November 6, 1975 EXTENSIONS OF REMARKS 35459

EXTENSIONS OF REMARKS GEN. RICHARD MONTGOMERY­ Wolfe Tone, and Robert Emmet, "the darling vocacy Agency, but we have ended up EARLY AMERICAN PATRIOT SA­ of Erin." treating the consumer as a commodity. In the French and Indian war, Richard LUTED BY BRONX BICENTENNIAL Montgomery was sent with the British reg­ We look at the particulars and have lost COMMITTEE ular forces to Canada and saw action at perspective. I believe that a broad view Louisburg, Ticonderoga, and Montreal. The of the Consumer Protection Act would success of the British forces in the Seven lead us to realize that it- falls short of HON. MARIO BIAGGI Years War marked the birth of the British its promise, that it is an inadequate re­ OF NEW YORK Empire. The Imperial Era began. Sadly sponse to an understated problem, that IN THE HOUSE OF REPRESENTATIVES enough it sa'V{ also, as happens with empires, it is yesterday's thinking nostalgically a wearing away of the rights of citizens. applied oo a much changed world. Wednesday, November 5, 1975 In the dozen yea.rs between victory over Mr. BIAGGI. Mr. Speaker, I am pleased France in 1763 and the battle of Lexington As with much that Congress has done to advise my colleagues that on Septem­ the American revolution was developed. The over the past four decades, it states a ber 29, the Bronx-Irish American Bicen­ England of the Magna Carta and the Bill of laudable purpose and founders on failure Rights seemed to have disappeared. English­ to grapple with the realities of today's tennial Committee paid tribute to men at home had little opportunity for po­ economy. It promises, but will not de­ one of the earliest Irish-American litical fulfillment. Irishmen, though tech­ liver. And that is the fundamental flaw patriots, Gen. Richard Montgomery. nically citizens of Britain, were oppressed and danger in this bill. During the ceremony a stirring speech politically and religiously, and their Ameri­ Despite the persuasive arguments of was delivered by Father John F. X. Smith can cousins unlike the rest of the family In the old country refused to tolerate this many of my friends in Congress, I can­ of St. Peter's Church. I would like to not support the bill. Yet my opposition insert his remarks inoo the CONGRES­ situation. The clarion cry of "no taxation without stems not from arguments so far raised SIONAL RECORD for the benefit of my representation" was the cry for political ma­ against the bill, but from concern that we colleagues. turity and inevitably independence. in Congress who support consumer power I wish oo salute New York City's and Edmund Burke in ringing tones railed are fooling ourselves and the American especially my home district of the against the Stamp Act. And his fellow Dub­ public, and that we must guard against Bronx's Bicentennial Committee. There liner, Richard Montgomery, in 1772 sold his this. If any issue now truly troubles this are many dedicated individuals com­ commission and left Ireland. In 1773, Mont­ Nation it is the growing feeling that large mitted to insuring that the contributions gomery bought a sixty-seven acre farm in Kingsbridge, once part of the estate of the institutions-big business, big labor, big of New Yorkers are recognized during Dutch patrons, the Bronks. He married Janet, government-manipulate and control, our 200th birthday celebration. One of daughter of Robert R. Livingston. but that things just are not working. The the most exemplary of these individuals In 1775, in full sympathy with the colonial economy does not operate as a competi­ is Councilwoman Aileen Ryan, who serves cause Montgomery was elected a member of tive free-market economy should. The as the secretary of the New York City the New York Provincial Congress. In June Government cannot deliver on its com­ Bicentennial Corporation as well as 1775, he was appointed a Continental briga­ mitments to housing, transportation, honorary chairperson of the Bronx Irish­ dier-general and received his commission jobs. American Bicentennial Committee. I personally from George Washington. Ap­ pointed second-in-command to General It is time we got serious. commend Mrs. Ryan for her work and Philip Schuyler in the expedition against The proposal for a consumer advo­ know through her efforts that the Bicen­ Canada, he took full command on Schuyler's cate is not serious. It is a symbolic re­ tennial celebration will be one which all illness and captured Montreal. Then he sponse which will distract from the more New Yorkers will remember. joined Benedict Arnold, and on December 31, serious work which lies ahead. It will be­ Father Smith's speech on General 1775, he was killed In the ill-fated American come one more reason for not confront­ Montgomery follows: assault on Quebec. Although buried in Que­ ing the major problem of a rigidly insti­ GENERAL RICHARD MONTGOMERY bec, his body was later disinterred and trans­ ferred to a vault in St. Paul's Chapel on lower tutionalized economy in which economic (By Father John F. X. Smith, St. Peter's at Broadway. actors can insulate themselves from com­ Barclay Street, delivered on the Steps of Brigadier General Richard Montgomery petitive pressures on prices and quality. St. Paul's Chapel) died young, only 37. But he was a champion Moreover, I fear that it will do so by In the "Ballad of the White Horse,'' a of freedom. He had sought justice under the following the road of so many well-in­ classic Christian poem, Gilbert Keith Ches­ English law for his fellow Irishmen and even tentioned bureaucracies: First, there will terton exclaims: the English who had been overlooked in the be the excitement and drive of starting a ''For the great Gaels of Ireland dawn of imperial Britain. new experiment, followed by a realization are the men that God made mad, But it was In the American. mllleu tha.t freedom and toleration would be realized. that the job is bigger than anticipated For all their wars are merry It was the American who would stand as a and pressures from Mr. Nader to get on and all their songs are sad." man and proclaim his political independence with the job, then appeals for more staff And so today we have come together to In the true tradition of Runnymede. The and funds since the agency is failing honor a great Irishman, a warrior who in­ New World would be the guide to the Old. primarily because it is ooo anemic, re­ tertwined in epic proportions mirth and Politically speaking we would re-phrase sulting finally in a vast data-collecting sadness. Scripture and say, "A child shall lead them.'' machine which avidly avoids the funda­ Richard Montgomery was born In 1738 in Richard Montgomery, the Irishman and mental structural problems in our econ­ the town of Swords, County Dublin, Ireland. warrior, in his ultimate sacrifice earned the omy which are at the root of consumer He was the third son of a member of the new title--America.n hero and patriot. problems. British parliament. As a youth, he was ed­ As an Irishman he was close to patriotism ucated at Saint Andrew and in Dublin at the because he was close to the earth, and one The American consumer does have famed Trinity College. He was a contempo­ who is close to the earth ls close to heaven. problems, and our regulaoory agencies rary of the great Dubllner, Edmund Burke, have helped create them. The story of who as head of the Whig Party in Parliament how liberal reform attempts have been was so grand an advocate of the ca.use of the captured by the interests they are in­ American colonists. These two Dubllners, CONSUMER POWER: IS ADVOCACY tended oo regulate is ooo well known oo Montgomery and Burke, Irishmen to the ENOUGH? need retelling. core, both bitterly criticized English admin­ istration In Ireland. Both were Protestant, It is true that the individual con­ and their Christian spirit made them harshly HON. DON BONKER sumer, in most cases, is poorly repre­ critical of the galling discriminations exacted OF WASlilNGTON sented before regulatory bodies. Simply in the name of the crown against the Cath­ stated, he is shut out from having a olics of Ireland. While the Irish race has IN THE HOUSE OF REPRESENTATIVES voice before the Government agency always remained loyal to the Pope, it is Wednesday, November 5, 1975 ironic that among its foremost champions for that was set up to protect and assist him. religious freedom a.re Protestant Irishmen Mr. BONKER. Mr. Speaker, we are Congress apparently recognizes this such a.s Richard Montgomery, Edmund Burke, debating today a proposed Consumer Ad- problem and is attempting oo rectify the 35460 EXTENSIONS OF REMARKS November 6, 1975 situation by giving consumers a voice in MAJORITY LEADER THOMAS P. All interviewing on the study took place in the daily regulatory activities. The ques­ O'NEILL, JR., SAYS PRESIDENT HAS the homes of a random, area-stratified prob­ tion is, will it work? MISREAD MOOD OF THE PEOPLE ab111ty sample of the adult population na­ The proposed Agency for Consumer ON NEW YORK tionwide between November 2 and 4. In order to expedite the processing of the results, a Advocacy, in my opinion, has no clearly special Harris alert system was employed defined purpose or force in behalf of con­ HON. THOMAS P. O'NEILL, JR. which made it possible, to complete this sur­ sumers. All it can do is receive, evaluate, vey in six days elapsed time. OF MASSACHUSETTS develop and act on complaints from con­ THE FINDINGS IN THE HOUSE OF REPRESENTATIVES sumers by transmitting them to the ap­ A Federal Guarantee to New York City vs_ propriate Federal or non-Federal source, Thursday, November 6, 1975 Allowing New York City To Default and then monitor the response to insure Mr. O'NEILL. Mr. Speaker, President By a massive 69-18% margin, the American. some action was taken. That represents Ford has badly misread the mood of the people favor "the federal government guar­ indirect action, at best. The only re­ people on the New York :financial crisis. anteeing loans to New York City if the city maining direction given the ACP Admin­ A new poll by Louis Harris-completed balances its budget and such a plan would istrator is ambiguous. He can intervene not cost the taxpayers any actual money" in an agency's regulatory process when only yesterday morning-shows that by than for "New York City to default and go 69 percent to 18 percent the people of this bankrupt". he determines that such a proceeding Nation are in favor of helping New York "may substantially affect the interest of In two other independent and separate before it collapses into bankruptcy. measures of much the sa.m.e question, a 65- consumers." That is outrageously vague. That margin includes solid majorities 22 % majority expressed support for a "fed­ It is left to the Administrator, in other in all regions of the country-in cities, eral government guarantee of loans that. words, to determine possible action on suburbs, and even in rural areas where would be made by banks and other lenders to behalf of the consumer. He can act, or the support runs 67 percent. Sixty-three New York City". A 68-22% majority would he cannot act. And Congress is left help­ favor "the federal goverment guaranteeing percent of the political conservatives and New York City's debt, which is over 11 bil­ less with no more control over these ac­ 62 percent of the Republicans favor such tions than it has over any other Federal lion dollars, if the city balances its budget. assistance. and such a plan would not cost the taxpayers Is agency. this reform? The people do not want New York to any actual money". This majority rises to 71- There is a corollary question. The get off scott free. They want the city to 19% when it was suggested that it was pos­ ACP, assuming it does act in the in~r­ tighten up its administration and l'eform sible for a default by New York to cause "the ests of the consumer, must choose which its :finances. But they do not want it to cost of financing state, county, and city gov­ consumer complaints to accept. It cannot go down the drain, dragging down every­ ernment all over the country to go up 10 % .. possibly address all complaints with causing state and local taxes to rise". one else in the country who happens to By 50-37%, the American public disagrees equal effort. Some would be taken up, own New York bonds. I with President Ford's announced intention others would be excluded. fear that only From the Federal standpoint, it would of vetoing any legislation providing a guar­ the loudest, best organized and :financed cost far more to wait until New York col­ antee from the federal government to New consumers would net the results, leaving lapses and then spend Federal money to York City. Mr. Ford's further suggestion of the plight of the ordinary consumer just pick up the pieces-to provide police and amending the federal bankruptcy laws to about the same. fire protection, garbage collection and "allow New York City to go bankrupt under The consumer organizations with other essential services. The legislation a plan whereby a federal court would keep es­ which we are all so familiar would still that Congress is drafting would provide sential services in New York City going., have to ride herd on the back of the would supervise the financial running of the loan guarantees only-no cash to the city, and determine how those to whom the Federal Government to get any action. city. We are going to get out a tough bill city owes money would be pa.id back" re­ Only this time, it would be on the back to make New York straighten up its fi­ ceives no better than a flatfooted 40-40% of the Agency for Consumer Protection. nances and fly right. stand-off 1n public support. Thus, we are back where we started. It makes a lot better sense to prevent Observation: Ta.ken as a whole, there is Proponents of the bill have skillfully the calamity than to try to put the city little doubt from this in-depth and in-per­ found the reason why the earlier liberal back together after the fall. The Presi­ son survey of the entire adult population of attempts at consumer protection have dent can try to avoid his responsibility in the nation that the American . people are failed: regulatory agencies are inherently solidly in support of fed.era.I assistance to this matter if he wants, but the Congress New York City. The approach of guarantee­ flawed by the need to balance interests, will not. ing future New York City loans by the fed­ but have never heard a consistent con­ I include the full text of the Hams sur­ eral government is viewed by the public as sumer voice. Thus, H.R. 7575 is to provide vey for my colleagues consideration: a much more preferable way to handling the the balance. It all reminds me of the A SPECIAL IN-DEPTH SURVEY OF THE AMERICAN financial crisis of that city than President; ancient Earth-centered view of the uni­ PuBLIC ON THE SUBJECT OF FEDERAL ASSIST­ Ford's suggestion that the city be allowed verse: As more reasons were found why ANCE TO NEW YORK CITY to default and go bankrupt. Even Mr. Ford's it was an inadequate theory, more modi­ call for a.mending the federal bankruptcy ANALYSIS law, which has not met with substantial op­ fications and qualifications were made A Word About the SU1'vey position in Congress, falls to achieve more until the whole was so complex as to be This survey, taken among a prob.ab111ty than 40 % backing. The threat of a veto by laughably unable to support its own cross section of 1,549 adults nationwide who the President clearly met a negative response weight. It was of course replaced by a were interviewed in person between Novem­ from the public. new theory of beautiful simplicity, but ber 2 and November 4, provides an accurate In the aggregate, it ls now apparent that not without extreme resistance from basis on which to assess public reaction to the American people sharply disagree with those wedded to the old. President Ford's speech at the National Press the President in his approach to New York I oppose this bill not because it is un­ Club in late October, in which he announced City's problems, and it is significant that that he would veto any blll passed by Con­ bett.er than 2 to 1 majorities of the public necessary, rather because something gress which would provide a federal guarantee now favor federal action guaranteeing fur­ more fundamental is necessary. And we to New York's debt and 1n which he advocated ther borrowing by New York City to bring it­ are not going to eet anything more fun­ passage of an amendment to the bankruptcy self out of its financial morass. damental as long as we are wedded to law which would make it more feasible for What New York City Must Do to Deserve patching up every flaw that shows up in cities such as New York to default. The sur­ Such Federal Support our regulatory process. How much con­ vey also probes in depth the extent to which Substantial majorities of the American sumer power can we truthfully expect in the public feels New York City and other cities are in financial trouble, what the public people a.~e willing to give a federal guarantee the fact of the sheer scale of the major thinks are the causes of the City's current to New York City, only under tough anct actors in our economy? troubles, a whole roster of reforms which stiff terms. Here are the specific reforms H.R. 7575 is an honest attempt to help have been suggested for New York City to which majorities of the public felt were consumers. In view of its many distin­ make, and the possible consequences of a "highly important" for New York City to in­ guished sponsors in both the Senate and default by New York City. stitute "if it ls going to deserve to be helped Perhaps the most important part of the out of its troubles by the · federal govern­ House, and the efforts made to refine it ment": since it was first introduced in 1970. I survey deals with the central issues of wish that I could in good conscience sup­ whether or not Congress should pass a blll By 90-7%, a thumping majority think it guaranteeing New York City's debt, as well ls "highly important" for the "city to b& port it. But the consumer wants honest as a trade oft' of this action by Congress vs. forced to balance its budget, not to spend reform and I will support, in the future, allowing New York City to default and go more money than lt takes In." legislation which meets this goal. bankrupt. By 77-11%, a majority thinks it "highly November 6, 1975 EXTENSIONS OF REMARKS 35461 important" that the city "trim non-produc­ ent that the American people see widespread A substantial 74% of the public feels that tive employees off the payroll." ramifications in a default by New York City, "many cities are in trouble because of the By 73-13%, a majority feels it "highly not the least of which is an anticipated rise recession and inflation, and New York City important" that "a city administrator with ln borrowing rates for other cities, counties, is Just the first of many to come close to authority be put in to make sure New York and states, which could mean higher local bankruptcy." City government carries out the necessary and state taxes for people outside New York A lopsided 82-10% of the public believes reforms." City. that "as the financial center of America, the By 68-15%, a majority believe it "highly HOW NEW YORK CITY GOT INTO ITS CURRENT center of communications and publishing, important" that "tough productivity pro­ MESS the headquarters city of major companies, grams for city employees" be instituted. The American people have firm views about the center of art and culture, the home of By 62--17 % , a majority views as "highly ·the United Nations, New York City is an Just why and how New York City now finds important part of America to keep going." important" the creation of a "special super­ Itself on the verge of bankruptcy: visory board of federal, state, and city of­ A significant 70-20% majority feels that By 82-8%, a majority believes that "New "New York City and other cities are impor­ ficials to monitor what New York City does." York City has been at fault by not living By 53-22%, a majority also think it "highly within it's means, spending more money tant business and cultural centers and must important" that New York City "make its be kept from going bankrupt." This major­ bondholders wait two to three years before than it takes in." ity has risen from 65-12 % who felt the same A 71-4% majority believes that "there ls way in August. receiving their money from their bonds, al­ too much graft and payroll padding in New though they would receive interest pay­ York City government." A 67-21 % majority feels that "it is impor­ ments over that period." By 67-9 % , a majority also feels that "the tant to preserve New York City as the most By 52-17%, a majority feel it "highly im­ unions of city employees in New York City important city of the world, where much of portant" that the city "renegotiate the pen­ have become so powerful they have obtained the world's business is conducted and some sions city employees receive so that they excessive settlements on wages and benefits." of the most important international deci­ would have to work 30 years instead of 20 By 66-12%, a majority believes that "wt.th sions are made." yea.rs to retire on half pay." about 300,000 city employees, New York City A 63-25 % majority believes that "it is By 52-23 % , a majority feels it "highly im­ is a bureaucracy out of control." This has important to have big cities such as New portant" that "the state of New York raise increased from a 61-13% majority who felt York, which attract the most talented and the state sales tax one cent to finance half the same in August. capable people who can work closely to­ the city's deficit." By 58-27 % , a. majority thinks that "by let­ gether for the well-being of the country." However, no more than 29% of the Ameri­ ting policemen, firemen, sanita,tion men, and A 61-22% majority holds the view that can people feel it "highly important" for "the teachers retire on half pay after 20 years "to collect garbage for 8 million people, to city to end rent control, which has reduced service, New York City has been far too gen­ provide adequate fire and police protection, its income from real estate taxes." erous on pensions." to educate over one million children, it is Observation: It is obvious that the Ameri­ By 57-18%, a majority believes that "New necessary to have the second biggest govern­ can people want stiff terms put upon New ment in the world." York City in order to have the city reform York City has to spend too much on welfare its ways of management and to put its house because too many poor people have gone to However, by 28-20%, with a high 52% in order. Most deeply felt are the provisions live there because they think welfare in New who simply do not know, a plurality does not that the city balance its budget, cut dead York is higher than elsewhere." agree that "New York City has not received wood off its payroll, institute a tough pro­ By a much smaller and a narrow 41-40% its fair share back from the taxes it pays ductivity program, and install a City Ad· plura.Uty, the public tends to agree with the to the federal government." ministrator who would make certain that claim that "New York City is the center of Observation: Clearly, New York City for reforms were carried out. much of what's rotten and immoral in all of its wayward management vagaries, is THE CONSEQUENCES OF DEFAULT America." It should be noted, however, that still regarded as a critically important part a 53-32% majority rejects the proposition of America, of international and national im­ The American people do not agree with that "New York City has been a rip-off city portance, a center of business, finance, com­ President Ford's assessment that a default for a. so long it ought to be allowed to default munications, culture, and a central working by New York City would not have deleteri­ and thereby taught a. lesson." place for "the most talented and capable ous effects on a much wider front. A sub­ people" in the country. As such, the public stantial 81 % feel it ls likely that "many in­ Observation: It is apparent that the Amer­ ican people feel that New York City has been feels it important to preserve New York City dividual bondholders who purchased New in all of its positive attributes. York City bonds in good faith could have subjected to mis~a.nagement in the running of its financial affairs, with spending going their life savings wiped out." A 63 % ma­ THE WIDESPREAD BASE OF SUPPORT FOR ASSIST­ jority think it "likely" that "banks a.round far beyond its means, with swollen payrolls, ANCE TO NEW YORK CITY the country who are heavy holders of New over-generous union settlements, and over­ Backing for federal aid to New York City York City bonds could go out of business." loading of its welfare rolls. At the same time, is not confined to cities, people in the North­ A 77% majority feels it "likely" that default there does not appea.r to be any substa.ntlal east, or any single, particular segment of the would mean "the risk of borrowing for al­ "get New York City" attitude prevalent in population. Instead, it is widespread most all other cities, counties, and states the country. To the contrary, the thrust of throughout the United States. This is no­ could go up a lot, making it necessary to the feeling in the country is that New York where more evident than in the results of raise taxes." A 64% majority also thinks it City must mend its ways, but it also must be this key question: helped. "'likely" that "a New York City default could "All in all, do you favor the federal gov­ trigger a deeper recession, or even a depres­ THE IMPORTANCE OF NEW YORK CITY ernment guaranteeing loans to New York sion in the country." and a 65% majority While it is obvious that the American peo­ City, if the city balances its budget and believes it ''likely" that "confidence in fi­ ple believe that New York City has been s1 1ch a plan would not cost the taxpayers any nancing local, county, and state governments profligate in its management practices, none­ actual money, or do you think it is better would be undermined." theless the public also sees much about New for New York City to default and go bank­ Observation: By any measure, it is appar- York well worth saving: rupt?"

FEDERAL GUARANTEE TO NEW YORK CITY OR LET NEW YORK CITY GO BANKRUPT? [In percent)

Federal Let go Federal Let go guarantee bankrupt Not sure guarantee bankrupt Not sur&

Nationwide ______69 18 13 By afrto 29------82 10 8 By region: 30 to 49 ______-----______69 21 10 East______------___ ------______50 and over______Midwest______• ______._ -- 76 14 10 59 22 19 South ______• ______72 16 12 By political philosophy: 63 20 17 Conservative ______---- ____ ------______63 25 12 Middle-of-road ______------West______---_- • ------63 25 12 LiberaL ______71 16 13 By size of place: 81 11 8 Cities ______• ______77 14 9 By political party: Suburbs ______Republican ______• ______------______--______63 25 12 Democrat______62 24 14 23 9 74 14 12 Towns __ ------__ ----- • ------68 I ndependenL ______Rural______._. -----• ------67 19 14 68 20 12 35462 EXTENSIONS OF REMARKS November 6, 1975 Observation: It is apparent from these re­ York State sources. However, in the prepara­ the study must be borne by the Harris or­ sults that a solid majority of a.11 regions, tion of the questionnaire, in the execution ganization solely. sizes of place, ages, polltica.l philosophies, of the study, in the writing of this analysis, Attached is a copy of the questionnaire and political party members favor a federal only Louis Harris a.nd key members of his asked of the cross-section of the public, with guarantee to a default as the solution to staff prepared the questionnaire, conducted the over-all results for ea.ch attitudinal ques­ the field work, did the computer work, and tion filled in. Copies of the complete com­ New York City's problems. the analysis. In other words, the Harris staff puter print-outs of the study a.re available A FINAL NOTE was given free a.nd unrestricted freedom to in the headquarters of Louis Harris and As­ This study was conducted by Louts Harris prepare this study and to conduct it a.nd to sociates, Inc., 1270 Avenue of the Americas, a.nd Associates, Inc. a.nd was pa.id for by New analyze it. Therefore, all responsibility for New York, New York 10020.

la. How serious do you feel the financial crisis facing cities in this country is-very serious, only somewhat serious, or not serious at all7 Agree Disagree Not sure Very serious _. ______-----_------(12) ~t~ 13. New York City has to spend too much on welfare 2~iys!~i~i:~t~tt~~i~~::======4-3 because too many poor people have gone to live Not sure •...• __ ._. ____ •• __ • __ •• _._ •• _. __ •••••• __ •• __ •••• ----. ___ ._. ___ • 4-4 there because they think welfare in New York is higher than elsewhere ______lb. How important do you feel it is for the federal government to help the cities of the country (32) 57-1 18-2 25-3 solve their financial problesm-very important, only somewhat important, or not important at all7 14. Many cities are in trouble because of the recession and inflation, and New York City is just the first 03 of many to come close to bankruptcy ______(33) 74-1 14-2 12-3 ~}r~;E~1~~~!~!t~~~)~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ) iE 2b. In general, do you think the troubles New York City is in are mainly due to the way the city government has been run, or do you think the reasons are mainly elsewhere, such as the impact le. Over the past 5 years, do you feel that most of the cities of the country, as places in which to of inflation, recession, and the lack of help from the Federal Government? live and work, have improved, gone downhill, or not changed much7 Mainly due to way city government has been run.------(34) 58-1 0 14 Reasons are mainly elsewhere •••• ·------14-2 ~~~: ~~~~hiTt======< > it} Both (vol.) ______._ ••• _••••• _••••••• _- ______.------._------_...... 20-3 Not changed much ______------_ 21-3 Neither (vol.)_ •• _•• _._ •••••••••••••••••• _. __ ._ •• ------•••••••• ------. 1-4 Not sure •••• _. __ •••••• __ • _____ • ____ ._. ___ ••• _. ______••• __ •• _____ ._._.__ 6-4 Not sure •••••• _____ ._------••••• ____ ------____ ••••• ------___ 7-5 ld. Do you feel it is worthwhile for the federal government to help make the cities better places 3a. As you know, the Federal Government has been debating whether to help New York City by in which to live and work, or do you think it is not a worthwhile effort7 guaranteeing loans made to it or to allow the city to go bankrupt and default on paying back the Worthwhile •• ______•• ____ ••• _._ •••••• _. __ •• _. __ •••• ------_ ••••• __ ••.•••• (15) 73-1 people who own New York City bonds. Now let me read you some statements some people have Not worthwhile ______------21-2 made about what ought to be done about New York City. For each, tell me if you tend to agree or Not sure • . _•• ___ • ______._ ••• _. ___ • ____ •••• ______•••••••••• __ ._..... 6-3 disagree. le. How serious do you feel the financial crisis facing New York City is-very serious, only somewhat serious, or not serious at all? Dis- Not Agree agree Sure 5 ~~i ;~~~~hat serious .------(l ) rn=1 Not serious at all..______3--3 1. New York City has been a rip-off city for so long it Not sure . •••• ______._ •• __ • ___ •••• _••••• _. ______•••••••••••••.•• _ 6-4 ought to be allowed to default and thereby be taught a lesson •••• ______••• ______._ •• __ ••• __ (35) 32-1 53--2 15-3 lf. How important do you feel it is for the federal government to help New York City solve its 2. The U.S. government has given billions in aid abroad financial problems-very important, only somewhat important, or not important at all7 to other governments, so the least it can do is to 7 help out New York City when it is in need ______(36) 64-1 28-2 8-3 3. If the Federal Government bails out New York City, it will be an open invitation for many other cities, Not sure _._ •• __~ri~~~~~~======•••••••• ____ ••• __ •.•••• ___ • ___ • __ •• __ •••••••• ______._... (l ) ii7-4 counties, and states to do the same and that is ~;~il~~~~~:\f wrong ______•.•. __ .• _.•• _._._._. ___ ._._._._ •• (37) 67-1 24-2 9-3 lg. Over the past 5 years, do you feel that New York City, as a place in which to live and work, 4. If New York City defaulted, it would be a real injustice has improved, gone downhill, or not changed much? to thousands of people who would lose their life 0 13 savings which are invested in New York City bonds __ (38) 73-1 17-2 10-3 ~~i! J;~iiiiilL::======: == =: ======:: == =: :::::::::: == == :: ==: < > st~ 5. Since the Federal Government bailed out Lockheed and the Penn Central Railroad with billions of dol- ~~~ ~~~:!~~ -~~:~:======:: == = :: : ~~j lars, the least it can do is to help bail out New York City ______------____ ------(39) 55-1 33--2 12-3 lh. Do you feel it is worthwhile for the federal government to help make New York City a 6. Unless New York City is allowed to go broke, the same better place in which to live and work, or do you think it is not a worthwhile effort7 old politicians will continue to mismanage the city ___ (40) 48-1 33-2 19-3 19 ~~rt!:~~!-hife.======: :: : : : : : : :: :::: :: : : : ::::= ::::::=: ======< > ~t~ Not sure •••••• _••• ___ •• ___ •• _. __ •••••••••••••••• ------•••••• ______9-3 3b. If New York City defaults, here are some of the things that could happen as a result. For each, tell me if you think that would be a very likely consequence, only somewhat likely, or not 2a. Let me read you some statements some people have made about New York City and its cur­ likely at all. rent financial troubles. For each, tell me if you agree or disagree. Only Not Agree Disagree Not sure Very somewhat likely Not likely likely at all sure 1. New York City has been at fault by not living within its means, sgending more money than it takes in._. (20) 82-1 8-2 10-3 1. Many individual bondholders who pur- 2. To collect gar age for 8,000,000 people, to provide chased New York City bonds in good adequate fire and police protection, to educate faith could have their life savings over 1,000,000 children, it is necessary to have the wiped out______(41) 58-1 23--2 12-3 9-4 second biggest government in the country ______(21) 61-1 22-2 17-3 2. Banks around the country who are 3. By letting policemen, firemen, sanitation men, and heavJ holders of New York City bonds teachers retire on half pay after 20 years service, coul go out of business ______(42) 35-1 28-2 27-3 lo-4 · New York City has been far too generous on 3. The risk of borrowing for almost all pensions ______------____ • (22) 58-1 27-2 15-3 other cities, counties, and states 4. New York Ci~ and other cities are important could go up a lot, making it necessary business an cultural centers and must be kept to raise taxes.------(43) 52-1 25-2 13-3 lo-4 from going bankrupt______------(23) 70-1 20-2 10-3 4. A New York City default could trigger a 5. There is too much graft and payroll padding in New deeper recession, or even a depres- York City government______(24) 71-1 4-2 25-3 sion, in the country ______(44) 40-1 24-2 25-3 11-4 6. As the financial center of America, the center of 5. Confidence in financing local, county, communications and publishing, the headquarters and State governments would be city of major companies, the center of art and undermined •••••••• _.------. ( 45) 40-1 25-2 20-3 15-4 culture, the home of the United Nations, New York City is an important part of America to keep going ___ ••••••••• ______• ____ •• __•• __ ••••••• _. (25) 82-1 10-2 8-3 4. Now let me ask you about a number of things that have been suggested New York City will 7. The unions of city employees in New York City have have to do if it is going to deserve to be helped out of its troubles by the Federal Government. For become so powerful they have obtained excessive each, tell me if you think it is highlfE important, only somewhat important, or hardly important in settlements on wages and benefits ______(26) 67-1 9-2 24-3 order for New York City to receive ederal help. 8. It is important to preserve New York City as the most important city of the world, where much of the world's business is conducted and some of the Only most important international decisions are made ___ (27) 67-1 21-2 12-3 Highly somewhat Hardly Not 9. With about 300,000 city employees, New York City is important important important sure a bureaucracy out of controL ______(28) 66-1 12-2 22-3 10. New York City has not received its fair share back from the taxes it pays to the Federal Government._ (29) 20-1 28-2 52-3 1. The city be forced to balance its budg- 11. New York City is the center of much of what's rotten and immoral in America. ______(30) 41-1 4o-2 19-3 r!'k:irn ~~e:_d_. ~-0~~-.~~~-e!_ -t~_a_n__ i:_ (46) 90-1 7-2 1-3 2-4 12. It is important to have big cities like New York, 2. The State of New York raise the State which attract the most talented and capable sales tax one cent to finance half the people who can work closely together for the well- city's deficit.. ______(47) 52-1 23-2 14-3 11-4 being of the country ______(31) 63-1 25-2 11-2 November 6, 1975 EXTENSIONS OF REMARKS 35463

Only ~:~u!':~:~__ :: :: : :::::::::: :: : ::: :::: ::::::::::: :::::: :::::: :::::::::::: (70) ~t~ Highly somewhat Hardly Not important important important sure ~~~:~endenL::::::: :: :::::::::::::::::::::::: ·::::::::: ::: : ::::::: ::::: 2t-:l Not sure ______------___ 4-5

3. The city end rent control, which has Fld. (if "voted" in 1972 in Flb-others skip to F2a) In 1972, did you vote for Nixon the Republi- reduced its income from real estate can or McGovern the Democrat? taxes______( 48) 29-1 26-2 21-3 24-4 4. Make its bondholders wait 2 to 3 years before receiving their money from ~~xiivern:: ::: :::: :: : : : : :: :: :: : :: : : : : : : ::: : ::: ::::::::::: :::::::::::::: (7l) ~~ their bonds, although they would re- Other______4-3 ceive interest payments over that Not sure ______----______------______----- 3-4 period ______(49) 53-1 22-2 12-3 13-4 5. Renegotiate the pensions city em- F2a. (Ask everyone) Is the head of the household an hourly wage worker, salaried, or self­ ployees receive so that they would emptoyed in his main job? have to work 30 years instead of 20 years to retire on half pay ______(50) 32-1 17-2 19-3 12-4 ~~,~~\!J'3ge worker_------(72) 27-1 6. A city administrator with authority be 34-2 put in to make sure New York City 10-3 i:\~~:~ ptoyed =::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 18-4 fg;'~~~~:~~-c~~~~e_s_~~~~-e_c~~~~~~::_ (Sl) 73-1 13-2 7-3 7-4 Unemployed ______------______------______4-5 7. Put in tough productivity programs for None of the above: city employees ______(52) 68-1 15-2 8-3 9-4 1--6 8. Trim nonproductive employees off the 1-7 payroll ____ ------______(53) 27-1 11-2 6-3 6-4 N~!~t~ir:rvice == = =: ::::::: ==: ======: ======: =: == =: =: =: =: == = = =::: 4-8 9. A special supervisory board of Federal, Other (specify) ______-----_------______-----_ 1-9 State, and city officials be created to monitor what New York City does (54)_ (54) 62-1 17-2 11-3 10-4 F2b. (Ask if employed, unemployed or retired in F2a-Others skip to F3) What type of work does (did, if retired) the head of the household do? (Probe fully, finding out what the job is called duties involved, etc., in order to categorize correctly below): ' Sa. Now, if New York City puts in reforms such as those we've just asked you about, would you favor or oppose the Federal Government guaranteeing loans that would be made by banks and 18-1 other lenders to the city? l~iri~iil,-iiroprietor::_-:::::::::::::::::::::::::::::::::::::::~:~:: (73) 16-2 if 7-3 Favor ______------_ --- ______(55) 65-1 5-4 Skilled craftsman{ foreman __ ------______------25-5 ~~f ~t~e::::::::: =---_-_-_-_-_-_-_-_-_-::::::::::::: :: ::: ::: :: :: ::: ::: :::: :: :: :: :: ft~ Operative, unskil ed laborer (except farm>------14--6 Service worker ______------______6-7 Sb. Would you favor or oppose the Federal Government guaranteeing New York City's debt, Farmer, farm manager, farm laborer ______which is over $11 ,000,000,000, if the city balances its budget and such a plan would not cost the Other (specify) ______3-8 taxpayers any actual money? 6-9 Favor (skip to Sd>------(56) 68-1 F3b. (Ask everyone) In what age group are you? Oppose (ask Sc) ______------22-2 (74) 8-1 Not sure (skip to Sd)------10-3 9-2 12-3 Sc. (If "oppose" in Sb) Would you still oppose such a guarantee by the Federal Government if iii~30 to IL::======34 ______------______------:: _ 9-4 New York's going into default would mean the cost of financing State, county, and city government 35 to 39 ______------___ ------_------______8-5 all over the country would go up 10 percent, causing state and local taxes to rise? 40 to 49 ______------______16--6 7 50 to 64 ______------______------___ _ 23-7 65 and over_------15-8 ~~f~t~e:::::: ==---_-_-_-:_-_-::::::::::: :::::::: :: ::: ::::::::::::: ::::::::::: (S ) rt=i Ref used• ______-----______----______•-9 5d. (ask everyone) All in all, do you favor the Federal Government guaranteeing loans to New •If re_spondent refuses, estimate his/her age, and record for "refused" as well as the age group York City if the city balances its budget and such a plan would not cost the taxpayers any actual you estimate. money, or do you think it is better for New York City to default and go bankrupt? F4. (hand respondent card "A") Would you please look at this card and tell me which letter represents the highest grade of school that you actually completed? ~:~~~ ~~f!~~~e:_ ~~ ~~~~~: : : : :: : : ::::::::::::::::::::::::: ::: ::::::::::::: (58) 1t~ 75 Not sure ______------__ ----_____ ---- ___ ------__ 13-3 &: ~s~ :~~~;~h~~~o~~~~~~n~r?ieirs-oisciicicifcompfetedf______< ) t~ Se. President Ford has said he would veto any bill passed by Congress for the Federal Govern­ E. 8th grade (8 yr of school completed>------8-3 ment to guarantee New York City's deficit. Do you agree or disagree with the President on his veto­ F. Some high school (9-11 years of school completed)______15-4 ing such a guarantee? G. High school graduate (12 years of school completed)______33-5 H. Some college (1 to 3 years of college completed)______17-6 (S9) I. 2 year college graduate (completed 2 years community college, etc.)______4-7 ~~:iti: ______------. i~i J. 4 year college graduate (completed 4 years of college)______9-8 K. Post graduate (4-year college graduate and completed at least 1 year of grad- uate school) ______-----______------______7--9 Sf. President Ford has recommended that the Federal bankruptcy laws be changed to allow New York City to default and go bankrupt under a plan whereby a Federal court would keep essen· F5. Are you a member of a labor union, or is any other member of this household a member of a tial services in New York City going, would supervise the financial running of the city, and determine how those the city owes money to would be paid back. Do you favor or oppose President labor union? Ford's proposal for a bankruptcy law for cities? 75 Favor ______------___ - ___ ------(60) 40-1 i!~feir\:~~~eber: ::: : : : : :: :: :: :: : :: ::: :: :: ::: :::::: :: :: :::: ::::------< > lt:1 Oppose ______----_------__- --- - ____ - -- 40-2 NotNo unionsure ______member____ in _household--______-_____------______-----___ 70-31-4 Not sure ______-- __ ------_-- - _- _---- - _- - - _- -- __ --- -- 20-3 5g. How would you rate the way (read list) has h~ndled himself on dealing with New York City's F6. For statistical purposes only, we need to know r,our total household income for 1974. Will financial problems-excellent, pretty good, only fair, or poor? you please look at this card (hand respondent card "B ') and tell me which letter best represents all the money the members of this household either earned or received, such as welfare pensions stocks, bonds, real estate and other investm~nts, income from a business, before taxes in 1974'. Pretty Only Not Excellent good fair Poor sure A. Under $3,000 ______-----______------______(77) 6-1 B. $3,000 to $4,999 ______------__ 10-2 1. President Ford ______26. 2 26.3 27-4 9-5 C. $5,000 to $6,999 ____ ------____ _ 12-3 (61~ 12- 1 D. $7,000 to $9,999 ______-----______---______2. Treasury Secretary William Simon __ (62 3-1 12-2 18- 3 16-4 51-5 14-4 3. Governor Carey of New York ______(63) 1-1 13- 2 22-3 24-4 40-5 E. $10,000 to $14,999 ______23-5 . (64) 2-1 13-2 19-3 35-4 31-5 4. Mayor Beame of New York City ____ F. $15,000 to $19,999 ______---__---- ______16~ 5. Senator William Proxmire of the Senate Banking Committee ______(65) 1-1 9-2 16-3 11-4 63-5 G. $20,000 to $24,999 ______------_-- --- 10-7 6. Senator Adlai Stevenson of the H. $25,009 and over_------__ 8-8 Senate Banking Committee ______(66) 1- 1 10-2 16-3 9-4 64- 5 I. Not sure/refused ______------______7. Congress as a whole ______(67) 3-1 17-2 26-3 24-4 30- 5 11-9

Interviewer: If "not sure" or "refused", record for "not sure/refused", and record for the FACTUAL amount you are estimating. Fla. How would you describe your own personal political philosophy- conservative, middle of the road, liberal, or radical? F7Protestant_. What is your ______religion?______· ______(78) 56-1 Co nservative ______----_ ------(68) 33-1 Catholic ______Middle of the road ______40-2 Jewish ______. ______31-2 2-3 LiberaL ______· ------___ ------__------16-3 Other (write in) ______4-4 RadicaL ______------______------4-3 None ______------6-5 Not sure ______-- __- _------8-5 Not sure ______------__ __ ------______1--6 Flb. Did you vote in the 1972 electio ns for President when Nixon and McGovern ran, or didn't you Record the following-Do not ask: get around to vcting then? F8. Ethnic group or racial background: White ___ -- __ ---- ___------(79) 86- 1 Black ______10-2 Oriental ______------__------_ == ==------: :-:::: === = <69) 1-3 ~~~:~;eo_ie = :::::::::= = == :::::::::::::::: :::::: ~Ei Spanish-American (Puerto Rican Mexican-American, etc.) ______2-4 Other (specify) ______1-5 Flc. Regardless of how you might vote, what do you usually consider yourself-a Republican, Not sure ______------__------a Democrat, an Independent, or what? ·~ CXXI---,..-2233-Part 27 35464 EXTENSIONS OF REMARKS November 6, 1975 F9. Respondent is: Male ______-----______--- __ ------____ ---- ____ (80) 47-1 Telephone Area Code:------Telephone No.:------This is a bona fide interview and has been obtained according to mv agreement with Louis Harris Female ______------____ --• --___ ••• ----. -- • --•••• --• ___ • __ ••• _____ • 53-2 & Associates, Inc. Interviewer's name (please print): ------___ ------•• ____ • ____ ••••• ------•••• ------. _------~i}~!~~i:: ;~i:S~-lease print): _ ------~~t~~------;~;~------Date of interview:------Time (o'clock) of interview:------­ This interview validated by=------Date validated:------REsOLUTION ON THE INTERGOVERNMENTAL Here are some examples of how the big difference in timing! For example, one alarm­ EMEBGE.NCY AsSISTANCE ACT (H.R. 10481) cities get the suburbs' money! We basically ing signal comes from a recent report of the Whereas, default by New York City or pay four types of tues--income, property Minnesota. Taxpayers Association. This report other American state or municipal govern­ sales and excise. These taxes are pa.id to indicates that the Minneapolis-St. Paul met­ ments would jeopardize the already uncer­ state, federal, school, county, city and miscel­ ropolitan area 1s second only to New York City tain recovery from the economic recession laneous jurisdictions. Suburbs with their in the per ca.pita yearly interest its residents our nation is now suffering, and higher incomes, progressive tax rates, higher pay on local bonds! New York City's ina.bllity Whereas, the averting of state and munici­ property values and larger expenditures pay to meet its debt-service obligations has been pal defaults through timely Congressional more of all these taxes than does the aver­ headline news for some time now. My reason action is far preferable to dealing with the age person in the big cl ty. On the other side for raising this issue is that although the big financial chaos which would follow in the of the coin, the expenditure of this money cities have mismanaged their own operations wake of defaults, and by federal, state and county jurisdictions they have been successful in the political Whereas, the nation faces an immedia.~ greatly favors the big cities. As an example, arena securing suburban money to bail them­ crisis in the threatened financial collapse of Federal aid amounts to $15,000,000 yearly in selves out. Therefore, we in the suburbs have New York City, whose default would have the Minneapolis school district ( 14 % of its an interest in, and maybe even a responsi­ far reaching impact on all areas of American budget) compared to $3,000,000 for a com­ bllity to question, their fiscal practices. national, and even international, economic posite group of eleven suburban school dis­ One of the primary arguments used by big life, tricts (less than 3% of their budgets). Fed­ city lobbyists in convincing the federal, state, Therefore be it resolved, by the House eral a.id a.mounted to $225 per pupil unit in and county policymakers of their needs is Democratic Steering and Policy Committee, the Minneapolis school district compared to that they have unusual conditions and very That passage of the Intergovernmental $25 per pupil unit in the eleven suburban high costs and simply cannot make it on Emergency Assistance Act (H.R. 10481) is districts studied. their own. Although, as stated earlier, there hereby endorsed and that Members of the Further, according to the Minnesota. State is some merit in their plea, let's examine the Democratic Caucus a.re urged to support this Auditor's report on cities and villages, Min­ situation a little more closely. Minneapolis legislation when it comes before the House. neapolis received $119.19 per ca.pita. of local and St. Paul spend much more per capita. government aids, revenue sharing and all than the suburbs! One way is by employing other grants and aids. Twenty-three subur­ more than three times as many employees ban communities received an average of only per thousand of popula. tion as we do. In the PROBLEMS OF THE SUBURBS $44.23 of this same revenue, only 37% of what suburbs we have been able to operate quite Minneapolis received. Further, Minneapolis well with less than four public employees with 43% of the county population received per thousand of population. In Minneapolis 61 % of all state aids distributed in the and St. Paul they seem to require more than HON. BILL FRENZEL county. Further, the Minnesota Legislature OF MINNESOTA thirteen public employees per thousand of did away with our municipal township relief population. In addition, their pay scales a.re IN THE HOUSE OF REPRESENTATIVES system and transferred it to the county. The much higher for similar positions. This ap­ Thursday, November 6, 1975 effect of this was to increase the cost to Ply­ pears to be a tremendous disparity in "need"! mouth taxpayers 11 times over what they had Plymouth operates its entire City program Mr. FRENZEL. Mr. Speaker, New pa.id into our local system. Further, the Met­ including all the Fire, Police, Planning, Road, York's current financial difficulties has ropolitan Transit Com.mission· during 1975 wlll collect $355,168 from Plymouth citizens Park and Recreation, Inspection and Genera.I served to focus our attention once again and yet Plymouth has no MTC bus line serv­ Administration on 9.7 mllls. This year Min­ on the fiscal relationships between our ice. Further, the Hennepin County Medical neapolis is spending 15 mills on employee major cities and their neighboring sub­ Center (Genera.I Hospital) will collect $194,- pensions alone! As in New York, their pub­ urbs. Allegations have been made that 779 from Plymouth citizens during 1975. This lic employee unions have developed a strong the crisis 1n the cities has come about money is used for operations and the retire­ hold on the big city government and a.re able in large part because the suburbs have ment of bonds and payment of interest. to extra.ct in the so-called "bargaining proc­ Again, our citizens receive only a small frac­ ess" benefits much larger than the general refused to lend a helping hand. public receives. Considerable evidence would Mr. Al Hilde, mayor of the city of tion of benefit from this huge expenditure. Further, Plymouth citizens during 1975 will indicate that the Minneapolis Council has Plymouth in my congressional district contribute $1,397,117 to county welfare. It is become an unfit adversary to sit across the has authored a series of articles which doubtful that our citizens reoeive more than bargaining table from the employee unions show that just the OPPosite is true. At 6 to 10% benefit from this huge expenditure. on behalf of the taxpayers whom they are in pledged to serve. What is la.eking is balance! least the Minneapolis/St. Paul metro­ The "net economic result" is simply this; Ideally, neither employer nor employee politan area, Mayor Hilde documents the suburbanites pa.y far more taxes and receive should be dominated by the other in the substantial influx of tax dollars which far less in return than do our sharp cousins bargaining process. This is the only way that continue to flow from the suburban tax­ from the big cities--and this trend continues settlements can be arrived at which a.re fair payers to subsidize city services. inexorably forward. In the next issue, I will to all parties including the general public. I believe the Members of the House discuss the arguments the big cities use to The state government, both executive and will find these articles very interesting get our money and how they spend it! legislative, bears a large responsibility for the present unbalanced and unhealthy relation­ and worthwhile reading. Two of the PLYMOUTH FROM THE INSIDE articles by Mayor Hilde follow: ship between employers and city employees. Most thoughtful people agree that the big Minneapolis and St. Paul receive many PLYMOUTH FROM THE INSIDE cities have serious problems that perhaps times the state and federal aid per ca.pita. In the last issue of the Plymouth Report, justify some financial aid. The gist of this ar­ than do the suburbs. Federal and state aid I described the deplorably weak political ticle and the two which preceded. it is that distribution formulas are usually determined condition of the suburbs and how it was ad­ the suburbs with their high start-up costs on the basis of "level of effort" or "need". versely affecting suburbanites because most and non-recurring expenditures (new In simple layman's language, this simply of the important economic and social deci­ schools, city halls, fire stations, fire equip­ means that the more they spend the more sions a.re ma.de in a political arena and there­ ment, parks, etc.) also ha.ve heavy financial they get from the federal and state govern­ fore we end up on the short end of the stick needs and, further, the multitudinous poli­ ments. in terms of "net economic results". I fur­ cies which a.id the big cities with essentially The big cities demonstrate their "need" ther indicated that if this strong trend con­ suburban funds have proliferated to an ex­ for additional funds by including in their tinues, it would result in much higher taxes, treme tha.t is grossly unfair-especially when genera.I opera.ting budget services that reduced services, weakened property values one considers how the big cities spend our money. suburbanites pay for out of their own pocket. and a lower standard of living for suburban­ This has the effect of swelling big city taxes ites. This article will provide some little As you read this article keep in mind the because they include items such as garbage known facts in support of the above thesis. debacle of New York City, a. city nearly bank­ collection, street lights, road building and However, for those who did not read tl:).e rupt at this time. In my optnlon, the only dif­ other items that our citizens pay for either previous article, I would advise obtaining a ference between New York Clty and other directly or through an assessment procedure. copy from the City Hall and reading it in large cities of this nation (including the Twin When big city and suburban aid formula context with this writing. Cities of Minneapolis and St. Paul) is a determinations are made, it should be done November 6, 1975 EXTENSIONS OF REMARKS 35465 fairly on an apples-to-apples basis, but a.s a. ing with other countries for the benefit of naires asking this year's participants matter of fa.ct it 1s not. In further support of America. Though he was not born here, whether or not they would again want to this allegation, 98.6 percent of a.11 Plymouth's Henry Kissinger has always shown loyalty participate next year. The result was so outstanding debt 1s financed by special assess­ to America. John F. Kennedy, another ments which a.re paid by the individual patriot, was from a. wealthy and well-known staggering that the State is now fervently property owners. In Minneapolis this figure fainily. He didn't need politics to make him searching for additional land which is only 19.8 percent. famous, but became president because he could be made available for community In my oplnlon, the situation that I have loved his country and its people. Martin gardening. · described in the la.st two articles ls deplorably Luther King did not condemn his country I would like to draw my colleagues' unfair to suburban citizens. Further, it ls when it discriminated against his people, the attention to the following article which not healthy for the big cities! They have Negroes, but worked for the benefit of a.11 appeared in the October 28 edition of the little incentive to practice fiscal discipline American citizens. Theodore Roosevelt was Pennsylvania Department of Agriculture and control when they have only to pick the a. man who ca.red a.bout conserving America's suburban money tree in order to cover their natural resources and started conservation Weekly News Bulletin, and which gives excesses. You don't cure a. chemically depend­ in the United States. Abra.ham Lincoln, a ample evidence of the great success ent patient by giving him more chemicals great patriot, would not permit his country which their "Bicentennial Garden" pro­ when he exhibits uncomfortable Withdrawal to be torn apart for he strongly believed gram has enjoyed. I am sure my col­ symptoms. The patient must reoognize his that "a house divided against itself cannot leagues would want to give considera­ mness for what it is and be willing to take stand." Charles DeGa.ulle was a soldier, tion to seeing similar programs initiated the necessary curative measures. Matters are statesman, and president for France. This in their own States if one is not already likely to worsen until suburbanites become man loved his country deeply and was prob­ activated in programs of constructive self­ ably the most famous patriot France ever in existence. interest and take political steps to rectify had. The above mentioned article appears these inequities. The suburbs have 58 percent Even this list of patriots is incomplete for as follows: of the population in the metropolitan area.. I've been writing mostly about politicians. [From the Pennsylvania. Department of Ag­ We could develop the necessary political Did you ever think of an olympic athlete as riculture, Weekly News Bulletin, Oct. 28, muscle if we would a.wake and take construc­ a. patriot? Kathy Rigby, for one, has spent 1975] tive, positive steps that have as their basis many hours and much of her energy to rep­ SHAPP LAUNCHES "BICENTENNIAL GARDEN" an informed, organized and invigorated resent her country in the Olympics, but did PROGRAM public. Our entire region and state would not reoeive any pay. In this way, she has Gov. Milton J. Sha.pp received a report on benefit from the efforts of a mature and shown us another form of patriotism. active suburban public. his Anti-Inflation Garden program, in whioh All these people are outstanding patriots, 200,000 Pennsylvanians were introduced to but there is still another kind of patriotism. the economic advantages of raising their own Adolf Hitler was a well-known patriot for vegetables. Germany, but he showed us the wrong side Agriculture Secretary Jim McHale, whose PATRIOTISM REMEMBERED BY OUR of patriotism. He believed his people and department administered the program, pre­ YOUTH country were superior and that they should sented the report to the governor. rule the world. Eventually this kind of "From this report," Sha.pp said, "I see the patriotism hurt the country of Germany program was a. great succes.s, especially in HON. JOHN W. JENRETTE, JR. and ca.used its destruction. that it involved low-income fa.Inilies who OF SOUTH CAROLINA All American citizens should be patriots. benefitted most from reduced food bills and I am a. patriot for I love this country of ours IN THE HOUSE OF REPRESENTATIVES an increase in the nutritional value of their and what it has to offer. I am glad that I diets." Thursday, November 6, 1975 live in America. for it is the freest country The governor announced the program in the world. However, all true patriots must would be continued next year on a larger Mr. JENRETTE. Mr. Speaker, on Oc­ remember the words of John F. Kennedy tober 10, I addressed the Knights of scale under a. new na.me--Bicentennia.l Gar­ when he said, "Ask not what your country dens. Columbus in Florence, S.C. The occasion can do for you, but what you can do for your Gov. Sha.pp first unveiled his garden pro­ was an awards banquet. Several young country." gram at the Governor's Preview of the Penn­ people were singled out for their essay on sylvania. State Farm Show, January 5, 1975. "patriotism." However, the e~say that The Agriculture Department promoted the won the hearts of the judges was written program and processed orders for seeds from by Danny W esterkam, a 6th grade stu­ "BICENTENNIAL GARDEN" PRO­ civic organizations throughout the common­ dent at st. Anthony Parish School. GRAM IS OVERWHELMING SUC­ wealth. A total of 848 such organizations CESS ordered and distributed 174,800 collection I had the pleasure of presenting Danny envelopes of seeds. a U.S. flag that had been flown over the Land from 25 state institutions was ma.de Capitol, as well as to present him with available for citizens to use for vegetable a bond which is to be used for further­ HON. JAMES A. BURKE gardens. Nearly 3,000 people used land a.t 18 ance of his education. OF :MASSACHUSETTS of the 25 institutions involved. In behalf of the people of the Sixth IN THE HOUSE OF REPRESENTATIVES According to the program report, question­ naires were sent to the 348 participating Congressional District, I would like to Thursday, November 6, 1975 again congratulate Danny on his flne organizations and the citizens who used state Mr. BURKE of Massachusetts. Mr. land, asking if they would be interested in a work, and insert his essay on patriotism s1mlla.r program next year. The response has in the RECORD so that others may have Speaker, some time ago I advised the been overwhelmingly positive. the opportunity of seeing what this fine Members of this Chamber of a "Bicen­ Consequently, the program's Steering young man has presented: tennial Garden" program initiated by Committee, With representatives from the PATRIOTISM the State of Massachusetts. I am pleased Departments of Welfare, Education, Commu­ (By Danny Westerka.m) to report to you today that the program nity Affairs, Property and Supplies and Ag­ riculture, opened bids submitted by seed When someone mentions the word "pa­ has been an overwhelming success; so successful, in fact, that it will have to be companies on October 20th to supply seeds triot", what comes to mind? Most people for the Bi.centennial Gardens program. think of a Revolutionary soldier With a mus­ expanded next year to meet the enor­ ket in his hand. Perhaps you may think of mous demand. Paul Revere or a famous Revolutionary Gen­ During this year, the Pennsylvania eral such as the well-known George Washing­ Department of Agriculture has processed FOOD PRICES CONTINUE TO GO UP ton. Yes, all these people are good examples orders for seeds from 348 civic organiza­ of patriotism, but there Sire other kinds of patriots besides soldiers. Some of us have tions, and has distributed 174,800 en­ never thought of a. peacemaker as a person velopes of seeds to them. Land was made HON. ABNER J. MIKVA showing patriotism. Actually, a patriot is any available from 25 State institutions serv­ OF ILLINOIS person who loves and is loyal to his country ing 3,000 community gardeners. Those IN THE HOUSE OF REPRESENTATIVES and its principles. gardeners enjoyed the benefits of the There a.re many people that have shown Thursday, November 6, 1975 patriotism to their country. Such a. person soil, and produced a vast harvest of high­ 1s Henry Kissinger, a peacemaker. He has quality, fresh, nutritious food. The State Mr. MIKVA. Mr. Speaker, when spent all of his time and energy in work- followed up the program with question- Thomas Jefferson and the other authors 35466 EXTENSIONS OF REMARKS November 6, 1975 of the Declaration of Independence NATURAL GAS EMERGENCY STAND­ percent of the energy we consume, and gnaranteed the right to life, liberty, and BY ACT OF 1975 41 percent of the energy we produce. the pursuit of happiness, they should It is therefore the largest single provider have included the right to eat. The sky­ of energy actually produced in the rocketing cost of food, which seldom ex­ HON. ROBERT (BOB) KRUEGER United States. periences a setback, is making it increas­ OJ" TEXAS ingly difficult for breadwinners to provide IN THE HOUSE OF REPRESENTATIVES WHERE ARE WE TODAY? even the most basic staples for their fam­ Thursday, November 6, 1975 Until fairly recently, because gas was ilies. Congress should be informed of primarily viewed as a byproduct some­ Mr. KRUEGER. Mr. Speaker, as ex­ times discovered in finding oil, the major this alarming trend and keep it in mind ploration was undertaken for oil in the when formulating Policies that might ef­ share of drilling expense was charged late 19th and first half of the 20th cen­ against the price of oil. Gas was sold at fect food prices. tury, an unwanted byproduct often re­ In a recent survey taken in 26 stores whatever price might be received by a sulted where oil was found: natural gas. producer. This meant, on the one hand, throughout my district in Chicago's At that time neither use nor market ex­ north suburbs, food prices had increased that natural gas could be priced more isted for natural gas, and consequently it cheaply than oil in terms of its Btu equiv­ 4 percent since April. The price of a 27- represented only a poisonous, dangerous item market basket had jumped to $19.99 alent, because the main profit was found product, which was burned off, or in oil rather than gas. On the other on September 27 from the April 26 price "flared" in order to make drilling a safer of $19.20. hand, because gas could be purchased undertaking. quite cheaply when it was found in con­ Sharp increases in meat and dairy BACKGROUND products were primarily responsible for junction with oil, there was relatively the increase recorded in the survey, By 1940, natural gas had begun to be little inducement to explore for forma­ which was conducted by my high school used for domestic purposes, for boiler tions containing only gas and not oil. interns. fuel, and for limited industrial purposes. In terms of energy equivalency, gas has The survey revealed that- Because technology to transpcrt natural long been priced more cheaply than oil. Meat prices, in particular, increased gas over long distances had not been Since 6,000 cubic feet of natural gas pro­ substantially-more than 20 percent. developed, rt was used near its source. vide energy equivalent to one barrel of Eight meat items of various types and In all, only about 4 percent of our total oil, the price of natural gas per mcf prices are used to compile the meat cate­ energy supply consisted of natural gas. might logically be expected to correspond gory statistics: sirloin steak, boneless During World War II, technology was to about one-sixth the price of a barrel of rump roast, pork chops, all-beef hot dogs, developed to allow long-distance trans­ oil. Natural gas a $2 per mcf is there­ whole fryer chickens, round steak, mission of nrutural gas to consuming fore competitive with oil at $12 per bar­ ground beef, and bacon. The April 26 States along the eastern seaboard. Nat­ rel. But natural gas can present problems price of these eight meat items was ural gas was found to be the cleanest, in transportation not presented by oil. highest quality fuel that we had, since, It must be present in sufficient supply to $10.36, while on September 27, the price upon burning, iil; principal constituent of the same eight meat items was $12.51. warrant the building of expensive pipe­ In the dairy products category, all four leaves only water vapor and carbon di­ lines to the wells. Whereas oil can be re­ items included in the market basket had oxide. Among other uses, natural gas be­ moved by truck, natural gas must be re­ increased: sliced American cheese up to came the prime source for industrial and moved by pipeline. Therefore even today agricultural feedstocks. Fertilizers, plas­ one sees some "flaring" of gas, and there $1.09 from 94 cents, eggs up to 77 cents tics, synthetic materials of all types are from 61 cents, cottage cheese up to 72 are indeed some "shut-in" gas wells, be­ made primarily from natural gas, mak­ cause it is not necessarily economic to cents from the April price of 63 cents, ing this fuel our source not only of en­ and the smallest increase-in a half gal­ build pipelines to all gas wells. The gas er~. but, indirectly, of both food and wells have to contain sufficient reserves lon of low-fat milk-up 1 cent to 72 fibre. cents from the April price of 71 cents. near enough to existing pipelines to war­ Some producing States found natural rant the construction of a pipeline to the I have been charting the fluctuations gas to be the cheapest available boiler field. of food prices for residents since June fuel, and therefore converted their elec­ of 1974, using the same Tenth District trical generating facilities from burning MONOPOLY IN THE NATURAL GAS INDUSTRY stores in each survey. For the present coal to natural gas for their boiler fuel. There is much temptation to equate survey, the market basket items included Today, 95 percent of the electricity in the natural gas industry with the oil in­ meat and poultry, dairy products, prod­ Texas comes from natural gas. Nonethe­ dustry, probably because the two prod­ uce, frozen foods, canned goods, and less, new uses for natural gas made in­ ucts, oil and gas, are assumed to be found several household products. evitable a shift to other boiler fuels. This together in the ground, and, theref ore, to A July Associated Press survey has inevitability is accepted today by the be owned and marketed by the same concurred with my findings. According larger cities in producing States. San firms. This, of course, is not true. Gas is to the AP survey, the market basket at Antonio, for example, is purchasing rail­ often found by itself, and most of this checklist stores rose an average of 3.4 road cars and contracting for western gas is drilled for by independent produc­ percent in 10 of the 13 surveyed cities coal. Houston is investing in nuclear ers. In 1973, for example, out of the during July. plant capacity. But these changes require year's total of 1,326 gas wells drilled, 1,012 These results, like the results of all the vast capital investment and a period of were drilled by independents. food price surveys my office has con­ time to change from one fuel to another All economists agree that market pow. ducted so far show that some econo­ without causing widespread economic er is equal to market share. The accepted mists' comment that "inflation is over" disruption and hardship. Furthermore, quantitative measure of this power is certainly does not hold true in the super­ because natural gas is the most environ­ the concentration ratio. A familiar rule market. Inflation is very much with us, mentally desirable fossil fuel, its use in of thumb is to measure the market shares propelled by ever-increasing costs for the past 15 years has expanded rap­ of the eight largest firms in any given in­ food and fuel. idly. To change from natural gas to coal dustry and sum the percentages. If these Senior citizens who live on fixed in­ will obviomly require pollution-control total less than 50 percent, a market is equipment and large capital outlays. not considered excessively constrained by comes are hit hardest and are least able Our realization of the variety of uses anticompetitive forces. Not only is this to combat this devastating food price for natural gas, and of its limited avail­ production concentration ratio below 50 spiral, and many have been forced to re­ ability in the short term, prompts an percent for the natural gas industry, but duce their food consumption to a dan­ assessment of what conservation meas­ it is lower than the median concentra­ gerously low level. If we do not take ures might be undertaken to maximize tion ratio for the 412 manufacturing in­ some steps soon, other consumers may its most appropriate uses, and of how dustries generally categorized in the be priced out of the food market and we might enlarge production to avoid fu­ United States. may find that eating may become an ex­ ture shortages of this very precious na­ Those who wish to regulate the price pendable right. tional resource. Today, it constitutes 31 of gas sold by producers wish to do so November 6, 1975 EXTENSIONS OF REMARKS 35467 because they believe producers to have costs are governed not by the price of that is, discovered..-reserves continue an excessive amount of control over the natural gas at the wellhead, but by the the decline they have been experiencing price of the gas they sell. In refutation expense involved in amortizing the cost since the mid-1960's. Thus, as the intra­ of this position we can look at two things, of a pipeline. If a pipeline is 100 percent state market prospers, the interstate one quite academic, and one intuitively full, then the gas can be sold by the market continues to dry up. Both mar­ obvious. First, the Institute of Gas. Tech­ transporting and distributing company kets are observing the normal function nology, one of the most highly regarded at a lower price, since the return on in­ of the laws regulating supply and demand research and educational institutions in vestment for a transportation distribu­ and are operating in an entirely predict­ the industry, has constructed a model to tion company is fixed by law. If the pipe­ able manner. The intrastate market has explain the relationship between price line is only 70 percent full, however, the functioned in a normal manner, bring­ incentives and increases in exploration costs per mcf paid by the consumer ing forth gas supplies in the State of and production. Explaining the rate of rises substantially, since the consumer Texas at prices of up to $2.07 per mcf. discoveries as a function of current pro­ must then pay more mcf to cover the This higher price increased exploration duction rates and economic incentives­ fixed cost of amortizing the pipeline. Un­ and production to a degree sufficient for lagged 2 years to compensate for the lead avoidably, however, producers' costs and a surplus to develop. As it did, this surplus time existing in natural gas production­ pr0fits are the only variables that induce softened the market and put downward the model was applied to historical a supply respanse. If the consumer is to pressures on the price of natural gas at data-1946-74-and was proved to rep­ pay more per mcf in the years ahead, as the wellhead. As a result, wellhead prices resent almost perfectly industry per­ he unavoidably will, it is to his advantage are now averaging about $1. 70 in Texas, formance in response to market pres­ to have a larger share of his increased with contracts presently being written, sures over the past 19 years. The multi­ payment go to the producer, where it in certain instances, for $1.20 per mcf. ple correlation coefficient was equal to can result in more supply, rather than The conclusion is irrefutable: an unreg­ .996; perfect correlation equals 1. to have the payment go to the trans­ ulated market price will indeed elicit a The second thing we can do is to look portation company, where it will amor­ supply response in the natural gas in­ at the Texas intrastate market example. tize pipeline costs, but do nothing to dustry. The existence of market controlling pric­ bring in more gas. COST OF SUBSTITUTE FUELS ing power is usually revealed by prices DEVELOPMENT AND HISTORY OF DIFFERENTIAL If supplies of natural gas are insuffi­ which are inflexible downward. Prices in MARKETS Texas broke after hitting a high of $2.07 cient to meet available demand, obviously Because the price of natural gas has substitute fuels must be provided. It is per mcf in late 1974 and no ware averag­ been suppressed below the competitive ing $1.70 and below. This type of be­ worthwhile to make some comparative levels of other fuels, the supply and de­ cost assessments here. havior is definitely not characteristic of mand functions for this precious fuel a monopolistic market structure. If a consumer is curtailed in the use have been effectively distorted. These of natural gas, he faces several options. Unfortunately, as with so many other artificially low natural gas prices have things, arguments espousing monopoly If he uses natural gas for commercial increased demand and encouraged waste­ or industrial purposes, he may have to control of natural gas production in the ful use of natural gas while at the same United States tend to be substantiated close down his business or, he may sub­ time the low prices have served to reduce stitute oil for his shortage of natural by emotion and cliche' rather than hard supply by offering producers insufficient data and solid logic. gas. The cost of substitute oil is the cost economic incentives to encourage them of an imparted barrel of oil, since our PRICE FOR NATURAL GAS to search for new supplies. Gas well drill­ marginal barrel of oil comes from over­ The pricing of natural gas is quite ing peaked in 1961 at 5,459 wells and seas. This cost is today approximately different from that of oil, or, indeed, generally declined to a low of 3,456 wells $12.50 plus $2 in tariff. Since one from that of most products. Natural gas in 1968. During 1969 and 1971, drilling barrel of oil equals 6,000 cubic feet of prices are most often governed by long­ was fairly stable but in 1972 there was a gas, it would be economic to acquire term contracts ranging from 5 to 20 sharp increase in drilling activity reach­ natural gas at $2 per mcf rather than years that normally cannot be renego­ ing record levels of 6,385 wells in 1973 convert to oil at $14.50 per barrel. tiated during the life of the contract. and 7,240 in 1974. With the assistance of Federal funds, Therefore, the price paid for "new gas"­ The explanation for this sharp and we are now undertaking efforts to con­ that is, gas which would be discovered dramatic increase in drilling in 1970 lies vert coal to synthetic natural gas. The and contracted for today on long-term with the development ot the unregulated most optimistic estimates of these costs contracts-is a price which is blended intrastate market for natural gas. As this forecast that the synthetic natural gas into the price of gas under existing con­ i11trastate market grew in the early to result from such processes would tracts. Within the intrastate gas mar­ 1970's, so did the number of wells drilled be about $2.50 per mcf or $3 per mcf. kets, for example, gas selling at 8 cents to supply natural gas at the free and un­ Thus, taxpayers are subsidizing research per mcf is being transmitted on con­ regulated prices that the intrastate mar­ and pilot projects in order to provide tracts made perhaps 20 years ago along ket commanded. In the State of Texas synthetic natural gas-SNG-that will with new gas recently found and sold alone, a record number of 2,013 gas wells sell at 5 to 6 times the current Federal at $1.50 per mcf. On average, the was drilled in 1974 with gas going for Power Commission regulated price of 52 amount of natural gas under contract ex­ an average wellhead price of $1.52 per cents per mcf for new natural gas. pring each year constitutes about 7 per­ mcf. Clearly something is out of phase here. cent of total consumption. As the intrastate market grew and Liquid natural gas-

tural gas is quite often still flared and which instead go to private owners of investment in an already essentially risky wasted. onshore lands. business as governmental ·uncertainty. WHAT CAN BE DONE TO INCREASE DOMESTIC WHAT ABOUT WITHHOLDING? Drillers are uncertain as to what they PRODVC'l"ION? It is sometimes argued that certain will find under the ground but they do Studies have repeatedly shown that producers are withholding natural gas not wish to have their uncertainty com­ the number of wells drilled is directly in expectation of higher, deregulated pounded by now knowing whether they proportional to the price paid for oil prices. The search for shut-in wells has will be allowed to receive 52 cent.s or and gas products. Since most drilling in recent years been almost as persistent $1.52 for the product they seek if it enters has been for oil, drilling activity has fol­ as the search for the city of gold was in an interstate pipeline. If we wish to lowed the price of oil more closely than the southwest some years ago. But the maximize production, we will have to de­ that of gas, but the pattern has been findings have been few. The Department velop natural gas policies that will con­ clear, and drilling activity has in fact of Interior found in its study that vir­ tinue for longer than 180 days. We will been proportional to the price paid for tually all shut-in wells were not economic have to give a clear view into the future oil. The second inescapable conclusion to produce. Those who argued that there about whether or not natural gas will is that the fields most readily found are vast reserves that are shut-in seem be sold at a price competitive with other have already been discovered. This not to realize that to withhold gas is il­ fuels, and if it will be sold in the same means that drilling for future gas re­ legal, since it is illegal to withhold from manner, governed by market forces rath­ serves will be of two sorts: drilling in State regulatory agencies information er than by short term political pressures. smaller basins that can produce addi­ about reserves, or to falsify those re­ WHAT D' NOTHING IS DONE? tional reserves, and drilling to greater serves. Further, most exploration-75 If nothing is done, we will su:ffer worse depths. However, these fields will be pro­ percent in 1973-is done by independent than cold homes this winter. Jobs will be duced only if the prices received justify producers rather than by major firms, lost, perhaps massively. Industrial cur­ deeper, more expensive drilling, and and generally these ventures are under­ tailment will be inevitable. Our import erecting a pipeline to the gas. New drill­ taken as joint ventures in partnerships. dependency will grow. Pollution can be ing techniques allowing deeper explora­ Such participants simply do not have the expected to increase if we massively sub­ tion for gas will have to be increasingly cash flow to allow them to find produc­ stitute alternate fuels, since all other employed. Currently some wells are being tion and shut it in. Were they to do so, fuels · are heavier polluters than natural drilled to 20,000 and 30,000 feet in the not only would they be in violation of gas. The cost of curtailment needs to be search for gas, but this gas, naturally, State laws, but they would be withhold­ measured in jobs lost, industrial produc­ goes into the intrastate market where ing from the landowner royalties to tion delayed, agricultural production prices are received that warrant the hea­ which he is entitled, and for which he missed because of lack of fertilizer. vier drilling expenditure, rather than could take the drillers to court. THE MIT ECONOMETRIC MODEL flowing into interstate market. It would be folly to imply that there In 1974, half the natural gas being used are no shut-in wells whatever, but the We can, of course, do nothing, and in the U.S.A. came from only 2 percent notion that there are vast reserves that many might prefer this or some short­ of the gas fields in this country-very have been shut in, in expectation of high­ term "emergency" course. But it would large basins that were found long ago. er unregulated prices, has never survived be useful to look at the results of the The remaining half of the gas came any careful scrutiny by either economists fullest, most comprehensive study of the from 98 percent of the fields which were who know the field or by the Government effects of present regulation, increased drilled in hopes of large finds, but which regulatory agencies involved. It is a com­ regulation, and phased deregulation as provided much smaller production. fortable myth most often held by the they were assessed in the econometric Is there new gas to be found? The same parties who believe that there really model done at Massachusetts Institute of answer is undoubtedly yes. Well over half are very few additional reserves to be Technology recently. Under the direction the world's surface is under water, had at any price, an inconsistency which of Prof. Paul McAvoy-now a member of and it stands to reason that the areas has only confirmed, rather than erased, the President's Council of Economic Ad­ under water have formations just this particular prejudice. visers-this study predicted the effects as likely to contain gas as those areas of three different strategies. First. A con­ covered by land. However, it is more AN END TO UNCERTAINTY tinuation of present regulation would expensive to explore under water, and, What is needed, if we are to avoid the bring an excess of demand over supply currently, offshore natural gas is sold import dependency which we developed of 10 T ft3-or four times the present under Federal price controls that dic­ in oil-40 percent of our oil is currently anticipated shortfall. Second. Strength­ tate exploration for gas only where imported-is to develop a policy now that ened regulation would enlarge the short­ it can profitably be produced at a will maximize production and assure a fall to 12 tcf. Third. Under deregulation cost of 52 cents per mcf or less. Obvious­ most efficient and fair use of this pre­ supply and demand would be essentially ly, that puts much more severe restric­ cious resource. Efficient use in part ob­ in balance. tions on offshore drilling activity, where viously follows price. As natural gas be­ The econometric simulations are given we might legitimately expect to find comes too expensive to be used as a boiler below. The difference in price between the largest reserves, than we have on on­ fuel for producing electricity coal will present regulation and deregulation is shore reserves. Further, since offshore once more recover that role. But if we anticipated to be the difference between reserves are, in this country, Federal are to maximize our production we must 72 cents and 88 cents. The difference lands, the taxpayers are missing the op­ give those who are involved in produc­ in supply and demand varies from 10 portunity to receive royalty payments tion clear signals. Nothing so discourages tcf to near zero.

TABLE 1.-ECONOMETRIC SIMULATIONS OF CURRENT NATURAL GAS REGULATION

Total Excess New New additions to Total Supply of Demands for demand for contract w~:1!~~,: discoveries reserves reserves production production production field price price Year (Tcf) (Tcf) (Tcf) (Tcf) (Tcf) (Tcf) (cents per Mcf) (cents per Mcf)

4. 7 8.8 233.4 23.3 23.5 0.2 31.6 39.9 9.9 17.0 227.8 23.6 24.3 .7 34.6 41. 6 10.0 18.4 222.9 24.3 21'.3 1. 9 39. 7 44. 7 12.8 21.3 220.2 25.0 28.8 3.8 44.8 48. 7 14.9 23.8 219.1 25.8 31.2 5.4 49.8 52.7 17.0 26.3 219. 9 26.6 33.5 7.0 54. 9 57.1 18.6 28.5 221. 7 27.6 35.8 8.2 60.0 62.0 19.2 29.5 223.5 28. 7 37.9 9.1 65.1 67.0 18. 7 29.0 223.6 29.9 39.9 10.0 70.2 72.3 November 6, 1975 EXTENSIONS OF REMARKS 35469

TABLE 2.-ECONOMETRIC SIMULATIONS OF STRENGTHENED REGULATION OF NATURAL GAS

Total Excess New Average New additions to Total Supply of Demands fo1 demand for contract wholesale discoveries reserves reserves production production production field p1ice price Year (Tcf) (Tcf) (Tcf) (Tcf) (Tcf) (Tcf) (centspe, Met) (cents per Mcf)

1972 ______--_- _- ______- __ ------4. 7 8.8 233.4 23.3 23. 5 0.2 31.6 39.9 1973 ____ ------_------9.9 17. 0 227. 8 23.6 24.3 .6 34.6 41. 7 1974 ______------__ ----___ -----__ ------_ 10.0 18. 4 222. 8 24.3 26.2 1.9 39. 7 44.9 1975 __ --_------_------_--- ____ ------12. 4 20.9 219. 9 24.9 28. 7 3.8 42. 7 48.6 1976 ___ ------_-- ---______--_------·------13. 8 22. 8 217. 9 25.6 31. 2 5. 7 45.8 ~2.0 1977 ____ ----______------_____ ------15. 1 24.3 217. 2 26.1 33. 7 7.5 48.9 55.6 19791978 ______--___ --_------__ -- __ ------_- 15. 8 25.4 216. 6 26.9 36.1 9.2 52.0 59.5 15.3 25.2 215. 0 27.8 38.6 10. 8 55.1 63.4 1980 ____ ------__ ------_ 14.3 23.9 211.2 28.6 41.0 12. 4 58.2 67.3

TABLE 3.-ECONOMETRIC SIMULATIONS OF PHASED DEREGULATION OF NATURAL GAS

Total Excess New Average New additions to Total Supply of Demands for demand for contract wholes~le discoveries reserves reserves production production production field price price Year (Tcf) (Tcf) (Tcf) (Tcf) (Tcf) (Tcf) (cents per Met) (cents per Mcf)

1972 ______------__ ------_------4.7 8.8 233.4 23.3 23.5 0.2 31.7 39.9 1973 ______------9.9 17. 0 227.8 23.6 24.3 • 7 34. 7 41. 4 1974 ______--____ ---______------______-- __ _ 10.0 18.4 222.9 24.3 26.3 2.0 39. 7 44.3 1975 ______--____ -- __ -- ______--______-- __ --______---__ -- 16.3 24.8 222.3 26.4 28. 7 2.3 64.7 52.7 1976 ______---- __ ------__ ---- ____ --______-- __ _ 21. 4 30. 5 226.1 27.6 30.4 2.8 71. 7 59.6 1977 ______-- __ ------__ ---- __ -- ____ ---_-- --______------25.4 35.3 233.9 28.6 31.9 3.3 78.8 66.3 1978 ______------30.0 41.1 245.8 30.2 32.9 2. 7 85. 9 73. 7 1979 __ --______---______------______------31. 5 43.9 258.6 32.1 33. 7 1. 6 93.1 81. l 1980 ____ -- __ --_-- ___ -- __ ------______------_____ ------33.0 45.6 271. 2 34.1 34.2 .1 100.3 88.3

It is incumbent upon those who would dia te emergency shortage problem and national ceiling rates to be determined wish us to continue our present policy the long-term supply inadequacy prob­ by the Federal Power Commission. These to explain whether they prefer an in­ lem. Title I allows for the emergency national ceiling rates will be determined crease in reliance on imported oil, or a 180-day purchases of gas in the intra­ by rulemaking based upon four criteria: shortage of domestic natural gas with state market by any interstate pipelines Prospective costs. the industrial havoc that that will suffering curtailments that may inter­ Capital formation for exploration, et wreak. If so, they should be clear and rupt supplies to high priority end users. cetera. outspoken in defense of those policies. These purchases would be allowed at in­ Promotion of conservation of natural If not, then it is time to consider new trastate free-market prices. gas. alternatives. Title I includes a prohibition on the Consumer protection. AN ALTERNATIVE SOLUTION use of natural gas as an boiler fuel, in Protection is included to insure the The other body recently passed the all cases where a substitute fuel can be long-term supplies of natural gas to es­ Bentsen-Pearson plan with strong bi­ utilized, with compensation provided to sential agricultural and industrial users partisan support, 58 to 32. This bill ad­ said users for any economic hardships or to whom alternate energy sources are not dresses both immediate and long-term losses incurred. usable or availbale. needs. It will make additional gas avail­ A provision is included to provide for Long term, gradual phaseout of nat­ able to the interstate markets, pur­ emergency allocation of propane with ural gas for use as a boiler fuel is pro­ chased from the intrastate markets, for price restraints to insure adequate sup­ vided for. the next 180 days. It will lessen the plies of this vital fuel to agricultural and Title II is a sensible and responsible likelihood of long-term curtailments be­ industrial users who have historically long-term approach to the natural gas cause it will allow purchases of new gas used this fuel and must be assured of supply problem in the United States. In­ from onshore production to be made by the availability of adequate supplies at centives are provided so as to increase the interstate markets, whereas at pres­ reasonable prices in order to provide for production in the long term, while the ent, 96 percent of the onshore produc­ and insure the health, safety and welfare gradual phase-in period provides also for tion is goiJ.1g into intrastate markets. It of the nation as a whole. the protection of the consumer and the will, over a 5-year period, deregulate The effect of title I is to help "share economy in the transitional period from offshore natural gas, and thereby will the shortage" and provide natural gas to the shock of rapid price increases which allow sufficient incentives to enhance high priority users on an emergency may accompany complete and total de­ exploration in drilling in this vast area basis. Title I will, in effect, allow the control of all natural gas produced in the for the years ahead. It will lessen imports intrastate gas surpluses to flow into the United States. and will provide stimulus for energy interstate market on a temporary basis needed for a secure industrial base in ln order to help relieve this winter's the years ahead. pending shortage. Estimates are that the This bill passed by almost a 2-to-1 quantities attracted into the interstate PERSONAL ANNOUNCEMENT margin in the other body, and if compa­ market will enable this winter's shortage rable legislation were passed in the to be reduced to the magnitude of last House, would have a strong possibility of year's shortage, barring the occurrence HON. EDWARD P. BEARD becoming law. I have, therefore, intro­ of an extremely harsh winter or some OF RHODE ISLAND duced a bill, H.R. 10480, similar but not other unforeseen acts of God. identical to the Bentsen-Pearson plan. Title II of H.R. 10480 addresses the IN THE HOUSE OF REPRESENTATIVES A summary describing that bill is given long-term supply problem and the severe Thursday, November 6, 1975 below. I offer this bill with bipartisan decline in reserves that has been plagu­ Mr. BEARD of Rhode Island. Mr. cosponsors as a vehicle worthy of con­ ing the natural gas industry in.the United Speaker, due to a viral upper respirat.ory sideration by this House, and, we hope, States for the past 8 years. tract infection, I have been ordered by worthy of adoption by the Nation as a Title II provides for the immediate de­ the House of Representatives physician basis for future natural gas policy. control of onshore "new" natural gas to suspend normal activities. SUMMARY OF KRUEGER NATURAL GAS BILL as this gas is discovered and as old con­ Accordingly, I have been paired with NUMBER H.R. 10480 tracts expire. Congressman F'ERNAND ST GERMAIN of H.R. 10480 is a two title bill con­ Offshore natural gas is to be gradually Rhode Island for the conduct of con,­ structed so as to address both the imme- phased out over a period of 5 years with gressional business. 35470 EXTENSIONS OF REMARKS November 6, 1975 PROTECTING THE AMERICAN CON­ care has not been as great in other na­ of U.S. citizens who opposed the War in SUMER FROM UNSANITARY DAIRY tions and I believe that the danger of Southeast Asia in distinction to the clemency IMPORTS these imported dairy products must be program which by its case-by-case basis is in­ guarded against. The health of the herently discriininatory. We believe amnesty American consumer is the principal rea­ is an essential step in the binding up of our HON. ROBERT W. KASTEN, JR. son for introducing this bill. national wounds. In support of this process OF WISCONSIN we have earlier passed a resolution of support PROTECTION OF DAmYMEN for the Vietnam Era Veterans' Readjustment IN THE HOUSE OF REPRESENTATIVES The second reason is the economic Assistance Act of 1974. Thursday, November 6, 1975 heal th of American dairymen. A signifi­ Mr. KASTEN. Mr. Speaker, today I cant percentage of the cost of domestic am introducing legislation to forbid the dairy products is directly attributable to the sanitary procedures with which our FORMER SPEAKER JOHN W. Mc­ importation into the United States of CORMACK CONTINUES ACTIVE dairy products that are manufactured dairymen and manufacturers must com­ ply. For years the Federal Government WORK FOR MASSACHUSETTS CIT­ under unsanitary conditions. IZENS I have two principal reasons for the has assisted dairymen in earning a de­ introduction of this bill. First, a definite cent living by guaranteeing a fair price threat to the health of the consumer is for their products. With the volume of posed by the importation of unsanitary dairy imports climbing rapidly and the HON. JAMES A. BURKE dairy products. Second, there is an in­ apparent determination of the Ford ad­ OF MASSACHUSETTS creased danger of unfair competition due ministration to negotiate international IN THE HOUSE OF REPRESENTATIVES to the generally lower prices of imported agricultural exchanges, the time has ar­ Thursday, November 6, 1975 dairy products. This low cost is at least rived for the Congress to prevent our dairymen from being priced out of the Mr. BURKE of Massachusetts. Mr. partially attributable to the fact that market by the cheaper imports. Speaker, I often receive inquiries from many foreign manufacturers do not have my colleagues as to the activities of our to meet the expensive sanitary procedures Further, too many imports would tend to develop a dependency on foreign sup­ former Speaker, the distinguished John required of domestic producers and W. McCormack, of Massachusetts. I am dairymen. ply sources which may not always be available or reliable. It would be very pleased to report that former Speaker Basically, this measure would require McCormack continues to pursue an ac­ that foreign nations wishing to export harmful to consumers if domestic pro­ duction slackened, dependence on im­ tive and rigorous schedule on behalf o! dairy products to the United States ports increased and then our foreign sup­ the citizens of Massachusetts, and of the establish a program to guarantee that ply was cut. The dairy needs of America country as a whole. In response to the their dairy products are in compliance ought to be filled by our own dairy in­ numerous requests which I have received, with the minimum Federal standards as dustry, not by the dairymen of foreign I thought my colleagues would be inter­ determined by the Food and Drug Ad­ nations. ested in reading the following speech ministration. There is a need for this legislation, a which was delivered by the former HAZARD TO HEALTH need that has been caused by the in­ Speaker a short while ago on a matter In 1974 the United States imported six creasing number of unsanitary dairy im­ of national importance. times as many dairy products as it ex­ ports. The Congress must assure Ameri­ I insert the remarks of former Speaker ported. Only a small portion of these im­ cans buying dairy imports that they will John W. McCormack into the RECORD ports, even under the best of circum­ only get wholesome and sanitary prod­ at this point. stances, are inspected. Until recently, the ucts. I believe that passage of this meas­ STATEMENT OF JOHN W. McCORMACK percentage inspected averaged 12 per­ ure would be in the best interests of Members of the press: Thank you for join­ cent, but with the increasing amount of dairymen and consumers. ing us this morning. As I stated in my in­ imports and the inability of the Food and vitation to you, this conference ts to an­ Drug Administration to expand its in­ nounce a scheduled, blue ribbon, fund rais­ spection services, the percentage exam­ ing event, the pro-life century dinner, which 6 AMNESTY VIEWS SHARED will be held at the Marriott Motor Hotel in ined is now at approximately percent. Newton on Monday evening, October 27, Of those dairy imports examined, an 1975. This event will be the first of what is average of 10 percent are rejected as a re­ HON. MATTHEW F. McHUGH hoped will be a series of activities through­ sult of unwholesomeness, adulteration, or OF NEW YORK out the Nation as a response to the current mislabeling. Assuming that this percent­ status of pro-life legislation and litigation age of contaminated products is correct IN THE HOUSE OF REPRESENTATIVES both at the State and Federal levels. Allow for imports as a whole, there are literally Thursday, November 6, 1975 me to give you a brief background of that thousands of contaminated dairy prod­ status. Mr. McHUGH. Mr. Speaker, the Cor­ Almost 200 years ago 5 residents of Massa­ ucts coming into the United States on a nell University Senate recently adopted a chusetts including John and Samuel Adams daily basis. These products have the po­ resolution on amnesty which I would like and John Hancock signed a public document. tential of producing adverse effects upon to share with my colleagues. The univer­ They held as "self evident" that "all men anyone who eats them. A potentially se­ sity senate is an elected body represent­ are created equal and endowed by the Creator rious health problem such as this can­ ing students, faculty, and employees of with certain unalienable rights." The first not be permitted to remain unchecked. "certain unalienable right" specified was Cornell University and I believe their the right to life itself. Two hundred years Dairy quality can best be examined at views deserve the consideration of this the primary level, which is the farm, or ago, that noble sentiment was not nor is it body as we deliberate the issue of am­ today, a partisan political position. Nor ts it a at virtually any point in the production nesty. matter of narrow sectarian concern. It is process prior to the manufacture of the Mr. Speaker, I would like to request rather a human concern. Although the right finished product. Once an item has been that the text of the resolution be in­ to life may have been served imperfectly at processed, packaged and shipped, it is serted into the RECORD at this point: times in our history, nonetheless that guar­ extremely difficult to detect potential or anteed unalienable right has been the actual impurities. Effective inspection at RESOLUTION touchstone of this Nation's greatness during the farm is the best way of guaranteeing Resolved, the Cornell University Senate its first two hundred years. that the final product will be free of urges the United states Congress to grant a Sadly for this Nation, it has remained for universal and unconditional amnesty to those our day to witness a constriction and nar­ contamination. The Congress must in­ who face or have suffered criminal or admin­ rowing of the right to life by the judicial sist that foreign producers implement istrative penalties for nonviolent acts of branch of government. An exercise of "raw sanitary and inspection systems at their evasion or resistance to the draft or to the judicial power" in the Supreme Court's abor­ farms and processing plants similar to military or to the war, involving violations of tions decisions in Roe versus Wade and Doe those enforced in the United States. laws and regulations, including especially the versus Bolton placed in unparalleled jeop­ The Food and Drug Administration selective service law and the Universal Code ardy unborn children in their mother's has done a very good job insuring that of Military Justice, and have done so during wombs. Since January 22, 1973, over 2,000,- the era of the War in Southeast Asia. 000 abortions have been carried out in the products manufactured in the United In adopting this resolution we specifically name of material and societal convenience. States are healthful and sanitary. This support amnesty as a pardon to a. large class Of this tragic harvest, no American citizen November 6, 1975 EXTENSIONS OF REMARKS 35471 can be proud and every American citizen quests statewide. PSC has contracted out it the club it needed for successful fisheries who loves this great country must be con­ insulation improvements on more than negotiations with other countries. American cerned. 3,000 fishermen need now to understand the de­ How strange it is that in this State, mi­ homes thus far. gree of success they have actually attained. nor children can be aborted without pa­ In addition, PSC and the Johns-Man­ They cannot afford to overplay their hand. rental knowledge or consent; that the unborn ville Corp. in Denver are working with Last year the Senate, knowing that the child retains the right to inherit property the State of Colorado on a program to House would not take up the blll, voted 68 or sue for damages done to his person while "winterize" the homes of Colorado's to 27 for a 200-mile zone. But the Gravel still in the womb-but his right to life itsell elderly and low-income families. They testimony, casting doubt as it does on the has been supplanted by the mother's so­ have received a grant from the Federal economic need and value to fishermen of called "right" to end that life developing in Government for funds to pay for in­ such a zone, could if properly exploited re­ the sanctuary of the womb. Without ques­ duce that margin and put the vote into a tion, liberalized abortion is the greatest sulation materials. The Public Service realm where the key factor would be whether American tragedy at Bicentennial. Co. and Johns-Manville will provide President Ford exercised a veto. Twice Mr. _ During all of my professional life in gov­ technical assistance and training for Ford has said that he favors a 200-mile limit, ernment, I sought to protect and enlarge local winterization committees. but one achieved by negotiation. On the eve human rights and human dignity most par­ Mr. Speaker, I am very pleased that of a.n election year, he will be under heavy ticularly the rights of the downtrodden, the the Public Service Co. of Colorado has political pressure to ca.st a veto, despite the oppressed-the unfortunates in our society. taken these important steps in en­ country's broad foreign-policy interest in It is therefore consistent with that past couraging its customers to install ade­ avoiding the diploma.tic damage of a uni­ dedication that I now call upon my fellow laterally enacted zone. Sen. Gravel, who has citizens to join with me in this great cause. quate insulation in their homes. We can a. large fishing constituency of his own, has As a caring people, with fidelity to this all help to alleviate the expected nat­ shown him the way. land's traditional concern for the oppressed, ural gas shortage if we work to improve let us raise our voices strongly for those home insulation. who cannot now speak for themselves-the present and future generations of unborn A MOVE TO EMPHASIZE FISCAL children. RESPONSIBILITY INITIATED IN It is with this dedication and for this THE FISIDNG BILL WICHITA purpose that the pro-life legal defense fund was founded and now seeks to raise funds. "This spread of the malignancy of abortion HON. BOB WILSON HON. GARNER E. SHRIVER must be countered by well-organized, intel­ OF KANSAS ligently directed legal effort. It is too high­ OF CALIFORNIA powered to be met only by the sporadic and IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES last minute resistance of a few volunteers." Thursday, November 6, 1975 The pro-life century dinner wlll help to Thursday, November 6, 1975 provide funds for that legal effort and we Mr. BOB WILSON. Mr. Speaker, under Mr. SHRIVER. Mr. Speaker, at a time are privileged to have as our guest speaker, leave to extend my remarks in the REC­ when the Congress has been asked to the eminent Elizabeth Josselyn Boa.It, pro­ ORD, I include the following: "bail out" the financially-ailing New fessor of law at the University of California York City, it is refreshing to note the a t Berkeley, David Louisell who wm speak (From the Washington Post, Nov. 4, 1975) leadership of the city of Wichita, which on "The Life Values and the Law Today." THE FISHING BD..L is in my congressional district, to form Some high-class testimony by Sen. Mike a league of fiscally-sound cities. I hasten Gravel (D-Alaska) has provided a certain to emphasize that this action is not di­ hope that a. bill to unilaterally extend Ameri­ rectly aimed at New York City. One of HOME INSULATION can fisheries jurisdiction out to 200 miles, passed in the House by a vote of 208-101, the basic objectives is to firm up inves­ may yet be slowed in the Senate. From the tors' confidence in municipal bonds. viewpoint of the American interest in pro­ Those city governments, which will HON. TIMOTHY E. WIRTH moting international agreement on issues of join in this new national association, are OF COLORADO the sea, this has always been an unfortunate those which intend, now and in the fu­ bill, one that could not fail to spur similar to IN THE HOUSE OF REPRESENTATIVES unilateral steps by other coastal nations and ture, to adhere stable financial policies Thursday, November 6, 1975 to undermine the ongoing United Nations and good management. Law of the Sea Conference. But it has also I wish to commend the city commission Mr. wmTH. Mr. Speaker, with all of been understood both by supporters and op­ of Wichita and Ralph Wulz, the city the talk about an energy crisis, we ponents that the measure would not be manager, for this important in:tiative. should remember that an important as­ fought out primarily on terms o! interna­ Under leave to extend my remarks in the pect of energy conservation is adequate tional law and the larger diplomatic interest. RECORD, I include an article from the insulation of our homes. Good insulation Rather, the bill was recognized as one em­ Wall Street Journal, October 31, 1975, can save up to 20 percent on heating bodying a deep, desperate and legitimate con­ cern by American fishermen to prevent the which discusses this action: bills and produce significant reductions in continued ransacking of American coastal FISCAL RESPONSIBD..ITY Is THE PREREQUISITE the use of natural gas. fisheries by the high-technology distant­ To JOIN THIS CLUB: WICHITA, KANS., PLANS The Public Service Co. of Colorado water fleets of other nations, particularly GROUP MADE UP OF CITIES THAT MANAGE has initiated a program of free examina­ Russia and Japan. Against this sort of im­ THEm FuNDS WELL tion of the insulation of customers' mediate economic interest--measured in de­ WICHITA, KANs.-The city commission here homes, and has contracted with several clining catches and revenues, and in rising wants to organize a new national association firms who will perform needed insula­ unemployment in the industry-more ab­ of "fiscally responsible" cities. stract considerations have not stood a cha.nee. This week it directed the city manager, tion. Customers will be billed for the in­ Precisely here lies the importance of Sen. Ralph Wulz, to arrange a meeting of all in­ sulation on their regular monthly gas Gravel's testimony. Using new figures that terested and "responsible" cities which, along and electric statements, and can pay on sobered even the most ardent advocates of with Wichita, "don't wish to have their credit the installment plan, if they wish. Local the' 200-mile b11l, he argued that foreign damaged by a few cities which haven't ad­ banks have expressed their interest in overfishing is being reduced, and can likely hered to some of the basic rules of good the program, and have enabled PSC to be further reduced, by the enforcement of fiscal management." It didn't specify any offer a 9.5 percent finance charge for the international agreements already in place of the urban violators. insulation installation, rather than the and by the prompt negotiation of further Some of the preliminary guidelines for agreements. ·The negotiations approach has membership in the as yet unnamed associa­ 13. 75 percent interest normally charged the further keen advantage of not under­ tion include "rigid adherence to a cash basis, on home improvement loans. The Public cutting the substantial American interests a. strict limitation on the capitalization of Service Co. will guarantee all work done, in tuna and other coastal species caught operational and maintenance expenses, strin­ and will inspect each job after comple- within 200 miles of other nations. Past ex­ gent implementation of program evaluation tion to be sure that it is satisfactory. perience has given American fishermen good and performance reporting and prompt fund­ Since the insulation inspection plan reason to be leery of promises of protection ing of retirement system liabllities." by diplomatic negotiation. But recent and The Wichita -city commission said the ini­ began in early September, the PSC has current experience is much more solid. The tial objective of the association would be to received more than 8,500 phone requests threat of unilateral enactment of a 200-mlle ensure investors that members wouldn't "al­ for the inspection service in the Denver fisheries zone did in fact mobilize a pre­ low defaults to occur on (their) debt as a area alone, and more than 11,500 re- viously laggard State Department and gave result of fiscal misman:=i.gement." CXXI--2234-Part 27 35472 EXTENSIONS OF REMARKS November 6, 1975 If cities in the proposed group didn't sub­ at that time. Rather than jump on the band­ and holds a. degree in elementary education. scribe to the "basic rules of good financial wagon a.nd produce weird effects and elec­ Her strong belief in learning is demonstrated management," the commission wamed, they tronic simulations, they created a. freshness by devoting time to the education of young would "risk public expulsion." and regenerative spirit which has never sub­ children in the black community. Her a.11- A city spokesman said invitations in the sided. Their basic approach has always re­ encompassing interest ln people ls expressed form of letters and phone calls would be mained the same ... to honestly reach out, in her musie. made today to a.bout 50 cities of all sizes, speak to, and aim to touch all while con­ "I love what I'm doing. I like to feel that mainly "with good bond ratings." He said the tinuing to grow. This philosophy has resulted these people (the audience) a.re my friends city of Minneapolis had already heard of in five gold records and 10 gold albums dur­ while I'm performing." Florence has many the plan and asked Wichita "not to leave us ing their time on the Soul City and Bell rec­ friends. out." ord labels. LAMONTE M'LEMORE To celebrate, and the 5th Dimension is Lamonte McLemore comes from St. Louis always a celebration, their new a.ssocla.tlon a.nd admits that as far as singing is con­ THE FIFTH DIMENSION with ABC Records and 10th Anniversary, the cerned, he used to hide from glee club and 5th were reunited with their friend from church choir practices, much to the chagrin the early days, Jimmy Webb. Jimmy not of his parents. His ma.in ambition was pho­ HON. WILLIAM (BILL) CLAY only supplied the group with 5 new songs; he tography. He became very successful in that produced, arranged and conducted the new OF MISSOURI area. and eventually had his own fashion Ip. "Earthbound" is an outstanding album magazine. But then singing ca.me into his IN THE HOUSE OF REPRESENTATIVES which not only shows that the group has no life and, although never abandoning his Thursday, November 6, 1975 musical boundaries, but dramatically demon­ camera., he's most serious about his work strates their growth from the balloon days as a. 5th Dimension. Mr. CLAY. Mr. Speaker, some very to their landing on earth. There's the con­ "A performer definitely has an obligation dear and true friends of mine, The Fifth tagious harmonies, discotlnged r&b, funky to his public ... and to leave them satisfied Dimension (are celebrating their 10th forcefulness, gently rhythmic patterns, a means more to a performer than anything anniversary this year. It is only fitting plaintive lnsplratlonal tone, and straight­ else." Lamonte is often referred to as the that a group such as theirs, which has ahead honesty. Furthermore, there's a vigor­ sex symbol of the group and the cool a.id ous attitude and excitement for what's black member who in fa.ct keeps it all to­ meant so much to America at home and a.head! gether, A catalyst with a. quality of warmth. abroad, should be singled out for a spe­ In a moving epilogue, the album stresses Ron Townson is also from St. Louis and ls cial "Thank you." their continuous journey through moods, the classically-trained singer in the group. Record World publication has fea­ emotions and experiences. There's a. quote He started studying voice at the age of 6. tured the group in its November 8, 1975 on the album jacket which sums lt up nice­ He was always a. featured soloist and, while edition. I commend that article to my ly: "The echo of the past is only the sound still in high school, was signed by the St. colleagues, and, therefore, insert it in of an orchestra tuning for tomorrow's per­ Louis Municipal Opera. Later, he traveled formance." with the famous Wings Over Jordan Choir, the RECORD. The 5th Dimension is the sum total of its appeared with Dorothy Dandridge in "Porgy THE 5TH DIMENSION: ANATOMY OF A parts; the parts being five immensely tal­ And Bess,'' then toured with her act and SUPERGROUP ented and versatile performers each with his Nat Cole. Often called the "father figure" (By Richard Oliver) own distinct personality and musical back­ of the group, Ron has a serious outlook on In 1965, they released their first album, ground. Ea.ch is a specialist in a certain area music which reflects his beliefs. He works "Up, Up And Away." In 1975, they returned while remaining an integral member of the with young musicians and believes in the to terra. firma and released their 15th Ip group. power of music. which is also their debut on ABC Records, Billy Davis Jr. ls from St. Louis, Missouri "To me, you can accomplish an awful lot "Earthbound." In between have been 10 where hls early desire for a music career with music, because music has no barriers years of continuous success which defies prompted him to perform anywhere from whatsoever. You can always get to any race, all the "show biz" odds. That first album wedding parties to nightclubs. In the group creed or religion with music. And, this is, to consisted primarily of tunes by Jimmy he's the r&b/pop specialist who delivers the me, one of the best Ambassadors of Good Webb; the same ls true of their current. funk and gets the feet stomping. Much of Will that you can approach anyone with," They were discovered by Marc Gordon who this comes from his early experience in other Huff said. became their manager and mentor; he still groups which were primarily r&b or gospel. THE MANAGER ls today. At one time, he was also the owner of some The success of the 5th Dimension has re­ THE JOURNEY nightclubs in St. Louis. With the 5th, he's sulted from a great deal of careful and stra­ the one with the continuous smile and happy Coming from varied musical backgrounds tegic planning; planning that looked toward face, both on and off stage. It's an honest long range goals rather than "that quick and localities, the group was initially called happiness based on his love of music and The Versatiles. From that title it's obvious and easy" hlt and sudden fa.me. "Quality'' a.blllty to communicate that love from hls has been a. key word. Ma.re Gordon is the that the five singers were set on exploring a heart. variety of styles and approaches. When Marc man behind the 5th Dimension who has "Music ls as much a part of life as the a.Ir made it all possible. He ls the 6th dimension. Gordon heard them, he immediately sensed I breathe. Music is really the key to every­ this and much more. He recognized the Today he has an outstanding reputation thing. Man has never been able to exist for integrity, enthusiasm, and the highset group as a. new dimension in music and re­ without some form of sounds and rhythm." quested that their name be changed accord­ form of professionalism. These values are also That's what Blliy delivers. present in the acts he represents. ingly. Marc brought them to Johnny Rivers Marilyn Mccoo was born in New Jersey who also saw the potential and decided to With the exception of one stint as an and raised in California. Both her parents electromechanical engineer at Hughes Air­ make them his first venture with his newly­ are doctors which gives Marilyn a very prac­ formed label, soul City. The result was a. craft, Marc has directed all hls energies to­ tical outlook on life. Although her goal has ward a. career in entertainment. A native of hit single . prophetically titled "Go Where always been music and acting, she first com­ You Wanna. Go." Los Angeles, he has always been involved pleted her education and has a degree in in theatrical activities from his early school FIRST ALBUM business administration. She is the most days and, at one point, even had his own Their first album, "Up, Up And Away," schooled in contemporary music within the dance troupe. Eventually he teamed with was further indication of the direction of 5th Dimension and ls often the lead singer. Hal Davis, formerly a singer and now a pro­ the 5th Dimension. Co-produced by Johnny She has worked as a. job developer in Watts ducer at Motown Records. Gordon and Davis Rivers and Marc Gordon, Johnny wrote the a.nd ls still will1ng to devote time to projects wrote and produced some recordings and album liner notes: "They're young, hip, tal­ in that southern California community. Set­ then took over the formation of Motown's ented, ambitious, they dig working and are ting her sights on acting, the lovely Marilyn west coast offices. Marc then discovered the always ready to try something new ... it realizes that "I could never stop singing, no 5th Dimension and went out on his own. (the album) was new, exciting, different, and matter what else I do. It must always be an Always very businesslike and objective in it was what we had gone after; it was The important pa.rt of my life." This she projects. the crazy world of show business, it's this 5th Dimension ... P.S. And it's only the FLORENCE LA RUE GORDON quality plus a responsiblllty toward those he beginning I" Although most album notes a.re Florence La. Rue Gordon is both sparkle works with which has contributed to the suc­ in the positive, in this case truer words and sensitivity; . two elements she demon­ cess of the 5th as well as Tony Orlando & were never written. Those words did in strates to the fullest. On stage she's the lively Dawn, Al Wilson, Thelma Houston, and oth­ fact predict the future of one of the most one who not only sings but dances. As her ers. In the case o! each artist, it is the total viable a.nd appealing acts in the current en­ husband, group manager Marc Gordon, says, picture and potential which Marc emphasizes. tertainment world: An act which will no "She makes lt all seem like a. pa.rty." She In this business of volatile personaUttes, the doubt celebrate another decade following ad­ has a voracious appetite for education, both artists o! Marc Gordon enjoy the envia.ble ditional successful exploration. for herself and others. When possible she reputation of being the most pleasant and In the "Up, Up and Away" Ip, t1le i,th fills her hours studying voice, acting, and professional to work with. This ls most likely Dimension created their own trip in the dance. Moving to Ca.llfornla from Glenslde, enhanced by the Gordon Influence. midst of the phychedelia which was the er~ Pennsylvania, she completed her schooling Besides guiding the careers o! his artistll, November 6, 1975 EXTENSIONS OF REMARKS 35473

Marc has his own publishing and production there and "did their thing" with little con­ land, Ruma.nia, and Turkey. It's a tour and company plus a. record label, Rocky Road cern for much else. The 5th Dimension was experience they'll never forget. Records, which ha.s enjoyed a. number 1 single the forerunner among contemporary artists You can look terrlfl.c and love what you're in the country, "Show a.nd Tell," by Al Wil­ of a. carefully planned presentation from doing, but if it isn't in the grooves, then son. He ls presently the executive producer of costumes to choreography to music. They are what's it all about? Since the 5th doesn't the forthcoming movie project, "Boja.ngles.'' a major influence in the on-stage direction of write material, it's necessary for them to THE GROUP most American music performers today. search for good songs which flt their style Music ls their ma.in concern, but its pre­ and philosophy. During their recording ca­ Although comprised of highly lndlvidua.l sentation ls vital a.s a means of setting the reer, they've had the uncanny· foresight of and unique units, the 5th Dimension ls a mood and getting their message across to not only discovering good material, but good group ln the complete sense of the word. a.s wide a.n audience as possible. One of the writers as well. It happened right from the This ls one of the primary reasons they have elements of the 5th "look" is their costuming. beginning with their friend Jimmy Webb. defied the odds by not only remaining in­ Designed by either Boyd Clopton or Michael Because of the 5th Dimension, Jimmy Webb tact with a.II the original members, but like­ Travis, the 5th are always clothed in a unique emerged as one of the most potent song­ wise maintaining a tops in popularity for 10 ensemble of costumes which, as with their writers on the contemporary music scene. years. They have complete solidarity with an personalities, a.re all slightly different yet The same held true when the group organized career and pattern. This ls how united in that total feeling. In many in­ started recording songs written by Laura they live their lives. As Marc has stated, Nyro. She had been a respected but unknown "It's very important to know that the group stances, the appearance is bright and refresh­ ing, just like the group, but, and this ls writer until the 5th Dimension recorded has a very mature look on their career. They "Stoned Soul Picnic." Following that record, are tremendously secure people from a per­ highly complimentary to them, 1f during a. performance they are ready to do a blues or which became gold, Laura Nyro became the sona.I point of view and therefore I don't have hottest new writer ln the music business. to nursemaid them. I'm there to suggest and some other type of serious work, those bright colors never seem to distract from the mes­ This recognition of good song-writing and guide them." performing talent ls also evident in their This relationship of manager and artist ls sage of the song. ON STAGE sta.ge appearances. Again they have helped one of the keys to their continuation. The budding talent receive wider recognition. group ls always open to ideas and listens, but In public performance, the 5th Dimension Mac Davis, Paul Williams, and Bill Withers they don't necessarily agree. They listen with is total entertainment. There's movement were all selected by the 5th as opening acts an open mind and then supply mature logic and music as five people contribute to what when they were virtually unknown. Now ea.ch in ma.king their own decisions. This ls in is guaranteed enjoyment. They're very aware is a headliner. high contrast to many manager/artist rela­ of their responslbllities as stage performers Along with Webb, Nyro, Davis, Willia.ms, tions. In the case of the 5th Dimension, it and thus surround each number with tex­ and Withers, they've performed, and in some amounts to careful planning and democratic tures, nuances and outright excitement to cases had tunes written especially for them­ discussions among six people, all of whom back-up and enforce the presentation of each songs by Burt Bacharach, Tony Macaulay, share the same goal: quality and °longevity. song. The audience receives a. total experi­ The Addrisi Brothers, Lennon and McCart­ As such, they have voluntarily put them­ ence. ney, Mick Jagger and Keith Richards, Tim selves on a. rigorous schedule which ln 1 year One of the highlights of their early stage Hardin, John Phillips, Johnny Rivers, Barry averages 7¥2 months on the road and appear­ presentations was the manner ln which Mann, Cynthia Weil, Lambert & Potter, ing in theatres, clubs, and colleges; 3 months they'd take a song and have individual mem­ Gerald Wilson, Nilsson, Rado, Ragnl & Mac­ devoted to recording; and 6 weeks of well­ bers assume parts in the song's story. This Dermot, Gilbert Becaud, Neil Sedaka, and deserved vacation. was initially displayed ln their unique per­ many more. From such a.n illustrious list, THE TEAM form.a.nee of "Ode To Billy Joe." This novel it's evident that their tastes are wide and Behind the success of most artists is a. and extremely effective treatment of the all-encompassing. team. In the case of the 5th, that team is in Bobbie Gentry song was highly praised for From a musical point of view, the 5th effect a. famlly of longtime members. One of its inventiveness and actually helped in get­ Dimension knows no boundaries and is one the originals ls Rene DeKnight whom Marc ting the listener to understand the message of the most versa.tile mixed groups in popu­ has often called his very important right of the song more clearly. They did this again lar music. They're equally at home with hand man. Rene was the group's "perform­ with a.n orchestrated version of the Decla­ r&b or pop. Their r&b side ha.s not been ing guru" during the developing days and a. ration of Independence and more recently exploited that much, but the "Earthbound" key element in their performing success. Be­ with the operatic Paglia.eel theme. With Pag­ album has changed all that. The sound is sides supplying all the vocal arrangements lia.eel, the group showcased Ron's voice and much more defined as evidenced by their for their in-person appearances, Rene gave set up a. mini-musical play around the song's delivery of a tune like "I've Got A Feeling" the group that most necessary ingredient, basic story. written by John Lennon and Paul McCartney. stage confidence, as he guided their presenta­ A manager has to remain objective about A point in their success is their willing­ tion. his artists and constantly keep them at their ness to tackle anything if the feeling's there. Other longtime and integral contributors peak. In the 5th's case, the job ls relatively But, there's always a consistency in finding are agent Mike Gursey of ICM; Gil Siegel, simple because of their innate enthusiasm. material, not only of mass appeal, but of business man.ager; John Myles, conductor; Still, their onstage act does go through many quality. They know what they like and they Bob Fisher, tour manager; Sylvi Brown, social changes due to the large amount of repeat know what goes hand ln hand with the pub­ secretary; a.nd musicians Bob Oalla.rza., customers. Despite this a.nd despite the fact llc. Add the enormous versatility of the guitar; Lanny Hartley, keyboards; Mel Lee, he's witnessed the act ln action countless members to their unique and identlfl.a.ble drums; Roger "Montego Joe" Sanders, conga; times, Marc Gordon proudly states that "I'm harmony, and, once again, it's those parts and Andrew White, bass. always entertained when I see them. I'm combining into a total concept unit. "Earth­ never bored since each one has something THE CONCEPT bound" proves this in what Marc considers different to offer. I'm looking a.t five different the finest, most exciting and commercfal Besides their highly organized system of people a.nd seeing five different concepts album Jimmy Webb has ever produced. operations, the 5th Dimension ls well in ac­ which are individually exciting, but never TOMORROW cord as to the total concept. From the be­ distracting from the total purpose." This ls ginning they were very conscious of numer­ the key to their magnetisJn which comes For the 5th Dimension, "Up, Up And Away" ous elements necessary to build a.n act; a. across in person or on television be it their gave a sense of the future and constant ex­ presentation both on record and on stage own specials or guest appearances. ploration. This sense has become a. reality which would give them a wide appeal. They As Ron Townson stated, "Music ls the best and promises further adventures built on aimed for an appeal which crosses that elu­ Ambassador of Good Will." The 5th ls a liv­ never-diminishing energies and optlmlsm. sive boundary between teen and adult audi­ ing example of this both at home and abroad. The whole is the result of its parts, the ences. They take their humanitarian responsibili­ melding of the behind-the-scenes and public THE LOOK ties very seriously and do several benefits a elements. Primarily it's the melding of six year. Unlike many entertainers, they don't immensely talented people into a total unit If the 5th Dimension were merely to stand and concept. on a stage without moving or uttering a confine their efforts to a speclfl.c organiza­ word, the viewer would immediately sense a tion or cause. Rather, 1f they feel some­ group of five very ingratiating and warm thing is worthwhile a.nd in need, they go out PERSONAL EXPLANATION people. Again, each has his own presence, but and do it. There is, however, a. special place that feeling between them individually a.nd in their hearts for underprivileged blacks, as a unit comes across to the viewer. This particularly students. HON. ROMANO L. MAZZOLI On the international front, the 5th Di­ .was one of the first things recognized when OF KENTUCKY they were in their formative stage. It was mension has appeared in Japan, Hong Kong, wisely formulated into the group's total ap­ Mexico, and throughout Western Europe. IN THE HOUSE OF REPRESENTATIVES proach. One of the highlights of their international Thursday, November 6, 1975 Today there's a much stronger emphasis by life was when they were invited by the State most contemporary performers to put a. little Department to be musical ambassadors on Mr. MAZZOLI. Mr. Speaker, on No­ more show business into their presentations. a tour through Ea.stern Europe. This mem­ vember 3 and 4 I was unavoidably absent Ten yea.rs ago the 5th Dimension was doing· orable event gave the group the opportunity from the House because of elections in just that in a time when others Just got out to spread its message to czechoslovakia, Po- my State of Kentucky. 35474 EXTENSIONS OF REMARKS November 6, 1975 Had I been present on Monday, No­ LAPD, YMCA, Camp Fire Girls, and fur coats-I wonder how they'd like to be vember 3 I would have voted "yea" on American Cancer Society. skinned? 660 These women are well deserving of the "I have noticed that the reaction to real rollcall No. and "yea" on rollcall fur coats ls becoming nausea on the observ­ No. 661. Citizens of the Year Award. It is my er's part. If a woman wants to wear some­ On Tuesday, November 4 I would have privilege and pleasure to join in the thing that looks like an animal, fake fur ls voted "yea" on rollcalls No. 663, 664, and tribute. the only way to go. 665. "People are putting the whole real fur thing down and I thank God .•• thank God." THOSE WHO SAID "NO" DISCOUR­ Jayne Meadows: "I don't see how you can TRIBUTE TO DAWNE P. GOODWIN AGE PEOPLE FROM USING FURS wear a fur coat without feeling, literally, like AND JANE GILMAN a murderer. It is, I believe, against God's law. Against His whole plan for the universe. ''I feel very sad for women who continue HON. GLENN M. ANDERSON to purchase real fur ooa.ts. They are lacking HON. HENRY A. WAXMAN OF CALlFORNIA in a woman's most important requisites, OF CALIFORNIA heart and sensitivity. IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES "Bravo for the women who are wearing Thursday, November 6, 1975 fake fur. It's the only way to g·o. It's warmer Thursday, November 6, 1975 and everything else. And you a.re happy with Mr. ANDERSON of California. Mr. it because you don't feel guilty in it. You Mr. WAXMAN. Mr. Speaker, on Fri­ Speaker, I am pleased to announce that don't feel like a murderer." day, November 21, 1975, at the Wilshire the Subcommittee on Fisheries and Chamber of Commerce annual award Wildlife Conservation has scheduled a luncheon Dawne P. Goodwin and Jane second day of hearings, November 17, Gilman, copublishers of the Larchmont to supplement the November 18 hearings ELECTION LAW Chronicle will be honored as "Citizens of on legislation I introduced-H.R. 66- the Year." which would discourage the use of pain­ They are being honored for their par­ HON. BILL FRENZEL ful devices in the trapping of animals OF MINNESOTA ticipation in organizations and cam­ and birds. paigns to improve the welfare of the Wil­ One of the ways to discourage the use IN THE HOUSE OF REPRESENTATIVES shire community. The women, who of the steeljaw leghold animal traps is, Thursday, November 6, 1975 founded the Larchmont Chronicle news­ of course, to discourage people from us­ Mr. FRENZEL. Mr. Speaker, below is paper in 1963, have both served as presi­ ing the furs which are the products dent of Larchmont Boulevard Associa­ an article from the Washington Monthly, of these traps. November i.~ue entitled "This Time tion, which they helped found, and as The quotations which follow are from directors and officers of Wilshire Cham­ Everybody's Got a Creep" by Bruce F. five well-known American women who Freed of Congressional Quarterly. I rec­ ber of Commerce. undoubtedly can afford to own even the Miss Goodwin also served as 1975 ommend the article to you as an ex­ finest fur coats, but do not. Here is why: ample of what could happen to cam­ chairman of the reelection committee for QUOTATIONS FROM FIVE WELL KNOWN Councilman John Ferraro. She is a paigns under the new law. I am not as WOMEN pessimistic as the author, but found the former board member and is on the Ad­ Angie Dickinson: "Although I don't feel visory Committee of Portals Mental article a sound warning to all of us. I have the right to tell other people what The article follows: Health Agency. Jane Gilman is head of to do, my respect for an animal's right to the Public Information Committee of live doesn't let me approve of the killing THIS TIME EvERYBODY'S GOT A CREEP Wilshire Community Policy Council and of animals for coats. ( By Bruce F. Freed) a member of John Burroughs Junior "If a woman can help an animal or a child, Jeb Stuart Magruder, former deputy di­ High School Advisory Council. She is a that's the most important thing." rector of the Committee to Re-Elect the director and former officer of Portals Mary Tyler Moore: "The killing of an President, couldn't have been closer to the animal for the sake of the appearance of mark when he wrote in his Watergate mea Mental Health Agency board of direc­ luxury doesn't achieve anything. I have seen culpa, An American Life, that "the signifi­ tors. Mrs. Gilman founded the annual so many coats so much more attractive than cance of the 1972 Nixon campaign . . . has Wilshire YMCA Mixed Doubles Tennis fur-some fake fur, some fabric. It's in the been obscured by Watergate, but its lessons Tournament. design, not necessarily the fabric. will not be ignored by politicians of both The publishers are also members of the "I am aware that there are specific eco­ parties who plan future presidential cam­ honorary board of directors of the Holly­ logical problems, but for me all animals have paigns." wood-Wilshire Symphony Orchestra and a right to humane treatment. As the 1976 presidential campaign gets un­ "Someday, soon I hope, the killing of an derway, those lessons are being studied very Hancock Park Art Council. The pair also animal for fur will hold for us the same carefully by campaign planners. John T. Cal­ compiled and edited "The Farmers Mar­ revulsion we feel, say, when we hear those kins, one of President Ford's top political ket Cook Book." horrible stories about parts of the world aides, openly confesses his admiration of the In the Larchmont Chronicle's 12 year where they open the top of a live monkey's managerial side of the original CREEP. He history the publishers have won awards skull and pour hot lead in because it's calls the Nixon operation "a masterfUlly done from the city, county, State, and numer­ supposed to improve the flavor of the meat." political reelection job despite Watergate." ous charitable organizations for civic Doris Day: "Killing an animal to make a CREEP, he adds, "is an indication of the coat ls a sin. It wasn't meant to be, and we management and accounting organization work. They have campaigned successfully have no right to do it. needed for future campaigns." for safety mirrors in tunnels which chil­ "At one time, before I was aware of the What sinister force has brought the CREEP dren use near school; have initiated the situation, I did buy fur coats. Today when I style back in presidential politics? Nothing Larchmonth Family Fair where 52 chari­ look at them hanging in the closet I could other than the 1974 campaign finance law­ table groups last September raised more cry. the very law that was passed at the behest than $7,500 for their treasuries; helped "It's so wrong for a man to think that of Common Cause to prevent future Water­ start Larchmonth Pet Show; founded the biggest thing he can do for his wife is gates. In an ironic twist, that legislation has buy her a fur coat at Christmas. It's the ended up helping to institutionalize the the Wilshire Chamber of Commerce most evil thing he can do. Buy her a fake CREEP model of campaign organization, a "Youth in Business" Day; secured the fur. They're so beautiful, so lovely, so warm, development that has very serious implica­ city's first off-street parking lot funded so pretty to look at. tions for American politics. by parking meters; prevented sex cen­ "A woman gains status when she refuses to At first glance, the 1976 campaign organi­ ters from infringing in residential areas; see anything k1lled to be put on her back. zations now taking shape bear little resem­ raised funds for a memorial status of Then she's truly beautiful ..." blance to what made CREEP so notorious. Councilman Harold Henry. Amanda. Blake: "The wearing of any kind There are no Maurice Stanses flying around The Larchmonth Chronicle has been of skins-even the kind that are supposedly the country with attache cases scooping up raised for fur, like mink or sable--is some­ Ulegal cash contributions; John Mitchells are cited for its outstanding civic contribu­ thing I just don't believe in. Killing animals not ordering their lieutenants to draw up tions by city, county and State officials for vanity I think. is a shame. plans for spying on the opposition. But cut as well as by United Crusade, Boy Scouts "I feel very guilty about having worn fur away the tainted money and the illegal acts of America, California Hospital Medical coats. As for the women who know about and you'll find in today's campaign organi­ Center, March ·of Dimes, U.S. Army, our vanishing wildlife and continue to buy zations major similarities to CREEP. November 6, 1975 EXTENSIONS OF RE~S 35475 The underlying structure of CREEP ls suc­ which required disclosure of all contribu­ ger. Ben Palumbo, who formerly headed the cinctly described in Jaws of Victory. an tions and expenditures over $100.) Bentsen campaign, sees accountants today analysis of the 1972 presidential election by Like earlier campa.lgn organizations that playing a "bigger role in political manage­ the liberal Republican Ripon Society: "For introduced innovations in strategy and cam­ ment than ever." (Note his use of the phrase the first time in American politics, a com­ paign conduct, CREEP-before Watergate "political management.") pletely centralized national political ma.chine dominated the headlines-was perceived as One obvious problem caused by the rise of was created with direct lines of command the model for future campaigns. It epito­ the political accountant is paying his fees. from Washington that did not rely at all on mized the shift from the political toward the Faced with spending limits and fund-raising local political parties or on local power technical and managerial. Traditional party difficulties, these can be a substantial drain centers for its operational efficiency." loyalists and politicians were replaced by on campaign resources. For example, a Bent­ Indeed, CREEP marked a revolution in po­ technicians and managers, leading the Ripon sen campaign aide recently estimated that it litical strategy and organization. Until the authors to conclude: "The practice and has cost at least $75,000-about 10 per cent 1972 campaign, presidential candidates dealt methods of modern campaigning . . . are of the campaign's total expenditure of $768,- regularly with local and state party leaders rapidly becoming the kind of practices that 000 for the first half of 1975-to meet the and outside pressure groups like organized are most readily accomplished in a ,nana­ accounting and reporting requirements of labor. The campaign organizations were not gerial way.... The day of the volunteer in the new law. In addition, the candidates' monolithic; party and outside groups in­ the management level of Republican politics 1975 campaign finance reports filed with the variably played important campaign roles. is fast disappearing." Federal Election Commission have shown a Most of all, these independent groups could sharp increase in payments to lawYers to act as checks on the candidates. In 1960 the WHAT THE LAW REQUIRES handle the related legal work. Kennedy organization was highly centralized Ripon's pessimistic prognosis was issued But the ultimate price of these reforms and led by skilled professionals like Larry over a year before the passage of the Federal ls much greater than the sum of the costs O'Brien, yet it also depended heavily on local Election Campaign Act Amendments of of lawyers, computer time and accountants. party officials and was never divorced from its 1974-the Watergate campaign finance law. Eddie Ma.he, executive director of the Re­ party's national committee the way CREEP If they'd known what was coming, the Ripon publican National Committee, warns that was. In 1968, the Humphrey organization did authors might have titled their book The campaigns run by accountants "mean you're not control many parts of its campaign­ Age of CREEP. not going to have campaigns any more. You such as the highly effective AFl.r-CIO opera­ Three provisions of the 1974 law have fos­ take an accountant who still has an account­ tion. tered the CREEP modei in the 1976 presi­ ing mentality. He can inhibit this thing to All that changed by 1972. The new politics dential campaign: the contribution and the point that you've got to have three pur­ of CREEP represented a clear break with es­ spending limits; the requirement that can­ chase orders signed in triplicate and a con­ tablished political tradition. Senator George didates have a single, central campaign com­ tract before you do a raily." McGovern had similar autonomy with his mittee to file reports with the Federal Elec­ Managers and accountants, for the most campaign organization, although he had little tion Commission; and the provision requir­ part, are outsiders to the political process choice, since he was abandoned by many of ing the disclosure of campaign contributions and have little appreciation of what politics the local party bosses and organized labor. and expenditures. is or should be about--not just winning elec­ Nixon, on the other hand, deliberately turned This year's campaigns a.re being run in the tions and drubbing opponents but dealing his back on the Republican party and created same highly centralized fashion as CREEP. with public policy questions, seeking to rec­ a new organization-loyal only to him-that That's due to the dictates of the campaign oncile competing groups and strengthening he totally controlled. law, not any strategic decisions by the can­ the parties· as the permanent institutions THE MANAGERIAL TAKEOVER didate. The tight central control and ac­ necessary to hold the political system In its structure and operation, CREEP rep­ counting can be seen in ·au the campaigns, together. resented the managerial takeover of politics. from the big operations of President Ford, TRADING BUREAUCRACY FOR BRmERY The man who gave CREEP its distinctive im­ Alabama Governor George C. Wallace, Sena­ At a time when American politics desper­ print was Fred Malek, a millionaire manage­ tor Henry M. Jackson, and Senator Lloyd ately needs fiex1b111ty, the new campaign fi­ ment consultant who was deputy director of Bentsen; to the smaller organizations of for­ nance law has mandated rigidity. The ex­ the Office of Management and Budget dur• mer Georgia. Governor Jimmy Carter and penditure limits mean that the entire cam­ ing Nixon's first term. Malek left OMB to be­ Representative Morris K. Udall. paign has to be budgeted long before the first come one of the two deputy directors of the While the disclosure requirements and the primary. SJ.nee few candidates can estimate Nixon reelection operation. (The other was contribution limits have made precise ac­ in advance how much money they can raise, Jeb Magruder.) According to the Ripon study, counting essential, the expenditure limits the budgeting process has little simllarity to he "was a strong believer in the application have been most responsible for forcing presi­ business expenditure decisions. This raises of modern and efficient management prin­ dential campaign organizations to maintain two problems. ciples to political organizations and he strict managerial control over every detail First, campaigns in practice cannot be run viewed with disdain the more 'political' types of the campaign. The alternative is criminal as rigidly as the new management model around CREEP. He instituted an incredibly prosecution by the Justice Department. demands and the law stipulates. Certain ex­ demanding reporting system to keep close Ea.ch candidate can spend no more than penditures cannot be anticipated and must control upon the vast range of enterprises $12 million seeking his party's nomination. be made on an ad hoc basis. The very nature beneath him ...." That means that before even one cent is of the campaign process works against neat, CREEP's leaders-both in the campaign it­ spent, it has to be cleared with the central orderly planning. "Campaigns are a messy self and within the White House--were very headquarters. The danger ls if too much is operation," says Rod Smith, executive direc­ much like Malek. They weren't career poli­ spent by zealous campaign workers in the tor of the Republican National Finance Com­ ticians in the traditional sense. They came early primaries, the candidate may exceed mittee. "They operate in an environment of from corporate managerial, public relations, his limit long before the convention. It also uncertainty with little lead time." bureaucratic and accounting backgrounds. means that whoever has final authority over Second, the need for strict budgeting all The Nixon campaign mirrored their values: spending holds the key to complete control but eliminates the candidate's freedom to efficiency, loyalty, toughness, aversion to risk. of the campaign. The law also gives the or­ handle issues that arise late in the campaign. Like many business conglomerates, CREEP ganization the tools to maintain that con­ "You need money at the end to deal with was set up like a ship with many watertight trol-by requiring centralized reporting of late issues and marginal areas," says David compartments. Each subsidiary-and there all expenditures and making the campaign W. Ada.many, the Wisconsin secretary of rev­ were separate ones for labor, "ethnics," Span­ treasurer legally responsible for all financial enue and a campaign finance expert. "But ish-speaking, youth, business, veterans, and irregular!ties. when you budget down to the la.st detail as Jews-was isola.ted from the others, report­ The upshot is that people with accounting the law requires, it precludes a candidate ing only to central command. Snug inside and managerial experience have become in­ from dealing with events over which he has their watertight compartments, CREEP man­ dispensable in today's campaigns, joining the no control. Inflexible budgeting prevents agers, according to the Ripon Society, "con­ media specialists, direct mall experts and politicians from being part of what is hap­ cluded that the parties were generally ineffi­ political consultants who began to supersede pening in society at any given moment." cient, outmoded and totally unreliable." the politicians during the 1960s. The mana­ What this means is that presidential candi­ CREEP took over all of the Republican ger/ accountant's responsibilities are more dates may not be speaking to the immediate party's presidential campaign functions. It mundane and, at the same time, more en­ concerns of the voter. With everything sched­ conducted polling, had its own in-house ad­ compassing than those of other specialists. uled so far in advance, primary campaigns vertising agency, maintained tight rein over He sets up the bookkeeping system to keep may have all the immediacy o! television all the political operations, including volun­ tabs on all contributions and expenditures; reruns. teer activity, and had very little to do with he works closely with the campaign's political Beyond that, candidates are now encour­ the Republican Party nationally and in most director to develop a strategy that meshes the aged by the law to divorce their campaigns states. It also kept strict control over fund­ political timetable with expenditure limits. from all groups they cannot control. To com­ raising and spending by the Nixon organiza­ "The new law has made campaign manage­ ply with the expenditure limits, a campaign tion in ea.ch state. (Bear in mind that the ment dependent on professional accounting organization must make all state and local tighter accounting of money stemmed in part services to an extent it never was before," says party and volunteer efforts subsidiary to the from the 1971 Federal Election Campaign Act, Robei:t J. Keefe, Jackson's campaign mana- central operation. In effect, that means that 35476 EXTENSIONS OF REMARKS November 6, 1975 independently elected and powe.rful state the recent death of Peter Fosco, the and extending the benefits of the Con­ and local politicians are made subservient to general president of the Laborers Inter­ gressional Medal of Honor holders in the national campaign director. Since the national Union since 1968. Mr. Fosco order to help them cope with today's in­ central campaign organization controls all the spending, it does not have to take se­ contributed more than 50 years to the flation is a very small compensation on riously the needs of local elected officials and labor movement, rising from his first our part, considering that these men political leaders, who in the past would be position as an officer in his local union served this country in a manner that put key independent elements campaigning for a. in 1916 to secretary-treasurer of the their own personal lives in jeopardy. It is candidate on their own. Now, they cannot Laborers international Union in 1950 my sincere hope, that after careful study do anything on their own if it involves and then general president of that union, of the merits of H.R. 8913, my colleagues spending money. National campaign staffs a vice president of the American Fed­ will give this bill their full support when have always been despised for their arrogance eration of Labor-Congress of Industrial toward local politicians. Now these attitudes it comes before the full House for a vote. a.re mandated by law. Organizations and first vice president of Richard Kline, Jackson's finance chair­ the AFL-CIO Building and Construction man, sees the changed equation as he goes Trades. a.bout filling Jackson's campaign treasury. His unceasing dedication to the cause DELAWARE LAW SCHOOL "Local politicians can't set up independent of American workers and to their health operations as they did in the past," he says. and safety in particular have already He likens the new relationship to "the ne­ benefited hundreds of thousands of HON. ROBERT W. EDGAR gotiating process between a. national cor­ workers. He lived his life fully, actively, OF PENNSYLVANIA porate office and its local plant managers. creatively, and productively. His suc­ You have to weigh local decisions against a IN THE HOUSE OF REPRESENTATIVES national picture. They'll have to realize that cesses have provided a vitally necessary their state and local operations have to take service not just to American workers but Thursday, November 6, 1975 second place to national needs and the na­ to the whole of American society as well. Mr. EDGAR. Mr. Speaker, I recentiy tional operation. Tb.is will change the old Peter Fosco leaves a heritage of a dedi­ received a letter from Dean Arthur A. relationship between the states and national cated life to inspire us to continue the Weeks, Delaware Law School, respond­ campaigns and will affect politics immense­ proud tradition of serving the best inter­ ly." ing to an extension of remarks inserted The ramifications pf the new law e~tend ests of all the working women and men in the RECORD on September 22, 1975, by beyond the confines of party politics. The of America. Representative SYMMS. Delaware Law law's emphasis on centralized campaign di­ I want to extend my deepest sympathy School is affiliated with Widener College rection may put a damper on middle-class to his Wife, Carmela, his family, and his which is in my congressional district. volunteer political activism, which has play­ many friends for whom this is a time of I wish to insert this letter for the ed an important role in presidential cam­ deep personal tragedy. paigns since 1952. "Local people usually RECORD at this point: want to do certain things on behalf of the DELA WARE LAW ScHOOL, candidate they back," says Herbert E. Alex­ FOR COURAGE IN DEFENSE OF OUR WIDENER COLLEGE, ander of the Citizens' Research Foundation, COUNTRY Wilmington, Dez., October 14, 1975. a lea.ding expert on campaign finance. "But In connection with the statement on the if local committees cannot obtain authoriza­ Delaware Law School, authored by Dean tion to purchase a newspaper ad or a. radio HON. JAMES A. BURKE Emeritus A vins and placed in the CoNGRES­ SION AL REcORD by Congressman. SYMMS, of spot, they will not feel their activities for OF MASSACHUSETl'S federal candidates are meaningful and so Idaho, the following facts should be set forth may focus increasingly on state and local IN THE HOUSE OF REPRESENTATIVES in order to show the present status of the campaigns. The law will make them feel Thursday, November 6, 1975 School: more like lackeys of Washington." In addi­ Apparently Congressman SYMMS of Idaho tion, volunteers can be difficult to control, Mr. BURKE of Massachusetts. Mr. is completely unaware of numerous sallent and control is essential because of the Speaker, I would like to bring to my col­ events which have occurred since the mate­ spending llmlts. leagues' attention a piece of much needed rial in his statement was in any way relevant The drafters of the 1974 campaign re­ legislation, H.R. 8913. This bill which I to this situation. After all, the Delaware Law form b111 thought they knew what .. they previously introduced, deals with the up­ School is located in the Delaware Valley and were doing. With Watergate and its "under­ 1s affiliated with Widener College, which is a ground rivers of cash" fresh in their minds, grading of benefits to recipients of the Pennsylvania institution of higher learning, they wanted a. totally accurate accounting of Congressional Medal of Honor. Ai3 you both institutions being geographically far where campaign money was coming from know, the Medal of Honor is the highest removed from Idaho. It could also be ques­ and how it was spent. They wanted cam­ military award for bravery that can be tioned as to whether or not Dean Emeritus paigns to cost considerably less than the given by the United States. The recipi­ Avina' views as expressed in the article were $60 million spent by Nixon in 1972, so they ents of the award are truly remarkable not disoriented because of personal involve­ set expenditure llmlts. Like most good gov­ Americans who have received this honor ment, even when the situation being dis­ ernment reformers, they had a passion for cussed was current and had some relevance. neat, orderly, antiseptic procedures. To be for "conspicuous gallantry and intrepid­ Since the inspection of the Delaware Law fair, they believed they were ensuring the ity at the risk of life, above and beyond School by the inspecting American Bar As­ renewal of the parties, by allowing them to the call of duty." On April 27, 1916, by an sociation team in January, 1975, the follow­ solicit independent contributions and make act of Congress, the recipients of the ing events have occurred which have ren­ independent expenditures. And they thought Medal of Honor were awarded a special dered the January report and the January they were encouraging the contributions of pension of $10 per month at age 65 for conclusions moot: volunteer time by limiting contributions of life. This pension was not increased at The first relevant event which occurred money. all until August 14, 1961, when Congress was the report of the Council on Legal Edu­ A year from now, when the 1976 presi­ cation and Admissions to the Bar of the dential campaign is over, the reformers may passed legislation to raise the monthly American Bar Association in February, 1975. have been vindicated. But right now, it amount to $100. Not until October 13, This report distinctly passed the matter for looks like they have substituted bureaucracy 1964, did Congress lower the age for pen­ further consideration, after the follow-up re­ for bribery and adding machines for attache sions to 50, and finally in 1964, on Octo­ port, rather than denying the School 1~ cases. While that's an improvement, it's also ber 31, Congress eliminated entirely all accreditation. The Council then directed that a. reminder of how delicate our political sys­ age requirements for pension benefits. Ai3 a new inspection occur. A new inspection, by tem is and how vast are the unanticipated we all know, in the span of 14 years from a. new team, occurred in May, 1975, and the consequences of reform. School was recommended for approval by 1961 to the present, the cost of living has this inspection team. skyrocketed and increased many times The Delaware Law School voted to affiliate over. Although the cost of living has gone TRIBUTE TO PETER FOSCO with Widener College as of June 1, 1975. In increasingly upward, the pension benefits the July meeting of the Council on Legal to the Medal of Honor holders has re­ Education and Admissions to the Bar, the HON. MIKE McCORMACK mained the same. Surely, in light of what Delaware Law School was recommended for these ou~tanding men have done for this approval. The Delaware Law School students OF WASlilNGTON were allowed to take the Bar Examination in IN THE HOUSE OF REPRESENTATIVES country, we are truly justified in raising their monthly benefits, and extending every state in which they applied, except the Thursday, November 6, 1975 state of Pennsylvania., during the Summer those benefits to their widows. Currently prior to approval. Mr. McCORMACK. Mr. Speaker, it there are only 294 Medal of Honor hold­ The American Bar Association, in its was With deep 6adness that I learned of ers receiving pension benefits. Raising Meeting in August, 1975, approved the Dela- November 6, 1975 EXTENSIONS OF REMARKS 35477 ware Law School on August 12, 1975, and the amendments clarify the unclear areas (3) Further, the Soviets are obviously un­ School has been an approved School since and relax some of the restrictive re­ aware that their missile-nuclear weaponry that date. Fina.I conclusion of affiliation took quirements. I understand that this will annihilate the United States 100 times place on August 7, 1975, and the School ls over. According to Melvin Laird and other now the Delaware Law School of Widener means reducing the scope of health serv­ recognized US analysts they are every day College. ices available under HMO plans; how­ with a burning determination v1slbly en­ As a result of all of these actions, 268 ever, I think that this is needed if the hancing their attack and defense capablll­ students were graduated from an approved HMO approach to health care is not go­ ties--in spite of SALT and detente. While we law school on August 24, 1975, and are eli­ ing to wither on the vine. stand still. gible to take the Bar Examination in any Overk111? Where? state or territory of the United States. At a recent luncheon talk to Washington It could further be said that drastic newsmen (sponsored by the American Se­ changes have been made in the institutional OVERKILL OVERSELL curity Council) Deputy CIA Director Lt. Gen­ structure and in the faculty of the Delaware eral Vernon A. Walters quoted from a 600BC Law School and that an entering class of 238 Chinese book, The Art of War: registered as first-year students. One-hun­ "The most consUinmate art ls to subdue dred and seventy qualified students were HON. BOB WILSON your eneinies without having to fight them told that they did qualify but could not be OF CALIFORNIA on the battlefield. The direct method of war accepted this year because of lack of room. IN THE HOUSE OF REPRESENTATIVES is necessary only on the battlefield, but it is The entering students are the largest and only the indirect methods that lead _to the best-qualified entering class since the Dela­ Thursday, November 61 1975 true victory and its consolidation." ware Law School was opened in September, Mr. BOB WILSON. Mr. Speaker, it is In other words, cold war and its propa­ 1971. This was after rejecting 410 appli­ apparent that a complete review of our ganda are more effective than an:ns. Exam­ cants not meeting our high standards. ple: Hitler. The article placed in the CONGRESSIONAL civil defense programs by Congress is If Overkill is disproved every time we put RECORD by Congressman SYMMS gives an al­ vitally needed. And when one compares it to the test what is ·it anyway? Is it a together different picture and does not in­ the obvious increase in Chinese and propaganda weapon? Is it meant to paralyze dicate the viable, approved institution which Russian expenses for their own civil de­ American leadership, to bring that leader­ actually is the Delaware Law School of fense programs to what we spend, it be­ ship to think and act through fear? To lay Widener College. This dynamic American comes plain that our own meager budget the groundwork for nuclear blackmail? Bar Association approved law school should cries out for reconsideration. A comment It would seem that way. In this light Over­ be denigrated by the confused picture pre­ in the November-December issue of kill appears as a deadly emotional phenom­ sented in this unfortunate article. enon. One that requires a blind and smug Respectfully yours, Survive, the American Journal of Civil gullibility that must deftly avoid the cold ARTHUR A. WEEKS, Dean. Defense presents concisely what the So­ harsh light of fact to remain plausible. viets are doing in the way of civil de­ So far it has done just that. fense, facts of which I believe my col­ leagues should be aware. HMO'S: DO NOT LET THEM WITHER The article follows: ON THE VINE OVERKILL OVERSELL GAO STUDY OF MEDICARE The idea of "Overkill" is that if nuclear CLAIM~ PROCESSING war is for all participants so totally devastat­ ing, so universally lethal-and this way a HON. TIMOTHY E. WIRTH number of times over-then any nuclear con­ HON. JAMES C. CORMAN OF COLORADO filct is out of the question. A fatal step. An OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Armageddon. Even for a nation which may IN THE HOUSE OF REPRESENTATIVES have a clear upper Inilitary hand. Thursday, November 6, 1975 Secretary of State Kissinger, CBS Commen­ Thursday, November 6, 1975 tator Cronkite and others in the public lime­ Mr. CORMAN. Mr. Speaker, last week Mr. WIRTH. Mr. Speaker, I support light have reported piously that the USA and H.R. 9019, the Health Maintenance Or­ the USSR now are overarmed to the point of a Government Accounting Office report ganization Act amendments, because being able to destroy one another "17 times was released on the comparative 1973 they will enable coordinated, prepaid over" or "100 times over." performance of the Social Security Ad­ health care to be extended beyond the So peace appears as the only possiblllty ministration and four fiscal interme­ present 157 programs that have received from any sane viewpoint-Soviet, American, diaries in processing medicare claims. help from the Department of HEW Chinese, or whatever. The argument ls at­ With front page exposure on the Oc­ since the HMO Act became law 3 years tractive and has a compelling logic-If Over­ tober 28 Washington Post and national kill is indeed based on fact. syndication, the Post presented the GAO ago. The passage of the HMO Act marked But is it? Let us consider these points: the :first major Federal commitment (1) The latest Pentagon nuclear attack findings in an article, "GAO Faults to a prepaid program of health care ad­ analysis, PONAST II (Post Nuclear Attack United States on Claims Costs." ministered out of community-based fa­ Study) shows that 53.8% of the US popula­ The highlighted finding of the report cilities, with a strong emphasis on pre­ tion survived a simulated 6800-megaton at­ is that the 1973 average cost of a paper ventive, comprehensive services. This in­ tack, Ya of this on urban-industrial com­ bill processed by the Social Security Ad­ novative approach to medical practice, I plexes. It also shows that 94.3 % could sur­ ministration was greater than that of might add, has promoted not only high vive the attack if good civil defense measures four contracted insurance companies. were available. (With a well-developed antl­ Although the response of the Social quality, but also cost-effectiveness. ballistic missile system this figure could be Unfortunately, development of HMO's even closer to 100 % . ) All other studies-­ Security Administration is included in has been painfully slow. The basic dif­ here and abroad-give similar pictures; sur­ the GAO document, the Post largeiy ficulty has been the Federal Govern­ vivability of a significant portion of society ignored their updated figures and ex­ ment's uncertainty in support for this is certain, the figure depending directly on planations. My remarks conclude with an concept. HEW has been slow to generate the quality and quantity of protection that internal memorandum from Mr. Thomas regulations for HMO's; and it has failed the society under -attack is given. M. Tierney, Bureau of Health Insurance to spend all the money that Congress Is this annihilation? Is this the capabllity Director, to Mr. James B. Cardwell, Com­ of killing the citizens of a country 17 times has appropriated for their development. over? 50 times over? 100 times over? missioner of Social Security, describing As a result, almost half of the original Obviously not. Who's kidding whom? And the current operational status of BID's applicants for assistance under the HMO why? Division of Direct Reimbursement. Act failed to qualify. Many others did (2) The gung-ho Soviet civll defense effort SSA reports that in 1973 when the not bother to apply because the regula­ is a prime indication that "Overklll" ts study was made, the claims reimburse­ tions were not complete or were unclear. something qutte else than a concept to be ap­ ment procedure was in the process of Another problem has been that the plied seriously by Russians to Russians. Sen­ change. The Post ignored the improved regulations themselves discouraged the ator Howard H. Baker, Jr. (Survive, Septem­ efficiency of current SSA medlcare claims ber-October 1975) shows that the Soviets­ development of HMO's by forcing them wlth their civil defense effort in high gear­ processing and the more relevant fiscal either to provide services they could not would under the worst possible attack cir­ year 1975 cost figures. Notable, are SSA's afford or to care for people who were cumstances come up with a 96 % survival. cost reductions of around 40 percent for passed over by the traditional health in­ The Overklll theory, if considered at all in processing. surance carriers a.s poor risks. These the USSR, is apparently for export only. It is ironic that the GAO study of the 35478 EXTENSIONS OF REMARKS November o, 1975 cost and efficiency of medicare claims future. For example, we processed 1,097,362 CONSUMER PROTECTION ACT processing fails to give the Social Secu­ bills (includes 443,286 tape bills) in FY 1975 rity Administration proper credit for with practically the same staff that we em­ ployed in processing 498,600 bills (includes HON. JOSEPH L. FISHER some of its very cost efficient automated 210,000 tape bills) in calendar year 1973. The OF vmGINIA processing. This is a decisive factor since FY 1975 unit bill cost in DDR was $4.11 (in­ in 1973 42 percent of the claims sub­ cluding magnetic tape bllls) as compared IN THE HOUSE OF REPRESENTATIVES mitted to SSA were on magnetic tape. In with $9.23 (including tape b1lls) and $12.39 Thursday, November 6, 1975 short GAO examined the comparative (excluding tape bllls) for calendar year 1973. The DDR FY 1975 $4.11 blll costs are lower Mr. FISHER. Mr. Speaker, the con­ costs' of "paper pushing," not claims sumer protection bill is intended to pro­ processing. than both the Blue Cross Plans' average ($4.64) and the commercial average ($5.46). vide a focal point in the Federal Govern­ The GAO study provides an insight to We a.re also. ma.king additional changes in ment for the interests of consumers. the cost efficiencies that could be ex­ our operation, the majority of which will Every day the many Federal regulatory pected from national health insurance take the form of expanded automation. These agencies and departments consider new if the administration is centralized and changes in our claims processing system rules, guidelines, and opinions that have the amount of ''paper pushing" is dras­ will, of course, increase our capability with­ out increasing manpower and at the same an effect on the quality, cost, or other tically minimized. aspect of goods and services that all of The Health Security Act, H.R. 21, time will maintain the integrity of our claims process. us use. As part of their normal procedure, which I have introduced and has the One of the problems we had with the GAO these agencies consult with the producers sponsorship of 100 other Members of report is that they did not give DDR credit of these goods and services before tak­ Congress, was developed to meet these for the portion of its workload that it had ing an action affecting them. It is not two objectives. Under H.R. 21, the claims partially automated and a.re using the $12.39 usually part of the routine for the agen­ would be processed by one organization figure as the cost measure of DDR's opera­ cies to consult with the consumers of the with large volume, advanced data proc­ tion for FY 1973. This was doubly perplexing goods and services. The major purpose of essing systems rather than fragmented when viewed with the report's treatment of and expensive "paper pushing" among the automated workload of Blue Cross Plans the Consumer Protection Act is to cor­ of Chica.go and Maryland; i.e., they included rect this imbalance between producers hundreds of companies. these Plans' automated blll processes in ar­ and consumers. In addition, the Health Security pro­ riving at their unit bill costs while excluding Whatever .the intention of the crea­ gram would provide the same compre­ the DDR automated bill process. tors of most of the regulatory agencies, hensive benefits to all people without re­ Another major problem we had with the the fact is that they work most comfort­ gard to an individual's income and ex­ report is GAO's failure to consider the im­ penses and the benefits would be fully pact of quality review on the number of ably with the businesses they regulate. insured. This program would eliminate units produced. We note that Bernie Trea.­ The role of the consumer has not been the excessive paperwork and recordkeep­ nowski of BOA also highlighted that weak­ institutionalized in these agencies. Late­ ing needed for health insurance plans ness of the report. We believe that the quality ly the regulatory agencies have been of decisions is a. highly significant factor and criticized for becoming too involved in with means-tested benefits and deducti­ have designed our operation to insure com­ too many aspects of the businesses and bles and copayments. Means testing prehensive quality review to the maximum industries they oversee. I believe that the alone would add an ei.timated $2 to $3 extent feasible. We believe the Civil Service establishment of a Federal consumer ad­ billion to the cost of a national health Commission who decided the grade levels vocate is an important step in bringing insurance plan. (and salaries) for DDR staff also considered Administrative efficiency is difficult to quality an essential factor in assessing job the agencies to account for their actions. define. The GAO report -itself made this requirements and assigning appropriate I see the new consumer agency forcing point and accordingly qualified its find­ grades. the other agencies to consider whether ings, but this, too, was ignored by the There are many other biases in the report they are leaving undone that which they some of which we have dealt with in prior should have done and doing that which Post. Much of the costs of administra­ correspondence and discussions but believe they should pot be doing. tion of health insurance is based on the it futile to deliberate further on them. The advocacy function of the proposed nature of the benefit, the location, the Mr. JAMES B. CARDWELL, degree of quality review and the en­ Commissioner of Social Security. new agency has received the most atten­ forcement of financial controls. More­ THOMAS M. TIERNEY, tion in discussions of this bill, and rightly over while no one disputes the ability of Director, Bureau of Health Insurance. so. But the new agency will have other priv~te industry to be efficient, the issue functions, some of which may need to be becomes whether the efficiency is passed modified later. I am particularly dis­ on to the consumer or amassed at the turbed by the provision giving the new consumer's expense to provide greater SUPPORT OF LABOR EXEMPTION agency the power to receive and trans­ profits or higher overhead for the com­ FROM "THE AGENCY FOR CON­ mit consumer complaints. While I can pany. SUMER PROTECTION see the need for the agency to know The letter follows: about the problems encountered by con­ sumers in order to be sure corrective MEMO HON. JOHN CONYERS, JR. action is taken, I think it would be a mis­ GAO Report on Performance of SSA Com­ pared With Private Intermediaries­ OF MICHIGAN take for the agency to get involved in INFORMATIONAL (Frank DeGeorge's IN THE HOUSE OF REPRESENTATIVES handling these complaints. Memo, 10-3-75). Thursday, November 6, 1975 Many consumer complaints arise from I had an opportunity to review the subject local transactions. It would be most ap­ memorandum and felt you would want to Mr. CONYERS. Mr. Speaker, I am propriate for State and local consumer have some more information a.bout the greatly relieved that the legislation es­ agencies-both public and private-to current status of the Division of Direct Re­ tablishing an agency for consumer pro­ work out solutions to these consumer imbursement (DDR). The Division has ma.de tection has finally passed both Houses of problems. I think that the appropriate significant strides since 1973, the period Congress. While I did vote "yea" on the Federal role in this process would be in covered by the report. Unfortunately the final passage of the bill, I was detained by helping the State and local agencies GAO document only touches on the very a constituent matter and was unable to major improvements achieved. through technical assistance and per­ The real problem posed by the report is record my negative vote on Mr. FuQuA's haps small advances. Local governments that it covers a period when DDR was mov­ amendment striking the bill's labor ex­ in my congressional district have estab­ ing from a manual to an automated process emption. Fortunately, the amendment lished consumer protection agencies and during the ensuing transition produc­ failed as it did in the Senate. which are effectively safeguarding con­ tivity dropped while the new system was There is no question that this exemp­ sumers' interests. These local agencies being put in place. Additionally, we staffed tion is warranted because of the special would be much better equipped in terms up to handle an expected workload in 1973 factors involved in Federal agency activ­ of access consumers and producers or which did not fully materialize. This com­ to bination of events resulted in higher unit ities regarding labor-management is­ suppliers and to manpower to handle the costs than we would have liked. sues. It would appear that opponents of complaints. If the new Federal agency We a.re now realizing the benefits of the this legislation have seized upon this becomes deeply involved in consumer changes made in 1973, and we can look for­ necessary exemption as a justification for complaints, I forsee it getting bogged ward to even greater productivity in the opposing the entire bill. down in minutia, and unable to perform November 6, 1975 EXTENSIONS OF REMARKS 35479 its primary function of advocacy. The for us to remember always as a day of peace him. To win the war was not enough. We worst possibility would be the stationing and also to remember the price our veterans must still win the peace. of Federal bureaucrats in cities and paid to win the peace. (By Taylor Ng) counties all around the country clumsily (By Robert Monhelm) And what about those who would never trying to check into consumer problems. Our objective is to observe Veteran's Day come back? What about their legacy to peace Several other changes in the bill are as a day of tribute and respect for all vet­ and brotherhood? A great soldier who fought erans living and dead who served and are in that war and would never come back was desirable to contain the tendency for now serving their country by uniting with Lieutenant Colonel John D. Mccrae. But he the Federal bureaucracy to expand and all citizens throughout the land in celebrat­ left this message from Flanders Fields where money to be needlessly spent. First is ing the Armistice which means the end of he now lies buried. elimination of the requirement that a long hard struggle, a hard won peace. (By Dan Boyd) smaller business firms respond to so­ (By David Falkowsky) In Flanders Fields the poppies blow called interrogatories which after the This program is dedicated to furthering Between the crosses, row on row manner of lawyers and regulators who our awareness of Veterans Day. It is a day That mark our place; and in the sky; make them up, tend inevitably to become of peace and thankfulness. It is also a day of The larks! Still bravely singing! Fly! involved and time-consuming to deal looking into the future and wondering what Scarce heard amid the guns below. with. Smaller businesses are in no posi­ it will bring in terms of peace or war. We are the dead. We associate Veterans Day With the pa­ Short days ago we lived, tion to cope with such forms and should triots of every age in answer to the call of Felt dawn, not have to do so. Second is the elimi­ duty and even beyond the call of duty. We Saw sunset glow; nation, or at least drastic reduction, of think of their famiiles and loved ones, also. And now we lie neath crosses row on row consumer affairs units in most existing Our thoughts can find a common expression In Flanders Fields. in a poem by Josiah Gilbert Holland: Federal agencies whose work would be From fa11ing hands to you we throw the taken over by the new Consumer Protec­ GOD, GIVE US MEN I torch! tion Agency. This would save a consid­ God, give us men! For you to hold it high. erable amount of money by cutting out A time like this demands If you break faith With us who die, duplication. On a third matter, whether Strong minds, true faith, great hearts, ready We shall not sleep- the agency should be able to examine hands. Though poppies grow into the labor element of the cost of Men! Whom spoils of office cannot buy In Flanders Fields. Men! Duty bound who never die (By Jeff Bertrand) producing goods and services, I have to Men! Who live above the fog say that with the labor cost amounting Sun crowned and tall Alan Seeger, was one of the first American to two-thirds or more of the total cost Men! Who give their all. soldiers to see action in France. During the of most things, it makes little sense to For one and one for all. spring offensive, Alan Seeger was hit to die rule this element out of bounds. How can where he fell in the midst of a barbed wire ( By Sam Brock) entanglement, but a piece of pa.per dangling consumers be protected against unneces­ We commemorate Veterans Day and every out of his pocket contained this message: a sarily high prices for autos, TV sets, hard won peace, every effort to overcome poem that was to become the most famous electricity, or transportation if labor aggression, every move against tyranny and verse of World War I. costs cannot be examined? injustice. (By Bob Monheim) So with these reservations and with an We honor this day in tribute to our fight­ ing forces: their families, sweethearts, I have~ rendezvous with death eye to future improvements, I state my At some disputed barricade approval for an Agency for Consumer friends and associates. We pause to remind ourselves that the Armistice means an end When spring comes back with rustling shade Protection. to hostility achieved only by fullest meas­ And apple blossoms fill the air. ures of total devotion, indomitable courage, I have a rendezvous with death and supreme sacrifices. At midnight in some flaming town, HONOR THE ARMISTICE OF When spring trips north again this year, NOVEMBER 11, 1918 (By Michael Turner) And to my pledged word am true We honor all veterans of land, sea and I shall not fail that rendezvous. air. It has been exactly 57 years since the (By Chidchai Sodsawa.ng) HON. CLAIR W. BURGENER first world war ended on the battlefields of We conclude the first half of this pro­ OF CALIFORNIA France. Within an incredibly short time American troops in force broke the 3 and gram with a poem by Denise McCarthy to IN THE HOUSE OF REPRESENTATIVES one-half year stalemate that had soaked the communicate the real message of Veterans Thursd·ay, November 6, 1975 earth of Europe With its blood since the guns­ Day. of August 1914 opened the conflict. (By Michael Turner) Mr. BURGENER. Mr. Speaker, on Around the world universal joy hailed the THE LAND WHERE HATE SHOULD DIE Tuesday, November 11, the cadets and news of peace. The war had been so gruesome · This is the land where hate should die­ staff of San Diego Military Academy and horrible D. H. Lawrence wrote: "All the No feuds of faith, honor the armistice of November 11, great words to describe it had been used up No spleen of race, or fear, 1918, with a program dedicated to all for a generation." Should try beneath our flag to find a place. veterans and furthering our awareness (By Jim Jennings) This is the land where hate should die of national pride in every effort to main­ American strength and spirit went into This is the land where strife should cease tain our integrity as a free people. the war as though the effort would be of Where apprehensive doubt should fly transcendental benefit for all mankind-a Before our flag of light and peace It is inspiring to climb the top of Acad­ Then let the best be ours to give emy Hill, the scene of this great pro­ war that was to end all wars for all time. From March to August, 1918, the Germans For this great land in which we live. gram and be assured the youth of our (By Ray Abrams) country are most appreciative of veteran massed 82 divisions and 5 great offenses all aimed at crossing the Marne River and on to We commemorate Armistice Day and hon­ sacrifices and valiant services to our Paris. For 72 days the Marne River rocked or the hard won peace of World War I. country. under a succ~ssion of major German attacks. We pause as they did in No Man's Land We can only be glad the armistice of "They shall not pass!" became the bi-word on the early !llorning of November 11, 1918 57 years ago is not lost to forthcoming of the allied defenders. The tide began to to keep that moment of stillness a memory generations. turn when the Americans beat their way of an armistice we hope someday will be I include in the RECORD the text of the through the Argonne Forest and in the as­ permanent. We remind ourselves that Armis­ program: sault they added the heroics of the "Lost tice Day or Veterans Day is a day of peace; Battalion and Sgt. Alvin York." "Over the and however high the price, peace is still INVOCATION Top" resounded all a.long the trenches. In­ (By Dan Boyd) our primary goal. Finally, Armistice Day deed, it was the doughboy's cry of victory. draws our attention and homage to all those Almighty God, we commit this assembly in The war had its lighter moments. There is who fought to keep our country free, par­ your hands mindful of your presence at this the tale of the carrier pigeon swooping into ticularly the unsung heroes symbolized best program. We ask that your abiding love and headquarters with an urgent message from a by the Unknown Soldier. This man I never power so encourage and strengthen us as frustrated G.I. which read: "I'm tired of knew. This stranger who is my brother. individuals and as a nation that we might carrying this stupid pigeon" . He lies buried in the Arlington Cemetery . forever be committed to the way of truth and (By Jeff Matusak) to represent all the unknown unheralded light. Am.en. A deeper meaning lay beneath the surface soldiers who died for their country. When he (By Adrien Ma.crlz) of this message: the American mood for died, he had not asked for war; he simply We welcome you. We a.re glad you could peace and for Johnnie to come marching answered a call to duty and fell where the come to our program. This is a great day home again with the horrors of war behind fighting was the worst. They carried him 35480 EXTENSIONS OF REMARKS November 6, 1975 back to the land of his birth, but not know­ REPRESENTATIVE J. J . PICKLE RAPS Commission never completed its study and ing his birthplace, they found a resting place FTC FOR "DOWNGRADING" EN­ never reported back. During my hearings, for him among all the celebrated heroes who FORCEMENT OF ROBINSON-PAT­ I could never get a. satisfactory answer as to died for their country-this unknown sol­ why the report was never made. dier, this stranger, thls unsung hero who 1S MAN ACT, MAGNA CARTA OF Furthermore, during the period the study my brother. SMALL BUSINESS was to be taking place, the Commission wa.s ( By Craig Roll) to "vigorously enforce all sections of the This is the story about a man I never knew Robinson-Patman Act as enacted by Con­ and yet I know all a.bout him. HON. JOE L. EVINS gress." My study indicated the Commission failed to do so. For example, in 1960 the He is dead now a.nd lies in a tomb of pol­ OF TENNESSEE ished marble whose splendor would surprise Commission issued 130 Robinson-Patman IN THE HOUSE OF REPRF.SENTATIVES him greatly. complaints and 45 orders enforcing the Act. Thursday, November 6, 1975 In 1972, two and one-half years after the (By Chet Willia.ms) report by your Committee, the number of And people from everywhere come to stand Mr. EVINS of Tennessee. Mr. Speaker, complaints had dropped to 5 and the num­ here with their heads bowed, their eyes seri­ the distinguished gentleman from Texas ber or orders to 2. Five complaints in a year ous, their hearts filled with mourning for this (Mr. PICKLE) in testimony before the can hardly be called vigorous enforcement. man they never knew. Special Ad Hoc Subcommittee on Anti­ Nor can such a. small number be explained as a. matter of cha.nce--it must be a matter of (By Craig Roll) trust, the Robinson-Patman Act and Re­ design. Because he wore a uniform when he died lated Matters of the House Small Busi­ Our subcommittee looked at a number of they call him the unknown soldier. I think ness Committee has sharply criticized Robinson-Patman cases in close detail, and he wa.s a good soldier ... the Federal Trade Commission for its found a pattern where Robinson-Patman Though fighting wa.s never his business ... lax enforcement of the Robinson-Patman violations were consistently downgraded, or He wa.s a man of peace, I am sure, although Act. pushed into the hidden corners of the FTC he never told me. Representative PICKLE said: building. There ca.n only be a conclusion that (By Francisco Victoria) The record borders on a blatant, adminis­ the Commission has downgraded the Act. Was he born on a fa.rm in the Dakotas? trative repeal of the Robinson-Patman Act It is not my purpose to declare what the Or wa.s it a miner's cottage in Pennsylvania? by the FTC.... There ca.n only be a con­ FTC should do, or should have done, in A tenement in the Bronx, a ranch house in clusion that the Commission has downgraded a.ny specific case. The Commerce Subcommit­ Texas? the act. tee did not do this in our investigations, and A duplex on Park Avenue? I wlll not begin today. FTC cases begin as Congressman PICKLE also asserted that complaints, and are definitively determined ( By Craig Roll) the dropoff in enforcement of the Robin­ in the adjudicative process, not in Congres­ Was he a poet? Bookkeeper? Truck Driver? son-Patman Act came during the Nixon sional hearings. At the same time, individual Who in God's name was he? administration and that the Ford ad­ cases provide histories which a.re examples (By Chet Williams) of what the FTC is doing, or not doing in ministration is talking about outright re­ following the Congressional mandate to en­ Surgeon? Lumberjack? Errand Boy? Stu­ peal of this Magna Carta of small busi­ force the Robinson-Patman Act. dent? nes3. My testimony today is a short report on (By Fred Davis) Because of the excellence of this state­ those cases. The recitation of the cases will Wa.s he telling a joke? Cursing his ser­ ment from the gentleman from Texas, paint a. big picture-one that does not geant? Writing to his family? who is well informed and knowledgeable present a. pleasant future for the sm.a.11 busi­ When the bullet came. I don't know. For on this matter, I place in the RECORD nesses of America. when they picked this man ... herewith his testimony made the sub­ Before turning to the specifl.c, I want to to clue the Committee in on one major point. (By Chet Williams) committee on last Wednesday. The Commission, in order to placate crit­ F;om among all our nameless dead, he was The statement follows: ics, both the "legal eagles and big busi­ lying quiet in a. closed coffin a.nd known only STATEMENT OF J. J. PICKLE BEFORE SMALL ness moguls", like to hold back from the to God. BUSINESS COMMITl'EE dull, unnoticed Robinson-Patman cases. In­ But I do know he is deserving of honor Mr. Chairman, I want to thank you and stead the FTC likes to grab the headlines and respect .. . the members of your committee for asking with tough talking press releases proclaim­ (By Ma.sash! Okubo) me to be one of your first witnesses in your ing the advent of another FTC trust-busting For whatever he may be, I feel sure he investigation into the Robinson-Patman Act, structure case-or the Sherm.an Anti-Trust must have believed as I do in the equa.Uty the wa.y the Federal Trade Commission en- Act case. But Mr. Chairman, that's all the of men. ·forces it, and recent proposals to repeal the FTC gets, as the big cases are hard to Act. complete. (By Fred Davis) I hope I can help you in this study be­ Meanwhile the FTC has at its disposal a The promise of men, the duty of men to cause during the 93rd Congress I reviewed tool to prevent monopolles from formlng­ Uve justly with ea.ch other a.nd with them­ these matters in great detail. As ranking tha.t is the Robinson-Patman Act. The mes­ selves. majority member of the Specla.1 Subcommit­ sage ls simple--the Robinson-Patman Act to And that ls why I stand here with my hat tee on Investigations of the House Commit­ prevent monopolies, and the Sherman to bust in hand, reverent a.t the grave of the stranger tee on Interstate and Foreign Commerce, I them up. who is my brother, my father, my son, my chaired a number of both open and closed Another good example that the Commission countryman and my friend. hearings examining the FTC's work in en­ is not getting the message is the Borden (By Bobbie Ratcliff) forcing the Act. Pa.rt of this work neces­ case. In July 1974 the Commission issued a If you break fa.1th with us who die, sitated participating with the subcommittee We shall not sleep, though poppies grow tn staff in preliminary and follow up investiga­ monopolization complaint, or a. Sherman Flanders Fields tions. complaint, in this case alleging domination To you from falling hands we throw the My special interest in the whole area., of the lemon juice industry by Borden with torch! however, goes back at lea.st six years when its Rea.I Lemon brand. According to the com­ For you to hold it high. I first started following the FTC beer case. plaint, since a.t least 1965 Borden ha.s used So I feel personally involved in the issues the following unfair practices in maintain­ Mt. Surabachll The flag ·ls up. United facing your Subcommittee. I am also very ing a monopoly power in a noncompetitive states Ma.rtnes of the 4th and 5th Divisions grateful to you Mr. Chairman for providing marketing situation: (1) granting selective have ta.ken the la.st Japanese stronghold of the leadership in bringing the importance of price reductions; (2) selllng Rea.I Lemon be­ the vast Pacifl.c. It ls the 17th of March the Robinson-Patman Act to the forefront. low its cost or at unreasonably low prices; 1945-V.E. Day ls exactly two months away But just as my bold amigo ls blunt about (3) granting selective promotional allow­ a.nd in fl.ve more months V.J. Day and the his feelings, I want to be frank about my ances or concessions; (4) inducing selective Armistices of World War II closes another feelings on how the FTC is enforcing the customers to reduce their retail prices on chapter of: One nation under God, indivisible Robinson-Patman Act-the record borders on Real Lemon by granting special price reduc­ with liberty and justice for all! a blatant, a.dminlstrative repeal of the Robin­ tions or special promotional allowances or Old Glory long may it wave, o'er the land son-Patman Act by the FTC. Mr. Chalrma.n, concessions. of the free and home of the brave: Red !or five years ago your committee issued a. re­ I cannot say one way or the other whether courage, White for liberty, Blue for loyalty. port which called for the Federal Trade Com­ these allegations are true in law. But 1f they Uncommon valor was a common virtue. We mission, among other things, to study the a.re, these very actions Borden allegedly com- . salute you: Veterans of the United Sta.tea Robinson-Patman Act and to report back to mitted to create a monopoly a.re also a vio­ of America. the appropriate committees of Congress. The lation of the Robinson-Patman Act. Would tt November 6, 1975 EXTENSIONS OF REMARKS 35481 not have ma.de more sense to stop the process Director indicated his disapproval of the 46- Ward, denied strongly that there was a policy of monopolization with an R-P action in­ page memorandum recommending RP action. at the FTC to ignore Robinson-Patman cases. stead of waiting for the monopoly to become Discouraged, the staff attorneys changed He stated firmly that his attitude was to in­ finalized? the proposed complaint and ended up with a vestigate vigorously and let the chips fall THE BEER CASE mlld slap on the wrist for what seemed to be where they might. substantial violations. I have attached as an His stated view was to enforce both the For the past 6 to 7 years, I have attempted exhibit to my testimony an outline of what RP cases and structure cases. to follow the progress of the FTC investiga­ the staff proposed and of what the FTC In my opinion, the la.ck of RP cases tion of the beer industry. Before the hear­ finally accepted. brought in the early 70's has to be com­ ings, I had the general impression that one To me, this ls an indication of the anti­ pared to the stated position of Mr. Ward. word could describe the FTC's handling of RP bias at the FTC. The admonition of a former cabinet mem­ the beer case-ineptness. After the hearings, Mr. Chairman, I want to point out to you ber might be in order here--"Don't Judge us I would use one word-ineptness-and I and the media how Robinson-Patman viola­ by what we say, but what we do." would throw in a touch of bias against RP tions hurt the consumers. Before summing up on all of this Mr. cases. Our Committee records will give an All of us are aware of how high food ls in Chairman, I want to make some observations idea of the time spent on this case since the Washington, D.C. area. In fact, the FTC based more on what my sniffer tells me than 1965, but in early spring 1972, after four made headlines in our local papers, and re­ anything directly printed in the hearing rec­ years of RP investigation, the decision was ceived good TV coverage, when the FTC told ords. ma.de to make the beer investigative lead into the world it was going to bust up an alleged The drop off of the Robinson-Patman Act a. structure case, or a. Sherman case. So ob­ supermarket monopoly in the D.C. area. cases occurred with the advent of the txon viously we see an example of years of mis­ How?-By seeing if a structure case was Administration. Now the Ford Administra­ directed investigation give way to further justified. tion ls talking about out and out repeal of delay by seeking a structure case. The D.C. market ls very concentrated with Robinson-Patman. My own research since the hearings one two firms holding over 60 percent of the Also in the early 70's, a lot of thinkers in year ago indicates the atmosphere of snail's sales, with the 60 percent increasing. the ivy-covered towers lead the growing con­ pace has not changed. The investigation still No other firm has more than 7 percent of sumer advocates down the primrose pa.th of struggl~s. and I assume it struggles in an the market. specious thought. This pa.th leads to the con­ attempt to make a structure case. There are no wholesale grocers in the D.C. clusion that consumers would benefit by the Meanwhile, another Director of the Bureau area. repeal of Robinson-Patman coupled with of Competition has left the FTC, and if past Now back in 1966, eight years before the greater enforcement of the Sherman Anti­ experience holds, the beer case investigation FTC grabbed the headlines on how it was Trust Act. wlll be further delayed. I am advised that the going to investigate the D.C. supermarket The unknowing, unwitting, coalescing of case will be actively pursued. I will also note monopoly, it seems that a rather strong case big business and consumer advocate resulted I have read in the press that the securities could have been made that Giant and Safe­ in the silent repeal of Robinson-Patman and Exchange Commission has started an in­ way foiled the entry of another chain to the over at the FTC. formal investigation of Schlitz Brewing Com­ D.C. market with actions looking like Robin­ And, Mr. Chairman, our Subcommittee pany. The SEC is interested in rumors that son-Patman violations. hearings on March is, July 18 and 23, 1974, the Company paid retail accounts money to The cha.in was a New Jersey operation raises some even darker suspicions. As you handle Schlitz products. called Shop Rite. and your staff read over the hearings I In all probabll1ty, a RP action could have Shop Rite acquired two locations, one in chaired, the combination of pressures to drop been brought three years ago and predatory Langley Park and the other in College Park. R-P cases, or to weaken them, and possible pricing might have been checked. About 4 weeks before Shop Rite opened, non-FTC interests, conflicts and pressures This ls not just an opinion. In February, Safeway and Giant lowered their prices in occurs too frequently for comfort. 1972, a Federal District Court in Houston their stores surrounding the Shop Rite lo­ I'm not saying this to darken the RepubU­ (Pearl Brewing Company v. Anheuser-Busch, cations. cans, as it has been my experience that Inc. 339 FS 945 (Eastern District Texas)) When Shop Rite opened, Safeway and Congressional Republicans are good friends stated indictum that evidence did exist prov­ Giant continued the big sales, but mind you, of Robinson-Patman. And besides, the dar­ ing Anheuser-Busch, Inc. had violated the only in their stores surrounding the Shop lings-the famous consumer advocates--of Robinson-Patman Act by predatory pricing Rite locations. the Democratic left have been a foe of Rob­ practices. Within two months, Shop Rite closed down inson-Patman. Instead, and despite the observations of a and left the D.C. area. During our questioning, I'll be more than Federal Court, the FTC decided after years of There is a footnote to this which ls humor­ glad to go over these cases in more detail, work to seek a structure case. By the time ous, but also typical of predatory business and reveal some of the problem areas as I one ls developed, the RP violations may practices. Giant was the landlord of one of see them. have driven all the regional brewers out of the Shop Rite locations. On opening day, business. The printed transcripts of our Giant decided to black top the Shop Rite SUMMATION hearings will give a full record of the delays. parking area. The mess did not make for a In sum, I have the opinion that the Rob­ But let me say that the action of the FTC very successful opening day. inson-Patman Act has been effectively, re­ in this case has been one of continuous per­ So, the shopper received for 3 months low pealed by the Federal Trade Commission. sonnel changes, stops, starts, and restarts, prices a.t Safeway and Giant in the Langley The reasons for this ls that the so-call~d sloppy files, and delay, delay. Park and College Park area. But when the consumer experts, Ph. D. economists, and KROGER CASE competition folded, the shopper was back on legal eagles feel the RP Act ls old-fashioned the meat hook of a. noncompetitive situation. and harms the consumer when enforced. This One of the most popular views in American Instead of big talk about the FTC investi­ outside attitude towards RP cases has ta.ken thinking ls that high food prices are the gating supermarkets for Sherman Act viola­ hold in the FTC. fault of the huge supermarket chains. I do tions, the American consumer would prob­ I recognize that structure cases, of the so­ not know whether this is true or not. ably welcome some RP cases that might pre­ called monopoly-busting cases, grab the I do know that the FTC received a great vent supermarket monopolies from being deal of mileage out of press releases that headlines and keep Congress at bay. I also formed. recognize that superficial arguments can be were issued almost simultaneously with my rrr-CONTINENTAL BAKING Subcommittee hearings, with big talk on made that predatory pricing practices bene­ investigating possible Sherman Act viola­ If there was ever an example of what the fit consumers. tions by the supermarkets. Robinson-Patman Act tries to prevent, it is But the fa.ct remains that until Congress The hearing record shows that the truth is certainly evident in Old, Homestead and In­ repeals the Robinson-Patman Act, the FTC the FTC staff had sought RP actions against terstate Brands v. ITT. This case, involving should enforce it, regardless of what non­ a large supermarket chain before the widely a.n independent bakery in Denver, Colorado, elected experts think. publicized press releases. shows that by predatory pricing tactics, Old I don't think any savings are passed on to Homestead was forced out of business by the consumer in most instances of preda­ In fact, in July, 1972, a 46-page memo­ ITT-Continental Baking. Two days after Old tory pricing and when the lower prices are randum was submitted to the Director of Homestead people went out of busines, ITT passed on, it ls temporary until the market the Bureau of Competition recommending raised its prices by 12% and did a.way with monopoly is established. RP action against the chain. all discounts. Despite the fact that this case Finally, the lesson here is that the Con­ Again, it is not necessary to go into the became final in March of 1973 and the FTC gress shoUld either force the FTC to enforce detalls, as the hearing record will provide had the necessary evidence, it did not issue Robinson-Patman, or just repeal the law. a full review. The highlights a.re: The Bu­ its complaint until a year and a half later. Paying lip service to RP results in charades reau Director held the memo for several I might add that the FTC had evidence that that create false hopes among the small bus­ months and then instructed that FTC staff such action by ITT was occurring elsewhere inesses in America, and in turn, those who do attorneys discuss a consent agreement. si.nce it had been investigating the matter not want to see the market place monopo­ When FTC staff attorneys reported that since at least 1971. lized. the supermarket chain wouid not accept a In conclusion, I must note that the for­ HopefUlly, we will not allow the discoveries meaningful consent agreement, the Bureau mer Bureau of Competition Director, Alan of the FTC oversight hearings to fade away. 35482 EXTENSIONS OF REMARKS November 6, 1975 ATTACHMENT I While on recruiting duty, I went on the of the Navy to have just what we now have PROPOSED ORDER air, not once but many times stressing the would be at least five times the cost we opportunities in the Navy. The amount of have now. I. Kroger to cease and desist forever violat­ retirement pay a man would get after twenty The services are making a. decision toward ing Clayton and Federal Trade Commission years or longer, and how if the pay was ever the Union, as they think they need some Acts by: increased, the retiree would automatically one to look after their benefits, and to stop ( 1) inducing or receiving from supplier get the increase. This was on station WDAE, the erosion of these benefits, as their bene­ anything of value not available on propor­ and WFLA in Tampa, Florida.. In trying to fits erode Congress puts up money, for such tionately equal terms to other buyers; cut out the commissary, and the exchanges things as a special fund to find out why (2) inducing or receiving agency compen­ they hit several spots at once and a. bigger people fall in love, and information concern­ sation rates, discounts, rebates and allow­ fight has arrived. For this hits the active ing the sex life of the African Frog, and not ances not avallable on proportionately equal service and the retiree, who depends on these content with this they also put up money to terms to other buyers; services, and this also was promised to the check the llfe of the Polish Frog, and then ( 3) inducing or receiving net price below man when he entered the service. Our hospi­ they spent two million to give Tito a yacht, that provided by supplier to other buyers. tal and other services have been curtailed. three hundred seventy-five thousand went II. A. For 5 years, Kroger not to accept Those over sixty-five have been removed from to study the Frisbee, one hundred tyenty-one any discount, etc., unless supplier in writing cha.mpus. If social security goes up, an thousand went to find out why people use ( 1) advises has made identical offer to each amount equal to the raise in SS is removed the word ain't, (you certainly do not have to competitor, or (2) states names of each com­ from widows and other pensions. The burial be educated to find out, or to use the word peti~ reeciving proportionately equal offer privileges in the Arlington Cemetery have ain't.) and another fortune was raised and and its terms. been removed, without supplying recourse to spent to find out why children fall off of B. Keep file of all accepted offers in alpha­ any other cemeteries. Our best hospital in tricycles. (Any fourth grades could have told betical and chronological order by supplier Washington, D.C., has been taken over by them that it was the law of gravity, this for FTC inspection on 10 days notice. Congress and all the other big wigs, yet still was found out by a. guy that got hit on the III. For· 5 years, each division to operate manned by Na.val personnel. They are now head with an apple}. Yet not one has put a. autonomously in purchasing for resale with­ going at taxing the man on disability pen­ bill into the process to find out why the in division ( centralized price bargaining pro­ sions. Many other of our fringe benefits of service needs a. union, they should k!J.OW the hibited). which we had grown accustomed and a.re ours answer to that, "it is to protect their in­ IV. Refund, $549,212,365. by law a.re being eroded. These fringe bene­ terests from Congress" and that's the rea­ FINAL ORDER fits were made lawful, and provided by law son a study is not needed. Congress is very I. For 5 years, Kroger to cease and desist by Congress and by the President to be rea­ quick to vote themselves more money in from viola.ting Federal Trade Commission Act sonable and proper a.s remuneration for salaries, and in fringe benefits, last year it ( only) by inducing and receiving promo­ services rendered to our Government. Such cost one point three mlllion just to keep a. tional allowances, etc., solicited by Kroger benefits as the one percent add on to the Congressman in Washington for three days in connection with special promotions origi­ cost of living index, is under consideration a week each year, now with their new raises nating with or sponsored by Kroger. to be dropped. These little whacks at the it is close to two million a year. II. For 5 years, keep file on above. benefits sometimes go unnoticed, or so those The cost of all these fringe benefits that III. Refund, $22,000. who propose them hope. The Secretary of the they keep piling onto themselves are com­ Department of Defense tried to outlaw the ing out of the pockets of the serviceman, the word eroded in connection with the fringe veteran and the retired. A Navy man is away benefits, but no other word in the dictionary, from home two hundred and more nights a. UNIONIZATION OF THE ARMED fits so well what is happennig a.s the word year, sometimes six months at a time, his eroded, to these benefits. family lives where they can, usually in slums, SERVICES I would like to return for a. moment to the travel is costly, they pay taxes on their pay, recomputation of pay for the retiree. Even if to the Federal Government and also to many recomp was to return, the Government would States, in some cases to two States, and to HON. ROBERT W. EDGAR pay out only nine months pay a year to the cities, while our Congressmen have a nice OF PENNSYLVANIA recomp, a.s the other three months of the year easy job, five hours a day, three days a week, IN THE HOUSE OF REPRESENTATIVES in pay would be returned to the Government a pension after fl ve years, while the service in taxes. All of the retiree pay earned over the serves in war, and does from twenty to Thursday, November 6, 1975 years, and thru all the wars all repeat all of thirty years to get his, and not to forget, it is taxed. If you are a railroad man and being shot at in the front lines, well we a.re Mr. EDGAR. Mr. Speaker, today I am never went into danger, or to war, was at in peace time, yes I volunteered in peace introducing into the RECORD testimony home every night with your family and time, but still ended up in four wars before that I received from a number of veter­ earned a good salary, you would receive a my retirement on twenty-five years of serv­ ans organizations in my district. The tes- pension, paid for by the taxpayer (much ice, I volunteered for it, yes, but the Con­ . timony was presented at hearings held greater in proportion to that which the serv­ gressman did not volunteer, they went beg­ at Monsignor Bonner High School in iceman received, who placed his life on the ging for the job, and then after getting the Drexel Hill, Pa., on Saturday, October 25. line for his country), for the same a.mount job they misuse it. The speakers who testified had many of years and this railroad pension is not tax­ Congress is supposed to be a servant of able. The service man who fought overseas, the people, the people pay them with their interesting observations and suggestions. and pays taxes on his pension, is helping to taxes, that makes the people their employer, It was helpful for me to be able to sit and pay for the railroad man's pension. Why? Be­ yet the employee not only tells the employer listen to the concerns of these veterans, ca. use the railroad ha.s a strong union. how much money he will be pa.id, he de­ and as a result I have come to better I would like now to dwell on some of those mands, his pay and forces the employer to understand their needs. For this reason, things that will happen if the service gets pay him the amount that he himself I would like to share this testimony with a union, discipline, loyalty, integrity, zeal, sets and makes it into law. Congress has my colleagues in the House: will all be things of the past. No more will something much better than a union, and officers say do, they will have to say please the services have just about made up their TESTIMONY BY ORLANDO J. PURDOM, do, and explain why it needs to be done. Can mind that the only way to combat injustice, LIEUTENANT USN RETIRED you imagine an officer trying to get his gun is to hire a hall, a union hall. This is why our I wish to make my remarks to and con­ crew to fire a gun at another ship, and they services may unionize, and they will unless cerning the unionization of the armed serv­ ask him why? Since service people are on Congress a.wakens, a.nd moves to thwart ices. This unionization of the armed services duty twenty fours hour a day, the day will this movement. If we get a. union in the is something which if it should come about, have to be divided into three separate crews, services we will no longer have a Congress, we may all live to regret, and yet if it should this will require much more housing, and an for we will be under the demands of a union happen, the blame for it will lie directly at increase of three times the people now re­ service, to which Congress can no longer the feet of Congress. For it is in Congress, quired to do any job. Each ship will need dictate. The services will run the Govern­ where they keep cutting away at the fringe three crews, and on an extended cruise, will ment, and this country with a government, benefits of the services, retirees and veter­ require sending the married men home to by the people, of the people, and for the peo­ ans. They keep whittling away, first here their wives every night, massive ships will ple, will have perished from the earth. than there, in order to keep the veterans or­ have to be bullt to carry these extra. men ganizations in a whirlpool, not knowing along so that the shios can change crews TESTIMONY BY JAMES V. GILL, PAST VICE where they will strike next. In nineteen fl.fty­ every eight hours. As things stand now, even COMMANDER, PENNSYLVANIA DEPARTMENT OF eight they took away the retiree benefits of in port the men aboard ship stand twenty­ AMVETS recomputation. Since this wa.s against the four hour duty aboard every third day, the AMVETS, retiree only, the veterans organizations did men are in three sections, since three crews Morton, Pa., October, 1975. not get together to make a fight of it. And would be required, two of the crews would Perhaps I should begin by explaining who, since then they have been attacking one spot have to be put up ashore, if no other facili­ and what AMVETS a.re; Our full tit le is at a time using the technique of divide and ties are available, the union would require American Veterans of World War "2", Korea., conquer. suitable motels or hotels for them. The cost and Viet Nam. We were formed in 1946, Ours November 6, 1975 EXTENSIONS OF REMARKS 35483 ls the last Congressional Charter· issued for qua.te as they now stand; though we feel through a one-time recompensation of bene­ a Veterans Organization by Congress, and we must object to the measures being con­ fits based on active duty base pay (S. 1702). signed by the then President Harry S. Tru­ sidered to treat Armed Forces Disability 7. Equalize the competitive salaries of VA man in 1947, and we are justifiably proud of pay as Taxable income. doctors, dentists, and other medical person­ our 30 years of Service to Veterans and their We oppose changes designed to get rid nel with that of similar positions in the families. of improprieties in "Sick Pay" income tax Armed Forces (S. 1711). My name is Jim Gill, Past 1st Vice Com­ exclusion by eliminating deductions for mander of the Dept of Pa. and present Dept. "Sick Pay." VA AUTHORITY OVER VETERANS PROGRAMS P.R.O. Presently also 1st Vice Commander We oppose including "Service Connected The Veterans Administration is an inde­ of AMVETS Post #118 in Morton, Pa. Military Disab111ty Pay for Armed Forces pendent establishment in the executive We, the AMVETS have been much con­ as Taxable income. branch of the Government, especially cre­ cerned for the past 2 or 3 years in having The Law specifies that V.A. Disability ated for or concerned in the administration the Valley Forge Military Hospital converted Benefits are Specifically Exempt from tax­ of laws relating to the relief and other bene­ to a home for Needy and Indigent Veterans, ation. fits provided by law for veterans, their de­ and their dependents. This shows discrimination between Mili­ pendents, and their beneficiaries. The General Services Commission has tary, and V.A. Disability. We feel that both The Administrator of Veterans Affairs, ap­ granted the Hospital property to the State should be Exempt, from taxable income. pointed by the President of the United of Pa. but the State has to procure the fi­ We feel that restrictions should be dis­ States, by and with the advice and consent nancing. On June 25, 1975, State Senator continued on burials at Arlington National of the Senate, is the head of the Veterans John J. Sweeney, of Delaware County, Pa. Cemetery. This also constitutes discrimina­ Administration. was the prime Sponsor of a three part Bill tion on certain members of the Armed The Administrator, under the direction of package to be known as H-1513, H-1514 and Forces, and if necessary more land should the President, is responsible for the proper H- 1515. be acquired to provide adequate space for execution and administration of all laws ad­ The first measure would Authorize the any member of the Armed Forces Past or ministered by the Veterans Administration. Property and Supplies Dept of Military Af­ present who desires such space in a National There is consistency and common purpose fairs to secure tit le to the facility, through Cemetery. among the many benefits and rights estab­ a Federal Government Grant. The second As of March 19, 1975 Governor Shapp lished by the Congress of the United States would allocate $645,750 in general State Au­ has received recommendations for three for Veterans of service in the Armed Forces thority Funds for renovation of the complex sites. One of which will be selected by the of the Nation and for the dependents and to prepare it to accommodate State Veterans Pa. Site Selection Committee, representing beneficiaries of deceased former members in need of Hospital or Home care. the State Veterans Commission. They are of these forces. The 3rd would empower the Dept to ap­ Valley Forge National Park, a site adjacent to With the establishment of the Veterans point a director to administer the Hospital, Fort Necessity National Park, Fayette County Administration in 1930 and centralization of and select the Staff. Also it is estimated 200 and Gouldsboro State Park, Monroe County. the management, direction, and control of Veterans in the Eastern part of the State 12 sites were originally proposed. Land for the benefit programs and services, veterans and could be admitted once 1t was ready. potential site will be donated-by the V.A. by their survivors have experienced service and There are 1% Million Veterans in Pa. Who the Pa. Legislature. assistance in their claims for benefits un­ can say what percentage of these will need The V.A. plans to build 11 Regional Ceme­ paralled by beneficiaries of any other fed­ Domiciliary care in the future? Presently the teries and Shrines in the 50 States. Pa. is eral agency. only such facility in Pa. is an obsolete included in Region No. 3. From time to time, legislative or adminis­ Soldiers & Sailors home in Erie, Pa. This to We have learned thru reliable sources that: trative reorganization plans have been pre­ our minds is a very sad state of affairs. How­ Pa., New York, Ohio and California pay about sented which would merge jurisdiction and ever Senator Sweeney's Bill was passed by an 80 % of the taxes in the United States, in administration of veterans medical care, overwhelming Majority in the House and return we receive about 1.0% in grants, etc. housing, income maintenance, and education sent to the Senate where it was tabled in­ from the Federal Government. Therefore we and training programs with those provided definit ely by the Senate appropriat ions Com­ feel we are not asking for more than is due for nonveterans and under the administra­ mit tee. the Commonwealth of Pa. tion of another federal agency. Senator Richard A. Tilghman (R. Mont.) As to the plight of the Jobless Veterans: We exert every effort and all resources at wants to know why the Government closed The unemployment rate for Veterans aged our command to assure that the Veterans the Hospital? Can he tell us why the Gov­ 20 to 34 continues upward to 9.7 % as com­ Administration shall continue to be the sole ernment abandoned Millions of Gallons of pared to the National rate of 8.6%. A 9.7 % independent establishment in the Executive Petroleum Products, Tanks, Guns, Trucks, rate means that 600,000 Veterans are out of Branch of the United States Government Jeeps, and Aeroplanes, some of which were work. responsible for the administration and exe­ never used in the South Pacific. Why so many We propose that jobs be opened for young cution of benefit programs and service pro· Liberty Ships, Tankers, and Warships were Veterans by applying the same sort of Fed­ vided by law for veterans, their dependents, allowed to rot in ship graveyards all over eral St andards to those employers working and beneficiaries. the Country. Why Billions of Dollars worth under Government Contracts as now apply PAY VETERAN'S PENSION FOR TOTAL NUMBER OF of other Equipment met the same fate? The to the Minorities. VETERANS DEPENDENTS Valley Forge Milit ary Hospital is at least We as AMVETS are still opposed to Am­ The Veteran's Administration now pays Salvageable, and can be used for a very im­ nesty for Draft Dodgers. only up to three dependents of a veteran portant and necessary cause. Also the PRI­ Thank you for listening to our suggestions, who is receiving veteran's pension. We feel MARY request we are making is not nec­ complaints or whatever. the Veteran's Administration should pay essarily for a Rest Home. The purpose would JIM GILL, veteran's pension for the total number of be primarily for a Domiclliary for needy AMVETS Pennsylvania Dept. P.R.O. the veteran's dependents. and Indigent Veterans and their families, 65 % Veterans and 35 % Civilians. The Civil­ OPPOSING INCOME TAX ON PENSIONS ians to be Veterans Families who are in need TESTIMONY BY STANLEY ROSENBERG The amount of monies paid to a disabled of such care. The Jewish War Veterans of the USA com­ veteran for a compensation or pension is The bleating question he propounds is to mends the recent passage of legislation pro­ small payment for the sacrifice they have my mind a thing that could well be solved viding cost of living increases for pension made for our great country, therefore, we are economically by the Corps of Engineers, and compensation payments. We call upon totally opposed to any bill in the Congress either Federal or National Guard, which ever Congress to enact new legislation which of the United States, or any bill which may would have Jurisdiction. would: be proposed in the future, which would place He refers to the State getting out of the 1. In.crease the annual clothing allowance a.n income tax upon the pension or compen­ "Rest Home Business" and the running of allotted for disabled veterans with prosthetic sation of a disabled veteran. large institutions. We are not regarding this or orthopedic appliances that tend to wear CONTINUE BURIAL ALLOWANCE as a "Business." We want I repeat, a Dom­ out clothes quickly. We oppose the recommendation of the iclliary for Needy and Indigent Veterans 2. Eliminate the requirement that widows Administration and the Veterans Adminis­ and their dependerut Families, and Again as of totally disabled veterans must prove that tration which would eliminate the $250 VA a state Senator his "business is to run or the veteran's death was due to his service­ burial allowance. help to run one of our largest Institutions, related injury to qualify for compensation. The Commonwealth of Pa. and a consider­ 3. Speed up the procedures for making VA DISABILITY COMPE NSATION OR PENSION able part of that, ls the care and welfare mortgages available to eligible veterans. WITHOUT WAIVER OF MILITARY RETmED PAY of the States Veterans and their Depend­ 4. Provide increased mileage and per diem A recipient of military retired pay eligible ants. No one can predict what percentage of allowances to veterans to travel to and from for pension must have 90 % of said retired that Million and three quarters Veterans ma.y Veterans Administration medical facilities pay counted as income in order to determine one day find the need for such a facility. The (S. 490). the amount to which he is entitled, and est ablish ment of which we the Veterans Or­ 5. Extend and clarify the eligibility of serv­ then he must additionally waive an equal ganizations of Pa. are seeking. icemen for various life insurance options (S. amount from hi!i retired pay in order to re­ Provisions on Pensions, V.A. Insurance, 1911). ceive the pension. There is an unconscionable Cost of Living increases we feel are a.de- 6. Adjust retirement pay among veterans case of discriinination against individuals 35484 EXTENSIONS OF REMARKS November 6, 1975 who gave dedicated and faithful service to couragement of the internal strife by ex­ We should do everything possible to steer their country. in that it counts as income our nation in the right direction and to ternal forces. restore the pride that supported it in its what in reality will not be received income. It is my firm conviction that the United Further discrimination is inflicted on mlll­ beginning. tary length of service retirees determined States should provide to the United Na­ Complaints about "sorry politicians" eligible to receive compensation in that they tions on request of the Government of should be replaced with praise for the better also must waive a portion of their retired Lebanon such immediate emergency and representatives that get things done. How pay equal to the amount of compensation. appropriate humanitarian aid and as­ can they represent us if we don't tell them Civil Service and other retirees are not re­ sistance as may be necessary to further our desires and needs--democratlc priori­ quired to waive retirement pay in order to the cause of peace, humanity. and stabil­ ties in action. We tend to elect our reps for receive these same VA benefits. we urge Con­ ity in that area. their ability to read our minds on issues gress to enact legislation ellmlnatlng Section of the day. 3105, Title 38, U.S. Code. It's time for everybody to climb out of their Martha Washington costumes and start TAX FREE COMPENSATION AND MILITARY our 201st year right. Everybody's going to DISABILITY RETIRED PAY NATION'S 200TH ANNIVERSARY have to work if we are to survive for another VA compensation ls a payment for servlce­ two centuries. connected disability and to provide relief for the impaired earning capacity of disabled vet­ HON. BOB CASEY erans as a result of military service. This OF TEXAS compensation has always been tax free, and military dlsabllity retired pay has been a IN THE HOUSE OF REPRESENTATIVES A NEW YORK CITY INVESTOR payment for disabllity which was incurred Thursday, November 6. 1975 SPEAKS OUT ON DEFAULT while in the Armed Services, which prema­ turely terminated the member's career and Mr. CASEY. Mr. Speaker, as our Na­ restricts subsequent employment. tion approaches its Bicentennial. most HON. JOSEPH P. ADDABBO The mllitary disability retired pay has al­ Americans are looking forward to the OF NEW YORK ways been tax free. There has been a trend by pageantry and ceremonies of this great IN THE HOUSE OF REPRESENTATIVES Internal Revenue Service and the Office of celebration. I know that all of us look Management and Budget to make VA com­ forward to taking part in many of the Thursday, November 6, 1975 pensation and military disab111~y retired pay events celebrating our country's 200th taxable. For many veterans, VA compensation Mr. ADDABBO. Mr. Speaker. those in­ and military disablllty retired pay ls the only birthday. volved in the growing national debate on income they have. Therefore, we oppose any But there is far more significance in the New York City financial crisis have effort by Internal Revenue Service or the this historic event than the banners,. not in my opinion adequately addressed Office of Management and Budget to tax VA souvertirs and fireworks. While I am sure the immediate and future impact of de­ compensation or military disability retired that all Americans recognize the signifi­ fault on the individuals who invest in the pay. cance, there is sometimes the tendency growth of our cities. OPERATION OF VA HOSPITALS to let the superficial aspects overshadow One of my constituents. Mr. Howard We are opposed to any change in operations the true meaning of our Bicentennial. L. Hurwitz. recently wrote to President of Veterans Administration Hospitals, and we I recently had the privilege of getting Ford about this matter. urging reconsid­ are definitely opposed to any integration of Veterans Administration Hospitals as part of my own . perspective into better focus eration of his position on default and ex­ any National Health Care and Hospitalization through the wisdom of one of my young pressing in a clear and concise manner operations. Inasmuch as the intent was for constituents, Patti Mott. a student at the feelings of one who has invested most the Veterans Administration Hospitals to pro­ Sweeny High School, in Brazoria County. of his life savings in city securities. I am vide medical care, assistance and support Tex. Patti is only 15 years old, but I be­ placing the text of Mr. Hurwitz' letter for personnel who served their country hon­ lieve the article she wrote for her school to President Ford in the RECORD at this orably in the Armed Forces of the United newspaper, The Barker, recently, will be time for the information of my colleagues States of America, concerted efforts be made in order to make salaries more attractive in of benefit to all of us and to every Ameri­ and in the hope that the voice of those order to permit the VA to recruit and retain can who has the opportunity to read it. willing to invest in the future of our top notch medical personnel in the VA Hos­ In the interest of bringing greater cities will be heard in the halls of Con­ pital System. Adequate coverage should be meaning to our Bicentennial, I would like gress and at the White House before it made available 1il all VA Hospitals in order to share this article with you at this is too late. that emergency care and admissions may be time: October 20, 1975. routinely obtained on weekends and after BICENTENNIAL THEME-OVER EMPHASIZED Hon. GERALD R. FORD, normal closing hours in the VA Hospitals and OR OVER PUBLICIZED President of the United States, Cllnics. We strongly feel that VA Hospitals Washington, D.C. should remain intact and free from inter­ (By Patti Mott) DEAR MR. PRESIDENT: I am writing to urge vention or usurpation. "Welcome to Back-in-the-Box. May I have that you change your position on financial JAMES J . MURPHY, your order please?" aid to New York City now that it is clear Veterans of Foreign Wars. "I'd like to order a large Bicentennial that default wm take place in early De­ Burger, an order of Freedom Fries, and a cember unless some kind of appropriate chocolate Spirit Shake in one of those Lib­ assistance is forthcoming from the Federal erty Mugs everybody's talking about!" government. SUPPORT SENATE RESOLUTION 293 All over the U.S.A., this ls really the way My brief, personal story of involvement things are getting. Everywhere you look, you in the financial affairs of New York City see red, white, and blue banners telling you carries, I belleve, a general lesson for the to "get your bicentennial swimming trunks future of municipalities and states. I have HON. EDWARD P. BEARD today" or "pick up a free bicentennial invested most of my life savings in New York OF RHODE ISLAND wrench with every fill-up of Liberty Premium City tax anticipatory notes. On October 17, IN THE HOUSE OF REPRESENTATIVES or Bald Eagle Regular." I just about conceded the loss of $25,000 for Apparently, most folks are taking the idea the indefinite future. I got that $25,000. In Thursday, November 6, 1975 of a nationally celebrated event all wrong December and January comparable amounts Mr. BEARD of Rhode Island. Mr. and businesses are jumping at the chance to are due me, if the City does not default. Speaker, Mr. Joseph Abood. president of dive deeper into our bank accounts: I have decided, however, that whether or My idea of a real celebration ls not having not the City defaults, I shall never again the Lebanese American Society of Rhode to wear sunshades in the rain for fear of invest in any city or state security in the Island and Rev. Peter Hobeika. pastor of being blinded by the brightly painted bi­ nation. I have had it with this brinkman­ St. George Maronite Church. Providence, centennial fireplugs as I drive down the ship--and I do not believe that my reaction have asked that I do all in my power to street. ls unique. see a return of peace in Lebanon. I Sure, there's reason to celebrate. but let's The only condition on which I shall ever strongly support Senate Resolution 293 try to be reasonable. Our nation has endured again invest in government securities ls if which deplores the current turmoil in a lot in the last 200 years-and survived. Of the Federal government offers some kind of course we're proud, but is painting roadside guarantee for New York City and compara­ Lebanon and expresses disfavor toward garbage cans and prancing about in flag­ ble securities. Better economic minds than any unilateral uninvited intervention of printed attire the way to show genuine mine should be able to figure out an ar­ any nation or armed force in the current patriotism and pride? rangement whereby Treasury securities will conflict. Such resolution strongly opposes How far we've come is of importance, but not be disadvantaged by a Federal guarantee any shipment of arms or continued en- where we're going ls of more importance. of state and city securities. November 6, 1975 EXTENSIONS OF REMARKS 35485 There is no question, however, but that persons served by the Brooklyn Bureau of In the depression of the 1930's, with nearly the Federal government can no longer Community Service. The Carey children have half a milllon people needing help, the ignore the borrowing needs of state and also worked in various capacities on behalf Brooklyn Bureau dispensed material relief city governments. So interlocking de­ of the agency's handicapped people. totaling $1,770,000. A long-term home-maker vices that will assure the safety of such In a message in the Brooklyn Bureau's service demonstration project instituted by securities while penalizing governmental Annual Report for 1974-1975, Frank A. the Bureau in 1954 established the value of profligacy must be undertaken at once. Barrera, the agency's President wrote: homemaker service for familles and was in­ To ignore further the current situation in "Rarely in our long history of service have fluential in later making the service widely New York City (for whose management I we been confronted with more difficult chal­ available in the New York area.. In 1964, the hold no special brief) will be to bring about lenges. It has been a year in which we have Bureau printed the first Brame Cookbook the collapse of the market in government struggled to meet the needs of the helpless of Convenience Foods, the only cookbook securities. The Federal government's ca.pa.c­ and unfortunate with shrinking resources. available to blind homemakers covering the ity for borrowing will also be affected, since Yet, I am proud to say, we have succeeded in full range of frozen, dehydrated and pre­ it is scarcely immune to the criticism that reaching and helping thousands of men, mixed. foods. The cookbook is now in its it too has failed over the yea.rs to balance women and children. A look at the records 10th printing, and has been distributed its books and is deeply committed to deficit of service inspires us to new efforts. Families around the world. In 1973, the Bureau be­ financing by borrowing. saved tfrom desperation and dissolution, came the only agency in Brooklyn offering Your hand-off policy, Mr. President, may children lifted into warm security from cir­ a vocational orientation service to all men­ produce a financial Armageddon that will cumstances often too appalling to describe, tally retarded sophomore high school stu­ result in a vast defeat for this nation. I am handicapped men and women marked from depts in a cooperative program with the more than willing to credit you with the birth or struck down by disease or accident New York City Boa.rd of Education. ca.pa.city for changing your mind after a learning it is possible to live with dignity. The agency's initiatives were the precur­ fresh assessment of the battle scene. "This is the beginning of our llOth year of sors of many other organizations and serv­ Sincerely yours, service. When we look back and see what ices devoted to the health and welfare of H. L. HURwrrz. we have done, we are fortified by the dedi­ the people of New York City. The Bureau's cation of those who prepared the way. Out of District Nursing Committee, established. tn yesterday's struggles are born the determina­ 1898, became in 1920 the Visiting Nurse As­ tion and insight to meet today's challenges." sociation of Brooklyn. The Brooklyn Bu­ BROOKLYN, N.Y., BUREAU OF COM­ When the Brooklyn Bureau of Community reau's Jewish Branch, organized in 1906, ls MUNITY SERVICE-110 YEARS OF Service began its work in 1866, thousands of now part of Jewish Family Service, an agency children, separated from their families in the serving people in all five boroughs. The SERVICE TO THE COMMUNITY aftermath of the Civil War, lived wretched­ agency's free employment service for the ly, in abandoned buildings, hallways and needy, organized in 1912, was influential in HON. FREDERICK W. RICHMOND crudely-built shacks, and on the streets of the establishment of the New York State the city. Employment Service in 1915. The Brooklyn OF NEW YORK The agency was organized to give !"l"Otec­ Bureau's Tuberculosis Committee became IN THE HOUSE OF REPRESENTATIVES tion, care and shelter to these children. With­ the Brooklyn Tuberculosis and Respiratory Thursday, November 6, 1975 in eight months, it opened its first lodging Diseases Association in 1920. In 1932, the house for boys. Later, other homes, industrial New York State Employment Service took Mr. RICHMOND. Mr. Speaker, the schools and a kindergarten were established. over the Bureau's job placement service for Brooklyn Bureau of Community Service Foster homes were found for thousands of the handicapped that had been started nine is about to celebrate its llOth anni­ children. From that time to this, the agency years earlier. versary on November 20. I think it is has had as one of its major concerns the care Out of these many efforts to provide social of troubled, abandoned and deprived child­ services to all kinds of people with all kinds particularly :fitting that we, in the Con­ of problems grew the framework for the gress, express our since appreciation for ren. When public relief collapsed in 1878, the Brooklyn Bureau's present-day services to this most worthwhile organization. Brooklyn Bureau organized to feed, clothe famllies, children and the handicapped. Never before has the task of helping and provide shelter to hungry and desperate These include individual, family and our less fortunate members of society families. It provided work opportunities to group counseling, foster care to children, and been more necessary. We find neglected the unemployed in woodyards, laundries and work training, job placement, homemaking children, handicapped individuals, and workrooms. Destitute fa.mllles were visited and Braille instruction, recreation, and voca­ countless other fell ow Americans who and their needs ascertained. The agency's tional and personal counseling services to family counseling service began here as an blind, orthopedlcally disabled, and mentally, need assistance and care. No organization emotionally and neurologically handicapped has performed these and other func­ activity of volunteers. During the cholera. epidemic of 1876, when men and women. tions with greater success, dignity and 390 children died in a single week, the agency In addition to these on-going services, the compassion than the Brooklyn Bureau moved quickly to open a home for mothers Brooklyn Bureau of Community Service con­ of Community Service. By providing the and children living in pestilent-ridden tene­ tinues its tradition of stepping in when­ human assistance which only concerned ments. Later a hospital was added, equipped ever possible to meet critical community individuals can, our lives and the lives of to give full medical and surgical treatment to needs. Today, its initiatives include a special seriously-ill children. This was the first of a. project to find foster homes for abused, sick so many others have forever been im­ and handicapped children without parents proved. number of homes and a. wide range of fresh to care for them, living ln the pediatrics Therefore, it is with great respect and air and vacation services offered in the yea.rs wards of Kings County Hospital. gratitude that I submit further informa­ to follow to keep infants alive. In the in­ Another Brooklyn Bureau service unit tion about the Brooklyn Bureau of Com­ .rantile paralysis epidemic of 1916, and in its created to meet a special need is its Preven­ munity Service. work to help victims of tuberculosis, the tive Services Project, an experimental pro­ agency organized educational, medical and gram to strengthen families with deep­ BROOKLYN BUREAU OF COMMUNITY-110 YEARS food distribution services. OF SERVICE TO THE COMMUNITY seated problems and prevent the placement Services to the blind and otherwise handi­ of children in foster homes. The Brooklyn Bureau of Community Serv­ capped began in 1915 with a. center for train­ Still another such service is a. work/study ice, a voluntary, non-sectarian, non-profit ing and employing the blind. It was the be­ project for all mentally-limited sophomore social services agency, now entering its lOOth ginning of what is today one of the most year of service to the Brooklyn and metro­ high school students who- are in special comprehensive services available for people classes in the Brooklyn public school sys­ politan New York communities, has through­ with all kinds of handicaps. out its history tried to meet the needs of tem. The program employs a variety of coun­ The work of the Brooklyn Bureau of Com­ seling and work training services to help people in trouble. Today it offers a whole munity Service has been influential in the spectrum of vital services for families, chil­ these children learn to see themselves as history of the city. Through its efforts, Brook­ productive and capable with the potential dren, and the handicapped. lyn became the first city in New York State On November 20, 1975, the agency will hold to be self-supporting and confident adults. to pass tenement house legislation, the first The Brooklyn Bureau of Community Serv­ its llOth Anniversary Dinner at the Waldorf­ of many initiatives to provide minimum Astoria. The dinner will honor New York ice has always offered part of its resources housing standards as a matter of law. It to help other agencies when their need was Governor Hugh L. Carey and his family. established a. milk pasteurization plant and Governor Carey, his late wife, and their chil­ great. The agency gives the conc;ultative operated milk distribution centers for noor services of its professional staff to day care dren have for many yea.rs supported the families from 1900 to 1912, when New York Brooklyn Bureau's work. The recent dedica­ centers, kindergartens, schools, hospitals and tion of the Helen Owen Carey Dining Hall at City, through its Public Health Service, other social agencies helping children, fam­ the agency's summer camp for the handi­ took over this function. The agency was in­ ilies. the sick and the aged. capped to the memory of Mrs. Carey, a former strumental in the creation of the Brooklyn With its staff of psychlatrlsts, psycholo­ member of the Brooklyn Bureau's Board of Adolescents' Court in 1935, firmly establish­ gists, social workers, home economists, reme­ Directors, ls a memorial to her work over ing the principle of a separate tribunal for dial teachers, vocational evaluators, and re­ many years on behalf of the handicapped cases involving the young. habilitation counselors, the Brooklyn Bureau 35486 EXTENSIONS OF REMARKS November 6, 1975 of Community Service has mobilized its re­ all of which are essential to this nation's part on a national mandatory commitment sources to meet the needs of as many persons continuing as a world leader. to energy conservation. a.s possible with the kind of professional help Synthetic fuels must be developed and It is not difficult to identify, at this time, that will enable them to lead better, more produced to augment our dwindling petro­ many areas in which there is a need for productive and happier lives. lewn and natural gas supplies. But, in our federal law to protect the authority of the From the vantage point of 110 years of haste to begin a synthetic fuels program, we states in the synthetic fuel program and, providing services to people, the agency looks should not overlook the need to make sound thus, expedite the planning, construction, back with pride to Its many accomplish­ preparation, so that this program goes for­ and operation of the necessary synthetic fuel ments. In the early years, it carried the ward with every chance of success. producing facilities made possible under the burden along with other voluntary agencies Though the synthetic fuels program may proposed federal subsidies. Our support for of relieving the intolerable misery of Brook­ be authorized by Congress and funded by the Section 103 is contingent upon language lyn's poor and handicapped. It participated federal dollars, there should be no question encompassing the following points: in, and often led, important social move­ but that the success, in the long run, will 1. Affirmation of the states' authority to ments. Today, it continues to offer opportu­ depend upon the enthusiastic assistance and levy and collect taxes on synthetic fuel in­ nities for growth and independence to men, cooperation of the states and local communi­ dustries. women and children entrapped by poverty, ties involved. A synthetic fuels program that 2. A guarantee that the consumers of syn­ disease, misfortune, and the problems of ignores the problems that such a program thetic fuel in the state of origin have the daily living. would create for the states and communities same access to the lowest rate available for The agency recognizes that voluntary ac­ where research and development will take synthetic fuel produced that out-of-state tivity on its behalf has always been and place is a program which will suffer delays, consumers have. continues to be at the heart of its efforts. court action, and public opinion harass­ 3. A recognition of a state's right to issue Without the participation of is Board of ment. water permits to the synthetic fuel industry Directors, volunteers, contributors and peo­ The synthetic fuels program is too impor­ with such conditions attached as might be ple in the communities in which it works, it tant to the nation to ignore any essential required by state regulatory agencies. could not exist. ingredients for its ultimate success. 4. Affirmation that the states have the In carrying on the agency's tradition of We appear before you today to offer sug­ authority to set environmental management a dynamic pioneering service, the Brooklyn gestions from a regional, state, and local standards exceeding those of the federal Bureau of Community Service needs all the community point of view that would enhance government and that, in all cases, the most help it can get. materially the chances of success for this stringent standards must be met by the program. synthetic fuel industry. At state and local levels of government, 5. A recognition that states have the right to approve or disapprove specific project pro­ WESTERN GOVERNORS URGE CAU­ there are several areas of concern involved with maintaining or increasing the supply posals through state law and regulation in TION ON SYNTHETIC FUELS DE­ mine location, plant siting, transportation VELOPMENT of energy for the nation. These areas of con­ cern apply either directly or indirectly to access location, water acquisition location, the legislation you are considering and would pipeline siting, and electric transmission include the following: line siting. HON. PATRICIA SCHROEDER 1. The mandatory conservation of energy, 6. No loans or price supports shall be ap­ OF COLORADO particularly petroleum products and natural proved without assurance by the federal government of adequate funds to meet state IN THE HOUSE OF REPRESENTATIVES gas, as a parallel effort to synthetic fuel pro­ duction. and local impacts arising from the develop­ Thursday, November 6, 1975 ment. 2. A listing of a number of major rights 7. The federal government must guarantee Mrs. SCHROEDER. Mr. Speaker, the and responsibilities which are of most con­ impact assistance funds to local and political House will soon be called upon to make cern to the states and any federally subsi­ dized synthetic fuel research and develop­ subdivisions and agree that such federal a decision on the synthetic fuels develop­ ment program. funds for impact will be administered and ment amendment-section 103-to the To return to the first area mentioned, we allocated by the state government to local 1976 energy research and development political subdivisions only when the state wish to express our concern about the failure has first determined that such federal im­ administration authorization bill. This of our nation to adopt an aggressive con­ pact aid is consistent with state law, state amendment was tacked on in the Senate servation ethic. While we cannot argue comprehensive planning, and any state with little debate and no committee con­ against a need for a vigorous research and funded impact alleviation program. sideration. It has had less consideration development program for synthetic fuels for 8. Any industry receiving federal assistance in the House. The amendment offers $6 the long run, we must question the absence for synthetic fuel development shall reveal, of an immediate national conservation effort on demand from any authorized state agency, billion in guaranteed loans for the devel­ which, in terms of the potential for barrels of opment of synthetic fuels such as gasi­ such information as the state believes neces­ petroleum equivalent saved, would far out­ sary to assist timely and accurate state fied coal and oil from oil shale. Modi­ strip the potential for barrels of petroleum and local planning at any stage of the in ­ fications of the proposal by ERDA could equivalent manufactured as synthetic fuels. dustry's planning, construction, or operation. push this figure to $12 billion. Needless waste of petroleum products and 9. As a part of the procedure for approving, The Western Governors Regional En­ natural gas means needless production of disapproving, or suggesting modifications for ergy Policy Office has issued a strong synthetic fuels at the expense of loss of coal applications for financial incentives, ERDA or oil shale resources, environmental and should be required to participate with the critique of section 103 and a statement of water losses, as well as unnecessary taxpayer strong concern over its potential effects Governor of the state in which the plant is expense. Sacrifice by any state or region or proposed for location. There needs to be a upon the region. I wish to take this op­ community, because of synthetic fuel pro­ mechanism developed for this direct state portunity to share with my colleagues duction for the national good, should be off­ participation in ERDA decision-making on the thoughts they have expressed. The set by a national energy conservation effort synthetic fuel research, development, demon­ statement follows: to minimize the demands on synthetic fuel stration, and commercialization. We recom­ producing areas. STATEMENT BY THE WESTERN GOVERNORS' mend that: REGIONAL ENERGY POLICY OFFICE Too much of our present national con­ (a) a synthetic fuel assessment panel be servation effort seems to be based on high established within ERDA which contains ef­ Mr. Chairman and members of the Com­ petroleum prices, forcing a reduction in de­ Inittee, the Western Governors' Regional fective state representation. mand. Such a conservation effort enlists the (b) that the purpose of the assessment Energy Policy Office welcomes this oppor­ efforts of those least able to pay, but it ex­ tunity to discuss with you the legislation now panel be to make specific recommendations empts the higher income segment of our to the administration on all matters relat­ pending that would establish a subsidy pro­ population, who can afford to waste. Do we gram for synthetic fuels development. ing to the synthetic fuels program, includ­ have the right to institute a taxpayer-sub­ ing, but not liinited to, ( 1) allocation of This testimony would apply equally to Sec­ sidized synthetic fuel program that w111 funds for synfuel research, development, and tion 103 of the ERDA FY 1976 and Transi­ bring about irreversible consumption of our demonstration, (2) approval of incentive tion Period Budget Authorization, or to H.R. fossil fuels, when we make an unequal de­ programs and federal funding for synthetic 9723, or to legislative proposals which might mand on our population to conserve those fuel commercialization, (3) implementation be forthcoming from the Administration on barrels of synthetic fuel manufactured? of programs in the conservation of natural synthetic fuels research, development, and A national commitment to develop syn­ gas and oil in collaboration with the FEA, production. thetic fuels with a heavy federal subsidy (4) assessment, planning, and funding of There is a definite need for the United should be accompanied by a mandatory na­ socioeconomic impact alleviation programs States to conserve energy on the one hand tional measure to require all citizens to con­ associated with synthetic fuel commerciali­ and develop and produce new sources of serve energy, no matter what their economic zation, and (5) any other matters which bear energy on the other hand, if we are to main­ station in our society might be. Cooperation upon ERDA programs in the field of syn­ tain the strength of our economy, a high of the western states in the synfuel program thetic fuel. Recommendations of the panel standard of living, and the national security, could be determined in the future in large shall be accepted by the administration un- November 6, 1975 EXTENSIONS OF REMARKS 35487 less the administrator demonstrates that the have had an opportunity to observe his compete with the Mexican market which assessment panel's recommendation is not skill and accuracy as a reporter. I have sells tobacco at 50 cents per pound or consistent with national security or overrid­ had the privilege to see his many fine the Brazilian market which sells it at 44 ing national interest as set forth in procedure in The Outer Continental Shelf Act of 1975. qualities both as a man and as a public cents per pound. It is just not possible In any synthetic fuels and related energy servant. In this, I have been most for them to beat those prices. matter research, ERDA should be instructed fortunate. And there are those in this country to use, wherever possible, those research Mr. Veley now plans to retire and, who hope they will not. Dr. George P. facilities, institutions, and personnel in the along with the members of the Commit­ Rosemond, president of the American state or region where the development is tee on Appropriations, I will miss him. I Cancer Society, has just called for "a taking place, in order to assist those states know I can speak for the entire member­ cessation of Federal tobacco subsidies" or regions to build up their research facili­ ship of the House in expressing our grati­ ties and expertise, so that they might be bet­ and an end to the tobacco program which ter able to address their own energy-related tude for his service and in wishing him is designed to control production of to­ problems created by the synthetic fuel in­ the best in all things for the future. bacco so farmers can make a profit. dustry. Mr. Speaker, I say that as long as it is The synthetic fuels research and develop­ legal to manufacture cigarettes, farmers ment program calls for several kinds of in­ in the United States should be paid a fair centives. We make no attempt to Justify INCREASED FOREIGN TOBACCO IM­ price for growing the tobacco to make the kinds of incentives to industries a.nd PORTS EQUAL DECLINE IN DO­ them. And Dr. Rosemond is kidding him­ situations that wm always vary in their MESTIC TOBACCO SALES specific requirements. We do support the self if he thinks that termination of our concept of a federal involvement in the tobacco program will stop the major to­ synthetic fuels development program. HON. CHARLES ROSE III bacco companies from making cigarettes. Compet ition has always been a basic in­ OF NORTH CAROLINA It is clear to me that Mexican and gredient of the free enterprise system prac­ Korean and Brazilian tobacco will, in ticed in America. It should be of great con­ IN THE HOUSE OF REPRESENTATIVES fact may already be, substituted for cern to Congress and all those who believe Thursday, November 6, 1975 American tobacco. And nobody but the that competition is essential in the free en­ terprise system that a relatively small num­ Mr. ROSE. Mr. Speaker, I have just tobacco companies will profit from that. ber of major oil companies now have ex­ received a most alarming piece of in­ Farmers in this country will be deprived cessive control of such competing sources of formation regarding the import and ex­ of an important cash crop; people will energy as coal, uranium, natural gas, and port of tobacco which I want to share still smoke as often and as much as they electric generation. It would seem wise to with my colleagues here in the House. like; and the American Cancer Society administer federal subsidies in the synthetic Government agencies in this city have will keep telling them not to. fuels program in such a way as to foster com­ Import duties must be increased on petition by strengthening small independent sent me a breakdown of major imports of concerns. the U.S. tobacco companies, and the fig­ foreign tobacco so that our farmers can Competition between various techniques ures are frightening. compete with the world market. The ma­ within the synfuels program to produce the They show that the major tobacco. jor tobacco companies must be forced to information and demonstration necessary companies of this country are importing pay a fair price for their tobacco. And to ultimately achieve comp:ierclal goals ls Flue-Cured and Burley tobacco from we, Mr. Speaker, must act on behalf of vitally necessary. We, therefore, support Korea, Mexico, Argentina, Italy, Vene­ the farmers of this country to insure maximum competition within the federal zuela, and Brazil at a fantastic rate. In their participation in our country's sys­ incentives process. tem of free enterprise. We support the provisions of Section 103 1974 alone, 22.1 million pounds of to­ of S. 598 to grant Federal loan guarantees bacco were brought into this country at for renewable energy sources such as, but the average lov, price of 50 cents per PLIGHT OF UKRAINIAN WOMEN not limited to, solar, geothermal, and urban pound. Between January and September and agricultural waste. of this year, that figure has risen to 33.9 We support a federally assisted synthetic million pounds, or an increase of 145 per­ HON. WILLIAM D. FORD fuel program whose purpose is to demon­ cent over the same period in 1974. strate the economic, environmental, and OF MICHIGAN At this same time, figures indicate that IN THE HOUSE OF REPRESENTATIVES technical feasibiUty of recovering synthetic there was a drastic reduction in the pur­ fuels from coal, oil shale, waste, and other Thursday, November 6, 1975 sources. chase of U.S. grown tobacco by the major We believe that demonstration plants companies. In fact, it appears that the Mr. FORD of Michigan. Mr. Speaker, should be planned, not on the basis of dollar figures match. The number of imported in the spirit of International Women's amount restrictions, but on the basis of an pounds of tobacco is about equal to the Year, the southeastern Michigan branch adequate demonstration size to gain the decrease in U.S. purchase. of the Ukrainian Congress Committee of necessary information on, commercial scale. Mr. Speaker, this is an alarming trend. America sponsored a program at Wayne Import duties on tobacco coming into this State University on November 2, to bring country from abroad are the lowest in the plight of Ukrainian women political the world. Meanwhile, our tobacco when prisoners in the Soviet jails to the at­ KARL F. VELEY it reaches foreign ports is taxed to death. tention of all people of good will. For example, the U.S. average import Ukrainian Americans in my district HON. WILLIAM H. NATCHER duty on a pound of imported tobacco is and all over the Nation are proud of the OF KENTUCKY 12.75 cents. A pound of our tobacco, Ukrainian women who have courageously meanwhile, when it reaches the port of opposed Soviet oppression and have been IN THE HOUSE OF REPRESENTATIVES Liverpool, England, is subject to an $18 imprisoned because of their participation Thursday, November 6, 1975 duty fee over the price of the tobacco. in activities of the Ukrainian National Mr. NATCHER. Mr. Speaker, I am sure It is little wonder, then, that the major Liberation Movement. that everyone who has ever served on the tobacco companies of the United States Many of these women were arrested Committee on Appropriations will agree should want to buy Korean tobacco in­ when they wrote appeals in defense of that through the years, the reporters who stead of tobacco from American farmers. Ukrainian intellectuals who were ar­ have worked with us on the committee However, my question is not who has the rested for their participation in the cul­ have been, without exception, people of cheapest tobacco, but who do we want tural and national rebirth of the Ukraine ability and dedication. to support--the Korean farmer or our in the 1960's and early 1970's. Karl L. Veley is an outstanding ex­ own? Currently, about 67 percent of all polit­ ample of this excellence. In my capacity If tobacco companies continue to bring ical prisoners in the U.S.S.R. are Ukrain­ as chairman of the Appropriations Sub- into this country increasing amounts of ian, making up the largest ethnic committee for the District of Columbia, foreign tobacco, our tobacco farming in­ minority in the country-one-fifth of the and as a member of the subcommittees dustry will be destroyed. This year farm­ total Soviet population. which make recommendations for the ers received an average price of over $1 Mr. Speaker, it is only fitting that we Departments of Labor, Health, Educa­ per pound for their tobacco. With rising speak out to defend the basic human and tion, . and Welfare, and Agriculture, I costs of fertilizer and fuel, however, they national rights of which these coura­ . have worked closely with Mr. Veley. I have barely broken even. They cannot geous women have been deprived. 35488 EXTENSIONS OF REMARKS November 6, 1975 THE NEED FOR MORE CITIZEN pressed a.n interest in any aspect of the pl&Ill nl.a coastal planning activities. Only 1t a was placed on a malling list to receive addi­ state's planning processes a.re fair will the ef­ PARTICIPATION tional information. More than 15,000 copies forts be eligible to be considered for federal of the 400-pa.ge preliminary plan were dis­ funds. tributed free statewide prior to public hear­ One important lesson learned through HON. SHIRLEY N. PETTIS ings, and many other copies were placed in Proposition 20 has been that while publlc OF CALIFORNIA public Ubraries. participation may produce conflict and be IN THE HOUSE OF REPRESENTATIVES What ls it about the coastal act that time consuming it also generates ideas and sparked so much citizen interest and partic­ staff support that are rarely a.va.Ua.ble to Thursday, November 6, 1975 ipation? Some of the following character­ public officials. The Coastal Plan stands as Mrs. PETTIS. Mr. Speaker, with our istics of the planning process used may have evidence that citizens can work with pubUc Nation's Bicentennial just around the been responsible. · officials and professionals and also contrib­ Commission proceedings have been visible, ute t.o solving complex problems. That taste corner, I thought it might be appropriate com.missioners have been accessible, commis­ of participation in planning in a time of to bring to my .colleagues attention a re­ sion files have been open and, where possible, widespread distrust of government may well cent article which appeared in the Cali­ meetings were held at times and places con­ be the most valuable benefit of all. fornia Journal. venient to the most people possible. Too of ten nowadays, we forget that Outside suggestions have been incorp­ orated in the successive drafts of regional and America's continued greatness is de­ state plan elements. FOREIGNERS FIND UNITED STATES pendent upon its citizens' active partici­ Those with a stake in the allocation of A GOOD BUY pation and in-put into the policymaking coastal zone resources have expressed their process. concerns and interests, thus generating views Mrs. Judy B. Rosener's article which is and values that might not otherwise have HON. JOSEPH M. GAYDOS entitled: "Citizens on the Beach-The been analyzed. OF PENNSYLVANIA Ideological clashes at public hearings IN THE HOUSE OF REPRESENTATIVES Noble Experiment in Drafting the attracted press coverage of the planning pro­ Coastal Plan," provides an excellent ex­ cess that increased citizen awareness of the Thursday, November 6, 1975 ample of the type of citizen participation complexity of the issues. Mr. GAYDOS. Mr. Speaker, I was ex­ and in-put which is needed to solve the Commissioners were insulated from certain problems which face this Nation today. kinds of political pressure, allowing for deci­ tremely interested in an article pub­ sion-making freedom not always enjoyed by lished October 29 by the Pittsburgh The article follows : Press which reported foreign investments CITIZENS ON THE BEACH: THE NOBLE EXPERI­ elected officials. MENT IN DRAFTING THE COASTAL PLAN Since resource-allocation decisions in­ in the United States now total more than volved, besides market considerations, such $100 billion-substantially more than (By Judy B. Rosener) planning options as preservation of low-in­ had been estimated. From its inception California's Coastal come neighborhoods and a variety of Ufe­ Furthermore, the figure is based on Zone Conservation Act, approved by the vot­ styles, new kinds of citizens were drawn into ers in 1972 as Proposition 20, has been a the planning process. preliminary reports :filed by the Depart­ unique experiment. Its intended product-­ Because the commission also dealt with ments of Treasury and Commerce, in ac­ a. plan for the use of coastal zone resources-­ Implementing the plan, methods of public cordance with a 1974 law. The article, is a first, but the attempt to resolve coastal acquisition of land were a major concern written by Mr. Robert Dietsch, goes on management conflicts by public debate and and produced new ideaS relating to both ac­ to explain that both Departments indi­ consensus-building "out front" has so far quiring land and financing its acquisition. cate their final reports, due before Con­ been its most striking characteristic. While COSTS AND BENEFITS gress next April, will show even greater Governor Brown and the legislators look over the proposed plan for clues to its politi­ Is this planning experience relevant to investments. cal, environmental, and economic costs and other areas of state concern, such as health, This will bear watching, for Mr. benefits, primary attention might well be di­ transportation, criminal justice, education, Dietsch paints out the value of foreign rected to the potential workability of this and housing? Or should only "experts" plan? holdings here now ranges between $101 sort of participatory planning. Do the polltlcal and financial costs of citizen and $106 billion whereas the value of Despite doubts that a plan worthy of leg­ participation outweigh the benefits? The American investments abroad is listed at islative consideration could be developed by question of costs-$2.5 million annually is $147 billion. Clearly, the gap is rapidly seven regional commissions composed of spent by the seven commissions-is a legiti­ mate one. But so is the question of benefits. narrowing. part-time, unpaid appointed commissioners-­ Mr. Speaker, I remain convinced it is doubts expressed by opponents of the act-­ How do we measure the fa.ct that ha.rd-hats the job has been done. There is a plan, it is and environmentalists, lawyers and surfers, dangerous to allow foreign investors to being finished on time, and it is likely to be the rich and the poor, the young and the old, gain unlimited control of American busi­ taken seriously by the Legislature. Although resource-owners and resources-users all were nesses and industries. Inevitably, such much of the credit for this should go to the drawn into a public arena where they had to actions result in control of the economic state commission's chief planner, Jack talk to each other rather than about ea.ch future of our Nation and I cannot be­ Schoop, its executive direct.or, Joe Bodovitz, other? How do we measure the fact that lo­ lieve that is in the best interests of and the state and regional commission staffs, cal governmental officials have begun to re­ America and her people. suggestions and ideas contributed by citizens assess values and priorities in a time of rap­ and groups interested in coastal zone man­ idly changing attitude concerning the use of I am inserting Mr. Dietsch's article agement have added significantly to the de­ coastal resources? into the RECORD for the consideration of velopment of a plan in the time allotted. Is it enough to price out the Coastal Plan my colleagues: CAST OF THOUSANDS in terms of only the obvious costs of land U.S. INVESTMENT BY FmtEIGNERS TOPS acquisition? What of these values, hard as $100 BILLION Regional and state commissioners and com­ they are to price. (By Robert Dietsch) mission headquarters have been flooded from The value of having citizens informed the start with communications from all kinds about planning decisions before the deci­ WASHINGTON.-Foreigners today have more of individuals and groups. There were ideas sions were made. than $100 billion invested in the United scribbled on postcards, suggestions neatly The value of having groups of people tra­ States, substantially more than had been typed for attorneys hired to evaluate ele­ ditionally locked out of land-use decislon­ estimated. ments of the plan, and thick documents making learn to ask hard questions, articu­ In preliminary reports required under a detailing specific concerns. While few of those late their demands, and, when all else fa.Us, 1974 law, the Treasury Department said who have participated in the planning go to court. foreigners have between $80 billion and $85 process will be completely satisfied with the The value of the plan's reflection of the billion invested in private stocks and bonds plan, none can legitimately charge that there variety of interests and attitudes found in and government securities. was insufficient opportunity to take part in the electorate. The Commerce Department said foreigners creating it. Thousands of citizens were in­ have at least $21.7 billion directly invested. volved in discussions on the local level where FEDERAL REQUIREMENT in American companies and land. regional plans were developed after tech­ The Federal Coastal Zone Management Act A final report for this year must be given nical review by members of interest groups of 1972 clearly states that evaluation of state Congress next April, and both departments and professionals. More than 1,500 Cali­ programs will concentrate on the adequacy indicated those reports will show even great­ fornians received planning materials, and of the state processes for dealing with key er investments. their comments and reactions to the mate­ coastal zone issues, and not the wisdom of Americans have a.bout $147 billion Invested rials were later solicited. In addition, hun­ speclftc land- and water-use decisions. Since abroad--$118 billion in foreign plants and dreds of groups and governmental entities the federal act provides for the awarding of U.S. subsidiaries and $29 blllion in foreign sent representatives to testify before one or funds for use in coastal zone management, it securities. more of the commissions prior to the writing ls important to note that the process will in Commerce said direct foreign investment of the preliminary state plan. Anyone who ex- large part determine the funding of Califor- rose 200 per cent since 1961 and accelerated November 6, 1975 EXTENSIONS OF REMARKS 35489 relatively rapidly in recent yea.rs. Major threatened with forced elimination or But in ·the absence of blue moons, I sources have been Britain, Canada., The curtailment of operations by the local cannot, shall we say for the life of me, Netherlands, Switzerland, Germany, France government seems to me to be imprudent. understand why people would not fasten and Japan. We should learn from our experiences of seat belts around themselves in automo­ Almost 90 percent of foreign investment in biles or wear safety goggles while using securities here is linked to Switzerland, recent years in Southeast Asia, Europe, Britain and Canada. Much of the Swiss in­ and the Middle East, where bases have grinders on metal. vestment has been made on behalf of citi­ either been closed or their use severely I wish common sense were more com- zens of other countries whose identities are restricted for the support of U.S. poli­ monly accepted. hidden by secret Swiss banking laws. cies. The billions of dollars invested in The article follows: Treasury said U.S. security holdings by oll­ these bases was proven to be greatly FOR.D'S FENDER BENDER REVIVES SEAT-BELT rich Arab countries was only about 3 per wasted. lssUE cent of the total. The oil producers undoubt­ The same reasoning applies to U.S. edly have been investing through SwisS (By Charles Ewing) banks, so the extent of such investments facilities in Japan, although to a lesser When President Ford's 1972 Lincoln Con­ aren't known. Direct investment by Arabs degree. Local government policies and tinental limousine and James Sala.mites' yel­ in U.S. companies and land so far has been pressures have forced closure of many low 1967 Buick sedan collided the other day minor. of our bases there also. in Hartford, Conn., the resultant bang start­ It was potential threat of increase Arab I particularly question the wisdom of ed reverberations which are stlll resounding investment that triggered congressional fears placing greater dependency on Navy in Washington corridors. of Middle East countries ta.king over U.S. bases in foreign countries of the Western The obvious questions about why traffic corpora.tions. at the intersection was not halted during the Those fears brought on a spate of bills to Pacific as a suitable alternative exists passage of the presidential motorcade have limit foreign investment here. The bills are nearby in Guam. While expansion is tak­ been asked and answered, albeit inadequate­ still in committee and may be revived in ing place in the Philippine Islands, facili­ ly, and the chief executive's future safety light of the is.test reports. ties in Guam have been curtailed, par­ remains a matter of concern to many The Commerce report noted "foreign direct ticularly at the Guam ship repair facil­ citizens. investments in the United States, despite ity where operations have been severely Among those concerned citizens are the recent large increases, are stlll a relatively decreased. alert representatives of a Washington public small factor in the nation's economy." U.S. bases on U.S. soil is the best insur­ relations firm which promotes the use of Foreign investment has been concentrated safety belts in automobiles. First off, they in manufacturing, petroleum and insurance. ance of needed capabilities being avail­ wanted to know whether President Ford had Investments have recently been stepped up able when needed. Dependence on for­ been using his own seat belt at the time of in U.S. real estate, but firm figures aren't eign installations is an unreliable policy the collision. And they also wanted to know yet available. and should be avoided whenever possible. whether the President's Secret Service driver The report said foreigners recently have The.re also exists the question of was buckled up. made major investments in: whether we should needlessly export U.S. The safety belt protagonist pointed out in Indian Head Inc., Signal 011 and Gas, dollars and jobs to foreign countries with a memorandum to a reporter that the De­ Magnavox, Foster Grant (sunglasses), Motor­ economic conditions as they are in our partment of Transportation, which promul­ ola, National Union Electric and Bantam gates the rules requiring the installation of Books. own Nation. safety belts in passenger cars, has a policy of The report said "one sizable investment Naturally, I am also deeply concerned telling its own employes to use them. from Eastern Europe was reported in 1975, about the effects of ship repair operations "Wlll the President buckle up in the fu­ a Romanian joint venture with Occidental levels on the economy of Guam. Unem­ ture?" the memorandum asked. Petroleum Co. to develop a metallurgical ployment on Guam presently exceeds 9.6 Wire service reports from the scene in coal mine by Occidental's Island Creek: Coal percent. Contributing to this was the lay­ Hartford established that the official limou­ Division. off earlier this year of more than 360 .re­ sine was equipped with safety belts. It was U.S. affiliates of foreign companies employ pair facility workers and termination of reported later that the President was not 411,000 persons here, the Commerce report an important apprenticeship program. buckled down at the time of the collision, said. in which he was uninjured. The speed of the The employe totals include Ohio, 25,224 There is little room in the civilian econ­ official car was estimated to have been about persons with an annual payroll of $288 mil­ omy for the skills of these workers. Their 15 m.p.h. at the moment of impact. lion and Pennsylvania, 23,408 and $206 individual problem is compounded by the Accounts of the incident say that the Presi­ million. fact that the.re is no unemployment in­ dent was riding in the right rear seat of surance program on Guam. the stretched-out Continental (34 inches I intend to reintroduce legislation longer than the standard model). Connecti­ U.S. MILITARY PLANNING IN which would partially rectify this situa­ cut Republican Chairman Frederick Biebel WESTERN PACIFIC tion. The present practice of unneces­ was sitting at the President's left, with Rep. Stewart B. McKinney,_R-Conn., riding on a sarily depending upon foreign govern­ jump seat. The agent in charge of the Secret HON. ANTONIO BORJA WON PAT ments for support of U.S. forces and poli­ Service det9.11, Ernest Luzania, was riding in cies is alarming and myopic. Unneces­ OF GUAM the right front seat. IN THE HOUSE OF REPRESENTATIVES sarily displacing skilled American work­ When the Buick carrying six young peo­ ers in the process is indefensible. The ple entered the intersection of Talcott and Thursday, November 6, 1975 welfare and defense of the United States Market Streets with a green light, Secret Serv­ Mr. WON PAT. Mr. Speaker, many of would be better served in many ways by ice Agent Andrew Hutch swerved the Presi­ relying as much as possible on vital in­ dent's car to the left. The Buick's front end the American people are deeply con­ hit the limousine's right front wheel, knock­ cerned about the long range planning stallations such as naval shipyards being ing off a hub cap and a piece of chrome strip. for U.S. defense installations in the located on American territory, manned The Buick's front end, hood and engine were Western Pacific, particularly those of the by American workers, where permanent banged up, but none of the startled young Navy. Programs have been propased to availability is greatly more insured. people inside it was hurt. expand facilities in foreign countries, Thank you. The only person reported injured was Rep. McKinney who broke a finger on his left hand primarily Japan and the Republic of the when he was bounced into the President's Philippines, when there is good reason FORD'S FENDER BENDER REVIVES lap. to question whether these facilities would SEAT-BELT ISSUE Although the seatbelt people referred. to be under our direct control for use as the Hartford incident "a.s a lost opportunity our national security needs and interests for the President to provide positive leader­ dictate. HON. ANDREW JACOBS, JR. ship in the area of auto safety," it should be a In the case of the Philippine Islands, OF INDIANA reminder to most of us--who are not pro­ the government there has already an­ tected. by massive armor-plated automobile IN THE HOUSE OF REPRESENTATIVES shield&-tha.t car occupants need to use those nounced intentions of exercising greater Thursday, November 6, 1975 safety devices. Having the belts and shoulder control over the uses of U.S. bases in that straps in the car provides the means of a.void­ country and of instituting unspecified Mr. JACOBS. Mr. Speaker, I insert the ing injury or death, but, llke a neglected Ufe­ changes in policies regarding control of Washington Star article by Charles Ew­ preserver, the belt system cannot save any­ the Subic Bay Naval Base and Clark Air ing. It was published October 24th, 1975. one who refuses to use it. Force Base. I realize that once in a blue moon a This brings us all ~k to the continuing Increasing our facilities on these bases seat belt might actually cause rather controversy a.bout Motor Vehicle Safety at a time when existing facilities are than prevent injury. Standard 208. This standard is the author- 35490 EXTENSIONS OF REMARKS November 6, 1975 ity for requiring safety restraints in cars. It CARS KILL PEOPLE: HURRY, BAN THE CARI for the Hartford police to guard that fateful revised after a congressional uproar about IT'S A DEADLY WEAPON intersection. And in addition, there would the no-buckle, no-start interlock belt system (By John D. Lofton, Jr.) have been nothing for the President to have last year. The National Highway Traffic Safety WASHINGTON .-My God! In the name of been riding in and therefore there would Administ ration has favored "passive re­ all that is humane and decent, the question have been nothing to run into. straints"-instead of safety syst ems involv­ must be asked over and over again until It's true that anyone who wants to run ing a m otorist's voluntary decision to buckle over someone with a car will probably get one something is finally done: when 1s the in­ a lap belt or shoulder strap--because only sane, mindless carnage going to be stopped! I I somewhere. But an effective car-control law about a fourth of the nation's drivers use will make it a lot tougher for a person so There are now over 100 million of them inclined to get one of these killer machines. the lap belt and even fewer use the shoulder in circulation, and almost any Tom, Dick strap. or Harry can walk in off the street and buy The passive restraint most widely employed one. According to the World Health Organi­ so far (aside from padding) has been the air zation, they kill 26.5 Americans per thous­ bag, an inflatable cushion which is set off and; the annual number totalling nearly MONTY ODETT'S DEATH-AN AWE­ automatically by a front-end collision. It was SOME LOSS installed in several thousand big cars by 50,000 deaths. When 1s the U.S. Congress General Motors as an option priced at $225. going to enact some kind of meaningful car­ In most of the relatively few cases in which control law? What does it take? HON. JOHN H. ROUSSELOT cars equipped with the bag system had col­ Now, it's the President of the United lisions, the bag system appeared to work States, almost wiped out when his limousine OF CALIFORNIA satisfactorily. In one case, a New York man is struck broadside by a carload of teen­ IN THE HOUSE OF REPRESENTATIVES agers in Hartford, Conn. But is Mr. Ford has sued GM for $6 million, claiming that Thursday, November 6, 1975 the air bags in his Buick failed to deploy concerned? Apparently not. Shortly after the properly, resulting in his having been injured so-called "accident," he tells Secret Service Mr. ROUSSELOT. Mr. Speaker, it is last summer. agents and staffers: "These things happen. Don't worry about it." Incredible! appropriate that I pay tribute to a much As a matter of personal judgment, I respected community leader of Palm.­ bought seat belts as add-on equipment for The Chicago Tribune quotes a White House source as saying an investigation has dale, Calif., Mr. Lamont Odett. It was our family car back in the early 1950s. Our with deep sorrow that the people of the children were taught to use them and threat­ been ordered since "somebody didn't function ened with loss of driving privileges if they properly." Evidently the official White House Antelope Valley received word of sat on the belts instead of wearing them. On view is that people cause accidents, not cars. Monty's passing on October 14. the issue of having the President and the Absurd! Dedicated to the very best in journal­ Secret Service buckle up as an example to It is absolutely essential that the Congress ism, Monty Odett was a conscientious the driving public, however, it is evident do two things to restore the peace and newspaperman. As editor and publisher that the decision should be made strictly on tranquility to our cities that has been eroded by the omni-presence of the automobile. of the Antelope Valley Press for 17 years, a basis of presidential security. he led that paper into significant growth As a practical matter, in a given location The first step 1s to turn the spigot off. The and at a certain speed, it may make sense for manufacture, importation, sale and transfer without sacrificing its community orien­ the driver and the occupants of the Presi­ of cars must be made illegal, except for tation. He expressed the integrity of re­ dent's car to be buckled in snugly. Some police, the military and certain licensed auto sponsible reporting. Monty Odett was a Washington area policemen who had to give clubs. Deactivated antique autos ought not skilled journalist and publisher who up their safety belts for an experimental fleet to be outlawed however. consistently and persistently worked for test of the air bags reported feeling that they Secondly, positive aggressive steps must be the good of the community. had much better control of the car while taken to reduce the number of cars already in circulation now. For a period of time, say I join with those who mourn Monty's securely anchored to the driver's seat. passing. The following is an editorial But in other situations it might be safer­ six months, car owners should be allowed to as providing a spit-second difference in re­ turn their vehicles in to the government­ from his paper-the Antelope Valley action time-if the President and his protec­ no questions asked-and they should be fi­ Press. The article typifies Monty as the tive escorts are able to hit the deck or take nancially reimbursed at the current fair mar­ fine newspaperman and community other evasive action as they did when fired ket value. leader he was. on in Sacramento. After this time period has lapsed, then the MONTY ODETT'S DEATH-AN AWESOME Loss For the rest of us, who may need more use, ownership or possession of a car would be illegal. The death of Monty Odett on Tuesday is than a nudge than that of a Cadillac Se­ an awesome loss to the Antelope Valley. ville's seat-belt warning chimes but still I weep for my country when I think about His contributions during his more than 17 don't like the idea of being temporarily im­ the following statistics: years as an involved citizen of this commu­ mobilized by an air bag's going off in our Among the nations of the world, cars in nity are enormous. faces, there 1s a third alternative. It 1s the the United States kill more people per By word and deed, he promoted the Ante­ no-buckle, no-sweat belt system installed by thousand vehicle miles than most countries lope Valley, lending the support of his news-· the American Safety Equipment Corp. on on the face of the earth. Only Austria, West paper and his personal involvement to in­ some Hornets this year. With this system, Germany, Australia, and Canada have a numerable community projects and causes. the belts enclose you automatically when higher auto murder rate than America. As the editor and publisher of the Antelope you enter the front seat. When you're ready During the peak years of the hostilities in Valley Press, he wholeheartedly supported to get out, you simply hang a loop in the Southeast Asia, more Americans died in auto any project that he felt would better the center over a hook next to the windshield. accidents than were killed in the Vietnam community. There 1s no fumbling for buckle or scabbard War. Scandalous! In addition, he actively personally worked because the system stays connected at all At 1972 rates, a child born in Atalnta, for in numerous community endeavors. About times. It just opens up to Teceive you when example, had a one-in-28 chance of being the only thing that ever prevented him and you get in or to release you when you get made dead, seriously maimed, or severely his wife, Miriam, from attending any major out. frightened by either a car, a car owner or community function was if they had other someone who knew a person owning an auto­ commitments at the same time. mobile. He will be known as the prime moving HURRY, BAN THE CAR! IT'S A The United States is the only major country force that made it possible for the Antelope DEADLY WEAPON between Canada and Mexico without a mean­ Valley Freeway to be built on a continuing ingful car-control law. A truly barbarous sit­ year-by-year schedule. As chairman of the uation! Antelope Valley Freeways and Transportation HON. STEVEN D. SYMMS Getting the cars off our streets will not Committee, his low-key, friendly leadership be an easy task. There are a lot of car-nuts was responsible for the annual flow of money OF ID.AHO in this country who believe that the Consti­ that made it possible for the freeway project IN THE HOUSE OF REPRESENTATIVES tution does not prohibit their owning such a to be moved ahead steadily, without delay. Thursday, November 6, 1975 means of transportation. And the car lobby is He was a civic leader in the classic sense, perhaps the most powerful special-interest always willing to devote himself to the job Mr. SYMMS. Mr. Speaker, as the group in Washington. But car-control legisla­ at hand. House Judiciary Committee is consider­ tion must be enacted, and enacted now! As president of the Antelope Valley Prog­ ing gun control legislati-0n I would like There is a lot of loose talk about the pur­ ress Association (now the Board of Trade), poses of automobiles, but they really have to share with my colleagues a little and as chairman of the Four-County De­ only one: running over people. The next time velopment Committee, he demonstrated satire written by columnist John Lofton, someone tells you that people kill people, strong leadership in pushing for improve­ Jr. It is entitled "Ban the Car! It's a cars don't kill people, tell the individual ments on the high desert. Deadly Weapon" and makes the point saying this that he or she ls wrong. He was a key factor in bringing about the that if we ban guns, then maybe we Remind her or him that if cars had been joint-use agreement that resulted in the should ban cars also: outlawed there would have been no reason development of the Palmdale Air Terminal. November 6, 1975 EXTENSIONS OF REMARKS 35491 Water, schools, streets, parks, libraries, and these numbers are even lower for black maker with a social security account in her all kinds of community service developments working women. Thus the proportion of own right not only reinforces the stereotype were enthusiastically supported by him. women workers who receive benefits on their of the dependent wife but also denigrates the He insisted on thorough coverage of the own earnings record and as wives and widows important contribution of the homemaker community-its activities, J:ts people, its has increased from 4.6% in 1960 to 10.5% in to her family, her husband's career and to problems, its tragedies, and its triumphs. 1973. society. The growth and singular success of the Despite the increased participation of I introduced a bill, R.R. 252, in the le.st Antelope Valley Press was due to his tireless women in the labor market, the majority of session and in the previous session which zeal in leadership in publishing "Your Com­ women are still homemakers. These women would extend social security coverage to all munity Newspaper". get no social security in their own right, but homemakers-married, divorced, singled or Now that an untimely death has forced merely share in their husbands' benefits pro­ widowed. A homemaker is defined as any per­ him to vacate the desk where he guided the vided they remain married for twenty years. son between 18 and 65 who performs house­ destiny of the Antelope Valley Press, his two Women divorced prior to their twentieth hold services for other persons, one of whom sons, Monty Jr. and Bill, will continue on in wedding anniversary get no social security is a wage earner. Each homemaker would re­ his place. benefits. Even among those women who are ceive a benefit in his or her own right based The Antelope Valley Press w1ll continue to wage earners, many do not earn a sufficiently on the value of the services provided. The ad­ be guided by the community-oriented jour­ high salary to secure greater benefits than ditional benefits were to be funded out of the nallstic principles practiced by Editor and those received as their husband's wife. In general revenue. I intend to reintroduce R.R. Publisher Monty Odett. The entire newspaper 1974, fourteen percent of aged women re­ 252, but with a more sophisticated funding staff pledges to strive to llve up to the out­ ceived no social security benefits and forty mechanism. standing example of a dedicated newspaper­ percent received benefits as dependents of A new bill should incorporate a wage for man-Monty Odett. their husbands. homemakers commensurate with the serv­ There will be no "30" at the end of this The maximum annual benefit payable to ices provided. I am indebted to the Chase story, because the spirit of Monty Odett the "wife" of a retired worker in 1973 was Manhattan Bank for its pamphlet, "What's a will live in this newspaper and in this Ante­ only $1,556.40. Wife Worth?" which calculates that the lope Valley. The "Working Paper" prepared for this average housewife, with no outside job, puts Committee recommends the elimination of in a total of 99.6 hours a week at 12 different sex-based provisions, such as the depend­ unpaid jobs in the home--jobs like nurse­ ency requirement for widowers, and the ex­ maid and laundress, cook, dishwasher, seam­ SOCIAL SECURITY FOR HOME­ tension of benefits to divorced husbands and stress, maintenance worker and chauffeur. surviving husbands with minor children. This And that doesn't include all the house work MAKERS will permit the contributions of women­ she volunteers for community and school workers to purchase benefits for their fam­ activities. HON. BELLA S. ABZUG ilies previously available only to me.le work­ Chase estimates that if the average house­ ers. I support this concept and have intro­ wife were paid for all the services she would OF NEW YORK duced a bill which incorporates most of these perform, they would cost $159.34 ea.ch week, IN THE HOUSE OF REPRESENTATIVES changes. Passage of the Equal Rights Amend­ or $8,285.68 a year. That happens to be more Thursday, November 6, 1975 ment would assure equalization of these than the average salary of the woman who benefits without additional legislative action. works outside the home. All together, Chase Ms. ABZUG. Mr. Speaker, on October The Task Force package represents an im­ puts the worth of America's housewives at 22, 1975, I testified before the Senate portant first step, but it fails to include any more than $250 billion a year. Other esti­ Committee on Aging regarding their task independent coverage for homemakers. Its mates value a wife's services at $13,000 per force report "Women and Social Secu­ recommendation to reduce the marriage re­ year. rity: Adopting to a New Era." This re­ quirements from 20 years to 15 for coverage Every homemaker would have an account of a divorced spouse is not sufficient. A five in her own name which is retained regardless port discussed the many inequities that year requirement would be more equitable. of separation, divorce, death or remarriage. women suffer under the existing social I have introduced a bill, H.R. 4359, that would The earning credits accumulated as a home­ security system. I am particularly con­ do this. My bill ensures that most divorced maker could be added to if the individual cerned about the failure of the social spouses receive social security benefits. later works outside the home. This is espe­ security system to provide benefits to Another area requiring immediate remedial cially important because many working those v,ho work without pay in the home. action is when a two earner couple receives women drop out of the labor-force for some I introduced a bill to extend social secu­ less total benefits than a single earner couple length of time to rear their children and then making the same salary as their combined return to work. Under this plan these women rity coverage to homemakers when I first income. Besides getting less benefits, the two would continue to accumulate social secu­ came to Congress and again in the last wage earners pay more social security task. rity credit as homemakers. This Will result in session. Following the hearings of the I have introduced a bill, H.R. 4357, which continuous coverage and higher benefits for Senat.e committee, this issue has received will end this discrimination by allowing both working women as well as independent bene­ increasing attention. I have received let­ workers to combine their incomes for the fits for those who remain homemakers. ters of interest and support from women purpose of calculating their social security The bill which I originally introduced pro­ and men throughout the country. I will benefits. Ee.ch spouse would receive an equal vided for the payment of benefits out of gen­ soon introduce a more refined bill dealing share of the benefits. This change will par­ eral revenue. This concept recognizes that a ticularly benefit working couples with in­ homemaker has neither salary nor employer with this issue. comes under $14,000 and insure that they but that her work benefits our entire so­ In an effort to encourage consideration are not penalized for having a working spouse ciety. I am also considering a totally new of this crucial problem I would like to rather than a homemaker spouse. method of funding which parallels the pres­ take this opportunity to insert my testi­ This bill also would eliminate dependency ent social security system and provides for a mony which describes the inequities in requirements for entitlement to husband's contribution from the working spouse and the current syst.em, and also proposes insurance benefits and widower's insurance his employer. This concept is based on the several solutions to remerly them: benefits and also does away with the retire­ recognition that the working spouse and his ment test for certain widows and widowers employer benefit most directly from the serv­ "l'EsTIMONY OF BELLA S. ABZUG, SENATE CoM- with minor children. ices of the homemaker. llrllT'l'EE ON AGING; RESPONSE TO "WOMEN Although the working paper discusses the Consideration is also being given to an in­ AND SOCIAL SECURITY: .ADOPTING TO A NEW question of extending coverage to homemak­ crease in the maximum a.mount taxed by so­ EBA." 0cToBER 22, 1975, AT 9:30 A.M., DmK­ ers, it fails to make any recommendation. I cial security to enable some relief to low in­ SEN SENATE OFFICE BUILDING believe this area to be of crucial importance come homemaker couples who will bear a dis­ The holding of this morning's hearing is to non-employed and employed women. Of proportionate she.re of the social security tax an indication of the growing recognition by course, any legislation for homemakers would burden. Perhaps this is the time to consider the Congress and the public of the severe in­ apply to women and men. whether workers who earn larger salaries equities women suffer under the existing There ls no dispute that homemakers per­ should pay a tax on all their earnings. This social security system. The proportion of form valued services for their family and too could provide sufficient revenue to pay women receiving social security benefits has society. Studies estimate the imputed value for homemaker benefits. increased from 58% in 1960 to 86% in 1974. of homemaker services at 21 % of the Gross These propose.ls differ from the other fund­ Forty-six percent of these women are en­ National Product. But these workers are ex­ ing suggestions in that they do not depend titled to benefits on their own earnings cluded from social security protection be­ solely on contributions from the homemaker record as compared to the 1960 figure of 25% cause their work is unpaid. The result is de­ and her husband. The proposed self-employ­ and forty percent are entitled on the basis pendency upon the husbands' earnings. ment ta.x depends solely on the voluntary of their husbands' earnings. However, the Moreover, if a. homemaker becomes disabled, contribution of the homemaker's spouse. Un­ earnings of these women have decreased from or separated, abandoned or divorced, neither like other workers covered by social security, a 1939 high of 69% of the level of male work­ she nor her family can collect social secu­ no contribution from the employer is man­ ers to only 48 % of all employed males and rity benefits to compensate for the loss of dated. to 55% of all full-time male workers. And her services. The failure to provide the home- The income-splitting option discussed in 35492 EXTENSIONS OF REMARKS November 6, 1975 this report fails to recognize the separate scarcity and threatened scarcity forced food Most of us who went to Rome know it was contribution of the homemaker to the econ­ prices up even for the more affluent people a. starting point--an opportunity, not a solu­ omy. It is similar to the present system but and nations, that we suddenly had a great tion. It is the best opportunity we have for credits the spouses with their own shares a.t new awakening of public concern over the awakening the world-and the U.S.-to the the time of earning rather tha.n a.t the time world food crisis, reaching its peak at the crucial challenge ahead, and the urgent need of retirement. World Food Conference in Rome last No­ for global answers that require global co­ My concepts a.re based on the premise tha.t vember. operation-and more commitment. homemakers contribute valued services to the Perhaps, now, we have an opportunity to It is an opportunity to stem the tide of economy a.nd are entitled to social security mobilize public concern into public action, isola.tionallsm in the U.S., and revive and re­ in their own right for the unpaid work they to assure everyone's chance to survive, to as­ new support for the right kind of economic perform. sure everyone's chance to become productive, assistance aimed at helping people-not kill­ More precious tha.n gold, silver or even to assure everyone's opportunity to eat. ing them by spreading tools of war as po­ gasoline is the combined energy of millions That's why we are here ... and I con­ litical bribes. of American housewives, and yet their un­ gratulate all of you and your sponsoring The real test of the world is going to be paid work ls ta.ken for granted as something group, for your awareness of the challenge who is really concered about people, rather tha.t will Just spring forth eternally. ahead. I want to particularly commend your than power-and who is going to put that I think it is time that their work be given Congressional representatives participating concern for people first. dignity and their personal investment in in this conference, for their awareness and Right now, a billion dollar investment in marriage and family be given legal recog­ leadership. food for the hungry of the world would be nition. Let's hope that out of this conference, and a far greater security investment than an­ the growing number of others like it, all over other two blllion spent on ballistic missiles. our country, we can arouse a new moral com­ We invite you to join us, in the American SYMPOSIUM ON THE WORLD FOOD mitment. Freedom from Hunger ii'ounda.tlon-as hun­ CRISIS-X: HUNGER, HORROR OR For make no mistake about it: what hap­ ger fighters, for humanity's sake. pens from here on will depend, to a great de­ All of us must make the best of this HOAX gree, upon you and me and others like us. opportunity. It may well be our last. Throughout other panels of this confer­ ence, you will hear many experts talk about HUNGER: HORROR OR HOAX, NUTRITIONAL HON. JOHN BRECKINRIDGE what COULD be done-by research, by tech­ OF KENTUCKY nical assistance, byt expanding production ASPECTS OF MALNUTRITION IN THE HOUSE OF REPRESENTATIVES in countries needing it the most, by greater (By Joseph R. Fordham) Thursday, November 6, 1975 sharing of our own food supplies. But there's I'd like to talk about the natural things a long path between what CAN be done, and tha. t happen when a person is malnourished, Mr. BRECKINRIDGE. Mr. Speaker, what WILL be done. The answer is going to some of the horror that does result, and also the importance of a moral commitment be up to our own country, as both the world's about some of the things that are being done by the United States in relieving world greatest agricultural producer and the or could be done to alleviate this horror. hunger, together with a graphic descrip­ world's largest consumer on a per capita In terms of human losses there is no doubt basis, to provide leadership, and set the pace. in my mind that prolonged hunger and its tion of the effects of malnutrition, were The American Freedom from Hunger Foun­ concomitant malnutrition is a. horror-and explored at the World Food Crisis Sym­ dation took the leadership last year in creat­ that man must make the commitment to posium at the University of Kentucky ing a World Hunger Action Coalition, mobil­ eradicate it from this planet. April 1 and 2. Participants in a forum, izing some 75 organizations and more than There are some forty nutrients that we entitled "Hunger: Horror or Hoax," 300,000 American citizens to express to our need in order to survive, that we must ob­ were Herbert J. Waiters, president of the government the concern we felt. tain from our food supply. The Food and American Freedom from Hunger Foun­ We believe we were helpful in getting Agriculture Organization (FAO) of the stronger government commitments out of United Nations points out that about two­ dation; and Dr. Joseph Fordham, Uni­ the World Food Conference. The world thlrds of the world's people either lack versity of Kentucky Nutrition Depart­ turned the spotlight on hunger in 1974. enough energy or obtain insufficient amounts ment. Their comments follow: Never before in history have as many people of one or more of these essential nutrients COMMENTS ON iyoRLD HUNGER become a.ware of the gravity of the world from their dally food. (By Herbert J. Waters) food crisis. In the less developed nations the most Believe me, the horror of hunger is very Never before in history has the world's seriously lacking nutrients are protein, en­ real for those hungry and suffering right family of nations committed itself to the ergy or a. combination of protein and energy, goal that, within a decade, "no child will go and vitamin A. Those a.re the three that I now. In the midst of our own affluence and to bed hungry, that no family will fear for would like to focus on in my time today. normal abundance, we have perhaps too long its next day's bread, and that no human Protein malnutrition is the most prevalent taken food for granted, and too long ig­ being's future and ca.paicities will be stunted form of malnutrition in the world today. nored the history of mankind's struggle to by malnutrition." The FAO world survey of 1963 estimated that feed itself. Never before have the hungry, despairing some degree of protein malnutrition may The adequacy of food is perhaps today a. people of the poorer developing natlons­ affect 50 % of the children in the developing matter of even more vital national and in­ or even the poor and struggling within our countries. Neville Scrimshaw, the noted nu­ ternational importance than ever before. We own nation-had more reason for hope. For tritionist of the Massachusetts Institute of are now face to face with a. world food never before has the traditionally slowly Technology, states that protein malnutrition crisis-and one or two yea.rs of bumper food moving mechanics of international organiza­ is a. public health problem in every country crops in our own country won't solve it. tions been galvanized into quick action in of the western hemisphere south of the For vast populations of ma.ny "have not" the right direction. They know now that United States, in all the countries of Africa. nations, a.nd for vast numbers of "ha.ve not" the situation need not be helpless; that what south of the Sahara., in India, and in most people within a.11 nations, the food crisis appeared to be insurmountable problems can countries of the Middle and Far East. ha.s existed for a long time. be solved-if we will it. In its severest form protein malnutrition Grim statistics abound. Two-thirds of the Yet never before has the United States it­ is ca.lled kwashiorkor. The word. comes from world's population already suffers from tnal­ self, and its people, become more vulner­ the Ghan language and means something like nutrltion. Millions live on the verge of sta.r­ able-and answerable-for the outcome. "the sickness the older child gets when the va.tlon, right now. An estimated 10,000 deaths For while the problem is a global problem, next baby is born." The name is appropriate each da.y are attributable directly either to and it requires global answers to solve it, since it occurs when the baby is weaned from lack of enough food to sustain life, or of the United States did initiate the World its mother's breast--when the high protein the right kind of food to wa.rd off disease. Food Conference in Rome. diet of mother's milk is taken from him and Malthusian prophesies a.re increasing in num­ The year 1974 has passed into history. The he ls weaned to a diet consisting of starchy ber. Starvation on a massive scale, within year 1975 is now with us, and the spotlight gruels. This is often coincidental with the the next decade. is stlll being predicrted un­ of the world is turning, and will turn, re­ birth of the next sibling. less far more is done to prevent it. morselessly, upon us-upon our govern­ The symptoms of kwashiorkor are retarda­ Over the past two decades, in some 65 ment and upon you and me. tion of growth, edema, muscular wasting, countries, I have talked with youngsters with Whether the pledges and the hopes of depigmentatlon of skin and hair, flaky point bloated and extended bellies, dying of pro­ 1974 will become more than rhetoric, dermitltls--splotches on the skin, atrophy of tein calorie malnutrition, among empty­ whether they will move toward reality, will the pancreas, diarrhea, and moderate anemia. breasted mothers desperately trying to keep in the long run depend upon us-upon you Usually a vitamin A deficiency is present their babies alive, among the wizened and and me, not just our government. along with the protein deficiency and this elderly waiting to find escape in death, giv­ The spotlight of 1975 is upon the United results in permanent blindness. The indi­ ing up meager food so younger and more use­ States. And your conscience and mine must, vidual is prone to infections which along with ful members of their families could live . . . in the long run, determine how well, or how diarrhea result in serious deterioration. It has only been over the past year, when poorly, we move. If the protein malnutrition is accompanied November 6, 1975 EXTENSIONS OF REMARKS 35493 by caloric la.ck, the condition ls called ma.ras­ have produced a mixture of corn, sorghum, Yet, ironically, there persists, at the mus which ls characterized by severe tissue cottonseed flour, torula yeast, vitamin A and same time today, strong public advocacy wasting. Some children appear cada.verous­ calcium carbonate which ls sold under the for still new government agencies and a living skeleton--skin and bones. name of Incaparina and ls widely accepted as a beverage or gruel at a cost of 4 cents regulations to protect the consumer. I Scrimshaw estimates that for every case if of kwa.shlorkor there are 100 cases of protein per day. The mixture provides all the essen­ cannot help but think, however, that malnutrition that result in retarded physical tial nutrients for a growing child and will consumers and officials knew in advance growth and psychomotor development. It ls correct all the deficiencies associated with the cost of each new law and each new in mental development that malnutrition kwashlorkor. proposed rule, both of which are borne may take its greatest toll. The human brain Similar combinations of low-cost commodi­ by the public, that government regula­ undergoes three major phases of develop­ ties have been developed for other regions. tions-to the extent they are excessive­ ment: Malnutrition and infectious diseases work would be curbed. 1. hyperplasia-where the total number of synergistically, worsening the character and course of the disease and increasing the death By far the most serious problem is brain cells is rapidly increasing and cell size "economic" regulation. The Federal Gov­ rem.a.ins constant. rate therefrom. The common infectious dis­ 2. hyperplasia and concomitant hypertro­ eases of childhood have catastrophic effects ernment too frequently is found inter­ phy-where cell division ls slowed down but in the malnourished, and ls a. major ca.use vening directly in the marketplace, fix­ cell size is increasing. of the high mortality and sickness rates ing prices, erecting questionable barriers 3. hypertrophy-where brain growth occurs among preschool children in developing to entry, allocating markets, sanctioning only by enlargement of individual previously countries. Scrimshaw in 1969 reported that collusive bidding, and delaying or even formed cells. in the years from 1959-64 the mortality rate prohibiting necessary technological Protein, energy, vitamins, minerals and from measles in Guatemala was 400 times progress. essential fatty acids are known to be in­ that in the United States. The incidence ·and volved in the cellular development of the severity of acute diarrheal disease in infants Something is wrong when- brain and nervous system which extends in are directly related to the degree of nutri­ A small airline operating within a the human from early in the pre-natal period tional deficiency. Pathological states are the State can profitably fly passengers for at least to the 18th month of post-natal life cause of many nutritional abnormalities and as little as $15 a trip, while an inter­ and some believe as long as the 3rd year of nutrition ls a major factor in both the pre­ state airline, which must operate under post-natal life. Nutrition may influence the vention and therapy of numerous diseases. regulations established by the Civil number of cells that develop in the brain and We have at our disposal today a vast store Aeronautics Board, must charge $31 for since the capacity for cell division in the of nutrition knowledge but are faced with the same trip; - brain ls lost early in life, permanently impair the realization that much of this knowledge mental development. Data from animal ls not being used for the improvement of hu­ A company owning three small TV studies and limited data from brains of chil­ man health on an international level. We stations must file a license renewal ap­ dren who died of malnutrition indicate that stlll have much to learn a.bout basic nutri­ plication with the Federal Communica­ the total number of brain cells ls reduced by tion principles, but the disconcerting fact ls tions Commission weighing 45 pounds; malnutrition. that we have not taken much of the knowl­ and So the first three years of life are the edge we have and applied it to the solution of the problems of malnutrition. Government inspectors with little busi­ critical yea.rs for brain development in the ness expertise are permitted to walk human. After this the bra.in no longer de­ A concerted international effort is called velops and you have what you had at that for on the part of nutritionists working with into any company unannounced and dic­ time. anthropologists, sociologists, agriculturists tate work rules. Do we know for sure that the brain is along with biological and physical scientists. There are few apparent benefits to the really harmed by malnutrition this early in Only then will the world hunger-malnutri­ consumer from this kind of interference. life? The effect of nutritional deprivation on tion-population problem be solved. We have Such economic regulation in areas like learning capacity and behavior has been in­ learned during the course of this forum that transportation, energy, and agriculture vestigated in both laboratory animals and a global effort ls needed to increase world is estimated by the Office of Management man. The animal data collectively supports food production and to distribute it more the concept that severe malnutrition perma­ equitably. Technical assistance for agricul­ and Budget to cost consumers from $45 nently impairs learning. In human experi­ tural and economic development must be to $60 billion each year. ments, all of which la.ck adequate controls, provided to the less developed countries. In But Government regulations are not the data ls very suggestive that bra.in devel­ addition, professional and lay personnel in restricted to economic activity. They ex­ opment and future mental development ls nutrition must be educated in these coun­ tend into all facets of our daily llfe. impaired by malnutrition in early life. tries in order to provide nutritional health Small community hospitals, hospitals We know today the ca.uses of the disease of services for those in need. I quote the words of Dr. Normay Borlaug, with 20 to 30 beds, find it difficult to malnutrition. It's not like we are fighting an continue to give adequate medical care unknown. In this country we worry a.bout father of the Oreen Revolution, spoken on cancer and atherosclerosis. We don't know receiving the Nobel Peace Prize 1n 1970. "If because of the volumes of paperwork re­ the exact ca.uses of these, we a.re trying to you desire peace, cultivate Justice, but at the quired by Federal medicare and medic­ find that out. But we know the causes of the same time cultivate · the fields to produce aid health prograrr£s. diseases of malnutrition. more bread; otherwise, there will be no The president of Dartmouth College, In the case of vita.min A deficiency it would peace." John G. Kemeny, says he believes Fed­ cost ten cents per person to supply enough eral power may be the most significant synthetic vita.min A to prevent blindness threat to higher education in the United from xeropthalmia. or keratomolacla for one GOVERNI\mNT REGULATION States. He says: year. A hundred thousand dollars could pre­ vent blindness in a million children for a Federal agencies seem to be competing year. Vita.min A deficiency ls the major ca.use HON. GARRY BROWN with each other in an effort to enforce a wide variety of regulations, and universities of blindness in developing countries. Mil­ OF MICHIGAN Just cannot keep up wtth them. lions of children a.re potentially threatened IN THE HOUSE OF REPRESENTATIVES ea.ch year. The UNICEF-WHO Joint Commit­ We need to act to be sure that in our tee on Health Policy of 1972 acknowledges: Thursday, November 6, 1975 intent to serve the consumer, we have (a) the need for earlier and more fre­ Mr. BROWN of Michigan. Mr. Speak­ quent diagnosis of xeropthalmla. not placed in a straitjacket the suppliers (b) the value of intermittent large doses er, I have just released a poll of my con­ of goods and services, including social of vitamin A to infants and children as ·a stituents which shows 79 percent of those services. To do so only makes the service prophylactic measure. responding think government is involved less efficient and adds the cost to the (c) the continued effort to provide regular too much in their lives. Government reg­ consumer. and adequate vitamin A intake through for­ ulation is one of the ways most frequently Thus, I am introducing today two bills tification of indigenous foods. mentioned. to require, first, congressional commit­ (d) the training of adequate public health And no wonder. tees, and then all Federal agencies to and nutritional personnel to carry out pro­ Consider what we spend regulating state the expected costs as well as the phylactic programs and educate the populace and governmental representatives of the val­ ourselves-an estimated $130 billion an­ benefits of new legislation and new ad­ ue of such measures. nually. Distributed among America's ministrative rules. Successful programs to alleviate protein families, that means each pays on the Let me be clear-I in no way want to malnutrition have included production of average $2,000 a year for Federal Gov­ encourage additional redtape within the low-cost high protein infant foods for post­ ernment regulatory activities. Government. The legislation must be en­ weaning children. The Institute of nutrition Can anyone say benefits are commen­ acted in a practical form, taking into for Central America and Panama (INCAP) surate? consideration that some programs would 35494 EXTENSIONS OF REMARKS November 6, 1975 have a relatively minor impact and Arthur Schlesinger, Jr., in the Wall Since 1920 more Americans have lived in should not be required to submit such Street Journal speaks to the symbiotic cities than on the countryside. One supposed an analysis. However, for those that are relationship between New York and the that the ancient hatred might have dlmln­ to be so required, I think it might be Nation, and I wish to take this oppor­ ished. Of course a certain amount of Scha­ denfreude was to be anticipated over the well to consider the advisability of re­ tunity to share it with my colleagues: troubles of New York City. New York has quiring them to publish the rationale [From the Wall Street Journal, Oct. 29, been full of itself too long, has drained too behind their estimates of costs and bene­ 1975] much ta.lent and money from the hinter­ fits to the taxpayer and consumer. MAIN STREET'S REVENGE lands, has been too proud and patronizing, In short, it only makes good sense that (By Arthur Schlesinger, Jr.) too careless and contemptuous, not to ex­ the committees of the House and each pect that the rest of the country would derive For an historian there is something at once a certain pleasure when it fell into difficul­ Federal agency make a determination professionally fascinating and civically scan­ first of the anticipated costs which will ties-much as the rest of the world derives dalous about the current rage against New a certain pleasure from the humiliations of result from their proposed laws or ad­ York City. the United States. A student of the past inevitably finds a ministrative rules. But Schadenfreude is hardly a rational A senior Government official said it sort of delight when he encounters histori­ basis for public policy. Yet a President of the best: cal themes in a contemporary context. The mistrust of cities is almost the oldest, for a United States, who has displayed such All we are asking is for regulators to con­ long time one of the most cherished and solicitude for South Vietnam and Zaire, such sider their actions in the spirit of value evidently one of the most tenacious of compassion for Lockheed and Penn Central, received for money spent. Since consumers American traditions. Jefferson thought that now denounces the idea. of a.id to New York end up paying higher prices brought on by the American people would remain virtuous City and raises cheap cheers around the regulatory actions, we want federal agencies as long as they lived on the countryside; but country by plucking the old anti-big-city to be sure the benefits equal the costs to "when they get piled up upon one another nerve a.t every opportunity. "The imminent society. in large cities, as in Europe, they will become fall of Saigon," as Senator McGovern said corrupt as in Europe." "I always seem to the other day, "drove the Ford administra­ suffer some loss of faith on entering cities," tion to demand another billion dollars of NEW YORK AND THE NATION Emerson wrote Carlyle. "They are great con­ aid, but the imminent fall of New York finds spiracies .... You can scarce drive any craft that administration resistant even to a bond here that does not seem a. subornation of the guarantee." HON. HENRY A. WAXMAN treason." Morton and Lucia White in their That is why this historian finds President OF CALIFORNIA illuminating book "The Intellectual Versus Ford's calculated effort to rekindle the archa­ ic American hatred of the cities, however IN THE HOUSE OF REPRESENTATIVES the City" show how deeply hostility to the city entered into the 19th-Century American fascinating professionally, sad and weird Thursday, November 6, 1975 mind. from the viewpoint of the national interest. This hostility sprang initially from polit­ This writer, who was born in the Middle Mr. WAXMAN. Mr. Speaker, perhaps ical philosophy. The Jeffersonians were West and grew up in New England, has no too much has been said recently about convinced that a democratic republic re­ great commitment to New York. I have lived New York. After weeks of agonizing dis­ quired a wide distribution of property, and here pleasantly enough for nine yea.rs but, cussion the debate has failed to turn on that this in turn implied a nation of small though I vote and pay taxes in New York, I the qu~stion as to how to help the city freeholds in a predominantly agricultural do not quite regard myself as a New Yorker. survive. It has, instead, evolved into a society. Cities meant commerce, finance If I still lived in Ohio or Massachusetts, I and industry-militant and acquisitive would feel just as astonished by this extra.or­ spectacle governed more by emotion than dinary display of presidential atavism. reason. The very framing of the issues wealth versus a. propertyless and conse­ quently demoralized working class. "The Jefferson, as he conceded in later yea.rs, surrounding New York's fiscal crisis has mobs of great cities," said Jefferson, "add lost his argument in his own lifetime. Cities created an atmosphere in which it is im­ just so much to the support of pure govern­ a.re here to stay, banks, industries, mobs, possible for a responsible, middle ground ment, as sores do to the strength of the hu­ immigrants and all. The United States must to be explored. Proposals for meeting the man body." stand or fall as a.n urban society. Our cities are of course imperfectly governed. This was city's needs have been linked with A "SIMIAN" RAGE vindictive measures which would punish true long before Lord Bryce wrote in 1888 The hostility was nourished by the ro­ that "the government of cities 1s the one rather than truly assist. And New York mance of the wilderness and the frontier. conspicuous failure of the United States." languishes through it all. It was nourished by the increase of immi­ American cities-New York preeminently The inevitable, and tragic, result is gration, bringing a.lien peoples to the so-a.re far better governed today than they that the people of New York face the American shore. It was nourished too, one were a cen.tury ago. No doubt New York has prospect of enormous suffering and social cannot doubt, by rural and small-town been living beyond its income in recent years, disruption. Should default occur, the ef­ envy of the illicit pleasures and excite­ and no doubt this is reprehensible. It does ments supposedly rampant in the city. seem, however, to be a peculiar charge to be fects will hardly be contained. It is naive Mencken spoke of "the yokel's congenital to believe otherwise. Faith in the integ­ made with such Pecksniffian self-righteous­ and incurable hatred of the city man-his ness by the President who is running up the rity of other American cities will fur­ simian rage against everyone that, as he largest peace-time deficit in American his­ ther erode. Our fragile recovery from sees it, is having a better time than he is." tory and is p111ng the national debt to a size the recession could be reversed-with This, Mencken argued without undue exag­ that would have seemed unimaginable a short global implications. And should assist­ geration, lay behind Prohibition, the Mann time ago. ance come after the fall, as its full reper­ Act, the Comstock laws, the anti-evolution New York City is in trouble in pa.rt because cussions are felt, it will have to be much laws and other statutes imposed by the of the errors of its elected officials-errors countryside on the city. abetood. It must be said, by the great news­ more extensive than even New York's In due course the depravity alleged to most vociferous supporters are asking papers and banks of this city, which have be innate in all large cities was presumed had ample time over the last generation to for now. to be concentrated In New York. William compel a succession of mayors to understand Most importantly, we would have to Jennings Bryan, speaking for the farmers, the folly of their ways. But New City is more live with the realization that the the fundamentalists, the prohibitionists and fundamentally in trouble because it has generosity of the American spirit had the other powers of rural and small-town played a national role and assumed burdens been tested and found wanting. America, called New York "the enemy's for the whole country. For more than a cen­ In his handling of New York's crisis, country." American cities. and New York tury, for example, it has assumed the pri­ most of all, as Morton and Lucia White mary burden of welcoming immigrants to President Ford has again demonstrated summed up the national indictment were that he is unable, as a leader, to help us this land, finding them jobs, teaching them deemed "too big, too noisy, too dusky, too English, assimilating them to American life. understand and cope with the dilemmas dirty, too smelly, too commercial, too In recent years it has assumed the additional we face. He has cheapened the central crowded, too full of immigrants, too full of burden of receiving poor and dispossessed issues before us, by reducing the argu­ Jews, too full of Irishmen, Italians, Poles, American citizens, thereby reducing tensions ments to their most elementary and too industrial, too pushing, too mobile, too and taxes in the South and in Puerto Rico. fast, too artificial, destructive of conversa­ meaningless levels. This sad characteris­ These are national burdens. They are not tion, destructive of communication, too tic of the Ford administration has been greedy, too capitalistic, too full of automo­ the product of the individual's fecklessness sustained on the issues of energy, the biles, too full of smog, too full of dust, too or wickedness of a single city. Herblock made economy, foreign policy, goverrunental heartless, too intellectual, too scientific, in­ the point effectively in his cartolln showing regulation, and now New York. . sufficiently poetic, too lacking in manners, a figure representing New York City, the New York's dilemma, however, 1s cen­ too mechanical, destructive of family. Statue of Liberty ("Give me your tired, your tral to us all. A recent column by tribal and patriotic feeling." poor ...") in his hand, saying to the Secre- November 6, 1975 EXTENSIONS OF REMARKS 35495 tary of the Treasury: "Maybe you'd like to ings on programs for the education of tem is a. computerized communications net­ stand this in ifront of some other city." children of migrant and seasonal farm­ work that provides a. school with vital infor­ Beyond this, New York has played a role workers. mation on new migrant students in a few of national leadership in vital areas of cul­ hours. In 1970 this central data bank in Little ture and communications. In communities The National Education Association Rock, Arkansas, was established to compile across the Republic, music, painting, the with its affiliates has joined with commu­ the records of all migrant children, and by dance, writing, publishing, the theater, tele­ nity groups around the country in an July 1971, a.11 48 mainland states were par­ vision, design, museums, libraries, philan­ effort called Project 1975, the aim of ticipating in the system. thropy are stimulated by and considerably which is to eliminate all forms of educa­ Migrant Title I (E.S.E.A.) seeks "to iden­ dependent on what happens in New York. tional neglect. One phase of this project tify and meet the specific educational needs These are national, not local, services. H is the National Conference on Educa­ of migrant children -through: remedial in­ Main Street sets out to punish New York by tional Neglect, designed to focus the struction; health, nutritional and psycho­ forming a ring and cheering on its discom­ logical services; cultural development; and fiture, as Gerald Ford would have us do, the country's attention on this national prevoca.tiona.l training and counseling. Spe­ result will be to punish not New York alone blight and provide a forum for sharing cial attention in instructional programs is but the nation as a whole. information and exploring strategies for given to the development of the language arts, including reading, speaking, and writing A NATIONAL ASSET reducing neglect in 16 specific areas. While I urge my colleagues to find time in both English and Spanish." New York City has made indispensable in their busy schedules to read the com­ Bilingual Education Act (Title VII contributions to the national well-being. It E.S.E.A.) authorizes funds to school dis­ ls a national asset. Its difficulties have to a plet.e report recently published on this tricts "to develop a.nd carry out new and substantial degree national causes. If Blll conference, I particularly want to share imaginative elementary and secondary Simon himself had been in Gracie Mansion with them one portion of that report, school programs designed to meet the needs for the last decade, New York would still "Neglect in the Education of Migrant of large groups of people with limited English be in trouble today. Its misfortunes arena­ Children." I include this report and rec­ speaking ability." tional misfortunes. Its rescue is surely a ommendation at this point in the Day Care and Head Start. The Migrant Di­ national responsibllity-rather more, one RECORD: vision of the Department of Labor currently would think, than the rescue of South Viet­ allocates $1.8 million to day-care programs nam and Zaire. NEGLECT IN THE EDUCATION OF MIGRANT for migrant children. The Office of Child De­ And New York's misfortunes are na­ CHil.DREN velopment administers head start programs. tional misfortunes in another sense. For SUMMARY OF THE ON-SITE REPORT The recent on-site investigation of mi­ what is happening in New York City, as There are over 500,000 migrant children in grant education in Arizona, conducted with the U.S. Conference of Mayors has done its the United States and their lives are a "cycle the assistance of the Arizona Education As· best to make clear to the Ford administra­ of uprootedness and frustration." For any sociation, focused on three schools. Dysart tion, is part of a genera.I urban crisis. New child, the process of switching to a new school Elementary School, Peoria, Arizona., was se­ York is only the most visible and (because has significant effects. When this ls com­ lected as a demonstration project for Title it has assumed so many national burdens) pounded by four moves a year, the depriva­ I, ESEA funds. The schools employed a mi­ the most vulnerable of our cities. If New tion of poverty, and an exceptionally high grant education director, and administrators, York goes, the chain reaction will affect incidence of disease, it is not surprising that teachers and community people participated not just the municipal bond market but the over 60 percent of migrant students never in planning and implementing the program. morale and future of cities across the land. complete high school. Some teachers participated in in-service Nor wlll the fall-out be confined to the Lack of continuity in the migrant child's training and gained a greater insight into and sensitivity to migrant children, and United States, as Helmut Schmidt of West education is a serious problem. He or she ls Germany endeavored in vain to point out to unable to adjust to any one classroom en­ teacher aides who had bilingual/blcultural the Ford administration a little while ago. vironment or to establish lasting relation­ backgrounds were utilized. Provisions were Now is the time perhaps for our President to ships with teachers and classmates. The child made for the migrant child's physical and start talking about the domino theory. is socially ostracized and regarded a.s an mental well-being by including dental, medi­ The crisis of New York City is not, as · outsider and a disruptive factor. When a cal, nutritional and psychological services. our President seems to think, an isolated child attends several schools a year and is The school uses the Migrant Student Record matter, locally manufactured, locally sus­ Transfer System. unable to remain in one school long enough The other two schools that were visited tained and local in its consequences. It ls to learn the subjects being taught, the result not to be solved by resuscitating small-town have not yet reached the same level of for the child is frustration and failure. achievement as Dysa~Fourth Avenue bigotry about big cities. That attitude died Approximately 75 percent of migrant chil­ in politics with Bryan. Gerald Ford's cam­ Junior High School of Yuma, Arizona, which dren are Mexican American and do not speak has recently begun to address itself to the paign to bring it to life ls a disgrace to the or understand any English. Relatively few presidency. educational problems of migrant children, of their teachers have blllngual training and, and Wellton Elementary School of Yuma as a result, some of these children never learn County, Arizona. anything in school. Problems identified by the three schools NEGLECT IN THE EDUCATION OF For most migrant children, the hardship include: the frequency with which migrant MIGRANT CHILDREN of getting to school is an almost unsurmount­ children are mlscla.ssifled as retarded, the able barrier to their getting an education. need to replace Engllsh-as-a-Second-Lan­ Of necessity, these children develop a sense guage programs with bilingual education, and HON. WILLIAM D. FORD of responsibllity at a.n early age: It is not the need to expand teacher training pro­ OF MICHIGAN unusual for a migrant child to stay home grams. from school in order to babysit with younger IN THE HOUSE OF REPRESENTATIVES The 1969 NEA Representative Assembly in children while the pa.rents are out working. New Business Item 11 called "upon its local, Thursday, November 6, 1975 In order to contribute to the family income, state, and regional affiliates to fully support children as young a.s six go to work in the Mr. FORD of Michigan. Mr. Speaker, the migrant workers' struggle for equal treat­ fields where they a.re exposed to dangerous ment." A program plan for migrant workers during my tenure as chairman of the machinery and pesticides. There are few child was adopted by the NEA Board of Directors Subcommittee on Agricultural Labor, I labor laws for agricultural workers. The fed­ in May 1974; its goal ls "to cooperate and have become painfully aware of the suf­ eral minimum age of 16 is in effect only dur­ coordinate with, and to provide support to, fering of the children of migrant farm­ ing school hours. Moreover, the federal law is national, state, and local efforts for im­ workers. frequently evaded or unenforced for migrant proving the educational and economic oppor­ Children of impoverished families, children. tunities for migrant workers." Many migrant pa.rents have had only nega­ they are usually ill-clothed and under­ tive experiences in their own public school SUMMARY OF CONFERENCE SESSION nourished. Because of the nature of their education, and the hardship of their own Roy 0. Fuentes, Director of the NEA Mi­ parents' work, they are forced to move lives is painful evidence that the schools grant Project, delivered a brief introduction, several times a year and are oft.en il­ gave them little of value. Migrant pa.rents expla.lnlng how the Project originated and legally in the labor market at the age of often have little knowledge about the schools developed. their children attend and, even if they at­ NEA President James Harris spoke to con­ six. As a result, the great majority of ference participants a.bout his recent testi- these children do not finish high school. tempt to overcome their inhibitions and visit While Congress has developed Federal the schools or consult with the teachers, there mony in the hearings on migrant housing is no time: all of their daylight hours are regulations in Fort Lauderdale, Florida. as programs aimed at improving the lot and devoted to work in order to survive. an illustration of NEA's wllllngness to sup­ brightening the future of these young­ The federal government provides some as­ port efforts to protect the rights of migrant sters, we have fallen painfully short of sistance for migrant education through the workers. any meaningful impact. In fact, my sub­ following programs: Vidal Rivera, Director, Migrant Branch, committ.ee is scheduling oversight hear- The Migrant Student Record TransfM Sys- Bureau or Elementary and Secondary Edu- cXXI--22ss-Part 27 35496 EXTENSIONS OF REMARKS November 6, 1975 cation, U.S. Office of Education, contributed 3. Extensive research should be done on debates-something like the old English a brief history of Title I, ESEA programs. He legislation and guidelines, especially in areas "bounder." But it once ha.d a more serious stressed the role migrant educa.tiona.l pro­ of high concentration of migrants. NEA Re­ denotation. A racist was someone who be­ grams ha.ve played in changing the American search a.nd Government Relations should lieved, not in a.ny casual way, but as a matter educa.tiona.l system from a. static, curriculum­ cooperate closely in this area. of intellectual and moral conviction, tha.t he textbook oriented system tows.rd one which RESOLUTIONS (PASSED UNANIMOUSLY) belonged to a master, or at least to a superior, a.ccommoda.tes service-dependent chUdren 1. NEA should grant status of permanency race that ought to rule over the "lesser subject to mobility. Title I migrant funds, breeds." He claimed tha.t there were races he sa.id, cover 581,000 children a.nd 1,800 to the Migrant Project a.nd appropriate funds to cover its undertakings. that ha.d political rights and races tha.t had schools. none. Some South Africans still believe this. Samuel B. Ethridge, Director, NEA Teacher 2. NEA should release a. definitive state­ ment of support for the efforts of the United We commonly think of racism a.s the ideol­ Rights, briefly spoke a.bout the Migrant Proj­ ogy of .the colonial period, but it is important. ect and announced tha.t five regional con­ Farm Workers, recognizing that it is the only organization that truly and adequately rep­ to remember that its most extreme a.nd ferences a.round the nation a.re anticipated frightening manifestation occurred in th& to explore ways in which NEA can help. resents, the migrant worker in his and her struggle to be recognized as a citizen of the heart of Europe. It wa.s in the course of the Manuel Fierro, President, National Con­ United States a.nd as a human being. war against na.zism that racist ideology was gress of Hispanic American Citizens, reviewed forever discredited. In the aftermath of that. lobbying efforts for migrant legislation. NEA GROUP RECOMMENDATIONS war the great colonial empires collapsed, not and other groups should demand that Con­ 1. One of the nine issues a.t the 1975 Criti­ only because the imperial states were ex­ gress initiate programs to deal with the mi­ cal Issues Conference should concern neglect hausted, but also because their citizens could grant problem immediately a.nd channel pres­ in migrant education. no longer sustain the illusion of superiority. ent federal programs in the proper direction. 2. Cesar Chavez should be invited to be a. They had seen themselves in the Nazi mir­ The National Congress of Hispanic American keynote speaker at the 1975 Critical Issues ror a.nd knew the ugliness of the racist creed. Citizens is lobbying for the creation of the Conference. As a world-historical ideology, racism has Community Services Agency a.s a.n independ­ 3. NEA should establish a Special Commit­ been replaced by national liberation. The re­ ent agency with a $40 million a.ppropria.tion. tee on Migrant Education. placement is a great gain for humanlty­ Gilbert Padilla, United Farm Workers, re­ 4. In line with Subobjective 2.1, outlined even if it often means only that local elites. viewed the history of the migrant workers' in the Migrant Education Program Plan bureaucrats and generals now rule in place efforts to obtain recognition of bargaining adopted by the NEA Board of Directors, we of imperial officials (a.nd with an identical rights. He described the struggle of the UFW urge the NEA Board of Directors to take a brutality). Over most of the globe, the vari­ to achieve decent contracts a.nd the attempt stand supporting the Union of United Farm ous races have managed to produce tyrants of powerful unions to destroy it. He also Workers of America. in their efforts to achieve of their very own kind. But just as 16th-cen­ stressed a general lack of a.wa.reness of the what is already theirs-the right to negotiate. tury Englishmen preferred Henry VIII to any migrant situation as the major obstacle to We fully support the position tha.t NEA foreign prince, so 20th-century Indians pre­ the UFW's efforts a.nd requested that NEA has taken regarding Migrant Educational fer Indira Gandhi to the British raj. They pass a resolution supporting the boycott of Neglect, as evidenced by the recent appoint­ are quite right. The UN, with its 142 mem­ lettuce, grapes, and Gallo wine. ment of Roy Oritz Fuentes to the position ber states, each of them formally independ­ AREAS OF CONCERN AND RECOMMENDATIONS as director of the Migrant Project. He and ent, if not actually free, represents the inter­ NEA can count on our full cooperation with national recognition of tha.t preference. It is Educational programs their efforts to improve migrant education. founded on the principle of na.tiona.l libera­ 1. Teacher/ aide training programs being tion. implemented should be carefully reviewed Now, one of the historic expressions of tha.t. and evaluated. principle was the establishment of the state­ 2. Technical education centers should be of Israel-a state tha.t stands for and em­ established in communities or areas with a WHO'S RACIST? bodies the national liberation of the Jewish high concentration of migrants. people. Ravaged by Na.zi racism, the Jews 3. Career ladders should be developed for HON. ROBERT F. DRINAN were reborn in one of the earliest anticoloniaI migrant teacher aides. struggles. The rebirth was officially sanc­ 4. Teacher centers should focus on migrant OF MASSACHUSETTS tioned by the UN, and Israel was among the education. IN THE HOUSE OF REPRESENTATIVES first of the "new states" admitted to the 5. The NEA should assist in the develop­ Thursday, November 6, 1975 international organization. Today Israel is ment of stipended career development pro­ threatened with expulsion, and Zionism, the grams for migrant youth. Mr. DRINAN. Mr. Speaker, the current ideology of Jewish liberation, is branded as 6. High school counselors should undergo movement at the United Nations to con­ a racist ideology. It is important to try to a sensitizing process to better enable them demn Zionism as a form of racism can­ understand what is happening in the UN and to understand and identify the career needs not help but remind us of the virulent what tha.t brand means. of migrant children. It doesn't mea.n that Zionists ma.ke claims. 7. The NEA should hire regional migrant anti-Semitism which has manifested it­ about Jewish superiority; they don't. Their coordinators in pertinent areas !OT the dura­ self periodically throughout history. political convictions took shape in the world tion of the Migrant Project. Those who continue to deny the right of of European leftism a.nd Jewish cosmopoli­ 8. The NEA should assist in screening, test­ the Jewish people to live in peace in a tanism a.nd are permanently identified with ing, and placement procedures to identify fal­ state of their own making do themselves universalist principles. Nor does the brand lacious assumptions about migrant students. display the most blatant form of racial refer in any serious way to the long-term. 9. The NEA should develop a migrant edu­ discrimination. confilct between Jews and Arabs in the Mid­ cation component as an integrated pa.rt of In a thoughtful and concise essay in dle East. Such confilcts are endemic in an the leadership training program for Uni-Serv the November 8 issue of the New Repub­ age of national liberation, and ma.ny states­ directors. lic, Michael Walzer examines the his­ India, Pakistan, Nigeria, Iraq, China a.nd so Legislation on-have fought them out, often at great torical roots of the principle of national cost, without arousing much interest at the 1. The existing child labor laws should be liberation which led to the creation of screened and evaluated. UN. I don't mea.n to endorse this callousness. 2. The NEA should insist on state and local the State of Israel. Mr. Walzer percep­ or to suggest that the UN should be as indif­ monitoring of legislation and migrant edu­ tively Points out that the anti-Zionist ferent to the fate of Palestinian Arabs a.s it­ cation programs by its state affiliates. resolution currently under debate at the has been to that of Kashmiris, Benga.lis, Bia.­ 3. The NEA should ask state affiliates to U.N. constitutes an assertion that the frans, Kurds, Tibetans (to say nothing or stage an intensive lobbying effort for migrant Jews alone, among all the peoples of the those many national groups oppressed by legislation. world, have no right of national libera­ the Russians). The attack on Zionism is not. 4. The NEA should lobby for legislation in fact, a claim for parallel rights for any tion. The United Nations, Walzer ob­ other people; it is quite simply a. denial of creating and funding migrant education serves, has always stood for the principle programs. Jewish rights. 5. The NEA should investigate the possi­ of self-determination. The denial of that Wha.t the UN is in the process of deciding­ bility of the establishment of an independ­ value with respect to the Jews would is tha.t the Jews, alone of all the peoples or ent Migrant Bureau. serve to undermine the moral founda­ the world, ha.ve no right to national libera­ tion. There are certainly precedents for that Research tions of the United Nations itself. I com­ mend this excellent essay to all of my decision, but none that can be cited without 1. NEA Research should assist the Migrant shame and sorrow. The recent vote of the Project Director in identifying and organiz­ colleagues: Social, Humanitarian and Cultural Commit­ ing data. WHO'S RACIST? tee o! the General Assembly represents the 2 . Once the lack of certain data is evident, (By Michael Walzer) reestablishment of a kind of racism within migrant research and evaluation should pro­ It's not likely that anyone, anymore; knows the world of nations: it suggests tha.t some ceed to facilitate the development of remedial what a racist is. The word is an abusive nations have political rights and others ha.ve action. epithet frequently heard in United Nations none. November 6, 1975 EXTENSIONS OF REMARKS 35497 The Arab states and two of their allies on would win converts and elude critics, but should police the specific case, not con­ this occasion, the Fascist regimes of Chile it has become clear that no euphemisms will demn the entire mechanism. and Spain, may belleve that doctrine; I doubt make life any easier for "capitalism, free or How is public good produced? Adam that many other UN members do. But the private enterprise," or any other name we Smith's concept of an "invisible hand" in others are not yet ready to see themselves give to the system. Today not only leftists a free market motivates people to undertake in the mirror of Arab hatred. Votes are ex­ but also responsible conservative and liberal activities, which the community approves changed with a rare cynicism in New York, economists are projecting pessimism a.bout and is willing to pay for. It also motivates and to say that the UN has decided that the survival of the free enterprise system as investment toward these activities and away Zionism is such and such is probably to we know it. from less worthwhile ones. exaggerate the seriousness of the process. According to recent surveys, much of the Far from being "obscene," as the system's But it is serious enough; most of the Euro­ public ( 1) has lost fa.1th in the corporate bitterest critics like to say, average profits pean and many "Third World" countries re­ executives who are stewards of the system, are so low as to be discouraging-but it is fused to go along. Though the UN is today and (2) increasingly approves of government not the average profit expectation that con­ a caricature of what it should be, it stm control of prices and profits and "trust­ tinues to draw investors; it is the dream of represents, however inadequately, an impor­ busting" of our larger business enterprises. unusual success. In pursuit of this dream, tant principle: that no race or people can One survey showed that 60 percent of U.S. people will simply work harder; even in the legitimately rule another; that all nations stockholders believe that "competition can't Soviet Union where private gardens account­ have equal rights. Now that principle ls being be counted on to keep prices fair." Under­ ing for only four percent of land cultivated deliberately repudiated-and with it the lying this public hostility to many mani­ produce almost a fourth of the country's moral foundations of the United Nations festations of the free enterprise system is food. Spurred by self-interest With hope for itself.-MICHAEL WALZER. public persistence in believing that corporate gratification, free enterprise does a better net income averages about 28 per cent of job of filling basic human needs; while es­ sales--ea.sily seven times the actual figure. tablished capitalist economies are produc­ Danger signs also include a tendency by ing food surpluses, the Soviet Union stlll has WILLIAM YLVISAKER WARNS OF both business and labor to reduce competi­ to import food, even with 30 per cent of the tion in markets. Much of business seeks free­ people working to raise it. PERILS TO THE FREE ENTERPRISE dom from government intervention when Especially significant to a product develop­ SYSTEM doing well and seeks some aid from govern­ ment company llke Gould is capitalism's ment when doing poorly. While giving Up proven ability to make people technological­ service to the sanctity of competitive pricing, ly innovative. La.ck of this incentive has led HON. ROBERT McCLORY many companies refuse to lower prices for to the shoddy, obsolete products so often as­ OF ILLINOIS competitive gain but unhesitatingly raise sociated with socialist systems. them in pursuit of a competitor's previous Capitalism ls also consistent with ideals IN THE HOUSE OF REPRESENTATIVES increase. Meanwhile much of organized of political freedom. The market system dis­ Thursday, November 6, 1975 labor seeks insulation from all the vicis­ perses economic decision-making, showing situdes of the market system layoffs, dislo• faith in the "common man." Against the Mr. McCLORY. Mr. Speaker, it seems cations, wage reductions and advancement yardstick of sheer efficiency, the free mar­ to me that too few of us recognize the through competition. ket has been described as "a superbly adap­ importance of our American private en­ Another free enterprise bulwark, capital tive super-computer that continuously terprise system as the bulwark upon formation, is more difficult than ever at a monltors consumer tastes." which our individual liberties," our cul­ time when U.S. investment needs are pro­ The classic capitalist forces of supply and tural and social advantages, and our un­ jected at $4.5 bllllon over the next deca.de­ demand have less freedom than ever to bene­ triple that of the last 10 years. Government ficially control labor and products. But the precedented economic position are based. is not ma.king matters easier, with the double most recent attempts at repeal of the laws Not only in the United States but in tax on shareholders' dividends and with its of supply and demand-the Administration's the entire world the benefits which flow voracious appetite for new financing of its Phases One-through-Four of the early '70s­ from a thriving private enterprise are own, creating the danger that someday the showed dramatically that in the absence of crucial. Many large corporations, includ­ power to tax will be the nation's primary competitive pricing, an economy must rely source of capital. Ironically, it might take on wage/ price controls, regulation, ration­ ing the so-called multinationals, are ing or some other creaking mechanism to contributing to economic and social another erosion of the free enterprise sys­ tem-the proposed govel'IIlIIlental Recon­ allocate resources. progress throughout the world. Notwith­ struction Fina.nee Corp.-to relieve compa­ Free enterprise also contains its own con­ standing this phenomenon, our Ameri­ nles unable to raise capital in the open mar­ trol system to avert another concern of can corporations and our traditional ket. critics-the extent of profits. In a free mar­ private enterprise system are threatened This ls not a complete list of the threats ket, excessive profits either attract new com­ to the free enterprise system from private petition or, if based on too-high prices, lead by attacks leveled by socialist and leftist to reduced consumer demand or consumer activists both here and abroad. sector abdication or public sector aggressive­ shifts to existing competition. Mr. Speaker, my constituent, William ness. But these threats are severe enough But after all what is excessive profit? Any T. Ylvisaker, Jr., chairman of Gould Inc., and relevant enough to the interests of absolute standard would have to ignore var­ Gould stockholders and the responsibilities iable in business size, degree of risk, capital a highly successful and truly innovative of your management that a brief review of business enterprise which has expanded requirements, need for research and explora­ criticisms and benefits of the profit system is tion, and market stability. Even on a per­ in recent years in spite of the economic worthwhile to remind us of what is at stake. cent-of-sales standard, a low-turnover, high slump experienced by many other busi­ One centuries-old criticism is the notion risk business (such as aerospace) requires nesses, has sounded a timely call to his that "man can profit except by the loss higher margins than a high-turnover, low­ shareholders and to all American citizens of others." The axiom will come true only risk business (such as food retailing). Per­ to guard, preserve, and promote our if stagnation limits the economy while de­ haps the only satisfactory definition of "how mands for economic rewards increase. Such much profit is enough" is this one I recently American private enterprise system. stagnation is inevitable if it profits-the fuel In a special message contained in the read: "whatever amount will balance re­ of economic growth--dwindle to insignifi­ ward against risk and spur the provision recent annual report of Gould Inc., en­ cance. of those goods and services demanded by the titled "The Perils to the Free Enterprise Profit's simplest definition is "that which community." System," Bill Ylvisaker exposes the fal­ is left over when the costs of some activity When the critics b,ave had their day, the lacy of the attacks on American busi­ have been deducted from the revenue gen­ free enterprise system is like democracy, ness. He has provided logical reasons erated." Telling a busines it should not prof­ often called "the worst system of govern­ it is much like telllng a family it should ment--except for all the others that have why all Americans should work to pre­ not save-profits a.re business savings for serve our private enterprise system as been tried and failed." No better combination renewal of plant and equipment, expansion, of productivity and liberty has been found. an essential ingredient to our American research, innovation and growth, keeping The pa.st year saw evidence of Gould's be­ independence and precious individual and creating jobs. The pensioner, the in­ lief in this lesson of history. Our Dialogue liberty. Bill Ylvisaker's special message surance policyholder, the investor holding a on Technology, our public communlca.tions follows: few shares, and the taxpayer who demands program, warned against dangers to the greater public services from profit-generated symbiosis of capitalism and technology, such THE PERILS TO THE FREE ENTERPRISE SYSTEM: taxes-all depend on these business "sav­ A SPECYAL MESSAGE as "trust-busting" zeal against our most in­ ings," not Just the stereotyped coupon-clip­ novative research establishments and mis­ (By William T. Ylvisaker) ping plutocrat. guided nationalism that would try up the Nineteen-seventy-five was not only a diffi­ Those who criticize the profit motive's intercontinental flow of product innovation. cult year to return a proflt---it was also a self-interest seldom see that the operation Also my letters to shareholders and Congress­ dlffl.cult year for the very concept of profit of the system turns even private greed, men urged removal of the double tax on di­ and the free enterprise system. Some busi­ where present, into public good. Perhaps vidends as an aid to capital formation, en­ nessmen have hoped a new word for "profit" some profit is garnered unfairly-then we couraged retention of DISC to stimulate ex- 35498 EXTENSIONS OF REMARKS November 6, 1975 ports and U.S. jobs, and urged a perma­ have advanced the view that there is, in American strategic strength while Dr. Kissin· nency to the investment tax credit to en­ ger has been heard to ask what, in the nu­ fact, no gap between United States and clear age, strategic superiority could possibly courage expansion and modernization. Soviet defenses. Senator WILLIAM PROX­ w11l mean. We continue to support constructive MIRE is one advocate of this position. efforts to improve the free enterprise sys­ Moreover, Dr. Kissinger 1s obviously anx­ tem's ability to deliver a. better life. We will Columnist Crosby Noyes declares that ious to resolve or put a.side the technical de­ keep trying to educate Americans to the sys­ such a position is a "deliberate mis­ fense policy questions that a.re impeding a tem's benefits and we encourage all that read representation." He notes that-- second SALT agreement--the crowning touch this letter to ask themselves-is there a bet­ The existence of a widening gap between of detente with Mr. Brezhnev. ter way than the free enterprise system? If the military establishments was no insinua­ Whoever has the better of these substan­ not, ask yourself what you are doing to pro­ tion. It was stated ... a.s a categorical fa.ct. tive questions-a question we do not dwell tect it and to educate others to its proven And the attempt to dismiss the evidence as on here--lt may prove risky to remove the value. worthless ... is a palpable fraud. last major obstacle of resistance to Dr. Kissin­ ger's policy. Mr. Schlesinger is to be repla.ced The unfortunate fact is that Secretary by presidential assistant Donald Rum.sfeld, THE DEPARTURE OF SECRETARY Schlesinger has been dismissed in the who also enjoys immense presidential con­ midst of a heated Senate debate over fidence. But even if Mr. Rumsfeld in his new SCHLESINGER constituency did become a significant check future U.S. defense spending. This gives upon Dr. Kissinger, would it happen quickly HON. PHILIP M. CRANE a signal to those who wish to cut the de­ enough to make a difference in the SALT fense budget that Secretary Schlesinger's negotiations? OF ILLINOIS position has, in some sense, been aban­ Similarly, the belated resignation of Dr. IN THE HOUSE OF REPRESENTATIVES doned by the administration. Such a Kissinger from one of his two major jobs in Thursday, November 6, 197 5 view can only encourage those whose the foreign policy establishment--that is, as concern for our ability to defend our­ chief of the National Security Council-is Mr. CRANE. Mr. Speaker, those who selves appears to be minimal. diminished in short run importance by the are concerned about the state of our na­ nature of his replacement. That replacement tional defense can only view with con­ I wish to share with my colleagues the is Gen. Brent Scowcroft, a loyal Kissinger cern the removal from office of Secretary editorial, "Dr. Kissinger's Power," as it lieutenant. appeared in The Washington Star of No­ And what different does it all make? Per­ of Defense James Schlesinger. vember 4, 1975, and the column by Crosby haps none, if this country exercises good Mr. Schlesinger has for several years S. Noyes, "Congress Is Being Misled on judgment in the la.st stages of the SALT been a thorn in the side of those who Soviet Buildup," as it appeared in the talks. One's optimism in that regard will de­ have advocated a conciliatory U.S. de­ pend on one's confidence in one-ma.n shows fense posture. He has opposed conces­ same paper, and insert them into the in foreign policy during presidential election sions at the current round of SALT talks. RECORD at this time: years. In 1972, Dr. Kissinger a.nd President He has, in addition, questioned the basic Obviously the loser in the so-called "Sun­ Nixon undoubtedly cut some corners to de­ assumptions upan which the detente day night massacre" is Secretary of Defense liver the first SALT agreement. We draw from J a.mes Schlesinger and the winner--even 1f that memory the lesson that one man's judg­ policy has been launched. he must now surrender the chairmanship of ment in an election year is not enough pro­ In July 1975, the Soviet press initiated the National Security Council-is Secretary tection in anything so crucial a.s strategic a strong attack upon Mr. Schlesinger. of State Henry Kissinger. arms negotiations. Pravda, the Communist Party newspa­ There is always some hazard in specula­ Insofar, then, as the "Sunday night mas­ per, published a long commentary which tion. Such an affair can be made to seem sacre" proclaims a further accession of power assailed Mr. Schlesinger as "belligerent" more Byzantine, in hindsight, than it really and influence for Dr. Kissinger, it w11l bear and "bellicose" and his statements were is. But in this case the danger seems re­ close watching. We have the highest regard portrayed as "dramatically in contrast mote. for the abilities of the secretary of state. But The donnish brawling of these two princi­ he already has enough power-and perhaps a to the whole atmosphere of Soviet­ pal members of the President's cabinet over good deal too much of it. American contacts on security problems defense and foreign policy issues dates at and the very spirit of the relaxation in least from the October War in the Middle CONGRESS Is BEING MISLED ON SOVIET international tensions." The same mes­ Ea.st. It suggests, incidentally, that a uni­ BUILDUP sage was repeated daily in the Soviet na­ versity senior common room is not bad train­ (By Crosby S. Noyes) tional press and was contained in a ing ground for the gentlemanly arts of bu­ Behind the unprecedented cuts in this lengthy editorial on the main nightly reaucratic self-defense. yea.r's defense budget ls one of the most out­ television news program by a leading Recently, however, Secretary Schlesinger rageous efforts to mislead the Con.gress a.nd made a critical error. To the lia.b111ty of hav­ the American people about the Soviet-Ameri­ Kremlin spokesman on American affairs. ing stepped once too often in Dr. Kissinger's It is unfortunate that the White House can power balance that has ever been way he added the mistake of lecturing the mounted. It a.mounts to a. deliberate mis­ will not have a man of the stature of Dr. House Appropriations Committee about the representation of all the available evidence. Schlesinger to participate in decision­ pending defense budget, ca.Hing the cuts of Among the leaders of this effort is Sen. making from a point of view which dif­ that body "savage." Until he tangled over the Wiliam Proxmire, D-Wis., chairman of a. sub­ fers in many respects from that of Secre­ defense budget cuts with Chairman Mahon, committee of the Joint Economic Committee tary of State Kissinger. The leaders of Mr. Schlesinger could have counted on more which ha.s conducted extensive investigations the Soviet Union must view Dr. Schle­ congressional sympathy in his losing battle into the Soviet-American balance. Largely as singer's departure as a victory for the with Dr. Kissinger than he is now likely a result of the subcommittee's recommenda­ to get. tions, the senate ls now expected to restore more conciliatory U.S. defense posture Whatever one may think to be the policy only a.bout $406 million of a defense appro­ they have hoped for. The Chinese leaders or political--or personal-questions that oc­ priations request that wa.s reduced by the in Peking must view Dr. Schlesinger's casioned Mr. Schlesinger's unceremonious House to the tune of $7 .6 billion. Defense departure as an indication that detente ouster, the main issue is institutional: It is secretary James SChlesinger has denounced is proceeding according to Secretary Kis­ the power of Dr. Kissinger. the House cuts a.s "savage a.nd arbitrary." singer's design, something which they Like many brilliant and determined. men, Proxmire is a dedicated opponent of the view with great trepidation. Dr. Kissinger does not submit gladly to the defense establishment and all its works. His dispersal of power. He seems to regard it as own summary o! the hearings which his sub• Discussing the departure of Dr. Schle­ sufficient check on his operations that he committee conducted la.st summer is that, singer, the Washington Star noted that-- is answerable to the President. The defense "Insinuations of a widening gap between So­ It may prove risky to remove the la.st ma­ secretary ma.de the mistake of interfering. viet and United States mllita.ry power, to the jor obstacle of resistance to Dr Kissinger's He became a nuisance to Dr. Kissinger during advantage of the Soviet Union, a.re nonsense policy ... even if Mr. Rumsfeld and his new the October War in the Middle East, when unsupported by the facts." constituency did become a significant check the two disagreed over the timing and Proxmire bases this assertion on the upon Dr. Kissinger, would it happen quickly a.mount of U.S. resupply to Israel. Since that ground that several witnesses before his enough to make a difference in the SALT confrontation-resolved in Kissinger's favor committee, including CIA Director William. negotiations? by President Nixon-their disagreements E. Colby and Lt. Gen. Daniel O. Graham, di­ have reportedly multiplied. They include rector of the Defense Intelligence Organiza­ Those who argue that U.S. defense is some critical differences over the current tion, conceded the difficulty of comparing the adequate and that the Soviet Union is talks on strategic arms limitation with the Soviet ,and American defense establishments itself pursuing a conciliatory detente Soviet Union. in terms of dollar equivalents. Other factors, posture are contradicting some very un­ The nature of that disagreement is not including the oompletely different economic pleasant facts. Discussing the need to cut entirely clear; but the lea.st we know is that systems of the two countries, they pointed the defense budget still further, some the secretary of defense is worried a.bout out, must be ta.ken into a.coount. November 6, 1975 EXTENSIONS OF REMARKS 35499 What Proxmire does not say----a.nd wh&t is zeal comes to hand than the recent suit posed regulations affecting every aspect of • the crucial point of the hearings that he against the country's tobacco companies American life. But during the first nine conducted-ls that the distortions Involved brought by the Justice· Department at months of this year, when anti-regulation in cost ana.lysis comparisons minimize the rhetoric among our politicians was so in actual gap between the Soviet and American the behest of the Federal Trade Com­ vogue, the Federal Register contained 45,091 defense efforts. The existence of a Widening mission regulators. This suit makes the pages of similar orders and regulations and gap between the military establishments was almost incredible charge that these com­ do-it-or-else rules. no insinuation. It was stated by both wit­ panies have failed to give the public If the Bicentennial means that the pop­ nesses as a caitegorical fact. And the attempt proper notice of the dangers to health ulace should celebrate the governmental to dismiss the evidence as worthless because that the Surgeon General has deter­ hydra that currently dwells in Washing­ of the admitted distortions is a palpable mined to be involved with smoking ciga­ ton, our guess is that most Americans will fraud. rettes. If there is any Government forced choose to sit it out. The suit against the What Colby told the Senate Defense Ap­ cigarette manufacturers says eloquently that propriations subcommittee was exe.ctly what message that has greater currency in what this country needs is a free-handed, Schlesinger had told them: By the best esti­ our culture than this I do not know what privately-run group to regulate the regu­ mate of the American intelligence commu­ it is. The officially required message on lators. Far more dangerous to the public nity, the Soviet Union ls outspending the cigarette packages and advertising has health than smoking, a.re Washington's ap­ United States by as much as 50 percent in more public exposure than the Ten Com­ pointed bureaucrats who a.re convinced that dollar terms in its m111tary budget. mandments and Lord's Prayer combined. they know everything better than everyone Earlier, Colby told the Proxmire subcom­ And yet Big Brother says its not enough else. Such arrogance is inherently self-de­ mittee that the Russians have outspent us and manufacturers of a legal product structive. The question a.t hand is whether every year since 1971, that the cost of their the bureaucracy will destroy itself before it programs in interconitinen

HOUSE OF REPRESENTATIVES-Friday, November 7, 1975 The House met at 12 o'clock noon. conference with the House on the dis­ Committee could forget its debt ceiling The Chaplain, Rev. Edward G. Latch, agreeing votes of the two Houses thereon, bill if we canceled these bonds. We D.D., offered the following prayer: and appaints Mr. MANSFIELD, Mr. Mc­ would have nearly $100 billion under the Be of one mind, live in peace; and the CLELLAN, Mr. INOUYE, Mr. JOHNSTON, Mr. ceiling to handle the public and worth­ HUDDLESTON, Mr. STEVENS, M·r. YOUNG, while needs of the Nation. God of love and peace shall be with Mr. BELLMON, Mr. BROOKE, Mr. SYMING­ you.-II Corinthians 13: 11. Eternal God, our Father, we humbly TON, Mr. CANNON, and Mr. TOWER to be the conferees on the part of the Senate. PERMISSION FOR JOINT COMMIT­ seek Thy guidance and pray that our TEE ON ATOMIC ENERGY TO HAVE decisions and our conduct may be worthy UNTIL MIDNIGHT, MONDAY, NO­ of Thy blessing as we face the pressing CANCELLATION OF FEDERAL RE­ VEMBER 10, 1975, TO FILE REPORT problems that confront us. SERVE BONDS ALREADY PAID ON H.R. 8631 In times of weariness and worry lift WOULD GIVE US $100 BILLION us with an awareness of Thy presence; CUSHION IN DEBT CEILING Mr. PRICE. Mr. Speaker, I ask unani­ in times of difficulties and differences up­ mous consent that the Joint Committee hold us by Thy Spirit; in times of suc­ (Mr. PATMAN asked and was given on Atomic Energy may have until mid­ cess keep us humble of heart and in times permission to address the House for 1 night, Monday, November 10, 1975, to of failure and frustration strengthen us minute and to revise and extend his re­ file a report on H.R. 8631. by Thy grace. In all of life help us to be marks.) The SPEAKER. Is there objection to cheerful in spirit, steadfast in faith, zeal­ Mr. PATMAN. Mr. Speaker, by any the request of the gentleman from ous in all good works, and deepen in us standards, $93 billion is a lot of money. Illinois? the sense of our depenJence on Thee. It is more than we appropriate for our There was no objection. We pray for our Nation and for all entire Defense Establishment and it is nations that the spirit of brotherhood, many times any domestic program. It is service, and love may :reign in every heart 20 times what we hear is needed to take HUGE BOND ISSUE TURNED DOWN and rule in every home. care of New York City. It dwarfs our en­ IN OHIO In Thy holy name we pray. Amen. ergy development programs, and it makes our much publicized welfare programs (Mr. HAYS of Ohio asked and was look like peanuts. given permission to address the House THE JOURNAL Yet, the Federal Reserve has $93 bil­ for 1 minute and to revise and extend his remarks.) The SPEAKER. The Chair has exam­ lion in its portfolio of Government secu­ rities. Ninety-three billion dollars of Mr. HAYS of Ohio. Mr. Speaker, on ined the Journal of the last day's pro­ Tuesday last, the people of Ohio turned ceedings and announces to the House his bonds which have been paid for once with the money of the U.S. Government--al­ down by a majority of approximately 5 approval thereof. to 1 the biggest single bond issue that Without objection, the Journal stands most 20 percent of our national debt. Yet, these bonds remain in the portfolio of was ever placed before a State in the approved. history of this country. There was no objection. the Fe=.eral Open Market Committee un­ canceled-despite the fact that they Mr. Speaker, we have a secretary of have been paid for once-and the Fed­ state in Ohio whose duty it is to conduct MESSAGE FROM THE SENATE eral Reserve draws more than $6 billion elections, and he likes publicity. He fre­ annually in interest payments right out quently gets publicity by being arrested A message from the Senate by Mr. of the Treasury. for drunken driving. At other times he Sparrow, one of its clerks, announced Mr. Speaker, these bonds should be attempts to get it by such ploys as writ­ that the Senate had passed with amend­ canceled-the same as any other paid­ ing letters to me or other people and ments in which the concurrence of the up obligation-and subtracted from the then releasing their contents to the press House is requested, bills of the House of bloated national debt. This would reduce before he mails them. The latest one the following titles: the debt by $93 billion and this action he wrote to me deplored the fact that H.R. 9005. An act to authorize assistance for disaster relief and rehabilitation, to pro­ would leave the Federal Government with I sent out a speech I made on this floor vide for overseas distribution and production a big cushion in its debt structure. This to constituents in my district pointing of agricultural commodities, to amend the would enable us to appropriate the funds out how much interest those bonds would Foreign Assistance Act of 1961, and for other necessary to meet the needs of our cities cost in view of the probable default of the purposes; and and rural areas. It would enable us to city of New York, and he reminded me H.R. 10029. An act making appropriations meet our much talked about goals of that I had a duty to file an expense ac­ for military construction for the Department decent and sanitary housing for all count. I know that. I have always com­ of Defense for the fl.seal year ending June 30, Americans. plied, and I will file an expense account, 1976, and the period ending September 30, 1976, and for other purposes. These bonds should be canceled with­ which is $940 for the printing, right out out delay and the Federal Reserve re­ of my own pocket. The message also announced that the quired to come to Congress for appro­ Mr. Speaker, I just want the secre­ Senate insists upon its amendments to priations like any other Government tary to make sure that the people who the bill (H.R. 10029) entitled "An act agency. It should not be allowed to con­ raised $2 million from the bankers and making appropriations for military con­ tinue to draw $6 billion in interest on the contractors, in a futile effort to get struction for the Department of Defense paid-up bonds-$6 billion of tax funds, these bond issues passed, also file a re­ for the fiscal year ending June 30, 1976, unaudited, unchecked, and unappro­ port; and if he can come out of his and the period ending September 30, priated. alcoholic stupor long enough to write 1976, and for other purposes," requests a Mr. Speaker, the Ways and· Means another letter, I wish he would.