HOUSE of REPRESENTATIVES-Monday, March 9,1981 the House Met at 12 O'clock Noon

3778 CONGRESSIONAL RECORD- HOUSE March 9, 1981 HOUSE OF REPRESENTATIVES-Monday, March 9,1981 The House met at 12 o'clock noon. Tom was the fifth recipient of the cern for the security of the United States The Chaplain, Rev. James David John McCormack Award which is pre were to be used as justification for addition Ford, D.D., offered the following sented each year to a House employee al United States military aid to the present prayer: for outstanding service to the House government in El Salvador. Neither the usee nor I am complacent about the ac I will call to mind the deeds of the over a long period of time. The Door tions of other outside powers in the El Sal Lord: Yea, I will remember Thy won man's Society named him "Man of the vador conflict . . . Our position is to oppose ders of old. I will meditate on all Thy Year" in 1976. The Italian Govern military aid and intervention from all out work, and muse on Thy mighty ment in 197 4 presented him with the side powers. We urge and support political deeds.-Psalms 77: 11, 12. Order of Commendatore, which is the pressure and other diplomatic measures by 0 God, may Your mighty acts in medal of honor for public service. As Latin American nations and by ourselves days past continue to inspire, and may you know, Tom was very proud of his and our allies to stop the flow of arms from all Your gifts fill our hearts. We cele Italo-American heritage and worked Cuba through Nicaragua to El Salvador. brate Your love to us and to all people, hard to advance the cause in recent But as a part of this approach we earnestly years. Our prayers are for him, Claire, and vigorously oppose the sending of United particularly those more dear to us States military assistance to El Salvador. whom we name in our hearts before his wife, and children, Carmen and You. We gain assurance that You Connie. It is my own belief that opposition watch over us, You forgive and renew Friend may pay their respects to within the United States to President us, and Your comforting spirit never Tom and his family on Monday the Reagan's policy in El Salvador is wide abandons us. Grant us Your abiding 9th and Tuesday the lOth from 3 to 5 spread and that it is growing quickly. peace each day and in eternity. Amen. and 7 to 9 p.m., at the Collins Funeral Whatever the reasons for the results Home, 500 University Boulevard, West of the 1980 elections, they did not Silver Spring. The funeral services will stem from any national wish to see THE JOURNAL be held Wednesday the 11th with a 10 large numbers of U.S. military advisers The SPEAKER. The Chair has ex a.m. mass, St. Bernadette Church, 72 sent to help fight a civil war in Central amined the Journal of the last day's University Boulevard, East Silver America. proceedings and announces to the Spring. I urge my colleagues to cosponsor House his approval thereof. Mr. Speaker, I ask unanimous con H.R. 1509. Pursuant to clause 1, rule I, the sent to address the House for 60 min Journal stands approved. utes at the close of business this Wednesday, March 11, so that Mem CUTTING STUDENT AID bers who wish to do so may join with MESSAGE FROM THE SENATE me in paying tribute to this special 1509, to terminate U.S. military assist is in the Seventh District of the gen Mr. ADDABBO. Mr. Speaker, it is ance to the Government of El Salva tlewoman from Illinois California State Uni Sergeant at Arms and majority pair the Subcommittee on Inter-American versity, which is in the 21st District of clerk. Tom died at his home in Silver Affairs, the most Reverend James A. the gentleman from California

0 This symbol represents the time of day during the House proceedings, e.g., 0 1407 is 2:07 p.m. e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. March 9, 1981 CONGRESSIONAL RECORD- HOUSE 3779 AMERICAN CONSERVATORY OF MUSIC, cation such a.s savings plans, tuition tax responsibility as the leader of the free Chicago, flL, March 2, 1981. credits, and possibly others. world to act decisively on this matter. Hon. PETER A. PEYsER, My staff and I would be more than willing Congress of the United States, to render any possible assistance in your ef Washington, D. C. forts to keep higher education strong in our REVOLVING CREDIT FUND FOR DEAR MR. PEYsER: Your letter to my pred nation. Thank you for your initiative and ecessor, Mr. Leo Heim, wa.s given to me for AG EXPORTS AND TRADE REP leadership in this matter. RESENTATIVE reply. Kindest personal regards. May God I have already written to my own con always bless you!

79-059 0 - 84 - (Vol 127 Pt.3) - 64 3780 CONGRESSIONAL RECORD- HOUSE March 9, 1981 ble by an adequate number of individ tired people, it must begin with the The WIC program is invaluable and uals who can devote proper attention object of being fair-not with the its effects are not concentrated in just to all areas of importance in the agri object of finding some tricky or decep one regional area of the Nation. Un cultural trade area. tive way to save money at their ex fortunately, even at present funding, While this legislation does not re pense. the WIC program cannot serve all quire that this additional Deputy those who would qualify for aid. To Trade Representative be established further reduce WIC moneys would be to deal exclusively with agricultural WIC PROGRAM IS INVALUABLE a grievous mistake and would seriously trade issues, I would hope that the Mick Staton, Steve PLE OF FISCAL PRUDENCE as individual Members of Congress, Gunderson, Marge Roukema, Clint AND CUT COMMITTEE STAFFS our ability to measure the real atti Roberts, Jim Dunn, Sid Morrison, Ray Mexico to committee staff and funding. In a arise between our countries. In the seen fit to reduce inflated committee Mr. MICA. Mr. Speaker, I bring sad past they have been solved through budgets across the board. news to you and to my colleagues. Wil friendly discussion and negotiation. As I see it, the funding resolutions liam T. Roy, who served as the Assist They should be solved in the same would have been brought to the floor ant Parliamentarian in the House of manner in the future. long ago had not the majority failed Representatives for some 27 years, and March 9, 1981 CONGRESSIONAL RECORD- HOUSE 3783 who retired from that position March States of America v. Peoples Temple of the will have to take emergency action to 1, 1958, died this past Saturday, on Disciples of Christ, a California corpora provide more funds because of an im March 7, in Delray Beach, Fla., in my tion, et aL This matter is presently being pending shortfall. Moreover, the pro litigated in the United States District Court district, where he has made his home for the Northern District of California gram is plagued with a high national since his retirement. . Under a previous being recouped. The·funds freed up in I am happy to have had the opportunity order of the House, the gentleman this manner would be available for re to be of service to my fellow Democrats by from Vermont cation method is straightforward-to ant and the call for reduced Federal study of the concept. After 2 years of taling monthly household food stamp spending and budget cutting has work, FNS, which under the Carter benefi~ and preparing W-X's. More sounded in no uncertain terms across Administration opposed recoupment, over, increased administrative tasks, the entire country, it is entirely appro released a thorough if biased study such as they are, will be more than priate that individuals experiencing which gave guidance to significant im compensated for by the return of only short-term need, our construction provemen~ in the legislation. excess revenues to the States, and by workers, for example, whose jobs are For example, the administrative the incentives to computerize and by nature seasonal, should repay some burden on the State welfare offices streamline which will result from the or all of their benefi~ when they are has been minimized. For the purpose implementation of recoupment. able to do so. Recoupment reinforces a of recoupment, household food stamp On May 8 of last year, the House notion that has long been at the heart benefi~ are allocated equally among adopted recoupment with these im of our culture, the notion that while individuals 19 years of age or older. provemen~. as a floor amendment to the Federal Government should pro State food stamp offices will simply S. 1309, the Food Stamp Act Amend vide a helping hand when necessary, it mail to each adult participating in the men~ of 1980, by the decisive vote of cannot and should not dispense hand program a form W-X, just like theW- 241 to 147. Unfortunately, because the ou~ with no strings attached. 2 which all employers now send out, Senate had no comparable provision in Mr. Speaker, let us get moving and listing the amount of benefi~ received i~ version of the bill, and because bring this program under control. by that adult's household and that some Members felt that Ways and H.R. 2368 adult's individual allocation. Should Means and Finance jurisdiction over A bill to amend the Food Stamp Act ·of 1977 this adult-per-capita scheme prove in those aspec~ of recoupment affecting to make individuals who have excessive equitable for unusual family or house the Internal Revenue Code had been income ineligible to participate in the food hold situations, the Secretaries of Ag circumvented, my amendment was stamp program, and to make such individ riculture and Treasury would have dis dropped in conference. uals liable for the value of coupons re cretionary power to devise equitable In the conference report accompany ceived while so ineligible allocations. In any event, food stamp ing S. 1309, however, the conferees re Be it enacted by the Senate and House of offices will not be required to calculate spectfully requested that the Ways Representatives of the United States of the recoupment liabilities of food and Means and Finance Committees America in Congress assembled, stamp households according to compli hold hearings on recoupment by May SHORT TITLE cated formulas, nor to reconcile food 1, 1981, so that the House Committee SECTION 1. This Act may be cited as the stamp uni~ and tax uni~. on Agriculture and the Senate Com "Food Stamp Reform Act of 1981". Once the W-X's have been mailed mittee on Agriculture, Nutrition and AMENDMENTS TO FOOD STAMP ACT OF 19 7 7 out, the recipient would include the Forestry might have the benefit of SEC. 2. The first sentence of section . food stamp amount subject to possible such deliberations prior to the reau 4 of the Food Stamp Act of 1977 is recoupment on his or her Federal thorization of the food stamp program amended by inserting "and funds received income tax return, and then deter this year. from the Secretary of the Treasury under mine what repayment, if any, was nec During the Conference, former section 6306 of the Internal Revenue Code essary according to easily understood Ways and Means Chairman AI Ullman of 1954" after "of this Act". The last sentence of section 5(a) of the workshee~ circulated a letter addressed to ToM tables and provided by the Food Stamp Act of 1977 is amended by in IRS. Since in most cases .recoupable FoLEY, then chairman of the Agricul serting ", conditional upon such repayment households will be receiving substan ture Committee, recommending that as may be determined pursuant to section tial refunds from the IRS, fully 85 recoupment not be included in S. 1309, 18 of this Act," after "furnished". percent of the recoupable benefi~ but committing Ways and Means to Section 11 of the Food Stamp Act of could be captured from these refunds. conducting hearings on the proposal 1977 is amended- Other changes in recoupment en "at the earliest possible opportunity." (1) in paragraph <2> by striking out couraged by constructive FNS criti This sentiment in favor of prompt "household.", and inserting in lieu thereof cism include: the returning of as much hearings was echoed by both majority the following: "household, and of the condi tions u,nder which repayment in cash for as $15 million in excess revenues to and minority members of the Ways any excess benefits received by members of the State food stamp agencies to and Means Committee during floor an eligible household may be required in ac offset expenses, with each State re debate. cordance with section 18 of this Act. A State ceiving an amount in proportion to i~ In order that last year's legitimate agency shall provide a description of such share of the total net revenues; the objections over Ways and Means juris conditions in understandable terms to each exempting from recoupment liability diction be resolved, I urge the commit individual who is 19 years of age or older of all adul~ participating in the food tee to take advantage of the opportu and who is a member of an eligible house stamp program during the entire year, nity it now has to hold hearings on re hold which applies to participate in the food stamp program."; as well as those households with in coupment. A decision to do so would <2> in paragraph (19) by striking out the comes consisting oi.uy of supplemental not only be in accordance with the re period and inserting in lieu thereof "; and"; security income benefi~; and the quest of the 1980 food stamp confer and elimination of a possible work disin ees, but also with the will of the <3> by adding at the end thereof the fol centive through the use of the 50 House, which has clearly indicated it lowing new paragraph: cen~ on the dollar schedule although finds a great deal of merit in the re "(20) that the State agency shall furnish I question whether someone who is coupment approach to food stamp to each individual to whom section 18 of told his food stamps will be a loan reform. this Act applies the information required in rather than a grant is less likely to In closing, Mr. Speaker, recoupment section 18 and shall certify to the Sec retary of the Treasury the information re look for work. seeks to apply to the food stamp pro quired in section 18(d)(2).". Some States have objected that food gram an approach which has already (d) The Food Stamp Act of 1977 is amend stamp offices would have to expand been adopted in other governmental ed by redesignating section 18 as section 19, their staffs and acquire costly equip programs. The concept of giving and by inserting after section 17 the follow ment to properly administer this pro gran~ to the most needy and low- or ing new section: posal. However, the bill I am introduc no-interest loans to the less needy is "REPAYMENT FOR EXCESS BENEFITS RECEIVED ing today requires no additional collec currently in use, in a number of differ "SEc. 18. Each individual who is 19 tion of client data. Food stamp case ent forms, in the various loan pro years of age or older during any entire tax workers would spend minimal addi- grams and Small Business Administra- able year and who, in any taxable year, par- March 9, 1981 CONGRESSIONAL RECORD- HOUSE 3785 ticipates in the food stamp program as a " the name and address of each indi "(2) For purposes of paragraph , tbe member of any household participating in vidual 19 years of age or older who partici amount of funds to be transferred to each the food stamp program, and has countable pates in the food stamp program in such State shall be an amount equal to the prod income in excess of the exempt amount State in such calendar year and who is not uct of- shall be liable to the United States as deter an individual described in subsection of "(A) the lesser of- mined in accordance with paragraph <2> and this section; "(i) 15 per centum of the funds trans paragraph <3> of this section. " the amount of coupons allocated to ferred to the Secretary under section 6306 "(2) For purposes of paragraph (1), in the each such individual in such calendar year of the Internal Revenue Code of 1954; and case of any individual who files a Federal as determined in accordance with subsection "(ii) $15,000,000 in any fiscal year; and separate income tax return such individual of this section; and " the aggregate amount of liability for shall be liable for an amount equal to the " such other information as may be funds to be collected by the Secretary of the lesser of- necessary to carry out this section. Treasury under section 6306 of the Internal "(A) the value of the coupons allocated to "(e) Any amount for which an individual Revenue Code of 1954 from individuals who such individual in such taxable year; and is liable under subsection of this section are residents of such State, as specified on " one-half of the amount by which the shall be payable as if such amount were a their respective Federal income tax returns, countable income of such individual for tax imposed by section 1 of the Internal divided by the aggregate amount of liabilty such taxable year exceeds the exempt Revenue Code of 1954. "(f) For purposes of this section: for funds to be collected by the Secretary of amount. the Treasury under such section from resi "(3) For purposes of paragraph (1), in the "<1) 'Adjusted gross income' shall have case of two individuals who file a Federal the meaning given it in section 62 of the In dents of all the States. joint income tax return such individuals ternal Revenue Code of 1954. "<3> Any State which accepts funds shall be jointly and severally liable for an "(2) 'Countable income' means, in the case transferred under paragraph shall amount equal to the lesser of- of any individual who files a Federal sepa distribute such funds to the State agency " the value of the coupons allocated to rate income tax return and in the case of conducting the food stamp program in such both such individuals in such taxable· year; two individuals who file a Federal joint State. and income tax return, for any taxable year the " Any State agency which receives "(B) one-half of the amount by which the sum of adjusted gross income and any un funds distributed under subparagraph countable income of such individuals for employment compensation received in such shall use such funds to carry out the food such taxable year exceeds the exempt taxable year which is not included in gross stamp program.". amount. income pursuant to section 85 of the Inter The first sentence of section 19 of "(b) Subsection of this section shall nal Revenue Code of 1954. the Food Stamp Act of 1977, as so redesig not apply to- "<3> 'Exempt amount' means- nated by subsection , is amended- "<1> any individual who participates in the " in the case of any unmarried individ (!) by inserting "of the sum" after food stamp program during the entire tax ual who files a Federal separate income tax "excess"; and able year involved; and return and in the case of two individuals (2) by inserting "and any funds trans "(2) any individual who is a member of a who file a Federal joint income tax return, ferred to the Secretary under section 6306 household which has household income, for any taxable year an amount equal to 175 of the Internal Revenue Code of 1954 in during the entire taxable year of such indi percent of the income standard of eligibility such fiscal year" before the period. vidual, comprised of only supplemental se established under section 5 of this Act ap Section 4 of the Food Stamp Act of curity income benefits under title XVI of plicable to a household having the number 1977 is amended by striking out "section 18" the Social Security Act, State supplemen of members equal to the number of personal and inserting in lieu thereof "section 19." tary payments described in section 1616 exemptions allowable as a deduction by AMENDMENTS TO INTERNAL REVENUE CODE OF of such Act, and payments of the type re such individual, or by such two individuals, 1954 ferred to in section 212 of Public Law 93- as the case may be, for such taxable year 66. under part V of subchapter B of chapter 1 SEC. 3. Subchapter A of chapter 64 of "(c) For purposes of subsection and of the Internal Revenue Code of 1954, for the Internal Revenue Code of 1954 is amenc;ted by adding be allocated to each individual 19 years of of such individual, or of any household of at the end thereof the following new age or older the lesser of- either of such two individuals; and section: "<1) an equal share of all of the coupons "(B) in the case of any married individual "SEc. 6306. COLLECTION OF REPAYMENT FOR received by each household of which such who filed a Federal separate income tax ExCESS FOOD STAMP BENEFITS. individual is a member participating in the return for any taxable year an amount "The Secretary or his delegate shall deter food stamp program in any taxable year of equal to one-half of the amount determined mine, assess, and collect the amount of any such individual, for any period during which in accordance with subparagraph , liability of any individual under section such individual is a participating member of except that for purposes of determining 18(a) of the Food Stamp Act of 1977, arising each such household; and such amount the number of such personal from the conditional entitlement of such in "(2) a share of the coupons received by exemptions shall be increased by one. dividual to benefits under such Act, in the each such household in such taxable year "(4) 'Taxable year' shall have the meaning same manner, with the same powers, and for any period during which such individual given it in section 770l <23) of the Inter subject to the same policies, procedures, and is a member of such household, determined nal Revenue Code of 1954. limitations, including deferral or suspension in accordance with regulations issued by the "(5) 'Unemployment compensation' shall of collection because of hardship, as if such Secretary to prevent any extreme inequity. have the meaning given it in section 85 of amount were a tax imposed by section 1, "(d) Pursuant to such regulations as the the Internal Revenue Code of 1954. except that for one year from the date such Secretary, in consultation with the Secre "(g) The Secretary may transfer to the liability is payable no interest or penalties tary of the Treasury, may issue and for pur Secretary of the Treasury an amount, as shall be assessed or collected with respect to poses of determining the liability of any in specified in appropriations Acts, of any such amount. Notwithstanding any other dividual under subsection of this section, funds appropriated to carry out this Act for provision of law, the Secretary shall trans the State agency shall- fiscal years Qeginning after September 30, fer, in such amounts as are specified in ap "<1) furnish for each calendar year, before 1980, sufficient to enable the Secretary of propriations acts, funds collected under this February 1 following such calendar year, to the Treasury to assess and collect under section to the Secretary of Agriculture." each individual who is 19 years of age or section 6306 of the Internal Revenue Code (b) The analysis of sections for subchapter older, who participates in the food stamp of 1954 amounts for which individuals are A of chapter 64 of the Internal Revenue program in such State in such calendar liable under subsection of this section Code of 1954 is amended by adding at the year, and who is not an individual described and to carry out related administrative end thereof the following new item: in subsection of this section- functions. "Sec. 6306. Collection of repayment for " a statement specifying the amount of "(h)(1) Of the funds transferred to the excess food stamp benefits.". coupons allocated to such individual in such Secretary under section 6306 of the Internal calendar year as determined in accordance Revenue Code of 1954, the Secretary shall APPLICATION OF AMENDMENTS with subsection of this section; and "(A) transfer 15 per centum of such funds, SEc. 4. Section 18 of the Food Stamp " such other information as may be but not to exceed $15,000,000 in any fiscal Act of 1977, as added by section 2(d), shall necessary to carry out the provisions of this year, to the States, and apply in the case of any individual to each section; and " use the portion of such funds not taxable year of such individual beginning on "(2) certify to the Secretary of the Treas transferred to the States under subpara or after the first day of the first calendar ury for each calendar year, before March 1 graph , to carry out the provisions of this year beginning after the date of the enact following such calendar year- Act. ment of this Act. 3786 CONGRESSIONAL RECORD- HOUSE March 9, 1981 EFFECTIVE DATES I think my tax credit proposal will We have been asked, what is going SEc. 5. Except as provided in subsec strengthen our basic social unit-the to be our House goal? Well, I hope our tion (b), the amendments made by this Act family-while making our senior citi goal is to cut down to the same level as shall take effect on the date of the enact zens more productive and happier the level that the Republicans have ment of this Act. people. Finally, Mr. Speaker, let me established for the Senate staff over The amendments to section 1He> of the Food Stamp Act of 1977, as made by point out that using the tax system to there of $41,698,899. section 2. and section 18(d) of the Food keep families together is not new, nor In America today, every time we go Stamp Act of 1977, as added by section 2(d), is it without precedent. What I am back home, and I just got back from shall take effect on the first day of the first proposing is built on the current Texas, I will tell you, they are all talk calendar year beginning after the date of precedent of giving tax credits to fami ing about the same thing, and that is the enactment of this Act.e lies paying for child care. I hope that inflation, inflation, inflation. When Congress will see the wisdom and the they get through with inflation, in the TAX CREDIT FOR THE CARE OF need to extend its coverage for elderly next breath, and the people back THE ELDERLY ACT OF 1981 family members, too.e home, I think, are sometimes smarter The SPEAKER pro tempore. Under than Congressmen realize. They know a previous order of the House, the gen what is going on. They know that the PROLIFERATION OF HOUSE cause of inflation is Government fund tleman from Illinois kansas are different from your people House of Representatives to cut back done anything but run against the in Texas. We know that inflation is on the authorization from the 1980 Congress. As far as I know, that is all caused from component parts other level to a different level this year. they are good at-running against the than the cost of Government. Certain We Democrats are aware of the de Congress, telling jokes about the Con ly the cost of Government is a compo mands of the American people. We get gress, raising Cain about the Congress; nent part of inflation and I will agree elected, too, just like the gentleman Congress cannot do anything right. with the gentleman that we should does. We are concerned about the high The fact of the matter is that those balance the budget, and we are, we cost of Government. We intend to people who make a career out of run Democrats are going to produce a reduce the cost of Congress signifi ning against Congress do not do any smaller deficit than Reagan has pro cantly this year in order to comply thing else. duced. I would ask the gentleman to with the demands and wishes of the 0 1245 sit around and watch that happen this American people. · year because it is going to happen. I appreciate very much the gentle I do not agree with the gentleman. I man's concern and I hope the gentle think this Congress is· providing a But we know that the cost of energy, man will follow the leadership of the great service to the American people. for example, is also inflationary. The Democrats in the House and avail The gentleman in the well and I gentleman's people in Texas make himself of the opportunity to cut back both have had an opportunity to com energy. We do not make so much on the authorization which we will pare what we have in this House of energy in Arkansas; we buy it. We present to the House next week. Representatives to other representa know that one of the greatest contrib Mr. COLLINS of Texas. I appreciate tive bodies around the world and this uting factors to inflation is the cost of what the gentleman said. The distin is, indeed, the most deliberative and energy. guished gentleman from Arkansas is the most responsive institution on the Also the cost of this money the gen one of the greatest statesmen we have face of this Earth. In fact, it is a tleman is talking about is a contribut ever produced from the South. I mirror that reflects the image of the ing factor. We also know that it is arti always admire and respect all his American people. ficially high, that the cost of money is statements, but I want to go back and The American people deserve the about 6 to 8 percent more than it call to his attention a few comparable kind of service that they are getting needs to be because we have not got figures to see how much we have from this Congress. They also deserve the right kind of pressure on the Fed saved. Back in 1973, as I recall, this for us to be frugal, to be conservative, eral Reserve to reduce the cost of in Government was spending about $275 and that is what the gentleman is terest. billion. We had smaller congressional going to get. I hope he votes the right There are other component parts of committees. way next week when he gets this bill. inflation. The trade deficit contributes Now, through what is called this ad Mr. COLLINS of Texas. I can assure about 40 percent to inflation. It is not ditional investigative and this addi the gentleman I will vote the right the single issue of the cost of Govern tional oversight committee staff we way, and I just want to remind the dis ment. While that is a contributing now have this Congress up spending tinguished gentleman of a few facts factor, it is not the only reason, and $700 billion. A little more of this inves before us, because down in Texas I we people in Arkansas understand tigation and oversight staff and we imagine it is about like it is in Arkan that. will bankrupt the country. We are no sas. Mr. COLLINS of Texas. I appreciate better off than when Congress was Mr. ALEXANDER. No; it is not like what the distinguished gentleman spending $275 billion. In fact, if you it is in Arkansas. We do not have the from Arkansas says, and we do not will ask folks in Arkansas, just like in money and the wealth and the power have any oil in my county either. But Texas, they will tell you they cannot and the influence that the gentleman I will tell the gentleman what Con see a thing we are getting down home. has in Texas. gress did. Congress escalated the They cannot see anything added at Mr. COLLINS of Texas. What you energy problem and we did it right home except they are getting more in have in America today is a 20-percent here with laws from the Halls of Con flation and more taxes. Bigger Gov interest rate, and that is what busi gress. In 1973 we decided that it was ernment begins with this committee nessmen are paying for money down time that we fully regulated the oil staff business. home. Folks have to borrow money, business, that the problem was the Mr. ALEXANDER. Will the gentle and they can remember back in the United States had $3 billion of oil im man yield further? good days when the Republicans had ports and we could regulate oil up Mr. COLLINS of Texas. I would be the Presidency back there, and the here in Washington and we could solve glad to yield. Republicans had established some it all. After 7 years of regulation and Mr. ALEXANDER. Well, my people sound policies in 1973, and Americans solving it all we took the oil business in Arkansas think they are getting were paying 6 percent for interest. from where America imported $3 bil good service out of the Congress. I Today when you borrow money you lion in oil to where we are today im cannot speak for Texas. I have not are paying 20 percent for interest. porting $80 billion in oil. been there in a good while. It may be They can remember when inflation The problem we have in this country that the service the people receive in was 6 percent and President Jimmy is America is living on OPEC-Arab oil. 3788 CONGRESSIONAL RECORD- HOUSE March 9, 1981 Over 50 percent of our oil consumed is intact, just exactly like it is, what in us more work and more difficulty in from Arab OPEC. They are getting fluence would that have on the deficit. getting our job done. every last dollar that the market will He said we would probably experience I apologize for getting so excited pay. a $80 billion deficit-if not $100 bil about this issue. But if we would have left this to the lion. Mr. ALEXANDER. Mr. Speaker, will open market, if we had left it to the There is more to this business of the gentleman yield? people that have commonsense out budgets and deficits than the single there in the grassroots of America in simplistic message that the gentleman Mr. COLLINS of Texas. I yield to stead of letting a bunch of Washing from Texas, who is indeed my friend, the gentleman from Arkansas. ton bureaucrats ruin it, our-economy has tried to explain to the American Mr. ALEXANDER. I respect and today would have been better. people. admire and appreciate the gentleman Let me tell the gentleman about one Mr. LOTI'. Mr. Speaker, will the from Mississippi and we, other issue. The gentleman talked gentleman yield? indeed, are friends. I was not referring about taxes. I will say to the gentle Mr. COLLINS of Texas. I yield to to the gentleman a minute ago when I man that 43 cents out of every $1 my distinguished friend from Missis said that he was one of these people today is going for taxes. Back home sippi. who ran against the Congress. I am people say taxes are too high. I would Mr. LOTI'. I must confess I found chagrined to learn that the gentleman say to the gentleman the Bible does the entire discussion here quite inter bases his political future on running not ask you but for 10 cents out of esting this afternoon. I would first like against Congress. It is a shame be every dollar, but up here in the Gov to commend the distinguished gentle cause I do not think it is going to ernment we demand and get 43 per man from Texas for taking this time happen to the gentleman. I do not cent by taxes. Congress spends it, we to address this very real problem that think that ·you fellows are going to spend it, we spend it. we have in the House of Representa take over the Congress. You are trying If I can just add one other point, we tives, and to bring it to the attention real hard and you are raising $100 mil talked about what the Democrats say of the American people. lion. We still have a deficit from last in the way of the budget. What they year. You are starting your television say and what they do are two different I was very interested in some re marks that were made by my also dis campaign soon in order to spend some horses running down the road. Back in of that $100 million. A:pril of last year, standing right at tinguished colleague and friend from that microphone over there was one of Arkansas whip, and Congress. we had the Government you. it is with the Democratic leader who speaks so well for the Republican function. Today the District of Colum ship and it is with the Democratic leadership. We -only have 44 percent bia is an autonomous body and it is Party. Are you going to cut down in Republicans in this House. When it self-governed. Over in the other body the House to what the Republicans comes time to pass this staff bill. they they have a subcommittee of seven for have done in the Senate? have got a 51-vote majority over on the District of Columbia. Over here we Mr. ALEXANDER. Mr. Speaker. will the Democrat side. When it comes have 41 on the District of Columbia the gentleman yield further? time the Republicans are going to be staff. We have to have six times as voting on this side to cut the staff many people to do the same function Mr. COLLINS of Texas. I yield to budgets. as they do in the Senate. the gentleman from Arkansas. But I wonder. just as the gentleman Let me give you another example. Mr. ALEXANDER. I thank the gen raised the question. will it be a sub this House Computer Service. I can tleman for yielding. stantive cut or will it just be a word punch a button in my office and the Would you use your influence. if the discussion that we are going to have Congressional Research Service sends House reduces its funding level for ap on the House floor? They said we me a copy of every bill. Or I can punch propriations. to see that the President would balance the budget this time a button right beside it as we have a reduces the White House staff accord last year. The Democrats said they duplicate facility known as House In ingly? I have not heard any proposals were going to spend $614 billion and formation Service. The only difference to reduce the White House staff. I take in $616 billion. If this is the same is we spend $10 million. because that is think the White House should follow kind of doubletalk you all are going to what it costs the House to keep that the example of the House of Repre give us. we have a term for that.down duplicate computer facility going. sentatives. South. What I want to know is how we can We intend to reduce the authoriza Mr. ALEXANDER. I have been get rid of all of these surplus staff tion on the funding level next week hearing a lot of hogwash today. That people? They are temporary staff and when the bill comes before this Con is why I asked for the opportunity to they are trying to create permanent gress. I hope the gentleman will follow respond to some of it from the well of tenure. They are trying to become per that leadership and support it. Would the House. manent. What we need to do is to cut you see if you could use your influence 3790 CONGRESSIONAL RECORD - HOUSE March 9, 1981 to get the President to reduce his staff I have known agencies and repre But all the gentleman from Pennsyl accordingly? sentatives from agencies that have vania was saying is just very simply Mr. COLLINS of Texas. I appreciate thrown away money, uselessly, simply this. Let ~ not have any funny stuff the gentleman bringing that question because they felt that they must shell game around here. He is saying if up. The last time it was brought up spend everything that was authorized. this amount was spent last year, we was by a gentleman from Georgia Certainly the gentleman is not saying want to make sure that no more or a named Mr. Jimmy Carter. During his that this Congress should follow an reduction is spent by those same com entire campaign in 1976 he talked example like this? mittees this year. about reducing White House staff and Mr. JAMES K. COYNE. Mr. Speak Now that is not too complicated. his first year he just zoomed that er, will the gentleman yield? You go through all this stuff about thing up. Now I am sure that it is Mr. COLLINS of Texas. I yield to what was authorized last year and going to be cut because the Republi the gentleman from Pennsylvania. what has been requested this year and cans believe in less. Mr. JAMES K. COYNE. I would cer we are going to cut 5 percent down But if you will remember, Mr. Carter tainly agree with you. I think we have below what was requested by the com made that a big issue, and he zoomed had a very bad budgetary practice. As mittee. It is all a bunch of junk. We it up with more staff. you may know, I came to this august are talking about real dollars and Mr. Reagan will 'do the right thing body from the world of business. The cents, what was spent and what is and have more efficiency in the White world of business does not have this going to be spent this year. House. duplicitous budgetary procedure The American people are not going Mr. JAMES K. COYNE. Mr. Speak where you have authorizations, obliga to be fooled by a lot of different fig er, will the gentleman yield? tions, and what have you. ures when in the final analysis x dol Mr. COLLINS of Texas. I yield to We are only interested in what the lars are spent by this Congress unnec the gentleman from Pennsylvania. actual dollars spent from the taxpay essarily to get the job done. Mr. JAMES K. COYNE. I thank the ers' pockets are. I think that is the Mr. COLLINS of Texas. You are ab gentleman for yielding. message that came across very loud solutely right. What American busi I think there is an important differ and clear last November 4, that if we ness knows is the bottom line and they entiation to make here between what are asking the American people to can tell the difference between the is authorized and what is actually tighten their belts by $50 billion bottom line and resolutions. You spent. As you know, gentlemen, the across this country, then here in Con raised a real interesting question. The entire freshman class of Republicans gress we must get our own house in finances in our Congress are handled in this Congress has voted unanimous order. by the Budget Committee and Appro ly, all 52, to reduce the committee I offer for example the budget of priations Committee. What is amazing budgets, not over what was authorized the Rules Committee which has grown is that they have lifted themselves last year, but over what was spent. from $30,000 to $600,000 in just the above the voice of Congress. They do The only way we can really compare past 8 years. Would the gentleman not let the House floor have anything apples and oranges here is to demand please explain to me what the justifi to do with their own staff budgets. that this year we reduce the amount cation there can be for that type of The Republicans control the Senate, we spent by 10 percent. budget increase? and they have shown that Republi Authorizations are a little bit like Mr. ALEXANDER. If the gentleman cans want to cut spending because funny money in a "Monopoly" game. will yield further, I am not a member There is a game, I think around here, of the Rules Committee and I cannot they actually cut their budget. where people come in requesting more answer for that committee. In the House where the Democrats than they really want and then they Mr. COLLINS of Texas. I appreciate have a 51-vote majority and the con play a little game and allow the au all the gentleman from Pennsylvania trolling vote, will the Democrats cut or thorization to be reduced by a measly has said, because you have highlighted be the big spenders? 10 percent. the basic issue here and that is what is America has more Government than We are only interested in actually the bottom-line figure. Committees we need. We have more regulations saving the taxpayers dollars, and re cannot spend any more than they are than we want. And America has more ducing authorizations will not accom authorized. You serve on the House taxes than we can afford to pay. Let plish that goal. Administration Committee and you us cut these committee staffs and Mr. COLLINS of Texas. I want to are asking that they just simply do build the momentum for America to just add to what the gentleman said not authorize any more than commit move forward again. there. Let us get down to real figures. tees need. They cannot spend it if it is The Senate, for their staff, have spent not authorized. Let us cut them down REPEALING ICE PROVISIONS OF $41,698,000. That is what the Senate is to $41,698,000. That is not just investi SECTION 201 OF CLEAN WATER spending. What I want to know is, gative. That is investigative plus statu ACT what the gentleman from the other tory which is $24 million, so basically side of the aisle is going to come in anything we spent over $16 million on The SPEAKER pro tempore Missouri. Mr. Speak the gentleman from Arkansas. Mr. COLLINS of Texas. I yield to er; on behalf of myself, Mr. SoLOMON, Mr. ALEXANDER. Is the gentleman the gentleman from Mississippi. Mr. RoE, and Mr. LUKEN I am today from Pennsylvania actually recom Mr. LOTT. Just as an aside, the gen introducing H.R. 2360. In 1972 the mending that because a figure is au tleman cannot answer about the Rules Congress passed the Nation's land thorized that it must be spent? Is the Committee, but he does serve on the mark water pollution control law, the gentleman trying to get the Congress Appropriations. That committee and Clean Water Act, Public Law 92-500. to act like some of the Federal agen the Budget Committee do not have to The Clean Water Act set ambitious cies which are authorized a certain go through this process. goals for cleaning up our Nation's wa amount of money and they feel that Quite frankly, I think it might not terways by 1985. The Congress recog they must spend it in order that they be a bad idea to know what is being nized that these goals would not be might be rewarded by an equal or spent for committee budget and staff achievable without substantial finan greater amount the next year? for the Committee on the Budget. cial assistance to municipalities and March 9, 1981 CONGRESSIONAL RECORD- HOUSE 3791 treatment authorities to enable them the district, communities adjacent to lution reduction in the St. Louis area to construct the new and upgraded the city of St. Louis were required to could be seriously threatened. treatment facilities needed to meet provide their own wastewater collec- Mr. Speaker, for these reasons, I the act's stringent treatment require tion and disposal facilities which col- have introduced H.R. 2360, to repeal ments. While the construction of new lected and transported the wastewater the ICE provisions of section 201. This treatment facilities under the section from small geographic areas to nearby bill if enacted into law would have sev 201 grants program has not proceeded streams with little or no treatment. eral beneficial effects. Joint industrial as fast as we all wish, there have been Population growth of the numerous municipal treatment, recognized as remarkable improvements in our communities in St. Louis County re- sound in the 1972 Clean Water Act, rivers and lakes since 1972. These im suited in the discharge of large quanti- would again be encouraged, with provements would not have occurred ties of raw and partially treated resultant benefits from energy andre without Federal assistance under the wastewater into streams and rivers source conservation and safe, efficient 201 program. flowing through and around the ·city sludge disposal. The arbitrary and In 1979, information developed by of St. Louis to the Mississippi River. senseless differentiation between in EPA in response to a congressional di None of the municipalities or private dustries discharging over 50,000 gal rective in the 1977 amendments to the franchise sewer companies serving the Ions per day and subject to ICE, and Clean Water Act led the Congress to reexamine one provision of section area at that time had the jurisdiction- those sewering less than this amount 201. This provision contained the re al authority or financial resources re- and therefore not subject to ICE, quirement for so-called industrial ·cost quired to eliminate the increasing seems only to treat many older plants recovery. ICR, as it has become health hazards. When it began oper- in water-intensive industries as second known, was originally devised to ation in 1956, the district took over all class citizens. In urban areas such as remedy any inequity resulting from existing wastewater and storm drain- St. Louis these older plants provide the ability of some industries to utilize age facilities within its jurisdiction. needed jobs, tax revenue, and sewer grant funded treatment plants while Since that time, extensive systems of revenues. If these firms are forced to other industries were required to build interceptor sewers and treatment close or relocate as a result of ICE, the their own self-funded plants. ICR re plants have been built or acquired. impacts on many older urban areas quired industries using publicly owned These systems provide for the collec- would be devastating. treatment works to repay their share tion and treatment of virtually all The most important effect of H.R. of Federal grant funds. An EPA con waste-water flows originating in the 2360, however, would be t,o maintain tractor, Coopers & Lybrand, d~ter district. I have long supported the ef- the forward progress of the Nation's mined that in fact those industries forts of MSD to clean up the rivers clean water effort. The EPA report on using publicly owned plants paid sub and streams around St. Louis. As a ICE reveals that serious delays will stantially more for treatment in many member of the Missouri Legislature I result from ICE implementation. Mu cases than their counterparts which sponsored a bill which when passed es- nicipal officials suggest that delays of provided their own treatment. These tablished the State's pollution control from 1 to 3 years will result as indus latter plants could be built with tax bond program which provides further tries evaluate the economics of their exempt bonds and were allowed a matching funds to agencies such as continued participation in publicly rapid tax writeoff. They also could be MSD to carry out the ambitious pro- owned treatment projects. Added time built without some of the costly equip grams needed to solve urban pollution will be lost as industries and munici ment needed to treat the widely vary problems. palities grope with the problem of ing content of wastes from metropoli Mr. Speaker, the system created by finding the needed moneys to offset tan areas. MSD has been built around the con- the reduced Federal grants. Because of The Congress recognized that ICR cept of joint municipal-industrial the inflation associated with such frustrated the concept of joint indus waste treatment. MSD long ago recog- delays, the savings to the grants pro trial-municipal treatment. Such joint nized the environmental and economic gram through ICE will be wiped out if treatment has long been considered· benefits of joint treatment. By provid- the average delay is only 2.2 years. If the most sound from both an environ ing joint treatment MSD provides ef- delays run beyond 2.2 years inflation mental and cost-effective point of fective centralized service and only a will consume more program funds view. Action was taken last year in the handful of effluents must be moni- than ICE will save. Of equal concern, passage of Public Law 96-483, which tored by enforcement authorities. If pollutants which could have been re eliminated the ICR provisions from the hundreds of industries served by moved from our Nation's waters from section 201. One provision of the MSD provided their own treatment, 1 to 3 years earlier will continue to Senate bill, S. 2725, however, mandat enforcement efforts would increase · enter our rivers and lakes. ed a new and even more counterpro greatly in magnitude. Sludge resulting I urge my colleagues to join with me ductive concept, now known as indus from MSD's treatment plants is effi- in removing this most unnecessary ob trial cost exclusion or lCE. Hearings ciently incinerated with no harm to stacle to the cleanup of our Nation's were not held on the merits of this the environment. The same could not waters by cosponsoring H.R. 2360. concept and because of the rush to be said if the many industries served pass an ICR repeal bill S. 2725 was by MSD, several of whom generate passed with the ICE provision. The toxic effluents, were encouraged to SUBCOMMITTEE ON CRIME TO House of Representatives did, howev treat their own wastes and dispose of HOLD HEARINGS ON THE er, insist on a study of ICE impacts by their own residues. Joint treatment REAUTHORIZATION OF THE EPA and I am happy to report that also allows so-called economics of scale DRUG ENFORCEMENT ADMIN EPA has done an excellent job of which means that one large treatment ISTRATION pointing up some of the serious prob plant costs less to build and operate lems caused by ICE. than numerous smaller plants. Cost The SPEAKER pro tempore. Under Mr. Speaker, the negative impacts of savings are passed on to all users of a previous order of the House, the gen ICE are well understood by the Metro this system. I fear that if ICE encour tleman from New Jersey exceeds the signal price in Appearing before the subcommittee ing as an efficient price discovery mecha Column (3) the futures price will drop, on nism. Evidence indicates that this market is average, within 2.4 days, including the day to give testimony will be Peter Ben operating with a consistent, systematic, per of the signal. singer, Administrator of DEA, accom fectly predictable downward price bias. Since the selling price required to cover panied by his Deputy Administrator all costs presented in Column (3) is obtained Using the technique over the last 36 from quarterly USDA Livestock and Meat and Assistant Administrators for En months, a trader could have entered and forcement, Intelligence, and Compli Situation reports, in order to keep the tech closed 29 separate short positions and prof nique current between quarterly publica ance and Regulation. ited everytime. If a trader were selling only tions, it is necessary to update these figures All interested persons or organiza one contract each time, total profits would have feeder steers and com from the USDA data the record of the hearings or desiring been at least $10,500. If a trader were selling and replacing these costs with current further information shouid address at the speculative limits of 450 contracts, lists the appropriate average Corn Belt cattle selling prices required to cover all feeding costs for econometric models of demand-supply varia live cattle fu feeder animals purchased during the calendar months in column 1 are available bles. It predicts a phenomenon that appears tures contract to monitor for a trading in Livestock and Meat Situation, ESS, U.S. Department of Agriculture, on a to be unique to the live cattle futures. This quarterly basis. Between publications of this bulletin, feeding costs are updated signal. Column <3> lists historic monthly by removing the cost of 600 lb. feeder steers and the cost of 45 bushets of report explains the trading technique, docu average selling prices (plus basis adjust com and substituting the current cost of feeder steers and com. The basis ments its predictive accuracy, documents adjustments in column 3 are the 1968-1978 avera~ for choice steers for ment) required for Com Belt cattle feeders interior Iowa-Southern Minnesota contained in: J. MaMn Skadberg, "Basis Data the causes of this phenomenon, analyzes its to cover all feeding costs for a six month impact on cash cattle prices, and discusses for Cattle: Omaha, Sioux City, Peoria, St. Louis, Interior Iowa-Southern feeding period. The first time3 the daily Minnesota," Staff Paper Series No. 94, Department of Economics, Iowa State the interconnected trading activities of a University, 1979 and updates. group of large, highly profitable cattle fu tures traders whose trading activities appear If a signal does not occur during a current to contribute to the phenomenon. • Selling prices required to cover all Corn Belt calendar month, average selling price re cattle feeding costs are reported by USDA sell futures as who over the time period. Thus, if two traders 30 percent. Thus, unlike the grain futures handle the accounts for short hedgers and were trading in an identical manner, they markets, in the live cattle futures there is the accounts of officers of short hedging would have a correlation coefficient of + 1.0. no significant group of commercial long companies and some floor brokers also sell If two traders were trading exactly opposite hedgers who act as a buying force without futures for their own speculative accounts each other, they would have a correlation significant regard to price level. There is and for certain of their speculative custom coefficient of -1.0. very little long hedging because meat is not ers' accounts, adding more downward pres sure on prices.• Thus, a snowball effect is In addition, a mean . are resulting, in part, from a build up cattle futures as a hedging mechanism for business affiliations. of selling pressure coming from commercial farmers. cattle feeders. In addition to the correlation analysis, in CORRELATED TRADING ACTIVITY OF LARGE formation from Commodity Futures Trad TRADERS ing Commission the technique worked with in live and feeder cattle futures during the bles. The value of a correlation coefficient ce,n 70 percent accuracy. It was not until after the pro period January 1978 through April 1979. 11 range between - 1.0 and + 1.0. The sign <+ or - > of longed period of negative feeding margins which oc the correlation coefficient indicates the direction of curred during 1976 and 1977, that the technique change in one variable as the size of the other vari began predicting with 100 percent accuracy. • These trading activities were confirmed by data able changes. Thus, a positive <+ > sign means the 8 See monthly issues of Commitments of Traders, on the daily positions of large traders in live cattle two variables move together and a negative <- > Commodity Futures Trading Commission, Chicago, futures. This helps explain why the highest aver sign means the two variables move in opposite di Illinois. age profits per account were obtained by officers of rections. The value of the correlation coefficient in 7 This is not the case in grain futures where most grain companies, meat packing companies, commer dicates the extent of the relationship. For example: short hedging is against inventories and not related cial feedlots and futures commission merchants. + 1 means a perfect correlation with both variables to farmers' production cost and where long hedging See Ibid. moving in the same direction, -1 means a perfect is against fixed price forward sales. An analysis of ••Artificial prices are prices which do not reflect correlation with both variables moving in opposite com futures prices compared to farmers' produc the true supply-demand conditions for a commod· directions and 0 means absolutely no relationship tion costs revealed no systematic relationship. Com ity. between the variables. prices were substantially above production costs 11 Op. cit., "An Analysis of the Futures Trading 13 The CFTC Form 40 is required of all large trad of hedging opportunities to large publicly available articles of incorporation the large traders with correlated trading ac commercial cattle feeders. In such an envi was used to establish business affiliations tivity and/or common business affiliations ronment, the live cattle futures market between large cattle futures traders. Com accounted for 70 percent <110/156) of the would serve no economic purpose.e bining this business affiliation information total net profits of large traders. with the correlation analysis resulted in a With regard to the trading technique dis group of 32 large traders who had direct cussed earlier in this report, 15 of the 29 sig business affiliations and/or correlation coef nals occurred during the time period for LEAVE OF ABSENCE ficients of 0.75 or greater. which data were available on large traders' Table 2 · (omitted herein> schematically net daily trading activity. As a group, the 32 By unanimous consent, leave of ab presents the interlocking trading relation traders were net sellers of live cattle futures sence was granted to: ships between the 32 traders in the group. on or about 14 out of the 15 signal dates. Mr. Runn major futures price drops with 100 percent accu By unanimous consent, permission business activity ; <2> a 3 to 5 digit code selling ; and <3> a one digit marketplace on a reoccurring, predictable basis. Available evidence indicates such orders heretofore entered, was granted number identified as FCM, A. This traders are aware of and taking advantage Mr. CORCORAN, for 5 minutes, today. officer's code number is 120 and the account of the phenomenon discussed in this report. Mr. COLLINS of Texas, for 30 min- was in group 5-officers of FCM's. Since such knowledge can be used to profit utes, today. from futures transactions to the obvious dis 1 In Table 2, the 32 traders are grouped ac Mr. GILMAN, for hour, on March advantage of traders not in possession of 12. cording to documented business relationship this knowledge, it is recommended that the as follows: contents of this report be made public. filiated commercial feedlot, and one affili dence that the live cattle futures market is Mr. YoUNG of Missouri, for 10 min- ated grain company have correlated trading not operating as an efficient price discovery utes, today. activities among themselves and with others mechanism and that this market is operat Mr. MoTTL, for 5 minutes, today. in the groups of 32 traders. ing with a consistent, systematic, perfectly Mr. GoNZALEZ, for 15 minutes, today. 2. Meat Company: 3 officers and one affili predictable downward bias. Such a conclu Mr. ANNUNzio, for 5 minutes, today. ated speculator have correlated trading ac sion means the live cattle futures market is tivities among themselves and/or with not fulfilling its economic purpose of pro Mr. HuGHES, for 5 minutes, today. ot?er~ in the group of 32 traders. viding a hedging vehicle (equally> to all traders. 3. FCM,B = a futures commission mer Evidence indicates that the predictable chant : one officer and one EXTENSION OF REMARKS affiliated officer have correlated trading ac drops in live cattle futures prices are not re tivities with others in the group of 32 trad flective of fundamental supply-demand con By unanimous consent, permiSsion ditions and are, in fact, artificial price to revise and extend remarks was ers. moves. 4. Affiliated Speculative Group: 3 specula As a hedging mechanism, the live cattle granted to: tors with a common affiliation are highly futures market is providing hedging oppor Mr. SMITH of Iowa and to include ex correlated with each other· and with others tunities only to those cattle feeders with the traneous matter notwithstanding the in the group of 32 traders. lowest per unit costs 15 and not to cattle fact that it exceeds two pages of the . 5. Commercial Feedlot A: The feedlot ac feeders in general. CONGRESSIONAL RECORD and is estimat count and the accounts of 2 affiliated farm A group of 32 large traders with corre ed by the Public Printer to cost $1,560. ers are correlated with each other and with lated daily net trading activity and/or cattle futures market and this group displays a net daily include extraneous matter:) an affiliated speculator and an affiliated Mr. ROUSSELOT. foreign trader are correlated with one of the trading pattern indicative of knowledge of farmers affiliated with Commercial Feedlot the observed bias in prices. Mr. DANNEMEYER. A. Making the results of this report public Mr. DENARDIS. should result in live cattle futures traders Mr. NELLIGAN. 7. In addition there are: 2 farmers, 6 spec arbitraging the observed phenomenon out ulators, one officer of an FCM and one com Mr. McKINNEY. of existence. To the extent this occurs, the Mr. DERWINSKI in three instances. modity pool who all have correlated trading live cattle futures market would not only activities with others in the group of 32 not offer hedging opportunities to Corn Mr. MICHEL. traders. Belt cattle feeders, 16 but also not offer Mr. COLLINS of Texas in three in- Over the period January 1978 through stances. April 1979 these 32 traders as a group real 14 0p. cit., "An Analysis of the Futures Trading Mr. BETHUNE. ized a total net profit in live and feeder u Generally, these are lots feeding In excess of cattle futures of approximately 30,000 head per year. Mr. PETRI. 18 See "An Assessment of the Performance of the Mr. LEE. $110,000,000. Over the period for which data Chicago Mercantile Exchange Live Cattle Contract were available, all large traders <1,027 in as a Hedging Vehicle for Cattle Feeders," Staff had total net profits in live and Study, Committee on Small Business, U.S. House of quest of Mr. YOUNG of Missouri), and feeder cattle futures of approximately Representatives, 96th Congress, 2nd Session. to include extraneous matter:) March 9, 1981 CONGRESSIONAL RECORD- HOUSE 3795 Mr. RODINO. 711. A letter from the Deputy Assistant member countries of the Development As Mr. ASPIN. Secretary of Defense (Installations and sistance Committee of the Organization for Mr. OBERSTAR in four instances. Housing), transmitting notice of the loca Economic Cooperation and Development, tion, nature, and estimated cost of various requested in Senate Report No. 96-732; to Mr. BENJAMIN. construction projects proposed to be under the Committee on Foreign Affairs. Mr. STARK. taken by the Air National Guard, pursuant 721. A letter from the Acting Assistant Mr. DORGAN of North Dakota. to 10 U.S.C. 2233a(l); to the Committee on Public Affairs Director for News, U.S. De Mr. NATCHER. Armed Services. partment of Agriculture, transmitting a Mr. MURTHA.- 712. A letter from the Deputy Assistant report on the Department's activities under Mr. BRINKLEY. Secretary of Defense ; to the Committee on Government Mr. ZEFERETTI. supervision, inspection, and overhead fees Operations. Mr. LELAND. charged by the construction agents for the 722. A letter from the Secretary of Health military construction projects of the mili and Human Services, transmitting a report Mr. DYSON. tary department and the Defense agencies, on the Department's activities under the Mr. ANDERSON in 10 instances. pursuant to section 604 of Public Law 96- Freedom of Information Act during calen Mr. GONZALEZ in 10 instances. 418; to the Committee on Armed Services. dar year 1980, pursuant to 5 U.S.C. 552; Mr. BROWN of California in 10 in 713. A letter from the Acting Director, De to the Committee on Government Oper stances. fense Security Assistance Agency, transmit ations. Mr. .ANNuNziO in six instances. ting a report on the impact on U.S. readi 723. A letter from the Assistant Adminis Mr. JoNEs of Tennessee in 10 in ness of the Air Force's proposed sale of cer trator for Legislative Affairs, Agency for In stances. tain defense equipment to Turkey . pursuant to section 813 of report on the Agency's activities under the Public Law 94-106; to the Committee on Freedom of Information Act during calen stances. Armed Services. dar year 1980, pursuant to 5 U.S.C. 552; Mr. NowAK. 714. A letter from the Secretary of Hous to the Committee on Government Oper Mr. D'AMOURS. ing and Urban Development, transmitting a ations. Mr. DAN DANIEL. report on the administration of the Inter 724. A letter from the Deputy Director for Mr. FAUNTROY. state Land Sales Full Disclosure Act, pursu Administration, Central Intelligence Mr. McDoNALD in three instances. ant to section 1421 of the act, as amended; Agency, transmitting a report on the Agen Mr. SANTINI. to the Committee on Banking, Finance and cy's activities under the Freedom of Infor Mr. MINETA. Urban Affairs. mation Act during calendar year 1980, pur Mr. FoRD of Michigan in two in- 715. A letter from the Chairman, Council suant to 5 U.S.C. 552(d); to the Committee stances. of the District of Columbia, transmitting on Government Operations. D.C. Act 4-4, "To approve a cost of living in 725. A letter from the Chairman, Com Mr. liALL of Ohio. crease for faculty and administrative sched modity Futures Trading Commission, trans Mr. CLAY. ule employees at the University of the Dis mitting a report on the Commission's activi Mr. OBEY in five instances. trict of Columbia; to increase the hourly ties under the Freedom of Information Act Mr. BLANCHARD. rate of work study students to $3.95; and to during calendar year 1980, pursuant to 5 provide a salary and pay adjustment for em U.S.C. 552; to the Committee on Govern ployees in the Educational Service of the ment Operations. ADJOURNMENT District of Columbia Board of Education," 726. A letter from the Acting Chairman, Mr. YOUNG of Missouri. Mr. Speak pursuant to section 602 of Public Law 93- Equal Employment Opportunity Commis er, I move that the House do now ad 198; to the Committee on the District of Co sion, transmitting a report on the Commis journ. lumbia. sion's activities under the Freedom of Infor 716. A letter from the District of Colum mation Act during calendar year 1980, pur The motion was agreed to; accord bia Auditor, transmitting various reports suant to 5 U.S.C. 552(d); to the Committee ingly ; to the Committee on Govern ETC. into by the United States, pursuant to 1 ment Operations. Under clause 2 of rule XXIV, execu U.S.C. 112b; to the Committee on Foreign 728. A letter from the Chairman, Federal Affairs. Maritime Commission, transmitting a report tive communications were taken from 718. A letter from the Director, Defense on the Commission's activities under the the Speaker's table and referred as fol Security Assistance Agency, transmitting a Freedom of Information Act during calen lows: report that the Defense Department has dar year 1980, pursuant to 5 U.S.C. 552; 708. A letter from the Principal Deputy provided certain defense articles, services to the Committee on Government Oper Assistant Secretary of Defense . transmitting a report on the value of thority of Presidential Determination No. 729. A letter from the Acting Director, property, supplies and commodities pro 81-2, pursuant to section 506(b)<2> of the Federal Mediation and Conciliation Service, vided by the Berlin Magistrate, and under Foreign Assistance Act of 1961, as amended; transmitting a report on the Service's activi the German Offset Agreement during the to the Committee on Foreign Affairs. ties under the Freedom of Information Act quarter ended December 31, 1980, pursuant 719. A letter from the Acting Director, De during calendar year 1980, pursuant to 5 to section 720 of Public Law 96-527; to the fense Security Assistance Agency, transmit U.S.C. 552(d); to the Committee on Govern Committee on Appropriations. ting notice of the Air Force's intention to ment Operations. 709. A letter from the Secretary of the offer to sell certain defense equipment to 730. A letter from the General Counsel, Army, transmitting notice of the proposed Turkey of the endar year 1980, pursuant to 5 U.S.C. 710. A letter from the Secretary of the Foreign Assistance Act, pursuant to section 552; to the Committee on Government Army, transmitting notice of the recent dis 620C of the act; to the Committee on Operations. covery and disposal of suspected lethal Foreign Affairs. 731. A letter from the Acting Director, chemical nerve agent munitions at Dugway 720. A letter from the Assistant Adminis Office of Government and Public Programs, Proving Ground, Utah, pursuant to section trator for Legislative Affairs, Agency for In National Science Foundation, transmitting a 409(b)<4> of Public Law 91-121 and section ternational Development, transmitting a report on the Foundation's activities under 506(d) of Public Law 91-441; to the Commit report on national eligibility standards im the Freedom of Information Act during cal tee on Armed Services. posed by the United States and other endar year 1980, pursuant to 5 U.S.C.