6136 CONGRESSIONAL RECORD - HOUSE April 29 Engineers, and other Federal agencies and War I veterans. with reasonable income lim­ PETITIONS, ETC. departments; to the Committee on Public itation provision, but otherwise substantially Works. comparable to pension grants to veterans of Under clause 1 of rule XXII, petitions Also, memorial of the Legislature of the America's wars prior to World War I; to the and papers were laid on the Clerk's desk State of Maine, memorializing the President Committee on Veterans' Affairs. and referred as follows: and the Congress of the United States to 212. By Mr. BUSH: Petition of citizens of correct governmental policies which create South Williamsport, Pa., urging passage of unreasonable competitive disadvantages for PRIVATE BILLS AND RESOLUTIONS H. R. 3029 or any btll which will require the cotton textile industry; to the Commit .. Under clause 1 of rule XXII, private compulsory humane slaughter of animals in tee on Agriculture. packing and slaughter houses throughout Also, a memorial of the Legislature of the bills and resolutions were introduced and the United States; to the Committee on Agri­ State of Nebraska, memorializing the Presi­ severally referred as follows: culture. dent and the Congress of the United States By Mr. ALLEN of California (by 213. Also, additional petition of citizens of approving and supporting the decision of the request): Williamsport, Pa., urging passage of H. R. United States Supreme Court in the school H. R. 7075. A bill for the relief of Emmanuel 3029 or any bill which will require compulsory segregation cases; to the Committee on Edu­ De Leon; to the Committee on the Judiciary. humane slaughter of livestock and poultry cation and Labor. By Mr. BOGGS: in packinghouses and slaughter shops; to the Also, a memorial of the Legislature of the H. R. 7076. A bill for the relief of Mother Committee on Agriculture. State of New Jersey, memorializing the Pres­ Maria Teresa Eceizabarrena, Mother Teodora ident and the Congress of the United States · 214. Also, petition of District 17, Depart­ Sanchez Rodriguez., and Mot~er Maria del ment of Pennsylvania, the American Legion, to amend the Internal Revenue Code so as to Carmen Gonzalez Rodriguez; to the Commit­ extend the "conduit theory" to regulated in­ representing Legionnaires and Legion posts tee on the Judiciary. in several counties in central Pennsylvania, vestment companies that hold their assets in By Mr. DOYLE: State and local securities; to the Commit­ in support of legislation granting pensions to H. R. 7077. A bill for the relief of Kum veterans over the age of 65 who are financially tee on Ways and Means. Cha Lee; to the Committee on the Judiciary. Also, memorial of the Legislature of the unable to provide for themselves and fami· By Mr.FORD: lies; to the Committee on Veterans' Affairs. State of New Mexico, memorializing the Pres­ H. R. 7078. A bill for the relief of Albertine ident and the Congress of the United States 215. By Mr. CANNON: Petition of em­ Suzanne Girard Boyko; to the Committee on ployees of Globe-Union, Inc., Milwaukee, to enact legislation granting 10 million acres the Judiciary. of land in trust to this State for the pur­ Wis., re reduction of the budget; to the Com­ By Mr. SCH\VENGEL: mittee on Appropriations. pose of providing modern educational facili­ H. R. 7079. A bill for the relief of Vincenzo ties in institutions of higher learning in this Gangemi; to the Committee on the Judiciary. 216. By Mr. THOMPSON of New Jersey: State; to the Committee on Interior and By :Mr. ROBERTS: Resolution adopted by the members of the. Insular Affairs. H. R. 7080. A bill.for the relief of Mr. and township committee of Ewing Township, Also, memorial of the Legislature of the Mrs. Richard J. Smith; t:> the Committee on N. J., urging the adoption of legislation pro­ State of New York, memorializing the Pres­ the Judiciary. viding salary increases and personnel man­ ident and the Congress of the United States· By Mr. VURSELL: agement relations for postal employees; to to cooperate in honoring the memory of H. R. 7081. A bill to provide for the removal the Committee on Post Office and Civil Theodore Roosevelt and celebrating the cen­ of a cloud on the title to certain real prop­ Service. tennial anniversary of his birthday; to the erty located in the State of Illinois; to the 217. By the SPEAKER: Petition of Thomas Committee on the Judiciary. Committee on Government Operations. W. Armitage and Malcolm W. Black, Griswold Also, memorial of the Legislature of the By Mr. WILSON of California: & Co., Inc., New York, N. Y:, relative to sub­ State of Oregon, memorializing the President · H. R. 7082. A bill for the relief of Earl P. mitting certain suggestions coming as a and the Congress of the United States to Garoutte; to the Committee on the Judiciary. result of. having attended Joint Civilian make funds immediately available to finish H. R. 7083. A bill for the relief of Jesus Orientation Conference No. 23; . to the Com­ the planning and start construction of the Garcia; to the Committee on the Judiciary. mittee on Armed Services. flood control and hydroelectric facilities H. R. 7084. A bill for the relief of Ofelia. needed at the Green Peter project; to the Magdaleno de Mendez; to the Committee on 218. Also, petition of the director, Emer­ Committee on Appropriations. the Judiciary. gency Civil Liberties Committee, New York, Also, memorial of the Legislature o! the By Mr. ZABLOCKI: N. Y., relative to a grievance against the State of Oregon, memorializing the President H. R. 7085. A bill for the relief of Mrs. Un-American Activities Committee of the and the Congress of the United States to en­ Anna Beskidniak; to the Committee on the House of Representatives; to the Committee act legislation granting pension to World Judiciary. on the Jhdiciary.

EXTENSIONS OF REMARKS Food Fair Decision Threat to FTC operations of a supermarket grocery chain of though these unfair and · discriminatory .238 stores, any company, no matter what its practices are totally unrelated to tl~e dis­ primary line of business is, simply by estab­ tribution of meat and meat products, or for EXTENSION OF REMARKS lishing a small meatpacking operation can that matter, even to the distribution. of OF oust the FTC of jurisdiction over its activi­ agricultural products. ties. I have written a letter to the chairman "By vesting $2,700,000 in a meatpacking HON. EMANUEL CELLER of the Interstate and Foreign Commerce plant, Food Fair has been able to remove OF NEW YORK Committee urging him to take early action in FTC surveillance over the business of a order to resolve the statutory ambiguity that supermarket grocery cl;lain of 238 storeg with IN THE HOUSE OF REPRESENTATIVES gave rise to this condition and to affirm the gross sales of $475 million. This is a case Monday, April 29, 1957 FTC's jurisdiction over monopolistic prac­ where the tail wags the dog. tices of meatpackers. "Unless the Federal Trade Commission Mr. CELLER. Mr. Speaker, unde1· The text of my letter to Representative overrules its examiner, his decision leads to leave to extend my remarks, I wish to OREN HARRIS, chairman, Committee on In­ absurd results. Any company, no matter insert in the RECORD the following state­ terstate and Foreign Commerce, is as follows: what its primary line is, with a minimal in­ ment made by me and text of a letter to "On April 11, 1957, a hearing examiner for vestment in a meat packing operation can Representative OREN HARRIS, chairman, the Federal Trade Commission issued a rul­ deprive the Federal Trade Commission of Committee on Interstate and Foreign ing that underscores the urgency for early jurisdiction over its activities. Under the Commerce: consideration by the Interstate and Foreign examiner's ruling, this devi.ce could be used Commerce Committee of necessary legisla­ by tire producers, battery manufacturers. Foon FAIR DECISION THREAT TO FTC tion to close the loophole in the Federal automobile manufacturers, integrated oil The meatpackers' exemption from surveu .. Trade Commission Act created by the meat­ companies, or any other industrial giant, to lance by the Federal Trade Commission that packers' exemption. In the Food Fair Stores-, eliminate antitrust enforcement by the was created in the Packers' and Stockyards Inc. case (FTC Docket 6458), FTC's hearing Federal Trade Commissi.on over monopolistic Act of 1921 poses grave threats-to the con.. examiner ruled that Food Fair's ownership practices. that result in unfair and discrim­ tinued usefulness of the FTC and to its abil­ and operation o! a. meatpacking plant atory methods of competition_ ity to proceed against unfair and discrim .. ousted the Federal Trade Commission from "I hope that the hearing examiner ulti­ inatory practices by any American company. jurisdiction over unfair methods of compe .. mately is found to be in error. The fact that Under a ruling by a Federal Trade Com­ tition that violate the Federal Trade Com­ there is much to support hia interpretation mission hearing examiner in the Food Fair mission Act and discriminatory practices of the packers' ex.emption, however, further case, which involved unfair practices in the that violate the Robinson-Patman Act even demonstrates the need for Congress to clar- 1957 CONGRESSIONAL RECORD - HOUSE 6137 ify this statute and to affirm the jurisdic­ Eg·yptian refugees who are now seeking 4. President Eisenhower has proposed to tion of the Federal Trade Commission over a haven from communism and Nasser Congress that the McCarran-Walter Immi­ the activities of meatpackers. terrorism. We were particularly con­ gration and Nationality Act be liberalized so "As the law now stands, the Secretary of that unused immigration quotas could be Agriculture has jurisdiction to enforce the cerned because President Eisenhower transferred to country whose quotas are antitrust provisions of the Packers' and and Secretary of State Dulles have re­ oversubscribed. Do you favor or oppose this Stockyards Act of 1921. The Secretary of fused the same preference to the Egyp­ modification in the act? Favor, 47.4 per­ Agriculture, however, for more than 30 tian refugees as was given to the Hun­ cent; oppose, 41.7 percent; undecided, 10.9 yee.1·s has done nothing to enforce these garians. percent. antitrust provisions, even with respect to Generalissimo Trujillo assured us that 5. The present tight-money situation has those companies whose primary lines are he would be happy to do today what he resulted primarily from Government efforts slaughtering, processing, and selling meat to prevent inflation. If you had your choice, and meat products. It is obvious that the did in 1940. He said that the door of which of the following would you prefer: Secretary of Agriculture is neither equipped the Dominican Republic is open to all (a) High interest rates, with reasonable for nor qualified by experience to continue oppressed people, regardless of race, stability in prices-89.3 percent. these antitrust responsibilities. creed, or national origin and that 5,000 (b) Lower interest rates, but with higher For these reasons I urgently request that Jewish refugees can be admitted imme­ prices for the goods you buy-10.7 percent. you schedule early hearings on my bill, H. R. diately. He further advised us that he 6. It has been proposed that the Veterans' 5282, to return to the Federal Trade Com­ is making available sufficient fertile land Administration's interest rate on veterans' mission jurisdiction to prevent monopolistic for all those who will come. home loans be increased from 4Yz to 5 per­ acts and practices and other unlawful re­ cent to stimulate lending agencies to make straints by persons engaged in commerce in more VA home loans. Do you favor or oppose meat and meat products." this increase in the VA interest rate? Favor, 56.6 percent; oppose, 34.3 percent; undecided, Results of Questionnaire Mailed by Hon. 9.1 percent. John F. Baldwin, of California, to Resi­ 7. It has been proposed that the veterans' Unofficial Visit to the Jewish Colony at preference, which gives priority to veterans dents of the California Sixth District over nonveterans in Federal civilian employ­ Sosua in the Dominican Republic . ment, should not apply after a nonveteran has a minimum of 15 years' Federal service. EXTENSION OF REMARKS EXTENSION OF REMARKS In other words, a. nonveteran with more than OF 15 years of Federal civilian service could not OF be "bumped" (ousted from his job) , in case HON. JOHN F. BALDWIN, JR. of a reduction in force, by a veteran with HON. HERBERT ZELENKO less Federal civilian service. Would you fa­ OF NEW YORK OF CALIFORNIA vor or oppose such a limitation of the vet­ IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES erans' preference. Answers from all constituents: Favor, 78.8 Monday, April 29, 1957 Monday, April 29, 1957 percent; oppose, 21.8 percent; undecided, '*·4 Mr. ZELENKO. Mr. Speaker, dm·ing Mr. BALDWIN. Mr. Speaker, early percent. the Easter recess, accompanied by three this year I mailed a questionnaire to Answers from veterans: ~aver, 68.5 per­ of my distinguished colleagues, Hon. Is1- cent; oppose, 27.4 percent; undecided, 4.1 per­ every family of registered voters in the Answers from nonveterans: Favor, 80.1 per­ DORE DoLLINGER, of New York, Hon. EARL California Sixth Congressional District. cent; oppose, 15.8 percent; undecided, 4.1 per­ CHUDOFF, of Pennsylvania, and Hon. The response to this questionnaire was cent. SAMUEL N. FRIEDEL, of Maryland, I made the largest that I have ever received. Answers from Federal civilian employees an unofficial visit to the Jewish colony Many constituents not only answered the who are veterans: Favor, 44.6 percent; oppose, at Sosua in the Dominican Republic. questionnaire, but sent supplementary 51.6 percent; undecided, 3.8 percent. We were guests of the colony which was letters or wrote detailed comments on the Answers from Federal civilian employees established 17 years ago to provide a back of the questionnaire. I have spent who are nonveterans: Favor, 90.5 percent; haven for persons of the Jewish faith niany hours personally reading all of oppose, 8.6 percent; undecided, 0.9 percent. who were victims of Nazi horror and these comments, ~nd they have been most a. (Answered by residents of Solano inhumanity. County.) The Air Force has announced that helpful. I am firmly convinced that a it considers it essential to construct 500 addi­ We spent several days in Sosua where Congressman can better represent his tional housing units. at Travis Air Force Base we worshipped in their synagog, lived constitutents if he knows the views of all to provide adequately for military personnel in their homes, visited their farms, fac­ of these constituents, than if he has only stationed at the base, and for our national tories, school, and hospital. heard from pressure groups. defense. In order to do this, under present We found a happy and prosperous The tabulation of the questionnaire is law, the Air Force must first purchase the people in a thriving community. Those summarized below: existing 900 housing units at the base which who came there oppressed and forsaken were originally built under the Wherry Act. 1. A civil-rights bill is under consideration Such purchase would remove the Wherry are now proud citizens of tfie Dominican by Congress which would provide that any housing units from the tax rolls, depriving Republic, living in harmony with their intimidation or other effort t.o prevent a Solano County of approximately $45,000 in neighbors, respected and - welcomed citizen from legitimately voting in Federal property tax revenue per year. With these everywhere. elections is a Federal offense, and that the facts in mind, do you favor or oppose the The Sosua settlers told us, and we can United States Attorney General be given au­ Air Force proposed construction of the 500 report from· personal observation, that thority to prosecute such a violation. Do additional housing units? Favor, 36.8 per­ the promises made to them by Generalis­ you favor or oppose such a bill? Favor, 86.4 cent; oppose, 51 percent; undecided, 12.2 percent; oppose, 8.6 percent; undecided, 5 percent. simo Trujillo in 1940 have been fulfilled. percent. He has kept his word. 2. President Eisenhower has proposed that In Ciudad Trujillo, the capital of the Congress authorize him to use our Armed Dominican Republic, we ·Nitnessed a his­ Forces, if necessary, to protect the territorial I, Me, My, Mine tory making and significant event. integrity and political independence of any Middle Eastern nation requesting such aid, Alf red Rosenzweig, who came there against overt armed aggression from any na­ EXTENSION OF REMARKS with the small band of Hitler's victims, tion controlled by internationalcommunism. OF was sworn in as a Congressman of the Do you favor or oppose such authorization? Republic. He was the first of the Jewish Favor, 63.6 percent; oppose, 25.5 percent; un­ HON. CLARENCE CANNON faith to achieve this honor. To us this decided, 10.9 percent. OF MISSOURI was indicative of the freedom of oppor­ · 3. The Refugee Relief Act, which permit.­ IN THE HOUSE OF REPRESENTATIVES tunity, freedom of religious belief and ted admission into the United States of worship, and the absence of discrimina­ refugees, expired on December 31, 1956. Pro­ Monday, April 29, 1957 tion of any kind, because of race, creed, posals have been made that an extention of - Mr. CANNON. Mr. Speaker, under t):lis act be passed so that additional refugees leave to print I am enclosing correspond.. or national origin in the Dominican Re­ from Hungary and other countries might be public. admitted to this country. Do you favor or ence which is self-explanatory: We were invited to meet with General­ oppose such an extension? Favor, 41 per­ NEW YORK, N. Y., April 18, 1957. issimo Trujillo. In the course of our dis­ cent; oppose, 48.5 percent; undecided, 10.5 DEAR REPRESENTATIVE CANNON: May I re­ cussion, we mentioned the plight of the percent. spectfully registe1· the fact that as a voter, CIII--387 6138 CONGRESSIONAL RECORD - HOUSE April 29 I agree completely with the New York Times 'Ihe address follows: election of teachers nor in the prescribed editorial position on the irresponsibility and SPEECH OF HON. CLIFFORD DAVIS, OF TENNESSEE, courses of study. politically prompted motives behind your AT THE DEDICATION CEREMONIES FOR THE During Mr. Crump's administration as committee's actions in its un-thought­ E . H. CRUMP MEMORIAL', APRIL 21, 1957 mayor, he established the juvenile court in through cuts in appropriations. And may I the days when there were few courts of this further state my belief that the American Mr. Chairman, Your Honor the Mayor, jurisdiction in the land. This court to this public as a whole, having voted overwhelm­ gentlemen of the city commission, our be­ day has contributed immeasurably to the ingly for President Eisenhower and his pro­ loved Senator McKellar, and my friends: happiness of our youth, in the rehabilitation gram, will prove to have long memories It is with sincere humbleness that I have of those who have faltered, and in the re­ politically on your present actions. the honor and the high privilege to repre­ establishment of broken homes. So it is in Sincerely, sent so many on this Easter Sunday when these days when juvenile delinquency pre­ M.MCCRUM. we endeavor to pay tribute to that great sents a problem in so many concentrated American, the late Edward Hull Crump, to centers of population, we see but rare in­ APRIL 22, 1957. whose memory we are dedicating this ever- stances of juvenile crime in Memphis and DEAR SIR: In response to the accompany­ lasting reminder. · no investigating committee can find reason ing letter of April 18, 1957, who in the world Mr. Crump was my closest political adviser, to seek cause and effect here. would consider it politically expedient to counsellor, and friend. Countless others It was Mr. Crump who established the deny appropriations? called him such. He gathered unto himself City Beautiful Commission. He loved the I take my political life in my _hands every loyal friends in every walk of life. beautiful and insisted on the city's physical time I vote to cut these topheavy budgets. Humble in victory, without rancor in de­ cleanlinei:s. The national recognition given But I have been here so long that I can feat, he traveled far along life's road to great to the efforts of the current work of the afford to vote for the general welfare an d achievement. Service to others is the toll we City Beautiful Commission bears evidence of the solvency of the Government notwit h­ pay as we travel life's highway. For every its worthiness. standing the bludgeoning assaults from the mile along his way he paid in devoted service Looking around further we see park after lobbyists and special interests and self­ to his fellowman. park built upon his urging. I shall never seeking pressure groups who jam Washington There are many roads in life which one may forget walking with him through Hodges and the corridors of the Capitol and fill the follow. Some lead to quicksands of tyranny Field when he envisioned another place for mail with letters like yours. and some to freedom. Some roads lead to in­ athletic contests. The E. H. Crump Stadium With best wishes. dividual despair and others to happiness. will ever stand as a monument to his interest Very truly yours. Many roads lead to destinations unknown. in athletics. It has provided a great outdoor CLARENCE CANNON. Mr. Crump was always ready to use his legis­ arena not only for football and track events lative influence to erect a helpful sign for the but has accommodated great i·eUgious benefit of his fellow citizens traveling along gatherings on many occasions. life's many highways. He never hesitated to It took courage to force some transporta­ Speech of Hon. Clifford Davis, of Ten­ recommend the coercion of law to prevent tion companies to separate grades for safety the stronger travelers from. impeding the and easy movement of traffic, but the older nessee, at the Dedication Ceremonies progress of the weak. He used his voice and citizens within the hearing of my voice know for the E. H. Crump Memorial, April his vote to help those stranded in the march that he had that courage and in many in­ of life through no fault of their own. stances viaducts and subways were con­ 21, 1957 Mr. Crump was devoted to his mother, who structed. created a family atmosphere in which he One of the great monuments to his EXTENSION OF REMARKS breathed the highest ideals and was stimu­ memory is the beautiful Mississippi River lated to sustained and strenuous intellectual OF bridge, ·to which I shall always refer most and moral effort in order to conform to family. naturally as the E. H. Crump Bridge. The standards. His mother· had an abiding con­ late Mr. Thomas H. MacDonald, longtime HON. CLIFFORD DAVIS fidence in the future of her son, which OF TENNESSEE Commissioner of Public Roads, considered strongly influenced him to justify it. this the finest and most beautiful bridge built IN THE HOUSE O? REPRESENTATIVES Through three generations of this family under the many years of his administra­ the same could well be written. Mr. Crump Monday, April 29, ~957 tion. Mr. Crump influenced the building of had great pride in the three fine sons he and the beautiful approaches and the modern Mr. DAVIS of Tennessee. Mr. Speak­ his beloved wife brought to manhood and lighting facilities. He it was who had the er, the late Edward Hull Crump, who success. vision for this necessary gateway east and served as a Member of the House of While Mr. Crump was fundamentally con­ west. Senator MCKELLAR was a great in­ Representatives in the 72d and 73d servative, I cannot help but refer to him even strument in its successful conclusion, and in Congresses, was a dynamic political and so as a true liberal. As a review of his record a small way I was able to work with him civic leader in Memphis and the State of will show and the people more and more real­ and local officials and citizens of Memphis ize, he believed in the most freedom possible and Arkansas under the constant direction Tennessee for 5 decades. He was with­ for the individual consistent with orderly of Mr. Crump. out question a man of integrity, patriot­ society. The Memphis harbor project so important ism, and great mental capacity. He was For nearly a century and a half there was to the future of Memphis, which will add to beloved by the citizens of Memphis, who no memorial to Sir Christopher Wrenn, the our transportation needs and the making of i·ecognized that he served unselfishly to great English mathematician, architect, and more payrolls and the spread of wealth to build a happier and more prosperous scholar in St. Paul's, the great cathedral of everybody in Memphis, was a creation of his community. He was interested in the his building. At long last the famous epi­ own mind. This development already so far common man. His charities and help­ taph was composed. That inscription known along in its design and building is progress­ to so many of you who have visited the ing steadily toward the fullest possible fulness were extended quietly. Many cathedral simply says, "Beneath lies buried ill, accomplishment. who were discouraged, in financial the founder of this church and city, Chris­ Years ago he became interested in clean­ distress, or with personal sorrows found topher Wrenn, who lived more than 90 years ing up the bad conditions at our front door ready assistance from him. not for himself but for the public good. in the Wolf River channel. An interceptor When he left this life for a greater Reader, if you seek his monument, look sewer was built but we found that with the reward, the Council of Civic Clubs de­ around you." rapidly growing population and the develop­ cided that there should be an everlasting If there ever were a parallel in thought, ment of chemicals and industry still more memorial to his long and great life. A it lies in this tribute to the real builder of had to be done. One of his last monu­ perfectly beautiful life-sized statue was Memphis. How true it is that the hard work ments, not yet completed, is the cutting of erected in Overton Park, one of our oldest of Mr. Crump will ever live in the hearts of Wolf River directly into the main channel of generations unborn when we but look around. the Mississippi on the northern limits of our and most beautiful recreation and cul­ Though he never made a public speech, he city. I am pleased to advise that we are tural centers. made some of the deepest and finest utter­ nearing success in this matter and I have I had the very high privilege of mak­ ances in meetings with public delegations dedicated my best efforts as a member of the ing the address at the dedication of this and with his political supporters in the pri­ Committee on Public Works in the House, memorial on the last Easter Sunday. vacy of his well-appointed office. Though and as cha,irman of the Subcommittee on In this speech I sought to recite some of not admitting that he was a city planner, he Flood Control, to its earliest possible com­ his outstanding contributions to the life was constantly working for a bigger, happier, pletion. of our section of the country. cleaner, and more prosperous Memphis. All of you know that cheap power from He was interested in the building of schools the Tennessee Valley Authority has added By this permission to extend my re­ and we have but to look around to see these to our prosperity and has benefited our sec­ marks, I have the honor to include that fine physical structures. We must be re­ tion tremendously. Mr. Crump long ago humble effort that those who knew him minded that he insisted that the training was an advocate of cheap power and he in Washington and others may be able of our youth be left with skilled educators. never failed for a moment in supporting the to review his outstanding record. He tolerated no political influence in the philosophy and the objectives of TVA, and 1957· CONGRESSIONAL RECORD - HOUSE 6139- it. was he who builded another monument Born of a great intellect, Mr. Crump was which he or she is surrounded, is on the in insisting that Memphis purchase the dis­ a man of great faith, industry, and manifold block for testing. And so, we must under­ tribution system for electricity. Today under experiences. He had faith in his fellow man. stand, that if we are to accept the reins of wise management our light division is op­ That faith in others led them to put their leadership we can never turn them loose, erating on good business. principles and is trust in him. nor can we escape our public and private keeping up with the growth of Memphis He had great faith in our kind of govern­ responsibilities-and this applies to the mos t satisfactorily. ment. His life was dedicated to its pres­ great heroes in the world governments. He was interested in bringing natural gas ervation and its betterment. His compass Early in 1953 there disappeared from the to Memphis, and all of us know the tremen­ was the Constitution of his country; his ulti­ American scene a man who had been denied dous demands on our water system and the mate goal, a better life for his fellow man. his greatest desire. His father had been fine way in which those demands are met. To paraphrase Emerson, governments have President of the United States, and by right So we have another monument that will their development in the moral integrity and he should have been. Some felt he was live for all time in the distribution of public character of man. cheated-others, just defeated, in his aspira­ u t ilities by a city W€ll known throughout He believed in a life hereafter. tions of 1952. Without rancor or bitterness the country for its efficiency and its service One of the imperishable yearnings of the he returned to his seat in the United States to the people. And I should like to remind soul of man is to live beyond the day of Senate and his responsibilities as the major­ all of you that working with his long-time death. During life our departed leader cre­ ity leader. He worked unceasingly for a friend, Mr. E. W. Hale, former chairman of ated to himself an everlasting memorial. His party which had refused him, believing that our county commission, he established the services to his Government and, through he was working for a Nation that must sur­ same unselfish interest in county affairs as Government, to his fellow man will go on vive. In the midst of his efforts he was he did in purely city matters, and with a and on. Many hereafter, because of his en­ stricken by canper, but conti:nued despite recognized strong city and county govern­ nobling example, will gain inspiration to terrific physical pains and colossal discour­ ment cooperating in matters of State gov­ serve in the cause to which he gave· his full agements. In an article about him shortly ernment, we have reached a high place in devotion. That will be our lasting memorial after his death, a great publication 1 carried the family of cities. in his honor. an item entitled, "Heroic Last Days of Robert Taft." All of his colleagues knew that he On many occasions Mr. Crump surprised lived like a leader. The world knows now me by his knowledge of the Bible. Un­ that he died like a leader, and even in death doubtedly he read it with a deep earnestness he is an inspiration to great and good men and with an amazing understanding. He had Leadership and Responsibility everywhere. · had one of the. cleanest minds I have ever Most of you gathered here today are lead­ encountered. ers on an American campus. As a member An excellent conversationalist, he had EXTENSION OF REMARKS OF of the public, a citizen, and even as a Mem­ in his fine brain such a wealth of general ber of Congress, I have every right to expect information that he could talk accurately, HON. W. J. BRYAN DORN of you the highest type' of citizenship, out­ thoroughly, and exhaustively about any sub­ standing integrity, and highest morality in ject that could be suggested by anyone. OF SOUTH" CAROLINA your mature life. You have what it takes­ Mr. Crump was. most highly respected as IN THE HOUSE OF REPRESENTATIVES you have been recognized and honored for a Member of· the United States House of Monday, April 29, 1957 it and you cannot let us down now-you Representatives during his two terms of must not even let yourselves down. service. Mr. DORN of South Carolina. Mr. I mentioned morality, as a delineation be­ It must not be forgotten .that he was seven Speaker and ladies and gentlemen of the tween right and wrong, which is more im­ times a delegate to the Democratic National House, my South Carolina colleague, the portant to me than any other factor in the Conventions, a member of the Democratic Honorable ROBERT HEMPHILL, is in history of what man calls civilization. The State committee .for 4 years, .of the. Demo­ w. same moralities that today are necessary in. cratic National Committee for 9 years, a much demand as· a -public speaker be­ the huskings of the market are necessary regent of the Smithsonian Institution, ·as cause of his forthrightness and keen among the nations of the world. If America well as a successful mortgage-loan, real­ analysis of the problems facing our coun­ departs from her morals, or any high Gov­ est.ate, and investment banker. try and the world today. I commend to ernment official disregards them, we suffer. When I had pusiness at the White House the attention of the House the following We are suffering now from the burden­ some years ago, President Roosevelt opened splendid address delivered at a banquet some taxation from a decade of tension, from the conversation with an inquiry about Mr. of the Omicron Delta Kappa Leadership· a loss of friendship among our most honored Grump. He asked particularly that I urge. Society the University of South Caro­ and ancient of allies, from a loss of face .over him to come to· see him. Shortly before­ at the entire glope, all of which might be President Roosevelt's death, he telephoned lina: blamed on our departure from .moral truths; Mr. Crump and asked that he drop by to see LEADERSHIP AND RtiJSPONSIBILITY everybody knows that you cannot buy a him on a matter of some importance. Upon (Speech of Hon. ROBERT w. HEMPHILL, Mem­ friend-that is, everybody but the United returning from the visit, Mr. Crump said to ber of Congress, before Omicron Delta States Government. me, "Cliff, the President will not be with us Kappa Leadership Society, University of I suppose every speaker you have had has long." In less than a fortnight; · he · had South Caroliua, Columbia, S. C., April 25, had something to say about communism. passed on to his reward. I have often said 1957) My classification of communism is very that to many Mr. Crump seemed to have an Mr. President, distinguished guests, ladies simple. Communism is the devil's form of extraordinary ability to see far into the fu.:. and gei'ltlemen, some time ago I witnessed an government, and behind the Iron Curtain ture and oftentimes many of us felt he could argument between two.little sisters about an there is a hell on earth. History may blame see through a stone wall. office in a little club of their neighborhood. our governmental policies, our efforts to com­ He gave to all of us two mottoes which I The younger of the two sisters had been bine- good and evil at the same conference have never heard used by any other man. elected recording secretary and the older of table-as one of. the main causes of the They have been- most valuable to me per­ the two was making fun of the younger. growth of communism in a world that sonally. He said, "Plan your work and work The younger recording secretary lashed out: wanted freedom. your plan." And still another was, "Ob­ "You just don't understand, you see, this is Let us look at the Communist leadership serve, remember, and compare." If in every the first time I have ever been elected to any­ for a moment. Red China is the world's walk of life we could but observe a set of thing, and I am proud of it." 'biggest dope peddler.2 The government is in circumstances, remember them well, and The little wisdom expressed here might the business of dope and corruption. Red compare the relationship with a problem or well illustrate something so evident here as China is not responsible to world opinion, to emergency of the moment, we could save so well as in the Capital of the United States world morality, nor concerned with common many mistakes in decision. where I have some responsibilities. decency. Let us then compare the record of To me, this is not a sad moment. The Leadership and recognition are treasures Nationalist China on this evil. Before the man we honor had much too full a life for only a few attain. Every honor that you and war and before the Communists were en­ that. I must confess, however, a feeling of I receive, such as election to this fine organ­ couraged by our diplomatic stupidity, nar­ great loneliness and a heart filled with a ization, is not only a privilege, but has far­ cotics were decreasing in China, and to those longing for his counsel in these troublesome reaching effect and responsibility. The or­ who may criticize Chiang Kai-shek and his days. I like the works of the poet Edwin ganization of which you are a part-the. government, I wish to point out this one Markham: school where you have attained these hon­ fact as an evidence that the Chritianity he ors-the community from which you come­ and his wife believe in works among the peo­ "And when he fell in whirlwind, he went your families and their names-the church ples of the East. down to which you belong, and even your girl At the Geneva Conference in 1954 the As when a kingly cedar-green with friend, are now in the spotlight that your Communists were present a__present. too, boughs- success has gained for you . .Goes down with a great shout upon the The examination of a critical world ts 1 This Week magazine. hills never limited to a man or woman, regardless •Reader's Digest, February 1955. And I.eaves a lonesome space against the of age, who is in a coveted position; every­ 3 Reader's Digest, February 1955--Distrust sky.'~ thing he or she touches, and everything with Thy Neighbor as Thyself. :6140 CONGRESSIONAL RECORD - HOUSE April 29 . was the climate of fear and suspicion which Tax Cut for Low Income Taxpayers discuss my reasons for so doing and to always prevails when Communists get to­ urge Congress to give early and favorable gether. The Russians brought their own consideration to my bills. food and their own automobiles. The EXTENSION OF REMARKS Chinese Communists would not rent a house OF During the last session of Congress I which the Russians had previously considered. introduced a bill substantially identical because of fear of hidden microphones and HON. JOHN D. DINGELL to one of the bills that I introduced wiretapplngs. The American representatives OF MICHIGAN today. rode about in a rented automobile; but the IN THE HOUSE OF REPRESENTATIVES The House has cut budget requests of Communist had bulletproof cars. Which some $'i2 billion by over $1 billion to way of life will you and the world choose, Monday, April 29, 1957 date, with the big money bills yet to and in which direction will you leave the future-in the direction of morality or other­ Mr. DINGELL. Mr. Speaker, today I come. I insert here a table showing the wise? introduced two bills to provide a tax cut amount of the various cuts by the House I wish I could tell you that this lack of for low income taxpayers, and I rise to of Representatives in budget requests: appreciation of morality is confined to those who do not believe in our way of life or the Summary of 1-Ioitse action on appropriation estimates, 85th Cong., 1st sess. religions which have made this country great. Unfortunately, I cannot. On Saturday, April Percent reduc- 13~ we had no mail service. An American tion businessman had been given a high cabinet Appropriation bill Estimates Cumulative Billreduc- Cumulative estimates tion reduction post and responsibility for the operation of Bill Cumu- the Post Office Department. On January 10, lativo 1956.4 he had made a statement about his budget as follows: "To provide the American 1. Regular and supplcmen tals, people with an even better mail service," 1958: and "That tried and proven concepts of Treasury-Post Office ______$3, 965, 291, 000 $80, 364, 000 2.0 business management have been introduced. Interior_ ------615, 189, 700 -$4;4so;4so;7oo- 60, 794, 000 ---$i 4i; i58; 000- 11.8 --·--3~2 Grneral Government mat- into every phase of the Post Office Depart­ ters ______------_ 20, 921, 870 4, 501, 402, 570 4, 900, 500 146, 058, 500 23.4 3.2 ment's activities." Despite these statements Independent Offices ______5, 923, 195, 000 10, 424, 597, 570 537, 993, 300 684, 051, 800 9.0 6.5 Labor-Health, Education, we find that he had disobeyed the law and Welfare ______known as the "antideficiency law," and this 2, 981, 'Zi7, 58~ 13, 405, 875, 151 134, 446, 000 818, 497, 800 (.5 6.1 District of Columbia fact was confirmed by Democrats and Re­ (Federal payments publicans in debate which followed.5 In­ only) ______------____ 25, 504, 450 13, 431, 379, 601 3, 000, 000 821, 497, 800 11. 7 6.1 stead of applying the business methods re­ Commerce __------871, 513, 000 14, 302, 892, 601 217, 827, 940 1, 039, 325, 740 26.0 7. 2 quired by law and appropriating the funds State-Justice-Judiciary (as reported) ______665, 649, 802 14, 968, 542, 403 101, 850, 009 1, 141, 175, 749 ·15.3 7.6 by quarters sufficient to take care of any 2. Supplementals and deficien- threatened or anticipated emergency, the law cies, 1957: was violated and the American public was Urgent deficiency, 1957 ____ 382, 067, 500 4G, 977, 500 12. 3 Second urgent deficiency, -- ·------.. ·------alarmed, and properly disgusted, as it should 1957 (as reported) ______55, 100, 000 437, 167, 500 6, 110, 000 53, 087, 500 11.1 12.1 be. If the Congress needed any defense be­ 3. Total session ______15, 405, 709, \JOa 1, 194, 26a, 249 7. 7 cause they provided the funds requested by ------... ---· ------the Budget Bureau and the Post Office De­ partment, neither the Postmaster General, The President said recently that the Under this particular program the whose unbusinesslike methods were partially Budget Bureau has projected a surplus average worker in my district earning responsible, nor the Director of the Budget,6 of about $1.8 billion, based on figures pre­ the average wage of about $5,000 a year whose appalling ignorance was such that he ceding the cuts which Congress has with a wife and two children would re­ did not even know that the Post Office rev­ enue does not go to the Post Office, has had made to date. He further indicated ceive a tax cut of about $80 or 15.4 per­ the morality to admit the wrong. Great that another $1.8 billion can be saved cent. · For comparison among the var­ Americans of the past have been quick to through administrative economies. ious income levels I insert into the REC­ say, "I made a mistake." Shall we now cul­ which would mean an estimated surplus ORD a table of reduction of taxes for tivate leadership or leaders whose morality of $3.6 billion .. It does not appear either various representative · income groups is lacking or who have neither the courage unlikely or unreasonable to expect that with an average family of two children: nor the patriotism to admit mistake? there will be sufficient money available Married couple, 2 dependents The American people are quick to forgive for a tax cut of the kind which I propose a mistake, honestly admitted. I hope the in one of my two bills. Indeed, I have $3,000 ______$120 $40 $80 66. 7 leaders of the future will have the honor and 320 240 80 25.0 integrity the American people deserve. withheld introducing any tax cut legis­ $4,000_ ------islation until this time because I was $5,()()() ____ ------520 440 80 15.4 I have talked here of people, of nations, $10,000$8,000 ______------], 152 l,064 88 7. 6 not sure that responsible fiscal policy 1, 592 1, 504 88 6. 5 politics and morals, and of leaderships and $15,000 ___ ------2, 900 2, 780 120 4.1 responsibilities. The campus leaders of would permit an orderly reduction of the $25,000_ ------6,268 6, 116 152 2.4 Omicron Delta Kappa have furnished many national debt together with a reasonable $50,000_ ------18, 884 18, 648 236 1. 2 leaders in the maturing life of the Nation­ amount of tax relief. The first bill which $100,000_ ------51, 912 51, 624 288 .6 internationally, as well as on a State and $500,000_ ------402,456 402,092 364 .1 I have introduced provides for raising $1,000,000_ ------857, 456 857, 092 364 (1) community level. I wish I could look into individual exemptions from $600 to $700. the magic glass and see your place tomorrow. 1 Less than 0.05 percent. I believe each of you will be cognizant of the Revenue loss to the Federal Government responsibility you have. You must, if civili­ from this proposal will be $2.8 billion. The other bill which I have introduced zation is to flourish and continue, develop Under this proposal approximately 3.6 offers the taxpayer an increase in the .to an even greater extent than you already million people in the low-income tax individual exemption from ·$600 to $800 have your sense of morality, and your dedica­ group will be absolved from any tax lia­ per annum. This will be possible if the tion to the principle that there is no substi­ bility whatsoever. This is a very small tute for honor and trust, there is no justifica­ percentag·e of the number of taxpayers present rate of reduction in appropria­ t :on among men or among governments in this country, of which there are today tions is continued by Congress. The which superimposes the wrong way over the reason I say this is that at the present right way. about 81 million. Those who will be re­ rate of reduction of appropriations the And-lest you forget-a recording secre­ moved from the income-tax rolls are House will cut the Eisenhower budget by tary has a.n important position of leadership those who are least able to pay, and those slightly in excess of $4.7 billion. An in­ and responsibility. whose income tax is most expensive to crease in individual exemptions from I salute you as the patriots, the leaders, of process in the Bureau of Internal Reve­ $600 to $800 per year will reduce Treas­ the America of tomorrow. nue. Many of those removed from the Thank you for allowing me to come. ury revenues by about $5 billion. It will tax rolls actually pay less than the also have the effect of eliminating about amount that it costs the Government to 4 CONGRESSIONAL RECORD, April 12, 1957, 7.2 million of the low-income bracket p. 5583. process their return. Slightly over half taxpayers. "Ibid. of this tax cut will go to those who earn I want to underscore this, Mr. Speak­ 6 Bulletin-Comptroller General, United less than $5,000 a year, and who consti­ er, that independent of the economies States, issued April 13, 1957. tute the largest class· of taxpayers. being effected in the budget by reduc- 1 1957 CONGRESSIONAL RECORD - HOUSE :6141 I tions of appropriations by the House of knows better than most of us because tors required him to follow closely the ,

Representatives, Mr. Eisenhower and the he served in it here in Washington for work on diplomatic correspondence com- 1 Bureau of the Budget have anticipated more than a quarter of a century. I piled for publication. Important State ; a Government surplus of about $3.6 bil­ speak of Bryton Barron, the author of a papers, including Presidential proclama- J lion. This leaves ample room for reduc­ recent book entitled "Inside the State tjons, came across his desk in draft form : tion of taxes along the lines of either of Department,'' now in its second printing. for editorial attention. Further promo- i the 2 plans I have suggested in my 2 Mr. Barron and his wife reside at 401 tions fallowed for Mr. Barron, and he bills with a budget surplus of about $3.6 Waterway Drive, Falls Church, Va., but was given charge of preparing the De- . billion for reduction of the national debt. their friendship with Senators MUNDT partment's printing and binding esti­ This is the kind of tax cut which is and CASE and many other South Da­ mates, along with control of appropria­ most beneficial to the economy of this kotans has extended over the years. tions for those purposes, and partici­ country. It goes principally to those Both Mr. and Mrs. Barron have close pated in hearings before the Bureau of , who are in the lower income-tax brackets relatives in South Dakota, and Mrs. the Budget and congressional appropria­ and must immediately spend the pro­ Barron's brother, Louis Lillibridge, of tion committees. In 1940 Mr. Barron ;

ceeds to buy their daily needs. As such, Burke, S. Dak., is a farmer member of was promoted again, this time to Assist- 1 it will flow immediately into the chan­ the State legislature and a highly ant Chief of the Division of Research and nels of trade and create jobs and oppor­ i·espected citizen of the State. Publication, one of the largest then in tunity. Those in the upper brackets Bryton was reared by his pioneer the Department, and given another in­ benefit also by a reduction in taxes. In­ grandparents on a farm near Sioux Falls. crease in salary along with responsibility dustry and trade will have an increased Following his graduation from the high for day-to-day administration of the volume of money moving in pursuit of school there in 1916 at the head of his Division. goods and services. All will benefit. class, he entered the local Baptist col­ In 1944 Barron was again promoted in Such a tax cut will stimulate business lege. Soon he had captured nearly every salary and given an opportunity to re­ and industry, and it is not inconceivable honor on the campus, including his class build the Department's treaty staff and to expect that the stimulus will be such presidency and captainship of an unde­ restore treatymaking to its proper role in as to result in additional revenue to the feated debate team as well as the editor­ the conduct of foreign policy. He pur­ Federal Government so as to reduce esti­ ship of the college paper. He dropped sued the task with the utmost vigor, tak­ mated revenue loss. out for 1 year to earn money working ing steps to set the records in order and I urge early and favorable considera­ on the Argus-Leader, the leading news­ to train treaty technicians so that all tion on either of my two tax cut bills. paper in the State, and then returned future commitments for the Nation to compete for and win a Rhodes scholar­ would be properly drawn. In 1946 Bar­ ship in State competition. He entered ron was rewarded for his efforts with Oxford University in 1920, was awarded another grade increase in salary. In due Courage and Candor a diploma in economics and political time he initiated and obtained congres­ science in 1922, and then in 1923 became sional approval of legislation designed to EXTENSION OF REMARKS the first South Dakotan to obtain a re­ require prompt publication of all United OF search degree-bachelor of literature­ States treaties and agreements. He also at Oxford. inaugurated a looseleaf service to provide HON. E. Y. BERRY Bryton returned to Sioux Falls with for the maintenance of up-to-date OF SOUTH DAKOTA his bride in mid-1923 to become the treaty information, an innovation which · IN THE HOUSE OF REPRESENTATIVES Argus-Leader's editorial writer. Some was highly praised. Always a stern task­ Monday, April 29, 1957 years later the distinguished editor of master, Barron eventually ran into dis­ the paper, the late Charles M. Day, wrote content in his own staff. His fight Mr. BERRY. Mr. Speaker, under of Bryton that he was "a shark for work against the abuses of executive agree- : unanimous consent, I insert in the and a deep student of history and eco­ ments also made him enemies among RECORD a constructive statement re.­ nomics, earnest, loyal, and efficient." those who were running the Department garding a man who has through the In 1925 the Barrons set off for the at that time, and finally in 1950 he was years known the inside of the State Philippines on teaching . appointments. reassigned to other work. The year pre­ Department. Of Mr. Barron's record while in the vious a national biographical reference Because of certain adverse informa­ Orient, the director of education in Ma­ service had listed Bryton Barron as 1 tion in opposition to Bryton Barron, I nila wrote as follows on January 5, 1929: of the 10 outstanding men in the Depart­ present this statement covering the It was through Mr. Barron's effort that our ment. background of this man who knows the division of publications was created and or· After 20 years of the strain of adminis­ facts. ganized, and it was my pleasure to appoint trative responsibility, Barron welcomed All students of government realize him chief of this division. We have never the change in assignment, to historical that one of the greatest obstacles to had a man in the Philippine service in whom research, to which he could bring to bear economy, efficiency, and reform in public I had greater confidence. This is evidenced his familiarity with treaty problems, affairs is the reluctance of men and by the fact that he won such rapid promo· even though it involved a slight cut in women who possess a firsthand knowl­ ti on. * * * Mr. Barron is the type of man who is never satisfied unless he is doing salary. In this area his last and most edge of particular evils to come forward two men's work and doing it well. interesting project was the compilation and lay the facts on the line. Such re­ of papers dealing with Yalta and the luctance arises from a natural loyalty While in the Philippines, Mr. and Mrs. betrayal of American interests at that to old associates, combined with an Barron collaborated in the preparation 1945 meeting between Roosevelt, Church­ awareness of the fact that if one speaks of a series of textbooks on grammar and ill, and Stalin, with Alger Hiss in attend­ up he may bring down on his head no phonics. Over 150,000 copies have beez:i ance. end of calumny and abuse from those sold, and they are still in demand. Mr. Barron's last performance rating whom he may expose. The latter is a Mr. Barron entered the Department of in the Department, signed by the Chief particularly menacing prospect for the State in Washington on July 11, 1929, as of the Historical Division, G. Bernard lone citizen if those who would be af­ an editorial assistant at a salai·y of Noble, as well as by the Assistant Chief fected by his testimony happen to have $2,600. Inside of 6 months he had been of the Division, and dated January 14, the vast resources and machinery of advanced to chief of the section and 1954, read as follows: goveri:iment at their disposal to defame jumped 2 grades in salary. His work Overall work performance is very compe· their accuser and confuse the issue. on the official register of the Depart­ tent. Research is done carefully and pains- ; It is, therefore, appropriate that I ment brought to him data regarding the takingly; organization of material is logical; express the admiration which some of records of various individuals in the attention to technical details and security is us from South Dakota hold for a man service. His 'previous editorial experi­ entirely satisfactory. who spent his formative years in our ence enabled him to play a leading role state and who · has been forthright and in the inauguration and development of The review of Mr. Barron's work for vigorous in urging reform in an impor­ the Department's weekly publication, the the previous year, signed by the Chief of tant area of government, namely, the · Department of State Bulletin. Super­ the Policy studies Branch along with the State Department, which he probably vision of his staff of a score or more edi- Assistant Chief of the Division, and dated .6142 CONGRESSIONAL RECORD - HOUSE April 29. December 10, 1952, was to the same effect continued in responsible positions 1n your The Barron family has always been a as the foregoing, with the added com­ Department men and women who lack the well-knit unit. Those who fallow model ment that the review by Barron of the sturdy sense of dedication to our American aviation as a hobby knew the grouP­ work of others shows very good critical ideals. father, mother, daughter Bebe, and son insight. After this detail had been completed Roger-as the Flying Barrens, winners of The picture changed a few months and Mr. Barron had returned to his reg .. innumerable prizes and trophies in model later when Barron officially protested ular work, the Security Chief wrote the contests all over America. Bebe, now suppression of controversial documents. Assistant Secretary in charge of Barron's grown and married, has two sons; Roger, The division chief who had praised his work as follows: who was graduated from Princeton with work in the above-quoted 1954 signed I want you to know how deeply indebted honors, is also married and doing gradu· statement, but who was on record in I am to you for your generous understand~ ate work at MIT. As an outgrowth of opposition to release of the Yalta story, ing of my problems in making available to activity in the model hobby, Bryton was took steps to have Mr. Barron fired. The me the services of Mr. Bryton Barron, who in 1952 elected national secr~tary-treas­ attention which this patriot from South has made such a useful and practical con­ urer of the Academy of Model Aeronau­ Dakota focused on the attempt at sup .. tribution to the survey team studying the tics. Mrs. Barron, who for years aper· organization, direction, and administration pression resulted in the Yalta papers of the Bureau of Security and Consular Af­ ated a private school of her own in Fair­ being released in 1955, even though. fairs. I fully realize that the assignment to fax County, has helped many of the only in expurgated form, but Barron my office stretched out considerably longer young people in that area. paid for it with his job, having been than originally agreed upon, but the prob· Looking back over the record, it is clear forced to retire effective February 1, lems he faced were numerous and intricate, that Bryton Barron's years at the head of 1956. In some quarters Barron was ac .. and it was only due to his perseverance, long the Department's treaty staff, where he cused of insubordination in this connec .. hours of work, and devotion to his task that had to deal with policy questions and re· tion. It is his comment that the insubor· the job is completed as of this date. · sponsible officials in every area of our dination, if any, was on the part of those The rank and file of the employees in foreign policy, his 20 years of adminis­ who resisted prompt and unexpurgated. the Department of State indicated their trative experience in the Department at publication of significant documents as respect and confidence in Mr. Barron on a time when that agency's prestige was at requested by Congress and promised by frequent occasions and to an unusual its height, his years of working in the the Department-not on the part of degree. In his early years there he man­ secret archives of the Government, and those like himself who pressed to fulfill aged its first softball team, which had a the wealth of biographical and other data the program. It may be noted in pass .. most successful season, and he was subse­ which he has accumulated at first hand, ing that the compilations of documents quently elected manager of the basket­ render him peculiarly qualified to report on Teheran and Potsdam, conferences ball team. In 1935 he helped organize on conditions in the State Department. which paralleled the one held at Yalta the employees recreation association and In addition to his book, he has in re· and on which Department historians was elected its first president. He also cent months written magazine and news­ were working when Barron was busy on helped organize an employees union, paper articles on the subject, has been Yalta, have strangely enough not yet served for many years as an elected mem­ heard on both local and coast-to-coast been released to the American people. ber of its board of directors, and was des­ broadcasts, has indicated his readiness to Mr. Barron was interested in economy ignated a spokesman of the employees cooperate with congressional committees, and a housecleaning in the Department before the Bureau of the Budget and the and has .been in wide demand as a lee· long before he left the service. · Back in Civil Service Commission. It is particu­ turer before interested civic and patriotic 1952 Senator CASE of South Dakota, in larly noteworthy that he helped obtain groups. Commenting on his book, a writing to a fellow Senator, said of Mr. the charter for the State Department writer in National Review has aptly re­ Barron: Federal Credit Union and was for 8 marked that- He really knows the personnel of the De­ successive years elected to its board of Mr. Barron is the ·first man to report to the partment and has watched with dismay as .directors by the members of this organ­ American public on conditions inside the it became infiltrated with Reds and padded ization, the largest employee group in Forbidden City in Foggy Bottom. with people who were not needed. the Department. The board of directors Walter Trahan, veteran Washington He spoke of Mr. Barron as "a career in turn elected Mr. Barron treasurer and correspondent of the Chicago Tribune, man with an excellent reputation and a general manager of the union each of after commenting that the book was good educational background." After those years, a remarkable demonstration "packed with dynamite," went on to say the Republicans took office in 1953, Mr. cf the high esteem in which he was held that- Barron had several talks with Donald by his fell ow workers. This was again Lourie, the new Under Secretary for Ad­ reflected in a letter which came to him No one can question Barron's experience or ministration. Speaking on behalf of from an ·official of the credit union just qualifications for writing the inside story of several veteran employees who made it before Mr. Barron left the Department the State Department. a matter of record at the time that they and which concluded with these words: The Tablet, that stanchly patriotic sought no favors for themselves but were Your rmselfish service to this institution is weekly published in Brooklyn, has com­ willing to be detailed to help Mr. Lourie so well known to the membership that it mended Mr. Barron for his courage. And for a few months, Mr. Barron presented requires no repetition on my part. Never­ the Honorable Spruille Braden, who specific recommendations regarding per­ theless, I cannot let the opportunity pass served as an Ambassador to several sonnel and organizational changes in without reminding you that as a founder, Latin-American countries and as Assist­ cl1arter member, holder of No. 1 account, line with the 50-percent reduction in the treasurer during many formative years, and ant Secretary of State, has stated that he size of the Department which Secretary as my colleague on the board of directors, you can confirm much of what Mr. Barron Dulles was said at the time to be con­ have exercised a powerful and wholesome in­ has written as being absolutely accurate, sidering. Some changes were made fluence upon the affairs of this institution adding: along the line of those suggestions, but which now numbers upward of 8,000 ac­ Mr. Barron • • • has done a splendid pa .. opposition within the entrenched bu­ counts with accumulated assets of more than triotic job, and one that was much :neeeled. reaucracy prevented any thorough ¢2 million. In arguing for economy and a house· housecleaning. In his private life, Barron demon­ In line with the suggestion given, Mr. cleaning in the Department he knows so strated 20 years ago some of the resource· well, Bryton Barron contends that the Barron himself was detailed to Scott Mc­ fulness of pioneer ancestors when, lack· Leod's office on a special assignment ing money to buy a home, he took leave bureaucratic setup has become so big shortly after the new security officer was from office, borrowed to buy some mate­ that it is both unmanageable and a per­ appointed in early 1953. Senator MUNDT rials, and then proceeded to build with fect cover for undesirable elements. He wrote the Department congratulating it his own hands an 8-room house. Much wants only those employees retained who en the use being made of the services of of the interior he finished off working by the record are wholeheartedly in sup­ "tried, trusted, and able career men like nights and holidays. Years later, when port of the American way of life and our Mr. Barron," adding: the family moved to a new home on Lake sovereignty as a nation. Personal at­ I know that for years Mr. Baron has been Barcroft, the house that Barron had built tacks on him will not divert him from disturbed over some of the laxity which has 18 years before found a ready market. the basic issues. '1957, CONGRESSIONAL RECORD - HOUSE 6143 .Our Nation's Budgetary Affairs In addition to these income tax reduc­ Concern has properly been expressed that tions of the 1920's, many excise taxes, which a substantial reduction in the level of Gov­ retarded business expansion and were such ernment spending may produce a depressing EXTENSION OF REMARKS a nuisance to the consumer, were either re• influence on the national economy activity. OJ' duced or repealed. In order to offset such a trend the suggestion Thus by the reduction of Federal income has been made that a commensurate reduc­ HON. DANIEL A. REED taxes and war excise taxes in the post-World tion in Federal taxation should either pre­ OF NEW YORK War I period, business was stimulated, pros· cede or occur simultaneously with the cut in perity resulted, the budget was balanced. expenditures. In this connection the follow­ IN THE HOUSE OF REPRESENTATIVES and the national debt was reduced $10 billion ing is quoted from an article by Sumner H. Monday, April 29, 1957 in 10 years. Slichter appearing in the Harper's magazine In the annual report of the Secretary of of February 1953. He states the following as Mr. REED. Mr. Speaker, on April 7, the Treasury, that distinguished financier the seventh point in the eight-point program 1954, it was my privilege to speak before and statesman, the Honorable Andrew W. to combat recession, and I quote: the Republican Women's Conference Mellon, once said as follows: "The Treasury "(7) Cut taxes: If individuals and busi­ meeting in Washington, D. C. At that Department has always contended that in ness concerns raise their spending for goods time I spoke on the subject of the Re .. the long run the taxation of income at mod­ as fast as the Government cuts its defense publican record with respect to the man .. erate rates would be more productive than spending, the total demand for goods will not at very high rates. The soundness of this drop and there will be no recession. The agement of our Nation's fiscal affairs. I contention appears to have been borne out recently had occasion to review the re­ by the tax returns under the law of 1926, Government can help individuals and busi­ marks that I made at that time. · Those ness concerns to spend more by taking less for both the calendar years 1925 and 1926." from them in the form of taxes. Hence it is remarks are germane to the present-day However, we can look to a more recent important that cuts in defense spending be consideration of our Nation's budgetary period for another demonstl'ation of this Republican tax philosophy successfully in promptly matched by cuts in taxes." affairs. For the information of my col .. This wise counsel comes from one of the leagues in the House, I would like to in .. operation. I refer to the Republican 80th Congress. In the fall of 1945, the Bureau leading economists in our country who is the elude a portion of the remarks I made of the Budget estimated that the administra­ economic adviser to some of our Nation's on April 7, 1954, before that very won­ tion would have a deficit of over $30 billion largest businesses. derful meeting of Republican women for the fiscal year 1946. The economic con­ There is the documented record of the Re­ held in Washington, D. C.: dition of the Nation was marred by increas­ publican fiscal policy at work. That is the ing unemployment and the slowing down of Republican record of keeping faith with the ADDRESS BY THE HONORABLE DANIEL A. REED, American public by providing greater incen­ CHAIRMAN, HOUSE COMMITTEE ON WAYS AND business activity. The issue then was how would we accom­ tive for productive effort and successfully en­ MEANS, BEFORE THE REPUBLICAN WOMEN'S hancing the level of our national economy. CONFERENCE, APRIL 7, 1954 plish our objective of providing incentives for business expansion and to increase con­ The greatest beneficiaries of these Repub­ Tax reduction and reduced expenditures sumer purchasing power. The answer was lican measures have been the people of small have been the traditional fiscal policy of the partially supplied by the Revenue Act of incomes-wage earners, salaried men, and Republican Party as a formula for achieving 1945, which became effective January 1, men operating small individual business a balanced budget and debt retirement. Un­ 1946. It was then estimated that the reve­ enterprises. der this formula, the Republican Part.y has nue effect of this legislation would result dedicated itself to a high standard of living This Republican policy ts certainly a in a loss exceeding $5 ·billion. Congress marked departure from the philosophy pre­ for all the people under a peaceful, free en­ courageously passed the measure in spite of terprise system. vailing during the 20 years of Democratic the estimated deficit of $30 billion. Mr. rule, when 14 major revenue measures were It was my privilege to serve as a Member of Truman did not veto the bill. This legis­ Congress immediately after World War I. enacted into law increasing taxes. It is a lation gave relief to both individual and long overdue departure from the New and In 1919 the national debt was $26 billion. corporate taxpayers. The excess profits tax Taxes were at their highest level in the his­ Fair Deal programs of tax and tax, spend was repealed for 1946 and later years, and and spend. tory of the United States. Six or seven mil­ the capital stock tax was repealed. All of lion persons were idle and relied for their this tax reduction program of 1945 was done sustenance on soup kitchens organized in to forestall threatened economic recession. our cities. The issue confronting the Let us examine what happened to the Address by Hon. William F. Knowland, of American people at that time was how could Federal revenues under the stimulating the Nation's productivity and employment effects of this tax reduction. Our tax re­ California be stimulated. ceipts instead of being less than the pre­ The Republican Party's answer to that vious year increased an additional $300 mil­ EXTENSION OF REMARKS problem was not to plunge the Nation into lion and by 1948 the Federal revenues had OF further deficit financing nor were tax in­ increased by approximately $1.7 billion over creases resorted to in an effort to foster a 1946. Through this tax reduction a sched­ HON. WILLIAM F. KNOWLAND welfare State. uled budgetary deficit was converted· into The first thing the Republican Party did a surplus of $754 million for the fiscal year OF CALIFORNIA was to retrench and to eliminate nonessen­ 1947. In the Revenue Act of 1948, taxes IN THE SENATE OF THE UNITED STATES tial Federal expenditures. Next in 1919-20, were again reduced, and a surplus of $8.4 personal income taxes were reduced from billion resulted for fiscal year 1948. Monday, April 29, 1957 12 percent to 8 percent. In short, the tax record of the 80th Con­ Mr. KNOWLAND. Mr. President, I Again, in 1921-23, a cut was made in in­ gress reads succinctly as follows: Taxes ask unanimous consent to have printed dividual income taxes of married persons by were reduced $5 billion per year; the budget in the CONGRESSIONAL RECORD an ad­ increasing their personal exemption from was balanced for the first time in 17 years; dress I delivered before the Association $2,000 to $2,500 and the exemption for each $7 billion was paid on the national debt; a dependent was increased by $200 to $400. In surplus of $8.4 billion was left in the of American Physicians and Surgeons at 1924 the tax rate wa-s reduced from 8 per­ Treasury in 1948. I need not cite the tre­ Miami, Fla., on Friday evening, April 26, cent to 6 percent; also the tax for 1923 was mendous boom that occurred simultaneously 1957. reduced 25 percent by the 1924 act. in our economy. There being no objection, the address Again in the 1926 Revenue Act for the The dynamic qualities that can be fostered was ordered to be printed in the RECORD, years 1925-27, personal income taxes were in an economy by a sound tax program have as follows: reduced from 6 percent to 5 percent. The been demonstrated by developments in other exemption for a single person was increased countries of the world. Canada, Great Brit­ ADDRESS BY UNITED STATES SENATOR WILLIAM from $1,000 to $1,500 and the exemption for ain, and in fact most of the countries of free F. KNOWLAND, ASSOCIATION OF AMERICAN married couples was increased from $2,500 Europe, have launched a program of tax re­ PHYSICIANS AND SURGEONS, MIAMI, FLA,, to $3,500. In 1928, for the year 1929, the rate duction. As these countries have cast aside APRiL 26, 1957 I was reduced from 5 percent to 4 percent on their unsuccessful 'Ventures in varying forms We must not take our constitutional form personal income taxes. of controlled economies and socialism they of government or our free-ent~rprise system Did these tax reductions result in further have undertaken to lend impetus to private for granted. Neither fall into the category deficit financing and additions to the na­ enterprise and to restore the fiscal stability of something that can be locked in a safe tional debt? Not at all. The 6 or 7 million of their respective governments through tax deposit box and kept forever secure. Each idle people were put to work. One billion reduction. The theory behind this trend has generation must be prepared to make the dollars each year for 10 years was paid on the been · ably stated by the Honorable R. A. necessary sacrifices to maintain them that national debt. A great decade of prosperity Butler, England's distinguished Chancellor of our Founding Fathers were prepared to was enjoyed by the people during this peri· the Exchequer. when he said, "We must ban­ make 1n the first instance. od of tax reduction. The budget was bal• ish the hopeless feeling that extra etrort 1a Other nations have been or now are larger 1mced each year for 10 years. not worth while." in land area, in population, and in natural . 6144 CONGRESSIONAL RECORD - HOUSE April 29 resources. Yet they have not been ai,le to their means and to stop trespassing on the give anything to the States unless it first give to their people the freedom and the tax resources of the others. t akes it away from their citizens. standard of living Americans have enjoyed. Without a sound dollar and a solvent gov­ It ls in our best interests that the States As important as is the productive capacity ernment our whole structure of local, State, of our Union be strengthened rather than of our Nation and its military strength, these and National Governments, of public and weakened. are not the factors which alone could pre­ private educational facilities, of wage earn­ The 48 States should be experimental la­ serve our freedom or enable us to maintain a ers, of public social security and private pen­ boratories where people within limited geo­ free world of free men. The inner strength sions and retirement systems will be jeop­ graphical areas would have the opportunity of America has not been its great cities, its ardized. to legislate and administer policies in con­ huge industrial plants, its extended trans­ Without a sound dollar every employee, formity with the local needs and desires. portation systems, or its variety of natural every housewife a.nd our people living on In determining those State policies all resources as important as these are. retirement income or social-security pay­ adult American citizens are entitled to vote The factor which made America an inspira­ ments will be penalized. In:fiation and debt 1f they meet the qualifications established by tion to the rest of the world grew out of our repudiation is but another form of confisca­ law. Declaration of Independence, the Constitu­ tory taxation in the Marxist socialist pat­ Throughout the major part of the last tion of the United States, and the spiritual tern. 30 years, the Federal Government has had values which the founders of our Republic It is time for us to rededicate ourselves to use a constantly increasing portion of the recognized and by which they were guided. to a renewed faith in our free way of life. Nation's taxable capacity to meet its ex­ We have recognized that there is a higher A tax system under which the Federal panding obligations. Only by calling a halt moral law to which governments are also Government taxes personal incomes at rates to this process can the weakened sovereignty accountable. We have humbly acknowledged varying from 20 to 91 percent and corporate of our States be shored up and revitalized. the divine inspiration which made and pre­ income at a 52-percent rate is simply too If the Federal system is worth retaining, our served us as a Nation. burdensome. It will ultimately destroy our aim has to be less Federal spending and less We have read of and been inspired by the free enterprise system. t aking on of new obligations accompanied action of George Washington in kneeling in For fiscal year 1958 President Eisenhower by a reduction in Federal taxes and debt. In prayer during the dark days of Valley Forge estimates that the Federal Government will this way and solely through these means the and of Lincoln doing the same during his spend almost $72 billion-an increase of States and localities will have the where­ lonely vigil in the White House during the more than $5 billion over the 1956 spending withal to undertake the many necessary pro­ darkest days of the Civil War. rate. grams as society grows and becomes ever The priceless ingredient for our people has The budget continues in balance only be­ more complex. been our constitutional form of government cause of a continuous increase in the level America is still the authentic revolution. which guarantees our religious, personal, and of our prosperity which has brought forth a The flame of freedom which was struck at economic freedom. steady rise in tax revenues with no increase Concord and Lexington still is an inspiration We must not dilute our constitutional in rates. to the enslaved behind the Iron curtain. guaranties whereby human free.dam would be Few people realize that all we need to do at But it is also an ageless lesson that no out­ comprised with totalitarian tyranny in any the present time in order to be able both to siders can win independence for a. people. form of world government. reduce our towering national debt and cut They must be willing to pay the price in The incentives furnished under our ::;ystem taxes is to stop increasing Federal expendi­ blood and resources to gain their own free­ have constantly opened new horizons. tures. Had Federal outlays been held at dom. In this atmosphere, Americans of each their 1955 level we would now face the pleasant prospect of a budget surplus of We do recognize, however, that when free­ generation have sought to leave to their chil­ dom ls destroyed anywhere a bit of freedom dren a better land than they themselves almost $9 blllion in the coming fiscal year. This would be sufficient for a sizable reduc­ is destroyed everywhere. found, not just better in a material way but Nations can die while delegates talk. Last in the educational and cultural developments tion both in the national debt and in taxes. In order to have a budget surplus of almost year the General Assembly of the United Na­ that make for better family and community tions passed 10 resolutions in 76 days of de­ life. $5 billion in the forthcoming fiscal year, all we need to do is to keep Federal expendi· :bate. All that while freedom was being New inventions in various industrial fields strangled to death in Hungary. With cal­ and the tremendous potentials of the peace­ tures from rising above their already high current level. This reduction of $3 billion lous indifference the Soviet Union placed it­ time developments of atomic power are can and must be achieved as a minimum. self above the higher moral law of God as bound to challenge us for many years into I pledge my efforts to this end. well as above its obligations under the the future. This must not be any single shot effort. In United Nations Charter. We must as a Nation build on principles future years we must continue to keep Fed­ No international organization can long en­ rather than personalities. Individuals come eral expenditures from increasing and where­ dure with a dotlble standard of international and go but fundamental principles endure. _ever possible, to reduce them. Only this way morality. What are some of these basic principles for can our burdensome taxes and national debt Are the obligations and the mandates of which we should stand. be steadily reduced. the United Nations to be applicable to the 1. Constitutional government with the There is a prevalent school of thought democratic nations but not to the totalitar­ division of power between the legislative, .which maintains that Federal expenditures ian powers? To the law abiding but not to executive, and judicial branches of the Fed­ must keep pace with the growth of our the outlaw nations? To the small and weak eral Government and the reservation of all economy. This is a dangerous and ·:nneces­ countries but not to the big and strong? power not granted to the Federal Govern­ sary philosophy. For one thing, it is the What kind of justice is this? Are we build· ment, under the Constitution, to the States economy that maintains the Federal Govern­ ing on quicksand? What kind of a founda­ and to the people. The longer I have been ment and not vice versa. Further, unless we tion ls this for constructing a system of in· 1n the Senate the stronger has grown my sup­ .are able to reduce our tax burden, we may ternational law and order based on justice. port of States rights. end up by destroying or seriously crippling We serve no useful purpose if we hide 2. Maintenance of our free enterprise sys- that which is the source of our strength--our the facts. To the contrary by ignoring them ·tem under which we have grown from a small free enterprise economy. and falling to seek remedies, we may en­ colony of 3 million people to a great world We live in a perilous age. Unless we are danger the safety of this Republic and free power of 170 million with the most produc­ able to reduce Federal . expenditures and men everywhere. tive economic system the world has ever taxes, we will have no margin available for For many decades the men in the Kremlin known. emergencies. have preached the doctrine that the free 3. Protection by the Federal Government I do not deny that as the country grows, world contains the seeds of its own destruc­ and the States of the people from the con­ some increase in Government expenditures is tion. It is far more likely, I believe, that the centrated and arbitrary use of power by necessary and even desirable. However, of Communist world contains the seeds of its business or labor organizations against indi· one thing I am certain. During a time of own destruction. viduals and small-business enterprises. The peace it is not necessary for Federal expendi· Hungary was but the latest in the indica­ right to earn a living as an employee or as tures to increase as fast or faster than the tions that, even under totalitarian police a proprietor of a small business is a "civil increase in the national income or as fast rule and the brainwashing of a whole gen­ right" of the first magnitude. as an overburdened tax system can produce eration, the spark of freedom still lived and 4. Maintenance of a soundly growing increased revenues. was capable of lighting a fire that endan­ economy based on free enterprise and full The founders of this republic knew well the gered the whole monolithic structure of employment. No business or labor organi­ history of the world up to their time. They Communist tyranny. zation should have the power to strangle the knew that where there was a concentration After the Hungarian experience how much economic life of 170 million Americans and of power in a single agency of national gov­ reliance can the Soviet Union place in the by so doing endanger free men everywhere. ernment that the freedom they sought to armed forces of the other captive nations :With power must also go responsibility. guarantee could easily be lost. if freedom is ever within their reach? How 5. Support of a sound fiscal structure· for Those of us who continue to believe firmly can they have faith in Communist indoc­ our Federal, State and local governments. in this wise political philosophy instinctively trination when young students were the This requires all of them to live within know that the Federal Government cannot leaders of the Hungarian rebelllon? 1957 CONGRESSIONAL RECORD - HOUSE 6145 Within the past 2 weeks the rulers in the China and Poland and between all the So­ All of these allies should have priority over Kremlin have sought t-0 intimidate Norway, cialist countries." Communist Yugoslavia. Denmark, Greece, and Iceland. Further on the communique said: "After I do not favor trucing the American people . The Soviet Union has not changed its appraising the latest international situation, to support Communist economic or political long-term strategic objective: The destruc­ both parties point out that, although thanks systems abroad. tion of human freedom everywhere. to the continuous constructive efforts of the For several years the United Nations has They will be relentless in seeking to de­ peace-loving countries and peoples who ad­ discussed the freedom of colonial people in stroy our institutions. Fortified by our vocate a peaceful settlement of international Asia and in Africa. These are and will con­ faith in God, we must be determined that disputes the general trend of the interna­ tinue to be important questions until our way of life will be preserved. tional situation is toward relaxation, the equitable solutions have been reached. Hungary has also taught the world that imperialist aggressive circles have not ceased Why, however, has there been a strange unless an independent government or rev­ their activities to wreck peace, but have at­ silence by the membership to discuss in the olutionary movement can function for sev­ tempted to attain their old objective by new United Nations the destruction of freedom in eral weeks or months it is difficult for out­ disguised ways. Latvia, Lithuania, and Estonia? Here is a side friends to assist. "In Europe, they are reviving the forces clear-cut prima facie case of the violation of Had the British redcoats crushed the of West German militarism. In Asia, they its international treaties of friendship and first American rebellion in a week and cap­ are still carrying out activities to endanger nonaggression by the Soviet Union. Here is tured the leaders (as happened in Buda­ the independence and neutrality of many a clear case of the unilateral incorporation of pest) there would have been no time for countries in this area. In the Near and Mid­ three independent nations as provinces with­ France and our other friends abroad to come dle East, the ruling circles of the United in the U. S. S. R. to our aid. States are pushing forward the Eisenhower Will the General Assembly take further ac­ Sooner or later there will be another doctrine, which is aimed at supplanting tion in the Hungarian case to back up its 10 Hungary. Will the free world be better pre­ Britain and France in their colonial posi­ resolutions or will an effort be made to cre­ pared to strike a blow for freedom? Will the tion." ate a zone of silence so that relations with United Nations be prepared to do more than In addition, the Communist Chinese and the Soviet Union will not be embarrassed? talk and pass 10 resolutions? Polish representatives said this: Is justice for Hungary to be blinded and It may come this year or next in Bulgaria, "The two parties consider that the build­ gagged as well? Is the conscience of the Rumania, Czechoslovakia, Eastern Germany, ing of socialism in accordance with Marxism­ world that was so thoroughly aroused in Oc­ Albania, North Korea, China, Poland, or in Leninism constitutes the supreme interest of tober and November to be complacent and Hungary again. the ·two peoples, and that in their respec­ satisfied in April and May? While the Secu­ Indeed it may even come in the Soviet tive Socialist construction in the light of rity Council is meeting on the Mid-East Union where the people of Russia were the their national characteristics and specific question this month or next will the Hun­ first victims of the godless Communist conditions they should consistently combat garian issue be raised or be forgotten? tyranny. all deviations, whether doctrinaire or revi­ These are questions which free men will be During the week Nagy was the legal head sionist. To do this is a sure guaranty for asking, and enslaved people who want to be of the Hungarian Government what a dif­ effectively overcoming difficulties and smash­ free will be waiting for the answers. ference it would have made if the United ing all plots of hostile forces to sabotage All Americans, regardless of party, can join Nations had sent in observers; if based on the Socialist construction. together in subscribing to the oath of the first United Nations resolution the "The two parties reaffirm their support for Thomas Jefferson: friends of freedom abroad had sent the Free­ the worker-peasant revolutionary govern­ "I have sworn upon the altar of God eter­ dom Fighters bazookas and grenades rather ment of the People's Republic of Hungary in nal hostility to every form of tyranny over than more resolutions of sympathy. their struggle to consolidate the Socialist the mind of man." Or is the policy of the United Nations system and eliminate the consequences of and the free world now to be that we will past mistakes. They will continue to help throw water on the embers of freedom and the Hungarian people overcome the difficul­ revolt against tyranny and that we will ties they are preE:ently facing." finance Communist economic and political Before concluding, the Polish Communists Address Delivered by Secretary of State systems so that the slaves will be more con­ again indicated that they were giving eco­ John Foster Dulles tent with their masters? nomic assistance to another Communist There is now being negotiated in Wash­ country in the following words: ington grants, loans and credits of $100 mil­ "The Government of the People's Republic EXTENSION OF REMARKS lion to the Communist Gomulka government of China expresses its thanks to the Polish OF of Poland. People's Republic for its active support to This has the support of the executive China in its struggle to defend its sovereignty HON. LEVERETT SALTONSTALL branch despite the fact that: and Poland's various aids to China in the OF MASSACHUSETTS 1. Poland is a member of the Communist economic field and in the fields of shipping, IN THE SENATE OF THE UNITED STATES Warsaw pact and is occupied by Soviet divi­ science, and technology." sions. Communist Yugoslavia in the post-World Monday, April 29, 1957 2. On February 27 of this year it voted for War II period (July 1, 1945, to date) has Mr. SALTONSTALL. Mr. President, I the Soviet resolution in the United Nations received more than $1 billion in grants, loans, and credits from the United States. ask unanimous consent to have printed to condemn the United States. in the CONGRESSIONAL RECORD a very 3. Gomulka himself helped liquidate non­ During this entire period, Dictator Tito has: eloquent and forceful speech made by Communist Poles at the close of World War Secretary of State John Foster Dulles II. 1. Opposed our foreign policy of encourag­ 4. The Soviet Union ha$ stripped Poland of ing mutual-defense pacts against potential on Monday, April 22, in New York City, Soviet aggression. at the annual Associated Press luncheon over $4 billion worth of industrial and agri­ 2. Supported Communist Chinese member­ cultural products. By this aid we will indi­ held during the convention of the Amer·· ship in the United Nations. ican Newspaper Publishers Association. rectly be aiding the Soviet Union. 3. During the whole period of the Com­ 5. When we strengthen a Communist eco­ munist aggression in Korea, the Yugoslav Secretary Dulles has well set forth the nomic system we strengthen the Communist Government either supported the Soviet po­ basic principles of our foreign policy. political system. sition or abstained on the resolutions con­ There being no objection, the address 6. At the very time Poland was negotiating demning the aggression. was ordered to be printed in the RECORD, the $100 million out of the United States 4. Abstained on the February 27 Soviet as follows: their delegation in Communist North Viet­ resolution condemning the United States. RUSSIAN STRATEGY UNABLE To DIVIDE FREE nam were extending loans and credits to the (Resolution was defeated by a vote of 8 yeas Communist government of Ho Chi Minh. to 53 nays.) WORLD-TEXT OF A SPEECH BY SECRETARY OF On April 11 a joint statement was issued In addition to the economic and military STATE DULLES AT THE ANNUAL AsSOCIATED in Peking by Premier Chou En-lai of Com­ aid already given Tito's Yugoslav Communist PRESS LUNCHEON munist China and Josef·Cyrankiewicz, Chair­ government, there is now under considera­ I recall pleasurably your annual luncheon man of the Council of Ministers of Poland, tion a proposal to turn over 215 jet planes a year ago. It is a compliment that you which among other things said: to them. have asked me to come a second time. "The hearty welcome and warm reception This does not make sense to me. Since this is my first speech of the second accorded the Polish Government delegation We have a number of stout non-Commu­ Eisenhower term, it may be appropriate to by the Chinese people and the Government nist friendly nations that are allied with us set forth the basic concepts which guide of the People's Republic of China demon­ in mutual defense pacts. They need jet our foreign policy. It is important that both strated the fraternal friendship between the fighter planes. These nations include the friend and foe should know the principles Chinese and Polish peoples. The visit to Republic of Korea, Turkey, Thailand, Pak­ by which we c:.iart our course. China of the Polish Government delegation istan, Vietnam, the Republic of China on At the close of World War II, the states­ will bring even closer the relations between Formosa, and the Republic of the Philippines. men of the world met at San Francisco to 6146 CONGRESSIONAL RECORD - HOUSE '.April 29 plan a better future for a war-scourged LAND, SEA, AIR POWER ALL VITAL TO DEFENSE Military collaboration to sustain peace will world. They wrote the United Nations Char­ It is also agreed that it would be im­ collapse unless we also collaborate to spread ter; and in its first article they laid down prudent to risk everything on one single the blessings of liberty. three basic and interlocking principles. aspect of military power. There must be Trade, from the earliest days, has been one There must be peace; there must be jus­ land, sea, and air forces for local action and of the great upbuilders of economic well­ tice; and there must be liberty for nations for a defense which will give mobile striking being. Therefore, this Government advo­ and for persons. power the chance to do its work. cates trade policies which promote the inter­ Peace, justice, and liberty-these same con­ Thus the general design of common de· change of goods to mutual advantage. cepts underlie the foreign policies of the fense is widely agreed. Of course, its de· Also, the United States, as the most pro­ United States. tailed application presents recurrent diffi· ductive and prosperous Nation, assists other Our task is to realize these concepts in a culties. Also, the sharing of the burden nations which are at an early stage of self­ world of rapid and accelerating change. raises problems. development. Two decades ago I wrote that world peace Modern weapons are extremely expensive. It is sobering to recall that about two­ depended, not on preserving the status quo, Immense sums must be spent in research and thirds of all the people who resist Communist but on finding ways of peaceful change. development and in making weapons which rule exist in a condition of stagnant poverty. Today, this requirement is more than ever may become outmoded almost before they Communism boasts that it could change all imperative. are in production. tbat, and points to industrial developments Our foreign policy accepts change as the The United States is the only free world wrought in Russia at a cruel, but largely con­ law of life. We seek to assure that change country able to sustain the cost of develop­ cealed, cost in terms of human slavery and will be benign, and not destructive, so that ing a capacity for retaliation adequate to human misery. it will promote not merely survival but free­ deter a potential aggressor who himself has The question is whether free but unde· dom and well-being. great and growing aggressive power. veloped countries can end stagnation for FIRST REQUIREMENT; SHUT OUT AGGRESSION In addition, the United States supplies their people, without paying such a dreadful military equipment to others and, in some price. Friendly nations expect that those A first requirement is that the door be cases, helps to stabilize the economies of firmly closed to change by violent aggres- . who have abundantly found the blessings of allies which cannot otherwise play their liberty should help those who still await sion. proper part in the scheme of common de­ those blessings. Of all the tasks of government the most fense. basic is to protect its citizens against vio­ Of course, each country must itself make The President faces no more difficult task the principal effort to improve its lot. But lence. Such protection can only be effec­ than the crucial one of deciding, in this de­ tive if provided by a collective effort. So, others can provide an impetus and the mar­ fense field, how much to spend, where to gin between hope and despair, and perhaps in every civilized community, the members spend it, and how to. bring the cost into a contribute toward the maintenance of a po­ between success and failure. budget which provides for other needed ta!>ks They can do this by showing interest and lice force as an arm of law and order. and does the whole without monetary infla­ Only the society of nations has failed to concern; by giving technical guidance; and tion or excessive taxation. by providing capital for development. apply this rudimentary principle of civilized There are some who, in a zeal to economize, life. would slash that part of our budget which PRIVATE CAPITAL SHIES AT BIG RISKS An effort was made through the United is often miscalled foreign aid-as though Much of this is done under private aus­ Nations to create an armed force for use by it did not aid us. That would not be econ­ pices, and we wish it could all be done that the Security Council to maintain interna­ omy, but extravagance. way. But sometimes the hazards are greater tional order. But the Soviet Union vetoed If the forces and facilities which others than -private capital will assume. So, our that. provide were subtracted from the common Government supplies some funds for eco­ However, the member nations still had defense, the United States defense budget nomic development purposes. the possibility of cooperating against ag­ would have to be expanded vastly from what The sharing of markets and of develop· gression. For the chr..rter, with foresight, had it now is. That is the considered judgment ment capital is not a giveaway operation. proclaimed that all nations had the inherent of the President and his military advisers. It assures that the free world, of which we . i·ight of collective self-defense. COLLECTIVE DEFENSES NOT CONSIDERED IDEAL are part, will be a vigorous, hopeful com­ The free nations have largely exercised munity. That corresponds to our interests that right. The United States has made col­ The free world collective defense arrange­ and to our ideals. lective defense treaties with 42 other na­ ments are not ideal. Our mutual-security program can and tions. And the area of common dl:!fense may There is nothing automatic about them, now be enlarged pursuant to the recent should make our policies more clear and and they require a continuing conscious ef­ more stable. Two weeks ago I outlined pro­ Middle East resolution. fort by many nations to co.operate and to This collective security system is subject posals to this end before a special committee forego the petty selfishness and the extremes of the Senate. to assaults from without, and to infirmities of nationalism which could poison the rela­ within. With the help of the Congress, and with tionships. the support of the American people, our SOVIET RULERS WANT FREE NATIONS DIVIDED But the relationship is predominantly one trade and economic development policies The Soviet rulers understandably prefer of good will and trust. It marks a significant_ can serve mightily to demonstrate that the that the free nations should be weak and step in the long-overdue progress of inter­ peace of free men is not the doomed peace of divided, as when the men in the Kremlin national society from anarchy to order. human stagnation, but a peace of such stole, one by one, the independence of a To maintain and develop this progress is vitality that it will endure. dozen nations. So, at each enlargement of a basic principle of our foreign policy. Just as our policy concerns itself with the area of collective defense, the Soviet But we do not believe that the only way economic development, so, too, our policy rulers pour out abuse against so-called mili­ to security is through evermounting arma­ concerns itself with political change. taristic groupings. ments. We consider that controls and reduc­ During the past decade, there have come And as the free nations move to strengthen tion of arms are possible, desirable, and, in into being, within the free world, 19 new their common defense, the Soviet rulers emit the last reckoning, indispensable. nations with 700 million people. In addi­ threats. But we can, I think, be confident It is not essential that controls should en­ tion, many nations whose sovereignty was that such Soviet assaults will not disintegrate compass everything at once. In fact, progress incomplete have had that sovereignty fully the free world. is likely to come by steps carefully measured completed. Collective measures are here to stay. and carefully taken. Within this brief span nearly one-third The greater danger comes from internal Thus far it has not been possible to assure of the entire human race has had this ex­ hazards. A collective defense system, in the inspection and other safeguards that citing, and sometimes intoxicating, experi­ which each member nation is completely would make it prudent for us to reduce our ence of gaining full independence. sovereign, requires a high degree of volun­ effective power. But we shall continue to tary cooperation and agreement. seek that goal. PROGRESS TO GOAL OF SELF-GOVERNMENT Happily, we have that. For example, it Armaments are nothing that we crave. The United States believes that all peo­ is agreed that the primary task is to deter Their possession is forced on us by the ag­ ples should have self-government and inde­ war. Modern weapons have such vast de­ gressive and devious designs of international pendence if they desire it and show the structive power that there could be no ,real communism. capacity to sustain it. We rejoice that there victor were general war ever to occur. An arms race is costly, sterile, and dan­ is progress toward this goal. It is also agreed that the principal deter­ gerous. We shall not cease our striving to But liberty requires more than the mere rent to aggressive war is mobile retaliatory bring it to a dependable end. breaking of old political ties that have be­ power. This retaliatory power must be vast come unwelcome. in terms of its potential. But the extent ANY POLICE SYSTEM ESSENTIALLY NEGATIVE Those patriots who won for us our inde­ to which it would be used would, of course, Any police system is essentially negative. pendence knew and proclaimed that our depend on circumstances. It is designed to repress violence and give a free insti'tiutions could be sustained, and The essential is that a would-be aggressor sense of security. But the sense of security our independence made durable, only if should realize that he cannot make armed is illusory unless behind its sl1ield, there is our Nation accepted the disciplines which aggression a paying proposition. growth and development. religion and education enjoin, 1957 CONGRESSIONAL RECORD - HOUSE '6147 That is indispensable to ·assure responsi­ International communism has become be­ That, at least, 1s the faith and the dedication ble leadership able to guide a young nation set with doctrinal difficulties. And the cruel of your Government. through the dangers which beset it. performance of Soviet communism in Hun­ I hav~ tried to describe principles which International, communism is on the prowl gary led many to desert Communist parties guide United States foreign policy. But to capture those nations whose leaders feel throughout the world. while guiding principles are essential, they that newly acquired sover~ign rights have The satellite countries no longer provide are not enough. They must be reinforced to be displayed by flouting other independ­ a submissive source of added Soviet strength. by daily action, as throughout the world, ent nations. That kind of sovereignty 1s Indeed, Soviet strength, both military and our views are sought and our influence is suicidal sovereignty. economic, has now to be expended to repress made felt. The United States stands as the faithful those who openly show their revulsion This is the task sometimes called waging and vigorous champion c;f the principles of against Soviet rules. peace. It is a hard task. · our Declaration of Independence. And we The Soviet Government pays a h~avy price It is seldom dramatic. The many who take want the new independence of others to be in terms of moral isolation. part in it may never be known as heroes. something better than a brief twilight pre­ Soviet rulers are supposed to be hard­ Yet they make efforts, and in some cases sac­ ceding the blackout of Communist des­ headed. For how long, we may ask, will rifices, like those required in war to win a pot ism. they expend their resources in combating war. By so doing, they spare us the infi­ Nowhere is the pressure for change greater historic forces for national freedom which nitely greater sacrifice of war itself. than within the Soviet orbit. For there the are bound ultimately to prevail? Surely the stakes justify that effort. As I most basic human aspirations are the most UNITED NATIONS PEACE WITH JUSTICE am briefed on the capacity of modern weap· repressed: ons for destruction, I recognize the impos­ A year ago Khrushchev boasted before the Let me speak now of the United Nations. sibility of grasping the full, and indeed awful, 20th Congress of the Soviet Communist Party Its charter couples peace with justice, and ·significance of the words and figures used. that communism was on lts way to triumph provides the most significant body of inter­ Yet we would be reckless not to recognize everywhere on its merits as a system of national law yet known. that this calamity is a possibility. Indeed, thought and government. The United States has agreed to those history suggests that a conflict as basic as But in October how many Communists principles and seeks to conform to them; and . that dividing the world of freedom and the could be found in supposedly Communist we expect ot her signatories to do the same. world of international communism ulti­ Hungary? A few hundreds of secret police­ On occasions we invoke the processes of the mately erupts in war. men, hopelessly implicated in the crimes of United Nations to help to make effective the That suggestion we reject. But to reject the regime, and a handftJl of traitors willing principles embodied in the charter. in terms of words, or of hopes, is not enough. to govern by grace of Soviet tanks. We are not ashamed, as a powerful Na­ We must also exert ourselves to the full tion, to pay the same decent respect for the to prevent it. To this task, the American COMMUNISM PROVED OPPRESSIVE DESPOT opinions of mankind· that we thought proper people must unswervingly dedicate their Communism in practice has proved to be when, young and weak, we sought our inde­ hearts and minds throughout the years oppressive, reactionary, unimaginative. Its pendence. ahead. despotism, far from being revolutionary, is as That is no abdication of foreign policy. That is not too much to expect. Amer­ old as history. Its subjects, in vast majority, It is the exercise of foreign policy, and its ex­ icans are a people of faith. hate the system and yearn for a free society. ercise in the way which represents the best They have always had a sense of mission The question of how the United States hope for humanity. and willingness to. sacrifice to achieve great should deal with this matter is not easily an­ Our dedication· to the principles of the goals. Surely, our Nation did not reach a. swered. Our history, however, offers us a United Nations Charter was severely tested new peak of power s,nd responsibility merely guide. The United States came into being by the recent Middle East crisis. We were to partake of the greatest, and perhaps the when much of the world was ruled by alien then faced with a distressing and unprece· last, of all l.uman disasters. despots. · dented confilct of loyal ties. Historic ties. If only we are faithful to our past, we shall That was a fact we hoped to change. We w.ould ha.ve led us_to acquiesce in the forcible not have to fear our future. The cause of wanted our example to stimulate. liberating action that was began. peace, justice, and liberty need not fa.il, and forces throughout the world and create a But this would have involved disloyalty must not fail. climate in which despotism would shrink. to the United Nations undertaking that all In fact, we did so. members renounce the use of force except in I believe that that early conception can defense against armed attack. That same usefully guide us now. pledge is also embodied in all our treaties of Let us provide an example which demon­ alliance. We decid·ed to be loyal to that The Twin Enemies of Freedom-Commu· strates the blessings of liberty. Let us spread commitment. . , nism, Like Crime, Advances and ,Takes knowledge of that around the world. Let us This was a hard decision, although to those see to it that the divided er captive nations directly affected it was not an unexpected Hold Because Men Ignore God-Com· know that they are not forgotten; that we decision. munism Denies and Destroys Every shall never make a political settlement at DECISION UNPOPULAR BUT IMPERATIVE their expense; and that a heartfelt welcome It was not, I suppose, a popular decision. Spiritual ValUe and new opportunity await them as they gain Yet it was imperative if the world was not more freedom. to go as it went when the League Covenant EXTENSION OF· REMARKS Let us also make apparent to the Soviet was disregarded. rulers our real purpose. We condemn and But, as we have seen, the charter pre­ 01' oppose their imperialism. We seek the liber­ scribes not merely peaceful settlement, but ation of the captive nations. settlement in conformity with justice and HON. CLYDE DOYLE We seek this, however, not in order to en­ international law. OF CALIFORNIA circle Russia with hostile forces, but because We must, and do, seek also to advance that IN THE HOUSE OF REPRESENTATIVES peace ls in jeopardy and freedom a word of goal. For example, we are now striving to mockery until the divided nations are re­ bring about conditions in the Middle East Monday, April 29, 1957 united, and the captive nations are set free. better than those provocative and dangerous We revere and honor those who as martyrs conditions out of which the recent violence Mr. DOYLE. Mr. Speaker, by reason gave their blood for freedom. But we do not was born. of unanimous consent heretofore grant­ ourselves incite violent revoit. Rather we This cannot be done quickly or all at once. ed me so to do, I am pleased to present encourage an evolution to freedom. Where emotions run high, and a sense of ·copies of correspondence between myself VOICE OF AMERICA SPREADS . INFORMATION grievance is deep, those most directly in­ and Mr. J. Edgar Hoover in which it will The Voice of America, our information pro­ volved are more eager to gain partisans be noted he granted me the privilege of grams and cultural exchanges, spread for their cause than to heed impartial including in the CONGRESSIONAL RECORD throughout the world knowledge of what counsel. Wherever such situations occur, they are the text of his address before the 28th freedom is and does. When Hungary was in­ annual convention of the National vaded and freedom crushed, we sponsored a always worsened by Soviet intrigue. The United Nations condemnation of the Soviet Kremlin likes troubled waters in which to Council of Catholic Women on Novem­ Union. And when some steps. are made to­ fish. ber 9, 1956, in Chicago, Ill. I am sure ward independence, as recently in the case of We know, in domestic affairs, that it is that every Member of this great legisla­ Poland, we show a readiness to respond with hard to apply just solutions when racial ·or tive body will be pleased to have the text friendly acts. class passions run high. The task is equally of this important speech by this distin­ Events of the past year indicate that the hard in international affairs, and sometimes guished American available to full pressures of liberty are rising. war seems to offer a shortcut to the desired reading·. Within the Soviet Union there is increas­ end. But that is an illusion. ing demand for greater personal security, for The only durable solution is one which Being a member of the House Un­ greater intellectual freedom, and for greater comes by patiently, resolutely, and resource­ American Activities Committee you will enjoyment of the fruits of labor. fully seeking justice and tl1e rule of law. naturally expect me to call your special :6148 CONGRESSIONAL RECORD - HOUSE 'April 29 attention to Mr. Hoover's comments on In this age of materialism, all too fre• morass of disbelief-where they have no the subject of "Communism." quently crime is considered merely in terms faith, no belief in a. Supreme Being, no re­ of dollar costs. It is a shocking fact that spect for the rights of others, no belief in the The letters and address follow·: crime costs every home in America $467 a dignity of man, and finally, no belief in JANUARY 10, 1957. year-an estimated total of $20 billion each themselves. Hon. J. EDGAR HOOVER, year. There must be training for parenthood as Director, Federai Bureau of Investiga­ The staggering cost of crime in dollars and well as a fixing of responsibility for the fail­ tion, Department of Justice, cents becomes more realistic when we face ure of parenthood. Too many parents allow Washington, D. C. the fact that for every $1 spent on educa­ their children to run free with no check on DEAR FRIEND: On November 9, 1956, you tion, $1.29 is spent on crime. For every $1 what they do, where or with whom they go. delivel'ed an address before the National contributed to the churches of America The result is a juvenile jungle. Too many Council of Catholic Women at Chicago, Ill., crime costs $12. Our national debt could homes breed juvenile delinquents through entitled "The Twin Enemies of Freedom." be wiped out completely in 14 years if this parental neglect. Too many children are left If you have no objection I would appre­ money were used to reduce that debt rather to shift for themselves-hungry, helpless, ciate very much having the privilege of pre­ than to pay tribute to the lawless. But un­ loveless. senting this to the House of Representatives fortunately the real cost cannot be measured When parents are not sufficiently inter­ and ask unanimous consent to have same in monetary terms. ested to know where their children are and printed in the CONGRESSIONAL RECORD. Some 111h million people in these United what they are doing, the risk for their future Thanking you for your consideration of States have either been disgraced or have is grave. It is the parents who should be this request, I have the honor to te, had their lives completely ruined in their brought before the bar of justice to account Cordially, attempts to live outside the law. If a per­ for their stewardship when their children go CLYDE DOYLE, son wants to throw his life away, he has that astray. The parents are responsible to a Member of Congress. choice. But it is not a right; because the great extent for the sins of their children. innocent suffer more than those who violate The parents should be held morally, legally the laws. The real tragedy of crime lies in UNITED STATES DEPARTMENT and, financially responsible. the suffering of its innocent victims. In any I have studied the case histories of thou­ OF JUSTICE, 24-hour period, 7,094 serious crimes are com­ FEDERAL BUREAU OF INVESTIGATION, sands of criminals. In almost every case, the mitted across our land. Every time your failure to develop character is directly at­ OFFICE OF Tl;IE DIRECTOR, watch ticks off 12 seconds you can record the 'Washington, D. C., January 15, 1957. tributable to lack of proper influence and occurrence of a serious violation. guidance in the home. Unfortunately, the Hon. CLYDE DOYLE, I believe the basic source of pressures for House of Representatives, home no longer provides the inspiration for peace and security lies with the women of right living. The American home must be­ Washington, D. C. America. The fact that you have gathered MY DEAR CONGRESSMAN: I have received come again a center of learning how to live here in Chicago in convention ls proof that as well as a center of living. your kind letter of January 10, 1957, and I the necessity for militant action to sustain am happy to enclose a copy of my November the American way of life is obvious to you. Modern society is geared to a fast tempo; 9, 1956, speech before the National Council For today, a dangerous complacency there are great demands on the parents to of Catholic Women which you may certainly threatens to ·blind our people to the menaces provide the material necessities for their feel free to have included in the CONGRES­ which would destroy us unless they are recog­ children. Too often, the primary need for SIONAL RECORD. nizzd and curbed. sympathetic and spiritual· guidance is neg­ Your interest in this regard is indeed Textbooks are filled with theories on crime lected and the child is deprived of the very encouraging. causation. There are many contributing fac­ element which is most essential to stabilize Sincerely yours, tors to crime, but the real cause can be him emotionally and to aid him in his J. EDGAR HOOVER. stated in simple terms: crimes are committed growth toward maturity. As a result of this by those who lack a sense of moral responsi­ thoughtless neglect, society suffers. What is needed is to restore the home to THE TwIN ENEMIES OF FREEDOM bility. For the most part, they commit crime knowingly and with deliberate intent. If its proper place where the lessons of the (Address of J. Edgar Hoover, Director, Fed­ we are to live in an America free of crime, Golden Rule are translated into daily living, eral Bureau of Investigation, before the if we are to see a better world, then we must where the members of the family counsel 28th annual convention of the National live by and teach the Golden Rule. and aid each other, and where each has a Council of Catholic Women, November 9, Criminals are made--not born. The blame share in the responsibilities of home life. 1956, Conrad Hilton Hotel, Chicago, Ill.) for crime must be placed where it rightly What is needed is a return to the home I am honored to discuss with this out- belongs-upon the adult. A new sense of where parents are companions of their chil­ standing group of "career" women a matter responsibility must be born in the home if we dren as well as the providers of the necessi­ of pressing urgency to every home in America. are to reverse the rising trend of youth to­ ties of life, where parents share their leisure I say "career" women because I feel there ward lawlessness. Reasonable discipline, ad­ time with their children, and where children are no careers so important as those of ministered with consistency, is essential in are taught the spiritual and civic responsi­ homemaker and mother. developing a stable individual. bilities of manhood and womanhood. A As homemakers and mothers, you must be The crime problem is basically a youth child above all else needs the firm moral disturbed, as I am, with the continued ad­ problem. In the past 4 years, while the backing of a conscientious mother and father vance of the twin enemies of freedom-crime number of 10- to 17-year-old children in this and the love, understanding and security and communism. These evil forces menace country increased lOY:z percent, arrests of that a good Christian home affords·. not only the security of our Nation but they boys and girls in this age group increased What is needed is greater participation by also menace the homes of America, which nearly 21 percent. Youths are committing parents with their children in the programs are the foundations of our civilization. more serious crimes with increasing fre­ of the church, the school and the community. Statistics show that before this year comes quency, and this is a source of real alarm in What is needed is to cease being "penny-wise to an end, 1 out of every 16 homes across the every community in the land. and pound-foolish" in providing for our land will have been blighted by sorrow and Last year 2,262,450 major offenses were churches, schools, and community facilities. misery because of crime. Lawlessness will committed by the Nation's crime army. A What is needed is a greater interest in and deprive some of these homes of their bread­ little over 42 percent of these crimes were knowledge on the part of parents of the needs winners and leave disgrace, shame, and heavy committed by children under 18, and nearly of local law enforcement agencies to the end hearts, as their loved ones join the ever­ half of these were under 15. The 10- to 17- that those agencies might have the support expanding forces of the lawless. year-olds last year were involved in 62 per­ and the facilities so necessary to protect the Recently, newspapers carried a heart­ cent of all arrests for automobile thefts, 53 homes of the land. Good government does warming report that church membership in percent of all arrests for burglary, 47 percent not just happen-it is the result of the con­ America has now passed the 100 million mark. of all arrests for larceny, and 21 percent of stantly vigilant efforts of the many who self­ That is good news for all of us. But this all arrests for robberies. lessly strive to build a better community, and good news was marred for me by the knowl­ This situation, in the final analysis, is not beyond that, a better Nation and a better edge that nearly 11 % million persons have the failure of youth but the failure of adults. world. been arrested for serious offenses, or to bring The fact remains that out of every 100 boys What is needed above all is to practice the this dreadful fact into sharper focus, 1 out of and girls in the 10 to 17 age group, 97 live living faith of our fathers in our daily lives every 15 persons in our Nation has a record law-abiding lives. There is nothing basically and a dedication to making the Kingdom of of arrest for a serious offense. wrong with the youth of the land. Youth God a reality on "earth as it is in Heaven." Those who look upon life in the abstract needs only to be guided along the proper The neglect in the training of so many of might hold to the view that the number of path. A youth's intelligence must be our Nation's youth, their lack of spiritual arrests is not a true yardstick for measuring anchored in morality to give him the ability nourishment, their ignorance of the great the extent of lawlessness. I invite them to to determine right from wrong, good from truths of the Bible, and the tragic void of look at the record of convictions. This rec­ bad, and the true from the false. Given God and prayer in their lives wealten our ord shows that more than 51h million per­ discipline, young people .will learn self-dis­ homes and our Nation's welfare. sons have been convicted for one or more cipline; given training, they will learn to live Secularism is not necessarily an evil of violations of the law, or 1 out of every 29 useful lives. The 3 out of each 100 who an­ immorality .and excesses. More often it ls persons in the land. nually break the law have wandered into a the evil of nonmorality and indifference. 1957 CONGRESSIONAL RECORD - HOUSE 6149 That is why I say the greatest crime ls the of appeasement is not the road to peace. It persons who were engaged in other religious toleration of crime. is merely surrender on the installment plan. positions. Another such petition is now in Neglect at home and lack of discipline in The American public must not be lulled preparation to again ask for the release of the home are two of the main reasons for into complacency by the new Communist those who would destroy the American way juvenile delinquency, it is true, but the basic propaganda line. It is just another Leninist of life. cause of the present situation is that so tactic. Lying, twisting, and turning are their This · is not an isolated example. Last many of our young people have no real sense time-proven techniques to gain their ends. year a legal brief was filed with the United of moral responsibility which comes from The current Communist tactics do not States Supreme Court urging that the In­ an intimate knowledge of God's teachings. change the basic goals of Communist con­ ternal Security Act of 1950 be declared un­ This is essential to meet the criminal enemies quest; they do not change the basic Com­ constitutional. This legal brief had been of our freedoms. munist techniques; they do not mean inde­ initiated by 18 persons. Nine of these per­ It is essential in order to meet the Com­ pendence from Soviet Communist leaders; sons, exactly one-half, were members of the munist enemy of both our spiritual and and they do not represent any change of clergy. Of the 360 persons who signed the physical freedoms. heart or a lessened antagonism toward reli­ brief, some 100 were clergymen. Communism, like crime, advances and gion. Communists shift from violence and Because they despise the church, the Com­ takes hold because men ignore God. The real threats of violence to rely temporarily upon munists continually attempt to infiltrate un­ danger in communism lies in the fact that enticement, duplicity, and division. The cur­ suspecting religious organizations. What it is atheistic and seeks to replace the su­ rent Communist tactics are designed to win better cloak of legitimacy can be found preme Being. Communism is secularism on again by deceit the influence and alliance the for their programs than to present them the march. It is the mortal foe of all the Communists once enjoyed with some well­ as the offerings of clergymen and churches? world's religions which acknowledge the ex­ meaning but unsuspecting progressive-mind­ One of the oldest Communist techniques istence of God. Either the faith of our ed persons in our Nation. These tactics are is to use others to do their dirty work. fathers will triumph or communism will d,esigned to develop a broadened base for the Communism, they say, must be built with engulf us. In this land of ours the two advance of Marxist socialism; and primarily non-Communist hands. Today there are cannot live side by side. they are designed to evade American justice less than 20,000 Communist Party members Nowhere among the leaders of the Com­ and the relentlessness with which the Com­ in the United States. But the party's ac­ munist Party in the United States, Russia, munist Party has been prosecuted by the tual strength never can be measured in Red China, or in any other part of the world United States Department of Justice in terms of members because thousands of will you find one who loves and believes in American courts and exposed by Congres­ bleeding hearts, pseudoliberals, sympathiz­ God. God is truth. Communists hate truth sional committees and the American press. ers, and dupes always stand ready to lend and, therefore, they hate the church. Communist concessions are never made their aid when their services are needed. One of the slogans of the Communist Revo­ with peaceful intentions, nor with honor, nor The record clearly establishes that Com­ lution in Russia in 1917 was: "Religion is with honesty, and the Communists have munist Parties have the power of swift and the opium of the people." proved time and again, when their false solid growth when the opportunity arises. This was first uttered by Karl Marx, the smiles will not gain their objectives, that they When the Communist Party membership was founder of communism, in 1843. Lenin, now have no hesitation in using tanks and ma­ at its peak in the United States a decade ago, resurrected by the Kremlin as the Commu­ chine guns to achieve their purpose. it was stronger in number than the Soviet Communist Party when it seized power in nist idol and guide of the present and fu­ Lenin said with utter frankness, "Conces­ Russia. In Italy, the Communist Party once ture, restated it in 1905. And last year, sions do not mean peace with capitalism, but dwindled to only 15,000 members and then Nikita Khrushchev, the present head of the war on a new plane." increased to more than 2 million. In Red Russian Communist Party, publicly pro­ American Communists have not suddenly China, a small inconsequential party of less claimed that Communists have not changed become good citizens. They are merely mak­ than 10,000 grew to more than 6 million. their opinion on religion and said: "We re­ ing war against America on a new plane. The national chairman of the Communist main the atheists that we have always been; In fact, there is nothing really new in the Party of the United States, William Z. Foster, we are doing -all we can to liberate those current Communist tactics. The American has correctly said: "The actual strength of people who are still under the spell of this Communist Party, from the time of its in­ the Communist movement in the United religious opiate." ception here in Chicago in 1919 until the States is not something that can be ac­ When Communists temporarily and pas­ present, has changed its name 9 times. The curately stated in just so many figures. It sively tolerate religion, it is for the purpose constitution of the Communist Party in this has to be measured largely by the general of furthering communism. But time and country has been changed 17 times, zigging mass influence of the party and its pro­ again they have struck ruthlessly against and zagging for the attainment of its diaboli­ gram." Christians, Jews, and other faiths, torturing, cal ends through deception and doubletalk. our most effective defense against this imprisoning, and murdering those who hold If the party runs true to form, it will conspiracy lies in our basic American faith God above the state. Those who hate God change its constitution again next February, in God, a:q. ardent fervor for liberty under always bring misery in their wake.. They and perhaps its name, when it meets in con­ law and Justice for all, and belief in the are brutal, cruel, and deceitful. Commu­ vention in New York City. Regard.less of God-given rights of individuals. Morality nism denies and destroys every spiritual what it does--of this you can be sure-it will _and religious convictions stand as major ob­ ·value. No church and no church member be the same old crowd at the same old stand stacles in the path of Communist progress. can temporize with it. banded together for the same old purpose-to Even today, in the lands where Red tyr­ And now the American Communists would advance the Communist cause and to serve anny reigns, the fires of freedom are burning have us believe they have changed their the Soviet Union. They will use the same old as never before. Incident after incident has philosophy. What a farce that is. They now techniques with which they have hoodwinked come to light where patriots were willing to even deny their allegiance to the Soviet so many people in the past. shed their blood to feed the fires for free­ Union. They now speak of advocating a The women of the Nation must make their dom which one day will burst into a giant "peaceful and constitutional road to so­ contribution by raising their voices to pre­ conflagration which even the dfotators' heels cialism in our country." Communism in serve the American way of life and to of might cannot stamp out. The fact that America would garb itself in new and more counteract the Communist attacks against physical and mental torture, slave labor respectable raiment, but it is the same old our laws which have so effectively been ap­ camps and brutal murder do not stay man's conspiracy against human dignity and free­ plied to curbing the Communist program selfless drive toward freedom for all man­ dom it has always been and always will be. with its criminal ends. The chief objective kind has baffled the Red Fascists, because The Communist conspiracy is as deadly now of Communist attacks will be to discredit they do not know God and His way. as it was before the Geneva Conference be­ acts of Congress; the courts; thz prosecu­ To a people who still love freedom and cause of its false smiles. tions of the United States Department of who still look to a Supreme Being, their sac­ The "big lie" technique originated with the Justice; and the FBI. rifices shall not be in vain because one day Communists and has been perfected by the The strategy of the Communists to get the Almighty will wreak vengeance on this Communists. Largely through this tech­ others to front for them and do their dirty atheistic, terroristic ·tyranny. Communism nique, backed with a ruthlessness which work cannot be underestimated. To illus­ runs counter to the aspirations of the human challenges the imagination, one-fourth of the trate, last Christmas 42 persons signed a heart. The Communist way eventually will world's surface and 1 out of every 3 persons, petition to request Presidential amnesty perish from this earth because it prostitutes or 900 million souls, are under the influence for the Communist Party leaders convicted truth, because it is heartless and cruel, be­ of the Red star. The Communists never have under the Smith Act for conspiring to teach cause it is evil and because it denies the taken 0'1er a country by a majority _vote in a and advocate the overthrow of the Govern­ existence of the Omnipotent. We pray for free election. There are only 25 million Com­ ment of the United States by force and the coming of that day. munist Party members in some 60 countries violence. Not only did these persons ask We must strive to overcome the apathy, of the world, a bare 3 percent of the people the Government to release a. group of Com­ ignorance and guile which nourish the twin enslaved. They have attained their tyranny munist conspirators from prison to ob­ enemies of our freedom-crime and com­ through: infiltration and by brutal force, by serve a Christian holiday which they would munism. Let us never forget that strength seizing leadership of key organizations, popu­ destroy, but they asked that the sentences and good character, like charity, begin at lar fronts, and lulling the vigilance of patriots of these atheists be commuted to the time home. So long as the American home is with propaganda, lies, and deceit. already served. Even more shocking is the nurtured by the spirit of our Father in We relax our vigil at our peril. In dealing fact that half of the signers of the petition heaven and is a center of learning and living, with the Kremlin and its followers the road were clergymen, professors of tlleology; or America will remain secure. 6150 CONGRESSIONAL RECORD - HOUSE April 29 The Trend Toward Mono!ithit Banks PACE OF BANX MERGEB. ACTIVITY This loophole in existing law not only has Largely responsible, in my judgment, for no logical basis, but, more important, it the present degree of concentration has been has seriously hampered enforcement efforts EXTENSION OF REMARKS a spate of mergers accomplished through to proceed against bank mergers injurious OF acquisitions by banks and by holding com­ to competition. For this reason legislation panies. In fact, the :vapidly accelerating ls urgently needed which would provide en­ HON. EMANUEL CELLER trend towards mergers has been the major forcement agencies with the same authority OF NEW YORK development in banking over the past 7 to move against bank mergers accomplished years. Thus in the period from 1950 through by asset acquisitions as they now have to IN THE HOUSE OF REPRESENTATIVES 1956 some 1,017 of the Nation's commercial move against bank mergers achieved by stock Monday, April 29, 1957 banks have disappeared by way of mergers acquisitions. and consolidations. Banks so eliminated During the last session I introduced a bill, Mr. CELLER. Mr. Speaker, under have not been, for the most part, the finan­ H. R. 5948, to provide such authority. This leave to extend my remarks in the cially weak, unsound banks that needed res­ bill was approved by the House without a RECORDi I include the following address cue in the depression pattern. Nor have they dissenting voice but the Senate was not given been, in the main, the specialized, poorly or­ opportunity to consider the measure. given by me before the convention of It is significant that after the House passed the Independent Bankers Association, at ganized, or the inefficiently managed. On the contrary, most of the banks that have dis­ my bill, Mr. Ray M. Gidney, the Comptroller the Golden Gate Hotel, Miami Beach, appeared have been growing, efficient, profit­ of the Currency, spearheaded a drive to Fla., Friday, April 26, 1957: able, vigO!I'ously competitive banks taken have the Senate Banking and Currency Com­ This morning I should like to discuss over at peak earning capacity. The merger mittee consider another bill dealing with with this most distinguished assemblage a pattern is not predominantly a situation bank mergers. This bill, drafted by Mr. Gid­ matter of grave national concern. I am re­ where two or more small, inadequately ney's assistants, represented an obvious ferring to the trend toward monolithic financed or managed banks, falling behind maneuver to head off Senate passage of banks that is wiping out independent banks in the competitive race, seek by merging to H. R. 5948. It was contrary to the Presi­ on a wholesale scale and concentrating con­ form a big integrated institution, able to dent's recommendations calling for revision trol of the Nation's banking business into compete on equal terms. On the contrary, of antitr:ust legislation to cover bank mergers fewer giant financial institutions. This a large percentage of mergers involved one accomplished by asset acquisitions, as en­ trend is an ominous one indeed for the fu­ or more giant banks having assets of $100 visaged by H. R. 5B43. ture of the independent banking system; per­ million or more. And the absorbed banks The bill drafted by the Comptroller would mited to continue unchecked, it could amend section 18 (c) of the FDIC Act and were likewise no minnows; a large percent­ give the Federal bank supervisory agencies have dangerous consequences for the en­ age of those banks having assets in excess sole jurisdiction to approve or disapprove a tire competitive economy which depends for of over $50 million. proposed merger, taking into account as one its lifeblood upon banking credit. There is yet another consideration. During of the factors to be considered whether Traditionally the banking system of the the last 35 years, the number of banks has the transaction may lessen competition un­ United States has relied for its vitality on been reduced by more than half. In 1921 duly or tend unduly to create a monopoly. vigorous competition by a multitude of in­ there were over 30,000 commercial banks serv­ Concomitantly, it would deprive the Attorney dependent banks, locally organized, locally ing the Nation's borrowers and creditors; by General of enforcement jurisdiction under financed, and locally managed. Unlike other contrast, at the end of 1956 some 13,680 com­ t\'le Clayton Act notwithstanding that 1n the countries, such as Great Britain and France, mercial banks remained in operation-a new more than 60 years since passage of the first where a few mammoth institutions control low. This despite the postwar boom, the 286 antitrust law, no one had previously sug­ nearly all the banking facilities, the Ameri­ percent growth in bank assets, the new high gested that its provisions did not apply to can system is based on unit banking-that is, level of loans and deposits, the greatly in­ banks as well as to other sectors of the Amer­ strong, growing community banks which creased use made of banking services, and ican economy. According to the Depart· provide a wide range of financial services to the enormous growth in the number of de­ ment of Justice any pretense that this meas­ the people in the area. It is the unit bank­ positors. ure would provide protection for competion ing system which has played a key role in REMEDIAL LEGISLATION TO CURB BANK MERGERS is a sham. the economic development of this country. Particularly in light of recent experience, Notwithstanding these considerations, the And it is this kind of system, premised on additional legislative action ls imperative to Comptroller's bill was approved by the Sen­ small units effectively competing with each prevent bank mergers having substantial ate during the last Congress and was again other, that our antitrust fabric is designed anti-competitive effects. At the present time adopted by the Senate this year as section to perpetuate and preserve. bank mergers are circumscribed by the pro­ 23, chapter 5 of title III of the financial in­ CONCENTRATION OF BANKING FACILITIES visions of the Sherman Act of 1890 which stitutions bill of 1957, commonly known as Against this background, what are the de­ prohibits combinations in restraint of trade, the omnibus banking bill. tails in respect to concentration of banking attempts to monopolize, or monopolization Let me quote what the Attorney General :facilities? In this connection. let me refer of trade or commerce. Illegality is estab­ had to say before our Antitrust Subcom­ you to the report of our House Judiciary lished by proof that the merger has actually mittee several weeks ago about this provision Antitrust Subcommittee, dealing with cor­ resulted in an unreasonable lessening of com­ sponsored by Mr. Gidney: porate and bank mergers. Our subcommit­ petition; it ls immaterial whether the merger "First, the proposed banking legislation tee found that at the present time, the 100 was accomplished by stock or asset acquisi­ prescribed for bank mergers would weaken largest banks control approximately 46 per­ tions. section 7 standards. The factor of compe­ cent of the total assets of all the commercial Section 7 of the Clayton Act, adopted in tition would be only one of numerous con­ banks in the country and more than 48 per­ 1914, on the other hand, deals specifically siderations to be taken into account by a cent of the bank deposits. It found that with corporate and bank mergers and bans banking agency in scanning a merger. Be­ in 10 of the 16 leading financial centers, those achieved by stock purchases where yond that, the competitive considerations 4 banks own more than 80 percent of all there is the mere reasonable probab111ty of a of section 23 specified, whether the acquisi­ commercial bank assets; 2 banks more than substantial lessening of competition or a tion may 'lessen competition unduly or tend 60 percent; that in each of the 16 leading tendency to monopoly. Responsibility for unduly to create a monopoly' are completely financial centers, the first 2 banks own more enforcing the section insofar as banks are novel and are intended simply to be less than 40 percent of all commercial bank as­ concerned was vested concurrently in the At­ stringent than those specified by the Clay­ sets; the first 4 banks more than 60 percent. torney General and the Federal Reserve ton Act, section 7, for other American busi­ There is yet another facet--concentration Board. ness. As the result, not only does that pro­ through bank holding company control. In Section 7 was designed to stop mergers be­ posal prescribe pale antitrust standards, but my State of New York, for example, 14 hold­ yond the reach of the Sherman Act but its even that lesser standard is only one of many ing companies control banks having depos­ failure to include mergers accomplished by factors banking agencies must consider. All its of $7.2 billion, amounting to 19.5 percent asset acquisitions resulted in a loopole which told, then, that proposal does little more of all commercial bank deposits in the State. so far as nonbanking corporations are con­ than give lipservice to insure competitive In Arizona, 2 holding companies control over cerned was closed by passage of the Celler­ enterprise in banking. 80 percent of all commercial bank deposits. Kefauver Act of 1950. However, because of "Banking agencies themselves recognize In Minnesota, 2 holding companes hold 45 revisions made in subsequent versions of inherent difficulties in construing this jerry· percent of the commercial deposits; in Mon­ antimerger bills, it became impracticable to built standard." tana, the same 2 companies control over include within the scope of this act corpora­ What is more, the section proposed by the 44 percent of the commercial deposits; in tions other than those subject to the juris· Comptroller would weaken the standards North Dakota, 29 percent; and in South Da­ diction of the Federal Trade Commission. which he states his office now follows in kota, 37 percent of the commercial bank de­ This left assets acquisitions by banks unaf· respect of bank mergers. In this connection posits. One holding company controls 42 :fected by the new law since authority to en. it must be remembered that under present percent of Oregon's bank deposits, and the force the provisions of section 7 dealing with law, approval by the Comptroller of the Cur­ same company in Nevada holds 78 percent of banks ls vested in the Federal Reserve Board rency is required in all cases of mergers the commercial bank deposits. and not in the Federal Trade Commission. between national banks or between a na- 1951. CONGRESSIONAL RECORD - HOUSE .6151 tional bank and a. State bank where the serving the integrity and vitality of the unit distinction between bank-holding company resultant Institution is to be operated under banking system, to work unceasingly, to pre- groups and branch-banking systems, both a national charter. May I point out that Mr. vent passage of this section. accomplish the same thing, the operation of Gidney has averred before our subcommittee On the positive side, legislation is necessary a number of banking units under one con­ that before giving his approval to any such to amend the antitrust laws to encompass trol and management. Also inescapable is merger, he wm determine whether its effect bank mergers, however accomplished. Such the fact that through the corporate device, in any section of the country may be sub· legislation must insure against the Attorney holding companies still can be used to evade stantially to lessen competition or tend to General being deprived of antitrust juris- branch-banking laws and thus defeat the de­ create a monopoly; that he will determine, diction in bank merger cases. It must also clared policies of the Sta-te regarding branch in short, whether the merger is violative of embody present section 7 standards. My banking. the policy of the Celler-Kefauver Antimerger premerger notification bill, H. R. 2143, which Largely through the efforts of your asso­ Act. He has stressed that he would not was recently approved by the subcommittee, cia.tion, Congress in 1956 enacted the Bank approve any bank merger or consolidation originally contained a section identical with Holding Company Act for the purpose of which he considers to be in violation of the my bill of last year, applying these principles. maintaining competition among banks and principles of this act. However, in order that premerger notifica- minimizing the dangers inherent in concen­ But what does the record show? It shows tion not be confused with legislation amend- tration of economic power through central­ that up to January 1956 the Comptroller's ing the substantive standards of section 7 ized banking control. But it is most unfor­ office did not even promulgate standards of the Clayton Act, as amended by the Celler- tunate that the Senate deleted from the bill embodying these principles or acquaint Its Kefauver Act, the bank merger section has a key provision passed by the House prohib­ examiners with this alleged policy. Indeed, been deleted. In the near future I will intro- iting holding-company expansion of banks it was only after our subcommittee brought duce a new bill dealing solely with bank within a State except in accordance with the this dereliction to light in December 1955 mergers. While I have not yet come to a branch-banking laws of that State. that Mr. Gidney hastily promulgated stand· final conclusion, I am giving careful consid- This whole issue of holding-company cir­ ards for considering the competitive conse­ eration to a proposal amending the antitrust cumvention of branch lines came dramati­ quences of bank mergers. laws which will (1) give the Federal bank cally to life in New York State when the First The record also shows that from April 1953 supervisory agencies jurisdiction over bank National City Bank applied to the Federal (when he assumed office) to the end of 1956, mergers but prohibit approval of any trans- Reserve Board for permission to form the Mr. Gidney approved 424 bank mergers, with action where the effect may be substantially largest bank-holding company in the Nation. banks absorbed in such transactions having to lessen competition or tend to create a Initial objective of First National City was to total resources of $6,977,985,576. Further­ monopoly; (2) require the agency to obtain acquire control of the County Trust Go. of more, from April 1953 to the end of 1954 the the views of the Attorney General in respect White Plains, N. Y., the dominant commer­ Comptroller approved 193 mergers involving to the antitrust implications of the proposed cial bank in Westchester County, and thus absorbed banks with resources of $2,581,943,- transaction, together with the views of the pierce the branch line separating New York 159. Not once during this period did he dis­ State bank supervisor in respect to banking City and Westchester. In short, through the approve an application for competitive factors, where a State bank is involved; (3) device of forming a holding company, the reasons. reserve to the Attorney General antitrust en- same management which was restricted in After hearings before our subcommittee in forcement jurisdiction. its operation under a bank charter to New May 1955, Mr. Gidney's record became a shade I hope that you will give this proposal your York City, sought to acquire a unit bank in better. Thus in June 1955, for the first time, immediate consideration and examination. another district, operate it in the same man- he informally disapproved a merger applica­ ACTION NECESSARY TO CURB HOLDING COMPANY ner a branch would be operated, and ft.out tion for competitive reasons; and followed EXPANSION the expressed will of the legislative body of that up in November 1955 by refusing, for the New York State regarding the establishment same reasons, to approve certain proposed In addition to bank merger legislation, of banks. Moreover, there was every prospect mergers in cases involving 8 banks. How­ action is equally necessary, at the Federal that the First National City Bank plan would ever, in 1955 he approved 126 bank mergers level, to prevent the holding company device initiate a chain reaction until ultimately a involving, in respect of banks absorbed, re­ from being used to circumvent State branch handful of giant New York City banks, sources of $2,015,225,452. In 1956 Mr. Gidney district lines drawn to safeguard against through the holding-company device, would approved 105 bank mergers, the banks ab­ banking monopoly. In the absence of effec- be in control of nearly every sizable bank in sorbed in such transactions having total re­ tive Federal or State legislation on the sub- the State of New York. success of the plan sources of $2,380,816,965. In that year he ject, these geographic limitations can be would have meant that the day of independ­ informally disapproved 10 applications for avoided by the simple expedient of forming ent unit and regional banking would have competitive reasons. a holding company to acquire control of passed and that money and credit in New In the last analysis, the conclusion is in­ banks throughout a State without regard to York state would be largely controlled by a escapable, as the Attorney General has testi­ district lines. As one holding company few gigantic banking institutions. fied, that Mr. Gidney has tended to give little candidly acknowledged when organized, it For these reasons, I testified at length be­ or no consideration to the question as to felt itself compelled to carry out its plans by for the Federal Reserve Board calling atten­ whether or not competition would be sub­ this method of group banking because the tion to the alarming competitive conse­ stantially lessened. In fact, the Comptroller laws of the State and the National Banking apparently assumes that a merger which Act both prohibited branch banking beyond quences of the proposal. In addition, I testi­ certain limits. fied in the early part of January 1957 before tends to monopoly is in the public interest. the State of New York Joint Legislative Com­ By his own admission, he is utterly uncon­ Such circumvention is possible notwith- mittee To Revise the Banking Laws, and cerned by the current wave of 'bank mergers­ ,.standing that a holding company system is pointed out the necessity of amending the a view, I might add, that is diametrically a substitute for a branch system and that St t b · there is no essential difference between a e's ankmg laws to prohibit any bank opposite to that of the chairman of the Fed­ holding company from acquiring in the fu­ eral Reserve Board. branches and affiliates, or subsidiary banks. ture any bank located outside the district To be blunt, Mr. Gidney's normal proce­ As the House Banking and Currency Com- prescribed for branch banks. dure is to rubberstamp, as a matter of rou­ mittee pointed out: "Great stress has been tine, any monopolistic proposal that may be placed on their difference in form, which It is gratifying that Governor Harriman presented. I recognize that it is not an un­ everyone of course recognizes. • • • (H) ow- and the New York State Legislature rec­ common administrative tendency for regu­ ever, in a large measure they are differences ognized the threat to the State banking latory agencies to be more or less responsive without a distinction. Other tha.n in form, structure implied in the First National City to the industries which they are supposed to what is the practical difference between a plan. This was evidenced by adoption on regulate. Mr. Gidney's case is more unique, branch and a bank the stock of which is January 29, 1957, of stopgap legislation, ef­ however, since he appears to have been taken owned by a holding company that can select fective until May 1, 1957, prohibiting any over completely by the giant banks he is sup­ the bank's directors and change them at its bank holding company from acquiring a posed to regulate. His concept of the public pleasure, even holding repurchase rights to bank located outside the branch banking interest is to identify the functions of his the directors' qualifying shares; that can district. It was also evidenced by legislative office with the private interests of the banks hire and fire the bank's personnel and other- approval of a measure extending this legis­ subject to his jurisdiction. wise supervise its operations; that can make lation until May 1, 1958, which I have little In light of these considerations, it is clear Its investments, handle its insurance, buy doubt that the Governor will sign. In these that to give the Federal bank supervisory its supplies, originate and place its adver- circumstances, the First National City pro­ agencies unfettered jurisdiction over the tising; can pass on its loans to local firms ceeding before the Federal Reserve Board antitrust implications of bank mergers and and individuals, usually receiving a fee for would become moot since the transaction to weaken th.e standards, all as proposed by services performed?" The fact is that "as the Comptroller, would only stimulate the each new bank is • • • added to those al- would be barred under State law. tempo of present bank merger activity. · ready a part of the holding-company system It is clear, of course, that this action at Fortunately, the bank omnibus bill, and such bank automatically becomes in effect: ' the State level is extremely important par~ particularly section 23, will not be considered though not in name, a branch of that bank- ticularly since New York is the banking cen• by the House Banking and Currency Com­ 1ng system." ter of the Nation. Nevertheless it is my firm mittee until the next session of Congress. To my mind the conclusion ls inescapable conviction that the effort to pierce branch I deem it imperative, in the interest of pre• that despite all that has been said about the district lines through the holding company .6152 CONGRESSIONAL ·RECORD - HOUSE April 30 device ts a matter of national import and Act so as to prevent holding company ex­ when it begins hearings on the omnibus should, therefore, be considered a.t the Fed­ pansion except in accordance with State banking b111. Part of the effort should be eral level. Otherwise, action would be re­ geographic limitations applicable to branch directed to obtain the support of other like­ quired in State after State, on a piecemeal banks. Such an amendment should be sim­ minded organizations determined to stop the basis, to obtain legislation preventing hold­ ilar to a provision contained in the House­ trend toward monolithic banking. ing company attempts at banking domi­ approved b111 which was deleted by the The consequences of banking monopoly nance. For these reasons, I urge you im­ Senate. are ominous indeed. It is my hope that with mediately to underta&e an an-out effort, Your efforts should be concentrated toward your help Congress will take prompt, ef­ which I will join, to pave the way-for amend­ having the amendment considered by the fective action to insure that that condition ment of the Federal Bank Holding Company House Banking and Currency Committee will not come to pass.

It seems to me that this bill should man. We enlist your assistance in making HOUSE OF REPRESENTATIVES be debated and considered in the regular May 14, Washington, D. C.'s first Interfaith manner rather than on the Consent Cal­ Day, a success. Although such a day has TUESDAY, APRIL 30, 1957 been an apnual occasion in many cities endar. Are we on the one hand making throughout the United States, this is the The House met at 12 o'clock noon. an effort to remove land from produc­ first time an Interfaith Day has been spon­ The Chaplain, Rev. Bernard Braskamp, tion through use of the soil bank while sored in and for the Greater Washington, D. D., offered the following prayer: the same Department of Agriculture is D. C., area. As in the case of other cities, being asked on the other hand to bring our Washington Interfaith Committee con­ Most merciful and gracious God, help -land of this kind into production? sists of representatives of the Protestant, us during this day to live humbly and While it may be true that this will not Catholic, and Jewish faiths through their honestly, sincerely, and serenely, never require additional administrative money, Almas Temple Shrine, Knights of Columbus, proving disloyal and recreant to any of and B'nai B'rith organizations. it is certainly true that additional loan While many outstanding events have been our duties but always discharging them funds will be required. It is impossible scheduled for May 14, the Interfaith. Com­ faith:ully and in the fear of the Lord. to predict how much will be needed but mittee felt it would be quite fitting for the Inspire us with a courageous and con­ it will, no doubt, run into a considerable day's activities to close with a professional fident approach to all our problems, and sum of money. The Farmers' Home Ad­ ball game played in its honor, since baseball may we seek to solve them with a trustful ministration will need more loan funds, is a living embodiment of American democ­ and firm reliance upon divine wisdom since they are not available, or funds will racy in action. Thus, through the coopera­ and strength. be shifted from other needy borrowers. tion of the Washington Senators, the May Grant that we may not be timid and 14 night game between the Senators and Another objection to the bill is the the White Sox will honor Interfaith Day. : cowardly in maintaining our convictions type of security that can be given to the I would greatly appreciate your presenting and principles even though they may . Government under this plan. If it is the this matter to your colleagues and encour­ seem to run counter to popular practice intention of the Congress of the United aging their active participation. Tickets for and prejudice. States to grant loans of this type in the the game will sell for the regular price, 75 May we be true, for there are those desert with so little security, then we cents to $2.50. Prior to game time, awards who trust us; may we be pure, for there certainly ought to review our loan poli- will be made to outstanding national and are those who care; may we be strong, for . cies so that other parts of the country local personages in public life for their con­ there is much to suffer; may we be brave, tribution to better understanding among · with more desirable resources will also people. In addition, parades, band music, for there is much to dare. be given consideration. and a program of entertainment have been Hear us in Christ's name. Amen. While I agree that it is an intriguing planned. . The Journal of the proceedings of yes­ idea to make the desert bloom, I feel For the convenience of persons interested terday was read and approved. that with agricultural production now . in attending the Washington Senators-Chi­ cago White Sox ball game May 14, 1957, exceeding our market demand, it ought · tickets can be obtained from any of the fol- to be the first responsibility of the De­ lowing: . , MESSAGE FROM THE PRESIDENT partment of Agriculture and the Con­ Alton S. Bradford, Almas Temple Shrine, A message in writing from the Presi­ gress to assist in the well-established 1315 K Street NW. dent of the United States was communi­ farming communities of this country Charles Zipperi:nan, Jewish Community cated to the House by Mr. Miller, one of where the cost-price squeeze has placed Center, 16th and Q Streets NW. his secretaries. farm families in a difficult financial Henry G. Catucci, Knights of Columbus, position. 918 10th Street NW. (Checks should be made payable to Wash­ DESERT-LAND ENTRYMEN ington Interfaith Committee.) INTERFAITH COMMITTEE Your cooperation in this matter is greatly Mr. MARSHALL. Mr. Speaker, I ask appreciated. unanimous consent to address the House Mr. RIVERS. Mr. Speaker, I a&"k Sincerely yours, for 1 minute and to revise and extend unanimous consent to address the House DEWEY SHORT, my remarks. for 1 minute and to revise and extend Assistant Secretary of the Army The SPEAKER. Is there objection to my remarks. (Civil-Military Affairs). the request of the gentleman from The SPEAKER. Is there objection to · Mr. Speaker, I urge that my colleagues Minnesota? the request of the gentleman from take note of this. They cannot do any .. There was no objection. South Carolina? thing· better for a greater cause. Mr. MARSHALL. Mr. Speaker, I take There was no objection. this opportunity to inform Members Mr. RIVERS. Mr. Speaker, a former . that it is my intention to object when distinguished Member of this body, the ADJOURNMENT OVER H. R. 3753 is called. This is a bill to Honorable Dewey Short, who, as you extend :financial assistance to desert· know, is now Assistant Secretary of the · Mr. M~CORMACK. Mr. Speaker, I land entrymen to the same extent as Army for civil and military affairs, has ask unan_imous consel}-t tJ:at when the such assistance is available to home­ written me a letter asking that I read it House adJourns today it adJourn to meet stead entrymen. to my colleagues with reference to a on Thursday next. . I regret very much that it is necessary very, very important program of which The SPEAKER. Is there obJection to to object since a valued member of our he has been made chairman. the request of the gentleman from Mas- The letter is as follows: sachusetts? . . Committee on Appropriations, the gen­ There was no obJect1on. tleman from Idaho [Mr. BUDGE], is the DEPARTMENT OF THE ARMY, author of this bill. Our colleague from OFFICE OF THE ASSISTANT SECRETARY, Washin gton, D. C., April 25, 1957. Idaho is a conscientious, hard-working ARE GOVERNMENT DEPARTMENTS member of our Committee on Appropria­ Hon. L. MENDEL RIVERS, tions. However, in spite of my high re­ House of Representatives, IN COLLUSION WITH LABOR Washington, D. C. RACKETEERS? gard for him, I do feel that H. R. 3753 DEAR MENDEL: I am writing to you on be· is bad legislation, particularly at this half of the Interfaith Committee to which Mr. SMITH of Wisconsin. Mr. Speak­ time. I have been appointed Government chair- er. I ask unanimous consent to address