3736 CONGRESSIONAL RECORD - HOUSE March 7 to get the two-price wheat program en­ that the Senate now stand in adjourn­ ordinate a course of action for the pur­ acted. I fear that unless the adminis­ ment until tomorrow at 12 o'clock noon. pose of halting the rapid erosion of our tration pushes for, and is successful in The motion was agreed to; and (at national intelligence effort. The pres­ achieving the passage of a feed grain 7 o'clock and 8 minutes p.m.) the Sen­ ent situation is outrageous and intoler­ bill which includes wheat as a feed grain ate adjourned until tomorrow, Friday, able. before the wheat refer end um occurs, March 8, 1963, at 12 o'clock meridian. There has been talk of an intelligence much of the hard work will have gone gap. There is an intelligence gap. The down the drain, and with it might very gap is in the intelligence of those who well go permanently the two-price wheat NOMINATION are daily revealing the secrets of the program. Executive nomination received by the intelligence operations of the U.S. Gov­ Grain producers in my section of the Senate March 7, 1963: ernment. In recent weeks there has country, I believe, want desperately to POST OFFICE DEPARTMENT been a great excess of talk about the raise wheat for food ori diverted acres, Fred Gates, of Minnesota, to be a member procedures of our intelligence apparatus. but they feel that there is no assurance of the Advisory Board for the Post Office Critics have made public statements on that the two-price wheat legislation will Department, vice William C. Doherty. matters which should never be discussed be of any help if noncertificate wheat in public. The administration has mis­ is to be priced at $1.30 per bushel while •• ..... •• takenly allowed itself to be goaded into effective supports on corn will be $1.07, revealing information detrimental to our the figures mentioned in many of the HOUSE OF REPRESENTATIVES best interests. discussions to date. Along with many other Americans I I trust that the administration and THURSDAY, MARCH 7, 1963 am tired of these demonstrations of bad the Department of Agriculture will give The House met at 12 o'clock noon. judgment. Every day some high rank­ serious consideration to this problem, Rabbi Maurice Lamm, Floral Park ing intelligence officer is quoted in the and that, as a result, they will take im­ Jewish Center, Floral Park, N.Y., offered newspapers on one subject or another. mediate and vigorous steps to secure the following prayer: These are men who, from the standpoint feed grain legislation which will apply to of the general public, should neither be Supreme and Allwise Lawgiver: Thou seen nor heard. A passion for ano­ the 1964 crops in the very near future. who hast endowed men with the noble Mr. President, I ask unanimous con­ nymity is an integral part of their jobs. ambition and blessed ability to lead fel­ Members of both the legislative and ex­ sent that the editorial to which I have low men in the paths of right in the af­ referred be printed at this point in the ecutive branches have publicly discussed fairs of state, and hast inspired them to matters which should only be discussed RECORD, in connection with my remarks. serve the people of these United States There being no objection, the editorial behind closed doors. Headlines are not with honor: so precious as to warrant jeopardizing was ordered to be printed in the REC­ Invest those legislators gathered here ORD, as follows: our national security. in august assembly with deep souls so The deterioration of secrecy in regard LET 'EM GOBBLE OREGON GRAIN that, by personal example, they may il­ to our intelligence-gathering techniques Think of turkeys and, if you are imagina­ lustrate the finest and most worthy began in 1960 when a U-2 plane was shot tively inclined, you think of brown and traditions of this great Republic to the savory drumsticks, marching agreeably onto down over Russia. Neither the executive end that they will lead not by pointing branch nor the legislative branch is Thanksgiving tables. to high ideals but by standing for them. Oregon people have for quite a long time blameless in revealing secrets. Both been proud to make an annually increased Grant them great hearts so that Democrats and Republicans must share count of the marching drumsticks. Our pro­ through their kindness and care they the blame. The question, however, is ducers have made quite a go of the broad­ may bring on a time of healing for the not so much who is to blame for the past, breasted bronze. multitude of lives emptied of meaning, but where do we go from here? Now comes the Oregon Crop and Live­ for the multitude of souls scarred with To be successful, intelligence activities stock Report Service to say "Oregon turkey the weary search for peace and rest, for must be secret. To let the enemy know growers intend to raise 3 percent fewer the multitude of hearts stabbed with the turkeys in 1963 than in 1962." just how many of his secrets we know frustrations of our incredibly complex and just which ones we do not know, By contrast, the Nation's turkey growers existence. intend to raise 3 percent more than last gives him a priceless advantage. Today's year. Bless them with powerful hands so headline may cost the lives of the human The reason for the reduction in Oregon, that, with the practical sagacity which is sources of information. The enemy can it seems, is not deficiency in quality, which their hallmark, they may unite and solid­ find our intelligence sources much more is as high as ever, but the penalty cost of ify a globe jigsawed with boundaries, easily when he knows what we have feed grains. Feed grains for Oregon flocks separated by Iron and Bamboo Curtains, found out. This knowledge helps to pin­ cost about $16 to $20 a ton more than in cut up into airspace, divided by latitude the Middle West and along the Atlantic point the location of intelligence activ­ numbers, and fenced with radar screens. ities, and once knowing the location, the coast. The differential, which represents Bestow upon these servants of the pub­ freight costs, can present a real challenge discovery of the means is much easier to turkey economy. lic Thy blessings, 0 Lord. and as a result intelligence sources dry Once Oregon turkeys were sent to the May the Lord grant strength unto His up. people. tables of the Middle West and the Atlantic Our immaturity and indiscretion in coast. Now, the principal market is in and May He bless His people with peace. around Portland with the second-best mar­ Amen. these constant disclosures is making us ket around Seattle. California produces the laughingstock of the world. Offi­ most of its own holiday birds and even cials in Moscow, Peiping, and Havana sends selected sizes to the shopping cen­ THE JOURNAL must applaud our stupidity in announc­ ters of Portland. The Journal of the proceedings of yes­ ing publicly facts which they would We hate to think of those marching Or­ terday was read and approved. gladly spend huge sums of money en­ egon drumsticks in shorter columns. Some deavoring to obtain. Responsibility on hope can be seen in the plan for wheat our part is urgently required. Let us marketing on which the Nation's wheat RAPID EROSION OF OUR NATIONAL farmers will vote this year. If the grain be silent with respect to these sensitive growers approve it, the Department of Agri­ INTELLIGENCE EFFORT matters. culture would set a lower price for feed Mr. MAHON. Mr. Speaker, I ask Mr. John McCone, as Director of CIA, wheat than for wheat used for human con­ unanimous consent to address the House is charged with protection of intelligence sumption. And if that feed price is favor­ for 1 minute, to revise and extend my re­ sources. Public Law 253, 80th Congress, able, it could be a boon to Oregon turkey marks, and to include extraneous matter. 1st session, states: growers and wheat farmers alike. The SPEAKER. Is there objection to And provided further, That the Director the request of the gentleman from Texas? of Central Intelligence shall be responsible There was no objection. for protecting intelligence sources and meth­ ADJOURNMENT Mr. MAHON. Mr. Speaker, I shall ask _ods from unauthorized disclosure. Mr. MORSE. Mr. President, under the President, the Vice President, and the I call on him to fully carry out the dif­ the order previously entered, I move Speaker of the House to undertake to co- ficult and important duties of his office 1963 CONGRESSIONAL RECORD - HOUSE 3737 in this respect. A governmentwide co­ session at the time of her death last According to him, there is no "intelligence ordination of effort is required. November, I think it is fitting that we gap," as some have alleged. The gap, the pause pay our respects to the memory Senator charged, is not in the fact-gathering The American people are interested in to but in what he called the failure of the our intelligence activities. They are in­ of. the beloved and revered Eleanor administration to pass the facts along to terested in all phases of the workings of Roosevelt. the people. their Government and their curiosities Coming from Senator KEATING, this ap­ are aroused by the aura of mystery and CONGRESS MUST RENEW PUBLIC plause for the CIA-about which so few adventure which surrounds the intelli­ know so little-is comforting. And it helps gence business. But we are not play­ CONFIDENCE IN CIA make the point that Congress should set ing games. Our national survival to a Mr. ROGERS of Florida. Mr. Speaker, up a "watchdog" committee to keep track great extent depends upon our knowl­ I ask unanimous consent to address the of what that hush-hush Agency is doing. House for 1 minute and to revise and Its operations are secret, necessarily, but if edge of our enemies' activities. The the public can hear from men like Senator price we pay for the luxury of public extend my remarks. KEATING, who is a Republican, that the job disclosure of intelligence activities is the The SPEAKER. Is there objection is being properly done, it can feel more further erosion of our capabilities in this to the request of the gentleman from secure. field. It is difficult enough to obtain in­ Florida? Also, if a bipartisan committee of Con­ formation from closed Communist so­ There was no objection. gress is "in the know" with the CIA, it will cieties. The American people, the press, Mr. ROGERS of Florida. Mr. Speaker, be less easy for any administration to hold and the officials of the executive and the entire scope of this Nation's intelli­ back facts the public should know. gence operations have come under seri­ The CIA watchdog committee was recom­ legislative branches of the Government mended 8 years ago by a Hoover Commission must stop making a most difficult task ous discussion in recent weeks. It is true task force headed by Gen. Mark W. Clark, mqre difficult. that a vital need exif,ts for coordinating World War II hero. It has been v.rged at There is room for plenty of discussion the intelligence functions of the CIA, this session of Congress by such Democrats and criticism of our Government with­ State Department, and the Departments as Senators McCARTHY, of Minnesota, and out revealing sensitive intelligence in­ of the Army, Navy, and Air Force. SMATHERS, of Florida, and by Congressman formation. Clearly, this need has come forth in the PAUL ROGERS, of Florida. wake of each new phase of the current The idea is sound, safe, urgent, necessary. Cuban crisis. COMMITTEE ON BANKING AND But as responsible Americans and PROPOSAL FOR COMMEMORATIVE CURRENCY elected officials we must address our­ POSTAGE STAMP HONORING CUS­ Mr. PATMAN. Mr. Speaker, ·1 ask selves to the responsibilities inherent in citizenship in our Nation. The proper TOMS MEN WHO LOST THEIR unanimous consent that the Committee LIVES IN THE SERVICE on Banking and Currency have until arena for coordinating the daily classi­ midnight Saturday to file a report on fied actions of the CIA and other intel­ Mr. ROONEY. Mr. Speaker, I ask H.R. 3872, the Export-Import Bank, ligence agencies is not on the floors of unanirr..ous consent to address the House along with minority views. the House and Senate, but within the for 1 minute, to revise and extend my re­ The SPEAKER. Is· there objection to sanctity of a joint congressional watch­ marks, and to include extraneous matter. the request of the gentleman from dog committee composed of Members of The SPEAKER. Is there objection both the House and Senate. to the request of the gentleman from Texas? House Joint Resolution 211, which I There was no objection. New York? introduced, proposes such a committee There was no objection. as do the growing number of companio~ Mr. ROONEY. Mr. Speaker, on August COMMITI'EE ON DISTRICT OF bills being introduced almost daily by Members of both the House and Senate. 1, 1964, the Bureau of Customs of the COLUMBIA The establishment of this watchdog Treasury Department is planning to Mr. ALBERT. Mr. Speaker, on be­ committee would cure the ills which have celebrate the 175th anniversary of the half of the gentleman from South Caro­ resulted from poorly coordinated intel­ creation of the customs service by the lina [Mr. McMILLAN], I ask unanimous ligence information, and serve a twofold First Continental Congress. The month consent that the Committee on the Dis­ purPose: of August 1964 will mark the culmina­ trict of Columbia have until midnight First. It would allow Congress to give tion of 1¾ centuries of unbroken dedi­ Saturday, March 9, to file certain re­ regular scrutiny and constant review to cation to the advancement and protec­ Ports. our intelligence operations. tion of the American people by the The SPEAKER. Is there objection to Second. It would reestablish public Bureau of customs. the request of the gentleman from confidence in our Nation's intelligence It is interesting to recall that three Oklahoma? community. of the first five statutes enacted by that There was no objection. Support for this committee is growing First Congress dealt with customs mat­ as its need becomes more evident. The ters. The first statute enacted by the reasoning for congressional check on in­ First Congress provided for the time SPECIAL ORDER TO PAY TRIBUTE telligence operations is clearly put for­ and manner of administering the oath TO THE LIFE AND IDEALS OF ward in the very fine editorial in today's of office for Members of the Federal Leg­ ELEANOR ROOSEVELT Washington Daily News. islature, certain executive officers, and certain officials of the several States Cl Mr. RYA~ of New York. Mr. Speaker, This joint watchdog committee was I ask unammous consent to address the recommended by the Hoover Commis­ Stat. 23, approved June 1, 1789). The House for 1 minute and to revise and sion, the bipartisan panel created by second statute was approved on July 4, extend my remarks. Congress to study ways of bringing 1789, and provided for levying duties on The SPEAKER. Is there objection greater efficiency to our Government. I imported merchandise. This was the to the request of the gentleman from urge all these who have not yet done so first Tariff Act (1 Stat. 24). The third to join the movement now underway to law imposed duties on tonnage of ships New York? and vessels (1 Stat. 27, approved July There was no objection. perfect our Nation's intelligence affairs. WHISTLE UP THE _WATCHDOG 20, 1789). The fourth enactment estab­ Mr. RYAN of New York. Mr. Speak­ lished an executive department called er, I have just received permission for a Senator KEATING, of New York, was the first to sound a warning about the Soviet the Department of Foreign Affairs (1 special order to address the House for 2 buildup in Cuba. He has been· the most Stat. 28, approved July 27, 1789). And hours on Wednesday, March 27. The persistent, and consistent, of those declaim­ the fifth statute established the cus­ purpose of this special order is to afford ing on the way the Kennedy administration toms service. It was entitled "An act an opportunity to all Members of the has handled this hot cigar. to regulate the collection of the duties House to pay tribute to the life and This week the Senator was at pains, in imposed by law on the tonnage of ships ideals of Eleanor Roosevelt, who because remarks on the Senate floor, to say our in­ telligence services-and specifically the or vessels, and-on goods, wares, and mer­ of her great contribution to humanity mysterious Central Intelligence Agency­ chandise imported into the United came to be known as the First Lady of have been "hard at work, producing accurate States" and was approved on July 31, the World. Since Congress was not in information." · · 1739 (1 Stat. 29). 3738 CONGRESSIONAL RECORD ·- HOUSE March 7 The role played by the customs serv­ is equally ·strong in these, and members George E. Spencer, Rio Grande River, Tex., ice in molding the United States to its of these branches would sacrifice their February 24, 1945. if John E. Fasset, Blaine, Wash,, February preeminent position in world history has lives the occasion arose. 21, 1945. largely been unrecognized by the prin­ Mr. Speaker, I request permission to Anthony Cozza, Blaine, Wash., February cipal beneficiary-the American people publish in the RECORD for the first time a 24, 1945. themselves. Since the Continental Con­ list of the customs officers who were Clarence Trask, Washington Camp, Ariz., gress established the first uniform killed by smugglers, killed in line of duty, April 8, 1947. duties, imposts, and excises throughout or who were wounded by smugglers. I Benjamin B. Stone, Brownsville, Tex., Oc­ have today introduced a bill authoriz­ tober 7, 1957. the United States, the customs service John Sellenthin, New York, N .Y., Septem­ has systematically and indefatigably ing the Postmaster General to issue at ber 2, 1962. dedicated itself to our Nation's develop­ such time and for such period in the · George M. Bacon, Norfolk, Va., February ment. When our industries were just year 1964 as he shall deem appropriate a 4, 1955. getting started, the customs laws pro­ special postage stamp in commemo1:a­ tected them against foreign competition tion of the 175th anniversary of the U.S. until they grew to the point where they Bureau of Customs and those employees THE TWO-PRICE COTTON are a bulwark of democracy. The cus­ who were killed in line of duty. I be­ PROGRAM toms service provided the major share lieve this would be particularly appro­ Mr. WHITENER. Mr. Speaker, I ask of our Nation's revenue before the in­ priate that special recognition thus be unanimous consent to address the House come tax was passed by Congress in given to the forthcoming celebration: for 1 minute, to revise and extend my 1916. Today, customs collections ac­ CUSTOMS OFFICERS WHO HAVE DIED IN THE remarks, and to include a resolution count for $1 ¾ billion which still repre­ PERFORMANCE OF DUTY adopted by the General Assembly of sents a sizable chunk of our national Frank Chapman, Lajitas, Tex., July 21 North Carolina. revenue. 1908. ' The SPEAKER. Is there objection The United States has not been ex­ John S. H. Howard, Pilares, Tex., February to the request of the gentleman from 10, 1913. North Carolina? travagant in the use of commemorative Joseph R. Sitter, Valentine, Tex. May 24 stamps as a means of recognition of 1915. ' ' There was no objection. service to our people, perhaps rightfully. Fred Tate, Brownsville, Tex., August 11 Mr. WHITENER. Mr. Speaker, on nu­ However, it seems to me that our cus­ 1918. ' merous occasions I have called to the toms service, which has been doing a Robert S. Rumsey, Laredo, Tex., August 19 attention of the House the critical situa­ magnificent job in administering and 1922. ' tion existing in the American textile in­ enforcing our complex tariff laws, com­ Gunther J. Jones, Mercedes, Tex., October dustry by reason of excessive textile bating smuggling, assisting many other 1, 1922. imports and the inequity existing in our James A. Wallen, Rio, Tex., March 6, 1923. two-price cotton program. U.S. agencies in enforcing their laws Orville Preuster, Niagara Falls, N.Y., March and performing countless other impor­ 1, 1926. I was very pleased, therefore, when tant duties, deserves the recognition of a E. B. Webb, Colchester, Vt., March 10, 1926. the General Assembly of North Carolina commemorative postage stamp to honor John W. Parrott, El Paso, Tex., December adopted a resolution on March 5, 1963, its surpassing performance. 30, 1926. memorializing the President and the Very few Americans are aware of the Gerardo Pescara, San Juan, Puerto Rico, Congress of the United States to take fact that many customs officials have January 17, 1927. immediate action to eliminate the in­ Stephen S. Dawson, El Paso, Tex., Febru­ equity existing in the two-price cotton sacrificed their lives in carrying out ary 27, 1928. their official duties down through the Thomas S. Morriss, Fabens, Tex., Decem­ program. The members of the North years since the customs service was born. ber 23, 1928. Carolina General Assembly are t,o be No better illustration of this exists than C. N. Titcomb, Perch Point, Mich., January commended on taking a very forthright the memorial plaque which hangs in the 15, 1929. . and sound Position in regard to this ex­ office of the U.S. Commissioner of Cus­ Arthur M. Beaman, Detroit Mich. July 23 tremely impcrtant matter. 1929. ' ' ' Over 200,000 North Carolinians owe toms in Washington. This plaque con­ Charles W. Rogers, Vero Beach, Fla., Sep­ sists of 17 mounted photographs of offi­ their livelihood to the textile industry. tember 24, 1929. One out of every two manufacturing em­ cers who lost their lives in the service. R. J. Sandlands, Detroit, Mich., July 3 There was the case of Bert Ellison, a 1930. ' ployees in the State of North Carolina mounted inspector from San Antonio, Bert Ellison, San Antonio Tex. August 9 works in a textile mill. The future of Tex., who lost his life in 1930 while pur­ 1930. ' ' ' the textile industry is vital t,o our State suing five Mexican bootleggers. Then John L. Kelly, New Orleans, La., February and indeed to every State in our Union: 9, 1931. The producers of cotton and the manu­ there was John Henry Heard, of El Paso, L. E. Babcock, Lake Champlain, N.Y., Aug­ who died from gunshot wounds inflicted facturers of cotton in our country have ust 17, 1931. an inseparable interest in an overall in line of duty while investigating horse Arnold W. Gilbert, St. Albans, Vt., Novem- smuggling, and Loy C. Henry who was ber 2, 1931. . healthy cotton economy. If shot to death by a paid assassin while Clyde M. Bristow, Tucson, Ariz., January our cotton economy is to continue combating a ring of narcotics smug­ 2, 1932. to enjoy its vital 1·0Ie in the economic glers. There are others from many Daniel A. Romberger, Dania Beach, Fla., life of our Nation the Congress must take other States who also laid down their April 25, 1932. action as quickly as circumstances will lives in the line of duty. John Henry Heard, El Paso, Tex., May 2 permit to remove the advantage enjoyed Since 1900, 42 customs officers were 1932. ' by foreign textile manufacturers in the Herff A. Carnes, Ysleta, Tex., December 2 purchase of American cotton. The killed in line of duty by violators of 1932. ' customs laws or by accident while on House Agriculture Committee has legis­ duty; 49 were seriously wounded or in­ Ralph E. Bowden, El Paso, Tex., March 19 lation under consideration on the sub­ 1932. ' ject. It is my hope that it will be Pos­ jured by violators; 68 were seriously in­ R. C. Nichols, El Paso, Tex. November 24 jured while on duty. During this period sible for us to secure enactment of a 1933. ' ' sound cotton bill without undue delay. 95 smugglers are known to have been Earl Brown, Fort Pierce, Fla., February killed in gun battles with customs en­ 1933. ' Mr. Speaker, under unanimous con­ forcement officers. Loy C. Henry, San Antonio, Tex., June 20 sent, I include the resolution adopted by It seems fitting that the customs serv­ 1934. ' the North Carolina General Assembly ice which entails for some the most Herbert 0. Plasman, Bridgeton, N.J., April on March 5, 1963, in the RECORD at this hazardous kind of duties, is deserving 12, 1935. point as a part of my remarks: of recognition in the form of a com­ Wilson Bourland, Terlingua, Tex., October HOUSE RESOLUTION 16 memorative postage stamp to be issued 13, 1935. Joint resolution memorializing the Presi­ Matthew Kononen, San Francisco, Calif., dent and the Congress of the United on the occasion of the 175th anniversary March 5, 1939. States to take immediate action to elimi­ of · the Bureau of Customs. Of course, Joseph T. Brown, Sebastian, Tex., April 2 nate the inequity of the two-price system many branches of the customs service 1940. ' of cotton cost are not hazardous under today's condi­ Vernon E. Thompson, Limestone, Maine, Whereas on September 6, 1962, the Presi­ tions. However, the spirit of dedication February 1, 1943. dent of the United States, following the 1963 CONGRESSIONAL RECORD - HOUSE 3739 Tarifr Commission's rejection of the Depart­ In the general assembly read thl'!:!e times arbitrary use of discretion by election ment of Agriculture's recommendation for and ratified, this the 5th day of March 1963. officials. The legislation recommended an import fee of 8½ cents a pound on the . T. CLARENCE STONE, raw cotton content of textile imports to off­ President of the Senate. by the President is directed at eliminat­ set the difference between ·the price of raw H. CLIFTON BLUE, ing these abuses. American cotton to foreign mills and the Speaker of the House of Representatives. The President has further proposed price which American mills are required to Examined and found correct: the enactment of legislation to finan­ pay for the same cotton, stated the follow­ DAN L. DRUMMOND, cially assist educational districts en­ ing: (For committee) . gaged in the process of desegregation, to "Thus, the inequity of the two-price sys­ extend the life of the CiVil Rights Com­ tem of cotton costs remains as a unique mission for 4 years, and to make that burden upon the American textile industry, COMMITTEE ON EDUCATION AND Commission a clearinghouse for tech­ for which solution must be found in the LABOR near future. nical information and advice to request­ "I am, therefore, requesting the Depart­ Mr. ROOSEVELT. Mr. Speaker, I ask ing agencies. The enactment of these ment of Agriculture to give immediate at­ unanimous consent that the general sub­ proposals will represent substantial in­ tention to the formulation of a domestic committee of the Committee on Educa­ crements to existing civil rights legis­ program that would eliminate this inequity. tion and Labor be permitted to sit dur­ lation. I am also instructing all other departments and offices of the executive branch to co­ ing general debate this afternoon. In his conclusion, the President made operate fully to this end. Such a program . The SPEAKER. Is there objection to it abundantly clear that his proposals do will undoubtedly require enabling legisla.. the request. of the gentleman from Cali­ not constitute a final answer to the prob­ tion"; and fornia? lem of racial discrimination in this coun­ Whereas in his farm message of January There was no objection. try. He added: 31, 1963, the President stated, a healthy, Other measures directed toward these same growing cotton industry is vital to the goals will be favorably commented on and strength and prosperity of our Nation. Over A JOB STILL TO BE DONE supported, as they have in the past--and they a million persons are engaged in producing will be signed, if enacted into law. our cotton crop. Another million and a half Mr. ROOSEVELT. Mr. Speaker, I ask are employed in converting the raw cotton unanimous consent to address the House While I wholeheartedly applaud the into consumer items. Additional millions for 1 minute and to revise and extend my President's message, I was nevertheless supply goods and services to this industry. remarks. disappointed that he did not mention Cotton exports contribute significantly to The SPEAKER. Is there objection our balance-of-payments position. specifically the Federal Equal Employ­ to the request of the gentleman from ment Opportunity Act, which I intro­ "Our cotton industry-both producers and California? mills-is confronted with many problems duced (H.R. 405) to prohibit discrimi­ which it alone cannot resolve. Because do­ There was no objection. nation in employment because of race, mestic prices are much higher than those Mr. ROOSEVELT. Mr. Speaker, the religion, color, national origin, ancestry, of foreign producers, our -cotton mills must President's message on civil rights was or age. To fulfill its purpose, the bill pay substantially more for cotton than their a compelling and forceful presentation proposes to establish a commission to offshore competitors. Domestic cotton tex­ relative to this most basic national prob­ tile products are being displaced not only enforce fair employment practices. In­ lem. The address was at once both en­ discriminatory employment practices are by substitute fibers in consumer products couraging in its factual description of but also by increased cotton imports. Cot­ as much a part of American values con­ ton exports are sharply lower. recent progress toward securing equal cerning liberty and equality of oppor­ "Loss of markets for U.S. cotton increases rights for ali American citizens, and so­ tunity as are equal access to public fa­ surplus stocks held by the CCC, causes high­ bering in its realistic assessment of the cilities and integrated schools. Passage er and higher Government costs, and reduces progress which must still be made. of such legislation is a necessary and th 1 cotton farmer's income"; and The President has outlined major gains Whereas the textile industry in North in the civil rights area through active vital adjunct to a program for obtaining Carolina is and has been the backbone of the and intensive efforts of both Govern­ full civil rights for all our people. economy of our State, directly employing ment and private groups. More prog­ The goal will be only partially attained 219,000 persons or nearly 1 01,it of every 2 should we obtain universally uniform manufacturing employees in the State; and ress has been made in the continuing struggle to achieve equal opportunity for voting rights, free and equally accessi­ Whereas many additional thousands of ble education, and integration of all North Carolinians are employed in supplying all people regardless of race, creed or services and goods to the textile industry national origin in the last 2 years than public facilities-only to discover that and hundreds of thousands more are de­ in any comparable period in our na­ qualified persons are being restricted in pendent on it for a livelihood; and tional history since the passage of the opportunities for employment due to Whereas imports of foreign cotton tex­ 13th, 14th, and 15th amendments to the irrational and obstinate policies of dis­ tiles have reached an alltime high and are crimination. This is a mostfundamental increasing at an alarming rate; and Constitution of the United States. Un­ questionably the Executive is wholly problem. If not solved, it will result in Whereas these imports of foreign cotton economically established segregation textiles and the unjust inequity of the two­ committed in both word and deed to the price system for cotton have created a situ­ venerable principle of equal opportuni­ when all other vestiges of prejudicial ation that seriously threatens the entire ties for each individual, free from in­ discrimination disappear. Educated, economy of our State and Nation and are vidious and arbitrary distinctions. Con­ trained, and skilled members of min,ori­ responsible for the loss of hundreds of crete achievements have become quite ties are rejected from their rightful place thousands of textile jobs, curtailment of the evident in education, employment and in the labor force, and are justifiably bit­ hours worked in the textile industry, and ter. Unskilled members of these same the closing of many textile plants; and transportation as a result of such con­ viction. groups are placed below similarly un­ Whereas it is acknowledged that the wel­ trained white workers, and suffer first fare of all North Carolinians is vitally inde­ Once having recognized the forward pendent on a healthy, growing textile in­ strides in the field of civil rights, a more and most extensively from unemploy­ dustry: Now, therefore, be it critical analysis is needed. Based upon ment. Here again I would like to quote Resolved by the house of representatives the day-to-day administration and exe­ from the President's stirring message: (the senate concurring): cution of civil rights legislation, and sub­ Race discrimination hampers our eco­ SECTION 1. That the North Carolina Gen­ nomic growth by preventing the maximum eral Assembly implores the President and stantial deficiencies in the laws have development and utilization of our man­ the Congress of the United States to take been recognized, and thus in his mes­ power. It hampers our world leadership by whatever steps are necessary to make Ameri­ sage the President has recommended the contradict ing at home the message we can cotton available to American purchas­ passage of several items of legislation es­ preach abroad. It mars the atmosphere of ers at the same price American cotton is sential to the securing of constitutional a united and classless society in which this made available to foreign purchasers. rights and opportunities demanded by Nation rose to greatness. It increases the SEC. 2. That a copy of this resolution be moral imperatives. costs of public welfare, crime, delinquency, forwarded to the President of the United and disord.er. Above all, it is wrong. States; the Secretaries of Agriculture, Com­ The message has placed greatest em­ merce, State, Labor, and Treasury; and the phasis upon the right to vote. It is I would like here to note my pleasure North Carolina congressional delegation. through the free and equal exercise of at the colloquy between several members SEC. 3. That this resolution shall be in this right that the gains so demanded in of the minority party relating to civil full force and effect from and after its rati­ other areas can be achieved, but this rights. The President, I am sure, will be fication, right has been frustrated by delay and equally pleased inasmuch as he urged 3740 CONGRESSIONAL RECORD - HOUSE March 7 bipartisan support for his civil rights I urge all my colleagues to support this This project was started just last May program. Noting this support, I urge measure and hope that it will receive 1962, and has as its purpose, according that we now get along with the task of favorable consideration in the very near to the U.N.: enacting meaningful civil-rights legisla­ future. To establish an experimental !arm and to tion under the aegis of bipartisanship. undertake land reclamation investigations Progress is being made by a conscien­ U.N. SPECIAL FUND AIDING RED in order to determine the technical and eco­ tious and energetic Federal administra­ nomic feasibility of land utilization in t he tion, and by extraordinarily courageous YUGOSLAVIA area of the Lower Neretva Basin. and dedicated individuals and private Mr. HALL. Mr. Speaker, I ask unani­ The Food and Agriculture Organiza­ groups. More is needed. In accordance mous consent to address the HotJse for tion-FAQ-of the U.N. is administering with declared congressional policy and 1 minute, to revise and extend my re­ the project. It may be that many Ameri­ American principles of justice, it is in­ marks, and to include certain tables. cans will recall· that the FAO also is cumbent upon this body to enact into The SPEAKER. Is there objection concerned with that $1.2 million agri­ law legislation along the foregoing lines. to the request of the gentleman from cultural project in Cuba. Missouri? I find upon investigation that the There was no objection. Neretva, a river in the southwest of ARMS CONTROL AND DISARMA­ Mr. HALL. Mr. Speaker, in continua­ Yugoslavia, runs into the Adriatic Sea MENTAGENCY tion of my remarks to this House about in an area where it is estimated that Mr. RYAN of New York. Mr. Speaker, United Nations aid to Communists, 70,000 hectares of land could be re­ I ask unanimous consent to address the which Americans are subsidizing, I want claimed. To quote the U.N.: House for 1 minute and to revise and ex­ to say that I am heartened by the de­ The government considers that the lower tend my remarks. velopments in New York City yesterday Neretva plain is particularly suitable for ex­ The SPEAKER. Is there objection afternoon. As you know, the United perimental and demonstration work. in land to the request of the gentleman from States has served notice on the United reclamation • • • the area has a good cli­ Nations that we now will pay only our mate, promising soils, good markets, and an New York? industrious population. There was no objection. assessed share of future peacekeeping operations--and nothing more-unless May I ask my colleagues to mentally Mr. RYAN of New York. Mr. Speak­ other countries meet their part of the er, I have introduced a bill today to underline that ·phrase "The govern­ amend the Arms Control and Disarma­ costs. ment considers.'' Nobody has asked It is high time the United States got what the American taxpayer considers. ment Act to eliminate the ceiling upon around to taking this stand. In light of amounts that may be appropriated for We have not been consulted even 40 what our investigation has shown to be percent's worth. the Arms Control and Disarmament the situation with regard to U.N. aid to Agency. Section 49 of the Arms Con­ The Yugoslav view is continued, in a Cuba and other Communist nations, I restricted U.N. Special Fund pamphlet, trol and Disarmament Act (75 Stat. 639) sincerely hope that yesterday's "crack­ now provides that the total appropria­ to the effect that the real, long-range ing down" by our delegation to the goal for the Neretva River is a large-scale tions for the Agency is not to exceed $10 United Nations is only the first step in million. program of flood control, drainage and a complete reappraisal of American aid irrigation. No doubt the Special Fund Mr. Speaker, the search for disarma­ to the world body. ment with effective international con­ expects to be asked to help pay for that Now, back on my investigation topic big job just as soon as the Special Fund­ trols is the most important endeavor of and concerning the United Nations Spe­ this Government and, indeed, of man­ financed land study proves flood control cial Fund I wish to point out to our feasible. I hope they do not call in our kind. We are at a stage in history in colleagues' two little-known projects which nations are capable of destroying U.S. Department of the Army Corps of which the Special Fund supports in Com­ Engineers. civilization as we know it. The recent munist Yugoslavia. Cuban crisis brought home this fact. In We are told the preliminary study con­ As we in this House now realize all too sists of: his eloquent address to the United Na­ well, this is the United Nations fund tions on September 25, 1961, President which is financed 40 percent by the con­ A series of investigations in two selected Kennedy warned the world: polders, one on saline land and one on peaty tributions of American taxpayers. And, soils. Every man, woman and child lives under this is the fund which leads the way for a nuclear sword of Damocles, hanging by the the U.N.'s aid that has involved Ameri­ The investigations are being conducted slenderest of threads, capable of being cut in the fields of water control, drainage, at any moment by accident or miscalculation can taxpayers in the contradictory posi­ or by madness. The weapons of war must be tion of paying to strengthen our enemies. irrigation, reclamation, soil analysis, abolished before they abolish us. My colleagues will remember that in agronomy and farm economics. recent weeks I have advised the House The Special Fund is providing a total The Agency charged with the respon­ of Special Fund aid for nuclear research of 21½ man-years of expert services, 6 sibility for disarmament should not be in this same Yugoslavia, of Special Fund man-years of fellowships, plus equip­ hamstrung by an arbitrary limit upon aid in the field of aviation for Red Cuba, ment and vehicles. All of this coming its appropriations. Under the present and of Special Fund and other U.N. aid from the nearly bankrupt United Na­ law the Arms Control and Disarmament to Poland and to Cuba in a number of tions-if the United States keeps Agency cannot receive more than $10 other fields ranging from building of bailing it out financially-and going million during the life of the Agency. "fishing boats" to development of social to strengthen a Communist nation. The Congress appropriated $1.8 million security system and of Communist Besides, Mr. Speaker, by what logic to the Agency for fiscal year 1962. For teaching techniques. have we come to the place where we re­ fiscal year 1963 we appropriated $6.5 mil­ Today I turn from the sad state of claim land and raise food for the enemy lion for the Agency. Out of the total the enslaved peoples of Cuba to a nation . bellies any army travels on? appropriation of $10 million allowed un­ much nearer to the center of the Com­ 2. YUGOSLAVIA-TRAINING OF VOCATIONAL der the act, the Congress has already ap­ munist menace and deeply committed INSTRUCTIONS propriated $8.3 million, which leaves a as a satellite of that bury-the-Americans The second Yugoslav project which I $1.7 million for all future efforts. Un­ ideology. wish to discuss today involves a Special less the law is amended, the situation Let us talk, then, about Yugoslavia Fund contribution of $905,000 and is will be intolerable. Compare the more where there are two projects receiving entitled "Training of Vocational Instruc­ than $50 billion we spend for defense in U.S.-subsidized United Nations aid: tors." It began in January 1960, and a single fiscal year with $1.8 million re­ 1. YUGOSLAVIA-LAND RECLAMATION PROJECT apparently is not so important as the maining under present law for the future The Special Fund now is conducting preceding project since this one is dis­ life of the Disarmament Agency. The a 4-year project entitled "Pilot Land cussed in a Special Fund document budget for fiscal year 1964 calls for $15 Reclamation," which is costing the Spe­ classified only for limited distribution. million for the Arms Control and Dis­ cial Fund a total of $1,037,100. Forty Or maybe limited is worse than re­ armament Agency. This will require a percent of that-the American subsidy­ stricted. Only the United Nations knows change in the law. is $414,840. for sure-certainly not our taxpayers. 1963 CONGRESSIONAL "RECORD'-· HOUSE 3741 Anyhow, this project is being admin­ Red ideology and the joys of living in Mr. Speaker, I have asked unanimous · istered by the International Labor their nation; As a former president of consent to inciude in the RECORD tables Organization-ILO. And I hope they the Missouri State Chamber of Com­ detailing these Yugoslav special fund are doing as well on this one as they are merce I stand aghast at this simplemind­ projects. I only wish that .this could be on that project I discussed here recently edness with which Amelican taxpayers the last of my talks here about this fund. on setting up· social security-for Cubans. are being saddled. Unfortunately, we still must deal with The 4-year project is designed, the I wonder if the CCC proposal we hear the U,N. aid going to Communist Poland. U.N. says: "to establish training insti­ talk about today in Washington means I will address myself to that topic in tutes for instructors in vocational "Communist Chamber of Commerce?" coming days. schools." We are told in the Special Fund docu­ Financial provisions, Y,ngoswv project ment that the Yugoslav Government is PILOT LA:ND RECLAMATION seeking to place greater emphasis on training of both those already employed It has been e, tinmted tilat the total special fund allocation will be $1,037,100 over 4 years, as follows: and those who are entering industry for Total cost Phasing of expenditure tfie first time. (in U.S. Let us keep in mind that it is the Red dollars) Yugoslav Government who wants to in­ 1st year 2d year 3d year 4th year crease its industry and its communistic national strength-not the nonconsulted Experts_. ______------I $385, 000 $96,200 $96, 200 $96, 300 $96,300 Fellowships ______• ______• ______--- 30,000 15, 000 16, 000 Americans who are subsidizing the proj­ E quipment ______. _•• ______• __ _ 540, 000 300, 000 240,000 ------ect while suffering increasing percent­ Miscellaneous. ______------__ _ 23,100 5,800 5,800 6,800 6,700 ages of uemployment. 1-----1-----1----1---; - Total project cost______978,100 417,000 357,000 102,100 102, 000 I find that the ILO has had, in the Executing agency overhead cost ______59,000 ------past 6 years, a program. under which a T otal special fund allocation ______1-- -- large number of Yugo.slav foremen have 1,037, 100 been sent abroad as worker-trainees in foreign factories. That fits in well with 1 Gross cost, representing 21 man-years and 6 man-months. the Communist design involving the ex­ TRAINING 01' VOCATIONAL INSTR UCTORS parting of the Red ideology. And, once again, we are told that­ The total cost to the special fund would be $905,000. This would be spent as follows: The Government has decided that, in order to increase the facilities for vocational train­ Experts Fellowships Equipment Total ing, a network of vocational training schools should be established. 1st year______$60, 000 $60,000 2d year______120, 000 $00, 000 $500, 000 670,000 How nice that the Government of 3d year______70,000 100,000 ------170,000 Yugoslavia can decide that. Could we 4th year.·------·---····-······· ··--·---···------1---5,000- -1-----1·-----1------ti, -000 expect them to decide otherwise? And, Total. ------···------·-· 255, 000 150,000 500,000 905,000 who asked the opinion of those Ameri­ cans who hold 40 percent of the Special Fund stock in this venture? RESTRICTING COMPETITION ON Upon contacting the contract negotia­ Nobody, that is who. BIDS tor for this procurement, Mr. Griffith This project plans specifically for Mr. Wil.JSON of Indiana. Mr. Speak­ Jones, Naval Purchasing Office-tele­ setting up of a centrally located school er, I ask unanimous consent to address phone: Oxford 6-3768-I was told the and of several functional institutes for the House for 1 minute, to revise and same story as the manufacturer-no the training of instructors. The func­ extend my remarks, and to include ex­ drawings available. This simply did not tional institutes are for metal, building, traneous material. make sense to me. As in the past I was wood, commerce, and agriculture. U.N. The SPEAKER. Is there ·objection not . willing to take no for an answer. experts are provided for them. to the request of the gentleman from I proceeded to contact higher authori­ The training institute for metal work­ Indiana? ties, in this instance, Capt. J. A. Scott, ers is for instructors in electric welding, There was no objection. assistant to the Chief of the Office of lathe operation, shaping machine opera­ Mr. WILSON of Indiana. Mr. Naval Material. Less than 10 minutes tion, fitting, moulding, and electro­ Speaker, yesterday I brought to the at­ after I contacted Captain Scott, the com­ mechanics. Equipment cost is $230,000. tention of my colleagues a most serious pany l refer to here today was told over The training institute for the building and wasteful purchasing practice of our the telephone that plans and specifica­ industry is for masons, concrete workers, Defense Department-a sole source tions were available for their use. operators of building construction equip­ method that is disguised to appear com­ Who told the company? Raymond ment, carpenters, painters, plumbers, petitive. The case I bring to you today Usilton, engineer-telephone: Oxford and electricians. Equipment cost i.s is identical to that of yesterday, only this 6-2010-the same engineer I spoke of $70,000. time it came to my attention in a differ­ here yesterday. While the contract ne­ The training institute for the wood ent manner. gotiator, Jones, who gets his technical industry would be for foresters, loggers, A reputable manufacturing firm called information from Usilton, had been tell­ sawmill workers and cabinetmakers. me yesterday, stating its desire to bid ing people that no drawings were avail­ Equipment cost is $75,000. competitively on the manufacture of able, Usilton suddenly discovered there There also would be an agriculture the USM-116 multimeter, whch in were. training institute for instructors in farm · simple terms is a voltage tester. This This method of operation makes it al­ machine maintenance and tractor driv­ item is listed for competitive purchase, most impossible to bring competition into ing. Equipment cost is figured at but a wall has been built around it that this sort of procurement. It is most cer­ $45,000. restricts the bidding to one firm. This tainly not conducive to providing our One of the most interesting projects of wall is called a QPL--Qualified Products Nation with the best defense at a rea­ all is for a commercial institute for in­ List. To bid on the eqUipment you must sonable cost. State and municipal gov­ structors t o train retail salesmen. It be on the list. To be on the list you must ernments could not operate this way, would be attached to the Yugoslav Fed­ make a model. To make a model you and this method explains the high cost eration of Chambers of Commerce and must have the drawings, but this firm of defense. supplied with equipment costing $40,000. was told no drawings are available. As This purchase I speak of today is for So, here we Americans are, placed in I said yesterday you cannot get from 3,592 of these multimeters. The last the position of supporting the chamber of here to there. Only one firm has the time they were bought, it was a sole­ commerce activities of a communistic plans and is on the QPL list-the finn source deal and the unit price was $300, nation. Activities which, I suppose; in­ that had a prior sole-source and develop­ so it is easy to see this is a million-dollar volve promotion of the benefits of the ment contract. matter. The Navy should be ordered to 3742 CONGRESSIONAL RECORD - HOUSE March 7 issue drawings to any responsible indus­ "instead of being put out in the open, so the following changes in the field office try, and real competition should be in­ that competition would bring the price structure of the Service. down." I. DISTRICT OFFICE CHANGES duced in this purchase. On Wednesday, WILSON disclosed that the Mr. Speaker, the Defense budget can same engineer who is handling the mul­ A. Reduction of overhead in 12 small dis­ be cut, and materially so, and at the timeter contract-Usilton-had successfully tricts: same time we can have greater security recommended the same type of restriction on Since the 1951-52 reorganization, our basic through the force of competition on availability of drawings for another procure­ operating unit has been the dlstrict offices. government contracts and development. ment now underway, for purchase of 927 As we have 1 in each State, and more than oscilloscopes. 1 in some of the more populous States, As this matter developed yesterday, district offices range in size from Anchorage Mr. Charles Nicodemus, a reporter for w.ith 94,000 tax returns and 65 employees, The Chicago Daily News, was in my of­ WHY IS REGIONAL OFFICE OF IN­ to the Manhattan district with 3.8 million fice. Here is his account of the matter: tax returns and 2,800 employees. TERNAL REVENUE DEPARTMENT Despite these disparities in size, the basic WASHINGTON.-The Pentagon has promised BEING TRANSFERRED FROM NEW to "straighten out" a Navy civilian official organization structure of all districts has whom Representative EARL WILSON says he YORK TO BOSTON? been fairly uniform. For example, there is a chief of audit in each district. Yet in caught trying to restrict competition on a Mr. LINDSAY. Mr. Speaker, I ask pending, $1 million electronics contract. Manhattan the chief supervises 1,400 ·em­ WILSON, Repubilcan of Indiana, quoted unanimous consent to address the House ployees; while the chief in Anchorage super­ capt. J. A. Scott, special assistant to the for 1 minute, to revise and extend my re­ vises 26 employees. Consequently, the ratio chief of the Office of Naval Material, as marks, and to include a letter. of overhead personnel to frontline enforce­ saying: The SPEAKER. Is there objection ment personnel has been much higher in the "This man [the civilian official] made a to the request of the gentleman from small districts. mistake. He's a relatively new employee. New York? On the basis of a recent study, however, He's being straightened out." we concluded that we can eliminate many There was no objection. "overhead" positions in our 12 smallest dis­ WILSON said the official, a contract officer Mr. LINDSAY. Mr. Speaker, the Com­ named Griffith Jones, told the Washington tricts, simply by modifying their organi­ agent for an Indiana firm that there are no missioner of Internal Revenue has just zational structure. What we plan to do in manufacturing drawings available for an announced that the regional office in these districts is eliminate most of the electronics item on which the firm wants to New York is being closed down and its managerial positions under the district di­ bid-making a competitive bid impossible. functions transferred to the regional rector by having the nearest large district The Indiana Republican said that when office in Boston, Mass. This is being provide the necessary technical staff support the firm sought his help, and his aid double­ and perform the other processing and sup­ done, it is said, as part of a reduction port activities. · checked with Jones, the contracting officer in number from nine to seven of the again insisted no drawings of the equipment Taxpayers will continue to file their re­ existed. regional offices in the United States. I turns with the district director in these A veteran critic of waste and abuses in am all for streamlining the Federal bu­ districts, and will continue to receive all of defense buying, Wilson said he knew this was reaucracy, but why Boston over New the services they now receive. untrue. For a quick check with his sources York? If there is to be one regional The districts involved are listed in attach­ in the electronics industry had shown that office it should be located in New York ment No. 1. the Navy had bought the same equipment for City. The tax collections in New York B. Merger of four multi-State districts: the first time last April from a Cleveland are 2 to 3 times the volume of collections Our studies have also demonstrated that firm and had routinely required the con­ existing workload does not justify having 62 tractor to provide drawings. of all the New England States put to­ separate district offices in the 50 States. WILSON, who has learned from experience gether. The U.S. Tax Court schedules Therefore, operations of four district offices where to complain of Navy procurement · 15 calendars in New York to every 1 in located in States with more than one dis­ abuses, said he immediately contacted Boston. trict will be merged with those of nearby Captain Scott, explained the problem a11d Mr. Speaker, it becomes increasingly districts in the same State. Large field demanded an explanation. Scott said he clear that an offensive political slogan, offices will be maintained, however, in cities would check. "I Can Do More for Massachusetts," is affected by this change, and taxpayers will Wn.soN disclosed that 10 minutes later, continue to teceive substantially all the the agent for the Indiana firm, Model En­ being translated into U.S. Government local service they now have. gineering Co. of Huntington, was informed policy. The districts involved a:re also listed in by telephone by a Navy engineer named Ray The city of New York and my own con­ attachment No. 1. Usilton that drawings existed and were gressional district will be prejudiced by II. REGIONAL CHANGES indeed available. WILSON said Usilton works this move. We can ill afford to lose em­ This modification in district structure with Jones. ployment to another area for political makes it possible for us to operate effectively Scott then called back a half hour later, reasons, to say nothing of the inconven­ with seven regional offices, instead of the WILSON said, and gave him the statement ience caused our citizens and our com­ present nine. about getting Jones "straightened out." WILSON suggested, however, that "the merce and trade. The regional offices to be eliminated are facts in this case indicate that we ·need to I urge the Secretary of the Treasury those now located in Omaha and New York fire some people in Navy procurement-not to reconsider. City. The resulting regional boundaries and Mr. Speaker, I am introducing in the headquarters cities are shown in attach­ just straighten them out." ment No. 2. WILSON said that under the supervision of CONGRESSIONAL RECORD at this point the Jones and Usilton, the Navy had set up a Since most parts of our regional offices letter that I received from the Commis­ have very little contact with taxpayers, these requirement that anyone wanting to bid on sioner of Internal Revenue which gives the equipment must first build a model and regional realinements will not affect tax­ submit it to the Navy for approval. Firms no reason whatsoever for the selection payers significantly. The only parts of the winning approval were to go on a "Quali­ of Boston over New York: regional office that do have substantial con­ fied Products List" of manufacturers who MARCH 5, 1963. tacts with taxpayers are the Appellate and would be permitted to bid. DEAR CONGRESSMAN: About noon today, Chief Counsel field offices, and we will con­ "But of course, Jones was telling people Secretary Dillon will announce publicly a tinue to render these services in those pres­ there were no drawings available," WILSON series of changes he has authorized me to ent locations. said. "That meant no one could get on the make in Internal Revenue Service field of­ III. SERVICE CENTER CHANGES qualified products list except the Cleveland fices. I believe these cha~ges will be of As you probably know, the Internal Reve­ firm that had done the first production and interest to you so I am taking this means of nue Service is now installing an automatic still has copl:es of the drawings." giving you advance information on them. data processing system that will permit us On the April contract, a sole-source (non­ The changes we are announcing will result to use electronic machines to perform the competitive) award, WILSON said the Navy in total savings of over $5 million annually, millions of record-handling operations in­ paid $300 each for the equipment-a "mul­ when they are fully implemented. Tax­ volved in the maintenance of taxpayer ac­ timeter" useci to test voltage and current in payers will not be disadvantaged in any way counts, the issuance of bills and refunds, other electronic devices. by these changes; they will continue to re­ the matching of information documents and Under the procurement now planned, ceive all of the services they now receive. the many other data processing activities records show the Navy will buy up to 3,592 The changes are mainly in behind-the-scenes we must conduct. of the units. activities. Since we need one ADP center in each "This means that a neat, $1 million con­ In response to President Kennedy's call region to perform this work, our decision to tract-which the Navy tries to say is 'com­ upon all Federal agenices to achieve "lean, reduce from nine regions to seven means that petitive'-actually was being channeled to a flt" organizations, I have recommended, and we will need only seven centers instead of favored past producer," WILSON declared, the Secretary has authorized me to make, the nine we had planned. 1963 , CONGRESSIONAL REeORD - HOUSE 3743

IV. IMPLEMENTING THE CHANGES H.R. 2696, municipal court, small the Ways and Means Committee this Most of these changes will be put into ef­ claims. morning by Prof. William H. Peterson, fect gradually and the timing probably will H.R. 3537, municipal court, change of of New York University. His statement vary from one district to another according title. is entitled ''Individual Income Tax Rate to local circumstances. While most taxpayers probably will not These bills · may not necessarily be and Rate Structure." I call it to the at­ even be aware of these changes, those of your called in the order listed. tention of my colleagues for their in­ constituents who are employed by us, will be Also on Monday, the bill H.R. 2438 will terest. very much aware of them and some of those be taken up. That is a bill to extend the The statement referred to follows: affected may very well write to you about universal military training and service INDIVIDUAL INCOME TAX RATE AND them. If they do, you can assure them, as act. I am advised by the distinguished RATE STRUCTURE we are, that we will try to reduce the ad­ chairman of the Committee on Armed My name is William H. Peterson and I am verse impact on them as much as we can. Services, the gentleman from Georgia, an associate professor of economics at New We feel obligated to do this since most of that he will ask for a rollcall vote on final York University's Graduate School of Busi­ the officials and employees whose positions ness Administration. will be eliminated or transferred as a result passage on that bill on Monday. On Tuesday, H.R. 2440, authorization My concern in the President's tax pro­ of the changes are people who h ave been posals is broad, for I believe they touch upon with us for a long time, who have risen to of aircraft missiles and naval vessels, practically every aspect of national economic their present positions by doing their work Armed Forces. I have also been advised growth and individual well-being. For the well, and who have experience and skill that by the gentleman from Georgia that he purposes of this statement, however, I wish the ms does not want to lose. will ask for a rollcall vote on the passage to look at but one phase of the President's Fortunately, because the changes will be of that bill. t ax plans-namely, the remaining steepness put into effect gradually, we expect to be in individual income tax rate progression able to handle most of the cutbacks by Also on Tuesday, the gentleman from New York [Mr. CELLER], chairman of the (from 14 to 65 percent of taxable income) attrition and transfers. However, in many under the proposed administration pro­ of the affected districts, attrition is slow and Committee on the Judiciary, has advised gram when it would become fully effective many of the employees are both too young me that he will ask unanimous consent to in calendar year 1965. And I wish to show to retire and unwilling to move for personal bring up H.R. 4374, conferring honorary how this steepness, especially when linked reasons. Consequently, we cannot promise citizenship on Sir Winston Churchill. to the proposed 5 percent rule on itemized that no one will be hurt. We do promise, There may be a rollcall vote on that day. deductions, affords virtually no tax relief to however, that we wiil try to minimize the the middle and little to the upper brackets. hardships to our employees in every way Wednesday and the balance of the week: The program will be announced I regard the middle and upper brackets as that we properly can. prime sources of America's capital formation In summary, we believe that these later. and hence of economic growth. changes will save the taxpayers substantial I make this announcement, of course, In this statement I seek to make but three amounts of money, without diminishing in subject to the usual reservation that any points: First, to demonstrate the nonscien­ any way the services they are now receiving. further program may be announced tific and antieconomic growth deficiencies of At the same time, they enable us to take a later. rate progression in general. Second, to show significant step toward the President's goal how the President's tax proposals reflect of a "lean, fit, and efficient Federal estab­ these deficiencies and are hence self-defeat­ lishment." ing of their stated goal of economic growth. Sincerely, ADJOURNMENT TO MONDAY, MARCH 11 And third, to give support to maximum cor­ MORTIMER M. CAPLIN, rection at this time of the deficiencies of Commi ssioner. Mr. ALBERT. Mr. Speaker, in view of graduation. the fact that we have completed the leg­ I stress economic growth, taking a cue from the President's tax message to Congress LEGISLATIVE PROGRAM islative business of the week, I ask unan­ imous consent that when the House on January 24, 1963, in which he said that Mr. HALLECK. Mr. Speaker, I ask adjourns today it adjourn to meet on our present tax system is "the largest single unanimous consent to address the House barrier to full employment of our manpower Monday next. and resources and to a higher rate of eco­ for 1 minute for the purpose of inquiring The SPEAKER. Is there objection to nomic growth." And I stress the need for as to the legislative program for the bal­ the request of the gentleman from flattening the rate structure to the maximum ance of this week and next week since Oklahoma? extent possible, taking another cue from the a number of Members have been making There was no objection. President, this time from his television ad­ inquiry of me, and if the majority leader dress of August 13, 1962, in which he said could announce the program at this time, that our tax rates "are so high as to weaken it would be very helpful. CALENDAR WEDNESDAY BUSINESS the very essence of the progress of a free society-the incentive for additional return The SPEAKER. Without objection, it DISPENSED WITH for additional effort." · is so ordered. Mr. ALBERT. Mr. Speaker, I ask The first point to be considered is the lack There was no objection. unanimous consent that business in or­ of scientific evidence in support of the theory Mr. ALBERT. Mr. Speaker, will the of graduation-a point recognized by many gentleman yield? der under the Calendar Wednesday rule but, admittedly, by no means all economists. Mr. HALLECK. I yield to the gentle­ may be dispensed with on Wednesday Yet scientific evidence appears to be lacking man. next. on presumptions of equality of sacrifice, abil­ Mr. ALBERT. In response to the in­ The SPEAKER. Is there objection to ity to pay, benefits conferred, economic stabi­ the request of the gentleman from lization, economic equalitarianism, and Fed­ quiry of the distinguished minority lead­ eral revenue needs. er, I would advise that we have no fur­ Oklahoma? There was no objection. The unscientific nature or even sheer ther legislative business for this week. caprice of graduated rates and income brack­ The legislative program for next week ets over time or at any one time is amply is as follows: INDIVIDUAL INCOME TAX RATE seen in the history of the income tax since passage of the 16th amendment in Monday is District Day. There are AND RATE STRUCTURE nine bills which I am not able to enu­ 1913. Originally the rate on highest incomes merate just at this moment, but which Mr. ALGER. Mr. Speaker, I ask was but 7 percent. In 1929 the top rate was will be printed in the RECORD. They will unanimous consent to address the House but 24 percent. But out of the social turbu­ for 1 minute, to revise and extend my re­ lence of the thirties emerged a top rate of be as follows: 79 percent. World War II brought an upper H.R. 39, District of Columbia Armory marks, and to include extraneous matter. rate of 94 percent, and it ls virtually at this Board appointment. The SPEAKER. Is there objection rate under which we.live today, with the 50- H.R. 682, deeds of trust, new trustees. to the request of the gentleman from percent level reached at but $16,000 of tax­ H.R. 1933, registration of nurses. Texas? able income for the unmarried individual. H.R. 1935, authorization, Metropolitan There was no objection. So the Federal income tax rate structure in Police dogs. Mr. ALGER. Mr. Speaker, all Mem­ its relatively brief life of 50 years has grown like Topsy, subject to no end of whim and H.R. 1937, Life Insurance Act. bers· of the House are concerned about pressure, producing rates which Dan Throop H.R. 1982, Traffic Act, collision of ve­ the steadily increasing income tax, and Smith, former special assistant to the Secre­ hicles. the killing · of incentive in the upper tary of the Treasury in charge of tax policy, H.R. 2485, prevention and control; brackets. I call the attention of ·my has said "are not only repressive but appear communicable and preventable diseases. colleagues to a statement made before to be excessive by almost all ethical standards 3744 CONGRESSIONA.L ;RECORD - HOUSE March 7 except those based on extremes of equali­ the personal income tax revenue. This means gally should be reported; a.nd less disincen­ tarianism." 1 Smith's raising of the question that a :flat 20 percent rate on all taxable in­ tives to production and investment and of ethics is indeed a. pertinent question. For come would still yield 85 percent of the hence to greater national income and Fed­ does not graduation constitute discrimina­ present personal tax revenue, even assuming eral revenue.7 tion against a minority? And was not this no increase in income as a result of rate re­ Another argument put forth in defense of the fear that impelled the Founding Fathers ductions. This assumption, however, ls not rate graduation is the argument of the wel­ to incorporate in article I, section 9, of the tenable because of the effect of released in­ fare school of economics employing the Constitution the restriction that no direct centives on production and investment, and theory of diminishing personal utility of tax should be levied by the Federal Govern­ of released funds presently consumed by tax­ added increments of money, which in turn ment "unless in proportion to the census"? ation that could otherwise be used for capi­ is used to buttress the equal sacrifice theory I believe the use of the word "proportion" tal formation. of rate progression. This theory leads to a in the foregoing constitutional phrase is of Thus the logic or illogic of rate graduation Robin Hood frame of mind among prominent significance. Proportionality is nondiscrimi­ strongly suggests that a reduction from pres­ economists on both sides of the Atlantic. natory. It recognizes ability to pay. It rec­ ent rate levels is more likely to increase reve­ Hence, says Prof. A. C. Plgou, of Cam­ ognizes equality before the law. It gives no nue than to reduce lt. As Geoffrey H. Moore bridge University: "It is evident that any vent to envy and vindictiveness, to--to use of the National Bureau of Economic Research transference of income from a relatively a. blunter phrase-"soaking the rich." noted in the "American Economic Review,'' rich man to a relatively poor man of similar Surely the history of Federal graduation high tax rates have "no doubt operated to temperament, since it enables more intense attests to the wisdom of Scottish economist reduce income before taxes in the upper in­ wants to be satisfied at the expense of less John Ramsay McCulloch who noted: 1 come groups." ' Simon Kuznets of Harvard intense wants, must increase the aggregate "The moment you abandon • • * the University reached much the same conclu­ sum of satisfactions." 8 And Pro!. Abba cardinal principle of exacting from all indi­ sion in his 1953 study,5 "Shares of Upper In­ P. Lerner, of Michigan State University, viduals the same proportion of their income come Groups in Income and Savings,'' ob­ states: "The probable value of total satis­ or their property, you are at sea without serving that, among other things, the top factions is maximized by dividing income rudder or compass, and there is no amount 5 percent has incurred a marked decline in evenly." 11 of injustice or folly you may not commit. its share of total income. Further, the top But the plausibility of this kind of eco­ In such matters the maxim of obsta princi­ 1 percent of the population received 18 per­ nomic thinking leaves much to be desired. piis should be firmly adhered to by every cent of the total income in 1919-38; in It is not at all demonstrable that the satis­ prudent and honest statesman. Graduation 1947-48, however, the top 1 percent re­ factions of different people can be measured is not an evil to be paltered with. Adopt ceived 8½ percent of total income. The through a common denominator. Each in­ it and you will effectually paralyze industry contrast is even more striking in terms of . dividual is a unique entity with varying and check accumulation, a.t the same time average income. To wit: the per capita in­ emotions and values-emotions and values that every man who has any property will come of the top 1 percent in 1913 was some which change with time and with changes in hasten, by carrying it out of the country, to 20 times greater than the per capita. income income. Nor is it demonstrable that the protect it from confiscation. The savages of the lower 99 percent, but in 1948 it was marginal utility of an additional increment described by Montesquieu, who to get at the but 10 times as great.• of $1,000 to A, whose annual income is at :Cruit cut down the tree, are about as good Let me stress that steep progression has the $30,000 level, is less than the marginal financiers as the advocates of this sort of meant more than mere redistribution of in­ utility of a similar increment to B, whose taxes." come; it has meant, I am convinced, reduc­ annual income is at the $5,000 level. Of The McCulloch observation seems to be tion of income-the national income. In course, we could ask A and B how each based upon sound economic logic. No pro­ other words, not only reduced income for the would react to an additional $1,000. It's ponent of graduation has ever been able to rich and hence reduced capital formation, quite possible that A would insist that his prove just how much faster, if at all, ability but reduced income thereby for the poor­ individual satisfactions would be more fully to pay is supposed to increase than income. for everybody. maximized by the increment than B's satis­ No demonstrably scientific method appears Solt would appear that we have somehow factions. B might insist that he got the managed to hamper financially and psycho­ to be used to determine tlie height of the most satisfaction at the margin. Who can graduated scale or the brackets of income logically the most productive, inventive, tal­ be sure that A is wrong and B 1s right? Cer­ covered. At best the graduated rate struc­ ented, and venturesome members of our so­ tainly there is nothing in such a mere ture becomes the result of rule of thumb, ciety. We have also forced many of these opinion-culling method that would provide arbitrary conjecture, and conflicting pres­ doers, builders, and Job creators to divert scientific evidence. Interpersonal utility sures of different groups and organizations. much of their energy and talent to ways and comparisons simply cannot be measured sci­ means of outwitting the tax collector, to cut entifically. Contrast this makeshift and complex result back on their output, or to quit work en­ With the simplicity of proportionality, seen, tirely. As the late Summer Slicht.er, of Har­ Furthermore, the theory of diminishing for example, in the Judaeo-Christian practice vard University remarked in 1942: "The tax utllity of income tends to blur into a theory of tithing, with the tithe at 10 percent, history of the United States in recent years of equalization or semiequalization of in­ varying proportionately with a man's in­ come, or, more bluntly, a redistribution of has been fairly sensational. A visitor from income. come and with good times and bad. Mars would suspect that a Communist fifth Frequently it ls argued that apart from columnist was writing the laws for the pur­ But redistribution assumes a standard of ethical and scientific considerations, the pose of making private enterprise unwork­ distributive justice different from the stand­ Government has budgeting needs that can able." ards of our market economy. It assumes only be satisfied by rate progression. Dan To be sure, Federal revenue needs are vast that the market knows least and Govern­ Throop Smith has noted that progression be­ but this fact should not blind us to the di­ ment knows best. But what is our market yond 50 percent of taxable income yields minishing rate of revenue return on high economy but the American people, con­ the Treasury only about •1 billion, or about graduated rates, or to the necessity for not stantly and voluntarily adjusting the in­ enough to run the Government for 4 days.• succumbing to the elastic ethic that the end comes of each and every one of us, financially Indeed, it ls arguable that rates beyond 50 justifies the means. For clearly there are rewarding those who produce more and fi­ percent, and likely much less, do not in fact different means to the same end of achieving nancially penalizing those who produce less? yield long-term revenue but reduce it be­ the Government's revenue needs. Let us con­ This democratic market system, this incen­ cause of their inhibiting effect on incentives sider one of these means-a flat rate. tive system, is precisely the means by which, to produce and invest. Economist Milton Friedman of the Uni­ I am convinced, we have become the richest Incentive is the thing. It accounts for versity of Chicago demonstrates that a. flat and freest people in all the world. enterprise and ingenuity. It is the secret rate of 23.5 percent on taxable income as Even the Russians seem to be catching on of American prosperity. And yet we seem presently reported, defined, and with pres­ to this incentive idea-deviating sharply to be killing off this tremendous force for ently allowable deductions would produce from the Marxist-Leninist concept of from social good for a relative pittance in terms as much revenue as the current highly pro­ each according to his ability and to each of Federal revenue. For it has been well es­ gressive rate structure of 20 to 91 percent. according to his need-for a recent issue of tablished that all the graduation-the 71 Indeed, argues Dr. Friedman, this fiat rate Voprosy Ekonomiki, official periodical of the percentage points above the bottom personal would yield a greater revenue for three im­ Soviet Institute of Economics, disowns •ipetty rate of 20 percent--yields but 15 percent portant reasons: less t~ avoidance, mean­ bourgeois egalitarianism" and explains in an while the bottom rate yields 85 percent of ing less incentive to adopt legal but costly article: 10 schemes to reduce the amount of reported 1 Proceedings, 1963, National Tax Associa­ taxable income: less tax evasion, that is less 7 "Capitalism and Freedom" (University of tion, p. 541. incentive to fail to report income that le- Chicago Press, 1962). p. 175. 2 John Ramsay McCulloch, "Taxation and 1 A. C. Pigou, Economics of Welfare, 4th the Funding System," (1845), quoted by ' Geoffrey H. Moore, "Secular Changes in ed., Macmlllan, New York, 1948, p. 89. Walter J. Blum and Harry Kalven, Jr.. ln the Distribution o! Income," "American Eco- • Abba C. Lerner, The Economics of Con­ "The Uneasy Case for Progressive Taxation" nomic Review,'' May 1952, p. 542. . trol, 3d ed., Macmillan, New York, 1947, p. ( Chicago, University of Chicago Press, 1953), 6 National Bureau of Economic Research, 32. pp. 45-46. New York, 1953, pp. xxxv, xxxvi, 619, 635. M Plrst National City Bank of New York : Morgan Guaranty Survey, July 1960. • Moore, op. cit., p. 531. · Monthly Letter, December 1959.

r 1963 CONGRESSIONAL RECORD - HOUSE 3745 "The many years of experience in the or­ ual, while it requires another $180,000 of in­ ficiency of plant and equipment, and the ganization of social labor under socialism come to reach the maximum 91-percent rate. cost structure, including wages, of output. have shown that equalitarianism is incom­ Under the 14- to 65-percent ra~ge of the Overcapacity, in short, seems to be a func­ patible with the interests of the development administration program, the new midpoint tion of price and of cost. If cost and price of socialist production. In order to create of graduation (40 percent) in its scale would are excessively high-that is, high in the the abundance of products tlie principle of be reached in the bracket beginn}ng at $16,- mind of the purchaser or the consumer­ personal material incentives to all personnel 000; thus half of the climb in rates is reached there will be but a partial sale or perhaps no is of major significance. • • • It is neces­ at a lower point. Under Herlong-Baker's sale at all. sary to give industrial and institutional 15- to 42-percent spread the midpoint (29 Why, _for example, do we have overcapacity management the right to raise the salaries of percent) is reached at $38 ,000. in cotton, wheat, and virtually all other persons ·showing maximum initiative, ca­ Again, under the administration's proposed price-supported farm products? Because pacity, and conscientousness. At the same rate structure, 77 percent of the revenue the price is propped beyond the interest of time, it is necessary to improve t:h.e system of would come from the bottom rate of 14 per­ many buyers who shift to substitute sources bonuses to managerial, engineering, techni­ cent on taxable income and 23 percent would abroad or to substitute products. Were the cal, and office personnel." come from graduation. Herlong-Baker, on price to come down, the long-term trend So much for my first point on graduation; the other hand, would provide only 7 per­ would show that, I think, inefficient high­ now for my second and third points on the cent from graduation and 93 percent from cost producers would shift to more remuner­ administration's proposed graduation in par­ the 15-percent bottom r ate. Herlong-Baker, ative ventures, the quantity demanded ticular and on what I believe to be an im­ then, promises the greatest capital formation would expand, production would advance, provement on the administration's approach. rate. overcapacity would decline, and the farmer, To be sure, the administration program Capital formation is, clearly the road to the taxpayer, and the consumer would be gives the appearance of meeting some of the growth. There is, practically speaking, no much happier for it. objections to graduation by offering a lower other way. The more capital, the more eco­ Basically, then, overcapacity is a matter top rate. The rub is, however, that the top nomic growth. The sluggish American econ­ of inefficiency. Much of our overcapacity rate of 65 percent is still the culmination of omy is deficient mainly on the score of stems from marginal, high-cost, obsolescent 23 as yet steeply progressive steps which af­ inadequate capital formation. Our gross plant and equipment. To an extent,·but not ford little or no relief to the middle brackets, capital formation rate is one of the lowest by any means to a great enough extent, the that the administration tax program seeks among the industrialized countries of the new equipment tax credit and the Treasury's primarily to stimulate consumption through world. We apply but 16 percent of our gross accelerated depreciation schedules amelio­ a magical multiplier, which presumably national product to gross capital formation. rate this situation. More should be done on will expand total demand by an amount sev­ · By contrast, according to Central Intelligence this score. eral times greater than the amount of the Agency estimates, Western Europe shows the Much of our overcapacity also stems from tax cut. following rates in 1960: West Germany 24 obsolete work practices and excessive union It is clear that the administration, be­ percent, Austria 24 percent, Italy 22 percent, bargaining power which raise the unit cost cause of alleged industrial overcapacity, is France 18 percent, and Belgium 18 percent. of production and lessen effective demand.. not seeking to directly stimulate invest­ The CIA has also reported that 30 percent of This latter problem, I know, is not a direct ment-the very investment which is the tap­ the U.S.S.R. gross national product goes into legislative concern of this committee; none­ root of economic growth. gross capital formation. The rate for Japan theless, inasmuch as tax reform and tax cuts The trouble with the administration em­ in 1960 was 31 percent. have been made the fulcrum of economic phasis on consu~ption is that, coupled to And the U.S. capital formation situation growth, I believe, it would be a mistake to as­ deficit finance as it is, it raises the danger seems to be getting worse. Economist Simon sign to tax measures, however important, of further inflation and of a worsening in Kuznets pointed out in his National Bureau the full burden of economic growth. our already precarious international balance of Economic Research study, "Capital in the In sum, Herlong-Baker is a fiscally sound of payments situation. Another trouble American Economy," published in December corrective of the present unsound tax with the deficit financed-consumption em­ 1961, that net capital formation as a per­ structure. phasis is that it employs in effect the rather centage of gr06S national product has been illusory addition of ·money income as the falling for a long time. The fall has been stimulus to . the economy as opposed to the from 14.6 percent of GNP in the period UNESCO BOOKLET 1869- 88 to 7 percent of gross national prod­ addition of real income, which would be the Mr. GROSS. Mr. Speaker, I ask upshot of an increase in the capital forma­ uct in 1946-55, measured in constant prices. tion rate-that is, in the rate of investment. It follows that the saving rate has similarly unanimous consent to address the House I believe the Herlong-Baker bill is the only fallen off. Ironically, as the rate of saving for 1 minute and to revise and extend my fiscally feasible and responsible alternative has been falling, the rate of technological remarks. . to our present income tax structure. It advance has been apparently rising, with the The SPEAKER. Is there objection stresses investmeni, whereas the administra­ result being a relative shortage of capital and to the request of the gentleman from tion stresses current consumption. In sharp the shelving of many fruitful investment projects--projects which could create jobs Iowa? contrast to the administration's program, it There was no objection. would reform the present steep schedule of and more of the good things of life at less rate graduation while-over a longer period cost for more people. As Dr. Kuznets ob­ Mr. GROSS. Mr. Speaker, on Febru­ of time-providing substantially as much tax served, the persistent bottleneck in the ex­ ary 13 the newspapers of this country relief as the administration at the lower in­ ploitation of new technical knowledge has reported that UNESCO, United Nations come levels. The Herlong-Baker bill provides been the scarcity of capita.I funds. And not­ Educational, Scientific, and Cultural Or­ a top rate of 42 percent as contrasted with ing the U.S. population boom upon us, espe­ ganization, had issued a booklet which a top of 65 percent in the administration cially of new entrants into the labor force and of new family makers, he writes: "The held the Soviet Union: as a nation of free program. But the gap of 23 percentage people. points between the two bills in no way te.lls demand for capital over the coming two and the full story, inasmuch as the Herlong­ a half or three decades is likely to be The United Press International and Baker bill has but mild progression in the large." n the Chicago Tribune reported as follows: income brackets between its top and bottom To be sure, there are economists who hold A United Nations body, whose largest rates, and does not carry the administration that consumption and not direct capital in­ financial support is given by the U.S. Govern­ feature of the 5-percent rule on deductions. vestment is the right road to growth. Their ment, has published a booklet denouncing The absence of this rule plus the lower scale argument seems to be mainly one of over­ "colonialist oppression" by Western nations in Herlong-Baker means that the upper and capacity ( euphemistically, "economic and describing the Soviet Union as a especially the middle brackets get a better slack")--overcapacity · in railroads, textiles, "brotherhood of free and equal peoples," it t ax break than they do in the administration steel, coal, lead, zinc, paper, timber, and so was learned today. program and thus have a better chance to on. It should . be noted that overcapacity statistics are generally deficient, as the joint It was the Communist Party which showed apply their demonstrated resources and capa­ the peoples of Russia the true way to free bilities toward expanding the national prod­ congressional committee's subcommittee on themselves from social and national oppres­ uct, toward accelerating econoniic growth, economic statistics held in its report last toward creating more jobs. · year on measures of productive capacity. sion, the booklet asserted. The proof of this statement lies in a com­ The subcommittee's distinction between en­ This intrigu.ed me, so I wrote to Mr. parison of the rate structure in the two ap­ gineering capacity and economic capacity is Adlai Stevenson, Ambassador to the proaches. The slope which the two curves significant. United Nations, on February 14, 1963, of rate progression would have is significant. So I believe the administration's stress on The administration would put even more tax overcapacity misses the point. For the real . and asked him to provide me with a pressure, relatively, on the middle-income point is not simply overcapacity, but the na­ copy of the booklet. This morning I brackets than under present tax legislation, ture and causes of excess capacity-the com­ received a letter from the Ambassador while Herlong-Baker would ease it. Under position of capacity, the relative age and ef- to the United Nations and I would like our present graduated taxes, the midpoint of to read to you the first sentence : graduation (56 percent) is reached at the n National Bureau of Economic Research, I wish I could oblige you with a copy o! $20,000 income level for the. sipgle individ- New York, 1961, pp. 391 and 459. the UNESCO booklet entitled "Equality of 3746 CONGRESSIONAL RECORD - HOUSE March 7 Rights Between Races and Nationalities in friendship between America and Germany States second highest award for valor, fpr the U.S.S.R.," but, alas, I have not been able today, and also our human friendships as their part in the Remagen Bridge crossing. to lay hold of one myself. individuals." The late Captain Freisenhahn, when told "If we could only meet and shake hands,,. by Author HEcHLER In 1954 that the group Mr. Speaker, I would still like to get added the captain, "at the very point where had been decorated said: my hands on a copy and if worst comes we shed our blood In 1945, I believe it would "They deserved them • • • and then some. to worst I shall be constrained to ask the emphasize our feeling of good will, one They saw us trying to blow that bridge, by distinguished Speaker of the House, the toward another." all odds it should have been blown up while distinguished majority leader, and the Sergeant De Lisio and the other Americans they were crossing It. In mY, mind, they who were decorated for the Remagen Bridge were the greatest heroes in the whole war." distinguished minority leader· to lend crossing are held in high esteem by at least Former President Eisenhower commenting me a hand to help get a copy of this one other of their former enemies. on the exploits of the World War II GI's at Communist propaganda booklet which Captain Friesenhahn, when told by author Rema.gen said: has been published and is being circu­ KEN HECHLER that the group had been deco­ "It wasn't the biggest battle of all times, lated throughout the world with Amer­ rated with the Nation's second highest but it represents the dash, ingenuity, and ican taxpayers footing a substantial part award, said in 1954: readiness to seize opportunity that charac­ "They deserved them-and then some. terizes the American soldier." of the bill. They saw us trying to blow that bridge, and by all odds it should have blown up while FORMER ENEMIES SHAKE HANDS AT REMAGEN REMAGEN BRIDGE ANNIVERSARY they were crossing It. In my mind, they BRIDGE REUNION were the greatest heroes in the whole war." REMAGEN, March 7, 1962.-This town's. his­ The SPEAKER. Under previous or­ So Taro Leaf soldier Joseph De Lisio wants toric bridge site was the scene today of a der of the House, the gentleman from a reunion. And if there is anyone who reunion between a 24th Infantry Division West Virginia [Mr. HECHLER] is recog­ knows where ex-German Army Capts. Karl soldier and three German veterans of World nized for 30 minutes. Friesenhahn and Willi Bratge are today they War II. Mr. HECill,ER. Mr. Speaker, I ask might get the word down to the 24th In­ Sgt. Joseph A. DeLisio and former Capt. fantry Division. Willi Bratge and former Sgts. Gerhard Rothe unanimous consent to revise and extend And then perhaps the sergeant and the my remarks and to include extraneous and Jakob Kleebach were reunited in cere­ two ex-captains can shake hands by the monies commemorating the 17th anniversary matter. stone pilings on the Rhine that are all that of the unexpected capture of Remagen Bridge The SPEAKER. Is there objection remains of the bridge at Remagen. by American forces. to the request of the gentleman from On March 7, 1945, Sergeant DeLisio, then a West Virginia? SERGEANT DELisIO LoCATES FORMER ENEMIES; member of the 9th Armored Division, earned There was no objection. REMAGEN BRIDGEHEAD REUNION SCHEDULED this Nation's second highest award for valor, Mr. HECHLER. Mr. Speaker, on FOR MARCH 7 the Distinguished Service Cross, when he March 7, 1945-18 years ago-a small AUGSBURG.-Sfc. Joseph A. DeLisio, the singlehandedly captured a German machine­ band of courageous American armored 24th Infantry Division's Remagen bridge­ gun crew that had pinned down the American head veteran, will be at Remagen on the advance over the bridge. infantry, tankers, and armored en­ Rhine on March 7. His search for the Ger­ gineers came upon a railroad bridge over man soldiers who opposed him 17 years ago REMINISCED the Rhine River at the little resort town with death dealing fire is over. Speaking at the Central Hotel owned by of Remagen, Germany. Through the combined efforts of German Gerhard Rothe, the four men described their In the face of determined German ef­ and American newspapers the defenders of feelings on the same date 17 years before. forts to blow up the structw·e, the heroic the bridge were finally discovered. "I came to the top of a bluff overlooking the American troops stormed across the Former German Army Capt. Willi Bratge Rhine and I saw the bridge below me. The Remagen Bridge under :fire and thus who has exchanged his military title for the sight was so beautiful that for that moment more peaceful one of "Lehrer," teacher, has I forgot about the war," Sergeant DeLlsio re­ captured the first crossing of the Rhine contacted the Bronx, N.Y., Victory Division members. River in World War II. weapons squad leader. In the wake of the American advance, This great feat resulted in the saving And in a letter from the town of Remagen Rothe lay on the bridge wounded attempting of thousands of American lives, and itself, a former German Army sergeant, Ger­ to crawl his way back to the German side. materially shortened the war. hard Rothe, writes "I was a member of the Misunderstanding the American order to Bridge Security Company as a master ser­ halt, he was shot at and wounded a second AUGSBURG, GERMANY.-Sfc. Joseph A. De­ time after having crawled more than 100 Lislo, the bantam rooster infantryman who geant and served there until March 7, 1945." "And this day I was wounded," continues feet. "I thought that I was going to be won the U.S. second highest award for valor, killed," Rothe recalls. "'I'm afraid we all the Distinguished Service Cross, for his part the former German sergeant, "and was per­ haps the last soldier to cross the bridge had the same thought," DeLisio added, "we in capturing the Remagen Bridge during were thinking about living." World War II, is looking for the two Germans before you took it. Doing so my thoughts who were his enemies in March of 1945. were likely similar to yours, as the bridge BRATGE The Bronx, N.Y., career soldier, now serv­ was supposed to be destroyed already at this Bratge, in charge of the Remagen defense, ing as a weapons squad leader with the time." surrendered to the Americans when ex­ 24th Infantry Division's 2d Battle Group, Herr Rothe, now owner of a hotel in plo.sives failed to topple the only bridge left 2d Infantry, in Germany, wants to shake Remagen, has invited Sergeant DeLisio and over the Rhine. Seizing the ad.vantage, hands with former German Army Capts. other participants In the reunion to be his enough American troops and equipment Willi Bratge and Karl Freisenhahn. guests. poured over the bridge to shorten the war "I want to have a reunion," says the ser­ Both Rothe and Bratge have confirmed by 6 months. The weakened structure col­ geant, "right there at Remagen on March 7 that former German Army Capt. Karl lapsed 10 days later of Its own accord, and of this year, 17 years after my outfit secured Friesenhahn, another of the defenders of Bratge, an American prisoner, learned that and held the only bridgehead on the Rhine the Remagen Bridge died several years ago. the German high command had put a sen­ River.'' Sergeant DeLisio, on duty with the 24th tence of death on his head for surrendering But Sergeant De Lisio doesn't know how Division's 2d Battle Group, 19th Infantry, the Vital structure. to reach the two Germans who opposed his first planned this reunion at the pilings Following the meeting at the hotel, the platoon of Company A, 27th Armored In­ which a.re the only remnants of the stra­ party moved to the bridge site where Sergeant fantry Battalion in 1945. tegic World War II route, after reading a DeLlsio, with a mixture of joy and sadness, "I got the names out of a. book of KEN book written by West Virginia's Congress­ presented the German veterans with memen­ HEcHLBR," adds De Lislo, "and he says that man, Mr. KEN BECHLER. toes of the reunion "signifying that one-time in 1964 Mr. Bratge was a schoolteacher In It was Congressman HECHLER's authorita­ enemies can be Joined together in a common a small town near East Germany." tive "The Bridge at Remagen," written on bond of peace." The other former German Army captain facts garnered as a World War II Army his­ SPEECH identified. in the book, "The Bridge at torian, and subsequent visits to Remagen, In an emotional speech describing the last Remagen," Karl Freisenhahn was last placed that sparked DeLisio's reunion idea. 17 years, Bratge concluded, "A bridge of in Koblenz where he supervised an athletic Author HECHLD noted in his book that steel and iron has collapsed, now let the club. Captain Bratge said, "If we could only meet bridge of friendship last forever." According to former Army Historian HEcH­ and shake hands at the very point where we The reunion, covered extensively by major LER, the Germans would look forward to a shed our blood in 1945, I believe it would German and American press, was arranged reunion at the site of the Remagen Bridge. emphasize our feeling of goOd will, one for by the 24th Infantry Division Public In­ In his book he quotes Captain Bratge as toward another." formation Office at the request of Sergeant saying that "we can use a reunion as a DeLisio was one of 13 men who received DeLisio. "It exceeded anything I had hoped symbol to express and demonstrate the Distinguished Service Crosses, the United tor," DeLisio said. 1963 CONGRESSIONAL RECORD·- HOUSE 3747 THE TEXTILE INDUSTRY OF THE Let ~e commend the gentleman from for my district-I am asking the Na­ SOUTH AND THE TWO-PRICE North Carolina who has read into the tion-is it fair to anyone dependent upon COTl'ON SYSTEM RECORD a very timely resolution of the the textile industry as a source of income North Carolina General Assembly. and as a source of livelihood? Is it fair? The SPEAKER. Under previous or­ The gentleman is with us today al­ Of course not. It is not fair. der of the Rouse, the gentleman from though he had an important delegation I say to the Members of the House that South Carolina [Mr. HEMPHILL] is rec­ meeting. I am sure the textile people 1 million American textile people depend ognized for 60 minutes. of his district and mine know that he upon this industry. I say to you also Mr. HEMPHILL. Mr. Speaker, I ask is always with us in meeting this prob­ that these people who are buying this unanimous consent to revise and extend lem. cotton in foreign nations do not pay 1 my remarks and to include extraneous Mr. Speaker, I might call to the atten­ cent of tax to support this Government, matter. tion of the Members of the House the its ambitions or its defense, or the way The SPEAKER. Is there objection fact that the situation has become so of life that you and I enjoy under this to the request of the gentleman from serious that one of the banks in my dis­ great Government in a great and free South Carolina? trict put into its show window a bale of land. There was no objection. cotton and there appeared in the news­ Something has to be done about it. Mr. HEMPHILL. Mr. Speaker, I rise paper this particular headline: "Lint Only this morning I was down at the today to again discuss a problem which Inequity Fight Spreads to Camden as Department of Agriculture attending a is an increasingly serious problem in Banks Join In." meeting at which many of us had op­ this Nation having to do with the textile Of course, Camden is located in South posed the plan of the Department of industry, involving what we call the two­ Carolina and is a very lovely town in my Agriculture to change the method which price cotton system which the President congressional district. the Commodity Credit Corporation pres­ has called a system of inequity. Mr. Speaker, I would like to include ently practices in the storage of cotton Today I have met the situation as I in my remarks at this time the story of where it is convenient to the farmer and see it head on. I have introduced two that particular effort on the part of the convenient to the purchaser on a local pieces of legislation. One of these pieces business community to alert the people level. This change, of course, would of legislation would do away entirely to the growing inequity and the growing cost a lot of money. But I might say with the 8½-cent subsidy presently en­ harm of the two-price cotton system. also that looming in the background at joyed by foreigners who purchase our The article referred to follows: that meeting I could not help but sense cotton. Two-PB.Ic!: COTTON-LINT INEQUITY FIGHT the fact that unless something is done I would like to say here that I have no SPREADS TO CAMDEN AS BANKS JOIN IN about this two-price cotton system I do objection to any of the programs which Camden's two banks have now entered the not believe the Congress in the future have been proposed by the chairman flurry over two-price cotton. will support an agricultural program of the Committee on Agriculture, whom Citizens & Southern National Bank and with such inequities included. South Carolina National Bank are display­ I admire, or any of those members of ing cotton bales in their lobbies with signs I believe, if my experience here has the Committee on Agriculture who -.not tacked to them that call attention to the fact taught me anything, and my observa­ long ago paid us the great honor of that foreign mills pay $42.50 less per bale for tion has been, that agricultural pro­ visiting North and South Carolina to U.S.-produced cotton than our local mills. grams are becoming less and less popu­ look into the textile industry and the The bale-in-the-bank idea is spreading lar just because of situations like two-price cotton situation in fact and throughout the Southeast, and Pierce Cantey, this which we can no longer justify. It in reality. I admire what they did, and of South Carolina National Bank, and Hugh is not only unfair; it is not right. It I thank them for coming. Chapman, of Citizens & Southern National Bank, are in hopes that all banks of the two represents an imposition on the Ameri­ May I say also I will support any legis­ statewide chains will follow Camden's lead can cotton producer and upon the textile lation that committee reports out which in this State and help tell the textile indus­ mills themselves. is of a curative nature, insofar as the try's plight. Mr. WHITENER. Mr. Speaker, will two-price cotton system is concerned. It is believed that the cotton bale display the gentleman yield? But the ·problem has to be met head originated with Swift Spinning Mills and Mr. HEMPHILL. I am always As the Fourth National Bank at Columbus, Ga.. on. we know now, not only are our Two North Carolina banks picked up the idea happy to yield to my distinguished friend, textile mills and their ability to produce and it has since spread throughout the Tar the gentleman from North Carolina [Mr. affected, but we are getting into a tran­ Heel State. WHITENER]. I had hoped he would be sition period from the use of cotton "Seventy percent of the industrial economy here and am pleased that he did so fibers to manmade fibers to the degree of South Carolina depends on the textile in­ notwithstanding an important meeting that if this trend is to continue, and it dustry, and we feel this inequity in price of his delegation. wm continue unless the two-price cot­ should be of great concern to every one of Mr. WHITENER. I came back from ton system is done away with, it is my our citizens," said Citizens & South­ the very important meeting because 1 prediction the cotton farmers of this ern National Bank Vice President Hugh Chapman. knew the gentleman would make a very Nation will soon reach the place where excellent contribution today, as the they do not have an adequate domestic "Actually both Senators OLIN D. JOHNSTON gentleman always does on this problem. market for the cotton they produce. and STROM THURMOND, and Congressman ROBERT HEMPHILL are foursquare behind the Mr. Speaker, I think what the gentle­ Mr. Speaker, I have also introduced textile industry and the National Cotton man is saying about agricultural legis­ another bill which is a piece of legisla­ Council in this fight, but we feel that if the lation and its future possibilities in the tion stemming from the failure of the general public knew the situation, and wouid Congress is certainly sound. When I Tariff Commission to act when we had write these officials en masse, it would look in our own section of the country­ the section 22 hearing on the import strengthened their hand with the adminis­ tration," Mr. Chapman said. which is a heavy textile as well as agri­ fee which the Department of Agricul­ cultural area-and see for the first time ture, under the direction of the Presi­ Mr. Speaker, on this bale of cotton in a side-taking operation going on between dent, had promoted. The Commission large figures is the price that the Ameri­ agriculture and industry, I think this in­ failed to honor the necessities of the do­ can manufacturers, the domestic users, dicates the seriousness of the situation mestic textile industry by imposing an pay for a bale of cotton. That price is confronting agricultural legislation in import fee. As we prepared this particu­ approximately $182.50. On this par­ the future. lar piece of legislation, the thought oc­ ticular bale the price that the foreign I might say to the gentleman that curred to me we ought to have these purchaser pays is approximately $140, a just last Saturday night I had a dis­ pieces of legislation in the alternative. differential of $42.50. cussion with a high-ranking official in I say in the alternative or any substi­ In the photograph which, of course, the Department of Agriculture along this tute that will get rid of the two-price cannot be included in the CONGRESSIONAL line. While I have a great affection for cotton system, either by some equaliza­ RECORD, I find this question: "Is this fair the gentleman with whom I was speaking tion in the form of an import fee or, to you?" on Saturday night, I must say that I better still, do away with the system en­ I am asking the Congress of the United was quite shocked to :find that one in tirely. I prefer' the latter. States, and I think I should sound forth such high place in the Department of CIX--237 3748 CONGRESSIONAL RECORD - HOUSE March 7 Agriculture could be so totally dis­ sued this week that the Springs Cotton Yet they came in here a few days ago oriented to the ·true facts with refer­ Mills were building a multi-million-dol­ and asked us to vote an additional $500 ence to the cotton agricultural economy lar textile plant, not to run cotton, but million so that they can bring in some and its relationship to the textile in­ to run synthetic fibers. $368 million underestimated cotton in dustry in America the main source of Throughout the industry the use of the Commodity Credit Corporation pro­ sales of American-grown cotton. synthetics as the total content of fabrics gram instead of saying to our people in As the gentleman well knows the Gen­ is increasing. More frightening, or it America that we are going to let you eral Assembly of North Carolina on should be frightening to those charged have this American cotton at the same March 5 passed a resolution on this sub­ with the responsibility of aiding the cot­ price that a Japanese or a German or ject imploring the Congress and the ton farmer, is the great increase in the some other foreigner can buy it. President of the United States to take blending of a little bit of cotton with a I say this is a comedy of errors, and immediate and positive action to elimi­ great deal of synthetic to make a fabric. it is time.that folks quit just entertaining nate the inequitable situation confront­ It is high time that some of those who themselves by pointing at some of us who ing every living soul who makes his liv­ are so blind, who have responsibility in are concerned about it and saying we ing in the textile industry by reason of some of these administrative agencies, are unduly excited, and look at the true this two-price cotton situation. This wake up to the seriousness of the facts of the matter. w·as a timely plea from the general as­ problem. Mr. HEMPHILL. I thank my col­ sembly of my State. I was delighted I am sorry I took so much of the league. that they had taken this action. gentleman's time, but I do appreciate Mr. BROYHILL of North Carolina. There are many who think that we are what he is doing for the people of his Mr. Speaker, will the gentleman yield? talking about this matter to entertain district and for the people of the Nation, Mr. HEMPHILL. I yield to the gen­ ourselves. There are many who take the including the people of my own congres­ sional district. tleman. position that it is a political issue. And Mr. BROYHILL of North Carolina. since I have not called the name of this Mr. HEMPHILL. I want to thank the gentleman and say that when he takes I would like to say to my friend, the agricultural official with whom I was gentleman from North Carolina [Mr. talking Saturday night I must say to the up time from me it is for the good of the Nation. I thank him for taking part WHITENER], that I was on the floor when gentleman that I was utterly amazed at he made the remarks about his conver­ the statement he made during the course here at considerable personal incon­ venience. sation with the gentleman from the De­ of my conversation with him when he partment of Agriculture. Certainly, be­ said: I might comment on his remarks. I am going to yield to some other friends ing one who benefited from the trend You know, there were not but two coun­ there toward the other party, I want to ties west of Raleigh that went Democratic in from North Carolina in just a second. North Carolina on the national level. We are not talking just to entertain say to him that this problem certainly ourselves. I am happy there are a few is not a political problem because it cer­ I immediately asked him the question: of us left who are determined to keep tainly is serious and it is one that re­ What does that have to do with the issue? talking about this. The gentleman quires a bipartisan approach. I cer­ Are you saying that the domestic economy from North Carolina is certainly among tainly would like to say this: You know is placed upon a political platter, that the those. the textile industry is a friend-the best jobs of over 200,000 North Carolinians in tex­ As far as this being a political issue, friend of the American cotton farmer. tile plants are in jeopardy because in a demo­ This is the thing we need to realize, that cratic society a majority of the people in a this is not a political issue, but is an textile area did not see fit to vote a certain issue of bread and meat, an issue of the textile industry buys the great ma­ way? economic life or death to a great indus­ jority of its raw material requirements try and a great segment of people whom from the American farmer. If both of I say to you, Mr. Speaker, and to those I love, because they have done me the them are to stay in business, certainly who listen, that I have no intention honor of electing me politically time something needs to be done. I agree whatever of walking down the path that after time, and they have been my with these remarks. This is a situation some folks expect us to walk in agricul­ friends. and a problem that has been created by tural legislation unless a realistic, intel­ Mr. WHITENER. I should like to Federal policies which have attempted ligent, f airminded, honest attitude is point out one other thing in line with to be all things to all people. What we taken by those who lead in the Depart­ what the gentleman has just suggested. will see is the wreckage of an industry ment of Agriculture today. Some of In the past week I would estimate we along the way unless we can solve it these men have been close personal have received in my office at least 50 here. The continuation of the two-price friends of mine for years, but they are letters written by folks who described cotton policy also is going to bring grave wrong. They have misled the people of themselves as textile workers in my con­ retribution on the cotton farmer him­ my section of the country. They have gressional district. . Some of these letters self. misled the leaders in the textile industry are written with pencil, some with pen, Mr. HEMPHILL. I thank the gentle­ as well as the workers in the textile in­ but none typewritten. In these letters man for his contribution. dustry. ·And unless the Congress asserts they are begging us to do something be­ Mr. WHITENER. Mr. Speaker, will itself quickly they will mislead the Amer­ cause their jobs are falling by the the gentleman yield? ican people and do great violence to our wayside. Mr. HEMPHILL. I yield to the economy. gentleman. I am sorry that I must say this. I I say to the gentleman that unless have been patient, as have all other something is done to eliminate the two­ Mr. WHITENER. I have heard with Members of Congress, with the promises price cotton situation it will not be many interest the remarks of my friend from and the hopes that have been held out, months until we will begin to get letters the district adjoining mine. I want to with the unfortunate paths down which from cotton farmers saying, ''Do some­ say that my remarks earlier about the thing to equalize this problem so that comment made to me by this Agriculture some of the textile people. I can only we can produce this crop and have ·a say-without criticism of those who went Department official was not made in a down those paths-that I today am market for it." partisan way, and I did not mean to happy that in some way I had the in­ I may say to the gentleman that it give my colleague any opportunity here spiration, or whatever you may call it, has been reliably estimated that if the to brag about the mistake made by so not to be misled. And I say that those Department of Agriculture would place many of our people at the polls in the on the market in this country some of last election. I am not saying that, of who are unaware of the seriousness of this $1,049 million worth of cotton that course, with reference to the gentleman this situation had better wake up be­ they say is involved in the last year's himself. But I take no pride in that and cause there are bad days ahead in the crop at the world price, I am told by one I just point that out to indicate that this textile industry unless something is done. of the leading textile men the world, by is a problem that transcends political I might say that unless something is telephone yesterday, that if that were parties. I do not think how people vote done there are bad days ahead for the done within a week at 1e·ast $400 million in a particular area should enter into cotton farmers in this country. worth of that cotton would move imme­ how we handle the public's business. I In the districts of the gentleman from diately into the domestic textile indus­ know the gentleman from North Caro­ South Carolina a press release was is- try. lina [Mr. BROYHILL] will agree with that 1969 CONGRESSIONAL RECORD - HOUSE 3749 even though he and I may have serious which title I accept with the greatest tion. While he did. not come out with differences as to the wisdom of folks of pleasure. any legislation, .I want to thank him and voting for his party and for my party. Several years ago in reading an a.rticle every member of his .committee for even I would hope by reason of Positive action on this very subject I was impressed with considering the problem. It was a noble that we can take here in the Congress the fact that cotton was sold abroad at thing to do. I had hoped you would that there will be such a deep apprecia­ 8 or 8½ cents per pound less than the come here with legislation that the House tion on the part of all our people that price American industry could buy it for. could support. I had hoped that the they will see that this party of ours, that Is my recollection correct? effort would be nonpartisan because this is, the Democratic Party, has had the Mr. HEMPHILL. It is eminently is an issue that affects the American wisdom to undo that which was done correct. economy. by the party of the gentleman from Mr. McCORMACK. I was so im­ I may say to the gentleman I do not North Carolina [Mr. BROYHILL] over a pressed that I introduced a bill to try to think we have reached an agreement, period of time under the leadership of bring about an equalization so that but I think an agreement can be reached. former Secretary Benson. American industry would receive the In my opinion, the Committee on Agri­ Mr. HEMPHILL. I thank the gentle­ same benefits that were given to foreign culture, with its distinguished members man. industry. I introduced a similar bill in on both sides of the aisle, has the ability Mr. KORNEGAY. Mr. Speaker, will the succeeding Congress. I remember and the experience, and because of the the gentleman yield? on one occasion shortly after I intro­ fact some of those very :fine men on both Mr. HEMPHILL. I yield to the gen­ duced the bill a measure relating to agri­ sides of the aisle visited North Carolina tleman. culture was before the House. I went and saw what we are doing, certainly Mr. KORNEGAY. I would simply like to the chairman of the Committee on could bring out legislation. That is my to say, I want to commend the gentle­ Agriculture, the gentleman from North hope. man from South Carolina for again Carolina [Mr. COOLEY], and to the rank­ Mr. WHITENER. Mr. Speaker, will forcefully bringing to the attention of ing Republican member, and spake to the gentleman yield? the House this most vital matter. 'I'his them about offering my bill as an amend­ Mr. HEMPHll.,L. I yield to the is a matter that is vital not only to the ment to the pending bill. What hap­ gentleman from North Carolina. gentleman's district, but to my congres­ pened? My bill was not germane to Mr. WHITENER. I was so proud of sional district and to many other dis­ the pending bill but they said they would the fact that as a result of the remarks tricts and to the country as a whole, and not raise a point of order and that they of the gentleman from South Carolina to the textile industry as a whole and would accept the amendment. So I of­ and the special order he got today, the to the people who work in that industry fered the amendment. Unfortunately, distinguished Speaker of the House has and to the cotton farmers. I think the however, one of our Members, not a again said, as he has stated for many gentleman from South Carolina is cer­ Democrat, and not a member of the years, that this inequitable situation tainly due a great deal of commendation Committee on Agriculture, exercising his should be eliminated 1n this country. for the time and effort he has put into rights under the rules of the House, made The Speaker of the House is from an area this presentation and for his untiring a point of order and, of course, the point which 1s very heavily involved in the tex­ efforts and undying interest that has of order was sustained. tile industry and has been from the early been exhibited through the years in do­ I refer to the fact that on two occa­ days of this Nation. Knowing him as I ing everything he can and in w·ging sions in past Congresses I have intro­ do, I know that he would be just as con­ others to follow him and to help in the duced bills because I feel that there is in­ cerned about this situation as if there salvation of the No. 2 industry in the justice in the treatment of textiles. Any never had been a textile plant within United States of America. situation which results in injustice should the State of Massachusetts. He has Mr. HEMPHILL. I thank my col­ be corrected so that one of America's shown that by his interest 1n the farm­ league. I just hope the people of the principal industries will at least be on a ers. As he has Pointed out, he has no gentleman's district recognize and ap­ comparable basis with this same industry farmers in his district. I think it is preciate the fact that since he has come in other countries. magnificent that we have here by our to the Congress he has been untiring Mr. HEMPHILL. I want to thank the side and on our side the great American in his efforts, and I thank him for the distinguished Speaker and say that I who now serves us so capably as Speak­ many times that he has supported us speak with the gratitude of the people of er of the House of Representatives. I here in trying to tell our textile story my State and area. The Speaker cer­ know that when the people of our re­ again and again, and like the gentleman tainly has made a contribution today. I spective districts, yours in South Caro­ from Gastonia who asked me to yield, am happy to have his support, and thank lina and mine adjoining in North Caro­ we hope and pray that we will not have him from the bottom of my heart. lina, are again made aware of the fact to be getting up on the floor of the Con­ Mr. HOEVEN. Mr. Speaker, will the that one of the most able soldiers on the gress to talk about this because we gentleman yield? legislative front has gone to war again would like to see some solution to this Mr. HEMPHILL. I yield. to preserve their jobs and to preserve a problem. Mr. HOEVEN. I am quite sure the great industry, they will rise up and say We have been working for some solu­ gentleman knows that the Cotton Sub­ a word of thanks from their hearts to tion and voting to trying to get some committee of the House Committee on him. solution. It is a funny thing-I have Agriculture recently held several days of Now, if I might impose upan the been sitting in the Congress here only hearings on a cotton bill introduced by gentleman briefly to say something 6 years, which is a very short time, and the chairman of the committee, the gen­ about what our dear friend and my I recognize that I am one of the younger tleman from North Carolina [Mr. neighbor in the House Office Building, Members here, but it has been my policy CooLEYl. It was soon discovered that the gentleman from Iowa, said, I too ap­ when some other area or some other in­ the mill operators, and the processors, preciate the problems which have con­ dustry was in trouble to help them, be­ and the growers were in complete dis­ fronted the committee. cause it seemed to me to be a pretty paor agreement; whereupon the chairman I know that the gentleman from Iowa thing when you will not lend a hoe to a issued a public statement saying that [Mr. HoEVEN] as the ranking member on neighbor to kill a snake. until and unless those interested could the Committee on Agriculture, by nature Mr. McCORMACK. Mr. Speaker, will agree upon some specific program the and by general traits of character on the gentleman yield? hearings would be suspended. It has this and on other matters of legislation Mr. HEMPHILL. I yield to the dis~ also been intimated that there might not will not be partisan in his approach and tinguished Speaker. be any cotton legislation at this session will not be influenced whatever by the Mr. McCORMACK. I have followed unless some agreement was reached. fact that in the ·great area from whence for several years the matter about which In view of the circumstances as they he comes the textile industry is not a the gentlemen from North Carolina and pertain to the Committee on Agriculture, big economic factor. South Carolina have been addressing the does the gentleman see any hope of an However, with reference to the gentle­ House. I think it is well known that I agreement which would make it possible man's question as to agreement, I dare­ do not have one farm in my district. My to pass a bill at this session of Congress? say that seldom do we have legislation Republican friends up my way occasion­ Mr. HEMPHILL. May I say to the of any consequence on which all people ally refer to me as the urban farmer, gentleman I am happy to have his ques- involved agree thoroughly. I see no area 3750 CONGRESSIONAL RECORD - HOUSE March 7 for disagreement in this proposition, sition and the American producer. I Mr. HEMPHILL. Mr. Speaker, I however. There is no area for argument. thank the gentleman for his contribution thank the gentleman for his support. I As the Speaker of the House of Repre­ here today. certainly agree· with him that the Amer­ sentatives has just pointed out, we have I now want to bring to the attention ican economy is our first concern and a situation where American-grown cot­ of the Members of the House certain should be the first concern of the State ton can be bought by a foreigner at 8 ½ things which came out in the magazine Department. I thank him again for cents a pound cheaper than it can be called the Textile Reporter. I commend participating. bought by an American manufacturer. it to the Members of the House because Mr. FINDLEY. Mr. Speaker, will the That in itself is the problem. There is it is concerned with the industry. It is gentleman yield? no room for argument. The only way published in Greenville, S.C., which is Mr. HEMPHILL. I am delighted to to eliminate the inequity is to in some not in my district, but it is a good maga­ yield to the gentleman from Illinois. way make it possible for the domestic zine and it keeps up with the textile Mr. FINDLEY. Mr. Speaker, as a manufacturer to buy this American cot­ industry. It represents one of the ways member of the Committee on Agriculture ton at the same price that his foreign in which I try to keep up with the in­ I should like to compliment the gentle­ competition can purchase it. dustry from day to day. man for bringing public attention to this Therefore, Mr. Speaker, when we talk There are certain facts that came out very critical problem. Truly I believe about disagreement, let me remind you in a recent issue which are significant. the cotton farmer is in deep trouble and that there was none when the Secretary Manmade fiber-fabric imports soared by has a very bleak future ahead unless of Agriculture filed a section 22 petition 57 percent to 63.4 million yards last year something is done by Congress. Second, with the Taritf Commission in which he from 40.5 million in 1961. The Census Bu­ I would like to support the suggestion of sought to have an 8.5-cent-a-pound off­ reau reports the value of these goods rose 52 the gentleman from Iowa that the ap­ set fee set upon the incoming cotton percent to $22.2 million from $13.3 million. proach has been on a bipartisan basis. Japanese shipments accounted for most of textile fabrics from foreign nations the increases rising from 33 m1llion yards I believe the gentleman will recall, dur­ placed upon the cotton equivalent of in 1961 to 56 m1llion yards in 1962. ing the hearings of the Subcommittee on those fabrics. Now, we proceeded with Cotton, I did present what I conside.red the common understanding and with the Not only are we having to compete with to be a constructive approach to the common knowledge of the 8.5-cent dis­ the Japanese, who seem to have our problem in an effort to try to meet some parity. Yet, as the gentleman from Iowa State Department at its mercy in any of the critical problems the cotton knows, to the surprise of everyone, on trade negotiations--they can outsmart farmer faces. Further I would like to one bright morning the Department of them or out-trick them-not only are speak a word in regard to the role which Agriculture representatives appeared be­ we having to compete in the cotton cloth the gentleman from North Carolina, fore the gentleman's great Committee on fabrics, but we are getting in competi­ Chairman CooLEY, of the House Com­ Agriculture and started talking about a tion now in the manmade fibers. The mittee on Agriculture, has played. I 5-cent and 6-cent adjustment to take reason for this is obvious. The Japanese think he has been quite proper in delay­ care of this problem. That is why I apparently sense the trend or the transi­ ing consideration because apparently the said earlier, if my friend, the gentleman tion from the use of cotton to the use other interests involved, primarily from from Iowa, will remember, that if the of manmade fibers and they are getting the administration, cannot agree upon people in the domestic textile industry ready 1io make their effort 1io keep the an approach which they will back. working at the machines and who are markets they have taken from us or I thank the gentleman for yielding . . engaged in textiles at all levels had not which have been given away by the er­ Mr. HEMPHILL. Mr. Speaker, I been doublecrossed by somebody, they roneous policies of the United States, thank the gentleman for his support of would have had unanimity in meeting in trying to buy friends, or something our position in our problem and say to the problem. of that kind. him that I commend him for taking a Mr. Speaker, I hope we can get around Mr. HARVEY of Indiana. Mr. great and patriotic interest in a problem to this matter in the Congress and do Speaker, will the gentleman yield? which really affects my part of the coun­ something about this question without a Mr. HEMPHILL. I am delighted to try more than other parts of the country lot of argument, dilly-dallying, and read­ yield to the gentleman from Indiana. because of the concentration of textiles ing a lot of fine print published by the Mr. HARVEY of Indiana. Mr. there. Department of Agriculture. Speaker, I want to commend the gen­ Let me assure the gentleman that I Mr. GROSS. Mr. Speaker, will the tleman on the very strong statement he look for an opportunity to be of service gentleman yield? has made and the firm stand that he has Mr. HEMPHILL. I would be happy to taken in respect to the cotton textile to help him with the problems in his yield to my distinguished friend, the situation with which he is very inti­ district. gentleman from Iowa [Mr. 0Ross]. mately concerned. I want to join him Now, Mr. Speaker, I have here from Mr. GROSS. There may be an in­ in expressing concern not only in this America's Textile Reporter of the 28th equity in this situation, but there are a instance, but I am sure the gentleman of February two articles which I shall lot of other inequities dealing with agri­ from South Carolina is aware of the bi­ include at this time in my remarks. One culture alone. There are a lot of other partisan interest that his problem has is called "Let's Knock It Off." It talks inequities with respect to imports of raised in our Committee on Agriculture. about making cotton available at the foreign products inro this country. The I would also recall to the gentleman the same price to our mills as to the foreign thing that I protest in this legislation is present difficulty that our country is now mills. This article reads as follows: this: I hope it will be brought out to the involved in with regard to sugar. Our LE'r'S KNOCK IT OFF floor under an open rule so we can off er very excellent chairman, the gentleman Commenting on the National cotton Coun­ amendments to the bill to take care of from North Carolina [Mr. COOLEY], last cil's agreement to make U.S. cotton available other inequities, and if we cannot get year tried to bring out a program that to American mills at the same price it is made available to foreign mms (through ad­ the other inequities taken care of I am would give equitable consideration to the ditional subsidies), Seton Ross of the Cot­ ready, willing, and able to vote against consumers and the producers and our ton Trade Journal said the council did the the gentleman's proposition. offshore supplies of sugar. I am sure practical, and therefore, the logical thing. Mr. HEMPHILL. I might say to the the gentleman is aware of the difficulties He added: "We don't like export subsidies, gentleman that I am happy now to hear that have arisen. I could cite other in­ but they J:1,re recognized as a necessary evil. that the gentleman is going to help us stances of equal merit. It seems to me, We don't like domestic subsidies, but they and I will tell him that I am going to in accord with what the gentleman has too have become a necessary evil. Some held him, because the gentleman and just said, that the State Department cer­ delegates to the National Cotton Council convention mourned what they termed a I have stood together on this import tainly has lost sight of the fact that the •surrender of principles' the council had long situation time after time. May I also first concern of our country ought to be and vigorously upheld but we don't see it say 1io the gentleman how much I ap­ that our own economy be preserved and that way. It was retreat--not a surrender; preciate the fact that the gentleman is permitted to grow. a retreat before the compelling pressures of a champion of the buy-American propo- I thank the gentleman. lost markets and the threat of rebuilt sur- CONGRESSIONAL RECORD - HOUSE 3751 pluses. And to those who insist on calling adoption of ill-advised but well-intentioned him. Roger Babson was the only eminent it a surrender, we put this question: Which programs. This thought has been well ex­ economist to predict the collapse of the stock would you rather surrender-a belief, or pressed by Sylvia Porter who recently used market in 1929 but he failed to foresee the an industry?" the following introduction in a financial debacle which' took place a few years later. Now, that question is rather all encom­ column for the Boston Herald. During the 1930's Keynes promulgated sur­ passing with finality. We don't believe y.e "A little learning is a dangerous thing; prising tenets which, according to modern have to do either, in the first place. But "Drink deep, or taste not the Pierian economists, proved to have many deficiencies why are export subsidies and domestic sub­ spring." but inaugurated new concepts in their sci­ sidies necessary evils? Should we condone "When Alexander Pope wrote these fa. ence. Attempts made to alleviate the de­ evil by labeling it necessary? They are not miliar lines more than 2 centuries ago, pression in accordance with Keynes' theories necessary. As a millman wrote to Con­ he of course never dreamed that they could were ineffective. In this same decade agri­ gressman BASIL WHITENER, of North Caro­ be applied to the state of the U.S. economy cultural economists with supposedly ad­ lina, the reason for these necessary evils sim­ and the safety of the U.S. dollar, circa vanced theories guided the enactment of laws ply is: "It is easier for our representatives 1962, but I think it's about as apt a poetic to aid the farmers in this country. Without to legislate this money away rather than to reference to a serious economic situation as reaching the roots of the agricultural prob­ drop these farm subsidies at the risk of could be found today. lem these laws, with subsequent modifica­ losing some votes." "For confusion is being compounded, fears tions, have created conditions whereby mills The way to get rid of these "necessary being spread which could bring about the in foreign countries purchase this Nation's evils" ls offered by another millman who very event feared by homemade economists cotton 25 percent cheaper than the taxpay­ said: "I believe we should take off the 8½ and amateur fina.nciers who overnight are ing mills in the United States. After World cents per pound allowed foreign purchasers pretending to be experts in subjects they War II when the Armed Forces disbanded, and make them pay the same amount as the hadn't even heard of-much less carefully the dire predictions of many economists re­ American market; let the cotton farmer pad­ studied-a year ago." garding business and unemployment did not dle his own canoe if he overproduces, or let Businessmen may take consolation from materialize. him sell his surplus to foreign countries at the fact that similar conditions have ap­ The transitions of this country's cotton less money if he chooses to overpr·oduce." peared in other vocations. With reference to textile industry illustrate economic principles The answers are simple but the courage is art, John Canaday, art editor of the New in operation and also the effects of fallacious lacking. York Times, has written: "The true artist economic theorizing and tinkering. The in­ But back to Mr. Ross' comments on "prin­ has been replaced by the ~mateur in a cushy dustry grew under a protective tariff and ciples" about which he speaks so lightly, we atmosphere of patronage by an amateur reached its maximum size about 1929. How­ would remind him that whenever this coun­ public." ever, in the 1920's several unrelated devel­ try has made even the slightest "retreat" on Has the staid science of economics ac­ opments began to alter the textile picture. principles, Marxist doctrines gain another quired an entourage of inexperienced prac­ The styles of women's clothing changed foothold. There was principle behind the titioners whose schemes receive support from radically so that the well-dressed woman re­ Monroe Doctrine-now look at Cuba. a gullible, superficially educated public? quired smaller quantities of fabrics made This question should be legitimate for the from yarns of medium count. Producers If it is possible to compare principles upon of fine dress goods or coarse ginghams Jost which our many American freedoms were business world to ask. To many who read the newspapers and listen to the pontifica­ their markets. Bags of paper and plastics founded with principles involving commodi­ began to replace cotton bags in the cement ties in a free market, then analogically Mr. tions of some politicians, or radio and tele­ vision commentators, the answer will be and grocery trades. The rubber companies Ross is subscribing to a reversal of the word­ built mills of their own to make simplified ing (where cotton is concerned), "I'd rather "Yes." This ls especially true of engineers and tire fabrics. The chemical companies added be dead than Red." to the complications by introducing syn­ There ls no conceivable reason why the manufacturers engaged in the production of goods not directly connected with or of im­ thetic fibers to compete with cotton in dress Federal Government should make another goods. By operating 24 hours a day, chemi­ mistake to help cover up an original mistake. mediate importance to the space age. Men who have spent their lives in the cotton cal plants demonstrated to cotton manufac­ If such errors are compounded past the turers that continuous operation with three present utterly ridiculous point, this thing textile industry foresee the death of their industry together with greater maladjust­ shifts was cheaper than partial operation could turn into a perpetual game of drop each day with one or two shifts. the handkerchief. ment in the national economy if some pres­ ent Government programs are not modified. In a very short time these factors helped As the Charlotte Observer said in a recent to transform a growing industry into an in­ editorial: "Cotton's troubles need surgery, REASONS FOR SKEPTICISM dustry with far too much productive ca­ not first aid. A new subsidy in the cotton It is natural for businessmen to look pacity. As three-shift operation became gen­ program would be nothing more than a skeptically upon the ready acceptance of eral, fewer spindles were required to supply feeble excuse for the failure of Congress to untried economic theories because in a his­ the market, and as the average yarn became face up to its duty. It must have the politi­ torical social science, such as economics, new heavier greater output per spindle-hour was cal courage to begin the surgery that in a theories cannot be proved or disproved obtained. In their struggle to survive, cot­ few years would get the Government out of within the controlled conditions of a labora­ ton manufacturers entered into a continuing the cotton business, except for the produc­ tory. For businessmen, advanced degrees war of economic attrition. Today there are tion advice it gives to growers." are often obtained in the school of hard but 19 million spindles in this country to Every honest man knows the answer, so knocks. The formal education of one of the supply 180 million inhabitants whereas in let's knock it off. most successful businessmen the writer ever 1929 there was 37 million spindles for 120 met consisted of four grades in grammar million people. The second article is part 1 of an school. Yet this man had acquired an un­ TARIFFS AND COTTON MANUFACTURING article in three parts. I am not sure I canny knowledge of economic principles. agree with all of this, but I think in This is not to imply that a sound education Due to economic attrition the bulk of the· any approach to this problem if some­ in business, economics, or liberal arts is not remaining industry has gradually concen­ a good foundation upon which to build an trated in the Southeastern States. It is safe body has some reason on the other side to say that cotton manufacturing has sur­ of it I am happy to present it here, be­ industrial career. The point to be stressed is that in sciences which involve the be­ vived in this country during the last 30 years cause we should know all of the reasons havior of living people, theory without prac­ and can exist today only because of a pro­ and we should always be sure that what tice furnishes a questionable background for tective tariff. The drop in textile employ­ we are saying is for the good of the making decisions either in business or Gov­ ment which followed the recent GATT agree­ country. I feel today that these peo­ ernment. ments in Geneva furnishes ample evidence ple who have contributed have done so A review of the history of Great Britain that any reduction in the textile tariffs af­ and the United States during the last 60 fects some manufacturers adversely. :for the good of the Nation. In theory, tariffs should be abolished be­ This article is as follows: years spotlights many instances in which the prophecies and panaceas of economists cause they raise the price of the protected COTTON TEXTILES-A SQUARE INDUSTRY IN A were not infallible. It is ironical to observe goods in the home market and hamper the ROUND ECONOMY?-PART ONE OF AN ARTICLE that usually whenever one economist gained :flow of world trade. In theory, low-wage IN THREE PARTS BY PETER M. STRANG acclaim with a new theory possessing popular industries such as cotton manufacturing In these days of the New Frontier, busi­ appeal another economist of repute would should be eliminated from the United States. nessmen frequently do not see eye to eye promptly point to the :flaws in that theory. In theory, it may be of great advantage in with modern welfare economists. The busi­ In 1910 by studies of economics that were the long run to become closely associated ness structure has such numerous and varied translated into 11 languages, Norman Angell with the European Common Market. In ramifications that disastrous repercussions proved that a war involving the major powers theory, textile mills form a logical base for may take place when persons who lack a of the world was impossible. Four years the industrialization of an undeveloped thorough knowledge of business force the later World War I completely discredited country. However, when there are large 3752- CONGRESSIONAL RECORD - HOUSE March 7 numbers of unemployed and the rate of eco .. reduce costs, to improve old products; and made jobless. Should not facts such as these . nomic growth is not adequate for the in­ to find new products. Costs were reduced receive consideration when negotiations are creasing population, the immediate a.nd the through the direct purchase of cottori at conducted to extend · trade with nations long-term effects on the Nation should be gins, better methods of selling, the purchase whose traditions, customs, methods of busi­ considered before the rigorous application of of new machines or of modifications to im­ ness, and wage scales differ widely among any economic theory is attempted. prove old machines, and the scientific utiliza­ themselves ·and more widely from those of Bearing in mind that cotton manufac­ tion of labor by means of job classification the United States? Should not defects in turers employ 353,000 persons directly, pur­ and job assignments. Severe competition has existing legislation be remedied be!ore chase 65 percent of the output of some forced manufacturers to pass most of their greater complications are added to the econ­ 509,000 cotton growers, and together these savings in costs to the consumers in lowered omy of the Nation by trying to increase for­ industries also give employment to thou­ prices or to labor in higher wages. The per­ eign trade in agricultural commodities sands for services and supplies, examination centage increase in price of some common through promiscuous reductions in tari.ff of the past experience and the present status cotton fabrics has been less than that of the and subsequently by providing subsidies to of cotton manufacturers and cotton growers average hourly earnings of text ile workers the industries adversely affected? provides the basis !or one such study. In or of the cost of living. analyses of this type it must be remembered Mr. Speaker, the gentleman from that the average American prefers a steady NATIONAL PROBLEMS North Carolina [Mr. WHITENER] has dis­ job even though the working conditions and While the cotton manufacturers face ex­ wages are not superlative rather than long­ tinction through a governmental policy to cussed the fact that we were offered a term unemployment benefits. reduce tariffs, the cotton-growing industry 5-cent subsidy. I might say I agree with Cotton manufacturing is the oldest mass faces extinction because of the failure o! the him that the subsidy ought to be . 8.5 production industry in the world and its de­ numerous governmental policies directed to­ cents, but I also must say that we are velopment was largely responsible for the ward its aid. Cotton has become so high looking for any kind of relief we can get. industrial revolution in the 19th century. priced that the export market bas been ad­ While it is not my political philosophy No other mass production industry has versely affected and synthetic fibers are re­ to have just half a loaf, still half a loaf reached the stage of development where placing cotton in the home markets in snow­ is better than none. We need so much standardized mills with standardized proc­ balling amounts. For decades two related esses and standardized machines, for which industries, cotton manufacturing which con­ relief. Maybe it would give us a little the operations of the workers have also been sumes over 60 percent of the annual 14 mil­ confidence in the future, because we standardized, can be erected ·anywhere ori lion-bale American crop, and cotton growing :Qeed that confidence if we are going to the globe. Consequently American manu­ which now produces about 30 percent of the expand and continue, and if the people facturers continually have to balance their world's supply, have been plagued with the who have the capital investments ru.·e costs plus their tariff protection against the problem of overproductive capacity. Mech­ to continue to operate. selling prices of ;foreign competitors who anization has continuously freed more land Let me talk about the Springs Mills benefit through lower wage rates and for raising cash crops on existing farms as I in cheaper raw material cotton. the need to produce food for work animals in my area. was New York the other In the United States, a federation of has diminished. An estimate made in the day when they dedicated a 21-story States where there is free trade among mem­ 1930's indicated that the substitution of building. I put an article about that bers, where the same tariff · protects all, tractors for horses and mules in the Cotton in the RECORD. This great company where cotton is uniformly priced, where the Belt in 1929 had released from the produc­ went down into the garment district of same language is spoken, and where the tion of fodder, farmland equal in area to New York City and built there a beauti­ same customs prevail, the center of gravity · 5.9 percent of the cotton acreage harvested ful building. There they exhibited the of the cotton textile industry has gradually that year. Federal irrigation projects have fabrics created by the workers in my shifted from New England to the South­ also made large tracts of fertile new farm­ eastern States in a period of 30 years be­ land available for cotton production. district. Every one of their mills is in cause restrictions as to operation were few­ The manufacturers have attempted to my district, and I am proud of it. er and at the outset wage rates were about solve their problem by means of economic They have the finest profit-sharing 20 percent lower. There are cities in New attrition behind a tariff barrier but the system I have ever heard of. It so hap­ England that have never fully recovered growers still face the problem which has pens that every man who is working from the loss of their textile plants. Is been worstened by well-intentioned agricul­ there, weaving, grinding, carding, or there any wonder that the surviving cotton tural economists who have instigated a whatever he is doing, has an investment manufacturers in the United States see ruin hodgepodge of conflicting laws presumably because he is a profit sharer. What he ahead in governmental policies which tend to aid farmers-laws which will be difficult has made of his life and his work be­ to reduce their tariff protection when, even to untangle or repeal. Today in comparison in the most advanced nation of ·the Euro­ with 1929, there are one-third as many cot­ cause of his savings in the profit sharing pean Common Market, mills can buy Amer­ ton farmers, the acreage harvested is one­ is there invested and it involves his ican cotton 25 percent cheaper and process third as great, the average yield per acre has family's future. The decisions which this cotton with workers whose wage rates more than doubled, the average man-hours the management must make must be and fringe benefits are 60 percent lower to produce a bale has been halved, but the based on what the future will bring to than those here? price of cotton is maintained through legis­ the textile industry, what the Congress Before becoming aware that an overca­ lation which involves parity of income based will do with the two-price cotton system, pacity to produce was th~ir stumbling block, upon the purchasing power of commodities what the Congress will do with the im­ the manufacturers clamored for a higher between 1909 and 1914, price supports, acre­ tariff and the Smoot-Hawley Act resulted. age allotments, soil conservation payments, port system. So we have a responsibility In retrospect it can be seen that the in­ export subsidies, and even a tariff on cotton right here. It is just as American as creased rates did not aid the cotton proc­ which has a staple length of 1 ¼ inches any question ever could be. essors and that a reduction in rates at that or more. When the president of that great or­ time would have caused greater unemploy­ The overall effects of existing agricultural ganization made the statement at that ment during the depression. In the early legislation should be examined before too dedication-and I have here an article 1930's the National Recovery Act aimed to great an effort is made to increase the export about it-that the Springs Mills had a spread the work and increase the purchas­ of American cotton in a world where the an­ plan for synthetic operation, I knew that ing power of labor, limit the hours of labor, nual per capita consumption is decreasing determine minimum wage rates, restrict the and greater quantities of the staple are being they were forced into it. I knew they hours of machine operation, etc. From the grown abroad. Although American mills are did it with the great courage they have date the NRA was declared unconstitutional the chief consumers of this country's cotton always exhibited. They are building a in 1935, the main assistance that the cot­ little thought has been given to what must new plant. When I think of the thou-. ton textile industry has received from the be done with more than half of the crop if sands of people employed and the thou­ Government has been tariff protection, al­ these manufacturers pass from the picture. sands of people whose future depends on though the Federal budgets of 1961 and The following changes are occurring across what happens with this transition and 1962 show that the Commodity Credit Cor­ the Nation. Farmworkers· in the Southeast what happens with the two-price sys­ poration has made miniscule payments "de­ are being displaced as more and more cotton signed to protect the competitive position is produced on the huge mechanized farms tem, it means we are dealing with of the domestic cotton industry in relation in the West; the numbers of unemployed in human lives and human fortunes as well to sales ot cotton products manufactured cities are being augmented by the influx of as the economy of our Nation. abroad from American cotton purchased at displaced farmworkers; factories in the Mr. FINDLEY. If the gentleman will export prices." North are moving to the Southeast because yield further, I should like to inquh·e of In order to survive, manufacturers have of the abundance of labor and lower operat­ the gentleman if another possible way been required to strengthen management, to ing costs, a_nd workers in the North are thUI to approach this problem and to help 1963 CONGRESSIONAL RECORD - HOUSE 3753 relieve the serious problem that faces make American cotton fully compet itive with and cotton futures market. It will continue the textile firms would be to move toward foreign cotton and with rayon in the do­ to force mills to use synthetics and reduce a lower level of price support on do­ mestic market. the potential market for U.S. cotton and Instead, we h ave seen action t aken which hence involve U.S. taxpayers in making a mestic cotton. Would that not have the maintains price supports at the present level further unknown and unwanted speculation same, equivalent effect in aiding the and the Department now is unwilling to go in cotton. At present the taxpayers have a textile mills? I realize it would present along with the idea of making cotton fully financial speculative investment in about problems to the cotton farmers, but in­ competitive. We have born e and are bearing 10.5 million bales, or upward of $1.7 billion, sofar as the textile mills are concerned the burden of $42.50 per bale cost disad­ and the prospects are for a reduced market would this not be a helpful step for the vantage over foreign spinners. A reduction for the 1963 crop unless cotton is priced textile firms? to $20 per bale cost disadvantage will cost competitively. So, the outlook for the cot­ Mr. HEMPHILL. I think any reduc­ the taxpayers money over the present situ­ ton industry and the taxpayers is bleak. ation and st ill not get the job done. Who is responsible for this situation? tion at this time would work such havoc Cotton is in trouble-consumption is on those people who have the small down, and the customers are confused be­ I subscribe to that and I commend acreage allotments and it would create a cause of the uncert ainties, complexities and them for saying it. I certainly hope it great inequity. I do say to the gentleman unreality of the program. Mills which for­ continues. There is good reason for the that I do think it is proper that his great merly were completely loyal to cotton are cotton trade to be in a depressed mood. Committee on Agriculture look into that now using rayon and will continue to do so The whole industry backs a one-price with a great deal of care. unless cotton is fully competitive in price. system and the administration can with Certainly, there may be room there for· Rayon sells for 26 cents per pound, contains a 32.47-percent loan. no foreign matter, is sold on net weight, elasticity or some change. 30-day terms and is uniform running. In Let me say to my wonderful friend I just had not intended to discuss that blends with cotton, the product gives a goo~ from Illinois, if this trend continues and today. I wish I had the answer. As a appearance and is serviceable. The real if the mills go to manmade fibers, I do matter of fact, I wish I did not have to people who will suffer from an unrealistic not think we are going to have the ques­ get up here in the well of the House and pricing and marketing policy are the farmers. tion any more of price supports for cot­ present to the Nation time after time A crash program of research to perfect ton so far as our agricultural commodi­ our problem. But someone's voice has techniques for complete elimination of the ties are concerned because if this can got to be heard about this thing, and we boll weevil and control of grasses will enable ever be done, if we ever reach the situa­ the farmer to compete with rayon and for­ are getting more and more of a hearing. eign growths of cotton. They will then be tion where manmade fibers can dupli­ I want to commend the gentleman for in a position to compete because their costs cate all the advantages and qualities of the bipartisan support we have received will be materially reduced. Any action cotton, and surely research is on the way from his side of the aisle and from him which does not get to the root of the prob­ to doing that, then it would be my pre­ personally. lem-lower prices through reduced costs­ diction that it would be so much easier Mr. Speaker, I hold in my hand a let­ will only result in increased surpluses and and cheaper and quicker and cleaner to ter from a textile manufacturer in my higher costs for the taxpayer. use synthetics and that cotton will go area. He is not the largest textile man­ We do not feel that continued high sup­ out of the picture. Cotton has gone out ufacturer. It is a very moderate sized ports is the answer. Cost reduction and of the picture in so many areas of the quality improvements will increase consump­ country. operation. But you know to the fellow tion and keep the cotton farmer in busi­ who is working in that mill or to the ness-anything less than this will mean his Let me read to you just a few re­ fell ow who is selling his cotton to the gradual de:i;nise. We in the textile industry marks from people who have written to mill or to the merchant uptown who is have followed the policy of quality improve­ me and with whom I have corresponded. dependent upon the income that the ment and cost reduction. We have had to Here is the president of the National people get to buy his products and, yes, in order to survive, and we know it will work. Cotton Council who happens to live right let us say to the preacher and to the All that we ask now is that a way be de­ outside of my district, but whom tbe church-that mill is important. Its con­ vised temporarily to make cotton available people of my district love and admire. tinuation is a necessity in the local com­ to the U.S. spinners at world prices while a He says: crash program of cost reduction and quality munity. If you throw 200 people out of improvement enable the cotton farmer to ef­ I agree with you we have failed to con­ work in a community and recognize the fectively compete with other fibers and for­ vince the cotton producing areas of the impact it has on the lives of the people eign growths without subsidies and equali­ South that textile mills can substitute syn­ involved-let us say there are 5 people zation payments. thetic fiber for cotton and will do so if the to a family-that would be 5,000 people Finally, the employees of our mill have price differential favors it. in distress overnight plus the merchant been receiving reduced paychecks because and everybody else and then you will our operations have been curtailed. We feel Think of that. . this is directly because the uncertainties re­ Think of that. He recognized that and know how everybody suffers. he is president of the National Cotton I put in the RECORD at this point the garding cotton's future have disrupted nor­ wonderful letter that he wrote to Sec­ mal planning and marketing. We feel Council of a great country. textile employees interests, as well as the in­ Then I find here a letter from a fine retary Freeman about this problem. terests of the cotton farmer should be con­ The letter is as follows: friend who was such a wonderful host sidered by the administration seeking solu­ when we went down to North Carolina, FEBRUARY 20, 1963. tions to these problems. Mr. Charles A. Cannon, the head of the Hon. ORVll.LE FREEMAN, Yours sincerely, Secretary of Agriculture, CHERAW CO'ITON MILLS, INC., Cannon Mills Co., when the gentleman U.S. Department of Agriculture, WM. MANNING MALLOY, from North Carolina [Mr. COOLEY] made Washington,D.C. Vice President and Secretary. available transportation to us as mem­ DEAR MR. FREEMAN: The cotton textile in­ bers of the subcommittee. This is the dustry appreciates the efforts of your De­ Mr. Speaker, I recently received a letter he wrote to the Under Secretary partment in pursuing the recent section 22 ' thing called Cotton Comments and I just of Agriculture but I think it is sound and case before the Tariff Commission, and also want to read from it. It says: I include it at this point in my remarks. your efforts in following the President's di­ rective regarding the elimination of the two­ DEMAND FOR ONE-PRICE CO'ITON INCREASES The letter referred to follows: price cotton system. There is good reason for the cotton trade FEBRUARY 12, 1963. The matter has not been resolved, how­ to be in a depressed mood. The whole in­ Re my letter to you of January 22; Mr. Jo­ ever, and we have experienced some disrup­ dustry backs a one-price system, and the seph C. Moss' reply of February 8. tion in our markets because of uncertainty administration counters with a 32.47 percent Hon. CHARLES s. MURPHY, regarding the future price of cotton. This loan and states they want an 8½-cent sub­ Under Secretary of Agriculture, U.S. Depart­ future is dependent upon the action of your sidy for export, with a lesser subsidy to the ment of Agriculture, Washington, D.C. Department and the Congress. We were domestic mills, all of which adds up to a DEAR Ma. MURPHY: I realize that action hopeful that the President's speech on agri­ three-price system for cotton. Unless the was so fast in Washington on ~ebruary 6 culture indicated that a start would be made subsidy is paid to the producers-where it and 7 that Mr. Moss• letter of the 8th did in lowering the price supports of cotton, rightfully belongs-or to the first buyer, for not take into consideration the condition and that purely as an emergency measure, camouflage reasons, a three-price system will of cotton on February 8, which is the date equalization payments would be used to result and will destroy the merchant trade of his letter. 3754 CONGRESSIONAL RECORD - HOUSE March 7 It seems to me we are simply shadow­ against a support price, which is lower be­ Ing consumption, and, certainly, at a much boxing and are not getting down to the facts cause of the distance of California from lower cost to the Government. of one of the most critical situations we American mill consuming points. I do not see how this can be accomplished have ever faced. This statement as to the freight differ­ by choking American mill consumption In the President's farm message of Janu­ ential's being a red herring is backed by while debate goes on as to whether or not ary 31, 1963, under the heading of "Cotton," the fac~ tha;t for many years every bale of the cotton farmer is going to be given some he mentioned a healthy growing cotton in­ foreign cotton that the American mills have relief from the present 16 million base acre­ dustry is vltal to the strength and pros­ purchased has been delivered to .the Ameri­ age. Every day that the mills fail to con­ perity of our Nation. He further stated that can mill at a lower price than the same qual­ sume cotton makes the farmers' position "over a million persons are engaged in pro­ ity of cotton could be bought in the Ameri­ more critical, and, certainly, the one-price ducing cotton, another million and a half are can market. Please understand that this system for cotton for the American mills employed in converting raw cotton into con­ fact is true, in spite. of the fact that the now .would do .him no harm. sumer items," and "additional millions sup­ loading c;harges, water freight, import If the present condition is allowed to con­ ply goods and services to this industry," and charges at the ports in America, tariff, in­ tinue and if Congress has not enacted one­ that "cotton exports contribute significantly surance, as well as the transportation price legislation within the next few months, to our balance-of-payment position." charges from the ports to the American the question will be whether or not the cot­ These statements certainly show the Presi­ mills, are all taken into consideration. As ton farmer will have more acreage than he dent's complete understanding of the im­ further evidence that this freight problem needs at 16 million rather than an increased portance of the cotton economy from the is a red herring, when we esablished an ex­ acreage for the following year. grower to the retail counter, to this country, port payment on cotton textiles shipped out I hope that everyone realizes that every and to our employment problems, as well as of this country to equalize the export fee bale of cotton that goes into the Govern­ the importance of the export of cotton to on cotton, no consideration was given to ment's hands as of August 1, 1963, will never our balance of trade. freight rate differentials. If, in fact, the come out above the world price unless we The increased imports of cotton textiles, American mills were able to secure their have a war or some other emergency. This largely manufactured from foreign-grown American cotton at a more favorable freight certainly cannot be an economical or a cotton, help create an unfavorable balance rate than the foreigners, it seems to me only sensible way to handle the present emer­ of trade and a drain on our gold reserve. logical to conclude that our exports of cot­ gency. Further, in the President's message he ton textiles would have been more attractive Sincerely yours, states, and I quote, "I urge that Congress to our foreign customers, and our exports C. A. CANNON. give early consideration to cotton legislation would have increased. The reverse has been that will make this important fiber more true. With a full equalization fee of 8½ Now I might just call again upon the competitive and help recapture its market. cents, plus waste differentials being allowed magazine I mentioned before for some I feel it should be signed into law before the on goods being shipped out of this country, information I got out of it, because I do end of February and made applicable to the we have declined steadily in the volume of not want to plagiarize and say these are planting of the 1963 crop." our export business. my statements. They come from this The delay which is now being caused, ap­ We should never overlook the fact that parently, by the dissension as to allowing the American mills' consumption far exceeds magazine, the Textile Reporter: the American mills a price equal to the price our export market for raw cotton. While U.S. cotton fabric imports in the first 3 paid by foreign mills for cotton and the dis­ we recognize we must export cotton and months of the long-term international cot­ sension between some of the growers as to we are willing to pay a subsidy of 8½ cents ton textile agreement rose 47 percent over how the increased acreage and support price a pound, according to my information, we the same period of the 1-year pact. Cen­ should be handled, is doing irreparable dam­ did not export for dollars but about one sus Bureau figures indicate 117 .3 million age every day to the distribution of this third of the number of bales of cotton con­ yards were shipped in between October 1 and year's cotton crop. sumed in the United States. The figures I January 1 compared with 79.7 million a This delay is depriving the workers in the have indicate exports for dollars of about 3.2 year earlier. Imports during October, first textile industry of full-time employment million bales, and American mills' consump­ month of the long-term agreement, through reduced hours or, in some cases, tion of 9 million bales. The balance between amounted to 63.5 million yards, which through loss of jobs. All of this is bound the 3.2 million bales exported for dollars and prompted U.S. Government restraints on to reflect back on the industries that supply the total exported was made up by exports further shipments from Hong Kong, Tai­ the textile industry and create a drag on under Public Law 480 and longtime barter or wan, and Portugal. Result: General !abric the economy, which the President's state­ credit. If this information is correct, then imports dropped to 28.4 million yards in No­ ment of September 1962 and his farm mes­ our export business is not costing us 8½ vember. But there was an increase to 35.5 sage of January are both intended to avoid. cents a pound, but nearer 17.14 cents a million in December. If the one-price system for cotton could pound, less whatever value we may ulti­ be established immediately, we would, at mately get out of Public Law 480 or the I do not know how much of that was once, increase the daily consumption of barter and long-term-agreement money. cotton purchased in this country at 8 ½ American cotton, and, on this point, we have Mr. Moss, in his last paragraph, indicates cents below what our local industry unanimous approval of our entire industry, that the carryover, from your viewpoint, could purchase it for, but the remark­ backed by the President's statement. It may be smaller than indicated in my letter able thing is that that cheap cotton ac­ seems to me the importance of this is being to you of January 22. At that time, January counts for 75 percent of the cotton im­ reflected by the fact that for the first 5 11, 1963, statistical figures show you had ports. months of the cotton year ended December 9,757,000 bales of cotton on loan or owned 1962, the American consumption of cotton, by the Government in CCC. On February 1, Of course we cannot export and pay as compared with the year before, had de­ this Government-held cotton had increased higher wages with an 8½-cent differen­ creased by 359,417 bales. The alarming J>art to 10,338,000 bales. tial against us. of this de.crease is the fact that for the Between February 2, 1962, and July 27, Here is another quotation from the month of November the daily consumption 1962, the CCC's stock of cotton decreased Textile Reporter: was off 3,866 bales; and for the month of by 768,325 bales. If the same amount should Failures among textile mill products man­ December, 3,711 bales. Considering the state be repossessed between now and July 27, ufacturers rose to 11 in January with $8,685,- of the market, I see no reason to think that 1963, the Government's stock would be 9,- 000 in liabilities from 7, with $339,000 January will show any improvement. 669,000 bales; however, .I see no reason to in liabilities, a year earlier. Although fail­ The red herring that has been drawn expect the American mills to be in the mar­ ures among producers of apparel and other across the path with reference to freight ket for anything like the normal require­ finished products rose to 32 in January from should not be allowed to disrupt immediate ments for cotton during this period unless 31 a year earlier, liabilities soared from action to put the American mills back on we do get relief from the two-price system $1,803,000 to $2,524,000 Dun & Bradstreet a competitive basis with the foreign mills. at once. reports. The number of failures in textile When the export subsidy on cotton was Your export figures for this year show and apparel retailing dropped to 115 from established, there was no consider·ation of that the exports are running at less than 147 but liabilities rose to $8,806,000 from any freight rate differential. When the loan 50 percent of the export figures for last $6,553,000. value for cotton was established, the price year. In my judgment, the combination­ differentials were put into effect, based on decreased American consumption and the So there are many failures. I think the delivery charges to the American mill present fact that the exports are way below this system is conducive to failure. points from the ginning or shipping areas. When we first started the two-price cot­ The sad part of this situation is that the expected figures-indicates that the Govern­ California cotton, which has become some ment-held stock on August 1 will be exceed­ ton system it worked for a time. I do of the most desirable cotton from a spinning ingly high. not criticize those who were the orig­ standpoint, is best located for Oriental ship­ I should like very much to see some over­ inators and initiators of this policy but I ment; therefore, they not only get the ben­ all cotton program adopted that would con­ say we have outgrown it and the Nation efit from the '8½ cents, but they start out tribute to an expanding production, expand- is past that stage. · 1963 CONGRESSIONAL RECORD - HOUSE 3755 At the same time I find this: ( "The mill has been the lifeblood of Yale Working with them is Mayor Hoard A. Pel­ and the surrounding territory."-Hoard A. ton, local hardware merchant. Japan complains that U.S. restraints on Pelton, mayor, Yale, Mich.) "The mill has been the lifeblood of Yale 39 categories of cotton textile imports are ( "There are a lot of heartsick people here. and the surrounding territory," Pelton said. unreasonable. So-called voluntary controls Everyone has been hit. You can't escape "We're trying to see what we can do to get are sufficient, Japanese representatives told it."-Mrs. Pearl Knapp, city clerk, Yale, the property into the hands of someone who the GATT Council meeting in Geneva last Mich.) can use it for industrial work." week. Textile interests say the U.S. proposal Packed into this press story of a mill clos­ The millhands come from several nearby to limit 1963 imports is unfriendly and ing are the stark, cruel consequences to small communities, such as Valley Center, ignores Japan's sacrifices through 7 years management, the workers, and the towns­ Melvin, Brockway, Avoca, Fargo, Roseburg, of self-restriction. They threaten to cut people. It is all the more grievous because and Brown City. back use of American raw cotton if import it was needless, and because others will fol­ Yale's business district, 2 blocks long, h as ceilings are lowered. low unless Government acts promptly with 5 empty stores among about 30 commercial I think it is unreasonable for them 1·espect to unbridled, unfair import compe­ firms and professional offices. to complain. They take our cotton at tition. "Unless something turns up pretty soon," 8½ cents a pound below what our pro­ a local resident said, "we may wind up wit h TOWN LOSES 300-JOB PAYROLL AS MAIN only five places going, including gas sta- ducers have to pay for it, then come INDUSTRY CLOSES tions." . back in here and sell the finished prod­ YALE, MICH., January 24.-Subzero ther­ "This is going to be mighty tough to get uct to us. mometer readings were minor irritations over,'' Louis J. Joyce, a city council member When we went up to the Tariff Com­ compared to the cold fear gripping this St. and mill supervisor said. mission hearing under section 22 there Clair County town of 1,600 today. A veteran of 24 years with the mill, he is sitting in the room were the· Japanese. Yale Woolen Mills, the main industry for one of the few supervisory employees still miles around, has gone out of business. working. Their employment will terminate It was a terrible thing to me, because I by April. was thinking about the people back home With it went 300 jobs, an annual payroll of about $1 million, and a quarter of the local "It's going to mean increased taxes for one thing," Joyce said. ' who have confidence in their Govern­ tax base. ment and this great system of freedom. If this weren't bad enough, Yale citizens­ "Someone's got to take up the slack I saw foreign competitors being given a many of them now without jobs or pros­ now that the mill has gone, and that can preference-were given a preference. It pects-will be forced to pay for a new sew­ only mean the rest of ·the taxpayers. The was one of the black days of decision for age plant ordered by the State health de­ retired folks and those on fixed incomes are partment. Its cost has been estimated at going to be hit hard, I'm afraid." the textile industry the day the Tariff He said the company officials had kept Commission brought out their 3-to-1 more than $400,000. supervisory employees informed of the sit­ Then, there's the $1 million issue for a new uation for months. decision; it was a terrible thing for the school. It's slated for the April election. industry. Turned down by the voters once before, it "We've been going kind of thin for the last Here are two other quotations of has little, if any, chance of going through 5 years, as far as work is concerned,'' he interest in this connection: said. this time. LINGERING DEATH Increase in the use of manmade fibers The nub of the problem revolves around appears to be worldwide. World production the woolen mill. Founded here in 1881, it The mill's peak payroll o! more than 550 of man-mades in 1962 reached 3,940,000 halted operations Tuesday. persons was reached in about 1940. Since metric tons against 3,525,000 in 1961, an in­ "Believe me," Robert E. Andreae, secretary­ then, things have been declining as the com­ crease of 12 percent. U.S. output was up 22 treasurer and descendant of the founders, petition, at first a pinch and then a vise said, "we in management did a lot of soul which squeezed the mill dry, became over­ percent. Other countries showed the follow­ powering. ing increases: Spain, 21 percent; Italy, 17 per­ searching before deciding we simply had to cent; Germany, 14 percent; United Kingdom close down. It was somewhat akin to having a relative and Nordic countries, 10 percent; France, 9 "The bottom's been dropping out of the die of a lingering illness. It was expected. wool and textile industry for years. But, when the end came, it was still a percent; Benelux and Austria, 8 percent; and shock. Japan, 2 percent. "We kept in business against increasing odds merely to provide employment. so William Salerno, shoe merchant and for­ Manmade fiber fabric imports soared by mer councilman, noted that Yale has only 57 percent to 63.4 million yards last year from many depended on us we felt we couldn't stop as long as there was any hope." two other industries, both small. 40.5 million in 1961. The Census Bureau "We had a community improvement asso­ reports value of these goods rose 52 per­ The decision to close was based on chang­ ing patterns of world commerce, the trend ciation organized awhile back to bring cent to $20.2 million from $13.3 million. new business here," he said. "They got a ma­ Japanese shipments accounted for most of of laws governing imports and inroads made in the wool business by synthetic fibers. chine shop out of New Haven but that only the increase, rising from 30 million yards has jobs !or seven or eight men. in 1961 to 56 million in 1962. "Understand this," Andreae said. "We're not blaming labor, industry, or the law as "Another small factory moved in from Finally, I would like to conclude with such. We simply can't meet the competi­ Imlay City and hired six or seven. We'll a word about wool, although I do not tion in wools from countries where costs are really have to get busy again-and on a cheaper. We have been flooded with imports. much bigger scale." have any woolen manufacturers in my Of the 300 workers on the last payroll, district. I do, however, have them in SELL EQUIPMENT about 100 were women. my State, and we are glad to have them. He said the company, founded by ChariE:s . "I don't know what these people are go­ They are doing a great job. They give Andreae and still controlled by the family, mg to do now," Mrs. Pearl Knapp, city clerk a lot of employment and their payrolls would sell its equipment. said, "but the mill's down for good. Com~ are very important to certain sections. "We will hold the buildings, however," he mittees are looking a.round for .a new buy­ They sent me an article entitled "We said, er but that's just a dream, I'm afraid. He said management was anxious to "There are a lot of heartsick people here. Have Been Flooded With Imports," and rent or lease them to a new industry if one Everyone has been hit. You can't escape on the second page of this release is the can be found to move into the community. it. You just tighten up the belt and work statement, "Town Loses 300-Job Payroll Yale is in the northern part of St. Clair harder to find work." as Main Industry Closes." Then they County, which adjoins Macomb County. Older employees are doubtful that t h ey "We want to help the community recover would be hired by a new industry. give some statistics. Howard Barr, 57, had worked 41 years in Mr. from this blow," he said. "We'd sell the Speaker, I ask unanimous consent property if it would be advantageous to the mill. His wife, Verna, 58, worked there to include this article and the accom­ Yale but, as long as we retain title, we can 40 years. panying table in my remarks. protect the people." Barr pointed out that neither are old The SPEAKER pro tempore. Is there enough for social security benefits but too HUNT FOR INDUSTRY old to go out and get other jobs easily. objection to the request of the gentle­ He said the company had refused to sell Mr. and Mrs. Lavern Carl worked 35 years man from South Carolina? everything outright "because there are a lot at the mill. Carl is 62, Mrs. Carl, 59. There was no objection. of professional manipulators who would buy "At our age, there isn't much you can do," The matter referred to follows: it all and then dump everything. Mrs. Carl said. "Nobody would win that way," he said. Donald Winkler, 43, secretary-treasurer of YALE WOOLEN MILLS CLOSED, 1963-FOUNDED The mill has been working with the Port local 980, Textile Workers of America, the 1881 Huron Industrial Development Corp. and th-, union at the mill, finds himself unemployed ("We have been flooded with imports."­ Michigan Economic .Development Commit­ with eight children to support. Robert E. Andreae, secretary-treasurer, Yale tee in efforts to find a new industry to take Winkler said wages averaged $1.70 an hour, Woolen Mills.) over the buildings. with an average weekly check of $67. 3756 CONGRESSIONAL RECORD - HOUSE March 7 I mports into United States f or consurnption of selected semimanuf act1ffes and manuf actures wholly or in chief value of wool and similar hair [All fig ures in thousands]

Woven cloths Wearing apparel Total T ops Yarns Knit cloths Blankets Period (pounds) (pounds) (pounds) Tapestry and Other (pounds) and robes Not knit or Pile upholstery (pounds) Knit crocheted (pounds) (pounds) (pow1ds) (pounds) Pounds Square yards ---- 1951______24, 490 10, 399 1,605 12 l9 8,983 18,697 12 239 2,557 664 1952 ______41,967 23,122 2,385 8 14 12,491 24,031 23 447 2,675 802 1953 ______24,067 5,638 2,113 9 19 12,053 24,276 73 420 2,988 759 1954 ______14,861 448 1,642 19 18 9,288 19,528 60 195 2, 555 636 1955 ______21, 017 365 2,032 31 26 14,318 29,221 70 151 3, 190 834 1956 ______27,795 1,173 2,401 46 50 17,295 34,852 70 119 5, 078 1,563 1957 ----______26,072 926 2, 308 49 59 15,897 32,235 110 159 4,820 1, 744 1958______27, 032 1,222 2,420 40 64 16,391 34,331 125 191 4, 693 1,886 1959 ______44,310 4, 145 5,230 50 132 22, 488 46,431 118 291 6,394 5, 462 1960 ______54,039 4,592 5,250 26 240 29,332 62, 01 9 646 233 8,065 5,655 1961______43,822 3, 396 5,496 126 298 118,910 I 42, 921 1,594 296 8,661 5,045 1962 2 ______68, 200 5,700 9,200 100 300 127,600 164,200 2, 300 300 12, 700 10,000

t Includes imports of woven cloths in part of braid or through the Virgin Islands in 2 Preliminar y. 1962 of 6,000,000 pounds or 14,000,000 square yards and in 1961 of 120,000 pounds or 260,000 square yards. Source: U.S. B ureau of Census FT 110, U .S. Imports of Merchandise for Consumption. Mr. HEMPHILL. Finally, Mr. Speaker, under Secretary Freeman. He saw flt help textile firms meet foreign competi­ let me say that I do not claim that either to increase the level of price supports for tion. of the bills I have introduced offers a cotton to 32 ½ cents a pound. He did Known as the Gathings bill, it would final solution. I do say that they are this in his first year in office, and he set in motion a new round of subsidies. here for your consideration. For my announced just a few weeks ago that he It would let the Secretary of Agriculture part, I subscribe openly to the abolition was keeping the level at the same high, pay a subsidy to mills, handlers, or retail­ entirely of the two-price cotton system. unrealistic rate. As a result, today we ers in order to make possible a cut in Any other solution is a temporary have more Government cotton in ware­ cotton product prices. proposition, and no other solution will houses than we did when Secretary Free­ Under this proposal the taxpayer adjust the inequities that the President man took office, and by August of this would continue to pay out money to keep described and to which our distinguished year, it is estimated that warehouses raw cotton prices high, but would also Speaker gave voice today. holding Government cotton will have start forking over-from the same hard­ about 10 million bales either owned by pressed pocketbook-other dollars to the Commodity Credit Corporation, or bring these prices back down, once the COTTON UNDER BENSON AND under loan by the Commodity Credit cotton leaves the farm. FREEMAN Corporation. In either event, the re­ Why does the bill specify that the new Mr. FINDLEY. Mr. Speaker, I ask sponsibility and probably the ultimate subsidy must go to somebody other than unanirr.ous consent to address the House property of the American taxpayer. the cotton farmer? for i; minutes, to revise and extend my So one could not honestly and prop­ Certainly, it would be a lot simpler, remarks and to include extraneous erly conclude that the American cotton less costly, and more straightforward matter. farmer is in a better situation today than to send each farmer a Treasury check The SPEAKER. Is there objection he was under Secretary Benson. He is for 8½ cents for each pound of allot­ to the request of the gentleman from indeed in a worse fix, and moving in the ment cotton he raises. At leas~ Con­ Illinois? wrong direction. gressmen and other taxpayers would There was no objection. The gentleman from South Carolina then have a clearer notion of what is Mr. FINDLEY. Mr. Speaker, I did not spoke of the desirability of eliminating going on, and what it costs. ask the gentleman from South Carolina the two-price system for cotton. That, However, if other Congressmen find [Mr. HEMPHILL] to yield to me during indeed, was the objective and the final out this bill actually proposes to use tax his special order for the purpose of my goal of the Benson program for cotton. dollars to force down prices that other remarks at this time for reasons I wish Cotton was proceeding in that direction tax dollars are forcing up, I doubt that to explain. I wish to speak in respect in an orderly manner until the advent of it will pass. If made to mills, this sub­ to the program for cotton which was Secretary Freeman. sidy would mean huge checks to big non­ inaugurated under Secretary of Agricul­ . · Since the 1930's, U.S. taxpayers have farm enterprises. Wherever spent, the ture Benson. t ried manfully to help the cotton farmer subsidy would increase Government costs Mr. Benson's name was brought into by: first, paying heavy export subsidies at a time when we are confronted with the discussion, not by the gentleman to keep U.S. cotton moving in world a budget $11 billion in the red. from South Carolina, but by a Member markets; second, buying, handling, and It would leave the small cotton farmer of this body to whom the gentleman storing mountains of cotton through about where he is now. from South Carolina had yielded. I , Commodity Credit Corporation; and, The bill would permit above-allotment therefore, did not think it fair to impose third, paying premium prices for cotton planting only if this does not increase upon the time of the gentleman from products. stocks. Consensus seems to be this would South Carolina for this purpose. Despite all this the cotton farmer has rule out increased planting. Mr. Speaker, the suggestion was made severe income problems, textile firms are In my judgment the proposal is inade­ that cotton today is in trouble because at a disadvantage, and so are consumers quate and ill-advised whether it passes of alleged mismanagement under the and taxpayers. or not. At best, it would leave both the Benson administration. I would like the Because taxpayers subsidize export textile mill and the farmer on an artifi­ RECORD to show that cotton indeed was prices, U.S. cotton sells much lower cial base, subject to the changing whims headed down the right road toward abroad than at home. This raw mate­ of Government and unable to build a a sound and profitable basis under Sec­ rial differential causes U.S. textile firms sound future in a realistic marketplace. retary Benson. to lose out to foreign competitors. It would call for a new army of Federal When Secretary Freeman took office as Meanwhile the cotton farmer has re­ inspectors, and make the land of cotton's Secretary of Agriculture, he raised the stricted plantings and loses markets at legislative briarpatch even thicker. level of price supports for cotton. Under home and abroad to synthetic fibers. HOW TO END THE COTTON HEADACHE the program inaugurated by Secretary This Committee on Agriculture has What is needed is legislation which Benson the support levels were moving considered a proposal which ostensibly will ultimately: down toward the market levels, where would get cotton product prices back First. Enlarge income opportunities they should be. This t.rend was reversed where they belong and at the same time for the cotton farmer. J.963 CONGRESSIONAL RECORD - HOUSE 3757 Second. Reestablish a one-price cot­ The cotton farmer would, for the first increasing demand for skilled manpower ton market. time, be able to compete efficiently and which the technological age is making·. Third. Permit the cotton farmer to effectively with synthetics. Now and increasingly as we progress, compete fairly with foreign competitors Cotton mills would no longer be placed the need for highly skilled workers re­ and synthetics. at a disadvantage by an export subsidy. gardless of physical handicap, will be Fourth. Get Government out of the Today's surplus cotton would be con­ great; and the vocational rehabilitation cotton business. verted to cash. program is doing its part to fill this need. To achieve these goals, I propose a Government would be out of the cotton Yet, we seem to have overlooked a 3-year program during which Uncle business in 3 years. vital step in this entire process-the Sam would, first, sell the cotton surplus The heavy tax cost of buying, handling, provision of an adequate basic educa­ back to the cotton farmer at an attrac­ and storing cotton would end. tion to large numbers of physically and tive price in exchange for 1-year land­ Cotton supplies would not be disturbed mentally handicapped children, so that conserving agreements; second, step during the sell-back period. Govern­ they can progress into the vocational down the level of price supports to world price; and, third, increase plantings, ment cotton would not enter market rehabilitation program with the funda­ with unrestricted planting after 3 years, channels until harvest time, and each mental education and skills which can at which time crop· loans would be au­ bale entering then would be matched by be built upon through advanced educa­ thorized at 90 percent of U.S. market a bale cutback in production. tion and training programs to provide price. Government domination of cotton the kind of productive people who have HOW IT WOULD WORK would end. This proposal would grant made our country grow and prosper. Before planting time each year, the no authority for Government to dump Briefly, my bill would do the follow­ Secretary of Agriculture would make cotton on the market. It would place the ing: First, establish a program of Fed­ contracts with farmers owning allot­ marketing of Government cotton where eral grants-in-aid to the States on a ment land. This would be on a volun­ it belongs: in the hands of the cotton matching fund basis to assist them to tary basis--first come, first served. farmer. establish and operate programs of spe­ The contract would entitle the farmer Taxpayers would have more money in cial education for handicapped and to buy at harvest time a quantity of their pocketbooks, and consumers would gifted children; second, provide for ex­ Government cotton equal to his own an­ find shelf prices lower. tension and improvement grants to the nual production of allotment cotton. States for special education programs; third, provide for a program of grants The price--just low enough to get the THE EXCEPTIONAL CHILDREN'S· desired participation-would be speci­ to colleges and universities as well as to fied in the contract, with allowance for ACT OF 1963 State educational agencies for scholar­ grade, condition, and location. The SPEAKER pro tempore tanks, artillery mortars, and dential Transition Act of 1963." releasing aerial photographs of missile motor transport vehicles have been noted, Section 2 declares its purpose to pro­ sites last fall. Also, the gravity of the including the free rocket overground [Frog) mote the orderly transfer of Executive situation led me to believe that the missile which has a nuclear capacity," Fitch reported. "other missiles and armored per­ power dming the several months of American people should know-one way sonnel carriers are similar to those in use by transition from one administration to or another-about Cuban caves. American forces," he said. the other. This morning, the Chicago Tribune Section 3 authorizes certain services has a large headline, "Cuban Caves Hide INCLUDES T- 54 TANKS "Other modern items in Cuba include the to be provided by the General Serv­ Arms." The article was written by the T-54 tank with a 100 mm. gun, similar to ices Administration to President-elect distinguished journalist, Willard Ed­ our M-60 main battle tank with 105 mm. and Vice-Presidents-elect, such as of­ wards, of the Chicago Tribune press serv­ gun," he told the committee. "There are fice space, compensation for staff per­ ice. The Edwards article is based on also medium tanks, truck-mounted multiple sonnel and experts, travel expenses, and testimony by Army Intelligence Chief rocket launchers, and amphibious personnel so forth. Maj. Gen. Alva R. Fitch before the carriers. Section 4 authorizes necessary services, Senate Armed Services Committee "With the introduction of this equipment office space, and so forth to outgoing yesterday. into Cuba, the potential firepower and mo­ bility of ground forces has been increased Presidents and Vice Presidents for 6 Mr. Edwards says in the article: considerably. We do not believe any of the months following the expiration of their Aerial photography . has further revealed sophisticated equipment-rocket launchers terms. the building of new roads to cave locations, and tanks-have yet been turned over to the Section 5 authorizes the Congress to Major General Fitch testified, and it is con­ Cubans. appropriate such funds as may be nec­ sidered highly probable that much military "Training activities have been intensified, essary to carry out the purposes of the equipment and supplies are being stored improving the capabilities of Cuban person­ act. underground. nel to utilize soviet equipment. No nuclear In conclusion, Mr. Speaker, may I I wish to insert the complete Chicago warheads are believed to be in Cuba although it is possible that they could be used by draw your attention to the fact that this Tribune story at this point in my some of the weapons systems there." bill to provide Federal Government funds remarks: for the vital transition of Executive CUBAN CAVES HIDE ARMS-AERIAL PHOTOS Today's Washington Post & Times power from the outgoing to the incom­ BARE BUILDING OF NEW ROADS-RUSSIAN Herald carried an article on page 2 en­ ing administration has receiv~d the en­ TROOPS SHOW MUCH ACTIVITY titled "Army Gives Report on Cuba dorsement of President Kennedy and (By Willard Edwards) Caves." Staff Reporter John G. Norris former Presidents Harry S Truman and WASHINGTON, March 6.-The Army's in­ quotes Major General Fitch as saying: Dwight D. Eisenhower, as well as former telligence chief reported to Senate investi­ Cuban refugees continue to report that presidential candidates Thomas E. Dew­ gators today that Russian troops in Cuba strategic missiles were not all actually re­ ey, Adlai E. Stevenson, and Richard M. are showing much activity in connection moved from Cuba and that they have been Nixon. with caves throughout the island. stored in caves. John M. Bailey and Congressman Aerial photography has further revealed the building of new roads to cave locations, General Fitch goes on to say: WILLIAM E. MILLER, the chairman of the Maj. Gen. Alva R. Fitch testified, and "it is While all such reports receive exhaustive two major political parties, have also considered highly probable that much analysis. It is our belief that the Soviets lent their full endorsement and support. military equipment and supplies are being did, in fact, remove all strategic weapons Mr. Speaker, I can see no valid reason stored underground." systems that were in Cuba at the time the why this body should not enact the nec­ MISSILE CREWS LEAVE quarantine was imposed. essary legislation to meet this kind of "To date, there are no indications that Although General Fitch conceded that transition as a matter of organized pro­ Russian ground force units have departed cedure and as a matter of law in order from Cuba other than those associated "ammunition, supplies, vehicles, and to orient and in order to effect the order­ with the missile systems which were re­ even aircraft" might be stored in "sev­ ly transition of power into the new Gov­ moved last fall," Fitch said. eral thousand caves," he was unable to ernment, particularly, Mr. Speaker, at This information was contained in a confirm or deny that Soviet missiles had a time when it is extremely necessary statement released as Fitch went into a been completely removed from Cuba. closed session with the Senate Preparedness The complete Washington Post article for a new Government taking over this Investigating Subcommittee, headed by Sen­ Government of ours to be able to meet ator JOHN STENNIS, Democrat, of Missis­ follows: almost immediately the challenges sippi, which is probing all angles of the ARMY GIVES REPORT ON CUBA CAVES which are constantly hurled at us, the Cuban threat. (By John G . Norris) American people, every hour of the day. "Cuban refugees continue to report that The Army's intelligence chief testified Mr. Speaker, I yield back the balance strategic missiles were not all actually re­ yesterday that thousands of caves in Cuba of my time. moved from Cuba and that they have been are being used to store Soviet weapons. But stored in caves and underground installa­ he voiced doubt that the hidden war stocks tions," Fitch stated. include offensive missiles or bombers. CUBAN CAVES "While all such reports receive exhaustive Maj. Gen. Alva R. Fitch, reporting to the analysis, it is our belief that the Soviets Mr. FINDLEY. Mr. Speaker, I ask Senate Preparedness Subcommittee in _its did, in fact, remove all strategic weapons investigation of the Russian military buildup unanimous consent that the gentleman systems that were in Cuba at the time of the quarantine last October 22. there, gave the most _detailed official report from New Hampshire [Mr. CLEVELAND] yet on what American intelligence knows "From the large volume and frequency of may extend his remarks at this point in about underground weapons storage in the RECORD and include extraneous reports concerning the underground stor­ age of ammunition, supplies, vehicles, and Cuba. matter. even aircraft, it is certain that there is con­ A censored version of his testimony in The SPEAKER pro tempore. Is there siderable activity in connection with under­ closed session, released to the press, also objection to the request of the gentleman ground installations throughout the island. declared that: from Illinois? "In numerous cases, reports indicate that To date there are no indications that There was no objection. this activity is being carried out solely by Soviet ground force units have left Cuba 3760 CONGRESSIONAL -.RECORD - HOUSE March 7 other than those associated with the with­ The SPEAKER pro tempore. Is ·there information to Americans or Europeans or drawn missile forces. Europeans desirous of investing in Europe. objection to the request of the gentleman - - No nuclear warheads are believed to be in from Illinois? Cuba, although they possibly could be used If true, this story raises the specter of by some of the Soviet weapons systems now There was no objection. inflation~inflation_spelling bad news for there. Mr. CLEVELAND. Mr . . Speaker, on Americans living on fixed incomes. REFUGEE REPORTS March 5 the Washington Post and It seems paradoxical to me, that our In his discussion of the underground Times Herald had an article on page 8 Government is proposing deficit :financ­ weapons storage, Fitch said that "Cuban entitled "De Gaulle Considering Pur­ ing at a time when we are forced to buy refugees continue to report that strategic chase of U.S. Bonds." foreign exchange. Perhaps we should missiles were not all actually removed from This story, filed in Paris, states that consider surplus financing or, at the very Cuba and that they have been stored in our Government is trying to get the least, a solidly balanced budget. caves.'' French Government to buy $100 million "While all such :r:eports receive exhaustive to $150 million in short-term U.S. Treas­ analysis," he went on, "it is our belief that ury bonds. The reason given for this PROBLEMS OF URBAN AREAS the Soviets did, in fact, remove all strategic action is: weapons systems that were in Cuba at the Mr. time the quarantine was imposed." The American Government anticipates Mr. FINDLEY. Speaker, I ask But Fitch said that in light of the large possible difficulty in defending the dollar to­ unanimous consent that the gentleman volume and frequency of intelligence re­ ward the end of 1963 or the beginning of from Massachusetts · [Mr. MORSE] may ports about the underground storage of am­ 1964. extend his remarks at this Point in the munition, supplies, vehicles, and even air­ RECORD and include extraneous matter. craft it is certain that there is much activity The complete article as follows: The SPEAKER pro tempore: Is there in connection with the several thousand DE GAULLE CONSIDERING PURCHASE OF U.S. objection to the request of the gentleman caves in CUba. BONDS from Illinois? Reports indicate, he said, that such under­ PARIS, March 4.-President Charles de ground storage ls handled by Russians and There was no objection. Gaulle is considering whether to authorize Mr. MORSE. Mr. Speaker, at the that Cubans--including high-ranking mlli­ the purchase of U.S. Treasury bonds to sup­ ta.ry men-are not allowed access to the port the dollar, it is reported here tonight. present time the Congress of the United caves. The result may be made known after States is engaged in the study and con­ SUITABLE FOR STORAGE Tuesday's weekly Cabinet meeting. sideration of a number of matters of Intelligence reports tell of the use of de­ France's decision may depend on whether vital importance to our fast growing humidification and air-conditioning equip­ the American Government is willing or able ~etropolitan areas. Hearings are just ment in the caves, which would make them to curb America investments in key sectors being completed ori proposals to aid mass suitable for storage of both large and deli­ of the :European economy. Officials here transportation; other studies are under­ cate electronic items. Aerial photography, fear control of these sectors may be pur­ way on a variety of subjects including Fitch reported, has revealed that roads have chased by foreign capital. been built to both known and suspected cave America's request for financial aid from juvenile delinquency, air pollution, and locations. France was formally presented last Thurs­ crime. What has struck me about all In the 6-month period before the mid-Oc­ day to Finance Minister Valery Giscard of this activity is the lack of coordina­ tober Cuban crisis, Fitch said, military in­ d'Estaing by Robert Roosa, American Under tion between these areas of inquiry. Two telligence received about 3,000 reports that Secretary of the Treasury. . Roosa is under­ years ago, I introduced a resolution to were evaluated and coordinated with the stood to have asked for the purchase, in creat a select committee composed of 13 data obtained from aerial reconnaissance. francs, of $100 million to $150 million worth Members of the House of Representa­ Fitch listed the following heavy· modern of short-term (15 month) Treasury bonds. army equipment introduced into Cuba: T-54 Switzerland, Italy, and Germany have all tives. This committee was to "conduct tanks mounting a 100-m111meter gun; SU- bought bonds in their own currencies under a full and complete investigation and 100 assault guns of similar caliber on tracks; similar arrangements. study of the problems of urban areas, in­ truck-mounted multiple rocket launchers; Financial circles here interpret the offer­ cluding housing, urban renewal, slum Snapper wire-guided antitank missiles: new ing of these short-term bonds a.s an indica­ clearance, prevention and elimination of (1961 model) a-wheeled armored personnel tion that the American Government antici­ urban blight, air and water pollution, carriers; Frog missiles, similar to the U.S. pates possible difficulty in defending the dol­ water supply, sewage facilities, trans­ Honest John rockets, with a nuclear capa­ lar toward the end of 1963 or the beginning portation, and other problems of urban bil1ty; artillery motars, and amphibious per­ of 1964. sonnel carrier!,. It is felt here that the request may give De areas." This equipment, Fitch said, increases con­ Gaulle a good opportunity to bri~g pressure Little progress seems to have been siderably the potential firepower and mobil­ on the United States to restrict investment made in coordinating these studies. ity of Communist forces in Cuba. But he in French fields where American capital has Therefore I am again submitting this added that it was doubted that any of the recently become unwelcome-oil, real estate, resolution in the hope that a study, such more sophisticated weapons had as yet been automobiles, and the food industry. as the one proposed, will enable the turned over to the Cubans, although train­ It seems paradoxical, French experts are House to act on the basis of informed, co­ ing to this end has been intensified. remarking, that the U.S. Government should herent judgment in dealing with these be obliged to seek foreign support for its Major General Fitch's testimony be­ currency at the same time that private com­ problems. The areas of concern which fore the Armed Services Committee yes­ panies in America are exporting large sums, I have mentioned are necessarily re­ terday gives us little to be happy about. thus aggravating the balance of payments lated; they can thus be considered most However, I applaud the fact that this situation for the United States. profitably together. I urge my colleagues administration has seen flt to tell the Not only are these American companies to turn their attention to this matter. American exporting funds for new investments, these people just what it knows observers say; they are also holding in Eu­ about Cuban caves. rope profits made on previous investments, I hope as time goes on that we will placing them chiefly in Swiss holding com­ UNFAIR COMMERCIAL ACTIVITIES have more precise information concern­ panies, instead of repatriating them to the Mr. FINDLEY. Mr. Speaker, I ask ing Soviet weapons in Cuba. The Amer­ United States. unanimous consent that the gentleman The question is raised here whether pres­ ican people have a right to know the na­ from New York [Mr. LINDSAY] may ex­ ture and extent of the Cuban threat to ent American legislation permits the U.S. tend his remarks at this point in the this hemisphere. Government to curb foreign investment. Present French legislation in most cases does RECORD and include extraneous matter. not enable the French Government to bar The SPEAKER pro tempore. Is there it directly. objection to the request of the gentleman HOW STRONG IS THE DOLLAR? An organization just set up may be re­ from Illinois? Mr. FINDLEY. Mr. Speaker, I ask garded by the French as a possible channel There was no objection. for regulating a flow of funds that for the unanimous consent that the gentleman moment neither country seems able to con­ Mr. LINDSAY. Mr. Speaker, I intro­ from New Hampshire [Mr. CLEVELAND] trol. This ui Eurofinance, a group of five duce today for appropriate reference a may extend his remarks at this point in European banks, including the French So­ bill to provide civil remedies to persons the RECORD and include extraneous ciete Generale, and five American banks, os­ damaged by unfair commercial activities matter. tensibly simply a research center to provide in or affecting commerce. This is a re- 1963 CONGRESSIONAL RECORD - HOUSE 3761 vised version of previous bills which I be invoked by an injured party as an alterna­ ment is available not merely to a success­ have introduced on the same subject. tive to the common-law tort of unfair com­ ful plaintiff, but to the "prevailing party," petition in cases where interstate commerce so that a successful defendant also is en­ The text has been rearranged so· that is affected. titled to make an application for counsel some of the sections appear in a different In the absence of such a statute, there fees, as well as to recover statutory costs order and a few additional alterations can be no ·uniform Federal rules in the law and disbursements. have been made in language in a contin­ of unfair competition. This comes about Section 3 lists the "unfair commercial uing effort to allay the fears which have because of the decision of the U.S. Supreme activities" that are made actionable. The been expressed by certain persons that Court in 1938 in the famous case of Erie R. expression "unfair commercial activities" this proposed legislation would interfere Co. v. Tompkins (304 U.S. 64), which held was selected deliberately because it was felt that there is no Federal common law. As a that "unfair competition" might be con­ in some way with the power of the States result, Federal courts that have jurisdiction strued as a limitation, since some "unfair to continue to enforce their own laws in of cases because of the diversity of citizen­ competition" cases have required a showing the field of unfair competition. This ship of the parties must apply the law of the of actual competition, in addition to a show­ view is based on a misconception of the State in which they sit; and this extends to ing of unfairness, as a prerequisite to relief. purpose of the bill. unfair competition cases. Section 3 contains only four subsections. It is not the intention of this proposed There are many branches of law where This brief list of unfair commercial activities legislation to take away from the courts the rule of Erie v. Tompkins has salutary that would violate the statute represents of the several States their jurisdiction effects because it prevents the accidental a carefully chosen compromise. On the one availability of Federal jurisdiction from af­ hand, it would be a practical impossibility over unfair competition cases between fecting the law applicable to a given con­ to define in detail _every type of conduct citizens of the same or different States. troversy. In the field of unfair competi­ sought to be prohibited; as the U.S. Supreme The purpose of the legislation is to estab­ tion, however, the effect of this decision has Court said in the case of Federal Trade Com­ lish a Federal cause of action for unfair been to prevent the development of uni­ mission v. Gratz (253 U.S. 421, 437 (1920)), competition in addition to the existing form nationwide rules of business !airplay "An enumeration, however comprehensive, common law right of action and to grant and this situation has been widely criti­ of existing methods of unfair competition to Federal courts exclusive jurisdiction cized. must necessarily prove incomplete, as with As communication and transportation be­ new conditions constantly arising, novel un­ over actions under this legislation. The come increasingly rapid, business activities fair methods would be devised and de­ States retain full jurisdiction to enforce tend more arid more to be interstate in veloped." On the other hand, a simple their own standards, and this bill leaves character and even local operations more statement that all unfair acts in commerce an aggrieved party who believes he has a often than not will have an effect on the shall be unlawful would not have been suf­ cause of action under State law perfectly interstate business of someone else. Ac­ flcien tly precise to serve as a basis for the free to proceed in a State court if that is cordingly, there is a clear need for uniform­ desired uniformity of decision throughout his preference. ity in the law applicable to unfair commer­ the Federal judicial system. The bill uses the term "unfair com­ cial activities, and this has been recognized Section 3 (a) is framed in terms of the by many eminent authorities. However, "commission" of an act or practice, or the mercial activities" instead of the more uniformity cannot be secured under the pres­ "use" of a statement. This introductory usual expression "unfair competition" in ent checkerboard system where the spe­ language is intended to embrace all forms order to avoid the possible limiting effect cific legal principles of the individual States of activity, including the unfair use of a of the latter term. · The proposed legis­ must be applied even by the Federal courts. statement prepared by a third party. There lation is designed to establish uniform This bill would make unfair commercial are three parts to subsection (a) ; the first Federal rules of fair practice in all forms activities an offense cognizable in the Fed­ two of these cover confusion as to the affili­ of commercial activity. These rules will eral courts as the violation of a right created ation, connection, or association of the de­ by a Federal statute. As a result, a uni­ fendant, and confusion as to the origin, be enforcible 'in the Federal courts by form body of law would be created. This source, or sponsorship of the goods or serv­ any person who is damaged or likely to would provide certainty for businessmen, ices of the defendant. The concept of con­ be damaged by the unfair act or practice; prevent forum-shopping and tend to raise fusion is the basis of trademark infringe­ provided, of course, that the commerce the level of commercial morality in the ment under the Lanham Act (15 U.S.C. 1114 affected is within the proper scope of country as a whole. ( 1) ; the bill would extend this concept to congressional regulation under the Con­ The bill does not favor any particular confusion caused by means other than the stitution. class, group, or industry as against any other. use of colorable imitations of a trademark. I am pleased to announce that an It is an effort by disinterested lawyers to In addition, section 3(a) (2) would codify improve the administration of justice in the law of confusion of sponsorship, which identical bill has been introduced by the important field of unfair competition. (under that designation) has developed Senator · JAVITS in the other body, and Section 1 states the intent of the bill, largely in cases involving questions of the I wish to commend the Committee on which is to protect any person engaged in registrability of trademarks, and make it Trade Marks and Unfair Competition of interstate commerce against unfair com­ available in nontrademark cases as well. Sec­ the Association of the Bar of the City mercial activities by making actionable in tion 3(a) (3) would be a Federal antidilution of New York for their fine assistance in a Federal forum all unfair commercial activ­ law, paralleling similar enactments in recent the drafting of this legislation. ities set forth in the bill, whether used or years in Georgia, Illinois, Massachusetts, and Finally, I enclose the text of a memo­ committed locally or in interstate commerce. New York. This liberal doctrine thus would Section 1 is designed to invoke the fullest become available in any trademark or trade randum which explains the bill in greater possible scope of congressional power un­ name case where interstate commerce was detail: der the commerce clause of the Constitu­ affected. MEMORANDUM To ACCOMPANY BILL To PRO­ tion. This statement of intent is somewhat Section 3{b) prohibits the use of false or VIDE CIVIL REMEDIES TO PERSONS DAMAGED reminiscent of the corresponding provision misleading statements about the goods or BY UNFAIR COMMERCIAL ACTIVITIES IN OR in the Lanham Act, the Trademark Act of services of either party. It is limited to AFFECTING COMMERCE 1946 (15 U.S. sec. 1127; Intent of Act), but statements "of fact" in order to avoid pro­ The accompanying bill essentially is the is even more explicit in its language. hibiting anyone from stating his opinion. same as H.R. 7833, 86th Congress, 1st session Section 2 sets forth the scope of relief to Since section 3(b) applies to statements (1959); H.R. 4590, 87th Congress, 1st session be available under. the bill. The right of about the goods or services of "either party," ( 1961); S. 1036, 87th Congress, 1st session action is for an injunction; no damages may it covers not only false advertising of what ( 1961); H.R. 10038, 87th Congress, 2d session be recovered. There are two main reasons the defendant is offering, but also trade libel ( 1962) ; and S. 2784, 87th Congress, 2d ses­ for the limitation to injunctive relief. It or disparagement directed against the plain­ sion ( 1962) . Although no hearings were is believed that plaintiffs in most cases of tiff's products or services. Doubts about the held on any of these bills, they have been this nature are interested primarily in bring­ availability of injunctive relief against dis­ the subject of considerable study within the ing about the cessation of the unlawful acts paragement, caused in some jurisdictions by legal profession which has led to various rather than in collecting damages, which false analogies to libel and slander, thus modifications, culminating in the present may be difficult to prove even in the best of would be removed. Section 3(b) specifically version. The original bill was drafted by circumstances. Furthermore, the absence contemplates the possibility that a state­ the Committee on Trade Marks and Unfair of any provision for damages should prevent ment may be false or misleading by reason Competition of the Association of the Bar of the use of the new right of action as the of the omission of a material fact as well the City of New York, whi~h also has pre­ basis for "strike" suits. At the same time, as by an actual misstatement of fact. In pared each of the successive variations in a party with a genuine claim should not be this respect, it resembles the definition of a response to comment and criticism from deterred from bringing an action because false advertisement in the Federal Trade other bar associations, trade associations and of its expense; accordingly, section 2 pro­ Commission Act (15 U.S.C. sec. 55.(a) (1)). the like. vides for reasonable attorneys' fees Jn the Section 3(c) is a deliberate catchall. It The basic purpose of the bill is to create a discretion of the court, in addition to tax­ is directed against "the commission for pur­ Federal statutory cause of action that could able costs and disbursements. Such a judg- poses of profit of any other act or practice 3762 CONGRESSIONAL RECORD_,. HOUSE March 7 which is likely to deceive or·which violates State law is discarded. Section 9 -of -the bill ing Award · dinner on February 26 in reasonable standards of commercial ethics." provides that the relief available under the HollyWood: This language resembles the provisions of statute "shall be in addition to and not in two multilateral treaties to which the United exclusion of those rights and remedies other­ FREE ENTERPRISE-THE TRUE FOUNDATION OF States is a party: Article 10 bis, paragraph 2, wise available under the common iaw or pur­ A FREE WORLD of the International Convention for the Pro­ suant to the statutes of any State or of the , (By Henry J. Kaiser) tection of Industrial Property, which pro­ United States." Section 9 goes on to state Tonight I salute the great world of broad­ vides, ..· Any act of competition contrary to explicitly that the statute shall not be con­ casting and advertising, embracing, as you do, honest practices in industrial or commercial strued in such a way as to preempt the juris­ drama, entertainment, music, song, art, the matters constitutes an act of unfair com­ diction of any State to grant relief against printed and spoken word-the most power­ petition"; and article 20 of the Pan-American unfair commercial activities. The net effect ful force of all time to bring pleasure, en­ Trade-Mark Convention, which provides, of these provisions is to create a new right lightenment, and the fruits of free enterprise "Every act or deed contrary to commercial of action cognizable exclusively in the Fed­ to people. good faith or to the normal and honorable eral courts, but at the same time to preserve I am grateful with all my heart for the development of industrial or business activi­ existing State law in the same field. Most award you have presented me. Yet after say­ ties shall be considered as unfair competition cases of unfair competition tend to be ing "thank you more than I can voice"-! and, therefore, unjust and prohibited." brought in the Federal courts and it ls ex­ would prove unworthy of the honors if I Section 3(d) is a provision against the in­ pected that in the future such cases would didn't say-"now let's get on with our jobs stitution in bad faith of an action under invoke the new statute. However, a plain­ ahead." the proposed new act itself. This is con­ tiff who wished to invoke State law would What kind of a tomorrow are we going to sidered to be an obviously desirable protec­ be free to proceed in the State court based build? tive feature to avoid possible abuses of the on the same facts that also would create What will the United States be like in the statutory right. a right of action under the new Federal mid-1970's and by the year 2000? In summary, section 3 has for its purpose statute; such a party would be entitled to Fortunately we have some solid forecasts the establishment of guideposts for the Fed­ all the benefits of State law if he chose to in figures. Our Government joined two na­ eral courts that are explicit enough to iden­ pursue them, either in addition to or in tional planning associations in predicting tify the principal types of unlaWful activity substitution for the Federal right of action, what Americans will achieve in the last one­ and yet will allow the flexib111ty of interpre­ entirely unaffected by the provisions of the third of this century.1 tation that is essential in a field where rapid bill. Their report, Just issued, stimulates metre­ technological advances in business and com­ Section 10 contains definitions of a num­ mendously. The experts look at the long­ munications constantly create new oppor­ ber of terms used in the bill. Most of these pull trends. tunities for exploitation by the unscrupulous are borrowed almost verbatim from the de1l­ The trouble with short-run estimates often few. nition section of the Lanham Act ( 15 U.S.C. is that forecasts Just for this year may be Section 4 is designed to provide additional 1127). conflicting and confusing, perhaps influenced assurance of a broad, liberal construction Section 11 ls the customary saving clause by a temporary situation or clashing theories. for the bill. It states that, "Absence of for partial invalidity. Under short-range estimates, the forecaster competition between the parties • • • shall Section 12 provides that the new statute may miss the forest for the trees. not be a defense to an action brought under shall take effect immediately upon its enact­ But this long-range forecast takes account this act." Section 4 also assures the widest ment, but that it shall not affect any pro­ of the historic past performance of our econ­ possible access to the benefits of the statute ceeding pending at that time. omy and projects the trends that should pre­ by providing that no showing of actual dam­ Section 13 provides a short title for the vail. age shall be a prerequisite to relief and that statute, viz, the Unfair Commercial Activi­ So here are highlights of this official fore­ absence of any public interest in the subject ties Act. cast for the year 1976: matter of the action shall not constitute a Only 13 years from now-this country's an._ defense. nual output of goods and services will reach Section 5 protects innocent publishers and about one thousand billion dollars. broadcasters by making the absence of knowl­ FREE ENTERPRISE - THE TRUE Our employment will exceed 92 million edge or intent a defense in an action against FOUNDATION OF A FREE WORLD with the labor force one-third again as large such a party in respect of the contents of Mr. FINDLEY. Mr. Speaker, I ask as now. "any news, literary, educational, advertising, Almost 70 percent of American families or entertainment medium." Section 6 pro­ unanimous consent that the gentleman will be earning, at current prices, more than vides that relief under the statute shall not from California [Mr. YouNGER] may ex­ $6,000 a year. be available when_ the injunction would de­ tend his remarks at this point in the REC­ America's population will top 235 million lay the dissemination of a particular issue of ORD and include extraneous matter. people. a periodical, the broadcast of a radio or tele­ The SPEAKER pro tempore. Is there Two-thousand-miles-an-hour planes will vision program, or the showing of a motion objection to the request of the gentleman fly us from Los Angeles to New York in 90 picture, after the regularly scheduled time from Illinois? ·minutes-New York to Moscow in 2 hours.: therefor. These provisions are similar to the Those are some of the official forecasts. corresponding section in the Lanham Act There was no objection. To me they emphasize that there lie im­ (15 U.S.C. sec. 1114(2)) and also resemble Mr. YOUNGER. Mr. Speaker, recent­ mediately ahead times of spectacular change, the provisions of the Federal Trade Commis­ ly one of America's leading industrialists challenges of revolutionary impact, yet un­ sion Act (15 U.S.C. sec. 53(b)). and builders was honored for his contri­ dreamed-of opportunities. Section 7 limits the substantive offense by butions to the free enterprise system we Science and industry are jet propelling this providing that the statute is not to be so cherish so much. The man selected to generation into lightning progress of mate­ construed as to "extend or enlarge the rights rial civilization far outmatching anything and remedies provided under the patent or receive the first International Broad­ mankind has ever known. · copyright laws of the United States." The casting Award was Henry J. Kaiser. Mr. Scientists and free enterprisers are making purpose of this provision is to guard against Kaiser has played an important role in · breakthrough in every field. possible attempts that might otherwise be the growth of the industrial might of In electronics alone, you well know how made to use the new statute as a device this country, and more recently, the de­ , millions of robots are at work for us in our for increasing the scope or duration of a veloping nations of the world. daily lives with computers and pushbutton patent or copyright monopoly. Trademarks True to his credo, "Find a Need and control systems making it possible to do are not mentioned in section 7 because they Fill It," Mr. Kaiser is searching the jobs in factories, offices, and laboratories stand on a different footing from copyrights that before have been too complex or la­ and patents. The bill does broaden the corners of the earth for opportunities borious for humans, In television, there rights of trademark proprietors; and the pos­ that will help all mankind enjoy a fuller, are the wonders of transistors and of Telstar sible criticism about extending the duration more rewarding life. It has been said . spanning the continents, as man learns how of the right that might have been made (in that Mr. Kaiser never looks back upon to send messages millions of miles along a the absence of sec. 7) with respect to copy­ his accomplishments--instead, he con­ beam of light. rights and patents is inapplicable to trade­ stantly is looking ahead, seeking out new Our lives will be affected by the peaceful marks, because a trademark remains valid areas of need. use of atomic energy and new, vaster sources indefinitely under existing law so long as it As he accepted the Free Enterprise is not abandoned. Award he presented such an inspiring 1 "Projections to the Years 1976 and 2000: Sections 8 and 9 should be considered to­ Economic Growth, Population, Labor Force gether. Section 8 grants exclusive jurisdic­ appraisal of the future that I wanted to and Leisure, and Transportation," reports to tion to the Federal courts of all actions aris­ call your attention to his enthusiastic Outdoor Recreation Resources Review Com• ing under the statute, without regard to forecast. I ask unanimous consent to mission, to the President and Congress; U.S. diversity of citizenship or jurisdictional place into the body of the RECORD his Government . Printing Office, '\Yashington, amount. However, this does not mean that remarks at the International Broadcast- D.C. 1963 CONGRESSIONAL :RECORD - HOUSE 3763 '· of power by amazing discoveries in chem­ capacity. Yet that company's capacity has velopment missions in 1954-55 through Latin istry, drugs, and living cells by new uses of been multiplied seven times. America. metals and other materials and new processes Doubting Thomases said the west coast We were told all the stock, scare reasons providing us with thousands of new products could not mass-produce ships; it didn't have that it couldn't be done·. Yet in Argentina for you to advertise and sell. the shipb.uilders. Yet ships were built at and Brazil, there were established full auto­ I have just quoted you the forecasts for record low cost_at a rate of one a day. motive manufacturing industries, employing 13 years from today. Now let's consider the Hardheaded men argued that the west the people's skills, making nearly all the forecasts that this same important report coast had neither the raw materials nor the parts there, raising living standards, earning makes for the year 2000. markets to build its own integrated steel profits, filling needs. Here are some of the things that the able industry. However, a 3-million-ton-a-year This is done under the "partnership pat­ economists state will take place in the next steel plant today feeds the industrialization tern" which is proving itself so much also 37 years: of the West. in other hemispheres. The Nation will have 350 million people­ Sixteen reasons were given why a new­ The grandest achievement that could almost twice as many as today. comer would flop trying to enter the alumi­ usher in the 21st century would be that our The goods and services produced annually num industry. Two hundred firms turned age should succeed in extending the benefits will. be almost four times our current gross down operating the wartime aluminum of civilization to the entire human race. national product. They will reach $2,000 plants, convinced "aluminum will be run­ Win we must-and it's my faith we will billion. ning out of our ears." Yet that aluminum win mankind's ceaseless struggle to avert an­ Just imagine what this 2-trillion-a-year business has multiplied nearly six times. other world war and to attain peace and economy will mean in more of all the things Opponents said that they would kill a "new freedom. for the people who produce, market, and economics of medical care." Yet some 60 This dip into the future suggests a lot consume the abundance of a fabulous age. h9spitals and medical clinics now provide for each and every one of us to do our The average family's yearly income-after care to 1 million health plan members. part. taxes and in 1959 dollars, mind you-will These examples illustrate this credo--find The world of broadcasting and advertisjng soar to $14,750, the survey states. a need and fill it. can carry a powerful message to the people, Fifteen times as many families will be At this time of new and unprecedented spurring on the limitless potentials imme­ earning $20,000 a year and up. opportunities, find the needs for tomorrow­ diately ahead. I don't for a minute blink at staggering to make life fuller, richer, more meaning­ The prospects are as limitless as the minds forecasts like these. I remember being ful, more satisfying to the inner individual. and hearts of men, yet. as real as the bold warned years ago, "Henry, don't be fantastic; The revolt is rising to rebuild our huge imagination, the faith, the love, and the don't · soar into the wild blue yonder," when but decaying, traffic-clogged, nightmarish will to work that men can unleash. I urged--let's set our goals for the postwar cities. Let us resolve that increasing affluence and "To be alive in such an age! at 60· million jobs and a 400-billion-a-year With every year a lightning page, economy in the United States. Yet that leisure shall not bring wasteful idleness, heedlessness, and the rot of soft living. When miracles are everywhere, target has been well exceeded. These fore­ And every inch of common air casts force us to raise our sights. A tremendously greater number of people will engage in a gigantic upsurge of the Throbs a tremendous prophecy Spending for housing will triple, the re­ Of greater marvels yet to be. port forecasts. service businesses and trades. We will spend Five times as much probably will be in­ far more for all the cultural arts. We seek "To be alive in such an age­ vested in plant and equipment. to create a climate more rewarding to the To live in it, By the turn of this century, we are told life of the intellect, and the arts, the adven­ To give to it! we will almost double today's number of -ture and learning of travel-all the self- Give thanks with all thy flaming heart­ jobs. There will be 135 million people gain­ fulfillments of human growth. Crave but to have in it a part." 1 fully employed. Man is discovering through research and science so many ways for people to live And may you never underestimate the Their average workweek will be 30 to 31 part you yourself can take. For- hours--some 8 hours less than now. longer, and one of the vital ingredients is They will have month-long vacations as a to keep young at heart. "We never know how high we are, rule. They will travel nearly three times as A towering strength of the American Till we are called to rise; much as now--0n the average 11,000 miles a people's free way of life is our system's And then if we are true to plan, year per person. ability to meet constant changes. Our stat'ures touch the skies." 3 Turning to California, I dug into the 434- Freedom for Americans means nothing is page book of projections and thought back ever finished. 15 years ago when skeptics scoffed when I We are not under dictator rule that we ·cuBA AND THE PLATT AMEND­ predicted this State's population by 1970 , cannot improve ourselves as individuals. MENT-OR FORMER PRESIDENT would gain 50 percent and would reach 20 The worth and dignity and freedom of the HARRY S. TRUMAN SUFFERS A individual are paramount. mlllion. I was too conservative. California MENTAL LAPSE is headed for 18 mlllion people this year and The people's right to vote in free elections more than 22 million by 1970. Then what? .guarantees the people's veto over the abuse Mr. FINDLEY. Mr. Speaker, I ask The forecast is that California in a mere 37 of power and the right to accomplish changes unanimous consent that the gentleman years will have 41 million people. to meet the public will. It ls the from Florida [Mr. CRAMER] may extend Now I'm leaving the figures on the magni­ genius of the people that they have proved they can make democracy work, however his remarks at this point in the RECORD tude of the growth ahead, and looking to and include extraneous matter. · the deeper meanings. fierce are the onslaughts against it. More skills and knowledge than ever be­ It is my abiding faith that our system of The SPEAKER pro tempcre. Is there fore will be called upon in coming years. freedom under law and justice will endure objection to the request of the gentleman The psychologist Walter Pitkin showed and prevail, both at home and ultimately from Illinois? that not more than one-fifth of the average around the world. There was no objection. man's brain is ever used as it might be, and The talent for struggling through and Mr. CRAMER. Mr. Speaker, former perhaps half of one's brain remains unused coming up with ever-better solutions should President Harry S. Truman came for­ from birth to death. We should not be mean, for one thing, that employers and em­ ployee unions can find a better way than ·ward with a suggested solution to the satisfied with that. Cuban crisis which, insofar as it relates For the future that's right upon us, our crippling strikes to arrive at an equitable youth must be educated to their maximum sharing of the fruits of productivity. to the Platt amendment, would be about capacities trained to the skills that will be in Kaiser Steel employees and management-­ as effective as the present administra­ serious shortage for this age of science. with the public represented in the program­ tion's handling of this matter. And equally important-they desperately are experimenting to find better answers to For clarification of the record, I am need to be grounded in the humanities--in sharing gains of productivity and to cushion­ herewith including a copy of an article human relations--and the realms of the ing the impact of technological ad­ by R. H. Shackford, Scripps-Howard spirit. vances . . ·staff writer, on Mr. Truman's proposal The jobs ahead call for more ideas and Our slogan "Together We Build" could in which he points out that the Platt ideals-more courage and will-more zest be applied to every citizen, because to live for work-more brainpower. There always up to our opportunities in this land and win amendment was actually partially re­ will be still tougher so-called "impossibles.'.' the victory for lasting peace and freedom pealed in 1934 and ·a new treaty was Personally, I occasionally look back on the require everlasting teamwork. substituted on May 29 of that year. I past only to goad myself to the faith that No people in hist.ory have given so much also include a memorandum from the the pending "imp06Sibles" can be done. to assist other peoples shake off slavery and Library of Congress on the · subject of We should take the "t" out .of "can't." poverty in mind, body, and spirit. .the Platt ·amendment and a copy of the The skeptics said a new cement plant I was awakened to how much American could not make it in northern California ·free enterprise can do to help other peoples 2 Ang~la Morgan, "Today." which they claimed already had too much _when I flew 75,000 miles· on industrial de- 3 Emily Dickinson, "Aspiration." CIX--238 ' '3764 CONGRESSIONAL .RECORD - HOUSE March 7 treaty of May 29, 1934, which superseded desire to fortify the relations of friendship would draft a constit"lition for a Cuban it, believing it is important to keep the between the two countries and to modify, government to which the United States with this purpose, the relations established would transfer authority. When this assem­ record straight as it relates to Cuba. between them by the Treaty of Relations bly was eventually convened, it met with I am glad to see, however, that the for­ signed at Havana, May 22, 1903, have ap­ American stipulations. These stipulations, mer President did recommend that the pointed, with this intention, as their pleni­ largely drafted by Secretary of ·war Elihu Monroe Doctrine should be one of the potentiaries: Root, were introduced in the Senate by Sen­ guiding principles of our actions on [Names of plenipotentiaries) ator Orville H. Platt, of Connecticut, as an Cuba, which is consistent with House Who, after having communicated to each amendment to the Army appropriation bill Joint Resolution 227, which I introduced other their full powers which were found to of March 2, 1901, and was adopted by Con­ calling for. the restatement and imple­ be in good and due form, have agreed upon gress in that form. According to one his­ mentation of the Monroe Doctrine: the following articles : torian, the Platt amendment "was designed ARTICLE I to place such limits upon the island Repub­ "DEAD" PLATT AMENDMENT ON INTERVENTION lic's activities as to make her a safe and INVOLVED--MENTAL LAPSE ATTRIBUTED TO The Treaty of Relations which was con­ tractable neighbor.'' 1 The amendment au­ TRUMAN ON CUBAN CRISIS cluded between the two contracting parties thorized the President to terminate the mili­ on May 22, 1903, shall cease to be in force, (By R. H. Shackford) tary occupation of Cuba as soon as a Cuban and is abrogated, from the date on which the government should have been established Former President Harry s. Truman, who present treaty goes into effect. prides himself as a scholar of American under a constitution which "either as a part history, had a major lapse last weekend which ARTICLE II thereof or in an ordinance appended there­ should leave him blushing. All the acts effected in Cuba by the United to," would define future relations with the In a copyrighted newspaper article on the ~tates of America during its military occu­ United States as follows: Cuban crisis he suggested that the Platt pation of the island, up to May 20, 1902, the 1. Cuba should never make any treaty with amendment was still in effect. Actually, date on which the Republic of Cuba was any foreign power which would impair its Franklin D. Roosevelt abrogated the Platt established, have been ratified and held as independence, nor permit any foreign power amendment in 1934 when he proposed a valid; and all the rights legally acquired by to obtain "lodgement or control over any new treaty with Cuba to supersede the 1903 virtue of those acts shall be maintained portion of said island." treaty which include~ the Platt amendment. and protected. 2. Cuba should agree not to contract any His proposal was ratified by the Senate on ARTICLE III debt beyond the capacity of its ordinary June 9, 1934, about 6 months before Mr. Until the two contracting parties agree to revenues to pay. Truman became a U.S. Senator. the modification or abrogation of the stipu­ 3. Cuba should consent that the United States might intervene "for the preservation RIGHTS lations of the agreement in regard to the lease to the United States of America of lands of Cuban independence, the maintenance of The amendment reserved the right of the in Cuba for coaling and naval stations signed a government adequate for the protection of United States to intervene militarily in Cuba by the President of the Republic of Cuba on life, property, and individual liberty," and whenever necessary. On May 29, 1934, in February 16, 1903, and by the President of for the discharging of treaty obligations asking Senate consent to ratification of a the United States of America on the 23d day which would now devolve upon Cuba from new treaty with Cuba, Mr. Roosevelt said: of the same month and year, the stipulations the United States. "I have publicly declared 'that the definite of that agreement with regard to the naval - 4. Cuba should ratify all the acts of the policy of the United States from now on is station of Guantanamo shall continue in U.S. military government. one opposed to armed intervention.' In effect. The supplementary agreement in re­ 5. It should agree to execute the sanitary this new treaty with Cuba, the contractual gard to naval or coaling stations signed be­ program instituted by the military govern­ right to intervene in Cuba is abolished, and tween the two Governments on July 2, 1903, ment. those further rights, likewise granted to the also shall continue in effect in the same form 6. Title to the Isle of Pines (an island United States in the same instrument, in­ and on the same conditions with respect to south of the western end of Cuba) should volving participation in the determination of the naval station at Guantanamo. So long as be left to future adjustment by treaty with such domestic policies of the Republic of the United States of America shall not aban­ the United States. Cuba as those relating to finance and to don the said naval station of Guantanamo or 7. Cuba should sell or lease to the United sanitation, are omitted therefrom. the two Governments shall not agree to a States the lands necessary for coaling or "By the consummation of this treaty, this modification of its present limits, the station naval stations at points to be agreed upon. Government will make it clear that it not shall continue to have the territorial area 8. These provisions should be embodied in only opposes the policy of armed interven­ that it now has, with the limits that it has a permanent treaty with the United States. tion, but that it renounces those rights of on the date of the signature of the present The American demand that these stipula­ intervention and interference in Cuba." treaty. tions be included in the Cuban constitution CARRIED FURTHER ARTICLE IV were at first resisted by the constituent as­ While Mr. Truman was President this re­ sembly, but were eventually accepted after If at any time ih the future a situation Secretary Root assured the Cubans that the nuncition of U.S. intervention was carried should arise that appears to point to an out­ further under the Rio Mutual Defense break of contagious disease in the territory intervention contemplated in the third Treaty. In this pact, intervention anywhere of either of the contracting parties, either of article would take place only in the event in the hemisphere was renounced. the two Governments shall, for its own pro­ of foreign threat or domestic disturbance. Mr. Truman's apparent forgetfulness of tection, and without its act being considered The amendment was added as an annex to American history showed up in his article unfriendly, exercise freely and at its discre­ the Cuban constitution, and embodied in a after he had cited the various provisions of tion the right to suspend communications permanent treaty between the United States the Platt amendment. Then he added: , between those of its ports that it may desig­ and Cuba in 1903. "It seems to me that when it appeared nate and all or part of the territory of the OCCASIONS FOR INTERVENTION that the situation in Cuba (under Castro) other party, and for the period that it may The first test for the Platt amendment was getting out of hand and that a threat consider to be advisable. came in 1906. The first President of Cuba, to the security of this hemisphere was ARTICLE V Estrada Palma, had been reelected, but clearly in the making, we should have con­ within a few months there was a revolution. sidered that the basic implications of the The present Treaty shall be ratified by the contracting parties in accordance with their Little fighting actually took place, but Monroe Doctrine were at stake, as well as Estrada Palma appealed for help to Presi­ the reservation imposed by the Platt amend­ respective constitutional methods; and shall go into effect on the date of the exchange of dent Theodore Roosevelt. President Roose­ ment, which anticipated precisely such a velt sent William Howard Taft to Cuba to move. their ratifications, which shall take place in the city of Washington as soon as possible. try to get the quarreling Cuban factions to "These provisions, the Monroe Doctrine In faith whereof, the respective Plenipo­ settle their differences. This mission failed, and the Platt amendment, were there as tentiaries have signed the present Treaty and the President of Cuba then resigned, the much for the welfare and protection of have affixed their seals hereto. Cuban Congress received his resignation and Cubans as for the security of all the other Done in duplicate, in the English and then adjourned without choosing a suc­ nations of this continent." Spanish languages, at Washington on the cessor. But the Platt amendment was not "there." 29th day of May 1934. With Cuba thus left without any effective It has been dead for almost 30 years. [SEAL] CORDELL HULL, government, Taft proclaimed a provisional [SEAL] SUMNER WELLES, regime. President Roosevelt appointed TREATY OF RELATIONS BETWEEN THE UNITED [SEAL] M. MARQUEZ STERLING. Charles Magoon provisional governor of STATES AND CUBA, SIGNED AT WASHINGTON, Cuba. A "handful of soldiers" occupied Cuba, MAY 29, 1934 THE PLATT AMENDMENT while Magoon strove to carry out various (Department of State, Treaty Series, No. 866. Following the Spanish-American War, reforms. After reasonably honest election The treaty was ratified by the President of Cuba was occupied by American soldiers un­ in 1909, the United States withdrew. the United States, June 5, 1934) til 1902. In 1900, Governor Leonard Wood, The United States of America and the acting under orders from Washington, an­ 1 Herring, Hubert, "A History of Latin Republic of Cuba, being animated by the nounced an election of an assembly which America." New York. Knopf, 1959. p. 404. 1963 CONGRESSIONAL RECORD - HOUSE 3765 . In 1911, dissension, riots, and armed up­ Mr. CRAMER. Mr. Speaker, after a up the difference between contributions and risings flared a.gain in Cuba. The United 5-month delay the General Accounting the $60 million demanded, ls he doing so States took measures preparatory to inter­ Office has finally answered my inquiry as an agent of the U.S. Government? vention. These measures consisted of the 6. Why hasn't a full disclosure of all the dispatch of a few companies of marines to addressed to the Comptroller General facts been made before the deal is closed Guantanamo, to aid the established Gov­ on October 9, 1962, relating to the Cuban between Donovan and Castro? ernment in the event anarchy threatened.ll prisoner blackmail proposals by Castro The Secretary of State has reported to us As events worked out, no greater troop and the action of the U.S. Government that the release of the prisoners was accom­ movements were necessary at the time. relating thereto. plished by the Cuban Families Committee, a Again in 1917, intervention followed on It appears that contrary to what has private organization composed of the rela­ the heels of a disputed election. Declaring been reported to the American people by tives and friends of the prisoners, assisted by that this Government would not recognize the Kennedy administration the Gov­ a citizen committee under Gen. Lucius Clay a regime established by violence, Secretary and with the cooperation of private firms of State Lansing urged Cubans to refrain ernment of the United States did par­ and the American Red Cross. The Secretary from civil war~ Marines were landed to pre­ ticipate financially in the Cuban prisoner stated that Mr. James B. Donovan was the serve order, and the rebellious faction was exchange. principal negotiator for the committee and defeated. This was the last direct military This becomes apparent as a result of that the main role of the U.S. Government intervention by the United States in Cuba. the reply I received from Joseph Camp­ was to insure that the private effort was not However, we did subsequently send a fi­ bell, Comptroller General, dated March 1. hampered by procedural problems within the nancial adviser to Cuba, Gen. Enoch Crowder. The Comptroller General's answer, Government and to expedite and coordinate In 1922 our Government asked Cuba to recog­ though 5 months late in coming, did re­ the governme;ntal and private aspects of the nize our right, under the Platt amendment, effort. In answer to the specific questions to investigate certain departments of the veal "the U.S. Government provided 5 which you raised there is presented below Cuban Government. Despite Cuban pro­ million pounds of nonfat dried milk the information which the Secretary of State tests, Crowder proceeded to carry on such an solids." furnished us and our comments thereon: investigation. Under Crowder's direction This is in complete contradiction to "1. The U.S. Government has provided 5 the budget was cut, crooked contracts un­ the President's statement that no U.S. million pounds of nonfat dried milk solids covered, and the formation of an "honest goods were included and that the Ameri­ from Commodity Credit Corporation stocks cabinet" imposed. This latter step was the can taxpayer was not involved in the through the American Red Cross upon the U.S. requirement for consent to a loan to prisoner exchange. latter's request under general statutory au­ Cuba by a New York bank. Crowder left thority (7 U.S.C. 1431) providing for dona­ Cuba briefly, returned in 1923 as American The Comptroller General reported to tions to needy peoples, in order to fill any Ambassador, and this advisory form of in­ me that administrative costs of Govern­ gap that may exist in private donations of t ervention was over. ment services, such as the use of tele­ goods for the exchange. Representatives of phones, transportation and salary and the American Red Cross and the Cuban Red ABROGATION OF THE AMENDMENT Cross will sup·ervise distribution of· the milk During the late 1920's and early 1930's overtime expenses were also incurred. Not even the Comptroller General in Cuba to insure that it will reach children the regime of President Gerardo Machado and other needy persons. The R~d C:i;oss grew steadily more repressive. However, could find any authority for these ex­ has indicated that the Cuban Families_ Com­ President Hoover's administration in this penses; but, and quoting the Comptroller mittee expects to raise funds to reimburse country refrained from intervention. When General: the Department of Agriculture. Further the administration of Franklin D. Roosevelt We do not propose to pursue the matter supplies of dried milk may be requested by assumed office, Sumner Welles was sent as further. the American Red Cross if it appears that Ambassador to Cuba, as Dr. Julius Pratt the baby food obtainable from private con­ wrote, "ostensibly to mediate between Ma­ Campbell wrote me that further sup­ tributors is insufficient to complete the ship­ chado and his enemies; really, there is reason plies of dried milk may be requested by ment of goods for the Cuban prisoners' ex­ to think, to secure Machado's resignation." a the American Red Cross if it appears change and the Department of Agriculture is In any event, Machado did resign and flee the that supplies from private contributors prepared to make additional quantities country on August 12, 1933. Several short­ available on such request. The terms of that lived regimes followed. The United States are insufficient. I am hereby protesting any further Department's action were described in its eventually recognized the regime of Col. Car­ release of January 8, 1963. los Mendieta, and in May 1934, negotiated use of taxpayer's goods for indemnity "Other than the commitment of dried a treaty with his government by which the to Castro and am calling for a full dis­ milk from the surplus stocks of the Depart­ Platt amendment was abrogated, with the closure of this Government's participa­ ment of Agriculture, no U.S. Government United States reserving only the right to tion in the ransom deal. funds were used in the prisoner exchange use the naval base at Guantanamo Bay until Most of my other questions were also project save for minor administrative costs that right might be set aside by mutual answered by the Secretary of State with­ of Government services, such as use of tele­ consent. The treaty was signed on May 29, phones, some transportation, and some salary 1934, and approved by the Senate 2 days later in the context of this letter from the Comptroller General, and those replies and overtime expense. The Government without a dissenting vote. According to one hopes to recover the cost of these services. source, it represented a growing sensitivity are most revealing. I am, therefore, re­ No unvouchered funds have been used at any to Latin American opinion, and an attempt printing the letter in full for the infor­ time. No tax rulings were issued to con­ on our part to convince Latin America of mation of the Members of the House. tributing companies which were not clearly our good and anti-imperialist intentions.' MARCH l , 1963. authorized or required by law or governing Hon. WILLIAM c. CRAMER, court decisions." House of Representatives. Section 1431 of title 7, United States U.S. TAXPAYERS DOLLARS USED IN DEAR MR. CRAMER: This is in response to Code, provides, in part, that: CUBAN PRISONER EXCHANGE your telegram of October 9, 1962, question­ "In order to prevent the waste of com­ MARCH 7, 1963 ing U.S. participation in the recent negotia­ modities whether in private stocks or ac­ tions for the release of Cuban prisoners from quired through price-support operations by Mr. FINDLEY. Mr. Speaker, I ask a policy standpoint as well as from the the Commodity Credit Corporation before unanimous consent that the gentleman standpoint of legal authority for using Gov­ they can be disposed of in normal domestic from Florida [Mr. CRAMER] may extend ernment funds for such purpose. You raised channels without impairment of the price­ his remarks at this point in the. RECORD the following specific questions: support program or sold abroad at competi­ and include extraneous matter. 1. How much in U.S.-owned foodstuffs tive world prices, the Commodity Credit Cor­ The SPEAKER pro tempare. Is there and other things of value are being made poration is authorized, on such terms and objection to the request of the gentleman available for this purpose? under such regulations as the Secretary of 2. What authority exists for anyone to Agriculture may deem in the public inter­ from Illinois? negotiate for payment in U.S.-owned food­ est: • • • ( 4) to donate any such food com­ There was no objection. stuffs to Castro and the Communists? modities in excess of anticipated disposition 3. What right does Donovan or any other under clauses (1), (2), and (3) above to non­ ll Bemis, Samuel Flagg, "A Diplomatic His­ private citizen have to negotiate with Castro profit voluntary agencies registered with the tory of the United States." 4th edition. New and an enemy government? Committee on Voluntary Foreign Aid of the York. Henry Holt & Co., 1955, p. 506. 4. If Donovan is negotiating on behalf of Foreign Operations Administration or other 3 Pratt, Julius W., "A History of U.S. For­ private citizens only, what right does he have appropriate department or agency of the eign Policy." New York. Prentice-Hall. under the Logan Act, 18 U.S.C. 953, to do Federal Government and intergovernmental 1956, p . 613. so--let alone a violation of recent policy organizations for use in the assistance of ' Thomas, Ann Van Wynen and A. J. statement of the Congress? Doesn't his needy persons. outside the United Thomas, Jr. "Nonintervention." Dallas. visit to Cuba require Government approval? States • • •." Southern Methodist University Press. 1956, 5. If Donovan is negotia~ing in a mE_!.nner There does not appear to be any question p.28. that obligates the U.S. Government to make but that the donatiCzechoslovakia, Bul­ time did the Department of State raise a result of infestation if the timber is not garia, Rumania, East Germany, Russia, any objections. salvaged; and and other non-Russian nations of the Since the language of Senate Joint Whereas the downed timber constitutes a U.S.S.R. It took depositions from dozens Resolution 111 and of House Resolution severe fire hazard; and 1963 CONGRESSIONAL RECORD - HOUSE .3773

Whereas much of this salvageable timber is Mr.SIKES. pital and related services to aged . ben­ located in an economically depressed area Mr. PUCINSKI. eficiaries; to the Committee on Ways and of this State; and

EXTENSIONS OF REMARKS

Congressional Staffs all Cabinet and sub-Cabinet posts through ance must be obtained if only as a tempo­ civil service. The executive department, as rary expedient. well as the Legislative Reference Service set It is rather puzzling to me that the Wash­ EXTENSION OF REMARKS up by Congress, provide the great majority of ington Post concerns itself with partisan o ... factual material for congressional use, appointments on the Hill which have some. outside of committee investigations. The Justification, and yet ignores the revelation HON. FRED SCHWENGEL Legislative Counsel is available for aid in bill of last week that henceforth patronage con­ OF IOWA drafting. siderations will intrude into the summer IN THE HOUSE OF REPRESENTATIVES What is neede~. particularly if you con­ Job picture for high school and college stu­ cede the Congress its proper role as the dents in the face of an existing nonpartisan Thursday, March 7, 1963 originator of laws and policy, is staff mem­ personnel system-the civil service. Mr. SCHWENGEL. Mr. Speaker, this bers with the knowledge and experience to WILLIAM B. WroNALL, year the issue of minority staffing has interpret the facts into legislative proposals Representative, Seventh District, according to the policy position of the polit­ New Jersey. received more attention and discussion ical party in control. At the same time, if than ever before. Republican members there is to be a responsible opposition, it are becoming increasingly aware of the must have access to staff personnel attuned injustice of the present circumstances. to its political philosophy as well. The Anniversary of the Birth of Thomas On February 23 the Washington Post No doubt there are exceptions. Clerical published an editorial critical of Re­ · and secretarial staff people, for instance, al­ Masaryk publican efforts. Congressman WILLIAM though even here the designation of such personnel as minority or majority staff, how­ B. WIDNALL has done much to clarify ever chosen, creates an invaluable priority EXTENSION OF REMARKS some of the distortions of the Post edi­ system in terms of their time and avail­ OF torial. Under unanimous consent I in­ ability. An additional exception would be clude this letter in the RECORD: staffs of a subcommittee such as the House HON. NEIL STAEBLER CONGRESSIONAL STAFFS Foreign Operations and Government Infor­ OF MICHIGAN mation Subcommittee. In certain instances On February 23 you published an editorial IN THE HOUSE OF REPRESENTATIVES chastising the Republican Party for asking special outside counsel brought in for in­ for additional minority employees on congres­ vestigatory purposes would be appropriate. Thursday, March 7, 1963 The second point overlooked is the simple sional committee staffs. It appears to me Mr. STAEBLER. Mr. Speaker, al­ this editorial overlooks two important points. matter of the present situation. Even as­ First, there is an assumption implicit suming a totally nonpartisan staff opera­ though Czechoslovakia today is under within the editorial that all staff positions tion was appropriate, what precisely is the Communist rule and has been for 15 can be equated somehow with nonpartisan minority party to do while waiting for a years, there are men in that country's appointment. There is no more reason to benevolent majority not only to increase the past who we can hold up as ideals for introduce this assumption into the area of capacity of the opposition but decrease their those of us today to attempt to model committee staffing than there is to appoint own partisan advantage as well? Some bal- ourselves after.