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January 20, 1970 CONGRESSIONAL RECORD- HOUSE 277 Na.tiona.l Timber Supply Act. Lately the For­ OUR EDUCATIONAL SYSTEM without regard for the harm this will do est Service seems to have acquiesed. to the IN CRISIS to the student. sohool of clear cutting--except they don't Parents, students, and the general oa.ll it that. There is a new word in the Forest public are justifiably upset. Service for clear cutting. It is oalled. "even aged management"-a very positive sounding HON. DON FUQUA We have made every effort within the phrase for questionruble management. OF FLOJUDA Congress to pass legislation which would alleviate this situation and allow for The American public is faced with revers­ I~ THE HOUSE OF REPRESENTATIVES ing a trend toward "clear cutting" back to orderly processes. I have called on the "selective cutting". The clear cutting trend Monday, January 19, 1970 Attorney General to point out that many has prospered in the new forestry schools Mr. FUQUA. Mr. Speaker, recent Court of our school distlicts face a clisis that many of which are infiuenced, promoted and local boards simply are unable to solve. underwritten by the lumbering interests. decisions ordering immediate integration The lumber lobby has been working hard to our school systems is playing havoc I have pleaded that the Justice Depart­ in Washington. The House Agriculture a.nd with our educational system. ment utilize every means to help our Forestry Committee has already fa-yorably re­ Students, without regard to race, creed, local officials in this regard. ported on their version of the NatiOnal Tim­ or color, are the actual victims of the I call upon the courts to recognize ber Supply Act. The Senate seems inclined to disruptive situation which faces our that there are differences in the various schedule hearings. Some of Wisconsin's big­ school districts and that each should be gest paper industries have endors~ it. ~e school boards. judged on its own merit and not a sum­ public remains unaware of what IS taking School officials find themselves at mid­ mary order which does not take into re­ place. term with an insoluble problem of trans­ gard the children in our schools. Between this innocent-sounding act and ferring students and faculty from school the lumbering trends-the cries of "Timber!" Regardless of what can be done, edu­ will soon be echoing in our national forests to school without orderly planning. cation has suffered and will suffer be­ as they never have since we fought to save Cow·ses of study begun under one teacher cause of the ill-advised actions of the them a quarter of a century ago. in one school setting, are to be changed courts.

HOUSE OF REPRESENTATIVES-Tuesday, January 20, 1970 The House met at 12 o'clock noon. Mr. CONABLE. Mr. Speaker, one of Sadly, the ship was only 90 minutes The Chaplain, Rev. Edward G. Latch, the President's primary objections to the from its destination, but within 27 min­ D.D., offered the following prayer: HEW appropriations bill is that it con- utes 678 of the 904 men on board were Whosoever heareth these sayings of tains some $400 million in excess of his lost in the iceberg waters of the North Mine and doeth them, will be like a wise budget request for grants to schools in Atlantic. man who built his house upon a rock.­ federally impacted areas. The additional Included among the group on the ship Matthew 7: 24. funds for this program are highly ques- were four chaplains-a priest, a rabbi, Eternal God who art the refuge of the tionable, as shown by the recent report and two ministers. They, too, lost their humble and the strength of the faith­ of the Battelle Institute which was com- lives, but the manner in which they fell ful help us to realize more than ever missioned by Congress to study the im- to death was unusual and has an inter­ th~t the · only firm foundation upon pact aid program. esting story. Briefly, I would like to which our Nation can build safely is a The Battelle study found that the share with you some facts of that fate­ true faith in Thee and in a real devotion current program overcompensates many ful venture. to moral and spiritual values. districts, allowing them to maintain a These chaplains went down with their May the security of our American way, higher level of education with less local ship because they had given their life the survival of our democratic spirit, effort. In many cases these overpayments jackets to soldiers who lost theirs in the and the support of our free institutions go to wealthy school districts: for ex- confusion or had left them below deck. find inspiration in the assurance of Thy ample some $5.8 million in impact aid Meanwhile, with utter disregard for power, Thy wisdom, and Thy love. went to the richest county in the Nation self and having given their own life Each day may we keep ourselves com­ in 1968, while the 100 poorest counties jackets away, the chaplains stood hand mitted to Thee whose love never falters, received only a total of $3.?. million. in hand, praying to God they served for whose light never fades, and whose life The study also noted that impact aid the sa.fety of those men who were leav­ never fails. Thus may we face this day tends to frustrate State policies designed ing the sinking ship in fear and terror. with courage and faith knowing Thou to equalize educational opportunities. Appropriately, I feel, the delegates to art with us always and all the way. Since impact aid payments cannot be the Civitan International Convention in taken into account in making State Dallas, Tex., on June 27, 1962, adopted In the Master's name we pray. Amen. equalization payments, States must use a resolution honoring the clergymen by their scarce funds to double pay districts asking the respective States to set aside THE JOURNAL with Federal impact, instead of being and program a week each year to be able to use those funds where the gap known as Interr.ational Clergy Week. The Journal of the proceedings of between educational needs and financial · In my home State of Tennessee last yesterday was read .and approved. resources is the gr.eatest. . year, the Governor proclaimed the week Certainly, pourmg more money 1~to of February 3 as Clergy Week. MESSAGE FROM THE SENATE this program will only create g:ea~r n~- In view of this action, I feel it is only equities for ~he ~any school distncts m fitting that this Congress pass a joint A message from the Senate by Mr. Ar­ the country m which th~ need for finan- resolution calling on President Nixon to rington, one of its clerks, announced that -cial assistance .may be JUst ~ great or proclaim the week of February 3 as In- the Senate had passed without amend­ greater, but which do not receive support. ternational Clergy Week in the United ment a concurrent resolution of the House of the following title: States. H. Con. Res. 477. Concurrent resolution INTERNATIONAL CLERGY WEEK Therefore, Mr. Speaker, I have intro­ providing for a joint session of Congress on

296 CONGRESSIONAL RECORD- HOUSE January 20, 1970 ences are the only avenues in filling the very What is the ADA in your school district RESPONSE OF CHARLES E. SPEARS, SUPERIN• real voids existing. grades K-12? TENDENT, PIKEvn.LE, IND.-PIKEVILLE, KY., Do you regard your present Title I pro­ Answer: 1,050. JANUARY 18, 1970 grams as effective in meeting special educa­ What was the amount of your ESEA Title How many children in your district are tion needs of educationally disadvantaged I grant in each of the following fiscal benefitting from education programs funded children? years? under Title I of ESEA? Answer: Absolutely! The real tragedy is Answer: 1968, $13,355, 1969, $14,278, 1970, Answer: 413. $16,159. that we have started too late with too little. What is the ADA in your school district Profound impacts are being felt and seen. In your judgment, do you believe that the grades K-12? Recent hearings in Washington disclosed Title I programs are needed to meet the Answer: 1,260. that inadequate funding was the greatest special needs of educationally disadvantaged What was the amount of your ESEA Title obstacle in the path of more effectively children? Answer: No, not in the rural areas of Iowa. I grant in each of the following fiscal years? reaching the disadvantaged. Others now con­ Answer: 1968 $62,621., 1969 $56,796, 1970 tend that we cannot effectively utilize extra Do you regard your present Title I pro­ $58,587.00. funds contained in the HEW Appropriation grams as effective in meeting special educa­ Bill because the funds are being misdirected tion needs of educationally ditadvantaged What additional funds, if any, could you children? effectively apply to your Title I programs and are not reaching the disadvantaged con­ in fiscal year 1970 over and above the present templated under Title I ESEA. Your brief Answer: Children needing attention in level of funding? In fiscal year 1971? comments on these contentions would be small groups or on an individual basis do Answer: 1970 $15,000, 1971 $20,000. appreciated. receive special help. Comment: Lack of funds coupled with tim­ Recent hearings in Washington disclosed In your judgment, do you believe that the ing in appropriations are the major deter­ that inadequate funding was the greatest Title I programs are needed to meet the special needs of educationally disadvantaged rents to more effective-efficient planning for obstacle in the path of more effectively reach­ children? enhancing subsequent meaningful programs. ing the disadvantaged. Others now contend There have no doubt been some minimal that we cannot effectively ut111ze extra funds Answer: Yes. abuses but have every confidence that mam­ contained in the HEW Appropriation Bill Do you regard your present Title I pro­ moth strides have been made in creative beea use the fundt are being misdirected and grams as effective in meeting special educa­ experiences being implemented more com­ are not reaching the disadvantaged contem­ tion needs of educationally disadvantaged children? mensurate with the unique needs of these plated under Title I ESEA. Your brief com­ youth. ments on these contentions would be ap­ Answer: Yes, without question. preciated. Recent hearings in Washington disclosed that inadequate funding was the greatest RESPONSE OF ROBERT L. SMrrH, SUPERIN• Comment: Schools would benefit more by receiving general aid on the basis of need. obstacle in the path of more effectively reach­ TENDENT, SANDUSKY CrrY ScHOOLS, SAN· ing the disadvantaged. Others now contend DUSKY, OHIO, JANUARY 17, 1970 RESPONSE OF J. A. DIXON, SUPERINTENDENT, that we cannot effectively utilize extra funds How many children in your district are BELLAIRE CrrY, BELLAIRE, OHIO, JANUARY 17, contained in the HEW Appropriation Blll be­ benefitting from education programs funded 1970 cause the funds are being misdirected and under Title I of ESEA? are not reaching the disadvantaged contem­ Answer: 144. How many children in your district are plated under Title I ESEA. Your brief com­ What is the ADA in your school district benefitting from education programs funded ments on these contentions would be appre­ grades K-12? under Title I of ESEA? ciated. Answer: 6, 723 . . Answer: 1967, 324; 1969, 213; 1970, 190. Comment: Our funds are reaching the eco­ What was the amount of your ESEA Title What is the ADA in your school district nomically and educationally disadvantaged I grant in each of the following fiscal years? grades K-12? children in our school. Only 3% is used to ad­ Answer: 1968 $62,505.20, 1969 $57,547.14, Answer: 3,464. minister our project. 97% is spent on salaries 1970 $47,243.59. What was the amount of your ESEA Title for special quallfl.ed teachers, for special What additional funds, if any, could you I grant in each of the following fiscal years? materials and equipment, for special services effectively apply to your Title I programs in Answer: 1968, $74,665.62; 1969, $67,660.09; to children. fiscal year 1970 over and above the present 1970, $59,762.87. level of funding? In fiscal year 1971? What additional funds, if any, could you RESPONSE OF HAROLD CONLEY, SUPERINTEND­ Answer: 1970 $15,000, 1971 $15,000. effectively apply to your Title I programs in ENT, AND KENNETH MCCAULEY, PROGRAM In your judgment, do you believe that the fiscal year 1970 over and above the present DIRECTOR, IRONTON CrrY, OHIO, JANUARY 18, Title I programs are needed to meet the level of funding? In fiscal eyar 1971? 1970 special needs of educationally disadvantaged Answer: 1970, $10,000; 1971, $20,000. children? How many children in your district are In your judgment, do you believe that the benefitting from education programs funded Answer: Yes. Title I programs are needed to meet the spe­ Do you regard your present Title I pro­ under Titie I of ESEA? cial needs of educationally disadvantaged Answer: 281. grams as effective in meeting special educa­ children? tion needs of educationally disadvantaged What is the ADA 1n your school district Answer: Yes. I believe the Title I Programs grades K-12? children? are needed to meet the special needs of our Answer: Yes. Answer: 3,287 (No. students K-12, Oct. children. We are a district without the funds 1969). Recent hearings in Washington disclosed to provide the individual or small-group that inadequate funding was the greatest What was the amount of your ESEA Title instruction need. I grant in each of the following fiscal years? obstacle in the path of more effectively Do you regard your present Title I pro­ reaching the disadvantaged. Others now con­ Answer: 1968 $86,666.96, 1969 $79,529.67, grams as effective in meeting special educa­ 1970 $73,450.67. tend that we cannot effectively utilize extra tion needs of educationally disadvantaged funds contained in the HEW Appropriation What additional funds, if any, could you children? effectively apply to your Title I programs in Bill because the funds are being misdirected Answer: Yes. Our staff is convinced that and are not reaching the disadvantaged con­ fiscal year 1970 over and above the present this program is helping disadvantaged chil­ level of funding? In fiscal year 1971? templated under Title I ESEA. Your brief dren catch up. comments on these contentions would be Answer: 1970 $5,000, 1971 $6,000. appreciated. Recent hearings in Washington disclosed In your judgment, do you believe that the Comment: Title I funds are certainly that inadequate funding was the greatest Title I programs are needed to meet the reaching the disadvantaged in our district obstacle in the path of more effectively reach­ special needs of educationally disadvantaged and are being effectively used. ing the disadvantaged. Others now contend children? Although we have reason to believe that that we cannot effectively utilize extra funds Answer: Yes, we feel that Title I is serving our present program is meeting a definite contained in the HEW Appropriation Bill well our disadvantaged children here. need in helping disadvantaged children, it is because the funds are being misdirected and Do you regard your present Title I pro­ felt that the present level of funding is much are not reaching the disadvantaged contem­ grams as effective in meeting special educa­ too low. We are certain that an increase in plated under Title I ESEA. Your brief com­ tion needs of educationally disadvantaged funding to at least the level of 1968 would ments on these contentions would be appre­ children? enable us to do an even better job. ciated. Answer: We do, definitely! Further curtailment would negate gains Comment: We are a district with a low Recent hearings in Washington disclosed already made. assessed valuation of $9500 per pupil and we that inadequate funding was the greatest were never able to have programs to help obstacle in the path of more effectively RESPONSE OF Wn.FORD E. ANDERSON, ADEL these children before we received the Fed­ reaching the disadvantaged. Others now con­ COMMUNITY SCHOOL, ADEL, IOWA, JANUARY eral assistance. Unless this is continued, it tend that we cannot effectively utilize extra 18, 1970 will be necessary to discontinue all such funds contained in the HEW Appropriation programs. We are not serving all the disad­ Bill because the funds are being misdirected How many children in your district are vantaged children now that need help be­ and are not reaching the disadvantaged con­ benefitting from education programs funded cause of the lack of funds. Anything that can under Title I of ESEA? templated under Title I ESEA. Your brief be done to help us meet the needs of these comments on these contentions would be Answer: 61. children will be greatly appreciated. appreciated. January 20, 1970 CONGRESSIONAL RECORD- HOUSE 297 Commen.t! Our present Title I Project that we cannot effectively utilize extra funds Answer: Yes. Local district funds in Ken­ seems almost adequate. However, we could contained in the HEW Appropriation Bill be­ tucky schools will not provide for their need. use another teacher and another aide in cause the funds are being misdirected and Do you regard your present Title I pro­ our Project. 1ncreased salaries and prices, are not reaching the disadvantaged con­ . grams as effective in meeting special educa­ have, of course, created some problems. We templated under Title I ESEA. Your brief tion needs of educationally disadvantaged are quite pleased with our Title I Program. comments on these contentions would be ap­ children? preciated. Answer: Our program is a good one and RESPONSE OF DR. JACK L. GRIFFIN, TuLSA Comment: I think that inadequate fund­ the teachers .are working very hard. The PUBLIC SCHOOL, INDEPENDENT No. 1, TULSA, ing of educational programs is a problem for amount of funds is not adequate. OKLA., JANUARY 19, 1970 all school districts. I assure you that the Recent hearings in Washington disclosed .How many children in your district are Ponca City School District can effectively that inadequate funding was the greatest utilize additional funds for Title I Programs. obstacle in the path of more effectively benefttting from ~dueation programs funded For example, we had to drop our elementary reaching the disadvantaged. Others now con­ under Title .I of ESEA? summer program because of the cutback in tend that we cannot effectively utilize extra Answer: 25,052. funds contained in the HEW Appropriation What is the ADA in your school district Title I Funding. Bill because the funds are being misdirected gr&liea K-12? and are not reaching the disadvantaged con­ Answer: 74,067. RESPONSE OF RAYMOND L . DOMBROWSKI, ERIE, What was the amount of your ESEA Title PA., JANUARY 18, 1970 templated under Title I ESEA. Your brief comments on these contentions would be I grant ln ~a.ch of the following fiscal years? in How many children your district are appreciated. Answer': 1968 $1,405,589, 1969 $1,341,366, benefitting from education programs funded Oomment: Inadequate funding is correct. 1970 $1,224.076~ under Title I of ESEA? What additional funds, if any, could. you Where is the misdirecting being done? If we Answer: 4,547. can-or may-have an amount as granted to effectively apply to your Title I programs in What is the ADA in your school district the Dorsett Education System, Inc., and have fiscal year 1970 over and above the present grades K-12? only a limited number of students, en disclosed children? on a sliding scale of payment, if it succeeds that inadequate funding was the greatest Answer: Very definitely. in less than 80 hours; it will be penalized obstacle in thepath of more effectively reach­ Do you regard your present Title I programs if it exceeds the time limit. The contract ing the disadvantaged. Others now contend as effective in meeting special education could amount to as much as $2.5 million over that we cannot effectively utilize extra funds needs of educationally disadvantaged chil­ five years. -contained in the HEW Appropriation Bill be­ dren? cause the funds are being misdirected. and Answer: Yes, however, due to reduced RESPONSE OF EDWA:&D J. CONDON, SUPERIN­ are not reaching the disadvantaged contem­ funds all needs are not met. TENDENT, WOONSOCKET EDUCATION DEPART­ plated under Title I ESEA. Your brief com­ Recent hearings in Washington d:lsclosed MENT, WOONSOCKET, R.I., JANUARY 18, 1970 ments on these contentions would be ap­ that inadequate funding was the greatest How many children in your district are preciated. obstacle in the path of more effectively reach- benefitting from education programs funded Comment: The Tulsa Public Schools Title 1ng the disadvantaged. Others now contend under Title I of ESEA? I program has been stringently audited each that we cannot effectively utilize extra funds Answer: 565, school year 1969-70; 225, sum­ year by the Oklahoma State Department of contained in the BEW Appropriation Bill mer 1970 estimate; for a total of 790 . .Education and no evidence of misdirected because the funds are being misdirected and What is the ADA in your school district funds has been found. Additional funds are not reaching the disadvantaged contem­ grades K-12? could be expeditiously utilized in the area plated under Title I ESEA. Your brief com­ Answer: 7,316. of health and nutrition. ments en these contentions would be ap­ What was the amount of your ESEA Title I preciated. grant in each of the following fiscal years? RESPONSE OF ALLEN RoBSON, ED. D., PONCA Comment: The State Dept. of Education in Answer: 1968 $252,026, 1969 $241,086, 1970 CITY INDEPENDENT No. 71, PONCA CITY, Pennsylvania sees to it that all aspects of 215,361. OKLA.• JANUARY 17, 1970 Title I of ESEA are met and not misdirected. What additional funds, if any, could you effectively apply to your Title I programs in How many children in your district are RESPONSE OF MRs. EuNICE HARPER, SUPERIN­ fiscal year 1970 over and above the present benefitting 1rom education programs funded TENDENT, RACELAND-WORTHINGTON, IND.­ level of funding? In fiscal year 1971? under Title I of ESEA? Answer: 1970 $50,000, 1971 $275,000. Answer: 460. RACELAND, KY., JANUARY 17, 1970 In your judgment, do you believe that the What 1s the ADA in your school district How xnany children in your district are benefitting from education programs funded Title I programs are needed to meet the spe­ grades K-12? cial needs of educationally disadvantaged Answer. 6,525. under Title I of ESEA? Answer: 100 special reading programs, one children? What was the amount of your ESEA Title I Answer: Yes, please see attached booklet grant in each of the following fiscal years? teacher, need two; 450 students, fust through (not printed in RECORD)~ Answer: 1968 $153,624.11, 1969 $121,582.69, sixth grade get to use Library 1 hour per 1970 $91,947. week, per student; need two librarians. Do you regard your present Title I pro­ What additional funds, if any, could you What is the ADA in your school district grams as effective in meeting special ~duca­ effectively apply to your Title I programs In grades K-12? tional needs of educationally disadvantaged fiscal year 1970 over and above the present Answer: 898. children? level of funding? In fiscal year 1971? What was the amount of your ESEA Title Answer: Yes. Heavy concentration in spe­ Answer~ 1970 $40,000, 1971 $40,000. I grant in each of the following fiscal years? cial areas helps students meet school de­ ln your judgment, do you believe that the Answer: 1968, $21,863, 1969, $19,811, 1970, mands. Title I programs are needed to meet the spe­ $18,097. cial needs of educationally disadvantaged What additional funds, if any, could you RESPONSE OF H. S. MCCRACKEN, DEPUTY Su­ children? effectively apply to your Title I programs in PERINTENDENT, BEAUFORT DISTRICT, BEAU­ Answer: Yes. fiscal year 1970 over and above the present FORT, S.C., RECEIVED JANUARY 18, 1970 Do you regard your present Title I pro­ level of funding? In fiscal year 1971? How many children in your district are grams '8.S effective in meeting special educa­ Answer: 1970, at least.10,000; 1971, $10,000; benefitting from education programs funded tion. needs of educationally disadvantaged no moneys for supplies, funds "for two teach­ under Title I of ESEA? children? ers and one aide at present. Funds could be Answer: 5,725. Answer: Yes. doubled. What is the ADA in your school district Recent hearings in Washington disclosed In your judgment, do you believe that the grades K-12? that inadequate funding was the greatest ob­ Title I programs are needed. to meet the Answer: 9,752. stacle in the path of more effectively l'each­ special needs of educationally disadvantaged What was -the amount of your ESEA Title ing the disadvantaged. Others now contend children? I grant in each of the following fiscal years? 298 CONGRESSIONAL RECORD- HOUSE January 20, 1970 Answer: 1968 $462,670, 1969 $464,703, 1970 Answer: 2955. RESPONSE OF E. C. STIMBERT, SUPERINTENDENT, $381,849. What is the ADA in your school district MEMPHIS CITY SCHOOLS, MEMPHIS, TENN., What additional funds, if any, could you grades K-12? JANUARY 17, 1970 effectively apply to your Title I programs in Answer: 7645. How many children in your district are fiscal year 1970 over and above the present What was the amount of your ESEA Title level of funding? In fiscal year 1971? benefitting from education programs funded I grant in each of the following fiscal years? under Title I of ESEA? Answer: 1970 $83,000, 1971 $475,000. Answer: 1968 $282,668, 1969 $259,345, In your judgment, do you believe that the Answer: 29,411. 1970 $239,827. What is the ADA in your school district Title I programs are needed to meet the What additional funds, if any, could you grades K-12? special needs of educationally disadvantaged effectively apply to your Title I programs in children? Answer: 127,347. fiscal year 1970 over and above the present What was the amount of your ESEA Title I Answer: Yes, they provide personnel and level of funding? In fisca.l year 1971? materials to use in developing experiences grant in each of the following fiscal years? Answer: 1970 20,000, 1971 75,000. Answer: 1968 $3,149,017, 1969 $2,901,131, denied the disadvantaged, prior to entering In your judgment, do you believe that the 1970 $2,764,659. school. Title I programs are needed to meet the Do you regard your present Title I pro­ What additional funds if any, could you special needs of educationally disadvantaged effectively apply to your Title I programs grams as effective in meeting special ~duca­ children? tion needs of educationally disadvantaged in fiscal year 1970 over and above the present Answer: Yes. level of funding? In fiscal year 1971? children? Do you regard your present Title I pro­ Answer: Yes, according to evaluations Answer: 1970 $813,000, 1971 $1,325,000. grams as effective in meeting special educa­ In your judgement, do you believe that the made thus far, indications are that educa­ tion needs of educationally disadvantaged tional levels of the disadvantaged have been Title I programs are needed to meet the children? special needs of educationally disadvantaged raised. Answer: Yes. Recent hearings in Washington disclosed children? Recent hearings in Washington disclosed Answer: Yes. that inadequate funding was the greatest ob­ that inadequate funding was the greatest stacle in the path of more effectively reach­ Do you regard your present Title I pro­ obstacle in the path of more effectively grams as effective in meeting special educa­ ing the disadvantaged. Others now contend reaching the disadvantaged. Others now that we cannot effectively utilize extra funds tion needs of educationally disadvantaged contend that we cannot effectively utilize children? contained in the HEW Appropriation Bill be­ extra funds contained in the HEW Appro­ cause the funds are being misdirected and Answer: Yes. priation Bill because the funds are being Recent hearings in Washington disclosed are not reaching the disadvantaged contem­ misdirected and are not reaching the dis­ plated under Title I ESEA. Your brief com­ that inadequate funding was the greatest advantaged contemplated under Title I obstacle in the path of more effectively reach­ ments on these contentions would be ESEA. Your brief comments on these con­ appreciated. ing the disadvantaged. Others now contend tentions would be appreciated. that we cannot effectively utilize extra funds Comment: Speaking for Beaufort County Comment: Hopefully we will be informed only, all funds have been used to raise the contained in the HEW Appropriation Bill of our total grant for FY 70 very soon. We because the funds are being misdirected and educational level of the economically should be receiving notice of our total grant deprived. are not reaching the disadvantaged con­ for FY 71 and FY 72 for effective planning. templated under Title I ESEA. Your brief RESPONSE OF A. A. THOMPSON, PIERRE INDE­ comments on these contentions would be PENDENT ScHOOL DISTRICT, PIERRE, S. DAK., RESPONSE OF ERNEST ROBINSON, SUPERIN­ appreciated. JANUARY 17, 1970 TENDENT, CARTER COUNTY, GRAYSON, KY., Comment: 100% of our Title I funds are JANUARY 18, 1970 utilized in programs for the disadvantaged. How many children in your district are We need $813,000 to fund the 1969-1970 regu­ benefitting from education programs funded How many children in your district are lar school year and summer Title I Pro­ under Title I of ESEA? benefitting from education programs funded gram at a level generally commensurate with Answer: 320. under Title I of ESEA? the program operated during the 1967-1968 What is the ADA in your school district Answer: 2,300. school year. grades K-12? What is the ADA in your school district Answer: 2,822. grades K-12? Answer: 4,650. RESPONSE OF J. M. WHITAKER, ASSISTANT What was the amount of your ESEA Title I SUPERINTENDENT, SPECIAL SERVICES, EL PASO grant in each of the following fiscal years? What was the amount of your ESEA Title I grant in each of the following fiscal years? INDEPENDENT SCHOOL DISTRICT, EL PASO, Answer: 1968 $46,636,25, 1969, $40,830.35, TEx., JANUARY 17, 1970 1970 $36,362. Answer: 1968, $349,447; 1969, $314,471; What additional funds, if any, could you 1970, $285,065. How many children in your district are effectively apply to your Title I programs in What additional funds, if any, could you benefitting from education programs funded fiscal year 1970 over and above the present effectively apply to your Title I programs in under Title I of ESEA? level of funding? In fiscal year 1971? fiscal year 1970 over and above the present Answer: 5,830. Answer: 1970 $10,000, 1971 $10,000. level of funding? In fiscal year 1971? What is the ADA in your school district In your judgment, do you believe that the Answer: 1970, $160,000; 1971, $180,000. grades K-12? Title I programs are needed to meet the spe­ In your judgment, do you believe that the Answer: 56,981. cial needs of educationally disadvantaged Title I programs are needed to meet the What was the amount of your ESEA Title children? special needs of educationally disadvantaged I grant in each of the following fiscal years? Answer: Yes. children? Answer: 1968 $1,016,779, 1969 $883,981, Do you regard your present Title I pro­ Answer: Yes, children are receiving assist­ 1970 $781,025. grams as effective in meeting special educa­ ance in clothing, food, and the teacher has What additional funds, if any, could you tion needs of educationally disadvantaged more materials and equipment with which effectively apply to your Title I programs in children? fiscal year 1970 over and above the present to present a program. level of funding? In fiscal year 1971? Answer: Yes. In area of reading-addi­ Do you regard your present Title I pro­ tional funds are needed to meet other needs. Answer: 1970 50% increase, 1971 50% in­ grams as effective in meeting special educa­ crease. Recent hearings in Washington disclosed tion needs of educationally disadvantaged In your judgment, do you believe that the that inadequate funding was the greatest children? Title I programs are needed to meet the obstacle in the path of more effectively Answer: Yes, in addition to the assistance special needs of educationally disadvantaged reaching the disadvantaged. Others now con­ given in the regular, summer programs have children? tend that we cannot effectively utilize extra been designed to meet the needs of the edu­ Answer: Yes. funds contained in the HEW Appropriation cationally and economically deprived child. Do you regard your present Title I pro­ Bill because the funds are being misdirected Recent hearings in Washington disclosed grams as effective in meeting special educa­ and are not reaching the disadvantaged con­ that inadequate funding was the greatest tion needs Of educationally disadvantaged templated under Title I ESEA. Your brief obstacle in the path of more effectively children? comments on these contentions would be reaching the disadvantaged. Others now con­ Answer: Yes. appreciated. tend that we cannot effectively utilize extra Recent hearings in Washington disclosed Comment: There seems to be the general funds contained in the HEW Appropriation that inadequate funding was the greatest feeling that Title I funds in South Dakota Bill because the funds are being misdirected obstacle in the path of more effectively reach­ are being used for the purposes intended. and are not reaching the disadvantaged con­ ing the disadvantaged. Others now contend templated under Title I ESEA. Your brief that we cannot effectively utilize extra funds RESPONSE OF KENNETH WATLINGTON, JACK­ comments on these contentions would be contained in the HEW Appropriation Bill SON CITY SCHOOLS, JACKSON, TENN., JANU­ appreciated. because the funds are being misdirected and ARY 17, 1970 Comment: The big difficulty in providing are not reaching the disadvantaged contem­ How many children in your district are expanded programs is the lack of facilities plated under Title I ESEA. Your brief com­ benefitting from education programs funded or additional classrooms in which to provide ments on these contentions would be ap­ under Title I of ESEA? the programs and services needed. preciated. January 20, 1970 CONGRESSIONAL RECORD- HOUSE 299 Comment: Title I funds have been effec­ grams as effective in meeting special educa­ ing, Head Start, Project Follow Through, tive in our district to the extend of our fund­ tion needs of educationally disadvantaged Teacher Corps, and certain special projects ing; however, to reach all students who qual­ children? under Title III, ESEA, have been coordinated ify, a higher rate of funding is necessary. Answer: Yes; with our present allotment to better meet the needs of the disadvan­ but more could be done if we had the money. taged. RESPONSE OF J'ULIUS TRUELSON, SUPERINTEND_.. Recent hearings in Washington disclosed ENT OF ScHOOLS, FORT WORTH INDEPENDENT that inadequate funding was the greatest RESPONSE OF MRS. ROSEN, PLANNER & ADMIN­ SCHOOL DISTRICT, FORT WORTH, TEX., JAN­ obstacle in the path of more effectively reach­ ISTRATIVE ASSISTANT, OFFICE OF SPECIAL UARY 17, 1970 ing the disadvantaged. Others now contend PROJECTS, NORFOLK CITY SCHOOLS, NOR­ How many children in your district are that we cannot effectively utilize extra funds FOLK, VA., JANUARY 18, 1970 benefitting from education programs funded contained in the HEW Appropriation Bill be­ How many children in your district are under Title I of ESEA? carn.e the funds are being misdirected and benefitting from education programs funded Answer: 16,997. are not reaching the disadvantaged contem­ under Title I of ESEA? What is the ADA in your school district plated under Title I ESEA. Your brief com­ Answer: 10,359. ments on these contentions would be appre­ . What is the ADA in your school district grades K-12? ciated. Answer: 80,652.72 (1969-70). grades K-12? Comment: It would be a catastrophe to the Answer: 52,432. What was the amount of your ESEA Title educational system of Johnson County if I grant in each of the following fiscal years? What was the amount of your ESEA Title Title 1 funds were dropped. Answer: 1967-68, $1,453,499, 1968-69, I grant in each of the following fiscal years? $1,243,056, 1969-70 $1,208,813. Answer: 1968-69 $2,350,867.74 (This in­ What additional funds, if any, could you RESPONSE OF DR. DANA WILLIAMS, CORPUS cludes $53,144.00 reallocated funds), 1969-70 effectively apply to yo1.u- Title I programs CHRISTI INDEPENDENT SCHOOL DISTRICT, $2,067,951.37 (Tentative Authorization). in fiscal year 1970 over and above the present CORPUS CHRISTI, TEX., JANUARY 17, 1970 What additional funds, if any, could you level of funding'? In fiscal yeal' 1971? How many children in your district are effectively apply to your Title I programs in Answer: 1970, $250,000 (additional: just benefitting from education programs funded fiscal year 1970 over and above the present to reinstate and continue programs offered under Title I of ESEA? level of funding? In fiscal year 1971? in. 1967-68); 1971 $500,000 (additional: to Answer: 6,666. Answer: 1970 $250,000, 1971 $500,000. maintain effective programs and increase in­ What is the ADA in yoitr school district In your judgment, do you believe that the structional program, particularly in the area grades K-12? Title I programs are needed to meet the of re:ading) . Answer: 43,187. special needs of educationally disadvantaged .In your judgment, do you believe that the What was the amount of your ESEA Title children? Title 1 programs are needed to meet the spe­ I grant in each of the following fiscal years? Answer: Yes. cial needs of educationally disadvantaged Answer: 1968 $1,130,93'1., 1969 $1,018,368, Do you regard yO'lu- present Title I pro­ children? 1970 890,577. grams as effe-ctive in meeting special edu­ Answer; Although the Fort Worth Inde­ What additional funds, if any, could you cation needs of educationally disadvantaged pendent School District has made many effectiv-ely apply to your Title I programs in children? efforts ior the educationally disadvantaged, fiscal year 1970 over and above the present Answer: To a vast degree. we could not begin to offer the in-depth in­ level of funding? In fiscal year 1971? Recent bearings in Washington disclosed d.il'iduallzed instruction Title I is economi­ Answer: 1970 $250,000, 1971 $300,000. that inadequate funding was the greatest -cally. e:!Iectively, and efficiently providing. In your judgment, do you believe that the obstacle in the path of more effectively reach­ Do you regard your present Title I programs Title I programs are needed to meet the ing the disadvantaged. Others now contend as -effective in meeting special education speeial needs of educationally disadvantaged that we cannot effectively utilize extr~ . funds contained in the HEW Appropriation Bill be­ .needs of educationally disadvantaged chil­ children? Answer: Title I funds have pTovided addi­ cause the funds are being misdirected and dren? are not reaching the disadvantaged contem­ Answer~ Yes; however, the needs of these tional equipment, personnel and program ex­ plated under Title I ESEA. Your brief com­ children !aT exceed available local and state perimentation heretofore limited by local resources; :additional Title I fUnds are needed and State funds. Without Title I funds, ad­ ments on these conditions would be ap­ ditional emphases would not have been pos­ preciated. to reach all of our educationally disadvan­ Comment: Additional funds, appropriated taged. children. sible. Do you regard your present Title I pro­ far enough in advance, will enable long­ B.ecetlt hearings in Washington disclosed range planning to be more effective. that inadequate funding was the greatest grams as effective in meeting speeial educa­ tion needs of educationally disadvantaged obstacle in the path of more effectively reach­ RESPONSE OF FORBES BOTTOML Y, SUPERINTEND• ing the disadvantaged. Others now contend children? Answer: Yes, however, our district is con­ ENT, SEATTLE SCHOOL DISTRICT No. 1, that we cannot effectively utilize extra funds SEATTLE, WASH., JANUARY 17, 1970 contained in the HEW Appropriation Bill be­ stantly seeking better ways to meet the cause the funds are being mi-sdirected and needs of educationally disadvantaged chil­ How many children in your district are are not reaching the disadvantaged contem­ dren. benefitting from education programs funded plated under Title I ESEA. Your brief com­ Recent hearings in Washington disclosed under Title I of ESEA? .ments on these contentions would be appre­ that inadequate funding was the greatest Answer~ There are 27 schools designated as ciated. obstacle ln the path of more e1feetively full-aid or partial-aid schools which have a Comment: Inadequate funding is a great reaching the disadvantaged. Others now con­ total population o! 26,144. Of these, 9,400 are obstacle together with lack o! forward tend that we cannot e1fectively utUize extra from low-income families. funding to adequately plan for succeeding funds contained in the HEW Appropriation What is the ADA in your school district years. Bill because the funds are being misdire-cted grades K-12? and are not reaching the disadvantaged con­ Answer: 72,135~ templated under Title I ESEA. Your brief What was the amount of your ESEA Title I RESPONSE OF LUTHER WRIGHT, COORDiNA• grant in each of the following fiscal years? Tot. TITLE I, JOHNSON CoUNTY, PAINTS­ comments on these contentions would be appreciated. Answer: 19l>8 $1,500,841, 1969 $1,370,930, VlLLE, KY., JANUARY 17, 1970 Comment: As originally intended under 1970 $1,265,433. How many children in your district are Title I guidelines, the Corpus Christi Inde­ What adidtional funds, if any, could you benefitting from education prograins funded pendent School District .has been able 1n the effe-ctively apply to your Title I programs in under Title I of ESEA? past to provide programs needed to meet the fiscal year 1970 over and above the present Answer: 2507. speeial needs of the educationally disadvan­ level of funding? In fiscal year 1971? What is the ADA in your school district taged children. Recent budget reductions at Answer: 1970 $600,000, 1971 $1,000,000. grades K-12? the national level have caused the district In your judgment, do you believe that the Answer:: 3355.94. to reduce certain services and programs. Ad­ Title I programs are needed to meet the What was the amount of your ESEA Title ditional funds are needed to tea.cb more ef­ special needs of educationally disadvantaged I grant in each of the following fiscal years? fectively the disadvantaged. These funds children? Answer: 1968 $368,690, 1969 $342,609, 1970 could provide additional equipment, mate­ Answer: To fail to provide programs spe­ $298,062. rials, and sta1f to individualize instruction, cially designed for the educationally disad­ What additional funds, if any, could you to reduce the number of dropouts, to work vantaged is to commit one large segment of effectively apply to your Title I programs in with problem children, and to provide addi­ our population to oblivion. fiscal year 1970 over and above the present tional cultural activities for the disadvan­ Do you regard your present Title I programs level of funding? In fiscal year 1971? taged. as effective in meeting special education Answer: 1970 $200,000, 1971 $200,000. The district can only speak from its own needs of educationally disadvantaged chil­ In your judgment, do you believe that the experiences, Title 1 funds have not only been dren? Title I programs are needed to meet the spe­ directed to reach the disadvantaged but Answer: Yes. Our Title I programs have ~~~~dr~~?ds of educationally disadvantaged other local, state, and federal funds have demonstrated success among the members also been direeted to provide for more and of the target population. Answer: Yes. better programs for the disadvantaged. Pro­ Recent hearings in Washington disclosed Do you Tegard your present Title . I pro- grams such as the State's Non-English Speak- that inadequate funding ~as the greatest 300 CONGRESSIONAL RECORD- HOUSE January 20, 1970 obstacle in the path of more effectively reach­ cat ion needs of educationally disadvantaged Answer: 250. ing the disadvantaged. Others now contend children? What is the ADA in your school district that we cannot effectively utilize extra funds Answer: Yes. grades K-12? contained in the HEW Appropriation Bill Recent hearings in Washington disclosed Answer: 5,635.7. because the funds are being misdirected and that inadequate funding wa.s the greatest What was the amount of your ESEA Title are not reaching the disadvantaged con­ obstacle in the path of more effectively I grant in each of the following fiscal years? templated under Title I ESEA. Your brief reaching the disadvantaged. Others now con­ Answer: 1968 $25,277, 1969 $24,514, 1970 comments on these contentions would be tend that we cannot effectively utilize extra $20,160. appreciated. funds contained in the HEW Appropriation What additional funds, if any, could you Comment: We cannot speak for school dis­ Bill because the funds are being misdirected effectively apply to your Title I programs in tricts other than our own, but Federal funds and are not reaching the disadvantaged fiscal year 1970 over and above the present in Seattle have been applied strictly in com­ contemplated under Title I ESEA. Your brief level ot funding? In fiscal year 1971? pliance with federal and state laws and regu­ comments on these contentions would be Answer: 1970 $10,000, 1971 $15,000. lations to the best of our knowledge and we appreciated. In your judgment, do you believe that have not knowingly misused any funds. Comment: Additional funds could be the Title I programs are needed to meet the utilized effectively to reach the disadvan­ special needs of educationally disadvantaged taged and, also, to serve them more effec­ children? RESPONSE OF MR. EUGENE SEBASTIAN, SUPER­ tively. The greatest obstacle in the path of Answer: Yes. INTENDENT, BREATHITT COUNTY, JACKSON, Title I programming is the poor timing in Do you regard your present Title I pro­ KY., JANUARY 18, 1970 the funding to the counties. grams as effective in meeting special edu­ How many children in your district are cation needs of educationally disadvantaged benefitting from education programs funded RESPONSE OF DR. JAMES A. CAWOOD, SUPERIN­ children? under Title I of ESEA? TENDENT, HARLAN COUNTY, HARLAN, KY., Answer: Yes, very. Answer: 3,732. JANUARY 17, 1970 Recent hearings in Washington disclosed What is the ADA in your school district How many children in your district are that inadequate funding was the greatest grades K-12? benefitting from education programs funded obstacle in the path of more effectively Answer: 3,557. under Title I of ESEA? reaching the disadvantaged. Others now What was the amount of your ESEA Title I Answer: A total of 3,059 children are bene­ contend that we cannot effectively utilize grant in each of the following fiscal years? fitting from thfe Title I program in Harlan extra funds contained in the HEW Appro­ Answer: 1968 $506,985, 1969 $468,917, 1970 County. priation Bill because the funds are being mis­ $407,594. What is the ADA in your school district directed and are not reaching the disad­ Wh:at additional funds, if any, could you grades K-12? vantaged contemplated under Title I ESEA. effectively apply to your Title I programs in Answer: The average daily atendance as Your brief comments on these contentions fiscal year 1970 over and above the present of Dec. 16, 1969 was 7,456. would be appreciated. level of funding? In fiscal year 1971? What wa.s the amount of your ESEA Ti­ Comment: There has been no misdirec­ Answer: 1970 $72,000, 1971 $480,000. tle I grant in each of the following fiscal tion of funds In the Town of Cumberland. In your judgment, do you believe that the years? Every allocation has been used for direct Title I programs are needed to meet the Answer: 1968 $907,941, 1969 $835,058, 1970 services, otherwise unobtainable, to econom­ special needs of educationally disadvantaged $738,985. ically and culturally disadvantaged children. children? What additional funds, if any, could you A Travelab, a prefabricated buflding, Answer: Yes, very definitely. effectively apply to your Title I programs in thousands of dollars worth of equipment Do you regard your present Title I pro­ fiscal year 1970 and above the present level and instructional materials have been pur­ grams as effective in meeting special educa­ of funding? In fiscal year 1971? chased; salaries have been provided for spe­ tion needs of educationally disadvantaged Answer: 1970 $100,000 if available soon cialists; personnel in areas of reading and children? enough, 1971 $260,000 if advance funding to allied skills have been engaged; in short, all Answer: Yes, Title I programs have meant allow planning. money obtained has been spent for the ad­ more to the disadvantaged children in our In your judgment, do you believe that vancement of the deprived individual. It Is county than any other program. the Title I programs are needed to meet the important that we note the fact that the Recent hearings in Washington disclosed specific needs of educationall disadvantaged town has made a tremendous in-kind con­ that inadequate funding was the greatest children. tribution. Combined efforts and resources obstacle in the path of more effectively reach­ Answer: Title I programs are definitely have provided our children with an unparal­ ing the disadvantaged. Others now contend needed to meet the "special" needs of dis­ leled education experience. that we cannot effectively utilize extra funds advantaged children whose needs are unique contained in the HEW Appropriation Bill and different to say the least. RESPONSE OF FRANK EARNEST, JR., DALLAS because the funds are being misdirected and Do you regard your present Title I pro­ COUNTY, SELMA, ALA., JANUARY 19, 1970 are not reaching the disadvantaged contem­ grams as effective in meeting special edu­ plated under Title I ESEA. Your brief How many children in your district are comments on these contentions would be cation needs of educationally disadvantaged benefitting from education programs funded children? under Title I of ESEA? appreciated. Answer: Our present Title I program is Comment: We feel that our system has Answer: 6,707. generally effective. However, it has lost some What is the ADA in your school district spent Title I funds to the best of our ability of its effectiveness due to loss of funds. This to reach the disadvantaged child. Any lack grades K-12? loss has wiped out our teacher aide pro­ Answer: 8,404. to service the disadvantaged child in our grams. district will be due to lack of funds. What was the amount of your ESEA Title Recent hearings in Washington disclosed I grant in each of the following fiscal years? that inadequate funding was the greatest Answer: 1968 $819,232, 1969 $762,271, RESPONSE OF MR. LEROY R. WATT, SUPERIN­ obstacle in the path of more effectively 1970 $673,460. TENDENT, OHIO COUNTY SCHOOLS, WHEEL­ reaching the disadvantaged. Others now con­ What additional funds, if any, could you XNG, W.VA., JANUARY 17, 1970 tend that we cannot effectively utilize ex­ effectively apply to your Title I programs in How many children in your district are tra funds contained in the HEW Appropria­ fiscal year 1970 over and above the present benefitting from education programs funded tion Bill because the funds are being mis­ level of funding? In fiscal year 1971? under Title I of ESEA? directed and are not reaching the disad­ Answer: 1970, $250,000; 1971, $500,000. Answer: 650. vantaged contemplated under Title I ESEA. In your judgment, do you believe that the What is the ADA in your school district Your brief comments on these contentions Title I programs are needed to meet the grades K-12? would be appreciated. special needs of educationally disadvantaged Answer: 9351. Comment: The trend of incidental and children? What wa.s the amount of your ESEA Title piecemeal funding which the past and pres­ Answer: Yes, we definitely could not begin I grant in each of the following fiscal years? ent administrations have practiced, has to meet these needs without our Title I Answer: 1968 $246,638, 1969 $221,669, 1970 caused school administrators to be unable programs. $197,727. to plan effectively for Title I Programs of Do you regard your present Title I pro­ What additional funds, if any, could you sufficient depth to always meet hopes for suc­ grams a.s effective in meeting special educa­ effectively apply to your Title I programs in cess. It is our hope that advance funding tion needs of educationally disadvantaged fiscal year 1970 over a.nd above the present and sufficient appropriations be made so that children? level of funding? In fiscal year 1971? we can not only plan but implement effective Answer: Yes, we are confident th81t our Answer: 1970 $50,000, 1971, $200,000. programs. Title I programs have been very effective in In your judgment, do you believe that the meeting the needs of disadvantaged children. Titie I programs are needed to meet the RESPONSE OF TOWN OF CUMBERLAND, Recent hearings in Washington disclosed special needs of educationally disadvantaged SCHOOL DEPARTMENT, ASHTON, R.I., JAN­ that inadequate funding was the greatest children? UARY 19, 1970 obstacle In the path of more effectively Answer: Yes. How many children in your district are reaching the disadvantaged. others now con­ Do you regard your present Title I pro­ benefitting from education programs funded tend that we cannot effectively utilize extra grams as effective in meeting special edu- under Title I of ESEA? funds contained in the HEW Appropriation January 20, 1970 CONGRESSIONAL RECORD- HOUSE 30l Bill because the funds are being misdirected are several programs that we could incor­ What was the amount of your ESEA Title and are not reaching the disadvantaged con­ porate to fully meet the needs of our dis­ I grant in each of the following fiscal years? templated under Title I ESEA. Your brief advantaged children. Answer: 1968 $183,957, 1969 $324,594, 1970 comments on these contentions would be Recent hearings in Washington disclosed $255,010. appreciated. that inadequate funding was the greatest What additional funds, if any, could you Comment: This is definitely not true in obstacle in the path of more effectively effectively apply to your Title I programs our Title I programs. The disadvantaged chil­ reaching the disadvantaged. Others now con­ in fiscal year 1970 over and above the pres­ dren have been reached and have profited tend that we cannot effectively utilize extra ent level of funding? In fiscal year 1971? greatly from Title I, ESEA funds. We are not funds contained in the HEW Appropriation Answer: 1970 $115,000, 1971 $115,000. aware of any misdirection of funds. Bill because the funds are being misdirected In your judgment, do you believe that and are not reaching the disadvantaged con­ the Title I programs are needed to meet the RESPONSE OF PAUL W. POLLY, SUPERIN- templated under Title I ESEA. Your brief special needs of educationally disadvantaged TENDENT, PARIS INDEPENDENT, PARIS, KY., comments on these contentions would be children? JANUARY 18, 1970 appreciated. Answer: Yes. If we did not Title I funds How many children in your district are Comment: Our School District has reached our disadvantaged children would be much benefitting from education programs funded its maximum mill levy. This would make it lower in their school work. We have been under Title I of ESEA? impossible for us here to locally fund our giving disadvantaged children breakfast and Answer: 219. Title I programs. If more money was avail­ lunch, without it some would go hungry. What is the ADA in your school district able we could broaden our present program Do you regard your present Title I pro­ grams as effective in meeting special educa­ grades K-12? for the disadvantaged children in other cur­ Answer: 1543.Q-1969 annual report. riculum offerings. If this was possible we tion needs of educationally disadvantaged What was the amount of your ESEA Title I would be fully assured of completely educat­ children? grant in each of the following fiscal years? ing the whole child. Answer: Very definitely. Most of our dis­ Answer: 1968 $65,862, 1969 $59,640, 1970 advantaged children are below grade level. $56,235. RESPONSE OF WILLIAMS. SARTORIUS, SUPERIN­ We have figures to show that Title I monies What additional funds, if any, could you TENDENT, BOARD OF EDUCATION OF BALTI­ are helping to close the gap. effectively apply to your Title I programs in MORE COUNTY, TOWSON, MD., JANUARY 19, Recent hearings in Washington disclosed fiscal year 1970 over and above the present 1970 that inadequate funding was the greatest level of funding? In fiscal year 1971? How many children in your district are obstacle in the path of more effectively Answer: 1970 $10,000, 1971 $20,000. benefitting from education programs funded reaching the disadvantaged. Others now In your judgment, do you believe that the under Title I of ESEA? contend that we cannot effectively utilize Title I programs are needed to meet the Answer: 2,538. extra funds contained in the HEW Appro­ special needs of educationally disadvantaged What is the ADA in your school district priation Bill because the funds are being misdirected and are not reaching the disad­ children? grades K-12? Answer: Very definitely. Answer: 129,839. vantaged contemplated under Title I ESEA. Do you regard your present Title I pro­ What was the amount of your ESEA Title Your brief comments on these contentions grams as effective in meeting special educa­ I grant in each of the following fiscal years? would be appreciated. tion needs of educationally disadvantaged Answer: 1968 $689,460, 1969 $615,924, 1970 children? RESPONSE OF WILLARD 0. COOPER, LINCOLN $559,906. COUNTY, STANFORD, KY., JANUARY 18, 1970 Answer: Yes. What additional funds, if any, could you Recent hearings in Washington disclosed effectively apply to your Title I programs in How many children In your district are that inadequate funding was the greatest fiscal year 1970 over and above the present benefitting from education programs funded obstacle in the path of more effectively reach­ level of funding? In fiscal year 1971? under Title I of ESEA? ing the disadvantaged. Others now contend Answer: 1970 $600,000, 1971 $625,000. Answer: 3,150. that we cannot effectively utilize extra funds In your judgment, do you believe that the What is the ADA in your school district contained in the HEW Appropriation Bill Title I programs are needed to meet the grades K-12? because the funds are being misdirected and special needs of educationally disadvantaged Answer: 3,680.6. are not reaching the disadvantaged contem­ children? What was the amount of your ESEA Title plated under Title I ESEA. Your brief Answer: Yes. I grant in each of the folloWing fiscal years? comments on these contentions would be Do you regard your present Title I pro­ Answer: 1968, $344,450, 1969, $314,061, 1970 appreciated. grams as effective in meeting special edu­ $282,393. Comment: Inadequate funding is definitely cation needs of educationally disadvantaged What additional funds, if any, could you an obstacle in planning programs. If money children? effectively apply to your Title I programs in were appropriated a year in advance it would Answer: Yes, considering the relatively low fiscal year 1970 over and above the present give· more time for planning and could be level of funding. level of funding? In fiscal year 1971? used to better advantage. No money has been Answer: 1970, $35,000, 1971, $40,000. misused in this district and we feel we are Recent hearings in Washington disclosed that inadequate funding was the greatest ob­ In your judgment, do you believe that the using it to its best advantage, With the short Title I programs are needed to meet the spe­ planning time we have. stacle in the path of more effectively reach­ ing the disadvantaged. Others now contend cial needs of educationally disadvantaged that we cannot effectively utilize extra funds children? RESPONSE OF WILLIAM MCLEOD, DOLAND INDE­ contained in the HEW Appropriation Bill be­ Answer: Yes. Our Title I program is de­ PENDENT No. 54, DOLAND, S. DAK., JANU­ cause the funds are being misdirected and signed to reach the economically and educa­ ARY 19, 1970 are not reaching the disadvantaged con­ tionally deprived children o:.: Lincoln Co. and How many children in your district are templated under Title I ESEA. Your brief we are getting the job done. benefitting from education programs funded comments on these contentions would be Do you regard your present Tit le I pro­ appreciated. grams as effective in meeting special educa­ under Title I of ESEA? tion needs of educationally disadvantaged Answer: 158. Comment: Speaking for Baltimore County What is the ADA in your school district only, I can safely document that the disad­ children? grades K-12? vantaged pupils, where they are sufficiently Answer: Yes, very effective when properly Answer: 5110. concentrated, are being served. However, the administered for these children. What was the amount of your ESEA Title law does not allow schools to be served where Recent hearings in Washington disclosed I grant in each of the following fiscal years? only small numbers of disadvantaged pupils that inadequate funding was the greatest Answer: 1968 $24,955, 1969 $22,662, 1970 attend, even though these "pockets in affiu­ obstacle in the path of more effectively $19,715. ence" need at least health services. Lack of reaching the disadvantaged. Others now con­ What additional funds, if any, could you adequate funding pr9hibits a project de­ tend that we cannot effectively utilize extra effectively apply to your Title I programs in veloping on various levels of intensity of funds contained in the HEW Appropriation fiscal year 1970 over and above the present service. Bill because the funds are being misdirected level of funding? In fiscal year 1971? and are not reaching the disadvantaged con­ templated under Title I ESEA. Your brief Answer: 1970 $5,000, 1971 $15,000. RESPONSE OF VALDOSTA CITY SCHOOLS, VAL­ In your judgment, do you believe that the comments on these contentions would be DOSTA (INDEPENDENCE), VALDOSTA, GA., JAN­ appreciated. Title I programs are needed to meet the UARY 19, 1970 special needs of educationally disadvan­ Comment: Extra funds directed to provid­ taged children? How many children in your district are ing better service for these children is not Answer: Yes. Without Federal Funds our benefitting from education programs funded wasted. Title I programs would be automatically under Title I of ESEA? dropped. Answer: Regular school year, 1295; mi­ RESPONSE OF DR. HAROLD H. HlTT, SUPERIN• Do you regard your present Title :r pro­ grant children, 80; summer program, 1150. TENDENT, SAN ANTONIO INDEPENDENT is in grams as effective in meeting special educa­ There a great deal of duplication regu­ SCHOOL DISTRICT, SAN ANTONIO 1 TEX tion needs of educationally disadvantaged· lar and summer program. RECEIVED JANUARY 19, 1970 . , children? What is the ADA in your school district How many children in your district are Answer: Yes. To the extent of our program grades K-12? benefitting from education programs funded offerings. If more money was available there Answer: 7023 (1968-69 School Term) . under Title I of ESEA? 302 CONGRESSIONAL RECORD- HOUSE January 20, 1970 Answer: 22,057. What is the ADA in your school district Texas wiftly to provide alternative means templated under Title I ESEA. Your brief )llents on these contentions would be appreci­ of financing homes for these families. The comments on these contentions would be ated. Congress cannot become a willing partner appreciated. Comment: We are in complete agreement in the Nixon Administration wrecking Comment: We know that Title I funds that inadequate funding is the greatest crew." have been effectively used in this district to obstacle in more effectively reaching the Mr. Patman said he would call for an early the educational advantage of the disadvan­ disadvantaged. re-examination of proposals to have the Fed­ taged. eral Reserve System purchase large blocks of housing mortgages at interest rates not in RESPONSE OF J. A. MCPHERSON, ASSOCIATE HOUSING CRISIS PAST TALKING excess of 6 per cent. He said the Federal SUPERINTENDENT, MOBILE COUNTY PuBLIC STAGE; CONGRESS MUST STOP :Reserve should make available between $10 SCHOOLS, MOBILE, ALA., JANUARY 19, 1970 NIXON ADMINISTRATION lliGH ·and $20 billion to assure recovery of the hous­ How many children in your district are INTEREST BINGE ing market. benefiting from education programs funded He noted that similar proposals calling for under Title I of ESEA? The SPEAKER. Under a previous or­ the Federal Reserve to purchas~ $6 billion Answer: Public 53,418, private 1,201. der of the House the gentleman from worth of housing paper failed on a close vote Janua'ry 20, 1970 CONGRESSIONAL RECORD- HOUSE 303 • in the final days of the First Session. He said ters carefully. These are the heartfelt hope and pray that you can continue to a switch of 30 votes would have put the opinions of people who are looking to support the public as you have done, and proposal into law and brought immediate enjoy good health. their elected Representatives for some Very truly yours, relief for housing. relief from the terrific burdens of high "I am convinced that the House would have OWEN F. ERENNAN. approved this measure had the Members interest rates. It would be a great shame realized that their constituents would be if this Congress ignored these honest KANSAS CITY, Mo. forced to pay a nine per cent interest rate pleas from the people. Mr. PATMAN: I am writing you this letter in a few short days,'' Mr. Patman said. The material referred to follows: in regards to the recent announcement of an Mr. Patman said he would also urge early GLENOLDEN, PA., interest increase in FHA and GI house mort­ consideration of other measures which pro­ January 1, 1970. gage interest rates by Mr. George Romney. vide additional alternatives for home financ­ Re Increased Mortgage Rates (FHA-VA) . In my humble opinion this is a disaster ing. He referred specifically to legislation Representative PATMAN, especially in this period of inflation and un­ which would set up a $2 billion fund for Chairman, House Banking Commi ttee, certainty-very ill timed. My respect for Mr. direct Federal lending at 6 per cent interest; a House Office Building, Romney prior to this was to the utmost, but National Development Bank modeled after Washington, D.C. now I see him as j!lst another tool for big the old Reconstruction Finance Corporation; DEAR REPRESENTATIVE PATMAN: Congratu­ business. and legislation designed to encourage in­ lations on your statements denouncing the There is much resentment to this action creased investments in home mortgages by increases in mortgage rates from 7¥2% to and don't be surprised if Washington isn't the various pension funds. 8¥2 % (plus ¥:! of 1% on FHA mortgages) as flooded with mail. He said he planned to give these measures "sneakly" announced late of Dec. 30 and If thls increase becomes a reality and I be­ priority treatment in the Banking and Cur­ effective Monday, January 5, 1970 by George lieve it will, we will surely remember this rency Committee in the Second Session. Romney, Sect. of HUD. administration in the coming elections. Mr. Patman said Secretary Romney'' an­ This action was well known to become a We hope that you will conduct an investi­ nouncement of a new interest rate increase fact, by anyone dealing in the field of home gation into this matter and bring the facts was poorly timed and will result in new pres­ financing; for several months, and I'm sure to the people. s'..-res to force all interest rates up. known by your Committee. Mr. v. CALIA. "The Administration should be devoting its The Federal Law enacted in May 1968 au­ energy to rolling back interest rates and not thorizing the HUD Secretary, in consulta­ TORRANCE, CALIF., shopping around for places to announce new tion with the V.A. Administrator to set the January 1, 1970. increases," Mr. Patman said. "The Adminis­ interest ceilings on Federally backed mort­ DEAR MR. PATMAN: My wife and I have tration is apparently intent on sending the gage "sufficiently" to compete with money been married seven years now, and for all of homebuyer out in the market to compete market prices should never been permitted. that time we have been saving for and with the big corporations, the gambling This freedom; power by a Cabinet Member dreaming of owning our own home. casinos and fast-buck operators for available makes our Representatives, elected officials My income is now at a level where a few lo::.n funds. The homebuyer cannot compete useless. years ago I would have thought it sufficient in this market and the Federal Government Only a week ago, after a Home Builders to buy a home. Now with the interest rates should not force him to do so." Convention in Texas, Mr. Louis R. Barba, as high as they are it appears unlikely that The Administration, Mr. Patman said, now acting President of the National Association has the unenviable record of creating the we will be able to buy in the near future. of Home Builders, members of over 51,000 I understand, basically, some of the prob­ fastest and the most frequent housing inter­ builders advised Mr. Romney not to increase est rate increases in the history of the nation. lems of inflation and the idea behind tight the interest rate from the 7¥2 % level. Mr. money as a means of fighting it. But it seems "Secretary Romney has been in office only George Meany, Pres., AFL-CIO, has de­ nounced this action as a serious blow to terribly unfair when it hurts a certain seg­ eleven months and he has managed to raise ment of the population so much harder than the FHA interest rate 25 per cent," Mr. Pat­ home buyers and residential construction. This increase is most inflationary, and af­ others. man said. "It is significant that housing I have just read of the increase in FHA/VA starts have dropped from an annual rate of fects only the millions of workers, taxpayers, family men who are buying a home; not the rates and of your plans to try to do some­ 1.9 million units to about 1.2 million units thing about it. I have never before written to since Romney announced his first increase in poor or the afiluent. The poor have a subsi­ dized program, if they want to purchase a a Congressman, but now I feel compelled to the FHA rate last January." express my feelings on this matter, and also Mr. Patman said the latest increase was home; the afiluent are benefitted more and more by tax exemptions. to let you know how much I appreciate your apparently being justified by claims that the stand on this matter. I hope to God you are action would provide more housing and that I worked and lived in Washington, D.C. for fifteen (15) years and admired your capa­ able to do something. the so-called discount points would be Sincerely, eliminated. bilities and action on many bills before HAROLD P. THOMPSON. "These are the oldest and the most fal­ Congress; I can only say thank God we still lacious arguments that could be used in have one representative left. support of this unnecessary interest rate I am not writing this letter, just to write, LEON RIMOV & ASSOCIATES, increase," he charged. "There is absolutely but to bring to your attention the millions January 2, 1970. no evidence that high interest rates bring of average people, who will be adversely af­ Hon. WRIGHT PATMAN, more housing. It is a fact, undisputed by any fected by the "rotten action" by Romney, Chairtn4n, House Banking Committee, housing economist, that interest rate in­ one little cabinet officer. House Office Building, creases price the lower income groups out of The only action now for all our repre­ Washington, D.C. the housing market." sentatives and Senators is to "override this DEAR CONGRESSMAN PATMAN: The raising Of Mr. Patman said that a reduction in the action," set back the percentage to 7¥2%. the VA and FHA interest rate to BY:!% plus "points" would be only temporary and "very and then adopt your resolution for the Fed­ ¥:! % mortgage insurance is the start of a slight at the best." "In past interest rate eral Reserve System to buy blocks of housing new war on infia tion. It cannot be stopped increases, the points have declined for a few mortgages at rates not above 6 per cent, and if the federal government doesn't stop com­ months and then skyrocketed back to their keep them off the trading market. peting within its own family for money. high levels again. And this will happen again If this is not done, the average man and The raising of the interest rate is without with this latest increase." woman has no alternative but to resort to question the most serious financial move the "The homebuyer will continue to pay other means of escaping taxes, high interest Nixon administration has made concerning points as well as a record high interest rate,'' rates, or relief and welfare. · the general economy. It is very easy to pro­ Mr. Patman said. "In fact, the purchaser of The present system of Federal contract on ject the consequences of this increase. They a $20,000 home will pay more than twice the housing, FHA and VA, has already created a are as follows: value of the house in interest charges, points, monster in financing-both buying and sell­ 1. Middle anc upper middle income housing and other finance charges over the life of a ing property. A seller of property under will be paid for by buyers at 10% plus at thirty-year mortgage." FHA-VA must pay "points" of at least 10% least 2 points discount. to obtain a mortgage for the buyer-this is 2. The Federal Reserve Board will in time Mr. Speaker, I have received a great added to the selling price plus the buyer as raise the prime interest rate at least by 1 volume of telegrams and letters from a veteran pays 7 ¥:! % mortgage, and FHA point and possibly 1 ¥:! points. people all over this Nation expressing buyer 7¥2% + ~ of 1% mortgage insur­ 3. There will be little or no chance for their strong opposition to this latest and ance premiums. Now with the so-called state and local governments to undertake unnecessary increase announced by Sec­ BY:! % (9%)-the "points" do not drop, and public improvement projects which are vital retary Romney on December 30. if so about 1% for a month or so. These to the health, safety and welfare, such as: "points" should be declared illegal for either new sewer plants, new disposal sites, im­ Mr. Speaker, these letters express bet­ buyer or seller, but instead is encouraged proved transportation, improved sewers, ter than anything I could say the feel­ by our own Federal Government. public utilities. ings of the people who have been be­ I hope my effort in writing to you, is not 4. FHA will not effectively serve either the trayed by these high interest rates. I in vain and that your administrative assist­ middle income or the low income fam.ilies urge that my colleagues read these let- ants, will pass this one on to you. Also I by this new increase in the interest rate. 304 CONGRESSIONAL RECORD-HOUSE January 20, 1970 5. Construction in this country will come anything before but I can't sit back now fact that only two working days expired to a screeching halt before the middle of with such as we have in office now. between the day the increase was announced this year 1f positive steps are not taken to One and three quarters percent rise in and the day it became effective. In all fair­ lower the interest rate immediately. The in­ such a short time is plain nuts. ness to the hundreds or even thousands of fia tionary action by George Romney, Secre­ Hold down inflation for the working class people who had applied for VA loans before tary of Housing, is one of the greatest acts but turn iit loose for the ones that can get the rate increase was announced it seems of foolishness ever perpetrated on the gen­ fat on it. Keep up the good work and if I can to me they should have been guaranteed eral public by a public official. help in any way please call on me. the old rate of seven and one-half percent. I look forward to an immediate response Yours truly, As it was, I applied for my VA loan on and action on your part and that of other Mr. J. E. STEVENS. November 19, 1969, buying a house that was members of your committee. going to stretch my salary quite a bit. Now Sincerely yours, , MICH. I've had this surprise interest hike pulled LEON RIMOV. DEAR MR. W. PATMAN: I certainly approve on me and quite frankly I feel as though my of your intention to investigate high interest government has been unfair to me. JAS. W. FISHER AGENCY, INC. rates which in addition to being inflationary Also questionable to me was the fact that Spencer, Iowa, Janua1·y 2, 1970. constitute economic rate by the rich of the I signed all the papers that were to go to Hon. WRIGHT PATMAN, poor. the VA on December 16, 1969. This was after Chairman, House Banking Committee, House Thank God there are a few people around F&R Builders of Miami had run their credit of Representatives, Washington, D.C. who object to this kind of criminal activity! check on me. When I called the VA office in DEAR REPRESENTATIVE PATMAN: I have just Sincerely, Jacksonville, Florida on December 31, 1969 read with great dismay the announcement SIDNEY M. MANuEL. they hadn't even received the papers from by Secretary of Housing Romney raising the F&R much less had time to process them interest rate on FHA and GI home mortgages PENSACOLA, FLA., before the interest hike became effective. I to 8%%. January 2, 1970. have not yet heard the cause of the delay I would like to commend you on your Sm: We are within two weeks of closing a but it has been an expensive one for me. criticism of such action and your indication VA guaranteed mortgage. Thank you for taking the time to read that the House Banking Committee would Should I try and stall to await the outcome my letter; I am with you one hundred per­ strive for modification of the home mortgage of your investigation into the increase in in­ cent in your fight against higher interest interest rate. terest. rates. You are absolutely correct in your observa­ If I close the loan at 8%% and the in­ A slight history on myself; I have just been tion that this high mortgage interest is pre­ crease is rescinded will I be stranded at 8%% released from the Marine Corps after serving venting those who wish and need to buy a or wlll it be as if the increase had never four and one-half years as an officer. I spent home from doing so. happened. a year in Vietnam and am now working for It is my understanding that savings and Truly, Delta Airlines. loan institutions were instituted as a main WILLIAM J. BERRIO. Sincerely, source wherein home buyers could secure JOHN W. BOTTOMS, Jr. home mortgage financing. It has been my sad FAm LAwN, N.J., observation that, over the years these insti­ JanU4ry 1, 1970. tutions have devoted more desire in ways Hon. WRIGHT PATMAN, BROOKLYN, N.Y., and means of developing greater profit for Chairman, House Banking Committee, January 1,. 1970. the institution ..• with mounting spread House Office Building, DEAR MR. PATMAN: More power to you! And between the interest paid on deposits and Washington, D.C. less to the banker millionaires whom Mr. interest received !rom mortgages. . Plus DEAR MR. PATMAN: Thank you SO much for Roxnney has joined. charging increased loan closing cost fees to speaking out against the injustice of the raise Enclosed a copy of my letter to him. both mortgagees and "points" charged to in interest rates for FHA mortgages. I was Respectfully yours, sellers. heartened somewhat that someone in Con­ Rabbi FRED S. HEuMAN. I do hope that you and your committee will gress is speaking for the average American do everything possible to work for reduction citizen rather than for big business. BROOKLYN, N.Y., of interest rates and assistance to the many We saved for ten years and finally applied January 1, 1970. American families who desire to buy ·a home. for an FHA mortgage on Nov. 23, 1969 at the DEAR MR. ROMNEY: And you were con­ Respectfully, rate prevailing. After yesterday's announce­ sidered the Liberal in the Cabinet of the F. W. FISHER. ment of the rise, we knew that we could not Nixon administration. And you have now go ahead with our plans to buy this house. added over $6,000 to a $30,000 home to be HACIENDA HEIGHTS, CALIF. It seemed to us illegal that our government financed by FHA, in order to soak the worker Representative WRIGHT PATMAN. would not honor an application made well and enrich the banker. HONORABLE Sm: I Wish to compliment you before the change. You are not so naive as not to see that the as being one with enough back bone to say My husband earns $16,500 and I earn $2,000 constriction of the money supply has not something about this high interest rate. My annually and we are unable to buy a house in halted inflation. The answer to inflation is a how we need some one like you. This is one · this area with a down payment of $9,000. It voluntary commitment in this country to of the biggest farces I have heard. Twice with is indeed an incongrous situation. hold the price line and to halt all increases. no reason only to keep the man we all need I have written to my own Representative The labor demand will slacken as well. from having a roof over his head. (Widnall) and my Senators (Case and WU­ You've done the opposite. You should be The man that furnishes most of our men liaxns). I indeed hope that their view will be fighting your administration's overbearing to fight the battles such as W.W. 1 & 2, similar to yours. banking interests who here so far succeeded Korea and now VietNam has no one to fight Why is the President allowed to make such in their enormous profits by the wide spread for him. We are in trouble with riots, rapes, decisions Without consulting Congress. This between a 5% interest rate paid on savings robberies & killing just because no one has 1s indeed puzzling to me. and an 8¥2% interest rate charged on loans. back bone in the Administration to do any­ Thank you again. Your collusion is the saddest to take. You will thing for the little man & men coming Yours sincerely, regret it, as it does our country harm, back home from Viet Nam cannot buy a home Mrs. NATALIE STEINBERG. Sincerely yours, in any area. The cheapest home and only one Rabbi FRED s. HEUMAN. (1) 15,950 to sell G.I. 112.37 principal & MIAMI, FLA., January 3, 1970. Int. $16.67 taxes: $4.00 apr for Ins.: DEAR CONGRESSMAN PATMAN: Please excuse JANUARY 1, 1970. $133.39 Per Mo. to buy he must make $540.00 this scribbled letter; my typewriter is in DEAR MR. PATMAN: Although I am not one Per mo. $312.00 Per Hr. and in our area storage. of your constituents I still wanted to write which is City of Industry & some pay as I read of the stand you have taken against to you about my feelings. As a private citizen little as $1.75 per Hr. & our largest pays the FHA/VA interest hike in the Miami I appreciate the work you are doing to pro­ $2.25 to $3.00 for unskilled labor. So you Herald and wanted to write and tell you how test the high interest rates. At today's rates can see they were out classed before this glad I was to hear someone in Washington it does not pay to own a house, the rates are 1% raise came in to being. Please see this had spoken out against it. criminal. Young people like myself who make as I do. As I am a Realestate Salesman, and I was particularly upset to hear of the comfortable livings and know how to add, am near 65 years old. And all I can do is give interest hike because I had already commit­ realize that these rates are terrible. It is you any information you may need In my ted myself to buying a house in Mla.ml cheaper to rent, even at high rents than to area of near Los Angeles, Calif. Please for under a VA loan and yet will not be able to buy. Second mortgages are becoming com­ the decency of your fellow man even if you close before January 5th so will have to pay monplace. Let's get this country back to nor­ are not in our area. the added interest point. This will add ap­ mal so that inflation will Rtop eating up Stay in there and fight. I have written to proximately $21.00 a month to my house every dollar. Put tight controls on the crop ones in my area and they are to chicken payment and some $6,000-$7,000 to my mort­ of credit buying. The banks don't have mort­ or are ones that have there fingers in the gage. gage money because they need it for their ir­ pie & don't want to pull it out. Election is I am opposed to any interest rate increase responsible credit card holders at 1¥2 percent coming in our area and I have never said but particularly upsetting to me was the per month or 40 % true annual interest rate. January 20, 1970 CONGRESSIONAL RECORD- HOUSE 305 Enough, even at 6% interest is high for can beat this interest rate down, will have pegging the discount at midweek at some­ mortgages. Please continue to press your our vote for ~nany years to come. where between 4 and 6 per cent. colleagues and make them act like respon­ Please keep up this good work! As always, the exact amount depended on sible lawmakers instead of idiots. Sincerely, the quality of the loan being made-the Thank you and happy and heruthy New Mrs. ROBERT BUDA. quality of the house, the credit standing of Year. the new buyer and the availability of money. NoRME SEHL. JANUARY 1, 1970 . . Garth Marston, vice president, marketing, Hon. WRIGHT PATMAN, of Washington Mutual Savings Bank, said FRESNO, CALIF., Congress of the United States, the discounts had ranged from 2 to 4 per December 31, 1969. Washington, D.C. cent at the start of the week but had worked Representative WRIGHT PATMAN, DEAR SIR: First let me express my humble their way up to 6 per cent toward the end House of Representatives, thanks for your stand against the high in­ of the week. Washington, D.C. terest rate, just shoved down my throat along Carl A. Sandquist, president of the Coast DEAR REPRESENTATIVE PATMAN: I am in with many GI's by the present administra­ Mortgage Co., said the • • • discount rate agreement with you, in your investigation tion. would probably level out at between 5 and and legislation to offset the 8% percent in­ At present I am under contract to buy my 6 per cent. terest rates on F.H.A. and V.A. home loans. first home, 7%% VA and of course to be Sandquist pointed out that lending insti­ This is nothing but a Republican move 8%%. now highest permissible rate at time of tutions which sell FHA and VA mortgages for the money class of people. closing. I completed 28 years of naval serv­ to the federal National Mortgage Association The wage earner can no longer buy a de­ ice 3 Sept. 1969, and am now in the civilian (Fanny Mae) to get more cash to lend for cent home for his family. labor market. Renting for past 18 years. housing were having to pay as much as 5 per 'J;hank you for any assistance on this mat­ Negotiating for a home loan I have found cent discounts on the money they borrowed. ter. the VA loan money at 7% % was not tight In other words, for every $1 ,000 worth of Sincerely yours, as they claim. Almost any sub-division in mortgages they sold they were able to collect EDWARD J. BRANNAN. this area could be financed under VA 7% %, only $950 in cash. the big problem with the moderate income Such lending institutions can come out NORTH MIAMI BEACH, FLA., (average) family is the high cost of the even in reloaning the money only if they, December 31, 1969. homes. High taxes, insurance, and now on too, charge a similar point discount. Hon. WRIGHT PATMAN. top of all this another increase on the in­ DEAR SIR: Thank you very much for your terest rates. Despite discounts or higher interest rates, efforts to stop the rise in interest rates. It I feel along with other GI personnel in lending institutions simply don't have seems as though anything that will be of this area that the decision of Mr. Romney money to lend. Fany Mae has been the only help to the working man is considered infla­ and Administration is, they are not really source. tionary by the present administration but thinking of me the GI, but the big business William J. Winn, executive vice president the tremendous allowances given to the concerns, mortgage companies and like you of the Master Builders, was among those who multi-millionaire such as the oil depletion say the affluent. predicted that the discount rate would work allowance, tax-free bonds, etc., is not. I hope along with you, the Honorable Rus­ its way back up to an even higher level. Sincerely, sell, Honorable Rivers, and others, feel this Bond interest rates-generally considered ABRAHAM W ALFISH. increase is uncalled for and is only in the an indicator of the state of the money mar­ interest of the mortgage companies. If the ket--have continued to increase, even since STRATFORD, CONN., money is tight, increasing the cost . sure the new 8% per cent home mortgage interest January 2, 1970. doesn't seem to be the answer to the many rate was announced. Hon. WRIGHT PATMAN, of us that feel we can't really afford a home If history repeats itself, discounts points House of Representatives, under present costs. will rise, to, in order to keep up with the Washington, D.C. Thank you for speaking out. competition. DEAR SIR: A recent article in our local news­ T. R. McCONNELL. Winn, however, saw today as a good time paper, the Bridgeport Post (Bridgeport, Con­ to buy a home. He foresees no decline in in­ necticut) has prompted me to write to you. SEATTLE, WASH., terest rates. I want to commend you for your statements January 10, 1970. "It's still definitely a buyers market. We of fact concerning the interest rate on gov­ Hon. WRIGHT PATMAN, have loi;s of homes to sell in almost every ernment-backed housing loans. You were U.S. Congress, price class. And with the discount rate where quite correct in stating that the administra­ Washington, D.C. it is today, sellers will probably be more tion is developing federal housing programs DEAR SIR: Please find enclosed clipping anxious to sell than ever before." only for the affluent. from real estate section Seattle Post Intelli­ My husband and I have worked and saved gencer of this date. ARLINGTON, VA., for five years, we have no children and have In view of your investigation of high January 13, 1970. lived in a very reasonable rent for five years. (8%%) F.H.A. & V.A. interest rates I thought Hon. WRIGHT PATMAN, We are not extravagant and, I think, have this article might be of some value. U.S. House of Representatives, above average salaries for our age and geo­ Thank you for your splendid efforts in Washington, D.C. graphic location. We have many friends who this age of brain washed economists. MY DEAR MR. PATMAN: I doubt that you are in the same situation, and many who have Yours truly, will see this letter but I will make it short children and the wife cannot work. DOUGLAS J. O'ROUARK. in the event you do. We cannot find, in this area of the country, I want to express my concern over the 8% a new 6 room ranch house for less than [From the Seattle (Wash.) Post-IntelUgencer percent interest rate that is presently in $30,000. This does not include a garage, drive­ Jan. 10, 1970] effect for home loans. I have worked for a way, landscaping, and, many times, does not The increase in the FHA and VA mortgage number of years before marriage and after include city water, sidewalks or sewers. This rate from 7% to 8% per cent pushed down in order to be in a position one day to pro­ would be added cost to the purchaser. For the the discount rate being charged sellers here vide a home for my family. My husband and sake of example, let's say we found "some­ on real estate sales this week; but-- I expect a child soon and find that we are thing" for $25,000-this is the way it would 1. The drop wasn't as great as many hoped unable to meet mortgage payments when breakdown: it would be. interest rates are at the 8% percent level. 2. And, many were already predicting that I find this situation completely frustrating, House------$25,000 the discount would work its way back up disappointing and unfair and I heartily en­ Downpayment (20% now required)_ -5, 000 to the old level as the year progressed. dorse your proposal to have the government The discount is the charge levied by lend­ provide low cost loans for home buyers. Total------20,000 ers against sellers in most home-sale real Sincerely, FHA Mortgage Payments per month on estate transactions in an effort to make the CATHERINE L. T!MMENY, $20,000 at 9% for 30 years equals: money loaned earn the going market rate. Mrs. Wallace L. Timmeny. Before last week's increase in the FHA­ Per month------$161.00 VA basic interest rate to 8% per cent, lenders POMONA, N.Y., Per month town taxes------40. 00 had been demanding as high as 10 per cent January 13, 1970. discounts from sellers on the total sales Representative WRIGHT PATMAN. Total per month cost to us___ 201. 00 price. DEAR Sm: My husband and I are fully Please keep in mind that for this area this When the new rate was announced last aware of your tremendous e1Iorts to roll back is not, by any means, a good home. For this week, lenders expressed hope that the dis­ the interest rates, and ease up the tight money it would most likely be between 40 and count rate would drop substantially thereby money situation. 50 years old. And, above that, the only reason making it easier !or sellers to sell their All the reports that we have read, show we could afford it is because we both work. home, thus loosening up a tight real estate that the banks are continually showing larger I wouldn't even venture to imagine how sales market. and larger profits. many people are in our same situation. But I Some officials reported that discounts had The way this Administration 1s handling know one thing, the man or the party that dropped back to 2 per cent. But most were the economic policies, is helping to make the CXVI--20-Part 1 306 CONGRESSIONAL RECORD- HOUSE January 20, 1970 rich, richer; and placing the "little man", than helping the situation it just seems to ASHEVXLLB, N.C., in a very very precarious situation. be another weary round of inflation. January 4, 1970. We sincerely pray that you are able to mus­ We encourage you, Mr. Patman, to do all Representative WRIGHT PATMAN, ter enough support to remedy this situation. that you can to cause this boost in interest House Office Building, Very truly yours, rates to be rescinded. It is completely un­ Washington, D.O. Mrs. JANICE STERLING, justified in our view. DEAR REPRESENTATIVE PATMAN: May I com­ Respectfully yours, mend and encourage you on your recent FULTON, N.Y., GLEN VAUGHN . proposal to fight increasing interest rates. After almost a year of struggling to improve January 2, 1970. LITTLETON, COLO., Representative WRIGHT PATMAN, our lot to start construction, we finally January 2, 1970. began in mid-November and were able to House Office Building, Represent ative WRIGHT PATMAN, get the basement wall of our modest-sized Washington, D.O.: House ot Representatives, Raising of FHA and GI interest rates will house (1540 sq. ft.) up just before Christmas. Washington, D.O. When we first contemplated building in break the back of the home building indus­ DEAR MR. PATMAN: With the very recent in­ try. Are we going to continue to allow the May 1968 VA-backed loans, as you well know, terest increase in the F.H.A. and V.A. backed carried an interest rate ceiling of 6%, quite banking industry to control our government? housing loans, I feel compelled to write you acceptable for our purposes. The first raise Mayor PERCY E. PATRICK, Jr., and express my feelings with regard to the Builder and Developer. to 6.75% hurt, as did the subsequent one investigation and legislation to offset this to 7.50% in January 1969, but we continued, recent increase that you are proposing to feeling as did most people, that continued LOWELL, MAss,, conduct. inflation threatened our chances of building January 1, 1970 Just recently I applied for a V.A. backed at all. Congressman WRIGHT PATMAN, housing loan to finance the construction of a Now, with our basement wall up, most the Chairman, House Banking Committee, new home and this recent increase in in­ frame lumber, plywood and hardwood floor­ House of .Representatives, terest rates will have a very significant im­ ing stored for use and all our subcontractors Washington, D.O. pact on the total cost of that loan. With the lined up and waiting, the latest New Year's DEAR CoNGRESSMAN PATMAN: We view with present conditions the way they are, it is hike to 8.50% has cleanly knocked us out dismay the recent action raising FHA and becoming next to impossible for a family to of the market. I can understand Mr. Rom­ VHA mortgage rates to 8% percent, and afford housing. ney's immediate reasons for reluctantly as­ heartily endorse your investigation this in­ I am therefore, in favor of anything you senting to this increase, but on the other flationary act. We wish you could prevent and your committee can do in an effort to hand I wonder just how many potential its going into effect. We are already home bring the interest rates on housing loans homeowners will enter the market now to owners. It is the effort of all future home back down to a level that will be realistic grab up newly released money at this record­ buyers and our country's monetary policy and within the reach of the so called "Mid­ busting rate. that bothers us. Please try to reverse this dle Class" citizen. Again, may I say I applaud your efforts to trend of spiraling interest rates. Sincerely yours, have the government buy up blocks of mort­ EDWARD AND GLORIA BOYSON. DONALD C. ROSE. gages at cheap interest rates to help the average man who wants, and definitely MATAWAN, N.J. needs, a home of his own. Though not true, ALEXANDRIA, VA., I sometimes wonder if our great country December 31, 1969. Hon. WRIGHT PATMAN, Washington, D.C. isn't primarily devoted to perpetuating the Hon. WRIGHT PATMAN, DEAR MR. PATMAN: I was agreeably pleased interests of the affluent and the rich while House of .Representatives, with an article in the N.J. Star Ledger of patronizing the "silent majority." Washington, D.O. Respectfully yours, DEAR MR. PATMAN: I have just heard on your interest in the hike in mortgage in­ the even.ing news program that you are go­ terest. ROBERT c. MARTIN. I am a widow and live in a garden apart­ ing to conduct an inquiry or investigation GOODE'S DEPARTMENT STORE, into the announced raising of the VA/FHA ment with three rooms. My daughter also has home loan rates to a new high of 8% per cent. a four room apt. in same area. Three years Vinton, Va., December 31, 1969 ago, I moved here rental at $115 first year, Representative WRIGHT PATMAN, The purpose of this letter is to offer you Congress, whatever moral support and encour-agement second year $117.50, third year $130.00. My that my wife and I are capable of in your daughter rented said apartment first year Washington, D.C. opposition to the suddenly announced in­ $155, new lease $180.00. We figured with DEAR CONGRESSMAN PATMAN: Again I con­ terest rate ceiling. these high rentals we could buy a home to­ gratulate you on your stand against higher My wife and I moved to this area about gether. We looked around and was hit with a~d higher interest rates. Where will it all 6 months ago to accept employment after the high interest plus large down pay­ lead when will it stop? Higher and Higher retiring from the Navy. We are both lifelong ment. Where are people like we going to find we go until we come down with a Bust. Texans from Hamilton and considered Texas a house with liberal down payment and As a small independent businessman I our legal state of residence until I retired low interest for $311.00 per month. I was do resent our Government Guaranteeing and moved to Virginia. pleased to hear what your committee with 8% % loan money to our very Affluent Life We are in the process of trying to buy a its proposals intend to do. Lots of luck and be Insurance Companies and some of our Mort­ house in the Escena subdivision in Oxon assured we are rooting for you. gage Bankers. Nobody guarantees small Hill, Maryland for delivery when construc­ Sincerely yours, businessmen and wage earners anything. tion is completed next June. We have ap­ LoRETTA D. CONNELL. Money before People seems to be the trend plied for VA financing with the Colonial in our Government today. We would all be Mortgage Corp. of D.C., 1101 17th St. NW. ELMA, N.Y., far better of if all ceilings on both savings and this firm is now processing our appli­ January 1, 1970. and Interest charges were removed also take cation for VA financing. DEAR MR. PATMAN: Is there anything that off the guarantees I suspect then some of When we signed a contract to purchase can be done to reverse the interest rate our Banker Money Friends might get down the house, there did not seem to be any climb. to earth. problem whatever in locating the financing We are on the verge of buying s. new Keep up your Good Work. at the rate of 7¥2 per cent. There may well home but between these fantastic rates and Yours, have been a shortage of money available but high taxes we just can't swing it. 0. GooDE. it certainly was not apparent to us. We Very truly yours, hoped to be able to purchase this house with CHARLES W. TENT. POINT PLEASANT, N.J., 7% per cent or less money and were shocked January 1, 1970. yesterday when we heard that Mr. Romney INGLEWOOD, CALIF., Hon. WRIGHT PATMAN, had raised the rate to 8¥2 per cent! January 1, 1970. House of .Representatives, Mr. Patman, we are at a complete loss to Sm: We deplore the continuing rise in Washington, D.O. understand how this boost of a full one per interest rates on home mortgages and Sra: On December 31, 1969, on channel cent is going to help solve our nation's hous­ strongly believe it has a most damaging No. 2, WCBB-T.V., New York at seven p.m., ing shortage. While there may be more firms effect on our economy and a great influence the newscaster reported that you would in­ willing to lend money at the new 8% per on the ever continuing spiraling inflation. vestigate the approval of a raise in interest cent rate, we wonder just how the people We strongly applaud your denunciation rates of V.A. and F.H.A. Loans. This investi­ who need housing are going to be able to of the latest increase on government-backed gP.tion I heartily endorse, and if possible afford an extra $30.00 or so per month which home mortgages and sincerely hope you will a reinstatement of the former rates at the an average housing loan in this area will do everything in your power to initiate leg­ earliest date. My reasons are basic. I won't be boosted by the one per cent hike. Perhaps Islation that will force a downturn of such be able to afford a home for my wife and only by salary increases which certainly unreasonably high interest rates. three children. doesn't improve the Administration's chance Respectfully, In November 1968, I purchased a home at of bringing inflation under control. Rather Mr. and Mrs. SIDNEY GERTZ. the above address with a V.A. approved loan January 20, 1970 CONGRESSIONAL RECORD- HOUSE 307 at an annual interest rate of 6 and %%. homeowner about $15 a month more in his to accept the terms dictated to him by such In May of 1969, just two weeks after we had housing outlays. institutions. Perhaps the facts of my case, moved in, the New Jersey Department of These were based on the new FHA-VA as set forth below, will be one more bit of Transportation notified me that my home rate of 8~ percent, plus one-half percent ammunition which you can use in your long would be acquired vo make way for the new insurance, compared with the previous 7'12 running fight to bring a measure of justice Lovelandtown Bridge to be built here in percent plus the same insurance charge. and equity to the financial market place. Point Pleasant. Unfortunately the previous To pay off a $20,000 mortgage in 30 years I signed a sales contract to purchase a ownP.rs neglected to inform us of that fact. at the new rates, Patman's aides said, would new home which was in the final stages of Since that time, I have begun proceedings to cost a total of $58,000 in principal and construction on October 8, 1969, making a purchase another home at 514 Rhode Island interest. $1,000 deposit at that time. On October 17 I Avenue, in Brick Town, New Jersey. I have made application for a VA guaranteed loan alref.dy received cr :Ht approval from the LOS ANGELES, CALIF., at Colonial Mortgaga Company of Washing­ F.H.A. Office located in Camden, New JPrsey. January 2, 1970. ton, D.C. The loan processing officer at Co­ My problem is that I am st111 waiting to Hon. WRIGHT PATMAN, lonial with whom I dealt was incompetent, hear from the Larson Mortgage Company Representative, State of Texas, perhaps because of inexperience, and made in Freehold, New Jersey. More than likely, House of Representatives, numerous errors which I will not detail here I expect to hear from them this Monday­ Washington, D.C. but which can be documented. The result of January 5th, because by then the new 8'!2% DEAR REPRESENTATIVE PATMAN: After two these errors was that my loan application was increase will become effective on that date. years of Army life and Army income and sev­ not submitted to the VA for approval untll It looks as though I am going to be taken eral years of apartment living, my husband December 23, far past the time that settle­ to the cleaners once again! Thanking you and I finally found a house we wanted and ment should have taken place. The VA-to in advance on your interest in V.A. and could afford. We were counting on VA their credit, especially during the holiday F.H.A. rates, I remain, financing. Now due to the increase in interest season-processed the loan rapidly and final "lery truly yours, rates from 7~ to 8'!2 percent we are very approval was granted on December 31. KENNETH D. ENZ. discouraged and find we may be unable to But when I attempted to arrange settle­ buy this home. ment before the effective date of the rise in ORLANDO, FLA., News stories reporting the new rate have interest rates, January 5, the lender refused January 1, 1970. also indicating your concern and the pos­ to cooperate. So now I am faced with the DEAR REPRESENTATIVE PATMAN: HOW do sibility of legislative action turning back this prospect of an increase in the payments on you tell a member in very high standing in increase to be initiated by the Banking and my new home of $25.00 a month and the the United States Government that he's a Currency Committee. I strongly support your lender will be some $9,000 richer over the 30 thief. That is the only word that describes efforts. year life of the mortgage. someone who steals either for himself or is I understand that the increased interest As an employee of the federal government paid to steal for someone else. rate may make more money available, but we (CIA), I deplore the fact that it was the I am referring to the men who raised the find the cost of borrowing that money has decision of a federal official which made such interest rates on V .A., F.H.A. home buying. become prohibitive. Is there no other way a state of affairs possible. I wish you success. I used to own my home. I lost it to pay to attain the same end? Sincerely yours, medical bills. I only have a V.A eligibillty, Sincerely, JOSEPH TuRNER. which expires this July, to purchase another Mrs. MARGARET T. HICKMAN. one. At present I am trying to buy a home in BOERNE, TEX. Florida but due to a medical disability I DEAR REPRESENTATIVE PATMAN: The recent Hon. WRIGHT PATMAN, can't afford anything except a shack at the increase to 8'!2% in the interest ceiling on Banking and Finance Committee, current prices. home loans is outrageous and we ought to do Washington, D.C. Now 7'!2% is enough to pay for any home something about it. Only the atfiuent will be DEAR MR. PATMAN: It is with some concern at least in my category, but it seems the able to buy homes, the normal working man that this writer has reviewed what has hap­ big money men are out to grab every penny will no longer be able to afford one. The time pened to interest rates in the last thirty to the poor man is able to earn. has come for legislation to roll back the sixty days. It would appear that the Federal I know that this investigation either interest rate. Consideration should be given Government and indirectly your committee will go on and on so it will do me no good to direct Federal lending, legislation to en­ has no real abiding concern over the direc­ or you will be shut up for ever trying to courage mortgage investment by pension tion of interest rates. Certainly when the do the job you are getting paid to do. funds, or put into effect standby credit con­ Government is willing to pay 8% under a Well I have had my say. so good luck to trols recently authorized by Congress. Cur­ direct obl1gation of the Treasury and 8'!2% you and your committee. rent rates increase rather than decrease in­ and higher through its Federal Agencies A poor U.S. citizen, flation. I would appreciate a list of those that there can be no result except for continued MR. KENNETH DORSEY. serve with you on your banking committee. higher interest rates for everyone. President P.S.-Enclosed is a copy of the article that Sincerely, Nixon's untimely signing of the Tax Bill and prompted me to write to you. SEVIO R. GARCIA. Secretary Romney's increasing the F.H.A. and V.A. rates to 8~% only increases our PHILADELPHIA, PA. path towards 10% money. [From the Orlando (Fla.) Sentinel, Hon. WRIGHT PATMAN, I would appreciate your views on what is Jan. 1, 1970] House Banking Committee, being done and what will be done to halt INTEREST BOOST PROBES PLANNED washington, D .a. this cycle for certainly the people's propen­ W ASHINGTON.-Congressional investiga- MR. PATMAN: Please, please stand up to sity to spend will have a limit. tions and legislative action were promised Romney on the business of interest. Yours truly, Wednesday in the maximum interest rate He is using a completely phony excuse for on government-backed home mortgages. raising the interest rate. The real reason No action was in sight, however, that is pressure from the banking lobby. M. c. HALL & SONS, is would prevent the rate from going up next At the expense of young homebuyers, he SANTA CRuz, CALIF., January 5, 1970. Monday to a record 8'!2 percent. The cur­ giving the rich what they wish. rent rate, in effect only since last Jan. 24, is He is causing the young working man to Hon. WRIGHT PATMAN, 7'12 percent. continue to pay rent to the big business land­ Washington, D.C. Rep. Wright Patman, D-Tex., chairman lord. This is no way to fight infiation! DEAR MR. PATMAN: May I congratulate and of the House Banking Committee, de­ The interest rate on the basic necessity of praise you on the campaign you are mount­ nounced as "the height of irresponsibllity" housing is so sick. How can it be justified? ing to ameliorate the interest rate on VA the increase announced Tuesday by Secre­ It is the work of irresponsible fiscal puppets. & FHA loans. tary of Housing George Romney. Romney Won't you please pursue a course of remedy Keep up the good work. said he acted reluctantly, and under the for us, the people who pay all the taxes, yet Sincerely, pressure of money market conditions. who can't buy a home for their famlly. What M. C. HALL. Patman said his committee will investi­ is this the land of the fee and the home of gate and that he will urge it to act on sev­ the slave? WOODLAND HILLS, CALIF., eral proposals he has pushed, so far unsuc­ Let's do something. January 2, 1970. cessfully, to inject more funds into the mort­ JOHN J. LYONS. Hon. WRIGHT PATMAN, gage market and bring interest rates down. Chairman, House Banking Committee, Sen. William Proxmire, D-Wis., announced 0XON HILL, MD. Washington, D.C. a series of hearings starting Jan. 14 by a Sen­ Hon. WRIGHT PATMAN, DEAR Sm: I am enclosing an article, which ate banking subcommittee on bills to in­ House of Representatives, appeared in our daily Los Angeles Examiner crease the amount of low cost credit­ Washington, D.C. paper, regarding the recent raise in Interest including housing loans-in poverty areas. DEAR Sm: I am aware of your interest in rates on V.A. Loans. I am glad that some­ Patman's office made public estimates, de­ the conduct of large financial institutions one is protesting this absurd move which is scribed as based on FHA figures, that the and of your championing of the rights of the "supposed" to help curb 1n1lation. Unfor­ new interest rates will cost a middle-income single individual who has no alternative but tunately it has hurt us to the extent that 308 CONGRESSIONAL RECORD- HOUSE January 20, 1970 I feel our government has just "kicked me cent in addit ion to the 8% percent interest terest rates will be more willing· to make in the teeth." To give a brief explanation ceiling. money available if an advance cash payment of our feelings; my husband is a Veteran Patman said the Banking Committee also is made. There may be some justification for of the Korean Confiict and we have never will give priority attention to proposals for this practice for loans made under free com­ used our V .A. Loan. This past year we have a $2 blllion fund !or direct federal lending, a petition by lending institutions. However, been diligently looking for a new home for national development bank modeled on the when loans are guaranteed by the govern­ our family. We felt that our present home old Reconstruction Finance Corp., and legis­ ment this should attain to some value to the is definitely too small for our present needs. lation to encourage mortgage investment by lender. Since his money carries the signature My husband is a high school teacher so we pension funds. of the government, as it were, it would appear had to find a home within our budget. After The FHA-VA increase is the second within that there was less risk and consequently a year of searching we found our "dream a year. The current 7% percent ceiling be­ these loans should go at lower rates. There home" at a price we could afford. We had came effective last Jan. 24. does prevail some argument that these loans many months ago signed the papers for our are indeed lower in rate but to this must be G.I. loan with the Lomas & Nettleton West TROY, MICH., added the advance fee that many companies Inc. of L.A. with the understanding it was January 2, 1970. charge. Consequently, it would clea.r the en­ to be at 7112 percent rate. Two days after DEAR Sm: I have observed your actions and tire picture if lenders were required to charge our new home had gone into Escrow we heard recommendations for some time now. I wish only a bonafide interest rate and be required the news that we would now have to pay t o express my appreciations for your con­ to dispense with those additional charges 8¥2 percent which puts our bouse out of our cern for we poor voters. It is a very regret­ that are intended as advance payments to price range. We were informed it would mean table situation that we are deceived and mis­ offset lower interest charges. There can be only $26.00 a month more or $320.00 a year treated without a cause. George Romney a.bsolutely no justification for the practice of more. made a mess here in Michigan. Now, he is agents dealing in the buying and selling of As you probably realize Sir, for a couple trying to make a mess in Washington. Such loans to consumers. It goes against the grain raising a family in this day twenty-six dol­ intellectual and reliable men as you is all we to learn that a G.I ., for instance, must, as a lars a month can be "the straw that breaks have to depend on. If you don't help us, the matter of fact, pay a cash premium for his the camel's back". We have had to give up country shall be led into destruction, I fear. government backed loan. any plans for a new home at this time and Please help us. I appeal to you with all my Whatever the policies of Congress, it is quite frankly the hopes for a beter new year heart. generally understood that our economy is are gone. Respectfully yours, subject to a degree of control by the applica­ This is the first time I have felt upset WILLIAM G. POOL. tion of interest rates and taxes. If I were per­ enough to write anyone in our Government mitted the choice I would say continue the but I feel that such an unjust and plain CINCINNATI, OHIO, tax and lower the interest rate. It is easier to ridiculous move is going to "hurt" rather January 3, 1970. see that some value may accrue from the tax Hon. WRIGHT PATMAN, but I fail to understand how the economv than "help" many people who want only to can be aided by high interest rates, especially make a better life for themselves and help Chairman, House Banking Committee. DEAR MR. PATMAN: The new rise in interest when these rates are intended to apply in the build a better community. areas of food, shelter or clothing. Surely, the I would appreciate any information on rates for FHA Insured loans has now been taken up by local Building and Loans. This home loan should receive special considera­ whom I can write to, so t hat others may tion. know how we feel and perhaps help to get is a very big blow to the Real Estate Business from which thousands of citizens earn their Your attention here would certainly bene­ this law revised. Thank you for your time fit many. It should go without saying that it in reading this letter. I so hope the future living, and an extreme hardship for service­ men wanting homes and the general public would receive my genuine personal appre­ will be brighter than it looks right now. in need of homes. Home ownership is an ciation. Sincerely yours. American heritage and should be protected Very truly yours, Mrs. HARVEY BENSON . as such. MORRIS MCALLISTEU. Mr. Patman, the drastic need for investiga­ FHA, GI LOAN RATE HIKED TO 8.5 PERCENT tion exists, not in the interest rates now FREMONT, CALIF., January 4, 1970. WASHINGTON.-A boost in the maximum being charge, but in the Point System ap­ proved by our government, and the closing DEAR Sm: We wish to extend our whole­ interest rate on government-backed housing hearted support for your stand against the loans takes effect next Monday, but Rep. costs charged by financial institutions. One Building and Loan told me the closing cost Nixon administration, regarding the 1% in­ Wright Patman, D-Tex., said today he will crease in government insured home loans, press for an investigation and legislation to for a $14,500 loan would be $631.00. This was for a young ex-marine. No service worth over which was indeed the height of irresponsi­ offset it. bility. Secretary of Housing George Romney an­ $75 or less is being performed for this added $631 closing cost. Could you call this black­ If there is anything we can do, please feel nounced Tuesday an increase from 7Y2 per· free to correspond. cent to 8¥2 percent in the interest ceiling on mail? Each building and loan wants a differ­ ent closing cost--the lowest being 2% of the Sincerely, home loans insured by the Federal Housing Mr. and Mrs. C. E. SMITH, Jr. Administration or guaranteed by the Vet­ loan. Why and for what service? erans Administration. The Point System is the same sort of black­ W. D. GRIFFITH & SON, Romney, said he was acting reluctantly, mall. By what right has a lending institution the privilege of raking off 10% or more of the Macon, Ga., January 8, 1970. but that the increase was dictated by market Hon. WRIGHT PATMAN, conditions. Funds for housing loans have be­ price a seller gets for his home? Mr. Patman what can be done to stop this? House of Representatives, come increasingly scarce as general interest Washington, D.C. rates have risen above that figure. Is our Congress representing the American people and their rights, or must they pay for DEAR CONGRESSMAN PATMAN: As a realtor Patman, chairman of the House Banking and mortgage banker, I am heartily in ac­ Committee and a longtime foe of high in­ years because the money interests are being favored? I doubt this practice is really legal. cord with the plan you have advanced of terest rates, called t he increase "the height having the Federal Reserve System buy of lrresponsib111ty." Please try to wipe out the point system and set a reasonable legal closing cost, and there­ home mortgages at no more than 6%. I am "This administrat ion, through its encour­ as outraged as you at the high interest rate agement and acceptance of high interest by get this country on the way to prosperity for the average citizen and taxpayer. and definitely believe that .this usurious rate rates, is developing federal housing programs is brought about by the greed of big busi­ only for the affluent," Patman said in a state­ Sincerely yours, Mrs. MABEL BLACKBURN, .ness and banks. ment issued through his office. Thank you for your attention. "The administration is apparently intent Very truly yours, on sending the home buyer out in the market CREDIT UNION INSURANCE AGENCY, ARTHUR GRIFFITH, Jr. to compete with the big corporations, the Baton Rouge, La., January 2, 1970. gambling casinos and fastbuck operators for Hon. WRIGHT PATMAN, available loan funds." House Office Building, RIVERSIDE, CALIF., Patman said he will renew proposals to Washington, D.C. January 2, 1970 have the Federal Reserve System buy large DEAR MR. PATMAN: Newspaper reports indi­ Hon. WRIGHT PATMAN, blocks of housing mortgages at rates not cate that you have undertaken an investiga­ Chairman, House Banking Committee, above 6 percent. An amendment calling for tion of increasing interest rates since the Washington, D.C. such use of $6 billion by the Federal Reserve advent of the new increase in rates on home DEAR Sm: In our local newspaper we read was defeated before Congress adjourned. mortgage loans. an article concerning an investigation of the But Patman said, "I am convinced the It is to be hoped that you will also con­ new hike in home loan rates. This new hike House would have approved this measure had sider that the application of the "finders fee" has deeply distressed. our family. We are the members realized that their constituents or brokers fee is used in such a manner as truly middle class Americans who are now would be forced to pay a 9 percent interest to constitute an increase in interest. The ex­ unable to afford a decent home of our own. rate in a few short days." cuse, in many instances, for this fee is said Both my husband and I have been teaching His mention of 9 percent referred to the to be that those companies that feel tha.t they for about 20 years because we enjoyed help­ FHA's insurance charge·of one-half of 1 per- are not fully compensated by prevailing in- ing our youth. Last year we went to Greece January 20, 1970 CONGRESSIONAL RECORD- HOUSE 309 at one-fourth our salary to help out in the In the interim, the FHA announced last count rates, or points they charge for mort­ educational system there. We sold our home week that they were raising the interest gage loans." Now, you know full well this is confidently sure that we could afford a rates to 9 % total! How may I ask does a just not going to happen. slightly larger one to house our family when middle-class man afford those rates? We are You are going to investigate, the story says, we returned. Now, in only one year, the not businessmen, organizations, company, and you call it the "height of irresponsibility" house we were prepared to purchase has gone or corporation. We have no children and we and you are gc ·::1g to come up with legislation up 10,000 and interest from 2 to 3 %. were just able to squeeze through with my to offset the rise. It's high time. I wonder While we were in Greece we all dreamed of working part time to be able to afford the where you've been the past decade during the day we could return to our American way 8 % rate. The additional 1% means that we which the cost of money to buy a house has of life. In one year our way of life is defi­ will have to pay almost $17 more per month! gone up nine times! nitely threatened. We are now wondering if This is completely unrealistic and outra­ Perhaps, you can't do much with George perhaps we should have become money lend­ geous? Maybe upper-class citizens and big Romney, except react. I hope your reaction ers rather than humanitarians. Please don't business can afford these rates, but surely is to the benefit of the citizens of the country let this happen to middle Americans. not the middle-man! Furthermore, we were . .. and not the lending institutions now im­ Sincerely, prepared to buy back in July, and because personalized by computers. Mrs. GEORGE LONDOS. of the delays beyond our control, I do not Forlornly, think it is warranted for us being penalized LOUIS J. MILLER. OAK PARK, III., by this exorbitant increase. How can our Janua1·y 6, 1970. dream of being a homeowner materialize PHOENIX, ARIZ., Hon. WRIGHT PATMAN, what with the prices skyrocketing far be­ January 3, 1970. Chairman, House Banking Committee, yond our pocketbook today, or tomorrow? DEAR MR. PATMAN: For the second time Washington, D.C. We must go through with this deal because since May of 1968, the government has raised DEAR SIR: Last year when you wanted to if we don't, I fear that we shall never see the interest rates after I had already pur­ put a ceiling on interest rates, I meant to our dream come true. chased a house. Both times I will have had write and express my suppvrt for the maxi­ Although you are an elected official from to pay more than I had anticipated. I an­ mum interest rate. Now, with Mr. Romney's the State of Texas, and I am a resident of ticipated, over the next thirty years, this proposed 8~% FHA and VA interest rates, New York, I sincerely hope that yo,~ might be will increase the cost of my house by some I feel compelled to write and give my sup­ of some assistance to me since we are all $6,000. I realize this amount is not great to port to your opposition. Americans. members of Congress. After all it just voted Your opposition to Mr. Romney's proposal Last week I read in the New York Times itself about a $12,000 raise to just show gives me a spark of hope that there are still that you were madder than heck about this up, three days a week about 6 months a people in government who are not willing latest increase (a total of 2% since President year and then not do anything while they to take the easy cop out by appeasing the Nixon took office) and that you were pre­ are in session. I have heard that because lobbyist; and, thereby, destroy the general paring to ask Congress for an investigation of Congress couldn't be bothered about passing public, as in this case. this exorbitant increase. I sincerely hope that the appropriations bills, it cost the taxpayer I ask you, how can interest rates go down you will be successful in your efforts. Some­ about 4 billion dollars. If that figure was when large corporations continue to borrow one must take up the cause of the middle­ cut in half and had not been taken out of large sums of money from banking institu­ class citizen and see to it that he does not the money market by the government, some tions at ever increasing rates? I also ask, be put in a position of competing with cor­ 2 billion dollars would have been available how can mortage rates go down if the fed­ porations, etc. They may be able to afford for other uses. If only 1 billion dollars of eral government puts its stamp of approval, 9 % , but not the man on the street! this foul up had gone to the Housing mar­ so to speak, on this new subsidized rate? Good luck in your effort, and thank you ket some 40,000 houses or over 2~% of the A more realistic means of curbing rising for whatever assistance you can offer me. estimated 1969 housing starts could have interest rates is to reavaluate small, short­ Sincerely, been financed. What does Congress do to term loans such as automobile loans, credit BEVERLY BAYNE. deserve $42,500 a year? card and bank card loans, charge accounts, This increase in interest rates is going to etc. A mortgage loan for the majority of the AUSTIN, TEX., stop many families from purchasing a house. populace is a life-time commitment; where­ Jan·uary 6, 1970. Buying a house is usually cheaper then rent­ as, an automobile loan is for only three Hon. WRIGHT PATMAN, ing an apartment. But there is no income years. How can a young family or a retired HottSe of Representatives, lixnitation on renting. All you have to do is couple on a fixed income see any hope in Washington, D.O. pay-with an increase each year. If I had to the future for a better way of life when DEAR MR. PATMAN: You have my unquali­ rent in Phoenix, it would cost about $300 a they are burdened by the ever rising interest fied support for your House Bill No. 13939 month for a nice apartment. Yet a house rates tied to mortgages and hidden in high directing the Federal Reserve Board to pur­ would only cost about $200 a month if you rents? chase FNMA obligations, and any other could qualify for a loan. Now the government I support your stand on this matter and measures that you can think of that would is going to decrease new housing and increase hope you will not be swayed from it. stem the unconscionable rise in interest indirectly the cost of renting due to a higher Very truly yours, rates. demand. Most areas have a 0% vacancy CHARLES E. ST. GEORGE. For your information, the discount on an rate now and with fewer housing starts al­ 8~% government backed GI or FHA loans most all areas will not have housing avail­ was being quoted at from 5 to 5~ points in able. Will the U.S. turn into a Russian hous­ ELMONT, N.Y., Austin today. Mortgage company representa­ ing market--only 1 or 2 rooms per family. It January 6, 1970. tives predict that they will be higher. appears that this is governmental policy. Hon. WRIGHT PATMAN, Congress must do something to get in­ The policy of both Presidents Johnson House Of Representatives, terest rates at a level where a willing home and Nixon is to allow or raise interest ra-tes Washington, D.C. owner can afford to buy. to levels which in my opinion are usury in SIR: Although I realize that you are an Keep up the good work. effect. What kind of policy is this advocation extremely busy man, I sincerely hope that Sincerely, of usury by the government. School bonds, you will find time to give this letter your SIDNEY s. SMITH. State governments can't borrow long-term attention, and perhaps, be of some needed money to take care of their people. assistance. DETROIT, MICH., I have disagreed with some of your posi­ Back in March, 1969, my husband and I Jan·uary 4, 1970. tions concerning banking institutions, but I signed a Contract to Purchase a new house Hon. WRIGHT PATMAN, wholeheartedly support your stand against with an FHA mortgage. At that time, the House of Representatives, the interest increase. I think its wrong and interest rate was a total of 8%. The house Washington, D.C. immoral. I think in the long run it will be sold for $24,000 and although my husband DEAR MR. PATMAN: You are quoted in an very harmful to the United States. earns sUghtly over $11,000, we were for­ Associated Press story, release date, Tuesday, I also think Congress could do more to re­ tunate (?) in getting approval. The builder January 6th, as saying, "This adininistration, duce infiation then it has. If it would use was hoping for a July 15th closing, then through its encouragement and acceptance of some restraint in spending, which it never it was postponed until August. Thereafter, high interest rates, is developing Federal has, and then force President Nixon to re­ he hit innumerable delays with the county housing programs only for the atnuent." This duce the budget, infiation can be controlled. and other officials, and we were proxnised is a referral to George Romney's recent lifting But for the Executive to reduce the budget delivery for September-then October-then of the ceiling on interest rates to eight-and-a and for Congress to spend money as if they November-and finally, without fail, prior half per cent. You call it nine per cent. made it themselves will never work. to Christmas. Then the local lighting com­ Undoubtedly, the average man straddled Sincerely, pany did not hook up the house as it was with a mortgage, or those yearning for a STEVEN c. JOHNSON. supposed to, and we were promised de­ home, just do not comprehend the workings livery would be the first week in January. of bankers, mortgage rates, and points. They PROSPECT HEIGHTS, ILL., Now it is hoped for the middle of this month, are victims. January 4, 1970. ·providing his attorney is back from vaca­ Romney is quoted in the story as saying REPRESENTATIVE WRIGHT PATMAN: Due to a tion. he "hopes bankers will now lower the dis- company transfer, I am in the process of buy- 310 CO GRESSIONAL RECORD- HOUSE January 20, 1970

Jng .a house 1n Dallas, with a F .B.A. insured SPRING, TEx. I do hope you will ~ontinue your efforts to loan. January 6, 1970. protect the public from the banking in­ I though I was buying it at 7Y:z % interest, Hon. WRIGHT PATMAN, dustry. but it now turns out to be 8 Y:z %. House Banking Committee, We are in the process of obtaining an FHA We urge you to contest this inflationary in­ Washington, D.O. loan. Since we already had to agree to pay crease of home interest rates which makes DEAR REPRESENTATIVE PATMAN: I am writ­ $1,500 more than the original price in order it very difiicult for a working man to buy and ing to let you know my feelings concerning for the seller to pay the eight points now pay for a house. At least it appears that we the increase of the FHA and VA interest demanded on a loan, you can imagine our should be able to purchase it at the interest rates. It is my understanding that you are dismay when the FHA rate was raised to 8Y:! rate which was current when the loan was protesting the .increase of these rates. The percent. applied for it seems. situation in our family may lend support to We expect to pay an investor a fair return Your respectful servant, your opposition of this inflationary step for the use of his money, but we very much Bn.L TOWNSEND. taken by Mr. Romney and the Nixon Admin­ resent being subjected to usury in order to istration. buy a necessity, a decent home for our TuRNER CORP., My husband was transferred by his com­ family. Tulsa, Okla., January 6, 1970. pany in the early Fall of this year from Many of the middle-income group feel Hon. WRIGHT PATMAN, Oklahoma City to Houston, Texas. We owned that expecting our elected representatives Chairman, House Banking Committ ee, Wash­ a four bedroom home in Oklahoma City of to defend us against wealthy special in­ ington, D.C. price 1.mder $20,000.00. Our payments were terests is an exercise in futility. You seem to DEAR CONGRESSMAN PATMAN: You are COr• $148.00 per month with loan at 6 % interest. be an exception, an honest and courageous rect! The interest rate hike in FHA-VA loans In looking at houses in Houston we could man. of 8%% is the "'height of irresponsibility". find nDthing comparable, especially in a four Being a California resident, I regret that .I hope your investigation wm be success­ bedroom home. I might explain that my hus­ I cannot express my gratitude at the polls, ful 1n curtailing spiraling interest rates. band has his office at home, adding this fact but I want you to know that your efforts are such incr~ases only serve to stimulate infla­ to our having children of both sexes, a .four very much appreciated. tionary fires as you know quite well. bedroom home is no luxury for us. We found Mrs. CAROLE GREENE. The .FNMA prices announced yesterday for we were going to be very fortunate to find residential loans are reported at 95.34 less a home in a desirable area With four bed­ STEPHENVn.LE, TEx., p & M fee and stock purchase requirements. rooms for anything under $30,000.00. January 7, 1970. Thus~ the net price is lower.ed on the first We did find a builder in a new area who offering to this dastardly low figure. Hon. WRIGHT PATMAN, could build a four bedroom house for less House of Representatives, .~.ret us compare the .same pricing formula than $30,000.'00. He also would honor a VA Washington, D.C. of F.NMA u Df Nov.ember 18, 1969, at the loan, which my husband had never needed 7%'% ra.te then existing. The price then re­ DEAR MR. PATMAN: The Writer is quite con­ until this time. We made our decision to cerned with interest rates. In my section of pm-ted was 95.2.6 less the same ~ees of above. apply for the VA loan and pay down $300.00 the country, especially the older people have This is -a '9().-day weighted average price. and sign a contract to purchase this particu­ So. it appears the increase in the rate has a large percentage oi their money in banks lar house, with VA loan interest at 7¥2 %. We and Savings & Loan Associations drawing not produced the intended results in a period moved our family into an apartment, even .eo ering ·onlY 46 days with the higher r.ate 4 .and 5 percent. When the borrower borrows though at great Inconvenience, 1n order to it, he pays 8 and 1D percent. I would like an of }'2'%. be able to purchase a house comparable to Th.a.1ik y.on lfor trying oo do something. expression from you as to why these two the one we had and be able to get a 7% cannot be drawn closer together~ Sincerely yours, loan. Our VA loan was approved the 19th of SEQtTOYAH A. iPEJUtY, ~ am awar.e that the banking industry 1s December, 1969. The house was begun the President. a "hard gang.. to do anything With more following Monday. We were dismayed to hear especially when the .are getting "fat" as they the announcement of the increase of the seem to be doing now. SPlliNGFJ:iLD, Mo. percentage of Interest on the loan. We felt January 6, 1970. My banker tells me that the .rate on sav­ certain we would receive the 7Y:z% rate inas­ ings is :fixed by law, but the lending rates Re: Home loa relief. much as our loan had been approved prior Ron. WIRIGH'l' PATMAN, seem "hog-wild." to the Interest hike. The VA Houston office May I please hear from you? ChaiT7TUUJ,, House Banking Committee,. Wash­ advised us to the contrary. ington. D#C. Sincerely, Our situation at this time is we find we are 0. V.KING. DEAlt CoNGRESSMAN PATMAN: It was indeed obligated now to buy a house we cannot eD.CGur.aging to read in the .news yesterday really aifo.rd since the interest ls hiked. Is that you were planning legislation along the NORTH HOLLYWOOD.., CALIF. lines (i)f the old H.O.L.C. which came to the there no way the person struggling to stay DEAR WIUGHT PATMAN; I'm trying to help aid ef thousands of home owners that were current can do so'? .People like us who are in my small way. Here is my latest effort. on the verge of losing their homes to mort­ subject to transfer are finding that we are Keep up the good work.. gage hollllexs. going backward instead of forward. We can­ You .are .a rare bird in high places. It does not t .ake a genius to detect that not bold onto the homes and low interest Sincerely, rates we once had. To keep our jobs and try we are being bel\ded down that same lane HASKELL H. GLENN. again with Go:vernment guarantees now at to improve ourselves we accept moves only to find we are penalized because of high interest 8.5 percent and the going :figure stauding JANUARY 7, 1970. arouncl 10 percent. rates. Hon. GEORGE ROMNEY, The Nixon administration seems reluctant I might also add that we hesitate to put Secretary, Housing and Urban Development, to do anything but put the brakes on the down $5,000 or $7,000 o.r $10,000 dollars in a Washington, D.O. money and tighten the noose until the pa­ bouse as we alway.s have to ask ourselves, "Will we be able to .sell it in 2 or 5 or 7 years DEAR MR. ROMNEY: In case you think I'm tient is prDuonced immobile and groggy. a Democrat or some kind of crank, you should I suggest we let the Bankers, mortgage when we are again transferred?" Our com­ know that I contributed ~ very small amo1.mt compa.nies and short loan cOinpa.nies con­ pany does not buy houses when they move their employees. of cash to your campai-gn even before you tinue With their easy credit loans fo.r the declared to run for President. A commercial loan (conventional) on a usual consumer .merchandise. I thought tbat any man who grew from When it com:es to Housing fo.r the masses house will guarantee the rate of interest when one first applies for it providing the childhood the way you did and the success of 1>ur low and middle income iamilies we you made in business plus your bright and certainly must have direct Governm.ent loans house is finished and the loan closed within six months. Why is this not the case with VA personable wife, would make an excellent at pre war levels for all of our City and leader of our country. Rural one family units. and FHA? These loans should not be available to pro­ Your recent quote, "We are in the midst We are following with interest your pro­ of the most sev.ere bousing shortage since moters o.r any other individual that can posal of a National Development Bank:. Some­ qualify for a home in excess of a p.rlce range WDrld War II, because of lack of mortgage one has to lend a hand to the poo.r fellow who money ..." etc.... etc.... appalled me say around $l!5,000. is just trying to keep his head above water. and many of my associates The day such relief becomes a reality you Thank you for your attention. will immediately see the home building busi­ We a11 know that Vietnam is the reason Sincerely, that there is no money arm.md for anything ness get back on its feet and the people who Mrs. Wn..LXA:M WoLLENHAUPT. constructive. There seems to be plenty for de­ .are being trapped in Mobile Homes, which are A footnote: Though I am a trained teach­ struction, though. nothing more than Ghettos, will thank all er, I have never joined the labor market as who made their freedom possible. The small home buyer who is now goin . ~ I feel my services are more valuable at home, to pay approximately $200.00 P II & P / I on a For your information: I am not an appli­ supervising my children. Our young people cant for any home loan. I am a retired home $20,000.00 loan to buy a 3 bedroom, 1 bath need more mothers to stay home and know house is priced out of the market. builder and I can see the evils being caused what they are doing. by denying our people the right of home How many G.I.'s are going to qualify for ownership. The highrise and the Mobilehome sueh a loan at 8¥2 %? How m1Uly non G.I.'s will only ald delinquency. REPRESENTATIVE PATMAN: Everytime I read can qualify 1'or this same house under F.H.A. Sincerely yours, about you in the newspaper, my admiration terms at 8Y:z % plus ¥:! % ? The answer is J. E. HOLLIDAY. grows. maybe 1 out of 100, and that 1 family .. January 20, 1970 CONGRESSIONAL RECORD- HOUSE 31f wouldn't be satisfied to live in a $20,000.00 them, enjoy a few. weeks vacation annually exists and which has been recently pyramided home. and generally live the good life. by the 1 % increase in interest on FHA and You are quoted as saying that you signed 2. We here in California have what we call VA loans. · the bill, "with great reluctance." the state financed Cal-Vet Loan for veterans I am speaking from 15 years experience Mr. Romney, we expect more of men such who have either resident-enlisted in Cali­ in Los Angeles County in the Escrow busi­ as yourself. If you had stood your ground fornia or who were born in California. ness, packaging and presenting these loans and said, "When I returned from my visit to The maximum Cal-Vet Loan is $20,000.00 through our good lenders to VA and FHA Vietnam before the last election and talked and the present interest rate is 4%, %. The with never a. question as to accuracy of in­ of brain-washing and was severely criticized only thing wrong with the picture is there formation upon which a good credit analysis and even ridiculed; I should never have re­ are no funds. - When and if they get new could be reached, or any inaccurate or false tracted." funding, the waiting list is so long that those information presented. And this covers over "Now I am more convinced than ever, that who applied a year ago will just be getting 8,000 loans during that period. if we are to win back our country and build a their application. At the ground floor, I know what the ur­ good society for our youth, revive building My suggestion is that every state should gent need is for reasonable housing which of homes, hospitals, schools and all those have such a plan to reward their native sons has been increasingly more difficult to domestic needs that we must have to give our and the Federal Gov't should provide such achieve for the average buyer. people including the slum dwellers, the will funds on some kind of equitable arrangement Before the 1% increase in interest rate, to live, we must end the Vietnam debacle with the State's doing the administering. All we have been looking at 8 Y2 to 9 Y2 points to today! Then if we use only %, of our former political consideration should be eliminated; the seller, representing a discount to attract military outlay for domestic needs, we could and thus the money made available by the loan funds. This has driven many potential reduce taxes, eliminate the excise tax, and unlimited reservoir mentioned above would sellers out of the market--for instance, a allow the economy to free-wheel. Mr. Rom­ be a way of the entire nation rewarding $20,000.00 sale at 9 points ($1,800.00} in ney, if you would stand up on your hind legs veterans. points, 6 % Real Estate commission, prepay­ and it cost you your job, you might not be Is the above plan too simple to work? ment bonus on the existing loan, title and our next President, but you would be in Is the above plan too devoid of political escrow costs results in a cost to the seller "Profiles of Courage." hanky panky to go into effect now instead of around $3,800.00 and many owners just That's what we expect of men like you and of awaiting a Democratic President or a Re­ do not have that much equity. So these Finch. You are the kind of men that can give publican Congress and/or Senate? homes are no longer on the market. the youth of the land and the world the In my opinion, if this bill were properly, Knowing that from a yield basis for each kind of future to which they are entitled. simply drawn by your agency, No President or %, % increase in interest rate the points If you watch the "points" situation in our Legislative body would dare to defeat it. should drop by 2; you may have expected present home financing situation, you will Respectfully, the points to go to 1 Y2 to 3-but what is the note that they usually drop after every inter­ HASKELL H. GLENN. result on January 5th? 5 to 6 points! And est raise and then return stealthily in the 7Y2% loans are looking at 13 to 15 points­ night back to where they were. "Points, are PAPILLION, NEBR., these deals being made in good faith, but an out and out gouge on the part of the January 7, 1970. which the lender cannot close-and you greedy banking establishment and are abso­ Mr. GEORGE :..~OMNEY, should be able to imagine the utter con­ lutely unjustified, hurts the little man ir­ Department of Housing and U1·ban Develop­ fusion and bitter resentment which this sit­ reparably and are inflationary for many rea­ ment, uation creates. sons. Washington, D.C. Federal National Mortgage Association had We are now asking sellers of G.I. and F.H.A. DEAR Sm: I was utterly dismayed to learn allocated on January 5th $120,000,000.00 and homes to pay 9 "points." Do you know that that you have raised the interest rate on they received bids of more than $700,000,- just today I was offered a loan of $16,800.00 FHA and VA backed mortgages from 7V2 000.00. on a $23,900.00 sales price by a Savings and to 8¥2 per cent. The answer is a need for money in the Loan at 9Y2 % and they want 3Y2 points plus The cost of Eving continues to sky-rocket, mortgage market. $50. with the cost of housing increasing about 8 Five years ago, the insurance companies How does this help the small home buyer? per cent per year-and you further aggra­ were creating a market for these loans. They How does this stem inflation? vate the situation by raising the cost of are no longer attracted to residential financ­ How does this help the unemployed? money to buy houses already inflationary ing of any sort--all stemming from the orig­ How does this help the construction busi­ priced. Your action causes one to question inal increase to 7Y2 % of the prime interest ness (the backbone of America's economy}? the sincerity of the administration's concern rate. Their money is going in to high rise, Here are some direct quotes from the L.A. in stemming inflation. shopping centers etc., with a piece of the ac­ Times of January 2, 1970: The building industry, savings and loan tion or on a partnership basis. And theoret­ Mr. Art Neelley, loan officer at California associations, certain members of Congress, ically you can't blame them with the Govern­ Federal S/L Assn., said, "the increase won't and all persons who must now either ter­ ment offering over 8 % in treasury notes and improve the mortgage situation much. We minate plans to buy a new house or resign Triple A bonds going at over 9 % yield. just don't have the money to loan no matter themselves to the fact that this action Today FNMA is almost the only source for what the ceiling. I think the long range ef­ will result in a substantial increase in pay­ this type of loan financing, for all lenders are fect will be to push up interest rates on con­ ments, are opposed to the increase. looking for the best yield. So today we have ventional loans., It appears to me that less people are now this situation: Mr. Louis Barba, acting president of the going to qualify for FHA or VA support and 1. Rentals are at an increasingly high cost Nat'l Ass'n of Home Builders, termed the in­ that the only ones who might benefit from and the vacancy factor is practically nil and crease "regrettable" and called on President the increase are investors. The consumer (in rents are bound to increase. Nixon to initiate credit controls. Most home­ this case the house buyer} again has been 2. Sellers with reasonable equity cannot builders contend that spiraling interest rates disregarded by those who should be con­ afford to sell. have pushed the cost of homes beyond the cerned with his welfare. 3. Buyers find it difficult to qualify for the reach of most buyers. (My emphasis.} The I urge you to consider the plight of the loan required. For instance: a sale at $20,- G.I. buyer will be completely out of the consumer and reverse your decision to raise 000.00 plus $40.00 a month for taxes and in­ market, not for just the present, but for years interest rates. I would appreciate a response. surance creates payments of $200.00 a month, and years to come. Sincerely, which means the buyer should be making I admit that if I were in your position, W. G. WOMACK. $800.00 per month clear. We doubt if VA or subject to all the strains and stresses of FHA will relax their credit requirements for public office, I, too, could not please all the LAWNDALE ESCROW Co., this boy to qualify. people all the time; therefore, be it under­ Lawndale, Calif., January 8, 1970. 4. Banks and Savings and Loan Associations stood that you have to do what you have to Hon. WRIGHT PATMAN, remain at 4 % to 5 % interest paid to deposi­ do for the majority, not the few. Here are a Washington, D.C. tors, but are now charging from 9 to 10% and few possibilities: DEAR Sm: Enclosed is a copy of a letter up to 18% for loans. Those few that have 1. The country should set aside under your we have addressed to Honorable George Rom­ loan funds available are getting rich, but department a huge fund of 6% money for ney which we feel deserves serious consid­ most lenders are out of funds, and if not, the exclusive purpose of financing housing of eration from your office as to the problems they will be after the reinvestment period all kinds under $20,000.00 per family. This involved. through January lOth, because of perhaps would include mobile homes, single and mul­ Sincerely, Treasury notes at 8% interest. Do you not tiple dwellings, urban & country, living and H. M. SHERMAN, thlnk this could have tragic results to these recreation. President. institutions? And to our overall economy? This fund should be limitless so long as Thanks to your economic advisers, who the supervision as to where it is used is rigid. LAWNDALE ESCROW Co., cannot see the forest because of the trees, we In other words, the llm.it should be when Lawndale, Calif., January 8, 1970. are at an all time high inflationary period. It every family in America is in a good clean Hon. GEORGE ROMNEY, is almost impossible to go back, but at least home, housed by a family that can afford to Washington, D.C. there can be no good reaso:J. for this spiral to pay the overhead, send their children to DEAR Sm: This is a letter of strong protest continue. Why not: schools as far as their brains and will propels about the effect of the tight money that now 1. Propose legislation prohibiting any in- 312 CONGRESSIONAL RECORD- HOUSE January 20, 1970 stitutional lender from participating in the Many honest ·and conscientious Americans pay an income tax? This would attract action or b-ecoming a limited partner, as a want the chance to buy their own home or money into the housing market and without condition for making a loan. pay their own way in a fair and just rental increasing the "'tax~s; nor would it stifle the 2. Roll back the prime interest rate charged market. There are still many investors that individuals incentive and pride with greater by banks. Use persuasion to keep their rates are willing to invest in multi-rental build­ doles or subsidies. down. ings, if the profits weren't being choked Also by funneling larger amounts of mon­ 3. Bring pressure to bear upon unions, down so low. The costs of materials, labor, ey directly into mortgages it will reduce de­ merchandisers and governmental agencies, and land are all relative to supply and de~ posits that banks are now using for com­ including school districts, to resist pressure mand. The unions help to keep the purchas~ mercial and credit card loans which only for spiraling wage increases. ing power in balance with living costs and create a greater inflation. A check on credit 4. Provide adequate money to FNMA to housing is a living cost. However, property card buying will show that it is running keep the points at a reasonable level so that taxes and interest rates are not relative, rampant. deserving people can buy homes, which so they are the unbalancing forces that has If the mortgage money supply were in­ many people desperately need. brought about the present housing shortage creased and the interests and taxes were re­ If not, I certainly can see no alternative and inflated rents. What investor will build duced, building would get a real shot in except wage and price controls, for we are or invest in a large multi-rental building if the arm and this critical housing shortage now at a most dangerous level. all the profits and equity is lost to taxes and would start diminishing. If interest and taxes Sincerely, interest? The only way the investor can in­ are not lowered the housing shortage will H. M. SHERMAN, vest or build is to increase the rents. continue to get worse, and rents will soar President. The person that would normally buy can higher. Peo.ple just cannot qualify for home no longer qualify for the loans so he is loans and pay this high interest and the FREMONT, CALD'., forced to pay the higher rent. On goes the increased income and property taxes. They January 6, 1970. inflation.. How is higher interest rates a.nd are being forced to rent and pay whatever DEAR MR. PA'l'MAN: Many are uptight, most greater taxes going to keep rents down? This is demanded. On goes the Inflation. High­ upset a.nci distraught over this recent in­ is infiation in its worse sense because it is er interest and taxes on real estate just is crease in interest rate from 7Y2 to BY:! %. The .hitting the public with an increased cost of not the answer. Like preViously mentioned government is yielding to the demands of living that is a vital necessity and one that this is a must item in the cost of living and the lending institutions. This increase is a the public is forced to pay even if it takes the !"Ubllc is forced to pay regardless what great lnjusti<:e to the general public. Hous­ their full pay check. is asked or move into the cold. If the pres­ ing is a vital necessity of life, therefore the Another solution. ent policies are continued the government public is forced to pay any rate set or live In Stocks and bonds are sold on the open will be forced to increase the rent subsidies the street. Likewise when rents are increased market. Why not create an exchange through and low interest supplements to an even a tenant must pay o.r go In the street. This which F.H.A. and V .A. insured mortgages larger portion .of goldb.rickers. high interest has forced rents up as much as can be bough.t and sold on the open mar­ Solutions again are: 50% in just the past three years and rents ket? At present F.N.M.A. 1s set up to buy ( 1) . Increase the amount of interest a are still going up. As it is now people .cannot and sell mortgages from .only the lending bank or lending institution Is permitted to qualify for new home loans and building has institutions. Why not let the general public pay the depositor. come to a standstill. Housing is critical. How in on some of these high interest yielding (2). Create an ex<:hange or allow F.N.M.A. is this Interest increase that is being applied mortgages? to buy and sell F.H.A. and V.A. insured mort­ to a vital necessity of life going to hold down If one deposits money with the bank the gages on the open market, as stocks and infiation? The public is forced to pay what­ highest interest he can .receive is 5%. With bonds are sold. ever is asked, they don't have the choice of these deposits the bank makes additional (3). Allow interest earned from mortgag.e just cutting down. It should be illegal. This commercial loans which only furthers in­ loans to be income tax free. is worse than a monopoly. fiation. Many that .are not .satisfied with None of the solutions will increase taxes The real in.fi.ation is developing with credit this 5 % interest because of the 6 or 7% in­ nor will a mrufs ·pride be stifled and his being extended for new cars, boats, TVs, and fiation are forced to .spend the money for incentive be taken away. all the non-essential credit card purchases. things they really do not need. Some will My thoughts to make the world a better This has been .a banner year for the mer­ buy over-priced real estate hoping to beat place to live in. chants and the credit card business. the inflation. Others buy over-priced stocks, Sincerely, Even with this increase in F.H.A. mortgage thereby augmenting the in:flation even E. K. LANE. interest .rates the banks will continue to more. .hoard their deposits for the higher paying Why not have F.N.M.A. serve as a clearing MORTGAGE OUTLOOK AND NEWS cmrunercial loa.n.s and credit card business. or exchange center to buy and sell a m:ort­ The recent increase in the FHA-VA inter­ This pays them a yield of 18% from the con­ gage from the general pubZic as bonds and est rate 1s not going to be reflected in sub­ sumer plus .another 4% from the merchant. stocks are solcL1 Aiso trust funds and pen­ stantially lower points .for very long. Why .should they tie their funds up with sion plans should be allowed to buy these The simplest explanation is that the de­ mortgages that ha"Ve government guaran­ long term real estate loans? As long as mand !o.r m.oney for housing is very strong. P .N.M.A. will buy the loans the banks !::are tees. There are no sources except FNMA. Conse­ less about tying up their funds. However Wouldn't it make sense for a widow with quently, when the rate changed every -they enjoy collecting the origination fees .some $25,000..00 or more that she just re­ builder, mortgage company and bank in thE ceived from an Insurance claim to buy an ! ~-% .and the servicing fees when they origi­ country bid for FNMA low point money. existing mortgage like she can buy bonds nate the loans that are subsequently sold to FNMA adjusted 7 points !or the ~% interest P.N.M.A. or stocks? She could have a regular mnnthly rate change maldng the 1014 bid of the 1ncome from the payments and Teceive max­ A solution. previous week .3~ points. The problem this imum interest returns. With F.N.M.A:s If the government really wants to attr.act week was that many bidders wanted to be guarantee to repurcb'B.Se this mnrtgage then sure of winning some money so that they more funds iDto .real estate and stop the in­ she could have liquidity in case of an emer­ :B.ation then wh.y not increJJ.Se the a..Zlowa.ble could stay in business. They bid 5 to 6 points gency, With no iisk as the loan is guaran­ a.nd forced the .average price on the 180-day ra.te of 'interest tlux.t the ba.nks and saving.s -teed by F.H.A. or V.A. money to 5 ~ points. a.nd. IDan.s companies are permitted to pay No longer would people be forced to buy the depositors. Let the public that has the The consensus of opinion 1n the industry infiated stocks that are a risky investmeni today is that to win a bid a.t next week's money share in the profits and they will be that might take a nose-dive overnight, or inclined to save rather then spend. auction a mortgage company will have to bid buy real estate they don't need or care to 6 to 7 points. Another item that is stifiing the supply manage as a hedge against intlation. Why and construction of housing is the excessive, shouldn't a private party be privileged to ltEOOMMENDATIONS confiscatory property taxes and capital gains invest in a mortgage that has an F .H.A. or 1. Take listings for no less than 7 points taxes. Specifically the recapture of depre­ V.A. guarantee? Why does one have to give to be pretty well protected. ciation as ordinary income taxes. The inves­ his money to a lending Institution or bank 2.. can for a point quote before writing tors prGfit is being choked to a nil. The econ­ at 5% only for the b'ank to put it back out a contract. omy is now at the breaking point, revolt is on commercial loans at 18 to 24% returns? .3. Write contracts even with the 8V2 in­ developing and a back-fire of stagnation The mortgage loan institutions claim that terestatS.Ih to 7 poin:ts 'today. and building recession is taking over. 8V2 % interest isn't enough. They refuse to The rapidity with which the discounts Rent subsidies and low interest supple­ make real esta"te loans unless the loan has have rebounded upward was as big a shock ment programs aren't the answer. It only been diseounted 5, 6, or even 9 points. to us as it is to you. The thing we must makes higher taxes but what 1s worse it is Still another solution. remember how.ever is iha.t housing demand is causing those that might be willing to make Instea~ of increasing the interest rates very strong. Rega:rdless or the points and re~ it on their own to stop trying and become why not make the 'interest earned on resi­ garrps has little room Estimated Estimated for maneuver-funds have been cut, ade­ number in number in quate sites are not plentiful. As I am On board other training other Number not Apr. 11, 1969 Graduated Transferred programs aware, many other sites have been in­ Center placement accounted for vestigated. But at the same time, I ·can­ Kilmer ______not condone the delay. 1. 1,671 529 551 91 280 220 2. Poland Spring ______1, 110 366 444 40 142 118 Moreover, I suggest that the most likely 3. Acadia ______--. 125 5 32 12 42 34 sites-not only in New York City, but 4. Wellfleet.------107 8 40 8 28 23 elsewhere as well-have not been utilized. Total ______--- -- 3, 013 908 1, 067 151 492 395 These are the thousands of abandoned Percent..---. __ ------30 36 5 16 13 buildings in every major city. Such sites are near businesses which will provide Certainly these :figures are disconcert­ Mr. Speaker, I am very seriously con­ sources of on-the-job training, and they ing. New York City youth made up al­ cerned-not only for the youths f<>rmerly are near recreational facilities and trans­ most half-approximately 1,400-of in Job Corps who have suffered because portation. these 3,013 youths at the four closed of the closures, but also for those youths Certainly, costs would be incurred in centers. In rough terms, these :figures seeking now to enroll in Job C<>rps and renovating these structures. But Federal indica";e that about 200 New York City who are foreclosed by this restrictive pol­ money is available for renovation of youths are unaccounted for, and only 75 icy at the New Jersey center-a policy housing. In addition-and this should be have been placed in "other training which, I should note, is to be employed particularly noted-Job Corps itself is programs." The fact that 30 percent at all the new centers. already expending large sums on capital graduated and 36 percent transferred to I question whether the legislation even investment. Approximately $600,000 is other centers is no answer to the obliga­ allows such restrictive enrollment. Sec­ being spent for renovation of the to-be­ tion the Federal Goverment under­ ti<>n 103 of the Economic Opportunity opened Atlanta Residential Manpower took-and properly so-when it enrolled Act, as amended, prescribes the stand­ Center, for which a rental of over $300,- these youths in Job Corps. ards for eligibility for Job Corps. Youths 000 is being paid for a 2-year term. A To make the problem even more se­ must be "permanent resident(s) of the building was purchased by Job Corps for vere, the Neighborhood Youth Corps has United States" under section 103(1). I the Phoenix center at a cost of $100,000, recently been modified to limit enroll­ see nothing which says that they must and extensive renovation costing over ment to youths 16 and 17. Thus, one of as well be residents of certain counties $400,000 is being done there. Three build­ the manpower programs accounting for in a State. Section 106(d) allows for as­ ings are being rented for the to-be­ the "600,000" openings for youth in signment of enrollees to "that center of opened Portland center at a yearly rental 1969, to which Secretary of Labor the appropriate type in which a vacancy of approximately $163,000. Schultz pointed, now excludes youths 18 exists." But I see nothing so distinctive These are considerable expenditures of and over, many of whom made up the about the new residential manpower money on capital investment. This is not Job Corps population. centers which justifies sending a New to say they are necessarily unwarranted. Yet, still no new center has been York City youth to a Job Corps men's Job Corps is limited by 2-year contract­ opened for New York City youth. The center in Kentucky, instead to a Job ing authority, which results in higher New York City youth who wants to en­ Corps residential manpower center only rentals. And, as I am aware, the rentals, roll in Job Corps and who is eligible for a few miles from his home in New Jersey. at least, fall within the 15-percent statu­ the more advanced Job Corps Men's And I would further note, section tory maximum set by 40 United States Center program must be sent to Breck­ 106(d) further directs assignment of a Code278a. enridge Men's Center in Kentucky, or youth to the center "which is closest to But, if money is to be spent--and cer­ to Atterbury Men's Center in Indiana. the enrollee's home." Exception to this tainly it should be to continue the Job These are the two men's centers closest requirement is very limited: Corps program-it would seem more to his home. And the young man eligible The Director, on an individual basis, may beneficial to spend it on abandoned for a Job Corps Conservation Center waive this requirement (of assignment to buildings. Thereby, needed money is must be sent all the way to North the center closest to the enrollee's home) brought into the inner city, neighbor­ Carolina. when overriding consideration justify such hoods are improved, dangerous eyesores New York City girls have a similar action. Assignments to centers in areas more are renovated, and the youths are not problem. The nearest Job Corps remote from the enrollee's home shall be carefully limited to situations in which such exported to communities which do no.t Women's Center is in Jersey City, N.J. action is necessary in order to insure an want them and which would be foreign This center only has a capacity of 650, equitable opportunity for disadvantaged to the youths. whereas formerly, not only that center youth from various sections of the country Mr. Speaker, it is too late to undo the was available, but the 1,100-girl Poland to participate in the program, to prevent un­ egregious mistake of closing 59 Job Spring Center could also serve New due delays in the assignment of individual Corps Centers-a mistake implicitly York City girls. Now, the overflow which enrollees, to provide an assignment which acknowledged by the Administration's the Jersey City Center cannot absorb adequately meets the educational or other closing of the St. Louis Job Corps Wom­ must be sent to the Cleveland, Ohio, needs of the enrollee or is necessary for ef­ ficiency and economy in the operation of en's Center in June of 1969, and its Women's Center, smce the Blue Ridge the program. now planning to open another center, at Women's Center in Virginia is restricted a different site, in the same city. It is to Appalachian girls. Perhaps the language of section too late to rescue the excellent Clinton Nor should anyone think that the so­ 106(d) can be manipulated by the Job Women's Center, and it is too late to called "new" New Jersey Residential Corps to justify restricting enrollment prevent the closure of 8 conservation Manpower Center-the replacement for at the Job Corps Residential Manpower centers in California, alone, while the Kilmer Men's Center-is available to en­ Centers to local boys and girls when ill-run Trapper Creek Conservation Cen­ roll New York City youth. A fourth the there are adequate openings close by ter is retained. size of the former Kilmer Center, the at other centers for all youths. But that But, Mr. Speaker, something can, and New Jersey center is restricted to New is not the case now. must, be done now. New centers--to Jersey youth. In fact, not even all such The situation now is that there still which the administration purports to be youth are eligible, since recruitment is to is n<> center in New York City, one <>f committed-must be opened, and they be limited, in accordance with the Job the cities designated by the Job Corps must be opened at appropriate sites­ Corps contracts for running the center, for establishment of a Residential Man­ sites which will, most importantly, bene­ to only certain New Jersey counties. power Center. The Acting Director of fit the Corpsmembers. But sites, also, at January 20, 1970 CONGRESSIONAL RECORD- HOUSE 317 which f\Ulds will be expended wisely and which we have been, are, and must con­ The foreign policy of the United States advantageously-such as abandoned in­ tinue to be unalterably committed. cannot blow hot and cold. It must not, ner city buildings. To put the matter in clear context, it on the one hand, profess that it is fol­ is my studied conviction that this Na­ lowing our historic policy toward Is­ tion must fairly maintain the historic rael and total peace in the Middle East, PEACE IN THE MIDDLE EAST commitment in the Middle East that will and on the other, foster a policy that The SPEAKER pro tempore. Under a be consistent with our long sustained gives other nations pursuing a course of previous order of the House, the gentle­ warm friendship and commitment to belligerency, and their world supporters, man from Massachusetts

But throughout his unprecedented serv­ HISTORY obstructions of justice. The Bureau was filled ice under eight Presidents, Hoover has main­ Origin of FBI with men With bad records, and many of tained the course he adopted at the outset them had been convicted of crime. The or­ with a persistence that itself has produced In 1908 President Theodore Roosevelt, ganization was lawless, maintaining many brickbats and with a success that has in­ frustrated in efforts to combat business activities which were without any authority furiated his enemies. monopolies and land grabs, demanded a new in federal statutes, and engaging in many In a 1960 study for The Brookings Insti­ federal investigation unit. Attorney General practices which were brutal and tyrannical tut;on called Presidential Transitions, Laurin Charles Bonaparte on July 26, 1908, set up in the extreme." L. Henry noted the pressures for official jobs a small group of special investigators in the Stone asked advice of Felix Frankfurter of when national administrations changed, ex­ Justice Department. The group took the Harvard University's law school, who later cept in such cases as the FBI, "where J. title "Bureau of Investigation" in 1909. became a Supreme Court Justice, and of Sec­ Edgar Hoover's public popularity made him Indicative of what the future could hold, retary of Commerce Herbert Hoover. Mason virtually unto,lchable . . ." Hoover's con­ perhaps, Bonaparte iL Century magazine, relates that Frankfurter sent Stone a copy tinued tenure in perhaps the most sensitive March 1910, described pressures that began of a letter he had written to columnist Wal­ position in Government--aside from the when he took office, visits by "prominent ter Lippmann. In it Frankfurter said: Presidency-stands as eviden.::e. lawyers representing different corporations ". ~ . The key to Stone's problem is, of The Gallup Poll in mid-1965 asked a cross­ or clusters of corporations with which the course, men. Everything is subordinate to section of Americans: "If you had a son who Go~ernment was, or expected soon to be, in personnel, for personnel determines the gov­ decided to become an FBI agent, would you litigation.... "He said when blandishments erning atmosphere and understanding from be pleased or displeased?" The poll reported received no encouragement, criticisms of the which all questions of administrative or­ that 77 percent of the persons questioner} said Department soon began. ganization take shape." Stone told Frank­ they would be pleased. The Bureau gradually grew, with addition furter la:ter that he followed Frankfurter's The Bureau has not always enjoyed high of Selective Service and espionage respon­ suggestions "almost exactly." public esteem. It was in poor repute when sibilities during World War I. Interstate au­ Stone had ideas for an agency based on Hoover took it over in 1924 with a mandate tomobile thefts were added to its tasks in Scotland Yard, his biographer says. The fu­ to clean house. After a few years of unpub­ 1919. In the pvst-World War I period the ture Chief Justice said he wanted a director licized reconstruction, the Bureau moved un­ Justice Department and its Bureau of In­ with police experience who was not steeped der Hoover's command into the front ranks vestigation became deeply involved in the in the "more usual police tradition that it of U.S. Government forces combating such activities of the "Ohio gang" under Presi­ takes a crook to catch a crook, and that law­ threats as these: dent Harding. lessness and brutality are more to be relied 1930s-kidnappings; gangsters. President Harding's Attorney General was upon than skill and special training." 1940s-Nazi espionage and subversion. Harry M. Daugherty, an Ohio political asso­ Herbert Hoover, whose integrity was un­ 1940s on-Communist espionage and sub- ciate. The Attorney General's intimate was questioned amid the post-Harding scandals, version, which Hoover says continues today. Jesse Smith, also from Ohio, who killed recommended 29-year-old J. Edgar Hoover­ 1950s on-soaring crime and lawlessness, himself in 1923 after accusations he had sold no relation-for the job. Stone appointed reaching new peaks today. his \n:fluence at the Justice Department to "young Hoover," as he sometimes called him, 1950s on-mounting civil rights strife ex- lawbreakers. acting director May 10, 1924. The modern FBI was born on that date. acerbated by extremists of right and left. Department of Easy Virtue 1960s--city rioting and street violence. It was the era in which the Teapot Dome J. Edgar Hoover 1960s-organized crime. and other scandals were brewing, resulting Born Jan. 1, 1895, in a house near the U.S. As the United States has moved through in the first imprisonment of a Cabinet offi­ Capitol, J. Edgar Hoover had worked as a new crises of rising crime, assassinations of cer in U.S. history and other massive shake­ Library of Congress clerk while taking night a President and two prominent political lead­ ups. The Justice Department itself was called courses at George Washington University. ers and unprecedented rioting, the FBI Di­ the "Department of Easy Virtue." Daugher­ He received his law degree in 1916 and his rector has spoken out often and bluntly on ty tried twice in 1926 with hung juries master's a year later. He joined the Justice what he has felt are dangers in the national each time, refused to testify for fear of self­ Department July 26, 1917. Following bomb­ trends. He has attacked complacency among incrimination. ing attempts on the home of Attorney Gen­ the citizens, a "national disregard for the William J. Burns headed the Bureau of eral A. Mitchell Palmer and on targets in realities" of the present, abuses in the parole Investigation. Alpheus Thomas Mason, in eight other cities June 2, 1919, Hoover headed system and what he has considered undue his biography of Daugherty's successor, H ar­ a new general intelligence division ordered clemency by many judges. His statements lan Fiske Stone: Pillar of the Law, says that to study subversive activities. His first en­ over the years have covered a broad range under Burns the Bureau "had become a counters with the Communist movement in of American life and have become a primer private secret service for corrupt forces the United States occurred then. on what he has seen as the fundamentals of within the government.... Included among Hoover became an assistant director of the the traditional American ethic. the special agents were some with criminal Bureau of Inv~stigation Aug. 22, 1921, and He has often been at odds with opponents records. Bureau badges and property had served directly under Burns until Burns' de­ who have called his law enforcement stand been issued to persons not employed by the parture three years later. Hoover's early ac­ "hard-line" and who have discounted or government"-persons who worked "as con­ tivities matched hiir. not only against the sought to ridicule his persistent reports of fidential agents and informers to 'frame• Communists but also against the Ku Klux Communist or other subversion. In addition evidence against personal enemies of the Klan, powerful enough to parade 50,000 men to such vigorous direct attacks, some critics Harding administration.... " down Pennsylvania Avenue in 1925. The have made other attacks on Hoover indi­ Klansmen, like the Communists, would prove rectly. Don Whitehead said in The FBI Story that perennial foes for Hoover and his Bureau the Bureau was "inept and politics-riddled" throughout his long career. Attacks notwithstanding, Hoover has be­ then. Joseph Kraft wrote in Commentary come one of the most unassailable figures in that in 19:&4 the Bureau was "a private hole­ Whitehead says Hoover told Attorney Gen­ U.S. history. His supporters far outnumber in-the-corner goon squad for the Attorney eral Stone he would accept appointment as his critics both in numbers and influence. As General. Its arts were the arts of snooping, acting director on these terms: "The Bu­ President Johnson expressed it May 8, 1964, bribery and blackmail." reau must be divorced from politics and Hoover has been a "household word, a hero not be a catch-aU for political hacks. Ap­ to millions of citizens and an anathema to Reforms pointments must be based on merit. Second, evil men." Mr. Johnson called him a "quiet, With President Harding's death Aug. 2, promotions will be made on proved ability humble and magnificent public servant." 1923, Calvin Coolidge became Chief Execu­ and the Bureau will be responsible only to For an understanding of the place the FBI tive. He appointed the respected Stone, for­ the Attorney General." This was what Stone and its director occupy in the nation today, mer dean of Columbia University's law wanted. the reasons behind the "iron hand" with school, as Attorney General after demand­ Seven months after he took the position, which Hoover is said to rule the organization ing and receiving Daugherty's resignation. on Dec. 10, 1924, Hoover was appointed di­ and behind his oft-expressed concern for Stone took over April 7, 1924, with instruc­ rector by Stone. Twenty-six days later Stone its future course, the conditions that existed tions to clean up the Justice Department. was nominated for the Supreme Court. The when Hoover took charge deserve consider­ Yale historian John M. Blum wrote that New York Times reported Hoover's appoint­ ation. Stone's appointment "completed the shift ment in its issue of Dec. 23 with a single As Harry and Bonaro Overstreet said in from obscenity to virtue.•• paragraph on the financial page. their 1969 book, The FBI in Our Open Society, "When I became Attorney General, the Building the FBI concerning the fears of some that the FBI Bureau of Investigation was ... in exceed­ In 1933, when there was a question whether could become the agency of a police state if ingly bad odor," Justice Stone wrote in 1937 incoming Presidep.t Franklin D. Roosevelt safeguards were lowered: ". . . The answer four years before he became Chief Justice. would keep Hoover on, Stone wrote Frank­ to the bland assurance 'It can't happen here' He continued, as quoted by his biographer: furter about what the new director had is that it did happen here-between 1918 "The head of the Bureau . . . had himself done upon taking over. Mason reports that and 1924." participated in serious infractions of law and Stone said Hoover "removed from the Bu- f I

320 CONGRESSIONAL RECORD- HOUSE JanuaTy 20, 1970 reau every man as to whose character there the Justice Department's equipment for term, Karpis was deported to Canada, where was any ground for suspicion. He refused dealing with the trouble. For the FBI direc­ he was still alive in 1969. to yield to any kind of political pressure; tor, this period marked the first political FBI National Academy he appointed to the Bureau men of intelli­ test at a time of national administration gence and education, and strove to build up change from one political party to another. An offshoot of the bank robber-kidnapping a morale such as should control such an In After Seven Years, Maley said: "Part of era of the 1930s was the founding of the FBI organization. He withdrew it wholly from what was in Roosevelt's mind, I knew, was National Academy to train law enforcement extra-legal activities and made it an efficient a doubt about the desirability of continuing officers in modern techniques. Hoover ex­ organization for investigation of criminal J. Edgar Hoover in office--a doubt, put there plained it at a Senate Appropriations hear­ otrenses against the United States." by Louis (Howe). When the administration ing February 3, 1950: An identification unit was set up in the had come into office in March, there were "The reason the National Academy was Bureau July 1, 1924. The Bureau's original many rumors that Hoover was to be ousted created in 1935 was that at that time we had collection contained 810,188 fingerprints in favor af a Democratic politician. I had a wave of kidnapping in this country, and transferred from Leavenworth Penitentiary vehemently defended the magnificent work there were demands that we set up a national in Kansas and from files kept by the Inter­ of Hoover to the President and Louis. I like police to stamp out kidnapping. I have always national Association of Chiefs of Police. This to think that what I did in August, 1933, been vigorously opposed to anything savor­ would grow more than 200 times in years gave me the opportunity to strengthen ing of a national police force. There was then ahead. Hoover still more and to work with him in a gap between the local and Federal authori­ Congress June 11, 1930, authorized com­ the development of plans that proved to be ties. There was jealousy, incompetence and pilation of criminal statistics, and after that successful." Moley subsequently broke with inefficiency at the local level. September the FBI became the clearinghouse Roosevelt. ". . . In one particular city we were in for national crime statistics reported by state Congress amended the kidnapping statute pursuit of John Dillinger, and we had ad­ and local authorities and published as the in 1934 to allow the FBI to move into a case vance word that he was coming to that city "Uniform Crime Reports." Hoover said that if the victim had not been freed after seven to visit a doctor for the purpose of having corrective steps should eventually become days, on the legal presumption that state a bullet wound treated. We went to the local possible when adequate statistics were avail­ lines had been crossed by that time. authorities, as we usually did, and asked their able. The kidnapping legislation was the first of cooperation.... An FBI laborato1·y was established in No­ a series of new laws that extended federal "We surrounded the block.... An hour vember 1932. A quarter century later, Hoover jurisdiction in a move by Congress and the before his time for arrival the afternoon told Congress the laboratory had at its dis­ Administration aimed at clamping down on newspaper came out stating that Dillinger posal "the finest crime detection facilities widespread crime. Hoover wrote in 1935 con­ was due for treatment. Of course, Dillinger in the world." He said: "The minute stain of cerning these laws: "This legislation, spon­ never showed up in that town. It was 2 or 3 blood, the altered document, the match sored by the Attorney General of the United months later when we had the gun battle folder found at the scene of a burglary, the States, unquestionably owes its eXistence to with him in Chicago and had to kill him. heelprint or :fleck of dust often provide the the realization that modern means of trans­ "That sort of thing prevailed in those days. essential bit of evidence needed to link the portation and communication have given to but we do not find a similar situation today. criminal to his crime or to clear the inno­ organized criminal activities an interstate That has been largely done away with due cent person." character, the combating of which requires to the fact that for a period of 15 years our In the personnel field, Hoover could say the assistance of a federal enforcing agency Academy has been in operation and these not restricted by state boundaries." officers have come here ..• These graduates by 1935: "More than 82 percent of the Di­ work with us in full cooperation and har­ vision's investigative personnel have had The chief cr1minal laws enacted from 1932 legal training or were expert accountants to 1934 were the Federal Kidnapping Statute, mony. That is the American way of avoid­ before entering the Division." Of the 600 the Federal Extortion Act, the Federal Bank ing any resemblance of national control or Special Agents in what was then called the Robbery Act, the Federal Reward Bill, the of a national pollee system to which, as I division of investigation, 418 ha.d university National Stolen Property Act, the Federal say, I am very much opposed." degrees, he said. Anti-Racketeering Statute and the Unlaw­ Hoover told the Senators: "I feel that just Through the early years, as ever since, ful Flight To Avoid Prosecution Statute. as soon as the Federal Government or any branch of it tries to assume a parental atti­ Hoover left his personal stamp on the agency. Gangster era On Jan. 2, 1932, Stone wrote Hoover: " ... tude in law enforcement, as was the case The new federal laws enabled the Justice under prohibition, there is going to be a it it always a comfort to me to see how com­ Department to move against hoodlums run­ pletely you have confirmed my judgment break-down at the local level. Local authori­ ning unchecked in the Midwest and else­ ties should be compelled to handle their own when I decided to place you at the head of where. The job fell to Hoover's agency. Some the Bureau of Investigation. The Govern­ problems of violations of local laws." of the outlaws chose to fight it out, with Three years afterward, Sen. Leverett Sal­ ment can now take pride in the Bureau in­ grim results. Although until then FBI agents stead of feeling obliged to apologize for it." tonstall (R Mass. 1945--1967), Governor of could get special authorization to carry fire­ Massachusetts from 1939 to 1944, told Hoover In later years, numerous testimonials noted arms, not until 1934, after the "Kansas City concerning the FBI Academy: "As Gover­ Hoover's personal contribution to the build­ Massacre"-when an FBI agent and several nor, I know that that school is one of the ing of the FBI. In a foreword to Whitehead's police officers were killed by gangsters-did best things, in my opinion, that the Bureau 1956 book, Hoover said: "No one person has Congress grant the power of arrest and the does." built the FBI to the organization it is today." right to bear firearms to the "G-men". Nazi fifth column But Whitehead himself said, "No other agency A spectacular series of front-page head­ in the federal government bears the imprint The homegrown gangs were smashed, but lines ensued. In the process, the name J. a new enemy threatened: the Nazis. Ger­ of a single personality as clearly as the Fed­ Edgar Hoover became familiar to every Amer­ eral Bureau of Investigation." The late Sen. many invaded Poland Sept. 1, 1939. Five days ican school boy. Among the more prominent later President Roosevelt issued a directive Everett McKinley Dirksen (R. Ill.) 1950- incidents: 1969) said in 1968 that "the Bureau has be­ charging the FBI with "the primary re­ July 22, 1934: John Dillinger, described at sponsibility for the protection of the internal come indeed a monument to one man." And the FBI in later years as perhaps the most Sen. George Murphy (R. Call!.) in proposing security of the United States," as Hoover notorious of these "criminals of the past," put it. This World War II action was at­ Presidential appointment and Senate con­ killed resisting arrest on a Chicago street. firmation for future FBI directors, said the tributed largely to the confusion that had His death mask is viewed by visitors to the resulted during World War I, when more FBI, "unlike any other agency in the Gov­ Bureau today. ernment, has grown up under the personal than 20 agencies had investigated activities October 22, 1934: "Pretty Boy" Floyd, of spies and saboteurs. guidance and under the leadership and tute­ killed on an Ohio farm resisting arrest. lage of one man." The FBI took in 33 German agents the November 27, 1934: "Baby Face" Nelson, weekend of June 28, 1941. The day after the Move into pmminence murderer of three FBI agents, fatally attack on Pearl Harbor, 1, 771 aliens deemed The kidnapping of flyer Charles Lind­ wounded in a gun fight on an Illinois high­ to be dangerous were taken into custody­ bergh's 20-month-old son March 1, 1932, way. the first of more than 16,000 aliens even­ marked a turning point in FBI history. Na­ January 8, 1935: Russell Gibson of the tually arrested by the FBI. tional indignation was largely responsible Barber-Karpis gang, killed in a Chicago alley "I recall in the pre-war years that the for enactment June 22, 1932, of the Federal resisting arrest. FBI was criticized on the ill-founded prem­ Kidnapping Statute, which gave the Federal January 16, 1935: "Ma" and Fred Barker, ise that nothing was being done to meet Government jurisdiction in kidnapping cases killed fighting agents in Florida. the Nazi-Fascist-Japanism threat to our in­ where interstate aspects exist. Hoover has May 1, 1936: Alvin "Old Creepy" Karpis, ternal security," Hoover testified before the said that prior to passage of that law the then Public Enemy No. 1, captured in New House Committee on Un-American Activi­ Bureau's work "attracted only a moderate Orleans, La. Karpis had sworn he would never ties March 26, 1947. " ... When the time degree of public attention, although it was be taken alive and, as Hoover later reported, came to act the FBI was fully prepared to extensively engaged in criminal and civil "had threatened, in a letter sent to me as carry out its responsibilities. There was not investigation. Director of the FBI, to invade the G-men's one successful enemy-directed act of sabo­ A wave of kidnappings prompted President headquarters with a machine gun before tage during the war and enemy espionage Roosevelt to ask one of his early braintrust­ Special Agents could get him." Hoover made was kept under complete control." ers, Raymond Maley, in July 1933 to review the arrest himself. After serving a prison There were criticisms alleging violations January 20, 1970 CONGRESSIONAL RECORD- HOUSE 321 of civil Uberties, among other things. Morris "a continuous, increasing menace, growing thorities. What you ought to do is go back L. Ernst, counsel for the American Civil alarmingly faster than the population of the and elect honest and efficient men to public Liberties Union, wrote a few years later, country." He said: office.' however, that although he was the lawyer " ... Basically, the present increase in "The answer invariably received is, 'We for some suspected subversives (subsequent­ criminal activity reflects a moral deteriora­ don't want to get mixed up in politics.' No ly acquitted) who were rounded up after tion among vast segments of our population. community gets any better law enforcement Pearl Harbor, "I must admit that Mr. Hoover N-ot only does this moral deterioration exist than it deserves or it wants. The citizen must had a justification in picking up my clients; within the criminal element itself, but it take an active part in local civic affairs and there was cause for suspicion, and no in­ also has corrupted millions of other Amer­ keep the spotlight of publicity on the activi­ justice was done." (For additional Ernst ican citizens who obey the law themselves ties of their community officials.'' views, see box p. 10.) yet who passively tolerate immorality and Parole abuses Hoover afterward told of another aspect disrespect for authority within their com­ of the FBI's post-Pearl Harbor activities: munities." As the most prestigious spokesman for pro­ "For more than two years the FBI had The crime increase, Hoover said, "clearly fessional law enforcement people, the FBI found that enemy spying in the United indicates that growing numbers of our citi­ director has for years sharply criticized what States tied in closely with Axis activities zens have been afflicted by a sickness which he calls abuses in the parole and probation among sister republics to the south. When I call the 'decadence disease.' Its symptoms system. In 1939 he said, "It is time that advised of the information revealed by FBI are lethargy, self-indulgence, and the princi­ sound, practical, business-like methods su­ investigations in the United States, South ple of pleasure before duty." persede the whims of the gushing, well-wish­ American countries enthusiastically agreed A year later, on Feb. 8, 1960, Hoover again ing, mawkish sentimentalist." He has spoken to cooperate. Many republics asked for FBI spoke of "moral deterioration among growing with equal bluntness many times since. liaison agents to work with their own police segments of our population." He suggested at Hoover once put his position this way: and intelligence forces." In 1947 Congress an Appropriations C-ommittee hearing that "I am unalterably opposed to abuses in our established the Central Intelligence Agency, this was reflected not only in overt crime "but system of parole, probation and other forms which has taken responsibility for intelli­ also in the willingness of many law-abiding of clemency which result in repeated parole, gence activities outside the United States. Americans to compromise their ideals if an probation, or other clemency being granted In the quarter century since World War II easy dollar can be made." to those who give no indication of reforma­ ended, two developments have occupied much Hoover testified April 17, 1969, that the tion." of the FBI's attention and resources: crime crime problem "now has greater significance In 1959, Hoover told a House committee and Communist acU\-i.ty. Hoover has said re­ than at any time in our history.... Crime that 93 of the 110 criminals listed among the peatedly that both of them constitute a has reached such proportions that morality, FBI's "10 most wanted fugitives" since March major danger -to Americans' personal free­ integrity, law and order and other cherished 1950 had received parole, probation or other dom. principles of this country's great heritage are forms of clemency. "The validity of the prin­ HOOVER AND CRIME fighting for their very survival in many com­ ciple of parole, probation, and other forms of munities today.... We mw;t not be deluded clemency is not a question in issue" Hoover Hoover saw corruption among public offi­ said. "I want to make that very clear. When­ cials at close quarters early in his career. His by those who resort to academic and irrele­ vant smokescreens in an attempt to explain ever I make any statement criticizing the war with lawbreakers has continued ever away the basic crime problem." administration of clemency procedures, I am since. charged with being opposed to those prin­ Through the years he has watched the Solutions ciples rather than the maladministration on rates of reported crime rocket ever higher, Hoover summed up his views on how to the part of those in charge of the programs." to the point that he says crime and related stem the rapid growth of crime, so far as the As the years passed without appreciable factors threaten the Republic's survival. criminal justice aspects are concerned, when results, Hoover continued to hammer on the While providing the investigative resources he told a House Appropriations Committee need for clemency reforms, often under ques­ for Justice Department officials to make hearing Feb. 23, 1968: tioning by Members of Congress during his policy decisions on, Hoover has come, through "I have always said there are three factors annual or semiannual trips to Capitol Hill. the years, to view his position as an educa­ I believe that will put a brake on crime: On Feb. 10, 1966, Hoover testified to a House tional medium by which to inform the people First, prompt apprehension; second, prompt group that there seemed to exist "a new of factors he deems important to their wel­ trials and elimination of delays such as privileged class in America-the repeating of­ fare. More than any other public official in postponements and plea bargaining; and fender.'' He said that "terror-stricken crime m-odern times, Hoover has issued a steady third, substantial sentences commensurate victims must often wonder, when they hear series of warnings, reports and commen­ with the type of crime committed.... the ceaseless clamor for unlimited concern taries based on his agency's findings, many " ... Strict impartial law enforcement for the rights of criminals, whether they too of them sharply critical of what he sees as coupled with the elimination of crime's huge have any civil rights." shortcomings in the American process. In profits and soft justice most certainly are Hoover told Congressmen in April 1969 that doing so he has stepped on many toes. immediate factors which I and many others of the first 300 individuals named on the "10 Twenty-five years ag-o Hoover was predict­ believe can lead to a reduction in our spiral­ most wanted" lists, 234 had received some ing alarming lawlessness ahead unless dras­ ing volume of crime. And by justice I mean form of judicial leniency. "The growing call tic changes were made, particularly by par­ that type of justice which keeps the balance for recognition of the rights of our law­ ents in raising their children. He cited rising true and affords the law-abiding public an abiding majority has become a clamor," he juvenile delinquency during World War U even break." said. "Our citizens have simply become over­ and noted that young offenders would be­ Hoover has resisted proposals to make fed­ whelmed with what they consider unwar­ come the adult offenders of future years. eral forces responsible for enforcing the law ranted concern with the rights of repeating He was co-author of an article in Woman's at state and local levels. "Local law enforce­ offenders. They demand a fair share of re­ Home Companion, January 1944, entitled ment represents this country's first line of gard for the security of their families, them­ "Mothers . • . Our Only H-ope," which said defense in its efforts to control crime since selves and their homes." the crime problem has its roots and draws its that what the country was up against was Hoover's statements on t~is subject, as on "not juvenile delinquency but adult delin­ vitality at the local community level. This is some others, awakened echoes of the view­ quency." He said, "Adult delinquency on a where the war against crime must be won" he point expressed late in life by Chief Justice nationwide scale preceded Pearl Harbor by at said in 1969. Stone, whom Hoover called the father of the least two generations." At the same time, the FBI Academy main­ FBI. The late Chief Justice, upon receiving The next year, The Rotarian published a tains a steady and expanding program of an honorary degree from Yeshiva College in Hoover article captioned, "There Will Be a training local police officials, and the re­ New York on May 23, 1944, said: " ... man­ Postwar Crime Wave Unless-It's Blocked by sources of the FBI laboratory, fingerprinting kind, despite its long and painful struggle Direct Action Sparked by a Revival of Some files and criminal records facilities are among up from barbarism, is not yet ready to accept Old-Fashioned Virtues." It began: the services made available to police through­ in its fullness the ultimate truth that there "Like the sulphurous lava which boils out the country. can be no civilized society, there can be no beneath a slumbering volcano--such is the The FBI director has promised no magic peace or happiness among men, without free­ status of crime in America today." Noting "a sesame in conquering dishonesty in public dom of the spirit and of the mind for all tremendous increase in juvenile crime since office where federal law violations are not a men-and I may say also, unless we pre­ the outbreak of the war," Hoover said the factor. Here again he places the primary re­ serve intact the capacity for righteous indig­ problem "has a very definite relation to the sponsibility on the local citizens. "There is a nation at every form of cruelty and injustice, problem of crime in the future." complacency at the adult level of accepting and the urge to give vigorous expression to too freely and too easily corruption, graft, it." Moral deterioration and matters of that kind," Hoover said at Hoover has viewed crime as indicative of the 1960 Congressional hearing. "Many citi­ HOOVER AND COMMUNISM broader and deeper ailments among Amer­ zens come to see me and want to know Hoover's war with Communism opened in icans, of failure of large numbers to meet whether something can't be done to clean up 1919, when the Communists were tightening their responsibilities as parents and citizens. the community from which they come. I say, their grip on Russia. An editor's note in his On Feb. 5, 1959, for example, he told a House •That matter does not fall within federal latest b-ook on the subject, J. Edgar Hoover Appropriations subcommittee that crime was jurisdiction. It is up to the state or local au- on Communism published in 1969, com- CXVI--21-Part 1 322 CONGRESSIONAL RECORD- HOUSE January 20, 1970 ments: "Even after 50 years, the battle is not various approaches-reflected the controversy Energy Commission should not employ any­ over." among the American people. Some persons one "until the Federal Bureau of Investiga­ As a young attorney in the Justice De­ would make accusations involving such tion shall have made an investigation and partment, Hoover was assigned after World prominent figures as Mr. Eisenhower. report to the Coinmission on the character, War I to prepare a legal brief on the new In the sometimes raging public debate from associations, and loyalty of such individ­ Community party and Communist Labor World War II on, Hoover, in addition to his ual .. · . . _. .... party in the United States. After a detailed investigative tasks, which were necessarily The FBI refers today to the theft of U.S. study of documents and activities, Hoover secret for long periods: atomic bomb secrets as "the crime of the submitted to the Attorney General a brief Issued many statements and discussions century." Hoover was a witness at a Senate 1n which he concluded: "These doctrines setting forth the facts on Communism with­ Appropriations Committee hearing Feb. 3, threaten the happiness of the community, in the United States as he and his colleagues 1950, the day the British government an­ the sa.fety of every individual, and the con­ saw them. nounced the arrest of Klaus Fuchs, one of its tinuance of every home and fireside. They Repeatedly stressed the virtues of a positive top atomic scientists. "Notwithstanding the would destroy the peace of the country and rather than a negative response to the threat statements of some individuals in this coun­ thrust it into a condition of anarchy and of totalitarianism from any quarter. try that we are a Gestapo and merely trying lawlessness and immorality that passees Struck with equal sharpness at extremists to be a 'thought' police, Dr. Fuchs would not imagination." on the right and the left. have been apprehended but for the investi­ Recalling that incident in Masters of De­ gative work of the FBI," Hoover said. ceit, first published in 1958, the FBI Director Attacks responses Fuchs pleaded guilty to charges in connec­ said: "Today, as I write these words, my Among Hoover's foes was The Nation, tion with the passing of atomic secrets to the conclusions of 1919 remain the same. Com­ which published two anonymous articles in Soviet Union. The action dated back to 1943 munism is the major menace of our time. July 1943, headed "Washington Gestapo." and 1944. Subsequently several Americans Today, it threatens the very existence of our The writer called World War II inquiries into were arrested and convicted in the case. Western civilization ... federal employees' loyalty "an obscene at­ (Congress and the Nation Vol. I, 277.) ". . . There is no doubt that America is tack on the elemental decencies. President The Joint Congressional Committee on now the prime target of international com­ Roosevelt himself could not qualify for work Atomic Energy said afterward: "lt is hardly munism." in a war agency. Did he not entertain the an exaggeration to say that Fuchs alone has As the man chiefly responsible for investi­ Soviet Premier, Molotov, in the White influenced the safety of more people and ac­ gating internal threats over a half century, House?" Attacking the FBI and the Civil complished greater damage than any other Hoover reiterated in his 1969 book, as he has Service Commission, the articles added, "Ac­ spy not only in the history of the United elsewhere: "America remains the primary tually, the investigative agencies work hand States but in the history of nations." target of international communism, as it has in hand with each other and the witch-hunt­ Hoover i;old a House Appropriations· Com- · been for over fifty years." ing committees of Congress." And, the writer mittee hearing Feb. 23, 1968: "Soviet policy Hoover's repeated statements on subver­ added, "J. Edgar Hoover ... has a long record as to world espionage has remained essen­ sion and espionage have placed him in oppo­ of hostility to Negroes." Other critics made tially unchanged throughout the history of sition to persons who contend that the do­ similar charges. the Soviet Union. Although the names of the mestic Communist threat has long been exag­ Hoover has told Congressional committees Soviet intelligence services differ today from gerated. Nevertheless, he has consistently re­ many times essentially what he wrote in The what they were 20 years ago when Joseph ceived unswerving support from Congress, FBI Story foreword: " ... We neither evaluate Stalin was Premier, the objective of world Presidents and the public. Former President the results of our investigations nor make conquest by Communism has never wavered. Eisenhower wrote in Mandate for Change, recommendations. We do not inject ourselves The change over the years has been not a concerning his selections of Cabinet members into the administrative operations of other change in objective but a steady intensifica­ and other officials as he prepared to take office agencies of government by saying who is loyal tion of the effort to reach that objective, the in 1953: and who is not loyal or who is a security risk destruction of a capitalistic country . . . ." "And here I digress long enough to say or who is suitable for service in the federal Hoover touched on a point he has dis­ that there had come to my ears during this government." Hoover has denied charges of cussed on other occasions: ". . . There is a interregnum a story to the effect that J. Ed­ racial bias. growing apathetic attitude toward Commu­ gar Hoover, head of the FBI, had been out On May 3, 1946, the House approved a raise nism, its danger to this country and also to­ of favor in Washington. Such was my re­ in Hoover's salary to $14,000, just under the ward the activities of the Soviet Government. spect for him that I invited him to a meet­ Attorney General's $15,000. Rep. John J. Mc­ This is not a question of supposition but it is ing, my only purpose being to assure him Cormack (D Mass.) , then Majority Leader, a fact. We know the people who are threats to that I wanted him tn government as long said the action "will constitute an answer to our country, what they are doing in this as I might be there and that in the per­ the unfair critics of this great man, and to country and what their goals are." formance of his duties he would have the show that in this body he has friends." The In his latest of several books on Commu­ complete support of my office." The period pages of the Congressional Record through nism, Hoover said: "To the hard-core Marx­ was one when public feelings were running the years contain many similar comments ists in America, the 'new style' program is not high amid controversy involving Sen. Joseph regarding Hoover. designed to promote legitimate reforms in so­ M. McCarthy (R. Wis.), among others. The FBI director told the House Committee ciety. Rather, Party's post-Stalinist format A chronicle of the FBI's role in what Hoo­ on Un-American Activities on March 26, is to create conditions which, sooner or later, ver has called a war would constitute a siz­ 1947: "Anyone who opposes the American will bring about a communist transforma­ able section of contemporary American his­ Communist is at once branded as a 'dis­ tion in our capitalist-democratic society .... tory. It would be studded with names that rupter,' a 'Fascist,' a 'Red baiter,' or a 'Hitler­ "Communism is a totalitarian philosophy made the front pages in their day-Alger ite,' and becomes the object of a systematic which embraces all phases of human life: Hiss, Whitaker Chambers, Elizabeth Bentley, campaign of character assassination. This is education, art, literature, the press, etc. It is Harry Dexter White and a large number of easily understood because the basic tactics of all-encompassing .... others. the Communist Party are deceit and trick­ "In the United States, no indication is ap­ It would tell of controversy among Amer­ ery. . . . The best antidote to Communism parent that communism has changed even icans over loyalty checks and of the pro­ is vigorous, intelligent, old-fashioned Amer­ in the slightest from its historic Marxist­ longed struggles in the Legislative, Execu­ icanism with eternal vigilance.... As Amer­ Leninist core of a materialist atheistic con­ tive and Judicial Branches over Communist icans, our most e1Iective defense is a work­ spiracy dedicated to overthrowing the insti­ registration legislation and other attempts able democracy that guarantees and preserves tutions of our society. Communism is not, to cope with what Americans found an un­ our cherished freedoms." Hoover has made as some claim, becoming more democratic familiar type of assault. It would deal with clear on various occasions that he does not through the passage of time." conflicts in organized labor, which resulted consider all criticism as stemming from sus­ Hoover has come out as strongly against in expulsion of some unions from the CIO pect sources. what he considers threats from ultracon­ on grounds of Communist infiltration or Among the Committee members present servative sources as against ultraliberal domination, and with similar conflicts within that March 26 was Rep. Richard M. Nixon (R sources. " ... There is as much danger in the motion picture industry. (For discussions Calif. 1947-1950). The next year Nixon played moving too far to the 'right' as there is in of the subject centering around Congres­ a key role in breaking the Hiss case, which swinging too far to the 'left,' " he said in sional investigations, see Congress and the ended in Hiss' conviction and imprisonment. Newsweek June 9, 1947. "There is little choice Nation, Vol. I, Chap.17.) The friendly relationship formed in the 1940s between Fascism and Communism. Both are The chronicle would deal with these and between the young Representative and totalitarian, anti-democratic and god­ more. As Hoover had suggested in his original Hoover has endured ever since. (For details less ...." In that article he said of the House brief, the controversy wrought by doctrines on Hiss case, see Congress and the Nation Committee on Un-American Activities, which of Marxism-Leninism and attempts to deal Vol. I, p. 1694.) went through much criticism throughout its with them did indeed destroy the peace of New duties existence: "As this committee fulfills its ob­ some sectors of the country. Disagreements in The atomic era added new duties to the ligation of public disclosure of facts it is high places-in the White House, on the FBI. In the Atomic Energy Act of 1946, Con­ worthy of the support of loyal, patriotic question of whether the Communist problem gress specified that violations of the Act Americans.'' In The American Magazine, Oc­ was a "red herring," and in the Supreme should be investigated by the FBI and pro­ tober 1954, Hoover wrote in an article en­ Court, concerning the constitutionality of vided that except in emergencies the Atomic titled "The Communists Are After Our January 20, 1970 CONGRESSIONAL RECORD- HOUSE 323 Minds": ". • . False accusations and careless philosophers, the thinkers wherever they Slx years earlder, the FBI director had told instinuations can do more to destroy our way may be, the professors and scientists and the subcommittee: "Youth must have its of life than to preserve it." scholars and students. These people who hero. They should have a decent hero, like When he appeared on May 14, 1964, before think, the intellectuals if you please, are a famous atthletic star or public :figure, in­ the Warren Commission investigating the as­ the ones who can and must convince men stead of having some hoodlum like a Jesse sassination of President John F. ~ennedy, that communism is evil. The world's intel­ James or someone of that type." Hoover was asked to comment on a published lectuals themselves must see that commu­ The Los Angeles Times reported in 1967 item alleging that the late President was a nism is the deadliest enemy that intellectu­ that the advertising agency for the TV show's Communist agent. Hoover replied: alism and liberalism ever had. They must sponsor was J. Walter Thompson. The agency "I think the extreme right is just as much be as willing to dedicate themselves to this has provided several of President Nixon's top a danger to the freedom of this country as cause as the Communists have been to dedi­ aides. the extreme left. There are groups, organiza­ cate themselves to their cause." "Our investigative staff represents a cross tions, and individuals on the extreme right THE FBI TODAY section of the entire country,'' Hoover said who make these very violent statements, al­ The Federal Bureau of Investigation has · in 1959. "Those now in the service have at­ legations that General Eisenhower was a grown from its unimpressive beginnings into tended over 800 colleges and universities Communist, disparaging references to the what many persons call history's greatest They come from all walks of life. They have Chief Justice and at the other end of the investigative agency. Of more than 17,000 made a living, or acquired some degree of spectrum you have these leftists who make authorized employees for 1970, some 7,000 proficiency, in 181 businesses and professions, wild statements charging almost anybody are special agents. The rest are mostly cleri­ 55 trades or crafts, and 34 separate :fields of with being a Fascist or belonging to some of cal staff. Tholtgh this is far larger than when scientific endeavor." these so-called extreme right societies. Now, Hoover took over in 1924, the agent force Twenty-three FBI agents have been killed I have felt, and I have said publicly in is smaller than some city police forces. in line of duty. Since the list of the top 10 speeches, that they are just as much a dan­ Many new responsibilities have been most wanted criminals began in 1950, 284 ger, at either end of the spectrum. They added to the agency over the years, making persons on it have been captured. Through don't deal with facts. Anybody who will growth inevitable. Criticized by some per­ the years, the FBI has marked up a high allege that General Eisenhower was a Com­ sons on grounds of "empire-building," percentage of convictions in oases based on munist agent, has something wrong with Hoover told a House Appropriations Com­ its investigations, a fact that spokesmen cite him." mittee hearing Jan. 24, 1964, concerning a as indicating thorough and careful work. In Positive Approach. While he has not hesi­ proposal to move narcotics jurisdiction to :fiscal 1968, convictions were obtained against tated to speak in the strongest terms about the Justice Department, that the FBI could 97.3 percent of the persons brought to trial those he considers beyond the pale at both handle the additional work technically. He during the year. Of the 13,059 convictions ends of the political spectrum, Hoover has added, however: that year, 11,190 (85.7 percent) were on consistently and repeatedly emphasized an "But I am against, and have been for many guilty pleas; the rest followed trials before affirmative stance as Americans' proper de­ years, the growth of the FBI. I think we are judge or jury. These percentages were typical fense against inroads by the Communists. entirely too big today, bigger than we should of other years. On such occasions his convictions as a 33rd­ be. I would have liked to see the FBI remain Hoover asks no more of his men than he degree Mason have come into evidence. Typi­ small; but that has been impossible because does of himself. His dedication to his job is cal of Hoover's advice on these lines was that Congress has yearly enacted legislation ex­ legendary. A bachelor, he was once described which he gave Nov. 13, 1954, upon receiving panding the investigative jurisdiction of the by an assistant director as "married to his the Cardinal Gibbons award from Catholic Bureau." job," with his employees to some extent tak­ University alumni in Washington, D.C.: Over the years, Hoover has insisted on ing the place of family. As often as two or "Real security in the :final analysis rests keeping the FBI-both as an institution and three times a day, Hoover recognizes employ­ within the hearts and minds of all our peo­ through its individual personnel-above sus­ ment anniversaries of 10 or 20 years or longer ple. It must be directed toward the common picion and free from outside influences. He by greeting agents or clerks in his omce goal: the general welfare of all people. Real will not tolerate, either from his employees together with their families, posing for pic­ security must start in the home where par­ or from the institution itself, deviation from tures with them and presenting them with a ents teach the fundamental lessons of com­ the standards laid down. This has meant a service key. mon decency-the virtues of thrift, temper­ steady effort against varied pressures. It has "Mr. Hoover is a very warm individual in ance, tolerance, the dignity of hard work, also produced criticism. spite of the impressions you may get from respect for the rights of others and, above "In the FBI our objective in any investiga­ the printed page," said Louis B. Nichols, all, the fundamental of all life: God has tion is to secure the facts which will estab­ former assistant to the director. Hoover is created, God rules and God can destroy.... lish the truth or falsity of e. complaint oral­ godfather of Nichols' son, John Edgar, born "What we need most in this country are legation," Hoover wrote in Masters of Deceit. in 1939. "He has a great concern for people," the things unseen-spirt tual development, "We do not evaluate nor do we ma.ke recom­ Nichols said of Hoover. "He does a lot of moral power and character. There can be no mendations for a course of action as to things for people that nobody hears about, real or complete education without the in­ whether a man should be prosecuted, hired, because that is part of his markup, the way culcation of moral principles." or removed from a job. The FBI is strictly a he is." If someone in the Bureau gets sick, Ten years later he wrote in the Harvard fact-gathering agency, responsible, in turn, Hoover takes steps to see he is taken care of, Business Review, January-February 1964: to the Attorney General, the President, the both Nichols and others say. "If he thinks "Our approach toward communism must Congress, and, in the last analysis, to the somebody is suffering from overwork, he'll not be negative or defeatist. We are against American people. The investigative and ad­ order them to take a vacation," Nichols communism, but that is not enough. We judicatory processes simply do not belong in added. must stand for something-the moral and the same organization ... Hoover joshed for their paunchiness an spiritual forces which make for decency, Men of the FBI audience of 1,700 at the 1967 rulnual conven­ honesty and understanding. These ideals are tion of the Society of Former Special Agents what give strength to America." The future of the FBI rests with the men of the FBI. "While I recogni21e many of the who carry out its tasks. Hoover has insisted Hoover has received cooperation from faces, I don't recognize the size of the bodies," on rigid discipline. The absence of scandal he was quoted as saying. some national org!\nizations in his efforts to that has characterized the agency is a meas­ circulate information concerning the goals, About 62 percent of the special agent staff ure of his success in imbuing his force with on the rolls Apri11, 1969, had been with the techniques and doctrines of the Commu­ the spirit symbolized on the FBI's blue and nist movement in this country. Among the FBI for 10 years or longer. Of 15,811 em­ gold seal in the words "Fidelity, Bravery, ployees at the time, 6,293, or 40 percent, had foremost organizations is the American Le­ Integrity." gion. Cartha D. DeLoach, an assistant to the 10 years of service or more. In addition to careful screening of recruits Some who depart move into top positions. director who is among those mentioned from applicants required to meet high edu­ prominently as a possible successor to Nichols became a senior executive of Schenley cational and character standards, the new Industries Inc., after retiring from the FBI; Hoover, was national vice commander of the agents are put through 14 weeks of training. Legion in 1959 and since then has been he served as one of six . senior advisers to "As regards appearance, Mr. Congressman, I President Nixon in his 1968 campaign. Rep. chairman of its national public relations certainly would not want to have any of the commission. William T. Cahill (R N.J.), an FBI agent in beatniks with long sideburns and beards as 1937-38, was elected Governor of New Jersey Hoover concluded a chapter of his own employees in the Bureau," Hoover told a Masters of Deceit by quoting from Don Nov. 4. (See box p. 8.) House subcommittee Feb. 10, 1966. Agents Murphy of Oalifornia told the Senate in Whitehead's The FBI Story. Hoover said must deal with all kinds of people, he said. Whitehead spoke "most accurately" 1n 1968 that one thing that is overlooked "is They have to sell themselves to them to get the number of times that this great man, Mr. saying: their confidence to obtain the information "The top command of the FBI have no Hoover, has been offered opportunities to thart; they need." leave his position and go into industry, to illusions that communism can be destroyed Hoover said that the FBI cooperated with in the United States by the lnvestigation, make his fortune, to fill his bank account the television show "The FBI,'' and he took with gold, if you will." prosecution and conviction of Communist note of the public image portrayed by Efrem Party leaders.... Zimbalist Jr., the inspector. "I want our FBI National Academy "The FBI knows that the bigger job lies special agents to live up to that 11llage," The academy at Quantico Marine Base in with the free world's intellectuals.-the Hoover said. Virginia 1s being greatly enlarged. Congress 324 CONGRESSIONAL RECORD- HOUSE January 20, 1970 ln the Omnibus Crime Control and Safe Many other Americans dl1Ier with those elates a standard of professional conduct, Streets Act of 1968 authorized expansion of views and concur with the House resolution the chain-of-command structure and the capacity from 200 graduates a year to 2,000 that expressed the hope in 1964 that he would stabilizing presence of a force of dedicated a ye·ar, plus short courses for up to 1,000 other continue as director "for many years to agents with 10 years or more of service. The police officers. Since its founding in 1935, the come." Rep. John J . Rooney (D N.Y.), chair­ Overstreets, too, had a warning: academy had graduated 5,435 persons through man of the House Appropriations Committee "During Hoover's directorship, we have 1968, including 161 from 38 foreign countries. welcomed Hoover to a 1966 hearing as "the all been oddly protected by the 'rhinoceros' Hoover told Congress that of the academy distinguished and indestructible director" of skin which he says he has had to develop. graduates who were active in law enforce­ the FBI. He told Hoover two years earlier that The post-Hoover Bureau could promptly be­ ment in 1969, nearly 28 percent were execu­ "we are indeed proud of the fact that we have come a menance if its Director were to let tive heads of their agencies. "The FBI Na­ you as one of the greatest administrators in any pressure group influence his decisions. tional Academy has been a vital and dynamic government." Both the House and the Senate It would become intolerable if he were either force in the law enforcement profession and have consistently given the FBI the funds it to ally himself With any one cause or to let today stands as the West Point of law en­ has asked for. the Bureau be turned into a prize to be con­ forcement training," he said. Rep. Prince H. Preston Jr. (D Ga. 1947- tended for by advocates of rival causes." Identification Bureau 1961) concluded a complimentary exchange Hoover told a House group in 1964: " I real­ From the original 800,000 fingerprint cards, with Hoover at an Appropriations Committee ize the brickbats come, but I judge the the Bureau's files have kept pace with popu­ hearing Feb. 8, 1960, by saying. "I think that source from which they come. Many times in the Congress the Federal Bureau of In­ criticisms come from sources and individuals lation and crime growth. As of Jan. 1, 1969, vestigation probably is held in the highest the files contained 190,514,720 sets of finger­ who, had they not criticized us, would have prints, representing an estimated 82,833,574 regard by the largest number of Members of caused me great concern." individuals. Of these, Hoover said, 17,777,268 any agency in Government." Expressing In Mr. Nixon, Hoover has a President with persons were in the police files and 65,056,306 agreement were Representatives Robert L. whom he ha.s enjoyed a long and comforh­ persons were in civil categories. By Dec. 10, F. Sikes (D Fla.), Frank T. Bow (R Ohio) ble relationship. The President dined at 1969, the files had grown to 194,788,120 finger­ and Glenard P. Lipscomb (R Calif.). Hoover's house in 1969. Ralph de Toledano, print cards. In the 1968 Presidential campaign, Demo­ in a 1960 biography, Nixon, said Mr. Nixon FBI LaboratoTy cratic primary candidate Eugene J. McCarthy was once interested in joining the FBI. Mr. called for Hoover's retirement. McCarthy said Nixon took and passed the FBI examination, Scientific examinations by the FBI Labora­ that he felt the FBI, along with the Selective the author said, but decided against joining tory climbed in number every year from 1950, Service, was among institutions that had if accepted. Toledano added: "Hoover never­ reaching a record 342,690 in fiscal 1968. Serv­ gone beyond political control and that he be­ theless likes tp consider Nixon 'one of my ice is provided free of charge to state and lieved Hoover had "independent authority." boys,' a designation, Nixon says, 'which I am local law enforcement agencies and other McCarthy said Hoover had been in office so very proud to bear."• U.S. Government agencies. long that he tended to regard the FBI "as a The FBI di,rector's relations with Attorney National Crime Information Center (NCIC) kind of fief." General John N. Mitchell, who has spoken The newest weapon developed by the FBI One of Hoover's relatively few open critics, out for a stronger law enforcement approach, for use against criminals is a computer net­ Fred J. Cook, wrote in The FBI Nobody are said to be far more congenial than With work. Hoover presented information to legis­ Knows (1964): "The greatest sin of Hoover some earlier Attorneys General, including lators in April 1969 that described the system and the FBI is th-at, by a monumental prop­ Mitchell's predecessor, Ramsey Clark. as follows: aganda effort, they have made themselves Hoover wrote in 1956 that he had set the "One of the most important developments sacrosanct. Once a man, an institution, is policy in 1924 of making promotions from in the history of law enforcement, the NCIC en!;Jhrined on a pedestal above the law, im­ within the Bureau. "Every person serving provides a computerized index of information pervious to criticism, democracy loses the today in an executive or supervisory capacity concerning crimes and criminals of nation­ fine edge of its freedom and takes a long in the field or in Washington has come up wide interest. . . . Vital information can be stride toward authoritarianism." Cook the line from the staff; it is to be hoped obtained from the national index in a matter challenged the FBI's performance in the that it will always be so," Hoover wrote in of seconds and made available to the police Hiss case, and atomic thefts case, the 1960 Whitehead's book, which he praised for its officer on the street." San Francisco rioting during a House Com­ "accurate portrayal" of the FBI's record. The system has terminals serving law agen­ mittee on Un-American activities hearing, Nichols, long a top assistant to Hoover, left cies in nearly all states and at the Royal and in the field of civil i'ights, in which Cook the Bureau in 1957 to enter private industry. Canadian Mounted Police headquarters at contended that "the vaunted FBI has been He said in a 1969 interview that he thinks Ottawa. a complete and abject failure." any successor to Hoover should come from The system contained 913,469 records by In 1965 President Johnson said on na­ within the FBI ranks. He expressed the hope April 1, 1969. The FBI said it handles more tional television, in announcing the arrests that it would be a long time before such a than 33,000 messages a day, answering in­ of four Ku Klux Klan members in Alabama move became necessary. Nichols, himself fig­ quiries in an average of less than 10 seconds in the slaying of Mrs. Viola Liuzzo March uring in speculation on potential successors, each. 25, 1965: "I cannot express myself too rules himself out. He said a 1968 legislative FBI Building strongly in praising Mr. Hoover and the men proposal by Rep. H. Allen Smith (R. Calif.), A new FBI building is under construction of the FBI for their excellent work in han­ a former FBI agent, providing that a future on Pennsylvania Avenue near the Justice dling this investigation. It is in keeping with FBI director should have spent seven of the Department in Washington. When it is com­ the dedicated approach that thiS tireless past 10 years in the FBI, had considerable pleted, Hoover S"aid, FBI functions now car­ organization has shown throughout the merit. The bill was not acted on. ried on in eight different buildings will be­ turbulent era of civil rights controversies." Hoover has said there are a number of come centralized. Books and counter-books have been pub­ officials in the FBI who could take over his lished on these and other issues, examining job successfully and that he hopes the next OUTLOOK criticisms in detail and presenting the re­ director wlll be selected from within. Hoover told a Senate Appropriations Sub­ buttals. Both Whitehead and the Overstreets Nichols said "The Bureau has come of committee March 27, 1953, in discussing the went into many of the charges that have age" and is the kind of organization in FBI's expanding fingerprint files: been leveled against the Bureau over the which "you wouldn't think of gOing outside" "Whenever a person dies or reaches the age years and presented their findings. for top personnel. The FBI is extremely com­ of 75, we remove the print from our active "A person who tries to decide between plicated, he added, "and for a perfect records because by that time he is no longer Hoover's warnings of what could make the stranger to come in, it would be difficult." considered active in the criminal field." FBI illlto a poli.ce-state instrument and his MR. FBI Pressed to amplify, he explained that the critics' charges that it is such an instru­ Americans for two generations have spoken prints were not destroyed but were placed in ment ends up dealing with relative degrees of J. Edgar Hoover and the Federal Bureau a separate file. "By the time an individual of convincingness, not with absolute proofs," of Investigation in a single breath and re­ who has been in criminal activity becomes 75 the Overstreets wrote. garded them as a single entity. To friends years of age his activities are pretty well cir­ Whitehead said that "there is one condi­ and foes alike, Hoover has been "Mr. FBI." cumscribed," Hoover said. tion under which the FBI could become a That long identification must inevitably Now reaching that age himself, Hoover has 'Gesta-po: This could happen 1f the tradi­ undergo a change sooner or later. Already drawn criticism for staying in office. When tional checks and restraints were corrupted retained indefinitely by two Presidents be­ President-elect Nixon announced in Decem­ or eliminated by a dictatorial government, yond the mandatory Government retirement ber 1968 that Hoover would stay on, The New and the FBI was then used as a political age of 70, Hoover will be 75 on Jan. 1. York Times said editorially: tool." Hoover himself said in the foreword: Reports of his imminent retirement have "Like time and the river, J. Edgar Hoover "The FBI should never be permitted to be­ circulated for more than a decade, becoming is apparently destined to go on forever:' The come an independent agency, operating with­ more persistent with time. They have al­ newspaper added, "Mr. Hoover has outlived out the checks and controls under which it ways failed to materialize, to the pleasure of his usefulness, and often exceeded his au­ now operates." his innumerable supporters and the irrita­ thority." He had acted, the editorial said, The OVemtreets listed among safeguards tion of his critics. as "a law unto himself." built into the FBI by Hoover and his asso- Hoover now says that he has no intention January 20, 1970 CONGRESSIONAL RECORD- HOUSE 325 " of retiring so long as his health continues DON'T SHOOT,· G-MEN CROSS-SECTION OF HOOVER'S WRITTEN, to be excellent and that he has no ambition Less than 19 months after the Lindbergh SPOKEN OPINIONS other than to continue serving in his present kidnaping vaulted the FBI from obscurity For half of the 20th century, J. Edgar capacity. toward national proininence, a tense inci­ Hoover has held a vantage point at the center Today, as a result of the 1968 Presidential dence stamped its agents with the nickname of the U.S. Government unequaled by any elect ion, operating conditions for the veteran "G-men." Clubs of "Junior G-men" sprang other individual in American history. From FBI director are the most compatible in up across the land in the gangster-ridden this perspective he has spoken out many years-a factor that could encourage him to 1930's, encouraged by cereal box-top promo­ times in speeches, articles, books, appear­ con tinue in his post. At the same time, he tions; some of their alumni grew up to join ances before Congressional committees and has the knowledge that when the time the FBI. in public statements. For years be has comes for a successor to be named, the ap­ The label caught the nation's fancy and granted few interviews and held almost no pointment will be made by the President did much to build the public image of the press conferences. Some of his comments: himself with the advice and consent of the FBI and its ohief as one big-name mobster Revolution Senate. Until Congress enacted that provi­ after another fell before the blazing guns of sion in 1968, the next FBI director would the G-men in the months that followed. " ... the truly revolutionary torce of his­ have been appointed by the Attorney Gen­ J. Edgard Hoover related the origin of the tory is not material power but the spirit of eral without Senate confirmation. religion. The world today needs a true revo­ term in the Tennessee Law Review of June lution of the fruitful spirit, not the futile FBI RESPONSIBILITIES 1946: sword. Hypocrisy, dishonesty, hatred, all "The Director of the Federal Bureau of "In the early morning hours of Septem­ these must be destroyed and man must rule ter 26, 1933, a small group of men surrounded Investigation has charge of investigating all by love, charity, and mercy." (Masters of violations of Federal laws with the excep­ a house in Memphis, Tennessee. In the house Deceit, 1958) tion of those which have been assigned by was George 'Machine-Gun' Kelly, late of legislative enactment or otherwise to some Leavenworth Penitentiary. He wa,s wanted Juvenile delinquency other Federal agency. The FBI has jurisdic­ by the FBI for kidnaping. For two months " ... If a child can be reached by the tion over some 180 investigative matters. FBI agents had trailed the gangster and his adults around him and fortified with the Among the more important of these are wife, Kathryn Kelly. Quickly the men of the funda.mental values of good citizenship, he espionage, sabotage, treason, and other sub­ FBI, accompanied by local law enforcement will come through successfully in spite of versive activities; kidnaping; extortion; officers, closed in around the house, and en­ adverse conditions that may surround him." bank robbery, burglary, and larceny; crimes tered. (The Rotarian, April 1945) on Government or Indian reservations; "'We are Federal officers .... Come out "The present youth problem does not in­ thefts of Government property; the Fugi­ with your hands up... .' volve child pranksters and mischiefmakers. tive Felon Act; interstate transportation of " 'Machine-Gun' Kelly stood cowering in a We can no longer afford to let 'tender age' stolen motor vehicles, aircraft, cattle, or prop~ corner. His heavy face twitched as he gazed make plunder into a trifling prank, reduce erty; interstate transmission or transporta· at the men before him. Reaching trembling mayhem to a mischievous act, and pass off tion of wagering information, gambling de­ hands up toward the ceiling he whimpered, murder as a boyish Inisdemeanor or the act vices or paraphernalia; interstate travel in 'Don't shoot, G-men; don't shoot!' of an emotionally disturbed youth." (House aid of racketeering; fraud against the Gov­ "That was the beginning of a new name Appropriations Committee hearing Feb. 5, ernment; election law violations; civil rights for FBI agents. By the time Kelly had been 1959) matters; and assaulting or killing the Presi­ convicted and had received his sentence of Freedom dent or a Federal officer. life imprisonment, the new nickname, an Hoover referred to "the disintegrating "Counterfeiting, postal, customs, and in­ abbreviation of 'Government Men,' had taken effect of self-indulgence, neglect of duty, and ternal revenue violations and illegal traffic hold throughout the underworld. Along the public lethargy in a nation of free men." He in narcotic drugs are crimes handled by other grapevine of the powerful empire of crime said these influences form "a common de­ Federal agencies." passed whispered words of warning about the noininator" with eneinies of the Republic. (United States Government Organization 'G-Men'.'' "Who are these enemies of our Republic? Manual, 1969-70) HOUSE RESOLUTION ON HOOVER They are the crime syndicates, the narcotics FBI AGENT QUALIFICATIONS pedd1ers, the labor racketeers, the unscrupu­ The House of Representatives by unani­ lous businessmen, the corrupt politicians, FBI Director J. Edgar Hoover introduced a mous voice vote on May 7, 1964, adopted a memo at a House Appropriations hearing resolution (H. Res. 706) honoring J. Edgar and all others who blatantly defy the laws of April17, 1969, which he said set forth "quali­ Hoover on completion of 40 years as FBI di­ the land. fications a special agent applicant must have rector. It was submitted by Rep. Edwin D. "They are the hatemongers and the false in order to receive an appointment." The Willis (D La. 1949-1969) on behalf of the liberals who would subvert our Constitution memo said: Committee on Un-Amerlcan Activities. It and undermine our democratic processes in "Applicants for the position of special said: furtherance of their selfish ends. agent with the FBI must be male citizens of "Whereas J. Edgar Hoover, in his position "They are the Communists and otlher sub­ the United States, must have reached their as Director of the Federal Bureau of Inves­ versive elements who wave false banners of 23rd but not their 41st birthday on the date tigation since May 10, 1924, has compiled one legitimacy and patriotism while relentlessly the application is filed; be willing to serve of the most remarkable records of service plotting to destroy our heritage of freedom." where needed; must be graduates of State­ to God and country in our Nation's history; (To Catholic Youth Organization, New York accredited resident law schools or graduates and City, Nov. 16, 1963) of a resident 4-year college with a major in "Whereas, throughout his tenure in office, Hatemongers accounting and at least 3 years of practical J. Edgar Hoover has consistently displayed "Nowhere in recent months have our peo­ accounting and/or auditing experience. In strong moral determination and great per­ ple faced a more explosive condition of addition, the Bureau is presently considering sonal foresight in recognizi·ng the threat shame and violence than among the hate­ for the special agent position applicants and meeting the challenge of deadly enemies mongers, the moral degenerates, the lunatic possessing a 4-year resident college degree .;>f American freedom, including the Soviet­ fringe and the other irrational fanatics who with a major in a physical science, fluency in trained and Soviet-directed leadership of the preach a doctrine of hostility toward their a language for which the Bureau has a need, Communist Party, U.S.A.; and fellow man. This rabble has sown the drag­ or 3 years of substantial business or pro­ "Whereas, under J. Edgar Hoover's brilliant on's teeth of malice and intimidation; and fessional experience. administration, the Federal Bureau of Inves­ from the ground has sprung a series of hate­ "Applicants must be in excellent physical tigation has waged a fearless and unrelenting driven riots, bombings, and desecrations.". condition and must have no defects which battle against America's criminal and sub­ (Speech to Catholic Youth Organization.) would interfere with their use of firearms or versive underworld while, at the same time, with their participation in raids, dangerous fully observing and protecting the rights and Communism assignments, or defensive tactics. Success­ privileges guaranteed inhabitants of our "I do not believe that any person who is ful applicants are thoroughly investigated country by the Constitution and laws of the a Communist bas the right or should be al­ prior to appointments." United States; and lowed to teach in any school, private or pub­ "Whereas J. Edgar Hoover and his Fed­ lic, for this reason: We talk a great deal ROGERS' STATEMENT eral Bureau of Investigation associates have about academic freedom and we believe it. William P. Rogers, President Nixon's Sec­ brought new standards of efficiency, in­ When one follows the Communist line one retary of State, was Attorney General under tegrity, and impartiality to the law enforce­ is not free but is merely following the dic­ President Eisenhower. Testifying before a ment profession and have truly earned the tates of the Kremlin and is really restricted House Appropriations Subcommittee Feb. 3, admiration and respect of all right-think­ in his thinking. (House Appropriations Com­ 1960, Attorney General Rogers said in re­ ing citizens: Now, therefore, be it mittee hearing Feb. 8, 1960.) sponse to a question: "Resolved, That on this fortieth anniver­ The international Communist conspiracy ". . . I am obviously concerned about in­ sary of his appointment as Director of the is clearly the greatest menace free civiliza­ ternal security but I think that the FBI has Federal Bureau of Investigation, the House tion has ever known. . . . The seriousness of done such an excellent job over the years in of Representatives offers its congratulations the domestic threat from a Soviet-dominated their intelligence activities that I do· not and its gratitude to J. Edgar Hoover for his Communist Party in the United· States bears know of any way to improve it, frankly .... years of devoted service and expresses the a relationship proportionate to the world I do not know how you could improve the hope that he will continue in his present threat posed by its masters in the Soviet operations of the FBI in internal security." office for many years to come." Union and must be gauged accordingly.... 326 CONGRESSIONAL RECORD- HOUSE January 20, 1970 "Next to subversion Itself, the greatest APPROPRIATIONS AND PERSONNEL. FISCAL 1921-69- Crfme trend in the United State.s, 1968 danger this country can face 1s an ever­ Continued versus 1967 calendar years growing national disregard for realities-­ Pereent evidenced by an attitude tha-t our way of Personnel,• ehange life is so well entrenched that nothing need speciat Total be done to protect It:' (Hearing Feb. 5, 1959.} acents ~tal ------17 l!urd~ ------14 Sentences FOJ'cible rape------14 1956_ ------$52, 805, }4} ... 278 9, 873 "As to the effect of severe sentences, I am 63, 400, QOO 5,141 ll, Robbery ------29 1951_ ------m Aggravated assault______12 of the school of thought which believes that 1952_ -·------90. OOO.IlOO 7 029 15, 799 1953 _____ ------70, 254, 000 5: 379 12, 711 such sentences are a great deterrent in the Burglary ------13 1954 ___ ------77. ooo. 000 5, 458 13, 096" Larceny $50 and over------21 commission of crime, particularly crimes of 1955_ ------78 282, 000 5, 458 13, 096 violence. . . . I do not believe in brutal 1956_------93; 826.11l0 6,1105 13, 803 Auto theft------18 punishment but I do believe the public 1s 1957------95,510,000 i 005 13, 74.8 Source: Hoover testimony Aprtl 17, 1969, entitled to its right to exist and survive in 1958_------101, 4.50, 000 6: 000. 13, 599 before- House Subcommittee on Appropria­ our communities without fear of going into 1959.------112, m, ooo 6, ooo 13, 599 tions. 1960_------114, 6oo, ooo 's· 223 t 3•• 435 the streets at night. . . . 1961 __ ------118.000, QOO oo5 13 504 ERNST COMMENTS "I think the judges, of course. in consid­ 1962_------127.216,ooo 5:935 13.,579 Morris L. Ernst, counsel :for the American ering the imposition of sentences, should 1963_------136, 200, 000 5, 967 13.728 1964_------146, 900, 000 6, 014 14, 239 Civil Liberties Union, studied the FBI for weigh the rights of the defendant. The crim­ 1965.------150,445, 000 &. 014 14, 239 more than a decade. He told his conclusions inal is entitled to consideration. but, the 1966.------165,365,000 6, 432 15, 04& in "Why I No Longer Fear the FBI," pub­ 115, 465, llOU 6. 532 15, 211 rights of society and those of the victims o! 1967------lished by The Readers Dige&t, December 1950. vicious crimes are just as important, if not 1968.------186, 574,000 6, 590 15, 515 1!169------.--- 219, 670, 000 6, 82:5 16, 484 Ernst said his interest arose when · he paramount to those of the criminal." (Hear­ 1970_------232,853,000 ------read In 1939 that J. Edgar Hoover had asked ing Feb. 8, 1960) the Attorney General not to endorse a law 1 Appropriations for some fiscal years inclUde. su.pplemental that would legalize the :free use of wil'e­ He spoke or "forces or evil" worlting to or deficiency appropriations. Available sou:rees 111 some yeaB. tapping. Hoover said, "I do not Wish to be corrupt the morals of American youth. No­ exclude last-minute deficiency appropriations applying to the the head o:f an o.rgani.zatlon of potential pJevious fiscal year. • _ bla~ers ... where is this fact more obvious than in the 2 Complete personnel data for the 1921-38 penod IS not avail­ lewd films. obscene photographs, lnde.cent able from Congressional hearini sources or the FBI. His study since then, :r:rnst said, showed that. .. the evidence indicates that the magazines, and other forms of matter which Source: Congressional Appropriations Committee heafings,.. an can be found in community after community fisca11922-70. PBI as a matter of unvarying policy has across the land." (Hearing Feb. a.. 1960) played fair with criminals and suspects... Religion Other excerpts from Ernst's article: WELL-KNOWN FODI1!R FBI AGJ:NTS ..A real "smear' campaign has been carried "I have sald many Umes tha1. too ma.ny on again$ Hoover's work. Those who :feared ministers preach at a level whieh 1s beyond Senate Thomas J. Dodd (D Conn.}. the bureau-as I once did-will be glad to the comprehension of many adults when know the facts. The FBI hr unique in the they should get to a plain 'down to earth' House of Representatives history of national police. It has a magnif­ level. We need more preachers in the min­ Omar Burleson (D Texas) • icent record of respect for individual free­ Istry like Dlr. Norm.a.n Vincent. Peale, Bish• 16 •commercial enter­ ting worse. ~eney or instrumentality of the United prises and a.ssoeiatlons... -the ms tei"mlnoi­ Sincerely. States or a State or any political subdivi­ ogy. not mine--wanted to pay $2.000 per sion thereof. Such agencies may not publish five digit zip code a.rea. for the statistical WEsTLAKE VILLAGE', CALIF. or otherwise disclose such information. The data.. prohibitions of this section shall be deemed Among these commercial enterprises and OCTOBER Zl, 1969. to be within the meaning o! 5 U.S.C. 552(b) associations were the nation's biggest direct Representative JAMES O'HARA, (3}, the Freedom o! Infoz:mation Act. mail advertisers, plus such outfits as "Names Washington .. D.C. (b Section 7515 of such Code (relating to Unlimited,.. and ••An:lencan Mall Associates." DE'AR Sm: This is fn regard to JOUr stand special statistical studies and compilations) But in its press release on the subject., the against Internal Revenue Service selling in­ is amended by inserting \he following a.1i the ms emphasized again the public agency formation obtained from our income tax end thereof: "Such transcripts may not con­ aspects of the data. and ehose to- ignore the forms. I am definitely against ft also. We tain data. based, in whole or In part. on the :tact. that. private clients outnumbe:r public are deluged with junk mail-unsolicited classification of taxpayers under a coding purchasers by better than 2 to 1. items sent to us to buy and telephone solic­ system for the delivery o! mall. The preced­ Surprisingly, the IRS press release oblique­ itations. The junk mail makes more loss fo-r ing sentence shall not apply to statistics ly confirmed what I had been contending the postal department-more litter for- the made available on an official basis to an all along, that the data would be most valu­ garbage men to gather and dump. agency or instrumentality o! the United able to direct mail advertisers. I feel that with the information on our States or a. State or any political subdivision One tax omciat rephrased the press ::re­ tax forms and on our social security :records thereof. Such agencies ma.y not publish or lease statement concerning direct advertisers' we have no more privacy at all. otherwise disclose such information. The use of the tax data. I contend, as you do, the "IRS should stick prohibitions o! this seetion shall be deemed The Wall St;eet Journal quoted the tax­ to collecting taxes.. (which they sure eauf to be within the meaning of 5 U.S.C. 55-.2 man a.s saying: "It could actually serve to do) and let private business collect Its own income data. I hope you can get more of Cb) (S) , the Preedom o1 Information Aet ... cut down junk mall." With income areas pinpointed, commercial mailers rifie­ the Congressmen to go along wit.b you. SEc. 2. The amendments made by see-tion "can Sincerely, 1 of 1his Act shall take e:ffect upon enact­ shot the stu:ff, rather than shotgun it.'• Shotgun, rifle or high-caliber howitzer, I men1. NEW SMYRNA BEACH, FLA. still say that the IRS is doing us no favor, and has no business using tax returns to NEWSLETTE& 0CroBEa 23. 1969. promote junk mail. This is hat is at issue, Representative JAMES O'Ha.R..&~ (By JAMES G. O'HA.u.. Representative in no matter how hard the IRS works to disguise Congress) Democrat, Michigan~ U.S. Congress, it under the mask oi public benefit. Washington, D.C. If you live in a reasonably a.1f1Uent area. DEAR REPRESENTATIVE O'HARA: 1 am writing and start getting a lot more Junk mall de­ OCTOBER 23.1969. to express my support for criticizing the use livered to your home. you may have the DEAll REPRESENTATIVE O'HARA: May 1 write Internal Revenue Service to thank for it. of IRS data for direct mall advertising. w encourage you in your e:fforts to prevent Contrary to what the IRS said ~hls would That'S right, the Internal Revenue Service. Internal Revenue Records to be used by not constitute invasion o! privacy because To be sure, the IRS is busy collecting taxes, ..Junk Mail" compant:s. none of the information could be used to but it also moonlight&-COmpiling tax statis­ An excellent editorial in the Provldenee identify individuals.u ••• to me, a eitlzen, tics from your income tall returns and sell­ Journal this morning tells o! your work. and to my husband ..• this is an invasion ing them to public agencies and private Sincerely, of privacy. Although I realize that the sell­ businesses. ---. ing of these lists would pay the cost of our No names are used, o! course, since there PROVIDENCE, R.I. government employees, this 1s not a func­ are confidentiality laws prohibiting the dis­ tion of our government. closure of individual tax returns. SEPTEMBER 21, 1969. Please advise the powers InvolVed that I But nonetheless, it does compile, publish Representative JAMES O'HARA, do not even give out information to R. L. and sell aggregate statistics and has been U.S. Congress, Polk and Co. when they eome door to door doing it for years. Washington, D.C. soliciting such in!ormation. Heretofore, this moonlight activity on the DEAR. MR. O'HARA: I am writing concerning X have no choice except to complete my part of the ms has drawn little public the idea o! the Internal Revenue Service, sell­ ms form-but I do have the option to en­ at tention. ing lists and data to business firms. courage the Civil Liberties Union to look The principal reason it escaped notice is It is a blatant violation of our privaey­ into this matter. that the statistical ca.pa.b111t1es of the IRS and I very much appreciate your attitude to­ Thank you again and you ean be sure I am limited the data. to large populat.ion groups-­ ward the situation. notifying my Congressman-charles Mosher generally no smaller than a metropolitan I shall write to our own Congressman this of my feelings. statistical area. afternoon. Very truly yours, But now the IRS has refined Its procedures There's so many junk mailings these days-­ ------. and, with the help of the Post Office Depart- one less would be appreciated. It is tradl- LORAIN, Omo. January 20, 1970 CONGRESSIONAL RECORD- HOUSE OCTOBER 23, 1969. DUBLIN, VA., the Postman del!vers to your home for DEAR Sm: Please excuse me if I have not October 22, 1969. charitable causes. used the correct address or form. Ple&Sf} ac­ Re: IRS Selling Tax Data. It seetns that the average person in my cept my apology. Hon. JAMES O'HARA, neighborhood gets on more catalog and cir­ I write in connection with yout .;rlticlsm House of Representatives, cular mailing lists every year. Many of the of IRS selling data from tax returns. The Capital, firinS are completely unknown to ~. I fervently pray that you will continue to Washington, D.C. Thanks for your effort in behaU of the object to this. I feel this is a terrible inva­ DEAR Sm: Cheers for your efforts to block taxpayer who is already overloaded with ad­ sion of privacy, and the fact that they are the Internai Revenue Service from selling vertisements and requests for his money. obtaining this information from supposedly data to business firms. Yours truly, confidential returns, makes it worse. They do not need to sell anything; they Thank you for your attention. are well-paid by the tax-payers. I personally HAMPTON, VA. Yours truly, cannot see the benefit in compiling these lists and money could be saved by omitting DEAR MR. O'HARA: Please use all your in­ Nt-NN, CoLO. the process. Such is not the function of this fluence to prohibit our Government from organization and I strongly object to same. selling tax data to any mail-order firms. MOLINE, ILL. Keep up the good work! Thank you. Representative JAs O'HARA, Very truly yours, U.S. House of Representatives, ARVADA, COLO. Washington, D.C. DEAR CONGRESSMAN O'HARA: I want you to KETCHIKAN, ALASKA, NOVEMBER 11, 1969. know that I and many other Americans agree October 22, 1969. Representative JAMES O'liARA, with your position opposing the sale of data Hon. JAMES O'HARA, House of Representatives, from tax returns to those firinS engaged in House of Representatives, washington, D.C. direct mail advertising. Washington, D.C. DEAR MR. O'HARA: Our Richmond news­ Not only is this an invasion of privacy, but DEAR MR. O'HARA: I am writing regarding paper carriers an article that says the IRS is equally important, it would be used to supply your recent disclosure of plans by IRS to thinking of selling its computor tax informa­ advertising material which we do not want publish detailed statistical information taken tion to mass mailers. I sincerely hope that and which is sent at a cost to the American from tax returns. I am opposed to such action this is not allowed to take place! taxpayers. as I understand it. Can you furnish informa­ Junk mail is already filling our mailboxes, Until such time as Congress is willing to tion on the plans and suggest ways in which when anything worth receiving gets crum­ establish postal rates for bulk mailing which I can effectively work against them? pled up in the mass of mailings. If they need is sufficient to cover delivery costs, we should Sincerely, money, and how can they not need any, than do all we can to discourage bulk mailing in raise taxes 2¢ per taxpayer, and let us keep order to reduce the tremendous deficit in­ our privacy, and I say that with tongue in curred by the Postal Department. OCTOBER 21, 1969. cheek, because we don't have much privacy Sincerely, Representative JAMES O'HARA, left. House of Representatives, Sincerely, Washington, D .C. ------. OcTOBER 28, 1969. DEAR MR. O'HARA: I read in tonight's RICHMOND, VA. MY DEAR MR. JAMES O'HARA: I am writing Portsmouth (N.H.) Herald about your efforts you in reference to the I.R.S. selling certain to prohibit the Internal Revenue Service information from tax returns which I say is from selling data collected from tax returns THE NATION'S LAW SCHOOLS AND violating taxpayer's privacy. I for one and to private businesses. THE ENVIRONMENTAL DECADE­ also a lot of my friends are up in the air over I'm with you. The Internal Revenue's job PARTIAL RESULTS OF AN INFOR­ this as we are already deluged with a bunch is not to serve the ends of private business. MAL SURVEY CONDUCTED BY of junk mail which I am getting sick of. It is Already there are far too many wa~ in CONGRESSMAN JOHN P. SAYLOR sickening to go to the mail box and get a which advertisers can obtain the names of bunch of junk and besides I think they got people whom they harass with unwanted OF PENNSYLVANIA their nerve revealing people's privacy and I junk mail. I am opposed to adding one more (Mr. SAYLOR asked and was given for one am against it and am behind you source of mailing lists to the confusion. permission to extend his remarks at this 100% and hope you can do something to pre­ Please continue in your efforts to keep the point in the RECORD and include ex­ vent it. IRS busy at its proper job. In fact, from the to Thank you. length of time it took for me to get an answer traneous matter.) to a query about a tax problem---eleven Mr. SAYLOR. Mr. Speaker, just before IRONTON, OHIO. months-the IRS could stand some revamp­ the old decade ended, I sent letters to ing of itt; present procedures. the deans of our Nation's law schools HARRISBURG, PA. Yours truly, asking them to cooperate in an informal Representative JAMES O'HARA, survey of their institutions' programs House of Representatives, KrrTERY. MAINE. and/or plans for instruction in the field Washington, D.C. of environmental law. The text of my DEAR Sm: Your stand on the sale of tax­ Representative JAMES O'HARA, return data is most commendable. Such a Michigan, House Office Builcling, letter follows: practice could encourage an invasion of pri­ Washington, D.C. CONGRESS OF THE UNITED STATES, vacy and also make us the target for tons of DEAR REPRESENTATIVE O'HARA: In last eve­ HOUSE OF REPRESENTATIVES, junk mail. ning's Times-Herald (Newport News) an AP Washington, D.C., December 29, 1969. In Pennsylvania, the State sells our name article noted that the Internal Revenue is DEAR DEAN: By the time you receive this, and address to business fir:rns. Our mail considering selling tax return data to private the "Environmental Decade" will be under boxes are so stuffed with all kinds of adver­ businesses. Your name was mentioned as way. Every citizen has a stake in the protec­ tising that there is scarcely any room for mail opposing such a move. May I join you in tion and improvement of the nation's envi­ we welcome. opposing the Internal Revenue furnishing ronment but most observers concur that the If Internal Revenue Service and other gov­ any data to private businesses. legal profession will play a critical role in ernment agencies are within the law, then You would be able to check back into the these great issues during the decade. I am this law should be revoked. They give infor­ laws authorizing the Internal Revenue and sure you agree that proper preparation for mation concerning us without our consent see exactly what Congress set it up to do. that role is the responsibility of the nation's and permission. That definitely is a violation Though I do not have that information at law schools. of our rights. hand, I would assume that Congress never As a long-time conservationist, Member of There are so many media of communica­ wrote into any law the right for this bureau Congress, and member of the Bar, I am nat­ tion in which to advertise that they should to do more than collect taxes. If it did, I urally pleased to see this public concern for not be allowed to impose upon the citizens. think Congress should take steps to change the environment taking shape with reliance These firms make the matter more obnox­ the IRS status. on our profession to carry the battle forward. ious by refusing to accept any of the mail It is very hard today to have much pri­ However, I feel some disquiet about the which we return. They order the Post Office vacy with the telephone callers trying to scope of legal training a~vailable to students not to forward it, that would be a nuisance sell you merchandise or services if your num· in matters affecting the environment; I hope to them, but little do they care how annoy­ ber is listed, with oil and other companies to ease my concern about such training as a ing it is to us. sending you credit cards you didn't request result of an informal survey. Thank you, sir, :tor your efforts in this and with all kinds of forms asking for your I wish to inquire about your school's pro­ matter. I wish you every success. Social Security nUinber. Then, of course, one grams and/or plans for instruction along Yours very truly, reason the Post Otnce Department never these lines. I do not expect you to itemize ---. operates in the black is the piles of requests every single course or seminar being o1fered 330 CONGRESSIONAL RECORD- HOUSE January 20, 1970 at your institution, but I would like to re­ not wish to wait until their second or third Environmental Law Center, outlined in ceive an over-all summary of your "environ­ year in order to consider environmental considerable detail the plans and pro­ ment-related" curriculum. The information problems. from my survey will be presented to the grams for the new center. He also men­ Congr~s and to selected groups who seek to Responding for Dean Toepfer of Case tioned a new publication: assist the law schools-and thus the nation­ Western Reserve University, Franklin We are also commencing publication-we in the protection of our natural and national Thomas Backus School of Law, Associ­ hope by the end of this school year--<>f a heritage. ate Prof. Arnold W. Reitze, Jr., said in quarterly publication on environmental mat­ Your assista.nce in this survey will be deeply part: ters. This would involve at least six of our appreciated. students in preparing short case notes and Advanced courses are given in water law legislative comments, although the journal With every good wish for a Happy New and in atomic energy law with emphasis Year, I am, itself will have broader than purely legal on environmental considerations. An inter­ coverage. In addition, of course, at the Center Sincerely yours, session program dealing with air and water JOHN P . SAYLOR. we have approximately fifteen students work­ pollution control is offered. In their senior ing with lawyers on proposed legislation and The response from the deans has been year students may elect a two credit hour developing research for government agencies gratifying in numbers, enlightening as research program. Currently students are interested in environmental matters. investigating strip mining and national to curriculum, and exciting as to pros­ park policy in the Great Lakes region. On pects. As most of us in Congress know, Associate dean of the Yale University an informal basis, there is an opportunity Law School, Ralph S. Brown, Jr., re­ law courses tend to be highly traditional, to participate in community environmental but as one of the deans remarked in his ported on the course which the law school problems. It is hoped that this opportunity is offering for the first time this year: letter, "change is in the winds.'' will evolve into a formal clinical program. It would be difficult to relate all the Environmental Regulation: An explora­ According to the information for­ tory examination of the ways in which law various courses that have been or are be­ warded by the University of Denver's is used to shape the character of the physical ing established around the country; but College of Law, the environment as a environment. Issues will be selected from suffice to say, the Nation's law schools course of study and action is well such areas as land management, air a.nd are well aware of the growing concern launched. Associate Pr.of. Thomas P. water pollution, and conservation. for our national and natural heritage Brightwell, reporting for Dean Robert and the responsibility of the legal fra­ Acting Dean Luvern V. Rieke of the B. Yegge, sent a brochure which out­ ternity to help protect it. University of Washington School of Law lined the natural resources program, reports that the school has a total of In order to give our colleagues some and said: fiavor and scope of the concern for the 27 credit hours available for students in As you can see, we have oriented this environmental subjects. environment in the law schools, I have program to take into account both tradi­ extracted particularly interesting and Severllll of the courses are related to en­ tional natural resource law and related en­ vironmental protection. These are: Natural representative portions of some of the vironmental issues. In addition to the Resources Seminar, Ocean Resources Semi­ responses I have received to my letter. courses listed, we offer a Seminar in En­ nar, Selective Problems on Environmental I want to stress that the following are vironmental Law which examines, in depth, Protection Seminar. only representative; I expect to continue the area of environmental litigation and the my reports on this subject as more re­ public input into the decision-making proc­ From the National Law Center of sponses are received. ess when environmental questions are pres­ George Washington University, I re­ ent. In addition to our Natural Resources ceived a detailed summary of environ­ Dean Jefferson B. Fordham of the Program, our Student Practice Program is University of Pennsylvania Law School ment-related courses which are avail­ actively engaged in assisting local attorneys able to both undergraduate and grad­ says: in the preparation and trial of so-called I say with strong conviction that I share "Public Interest" environmental cases. At uate law students. Associate Dean Ralph your interest in environmental problems. It the present time, the Director of our Stu­ C. Nash, Jr., states in part: is my responsibility to serve as President of dent Practice Program is in the process of We have had several discussions of changes the Association of American Law Schools bringing two of these suits directly, with which would be necessary to evolve into a during 1970 and, at my suggestion, the As­ the aid of members of our faculty and in­ program on environmental law and have gen­ sociation has made 'Man and Nature' its terested students. We anticipate further erally concluded that only a few Mlditional program focus for the year. This means that direct action through the Practice Program. courses would be necessary. this organization of 122 law schools will be addressing itself particularly to the giving Dean Willard H. Pedrick of the Ari­ Although the foregoing are partial of adequate recognition in the educational zona State University College of Law comments from just a few of the law and research programs in law schools to en­ rep.orted from the Southwest, as fol­ schools I contacted, I believe one can see vironmental problems. lows: a definite and exciting trend being de­ veloped. Young people of the "now gen­ Dean Alfred W. Meyer of Valparaiso In addition to other courses which deal University Law School reports: with some aspects of the subject, the follow­ eration" entertng law schools this year ing courses and seminars are specifically de­ will have the opportunity to play a major By and large our curriculum is tradition­ signed to prepare our students to play a ally oriented but change is in the winds as role in protecting the Nation's environ­ positive role in the protection and improve­ ment before this decade closes. As my we have recently added several youthful ment of the country's environment: Natural members to our faculty who will not permit future reports from the schools will Resource Development-emphasis in thiS show, the opportunities to study and us to rest content. Our Curriculum Com­ seminar is on environmental control; law mittee is currently restudying our program in in a Technological Society-this seminar sur­ work in this developing area of the law the light of concerns such as yours . ... More veys the impact of technology on society and are widening every day. specifically, we are talking about an inter­ the law. Student response to the Natural disciplinary course which would involve a Resources Development Seminar has been chemical engineer, a biologist, and a law encouraging. Two sections are being offered TAKE PRIDE IN AMERICA professor who would combine their talents this year in order to accommodate those who in organizing a course in the area of water wish to participate.

SENATE-Tuesday, January 20, 1970 The Senate met at 12 o'clock meridian, such assistance is available to homestead authorized to be expended, and for other on the expiration of the recess, and was entrymen; purposes; to the Committee on Public called to order by the President protem­ H.R. 10184. An act to provide for the dis­ Works. pore (Mr. RUSSELL) . position of judgment funds of the Sioux Tribe of the Fort Peck Indian Reservation, The Chaplain, the Reverend Edward Mont.; . THE JOURNAL L. R. Elson, D.D., offered the following H .R. 11372. An act to amend the act en­ prayer: Mr. MANSFIELD. Mr. President, I ask titled "An act to authorize the partition or unanimous consent that the Journal of Almighty God, in whose will is the sale of inherited interests in allotted lands in the Tulalip Reservation, Wash., and for other the proceedings of Monday, January 19, destiny of men and nations, deliver us purposes", approved June 18, 1956 (70 Stat. 1970, be approved. now from the tumult of the busy world, 290); and The PRESIDENT pro tempore. With­ from the claims of many duties, and the H.R. 12795. An act to amend the act en­ out objection, it is so ordered. confusion of many voices, that we may titled "An act to provide better facilities for hear again Thy still small voice, lifting the enforcement of the customs and immi­ our vision, allaying our fears, instructing gration laws," to increase the amount au­ COMMITTEE MEETINGS DURING our minds, and flooding our inmost being. thorized to be expended, and for other pur­ SENATE SESSION Imbue with Thy higher wisdom all whose poses. Mr. MANSFIELD. Mr. President, I ask service to Thee is rendered in this place. unanimous consent that all committees Make them sure of the goal toward which HOUSE BILLS REFERRED be authorized to meet during the session the Nation moves and certain of each of the Senate today. step taken to reach it. Grant Thy recon­ The following bills were severally read twice by their titles and referred, as The PRESIDENT pro tempore. With­ ciling grace, that being united in devo­ out objection, it is so ordered. tion to the Nation's welfare and the bet­ indicated: terment of all mankind, Thy servants H.R. 6244. An act to enable the Secretary here may be ministers of healing to a of Agriculture to extend financial assist­ ATTENDANCE OF SENATORS broken world. In the stress and strain of ance to desertland entrymen to the same extent as such assistance is available to The following additional Senators at­ this day and all the days ahead lead them homestead entrymen; to the Committee on by Thy spirit to the fullness of Thy tended the session of the Senate today: Agriculture and Forestry. BAYH, DODD, GOODELL, and STEVENS. kingdom, the law of which is love and the H .R. 10184. An act to provide for the dis­ ruler of which is the Lord of Life. position of judgment funds of the Sioux In His holy name we pray. Amen. Tribe of the Fort Peck Indian Reservation, DEMOCRATIC CONFERENCES HELD Mont.; and YESTERDAY AND THIS MORN­ H.R. 11372. An act to amend the act en­ MESSAGE FROM THE HOUSE titled "An act to authorize the partition ING-REMARKS BY THE MAJOR­ ITY LEADER A message from the House of Rep­ or sale of inherited interests in allotted resentatives, by Mr. Hackney, one of its lands in the Tulalip Reservation, Wash., Mr. MANSFIELD. Mr. President, the and for other purposes", approved June 18, Democratic conference met yesterday reading elerks, announced that the House 1956 (70 Stat. 290); to the Committee on had passed the following bills, in which it Interior and Insular Affairs. morning to prepare for the beginning of requested the concurrence of the Senate: H.R. 12795. An act to amend the act en­ the second session of the 91st Congress. H.R. 6244. An act to enable the Secretary titled "An act to provide better facilities for This :first meeting largely concerned of Agriculture to extend financial assistance the enforcement of the customs and im­ routine matters-housekeeping chores of to desertland entrymen to the same extent as migration laws," to increase the amount the Senate, so to speak. It was followed