4038 CONGRESSIONAL RECORD - HOUSE March 13 By Mr. GRAY: By Mr. SISK: rates; to the Committee on Post Office and H.R.10722. A bill for the relief of Dr. H.R. 10725. A bill for the relief of Asterlo Civil Service. Isidro Enriquez Custodio and his wife, Elena Quitoriano; to the Committee on the 251. By the SPEAKER: Petition of the Custodio; to the Committee on the Judiciary. J.udiciary. executive director, Medical Society of the By Mr. LIPSCOMB: State of North Carolina, Raleigh, N.C., peti­ tioning consideration of their resolution H .R. 10723. A-b111 for the relief of Timothy PETITIONS, ETC. Gong (also known as Po Wei Yee); to the with reference to expressing opposition to Committee on the Judiciary. Under clause 1 of rule XXII, petitions H.R. 4222, a bill to amend the Social Se­ By Mr. McDONOUGH: and papers were laid on the Clerk's desk curity Act to provide a system of social se­ H.R. 10724. A bill providing that the Presi­ and referred as follows: curity taxes in support of a service program dent shall award in the name of the people 250. By Mr. KEITH: Petition of friends of hospitals and related services to the aged of the United States a gold medal to Lt. of the Young Citizens Civic Club, St. George through the administration of the social Col. John Herschel Glenn, Jr.; to the Com­ School, Westport, Mass., expressing their security; to the Committee on Ways and mittee on Banking and Currency. opposition to an lncrea.Se in magazine postal Means.

EXTENSIONS OF REMARKS

Should Old-Age Medical Care Be Financed And who will pay the freight? Will it be roof. "To befriend the stranger within wealthy on speculators, stockholders, ranch­ thy gates" would not only be a Biblical Through Social Security? ers, attorneys, and physicians? No, under injunction-it would be a way of life the "liberals'" plan these so-called fatcats­ supposedly a favorite tax target--will go scot for its members. The growing up to­ EXTENSION OF REMARKS free. The tax increase will bite into the pay­ gether with the families of minority OF checks of workers who pay social security. groups and different cultures would What's more, the whole social security sys­ definitely shape the course and provide HON. BRUCE ALGER tem to which our wage earners are contrib­ the pattern of his future activity. He OF TEXAS uting will be undermined. No actuary in is fortunate in having developed a theme, IN THE HOUSE OF REPRESENTATIVES his right mind would endorse a formula so a way of life that gives consistency and sure to create financial chaos. purposefulness to his philosophy noted in Tuesday, March 13, 1962 Lastly, consider the impact of social se­ Mr. ALGER. Mr. Speaker, under curity financing upon our system of private the Columbia College "Story of Achieve­ medicine, which has made the United States ment": "To discourage fear, encourage leave to extend my remarks in the REC­ courage, and to live with compassion." ORD, I include the following article by a world leader in this field. the Honorable THOMAS B. CURTIS, of When the Federal Government makes a The "laboratory" of the East Side was Missouri, entitled "Should Old-Age Medi­ contract with a supplier of goods or services, bound to call upon him sooner or later. fees and standards must be acceptable to the He alwf..YS responded to the opportunity cal Care Be Financed Through Social bureaucracy. The administration plan for Security?" It was carried in the March medicare means that doctors and hospitals for creative activity and this call turned 1962 issue of the American Legion maga­ must subscribe to the bureaucrats' rules or out to be a rich field when he discovered zine: be excluded from the program. This is so­ the great crop of outstanding citizens SHOULD OLD-AGE MEDICAL CARE BE FINANCED cialized medicine, pure and simple, and the who came out of his elementary school, THROUGH SOCIAL SECURITY? historic right of an American to choose his Public School 20. Listed among its grad­ own doctor is consequently infringed, if not uates were U.S. Senator Jacob K. Javits (By Representative THOMAS B. CURTIS, Re­ destroyed. publican, of Missouri) and his brother, Benjamin A. Javits, who Superior quality usually commands a has just endowed the Fordham Univer­ premium price. Thus it is that American sity Halls of Law; a President of the medical service, unsurpassed throughout the Jewish Home for Convalescents Honors Board of Education, Charles H. Silver; world, is relatively costly. Many elderly cit­ Aaron Fishman, Community Leader, George and Ira Gershwin; Irving Caesar; izens, whose longevity is itself a tribute to Edward G. Robinson; Paul Muni; Irving our high health standards, are admittedly for 25 Years of Service Maidman; Harry Golden; and Symon confronted with serious financial problems Gould, the persistent candidate for Pres­ when they become ill or infirm. EXTENSION OF REMARKS ident of the United States on the Vege­ Those, however, who would solve this prob­ lem through the social security system are OF tarian Party ticket. Aaron Fishman and completely wrong. The concept ls both his fellow alumni were intrigued by the morally and financially unsound. HON. HERBERT ZELENKO fact that so many nice boys came out of It is terribly distressing to witness the out­ OF NEW YORK poor neighborhoods. The school was pouring of false propaganda calumnizing IN THE HOUSE OF REPRESENTATIVES now nonexistent. The alumni associa­ our highly developed medical and insurance Tuesday, March 13, 1962 tion which their oldtime teacher, Law­ industries for political expediency's sake. yer Nathaniel Phillips, had organized, That high officials of the Government should Mr. ZELENKO. Mr. Speaker, on the was the focal point of reunion. engage freely in this slanderous campaign is occasion of his being honored by his com­ doubly deplorable. munity in New York City for 25 years of To make people aware of the impor­ Contrary to their outcries, noncancelable tance of the teacher in our social struc­ hospitalization and medical service insur­ service, at a testimonial dinner of the ture, they planned the "Our Teacher" ance policies covering persons over 65 are Jewish Home for Convalescents at the Award'' to express appreciation to the now well within the means of most of our Hotel Biltmore recently, I take pleasure teachers who had served them. "Time senior citizens or their families. This was in placing into the RECORD the story of for Another Diploma" was the award clearly demonstrated ln House hearings. a very useful lifetime of my Columbia State and local programs providing care College colleague, Aaron Fishman. I that recognized the achievements of the for the truly indigent are of long standing. former students. Senator JAVITS was in­ believe that this story should be told be­ spired to introduce a joint resolution in Thus, protection is to a large degree avail­ cause it is illustrative of American op­ able to all, within the framework of a free the Senate creating National Teachers society. portunity and gives fine example of Recognition Day on the fourth Wednes­ Under the plan advocated by the adminis­ standards and attitudes toward one's day of April At a reunion dinner which tration, who would be protected? Only fellow men that merit following. This is paid tribute to the President of the those who have social security. Literally a story of great human interest. Board of Education, Charles H. Silver, of millions of aged Americans are not covered The child of an immigrant family that by the system, and would not receive a dime's settled on the lower East Side of New the class of 1900, Mayor Wagner an­ worth of medical care. Furthermore, the York at the turn of the century, this nounced that there would be a new widespread notion that those who do stand boy grew up in what was a laboratory Public School 20. to benefit from the proposal wm be able to The school had a remarkable story to sit back and relax, confident Uncle Sam will of human relations. The hardship of take care of all their medical expenses, ls a settling in a new country .would be a tell-an object lesson in "what America hollow fiction. Even casual study of the bill lesson that would not be forgotten by has meant." Aaron Fishman was se­ reveals that the payoff ls strictly limited. those who were raised under that family lected as the Chairman of the Dedica- 1962 CONGRESSIONAL RECORD - HOUSE 4039 tions Committee charged with the pro­ try. Senator LAuscHE, of Ohio, sup­ It was my father who bequeathed to me gram of embellishment of the new school ported his campaign with the State De­ the legacy of his interest in this convalescent and the establishment of good school­ partment. home. I cherish his great love for his fel­ low men, by following in his footsteps. You community relations. They have al­ During the war years his natural bent have just heard a tale of woe. Our institu­ ready obtained from Carl Sandburg a for people-to-people contact made him tion has reached a stage of crisis. I have the dedication tribute that will be set in valuable when he directed the Red Cross feeling that we are going to lick it, and that the marble walls of the school. Alum­ and National War Fund campaigns we stand at the crossroads of a bigger and nus Harry-"Only in America"-Golden, among foreign nationality groups in a better future. We are going to give our­ the Sandburg biographer, brought it New York City. Under the sponsorship selves not only to the needs of convalescence. about. of the Zionist Organization of America Since the crying need is the welfare of the For all of his activity in behalf of his aged, we aim to convert part of our fa­ he teamed up with Ed Sullivan in plan­ cilities for such a purpose, in addition to our old East Side school, Aaron Fishman re­ ning the Friendship Food Train which present convalescence program and so put ceived the Ecce Quam Bonum Award of was sent to Israel as a gift of the people our institution to full use. We hope that the his fellow alumni. of the city of New York. More recently philanthropic foundations and you our His experience at Columbia University he has given important aid in helping to friends will back us up. followed a similar pattern of interest. It relocate Cuban friends in this country. is the interesting story of two boys who His father had been a founder of the never knew each other at college, but Jewish Home for Convalescents at Grand who, 25 years later, formed a team to View on the Hudson. When he suc­ Relief Necessary for Rubber Footwear benefit their university and to engage in ceeded him as a director, he established Industry interfaith activity. This story was high­ there the annual seminar of social work­ lighted at a "man of the year" dinner at ers of the city hospitals. He addressed the Columbia University Club in 1957 himself, at the request of the Urban EXTENSION OF REMARKS when a dual award was made to Aaron League, to Jewish convalescent homes to OF Fishman and Charles Pratt Healy for extend their services to the Negro com­ HON. THOMAS J. LANE eminent service to college, university, munity. He obtained affiliation with the OF MASSACHUSETTS and community. Dr. Grayson Kirk, the Greater New York fund. He joined the president, referred to their activities as Home in the efforts of other local com­ IN THE HOUSE OF REPRESENTATIVES the "Chip and Aaron enterprises," and mittees to halt the Throughway Author­ Tuesday, March 13, 1962 Dean Lawrence Chamberlain spurred ity from wiping out the home, and with Mr. LANE. Mr. Speaker, under leave them on. it the historic villages on the Hudson, as to extend my remarks in the RECORD, I The teamwork began when the family it pushed ahead with its roadbuilding include the following letter received from of John Jay, President of the First program. He argued before the Gov­ Frank J. Emmett, vice president of the Continental Congress and First Chief ernor that human values must not be Tyer Rubber Co. in Andover, Mass., and Justice of the Supreme Court, was off er­ destroyed for a road. The Home and the my letter to the Chairman of the U.S. ing his estate to Columbia, his alma villages have survived. Tariff Commission, regarding the serious mater. The Board of Trustees requested His wife, Debbie, also a lawyer, di­ tariff situation that endangers our rub­ Charles Healy, its counsel, for wills and rects the national speakers' bureau for ber footwear industry: Hadassah. She has shown a similar in­ special gifts to bring back a picture story TYER RUBBER Co., of the estate at Katonah, N.Y. Healy terest in peoples' cultures, and has as­ Andover, Mass., March 5, 1962. called upon the photographic skill of sisted him in his community activities. The Honorable T. J. LANE, Fishman and they brought back a story On December 10 past, at the Hotel House Office Building, in color for the trustees' meeting. They Biltmore, the home for which Aaron Washington, D.C. also made a photo study of the Ameri­ Fishman has been counsel and public re­ DEAR MR. LANE: We are sorry that my visit can Assembly at Arden House for the lations director for 25 years rendered to your office last Wednesday morning was at School of Business. him and his wife a testimonial dinner in a time when committee meetings preempted recognition of their devoted services to my opportunity to become acquainted with Aaron Fishman undertook a 2-year you. I shall try again soon. · job of research which produced his the cause of the needy ill. Messages from We appreciate the time and courtesy your famous "Story of Achievement," a new Mayor Wagner, Senator Javits, Israel secretary extended to me and the considera­ streamlined format in college yearbooks Ambassador Harman, the Hadassah Na­ tion she showed in promising to put before which told the story of what had hap­ tional Board, Columbia College, and the you the blue bound "Memorandum on Tariff pened to the classmen and to the uni­ 20 Alumni Association praised their Classification of Rubber Footwear" I left various cultural and welfare activities. with her. After having read it, we hope you versity in the 30 years since graduation. wm refer again to paragraphs 4 and 5 on It included the story of the Comptroller Dr. Louis I. Newman, of Temple Rodeph Sholom, in offering his invocation re­ page 1; paragraphs 3, 4, 7, and 8 on page 2; General of the United States, Joseph and paragraph 2 on page 5. Campbell, Composer Richard Rodgers, f erred to Aaron Fishman saying: Since a large segment of the footwear in­ Novelist Henry Morton Robinson, among We praise him as a champion of good and dustry is located in our State of Massachu­ others. The publication also projected worthy causes. We acknowledge him as a setts, it would be most helpful if this letter the image of Columbia University across true humanitarian, as one whose name leads would serve as a basis for you to register all the rest as a lover of his fellow, in the your concern about our situation. We re­ the Nation to the alumni groups of other example of self-sacrifice and indefatigable universities and made the plans of pub­ quest that you write the Tariff Commission, labor which our friend sets for all of us. the Bureau of Customs, and Mr. Edwin F. lication available to them. Even as he bears a priestly nam-e, may he con­ Rains, Assistant General Counsel of the An interest in foreign students engaged tinue to be like a true son of Aaron, loving Treasury Department. the activity of the team when it inteP­ peace and pursuing peace. If we can be of further assistance in help­ ceded in behalf of a boy from India so Supreme Court Justice Owen McGivern ing you to help us, I _shall be there within that he could obtain his doctorate. in presenting him with a scroll of recog­ a few hours of your call. After that, students from Pakistan and nition said: Sincerely, the Latin countries found their way to FRANK J. EMMETT, The best compliment I can pay Aaron Vice President. Aaron Fishman's door. Fishman is to say that if everyone in the In his chosen profession, the law, world were like him there would not only CONGRESS OF THE UNITED STATES, Aaron Fishman was destined to make .not be any wars but not even rumors of HOUSE OF REPRESENTATIVES, his mark in the pattern of foreign people wars. Washington, D.C., March 12, 1962. interest. The opportunity to reunite In his replying remarks, Aaron Fish­ CHAIRMAN, families came frequently in his immigra­ man said: U.S. Tariff Commission, tion work. Recently the press reported Washington, D .C. the story of his successful repatriation During this past decade, I am happy to DEAR Sm: I want to bring to your attention say, we have been speaking in terms of the fact that the obsolete and limited defi­ of a Greek-American from Cleveland human values, human dignity, and people­ nition of rubber footwear in the Tariff Act whose loss of records and his nonvolun­ to-people contact. These are the concepts is making it very difficult for American tary military service in a foreign army that will save the world. We cannot meet manufacturers of rubber-soled footwear with prevented his readmission to this c6un- problems with violence and ignorance. fabric uppers and waterproof footwear to 4040 ' CONGRESSIONAL RECORD-- ·HOUSE March 13 compete· with importf! of these products-­ hl,story, and who would judge a people on la great contempt for the- arts in attitudes even -here in the home market. tlie posture of their arts rather than their· that reduce them to investments, status In 193-3 a_ Presidential proclamation was sum of achievements in the economic and symbols, or vehicles !or sensationalism. issued putting rubber footwear imports un­ political and social fields. · 1The danger, of course, ls that those art der the American selling price. This meant At the same time, it ·is a useful reminder forms without commercial value lead a pre­ that such imports would pay duty on the to us that the condition of the arts is a vital carious existence on the edge of extinction. valuation of like or similar American-made question in any society-and should be so This works .to the extreme disadvantage of footwear, not o:i;>. the declared or invoiced especially in ours, with its ideals of measure­ the ru:tist who may feel impelled to try to value. ment of worth by individual, not mass, become financially successful merely to jus­ Today's problem arises from the fact that standardf!. President Kennedy's recent ap­ tify himself in terms of the society around the term "india rubber" is used in the pres­ pointment of August Heckscher, director pf him. ent Tariif Act to describe the material, and the Twentieth Century Fund; as White In the same way, artistic institutions are the Bureau of Customs has ruled that this House cultural coordinator is an indication suspect if they are not able to stand the test covers only "natural rubber." · As a result, that the arts will enjoy greater considera­ of competition-as though opera and profes­ im:-orted footwear held to be wholly or in tion in the environment of public policy sional football were similar profitmaking chief value of any synthetic rubber, or any than has been their fortune in the past. ventures and a loss at the box office a fit substitute for rubber, such as the various How is it with the arts Jn America today? prelude to failure for both. · so-called plastics, evade the American selling Their condition can be described as ex­ To free our art forms from destructive price even though like or similar footwear is tremely healthy in one aspect, but extremely financial tests is to protect them from the produced and sold by the American manu­ hazardous in another. tyranny of the majority. Alexis de Tocque­ facturers. There is a great difference between in­ ville, whose observations on democracy are The definition of rubber footwear in the terest in the arts and support for the arts. illuminating to generation ·arter generation, Tari1f Act must be modernized to cover the There ls an even wider difference between feared tha~ democracy might fail precisely materials now being used by the industry in the cultural life we enjoy and what we because the majority will would lead to the making its products. The restricted defini­ might enjoy. The total figures measuring triumph of conformity and mediocrity. It tion of "India rubber" fails to allow for such artistic activity in America are impressive has certainly been one of the great failures substitutes for rubber as synthetic rubber enough to convince one that a new era may of the television industry that it has been and elastomeric synthetic plastics. These be at hand; yet they are less impressive subservient to the will of the majority, as waterproof materials are basically the same. when one looks at them in terms of the peo­ measured by "experts," and in reaching for It is clear that, unless the technicalities of ple involved. the most common of artistic denominators the law a.re corrected to meet modern reali­ The Department of Labor's recent edition has rejected the aspirations of the minority, ties, the protection given to this American of the "Occupational Outlook Handbook" in­ even though that minority may number industry through the Presidential proclama­ cludes for the first time a section on the per­ several millions of people. tion will be seriously weakened, if not com­ forming arts-musicians, dancers, actors and In sum, if art is essential to a free society, pletely voided. singers. The employment outlook as re­ then it must be supported and encouraged ported, based upon the most careful and ex­ and helped to flourish. If the arts are to Relief for the rubber footwear industry tensive surveys and interviews within each can be provided by a more reasonable inter­ flourish, they must be relieved of total de­ occupation, can only be described as bleak. pendence upon the marketplace, and upon pretation by the Bureau of Customs of the Employment opportunities in each of the similitude provisions of the Tariff Act, or by majority opinion and taste. · fields are limited and highly competitive. I recommend a six-point partnership for amendment of the Tariff Act of 1930, so that The earnings are not large, and in the case footwear of these types will be subjected to the support of the arts in America. It is of many artists, employment ls intermittent. predicated on acceptance of the arts as a ·new the American selling price whether made of We do not have too many artists; we have natural rubber, synthetic rubber, or plastics. community responsibility 'and is based on the too few opportunities for them. It is true principle of diversity and variety. The mem­ Trusting in your cooperation to help rem­ that the artist will practice his art even edy a situation that endangers our rubber bers of the partnership are the public, pri­ under the most difficult conditions; but it is vate patrons and benefactors, corporations, footwear industry, I remain, also true that, in a nation as prosperous Sincerely yours, labor organizations, local and State govern­ and progressive as our own, there is no rea­ ments, and the Federal Government: Each . THOMAS J. LANE, son why the artist cannot be productive Member of 6ongress. of the partners has a distinct responsibility. and reasonably compensated. In proposing Regardless of any subsidy the principal my own six-poiJlt solution, I admit to some source of financial support for the arts basic convictions. must continue to be the public. An art First, I believe a flourishing cultural life form without an audience ceases to have To Come to the Aid of the Arts is an essential, not an ornament, to the meaning. And how many times have we health and strength of a free society. heard people decrying the state of an art Second, I doubt if economic success is a form like the theater but seldom attending EXTENSION OF REMARKS proper or meaningful test of the value of the and offering no support? OF arts, and especially the fine arts. Whether There are esthetic problems in public sup­ they are able to support themselves at the port, of course. If the theater or the ballet HON. WILLIAM FITTS RYAN box office is the least meaningful criterion does not offer living art to the public, then OF NEW YORK of their true value. the public -might well turn away. It is the IN THE HOUSE OF REPRESENTATIVES Third, I believe it is well within the proper responsibility of the artist to merit public responsibility of government in providing support. A viable art requires a voluble Tuesday, March 13, 1962 for the general welfare to do its part to help public. Whatever its form-whether Mr. RYAN of New York. Mr. Speaker, rescue troubled art forms from obsolescence. through increased participation in season I would like draw the attention of In a complex, modern society like our own, subscriptions or through special contribu­ to to art of all kinds ls called to one of the essen­ tory associations-public support is the key­ my colleagues an article by Secretary of tial services of freedom-to free man from stone to artistic vitality, and the public Labor Arthur Goldberg which appeared the mass. Art-whether on a stage, in a must expect to provide a greater portion of in the New York Times Sunday maga­ gallery, or in a concert hall-asserts the su­ the costs. zine of March 11. The Secretary of premacy of the individual. The insight of This ls not to discount the continually Labor has ably explained the need for a the artist leads to cultural discovery for all vital role played by the second group of part­ Federal Advisory Council on the Arts. of the people. No one who has known the ners- those individual patrons and bene- This has been a continual interest of impact of a great artist's work can fail to ~actors who have been bearing the main appreciate the legend of Michelangelo who burdens for support of institutions like the mine. I urged the passage of H.R. 4172 went in the dark of night to his studio, in­ Metropolitan Opera, and through whose during the last session. I hope at this flamed by the rumor that a competitor had generosity many communities now enjoy session Congress .will recognize the im­ laid claim to his statue "Pieta," and chiseled great art museums and other cultural re­ portant role the arts play in our na­ across the ribbon of the gown the inscrip­ sources. Furthermore, in a period of artistic tional life by establishing a Federal Ad­ tion, stlll deep etched to this day, "I, Michel­ experimentation such as our own, many of isory Council on the Arts. angelo, made this." the best artists will run ahead of, or even The artfcle follows: My second conviction-that economic suc­ contrary to, the general standards of the cess is not a proper criterion for judging the time. They will be forging ahead, leaving To COME TO THE Am OF THE ARTS value of either the artist or his art-ls con· general public attitudes and perceptions far (By Arthur J. Goldberg) troversial to the extent that it goes against in their wake. Here the support of en­ WASHINGTON.-It has been said of Ameri­ the grain of an amuent middle class with lightened patrons can have the most pro­ cans that we are respected for what we can a tendency to measure the value of an art found and fruitful consequences. do but not for what we are, that we know form in terms of financial worth or per­ Third, the American corporation, a cen­ how to work but not how to live. Much of sonal status. One dire result of this tend­ ter of unprecedented power and wealth, has this ls mere caviling by those who are blind ency ls "made taste," whereby a publisher, only recently awakened to the value of the to the drive, the hard pragmatic realities an art dealer, or a producer peddles price arts as a complement to architecture and as and the absorbing challenge of American and sensationalism in place of quality. There a medium by which the "image" of the 1962 CONGRESSIONAL RECORD - HOUSE 4~41 business can acquire distinction. While gered. art f<>rms from economic oblivion. experience of having to fall back on stand­ many corporate executives are sponsors of But there are few formal vehicles by which ard successes or suffer ruin. Subsidy, in the arts, and some companies help support these ideas can be examined and brought to short, may be less a straitjacket than the box the arts in their communities, the corpora­ reality. There is, especially, almost a total. office. tion as an entity has not, as a rule, con­ lack of public policy in regard to the arts, at The object of my proposals ls to free the sidered support for the arts in the -same a time when many proposals--such as those artist, not bind him. The best protection light it has support for educational, chari­ relating to taxation-bear directly upon pub­ against the danger of lnterference-ad­ table and health activities. One can hardly lic policy. The Council would have those mittlng full well that the danger exists-is a walk into a corporate building erected in two most important assets-undi&tracted community that recognizes it and is pre­ the past 5 years without noticing the concentration on its subject, and a voice of pared to cope with it. painting and ·sculpture that adorn the prestige and formal influence. At the same time, there are certain policies reception rooms and private offices-work As a national clearinghouse of ideas, the that lessen the danger of interference, if they often done on commission. But, thus far, the Council could have an effect not only upon do not eliminate it. One of these ls the prin­ contributions of business to the arts re­ the making of public policy in regard to the ciple that public support is most successful, main only a fraction of its generous contri­ arts but also in infiuencing national atti­ and least subject to abuse, when it repre­ butions to other community needs. tudes regarding them. Its proposals would sents only a portion of the total funds in­ This is true, also, of the funds and founda­ be designed as much to encourage private volved. The matching grant should be the tions that have dsen from corporate for­ initiative as to infiuence governmental ac­ basic form of Federal participation in sup­ tunes. It may be impossible even to sug­ tion. By keeping constantly alert to the port of the arts, with the Federal share always gest an adequate proportion of expenditure status of our cultural resources, the Council representing the smaller of the funds in­ for the arts; a review of the statements of would also be alert to ways to maintain and volved. One of the guiding ideas of the six­ our largest funds and foundations, however, increase them. point partnership I propose ls that artists reveals what appears to be comparative neg­ One much-needed function in the arts are likely to retain maximum control over lect of such -support. When two noted field is that of liaison. While there are their work when a maximum number of gov­ American funds recently offered assistance many strong and independent spokesmen in ernments, institutions, and individuals are to a Washington repertory theater, Arena each of the artistic disciplines, there ls no contributing to their support. Stage, for example, it was the first such artis­ agency that can approach or cooperate with The final solution lies, of course, only with tic venture for one. local and State governments and private in­ a larger and more active art public. As­ Even more important, in my view, would stitutions on a permanent, statutory basis so sistance of all kinds to the arts should in­ be the great vote of confidence in the Ameri­ that public policy is a coordinated whole clude provisions whereby more people in can artist that corporations could cast serving the art community. Short of in­ more places have access to the arts, so that through their advertising. Each year, truly dividual bills by Congressmen and individ­ the dilemma of the artist will eventually find vast sums of money are poured into cor­ ual petitions to State and local governments, its best and happiest solution in an increased porate advertising-yet the amount that in­ art is the orphan of American public policy. clientele and a sympathetic public. I do not volves the fine arts is relatively small, and What is to prevent the rea!izat!on of this propose State-supported institutions, such the art forms sponsored by advertisers are needed assistance? Those who flatly rule as exist in many European countries. A free few. out any and all Federal participation in a democratic society can compete and suc­ A responsibility similar to that of corpora­ support program for the arts generally hold ceed in a free, democratic way. tions is the one that attaches to the Ameri­ one of two views, sometimes both: tax dol­ In discussing the issue of support, none can labor movement, which by its nature is lars should not be spent for what one writer should lose sight of the object of support-­ pledged to the betterment of the American called "a luxury in life"; and if tax dol­ the artist himself. The achievement of the community. Labor unions have been slow, lars were to be spent, inevitable government American artist has been very great. That on the whole, to develop specific forms of control of the arts would follow. achievement will grow larger with time. It support for the arts-but the exceptions, like The first of these objections is based on a is given to us now to do what we can to sponsored concerts for children and the misunderstanding of my proposal, which foster it. showing of paintings in union-sponsored ex­ does not envision large Federal outlays. But hib1tions--are notable. They indicate what the second is voiced by those who are genu­ can be done, and should be done in larger inely concerned about the freedom of artistic measure. expression, and their concern ls not to be The Dedication of the Edward Bratter The next larger partner in the program of dismissed lightly. Distinguished critics have Memorial Plaque at Columbia University diverse support is the local government-the reminded us of the shortsighted and often primary source of public support for the shabby treatment some artists have experi­ arts. A subsidy program that resulted only enced at the hands of politicians. Others EXTENSION OF REMARKS 1n large •Collections ~fart works in big cities, have marked the tendency of &overnment to OF showing only to certain urban audiences, watch its money carefully and attempt to would defeat its own purpose. Art grows set standards for its use. HON. HERBERT ZELENKO out of the life and spirit of a community; I might say that this live sense of danger OF NEW YORK the artist reaches for his inspiration to the ls in itself the best guarantee that we could IN THE HOUSE OF REPRESENTATIVES world around him, and today art, mo.re than have for artistic freedom. Also, the very any other enterpr.ise, preserves the intimate concern that the arts might be subjected Tuesday, March 13, 1962 and personal nature of American life outside to control is additional evidence that they Mr. ZELENKO. Mr. Speaker, I have mass institutions. are relevant and important in American life Today, communities wi111ngly provide and opinion. the honor to be the Representative of housing and custodial care for art collec­ Regardless of how the arts are supported, the district in which Columbia Univer­ tions and historical museums; one wonders there will be efforts from some quarters to sity is located. Two most significant as­ why more of them should not provide for control their content. The question is: pects of the university's program were operas, ballets, symphonies and local reper­ What measure of success do those efforts highlighted at a recent Edward Bratter tory theaters as well. Universities now enjoy? dedication ceremony there. One is the make provision for professors-in-residence We should be perfectly honest and open harmonious association in the pursuit of and artists-in-residence; why shouldn't about the problem of interference with the municipalities? freedom of the arts and attempts to com­ higher education of American youths of The sixth partner is the Federal Govern­ promise the integrity of the artist. To close a wide variety of religious faiths. The ment. I believe one of the most important our eyes to the problem is neither right nor other is provision for hospitality and immediate steps which the Federal Govern­ necessary-but what ls necessary ls to pro­ guidance for about 2,000 foreign stu­ ment should take is to establish a Federal vide for safeguards against it. One of the dents. Advisory Council on the Arts. reasons I have advocated a Federal Advisory Working together in this unique inter­ At present, the interest of the arts in Council on the Arts is the value of such a faith project at Columbia are a Protes­ America is represented in the councils of the body in standing between the artist and the Federal Government only in the individual direct political process that might affect tant minister, a Catholic priest, and a attitudes of members of government, en­ him. rabbi who are appointed by the univer­ couraged by the example of President and We should acknowledge also that the sity and provided with a special building Mrs. Kennedy. But stlll the artist is with­ marketplace exerts its own form of censor­ on the campus. However, their activities out the kind of representation that will per­ ship which earn be as unyielding and rigid are maintained by their own religious manently insure that his interests are heard as any feared by opponents of subsidy. I re­ .groups. In the case of the Jewish coun­ regardless of prevailing attitudes. ' ceived a letter from an artist in Texas who selor the sponsoring group was originally A FederAl Advisory Council, composed described to me his feelings at being asked largely of artists themselves, would provide to rush several paintings to a New York gal­ led by the late Justice Benjamin Nathan that representation. The field of the arts is, lery for a showing, and then receiving them Cardozo, Judge Irving Le.hman, and at present, rich in one aspect-in ideas and back with high praise but apologies that they Arthur Hays Sulzberger. Later other proposals to improve the economic status of were too controversial. Every summer distinguished public-spirited American the individual artist, and to rescue endan- theater and repertory theater has had the citizens of Jewish faith served on this 4042 CONGRESSIONAL RECORD - HOUSE March 13 boardo1 -Among them was a classmate of As in all else, he gave so much of himself complishments of an unusual order, a very mine, Edward M. Bratter, an eminent to this cause. rare one, then or now. To summarize the "I am grateful that I can look back and most prominent ones let me tell, or remind attorney and civic leader~ Mr. Bratter's remember the precious moments that I had you, that he was active in his fraternity, conscientious performance of his profes­ the opportunity to spend with Ed Bratter, Zeta Beta Tau; elected to Phi Beta Kappa; sional duties and his unselfish devotion who was a great guy." won gold and silver Kings Crowns for extra­ to the advancement of his alma mater Jerome L. Greene, Esq.: "Ed and I were curricular service; won letters in swimming and his religion were terminated by his classmates at Columbia College, members of and water polo; headed numerous class untimely death. His friends and associ­ the class of 1926, so that I met him for the committees; spent 4 years on Spectator, ates arranged to have a plaque in his first time as a freshman in 1922. Despite achieving the post of advertising manager; memory placed in Earl Hall, the inter­ the many years tj).at have passed, I still have spent 3 years on Columbian, achieving the in my mind an extraordinarily clear and post of business manager; after 3 years he faith building on the Columbia campus. vivid picture of him as a freshman at Co­ was named assistant business manager of The dedication of this plaque was ac­ lumbia-he was an enthusiastic, eager, ener­ Blue Book, with all of these important posts companied by exercises in which Mr. getic, intelligent young man instilled with a arriving at the same time that he was a Bratter's sterling character, warmheart­ burning ambition to achieve the worthwhile first-year student in the Columbia Law edness, and zeal for the public welfare goals of life. Even as a freshman, the im­ School. were clearly delineated. pact of his personality was unforgettable. "As an alumnus, he wore many hats. But Pertinent excerpts of remarks at the It was immediately apparent that he would I'm sure I'm right in saying that his great­ doubtlessly attain the goals that he had set est love was the class of 1926, which he served ceremony follow: for himself, and so it was that he was to for over 30 years as vice president, modestly Introduction by Dr. Isidor B. Hoffman, become an editor of Spectator, an omcer of declining the proffered presidency on more counselor to Jewish students at Columbia his class, a member of the swimming team, than one occasion. University: "This large assembly of Ed Brat­ the leader of his fraternity, and a member "He was loved by his classmates and rec­ ter's family and friends and coworkers in of Phi Beta Kappa-an outstanding member ognized by them as one greatly responsible good causes have come together for the of his class. for making the class of 1926 a giant alumni dedication of this memorial plaque because "More important than the honors which class. In my 10 years acquaintance with Ed we loved him and were privileged to be were accorded to him and the achievements Bratter I know that he never denied a re­ among the host of those he loved and which he attained during his years at Co­ quest for service or support from his college. served. We now reverently and affection­ lumbia, Ed gained the admiration of all of "His commitment to his college was full, ately dedicate his plaque which reads: 'In us for his qualities of loyalty and devotion and we who knew him enjoyed his frequent grateful memory of Edward M. Bratter, to his friends and associates and his attri­ visits to the campus or alumni meetings, al­ 1926C, 1928L, ardent Columbia alumnus, de­ butes of leadership which naturally came though greatly saddened to realize that his voted to interfaith and Jewish programs, at about because of the great respect of his death so quickly followed his attendance at Earl Hall, February 15, 1962.' classmates for his high standards and ideals. a major ground breaking for a new campus "Edward Bratter played an important role "After having been graduated from law building, the fulfillment of which would in the advancement of the interfaith and school, Ed became associated with the .firm have been a joy to his heart. Jewish activities here at Earl Hall. He was of Guggenheim, Untermyer & Marshall and "Our last speaker is Mr. Jamn, friend and a member of the board which sponsored the after 4 or 5 years, impelled by the desire to coworker with Ed Bratter at Columbia and Jewish counselorship for 20 years, until the achieve success and recognition in his in the Jewish community and a member of day of his death. His keen understanding chosen profession, he formed his own law our board for many years." of its purposes and needs soon won him a firm with James Marshall as his partner. Remarks by George M. Jamn, Esq.: "It can place in its inner councils and he served on Some years later it was my good fortune to truly be said that to have known Ed was to an .informal executive committee together be invited by Ed to join him in the practice have loved him. He had a great love for life, with Arthur Hays Sulzberger, Henry Hend­ of law. I shall always cherish the days that for his dear family, for people, for beauty. ricks, and Abraham M. Davis. He took his I spent with him as his partner. Without "On our many Canadian fishing trips, he duties seriously; every year he would com­ his leadership his law firm would not have talked often of his philosophy of life, and municate with friends and fellow Columbia achieved the success that it did, and its probed deeply for the essential purposes and alumni requesting the renewal of their continued success today is due to Ed's origi­ deep values of existence. financial support which then, as now, was nal efforts. "One of his favorite causes, the interfaith so greatly needed. "Ed did not confine his activities solely to work at Columbia, was originally sponsored "To me personally Ed was a tower of the practice of law, but unselfishly and un­ by Judge Cardozo and Judge Lehman. Ed strength, a loyal, dependable friend and stintingly devoted himself to community and worked with intense zeal to help fulfill its helper. He had opinions and judgments of philanthropic endeavors. He was to become objectives. In my opinion, nothing would his own, but he was stanch in defense of a. member of the school board of the com­ please him more than to have his friends academic freedom, even for counselors. He munity in which he lived, a. member of the continue to sponsor and aid this worthy resisted pressures whether they came from board of trustees of the temple, a. leader o:f cause. fraternal orders or from militant partisan philanthropic organizations, an active Co­ "No further words of mine could add to religionists. Above all, Ed was a warm­ lumbia alumnus and a participant in move­ the luster of what he has done. Dearly be­ hearted, sensitive person; a true human ments to better interfaith and interracial loved and highly esteemed we will always being whose life and works will ever be relationships. remember his warmth, his courage, his bril­ sacredly cherished in our midst." "Ed spent the last day of his life at a liance, and his love and dedication for every­ Welcome by Mr. George Greenspan: "On dedication ceremony on the Columbia cam­ one and everything fine and good." behalf of the board of the counselor to Jew­ pus. It was most fitting and appropriate Judge Untermyer: "I was privileged to ish students, I want to welcome all of you that he should spend his last hours in this have a long and close friendship with Ed here this evening. Your presence is evidence way. Ed's decease at the height of his career Bratter commencing about 40 years ago and of the high regard ,you had for the man to was indeed a tragedy, but all of us should which was followed for several years by his whose memory we are paying tribute to­ comfort ourselves in the thought that we association with the firm of which I was a night. shall always be inspired by his spirit and his member. No man was ever more loyal or "I met Ed almost 40 years ago. As a mat­ ideals. We hope that the plaque which is devoted to his friends and associates. His ter of fact, I joined in the ritual ceremony being dedicated to his memory this evening death was a shock and a loss, not only to that initiated him into our fraternity. In shall serve as a reminder to future genera­ me but to all the members of my family who those days the physical aspects of the ini­ tions of Columbia students to follow in the knew him well from early childhood. For tiation were, to say the least, rather rigorous, tradition of Ed Bratter." myself, I will always remember Ed Bratter but he bore it all with resigned fortitude. Remarks of Joseph D. Coffee: "Today and feel honored in his friendship." "Ed was a pleasant, affable fellow, but at university administrators hope, indeed al­ Congressman ZELENKO: "As a freshman in the same time, serious minded. He was pur­ most assume, that most alumni will become the class of 1926, Ed Bratter was the first poseful and conscientious in all his endeav­ active at one or more points in their life classmate I met on the subway station at ors. He was no mere dilettante. He applied in the alumni organization of their college. 116th Street and Broadway. As the press himself to everything he did with great "Thirty-five years ago it was rather unique, reported on the day of his death, he died in d111gence. We all know of his brilUant rec­ particularly at Columbia, for a man early my arms on the subway station at 116th ord in college and law school. I recall he in his professional career to assume re­ Street after we both bad attended the lay­ liked to swim, but this was not enough. He sponsibility as an alumni leader-and then ing of the cornerstone at Ferris Booth Hall. wanted to become quite a good swimmer, carry it out with satisfaction and results. I was the last person to be with Ed in his and he did. In his life work in law, I know "Ed Bratter did, and he continued to do lifetime. He died with a smile which there are others here who can attest to his so throughout his life. May I say, though, seemed to express a sense of satisfaction successful career. that it was almost natural for him to do that he had been an important cog in the "For many years our paths crossed all too so. His involvement in the affairs of Colum­ further growth of Columbia." infrequently. However, recently I enjoyed bia College started when he was a fresh­ Closing remarks by Dr. Hoffman: "We now serving together with him on the advisory man. Four years later, at graduation, he come to the end of these exercises which poard of the counselor for Jewish students. had built a record of undergraduate ac- we trust will-have several beneficial results 1962 CONGRESSIONAL RECORD - ·HOUSE 4043· in which Ed would have taken satisfaction. which under State law might be classified as In· addition, it is provided that where an We have expressed our feeling about Ed real estate. activity is of a type ''generally considered to Bratter and•the w'irk here to which he was (b} . Short-lived assets - constitute entertalnm~mt, amusement. or devoted. We have. dedicated this plaque to The investment credit is not available for recreation" the expenses thereof will be dis­ his memory as an everlasting testimony to allowed except to the extent that the tax­ his keen perception of the need for enlarg­ property which when acquired has an ex­ payer establishes that "the expense was di­ pected useful life (for depreciation) of less rectly related to the active conduct of a trade­ ing the spiritual dimension of the life of than 4 years. Where the expected useful life students. We will extend the Edward M. or business" and it ls only ded,uctible to the is between 4 and 6 years, one-third of the extent that it is so related. These new tests Bratter memorial fund which was recently normal 8 percent credit is allowed; where $5,000 are in· addition to · the requirement under established with a gift of given by the life is between 6 and 8 years, two-thirds his widow, to perpetuate this work espe­ of the normal credit; where it is 8 years present law that the expense must be ordi­ to cially in the interfaith program for foreign and over, 8 percent is available. Without the nary and necessary the conduct of a trade students. Already the law firm with which above limitations, short-lived property would or business. Ed was associated has contributed $2,600 to otherwise get an advantage over long-lived Under present law, the costs of. a facility, add to the fund and some of his friends and property because a new credit would be avail­ such as a yacht, are deductible to the extent family and others who wish to aid us have able on the short-lived property each time used for business entertainment. The bill given amounts ranging from $50 to $1,000. that it was replaced. provides that deductions will be allowed for It is our hope that there w111 be many others facilities only where they are used for busi­ who will want to do likewise and thus dem­ (c) Limitations and excliisions ness entertainment more than half the time onstrate their feeling about him who almost Property used in regulated public utllltles, and then only to the extent of the business literally. in the words of the Great Emanci­ other than transportation, generally will be use. The expense of a particular use, to be pator whose birthday we have just cele­ entitled to one-half of the normal credit deductible, must also be dl11ectly related to brated, gave his 'last full measure of devo-· (e.g., 4 percent for 8 years and over). No the business. tion' to his Alma Mater." credit will be allowed with respect to prop­ The bill also provides that certain items in erty located outside of the United States. this area. will not have to be proven to be The credit ls not allowed for equipment used directly related to the business. These ex­ in residential housing but it will be avail­ ceptions include business meals under condl· able for equipment used in hotels and mo,. tions conducive to discussion, entertainment. Brief Explanation of H.R. 10650, the tcl~ . etc., provided to employees, expenses of cer­ Revenue Ad of 1962 A limited credit is available with respect tain meetings, items made available 'to the to the purchase of used property up to $50,· public, and items treated as compensation. 000 of purchases a year. of employees. Thus the cost of taking cus­ EXTENSION OF REMARKS Where new property ls acquired by a firm tomers to dinners in restaurants to promote OF in the business of leasing property, it may good will wm continue to be deductible if permit the lessee of the property to take it ls an ordinary and necessary business ex­ HON. HALE BOGGS the investment credit to which the owner pense. of the property would be otherwise entitled. OF LOUISIANA The bill also provides that no deduction The bill provides that if property on whlcb will be allowed with respect to business gifts IN THE HOUSE OF REPRESENTATIVES the taxpayer originally obtained the credit is to the extent that the gift exceeds in value Tuesday, March 13, 1962 sold within 8 years of the time of acquisi­ $25 per recipient per year. tion, the taxpayer will be required to recom­ The present law provides a deduction as a Mr. BOGGS. Mr. Speaker, un~er pute the credit to which he was originally business travel expense for the entire a.mount leave to extend my remarks, I am in­ entitled, basing it now on the actual period expended for meals and lodging. The bill cluding in today's RECORD a brief sum­ for which he held the property. If the prop­ amends this to provide a "reasonable· allow­ mary of the provisions of H.R. 10650, the erty is disposed of within 4 years, for ex­ ance" as a deduction for amounts expended ample, the taxpayer, in ac.cordance with the for meals and lodging. Revenue Aet of 1962, prepared by the general rule, would not be entitled to any staff of . the Committee on Ways and credit. This readjustment rule also applies These new rules on entertainment and Means. This brief summary is being in­ where the property is shifted to an ineligible gifts are effective after June 30, 1962. cluded in the RECORD so that it will be status (e.g., outside the United States). 4. MUTUAL THRIFT .INSTITUTIONS widely available to all Members of the (d) Effective date The bill considerably changes the present House of Representatives, as well as the The investment credit will apply with re­ law tax treatment o.f mutual savings banka interested public. It is expected that the spect to property acquired after December and savings and loan associations effective report on this bill, which will contain de­ 31, 196L In the case of property constructed for incomes in 1963. ·under present law, these tailed information relative to every sec­ or reconstructed by the taxpayer, the 9redlt institutions are permitted to take a deduc­ will only apply to so much of the property tion for an addition to bad debt reserves tn tion of the bill, will be filed on Friday. as was built after that date. an amount equal to their entire income so Mr. Speaker, the summary is as fol­ long as the aggregate reserve does not exceed lows: 2. LEGISLATIVE EXPENSES (SEC. 3) 12 percent of deposits. The present law pro­ BRIEF SUMMABY OJI' THE REVENUE ACT OF 1962, This section provides a deduction for the vision has resulted in most institutions hav­ costs (including dues to organizations) di­ ing no tax liab1llty. H.R. 106.50 rectly related to appearances before and com­ l. INVES';('MENT TAX CREDIT (SEC. 2) Under the bill, the thrift organizations will munications with a legislative body or a have the opportunity to take a deduction for (a) General committee thereof or individual members amounts set aside in a loss reserve on real The most important section of the bill thereof, provided they are otherwise ordinary property loans based on either o.f two alter­ provides that a business can subtract from and necessary business expenses. This ap­ natives. The alternative that wm be more its tax liability 8 percent of its new invest­ plles to the U.S. Congress and the State leg­ frequently used will be a deduction of 60 ment in tangible business assets other than islatures as well as county and city boards percent of the taxable income of the institu­ buildings. This tax credit is an outright sub­ and councils. The provision will not relate tion computed without regard to any loss traction from the tax and is in addition to to advertising or other expenses relating to deduction. Alternatively, the institution the fUll allowable depreciation of the cost political campaigns for candidates or ex­ may take a deduction for an a.mount set of the asset. penses to influence public opinion on leg­ aside in a loss reserve necessary to bring the The amount of the credit that can be taken islative issues or to influence voting on things reserve at the end of the year up to 3 percent in any year is limited by the amount of tax. like referendums. · of loans on improved real estate (or what­ The limitation involves the figure of $100,000 3. ENTERTAINMENT EXPENSES (SEC. 4) ever amount their experience indicates is nec­ of tax liablllty. For a taxpayer whose tax In the area of travel and entertainment ex­ essary for an adequate reserve). Under this (before the credit) ls not over $100,000, the penses, a major change from present law second alternative, losses on other than real credit can offset his tax dollar for dollar. deals with the proof required of the tax.­ property loans may be reserved under the Where the tax ls larger than $100,000, the payer in establishing his deductions. Under general provisions applicable to other tax­ 'credit is limited to $100,000 plus 50 percent present law, by reason of the application payers. of the part of the tax over $100,000. Any dol­ of the Coban rule, the taxpayer may ob.tain This provision will be available to both lar amount of credit which ls not usable (be­ a deduction merely on the presentation of mutual institutions and to savings and loan cause of this limitation based on the tax) evidence that indicates that it was llkely that associations with ·outstanding stock. In the may be carried over and used against tax he spent some amount of money on these case of a stock company, however, distribu· of the foUowing 5 years. it·ems. Under the bill, the taxpayer is not tions to shareholders will serve to cut down The credit 1s available for investments in permitted. to have deductions for travel, en­ the reserve deduction. tangible person!l-1 property and c~rtain real tertainment, or gift expenses unless he sub­ The bill provides several technical amend­ property used i_n business so long as it ls not stantfates by adequate records or other suf­ ments in· the savings and loan area. A spe­ a building ·or a structural component of a ficient evidence the amount of the deduction cial rule is provided for treating losses aris~ building~ The credit will appiy to assets sucl;l and the circu~stances surrounding the ln:­ Ing -!Ii connection with· the · foreclosure of as blast furnaces. outdoor machinery, etc.~ currence of the expense. mortgages in a way that is realistic from CONGRESSIONAL RECORD -"HOUSE March 13 the standpoint of banks. The . bill also 6. GAIN FROM DISPOSITIONS OF CERTAIN DE­ plus the amount that has been withheld, and amends the definition of savings and loan PRECIABLE PROPERTY (SEC. 14) he will take credi~ in his tax computation associations. This section provides that if depreciable for the amount that has been withheld. 5. MUTUAL FIRE AND CASUALTY INSURANCE property, other than builq.ings, is disposed of, The bill contains several provisions cutting COMPANIES (SEC. 10) then there will be included in ordinary tax­ down on overwithholding: able income in the year of disposition any 1. Exemption certificates: All individuals The ·bill provides that mutual fire and who expect that they will have no tax liabil­ casualty insurance companies will, effective gain on ·the disposition of the property to the extent that it represents depreciation ity for the year will be able to file an exemp­ for incomes in 1963, be subject to tax in a tion certificate and avoid the withholding way similar to stock fire and casualty insur­ taken after December 31, 1961. Under present law, property may be de­ on bank interest, series E-bond interest, and IDice companies with certain modifications. dividend income. Individuals under 18 may This change would have the effect of requir­ preciated (deductions taken against ordi­ nary income) and, then, when it is disposed file exemption certificates whether or not ing the mutual companies to include in their they expect tax liability. tax base the gain from operations, that is, of, the current value of the property may be considerably in excess of the basis (the 2. Quarterly refunds: Married couples with the excess of insurance premiums over oper­ less than $10,000 of income and single ating expenses and insurance losses paid. original basis reduced by depreciation taken), thus converting deductions from persons with less than $5,000 receiving divi­ (At the present time, these companies are dend or interest income, if they expect to taxable on their investment income only, ordinary income into capital gains. The bill takes the approach of recognizing that in have less tax liability for the year than the with an alternative tax of 1 percent, if amount withheld, as well as tax-exempt or­ higher, on gross receipts (premiums and in­ such a case the depreciation actually allowed on the property as a deduction from ordi­ ganizations, may file quarterly claims for vestment income). The blll removes com­ refund. It is anticipated that this refund pletely the 1-percent alternative.) nary income has been excessive and should be restored to ordinary taxable income. The p~ocedure will be operated in such a way that The major modification with respect to the refunds may be paid promptly. The mutual insurance companies is that a por­ rule applies not only to sales or exchanges of the depreciable property but it applies claim for refund may be filed at any time tion of the gain from operations which is during a quarter, rather than waiting until made subject to tax in this bill may be de­ also to depreciable property disposed of in a number of situations where under present its close. ducted from income currently and put into 3. Offsets: It is provided that corporations a· deferred income account. The amount law there would be no recognition of gain or loss. This provision will not apply to and tax-exempt organizations may talce that is added to the account will be one­ credit for amounts withheld from them fourth of the underwriting gain plus 1 per­ buildings or to any property which is a structural component of a building. against any liabilities that they have as cent of incurred losses (claims payable). withholding agents of Income and social After an amount is added to the deferred 7. ·TAX TREATMENT OF COOPERATIVES (SEC. 17) security taxes. For example, if an organiza­ income account, it will be available to meet The bill deals with the problem, in the tion has had withheld from it $200 on divi­ underwriting losses. If the amount set taxation of cooperatives, arising from cer­ dends th~t it receives, then when it deducts aside in a taxable year in the deferred in­ tain court decisions under the Revenue Act withholding from dividends, or in certain come account is not used to meet these losses of 1951 whereby some portion of the income cases wages, that it pays, it is permitted to during the following 5 years, there will be of cooperatives has been able to avoid tax. offset $200 against the amount which it holds added back into taxable income in the sixth Under the bill, it is provided that a co­ as a withholding agent and otherwise would year the am,.ant remaining from the 1 per­ operative will be permitted to take a deduc­ pay over to the Treasury. Where the offset cent of incurred loss formula and one-half tion for cash dividends or dividends paid in provision is not adequate with respect to of the amount remaining out of the one­ the form of written notices of allocation (so­ withholding on a tax-exempt organization, fourth of underwriting gain formula. An called script). A written notice of allocation the quarterly refund provision is still additional deferral is provided for companies will be deductible only if it is either ( 1) pay­ available. with concentrated risks in windstorm, etc., able in cash within 90 days at the option The b111 provides that amounts withheld coverage. of the patron, or (2) the patron has con­ may be retained by the withholding agent The bill provides that the mutual com­ sented to include the amount of this written until 1 month after the end of the quarter pany will get a deduction for dividends paid allocation in his own income. This con­ in which the dividends or interest are paid. to policyholders. In all cases, an under­ sent can take either of two forms. First, it The withholding provisions will be effec­ writing loss which the company would show may be a written consent which may be tive January 1, 1963. without regard to the deduction for policy given once by a patron and remain in ef­ FOREIGN PROVISIONS dividends will be subtracted directly from fect unless it is revoked. Second, the patron investment income. Other underwriting who is a member of the cooperative may The provisions dealing with foreign income losses would be charged against amounts consent to this inclusion by the co-op adopt­ are as follows: in the deferred income account and would ing a bylaw requiring all patron members to F-1. Foreign earned income and pensions be subtracted from investment income only pay tax on these written notices of allo­ of individuals (sec. 12) when the deferred income account was ex­ cation. Under present law a U.S. citizen is per­ hausted. Certain additional relief is pro­ Both the cash dividends (other than those mitted certain exclusions from taxable in­ vided for small companies (whose gross re­ of consumer cooperatives) and the noncash come for income that he earns while aQroad. ceipts are below $900,000). patronage dividends will be subject to with­ This exclusion is unlimited if he establishes The bill contains a special rule relating holding at a rate of 20 percent under the that he is a bona fide resident of a foreign to the factory mutuals. Generally these are same general provisions as withholding for country; and it is limited to $20,000 a year to be treated in the same manner as stock interest and dividends described below. if he is not a bona fide resident of the foreign companies. It is provided, however, that the The patron would take credit on his tax country but remains abroad for 17 out· of 18 amounts out of the premium deposit which return for the amount withheld. consecutive months. the company would be obligated to return Certain technical provisions of the law The bill imposes a ceiling on bona fide to the policyholder if the insurance con­ presently applicable only to farm coopera­ residents. It provides that for the first 3 tract were terminated at the end of the tives are extended to nonfarm cooperatives. years during which an individual is a bona year will not be included in earned pre­ These include the ability to take deductions fide resident in a foreign country the annual miums. (These amounts must be subtracted for noncash patronage dividends and to take exclusion of foreign earned income will be from the cost of insurance for the busi­ into account for a taxable year dividends limited to $20,000. If this individual stays ness policyholder.) Furthermore, the factory allocated within 8¥2 months after the end beyond 3 years, his annual exclusion from mutual company must add to their gross of the year and to file their returns under then on will be to $35,000. income 2 percent of the earned premiums certain circumstances up to 8¥2 months Under present law if an individual em­ computed in the foregoing manner. after the end of the year. The new provi­ ployed abroad is under a pension or annuity The reciprocal insurance companies will sions do not apply to REA cooperatives. plan established by the employer, any con­ be permitted to treat as policy dividends 8. WITHHOLDING ON DIVIDENDS, INTEREST, AND tributions made to this pension or annuity amounts which they would be obligated to plan by the employer while the individual return to the policyholder if the insurance PATRONAGE REFUNDS OF COOPERATIVES (SEC. 19) is abroad are treated as tax-exempt income contract were terminated at the end of the even though received by the annuitant when year. In addition, it is provided that forcer­ The bill provides that a payer of dividends, he is in the United States. The bill pro­ tain purposes the reciprocal might compute interest, and patronage refunds (of market­ vides that any amount contributed by the its own tax by including in its taxable ing or producer cooperatives) will be required employer to the pension plan will be taxable income the taxable income of the corporate to withhold tax at a rate of 20 percent. to the individual upon retirement wherever attorney-in-fact attributable to relations There is no requirement that the payer noti­ he may then live. But, this rule will not be with the reciprocal. In this case the fy the recipient of the amount withheld. It applied to amounts contributed by the em­ reciprocal can take a credit for :he tax will be made clear on the tax return that for ployer with respect to periods prior to De­ every 80 cents that an individual receives as cember 31, 1962. paid by the corporate attorney-in-fact. This dividends, interest, or patronage refunds, he would, for example, result in--.a refund of may calculate the amount that has been F-2. Estate tax on foreign real property (sec. tax to the reciprocal where the reciprocal withhel,.d by taking one-fourth of this (20 18) had net losses and had no income against cents). He will report his gross income as P;esent law excludes from the gross estate which to charge them. $1 by adding the amount that he receives of a U.S. citizen or resident the amount of 1962 CONGRESSIONAL RECORD - HOUSE 4045 real estate looated outside of the United (sec. 482) gives the Secretary of the Treas­ F-7. Gain from certain sales of stock States. . The bill removes this exclusion as ury authprity to adjust the sales price on the (sec. 16) · of the date of enactment for newly purchased transaction between the parent and the sub­ The bill provides that on the redemption real estate. In the case of real estate held sidiary, but this has proven to he extremely or liquidation of the stock of a controlled by the decedent on February 1, 1962, the real dimcult to administer. foreign corporation ·any gain will be taxed estate may still be excluded from -the gross The bill provides.that, in lieu of adjusting to the AI_nerican shareholders as .ordinary estate if he dies before July 1, 1963. the sales price between the parent and the income to the extent of their share of the F-3. Distributions by foreign trusts (sec. 9) subsidiary, where there al'.e no arm's-length .earnings and profits. This provision applies transactions to establish a price, the Secre­ only with respect _to shareholders having an Under present law some tax advantage may tary of the Treasury may reallocate taxable interest of 10 percent or more. Similai:J3 be obtained where a U.S. grantor establishes income between the subsidiary and the par­ on sale by such a shareholder of his stock, a trust outside of the United States. The ent to the extent that this income arose from - gain will be taxed as ordinary income to foreign sources income received by this trust sales or purchases of property at other than the extent of the earnings of one controlled may be accumulated without any U.S. tax established arm's-length prices. This re­ corporation during his holding period. This liability and in a later year paid over to a allocation of taxable income may be on the change is related to the preceding section U.S. beneficiary. This accumulated income, basis of a formula that would involve, on limiting the advantages of tax deferral paid out in a later year, under present law the one hand, the assets, payroll, and se111ng through the use of foreign corporations. is treated as a distribution of the corpus of expenses located in the foreign country and, This will have effect with respect to income the trust and does not involve further U.S. on the other hand, the assets, payroll, and where there is allowed some deferral of tax income tax. expenses located in the United States. All on ordinary income and it will prevent this The bill provides that after the date of its the profit may be subjected to the U.S. tax income from later being realized by the enactment, if a foreign trust established by a if the foreign subsidiary is little more than American investor at capital gains rates U.S. grantor makes any distribution of prior rather than ordinary income rates. accumulated income, any U.S. beneficiary a "paper" corporation. who receives this accumulated income will F-6. Controlled foreign corporations (ssc. 13) F-8. Foreign investment companies (sec. 15) be required to include it in his own income This section deals with a number of prob­ Under present law, a pure investment and to take credit for any taxes that the lems existing under present law which have company organized in certain foreign coun­ trust has already paid. The bill contains the effect of permitting U.S. investors to tries, particularly Canada, has considerable alternative formulas for spreading the in­ conduct certain operations through a foreign advantage taxwise over regulated invest­ come back over prior years so as to prevent corporation. ment companies organized under the laws the imposition of excessive surtax rates due A foreign corporation is defined as a con­ of the United States and subject to U.S. to the bunching of income in a year in which trolled foreign corporation if at least 50 taxes. The principal advantage of these for­ the accumulation is received by the U.S. percent of its stock is owned, directly or eign investment companies is that they may beneficiary. indirectly, by American interests. The bill accumulate income with little or no tax F-4. The gross-up of foreign dividends (sec. provides· that a U.S. person who owns, di­ at the corporate level, and this income might 11) rectly or indirectly, 10 percent of the stock later be realized by the investor through the sale of his stock and, then, be taxable Under present law a corporation which will be taxable on certain income of this controlled foreign corporation whether or only at capital gains rates. (It might never owns at least 10 percent of the stock of a be subject to income tax if,the basis of the foreign corporatibn may obtain a foreign tax not it is distributed as a dividend. The U.S. person will be taxable on the portion of this stock is increased because of transfer by credit with respect to taxes paid by the for­ death.) eign corporation at the time that it receives income which is attributable to the shares that he held directly or to the shares that he Under the bill, it is provided that when dividends from the foreign corporation. an investor sells his stock in a foreign in­ This tax credit is also available with respect holds through foreign persons (corporations, trusts, etc.). vestment company (which is either registered to dividends received through the first for­ in the United States or principally owned eign corporation from any 50 percent sub­ The amounts on which the U.S. person is taxed may be classified as: (1) 'Subpart F in the United States) the portion of his gain sidiaries which it owns. attributable to retained earnings of the in­ The allowance of foreign tax credit to the income, and (2) profits considered a~ being distributed. vestment company after 1962 will be tax­ domestic corporation in such cases, together able as ordinary income. A technique is with the exclusion of the foreign taxes paid, Subpart F income is, in general, those types of income which are taxed to the U.S. provided in the bill for a registered foreign results in an overallowance for these foreign investment company to elect tax treatment taxes. The bill eliminates this overallow­ shareholder on the ground that the income is of a type that could as well have been substantially identical with the tax treat­ ance through a technique referred to as the ment of a U.S. regulated investment com­ gross-up. Wherever a U.S. corporation re­ received directly by the American owner. This includes: pany, thereby providing current tax on the ceives a dividend from a foreign subsidiary dividends and "pass through" treatment for (where it would be entitled to a foreign tax (1) income from insuring U.S. risks, the capital _gains on a current basis. credit under present law) it will receive (2) income earned on the basis of own­ It is provided that the effect of this provi­ credit for foreign taxes paid attributable to ership of patents, copyrights and exclusive sion cannot be avoided by the step-up basis the dividend only if it includes in its income processes developed in the United States and of property resulting from transfer at death. ' the amount of the foreign tax for which it transferred to the foreign subsidiary, receives credit. (This corresponds to the (3) certain interest, dividends, rents, roy­ F-9. Property distributions from foreign treatment of individuals who take credit on alties and profits on sales of property for use corporations (sec. 5) their income tax return for the amount that outside of the foreign country of organiza­ Under present law, where property other has been withheld by the employer and re­ tion (where the property is sold to, or was than money is distributed by a corporation port as income the gross wages before with­ acquired from a related corporation). In­ and received by a second corporation which holding.) come in this category (3) may be kept out is a stockholder, the amount of the distribu­ This provision will apply with respect to of the tax base by being reinvested in a busi­ tion to be taken into account by the recipi­ all dividends from foreign corporations re­ ness in a less developed country. ent (e.g., as a dividend) is the lower of the ceived after December 31, 1964. It will apply The amount treated as having been dis­ fair market value of the property or the to dividends from foreign corporations re­ tributed is the profit accumulated after 1962 adjusted basis of the property in the hands ceived during 1964 to the extent that these to the extent that it is invested in certain of the distributing corporation. The bill are paid out of current earnings and profits. prohibited types of property which include: modifies this rule by requiring that distribu­ F-5. Allocation of sales income between a ( 1) assets which are over and above tions from foreign corporations be taken into U.S. corporation and a foreign subsidiary amounts necessary for the operation of the account at fair market value. This will pre­ (sec. 6) business, vent American parent corporations from (2) assets used in a "new" trade or busi­ realizing on the profits of a foreign subsidi­ Under present law, a U.S. corporation sell­ ary, at a minimum U.S. tax liability, through ing products abroad through a foreign sales ness in a developed country, i.e., one which the company has been engaged in for 5 years having the subsidiary distribute appreciated subsidiary may obtain considerable tax ad­ property. vantage by charging a low price to the for­ (or on December 31, 1962), eign sales subsidiary so as to show very little (3) most assets situated in the United F-10. Distributions of foreign personal hold­ profit on the U.S. manufacturing operation States. ing company in.come (sec. 7) and thus incur very little liability for U.S. These income inclusion provisions are The bill changes the provisions in present tax. When the foreign sales subsidiary sells drafted to avoid having the same income law dealing with foreign personal holding the product at a substantially higher price, taxed under more than one provision. It companies. At present, the income of these the total profit might be reflected in the is also provided that income which is taxed companies is taxed to certain U.S. sharehold­ income of the sales subsidiary where it to a U.S. person under these provisions will ers only if 60 (or in certain circumstances might be subject to a very low rate of tax. not be subsequently taxable to the same 50) percent of the income is from foreign This is also possible, in reverse, by paying person if it is paid to him as a dividend. personal holding company income sources. a high price for things bought from the for­ Appropriate provisions are included for the Under the bill, the foreign personal holding eign subsidiary. The provision in existing adjustment of basis in stock and for the company income will be taxed proportion­ law to deal with this distortion of income appropriate foreign tax credit. ately to the shareholders if it represents 20 4046 CONGRESSIONAL RECORD -HOUSE March 13 percent or more of its income. Where the But this marks the first time that I have your help in explaining that education is a foreign personal holding company income spoken to so many hundreds of representa­ public charge, because it ls national power. represents 80 percent of the total income, tives of our most distinguished women's It is the source of national economic growth, then all of the income of the company will colleges and their guests. for advances in science and technology can­ be taxed to the shareholder. This is enjoyment for me. It is also quite not be made without it. It is the guardian F-11. Information on foretgn entities a serious challenge. For tonight we come of our democratic institutions, for only an (sec. 20) together to consider serious questions and educated responsible people can successfully to ponder serious answers. govern themselves. It is the benefactor of The bill extends the provisions of exist­ These have to do with the strength of our the individual, for it secures his happiness ing law that permit the Secretary of the Nation-nothing less-and our Nation's need by enabling him to develop his own talents Treasury to obtain information with respect for help in a time of need. and to fulfill his personal aspirations. to certain foreign corporations owned by A nation's strength, of course, lies in the We need your help in untangling old hack­ Americans. This extension of the informa­ strength of all its people. A nation's strength neyed myths that hold us back and confuse tion provision ls necessary for the enforce­ is tested in many ways and in many times. the basic questions. These questions are ment of the provisions dealing with con­ It is tested in the output of our farms stark and simple: Are we to have adequate trolled foreign corporations. and industries, in the achievements of our schools and excellent teaching? Or are we great men and women, in the capability of to deprive ourselves and our children of the our arms, in the genius of our science, and maximum contribution they are capable of in the vigor of our commerce. making to themselves and to the world? Secretary Ribicoff Says His Department But it is tested too in quieter places: In We owe it to ourselves and to the world, the well-being of its older citizens, in the to our own dignity and self-respect, to set Is Too Big and Calls for a Department care provided for the unfortunate and af­ our own standards of educational behavior, of Education, Arts, and Sciences :flicted, and, most importantly, in the aspi­ regardless of what other nations might do. rations of its youth and the caliber of its And we owe it to ourselves and to the world schooling. to strengthen our ability to meet the chal­ EXTENSION OF REMARKS I believe this is most important for our lenges to those new tyrannies whose leaders OF democracy is no stronger than our hopes for threaten to bury us. the future. Our country can be no richer This is a power struggle of immense HON. CARROLL D. KEARNS than our teachers• minds and our children's proportions, and the power on each side is OF PENNSYLVANIA opportunities. education. IN THE HOUSE OF REPRESENTATIVES This has always been true. But, since "Socialism does not require war to spread quiet strength is less tangible than arms or its ideals," Nikita Khrushchev tells us. "Its Tuesday, March 13, 1962 missiles, it has always been more difilcult to weapon is its superiority over the old system realize. in social organization, political system, econ­ Mr. KEARNS. Mr. Speaker, the Sec­ Thomas Jefferson stated it very clearly. omy, the improvement of the standard of retary of Health, Education, and Wel­ When his proposals for public education living and spiritual culture." fare has proposed a new Department of were defeated in the Virginia Legislature, he He is convinced that capitalism and de­ Education, Arts, and Sciences on the said this: mocracy are in their final stages of decay. Presidential Cabinet level, and expressed "Legislators do not generally possess "The United States," he told the 22d party the opinion that his present Department enough information to perceive the impor­ congress last fall, "the strongest capitalist of Health, Education, and Welfare is too tant truths, that knowledge is power, that power, is past its zenith and has entered knowledge is safety, and that knowledge is the stage of decline." big. He said the education area of his h appiness." Department should be merged with the And his massive manifesto to this congress Knowledge is power, knowledge is safety, outlined a 20-year plan for Soviet education, arts and sciences to give them the im­ knowledge is happiness-these are important geared to hasten our decline. Its major goals portance they deserve in national affairs. truths. But legislators did not generally are these: Secretary Ribicoff was addressing the perceive them in Jefferson's day, and many Eleven years of compulsory education for alumnae of seven top American women's still do not, as we found to our dismay last all children (i:t is now only seven) with colleges in a meeting at the State De­ summer. And legislators are not beings set major emphasis on the basic sciences and partment auditorium in the Nation's apart on some high and mighty pinnacle. Communist ideology; They represent constituents. They refiect Public upbringing of children in nurseries Capital. The alumnae clubs were those the thoughts of the people of these United of Barnard, Bryn Mawr, Mount Holyoke, and boarding schools (to separate them from States. any deviationist lnfiuence of their parents); Radcliffe, Smith, Vassar, and Wellesley An outstanding graduate of Vassar, now Drastic improvement of school facilities­ Colleges. president of Radcliffe, said last year that new buildings, better equipment, broad Secretary Ribicoff said the cold war "there has probably never existed on this emphasis on physical fitness, and more at­ will be won or lost between the class­ earth a group of people with quite the free­ dom in the use of time that educated Ameri­ tention to the arts; anC: rooms of America and the schools of can women now possess." Expansion of higher education and special­ Moscow and Peiping. How right this ls. And how great a po­ ized secondary schools and adult education If the President sent a plan for a De­ tential for national good rests in this free­ programs, so that "tens of mlllions of people" will be given specialized training in the partment of Education, Arts, and dom possessed by women of intellect and scientific and technical fields. Sciences to the Congress it is my belief training. For what, after all, is freedom in the use This is a 20-year plan. In this period our that it would have an entirely different Nation too will be carried forward, if only reception than that given his plan to of time? Is it the unfettered right to a narrow enjoyment of amuence and self or by momentum. create a Department of Urban Affairs even family fulfillment? I know the alum­ Some of these goals are monstrous and and Housing. Certainly education is one nae of these colleges agree with me that it should always be rejected by a free society. of the major concerns of the American ls not. Rather it is the pursuit of more The Soviet Union treats education as a people, but it cannot be argued that a meaningful goals-the recognition of neces­ source of power and has set about methodi­ Department of Urban Affairs and Hous­ sity, the ability to control reality, to master cally to obtain that power. We have not. ing is of major concern to our people. the tools and do the job at hand. American education today, as a whole, is There are many jobs at hand, of course, still superior to education in the Soviet While I strongly disagree with many for you and for the leaders of your Govern­ Union, an impressive recent National Science of the points made by Secretary Ribicoff ment. But I submit that one urgent job Foundation study tells us. But the Soviets in his speech, I include it here for the confronts us both. This ls the improve­ have already gained a sharp advantage in information of my colleagues. In doing ment of our educational system in these the fields of science and technology. so, of course, I certainly in no way sup­ United States. In the three decades from 1928 to 1959, we port many of his conclusions: Somehow, someway, we must together produced 60 percent more college graduates shake the American people up. We must than the Soviet Union. In the same period, EDUCATION Is POWER remind them that education is no longer a however, they produced almost twice as (By Abraham Ribicoff, Secretary of Health, private affair. It is, as President Kennedy many engineers. Yet only 10 years ago we Education, and Welfare) has so well put it, "the right, the necessity, were ahead of them in this field. In 1950, This meeting is a first in many ways. and the responsibility of all." we graduated 58,000 to their 36,000. Today, Your alumnae clubs of Barnard, Bryn You educated women are a source of great in the early 1960's, according to this study, Mawr, Mount Holyoke, Radcliffe, Smith, Vas­ strength in our land today. We need you to the situation is reversed: They will be train­ sar, and Wellesley have had many meetings. help disturb the public apathy toward edu­ ing engineers at the rate of 126,000 per But this one marks the first time, they tell cation, to dispel the simple trusting faith year. Meanwhile we are training only 45,- me, that you have pooled your rather formi­ in our ability always somehow to muddle 000-fewer than we were training 10 years dable forces in our Nation's Capital. through. ago. And I have spoken at many academic func­ We need your help in clarifying the issues In the same 30-year perlod-1928-59- tions, at many colleges and universities. and straightening out the facts. We need the Soviet Union trained almost 2 Y2 times 1962 CONGRESSIONAL RECORD - HOUSE 4047 as many medical doctors as we did and tem upon which the future of our Nation, trustees. The danger is apathy. The dan­ 2¥2 times as many agricultural special­ the strength of our people, and the readiness ger is that our people--yourselves among ists. In chemistry, physics, mathematics, of our arms depend? them--should not exercise their responsi­ biology, and the earth sciences, we still hold We are allowing several million school­ b111ties under freedom, and that no re­ a slight edge, but it is narrowing. In all children to sit in crowded rooms and double sponsibility should exist. The result would other fields, they lag far behind us, as one sessions this year because we lack 127,000 be the erosion of our human resources. might expect, since they have little interest classrooms. We seldom attract our ablest That is just what our adversaries are in free exploration of the humanities and students to the teaching profession because banking on, and they are willing to wait a the social sciences. we won't pay teachers a decent wage. We generation-or two, if necessary-while we Their major efforts so far have been in have permitted outmoded restrictions to allow our schools and colleges to struggle the training of specialists needed by the exclude well-educated and qualified women along, unaided. . state. This they have resolved to continue. from the classrooms. We have voted "no" This administration is not wlllinc; to sit In. addition, beginning next year, they plan to local school bond issues; "no" in our idly by and let this happen. We feel that to expand their elementary and secondary State legislatures; "no" to Federal aid. the Federal Government has the responsi­ ·schools and increase adult education pro­ Every year we are letting a million young bility to provide leadership in the .field of grams. Their ratio of students per class­ people drop out of high school before they education, to give generous assistance to the . room teacher, incidentally, according to their can learn a skill or a trade. The result is States and to higher education, so that they 1959 statistics, was 18 to 1. Ours that year a labor market glutted with unskllled work­ in turn can fully assume their own responsi­ was 26 to 1. ers, delinquency, crime, and crowded relief bilities for the education of our youth. Across the Pacific, there is another threat­ rolls. We have given careful study both to the ening power-massive, ruthless, and again Every year we rob the Nation of the talents education needs in the country and to the dedicated to the obliteration of our way of of thousands of bright, eager students who most appropriate manner the Federal Gov­ life. Although they may differ with their cannot afford to go to college. ernment can help to meet these needs. Soviet comrades on various matters, and al­ And consider what wlll happen in the next We have asked the Congress for legisla­ though the Bamboo Curtain is so tight that few years as the tidal wave of students now tion to provide assistance to institutions of we can learn little about them, their aim is in the lower grades hits the colleges. Where higher education for construction of aca­ clear. Their aim ls power. And their weap­ are the fac111tles to teach them in, even if demic facilities and for scholarships to tal­ on is education. they can pay their way? Where are the pro­ ented and needy students. We are encour­ In Peiping, in June 1960, a conference of fessors to instruct them? College enroll­ aged by the action that both Houses have educational and cultural activists was told ments last fall (1961) were 3.8 million. In taken on this legislation and are hopeful that, in 1957 and 1958, a resolute strug­ 1970 they are expected to be almost double that the full needs of higher education will gle was launched • • • on the educational that number-if we can squeeze them in. be recognized here. front to refute the bourgeois concepts of ed­ And what about the quality of education ucation for education's sake, culture for cul­ in our schools and colleges? We used to We have asked for across-the-board aid ture's sake, and separation between mental question the quality of Soviet scientific to States for public school construction and and physical labor, to resolutely implement training until sputnik proved us wrong. teachers' salaries. the guiding principles of making culture and We raise our eyebrows at the claims of the We have requested legislation for a com­ education serve the polltics of the proletariat Chinese Communists. "Most improbable," prehensive program to improve the quality as well as other party policies." we say. But we may be mistaken again. How of instruction in the schools. In the decade from 1949 to 1959, a period about ourselves? How do we m-easure up? We have asked for special training pro­ proclaimed in China as the "great 10 years," It is comforting to hear the President say: grams for scientists and engineers, to meet the Communists report that enrollment in "Americans are still the best educated and our defense and industrial needs; for doctors adult literacy courses climbed froin 657,000 best trained people in the world." and dentists, to meet our critical health to 40 million; that primary school enroll­ We are the best, but one out of every five needs; for teachers of handicapped children; ments increased from 24 to 86 million; that of our elementary and secondary school­ for an adult education program to erase secondary school enrollments jumped from teachers has substandard training. We are illiteracy in our population; for a program a little more than 1 million to almost 10 the best, but most teachers' colleges have to bring education to the children of 1 mil­ million; and that higher education, where lower standards than professional schools of lion migrant agricultural workers; for re­ the critical scientific and technical skills are medicine, law, and science. We are the best, search services to stimulate the development developed, went from 117,000 students to but over 8 million Americans aged 25 or more of educational television; and for aid to the 660,000. have attended school for less than 5 years, arts. Impossible, exaggerated claims? We really and more than a third of these absolutely These are urgent needs where we feel the aren't sure. And we don't know much about cannot read and write. Federal Government can and should come the quality of Chinese mass education. But We are still the best despite these things. to the aid of the States and communities we do know-and this is what is important-­ But our progress ls not sufficient to meet our and their needy citizens. we do know that Communist China is mak­ needs, and our national conscience hurts. Does this usurp local power? Does this ing an unprecedented, gigantic effort to We have wrung our hands for years about our threaten academic freedom and local auton­ teach its people the skills they need for educational failures. The colleges complain omy? Not at all. It does give State and world domination. that they have to teach high school level local governments and institutions of higher I am not suggesting that we should follow subjects. The high schools blame the gram­ education the wherewithal to do their job. their example. I am not suggesting that mar schools, and the grammar schools blame It does offer every young person with talent we should turn our educational institutions the parents. "Why can't Johnny read? Why the opportunity to develop that talent for into factories for the production of scientists can't Johnny spell? Why can't Johnny add?" the national interest and for himself. and technicians. I specifically reject this There are reasons, many reasons, all the way The power of education, this supreme notion. I am suggesting, however, that there up the line. And all of us must share some power which governs our national safety and is a direct connection between education of the blame. our individual happiness, this power rests and defense, between education and power, American education needs help now, all in our hands, and in yours. which the people of this country have not the way up the line. And all of us must You have always recognized your obliga­ fully grasped. share in giving that help. In plain language, tions to your own distinguished colleges. The Department of Labor has estimated more money is needed-from local and State Through your continuing support, these that in the next 10 years we wlll need 72,000 governments when possible. But when they great private institutions will remain a well­ engineering graduates a year for industry cannot do the job alone, they need Federal spring of talent for American life and cul­ and defense projects. But less than 45,000 funds. ture. But yours is a broader responsibllity. engineers were graduated last year at all There is absolutely no substance to the Let me take this opportunity to ask the levels, and enrollments in engineering have contention that Federal money means Fed­ educated women of this land, alumni of declined again this year for the third year eral control. Federal aid to education is no your colleges and others, to use their ability, in a row. innovation; it has had a long and honorable to put their freedom in the use of time to The National Aeronautics and Space Ad­ history from the Northwest Ordinance of 1787 work in a massive effort in behalf of edu­ ministration alone needs 13,000 additional through the Morrlll Act of 1862 to the Na­ cation. Visit your public officials and share scientists and engineers to land a manned tional Defense Education Act of 1958. The your thoughts with them. Visit your elected expedition on the moon. Where will they Federal Government, under Democrats and representatives-they are eager to know your come from? Defense supporting industry is Republicans, has provided blllions of dol­ views and will be deeply influenced by them. already short of scientists, and instltutic:.is lars for education without any encroach­ I leave the details to you. Despite anti­ of higher education have been hard put to ment on local institutions. quated rules and shopworn regulations, compete with industry in this field and to No one in our Department or anywhere intelligent educated women who have their hold onto their teaching staffs. The well else in the Federal Government has any in­ own families safely launched can help of talent, which has nourished us so tention of controlling education or any power enormously in our education crisis. In New generously in the past, today is running to do so, nor will anyone have so long as our York_City, for example, a small number of dangerously dry. Nation remains alive. educated women have volunteered to per­ What are we doing about it? What are The danger that we face today is not con­ form many of the tasks for which classroom we doing to strengthen the educational sys- trol, whether Federal, Sta~, local or private teachers have no time. They are giving 4048 .CONGRESSIONAL ·RECORD - - HOUSE March 13 individual attention to children· with emo­ Hebrew name-Morim is the Hebrew bership Chairman Emanuel M. Ebbin tional problems and language handicaps. word for teachers-has annually donated and Harry A. Geller. They are conducting after-school sessions in 50 percent of its dues to cultural and edu­ The report of the year's activities de­ remedial reading and in the arts. But more than this. Alfred North White­ cational activities, such as university li­ livered by Dr. Herman P. Mantell, head wrote half a century ago: braries, the children's ward in a hos­ stressed the cultural, educational and "When one considers in its length and in pital, .educational programs on radio or social program for the year-the non­ its breadth the importance of this question television, the mayor's committee­ sectarian art exhibit of teachers' paint­ of the education of a nation's young, the Mayor Wagner-for scholastic achieve­ ings and sculpture, interfaith commit­ b oken lives, the defeated hopes, the national ment providing scholarship aid to needy tees, the musicale, forums, dance, teas, !allures, which result from the frivolous high school graduates of all faiths, and summer and holiday excursions, pro­ inertia with which it is treated, it is difficult research studies on mentally retarded posed group insurance, convalescent to restrain within oneself a savage rage. In the conditions of modern life the rule is children. service, and charitable donations. absolute, the race which does not value Throughout the years a newspaper, The legislative program for funds for · trained intelligence is doomed. Not all your the JTA Bulletin, has been published public education was discusEed by City heroism, not all your social charm, not all quarterly. Its first editor was Dr. David Comptroller Beame, followed by an in­ your wit, not all your victories on land or J. Swartz, now an assistant superin­ terlude of folk singing directed by Marc at sea, can move back the finger of fate. tendent; and its current editor is Irving Olf. Following this, Dr. Mantell be­ Today we maintain ourselves. Tomorrow Rosenblum, principal of one of the city stowed the famed AVODAH Award of science will have moved forward yet one more step, and there 'wm be no appeal from schools. An early issue of the bulletin the association, granted for distin­ the judgment which will then be pronounced recounts the program of a forum on our guished service to humanity through on the uneducated." cultural heritage directed by Dr. Her­ Jewry, upon Yeshiva University in rec­ The uneducated American is like the man P. Mantell and conducted at Tem­ ognition of its pioneering years, its ever­ fallow field or the abandoned mine. Liberal ple Emanuel, Fifth Avenue, New York, expanding service and its glorious vision education, which ls one of our great goals N.Y. of the future. The Honorable Charles in the present struggle, is also one of our H. Silver responded for the university. greatest assets. The annual luncheon of the Morim has The young men and women who are being long been noted as one of the outstand­ He in turn received a surprise award for graduated from our universities will outlast ing professional and cultural affairs on his many years of devotion to the wel­ any of the la test missiles which are coming the busy calendar of noteworthy events fare of the children and the teachers in o1f the assembly lines. They will not only in New York. Traditionally the lunch­ the educational system of New York. enrich our national life and fortify our eon has been conducted at the Waldorf­ Dr. Mantell expressed the gratitude of national safety, they will tea.ch and foster Astoria during Brotherhood Week. The the association for the untiring efforts educational growth. and diligent service of Luncheon Chair­ They will continue the tradition of intel­ 35th annual luncheon was held this lectual freedom that has been growing for year on Washington's Birthday. The man Martin S. Dodell and his assistant, thousands of years. Their development ls featured speaker was Louis Nizer, Miss Ann Kessler. Following a solo worth our time, our public funds, our energy, attorney, lecturer, and · author of "My "Bless This House" rendered by Commis­ and our dedicated support. Life in Court." A gathering of 1,500 sioner Garamella, the benediction was responded warmly to the welcoming pronounced by Rabbi Harold E. Gordon, greeting, "Shalom," of Dr. Herman P. executive vice president of the New York Mantell, president. The program in Board of Rabbis. Brotherhood Week Luncheon of Jewish accordance with protocol opened with With a final Shalom in farewell, Presi­ the singing of Hatikvah by Commis­ dent Mantell closed the program for the Teac~ers Anociation of New York, sioner Sylvester Garamella and the 35th annual luncheon and extended a re­ Waldorf-Astoria Hotel, February 22, "Star"-Spangled Banner" led by -Mrs. union invitation for the 36th scheduled 1962 Harri~t Popper, accompanied by Mrs. for February 12, 1963, at the Waldorf.­ Belle Seretoff. The invocation was de­ Astoria. livered by Rabbi Arthur Hertzberg of A distinguished array of speakers has EXTENSION OF REMARKS Temple Emanu-El of Englewood, N.J. addressed the association at its annual OF The noted guests were then introduced luncheon. Among the noted speakers by Past-President Irving Rosenblum. were M. Maldwin Fertig, counsel to HON. HERBERT ZELENKO Included among the guests were the Govs. F. D. Roosevelt and H. Lehman; OF NEW YORK Honorable Herbert Zelenko, Congress­ Dr. Julius Mark, senior rabbi of Temple IN THE HOUSE OF REPRESENTATIVES man from Manhattan; distinguished Emanu-El of New York; Dr. Abraham Tuesday, March 13, 1962 jurists, Hon. Thomas Aurelio, George Leon Sachar, president of Brandeis Uni­ Postel, Daniel Gutman, James E. Lo versity; Benjamin Cohen, Assistant Sec­ Mr. ZELENKO. Mr. Speaker, in the Piccolo, and Morton R. Tolleris; Hon. retary of U.N.; Dr. David del Sola Pool, public school system of New York City, Louis I. Kaplan, commissioner of in­ Spanish and Portuguese synagogue; Dr. in about 1925, the three major re­ vestigation; members of the board of Israel Goldstein, president of World ligious groups, the Catholic Teachers education, Hon. Brendan Byrne, Hon. Jewish Congress; Rabbi Robert Gordes, Association, the Protestant Teachers Morris Iushewitz, Judge Samuel R. Temple Beth El of Rockaway Park; Association, and the Jewish Teachers Pierce. and Hon. Clarence Senior, Rabbi Emanuel Rackman, president of Association, joined to help each other Comptroller Abraham D. Beame, Asso­ the New York Board of Rabbis; Hon. solve common problems. This group is ciate Superintendents John B. King and Semah Cecil Hyman, Consul General of known as the Coordinating Community Joseph 0. Loretan; Superintendents Israel in New York; Rabbi Harold H. of Teachers of Religious Faiths. A Arthur Hughson, David J. Swartz, Dr. Gordon, executive vice president of the major objective of this group was "to Abram Kanof, president -0f American New York Board of Rabbis; Dr. Alex­ cooperate with the organizations of Jewish Historical Society; Mrs. Pauline ander M. Dushkin, dean of School of other faiths for the promotion of good Mantell, First Lady of Morim; President Education of Hebrew University in Jeru­ will and understanding.'• The three Emil H. Tron, of the Protestant Teachers salem; Hon. Irwin D. Davidson, judge organizations have collaborated in nu­ Association; President Leonard J. Flied­ of court of general sessions of New merous activities such as brotherhood ner, of the Catholic Teachers Associa­ York. and interfaith programs in the city of tion; and Jacob Jacowitz, school news At the Civil War Centennial luncheon New York. editor of the New York World Telegram. 'of February 22, 1961, the guest speaker All three groups exchange invitations was the noted rabbi and eminent frequently to various professional func­ ·The officers for the year were presented: author-historian, Dr. Bertram Wallace tions, such as forums, art exhibits, Dr. Herman P. Mantell, president; Harris Korn of the Congregation Kenneseth luncheons. They also interchange in­ Shafner, vice president; Michael Lein- Israel in Elkins Park, Philadelphia. An formation regarding their programs, e.g., . wand, treasurer; Miss Dorothy Posner, acknowledged authority in the role of group insurance, banquet plans, tours, . secretary; borough vice presidents Frank Jewry in the Civil War, he held his and excursions. Sacks, Jerome Greenblatt, Leonard audience enthralled throughout a well Since its earliest years the Jewish -Marmelstein, Martin S. Dodell, Norman documented exposition of the story of Teachers Association-Morim, to use its Harris, Editor Irving Rosenblum; Mem- the "Jew in Gray and Blue."