16482 (:ONGRESSIONAL ~CORD- HOUSE August 6 general public ln the name of veterans, and in United States through research and de By Mr. SELDEN: for other purposes; to the Committee on velopment by creating a Coal Research and H. R. 13700. A bill to provide for the denial Veterans' Affairs. Development Commission, and for other pur of passports to supporters of the interna By Mr. ANDERSON of Montana: poses; to the Committee on Interior and In tional Communist movement; to the Com H. R. 13690. A bill to authorize Federal sular Affairs. mittee on Foreign Affairs. grants to assist States to survey the need for, By .Mr. PATTERSON: to plan the construction of, and to construct H. R. 13695. A bill authorizing the con needed homes for the aged; to the Commit struction of a project on the Sucker Brook for PRIVATE Bn..LS AND RESOLUTIONS tee on Banking and Currency. local flood protection at Winsted, Conn.; to Under clause 1 of rule XXII, private By Mr. CELLER: the Committee on Public Works. bills and resolutions were introduced and H. R.13691. A bill to provide for the ad By Mr. PORTER: severally referred as follows: H. R. 13696. A bill to change the method of mission of 50,000 refugees; to the Committee By Mr. GUBSER: on the Judiciary. selecting candidates for appointment to the Military Academy, the Naval Academy, and H . R. 13701. A bill for the relief of Mrs. By Mr. CELLER (by request): Sonja Winther; to the Committee on the H. R. 13692. A bill to eliminate all respon the Air Force Academy; to the Committee on Armed Services. Judiciary. sibility of the Government for fixing dates By Mr. BOYLE: on which the period of limitation for filing By Mr. RUTHERFORD: H. R. 13702. A bill for the relief of Je suits against Miller Act payment bonds com H. R. 13697. A bill to authorize a substitute rome Blaz; to the Committee on the Ju mences to run; to the Committee on the plan of repayment for the Balmorhea project, diciary. Judiciary. Texas; to the Committee on Interior and In By Mr. SAUND (by request): By Mr. DENT: sular Affairs. H . R. 13703. A bill for the relief of Gene H. R. 13693. A bill to amend part II of the By Mr. FULTON: R. Hickcox and Gudrun B. Hickcox; to the Interstate Commerce Act, so as to clarify the H . R. 13698. A bill to amend the Universal Committee on the Judiciary. authority and jurisdiction of the States in Military Training and Service Act with re By Mr. THOMPSON of New Jersey: those portions of the motor carrier field in spect to reemployment rights of certain vet H. R. 13704. A bill for the relief of Louis which Federal authority is exerted; to the V. Papadopoulos (also known as Louis erans; to the Committee on Armed Services. Pappas); to the Committee on the Ju Committee on Interstate and Foreign Com By Mr. VORYS: diciary. merce. H. R. 13699. A bill to provide for the tem By Mr. WILSON of California: By Mr. MOORE: porary denial · of passports to supporters of H. R . 13705. A bill for the relief of Pat H. R. 13694. A bill to encourage and stimu the international Communist movement; to rick W. Gowan; to the Committee on the late the production and conservation of coal the Committee on ·Foreign Affairs. Judiciary.
EXTENSIONS OF REMARKS
A Tribute to Capt. John T. Ferrier I would like to quote a few lines of the tlement Commission of the United editorial which eloquently express the States. tribute due Captain Ferrier: Commissioner Clay was highly suited EXTENSION OF REMARKS for the task he has so well performed. OF It was the kind of heroism that keeps the fine traditions of our fighting forces fresh. He is a graduate of the Taft School HON. FRED SCHWENGEL Nothing replaces a living father; but Captain in Middletown, Conn., a graduate of Ferrier's children will grow up knowing OF IOWA Union College and the University of their father passed the test of heroism as Virginia Law School. After having IN THE HOUSE OF REPRESENTATIVES gloriously as anyone has ever done. made an outstanding record as a prac Wednesday, August 6, 1958 The Davenport area will long remem ticing attorney in New York City he Mr. SCHWENGEL. Mr. Speaker, last ber Captain Ferrier. His memory is to volunteered his services to the Federal August I had the privilege of witnessing be perpetuated in the Capt. John T. Government. He was a former Chair an amazing demonstration of precision Ferrier Memorial Award Trophy which man of the International Claims Com flying by the Minute Men, the precision will be presented to the scout or ex mission. When this Commission was jet flying team of the Air National plorer having the best character, sports merged with the Foreign Claims Settle Guard. · manship, leadership, and highest score ment Commission of the United States This unit appeared at the conserva in this year's tournament scheduled for he became its most experienced member. tion sports tourney in Davenport, Iowa, Davenport August 10. Such an award Many members of the bar of the vari sponsored by the Davenport chapter of will become a feature of all succeeding ous States who have appeared before the Izaak Walton League in conjunction sport tournaments sponsored by the Commissioner Clay have expressed them with the Buffalo Bill area council of the Izaak Walton League and the Boy selves on not only his ability but his Boys Scouts of America. Scouts of the Dave_nport area. courtesy and fair treatment. I had a chance to meet each member It pleases me to see this action taken. I speak for many Members of Con of the team at that time. I was im Captain Ferrier was the prototype of gress in expressing the deepest regret pressed by these fliers and proud of the every young American's ideal airman. that he has chosen to withdraw from fact that men of this caliber and fitness His heroism will inspire youngsters for Federal service. It is understandable, were a part of our first line of defense. generations to come. however, that his public service could not On June 7, of this year, Capt. John continue forever due to personal com Ferrier. "slot" position pilot on the team, mitments and a large young family. We was killed during an air show at Patter wish him well. son Air Force Base, Ohio. It is the be Commissioner Henry J. Clay lief of all who witnessed the accident that Captain Ferrier sacrificed his life to EXTENSION OF REMARKS protect the people in the residential sec Interpreting ADA tion adjacent to Patterson Air Force OF Base. Although he had ample oppor HON. STUYVESANT WAINWRIGHT EXTENSION OF REMARKS tunity to successfully eject himself from OF the crippled aircraft, he obviously OF NEW YORK elected to stay with his jet until the last IN THE HOUSE OF REPRESENTATIVES HON. STEVEN B. DEROUNIAN possible moment to divert its course into Wednesday, August 6, 1958 OF NEW YORK a nonpopulated area. He was success IN THE HOUSE OF REPRESENTATIVES ful in doing so, but in the process was Mr. WAINWRIGHT. Mr. Speaker, forced to wait too long to have sufficient 4% years ago an able, young lawyer of Wednesday, August 6, 1958 time to escape. fered his services to the Eisenhower ad Mr. DEROUNIAN. Mr. Speaker, on In an editorial, the Denver Post has ministration. Today Henry J. Clay is July 29, the gentleman from New York called this the highest brand of heroism. resigning from the Foreign Claims Set- [Mr. CELLERJ, who enjoys the respect of 1958 CONGRESSIONAL RECORD- HOUSE 16483 all Members of this body and with whom May of this year the ADA issued a state after delay before the new weapon was I have served many years, extended his ment which, when the backing and fill adopted. remarks in the RECORD to disagree with ing is removed, says, "ADA urges imme Congressman SIKES was correct in my comments about Americans for diate negotiations toward diplomatic pointing out that money has been a Democratic Action 3 days earlier. recognition of the Peking regime." scarce item for weapon procurement not Certainly, we all respect the great wis The gentleman from New York quotes because of Congressional policies as much dom of the gentleman and agree that on me incorrectly when he says I claimed as those of administration and Bureau most subjects he is both articulate and the ''ADA is· devoted to a program of full of the Budget policies. And because of knowledgeable. It is unfortunate that and steady employment." What I said these policies the pilot line production of he, like so many of those he considers was "the ADA, through its program, the new M-14 rifie is just beginning at truly patriotic Americans, have a blind promises full and steady employment the Springfield Armory. spot in their thinking about this group and production." The inference is quite I agree with Congressman SIKES that which first infiltrated and then took over different. A promise by the ADA is icing the situation in the Mid East is a clear the Democrat Party. on an unbaked cake. indication that the day of the foot soldier It is with considerable regret that I In reading the remarks of the gentle and the rifle is not past. The United must correct the gentleman, but I feel man from New York it is obvious that he States, therefore, cannot afford to send he will be the richer because of what I has misinterpreted statements concern its ground troops into the field with out say and the people of our great State of ing the ADA which I made on the House moded equipment. The Army and Ma New York will be benefited by the re :floor, on Monday, July 21. Perhaps he rine Corps hopes to issue M-14 rifles and placement of propaganda with facts. has made this same mistake in evaluat the new lightweight M-60 machinegun First, the gentleman feels that the ing and supporting the program of the to troops in 1960. These infantrymen policies of greater spending and less ~DA. can have the rifles much sooner if the revenue, as proposed by ADA will bring Department of Defense would order a a speedy end to the recession into which speedup on the pilot-line production of the Republican administration has these weapons at the Springfield Armory. plunged this country. New Lightweight Rifles Needed for Our There is no doubt in my mind that Con The national center of this so-called Ground Troops gress will vote the money necessary in recession seems to be Detroit, where the the supplemental appropriation bill next economic dictates of Walter Reuther EXTENSION OF REMARKS January. prevail. Mr. Reuther, who wrote from Moscow, "Carry on the fight for a Soviet OF America," is one of the principal finan HON. EDWARD P. BOLAND Soviet Propaganda cial angels of ADA, as well as of the OF MASSACHUSETTS Democrat Party. His economic views, EXTENSION OF REMARKS IN THE HOUSE OF REPRESENTATIVES as put into practice in the center of un OF employment, can hardly be blamed on JVednesday, August 6, 1958 this administration. HON. JOHN V. BEAMER A,s for the ADA recommendations that Mr. BOLAND. Mr. Speaker, I would OF INDIANA like to take this opportunity to compli the Government slash its income and IN THE HOUSE OF REPRESENTATIVES spend more money, I can s·ay only that ment my colleague on the Appropria I have never heard of this policy restor tion Committee [Mr. SIKES] for his can Wednesday, August 6, 1958 ing economic stability in the home, in did speech pointing up why American Mr. BEAMER. Mr. Speaker, for some business, or anywhere else. Perhaps the ground troops in the Mid East are not time our office has been receiving propa gentleman can tell me of an instance carrying lightweight rifies of a type sup ganda from the U.S.S.R. Embassy. It where this formula was effective. plied to Arab Republic soldiers. The is quitE: different from informative ma ADA Board Member Reuther appar question of American lightweight rifie terial that comes from other embassies ently preaches this doctrine but does the production is one that needs airing, but we felt that freedom of speech and opposite when the shoe pinches his own and the gentleman from Florida has freedom of the press are two cardinal badly chewed foot. Recently, to meet the rendered a public service by spotlight principles in this country. For this effects of hard times within his United ing the reasons for the delay. reason, we made no particular comment Auto Workers Union, Reuther cut sala The Army on May 1, 1957, adopted a in our office and made an attempt to read ries, fired people, and did everything new lightweight rifie, the M-14, after this material as it came from that source. except apply his antirecession formula years of research and development and I now have received a letter from one of for government. testing. The M-14 was developed at the the newspapers in the Fifth Indiana Dis The gentleman also objected to my Springfield Armory in my Congressional trict advising me that they too have been remarks about ADA because many of its District. This new rifle had a competitor receiving the press releases from the So officials, such as Eleanor Roosevelt, David that had been produced in Belgium. viet Embassy. They complain bitterly at Dubinsky, and Robert Nathan-are, as The Belgian-type rifle is now in the the type of propaganda that this embassy he quaintly put it, "zealously devoted hands of Israeli troops and a similar rifle has been circulating and, furthermore, to the cause of democracy in this coun has been supplied to Arab Republic that they are permitted to pay only 3 try." troops. But, here in the United States, cents per piece of mailing matter which To this statement, I can answer only pilot line production for the American costs the postal department many times that their brand of democracy is far M-14 rifle is only beginning at the that much to handle. removed from that envisioned by the Springfield Armory. The newspaper editor in returning this framers of our Constitution. Otherwise, Mr. Speaker, before the Army adopted particular piece to me said that it cost I am sure, they would not be clamoring the M-14 as its standard shoulder him 8 cents to send it first class and the so constantly for change. weapon I had urged the Defense Depart Russian Embassy apparently was paying The gentleman denies that the ADA ment and this administration not to only 3 cents. finds Russian accomplishments greater overlook conventional weapons produc Thus, it seems that a subsidy is being than our own, but in the next breath says tion while concentrating on superweap given to those who would attempt to un _'\DA statements to this effect are but to ons. I was well aware of the fact that dermine us or who at least are not hesi call this Soviet threat to our attention. the Army had cut back on the production tating to be severely critical of our Presi The gentleman also denied that ADA of Garand M-1 rifles at the Springfield dent, our Congress, and our people in has recommended economic aid to Red Armory. The Army had a stockpile of these press releases. China and its admission to U. N. Garands and said it was still a good rifle. Does it not seem that this is going far To correct this erroneous impression, I had urged the Department of the Army beyond freedom of speech and freedom I refer him to the annual platforms of as early as 1953 to make a decision be of the press? They would not tolerate this self-professed anticommunistic or tween the American and Belgium rifles even this much propaganda coming out ganization. and to start production on the new of our embassy in Moscow, and I am For years the ADA has urged that Red weapon at the Springfield Armory imme wondering why it is necessary to permit China be recognized. Even as late as diately. Nevertheless, there was delay it in.our free land. - CIV--1038 16484 CONGRESSIONAL RECORD- HOUSE Augttst 6 Who Killed Cock Robin 1 the Senate's Labor Rackets Subcommit ily asseverate, Mr. UDALL cites Secretary tee. ·Yes;. even my District, Illinois Folsom's common touch, tenacity, and EXTENSION OF REMARKS Third, was represented by restaurant fairness in the following letter to the edi OF owners who testified. · tor of the Washington Post: When. rank-and-file labor members [From the Washington Post of August 8, HON. EMMET F. BYRNE .. want remedial legislation, based on need, 1958] OF I~LINOIS it is a sad day when delaying tactics SALUTE TO FOLSOM IN THE HOUSE OF REPRESENTATIVES are permitted to be the order of the· day. Secretary of Health, Education, and Wel I am, ·by background, sympathetic to fare Marion B . Folsom has gone into retire .Wednesday, August 6,1958 labor. My father was a member of or ment and perhaps it would not be inappro-· Mr. BYRNE of Illinois. ·I commend the ganized labor in Chicago in the days of priate for a -Democrat to have the ·last say Chicago Tribune's -phraseology, "Who Samuel Gompers. Since then, labor on his performance in the Eisenhower Killed Cock Robin?" in getting to the has risen to a position of dignity, re Cabinet. Unlike his predecessor, he b~lieved in the cause of the delay in considering labor spect, and great responsibility. How mission of his department, and his positive legislation in sufficient time to take some ever, the past few years, there have attitudes vouchsafed a constructive role for positive steps in this Congress. been certain unscrupulous leaders whose his office in formulating and presenting legis [From the Chicago Daily Tribune actions have made all labor the target lation· to Congress. of June 10, 1958] of severe criticism. As long as human He was cognizant that most worthwhile WHO KILLED COCK ROBIN? beings govern men, we will know the in-_ legislative objectives are achieved through justices, inequities, and disappointments the bipartisan approach. One of his win Senator JACK KENNEDY, giving a good ning qualities was that J;le gave attention to imitation of heartbreak, arose in the Senate the innocent suffer because of the un the particular task· at hand, and w.as quite to blubber that the Kennedy-Ives labor scrupulous activities of some of the in willing to let the political consequences of ''reform" bill was dead and that the Na dividuals holding positions of power and his acts come to public notice after office tional Association of Manufacturers had authority. This is life, but it does not hours and without hyperbole. Even those killed it. mean that we should not be constant who generally thought his goals were too This allegation caused Senator MuNDT, a in endeavoring to correct and ameliorate low (as with the school-aid bills) respected Repubilcan, to inquire since when Represent the tenacity and f·airness with which he ative SAM RAYBURN, Democratic Speaker of conditions, known to be detrimental to the majority. pursued them. . the House, had become an agent of the Na Secretary Folsom also had a _common tional Association of Manufacturers. Mr. The rank-and-file members of organ touch: At times he dropped in at the offices MUNDT observed that Mr. RAYBURN had kept ized labor are fearful for the future of of junior House Members (of bot~ parties) the bill bottled up for 41 days before sub the labor movement, · and so am I. to explain proposals he favored. If he was mitting it last Monday to the House Labor I have received a great number of let the quietest membe·r of the Eisenhower Cabi Committee. This long delay, added to the ters besieging me to urge Congress to net, it would be a pleasant irony if it turned time required by committee hearings, had out he was also one of its · most effective the effect of insuring that the House would act on labor legislation this session. Many communications are from mem advocates as well. not act on the bill before· Congress ad In my opinion, Secretary Folsom well de journs. bers of organized labor. served your accolade for a job well done. Republicans have the impression- that, It is lamentable that the most im STEWART L. UDALL, despite Senator KENNEDY's histrionics, the portant lawmaking body in the world Representative of Second ·District, Democrats are glad to see the last of the has not accomplished something in the Arizona. bill, and that burying it is part of a deal worked out by Democrats with union bosses labor area this session. We must have in return for support in the November legislative tools designed with accuracy Congre~sional elections. and precision if we are to protect the · Our own feeling is that Milton Lightner, future and safeguard personal security A Cultural Center for the Nation's Capital president of the National Association of of millions of loyal Americans in organ- Manufacturers, who replied to KENNEDY's . ized labor. EXTENSION OF REMARKS charge, was correct in appraising the bill as Both labor and management can work "woefully inadequate" and an example of OF "bad legislation." The bill pretended to shoulder to shoulder to meet the needs regulate internal corruption in unions, es of the future to guarantee America's HON. ED\VIN B. DOOLEY pecially in the handling of welfare funds. security. OF NEW YORK It did not strike at major union abuses, such If all of those in strategic positions IN THE HOUSE OF REPRESENTATIVES as the exercise of monopoly power, coercive of authority would say, we have thrown Wednesday, August 6,1958 boycotting, or racket picketing. off the coat of political considerations Little noticed in the bill were some provi and we will come forth with proposals Mr. DOOLEY. Mr. Speaker, I am sions drastically limiting freedom of speech based on justice and equality, there is enthusiastic in my support of the pro and action by employers. These required posed Cultural Center in Washington, reports by employers on attempts to "in no doubt in my mind that it could be fluence" or "affect" employees in their de done and would be. The result would D. C., as provided for in H. R. 13017. cision whether or not to join a union. The bring a new respect and confidence in The city of Washington is the focal provisions were sufficiently ambiguous so our labor movement and our Congress. point of world interest. It is a meeting that voluntary employer action to confer place literally of hundreds of thousands wage increases, fringe benefits, recreation of tourists. Consequently, the need for opportunities, and the like could be inter such a center for the performing arts is preted as attempts to influence employees by obvious. making them so happy they would not want Salute to Folsom to join a union. Witness after witness of unquestioned The principal objection to the bill, how EXTENSION OF REMARKS integrity, including distinguished Sen ever, was that it promoted the idea that OF ators, architects, a newspaper editor, Congress had "dealt" with union abuses and interested citizens, have testified when only the surface had been scratched. HON. STUYVESANT WAINWRIGHT with impressive unanimity that there is Passage of this legislation would have given OF NEW YORK a great demand for this worthy enter Congress an excuse for lying back and saying IN THE HOUSE OF REPRESENTATIVES prise. that no further consideration need be given I support the measure and hope for :ror an indefinite period to union problems. Wednesday, August 6, 1958 On this basis, we cannot share in Senator favorable consideration from this distin KENNEDY'S grief that the bill is dead. And, Mr. WAINWRIGHT. Mr. Speaker, of guished body. The Cultural Center if it is dead, it is his own party which killed the many outstanding tributes to there which will rise if the Fulbright-Thomp it. The voters ought to be capable of the cently retired Secretary of Health, Edu sen bill is enacted into law will add im simple addition of these facts to arrive at cation, and Welfare Marion B. Folsom, measurably to the well-being of the the conclusion that the Democrats again one of the most inspiring has been made people of our Nation. It will be an in have played matters the way the union not by a fellow Republican, but by my spiration and a beneficent motivating bosses wanted them played. .very good friend on the other side of force for the youth of our country. It Chicago, my hometown, has had a the aisle, the Honorable STEWART L. will be a symbol of our dynamic democ major role in hearings conducted by UDALL. In a statement to which I heart- racy, a center for the peaceful arts, and 1958- CONGRESSIONAL RECORD- HOUSE 16485 a lasting memorial to the deep sense of supported by the taxpayers. Most of the· nary and reasonable expenses"· deductible appreciation which the American people advertisements indicate in some way the ad-· for tax purposes. vantage of being served by an independent You describe the advertisements of the have for the finer things of life. power company. If this is propaganda, it electric companies advertising program certainly represents an attitude acceptable (ECAP) as being designed to "promote the to some millions of Americans. wider use of electric power and occasionally · Nevertheless, the companies participating indicate a preference for investor-owned util Internal Revenue Service Ruling on Pri in this advertising campaign are being in ity companies as against Government-owned formed that they may not deduct its cost plants supported by the taxpayers." Actually vate Power Company Advertising from their taxable incomes. As Senator the opposite is indicated by any study of this ESTES KEFAUVER pUt it, "They can continue program: the advertisements "occasionally" EXTENSION OF REMARKS to propagandize as much as they want in promote the wider use of electricity. My OF their advertisements. • • • They can no· authority for this statement is the Saturday longer charge the taxpayers and the rate Evening Post, which last year issued a pro HON. ESTES KEFAUVER payers for their own brainwashing." motion booklet reprinting some 169 ECAP OF TENNESSEE Of course, this does not mean that the tax advertisements. payers will be relieved of the cost of being The introduction to the Saturd.ay Evening IN THE SENATE OF THE UNITED STATES brainwashed by TVA and public power gen Post booklet contained this explanation of Wednesday, August 6, 1958 erally. Inasmuch as public power pays little these advertisements: "By the end of 1956, in taxes and indeed is supported out of taxes, the Post had carried 169 ECAP advertise Mr. KEFAUVER. Mr. President, in a deductibility is a small matter. The net of ments-more than any other major publica recent issue of the Saturday Evening the IRS's ruling is that the private-utility tion. They are reprinted here to show how Post there was published an editorial at industry, already forced to meet tax favori one industry, advertising its cause consist tacking the ruling of the Internal Reve tism and vast public appropriations for pub ently and persistently, has been able to help nue Service that public utilities could lic power, must jump over another hurdle. shift the great weight of public opinion. not deduct as business expenses the cost Supposing that all the advertisements in • • • ECAP advertising is designed to win the series dealt with the public-power issue, public support for the independent electric of propaganda against public power. it is difficult to equate them with an effort light and power companies. Most people 15 The Saturday Evening Post editorial is to influence legislation, or to lobby, or, if years ago favored Federal public power. To so full of errors and so lacking in under propaganda is the charge, to do more than day, the balance has swung in favor of the standing of the facts that I felt it neces defend what has long been considered the electric comuanies. sary to reply to the editor. normal way for Americans to do business. "In the August 19, 1950, issue, the Post What is perhaps most shocking about Surely if an electric power company may warned editorially, 'we can't salvage free the editorial is the revelation that the engage in propaganda against competitors enterprise without a battle.' The adver utility advertisers and the Post itself who sell gas, or coal, or atomic energy, it tisements which follow have been used in ought not to be penalized for defending itself. the battle along with the editorial comment have worked as a team to oppose public against competition which threatens its abil to help turn the tide of public opinion." power. The Post argues that the ruling ity to stay in business at all. Following the reprints of the advertise of the Internal Revenue Service imposes This editorial will arouse the ire of public ments, the Saturday Evening Post booklet censorship on the utilities, an obvious power advocates, who will be quick to point adds, "This continuing campaign by the misstatement of fact, but says nothing out that the Saturday Evening Post has a Electric Light and Power Companies is clas about its own responsibility to bring the financial interest in the matter. This is sic proof that advertising can mold public facts and various sides of an issue to the true, although the amount received by the opinion as well as increase the sale of public's attention. Post from these advertisements constitutes products and services." much too small an interest to justify court Thus, the Post itself defines the purpose I ask unanimous consent that the edi ing the lambasting we shall probably get for of these advertisements in such terms as "to torial and my letter of reply to the intervening in the controversy. help shift the great weight of public opin Saturday Evening Post editorial be But the principle involved requires a frank ion"; "designed to win public support for printed in the RECORD. statement of what such rulings can mean to the independent electric light and power There being no objection, the editorial freedom, not merely for public-utility ad companies"; "turn the tide of public opin and letter were ordered to be printed in vertising, or even advertising in general, ion"; and "mold public opinion". Nowhere the REcORD, as follows: but for freedom to express any views which did the Post mention your observation that tax bureaucrats-perhaps stimulated by po the ads "promote the wider use of electric [From the Saturday Evening Post of July 21, litical demagogs--decide to penalize. power.'' 1958] This is ·the crux of the situatio·n. We have Despite the disclaimer in your editorial SHOULD THE POWER TO TAX INCLUDE THE tax authorities, who are assumed to be rais about the amount of advertising involved, I RIGHT TO CENSOR ADVERTISING? ing money for public needs, undertaking to was interested to note that the Post had Few taxpayers know the extent of the au dictate to individuals and corporations how carried more of these ads than any other thority that has been conferred on the In they shall carry on their businesses. publication. I also was shocked to find that ternal Revenue Service and even less of the Nor is this threat confined to public-utility "The advertisements • • • have been used added authority which that Bureau has companies. other types of business live in in the battle along with the editorial com assumed for itself by means of administrative jeopardy from the same uk·ase, including one ment.'' I find this teaming of editorial rulings and regulations which Congress prob company which undertook to explain its side commentary and advertising alarming, if not ably never thought of. of a threatened strike by means of news scandalous, whatever the "battle.'' For example, it is hard to believe that the paper advertisements. With the hope that this wedding of edi Nation's lawmakers meant to give tax col Like many other aspects of the income-tax torials and advertising does not bar discus lectors the right to decide that American law, this effort to censor free expression calls sion of issues, I want to take exception to business or industry should be penalized for for clarification by Congress. If the people several points in the editorial. stating its case and defending its right to think American corporations and individuals I vigorously protest the use of the word exist, in the face of Government-sponsored require governmental supervision of the way "censor" in connection with the Internal competition, by means of paid advertise they state their case in open advertisements, Revenue Service ruling relating to "propa ments. But that is what the tax authorities the way to accomplish that desirous objec ganda" advertising. As you quoted from my are doing, acting under a new interpretation tive is to pass a law-not to pass the buck to public statement, the companies "can con of one of their own regulations, which de the Internal Revenue Service. tinue to propagandize as much as they want clares that money spent on advertising for in their advertisement • • •. They can no lobbying purposes, for the promotion or de longer charge the taxpayers and the rate feat of legislation or for the development AUGUST 1, 1958. payers for their own brainwashing." It or exploitation of propaganda cannot be con Mr. BEN HIBBS, seems to me that your editorial ignores the sidered ordinary and reasonable expenses Editor, the Saturday Evening Post, very great distinction between censoring deductible for tax purposes. Philadelphia, Pa. saying "You can't do that"-and simply The victims of the most recent interpreta DEAR MR. HIBBS: Your editorial Should the saying that you can't deduct it as a business tion of this ruling are a group of public Power To Tax Include the Right To Censor expense and therefore a deduction from tax utility companies which call themselves Advertising? contains several misstatements able income. America's Independent Light & Power Cos. as well as a rather fundamental misunder You also choose to ignore completely the These companies have for many years standing of the situation upon which you important distinction between competitive sponsored institutional advertisements have chosen to comment. private enterprises--such as the Curtis Pub mostly in magazines, including the Saturday In the first place, the editorial seriously lishing Co.-and the privately owned electric Evening Post--which promote the wider use misrepresents the purpose and content of power companies which are public ut111ties. of electric power and occasionally indicate a the series of electric-power-company adver Utilities are generally held to be entitled to preference for investor-owned util1ty com tisements which the Internal Revenue Serv charge their ratepayers for their costs plus panies-as against Government-owned plants ice has found not to· be chargeable as "ordi- what is referred to as a reasonable rate o:f 16486 CONGRESSIONAL RECORD-SENATE August 7 return upon their investment. When these record of the Tennessee Valley Authority, While I agree with the thesis of your edl· costs include advertising designed in the which, incidentally, is the largest taxpayer torial that Congress must continuously re Posts' phrase, to "mold public opinion," the in my State of Tennessee. TVA pays State view the application of our tax laws, you do taxpayers and ratepayers are, indeed, pay and local taxes but it does not pay Federal not appear to be cognizant of the great ing for "their own brainwashing," without income taxes because it is owned by the amount of work being done in this field by having the democratic right to determine Government, by the people of the Nation, the the Members of Congress and particularly whether they wish to do so or not. taxpayers. But before we accept the con the members of the House of Representa To the extent that the Internal Revenue tention of the power companies' advertise tives Committee on Ways and Means and the Service ruling encourages regulatory bodies ments, or even your editorial, concerning Senate Finance Committee. to disallow propaganda advertising in util such matters as tax favoritism, let us look Accepting the premise that advertising ity rate basis, it will result in a desirable at the facts. should be regarded as a necessary business reform. · In the first 23 years of operations, TVA's expense, deductible for tax purposes, we do It seems to me that the issue becomes one power system revenues were sufficient to violence to our premise if we permit all of subsidy rather than censorship. No one cover all of its operating expenses, depre advertising to be deducted and do not pro questions the right of the power companies ciation, the cost of money to the Govern vide against abuses. to advertise their views. ment and $41 million in State and local It seems to me that mediums such as the Your statement that the ruling "does not taxes and earned an additional $183 million Saturday Evening Post, advertising agencies mean that the taxpayers will be relieved of for the Government. A private power com and advertisers all have an important stake the cost of being brainwashed by TVA and pany in this same period would have paid the in protesting abuses which jeopardize the public power generally" is not only unsub Government only $140 million in taxes. prestige and standards of advertising. The stantiated but, so far as I am aware, com Thus, TVA's power system, while selling elec Saturday Evening Post promotion booklet pletely inaccurate. TVA and public power tricity at rates among the lowest in the referred to above lists seven rules for "How to generally do not conduct advertising cam Nation, made for the taxpayers $43 million, be a successful advertiser," including "5. Ad paigns denouncing the privately owned elec over and above what a private power com vertise truthfully and in good taste." In my tric companies. Most of the material issued pany would have paid in Federal taxes. opinion, the ECAP ads can be shown to be by TVA and other public power agencies Compare this record, if you will, with a neither truthful nor in good taste. which I have seen has been in the nature recent report of the Electric Consumers In The Saturday Evening Post's description of reporting on the conduct of public busi formation Committee which shows that the of the design and intent of the ECAP adver nesses, a function which I believe we can private companies participating in the ECAP tisements, as stated in the promotion book program, will receive a subsidy over a 33 Ya agree is essential. let, confirms my belief that the ruling of the year period of more than $3 billion as a re Internal Revenue Service in this matter was In connection with references in your edi sult of the use of rapid amortization and entirely proper and that the provisions of torial to Government-owned plants sup liberalized depreciation provisions of the In the tax law under which the ruling was made ported by the taxpayer.s, public power pays ternal Revenue Code (sec. 168 and similar are just. little in taxes and indeed is supported out of provisions of previous laws and sec. 167, In Sincerely, · taxes, and tax favoritism, let me cite the ternal Revenue Act of 1954). ESTES KEFAUVER,
Journal of the proceedings of Wednes Mr. BoscH were appointed managers on SENATE day, August 6, 1958, was dispensed with. the part of the House at the conference. THURSDAY, AuGUST 7, 1958 The message also announced that the House had passed a bill