August 7, 19.78 EXTENSIONS OF REMARKS 24773 "(10) PRINCIPAL RESIDENCE.-The determi­ to the aggregate of such expenditures made (c) INSPECTION.-To the extent not pres­ nation of whether or not a dwelllng unit is by all of such individuals during such calen­ ently authorized and utilized by any agency a taxpayer's principal residence shall be made dar year. of the United States in the assessment and under principles similar to those applicable "(2) TENANT-STOCKHOLDER IN COOPERATIVE collection of income taxes, no procedure or to section 1034, except that- HOUSING CORPORATION.-In the case Of an in­ practice which utilizes onsite inspection of "(A) no ownership requirement shall be dividual who holds stock as a tenant-stock­ the residence of an individual shall be imposed, and holder (as defined in section 216) in a coop­ employed to determine if that individual is "(B) the period for which a dwelllng is erative housing corporation (as defined in entitled to a credit under section 44C of the treated as the principal resi~ence of the tax­ suc:1 section), such individual shall be Internal Revenue Code of 1954, as added by payer shall include the 30-day period ending treated as having made his tenant-stock­ subsection (a), unless such procedure or on the first day on which it would (but for holder's proportionate share (as defined in practice provides that such inspection shall this subparagraph) be treated as his prin­ section 216(b) (3)) of any expenditures of take place only with the written consent of cipal residence. such corporation. such individual. " ( 1) ENVIRONMENTAL RESTRICTIONS ON CER­ " ( 3) CONDOMINIUMS.- (d) TECHNICAL AND CLERICAL AMEND­ TAIN WOOD AND PEAT BURNING ITEMS.-NO "(A) IN GENERAL.-In the case Of an in­ MENTS.- credit shall be allowed under subsection (a) dividual who is a member of a condominium ( 1) The table of sections for subpart A of for expenditures with respect to . any item management association with respect to a part IV of subchapter A of chapter 1 is described in paragraph (5) (A) (xii) which condominium which he owns, such individ­ amended by inserting after the i tern relating are to be installed in any metropolitan or ual shall be treated as having made his pro­ to section 44B the following new item: other area after the date on which- portionate share of any expenditures of such "Sec. 44C. Residential energy credit.". " (A) the Administrator of the Environ­ association. (2) Subsection (c) of section 56 (defining mental Protection Agency certifies to the "(B) CONDOMINIUM MANAGEMENT ASSOCIA­ regular tax deduction) is amended by strik­ Secretary that the emissions from such items TION.-For purposes of this paragraph, the ing out "credits allowable under-" and all would cause air quality in such area to be term 'condominium management association' that follows and inserting in lieu thereof in violation of any Federal law, or means an organization which meets the re­ "credits allowable under subpart A of part "(B) the Secretary of Agriculture certifies quirements of paragraph ( 1) of section 528 IV other than under sections 31, 39, 43, 44C, to the Secretary that additional consump­ (c) (other than subparagraph (E) thereof) 44E, 44F, 44G, 44H, 44I, and 44J.". tion of wood in connection with such items with respect to a condominium project sub­ (3) Subsection (a) of section 1016 (relat­ would endanger forests in that area. stantially all of the units of which are used ing to adjustments to basis) is amended by "(d) SPECIAL RULES.-For purposes of this as residences. inserting after paragraph (20) the following section- new paragraph: "(e) BASIS ADJUSTMENTS.-For purposes of "(21) to the extent provided in section " ( 1) DOLLAR AMOUNTS IN CASE OF JOINT OC­ this subtitle, if a credit is allowed under this CUPANCY .-In the case of any dwelling unit section for any expenditure with respect to 44C(e), in the case of property with respect which is jointly occupied and used during any property, the increase in the basis of to which a credit has been allowed under any calendar year as a principal residence by such property which would (but for this sub­ section 44C; ". 2 or more individuals- (4) Subsection (b) of section -6096 (relat­ section) result from such expenditure shall ing to designation of income tax payment to " (A) the amount of the credit allowable be reduced by the amount of the credit so allowed. Presidential Election Campaign Fund) is under subsection (a) by reason of energy amended by striking out "and 44B" and in­ conservation expenditures or by reason of "(f) TERMINATION.-This section shall not serting in lieu thereof "44B, and· 44C". renewable energy source expenditures (as apply to expenditures made after Decem­ (e) EFFECTIVE DATE.-The amendments the case may be) made during such calendar ber 31, 1985.". made by this section shall apply to taxable year by any of such individuals with respect (b) CARRYOVER OF UNUSED CREDIT.-If the years ending on or after April 20, 1977. to such dwelling unit shall be determined by amount of the credit determined under this treating all of such individuals as one tax­ section for the taxable year exceeds the lia­ H.R. 13635 payer whose taxable year is such calendar bility for the taxpayer for the tax under this By Mr. HOWARD: year; and chapter for the taxable year, the excess shall -Page 42, beginning on line 3, strike out "(B) each of such individuals shall be al­ be carried over to each of the two taxable "That no funds" and all that follows through lowed a credit under subsection (a) for the years succeeding that taxable year. The "dislocations" on line 6, and insert in lieu taxable year in which such calendar year entire amount of the unused credit for an thereof the following: ends (subject to the limitation of paragraph unused credit year shall be carried to the That no more than 10 percent of the funds (5) of subsection (b)) in an amount which earliest of the two taxable years to which appropriated in this Act and to be used for bears the same ratio to the amount deter­ it may be carried, and then to the succeed­ payments under contracts shall be used for mined under subparagraph (A) as the ing taxable year to the extent that it may payments under contracts hereafter made amount of such expenditures made by such not be added for a prior taxable year to for the purpose of relieving economic dis­ individual during such calendar year bears which it might be carried. locations.

EXTENSIONS OF REMARKS PLACING A COST ON THE USE OF better inform my colleagues of these is­ license fees in the various radio services tak­ THE SPECTRUM sues, I am pleased to insert in the RECORD ing into account the scarcity value of the the memorandum prepared by the sub­ license as well as the administrative costs of licensing. It is intended that the committee staff on this proposal. economic information developed by the CRC HON. HENRY A. WAXMAN The memorandum follows: in setting license fees will be used by the OF CALIFORNIA BROADCAST LICENSE FEES NTA when reallocating spectrum. One impor­ IN THE HOUSE OF REPRESENTATIVES This memo reviews the spectrum manage­ tant aspect of the allocation task is to see that spectrum resources are used efficient­ Monday, August 7, 1978 ment mechanism set forth in H.R. 13015, it discusses the meaning of "scarcity" and ly. Careful measurement of scarcity and the • Mr. WAXMAN. Mr. Speaker, one of looks at indicators of scarcity in the various economic assessment of the effects of scarci­ the most critical features of H.R. 13015 broadcast services. Finally it sets forth and ty should aid in the efficient allocation of is the proposed spectrum use fee. After discusses fee schedules for the four major the spectrum resource. the bill was introduced, the staff devel­ broadcast services-AM radio, FM radio, In addition to aiding the NTA in spectrum oped a proposed fee schedule which at­ VHF television, and UHF television. allocation the resource scarcity-based li­ SPECTRUM MANAGEMENT IN H.R. 13015 cense fees system should also lead in im­ tempted to quantify in some tangible proved efficiency in the use of the spectrum measure the scarcity value of the spec­ H.R. 13015 splits the spectrum manage­ in any one service. The license fee will en­ trum. The results of the formula which ment task for the civil (non-federal govern­ courage spectrum conservation and the use was developed, however, also underscore ment) portion of the spectrum into two of more efficient technologies. parts. Spectrum allocation is to be done by the difficulty in translating this novel the National Telecommunications Agency SCARCITY VALUE concept into an equitable schedule. This (NTA) while licensing and associated fre­ H.R. 13015 uses the phrase "scarcity value will be the subject of extensive debate in quency assignment tasks are to be done by of the spectrum being assigned" to describe the Communications Subcommittee, and the Communications Regulatory Commis­ one element which should go into the cal­ eventually by the full House. In order to sion ( CRC) . The CRC is also directed to set culation of tJhe license fee. The scarcity

Statements or insertions which are not spoken by the Member on the floor will be identified by the use of a "bullet" symbol, i.e., e 24774 EXTENSIONS OF REMARKS August 7, 1978 value or marginal value of a resource is the radio except for the major class of stations the number of signals in the market, would value of the last (or marginal or least scarce) owned and operated by the networks. behave properly. It would get smaller as more unit of the resource. The concept of marginal Class of broadcaster-Total estimated in­ and more stations become available in the or scarcity value is a common one-much dustrywide 1976 return above 25 percent market. But, of course, market size should also be discussed in economic texts-and does not [In millions need further explanation here. The lan­ 1 considered. As a market gets larger it has the guage of H.R. 13015 permits the CRC to set Network owned and operated capacity to support stations. So the original license fees for all radio services taking into VHF-TV ------$146. 1 form should be changed perhaps by multi­ account the scarctty value of those licenses. Other VHF-TV------530. 2 plying it by NHH, the number of households UHF-TV ------23.3 in a market, to yield a fee proportional to: INDICATORS OF SCARCITY VALUE Network owned and operated radio___ 12. 5 Since there is no way today to assess di­ Other AM and AM/FM radio ______NHH/NSIG rectly the marginal value of units of the Other FM radio ______Notice that this fee, however, takes on spectrum resource, indirect methods must some value in every market even in the be used to estimate this value. In a recent DISCUSSION FEE SCHEDULES smallest markets. This does not seem quite paper, Robert w. Crandall of the Brookings The staff has developed the following fee right since there are fixed costs associated Institution estimated that in 1973 "television schedules for VHF television, UHF television, with being in business in any television mar­ broadcasting earned a healthy 29 percent AM radio and FM radio. It should be recog­ ket. The formula should be adjusted to take return on capital above and beyond the cost nized that these fee schedules are tentative. into account the fact that in smaller mar­ of attracting it." 1 (Crandall's calculation as­ They were developed using only public infor­ kets there really is no scarcity. Subtracting sumes an industry cost of capital of 25 per­ mation available in FCC reports or industry a constant term from the previous term al­ cent.) publications. Nevertheless, they do represent lows for such small markets and yields the Following Crandall's method, we can cal­ a first step towards refining a fee schedule. formula Fee=Maximum of (NHH/NSIG­ culate the approximate return on invest­ They may give results which do not fit the Constant) or zero. Even this might be im­ ment in various broadcasting services. All 1978 economy since they were developed proved in many ways. financial information is taken from two FCC using 1976 data, the most recent data avail­ The formula given before for a VHF li­ documents, "TV Broadcast Financial Datar--- able. Given the changes in the economy, the cense fee incorporates these ideas and might 1976" dated August 29, 1977 and "AM and 1976 data probably lead to underestimation be a good basis for future discussion. Recall FM Broadcast Financial Data, 1976" dated of the scarcity value. They may not treat it is: Fee=$25.3X (NHH/NSIG) minus December 12, 1977. These documents are re­ some special markets correctly. But, on an ( $1.5 million+$1.33 X NHH) or zero--which­ ferred to below as TV-Data and Radio-Data. industrywide basis, and for the vast majority ever is larger. From TV -Data, Tables 2 and 13, and Radio­ of stations they should yield fees which Look at what that formula implies. New Data, Tables 3, 8, 13 and 14 we can derive would meet the standards in H.R. 13015. York City has about 4.5 million households, the following table. 6 commercial VHF stations and 3 commer­ VHF TELEVISION cial UHF stations. The formula above would [All figures in millions 1 Fee=$25.3X (NHH/NSIG)- ($1.5 million+ yield a scarcity value around $7.5 million for $1.33 X NHH) or zero, whichever is larger. a New York City VHF station. (The 1978 Class Income Tangible NHH is the number of prime time households TV Factbook states that New York has of Before Property in the market and NSIG is the number of 4,525,000 Arbitron prime TV households.) Broadcasters Taxes Less commercial VHF signals in the market plus But the VFH fee would be zero in a city with Depre­ one-half the number of commercial UHF ciation three commercial VHF stations and 185,000 signals in the market. or fewer television households.~ UHF TELEVISION The table below shows this formula evalu­ Network Owned and Op- The UHF fee for a market is one-half the ated in one hundred of the largest televi­ erated V1i.F-TV ------­ $159.0 $41.9 VHF fee for the same market minus 1.8 mil­ sion markets. These figures show the general Other VHF-TV------730.7 642.7 lion dollars or zero, whichever is greater. form of scarcity value in television. The UHF-TV ------­ 64.8 133.4 scarcity component of the UHF fee would be Network Owned and Op- AM RADIO greater than zero in only four markets as erated AM Radio ______15.3 8.8 The AM radio license fees developed here shown below. Other AM or AM/FM Radio_ 147.2 540.7 incorporate geographic measure of scarcity The AM fees would total approximately Other FM Radio ______21.2 113.0 only indirectly since the more powerful $5.4 mlllion. Similarly the FM fees would classes of AM stations tend to be located total about $4.8 mlllion. See tlhe table below. in major markets. The AM fees set forth Using Crandall's technique for estimating below are a function of the class of station. Aggregate fees by type of broadcaster total capital,2 we obtain the following table: [In millions] AM fee schedule Industry total Class of broadcaster-Estmated industrywide Class stations Annual fee 1976 pretax return on investment Type annual fees VHF-TV------$246.9 [In percent 1 I-A------$40,800 I-B ------10,700 UHF-TV ------9. 8 Network owned and operated VHF-TV ___ 304 II ------10,700 AM-Radio ------5.4 Other VHF-TV------91 II-Day ------700 FM-Radio ------4.8 UHF-TV ------39 III-Full ______------______350 Network owned and operated AM radio __ 139 III-Day ------250 Total ------266.9 Other AM and AM/FM radio______22 IV ------211 Other FM radio______15 Another approach to setting license fees FM RADIO would be to look at units of the spectrum Clearly, scarcity value is greatest in VHF This formula is simUar to that in AM resource underlying the license, set a scarc­ television and the powerful major market AM since it too only uses the class of station in ity value on those units, and then transfer stations. The pre-tax earnings in AM radio determining the fee. that scarcity value to the license fee. While are quite low. And earnings in FM are so low such an approach is flawed as a method of that it's hard to understand how the industry Class station Annual fee economic analysis, nevertheless it is sugges­ survives. A ------$400 tive. The table below shows the relationship Again, taking Crandall's assumption of a B or C------2, 500 between the underlying units of the spec­ 25 percent cost of capital in broadcasting DISCUSSION OF THE FEE SCHEDULES trum (Hertz) and the fees. we can calculate the amount by which in­ Band width Fee dustry earning-s exceed the cost of capital. With the information publicly available today it is hard to calculate scarcity values Service Used (MHz) ($/Hz) The resulting figures bear out our common perfectly in each market. Nevertheless, there AM Radio______1.07 5.05 sense expectations. The economic signs of is enough information available to do a good VHF Television______84. 00 2.94 scarcity are most pronounced in VHF tele­ FM Radio ______20.00 . 24 3 job. Public discussion, the upcoming hear­ vision and non-existent in all classes of ings, and changes in FCC reporting stand­ lJlHF Television•------330.00 . 03 All Radio ______21.07 .48 ards should improve the calculation of the All Television ______414.07 1 Rorert W. Cran1all. "Regulation of Tele­ exact scarcity value of television licensees. . 62 vision Broadcasting: How Costly Is the Pub­ Using only well defined, publicly available *Channel 14-36. 38-69. lic Interest?", Regulation, Jan./Feb. 1978, pp. information one can develop a formula Notice the pattern of these ratios. The 31-39. which will reflect the scarcity value of a ratio is higher for the older services. It is 2 Total Capital = Tangible Capital + Other license. For the purpose of exposition we will highest in AM radio. It is roughly compa­ Capital and Other Capital is estimated to use two well defined measures-the number rable in television and radio.e equal one-fifth Total Caoital. of households in a market and the number of 3 This is not to say that tbese stations have commercial television signals in a market. 'Clearly, this approach, although based no value but rather that the marginal value The more stations in a market the less upon industrvwide figures on re+.um on in­ of the spectrum used in that service ap­ severe the scarcity. Thus a fee proportional vestment, is in no way equivalent to rate of proaches zero. to ( 1/NSIG), where NSIG is a measure of return regulation. August 7, 19'78 EXTENSIONS OF REMARKS 24775 NEXT TIME STAMP IT "YES" restrain runaway inflation. All workers hurt The fee schedule, offered up two weeks by rising prices can hope thoughtful postal ago as a way to implement the Communi­ workers will say "yes" to tha.t.e cations Act rewrite's provision requiring HON. EDWARD J. DERWINSKI broadcasters to pay annual fees for their OF ILLINOIS occupancy of electromagnetic spectrum space, specified dollar amounts for every IN THE HOUSE OF REPRESENTATIVES PAYING FOR THE· USE OF THE VHF and UHF station that would be affected Monday, August 7, 1978 SPECTRUM by the proposal. But many broadcasters choked on the first entry, for New York, in e Mr. DERWINSKI. Mr. Speaker, the which every VHF station in the market-­ Postal employees are now in the process HON. HENRY A. WAXMAN whether network-owned or indeoendent­ of voting to ratify a contract that was would pay an annual fee of $7.7 m1111on, and negotiated by union leaders with the OF CALIFORNIA every UHF would pay $2 m1llion. management of the Postal Service. It IN THE HOUSE OF REPRESENTATIVES With six VHF's and three UHF's in the will be in everyone's interest and espe­ Monday, August 7, 1978 market, the total fee for New York's TV cially that of the Postal employees if stations would come to $52,695,626 under the • Mr. WAXMAN. Mr. Speaker, Broad­ staff's formula. According to BROADCASTING's they ratify the contract. casting magazine has carefully reported The Chicago Sun-Times hit the nail calculations, that reoresents 82.4 percent of and analyzed a proposed fee schedule for the combined pretax profits reported by on the head with regard to this subject the use of the spectrum by the Nation's those stations in 1976. in a brief editorial appearing in the television and radio licensees. In order Of all the markets in the country, New August 3 edition. The editorial follows: to provide further background on this York would have the biggest bite taken from NEXT TIME STAMP IT "YES" very controversial issue for my col­ its earnings by the proposed fee. But the fig­ It doesn't take a.n expert to know some leagues, I am pleased to insert these arti­ ures in other markets are startling nonethe­ things about group psychology. For e~ample: cles in the RECORD: less. The fee would take 64 percent of the Get 8,000 workers together. Stir in emotion. 1976 earnings of the TV stations in Wash­ Ask if they want a. contract that offers less "BACK TO THE DRAWING BOARD" ON LICENSE FEEs ington. In Flint-Sa.gina.w-Ba.y City, Mich., money than they would like. it would take 62.8 percent; in Providence, Reuresenta.t.ive Lionel Van Deerlin (D­ The group says "No!" What else? R.I., 55.8 percent; in Cleveland and Pitts­ That happened at the National Assn. of Ca.Uf.) last week disowned some of the num­ Letter Carriers' convention here Monday. The bers in the draft license fee schedule his burgh, 54.7 percent; in Albanv-Schenecta.dy, NALC president was booed. No surprise. House Communications Subcommittee staff N.Y., 51.1 percent, and in Philadephia, 50.1 Such predictable responses aren't needed had releaser\ onlv the week before (BR"AO­ percent. The schedule of fees is eye-catching in the U.S. Postal Service contract fight. CASTING, July 24). But he Said the model for its disparities, too; San Francisco would Needed is a.n OK to a. fair ra.ise-19.5 per cent formula would be left standing for discus­ pay only 12.9 percent, by contrast, and over three years-by a. key union to help sion purposes. Rochester, N.Y., only 1.5 percent.

HOW BIG THE TV BITE IN EACH MARKET

1976 pretax Percent of 1976 pretax Percent of profits Fee profits profits Fee profits

$63, 981, 000 $52, 695, 626 82.4 15, 417, 000 1, 852,080 34.2 3.1. ChicagoNew York.------______------_ 46.50. Dayton,Birmingham, Ohio.------Ala ______------_ 4. Philadelphia ______49, 770,000 17, 141, 000 34.4 18, 805, 000 1, 746, 600 19.8 36,962,000 18, 522, 220 50. 1 57. Toledo, Ohio. ______------5, 034, 000 1, 729,002 34. 4 2. Los Angeles ______63,489, 000 11, 953, 045 18. 8 4~. Charleston-Huntington, W. Va ______14, 282, 000 I, 701, 210 39.7 9. Cleveland •• ______• ______52. Flint-Saginaw-Bay City, Mich ______6. Boston. ______21,957,000 12,005,335 54.7 2, 584, 000 1, 623, 540 62.8 28, 134, 000 10, 424, 057 37. 1 38. New Orleans •• ______6, 729,000 1, 622, 718 24.1 8. Washington. _____ ------______14,665,000 9, 383, 325 64.0 37. Oklahoma City-Enid ______6, 238,000 1, 615, 970 25.9 11. Pittsburgh. ______16,801,000 9, 196,484 54.7 24. Sacramento-Stockton, Calif.. ______9, 903,000 1, 494,000 15.1 7. Detroit. ______----- ______27, 755, 000 8, 505, 720 30. 6 33. Charlotte, N.C·------5, 730,000 1, 460, 894 25.5 10. Dallas-Fort Worth ______27,376,000 6, 876, 666 25. 1 51. Syracuse-Elmira, N.Y ______4, 445,000 1, 275, 010 28.7 13. Minneapolis-St. Pau'------14,066,000 5, 708,280 40.6 53. Salt Lake City-Ogden, Provo ______5, 470, 000 1, 253,700 22.9 15. St. Louis ______------______13,664, 000 4, 833, 568 35.4 41. Grand Rapids-Kalamazoo-Battle Creek, Mich ••••• 6, 590,000 1, 233, 586 18.7 20. Baltimore ______------______14, 245, 000 4, 648, 684 32.6 39. Louisville, Ky ------______3, 635,000 1, 162, 554 32.0 5. San Francisco-Oakland. ______34,670,000 4, 474,714 12.9 64. Omaha. __ ------______------__ ------· 3, 912,000 891, 430 22.8 17. Tampa-St. Petersburg, Ffa ______13, 304, 000 4, 312, 466 32.4 54. Greensboro-Winston Salem-High Point, N.C •• ___ _ 4, 627,000 784, 880 17.0 12. Houston-Galveston •• ______28,359,000 4, 101, 390 14.5 70. Springfield-Decatur-Champaign, IlL .. ______1, 157, 000 718,720 22.8 18. Seattle· Tacoma ______17,208,000 4, 049,940 23. 5 55. little Rock, Ark ______2, 941, 000 657, 020 22. 3 13, 159, 000 3, 356,898 25.5 60. Knoxville, Tenn ______3, 829,000 656,640 17.1 9, 343,000 3, 342,080 35.8 51. Raleigh-Durham, N.C ______4, 171,000 621, 480 14.9 ~~:21. ~~rus~1~~~Y6~g---~===Milwaukee ______======------======8, 889,000 3, 321, 506 37.4 40. Orlando-Daytona Beach, Fla. ______6, 348, 000 621,480 7. 7 27. Cincinnati ______9, 046,000 3, 197,636 35.3 59. Shreveport, La.-Texarkana, Tex ______2, 709,000 486, 540 18.0 30. Providence, R.I.-New Bedford, Mass ______47. San Antonio, Tex ______14. Miami ______15,608, 000 3, 128, 980 55. 8 7, 381,000 437, 104 5. 9 17,999,000 2, 996,760 16. 6 56. Wichita-Hutchinson. Kans .•• ______3, 676,000 422,610 11.5 62. Des Moines-Ames, Iowa ______.. ______35.16. Atlanta.Memphis ______•• _------_ 17, 502, 000 1, 445, 760 8. 3 3, 758,000 358,680 9. 5 19, 284,000 2, 607,920 13. 5 64. Jacksonville, Fla ______5, 795,000 269, 880 4. 7 22. Hartford-New Haven, Conn ______12, 130, 000 2, 485,672 20.5 50. Harrisburg-York-Lancaster-Lebanon, Pa ••• ______3, 402,000 268, 730 7. 9 28. Buffalo, N.Y ______11, 318, 000 2, 472, 112 21.8 67. Green Bay, Wis ______11, 658, 000 230, 820 13.9 19. Indianapolis-Bloomington ______15,940,000 2, 378, 418 14.9 57. Tulsa, Okla ______5, 085,000 209, 510 4. 1 31. Nashville •• ------__ 4, 450,000 2, 153, 588 48.4 46. Norfolk-Portsmouth-Newport News-Hampton, Va. 4, 792,000 171,668 3. 6 23. Denver ______------______18, 999, 000 2, 091,900 11. 0 58. Richmond-Petersburg, Va ______3, 421,000 124, 270 3.6 42. Albany-Schenectady-Troy, N.Y ______13, 788, 900 1, 935, 620 51.0 66. Rochester, N.Y _••• ------5, 594,000 81,650 1.5 25. Portland, Oreg ______10,059, 000 1, 852, 140 18.4

The fee would create a. seemingly impos­ the problem would be "to have some kind reactions. But he defended it all the same as sible situation for some independent VHF of restrainer on it," a. celling perhaps, be­ a. good try. "We've never been off the draw­ stations. In New York, where there are three yond which fees could not rise even if the for­ ing board," he said. "I never assumed that such stations, the fee would charge them mula indicated they should. How that might this is what was going to appear." He said more than they earn, according to Leavitt be accomplished, he said, he has no idea.. he hopes other suggestions of a. fee schedule Pope, president of WPIX(TV). Mr. Pope One of Mr. Van Deerlin's reasons for order­ will be submitted from outside the subcom­ wrote last week that in their best year yet ing the drafting of a. model fee schedule was mittee in time for the hearings on broad­ reported by the FCC, 1976, the three sta­ to give flesh to a. vague discussion that has casting that are scheduled for the week of tions' earnings combined, $16.5 mlllion, fell given broadcasters the willies If they could Sept. 11. And he indicated he is not in a far short of their proposed license fee, $23.2 see actual numbers, he reasoned, they would hurry to put his staff back to work on it. "If million. be persuaded of the reasonableness of the people are just waiting to see the next one," Is that what Mr. Van Deerlin intended for license fee concept. He didn't succeed. he said, "maybe they're not going to be the license fee? "Well, obviously not," the One broadcaster's reaction last week was happy with it either." Communications Subcommittee chairman typical of many: Mr. Van Deerlin remained charitable to­ said last week. Charging a. station more than "Those guys have got to be out of their ward his staff, which, he said did exactly a.s it makes, or over 80% of income, a.s in the minds to release something like that," he he had asked. It developed a. formula to place case of the combined stations in New York, said. Another called it "outrageous," and a a value on the use of the electromagnetic "is hardly the American way," he said. third pronounced it "totally cockeyed." spectrum. The formula ( [$25.30 times the So "it's back to the drawing board," he Mr. Van Deerlin had backed away from the number of households in a. television market said. He suggested that one way to clear up formula even before confronted with those divided by the sum of VHF signals and half 24776 EXTENSIONS OF REMARKS August 7, 1978 the UHF signals] minus $1.5 million plus and independents. A resource fee has to treat of the spectrum besides broadcasters, but the ($1.33 times households]) means nothing to every commercial VHF station in the market subcommittee chairman said last week that the nonstatistician, but its design is to quan­ the same, regardless of how successful they he expects most would come from broad­ tify the "scarcity value" of each portion of are. If income were considered, the fee would casting. the spectrum occupied by television sta­ turn into a gross receipts tax, he said, "and He underscored his previous statement that tions. that's just wrong." the size of the fees is not based on how The subcommittee's staff engineer, Chuck much he wants to spend or on how much Jackson, who developed the formula, ex­ THE PRICE To PAY FOR H.R. 13015 stations make. Rather it is based on a formu­ plained last week how he derived it. He began la designed to estimate how much the spec­ Under a formula worked out by the staff of trum space is worth. with a study of broadcast earnings and deter­ the House Communications Subcommittee, mined that VHF has the highest return of That formula, worked out by the subcom­ VHF television would yield more than 90% mittee's engineer, Chuck Jackson, places pri­ investment in the business. Working with a of the license fees broadcasters would pay formula that assumes that 25% return on mary emphasis on a station's "scarcity" under the Communications Act rewrite. The value. The more stations there are in a mar­ investment is a reasonable reflection of the staff's computer break-out of fees that would risk of doing business in broadcasting, he ket, the less the scarcity-which leads to a apply in 100 of the largest TV markets shows few rather odd bulges in the fee schedule. plotted broadcast earnings in 1976 that fell VHF stations would pay $246.9 million col­ above that mark. The result: While New York VHF stations, as common lectively in fees for their occupancy of elec­ sense would indicate, would pay the highest Network owned and operated VHF's: tromagnetic spectrum space. UHF would pay $146.1 million. fees in the land, those in Los Angeles, the $9.8 million, AM radio $5.4 m1llion and FM nation's second broadcast market, barely Other VHF's: $530.2 million. $4.8 $266.9 m11lion-adding up to m1Uion. make the top 10. A Los Angeles VHF would UHF's: $232 m111ion. A glance at the table of 100 sample markets Network owned and operated radio: 12.5 pay $1.7 million annually, and a UHF there worked out by the staff shows where the big would pay nothing. The reason is that Los million. to money is intended come from. A VHF sta­ Angeles has more stations-seven VHF's and Other AM and AM-FM radio: less than tion in New York would pay $7.7 m111ion an­ 25 percent. nually. In Philadelphia it would pay $5.3 five UHF's, compared to the six VHF's and Other FM less than 25 percent. m1llion, in Chicago $4.1 m11lion, in Cleveland the three UHF's in New York. Those figures, although imprecise, identi­ $3.9 m111ion and in Boston $3.5 million. Every WHERE THEY CAME OUT ON FEES, AND HOW fied the scarcity in economic terms. VHF station in a market would pay the same These are the 100 markets in which tele­ Next he decided that in a formula to eval­ fee, regardless of whether it is network­ vision fees would be paid under the sched­ uate scarcity, two reliable measures would affilated or independent. ule released by the House Communications be the number of households in a market UHF fees aren't comparable to those. A Subcommittee. Not all stations in these mar­ and the number of signals. The more house­ UHF in New York would pay $2.1 m111ion. In kets would pay fees; no TV stations in mar­ holds a station reaches the more valuable Philadelphia the size of the UHF fee drops to kets below these top 100 (computed on the is its license, he said. It becomes less valuable $858,000. UHF's in Chicago and Cleveland basis of Arbitron rankings for prime-time with an increase in the number of competing would pay much smaller fees, and UHF's in households in 1976) would pay fees. signals. So Mr. Jackson divided the number all other markets would pay nothing at all. A VHF station's license fee reflects the of households by the number of signals The schedule for radio bears out rewrite numbers of households and signals in its (VHF plus one-half of UHF) to reach his co-sponsor Lionel Van Deerlin's (D-Calif.) markets-the two primary components in the scarcity measure. The number subtracted in claim that radio's contribution to the fee TV fee formula, a mathematical construc­ the formula is designed to represent the fixed pool would be relatively small. The schedule tion that may be best understood by statis­ costs of doing business. Mr. Jackson said prepared by the staff is broken down by ticians. The formula divides the number of the dollar figures in the formula, $25.30 and classes of stations, ranging from the ClaEs I households in a market by a factor reflect­ clear channel stations which would pay the $1.33, are mathematical coefficients that were ing the number of signals (NSIG, which most to the low-powered class IV stations, equals the total number of VHF's plus half worked in to achieve a. result that approaches which would pay the least. The schedule the distribution and levels of money in the the number of UHF's), multiplies that by looks like this: table above. The resulting fee totals: $25.3 and then subtracts another number Class: [In millions] that is designed to adjust for~ station's fixed $40,800 operating costs. The formul!!o looks like this: VHF ------$246. 9 I-A ------­ I-B ------­ 10,700 Fee equals $25.3 times (households divided UHF ------9. 8 II __ ------10,700 by NGIS) minus ($1.5 mi,UI.on plu!) $)..33 AM ------5.4 II (daytimer)------700 times households). For a UHF.' the fee is FM ------4.8 III __ ------350 one-half that of a VHF in that market, VHF ------246.9 III (daytimer) ------250 minus $1.8 million. · (The radio figures are derived from a differ­ 211 ent formula from the TV's) IV ------Following is the en tire breakdown of VHF Mr. FM, the low-powered Class A stations and UHF fees for the 100 TV markets. Broad­ "It has the right kind of shape," Mr. Jack­ would pay $400; the higher-powered Class cast,ing has added an ADI rank column re­ son said, but he acknowledged that if the B and C stations would pay $2,500. flecting the latest Arbitron Television mar­ formula results in a fee exceeding a. station's The proposed schedule is tentative­ ket rankings. The subcommittee list is earning, then it is too high. thrown out for discussion purposes, Mr. Van in order of total TV fees that would be paid He said in going back to the drawing board, Deerlin says. He expects more proposals would in a given market; readers may determine next time he may try to take into account be offered from outside sources before Sep­ those market totals by multiplying out and some added variables, but he indicated, how­ tember, when the proposal will doubtless fig­ then adding together the VHF and UHF fees. ever, that he does not think a formula should ure heavily in the broadcast portion of the An asterisk ( * ) in certain all-UHF markets be adjusted to refiect differences in earnings rewrite hearing. indicates the VHF fee that would apply between network-owned or affiliated stations More funds would come from other users if such facilities were in those markets.

TOTAL TAB FOR TELEVISION

1976 1976 prime time prime time ADI house- NSIG Per station Per station ADI house- NSIG Per station Per station Present ADI rank and city holds VHF UHF factor VHF fee UHF fee Present ADI rank and city holds VHF UHF factor VHF fee UHF fee

1. New York.------4, 525,000 6 3 7. 5 $7, 746, 083 $2, 073,042 21. Milwaukee ______442,000 3. 5 1, 107, 169 3. Chicago_------1, 925,000 4 4 6. 0 4, 056, 833 228, 417 27. Cincinnati.------435,000 3. 5 1, 065, 879 4. Philadelphia ______1, 588, 000 3 3 4. 5 5, 316, 049 858,024 30. Providence, R.I.- New 2. Los Angeles ______2, 406,000 7 5 9. 5 I, 707, 578 0 Bedford, Mass ______358,000 3 0 3.0 1, 042,993 0 9. Cleveland •• ______923,000 3 1 3. 5 3, 944, 381 172, 191 14. Miami ______603,000 4 2 5. 0 749, 190 0 6. Boston ______1, 159,000 3 3 4. 5 3, 474, 686 0 35. Memphis ______336,000 2 1 2. 5 1, 453, 440 0 8. Washington ______896,000 4 1 4. 5 2, 345, 831 0 16. Atlanta ______552, 000 3 3 4. 5 869, 307 0 11. Pittsburgh ______774,000 3 1 3. 5 3, 065, 494 0 22. Hartford-New Haven, 7. Detroit. ______1, 109,000 4 3 5. 5 2, 126,430 0 Conn ______465,000 3. 5 1, 242,836 0 10. Dallas-Fort Worth ______750, 000 4 1 4. 5 1, 719, 167 ·o 28. Buftalo, N.v ______394,000 3. 5 824,037 0 13. Minneapolis-St. PauL._ 586,000 4 0 4. 0 1, 427,070 0 19. Indianapolis- Blooming- 15. St. Louis ______631,000 4 1 4. 5 1, 208, 392 0 ton .• __ ------488,000 4 4. 5 594,604 20. Baltimore ______517, 000 3 1 3. 5 1, 549, 561 u 31. Nashville ______376,000 3 3. 5 717,863 5. San Francisco-Oakland_ 1, 022, 000 4 5 6. 5 1, 118, 678 0 23. Denver______405,000 4 4.0 522,975 42. Albany-Schenectady- 17. Ta _ _ "Fr::~-t~ ~~~~r_s_b_u:~~ 498,000 3. 5 1, 437,489 Troy, N.Y ------302,000 3 3.0 645,207 0 12. Houston-Galveston _____ 574, 000 4.0 1, 367, 130 25. Portland, Oreg. ______393,000 4 4.0 463,035 0 18. Seattle-Tacoma ______503,000 4.0 1, 012,485 46. Dayton, Ohio ______276,000 2 2. 5 926,040 0 26. Kansas City Mo •••• ••• 444,000 3. 5 1, 118,966 50. Birmingham, Ala. _____ 270,000 2 2. 5 873,300 0 34. Columbus, 6hio ••••••• 368,000 3.0 1, 114, 027 57. Toledo, Ohio ______269,000 2 2. 5 864, 510 0 August 7, 19'78 EXTENSIONS OF REMARKS 24777 TOTAL TAB FOR TELEVISION-Continued

1976 1976 grime time prime time Dl house- NSIG Per station Per station ADI house- NSIG Per station Per station Present ADI rank and city holds VHF UHF factor VHF fee UHF fee Present ADI rank and city holds VHF UHF factor VHF fee UHF fee

44. Charleston-Huntington,W. Va ______82. Chattanooga, Tenn ••••• 165, 000 0 3. 0 291,000 3.0 567,070 0 97. Columbia, S.C______110,000 2 2. 0 Flint-Saginaw-Bay City, 52. Mich. ______69. Davenport, Iowa-Rock 263,000 2. 5 811, 770 0 Island-Moline, IlL __ 192, 000 3 0 38. New Orleans ______102. El Paso ______3. 0 0 0 346,000 3. 5 540,906 0 80,000 6 0 6.0 0 0 37. Oklahoma CitfEnid ___ _ 287, 000 3. 0 538, 657 0 91. Evansville, lnd ______131 , 000 1 2 2. 0 0 0 24. Sacramento- tockton, 89. Fort Wayne , lnd ______141,000 0 4 2. 0 • 96, 120 0 Calif.. ______400, 000 3 2 4. 0 498,000 0 70. Fresno-Hanford-Tulare, 33. Charlotte, N.C ______314,000 2 2 3. 0 730,477 0 158,000 2. 5 51. Syracuse-Elmira, N.Y ••• 271, 000 3 0 3. 0 425,003 0 87. G~~~fvii(e:New-sern_--- 53. Salt Lake City ______270,000 3 0 3. 0 417, 900 0 Wash ington, N.C. _____ 124, 000 3. 0 41. Grand Rapids-Kalama- 37. Greenville-Spartanburg, zoo-BattleMich ______Creek, S.C.-Asheville, N.C .••• 296,000 3 2 4. 0 0 0 298, 000 2 2 3. 0 616, 793 0 Honolulu .• ______0 4 0 4. 0 0 0 39. Lou isville, Ky ______293,000 2 2 3. 0 581,277 0 81. Jackson, Miss ______64. Omaha ______131,000 2 1 2. 5 0 0 253,000 3 0 3. 0 297, 143 0 75. Johnstown-Altoona, Pa •• 176, 000 2 2 3. 0 0 0 54. Greensboro-Winston- 136. Las Vegas-Henderson ___ 76, 000 4 0 4. 0 88. Lexington, Ky ______0 0 Salem-HighN.C______Point, 123, 000 0 3 1. 5 411, 010 0 248, 000 3. 0 261, 627 85. Lincoln-Hast1ngs-Kear- ney, Neb ______70. Springfield-Decatur- 125,000 4 0 4.0 0 0 196, 000 1 2. 0 718, 720 130. Lubbock, Tex . ______87,000 2 1 2. 5 0 0 55. u~~~aWcfctig~,r~~~~~~==== 242,000 3 3. 0 219, 007 105. Madison, Wis ______124, 000 1 2 2. 0 0 0 60. Knoxville, 'renn ______208,000 2 2. 5 328,320 63. Mobile,Fla ______Ala.-Pensacola, 51. Raleigh-Durham, N.C •.• 206,000 2 2. 5 310,740 203,000 3. 0 40. 0 r I a n d o - 0 a y to n a 77. Paducah, Ky.-Cape Beach, Fla. ______282,000 3. 5 163, 397 Girardeau, Mo.-Harris- 59. Shreveport, La.-Texar- burg, Ill.. ______kana, Tex ______189,000 3 0 3. 0 0 0 234, 000 3 3. 0 162, 180 1 139,000 0 3 1.5 659, 597 0 47. San Antonio, Tex •• • ••• 279,000 3 3.5 145, 701 ~~: ~~~~~rx~ ~iisa ======310,000 4 1 4. 5 0 0 56. Wichita-Hutchinson, 74. Portland-Poland Kans.------231,000 3 3.0 140, 870 Spring, Maine ______174, 000 0 3. 0 0 62. Des Moines-Ames, Iowa. 228,000 3 3. 0 119, 560 68. Roanoke-Lynchburg,Va ______64. Jacksonville, Fla ______186,000 2 2. 5 134,940 186, 000 3 0 3. 0 0 50. H a r ri sb u r R- York- 104. Rockford-Freeport, IlL. 115,000 1 2 2. 0 0 Lancaster-LebaPa ______non, 106. Salinas-Monterey-San 249,000 4 3. 0 268, 730 0 Jose, Cal if. ______132,000 2 3. 0 0 0 6"r. Green Bay, Wis ••.•.••• 222, 000 0 3. 0 76,940 0 30. San Diego ••• ---~------287, 000 4 4. 5 0 0 57. Tulsa, Okla ______221, 000 0 3. 0 69, 837 0 76. Southlnd ______Bend-Elkhart, 46. Norfolk- Portsmouth- 166,000 0 4 2. 0 • 379, 12 0 Newport News- 72. Spokane, Wash ______162,000 3 0 3. 0 0 0 Hampton, Va ______" 264,000 3. 5 57, 223 86. Springfield, Mass •••••• 131,000 0 2 1.0 • 1, 640, 070 0 58. Richmond-Peter~burg, 93. Tucson, Anz ______117,000 4 0 4.0 ( 0 Va ______217, 000 3 0 3. 0 41, 423 0 42. WilkesPa ______Barre-Scranton, 66. Rochester, N.Y •••••••• 215,000 3 0 3. 0 27,217 0 290,000 0 3 1.5 • 3, 005, 633 0 79. Albuquerque, N. Mex ___ 167,000 3 1 3. 5 0 0 78. Youngstown, Ohio ______160,000 0 3 1.5 • 985, 867 0 107. AugustatGa ______104,000 2 1 2. 5 0 0 98. Austin, ex ______105, 000 1 2 2. 0 0 0 Totals ______'246, 834,280 29,879, 056 3 256, 713, 334. 99. Baton Rouge ______136,000 2 1 2. 5 0 0 73. Cedar Rapids-Waterloo, Iowa ______186, 000 0 3.0

I VHF. 2 UHF. 3AII TV.

JUDGE MARSHALLS. HALL This legal procedure is now utilized U.S. Coast Guard's temporary reserve, he throughout the State of California. organized the local USCG flotilla auxil­ Professionally, Judge Hall is a past iary, and was the first president of the HON. DON EDWARDS president of the Santa Clara. County Bar local chapter of the Navy League of the OF CALIFORNIA Association and served on the executive United States. He is the former director IN THE HOUSE OF REPRESENTATIVES board of the Conference of California of the San ,Jose Chamber of Commerce Monday, August 7, 1978 Judges for 3 years. He was a member of and was chairman of its port and air the Santa Clara County Juvenile Proba­ pollution committee. He is an honorary e Mr. EDWARDS of California. Mr. member of the San Jose Fire Depart­ Speaker, at this time, my colleague tion Commission for 5 years and a U.S. Commissioner for the Northern District ment, and is a charter member of the NORMAN MINETA, and I WOUld like to take Fire Associates of the Santa Clara Valley. the opportunity to laud and bring at­ of California for 14 years. tention to the achievements of Superior Judge Hall has devoted more than half This outstanding member of the com­ Court Judge Marshall S. Hall. Judge a century of service to the area's Boy munity will be honored on October 4 at an appreciation dinner, and it is fitting ~all has contributed 45 years of profes­ Scouts of America program. In addition siOnal and public service to the citizens to his local participation in Boy Scout to note that the proceeds will be used to of Santa Clara Valley, Calif. activities since 1920, he has served on the supply much-needed medical equipment organization's regional executive com­ for the San Jose Hospital. We wish Judge A graduate of Stanford University's Hall the best of luck in all his future en­ Class of 1933 with a bachelor of laws mittee and the Boy Scout National Coun­ degree, he joined the law firm of Louis cil. Still active in scouting, he is a re­ deavors, and fervently hope that he will Oneal, where he practiced law for 25 cipient of its highest local and regional continue in his role as an inspiring and years. honors, the Silver Beaver and the Silver outstanding community leader.• Antelope awards. · In 1957, Gov. Goodwin Knight ap­ pointed Judge Hall to the Superior Court Throughout the years, Judge Hall has participated in numerous civic programs of Santa Clara County, a position to IS YOUNG HIS MASTER'S VOICE? which he was elected a year later and such as civil defense, the Community subsequently reelected for 6-year terms Chest, the American Red Cross, and the in 1964, 1970, and 1976. He was presid­ Community Welfare Council. He is a HON. LARRY McDONALD ing judge of the superior court in 1958 member of the California Pioneers Soci­ 1964, and 1972. ' ety of Santa Clara County, the California OF GEORGIA Judge Hall introduced the settlement Historical Society, and he is a trustee of IN THE HOUSE OF REPRESENTATIVES conference concept for the civil and per­ Lincoln University, a local night law Monday, August 7, 1978 sonal injury cases in local courts as a school. e Mr. McDONALD. Mr. Speaker, the means of expediting judicial services. A former lieutenant commander in the outrage over Andrew Young's remarks CXXIV--1558-Part 18 24778 EXTENSIONS OF REMARKS August 7, 1978 about political prisoners in the United Third. It would involve the judicial 7308. This is from Adm. Stansfield States was not confined to the United branch of government for the first time, Turner, Director of Central Intelligence States. An editorial voice was being in the making of foreign policy and na­ and head of the Central Intelligence raised in the United Kingdom over his tional intelligence policy. Agency. continued retention by President Carter. These critics are especially concerned The letter follows: I commend the following editorial from in connection with these risks, about CENTRAL INTELLIGENCE AGENCY, the Daily Telegraph of London for July warrants allowing electronic surveillance Washington, D.C., June 22, 1978. 14, 1978, to the attention of my col­ of a foreign embassy located in the Hon. ROBERT W. KASTENMEIER, leagues: United States. Subcommittee on Courts, Civil Liberties, and Is YOUNG HIS MASTER'S VOICE? Furthermore, beyond the risks the op­ the Administration of Justice, Commit­ ponents see in a warrant procedure, op­ tee on the Judiciary, Washington, D.C. It is no longer possible to dismiss the out­ DEAR MR. CHAIRMAN: I understand that rageous statements by Mr. Young as im­ ponents question the need and purpose your Subcommittee will be holding a hear­ mature gaffes, the price that has to be paid of such a procedure. ing on 22 June on H.R. 7308, the "Foreign for his electoral usefulness to Mr. Carter and The purpose of the proposed warrant Intel11gence Surveillance Act of 1978," as his supposed appeal to the Third World. The procedure in H.R. 7308 is not to compli­ amended by the Permanent Select Committee more his behavior is tolerated without the cate or impede the surveillance of for­ on Inte111gence. The purpose of this letter is disciplinary action that would promptly fol­ eign diplomats or intelligence agents. to advise you that this legislation has my low for anyone else in such a senior post. The purpose is, rather, to protect full support. the more does he exploit his increasingly I support the b1Il because I believe it privileged position to project his "anti­ Americans who communicate with em­ strikes a fair balance between intelUgence colonialist" prejudices and racial grievances. bassies-or who are mentioned in em­ needs and privacy in.terests, both of which His latest allegation that there are thou­ bassy communications. are vitally important. In my view the legis­ sands of "political prisoners" in America In the past, embassy surveillances lation will place the activities with which it makes a monkey out of Mr. Carter at the have been used as a pretext to observe deals on a solid and reliable legal footing and height of his "human rights" dispute with American citizens to acquire political or help to rebuild public confidence in the na­ Russia. It was, of course, a godsend to the personal information about them for tional intel11gence collection effort and in the Soviet propaganda machine, and w111 do agencies of government principally engaged great harm. Given the political as well as the purposes extraneous to the gathering of foreign intelligence information. in that effort. moral importance of the human rights issue, The procedures envisaged by H.R. 7308 will it is a kind of sabotage and subversion. The judicial warrant procedure estab­ unquestionably involve some risks that sen­ Why is he allowed to get away with it? lished under H.R. 7308 would prevent the sitive intel11gence information may be dis­ Partly because Mr. Carter considers he still recurrence of such abuses by requiring closed. But on balance, these risks are accept­ needs him for the reasons stated above, and a high-ranking Government official to able, and while compliance may involve some partly because, having picked him, got certify in writing to the judge that the burdens, I cannot say that any proper or nec­ saddled with him, and built him up, he is purpose of the proposed surveillance is essary governmental purposes w1ll be frus­ apprehensive of the consequences among to obtain foreign intelligence informa­ trated by the b1ll or that vital 1ntell1gence the American Negro population and in the information, having such value as to justify Third World of removing him. Andrew tion. electronic surveillance as a method of collec­ Young also has solid support from the liberal H.R. 7308 further requires the judge tion, w1ll be lost. For these reasons I strongly Carter "establishment." In addition to all to approve, and later review, procedures urge that this legislation be enacted as soon this, Young owes his charmed life largely designed to minimize the acquisition, as possible. to the deep affinity between him and that retention and dissemination of informa­ Yours sincerely, part of Mr. Carter's complex personality that tion about U.S. citizens and permanent STANSFIELD TuRNER .• sees the outside world as the counterpart of resident aliens obtained from surveil­ the "deep south" of a !ew decades ago. It was, of course, an error of judgment to ap­ lance of a foreign embassy. In answer to the argument that the bill point an unbalanced man like Young to THE CASE FOR TARGETED the post of Ambassador to the United Na­ unwisely involves the judicial branch of tions. America's dealings with the real world Government in the making of foreign and PROCUREMENT and her leadership of a democratic a111ance intelligence policy, H.R. 7308 restricts under dire threat from Soviet imperialism the information required to be provided afford no scope for Young's self-indulgent to the judge to that information neces­ HON. JAMESJ. HOWARD exhi bi tionism.e sary to enable the judge to evaluate a OF NEW JERSEY given set of facts against a statutory IN THE HOUSE OF REPRESENTATIVES framework and render a decision. Monday, August 7, 1978 Thus, when the surveillance target is ELECTRONIC SURVEILLANCE OF a foreign embassy, much less information e Mr. HOWARD. Mr. Speaker, target­ FOREIGN EMBASSIES needs to be provided to the judge than ing Federal procurement funds to areas when the target is an individual person of economic need is not a new concept. or foreign corporation operating in the In the summer of 1951, the Federal Gov­ HON. ROMANO L. MAZZOLI United States. ernment embarked upon a policy to OF KENTUCKY encourage total commitment to defense The judge's finding under H.R. 7308, is production, in support of the U.S. en­ IN THE HOUSE OF REPRESENTATIVES limited to a determination that the target gagement in Korea. Numerous firms, is, in fact, a foreign embassy and that however, contacted the Office of Labor Monday, August 7, 1978 the proposed minimization procedures e Mr. MAZZOLI. Mr. Speaker, H.R. in the National Production Authority, meet the statutory standards. The judge wanting to know why they were not be­ 7308, the Foreign Intelligence Surveil­ has no authority whatsoever to decide lance Act Qf 1978, will reach the :floor ing awarded defense contracts while the wisdom of a particular embassy sur­ they had unused facilities and idle man­ soon. veillance or to otherwise involve himself power. Passage of this important legislation is in day-to-day intelligence activities. After a meeting on unemployment supported by the intelligence community In answer to the charge that H.R. 7308 with congressional leaders in September as well as civil liberty groups. Yet, some would jeopardize the Nation's intelli­ of 1951, President Truman directed the of the bill's opponents allege that the gence community and that it would Office of Defense Mobilization

ANSWER airlines can pass environmental costs on to ASSERTION As was pointed out by Mr. Gephardt be­ their customers. All business and industry Airlines are placing large aircraft orders fore the Rules Committee, this is not so. The required by the government to make expendi­ without a noise bill. tures for environmental objectives must airlines receive the tax credit which is re­ ANSWER garded as income to the airline and is taxed make up these costs and the government as such. The remainder which is invested knt>ws it when the requirements are imposed. Airlines have indeed been making orders in a quiet airplane receives the investment It has determined that the environmental for new airplanes. They must do so if they tax credit as does the amount furnished di­ improvement is worth the cost. expect to be able to replace the capacity rectly by the airlines. When the airlines When the noise rule, which condemned a which must be phased out of their systeins draw down from the noise fund monies from substantial part of the entire air transport by January 1, 1985. Fleets of aircraft cannot which they have collected from their cus­ fleet, was passed, it was recognized that air­ be bought off the shelf. Much time is taken tomers, they must report these monies as lines would have trouble recovering the cost in their design, construction, testing, de­ fully taxable income. The money at that since airline prices are regulated. In domestic livery, training, maintenance and the like. point would be treated as any other income operatit>ns, they are regulated by the u.s. In addition, the replacement of the con­ they would receive for investments from Government and in international operations, demned airplanes only brings them up to the the sale of tickets. they are subject to regulation by every gov­ point where they are now in terms of ca­ pacity. They must acquire additional ca­ ASSERTION ernment into which the airline ftes. There pacity for the growth they anticipate be­ Airlines would be replacing these pieces was no way that the airlines could be sure ot tween now and 1985. The objective here is of equipment regardless of EPA require­ securing compensation for the costs the gt>v­ ernment has imposed upon them from their noise reduction. If any airline were to reach ments. customers or anyone else. January 1, 1985 without having completed ANSWER replacement, pressure on its system to con­ The statement that these transports have ASSERTION tinue the noisy airplanes would be great and just about served out their economic life The airlines pay no interest on govern­ our efforts at noise reduction would be is questionable. The Government in all of ment monies taken from the Fund. frustrated. its studies concluded that regulatory action ANSWER ASSERTION on the part of the Government was neces­ No government monies are involved. In Regulatory Reform should be considered sary in order to make certain that, after a the interest of noise reduction, we are trying before noise legislation. given date, these noisy airplanes would not to provide a measure of assistance to the ANSWER be used. If they were shortly to become airlines in replacing condemned planes. If Action on these bills should not be de­ obsolete and retired, there would have been these funds carried a 10 percent interest ferred. Under heavy pressure from airport no justification for a retroactive noise rule charge, the airlines would not effectively be neighbors all over the country, the govern­ as was promulgated by the FAA on Janu­ helped. ary 24, 1977. ment has been trying for many years to work It is also contrary to the concepts on out a well-defined and effective noise reduc­ ASSERTION which the b111 is based. The committees de­ tion program. The Public Works and Trans­ Engines are only gt>od six years and would cided that the financing program would be portation and the Ways and Means Commit­ be obsolete by the 1985 compUance deadline. based on excise taxes on airline customers tees have developed such a program and it ANSWER similar to price increases which support en­ must move forward as rapidly as possible. The statement that engines are good for vironmental costs in other industries. Deregulation of airlines is important and ASSERTION must go forward a'so, but there is no doubt only six years is simply not true. The life of that airport neighbors would say that the an air transport engine which is overhauled There is no justification for giving the noise bills take priority over deregulation. periodically in accordance with federal regu­ owners or operators of aircraft financial as­ lations is virtually endless. It becomes t>bso­ sistance or tax credit for replacing their ASSERTION lete only when the aircraft it powers becomes equipment which will be totally depreci­ The banks will be the major benefactor of obsolete. ated and probably out of use by January 1, the legislation. ASSERTION 1985. ANSWER The financing program should not be made ANSWER The reference here is to transport airplanes available to assist in the purchase of foreign­ Government studies made prior to the on lease from banks and other lending in­ made airplanes or engines. issuance of the regulation demonstrated stitutions. Only the air carrier can get a tax ANSWER that many of the 707s and DC 8s and most of credit--the operator of the airplane. If a Such a rule would be very destructive of the two and three engine airplanes would carrier can do so, it will return the leased the interest t>f the U.S. It would invite retali­ remain in service after January 1, 1985. It airplane to the bank, but 1f it needs the air­ ation by foreign countries since the U.S. has, is for this reason that they decided to adopt plane, it must retrofit the aircraft itself. The in the past, J:milt about 90 percent of the a regulation which would condemn them on banks get nothing from this. world's fleet equipment and hopes to con­ that date. If these studies had not demon­ ASSERTION tinue to do so. It would be unwise to intro­ strated this fact, there would have been no Dr. Kahn testified before the Senate that duce a Buy American principle in this legis­ justification for passing the noise regula­ he saw no reason why the air carriers could lation. tion at all. Thus, a collection of tax from not handle this in the normal course of their the passenger to meet this mandate was business. ASSERTION proposed. Hardly a subsidy. Why is foreign airline equipment included? ANSWER ASSERTION ANSWER Dr. Kahn did testify to that effect before There have been only three domestic air­ the Senate Committee but also recognized Foreign aircraft are made eligible because craft types that have been certified since that he might well be wrong. He said that the U.S. proposes unilaterally to subject them 1969. That is the 747, the L1011 and DC 10 the Congress should determine whether the to the same noise rules that are applicable to and everyone of them meet FAR 36. They airlines needed help here or not and ex­ U.S. aircraft. Also, if American carriers were wm not require any modification; types that pressed his preference for the bills before the required to impose an excise tax on their have been manufactured since January 1974 Rules Committee over any other proposals. customers and the foreign carriers were not, have been made to meet FAR 36, etc. ASSERTION passengers and shippers would use fureign­ ANSWER fiag carriers. There was no solution to this The lessor airline would not return the While these are the only new airframe leased airplane to the banks without retro­ problem other than to treat foreign aircraft types, the original 747 engines were not in fitting it because the lease required it to be and foreign air carriers the same as Ameri­ compliance with Federal noise regulations. "air worthy" when returned. cans. ASSERTION ANSWER ASSERTION The Treasury is unclear in its position. Two airlines have no needs whatsoever ... This is not so--"air worthy" is a term of Northwest and Delta. art and means that the airplane is safe to ANSWER It ANSWER fly. would be safe to fly even though too As Chairman Anderson stated before the noisy. Rules Committee "The Treasury Department Northwest and Delta do have needs. A por­ ASSERTION tion of their capacity was condemned as in fully supports Ways & Means H.R. 11986, There is no monitoring device for the Title III." the case of other airlines and the records will Noise Fund. ASSERTION show that Northwest was the first to prop()se ANSWER a noise surcharge. It is a subsidy ~ aircraft manufacturers. The release of these funds would be se­ If any airline's needs are small, it wlll re­ verely monitored before an airline can re­ ANSWER ceive correspondingly smaller tax credits with ceive a tax credit. It must demonstrate to The bill is not a subsidy for anyone. The the balance of their tax collections being re­ the Transportation Department that it is bill sets up an effective machinery by which tained by the Trust Fund. entitled to it under the terins of the bill and August 7, 1978 EXTENSIONS OF REMARKS 24793 the Tran~>portation Department must cer­ behind the Iron Curtain, and that unless Rollcall vote No. 647-"Aye." tify this to the Treasury. An effort was made these people are restored to freedom, the Rollcall vote No. 648---"Aye." in the Ways and Means Committee to im­ freedom and human rights of those who are Rollcall vote No. 649-"Yes."e pose a GAO audit on top of this. The proposal now free cannot be definitely assured. The was soundly defeated since it is the GAO's U.S. therefore must discard any double normal responsib1lity to audit the expendi­ standard as she advances the human rights tures of all Government agencies. campaign and strives with strength to sup­ ASSERTION port the captive peoples' fight for freedom WHEN THE GRASS SMOKING IS IN and human rights. THE WHITE HOUSE, A DIFFERENT It is inflationary. 2. Our request to the U.S. Government is ANSWER earnest that it review its Asian pollcy, AROMA ARISES The blll is not inflationary I ... the 2 per­ understand that attempts to pit Peiping­ cent noise charge is accompanied by a re­ a potential enemy of the U.S.-against Mos­ duction in the existing 8 percent ticket tax cow will play America into that regime's HON. BOB WILSON to 6 percent so that the fare to the public hand and spur Russian steps that may OF CALIFORNIA for domestic air transportation is not af­ heighten tension to a point of no return IN THE HOUSE OF REPRESENTATIVES fected. This was possible because the Trust where open U.S.-USSR host1lities are Fund was developing a huge surplus. unavoidable. Monday, August 7, 1978 3. We also would like the U.S. to see that ASSERTION she and the Chinese Communist regime has Mr. BOB WILSON. Mr. Speaker, under Since the airlines are now prospering, no absolutely nothing that can be termed as leave to extend my remarks in the REc­ special financing method is needed. "common interest," that America must guard ORD, I include the following: ANSWER against Peiping's trade offers in exchange of (From the New York Times, July 27, 1978] The airlines are doing well this year and advanced know-how and m111tary fac111ties, ADMINISTRATION BUNGLED BOURNE CASE BY did well in 1976 and 1977, but their record and that nothing whatsoever should be Too MUCH DILLYDALLYING of earnings is made to look particularly good done to harm America's national security (By Mary McGrory) because of their poor earnings in previous or her interest in Asia. years. For the past five years, airline profits 4. We furthermore request all Americans WASHINGTON.-From overdraft to overdose, have been 4.3 percent on invested capital. to see that if the U.S. and the Republic of the Carter Administration personnel prob­ China stick together, both wlll benefit; if lem remains the same: delayed reaction. U.S. industry as a whole made 9.7 percent, Jimmy Carter kept Bert Lance around for more than double the airline return. For the they are separated, both wlll suffer. We therefore sincerely hope that the U.S. will three months, at least six weeks beyond any same period, U.S. industry has had a profit rational hope of survival. With Dr. Peter G. margin of 4.5 percent while the airlines abide by her treaty obligations and defense commitments for the ROC so as to safeguard Bourne, his drug adviser, the time between have had 2. The airlines must compete with revelation and resignation was only 40 hours, U.S. industry as a whole for capital funds the common security of the entire Asian­ which, according to current reports, are Pacific region. but it was also too long. 5. The Chinese Communist regime appears From the moment a front-page story ap­ becoming scarcer and scarcer. It is possible peared in a midnight edition of the Wash­ that if Title III were not passed the airlines to be bending its knees for favors from the U.S. but this is part of that regime's ington Post on Tuesday, July 18, recounting would, over some period of time, finance the how Bourne had penned a prescription for a replacement of the condemned capacity but united front scheme to tear America apart from the ROC. We therefore earnestly hope fictitious Sarah Brown for a sedative so pow­ the Public Works and Transportation Com­ erful it sets off alarm bells in drugstores, the mittee was not prepared to gamble on this. that the U.S. Government will, instead of moving towards "normalization of relations" jig was up. They wanted to get the noisy airplanes out Everyone, except those whose job is to de- . of the fleet in the time allowed.e with the Chinese Communists, strive harder with the ROC for the checking of the Mos­ cide how things look to the country, knew it. cow-Peiping expansionist race in the Asian­ Jody Powell had heard the story in Bonn, six Pacific region so as to protect America's days before, and did nothing. Bourne, under­ long-range interest in this region as well standably, 36 hours later, thought he could CAPTIVE NATIONS WEEK as the peace and security of free Asian­ beat the rap. Pacific countries. On Wednesday morning at 10 o'clock he We the rally participants ardently request was ready with a statement and a game plan, HON. EDWARD J. DERWINSKI that all of you distinguished Senators and based on a strategy of his own devising. He Representatives together urge your Govern­ would go on leave with pay. Why he, the cen­ OF ILLINOIS ment to give full play to righteous spirit tral figure in what appeared to be the first IN THE HOUSE OF REPRESENTATIVES and moral courage so that the objective of drug bust in White House history, should be deciding his own course is not clear. Monday, August 7, 1978 the "Captive Nations Week" Movement can be fully attained. We pray that America The President took only a passive part tn Mr. DERWINSKI. Mr. Speaker, the will, with renewed dedication, contribute the crisis. He never saw his dear friend, Captive Nations Week rally, held in importantly through efforts to create a hu­ Bourne. Through a third party, Bourne sub­ man society of freedom-free from enslave­ mitted his strategy to Carter; through a third Taipei, Taiwan, Republic of China, was party, the President okayed it. highlighted by a series of proclamations ment and encroachment. Respectfully yours, Powell was too busy with "urgent business" and messages, one of which was ad­ 1978 CAPTIVE NATIONS WEEK "STRIVE IN until 6 p.m. Wednesday to review Bourne's dressed to U.S. Senators and Congress­ UNITY" EVENING RALLY OF THE REPUB­ portfolio. A turbulent briefing on the situa­ men. This message reflects the spiritual tion took place two hours later. LIC OF CHINA .• The next day's papers had further expla­ support of freedom extended by the nations from Bourne. He appeared on the Captive Nations Week in the Republic of morning news shows, avowing his innocense China. I am pleased to insert it into the and his intention to stay on. At noon he gave RECORD at this time : PERSONAL EXPLANATION an interview, declaring that he had saved the MESSAGE TO U.S. SENATORS AND CONGRESSMEN President from Lance-like embarrassment FROM THE 1978 CAPTIVE NATIONS WEEK and anticipating that Carter would say at his EVENING RALLY OF THE REPUBLIC OF CHINA HON. MARILYN LLOYD prime-time television conference later that Taipei, Saturday, July 22, 1978. evening: "I support him." Honorable SENATORS AND REPRESENTATIVES: OF TENNESSEE Instead, four hours later, he resigned. It Advancing "Promote Human Rights! IN THE HOUSE OF REPRESENTATIVES was apparent that if Carter could not bring himself to fire Peter Bourne, Jack Anderson Liberate Enslaved Peoples!" as our theme, Monday, August 7, 1978 we the more than 50,000 representatives of could. The veteran columnist had, he alleged, the Republic of China's various circles and • Mrs. LLOYD of Tennessee, Mr. amdavits attesting to Bourne's own drug use. our freedom-fighter guests from the world's Speaker, I was not present for certain Bourne went out unexpectedly like Spiro five regions have assembled in Taipei on votes on August 3 and 4 and as a result Agnew, lashing out at press and prosecutors. this 22nd day of July for a "Strive in Unity" He was, he indicated, laying down his omcial did not vote on rollcall votes No. 645 life for a friend-a friend to whom he deliv­ Rally to mark the 1978 Captive Nations If Week and resolved to respectfully call your throwzh No. 649. I had been present ered a. parting blow from which Jimmy Carter attention to the following points: I would have voted in the following may never recover. 1. The United States must squarely face manner: In the first moments after his letter had the cruel fact that more than one blllion Rollcall vote No. 645-"Aye." been delivered to the White House, Bourne people are kept enslaved by the Communists Rollcall vote No. 646-"Aye." told James Wooten of the New York Times CXXIV--1559-Part 18 24794 EXTENSIONS OF REMARKS August 7, 1978 that he was leaving behind marijuana and staff drug use, as Chicago Sun-Times inter­ Carter and his top aides clearly have been cocaine users in the White House. Was he views with reporters showed. Some said unnerved by the Bourne episode and its still in shock from what the Carter staff likes they'd feel more than mildly h ypocritical aftermath and are hoping that the land mine to think of as "quick, clean ~mrgery"? Or about putting public heat on White House of further disclosures will not blow up in maybe he was being his usual artless and staffers for activities they themselves con­ their faces. confiding self with the press. He is not vin­ done or engage in. That hope seems a thin one, however, given dictive. Maybe he felt betrayed because he Others said they regard drug use, which the press and congressional interest in the had been encouraged in his fantasy of stay­ in this case involves marijuana and cocaine toplc. ing on and was musing aloud about the un­ rather than hard drugs, as a private matter, When staffers' names are disclosed, fairness of it all from his point of view. not a newsworthy event. That holds true, Carter's moral outrage and tough talk about The next night, through one of those mis­ some maintain, even though such use is a firing may prove of no avail. And the be­ chances which are the hallmark of this epi­ violation of the law, a law some regard as leaguered President, increasingly accused of sode, President Carter, seeking down-home unwise. incompetence may find himself trying to relaxation at a country-and-western concert, Still others, perhaps fearing reprisals from persuade the American public that he is not was set upon by a correspondent who is also named staffers, wo:':ldered aloud whether their a bumbling John Calvin among the hippies.e a crusader for marijuana legalization. With­ own jobs might be jeopardized if their drug out identifying himself, the bearded stranger use was made known. engaged the President in a dialogue about In effect, the reporters who could write the the unfortunate events so recently tran­ most authoritative account of White House CAPITAL GAINS CHANGES TO spired. drug habits are engaging in a cover-up of a BENEFIT HOMEOWNERS The President said he was sure that many story that undoubtedly would disturb many people-whether he meant in the White Americans, not to mention Jimmy Carter House or in the country is a point in dis­ himself. HON. BILL ARCHER pute-smoked, but that he was "not going This hesitancy to divulge names extends to OF TEXAS to ask them about it." this reporter, who, though not a marijuana It reflects further on the rampant incom­ or cocaine user, learned with certainty and IN THE HOUSE OF REPRESENTATIVES petence of the White House that neither con­ not too much difficulty the names of White Monday, August 7, 1978 gressional liaison chief Frank Moore nor the House sta~ers , including at least two on t.he attendant Secret Service men moved to senior staff, who have been marijuana users. e Mr. ARCHER. Mr. Speaker, I would break up this fateful rap. Other reporters, notably James Wooten of like to call to the attention of my col­ But when Jody Powell heard that it was the New York Times, also have done some leagues in the House of Representatives about to be printed, he reacted in a way that digging, but some turned up merely num­ an article by Associated Press Writer revealed another weakness in the presiden­ bers of users, not names. Louise Cook which appeared in the tial circle-its ignorance of history. (Bourne, the President's resigned chief July 29 edition of the Houston Post. It The press was engaged in a witch hunt. health adviser, engaged in a little hedging very clearly illustrates the importance of They were hypocrites. They had smoked and himself, telling Wooten that there was a snorted with the staff members they pro­ "high incidence" of marijuana use among two changes in the treatment of capital posed to investigate. White House staff and "occasional" use of gains in the Revenue Act of 1978 which It was a variation of the John Ehrllchman cocaine by "a few" presidential employes.) would be of great benefit to homeown­ defense. Ehrlichman accused the press of hy­ Though not mandated by White House ers, changes which deserve the support pocrisy for failing to report the staggerings policy, disclosure of staffers' names would of all of us when this bill comes to the of drunken congressmen who were presum­ almost surely mean their dismissal. And floor in the near future. ing to pass judgment on Richard M. Nixon. under the circumstances, many reporters find PROPOSAL OVER CAPITAL GAINS TAXES PROVIDES The missed point is the same in both cases. themselves (this one included) wondering KEY TO LoCKED-IN HOUSING There is only one President, and only one whether such a story is justified. White House staff. Middle America is not Perhaps the situation would be different if (By Louise Cook) ready for a "turned-on" White House any one staff member, on the record, named an­ Mary and Edward Burke are in their late more than it was ready for a "Sarah Brown" other as a u~er. But as it stands, the concerns 50s. They would like to leave the three-bed­ prescription. of privacy, the potential for ruining a per­ room home they own for an apartment, but It may well be true, as Powell indicated, son's career and, to a lesser extent, the ques­ they can't afford to sell. that the press corps has its dopers. But they tionable wisdom of federal and state drug Burke is a made-up name; the problem is are not running the country. That is the dif­ laws, all pressure for discretion--censorship, all too real. ference. if you will-weigh against such disclosures, It is a problem that causes people to ac­ Jimmy Carter understands it. At least, he despite what many reporters regard as the cumulate huge, but artificial, profits during issued a "keep-off-the-grass" directive to his unwavering credo of journalism: The people years of home ownership. Profits that are staff members Monday. It was delivered by have a right to know. created by inflation that are still subject to Hamilton Jordan, who has resolutely refused Ignoring this story, however, may not be capital gains taxes that can wipe out a. large to change his life-style for the Executive up to this reporter or reporters who have portion of a family's retirement nest egg. Mansion, declining even to put on a tie for shared a joint with this staffer or snorted Just as young couples find it tough to buy Carter. coke with that official. their first house, older people find it tough They were being told something that they Other reporters, including some from High to sell their last one. "It's hard to get on should have heard a long time ago, that the Times magazine, an unorthodox m-gan of the the train and it's hard to get off," said Ken­ gypsy life of the campaign, which is the only drug-users• community, are pursuing the neth J . Thygerson, an economist with the thing many of them ever knew, is over. Jim­ story, some perhaps intent on showing that U.S. League of Savings Associations. my Carter, in full view of the country, had to use of recreational drugs is as American as The elderly in particular, he said, "feel apple pie. locked in. They consume more housing than tell them they are in the White House now. they want to." That's what happens to a President who does If stories emerge on White House drug Congress is trying to find a. key to the lock. not have the knack for hiring--or for firing, use, Carter will face a political crisis perhaps One potential solution is included in the either. equal to the debacle that came after dis­ $16.2 billion tax cut bill approved by the [From the N~w York Times, July 27, 1978] closures about Bert Lance's banking House Ways and Means Committee and ex­ COKE Is NOT A HARD DRUG? SINCE WHEN? IT practices. pected to reach the floor of the House dur­ POSES SPECIAL CHALLENGE FOR NEWSMEN Figures on recreational drug use among ing the week of Aug. 7. (By Patrick Oster) Ame:!.'icans show about 25 million have tried The bill includes two provisions that would marijuana at least once, and about 10 million have the effect of eliminating capital gains WASHINGTON.-Since the news broke that are regular users. And support for decrimi­ taxes on the sale of a home in many cases. Dr. Peter G. Bourne was supplyin~ drug pre­ nalization of "grass" and other soft drugs is One provision would allow individuals--on scriptions to members of the White House growing. (Carter himself favors marijuana a one-time only basis-to exempt from capi­ staff. the primary topic among the press decriminalization, an idea that has caught on tal gains tax up to $100,000 of the profit from corps has been about who on the President's in about 10 states.) the sale of their principal residence as long staff smokes or snorts what. But sentiment among voters remains as they had lived in it for two years. An­ Some talk is more informed than the rest strong against recreational drugs, particu­ other section of the bill exempts from tax­ because of a fact that some members of the larly cocaine, largely because it violates the ation any inflation-caused increase in the public might find peculiar: Many reporters law. The strait-laced Carter, a born-again value of a home or other asset starting in who cover the White House have tried or Christian, shares this hard view, having told 1980. used drugs themselves, sometimes socially senior staffers Monday that future drug use No one knows how many people move into with members of the White House staff. would be grounds for dismissal (while side­ a house, pay off the mortgage and remain, This makes them uneasy about disclosing stepping what he'd do about past use). without ever selling their home and facing August 7, 1978 EXTENSIONS OF REMARKS 24795 the capital gains problem. Census Bureau and from four other Warsaw Pact coun­ would be one small way in which we as a figures show that on the average, houses tries invaded Czechoslovakia. The peace­ people could demonstrate our gratitude and change hands every 10 to 12 years. One mort­ our commitment to the government that has gage is exchanged for another. Mobility is ful and freedom-loving Czech's hope for done so much for us. greater in California and lower in New a society free from heavy restriction and England. repression came to an abrupt halt. The Departments of Defense and Inte­ Housing, said Thygerson, is "the only asset Under the leadership of Alexander rior strongly endorse this bill and it was most people have that has risen faster than Dubcek change was occurring in Czecho­ approved unanimously by the commit­ inflation." If you bought a house for $25,000 slovakia. Dubcek undertook a program tee, a quorum being present. five years ago and sell it for $50,000 today, that expanded the rights of the Czecho­ I urge passage of H.R. 7161.e you have a theoretical profit of $25,000. You'll slovakian people; controls over the press probably have to use up that profit-and more-to buy a replacement home, but, "If were relaxed and public rallies were held you hadn't had that house in the first place, at which young people spoke their minds you'd have been even worse off," Thygerson freely. All of this progress was ended by A PERSPECTIVE ON AMERICAN said. the Soviet invasion. FARM DEVELoPMENT "Once you're in a house you benefit by The indignation of Czechoslovak citi­ inflation," said Thygerson. The disadvan­ zens aroused by the Soviet occupation as HON. GEORGE E. BROWN, JR. tages become more apparent when you want well as by sadistic methods of oppres­ to sell your home and buy a cheaper one or sion, including incarceration and other OF CALIFORNIA move into rental housing. That's where capi­ IN THE HOUSE OF REPRESENTATIVES tal gains come in. violations of human rights, gave birth to Under present law, payment of capital a daring document--the Charter

24796 EXTENSIONS OF REMARKS August 7, 1978 taxes necessitated greater and greater needed constant costly repairs. Thus a white-collar employment, or farmers; in the returns to farmers on the sale of their fisher needed a high capital inflow, to large-farm community the proportion is less products just for them to stay even. A maintain the new boats. Most small fish­ than one-fifth. (7) Less than one-third of the bread­ farmer increasingly was forced to turn ers did not have large enough catches winners in the small-farm community are to cash crops to survive. Most farmers to bring in this much money. While agricultural wage laborers (characteristically still could manage, when times were best. the mechanized boats accomplished the landless, and with low and insecure income) Bad seasons came, though, and more and initial goal of increasing fish production, while the proportion of persons in this posi­ more farmers were thrown into bank­ they did so only at the cost of the small tion reaches the astonishing figure of nearly ruptcy and off their land. The displaced fishers. two-thirds of all persons gainfully employed . rural people had few, if any, employable The total income of the fishing com­ in the large-farm community. . skills outside of agriculture. They filled munities greatly increased, but the in­ (8) Physical fac111ties for community liv­ ing-paved streets, sidewalks, garbage dis­ the ghettos of our cities as unskilled come distribution drastically changed. posal, sewage disposal, and oher public serv­ laborers and welfare recipients. The in­ Unemployment soared as the middle ices-are far greater in the small-farm com­ creased competition for low paid jobs class was squeezed out of the fishing munity; indeed, in the industrial-farm com­ further depressed wages and divided market. The industry became domi­ munity some of these fac111ties are entirely workers into competing factions often nated by a handful of wealthy families. wanting. based on race and ethnicity. The workers no longer held shares in (9) Schools are more plentiful and offer I admit that many of the farmers who their equipment and received minimum broader services in the small-farm commu­ wages rather than parts of the catch. nity, which is provided with four elementary were forced off their lands were not well schools and one high school; the large-farm to do in the first place and did not lose a The result of the mechanization of Sri community has but a single elementary great deal materially by their move to Lanka fisheries, thus, was the destruc­ school. the cities. Indeed, some may argue they tion of the old way of life and the polar­ (10) The small-farm community is pro­ have become relatively better off since ization of that society into extreme in­ vided with three parks for recreation; the hunger, disease, and exposure no longer come groups. The parallels with Amer­ large-farm community has a single play­ play such a prominent role in their lives. ican agriculture are startling. ground, loaned by a corpora tlon. Walter R. Goldschmidt examined two (11) The small-farm town has more than I can see other areas, though, where the twice the number of organlzalons for civic displaced farmers were formerly rich central California farming communities improvement and social recreation than its and are now exceedingly poor. The sense back in 1946 and presented his famous large-farm counterpart. of family and community that once so study. "Small Business and the Com­ (12) Provision for public recreation cen­ dominated rural life has all but munity." He studied the agribusiness ters, Boy Scout troops, and similar fac111ties disappeared. town of Arvin and the small farm com­ for enriching the lives of the inhabitants is munity of Dinuba. I would like to include proportioned in the two communities in the The independence of the small farm­ same general way, favoring the small farm ers has been replaced by submission, ex­ a summary of his finding, as described in the 1968 Corporate Farm Hearings community. ploitation, and control. Small farmers (13) The small-farm .community supports have hard lives often, but immensly re­ before the Select Small Business Sub­ two newspapers, each with many times the warding ones. They have close contact committee on Monopoly. news space carried in the single paper of the with nature and creative work. Their The summary follows: industrialized-farm community. talents, indeed, create an essential prod­ SUMMARY OF FINDINGS ( 14) Churches bear the ratio of 2 : 1 be­ uct of life. Unskilled laborers cannot Certain conclusions are particularly signif­ tween the communities, with the greater usually see the importance of their work. lcan t to the small businessman, and to an number of churches and churchgoers in the understanding of the importance of his small-farm community. They may simply be part of a machine, place in a community. Not only does the (15) Fac111t1es for making decisions on an interchangable cog in a wheel. A small farm itself constitute small business, community welfare through local popular strong sense of alienation sets in, and its but it supports fiourishing small commercial elections are available to people in the small­ symptoms are increased crime, drug use, business. farm community; in the large-farm commu­ apathy, and so forth. Don Dillman and Analysis of the business conditions in the nity such decisions are in the hands of Kenneth Tremblay, Jr., found in their communities of Arvin and Dinuba shows officials of the county. study "The Quality of Life in Rural that- These differences are sufficiently great in America" that people in rural settings (1) The small farm community supported number and degree to affirm the thesis that were much more happy and satisfied 62 separate business establishments, to but small farms bear a very important relation 35 in the large-farm community; a ratio in to the character of American rural society. with their life than those who lived in favor of the small-farm community of nearly It must be realized that the two communities the cities. 2:1. of Arvin and Dinuba were carefully selected This was true even though the rural (2) The volume of retail trade in the small­ to refiect the difference in size of enterprise, areas fell behind in income, education, farm community during the 12-month period and not extraneous factors. The agricultural health, and cultural activities. The nec­ analyzed was $4,383,000 as against only production in the two communities was vir­ essary conclusion is that a rural life $2,535,000 in the large-farm community. tually the same in volume-2V:z mUllan dol­ provides an overwhelming amount of in­ Retail trade in the small-farm community lars per annum in each-so that the resource was greater by 61 percent. base was strictly comparable. Both commu­ tangible advantages, such as clean air, (3) The expenditure for household sup­ n1Ues produce specialized crops of high value warm communities, outdoor recreation, plies and building equipment was over three llnd high cost of production, utilizing irriga­ and the like. More and more people are times as great in the small-farm community tion and large bodies of special harvest labor. leaving the cities in recent years and as it was in the large farm community. The two communities are in the same cli­ returning back to the country. It remains The investigation disclosed other vast mate zone, about equidistant from small to be seen, though, if this trend can con­ differences in the economic and social life of cities and major urban centers, similarly tinue in the face of modern agricultural the two communities, and affords strong sup­ served by highways and railroads, and with­ techniques. port for the belief that small farms provide out any significant advantages from nonagri­ the basis for a richer community life and a cultural resources or from manufacturing or Paul Alexander presented a fine case greater sum of those values for which Amer­ processing. The reported differences in the study in his work "Innovation in a Cul­ ica stands, than do industrialized farms of communities may properly be assigned confi­ tural Vacuum: The Mechanization of the usual type. dently and overwhelmingly to the scale-of­ Sri Lanka Fisheries." Prior to mechqni­ It was found that- farming factor. zation, the public generally consisted of ( 4) The small farm supports in the local The reasons seem clear. The small-farm middle-class fishers. The boats and community a large number of people per ccmmunlty is a population of middle-class other equipment were divided into dollar volume of agricultural production persons with a high degree of stab111ty in in­ than an area devoted to larger-scale enter­ come and t·enure. and a strong economic and shares and the catches were sorted out prises, a difference in its favor of about 20 social interest in their community. Differ­ according to the number of shares a percent. ences in wealth among them are not great, fisher owned. Then in 1958 the govern­ (5) Notwithstanding their greater num­ and the people generally associate together ment introduced modern mechanized bers, people in the small-farm community in those organizations which serve the com­ fishing boats. Most Sri Lanka· fishers, have a. better average standard of living than munity. Where farms are large, on the other those living in the community of large-scale hand, the population consists of relatively though, could not afford their high cost. farms. few persons with economic stab111ty, and of A government loan scheme was flawed (6) Over one-half of the breadwinners in large numbers whose only tie to the com­ and proved inadequate. The new boats the small-farm community are independ­ munity is their uncertain and relatively low­ had relatively short operating lives and ently employed businessmen, persons in income job. Differences in wealth are great August 7, 1978 EXTENSIONS OF REMARKS 24797 among members of this community, and ress can be made in agriculture, but it cally, this development is being encouraged social contacts between them are rare. should be designed to aid small farmers by the very international organizations that Indeed, even the operators of large-scale rather than hurt them. Further indus­ have been charged with waging the war farms frequently are absentees; and if they against global hunger. Last month, for ex­ clo live in Arvin, they as often seek their rec­ trialization of farming will end the tra­ ample, the U.N. World Food Council met in reation in the nearby city. Their interest in ditional family farm life. Agriculture will Mexico City to discuss the food situation. the social life of the community is hardly be controlled by a few wealthy groups Its information was grim. greater than that of the laborer whose tenure who are involved in the practice only for 43 countries now suffer acute food short­ is transitory. Even the businessmen of the the money. The agricultural workers will ages. large-farm community frequently express completely become wage earners divided 455 million of the world's people are mal­ their own feelings of impermanence; and and segmentized as are other workers in nourished (an increase of 55 m1llion during their financial investment in the community, our society. Income distribution will po­ the past eight years); kept usually at a minimum reflects the same One-third of the world's children die of view. Attitudes such as these are not condu­ larize and unemployed small farmers will malnutrition. and related diseases before cive to stab111ty and. the rich kind of rural further fill our cities' ghettos. the age of five. community life which is properly associated Many agricultural experts feel that How did the delegates respond to these with the traditional family !arm. large-scale farming will eventually de­ statistics? Unfortunately, while they con­ stroy itself. Artificial pesticide and fer­ sidered other suggestions, they joined the Mr. Speaker, agricultural experts to­ tilizer are steadily depleting the fertility World Bank and the U.S. Agency for Inter­ day have stated that this comparison of our soils and are injurious to the pub­ national Development in call1ng on the de­ still holds true, though family farming lic health. The environment will continue veloped nations to make a larger public and communities are on the decline. private investment in the mechanization to be sacrificed to profit and crops will and modernization of Third World agricul­ Victor Stoltzfus studied the effects of suffer from the pollution. The separation ture. modern agricultural techniques on the of decisionmakers from the land will Apparently, these international agencies Amish communities of America. He lead to increased price instability. The still believe that such investment can strike found here that unlike most areas tech­ large numbers of managers necessary a significant blow at world hunger. But as nical innovations were introduced only will bring great inefficiency into the field. Latin America's recent expE!i'ience so clearly after careful consideration of all effects. demonstrates, nothing could te further from Agriculture in the Soviet Union is an the truth. The people were not backward or archaic example of what large-scale farming will In one country after another-Mexico, in their beliefs, but only conservative bring. Their system has developed tre­ Brazil, Guatemala, Columbia---agriculture is and watchful for the full social costs of mendous problems over the years and being modernized at unprecedented rates. "progress." A "harmonious balance generally proved disastrous. They have Nevertheless, the statistics on hunger and among God, nature, family and commu­ often reached crises requiring the impor­ malnutrition in Latin America look worse nity was the goal" of their society. In tation of huge quantities of food just to every year. Today, one in five Latin Ameri­ this day of environmental concerns and cans suffers from severe malnutrition; in maintain their own population. America Brazil alone, 44 million are malnourished. calls for appropriate technology, the is following a path to a similar style of If, in !act, modernization combats hunger, Amish culture stands as an example to be agriculture, but if our food system why these figures in the face of significant emulated. In brief, the Amish did not flounders there may be no one left to food production increases and stepped up regard technological innovation as an keep us from starving. investments in agriculture? The problem is end in itself. Their core culture of religi­ Patricia Flynn's description of what that the bulk of new investment seeks the ously reinforced family and community agribusiness is doing to the Third World high returns realized through the produc-_ tion of export crops like soybeans, sugar and values was safeguarded a15ainst the so­ serves as a forewarning of what the cotton. But these crops, big money-makers cial costs of changes which in their esti­ future of American agriculture will be on the world market, do not feed the local mation did more harm than good to the like if we do not stop the decline ot small population. community as a whole. family farms. Ms. Flynn has shown us In fact, the use of land for production of High land values and increased taxes what large-scale farming without appro­ export crops rather than staple foods, has have forced many Amish to introduce priate technology can do. It is up to us to contributed significantly to food scarcities stop and reverse this trend. Passing the throughout Latin America. While Latin specialized cash crops. The high prices of America's export agriculture expands, staple land and modern capital equipment have Family Farm Development Act will help. food production lags far behind the popula­ forced many farmers to seek financial I would now like to insert a copy of Ms. tion growth rate of 2.8 percent a year. Be­ support outside their communities in Flynn's article from the July 16, 1978, tween 1964 and 1974, for example, per capita commercial credit institutions. The start­ Los Angeles Times into this RECORD. production of export crops increased by 27 UP costs of an Amish farm have increased U.S. AGRIBUSINESS Is DEVOURING THE THmD percent, while per capita production of staple WORLD foods decreased by 10 percent. about 10 years ago to $8,000 to $10,000 The growing penetration of American agri­ now. While commercial credit has ex­ (By Patricia Flynn) business, coupled with local capitalists' in­ posed the communities to outside in­ They cost 69 cents a pound here now, and vestments, and the consequent imbalance in fluence, which was previously thought no decent tossed salad would be seen without food production affects both this country undesirable, it does provide young one-particularly at this time of year. But and Third World nations in a number of Amish the opportunity to continue farm­ unfortunately, those ripe, red tomatoes have ways. Mexico is a case in point: The last ing when they might not otherwise come to represent something more than a 10 years have transformed the fertile valleys be able. Stoltzfus did not find a single shot of vitamin C and a splash of color in a of north west Mexico's Sonora and Sinaloa case of an Amish farmer not pay­ bowl of leafy greens. states into modern agricultural regions re­ During the summer months, of course, sembling California's San Joaquin Valley. ing a loan. Family and friends Wealthy Mexican growers, working in part­ most of the tomatoes piled in colorful pyra­ always come to the aid of a distressed mids in California supermarkets are grown nerships with U.S. agribusiness interests and farmer. The Amish are under some in the United States. But over the past few banks, have planted almost every acre in financial strain these days, but they are fruits and vegetables for export to the United years, growing affi.uence and aggressive ag­ States. The growers now supply U.S. markets still holding their own. Stoltzfus found 88 ricultural marketing in America-and, in­ with about 60 percent of their winter savings accounts of some $2.4 million in creasingly, in Western Europe-have created vegetables. 1964 to have increased to $4 million in a year-round demand for fruits and vege­ While massive investments in irrigation, 1971. The Amish example is in stark con­ tables that were formerly seasonal produce. fert111zer and modern equipment made the trast to that in Sri Lanka. The Amish To satisfy the developed nations' profitable farmlands of Mexico's northwest flourish, ability to maintain a small family agri­ demand, American agribusiness has under­ Mexican agriculture faces a new crisis. For cultural community in the face of all taken an unprecedented expansion of its several years staple food produced for the activities in the Third World. There, the local market has decllned. Population grows modern pressures is an examnle for all U.S. corporations and local investors have annually at a rate of 3.5 percent, but since remaining American family farm found not only cheap labor and a physical 1970, staple food production has lagged be­ communities. climate hospitable to their mechanized ag­ hind and has actually declined for several The number of Americans involved in riculture, but also governments eacr.er for years. farming dropped from 14 percent in modernized farming and the vital foreign A:!. a result, Mexico has been importing 1945 to only 4.4 percent today. Increased exchange it can bring. more agricultural products than it exports As a result, a growing number of Third since 1974. Last year, 1.5 m1llion tons of corn mechanization without the consideration World countries have become significant and 1.4 million tons of wheat were imported. of social costs continues to force small raisers of food for exoort, while their own Food shortages affect both urban and rural farmers out of business. Technical prog- people suffer severe food shortages. Ironi- dwellers, but for the rural population, the 24798 EXTENSIONS OF REMARKS August 7, 1978 costs of such export agriculture Me particu­ financing fertil1zers, machinery, irrigation risked their lives for ours. Six men with larly high. Many small farmers have iost and agricultural research. wives and children. Six men with dreams . their lands to their larger, expansion-minded Why are government policies skewed to for the future. Six brave and courageous neighbors. Throughout Latin America, tens benefit export crops? One reason is that the of thousands of landless peasants migrate to richest and largest-and, therefore, most in­ men who were simply doing their jobs the cities every year, where they are likely fluential-land owners are found in the ex­ to the best of their ability. to Join the ranks of the urban unemployed. port sector. But, Latin American regimes have The firefighters of our city are a spe­ Others become day laborers on the land they another pressing reason for stepping up ef­ cial breed. It is truly unfortunate that once farmed. A groWing number migrate forts to promote export production. With it takes a tragedy of this magnitude to north to the United States; many of them their foreign debts reaching astronomical remind us of their extraordinary valor hoping to earn enough here to buy food proportions-both Mexico and Brazil each and dedication. raised in their own countries, but unavail­ have debts of over $30 billion-these regimes able to them there. are more worried about paying off their credi­ For the people of New York City, the l n Mexico alone, the number of landless tors (U.S. banks, Western governments and six firefighters who died last week will peasants has increased from 1.5 million in multilateral lending agencies) than about be remembered as heroes. But our hearts 1950 to over 5 million today. For those dis­ feeding their own people. Expanding agri­ go out to their wives and children, who possessed peasants who do find work as farm cultural exports seems to them the most logi­ will remember these special men not just laborers, starvation wages and inhumane liv­ cal way to increase the foreign exchange earn­ for their courageous service to their city, ing conditions are the norm. In Mexico, the ings they need to remain financially solvent. but as loving husbands and devoted men, women and children who pick the to­ Throughout Latin America, wherever agri­ fathers.• matoes sold in U.S. supermarkets earn an business flourishes, land use and starvation average wage of $2 .50-$3 a day-a deceivingly wages intensify local hunger. In some areas, high figure considering that an estimated 5 U.S. corporations are directly involved in us­ million farm workers are employed less than ing some of the most fertile lands for export ASSOCIATION OF LOCAL TRANS­ 90 days a year. Many of them live during this production rather than staple food crops. PORT AffiLINES SUPPORTS NOISE part of the year in makeshift labor camps Most of Central America's banana planta­ REDUCTION BILL where outhouses are built on stilts over the tions are controlled by three agribusiness same irrigation canals that supply their giants-Castle & Cooke, Del Monte and drinking and bathing water. United Brands. In addition to growing ba­ HON. GLENN M. ANDERSON Because cheap labor is a major factor in nanas for the U.S. and European markets, OF CALIFORNIA making export agriculture profitable, agri­ some of the companies also let thousands business interests fiercely resist farm workers' of acres lie uncultivated, held for future IN THE HOUSE OF REPRESENTATIVES efforts to organize. In Mexico's vegetable­ expansion. Monday, August 7, 1978 producing region, more than 100 peasants Under such conditions, human exploitation have been killed during the past three years abounds. In Brazil, as in other countries, the e Mr. ANDERSON of California. Mr. in conflicts with large growers over wage and minimum wage in agriculture is rarely en­ Speaker, I have received a letter from living conditions. Jn June, after 5,000 Sinaloa forced, and day laborers in the southern soy­ Robert E. Ginther, president of the As­ farm workers went on strike for improved bean, sugar and coffee region earn as little sociation of Local Transport Airlines conditions, the state government sent in as 50 cents for a 12-hour workday. A 1976 expressing strong support for the air­ troops to arrest strike leaders. study showed that in Guatemala, a shocking port and aircraft noise reduction bill. Agribusiness has had the same affect on 66% of the fam111es who work on sugar plan­ ALTA represents the 15 regional and other countries as it has in Mexico. For in­ tations have an income that is not adequate stance, Brazil, now one of the wor.ld's great to meet minimum nutritional needs. And local service airlines which provide serv­ food exporters, has serious hunger problems those who work on coffee plantations are ice to more than 400 of the Nation's and in its southern states hundreds of thou­ even more destitute, with 88% of the fami­ small and medium-sized communities. sands are landless and dispossessed. lies unable to afford a minimum diet. His letter discusses the many reasons · The overweight growth of Brazil's soybean It is clear that the powerful landowners for their support and the support of the industry is the most dramatic example of the and agribusiness companies are not con­ cities, counties, and airports which they new wave of export agriculture in Latin cerned with giving farm workers a fair share serve. I feel it important that it be America. Since 1970, when its production was of the wealth they produce, nor with protect­ entered. insignificant, Brazil has become the world's ing the right of small farmers to their land, No. 2 exporter of soybeans (after the United nor with meeting the food needs of the local ASSOCIATION OF LOCAL States). Encouraged by Brazil's m111tary gov­ population. TRANSPORT AmLINES, ernment and assisted with loans from the Any international strategy that a.ddresses Washington, D.O., August 3, 1978. U.S. Overseas Private Investing Corporation, the needs of the world's hungry-their food Hon. GLENN M. ANDERSON, multinational grain companies like the u .s. needs, as well as their need for a decent U.S. House of Representatives, based Cargill Corporation have invested more wage-must first seek some fundamental Washington, D .O. than $100 million ,in some of the world's changes in such social and economic struc­ DEAR CONGRESSMAN ANDERSON: In a few largest and most modern soybean-crushing tures. Without this, agricultural moderniza­ days you will have an opportunity to vote plants, which transform most of the protein­ tion in the Third World wlll do more to ex­ on H.R. 8729 and H.R. 11986, the aircraft rich crop into cattle feed and vegetable oil. noise reduction legislation recently approved acerbate than to alleviate world hunger.e by the House Committee on Ways and Means But at the same time, shortages of staple and the House Committee on Public Works foods on the local market have sent food and Transportation. prices skyrocketing, penalizing Brazil's poor The 15 regional and local service airlines and exacerbating the ongoing crisis of malnu­ ANSWERING THE LAST ALARM who provide airline service to more than trition and hunger in that country. Last year, 400 of the nation's small and medium-sized shortages of black beans, the staple food in communities strongly urge you to support the diet of millions of poor Braz111ans, nearly HON. STEPHEN J. SOLARZ this legislation a.imed at significantly reduc­ provoked a poll tical crisis. OF NEW YORK ing aircraft noise around the nation's air­ Although black beans can be grown on the ports. If a comprehensive effort to reduce same land as sovbeans, nearly all available IN THE HOUSE OF REPRESENTATIVES noise pollution is to succeed, passage of this agricultural credit in Brazil is channeled into Monday, August 7, 1978 legislation is imperative. export production. Of the $18 billion in sub­ Essentially, the b1lls provide new funds­ sidized loans that were poured into agri­ e Mr. SOLARZ. Mr. Speaker, I would from aviation users, not from the general culture last year, the bulk went to finance like to take this opportunity to pay trib­ public-to airport authorities and to the the large-scale farmers who produced for the ute to six very special men who gave airlines so that they may begin attacking export market. Seven out of eight pro­ their lives on Wednesday in service to the problem on several fronts. ducers-the small farmers who produced the people of New York City. The airports wlll be provided additional most of the beans, corn and cassava that are Charles Bouton, age 38. James Cutillo, airport development grant funds to reduce Brazil's staples-received no loans at all. noncompatible land uses around airports a~e 39. Harold Hastings, age 40. James Government credit policies are actually through the acquisition of land or noise widening the gap between the large commer­ McManus, age 48. William O'Connor, age suppressive equipment. The airlines will re­ cial farm owners and the poverty-stricken 29 George Rice, age 38. ceive assistance through the creation of a farm workers in many Third World coun­ These six men were New York City two percent excise tax on passenv.ers and tries. The smaller farmers who produce sub­ firefighters. They were killed in one shippers to provide funds to aid in either re­ sistence crops still use the most backward terrifying instant when the roof of a tiring or retrofitting about 1600 jet aircraft techniques-not because thev resist change, blazing Brooklyn supermarket collapsed which do not meet current Federal noise but because they do not have the financial standards. This excise tax over five years, resources to modernize and expand. By con­ without warning. Will pay about one-third the cost of quieting trast, the modernized export sector is the In that horrible moment. New York older aircraft and acquiring new jets with­ main beneficiary of government programs City lost six men who time after time out placing any tax burden whatsoever on August 7, 1978 EXTENSIONS OF REMARKS 24799 general taxpayer funds. In addition, airline the face of adversity, and a philosophy dent John Kennedy promoted and obtained users wlll not pay more taxes than at pres­ of love and peace with offered hope for a tax cut. His advisers thought the Treas­ ent as the excise tax created is coupled with ury would lose $2.4 billion in the first year. a calmer time. Instead, the Treasury gained $7 blllion, due a reduction in the current excise tax from Pope Paul will be sorely missed by all eight to six percent. to a resurgence of confidence, expanded in­ This program has been labeled by some as of us, regardless of religious conviction, vestment, new jobs. a subsidy or a giveaway to the airline in­ who wish to see the day when brother­ People knew that they would have more dustry. Nothing could be further from the hood and peace will :flourish throughout keep-at-home pay. Investors knew they truth. Never before in U.S. history has any theworld.e could put their savings into an enterprise industry been burdened with a $6 to $8 bil­ and not go broke. lion environmental program applying not to That's what we need: a permanent fed­ _new plants or equipment but to existing eral income tax cut for· individuals and equipment. The jets now operated by the ADDITIONAL EDITORIAL SUPPORT corporations. u.s. airlines were certified by the U.S. gov­ FOR ENACTMENT OF THE KEMP­ BIPARTISAN SUPPORT FOR KEMP-ROTH ernment, when they were designed and built, As I indicated on Friday, Kemp-Roth to meet all Federal requirements. Now, years ROTH TAX RATE REDUCTION ACT later, these same aircraft must be exten­ is bipartisan in many ways. It rests upon sively overhauled or retired because of HON. JACK F. KEMP economic premises used both by Re­ new noise regulations. The legislation before publicans and Democratic Presidents the House would put about one-third of this OF NEW YORK and administrations. It is cosponsored, tremendous burden on the users of airline IN THE HOUSE OF REPRESENTATIVES in the House and Senate, by Democrats services whlle the airline industry would be Monday, August 7, 1978 and Republicans. It was supported in a required to absorb two-thirds of the cost. :floor vote in March by Democrats and Whlle the industry has recently shown • Mr. KEMP. Mr. Speaker, on Friday of Republicans, a point alluded to in the improved financial results, during the 10 last week I brought to our colleagues' editorial which follows. And the individ­ years preceding 1978 the industry had a attention a number of editorials from ual income tax rate reduction which poor record of earnings; and there is great around the country in support of the doubt whether 1978's relatively strong earn­ Kemp-Roth would make law are for the ings picture will continue into the future, Kemp-Roth legislation, the Tax Rate benefit of everyone. particularly if a recession threatens the Reduction Act. This is the legislation to This point was made by the Buffalo economy next year. Simply put, the airline reduce individual income tax rates for News in a recent editorial: industry is not capable of meeting the costs all the people by about 33-percent over And this is the kind of appeal, we suspect, of this expensive program without assist­ the next 3 years. It is the legislation that produced not only solid Republican but ance from a users tax. which forms the basis for the amend­ considerable Democratic support for the In closing, I hope you wm note that this ment I intend to offer to the tax bill Kemp approach. Since it attracted 194 favor­ legislation has the support of the nation's reported by the Committee on Ways and able votes even in losing, and since there are cities, counties, State governments, and air­ only 147 Republicans in the House, the port authorities. It is also supported in prin­ Means, H.R. 13511, an amendment which would incorporate the phased individual Kemp-GOP alternative can be fairly labeled ciple by the Administration whose only ob­ bipartisan. jection to the program is the funding levels income tax rate reductions of the Tax And why not? It's underlying concepts are for airport development grants. This legisla­ Rate Reduction Act, effective January 1, closely modeled on the job-creating tax re­ tion has been developed after two years of 1979, 1980, and 1981, into the bill duction advanced by JFK and then put exhaustive hearings and studies by many reported. through by Democratic President Johnson in committees of the Congress and merits your But, because there was so much of that 1964. support. editorial support that it would have ex­ Perhaps because his alternative was barely If our organization may be of further as­ re1ected this time by the House, Rep. Kemp sistance to you in consideration of the noise ceeded the two-page limit, I could not It plans to try again later this year when the control legislation or in any other way, I put all of it in the RECORD Friday. will Carter tax package comes to a vote. Maybe hope you will call upon us. take a number of days to do that, but the closeness of this margin will move the Sincerely yours, I do wish to add some additional ones administration to try to steal his thunder RoBERT E. GINTHER, today to our deliberations. with its own across-the-board paring of in­ President.e KEMP-ROTH GOOD FOR SMALL BUSINESS come tax brackets. If not, then we hope the Kemp alternative will pick up enough addi­ The Syracuse OF POWER, BOOK ter which commends itself to your at­ can to make Catholics and others aware of III B _me taxes paid rose dramatically beginning in 1964, when personal income for three years, actual income taxes paid was taxed at stgntficantly lower rates rose dramatically beginning in 1964, when personal income was taxed at significantly lower rates. 1961 1962 1963 1964 1965 1966 One of Dr. Evans' points here is that Maximum tax rate ______by lowering income tax rates, these peo­ 91% 91% 91% 77% 70% 70% ple were in fact drawn into more economic activity, were drawn out of tax [In mlllions) shelters, and the Treasury did receive more revenue than it otherwise would Taxes 1 collected from have received. The point is crucial, be­ income classes of cause Dr. Heller, Dr. Kiefer, Mr. GIAIMO, Mr. VANIK, and others have said that tax Over 1,000,000 __ ------$342 $311 $326 $427 $603 $590 500,000-1,000,000 297 243 243 306 408 457 revenues following the Kennedy cuts 100,000-500,000 ------were not higher than they would have ------1970 1740 1890 2220 2752 3176 otherwise been. 1 Adjusted gross income. Dr. Evans' article should be read by every Member. It follows: The results are so clear-cut that it is sur­ than the average growth in total personal prising that these figures have not previously TAXES, INFLATION AND THE RICH income. been introduced as evidence in favor of These results, which represent a remark­ (By Michael K. Evans) Kemp-Roth. After virtually no growth in able rebuttal of those who argue that upper­ Increasing numbers and economists have inconae taxes for incomes over $100,000 for income tax cuts are a "raid on the Treasury," recently suggested that massive tax cuts three years, actual taxes paid rose dramatic­ indicate that a further reduction from 70% would cure the ailments of the u.s. economy ally beginning in 1964 even though income to 50% would not only spur economic growth by increasing productivity, raising incentives was taxed at significantly lower rates. In the and increase aggregate supply, but would and hence expanding aggregate supply. The case of individuals earning over $1 million actually assure the Treasury of greater tax idea of supply-side incentives has been em­ per year, taxes collected actually doubled in revenues. The argument for upper-income bodied in proposals like the Steiger amend­ the two-year span during which the tax tax cuts ls almost as watertight as the argu­ ment to cut capital gains taxes and the rates were being lowered. For income classes ment for lower capital gains taxes. Kemp-Roth bill for an across-the-board tax under $100,000, taxes either fell or rose less The more extreme proponents of Kemp- cut. August 7, 1978 EXTENSIONS OF REMARKS 24809 Roth have sometimes seemed to suggest that centive to work, save, and invest. As peo­ tion. It seem just as likely to responsible this phenomenon occurs at all income levels. ple work and produce less, there is less economists that many taxpayers will It does not, as can be seen by a perusal of the use the extra income created by a "tax comp!ete "Statistics of Income" figures, and wealth to tax, and even with higher tax by the fact that aggregate personal income rates, less revenue is collected. cut to increase their leisure time, rather tax collections did decline from $51.5 billion On the other hand, Roth-Kemp advo­ than to increase their working time. This in 1963 to $48.6 billion in 1964 This should cates claim, decreasing the tax rate gives has been the case in recent years. come as no great sul"prise: The effects on people incentive to work harder and in­ I am also concerned that the massive individual incentives and supply of labor are vest more, thereby increasing produc­ tax cuts provided for in H.R. 8333 will undoubtedly much greater where taxes are tion. Thus, even at lower tax rates, more reverse the progress we have been mak­ highest-at the upper income levels rather revenue is collected. The tax cuts en­ ing in recent years to cut back on the than for the typical wage earner. acted during the Kennedy administra­ Federal deficit. The 1976 deficit was $66.4 FLEXIBILITY FOR UPPER INCOME GROUP tion, and the subsequent rise in tax rev­ billion. In 1978, we keot the deficit down Furthermore, just as has been shown in enue and national wealth, are given as to an estimate $52.1 billion, and for 1979, recent work on capital gains taxes, upper­ the deficit is projected to be approxi­ income individuals have far greater flexi­ examples of the theory's validity. bility in arranging' the income for their as­ The Laffer Curve is often spoken of mately $43 billion. This is in spite of the sets in the form of tax-free or tax-sheltered as a new breakthrough in economic fact that inflation has been at between income when tax rates are at punitively high thinking. However', it merely restates 6 and 8 percent during that time, which levels. The risks of unreported income be­ what every businessman knows: Up to a would have predicted an increase, not a comes relatively much smaller when tax rates point, you can increase total revenue by decrease, in the deficit. These gains will are near 100%, and the lure of diverting raising your prices. After that point, be more than wiped out by Roth-Kemp earnings to foreign countries becomes much unless we are willing to make equally greater. sales drop off to such an extent that total Thus if the Treasury wants to collect more revenues decrease. massive cuts in Federal spending, and revenues, it will lower the highest marginal People wbo run companies make it the resulting deficit will exacerbate an tax brackets. Only if it wants less reven-qe their business to know what price will already intolerable inflation rate. In and poorer economic growth so badly that yield the maximum revenue for each 1979, we could expect a deficit of $70 bil­ it is willing to penalize all those "million­ product line, and do not raise prices be­ lion with Roth-Kemp, rising to $100 bil­ aires" will it push for higher upper-income yond that point. They have the advant­ lion in 1980 and higher in 1981. tax rates.e age of the market quickly determine the Unfortunately, such massive spending point at which a price rise results in cuts will be almost impossible to achieve, because huge portions of the Federal THE ROTH-KEMP TAX BILL negative effects. Sadly, in Government, we do not have the advantage of the budget are "offi limits" as far as many same feedback mechanism. It is one of Members of Congress are concerned. HON. EDWARD W. PATTISON the oldest problems of Government. There are simply too many Members of OF NEW YORK In my view, the theory behind Roth­ this body who blindly vote for every new IN THE HOUSE OF REPRESENTATIVES Kemp has several flaws. First of all, weapon the Petagon or the Armed though the Kennedy tax cut did ap­ Services Committee requests; for every Monday, August 7, 1978 pear to successfully stimulate the econ­ new public works project, no matter how e Mr. PATTISON of New York. Mr. omy, there are serious questions as to wasteful, that will bring Federal money Speaker, when the Revenue Act of 1978 what really caused the economic expan­ into a colleague's home district; and comes to the House floor on Thursday, sion of that period. In fact, Walter Hel­ for every increase in a program advo­ August 10, the Roth-Kemp bill, H.R. ler, one of the principal architects of the cated by some well-organized, well-fi­ 8333, will be offered as a substitute. If Kennedy tax cuts, wrote in an article nanced pressure group. We simply can­ the Rules Committee allows the Roth­ published in the Wall Street Journal on not enact the Roth-Kemp bill until Kemp bill to be offered-and I would July 12: we are able to cut every aspect of the urge that it do so in order for the issue To attribute to the 1962-64 tax cuts all the Federal budget with the same enthu­ to be fully debated-! would urge my expansion and revenue increases experienced siasm that we have for cutting social wel­ colleagues to opoose it. in 1963-68 boggles the mind. Among other fare programs. This year will probably go down in things, it totally ignores ( 1) the huge (over-) But the supporters of Roth-Kemp history as the year of the tax revolt. stimulus of Vietnam expenditures and (2) avoid the problem of making the politi­ In many respects, this is a good thing. four payroll tax rates and base increases in cally difficult choice of saying where those years as well as $6 billion of revenue the cuts will occur. Indeed, they say that None of us in Congress can say that our from the 1966 Tax Act. taxing and soendin g policies do not need no cuts will be necessary because so greater scrutiny. But this does not mean Thus, we are deluding ourselves and much new revenue will be generated. that we can enact tax cuts and tax re­ the American people if we claim that we How convenient-all pleasure and no forms without carefully analyzing their can magically reenact the economic ex­ pain-a politician's heaven. probable effects. Regardless of the polit­ pansion of the 1960's, when inflation was My final objection to the Roth-Kemp ical pressures which each of us feel, we very low, and the economy had a large bill is that it is aimed to provide the most betray our public trust when our votes amount of unused capacity with which benefit to upper-income taxpayers. The reflect elect.ion year posturing rather to absorb the new demand without in­ Treasury Department estimates that 86 than a genuine concern for social fair­ flationary effects. percent of the tax reductions would go to ness and our country's prosperity. In order for tax revenues to increase, those earning more than $30,000; 53 per­ The Roth-Kemp bill will, over the next as supporters of Roth-Kemp project, the cent of the benefits would go to those 3 years, cut individual income taxes by Gross National Product would have to earning over $100,000. $98 billion and corporate taxes by $15.5 rise by $550 billion, or 20 percent. We If we have the opportunity to vote on billion. Tax cuts of this magnitude are can cut taxes overnight. Roth-Kemp Roth-Kemp, I hope my colleagues will appealing, especially l.n an election year. phases in tax reductions over a 3-year have the wisdom to vote no.e I only wish the proponents of Roth­ period. Unfortunately, increasing pro­ Kemp could prove to me that their pro­ ductive capacity is neither so easily nor posal will not rutn the American econo­ so quickly accomplished. And if H.R. POUGHKEEPSIE RAIL BRIDGE my. I could then vote for H.R. 8333, and 8333 becomes law, and we do not increase AMENDMENT life would be much ea.sier. our productive capacity by one-fifth over Those who advocate Roth-Kemp have the next 3 years, we will experience a HON. BENJAMIN A. GILMAN introduced us to the "Laffer Curve." rapid increase in the inflation rate. This OF NEW YORK This is economist Arthur B. Laffer's will be caused by an increase in spend­ IN THE HOUSE OF REPRESENTATIVES theoretical diagram which demon­ able income which is not matched by an strates that increased tax rates cause an increase in the production of goods and Monday, August 7, 1978 increase in Government revenues up to a services. • Mr. GILMAN. Mr. Speaker, I would certain point, but after that point, taxes Furthermore, it is assumed by Roth­ like my colleagues to be aware that I begin to take such large portions of in­ Kemp supporters that taxpayer will use have introduced an amendment to the dividual income that people lose the in- their tax cut to increase their produc- Regional Rail Reorganization Act on be- CXXIV--1560-Part 18 24810 EXTENSIONS OF REMARKS August 7, 1978 half of myself and the gentlemen from (h) The Poughkeepsie Bridge, being the for Anatoly Shcharansky and in Kaluga for New York (Mr. FISH, Mr. LUNDINE, Mr. only rail crossing over the Hudson River Alexander Ginzburg. McHUGH, Mr. OTTINGER, and Mr. PAT­ south of Albany, is of importance to our While the Ginzburg and Shcharansky National Security. trials have drawn worldwide notice and pro­ TISON), the gentlemen from Connecticut (i) The Selkirk Rail yard is frequently tests from Western governments, the 49- (Mr. COTTER, Mr. DODD, Mr. GIAIMO, Mr. closed due to bad weather; year-old Petkus' situation has been virtually McKINNEY, Mr. MOFFETT, and Mr. SARA­ (j) Former and potential rail traffic in ignored, said Father Oasimir Pugevicius of SIN), the gentlewoman from New Jersey Southern New England and Southern New Brooklyn, N.Y., executive director of Lithu­ tems, of either inaccurate or misleading informa­ this?" Mitouer: "Oh, yes, definitely. There's we have to hope that they won't be obsoles­ tion used to buttress those biases, the tailor­ anger. Ah, we deal with this in class all the cent in ten years. ing of film-clips to fit a preconceived story time . ... One of the things that we do is line. But we have no choice. We must under­ create an extended family environment where What follows is a case-by-case examination the children can express their feelings and stand that our freedom is not preordained, of "facts" used on the program. For each and that without a strong defense we won't deal with the feelings toward their home­ case we first print the transcript from the life ... ." be able to keep it. So much time has been show and then follow it with the facts dis­ lost already that, even if we start now, we Fact: Mitouer contacted producer DeCola closed by our investigation. A copy of this about filming his class, a special one cover­ are in for some rough and scary sailing in article is being sent for response to the the years directly ahead. ing students in grades 3 through 5 at Tam president of NBC. Marin County Supervisor Valley School in Mill Valley. Students join Barbara Boxer is requesting formal investiga­ Mitouer's unstructured class only by special tions by the Federal Communications Com­ request, many because of problems with con­ mission and the National News Council. ventional schooling. Does Mitouer really be­ MARIN COUNTY WANTS IT ALL NOW, The record: lieve his students are typical, as he said on THE FACTS, THAT IS NBC. Newman: "Every so often some public TV? "I meant they're white, they're middle figure winds up and tells us that our children class, they fit all the criteria," Mitouer said are the future. That's true of course. It is also this week. "But they cut out the little smile HON. JOHN L. BURTON true that by the influence we have on our I had before that, when they asked me the OF CALIFORNIA children, we help to shape that future. Cer­ question. The kids I teach are not typical tainly parents here in Marin County are and I don't treat them typically. The single IN THE HOUSE OF REPRESENTATIVES helping to shape it by the ideas and attitudes parent figure of 75 percent is right for my Monday, August 7, 1978 and values that they are now passing along. class, but it would be lower for all the other This is a birthday party for two Marin County classes. I spend considerable time and energy e Mr. JOHN L. BURTON. Mr. Speaker, youngsters-one 10, the other 11. The party getting the children to be real about their on the evening of July 20, 1978, the resi­ was arranged by a Mill Valley firm that feelings. A lot more time is spent in my class­ dents of an entire California county, promises to make dreams come true, at a room dealing with emotions than in any Marin County, were portrayed by NBC- price, $225. The fantasy these youngsters other classroom at Tam Valley. A lot more." 24814 EXTENSIONS OF REMARKS August 7, 1978 Mitouer says that DeCola did not visit any nothing about. Had I known what kind of rainbow. Many people might feel that if they other classroom in Marin County. show it was going to be I wouldn't have can't be happy here, ah, there's no place elSC:~ NBC. Newman: "Shirley (Luthman] be­ participated at all. It certainly wasn't a rep­ that's going to provide more happiness for lieves that children can take care of them­ resentative show of Marin County." them." selves .... For Kathy (Burke), who has mixed NBC. Beth Fruth, in hot tub: "For the first Fact : Acco,rding to Bob Mielke of the feelings about her role as a mother, Shirley's time in my life I completely took; I didn't Center for Health Statistics in Sacramento, advice about 'the parenting trip' laid the give anything." Newman: "Whatever the rea­ Marin's 1976 suicide rate was 23.5 per 100,000 groundwork for some imp_ortant sons, narcissism thrives in Marin County.... population. The California rate was 17.6 and changes ...." Burke: "So right the day This is called the Secret Garden ... one hun­ the national rate was 12.5. Within California, before Thanksgiving I took off to go to dred eighty dollars buys four hours of the Marin's rate of 23.5 places it fourteenth Esalen, and not knowing if I was coming pleasuring attentions of Ray Stubbs and Wal­ among counties. Lake i.s first with 40.6; San back; that's how strong it was. It was pain­ ter Wilding, who tell us that explicit sex is Franci&::o is sixth with 29 .5. During the past ful. When I left here, Brian was really upset; forbidden .... Massage parlors and the like ten years Marin's rate has stayed approxi­ he wanted to send the cops after me, you have been available to men for centuries, but mately the same while the national rate has know, to bring me back.... " Brian: "I there have been few opportunities for women increased by 25 percent. told her that it's against the law for her to buy sensual pleasure from strangers. In Adds Reubin: "When you make compari­ to do that.. .."Kathy: " .. . I felt like ... Marin County, it seems that there are enough sons between areas you get very biased sta­ I was deserting them." women who can afford it, and enough women tistics. Different co:roners and different social Fact: This segment is edited to make it who want it, to make such a service a reality." pressures can really influence suicide rates. appear that Kathy Burke left her four chil­ Fact: Stubbs and Wilding have been Secret Marin is more statistically honest and that is dren alone while she went to Esalen. In fact, Garden consultants, part-time, for two years. a partial re·ason for its higher statistics. The she asked her mother to come up from Palm During that time, says Stubbs, they have had bridge? Suicid·es off the Golden Gate Bridge Springs to stay with the children, which her 60 clients. Of this 60, 22 have come from are less than 5 percent of all the suicides in mother did. Says Kathy Burke: "Brian fe~ls Marin and 38 from outside the county, from the Bay Area. More people who live in the upset about the program. He feels it looks points as distant as Denver, Los Angeles, Chi­ East Bay jump off the Golden Gate Bridge like I walked off and left them alone. I talked cago and New York. These clients were at­ than do people who live in Marin. with Joe (DeCola), on film, about how won­ tracted by articles in Viva, Forum and Play­ "What they showed on TV was a very mi­ derful it was that my mother came out to be girl. One of the out-of-county clients. was nute section of a 40-minute interview. I with the children while I was gone. I needed producer DeCola, who had a free get­ listed about six or seven factors of our suicide her and she came." acquainted session. rate and they chose the one that fit in with their theme of the end of the rainbow. The NBC. Nancy McKinley, recent arrival from Of the Marin women who have availed themselves of the service, abt>ut half have end of the rainbow phenomenon also exists Ocean City, N.J. : "Yesterday, the first day I in Hawaii; they have a very high suicide rate. was here, I heard that Marin County ha.s a received it in exchange for services such as bookkeeping and secretarial work. Stubbs We have an elderly population that you do 75% divorce rate, which does seem incred­ not see in that program and older people ible." says they see the service not as an indulgence of the idle rich, but as a nurturing experience have substantially higher suicide rates. Fact: Nancy McKinley cannot remember for hard-driving professional women. Says What they showed me saying was true. It's who gave her this figure. Neither the Marin Wilding, "We give it free to professicnal just that they edited the program to show County Planning Department, the County women we know, like doctors and counsel­ what they had initially preooru:eived. Those Clerk nor the demographer for the Associa­ ors-waterfalls with no streams behind we~e people from New York and I talked to tion of Bay Area Governments say they sup­ them, women who really put things out in them about my concerns that I didn't want plied such a figure. There is no agreement, the world." Beth Fruth's one-hour session to portray Marin as this de·a th trap where either, on how a percentage divorce rate was staged for NBC. She did not pay for it. people come to kill themselves, that there might be computed. According to the San Neither did she pay for the regular session a.re a lot of fine things about Ma.rin. I men­ Francisco office of the Department of Health. she received six months earlier. That was a tioned that people are very involved in their Education, and Welfare, divorce is measured birthday present from her boyfriend, who had community here and o·ur volunteer program in terms of occurrences per 100,000 popula­ her transported afterward to a fancy restau­ with 170 volunteers is just one of many. tion. Using that standard system, Marin rant where he was waiting for her with a They weren't w1lling to show any of that. County in 1976 had a divorce rate of 6.6. bracelet and a bottle of champagne. In sum, That didn't make it onto the program be­ This placed it in a tie for tenth among Cali­ during a two-year period about half a dozen cause it was antithetical to the mood of the fornia counties with Sutter. Tied for first Marin women have paid for a Secret Garden 'I Want It All Now' attitude of the show." were Shasta and Del Norte with a rate of 8.3. session. It is not a common event in the life Marin's suicides (56 in 1977) outnumber traffic fatalities (23 in 1977) because Marin NBC. Sandra Robbins: "I did the est train­ of the county. It is women from outside ing, the e-s-t training, shortly after I moved Marin who have "made it a reality." . has an exceptionally low number of traffic fatalities. Marin's 23 traffic deaths a.re rad­ . here and I think that probably made one of NBC. Newman: " ... there are more joggers the biggest major jumps in my life. Ah, it in Marin." ically fewer than figures for neighboring counties: Sonoma 73, San Francisco 70, San became okay to do anything as long as you FACT: According to Ray Hosler of Runners were honest about it .. , . If vou could tell Mateo 74, Contra. Costa 116 and Alameda 171. World magazine, there are more joggers in Marin's suicide figure is lower than all these the other person that you didn;t like the hair Honolulu, Hawall than in any other area in growing on the end of their nose . . . you other county-wide traffic fatality figures. the United States. (According to public affairs officer Roland could tell them in any way as long as you NBC. Newman: " . .. and Marin has more could tell them the truth." MelLor of the California Highway Pa.trol, the foreign cars. To Detroit's dismay people here stancta.rd ba.s:e for establishing accident rates Fact: Sandra Robbins: "They cut out a spend big money on Mercedes, Porsches and is per hundred mlllion miles traveled. Such sentence in there and it completely reversed BMWs. More than half of Marin County's cars figures are available by state, but not by the meaning of what I said. What I said was, come from overseas." While Newman is saying couruty, so only total figures are available for I took the training and I got a lot out of it this, the only foreign cars shown are these comparison.) but the thing I object to is that after peopl~ three German makes, giving the impression NBC. Newman: "Gary Near is an attorney finished the training, all of a sudden it be­ that Marin's most common mode of travel is in private pr:actice in San Francisco. He lives came okay to do anything as long as you expensive foreign cars. in Marin County." were honest about it. I was trying to get Fact: According to Motor Registration Fact: Gary Near has a weekend place in across that I didn't like this lack of concern News, 59 percent of Marin's 66,000 registered InverneSIS. He lives on Russian Hill in San for other people, and they changed it com­ Francisco. pletely." cars of ten years of age or newer in 1977 were foreign. However, of these 38,701 foreign cars, NBC. Newman: "The average price of a NBC. Marin Superior Court Judge Richard 73 percent, or 28,328, are inexpensive Class 6 house in Marin County is $91,000. That is Breiner: "Marin has a reputation for a loose vehicles such as VWs (9151), Toyotas (6382) 60% more than the national average. And swinging lifestyle, probably more so than and Datsuns (4269). Expensive Mercedes that's just an average. In some neighborhoods any other county in the state." (1800), BMWs (1500) and Porsches (1043) cottages sell for $175,000 (shot of Hill & Co. Fact: Judge Breiner: "Prefaced to that make up less than 7 percent of Marin's regis­ listing), with regular sized houses bringing statement was a disclaimer which they cut trations. The most popular makes in Marin up to a million and a quarter apiece (shot of out, my comment that you can't generalize are Ford (12,400) and Chevrolet (10,700). houses along Belvedere's West Shore Road). because Marin does not have that reputation NBC. Newman: "Marin County's suicide Fact: According to the Marin County generally, but some people think it does. rate is well over twice the national average. Board of Realtors, the average price of They asked me a lot of questions about di­ More people die by suicide than in automo­ Marin homes sold in 1977 was $92,615. A "cot­ vorce, but none of that was on the air. I bUe accidents. Many leap from the Golden tage" is considered to be a two-bedroom, one­ assumed that thi.s was the purpose for which Gate Bridge. We wanted to know why so bath, woodsy home. No home of this descrip­ they had taped me, but aoparently it wasn't many people wanted to end the Marin County tion has ever sold for $175,000 in Marin that at all. They just asked me in passing good life. So we asked the director of t.n~ County. The Hill & Co. listing used as the about open marriages. They approached me Suicide Prevention Center here, Dr. Richard visual with Newman's "cottage" voice-over to talk about divorce and I wound up as an Reubin." Reubin: " ... in many ways Marin is described thusly by the agent: "Magnifi­ expert on swinging lifestyles, which I know County is looked upon as the end of thts cent new home: charming and spacious. August 7, 1978 EXTENSIONS OF REMARKS 24815 Shingled masterpiece set in tranq,uil red­ "Mental health in Marin County ... is not Now' so you can get an idea of what the doc­ wood grove. Superior craftsmanship. Formal very good ... I see the number of tranquil­ umentary is an about.'' dining room, skylights, decks, views. Four izers being dispensed, I see the amount of Then follows a 52-second film-clip, the bedrooms, 3% baths. Sauna. $269,000." The sleeping pills being dispensed ... We have first 12 seconds consisting of a disclaimer by homes on Belvedere's west Shore Road cur­ over 100 psychiatrists who are practicing ... Edwin Newman: "Not everyone who lives in rently sell for $250,000 to $300,000 and no If we have such a fantastic good life and if Marin County is rich, and not everyone who home in Belvedere has ever sold for "a million the folks are making all this money, why lives here is divorced or is enthusiastic about and a quarter." aren't they happy?" powderous substances such as cocaine, or NBC. Newman: "On Tuesday mornings Fact: Pharmacist Mayer: "Am I mad about about hot tubs and therapy." As Newman Shirley Luthman, a family counselor turned that thing! Oh, did they give me a hosing! voices these words, there are scenes of boats guru, conducts sessions here that are called '!hey came into the pharmacy and they in­ and waterfront restaurants. 'Getting a Shot of Shirley.' " terview me for 45 minutes. I told 'em I had a This is not a film-clip from "I Want It All Fact: The name of the session is "Shirley wife and four kids; I'd been married for 20 Now." This scene with these words never ap­ Luthman's Drop-In Group." years and on the block where I live nobody peared in the show. NBC. John M. Weir, Ph.D., Marin County has been divorced. I talked a lot about health The words were heard, and the visuals were alcoholism expert: "The county has clearly care and how good things had gotten in this seen. But not together. On "I Want It All . . . the highest incidence of alcohol con­ county. How I'd seen it go from the Sixties Now" when Newman spoke his 12-second dis­ sumption per capita, and also by the general and the flower children and how it had got­ claimer, the visual was of runners warming kinds of things that are taken to be exam­ ten so much better. The kids off the hard up for the Pacific Sun Marathon. When ples of problems with alcohol such as drunk stuff. We talked about a lot of health things, waterfront scenes were shown, the audio driving arrests, public drunkenness. . . .'' about the positive things like the ecology was of Newman describing the number ot Fact: John M. Weir, Ph.D., clinical direc­ movement. About how I've been on the board yachts and seaside restaurants in Marin. Ap­ tor of New Perspectives: "Our agency deals of Temple Rode! Shalom for twelve years and parently Newman's 12-second disclaimer and with kids and that's what we were talking we've just had 150 young fam111es who've the boat scenes were patched together as the about. At one point she (associate producer joined recently. In five years we've gone from best effect for DeCola's appearance. Jean Wilson] said, "How do you know that 300 to 500 fam111es. About how these young No big deal. Except that patching things alcohol is a bigger problem in Marin than fam111es are doing things with their kids together for the best effe.ct, and announcing elsewhere?' Well, that's really not my bag. much more than five years ago. I did say we that it is real, is a method of news presen­ That's Andy Mecca and the county. So I was had problems with mental health, suicide tation which poses extraordinary problems kind of stumbling around, trying to remem­ and alcoholism, but then I said that as far for a television viewer trying to separate truth from fiction.-8TEVE McNAMARA. ber what was in the Cal•ahan Study, which as I can see things are really 150% better. I think the pills, the tranqu111zers are much is the main one, and so she had me off guard. less than they were five or ten years ago. I I was trying to recall what kinds of indices think DeCola did me a disservice personally. were used and in that sense I'm sure I mis­ I talked about health things, about people CETA PROGRAM spoke. I haven't seen the figures but my guess out with their kids. The family structure get­ would be that probably the number of drunk ting back together-things like you didn't driving arrests and cases of public drunken­ see five years ago. Those kind of things he HON. TED WEISS ness is quite low." cut out, he never mentioned. This was just a Andrew Mecca, Ph.D., director of Marin hatchet job." OF NEW YORK County's alcohol program: "The thing that's IN THE HOUSE OF REPRESENTATIVES unique about Marin is that there is very lit­ PARCHED TOGETHER tle public drunkenness.'' Monday, August 7, 1978 Figures supplied by the California High­ The dominant theme of "I Want It All Now" is that there is in Marin County a pre­ • Mr. WEISS. Mr. Speaker, the Wash­ way Patrol show that with the exception of ington Star recently published an article Napa County, Marin County ha.s by far the occupation with self. Under ordinary cir­ lowest number of accidents associated with cumstances it is difficult to make well­ by Lance Gay which focuses on the prob­ drunk driving in the nine counties of the grounded assessments of this type about an lems and the positive activities of the entire community. However, Marin County is CETA program. One abuse of the CETA Golden Gate Division of the CHP. During a special case. For two years the county faced 1977 Marin had 202 such accidents, while a water shortage unparalleled in the nation. program to which Mr. Gay refers con­ Napa, with little freeway mileage, had 99 and Hence it was possible to gauge community cerns the use of CETA funds for political the other seven counties averaged 469. In response in something as simple as gallons patronage. terms of drunk driving arrests, CHP figures of water consumed per day. During subcommittee consideration of for 1977 show Napa again the lowest with 466, Before the shortage, during the year 1975, H.R. 12452, the 1978 amendments to the Sonoma with 1073 and Marin with 1677. The average daily consumption within the Marin Comprehensive Employment and Train­ remaining six counties averaged 3205, or Municipal Water District was 48 million gal­ ing Act, I offered an amendment to title roughly two times the number of Marin lons per day, or 120 gallons per day per in­ arrests. dividual (not including commercial use). II which establishes an objective system According to CHP public affairs officer Ro· Faced with radically reduced supplies, the for local selection of CETA employees. land Mellor, all this data was also given to district eventually proposed a 57 percent re­ The provision-which is now part of H.R. NBC. duction in consumption, to 12 million gal­ 12452-is based on the placement system NBC. Newman: "In per capita income, lons per day, or 46 gallons per person. In­ designed by the Berkeley, Calif., prime Marin is one of the ten richest counties in stead, customers voluntarily reduced con­ sponsor; other areas of the Nation, in­ America." sumption by 65 percent, to 9 million gallons cluding Broward County, Fla., employ Fact: According to the Bureau of the Cen­ per day, or 38 gallons per person. Even now, sus in Suitland, Maryland, the most recent with no restrictions, consumption has rise to similar systems. year for which per capita income figures are only 27 million gallons per day, or 90 gallons Under this system, each prime sponsor computed in 1974. During that year Steele per person, a 25 percent reduction from 1975. will establish priority for CETA place­ County, North Dakota led the nation in per Says Dietrich Stroeh, general manager of ment based on an objective point system. capita income with a figure of $12,124. Marin the water district: "In the water industry, The Berkeley program bases points on County was twenty-second with $7150. An­ Marin was considered a marvel, and we still criteria which include employment sta­ other common measurement of wealth is me­ are. We are now looked up to as the future tus, household status, employability sta­ dian household income, which is computed of what happens clear across the country. each year by the Survey of Buying Power at I'm asked constantly to go back and speak tus, age, educational status, sex, handi­ Sales Management Magazine. The most re­ to groups on how we do it. We had a num­ cap, and so forth; under H.R. 12452, each cent year for which figures are available is ber of discussions with President Carter's locality will determine its own criteria 1976 when Ma.rin County ranked twelfth in people when he developed his water policy. based on local priorities and conditions. the nation. We've had a lot of input on state water The Education and Labor Committee NBC. Bob Gulko: "One of the local news­ policy. It's based on the fact that it can be incorporated this provision into the papers, the Pacific Sun, has a section where done and this is where it was done." CETA legislation because of its concern they list the births and deaths and ... mar­ No mention of this unique sociological ex­ about fraud and abuse in the program. riage licenses issued, divorces [applied for] perience was made on "I Want It All Now." The use of an objective system for place­ and then final divorces. I mean that's a very ment insures that local officials will not common thing. And I would guess that there PATCHED TOGETHER are probably more divorces than births, be able to use CETA positions intended The blase attitude of TV is neatly mus­ for the structurally unemployed for their deaths and marriages all put together." trated by an occurrence from "Saturday Fact: In a recent one-month span there Live" on Channel 4 last Sunday. NBC pro­ own political purposes. were listings in the Sun of 64 births, 90 ducer Joe DeCola was a featured guest. Be­ I would like to commend Mr. Gay's deaths, 159 marriage licenses issued (total fore he was questioned, show host Sam van article to my colleagues. He presents an 313) and 107 dissolutions applied for. Zandt said: "First we want to take a look at o·bjective discussion of the CETA NBC. Sausalito pharmacist Fred Mayer: a little blt from the clip from 'I Want It All program. 24816 EXTENSIONS OF REMARKS August 7, 1978

Is JoB PROGRAM A BOONDOGGLE? About 125 of those will be auditors and some St. Louis after investigation showed that the (By Lance Gay) 25 investigators. In addition, some 90 special cost per CETA employee there was $17,872- In a hypertrendy San Francisco suburb, 43 investigators will be added to DeMarco's staff five times the national average of $3,761-and people are working in a $575,000 CETA pro­ to look into organized crime matters only that almost two-thirds of the city's employees gram compiling a register of cases of child under an agreement ·with Justice. were receiving CETA funds. Witnesses at La­ abuse and incest. DeMarco said most of the problems in bor Department hearings also charged that In North Carolina, 74 employees are en­ CETA programs crop up with the "subgrant­ Mayor William E. Mason had been asking all gaged in a $318,601 CETA project to stamp ees." Under .a. decentralized system of admin­ CETA staffers how they had been voting. out witchweed, a parasitic plant that kills istration, local CETA programs-there are Labor Department officials are somewhat corn, sugar cane and rice. thousands of programs nationwide-are ad­ reluctant to name other cities under investi­ In New York Mills, Minnesota, five CETA ministered by some 450 prime sponsors, usu­ gation because of a controversy that devel­ employees are working in a $25,000 project ally state or local governments. oped earlier this year when the department to restore a 19th century Finnish-American Remembering the failures of prior poverty volunteered that it was looking into pro­ homestead as a theater. programs, the Carter administration decided grams in two states and nine cities. All across the country, thousands of peo­ not to establish a centralized CETA agency One of those was Cass City, Mich., a small ple are at work under the Carter administra­ or a ·corps of poverty bureaucrats to oversee town in the northern part of the state. The tion's massive Comprehensive Employment it. Part of the· reason for this is that CETA disclosure brought considerable embarass­ and Training Act programs-a $10.4 blllion is designed primarily as a transitory program ment because after a lot of publicity, it project some criticize as a boondoggle and to be curtailed if unemployment declines in turned out that the "~candal" involved only others praise as the best jobs program since the early '80s. a complaint by a laid-off CETA employee that the days of Franklin D. Roosevelt's New Deal. The aqministration's emphasis on reduc­ he had been denied his pension rights. CETA is the wild card of federal programs, ing unemployment as quickly as possible DeMarco said that about 75 percent of his covering the country with programs and proj­ resulted in a massive change in the CETA office's investigations originate in complaints ects, some routine, some innovative. program, which doubled in size in the nine­ from participants in the programs. There have been some questionable ones, month period ending last May. Now some He predicted that placing the auditing as recent disclosures of problems of the D.C. 750,000 persons are employed in 18-month functions of the program in his office will "be City Council's CETA program and other scan­ jobs-a level that the administration will a great deterrent to abuse or fraud in the dals large and small have detracted from maintain for the next year or so. system." · what the administration believes is one of The drama tic increase in the program Theoretically, each of the programs is sup­ its most successful programs. brought with it growing pains and prob­ posed to be audited every two years. Under CETA funds have been involved in some lems-the most pervasive headache being the pending CETA reauthorization bill a ma­ surprisingly diverse projects. For example, politicians trying to use the office to perpet­ jor loophole in the current law will be closed last April in New York a squad of undercover uate the political machines in their areas. and the Labor Department will be given clear agents earning $8,000 to $9,000 a year under A year ago the main problem was "substi­ authority to see the records of CETA sub­ the CETA program, broke up a cigarette tution"-a practice under which local gov­ grantees. The proposed changes also wlll smuggling ring. ernments would use CETA money instead of make it a federal crime to destroy the In Wisconsin, a group of CETA employees their own to hire employees they would have records. are recording the sounds of quail calls . . . hired anyway. Some officials believe that at "We've had instances where records are nOit In Cleveland, 1,062 persons, mostly teen­ one time as much as 70 percent of the public auditable because they've been soaked in agers, are working in CETA summer programs service jobs filled with CETA funds would water or lost," DeMarco said. painting murals and giving summer con­ have been filled anyway by city and state "Now we have a mechanism to look at certs in the parks ... Dozens of CETA-paid governments, but Ernest Green, who heads them and to take preventive steps and sys­ park employees in New York are hired to the CETA program, said recent studies show tems checks to head off problems," he said. pick up animal droppings . . . In Boston substitution now may be as low as 18 DeMaroo praised the work of the FBI in CETA employees renovate houses of the el­ percent. investigating CETA fraud and kickbacks. derly ... In Tennessee, others are building But the major concerns today are with po­ The FBI is currenrtly probing allegations ramps for the handicauped and elderly . . . litical patronage and abuse such as that in­ of fraud in some srubgrantee programs in Thirteen young people in New Britain, Conn., volving the D.C. City Council whose CETA Texas, Oklahoma, and Atlanta. The Okla­ are putting out their own newspaper, "The money was used to bolster its staff. homa caSte involves alleged embezzlement of Youth Perspective." Perhaps the most star.tling instance in­ some $4,000 in funds from a youth shelter Labor Secretary Ray Marshall maintains volving use of CETA for political patronage in Enid while in Texas the charges involve that despite the problems CETA is working came in Chicago, where the Labor Depart­ alleged siphoning of funds from a CETA pro­ effectively and efficiently. ment has demanded the city repay almost gram by two pipefitters. "Sure, we've had a few well publicized ex­ $1 million in CETA money allegedly The FBI has also been looking into a situ­ amples of abuses within CETA," he acknowl­ missoent. ation in Dade County, Fla., which resulted edged. "But where problems exist, we have CETA jobs were doled out by Chicago's last week in the ind1ctmen1t of Dade County moved aggressively to take vigorous actions." Democratic political machine through Council Presddent Nathaniel Dean. The And, he insists, "All of the accusations of requiring applicants to have referral letters charges involve the alleged diversion of some abuses within the CETA program add up to from ward committeemen. Applications from $22,000 in CETA funds for the use of a gaso­ only a tiny fraction of 1 percent of the en­ line station Dean owllJS and a charge tha,t hard core unemployed without such refer­ Dean soent $300,000 on a farm worker project tire program." ences, on the other hand, were set aside in "My gut reaction is that it's a good pro­ on which no trainees ever served. stacks or under tables in unopened mail CETA programs in affiuent Westchester gram and the part of it that's not doing sacks. County, N.Y., also are under fire. The district good we're trying to correct," said R. c. Patronage also is involved in a spate of attorney there ha.s launched a full investiga­ "Rocky" DeMarco, head of the Labor Depart­ investigations by Labor's regional offices. tion into what he describes as "pervasive ment's Office of Investigations. For example, Philadelphia's CETA office­ corruption" in the $24 million CETA projects DeMarco said his office-established in which is responsible for the D.C. City Coun­ there. April by Marshall to look into major abuse cil probe-is looking into charges that a In a program as large as CETA--and one and fraud of the CETA program and other dozen persons with close personal or politi~ put together and in place so hastily-prob­ department programs-currently is conduct­ cal ties to Baltimore County Executive Theo­ lems were· expected. Yet for its size, Labor ing about 50 investigations. But most of dore G. Venetoulis have filtered into federal Department officials contend that there have those, he said, are preliminary inquiries to jobs programs. The investigation into the been fewer instances of fraud than in com­ check out allegations of fraud. He estimated program there followed reports in The Bal­ parable federal programs. that about 10 percent of these will turn into timore Sun that some of the federally subsi­ full investigations. But as DeMarco put it, "we don't want the dized jobs are going to members of middle­ situation of having a policeman on every He said there are "six to eight" cases his class fammes with political connections to CETA participant." e office is working on in conjunction with in­ city officials and judges. vestigations by the Justice Department. Similar charges have been raised in con­ These involve serious crimin"ll allegations nection with CETA programs in Texas revolv­ such as embezzlement or kickbacks. AMERICANS NOT ENERGY ing around how Gov. Dolph Briscoe has been GLU'ITONS "From an investigative point of view, we running the programs. And Boston authori­ need resources," DeMarco said. "We do not ties hired a professional administrator for have sufficient people now to do other than their programs after charges of patronage HON. G. WILLIAM WHITEHURST respond to complaints that come in. and nepotism surfaced there last year. "No, I'm not satisfied because we don't In Philadelphia changes were ordered in OF VIRGINIA know if we have a handle on the programs CETA employment practices after it was dis­ IN THE HOUSE OF REPRESENTATIVES yet. We're just being reactive now. We don't closed that Mayor Frank Rizzo hired CETA Monday, August 7, 1978 have the resources at this time." employees to do political work. The pending Labor Dep::trtment authoriza­ In some instances of abuse, the Labor De­ e Mr. WHITEHURST. Mr. Speaker, the tion blll contains funds that will boost De­ partment has moved in to find another spon­ following article appeared in the Virginia Marco's investigative staff to about 200. sor for the program. This happened in East Observer on Friday, August 4, 1978. It was August 7, 1978 EXTENSIONS OF REMARKS 24817 written by Mr. Gordon Dillon, the editor · He said that's more than the present daily Any changes in committees scheduling and publisher of the Observer, and I imports of about 7 to 8 million barrels. In will be indicated by placement of an as­ believe that my colleagues will find it addition to shale, Petzrick said the nation had another 100 billion barrel potential in terisk to the left of the name of the unit interesting. "Tar Sands". The method of extracting the conducting such meetings. The article follows: oil has already been perfected in Canada. Meetings scheduled for Tuesday, Au­ UNITED STATES HAS 1,000 YEAR SUPPLY OF OIL THE TRADE DEFICIT gust 8, 1978, may be found in Daily Di­ (By Gordon Dillon) If the shale project is allowed to proceed, gest of today's RECORD. The United States has over a 1,000 years of the trade deficit will be almos-t wiped out MEETINGS SCHEDULED oil supply in shale deposits that are unable over night. to be developed because of objections by the Superior Oil Company has developed a AUGUST9 U.S. Environmental Protection Agency. metho9. to also extract soda ash and alumina 9:00a.m. According to Paul Petzrick, Acting Direc­ from the shale. Petzrick said, "We already *Agriculture, Nutrition, and Forestry tor of the Office of Shale Resources Applica­ produce soda ash cheaper than any other Nutrition Subcommittee cations at the Department of Energy, the U.S. nation ... and this would give us a corner To hold hearings on what information has "2 .2 . trillion barrels of oil in the rich on the world market." Soda ash is used in the is currently available to the public on shale deposits in the Green River Valley in manufacture of glass. food labeling and nutrition content. the midwest on U.S. owned land." Alumina can replace the bauxite ore used 322 Russell Building Petzrick said, "Development is commercial­ in making aluminum. ly feasible now," but has been held up for Commerce, Science, and Transportation over 5 years by the EPA and other environ­ The u.s. aluminum industry now imports Science, Technology, and Space Subcom- mittee · mental organizations. some 80 percent of raw bauxite. The domes­ The Energy spokesman called shale the tic source would make the country in­ To hold hearings to receive testimony nations most neglected natural resource. The dependent of foreign imports, further reduc­ from officials of the Department of richest deposits are in Utah, Colorado and ing the trade deficit. According to a source­ Energy on nuclear waste disposal. 235 Russell Building Wyoming. Shale wa~ formed by animal life Superior's plan involves a trade of land with in what used to be a prehistoric lake, but was the Interior Department, which has been Human Resources not churned underground and naturally held up by Assistant Secretary-Joan Daven­ To hold hearings on S. 3205 and S. 3309, heated to form crude oil. port, a rabid environmentalist. proposed Indochina Migration and To extract the oil from the rock it must be It has also been held up by the EPA. Refugee Assistance Amendments. heated. Petzrick said, "The EPA is causing prob­ Until 11:30 a.m. 4232 Dirksen Building The richest shale can produce 25 gallons lems. They are insisting on environmental 9:30a.m. or more a ton-with lower grades producing impact statement on the land exchange". Select Small Business 10 to 15 gallons per ton. He said Virginia, He said the EPA was also "insisting on a level To hold joint hearings with the House West Virginia, Kentucky, Tndiana and Penn­ of detail that one would really have to be Small Business Subcommittee on sylvania had "38 trillion barrels" in its shale able to build the plant to make the meas­ Antitrust Restraint of Trade Activi­ deposits. urements in order to answer the questions". ties Affecting Small Business, and He said, "But if you just take the 600 bil­ Subcommittee on Impact of Energy lion barrels in the richest deposits ... that's Why isn't the shale potential included in the nation's energy arsenal? Petzrick says, Problems, Environment and Safety more than all the reserves in the Mid-east." Requirements and Government on At the present rate of consumption, 6 billion "It is, it's just being overlooked". (Editor's note: The interview with Mr. Small Business, to examine the under­ barrels yearly, this, alone, represents a 100 utilization of small businesses and year supply. Petzrick was arranged by Patricia Bario, White House Associate Press Secretary.) The possible national initiatives to encour­ WAS $3.89 A BARREL Virginia Observer questioned the office about age small business. Petzrick continued, "Five years ago, Occi­ the administration's failure to mention the 424 Russell Building dental Oil said they could produce (oil from shale oil potential. Our second question '10:00 a.m. shale) at $3.89 a barrel." He said they had dealt with the ratio of energy and produc­ Appropriations been denied permission by the EPA because tivity. To consider H.R. 13468, making appro­ the air in the roadless, peopleless and indus­ priations for FY 1979 for the D.C. Gov­ try-free wilderness "is polluted" by hydro­ Does the U.S., in fact, use any more en­ ernment, and H.R. 12929, making ap­ ergy than other industrialized nation? De­ carbon emissions from sage brush. propriations for FY 1979 for the De­ Petzrick said during the delay "inflation partment of Energy press spokesman--Carl partments of Labor and HEW. in construction costs has been 400 to 500 per­ Gustin answered that question. The answer S-128, Capitol was a simple, "No". cent . .. the figure is now almost $20". Budget He said that Congress was considering leg­ The United States produces 32 percent of To mark up second concurrent resolu­ islation to allow $3 a barrel tax credit as an the world's gross national product and con­ tion on the Congressional Budget for incentive-plus "entitlements" to old oil sumes 31 percent of the world's energy. FY 1979. which is priced at $5.25 a barrel. He said the Japan, for example. . represents less than 3 6202 Dirksen Building two incentives would "bring the selling price percent of the world's population, consumes down to about $12", less than the $13.25 about 17 percent of the world's energy and Energy and Natural Resources charged by OPEC nations. As technology in­ produces about 17 percent of the world GNP. Public Lands and Resources Subcommittee creases, he expects down ward prices in the It takes energy to run an industry.e To hold hearings on S. 2475 and H.R. future. 10587, to improve conditions of the BARREN WASTELAND public grazing lands. Petzrick described the mid-west shale area 3110 Dirksen Building as a barren wa...c:;teland of rocks, "with an SENATE COMMITTEE MEETINGS Environment and Public Works eighth of an inch of topsoil". He said the Water Resources Subcommittee sparse vegetation posed a food problem for Title IV of the Senate Resolution 4, To hold hearings on proposed initiatives the native mule deer. According to Petzrick, agreed to by the Senate on February 4, designed to improve Federal water re­ the law demanded the firms to reclaim the 1977, calls for establishment of a system source programs transmitted by the land, and the end result would be a better for a computerized schedule of all meet­ President in his message of June 7, habitat for the few animals ings and hearings of Senate committees, 1978. He expressed concern that the EPA had 4200 Dirksen Building held up the project that could make America subcommittees, joint comm\ttees. and independent for 1,000 years. He said accord­ committees of conference. This title re­ Finance ing to the law "in theory, the sagebrush is quires all such committees to notify the · To mark up miscellaneous tariff -bills. violation of the law, and a human who rode Office of the Senate Daily Digest-desig­ 2221 Dirksen Building a jeep in that wilderness could be jailed be­ nated by the Rules Committee-of the Governmental Affairs cause of emissions". time, polace, and purpose of all meetings Permanent Subcommittee on Investiga­ THE SOL UTI ON when scheduled, and any cancellations tions The erudite government official continued, or changes in meetings as they occur. To continue hearings on organized crime "I think we need something which I de­ As an interim procedure until the activities with testimony on allega­ scribe as National Interest Legislation, that tions of corruption in the Atlanta computerization of this information be­ penitentiaries. says the best thing to do with this land for comes operational the Office of the Sen­ this country is to produce oil from it". He 1202 Dirksen Building warned, "It takes about five years to build ate Daily Digest will prepare this in­ Judiciary a plant", and if we don't hold them up with formation for printing in the Extensions Antitrust and Monopoly Subcommittee further impact statements, we could easily of Remarks section of the CONGREs­ To resume hearings on pricing practices get 5 to 10 millon gallons a day by the year sioNAL RECORD on Monday and Wednes- in the interstate trucking industry. 2000. day of each week. · 6226 Dirksen Building -·

24818 EXTENSIONS OF REMARKS August 8, 19.78 10:30 a.m. Governmental Affairs Guam, and on S. 1392, proposed Child Judiciary Permanent Subcommittee on Investiga­ Health Assessment Act. Business meeting on pending calendar tions 2221 Dirksen Building business. To continue hearings on organized crime 10:00 a.m. 2300 Dirksen Building activities with testimony on allega­ Banking, Housing, and Urban Affairs To hold hearings on S. 3304, proposed •Rules and Administration tions of corruption in the Atlanta pen­ To consider further the nominations of itentiaries. Federal Reserve Requirements Act. John Warren McGarry, of Massachu­ 1202 Dirksen Building 5302 Dirksen Building setts, and Samuel D. Zagoria, of Mary­ Rules and Administration Energy and Natural Resources land, to be members of the FEC. To continue to consider the nominations Energy Research and Development Sub­ 301 Russell Building of John Warren McGarry, of Massachu­ committee setts, and Samuel D. Zagoria, of Mary­ To hold hearings on S. 2860, proposed 3:00p.m. land, to be members of the FEC, and Solar Power Sa.telUte Research. Devel­ Conferees other legislative and administrative opment, and Demonstration Program On H.R. 9214, to amend the Bretton business. Act. Woods Agreements Act so as to au­ 301 Russell Building 3110 Dirksen Building thorize U.S. participation in the Sup­ 1:30 p .m. plementary Financing Facility of the Conferees AUGUST 15 IMF. On H.R. 13467, making supplemental ap­ 9:00a.m. S-116, . Capitol propriations for FY 1978. Energy and Natural Resources 7:00p.m. H-140, Capitol Business meeting on pending calendar Energy and Natural Resources 2 :00p.m. business. To continue mark up of proposed legis­ Select on Ethics 3110 Dirksen Building lation designating certain Alaskan To hold a business meeting. 9:30a.m. lands as national parkland. EF-100, Capitol Environment and Public Works 3110 Dirksen Building 3:00p.m. Resource Protection Subcommittee Conferees To hold hearings on H.R. 2329, proposed AUGUST 10 On S. 3084, authorizing funds for FY Fish and Wildlife Improvement Act, 8:00a.m. 1979 for housing programs. and H.R. 8394, proposed Refuge Rev­ Energy and Natural Resources 8-207, Capitol enue Sharing Act. Parks and Recreation Subcommittee 7:00p.m. 4200 Dirksen Building To hold hearings on S. 2560, to expand Energy and Natural Resources Human Resources the Indian Dunes National Lakeshore. To continue mark up of proposed legis­ Labor Subcommittee 3110 Dirksen Building lation designating certain Alaska lands To hold joint hearings with Finance 9:00a.m. as national parkland. Subcommittee on Private Pension • Agriculture, Nutrition, and Forestry Nu­ 3110 Dirksen Building Plans and Employee Fringe Benefits trition Subcommittee on bills relating to the Employee Re­ To continue hearings on what informa­ AUGUST 11 tirement Income Security Act (S. 3017, tion is currently available to the public 9:00a.m. 901, 2992, 3193, 1745, 1383, and 250). on food labeling and nutrition content. Energy and Natural Resources 4232 Dirksen Office Building 322 Russell Building To continue mark up of proposed legis­ 10:00 a.m. lation designating certain Alaska lands Banking, Housing, and Urban Affairs Commerce, Science, and Transportation as national parkland. To continue hearings on S. 3304, pro­ Science, Technology, and Space Subcom­ 3110 Dirksen Building posed Federal Reserve Requirements mittee 9:30a.m. Act. To continue hearings to receive testi­ Environment and Public Works 5302 Dirksen Building mony from officials of the Department To hold hearings on the nomination of Commerce, Science, and Transportation of Energy on nuclear waste disposal. Karl s. Bowers, of South Carolina, to 6226 Dirksen Building To hold hearings on S. 1699, proposed be Administrator, Federal Highway Diesel Fuel and Gasoline Conservation 9:30a.m. way Administration, DOT. Act. Judiciary 4200 Dirksen Building 235 Russell Building Administrative Practice and Procedure Judiciary Finance Subcommittee To hold hearings to examine the FBI's International Trade Subcommittee To resume hearings on the FBI Charter program to prevent and investigate To hold hearings on S. 2920, to ex­ and the role of informants. bank robberies. clude certain imported textile prod­ 2228 Dirksen Building 2228 Dirksen Building ucts from future tariff reductions. Conferees Select Small Business 2221 Dirksen Building To continue joint hearings with the On HR .. 12927, making appropriations Judiciary House Small Business Subcommittee for military construction for FY 79. Administrative Practice and Procedure H-140, Capitol Subcommittee on Antitrust Restraint of Trade Activ­ 10:00 a.m. ities Affecting Small Business, and To resume hearings on the FBI Charter Subcommittee on Impact of Energy Budget as it concerns domestic security. Problems, Environment and Safety To continue markup of second concur­ 2228 Dirksen Building Requirements and Government on rent resolution on the Congressional 9:00a.m. Small Business, to examine the under­ Budget for FY 1979. (Afternoon ses­ Commerce, Science, and Transportation utilization of small businesses and pos· sion expected.) Science, Technology, and Space Subcom­ sible national initiatives to encourage 6202 Dirksen Building mittee small business. Foreign Relations To resume hearings to receive testimony 2359 Rayburn Building East Asian and Pacific Affairs Subcommit­ from officials of the Department of 10:00 a.m. tee Energy on nuclear waste disposal. Budget To hold hearings on S.J. Res. 111, au­ 235 Russell Building To continue markup of second concur­ thorizing participation by the United Energy and Natural Resources rent resolution on the Congressional States in parliamentary conferences Business meeting on pending calendar Budget for FY 1979. (Afternoon ses­ with Japan. business sion expected.) 4221 Dirksen Building 3110 Dirksen Building 6202 Dirksen Building Rules and Administration 9:30a.m. To continue to consider the nomina­ Human Resources Commerce, Science, and Transportation Labor Subcommittee To hold a business meeting on pending tions of John Warren McGarry, of Massachusetts, and Samuel D. Zagoria, To continue joint hearings with Finance calendar business. Subcommittee on Private Pension 235 Russell Building of Maryland, to be members of the FEC, and other legislative and admin­ Plans and Employee Fringe Benefits Energy and Natural Resources instrative business. on bills relating to the Employee Re­ To continue mark up of proposed legisla­ 301 Russell Building tirement Income Security Act (S. 3017, tion designating certain Alaska lands 901, 2992, 3193, 1745, 1383, and 250). as national parkland. AUGUST 14 4232 Dirksen Office Building 3110 Dirksen Building 8:30a.m. 10:00 a.m. Finance Banking, Housing, and Urban Affairs Environment and Public Works Health Subcommittee To continue hearings on S. 3304, pro­ To hold hearings on several public build­ To hold hearings on H.R. 9434, to in­ posed Federal Reserve Requirements ing prospectuses. crease Federal Medicaid funding for Act. 4200 Dirksen Building Puerto Rico, the Virgin Islands, and 5302 Dirksen Building

' .. August 8, 19'78 CONGRESSIONAL RECORD- SENATE 24819 Judiciary AUGUST 21 in Federal courts for unlawful govern­ Citizens and Shareholders Rights and 10:00 a.m. men tal action. Remedies Subcommittee Banking, Housing, and Urban Affairs 2228 Dirksen Building To hold hearings on s. 3005, to broaden To hold oversight hearings on alternative the rights of citizens to sue in Federal mortgage instruments. AUGUST 24 courts for unlawful governmental ac­ 5302 Dirksen Buildin5 9:30a.m. tion. Banking, Housing, and Urban Affairs 3302 Dirksen Building Commerce, Science, and Transportation To continue joint hearings with the Judiciary To hold hearings on the nomination of ~mmittee on Governmental Affairs on Criminal Laws and Procedures Subcom­ Gloria Schaffer, of Connecticut, to be S. 2750, proposed Consolidated Banking mittee a member of the Civil Aeronautics Regulation Act. To hold hearings on S. 3270, proposed Board. 3302 Dirksen Building Justice System Improvement Act and 235 Russell Building 10:00 a.m. related bills. Commerce, Science, and Transportation 2228 Dirksen Building AUGUST 22 Aviation Subcommittee To continue hearings on s. 3363, pro­ AUGUST 17 9:00a.m. Human Resources posed International Air Tr>a.nspt>rtation 9:30a.m. Competition Act. Human Resources Labor Subcommittee To hold hearings on S. 2645, proposed 235 Russell Building To continue joint hearings with Finance National Art Bank Act. Judiciary Subcommittee on Private Pension 4232 Dirksen Building Administrative Practice and Procedure Plans and Employee Fringe Benefits 10:00 a.m. Subcommittee on bills relating to the Employee Re­ To resume hearings on S. 1449, proposed tirement Income Security Act (S. 3017, Banking, Housing, and Urban Affairs To continue oversight hearings on alter­ Grand Jury Reform Act. 901, 2992, 3193, 1745, 1383, and 250). 2228 Dirksen Building 4232 Dirksen Office Building native mortgage instruments. 5302 Dirksen Building 10:00 a.m. AUGUST 25 Banking, Housing, and Urban Affairs Commerce, Science, and Transportation 10:00 a.m. To continue hearings on S. 3304, pro­ posed Federal Reserve Requirements Aviation Subcommittee Banking, Housing, and Urban Affairs Act. To hold hearings on S. 3363, proposed To hold hearings on S. 2843, to provide 5302 Dirksen Building Inte::.-national Air Transportation Com­ for the striking of gold medallions. pet! tion Act. 5302 Dirksen Building Environment and Public Works 235 Russell Building Water Resources Subcommittee Judiciary To hold oversight hearings on the Judiciary Criminal Laws and Procedures Subcom­ physical and financial condition of the Administrative Practice and Procedure mittee Erie canal. Subcommittee To resume hearings on S. 3270, proposed 4200 Dirksen Building To resume hearings on s. 1149, proposed Justice System Improvement Act, and Foreign Relations Grand Jury Reform Act. related bills. Arms Control, Oceans, and International 2228 Dirksen Builiing 2228 Dirksen Building Environment Subcommittee To hold hearings on S. 2053, the Deep AUGUST 23 AUGUST 28 Seabed Mineral Resources Act, now 9:00a.m. 10:00 a.m. pending in the Commerce, Science, Human Reoources Judiciary and Transportation Committee. To continue hearings on S. 2645, pro­ Administrative Practice and Procedure 4221 Dirksen Building Subcommittee Human Resources posed National Art Bank Act. 4232 Dirksen Building To resume hearings on the FBI Charter Alcoho\ism and Drug Abuse Subcommittee as it concerns undercover operations. To hold hearings with the Govern­ 10:00 a.m. 2228 Dirksen Building mental Affairs Subcommittee on Fed­ Banking, Housing, and Urban Affairs eral Spending Practices and Open To hold joint hearings with the Com­ AUGUST 29 Government on S. 2515, dealing with mittee on Governmental Affairs on 10:00 a.m. occupational alcoholism programs. S. 2750, proposed ~nsolldated Banking 3302 Dirksen Building Judiciary Regulation Act. Administrative Practice and Procedure Judiciary 3302 Dirksen Building Administrative Practice and Procedure Subcommittee Subcommittee Commerce, Science, and Transportation To resume hearings on the FBI Charter To hold hearinJ<"S on S. 1449, proposed Aviation Subcommittee as it concerns undercover operations. 2228 Dirksen Building Grand Jury Reform Act. To continue hearings on S. 3363, pro­ 2228 Dirksen Building posed International Air Transportation SEPTEMBER 14 AUGUST 18 C'ompetitiom. Act. 10:00 a.m. 10:00 a.m. 235 Russell Building Judiciary Energy and Natural Resources Judiciary Parks and Recreation Subcommittee Administrative Practice and Procedure To resume hearings on H.R. 12536, the Citizens and Shareholders Rights and Rem­ Subcommittee Omnibus National Parks Amend­ edies Subcommittee To resume hearings on the FBI Charter ments. To resume hearings on S. 3005, to and its overall policy. 3110 Dirksen Building broaden the rights of citizens to sue 2228 Dirksen Building

SENATE-Tuesday, August 8, 1978

Statements or insertions which are not spoken by the Member on the floor will be identified by the use of a "bullet" symbol, i.e., •