislative functions, ex may take place in Great Britain, so I do· of justice for final disposition in keeping pressions of disagreement must be made not think we in the Senate of the United with principles of international law, I from time to time, and if vie feel that States should be too sure that we can· think it sound policy -for the United criticisms of the administration are due, follow the course of action proposed in states 'to say we are not going to let For- · we owe it to the country to make them. regard to our relations with Great Brit-· mosa fall into Communist hands, to . When men of good faith stand up and ain without giving at least some consid become a threa~ to American possessions e){press their honest judgment and con- eration to the attitude of the other major - XCIX--47 738 CONGRESSIONAL RECORD- SENATE February 2 political party in Great Britain. We the problem of the relations of General broad latitude in selecting his immediate should consider it as one of the factors. Motors to the Defense Establishment. advisers, and that a vote of confirma A word, Mr. President, in regard to That is the burden of my argument, tion should not seek to pass judgment what my good friend from New York Mr. President. on the abstract views or political philoso- [Mr. IvEsJ has said. I apparently can I have no objection to Mr. Aldrich be~ phy of the individual named by the not correctly use the English language; cause of any wealth he may have or may President to serve as a member of his apparently I am failing to make · clear not have. That is not the burden of my Cabinet. My vote of opposition was cast my meaning, but in all the comments objection to the confirmation of his reluctantly, too, since I did not wish to I. have made during the past few days I nomination. The burden of my objec- express any doubt--because I had none have tried to make clear, and once again tion is that he has been the head. of a as to Mr. Wilson's high character or his I shall try, that I am not objecting to any great financial international empire- determination to serve his country with of these nominees on the ground that the Chase National Banlc, with far-tl.ung complete loyalty and integrity. My vote they are wealthy men. I shall go along holdings. against the confirmation of Mr. Wilson's with any Member of the Senate to fight The Chase National Bank is both nomination was cast, Mr. President, after for and to protect the right of the praised and criticized in many parts of deep reflection, during which I arrived wealthy to participate in public service, the world-and I have been in many at the conclusion that Mr. Wilson's desig as well as the right of those who are not parts of the world. I have listened to nation and confjrmation were inconsist wealthy. There is not a sentence in any members of foreign governments discuss ent with both the spirit and the letter of my utterances in the past few days their economic problems. What we have of the law now on our statute books for that would justify anyone in reaching talked about in terms of diplomacy, I bidding .the service of any official of the the conclusion that I am against X, Y, have heard them discuss in terms of Government in a capacity in which there or Z because of the fact that he is a the exploitation of their natural re- would be a contl.ict of interest, direct or wealthy person. The tenor of my re sources by great American financial in- indirect, with his own personal interest. marks, the major thesis which I have terests, some of them the clients of this Mr. Wilson has such a conflict. sought to develop, is that we have had bank. Mr. President, the nomination of Mr. throughout our history the long-estab~ When we are discussing the building stevens to be secretary of the Army is lished policy that we do not confirm the up of diplomatic relations, I merely wish now before the senate. I have care nominations of men for high, responsible to express my concern about appointing fully read the record of testimony be Government positions if we can find di the president of the Chase National fore the Armed Services Committee, and rect or indirect economic interests which Ban;r to a position so important as the have studied all the available facts, based will accrue or may accrue to them, or one to which he has been nominated, largely on Mr. stevens' own statements which might prejudice their minds in considering the vital economic problems before the committee. I have looked performing the functions of the position we shall have to work out with our allies, again at the law. I arrive at the same to which they are appointed. including Great Britain, in the years conclusion as in the case of Mr. Charles Men of equal sincerity, and certainly immediately ahead. E. Wilson. I cannot vote for the con- with faith as good as mine, have dis~ That is why I mid it was my judg- firmation of Mr. Stevens' nomination. I agreed with my conclusions in regard to ment that the nomination of Mr. Aldrich shall vote against it, again with a deep the existence of an indirect interest on was a bad one, not because he was a man reluctance, especially because I have had the part of Wilson and Kyes. That is an of wealth, but because of his past activi- the privilege of knowing Mr. stevens honest difference of opinion. I have ties as the president of the Chase Na-. personally. Over the years I have met studied the record; I have taken my work tional Bank, and because of that bank's him on a number of occasions. I know in connection with these nominations activities in international economies. him to be a fine gentleman, of complete just as seriously and just as conscien~ That is my position, and I stand on it. integrity, loyalty, and good purpose. As tiously as has any other Member of the The PRESIDING OFFICER