13704 CONGRESSIONAL RECORD- HOUSE July 20 In some instances, those who had once seaway, as well as to trade on the lakes The C:evelopment of a ·de-icing program opposed the legislation found themselves vot­ themselves. would, of course, be a necessarily long-range ing in support of it. As you know, we can normally figure on .program. However, there have been enough on May 13, 1954, President Eisenhower about a 230-day navigation season for upper successes with such systems-in Greenland, signed the Wiley-Dondero Act into law­ lakes boats; and a 245-day season for ocean­ Canada, and the Scandinavian countries­ culminating 50 long years of dreams by going vessels plying between ports along the to merit a complete study of their applicabil­ many people to make the seaway a reality. Great Lakes-St. Lawrence Seaway and over­ ity to the Great Lakes, connecting channels, Now, let's look briefly at additional chal­ seas ports (allowing 15 days on the high seas ports and harbors, and the St. Lawrence lenges ahead of us. beyond the Gulf of the St. Lawrence at the Seaway. beginning and end of navigation). CONCLUSION SEAWAY DE-ICING This certainly does not compare favorably This, then, is a brief review of the his­ A major battle that must be fought-and with the movement from U.S. ports along tory, problems and challenges evolving won-is combating the age-old foe of winter the Atlantic, gulf, and Pacific coasts, where around the greatest engineering and con­ ice. As you know, winter .freezing results in there is a 345-day navigation year. struction feat on the North American Con­ the most important physical limitation of To lay the groundwork for possible ulti­ ·tinent-the St. Lawrence Seaway. the St. Lawrence Waterway. mate development of a de-icing system on Now, friends, in conclusion, I want to ex­ The average navigation season, computed the Great Lakes and the St. Lawrence Sea­ press my warm appreciation for the oppor­ over a 37-year period, has been limited--due way, I have introduced a bill in the Senate­ tunity to join in your 4-day gala celebration to ice conditions-to the following averages: S. 2242. The proposal, if enacted-as I be­ in recognition of the significance of the St. The Weiland Canal, 252 days; the St. Mary's lieve it should be-would authorize the U.S. Lawrence Seaway to Superior, to Wisconsin, Falls Canal, 250 days; the St. Lawrence ca­ Army Corps of Engineers to make a compre­ and the Nation. nals, 241 days; and Montreal Harbor, 235 Too, I want to again humbly express my hensive investigation and study of a means deep gratitude at your gracious tribute in days. · of making the Great Lakes and the St. calling this special day in your celebrations As these figures illustrate, icing is plainly Lawrence Seaway available for navigation Senator Alexander Wiley Day. a major obstacle to full utilization of the during the entire year. Thank you very much.

President approved and signed bills of H.R. 7062. An act to provide for payment HOUSE OF REPRESENTATIVES the House of the following titles: of annuities to widows and dependent chil­ On June 30, 1959: dren of Comptrollers General; MoNDAY, JuLY 20, 1959 H.R. 2256. An act to amend chapter 37 of H.R. 7086. An act to extend the Renego­ tiation Act of 1951, and for other purposes; The House met at 12 o'clock noon. title 38, United States Code, to provide ad­ ditional funds for direct loans; to remove H.R. 7343. An act making appropriations Msgr. Lawrence P. Gatti, St. Mary of certain requirements with respect to the rate for the Departments of State and Justice, the the Assumption Church, Upper Marlboro, of interest on guaranteed loans; and for Judiciary, and related agencies for the fiscal Md., offered the following prayer: other purposes; year ending June 30, 1960, and for other pur­ poses; and 0 Almighty God, Lord of liberty and H.R. 7523. An act to provide a 1-year ex­ H.R. 7349. An act making appropriations freedom, and the just avenger of all tension of the existing corporate normal tax rate and of certain excise tax rates, and for for the Department of Commerce and related forms of license, send the grace of Thy other purposes; and agencies for the fiscal year ending June 30, holy spirit upon the members of this 1960, and for other purposes. H.R. 7749. An act to increase the amount On July 17, 1959: august assembly that they may receive of obligations, issued under the Second Lib­ the wisdom and guidance necessary to H.R. 904. An act to rename the New Rich­ erty Bond Act, which may be outstanding at mond locks and dam in the State of Ohio as transact the weighty business that comes any one time. the Capt. Anthony Meldahl locks and dam; before them. May they be filled with On July 1, 1959: H.R. 1547. An act for the relief of T. Sgt. Thy light so that the laws they enact H.J. Res. 439. Joint resolution making tem­ Walter Casey; will be according to Thy precepts and porary appropriations for the fiscal year H.R. 2065. An act for the relief of Arthur commands. May they always have a 1960, and for other purposes. J. Dettmers, Jr.; keen awareness of those principles and On July 6, 1959: H.R. 2497. An act to add certain lands lo­ truths that make for true liberty. In a H.R. 5515. An act to amend the 1956 act cated in Idaho to the Boise and Payette Na­ world that has lost, in so many areas, its authorizing the disposal of certain obsolete tional Forests; locks and dams on the Big Sandy River, Ky.­ H.R. 3368. An act to extend the special en­ freedom, and in our beloved country W. Va., for the purpose of increasing the listment programs provided by section 262 where there seems to be a rising tide of authorization relating to dam No. 3 on the of the Armed Forces Reserve Act of 1952, as lawlessness, may they be more conscious Big Sandy River, Ky.; and amended; than ever of their sacred duty to pass H.J. Res. 322. Joint resolution for the re­ H.R. 4072. An act to amend the act entitled enactments that conform to Thy holy lief of certain aliens. ''An act for the regulation of the practice of will lest unreasonable laws and unhappy On July 8, 1959: dentistry in the District of Columbia, and for precepts tend to bring both Thy holy law H.R. 7175. An act making appropriations the protection of the people from empiricism and their own legislation -into disrepute. for the Department of Agriculture and Farm in relation thereto," approved June 6, 1892, as At a time when the whole world is sigh­ Credit Administration for the fiscal year amended, and ending June 30, 1960, and for other purposes; H.R. 7567. An act to extend for a period of ing for peace, may they ·be especially and 2 years the privilege of free importation of aware of the words of Dante: "In His H.R. 7176. An act making appropriations gifts from members of the Armed Forces of will is our peace"; and the words of St. for the Executive Office of the President and the United States on duty abroad. Paul: "Who has resisted the will of God sundry general Government agencies for the and had peace?" May they, then, con­ fiscal year ending June 30, 1960, and for tribute to the peace of the world by con­ other purposes. MESSAGE FROM THE SENATE forming their legislation to Thy holy will. On July 13, 1959: A message from the Senate by Mr. These favors we ask in the name of H.R. 4454. An act to amend the act of March 3, 1901, to eliminate the requirement McGown, one of its clerks, announced Thy beloved Son who lives and reigns that the Senate had passed, with amend­ with Thee together with the Holy Spirit, that certain District of Columbia corpora­ tions be managed by not more than 15 trus­ ments in which the concurrence of the God, world without end. Amen. tees; House is requested, bills of the House of The Journal of the . proceedings of H.R. 5534. An act to designat~ the bridge the following titles: Thursday, July 16, 1959, was read and to be constructed over the Pdeomac River H.R. 836. An act to amend the code of law approved. near 14th Street in the District of Columbia, for the District of Columbia by modifying under the act of July 16, 1946, as the George the provisions relating to the attachment Mason Memorial Bridge, and for other pur­ and garnishment of wages, salaries, and MESSAGE FROM THE PRESIDENT poses; commissions of judgment debtors, and for H.R. 5914. An act for the relief of Dr. Rad­ other purposes; and A message in writing from the Presi­ boud Louwrens Beukenkamp; H.R. 6436. An act to amend the Federal In­ dent of .the United States was communi­ H.R. 6662. An act to amend the District of secticide, Fungicide, and Rodenticide Act so cated to the House by Mr. Miller, one Columbia Hospital Center Act in order to ex· as to include nematocides, plant regulators, of his secretaries, who also informed the tend the time during which appropriations defoliants, and desiccants, and for other pur­ House that on the following dates the may be made for the purposes qf such act; poses. 1959 CONGRESSIONAL RECORD- HOUSE 13705 The message also an.p,ounced.that the will be launched tomorrow at the New ban and on inspection against surprise Senate had passed bills of the following York Shipbuilding Corp., yard in Cam­ attack, and again rejected the Soviet.de­ titles, in which the concurrence of the den; · N.J. The sponsor will be Mrs. mand for mere paper prohibitions with­ House is requested: Dwight D. Eisenhower. out the controls necessary to assure com­ s. 314. An act to assist the U.S. cotton Several persons will have played im­ pliance. textile industry in regaining its equitable portant parts in bringing this ship into At the dawn of man's ventures beyond share of the world market; being. All are entitled to much credit. our planet, it took prompt action to pro­ s. 864. An act to provide greater protection None, however, is entitled to more credit mote international cooperation for the against the introduction and dissemination than is the distinguished gentleman peaceful uses of outer space. of diseases of livestock and poultry, and for other purposes; from North Carolina, the Honorable Certain developments during the last s. 1512. An aet to amend the Federal Farm HERBERT C. BONNER, chairman of the year are especially important from the Loan Act to transfer responsibility for mak­ House Committee on Merchant Marine point of view of the U.S. relations with ing appraisals from the Farm Credit Ad­ and Fisheries. He can rightly be called the United Nations. ministration to the Federal Land Banks, and the "father of the nuclear ship Savan­ The Middle East, as in 1957, was again for other purposes; and nah." a major focus of danger and of conse­ S. 2162. An act to provide a health benefits It was his proposal which authorized quent United Nations efforts to preserve program for Government employees. peace. Omitted from the RECORD of July 16, 1959: the construction of the vessel and which S. 1681. An act to provide an elected mayor, was enacted into law. It was his idea Last spring the President of Lebanon, city council, and nonvoting delegate to the that the ship should be a cargo-pas­ convinced that the independence of his Rouse of Representatives for the District of senger vessel, and not simply a show country was threatened by civil strife Columbia, and for other purposes. boat for demonstration purposes. instigated and abetted from abroad, ap­ The message also announced that the It was his thought that a cargo-pas­ pealed for help first to the United Na­ Senate agrees to the amendment of the senger vessel could be used not only to tions and later to the United States. In House to amendments of the Senate to demonstrate the peacetime use of June the United Nations Security Coun­ the bill (H.R. 6134) entitled "An act to nuclear power, but could also be prac­ cil, with our active support, responded to amend the Federal Employees Pay Act tically employed in carrying cargo and Lebanon's first appeal by establishing of 1945 to eliminate the authority to passengers to and from foreign ports. the United Nations Observation Group charge to certain current appropriations Congressman BoNNER was charged in Lebanon with the aim of assuring or allotments the gross amount of the with the responsibility of convincing that there would be no illegal infiltration salary earnings of Federal employees for both Congress and the appropriate ad­ into that country. certain pay periods occurring in part in ministrative agencies that his proposal ·In July. the situation in the Middle previous fiscal years." was sound. This he did despite vigorous East became more tense. Lebanon re­ opposition. The vessel has now been quested immediate military assistance constructed. Within a short time it will from the United States to help it pre­ INDEPENDENT OFFICES APPROPRI­ be put into actual operation. Even­ serve its independence and integrity. ATION BILL, 1960 tually, it will have sailed into most of the We responded by dispatching units of major ports of the world :flying ~he :flag our Armed Forces to Lebanon and at the Mr. THOMAS. Mr. Speaker, I ask of the United States, and demonstrating same time called for an urgent meeting unanimous consent to take from the to all people that our Nation wishes to of the Security Council. The Council Speaker's table the bill PENSION FOR MEDAL-OF-HONOR quired for the payment of statutory sider was laid on the table. HOLDERS awards for certain conditions which, prior to August 1, 1952, have been de­ . The Clerk called the bill INCOME TAX For the benefit of the Members, I and said that that was one of Uncle Sam's should like to include at this point some jokes, for she saw me go in at his house, but The Clerk called the bill Celilo Falls Hayne, which eloquently recites "Uncle Concerning Uncle Sam, Lucius E. Wilson exempt from income tax. Sam" Wilson's place in history. The wrote out the following statement in October Mr. ASPINALL. Mr. Speaker, I ask excerpt follows: 1917: unanimous consent that the bill S. 1976, NEW YORK, October 11, 1917. to make payments to Indians for de­ The original Uncle Sam-the term "Uncle My great grandfathE'r, on my father's side, Sam," as applied to the United States, and was one . of three brothers who emigrated struction of fishing rights at Celilo Falls the representation of the character called to this country from Scotland some time pre­ exempt from income tax, be considered Uncle Sam, originated in Rensselaer County. vious to the Revolution. He settled in Med­ in.lieu of the House bill. Uncle Sam in real life was Samuel Wilson, ford, Mass., near Boston. while one of the The Clerk read the title of the Senate born in Menotomy (now Arlington), Mass., others settled in Connecticut. The other bill. on September 13, 1766, and he was one of brother went into the State of New York, but The SPEAKER. Is there objection to the oldest inhabitants of the city of Troy of him nothing definite was ever learned. the present consideration of the Senate when he died July 31, 1854. He came to My grandfather was the son of the one who Troy from Mason, N.H., about the year 1793 settled in Medford, Mass. His name was Ed­ bill? and thus was among its _early settlers. Mr: ward, and he had several brothers and sisters, There being no objection the Clerk Wilson purchased land on the side of Mount but little is learned of their history. My read the bill, -as follows: Ida, now partly 'included within Prospect great grandfather married Lucy Francis, by Be it enacted by the Senate and House of Park, and ·occupied it for farming purposes whom he had 11 children, nine sons and two Representatives of the United States of until about 1820. He then sold all except daughters of whom all were married except America in Congress assembled, That the 4 acres, holding his residence which was at Lucy. They had numerous families and funds paid by the United ~?tates to Indian 76 Ferry Street. He was always an active lived to advanced ages .. My great ·grand­ tribes, the portion of such funds subse­ businessman engaged in many enterprises father owned a valuable farm at Medford, quently distributed to members of the tribes and in the community was highly regarded Mass., but sold it near the close of the war or to trustees for or representatives of such for his honesty and uprightness by his and concluded to move West, determining to members, and the funds paid by the United neighbors; most generous and thoroughly purchase a large tract of wild land. He took States directly to individual Indians, as genial character who was beloved by all who his pay in Continental money, which became compensation for the loss of fishing rights knew him, until he became to be commonly almost worthless. My father has said he due to the construction, operation, and called Uncle Sam by all of his acquaintances. told him that he paid $3,000 of it for one yoke maintenance of the Dalles Dam, Columbia It is recounted by descendants of Samuel of oxen that helped in ~is moving. He moved River, Washington and Oregon, shall not be Wilson who are still living in this part of with his family to the town of Mason, N.H., subject to Federal or State income tax. the country, that the application of his name where he bought and settled on 100 acres of to the U.S. Government grew out of an inci­ wild land. Ebenezer and Samuel, his sons, The bill was ordered to be read a third dent during the War of 1812 when troops of left home at an early age and went to Troy. time, was read the third time, and the American Army were assembled in the N.Y., and soon after commenced the business passed. cantonment at Greenbush (now Clinton of making brick, the first made in that sec­ - A motion to reconsider and a similar Heights in East Greenbush). Mr. Wilson, tion, and many of the oldest houses in Troy House bill viso ending section 255 of constrtJct, operate, and ma~ntain th3 Bully 1n which they were cauglit, taken, sold, pur­ Creek Dam, Reservoir, and related minor chased, possessed, or transported." title 2 of the Canal Zone Code, as added by section 10 of the Act of September 26, 1950 facilities as features of the Vale Federal The bill was ordered to be engrossed (ch. 1049, 64 Stat. 1042), is amended to read reclamation project, Oregon. In so doing, and read a third time, was read the third as follows: "Provided, however, That repay­ he shall be governed by the Federal recla­ time, and passed, and a motion to re­ ments by the corporation to the Treasury mation laws (Act of June 17, 1902, 32 Stat. shall in no case be treated as payments into 388, and Acts amendatory thereof or supple­ consider was laid on the table. the fund maintained in the Treasury pur­ mentary thereto). Said construction, how­ suant to section 253 of this title until all , ever, shall not be commenced u~til the Vale amounts appropriated to the corporation un­ Oregon Irrigation District shall have obligat­ FISH HATCHERY ~N._ PEN~SYLVANIA der authority of this section shall have been ed itself to repay such portions of the Fed­ repaid to the Treasury." . eral costs of constructing, operating, and The Clerk called the ·bill·

Moreover, it is of more than passing -of directors voted $8 million in bonuses to Repeatedly and piously; the American interest to note that the General Elec­ corporation management. firms concerned have claimed that tric and Westinghouse bids were within In 1957 there were $143 million worth U.S. artificial trade barriers, exorbitant four-tenths of 1 percent of each other, of electrical .machinery and apparatus tariffs, and other restrictive devices and this on a bid involving more than imported into this country. Our manu­ depress the economy of this coun­ $19 million. This is rare in the case of facturers exported over $1,021 million try. Indeed, recognizing that a very a large-sized custom-designed unit and worth of the same equipment. ·substantial part of their profits come is perhaps more than coincidental in an In other words, the total export busi­ from sales outside the United States, they economy that is supposed to be competi­ ness was almost 10 times that of com­ exton reciprocal trade. Yet, upon close tive. petitive imports. examination, we see that their position Both General Electric and Westing­ The Brown Boveri Corp. itself spends is hypocritical. house declared that the approximate $6 as much money in this country as to On the one hand, they demonstrate a million difference between their bids and equal the total value of their exports passion for the export of their products. the winning bids was due to labor costs. here. As the Reporter magazine recently On the other, they show a violent antip­ Mr. Speaker, this is a futile and erro­ commented on General Electric and athy toward imports of products compet­ neous claim. Let us examine the facts. Westinghouse: itive with their own. Both American firms have said that Neither company appears in imminent General Electric and Westinghouse no British labor receives only 40 percent of danger of collapse because of foreign compe­ longer claim that their profits are being the hourly rate paid to electrical work­ tition. trimmed on account of occasional con­ ers here. Taking the number of man­ tract awards to our friends overseas. In­ hours involved, as stated by General The American companies soon changed instead, they predicate their opposition Electric and Westinghouse, and wage their tack. Disclaiming economic hurt, on the alleged belief that these two re­ scales as stated by the Bureau of Labor they assumed the role of patriotic Amer­ cent purchases constitute a threat to our statistics, the labor cost differential icans whose only concern was the na­ security. favoring Parsons was slightly over $2% tional security. They petitioned the Of­ We need not be deceived. Their meth­ million. fice of Civil and Defense Mobilization to od of attack has changed. Their object, However, as industrial productivity in determine that the importation of for­ however, has remained the same-elimi­ this country is approximately twice eign-produced electrical generating nate foreign competition and preserve that of British industry, the difference equipment threatened to impair the na­ the managed price system of operation. in labor cost is vastly reduced. But, the tional security of the United States. Mr. Speaker, I believe the Congress difference in the bids was over $6 million. These companies claimed that in the , well knows of my deep concern for the In addition, the American companies event of a national emergency there will welfare and strength of our Nation. A had other price advantages. Parsons be inadequate facilities to repair and substantial part of my activities, as a Co. has to pay over $1¥2 million in im­ maintain this equipment. Once again, Member of this body for the last 16 years, port duty. Furthermore, the Tennessee the facts clearly belie their contention. has been devoted to insuring that the Valley. Authority informed both Gen­ In its more than 30 years of doing security and defense of .the United States eral Electric and Westinghouse that it business in the United States, Brown be maintained at the highst possible would accept the lowest bid from a Boveri has never found its necessary or level. Therefore, I would look carefully U.S. manufacturer . if it did not desirable to return to the company's main at any claim that this strength of ours ·exceed the lowest foreign bid by more manufacturing plant in Switzerland any was being threatened. than 20 percent. This, plus the duty, generators, power transformer or breaker I must confidently and strongly reject gave the American bidders a $4 million installed in this country. Brown Boveri the bogus charges that have been di­ advantage over the British finn. The has sold turbo-generators to private in­ rected at these two contract awards. :figures clearly show that if General Elec­ dustries, privately owned public utilities, We must not let the fiag wavers ob­ tric and Westinghouse had obtained as well as municipal utilities, and elec­ scure the re!;tl issues. their labor at no cost at all, they still tric cooperatives. . They have huge fa­ We are all concerned with the econ­ would not have been competitive. cilities in New Jersey which house ma­ omy of governmental operations; is it Higher productivity, tariff protection, chine shops, supplies and spare parts, not manifestly clear that these two and the Buy American Act offer General as well as a fully equipped engineering ·purchases under discussion will result in Electric and Westinghouse such tre­ department. In addition, they retain, tremendous dollar savings to the agen­ mendous advantages as to more than under operating agreements, the full fa­ cies concerned and to the taxpayers of overcome the difference in wage scales. cilities of domestic companies which are our Nation? We do not have to look very hard to able to make any or all necssary repairs. Are we not also interested in the posi­ see why· the American firms lost out. It In the case of the Parsons Co .• ·the tion of the United States in relation to was not the difference in labor costs. It Tennessee Valley Authority carefully ap­ the rest of the world? was their determination to make a high ·praised their qualifications by an inspec­ Thus the interchange of ideas and and exorbitant profit. tion of the company's facilities and de­ products being highly desirable and eco­ What is true in terms of the bids on tailed discussions with its responsible of­ nomically beneficial to all countries par­ the Tennessee Valley Authority genera­ ficials and engineers. Tennessee Valley ticipating should be promoted, not op­ ·tors remains essentially true with respect Authority has determined that this Brit­ posed by the governments involved. to the Los Angeles contract. Taking ish firm has the equipment, skills, and Let me say, too, that this is not a their own figures as a basis of compari­ ·manpower to service any efficient and re­ 'partisan issue. The Los Angeles Herald son, General Electric and Westinghouse liable machine. They maintain service and Express, on February 26, 1959, made have not only failed to prove their argu­ facilities in Canada which are as fa­ the following editorial comment: vorably located as the corresponding fa­ ment that labor costs impede them from Vice President RICHARD NIXON, on his re• effective competition-they have amply cilities of the U.S. firms. cent visit to Los Angeles, said gravely that demonstrated that they have priced In this very context, it is not insignifi­ the inflation caused by spiraling wages and themselves out of the market because, cant to note that the Comptroller Gen­ prices threatens to force us out of the world and only because, of their high margin of eral, in his latest report to Congress on market, and already has forced us out of profit. the Tennessee Valley Authority, stated several European markets. And yet, in the that there was considerable difficulty instance of the Los Angeles generators, in­ The combined .total of General Electric flation has priced our own U.S. firms out of and Westinghouse sales in 1957 was well with the large turbo-generator units pur­ the U.S. markets. The people, communities, :over $6 billion. . chased from Westinghouse Electric Corp. the industries of the United States should In 1958 the profits of General Electric He stated explicitly that substantial be encouraged to buy American as much as leaped ahead of the corresponding 1957 damages to the authority have resulted possible in these critical times, but· the quarter by 25 percent on sales $28 mil­ from the fact that 14 generators, costing prices of· American goods must be brought lion below· those in the same period .of '$46 million, failed to mee't the heal rate down to practical levels where ·they can the previous year. Westinghouse profits specified in the contract. afford to buy them. in the recession year of 1958 were $2.2 With such a record, Westinghouse I agree with the Vice President's state­ ·million higher than in relatively prosper­ must have had tongue in cheek when ment generally, and I believe I have ous 1957-.SQ s_ubstant1al that the board they became party .to the recent petition. proven that in this case it is not the 13730 CONGRESSIONAL RECORD-. .HOUSE July 20 wages paid to American workers that neither any intention of competing for repeating carbine provided t(l the cavalry have caused the inflation, but rather the missions in the aviation field with the formations of. both Confederate Gen. extraordinary high profits of· the man­ Air Force; nor any remote design of cre­ J. E. B. Stuart and later Union Gen. Phil aged price corporations. These man,;. ating another air corps within the Sheridan, both of whom, incidentally, aged prices have forced our Government Army's ranks. Both by executive direc,;. operated most effectively in the terrain purchasers of equipment to exercise pru.:. tive and by operations instructions, to the west of and not too distant !rom dent business judgment and award their Army aviation is intended for use in the this city of Washington. contracts to the lowest responsible ground battle area. Within this area it This, then, is the shape of things to bidders. accomplishes essential work of two broad come, and represents a large step for­ I affirm that the facts completely fail categories. First, as an extension of the ward in the race to develop a tough, ag­ to disclose an impairment or a threat of combat reconnaissance effort, aviation is gressive ground combat-force, prepared impairment of the security of the United used in very much the same way that our to defy tyranny and oppression wherever States or even of its domestic electrical Indian fighting Army once used horse it may appear on the face of the earth. industry. Any action that might have cavalry; namely as a more rapid means This expanded use of air vehicles to help impaired the awarding of these contracts of acquiring that information of the materially in the composition of such an would have injured the United States as enemy and of the terrain which is essen­ Army-mobile and determine~: and· a trading nation in the eyes of the world. tial to the ground combat role. In sup­ ready-is being quietly and competently It would have deprived this country of a plementing this effort Army aircraft are developed by a group of devoted Army valued source of supply and the cost of used to assure reliable communications officers both here in the Pentagon and our Government operation would have among combat headquarters and to out in the field, who are concerned in the been vastly increased. search for, identify, and bring fire to final analysis with only one subject, and The Office of Civil and Defense Mobil­ bear on enemy targets. The second that is an adequate defense posture for ization understood what the real issues broad mission of aviation, again serving our country. were and ruled clearly and firmly against in the ground combat area, is to move Let me now turn briefly to a person­ the protest of the American manufac­ troops and equipment to places where ality who has recently arrived on the turers. These contracts which were they are needed and where the tactical Washington scene as the newly ap­ honestly and effectively awarded will situation or the time element or both pointed Director of Army Aviation in the now be proceeded upon as originally in­ dictate the use of aircraft for this pur­ Pentagon. Brig. Gen. Clifton F. von tended. pose. I am sure that all of you, particu­ Kann is a member of that elite group Recent events show the wisdom of this larly the combat veterans amongst us, within the Army who is both a soldier course of action. General Electric has are aware that there are occasions in and a scholar. Armed with a graduate announced price reductions in the field of battle where the timely delivery of a crit­ degree from Harvard University as well heavy electrical generating equipment. ically needed item of equipment can spell as a diploma from our Nat!o~al War It also announced that it would modify the difference between victory and de­ College, General von Kann has had the the escalator clause in its contracts. feat. The same reasoning applies to the opportunity for broad and responsible The New York Times noted this step movement of critically needed personnel service as an officer of his young years. with approval and stated editorially on to man our weapons. These, then, are Not yet 45, General von Kann has served July 16: in laymen's language the functions of in troop assignments, in the Office of the One of the giants of American industry aviation in the Army. As is obvious, Army Comptroller, and in an executive has just administered some of its prices there is no confltct here with the mis­ capacity at the Central Intelligence downward. The General Electric Co. has sions of the Air Force. Agency. He comes to Washington from announced on successive days reductions in Now I do not pretend to infer that duty as assistant division commander prices of its turbines, both large and small. What the announcements did not say was there are no proponents in the Army· of of our famed 82d Airborne Division at that foreign competition is a large element using Army aircraft for certain. combat Fort Bragg. : While at Fort Bragg he in the decision at least for the big turbines. missions formerly performed by the air had the opportunity t_o serve with Maj. The revival of Western Europe is producing a service of World War I, the Air Corps of Gen. Hamilton H. Howze, until very benefit that Americans had perhaps not fore:. World War II, and even the Air Force recently the division commanding gen­ seen-the infusion of an extra element of in Korea. In looking into this subject I eral, who was the first Director of Army competition in parts of American industry had occasion recently to read of the ac­ Aviation. that have been to some extent immune dur­ ing most of the postwar period. tivities of that great patriot and com­ General von Kann shows a clear and In a sense, we as consumers are getting our mander of our expeditionary forces in canny grasp of the multitudinous prob­ Marshall plan money back. France during the First World War, lems and challenges which face Army General of the Armies Pershing­ aviation in the coming years. To illus­ Mr. Speaker, it is for these reasons that "Stamps and Esposito," a short military trate this point I would like to introduce I have felt impelled to take the floor and history of World War I, USMA, 1950, for the RECORD a speech which General present the true story of these contract page 323. In the initial combat opera­ von Kann delivered to the Army ·Avia­ awards to the Congress and to the peo­ tion of the 1st U.S. Army as an entity tion Association of America on June 6. ple. during September of 1918, General I urge all Members of this body to give Pershing, assisted by his 1st AriLy avia­ this very astute speech their careful at­ ARMY AVIATION tion officer, Col. William Mitchell­ tention when it appears in the CoN­ The SPEAKER pro tempore. Under known later to history as Gen. Billy GRESSIONAL RECORD. previous order of the House, the gentle­ Mitchell-used the aircraft available to The speech follows: man from Pennsylvania [Mr. FLOOD] is him in about three equal portions. OPERATIONAL TRENDS IN ARMY AVIATION recognized for 15 minutes. These were strategic bombing, ground (Speech for the Army Aviation Association Mr. FLOOD. Mr. Speaker, you will support, and observation. This propor­ of America by Brig. Gen. Clifton F. von recall that I had occasion to discuss the tion, which worked admirably in the Kann, June 6, 1959) very essential roles and objectives of avi­ open warfare of the St. Mihiel salient, May I say that it is a threefold honor to ation in the U.S. Army on this floor last has changed progressively in the years be here today. It is an honor to address this June 29. At that time I traced the his­ since 1918 up to today where, at one end outstanding group which I know is destined of the spectrum we see the Air !_ilorce to make very significant contributions to the tory of Army aviation, its mission and future of Army aviation. Secondly, it is the size of this operation in the Army charged exclusively with the strategic bombing mission, and at the other end an honor to be pinch-hitting for my dis­ today. Today I would like to take a few tinguished boss, Maj. Gen. Hamllton H. minutes in discussing this subject fur.:. the Army charged with the mission of Howze, who did so much to further the cause ther. providing its own local tactical observa­ of Army aviation. And finally, it is an honor First, there is apparently some misun­ tion. jor me to be speaking as the newly desig­ derstanding in certain segments of the The Army is already experimenting nated Director of Army Aviation .. quite successfully with the use of armed Now it is obvious that I cannot speak from American public as to the distinction be.: a platform of long service in aviation. How­ tween Army aviation and the U.S. Air helicopters. These air vehicles are being ever, my last 2 years have given me some Force. Let me emphasize at this time developed to provide the same firepower opportunity to deal with operational prob­ that we can b~ sure that the Army has capabilities to sky cavalry units that the lems involving combat units. I have worked 19"59 CONGRESSIONAL :RECORD- HOUSE 1373l closely with Army aviation-in five major di­ vantages which go with originality. Mili­ of Air Force aviation: This problem lends visional maneuvers involving the 82d Air­ tary history is replete with examples of de-· itself to many unfortunate misunderstand­ borne Division and the 101st Airborne Di­ cisive advantage being gained through in­ ings. Now with regard to the functions of vision. Twenty-four hours ago -I was ac-_ novation particularly in the field of mobility. Army aviation vis-a-vis those of the Air­ tively participating in Exercise Dark Cloud/ Every great captain in history won key bat­ Force, I feel that we should not duplicate Pine Cone II, a large joint maneuver involv­ tles by moving faster than the enemy functions and services which the Air Force ing the 82d Airborne Division and the U.S. thought possible. With the ICBM stalemate, can adequate perform. Regardless of the Air Force. Over 100 Army aircraft supported it should be evident that the United States overall adequacy of strategic airlift, I am the division in the exercise; and all were in must insure its own ability to ·win limited sure that in any future theater of operations continuous use, both day and night. I have conflicts fought under the umbrella of the there will be substantial troop-carrier air­ seen Army aviation operate tactically in stalemate. Nowhere else in our arsenal of· lift to haul supplies, personnel and equip­ midwinter in Alaska and have wargamed new weapons and techniques can I see even ment to advanced airfields, possibly as far Army aviation in three major command the beginning of such possibilities for im:io­ forward as the corps rear areas. I cannot post exercises involving field army and vation in mobility .as lie in the developments visualize anyplace in the world where there higher units. On this basis I would like to which the aviation industry is straining to would not be some airfield capable, after a offer a few observations. fulfill. I tberefore say with the sincerest· few hours' rehabilitation work, of receiving My first is that even with the limitations belief that not only the future -of ground as·sault aircraft. This is a form of support of some current models, I am deeply and tactics but quite possibly our national secu­ which we can and must expect the Air Force completely convinced that Army aviation is rity may depend on how we use and exploit to perform for us. the one major breakthrough in mobility aviation to support ground combat. _ Of course, we cannot expect troop carrier the Army has made since World War II. However, I must temper my own enthu-. aircraft to go farther forward than this. We have lightened some items of equipment siasm by pointing out that the road is not And Army aviation finds its most urgent and (while adding to many others). But when an easy one. First of all, with any break­ important application in these forward areas we strike the balance, the only quantum through item there is the time problem of where aircraft must be able to operate with­ jump is the fact that right now, today, a getting these items into the hands of com­ out airfields. · This dictates the requirement squad, a platoon, or a rifle company can be manders and under conditions where com­ that a very substantial portion · of our fleet in position A one instant, and 10 minutes manders and their troops may develop the be designed with configuration and other later can be in position B 5 miles away­ best techniques for using them. In the case characteristics that allow it to be camou­ and ready to fight. Thus we are combining of aviation many of our commanders do not flaged and concealed effectively on the bat­ the two most mobile elements in warfare­ understand aviation, and we all tend to re­ tlefield. the foot soldier and the airplane. coil from things we don't understand. We I would like to point out here that during Significant, too, is the fact that the com­ must remember that only a few years ago a the past year we have devoted a good deal of· mander can once again ride around the lieutenant colonel didn't dare ask for a heli­ time and thought to this problem in the 82d battlefield, can see for himself the actual sit­ copter ride. He could not foresee the possi­ Airborne Division. After much trial and er­ uation on the ground, can give appropriate bility of having fulltime use of such a ve­ ror, we have concluded, that with simple orders on the spot, and then take off to other hicle. Five years later our lieutenant colonel camouflage (salvage parachute cloth in our. decisive areas. In short, the helicopter has comes back to troop duty a grade higher and case), and good ground handling equipment returned command by physical leadership to in command of a battle group. He now has to move aircraft in and out of clearings, we the battlefield in place of command via the his own helicopter, he has fixed wing over­ can keep small fixed wing aircraft and re­ situation map. All this can be done with head to give him eyes on the battlefield; and connaissance type helicopters alive in the existing aircraft. Also very important is the he can call for cargo helicopters to move his forward areas. We believe the HUlA fact that we are on the threshold of develop­ rifle units. Is it any wonder that it takes Iroquois will also be capable of surviving ments by which light but potent weapons, time before he can effectively utilize these under these conditions. Larger helicopters, such as rockets and missiles, can be married and many more aircraft in the accomplish- however, with present configurations cannot with low performance aircraft and possess ment of his' mission? · remain near the front for any appreciable the same mobility as the troops to be sup­ We must also remember that training time. ported. people to use aviation effectively does not I have b~en stressing close work with the I am also convinced that the problems of come easily, especially when we are flying · forward units. This does not mean that in and out of dusty strips and confined Army aviation has no role in the Army the atomic. battlefield can only be solved by service area, in the logistical commands, and intelligent application of our aviation poten­ areas. Combat mim~uvers in these places tial. We can no longer tie our infantry to are frequently dangerous and always time in the rear area security and damage control key terrain features; we can no longer hold consuming to set up and rehearse. There­ .complex. All these units ~ust be given the · fore bear in mind that it takes time to means to perform both operation and logis­ on to the highest ground, or to any key real tical jobs within their areas. In addition estate, for that matter; to do so is to invite train aviators to work with tactical units. An even more critical factor is the time Army aviation can help materially to speed annihilation. On the atomic battlefield we up logistical processes and give our supply must rather depend upon elusiveness, speed it takes the tactical units to learn to work with aviation. This is not a serious prob­ system mobility to match that of the com­ of maneuver, quick concentration and dis­ bat units being supported. There is every persion, and more than anything eise, main­ lem in flying from airfield to airfield; but when the destination or pickup point is a reason to expect that 10 years from now tenance of the integrity of our force. Army logistical support will be managed in a to­ aviation is unique in its ability to offer many small cleariJlg in the woods, it becomes a problem of different dimensions. tally different manner and that Army avi­ and varied solutions to this basic problem; ation will be a major factor in these changes. and with our aircraft we have the high I would like to leave the thought in your For example, if the battlefield of tomorrow. ground when we need it. mind that it takes approximately a year finds infantry units fighting alone in their Another basic contribution of Army avia­ to develop a truly professional standard of own perimeters, it is vital that we have the tion is its ability to offer solutions to the teamwork between the infantry units of a capability of supplying them by air-and problem posed by a numerically larger en­ division and the aviation which must work Army aviation will be most suitable for this emy. After World War II we realized that with these units. A great deal of hardware task. we would be outnumbered in future wars by and gadgetry must be improvised. Land­ In the matter of providing weapons plat­ masses of manpower, but thought then that ing aids, ground handling gear, and other forms the issues are somewhat more confus­ we could beat down these masses by fire­ auxiliary items must be fabricated; this ing. Now here, too, there have been unfor­ power. From the standpoint of firepower takes time, patience, practice, and funds. tunate misunderstandings. And I would and equipment, it is now evident that this None of these are readily available resources like to say that as I see it, the Army's devel­ will not be the road to victory on tomorrow's in today's Army, especially the funds. opmental work in this field has nothing to battlefield. We may be able to win out over What this really means is that Army avia­ do with the Air Force responsibility of close superior numbers; but 1f we do, it must be tion is in the position of the man who is air support. We agree that close air support by capitalizing on techniques which allow trying to build a house and at the same is an Air Force responsibility; we want all of one of our men to be in as many places as time extinguish a fire that has broken out it the Air Force can give us; we'd like to see 3 or 4 or 6 9r 10 of the enemy in the same time inside. We must keep building for the fu­ more of the Air Force effort go into it. But period. This is another way of saying that ture; and there is real time pressure upon never has the status of close air support af­ the mobility offered us by aviation can be us to realize the great potential that avia­ fected the Army's effort to reduce its own used to overcome the fact that we are out­ tion has for the Army. On the other hand killed and wounded in action by maximum numbered. Provided, of course, that we uti­ we must not be so preoccupied with the fu­ use of supporting weapons. And with the lize our potential more effectively than the ture that we fail to extinguish the fires that new mobility which aviation offers us, it enemy. In this respect I do not want to be are now burning. In this respect we have a becomes a matter of life and death to our an alarmist; but I know that our enemies real obligation to police up our program as it infantrymen that supporting weapons are not asleep to the possibilities in this field. now stands--to make of Army aviation a con­ achieve a similar mobility. Here is why: So there is pressure upon us to develop our sistent, constructive, and well-balanced pro- . We know we can move riflemen around capabilities faster than he. gram-managed by truly professional avi­ the battlefield by Army aviation. However, If we can develop and realize this great ators. these riflemen cannot live very long unless . potential before the enemy does, then we Another area of difficulty is that of ration­ they receive a rapid buildup of supporting can become the innovators and reap the ad- alizing the role of Army aviation with that fire by heavy weapons, the heavier and more 13732 CONGRESSIONAL RECORD- HOUSE July 20 potent .the better. Thl.$ is a point which has of great comfort to look around me here to­ Without the passage of the pending been proved to all of us who h ave been in day and see the host of dedicated and gifted area development bill, unem:ployment combat in World War II and in Korea. Now people who must and, I know, will share will continue to fester in those ·distressed we can haul some supporting weapons today in the work. by Army aircraft; but this type of mobility If we can effectively mobilize the brains areas, for "they will not share in the up­ tends to lag because of the weight involved. and talent in this hall, we can expect a high turn as their industries have closed or More serious, it tends to fasten t he riflemen degree of progress and success for Army have lost out competitively. to the terrain-which we do not want to do. aviation. With the passage of the pending bill, But, 1! we . can borrow a lesson from the these communities will be given a chance, armored cavalry and mount our supporting NEED FOR DEPRESSED AREAS BILL through the development of local-Fed­ weapons on vehicles with the same mobility eral cooperative programs, to build new as those carrying our assault troops, then The SPEAKER pro tempore. Under industries and create new jobs for those we will have a truly modern, mobile, and previous order of the House, the gentle­ balanced fighting force which can win on who have long been out of work through any type of battlefield-atomic or non­ man from Pennsylvania [Mr. FLOOD] is no fault of their own. atomic. These units need no-:; be large, for recognized for 15 minutes. RURAL AREAS they can defeat forces many times their Mr. FLOOD. Mr. Speaker·, the area size by their ability to go quickly to deci­ redevelopment bill continues to be needed In many places it is simply impossible sive areas. Thus we have not only the re­ as badly as ever. The economic recovery for a family to make a decent living on quirement for Army aircraft which can ma­ that has been taking place in recent a small farm. There are approximately neuver riflemen, but also for aircraft which months has bypassed the areas this bill 1 million farm families with an annual can provide us with mobile weapons plat­ would help, because they have ~pecial income of less than $1,000. This bill forms. And I an informed that these are would help create off-the-farm jobs to virtually within our grasp. problems separate from general levels of I hope so, indeed, for these must become economic activity. supplement the income of these farm as important as the ships which carry the :INDUSTRIAL AREAS families in areas where this type of prob­ troops. Needless to say, we must push to­ lem is particularly acute. ward an all weather capability in our air­ The excessive unemployment in the These rural provisions of the bill are craft to match the all weather capabilities chronically depressed industrial areas is needed as badly as ever, because the of the men and equipment they must carry. sometimes spoken of as "structural" un­ small farmer is being squeezed as badly Now in this connection I should point out employment, because it results from per­ as ever. The parity ratio-the relation that I am aware of no developments within manent changes in the pattern or struc­ of the prices the farmer receives to the the Air Force that will begin to satisfy these ture of a community's industry rather prices he has to pay-went down from requirements. And I sincerely hope that than from general economic conditions. the Army, in its efforts to do so, does not 85 in 1958 to 82 in May 1959, the lowest find history repeating itself. I was recently For example, unemployment resulting level since World War II. Farm prices reading Steve Tillman's fine book on the first from closing the railroad shops in a town and farm income have both continued days of Army aviation half a century ago. because of changing from steam to diesel to decline. The number of farms con­ The airplane was hardly 4 years old when locomotives is not helped. by a business tinues to decline at the rate of about experiments were made on the possibility of pickup. It is the same way in coal-min­ 200,000 a year. From 1952 to 1958, the firing machine guns from airplanes at ground ing communities where jobs are gone no targets. Despite the promises of innovation farm population fell by 3 Y2 million and matter how much business picks up. this decline also continues. · which these early experiments offered, you The purpose of the area redevelopment may recall the view point of many, that the bill has always been to meet the special As these people are forced off the flying machine was a vehicle for reconnais­ farms, they must have other opportuni­ sance and observation only, and not for the problems of the chronically depressed ties to make a living, and this bill is delivery of firepower. Thus the early avia­ areas rather than unemployment prob­ urgently needed to help provide those· tors were forced to do their experimentation lems arising from general depressions. opportunities. - on a hand-to-mouth basis with great difll­ This is emphasized by the fact that both culty and sometimes at the expense of their major political parties pledged the enact­ HOW THE BILL WOULD WORK' own funds. It is somewhat terrifying to ment of such a bill in the campaign of The bill would help create new jobs think that we can go to Fort Rucker right 1956, which was not a depression year. now and find virtually the same condition. in first, industrial areas which continue Over the past few years the Aviation Center The continuing plight of the depressed for an extended time to have excessively has done magnificent work toward making areas is shown dramatically by the sta­ high rates of unemploym~t; and, sec­ a reality out of helicopter-borne firepower. tistics on unemployment. The number ond, rural areas where farm resources But although the importance of this work of distressed labor markets is increasing, are most inadequate to enable families is manifest, it has been done on a staravtion not decreasing. In May 1959-the latest to make a decent living from farming. basis and tar, far too slowly. I only hope month for which figures are available­ The bill would operate by giving as­ that this development will not be further there were over 50 percent .more dis­ slowed down on the basis of a jurisdictional sistance to local efforts to establish in dispute between the Army and the Air Force tressed labor market areas than in Jan­ such areas new business enterprises which really has no logical basis. uary 1959 and almost three times as which would provide employment. · The basic point is that there is a very seri­ many as in August 1957. Where the local people in an area ous deficiency in the firepower that can be Unemployment continues to be con­ eligible for assistance under the bill effectively brought to bear in support of centrated in these distressed labor mar­ undertook a program for establishing combat units. If this deficiency is not elim­ kets in a very serious manner. In May new industries, the Federal agency could inated our ability to pursue limited war will 1959, the 179 distressed labor markets be drastically curtailed. No one has yet assist by providing first, information, made the case that we should leave this gap had almost one-third of the Nation's un­ such as market research and other in­ in our military preparedness. On the other employed, although they contained only formation or advice available from hand we have at h and the opportunity to 14.5 percent of the Nation's working various Government agencies; second, eliminate the gap and to seize the initiative population. technical assistance, such as evaluating in the limited war arena by becoming inno­ The persistence of unemployment in and helping to develop potentialities for vators rather than followers in mobility. economic growth; third, financial assist­ We cannot afford to be second best in the these areas is indicated by the following missile race; but once the stalemate is upon table: ance in the form of (a) loans for the us it becomes import ant that we not be sec­ development of land and facilities for use ond best in tactical mobility, for national January May ·by new businesses-a revolving· fund of security and survival are at stake. 1959 1959 $75 million for industrial areas and Now in closing I must reiterate the thought another revolving fund of $75 million for that my boundless enthusiasm for the poten­ Number of distressed labor mar- rural areas-and (b) lo&.ns-a revolving tial of Army aviation is matched by my inter­ kets______119 179 est and concern in finding solutions to these Total unemployment in these dis- fund of $50 million-or grants-total of many problems. I hope that I can be con­ tressed labor markets ______· 811, 973 1, ~90 , 657 $35 million-for public facilities needed structive in defining the .major problems, in P ercent of Nation's unemploy- Percent Percent to serve new businesses; and, fourth, determining the best solutions (on balance, ment in these distressed areas___ 17.2 32.2 vocational training to enable unem­ of course, for no answer will satisfy every­ P ercent of Nation 's working pop- body) , and in firmly incorporating the solu­ ulation in these distressed areas_ 9. 3 14. 5 ployed individuals to qualify for new National rate of unemployment__ 7. 0 4. 9 employment in the redevelopment area, tions into the Army aviation program. This Rate of unemployment in these wm be no small task; and I feel very humble distressed areas______12.9 10.8 and subsistence payments for persons as I face up to it. However, it is a source receiving such training. 1959 CONGRESSIONAL RECORD-· HOUSE 13733 TO WHOM DO WE OWE LOYALTY OR their associates prey· on employers, employees ing it: in the· collection ·of $1 billion of and the public like a tomcat in a bird's nest. ARE WE JUST FUZZY HEADED? - . funds now overdue. IN SECOND PLACE · Both of these bills have been carefully The SPEAKER pro tempore. Under Not all unions, far from most, are so tagged. worked out,.and are the product of many previous order of the House, the gentle­ But a trend of pattern of violence, coercion, years of careful investigation and study man from Michigan [Mr. HoFFMAN] is mayhem, arson, a~d blackma!l is well dis­ into the problems they are intended to recogitized for 10 minutes. closed in some areas of union-employer re­ correct. These bills do not touch upon Mr. HOFFMAN of Michigan. Mr. lationships. The area is so large, the violence so brutal as to raise substantially the ques­ the Federal Reserve's monetary policies. Speaker, after hearings by a subcom­ tion whether the public peace is shattered nor its supposed independence. They go mittee and discussions by the full com­ by this kind of domestic warfare. simply to its handling of Government mittee of the Kennedy-Ervin bill the For those killed or. maimed in the pro­ funds. House Committee on Education and La­ ceedings, the question arises whether they TO REQUIRE AN OFFICIAL AUDIT OF THE FEDERAL bor on Thursday next will probably vote have thus been deprived of certain inalien­ RESERVE to report out a bill of its own. able rights endowed by the Creator-such One of these bills will require the Its provisions are designed to protect rights as life, liberty, and pursuit of happi­ Comptroller General . of the United the union member against corrupt offi­ ness. After such rights as those, property rights come in no better than second but, States to make regular audits of the cials and it makes at least a pretense of even in second place, there they are. ·Federal Reserve Board and the Federal giving protection to the public generally, All of this is part of the philosophical Reserve Banks and to make reports to the average union worker, but it is woe­ background of the proceeding now underway Congress. The Federal Reserve is one of fully deficient in. words which will ade­ in the U.S. Senate. The U.S. Senate is con­ t.l;le few Government agencies whose quately protect the welfare of the peo­ sidering labor legislation under circum­ bookkeeping and spending practices are ple or the average individual forced to stances of dispute and disagreement. Espe­ not subject to the audit control of the work for a livelihood. cially in dispute is whether the new labor legislation should provide protection for the Comptroller General. At present there It does not give adequate protection public, for workers, and for employers. This are no official audits of this agency, yet against blackmail picketing and second­ protection would be against those elements it handles more Government funds than ary boycotts. of organized labor which are, in fact, extor­ any other agency. The bill provides a It does not protect the average busi­ tionist rackets operating without much hin­ reform that is long overdue, and it nessman or industrialist against extor­ drance from present law. should result in saving the taxpayers tion. CHIPS ARE DOWN several million dollars a year. Certainly, the Members of the House, Those employers, workers, and the public The manner in which the Federal Re­ as well as the average informed indi­ who have been victimized by hoodlum union­ serve Banks are spending public funds vidual, kilow that secondary boycotting eers are not themselves organized. They are has been pointed out several times. is wrong, that organizational picketing numerous, but they are no pressure group. They opened such funds for parties, has no place in a free nation. Big labor is well organized, of course, well gifts, golf tournaments, paying for the heeled and powerful. No crys-tal ball is nec­ college educations of unknown youths, Certainly; every intelligent individual essary to foresee what is likely to happen should, if he does not, know that levying when the Senate chips are down. The ques­ and so on. Illustrations are well-known a tax·· by private groups upon the right to tion will be that of protecting the public by to the public, and I have many letters as work or the privilege of doing business imposing on all unions certain curbs on con­ well as newspaper editorials from all should not be tolerated. duct. Without such curbs, some unions have over the country demanding that Con­ Those who are·· not familiar, either been inclined to abuse their privileged status gress put a stop to this extravagant, from experience or from reading the and to abuse some citizen employers and wasteful, and, in some instances, quite press reports of the McClellan and pre­ some citizen workers in the process. improper use of public funds. vious congressional hearings, can be ad­ The pressure group of big labor almost cer­ TO REQUIRE PAYMENT OF $1 BILLION OF IDLE vised of -the ·millions of dollars which tainly will have the votes to lick any propo­ FUNDS NOW BEING WITHHELD FROM THE have been collected by extortion from sition such as that, and the Senate in time TREASURY American citizens~ much ·of it illegally will proceed to other business. Whether that The other bill would require the Fed­ spent. will be good or bad is a matter of opinion. eral Reserve to pay back to the Treasury Those unfamiliar with customary The voters could get some facts on which to immediately $1 billion of Government practices of unions which are illegal and base his own opinion if he would read Petro's funds which it is now holding in a sur­ destructive of the individual's freedom book. plus fund. The Fed receives its income should read the book recently published, Soon the House and shortly thereafter from interest payments on approxi­ written by Sylvester Petro. A review by the Senate will have the opportunity to mately $27 billion of Government securi­ Lyle C. Wilson, of the UPI, which ap­ reestablish at least a part of the free­ ties which it is holding. It pays ex­ peared in the South Haven, Mich., Daily dom to which our people are entitled and penses out of this income, then returns Tribune of Saturday, April 25, last, reads which has, since 1935, been denied them. most of what is left over to the Treasury as follows: How about doing a little homework at the end of the year. But it has for SENATE PUBLISHES BoOK EXPOSING LABOR before appropriating $3% billion to help several years been holding back 10 per­ UNIONS cent of these funds in a surplus account, free people abroad? (By Lyle C. Wilson) for which it has no imaginable need. WASHUfGTON .-Right now WOUld be a This surplus now amounts to more than $1 billion, and this is being left idle and good time for the voters to read a book. BILLS TO REQUIRE OFFICIAL .t\UDIT Recommended reading. for today is a newly uninvested, which is inexcusable in published report on the Senate rackets in­ OF THE FEDERAL RESERVE AND these times when the Government vestigation conducted under the committee _TO TURN OVER $1 BILLION OF should manage with extreme care all of chairmanship of Senator JoHN L. McCLELLAN, CASH DUE THE TREASURY its available funds. In 1958, the Fed's Democrat, of Arkansas. Mr. PATMAN. Mr. Speaker, I ask The title of the book is "Power Un­ income was $742 million·, and its ex­ limited: The Corruption of Union Leader­ unanimous consent to extend my re­ penses $159 million. It returned $524 ship,", by Sylvester Petro published by the marks at this point in the RECORD and million to the Treasury. holding back Ronald Press, New York. The price is $5, include extraneous matter. $59 million in surplus. which will discourage readership among the The SPEAKER. Is there objection to This $1 billion would meet a large voters. There are no pictures a further the request of the gentleman from part of the Treasury's present deficit. handicap to mass circulation. ' 'I'exas? It would reduce the need for issuing There are sins and scandals in this book, There was no objection. more bonds at the present exorbitant in­ however, beyond belief. They are as shock­ Mr. PATMAN. Mr. Speaker, today I terest rates, r~lieve inflationary pres­ ing as the revelations in Confidential and such publications which entrance the lip have introduced two bills which are ·de­ sures, and remove.some of the pressures readers. These are not scandals of the bed­ signed to improve and safeguard the .on interest rates which are already put­ room and the gin mills, but of the under­ handling of Government funds by the ting a tremendous burden on consum­ world jungle in which bad apple labor un­ Federal Reserve System, and to help the ers, farmers, small-business people, and ions captained by strong-arm hoodlums and Treasury out of its present mess by aid- State and local governments. 13734 CONGRESSIONAL RECORD- HOUSE July 20 HEAD OF HARVARD'S ECONOMICS Furthermore, the Federal Reserve's sible for the private banks to acquire DEPARTMENT WRITES ON "THE tight money and exorbitant interest these securities, without any cost what­ FOOLISH DOCTRINE OF AN INDE­ policies are defeating the purpose of the ever to the private banks. The question PENDENT FEDERAL RESERVE," act. These policies are preventing maxi­ now is whether and to what extent the Federal Reserve will repeat this kind of ON THE METCALF AMENDMENT, mum employment; they are preventing maximum production; and they are thing in the future. AND ON THE "PUZZLING" POLICY seriously retarding the growth of produc­ When the vault-cash bill was intro­ IN W ASIDNGTON tive capacity in this country. Actually, duced, the bankers hoped and, judging Mr. PATMAN. Mr. Speaker, I ask I doubt if these policies even produce from all evidence, the Federal Reserve unanimous consent to extend my re­ maximum purchasing power for the big had also hoped, that in passing this bill marks at this point in the RECORD and bankers and moneylenders, which seem Congress would approve, or at least include extraneous matter. to be their purpose. It is entirely pos­ express no objection, to the plan for The SPEAKER. Is there -objection sible that by stagnating the economy, by making a vast reduction in required re­ to the request of the gentleman from keeping 4 million members of the labor serves within a very brief period of time. Texas? force unemployed, and by burdening .(1ny such reduction in required reserves There was no objection. small business, farmers, and consumers within the brief period of time con­ Mr. PATMAN. Mr. Speaker, the with exorbitant interest charges, the templated for making these reductions Washington Post and Times Herald yes­ Federal Reserve policies are actually would necessarily have had either one of terday published a most interesting let­ causing the big bankers and moneylend­ two results. One result would have ter from Dr. Seymour Harris, chairman, been a vast inflation, which both the economics department, Harvard Uni­ ers to make less money. These favored groups would conceivably make more F_ederal Reserve and the bankers made versity. clear was not to be allowed. The other I will insert Dr. Harris's letter in full, money, in the long run, under a high­ use and low-price policy for money, result was for the Federal Reserve to but I would like by way of emphasis to sell, in the open market, about $15 bil­ call particular attention to several of rather than the low-use and high-price policy for money. lion worth of the Federal securities his statements. which it has already purchased, and is THE FED INDEPENDENTLY REGULATING THE PUZZLED AT PASSAGE OF THE VAULT-CASH holding, at the same time it would be ECONOMY OF THE COUNTRY BILL making it possible for the :private banks First, Dr. Harris expresses puzzlement Dr. Harris declares in this letter that to create new money with which to buy at the position which Chairman Martin he does not understand the philosophy these securities. In other words, this has taken on the Metcalf amendment to in Washington, and he points to passage would have been a simple transfer of the administration's bill to remove the of the so-called vault-cash bill, S. 1120, securities from the vaults of the Federal legal ceiling on interest rates. He points as a matter for puzzlement. I can, I Reserve over to the private banks, with­ out that the President does not suggest think, eliminate his puzzlement to a any monetary policy to the Federal Re­ out cost to the banks. serve, and adds what must be obvious: large extent. But in passing the vault-cash bill, the "This country needs a concerted use of The Federal Reserve's endorsement of House did not approve this - plan. all of its economic weapons and agen­ the vault-cash bill and its objection to Rather, there were quite substantial ex­ cies." I might add that the only legal the Metcalf amendment are consistent pression of legislative,intent to the effect authority I can find which the Federal stands. The difference between the that there is to be no transfer of securi­ Reserve System has, if any, for its at­ issues involved are only differences of ~ies from the Fed's portfolio over to the tempts to regulate the economy of this degree--differences as to how much and private banks. country is in the Employment Act of how soon. The central question is The main issue now posed by the 1946. Yet I can find no language in the how the Government's power to create Metcalf amendment goes to the question Employment Act which authorizes the money is to be divided between the Fed­ whether the Federal Reserve is to reduce Federal Reserve to strike out on its own eral Reserve and the private banks when required reserves of the member banks and undertake the job of regulating the the purpose of the new money is to ac­ more gradually. In other words, it goes economy of the country in its own way quire and hold more Federal debt obliga­ to the kind of thing which the Fed did and for its own obJectives. Furthermore, tions. last year when it permitted an increase as the House author of the Employment For example, in the first half of 1958, in the money supply. The question is Act of 1946, I believe I am sufficiently the Federal Reserve reduced required re­ whether, as the Fed permits increases in familiar with its legislative history to serves of the member banks sufficiently the money supply, by any given amount say that there is nothing in this legis­ to allow them to create $10.4 billion of it may decide upon, will it in the process lative history to indicate there was any new money. The banks used this new acquire additional amounts of Govern­ thought at the time the act was passed, money-creating power to acquire addi­ ment securities or will the Fed only that the Federal Reserve would be au­ tional interest-bearing securities of the make it possible for the banks to create thorized to embark on such an under­ Federal Government amounting to $10.4 more money to acquire Government taking. On the contrary, if there had billion. The Federal Reserve could have sec uri ties? been such a thought, the Employment itself acquired that $10.4 billion of .Gov­ THE FED IS THROWING BOOMERANGS AT THE Act would have been written in quite a ernment securities, if it had cared to do WRONG TAllGET different way, for the obvious reason that so. Furthermore, it could have at the A second point of the Metcalf amend­ the Federal Reserve is disrupting, over­ same time maintained precisely the same ment which is touched upon in Dr-. turning, and reversing everything the amount of money and credit in the bank­ Harris' letter goes to the Federal Re­ act provides for and everything it was ing system as it did maintain. In other serve's so-called bills-only policy. intended to accomplish. words, the Federal Reserve could have Long-term interest rates are those that The Employment Act was intended to acquired the $10.4 billion of securities are supposed to determine whether and make sure that there would be a con­ without any inflationary effect whatever, to what extent business will undertake certed arid coordinated use of all of the either at the time or at any time in the expansion programs, whether and to Government's plans, programs, and future. The only difference would have ·what extent families will buy houses, agencies to the purpose of maintaining been that the interest payments on this and_ whether and to what extent the maximum employment, production, and $10.4 billion of Government securities State and local ,governments will build purchasing power. . The Government's would now be going back into the Fed­ schoolhouses, roads, · sewage disposal agencies and programs are not being co­ eral Treasury instead of into bank profits. plants, and other kinds of -State and ·ordinated. The Federal Reserve is run­ : But the Federal Reserve did not prefer .municipal facilities. It is these long ning the country to suit itself. -to do that. It preferred to make it pos- term rates that the Fed must be most 1959 CONGRESSIONAL RECORD- HOUSE 13735 concerned about in its attempts to regu­ to be unaware that its contr<>l of money is s·en.se·, :for we worked clos·ely on problems late these activities. through the. rate of interest and that a di­ of mutual concern to California and the rect attack on long-term rates through pur­ Yet the Fed has arbitrarily decided chases of long-term securities is much more Nation. To his wife and companion of that it·wm raise or lower long-term in­ effective than operations through short-term ,many years, Margaret, and to his son terest rates only by the indirect method issues. Robert and family, I wish to express my of raising or lowering short-term rates, Another puzzling aspect of current policy deepest sympathies. such as those which apply on 3-months _is the recent passage of the cash-vault bill Treasury bills. It has adopted the which makes possible a reduction of reserve policy of buying or selling only Treasury requirements for commercial banks of bil­ CALIFORNIA EDUCATORS OPPOSE bills for purposes of raising· or lowering lions of dollars. The release of these addi­ H.R. 7140 TO LIMIT AND REDUCE interest rates. In order to get at the tional billions of reserves will be inflation­ ary. Yet the administration, very sensitive CERTAIN FEDERAL ASSISTANCE . most distant interest rate, the Federal about the stable dollar, without protest al­ TO SCHOOLS Reserve operates in the most remote and lowed this · bill, proposed by the American indirect way; on short-term interest Bankers Association, to go through. Mr. LEVERING. Mr. Speaker, I ask rates. This means that not only must In order to prevent inflation, the Federal unanim9us consent that the gentleman the Fed raise all interest rates in order Reserve may, as a result of this legislation, from California [Mr. RoOSEVELT] may to hit the target it is shooting at, but have to sell $10 billion of securities. This extend his remarks at this point in the that it has chosen for itself a very awk­ means a transfer of securities from the Fed­ RECORD, and to include extraneous mat­ ward and ineffective weapon for hitting eral Reserve (and profits to the Govern­ ter and certain tables. ment) to the financial institutions, with in­ . The SPEAKER. Is there objection its target. In other words, it is throw­ creased profits for them. And the sale of ing boomerangs around in the economy, to the request of the gentleman from these securities by the Federal Reserve would Ohio? aiming at one target which it is sure to mean a rise of rates sufficient to attract pur­ hit, but which it should not hit, hoping chasers. Hence the problems of the Treasury There was no objection. that its boomerang will then circle would be aggravated. Mr. ROOSEVELT. Mr. Speaker, in around to the rear and hit another tar­ All of this is related to the foolish doctrine recent weeks I have been in receipt of get, which probably should not be hit of an independent Federal Reserve. In these communications expressing opposition to either. So the point is, even if the days of cold war, of need of maximum the position taken by Mr. ArthurS. Flem­ growth, with minimum in:flation, we need ming, Secretary of Health, Education, Federal Reserve is doing the right thing, all our economic weapons and a concerted and I am convinced that it is not doing and Welfare, to amend Public Laws 874 use of them. So long as one agency is free and 815, the objective of which is to limit the right thing, it is going about doing and independent, others will go their way in­ this in the wrong way. dependently, with the result that we shall and reduce Federal assistance to schools DR. HARRIS' LETTER have no policy at all. This failure to inte­ "in federally affected areas. The Secre­ grate policies has been evident for years. tary's views have been embodied in a Dr. Harris' letter as it appeared in the I do not understand how the Federal Re­ pending proposal, H.R. 7140. Washington Post and Times Herald serve can be adamant in its opposition to a The views in opposition come from in­ yesterday, is as follows: congressional directive on monetary policy dividuals directly and intimately con­ To the .EDITOR OF THE WASHINGTON POST. when the right to create money and deter­ cerned with public education in my_State At a closed meeting of the House Ways mine the value thereof resides with the Con- and Means Committee, the Chairman of the gress. of California and warrant consideration Federal Reserve Board apparently was SEYMOUR E. HARRIS, because other States will likewise be ad­ ·adamant in his refusal to accept an amend­ Professor of Economics, versely affected if H.R. 7140 is enacted ment to the interest rate ceiling bill which Harvard University. into law. would require the Federal Reserve to pur­ JULY 14, 1959, A documented case against the pro­ chase U.S. securities of varying maturities. posal has been made by the California Apparently the Secretary of the Treasury, State Department of Education, division now pressed by the Federal Reserve, is also SETH JOHNSON of public school administration. This in opposition. Why are the administration and the Fed­ Mr. CURTIN. Mr. Speaker, I ask statement presents the views of the Cali­ eral Reserve adamant? The latter has ,made unanimous consent that the gentleman fornia State Department of EducatiOn clear its position. Purchases of long-term from· California [Mr. LIPSCOMB] may ex­ and the school districts of California that securities introduce an uncertain element tend his remarks at this point in the are applicants for Federal :financial as­ into the market and hence is annoying to RECORD. sistance under the provisions of Public ·the speculative interests. But is not the · The SPEAKER. Is there objection Laws 874 and 815. smooth· functioning of the economy, for to the request of the gentleman from Mr. Speaker, I insert for the infor­ which the Federal Reserve - is partly re­ mation of my colleagues the above men­ sponsible, more important than removing Pennsylvania? . uncertainties in the Government bond There was no objection. tioned statement along with the letter _market? Mr. LIPSCOMB. Mr. Speaker, under which accompanied it, signed by the Moreover, in recent years the Federal Re­ leave to extend my remarks in the California Superintendent of Public In­ serve has contributed more uncertainty to RECORD, I wish to pay a heartfelt tribute struction, Mr. Roy E. Simpson. the market through other measures than it to Assemblyman Seth Johnson from the LETTER AND STATEMENT OF TH:;:: CALIFORNIA could possibly introduce through purchases 56th Assembly District of California who DEPARTMENT OF EDUCATION of long-term issues. Sudden shifts from passed away suddenly on July 16, 1959. In addition, I wish to insert two letters cheap to dear money recently brought about on the same subject, one from the Ingle­ chaos in the Government bond market• Assemblyman Johnson succeeded me in Persistant outcrys from Washington of the . the California Legislature when I was wood Unified School District and one dangers of inflation, of the inevitable elected to Congress, and served with from the California Association of Pub­ emergence of a galloping inflation from a much distinction. He was not only a lic School Business Officials. creeping inflation contributed greatly to the very able and conscientious legislator and STATE OF CALn'ORNIA, desertion of the .bond market and the floods a credit to his district and State, but DEPARTMENT OF EDUCATION, of cash tnto equity m!J.rkets which have been -also a man who stoou willing to lend a Sacramento, June 16, 1959. so embarrassing to the Treasury. Yet, in 120 helping hand to any individual or group Congressman JAMES ROOSEVELT, years, the rise of prices has averaged little -whenever any task, whether large or House Office BuiZding, more than 1 percent per year and most. of Washington, D.C. this inflation accompanied or followed wars. small, had to be done. I know his ab­ DEAR CoNGREssMAN RoosEvELT: .Attached - I do not understand the philosoph'y in sence will be felt very much by the peo­ ·hereto is a statement of the views of the ·Washington. The President does not dare ple of the 56th assembly district. I will California State ·Department of Education even to -suggest monetary policy to the Fed­ miss Assemblyman Johnson as a close and of the school - districts of -California eral Reserve. :J'he F~deral Reserve seems friend and as a colleague, in a very true which are· applicants for Fedel'al financial CV--866 13736 CONGRESSIONAL RECORD- HOUSE July 20 assistance under the provisions of Public STATEMENT ON H.R. 7140, PROPOSAL TO AMEND The extent of the burden borne by Califor­ Laws 874 and 815 in opposition to the pro­ PuBLIC LAWS 815 AND 874 nia school districts because of Federal owner­ posals of Mr. Arthur S Flemming, Secretary CALIFORNIA STATE DEPARTMENT OF ship and Federal activity is growing rather of Health, Education, and Welfare, to amend EDUCATION, DIVISION OF PUBLIC than diminishing. The increase in federally Public Laws 874 and 815, introduced into the ScHOOL ADMINISTRATION, connected pupils is greater than the increase House of Representatives by Mr. KEARNS as Sacramento, Calif., June 15, 1959. in total pupils. Table 2 shows that the in­ H.R. 7140. This statement presents the views of the crease in the average daily attendance of fed­ These views, data, and information are California State Department of Education erally connected pupils from 195Q-51 through being transmitted so that you may have and the school districts of California that 1957-58 was 107.1 percent, while the increase knowledge of how the proposal will affect the are applicants for Federal financial assist­ in total average daily attendance was only California school districts which receive Fed­ ance under the provisions of Public Laws 67.3 percent. It is likely that in the first eral support from the two statutes. We re­ 874 and 815 in opposition to the proposal of year of the program all the federally con­ gret that time has not permitted the com­ Mr. ArthurS. Flemming, Secretary of Health, nected pupils were not identified, but the pilation of data for each of the 444 applicant Education, and Welfare, to amend Public data show that between 1952-53 and 1957-58 districts in California. We have notified all Laws 874 and 815, introduced into Congress the average daily attendance of federally applicant districts of the provisions of H.R. by Mr. KEARNS as H.R. 7140. connected pupils increased 47.7 percent and 7140, and suggested the appropriateness of The proposals made by Mr. Flemming are the total average daily attendance increased each informing his Congressman of the ef­ unrealistic and fail to recognize the contin­ 43.8 percent: fect of them upon his school district. uing and growing burden placed upon school TABLE 2.-Growth of average daily attendance It is our opinion, based upon the data districts in California. through ownership of of federally connected pupils and total available, that if the proposal is adopted, the property by and activities of the Federal statewide average daily attendance, 1950- educational program in many California Government. They depart sharply from the 51 through 1957-58 school districts will be seriously impaired. sound principles conceived by Congress and It will provide for a reduction in Federal written into the original enactment of Pub­ funds as high as 60 percent of allocations lic Laws 874 and 815. If adopted by Con­ Federally connected pupils Percent I-----T------Iincrease under present law in a number of districts, as gress, the proposal would result in the seri­ Fiscal,year total high as 50 percent in many districts, and ous impairment of the educational program ADA Increase Percent ADA substantial reductions in the remainder. in many California school districts. increase Ultimate reductions will reach in one case as The available data indicate that there is ------1------high as 25 percent of the total current ex­ an increasing, rather than a decreasing, of 195D-5L ______102,049 Federal obligation to support education in 1951-52 ______--- 136, 146 ---34;697- ---33X ----8~49 pense of the district. We are especially con­ 1952-53 ______-- cerned because these reductions will affect California. Acquisition of Federal property 143,076 6, 930 5. 1 7. 25 1953-54 ______156,337 13, 261 9. 3 7. 16 the educational programs of districts in is increasing and pupils connected with such 1954-55 ______157,286 949 6.1 7. 50 which 51 percent of the total number of property are increasing at a greater rate than 1955-56 ______- 164,432 7,146 4.5 7. 52 pupils in California are enrolled, for that increases in total pupil enrollment. 1956-57------203,863 39, 431 24. 0 7. 93 1957-58 _____ ------211,337 7, 747 3. 7 7. 56 percentage attend school in districts receiv­ THE EXTENT OF FEDERAL PROPERTY IN ing support under Public Laws 874 and 815. CALIFORNIA TotaL _____ ------109, 288 107. 1 67. 3 The Department of Health, Education, and The Department of Health, Education, Welfare has estimated the proposal will re­ and Welfare, Office of Education, reports that NoTE.-Percent increase 1952-53 through 1957-58: duce entitlements of California school dis­ eligible Federal properties claimed by Cali­ federally connected pupils, 47.7 percent; total ADA, tricts under Public Law 874 from $25.7 ron­ fornia school districts number 604 and con­ 43.8 percent. lion to $18.4 million. This is a decrease of stitute 15,914,259 acres. These properties $7.3 million, or 28 percent. The reduction The pupils in California connected to fed­ are located in 46 of the State's 58 counties erally owned property and eligible under sec­ under Public Law 815 is estimated to be from ·and do not constitute the total of Federal $14.9 to $9.9 million. This is a reduction of tion 3 of Public Law 874 are found in 444 of holdings in the State. Authoritative surveys California's 1,761 school districts. These $5 million, or 33 percent of entitlement un­ indicate that approximately 48 percent of 444 school districts are located in 39 of the der the present law. These estimates do not the area of California is owned by the Fed­ State's 58 counties. The average daily at­ include losses that will result from the pro­ eral Government. The Department of De­ tendance of the federally connected pupils posed redefinition of Federal property which fense alone has acquired more than 5 Ya mil­ totals 219,425 and may be identified in the will be substantial in many districts. lion acres of property in California. The following way: The proposals are inconsistent with the large extent to which the Federal Govern­ ment has acquired property in California 1. Pupils residing on Federal prop­ policy and philosophy embodied by Con­ erty with parent employed on gress in the present law. They are unrealis­ upon which persons live or are employed ts Federal property ______21,334 certainly an indication of the extent of the tic 1f the intent of Congress is to meet the 2. Pupils residing on Federal prop- Federal obligation to provide support for obligation which Congress has recognized under the provisions of Public Laws 874 and erty with parent not employed school expenses in districts burdened by en­ 815. on Federal property______3, 175 rollment connected with Federal property. 3. Pupils not residing on Federal While the present law is inadequate in some PUPILS IN CALIFORNIA IN ATTENDANCE BECAUSE property with parent employed respects, it is based upon sound principles OF FEDERAL OWNERSHIP AND FEDERAL on Federal propertY------194, 196 and good policy. It is our belief that it ACTIVITY should not be changed in the manner pro­ In 1957-58, 17¥2 percent of all pupils in Total------219,245 the Nation eligible for payments under Public posed. We hope that you will lend your The extent to which pupils in California assistance to defeat the proposals contained Law 874 attended school in California, and about 17 percent of the total payments un­ are dependent upon the continuance of Fed­ in H.R. 7140. der the act were made to California school eral support is demonstrated by the fact We shall be happy to provide additional districts. Table 1 shows the average daily that 51 percent of the total average daily at­ information or answer questions you may attendance of federally connected pupils and tendance of all California school districts at­ have on this matter and offer our assistance net entitlements under section 3 of Public tend schools that now receive support under at any time you may request our help. Law 874 for the State of California and na­ the provisions of Public Law 874. In the ap­ Sincerely yours, tional totals for the fiscal years 195Q-51 plicant school districts in California eligible RoY E. SIMPSON. through 1957-58: for payments under Public Law 874 there was a to~al in 1957-58 of 1,507,155 units of TABLE 1.-Average daily attendance of federally connected pupils and net entitlements average daily attendance which equalled 51 under section 3, for the State of California compared with the national total for the fiscal percent of the total average daily attend­ years 1950-51 through 1957-58 ance of that year of 2,958,156. Appendix table A provides the data summarized in this paragraph. Average dally attendance Net entitlements In the appendix to this statement further Fiscal year evidence is presented relative to the depend­ National California Percent National California Percent ence of California school districts upon the assistance under Public Law 874 that has been provided by Congress. Appendix table 195D-51 ____ ------479,779 102,049 21.27 $23, 847, 955. 46 $6, 134, 021. 20 25.72 B shows the California school districts which 1951-52 ____ ------667,589 136,146 20.39 39, 133, 259. 10 8, 996, 466. 75 22.99 1952-53_ ------788,070 143,076 18.16 49, 077, 143. 56 10, 228, 750. 61 20. 84 received in excess of $100,000 under the pro­ 1953-54 ____ ------866,210 156,337 18. 05 63, 955, 693. 47 12, 694, 708. 20 19.85 visions of Public Law 874 in 1957-58. That lll!i4--55_ ------878,799 157,286 17.90 67, 012, 059. 00 13, 473, 240. ()() 20.11 amount of assistance is significant regard­ 11!55-56 ____ ------943,979 164,432 17.42 76, 740, 599. 00 14,669,811.00 19.12 1956--57------1, 170,946 203,863 17.41 105, 895, 195. 00 18, 289, 853. 00 17.27 less of the size or wealth of the district. 1957-58_ ------1,211,204 211,337 17.45 116, 834, 241. 00 20, 158, 819. 00 17.25 Appendix table C shows the percent that Federal assistance under Public Law 874 1s 1959 CONGRESSIONAL RECORO- HOUSE 13737 of the total current expense in selected Table 4 shows the effect of the proposal upon school districts in the San Francisco area: school districts in California in 1957-58. It should be noted that these percentages range TABLE 4.-Effect of proposed amendments to Public Law 871,. on school districts in the from 43.87 percent in the relatively small San Francisco area, 1959-60 ·district of Crystal Union in Solano County downward to about 2 percent in the rela­ School district Present Proposed Reduction Percent tively large urban district of Oakland. entitlement entitlement reduction EFFECTS OF THE PROPOSALS IN H.R. 7140 ON CALIFORNIA SCHOOL DISTRICTS San Francisco Unified------$1,049, 150 $869,499 $179,701 17.1 The proposals of Mr. Flemming are em­ Sout h San F rancisco Unified------68, 748 45,351 23, 397 34.0 B erkeley Unifi ed ------203, 357 124,096 79, 261 39. o bodied in H.R. 7140, introduced into the Oakland Unified------748,087 466, 701 281,386 37.6 Bouse of Representatives by Mr. KEARNS. A Alameda Unified ------465, 567 355, 179 110,388 23. 7 Albany Unified------23, 397 12,162 11, 235 48.0 bill with the same provisions has been in­ J efferson Union High ------44, 482 22,416 .22, 066 49.6 troduced into the Senate by Senator GOLD­ San R afael City High------61,119 50,611 10, 508 17.2 WATER. These bills were intr~uced about San Mateo Union H igh_ ------60, 593 31, 523 29,070 48.0 San Mateo CitY------54, 385 27, 192 Zl, 193 50.0 the middle of May. Time has not afforded J efferson_------41,903 21 , 219 20, 684 49.4 a full evaluation of their effects upon Cali­ Sausalito______32,452 Zl, 281 5,171 15.9 fornia school districts. The total impact of San Bruno P ark------. 26,390 13, 908 12,4.82 47.3 W alnut Creek------22, 556 11, Zl8 11. 278 50.0 the proposal is not known. It is certain that Mill ValleY------24, 072 13, 908 10,164 42.2 reductions in support for education will be TotaL •• ______1------2, 926,258 -1 ------2, 092,324 I------I------833,934 28. 5 applicable to every eligible school district in the State. These reductions will average statewide about 30 percent of the entitle­ Table 5 shows the effect of the proposals attendance of the district, (2) the estimated ments under present law. They will be as on 30 California school districts selected at entitlement under the present law and un­ high as 50 percent in the majority of school random. The data do not reflect the losses der the proposed law, (3) the amount and districts in California, excluding the reduc­ in Federal support due to the proposed percent of loss of Federal funds, and (4) the tions that will result from the redefinition change in definition of Federal property. tax rate required to offset loss from local of Federal property. The table shows (1) the total average daily taxes:

TABLE 5.-Effect of H.R. 711,.0 on selected California school districts

Estimated entitle- Loss in Federal Tax rate Estimated entitle- Loss in Federal Tax rate m ent (1958-59) funds required ment (1958-59) funds required County and district Total to offset County and district Total to offset ADA loss from ADA loss from Present Proposed Amount Per- local Present Proposed Amount Per- local law law cent taxes law law cent taxes ------Alameda: Sacramento: Oakland City Unified_ 62,000 $669, 590 $427, 500 $242,090 36. 15 $0.0406 Arcade ______------6,232 $129,926 $91,953 $37,973 29.23 $0.1201 San Lorenzo ______13,594 159,962 84, 396 75,566 47.24 .1505 Arden-Carmichael Contra Costa: Union ___------10,270 203,676 101,838 101,838 50.00 .2042 Richmond City______16,252 107,279 62,280 44,999 41.95 .0241 Rio Linda Union ______5, 708 288,244 229,234 59,010 20.50 .3399 Richmond Union High_ 8, 758 85,474 48,116 37,358 43.71 .0161 Sacramento City Uni- Kern: tied ______------33,584 387,070 197,718 189,352 48. 92 .0679 Indian Wells· Valley San Bernardino: 1,002 37, 567 18,697 18,870 50.23 .3741 Barstow Union ______3,456 144,208 118,119 26,089 18.09 .1373 MojaveUnion Unified_------______921 35,625 23,304 12, 321 34. 59 .1Zl5 SanHi Bghe _rnardino______City Muroc Unified______2,117 260,282 2-50,495 9, 787 3. 76 .0812 7,669 224,412 170,154 54,258 24.18 .0310 South Kern County San Diego: · Union_------688 34, 104 17,312 16,792 49.24 .2938 Oceanside-Libby Los Angeles: Union_------4, 264 299,596 228, Zl6 71,320 23.81 .2569 Antelope Valley Joint San Diego Unified _____ 91,934 2. 571, 663 2,182, 525 389,138 15.13 .0542 Unified High ______3, 956 258, 942 166,792 99,150 35. 59 .0583 Sweetwater Union Lancaster------5, 633 2-82,358 141,179 141, 179 50.00 .2541 High ______------5,673 223,752 135,251 88,501 39.55 .0757 Palmdale ____ ------3,432 162,218 93,356 68, 862 57.55 .1492 San Francisco: San Torrance Unified ______23,600 251,576 114,411 137, 165 45.48 .0757 Francisco City Unified_ 87,206 ~.221 731,483 156,738 17.65 .0115 Marin: San Jose ______1, 280 134,427 130,591 3,836 2. 85 .0894 San Joaquin: Stockton Merced: Atwater Union_ 2,435 173,120 155,810 17,310 10. 00 .1618 City Unified ______29,744 183,828 119,001 64,8Zl 35. Zl .0383 Orange: Garden Grove __ 13,230 142,343 71,744 70,599 49.60 .1074 Solano: Vallejo City Riverside: Unified.------15,601 700,943 564,781 136,162 19.43 .2255 Midland______1,800 161,781 149,214 12, 567 7. 77 .1306 Riverside City------13,250 239,511 120,266 119,245 49.79 .0908 Riverside City High ___ 6,509 181,752 137,788 43,964 24.19 .0221

Data tabulated and computed from "questionnaire" submitted by certain districts. The proposals of Mr. Flemming are based local educational agencies in the areas in they reside on tax-exempt Federal property upon the fact that payments are made un­ which such activities are carried on, the Con­ or because their parents are employed on der Public Laws 874 and 815 on account of gress hereby declares it to be the policy of such property, do not in effect pay their own pupils who are connected with Federal prop­ the United States to provide financial as­ way. The underlying philosophy of this sec­ erty that is located outside the district. He sistance • • • for those local educational tion is that the Federal Government, as a agencies upon which the United States has property owner, should pay to each local has stated: educational agency which furnishes educa­ "I can find no justification whatsoever tor placed financial burdens by reason ot the tion to children residing on or whose parents reimbursing all districts at the same level, fact that- are employed on Federal property an amount irrespective of_ where Federal property is lo­ • • • • • per child roughly equivalent to the amount cated. The payment-in-lieu-of-tax princi­ "(2) such agencies provide education for per child which other property owners in ple simply cannot be applied equally-and children residing on Federal property; or comparable communities pay toward the cost at the same time, equitably-to all situa­ "(3) such agencies provide education for of educating children. Under this principle, tions. children whose parents are employed on Fed­ Federal payments to school districts are more "No matter who owns it, property located eral property; or." closely related to the 'burden imposed' than outside a. school district cannot be taxed by • • • • to the value of the Federal property. The that district." • committee believes that this approach will The committee report accompanying H.R. be more equitable both to the Federal Gov­ This concept is entirely foreign to the 7940 (Public Law 874), 81st Congress, 2d ernment and to the local school districts basic philosophy embodied in the two stat­ session, Report No. 2287, states clearly ·the involved." utes. Section 1 of Public Law 874 itself policy and philosophy of the statute in the The fact that Federal property may or may states as a declaration of policy in part: following: not be located in a school district 1s not "SECTION 1. In recognition of the responsi­ "SEc. 3 of the bill seeks to compensate pertinent. The burden to the school district bility of the United States for the impact school districts in reasonable amounts for is the enrollment in the schools of the dis­ which certain Federal activities have on the the cost of educating children who, because trict of pupils drawn to the district by the 13738 CONGRESSIONAL RECORD- HOUSE July 20

Federal property. . The location of Federal REDEFINITION OF FEDERAL PROPERTY Under law, .taxes received by a loc.al property in a school district is pertinent only Mr. Flemming has proposed that Federal agency derived from use of, or interest in, if the owner of such property pays taxes. property be redefined for the purposes of Federal property are deducted from the pay­ This is not the case. Payments under Public the two statutes, excluding as Federal prop­ .ments made to that local agency. There Laws 874 and 815 are not payments in lieu erty that from which a State or local agency are no duplicate payments made except in of taxes. They are payments in support of may derive tax revenues on substantially the rare cases where a pupil connected with necessary expenses of education and are re­ its full value by a tax imposed on the prop­ a property so taxed may attend school in lated to the burden imposed upon school dis­ erty or with respect to the use of or interest another district, and this duplication exists tricts by the presence of federally connected in the property. This proposal is based, ac­ only when the entitlement of the local pupils rather than to any valuation placed cording to Mr. Flemming, on the fact that agency is exceeded by the taxes derived. The upon the Federal property. the U.S. Supreme Court has ruled the Fed­ eral properties which have been leased to present provision is equitable and fair to California school districts would receive private firms or individuals can be taxed by both the local agency and the Federal Gov­ far more adequate support if the Federal State and local governments for the full ernment and should be continued. To adopt Government were to assume a true position valuation of the properties just as though ·the proposal will seriously harm the educa­ as a local taxpayer and pay taxes on the they were privately owned. The statewide tional program· in many federally burdened actual valuation of Federal property. In such effect of this proposal cannot be computed California districts. a roll the obligation of the Federal Gov­ with data now available. Its effects will be · Although the Supreme Court decision has ernment would be multiplied many times. substantial and reductions in support will permitted the taxing of leased Federal prop­ If such is the desire of the Federal Govern­ fall largely upon districts where the Federal erty at full valuation "just as though they ment, laws should be enacted placing it in obligation is greatest. were privately owned," California and other the role of a real taxpayer. However, to say The proposal is further confusing because States cannot by law so tax, and there is that support for the education of federally of its language. How are "tax revenues on not time prior to the 1959-60 year to con­ substantially its full value" determined? connected pupils should be reduced below Are they not dependent upon taxing any sider and pass such legislation. The pro­ the present inadequate level because the Fed­ assessed valuation placed upon the prop­ posal is inconsiderate of such conditions and eral property is not located in the district is erty, its use, or lease-hold interest in it? if adopted will result in the withdrawal of meaningless unless the owner pays taxes on The proposal would seem to exclude as Fed­ Federal support with no possibility of re­ that property and no reference to the in lieu eral property under the statutes any upon covery from any source of the funds with­ tax payment principle can give it meaning. which any kind of tax may be levied. drawn.

APPENDIX TABLE A.-Summary by counties of average daily attendance reported by 444 applicants under Public Law 874 in col. 6 of table 3, p. 3, of the final report form RSF-3 (1957-58)

Pupils Pupils Pupils Pupils Pupils Pupils residing residing whose Total- residing residing whose Total- on Federal on Federal parents are all pupils 1 on Federal on Federal parents are all pupils' Num- property- property- employed Total (exclusive Num- property- property- employed Total (exclusive County ber of parent parent not on Federal sec. 3 of pupils County ber of parent parent not on Federal sec. 3 of pupils appli- employed employed property- pupils for whom appli- employed employed property- pupils for whom cants on Federal on Federal not residing (line 4) tuition is cants on Federal on Federal not residing (line 4) tuition is property property on Federal received) property property on Federal received) (line 1) (line 2) property (line 8) (line 1) (line 2) property (line 8) (line 3) (line 3)

Alameda ______25 826 19,936 20,762 163,145 Sacramento ______29 803 1 17; 478 18,282 92,768 Contra Costa ____ ------434" Fresno ______18 202 5, 692 6, .328 85,360 San Bernardino.• 32 ·1, 512 30 11,918 13;460 93,397 1 10 8 18 91 San Diego ______41 4, 761 . 313 41,400 46,474 174,120 Humboldt______3 253 ------i4o~ 111 504 1, 343 San·Francisco•... 1 ·1, 224 200 6,296 7, 720 85,765 ImperiaL ______San Joaquin ____ _ Inyo ______4 311 84 323 718 5,345 8 36 ------2, 703 2, 739 36,938 3 82 97 7 564 571 7,189 Kern ______30 209 1, 594 San Luis Obispo. 10 ------Kings ______6 3,989 37 1,248 5, 274 22,232 San Mateo ______12 137 ------3,648 3, 785 51,408 Lake ______1 31 . 31 206 Santa Barbara___ 8 126 82 1,077 1, 285 8,339 3 ------14" Santa Clara______Lassen ______------530- 34 48 654 11 117 ------3,334 3,451 49,726 3 260 790 1,675 Shasta.------1 31 ------108 139 1,154 Los Angeles ______44 ------i;4o7- 32,382 33,789 308,755 Solano ______13 1, 702 254 9, 288 . 11,244 24,727 Marin .. ------12 ------660 - 1 2, 710 3,371 21,479 Sonoma______15 75 16 857 948 8,530 Mendocino. __ --- 5 92 76 132 300 4, 236 Trinity_------3 133 12 270 415 1,129 Merced ______6 178 2,212 2,390 11,573 Tulare ______2 34 31 65 512 Modoc______------·- Tuolumne ______------9- Mono ______1 15 7 ------22 46 1 ------354" 2 11 28 1 15 15 68 Ventura.------24 5,659 6,013 34,040 13 ------Yolo ______------419 419 Monterey------1,840 22 5,299 7,161 29.248 Yuba ______3 ------5,082 Napa. ------10 ------·------2,308 2,"308 11,094 3 ------140 140 2,386 Orange ______31 559 ------· 10,241 10,800 108,568 Placer------14 ------1,000 1,000 10,002 TotaL ••••• 444 21,334 3, 715 194,196 219,245 1, 507, 155 Riverside ______23 ------720-- - 428 5,098 6, 246 43,212

1 In addition a total of 730 average daily attendance was reported by 2 applicants, Valle Lindo of Los Angeles County and De Luz of San Diego County, under sec. 2 of the act. _

.APPENDIX TABLE B.--California school dis­ APPENDIX TABLE B.-California school dis­ APPENDIX TABLE B.-California school dis­ tricts which received in excess of $100,000 tricts which received in excess of $100,000 tricts which received in excess of $100,000 from Public Law 874 in 1957-58 from Public Law 874 in 1957-58-con. from Public Law 874 in 1957-58-Gon.

County and school district Amount County and school district Amount County and school district Amount

Alameda: San Diego: Alameda City Unified ______Monterey: Cajon Valley Union ______Berkeley City Unified ______$332,507 Monterey City __ ------$435,926 $108,205 154,967 Monterey Union High ______107,534 Chula Vista City------291,031 Livermore. ___ .. ___ . ______-----______114-,508 Orange: Coronado Unified ______188,068 Oakland City Unified_ ------433,027 Garden Grove_------107,477 Fallbrook Union ______138,090 San Lorenzo.------128,165 Santa Ana City------134,064 Grossmont Union High ______131,484 Contra Costa: Riverside: La Mesa-Spring Valley------118,467 Mount Diablo City Unified •• ______192,633 124,365 NationaL. ______. ______------146,867 Midland •.• ____ ------_------____ _ Oceanside-Libby Union ______Richmond City------126,384 Riverside City------189,004 235,467 Kern: Riverside City High ______101,166 San Diego Unified ______2,267,947 KernChina Joint Lake Union Joint------High ______349,460 Sacramento: South Bay Union------­ 148,610 167,735 Areade..••• ------112,164 Sweetwater Union High.------199,593 l'v!uroe Unified------192,826 Arden-Carmiehael Union ______167,842 San Francisco: San Francisco City Unified __ _ 427,735 Los Angeles: Folsom Joint Unified ______195,025 San Juaquin: Stockton City Unified ______154,001 Antelope Valley Joint Union High ••••••• 200,468 Grant Union High ______160,131 Solano: Lancaster______.------217,472 North SacramentO------­ 122,266 Crystal Union.------153,325 Long Beach Unified ••••••••••••••••••••• 775,822 227,827 Fairfield._ •. ______------110,063 RioSacramento Linda Union------City Unified ______Palmdale.• ------147,186 San Juan Union High______210,808 Vallejo City Unified------­ 570,346 Torrance Unified._------­ 204,223 178,601 Ventura: Marin: San Jose.------104,649 Ban Bernardino: Hueneme.••••••••••••••••••••••••••••••• 133,130 Merced: Atwa~er Union·------122,993 Barstow Union._---················----- 120,973 Omard. ------·······-- 106,831 San Bernardino City._ .. ------305,455 San Bernardino City High ______166,581 1959 CONGRESSIONAL RECORD- HOUSE 13739

APPENDIX TABLE C.-Cmnparison of assistance under Public Law 871,. and total current expense in selected California school districts; 1957-58

Assistance Total Percent o1 Assistance Total Percent of County and school district under Public current expense froip. County and school district under Public current expense from Law 874, expense, · Federal Law874, expense, Federal 1957-S!l 1957-58 assistance 1957-58 1957-58 ass~stance

Alameda· Sacramento: Alameda City Unified ______$332, 50i $4,019,501 8. 27 $195,025 FolsomRio Linda Joint Union Unified ______•• ------$917,528 21.26 Oakland City Unified ______433,027 23,628,207 1.83 227,827 1, 367,623 16.66 Contra Costa: Richmond City------126,384 b, 232,453 2.42 San Bernardino: Morongo ______74,557 429,837 17.35 Kern: San Diego: China Lake Joint. ______349,460 f>76, 576 39.87 Coronado Unified ______Fallbrook Union ______188,068 1,055, 296 17.82 Muroc Unified .. ------192, 826 765,909 25.18 138,090 627,482 22.01 Southern Kern County Union ______24,729 222, 869 11.10 Fallbrook Union High ______61,112 349,910 17.47 Lassen: Herlong_------75,352 189,751 39.71 Oceanside-Libby Union ______235,467 1, 294,291 18. 19 Los Angeles: San Diego Unified ______2, 267,947 32,052,276 7.08 Long Beach Unified ______775,822 27,506,560 2. 82 Solano: Benicia City Unified ______Torrance Unified.------204,223 7, 083,472 2. 88 54,875 442,130 12.41 Marin: Sausalito._------28,041 450,425 6. 23 Crystal Union __ ------153,325 349,470 43.87 Monterey: Monterey City------435,926 2, 681,346 16.26 Vallejo City Unified ______570,346 5, 401,506 10.56 Napa: Shurtleff __ ------_----- 5, 779 90,203 n. 41 Ventura: Riverside: Midland.------124,365 440,422 28.24 Hueneme ______133,130 798,477 16.67 Oxnard. __~ ------_ 106,831 1, 577,355 6. 77

LE'l"l'ER FROM INGLEWOOD UNIFIED SCHOOL and good policy, and it is our belief it should and "Schelomo" are widely admired and his DISTRICT not be changed in the manner proposed. sacred service and "Concerto Grosso" are fre­ INGLEWOOD UNIFIED SCHOOL DISTRICT, We hope you will lend your assistance to quently performed. Inglewood, Calif., July 2,1959. defeat the proposals contained in H.R. 7140. The Paris Opera Comique accepted "Mac­ The Honorable JAMES RooSEVELT, Yours very truly, beth" and presented it November 30, 1910. U.S. House of Representatives, STANLEY W. MOORE, Early in 1916, Mr. Bloch came to America as Washington, D.C. Secretary. conductor for the touring dancer, Maud DEAR MR. ROOSEVELT: We have received the Allen. That enterprise went bankrupt, and statement by ArthurS. Flemming, Secretary ERNEST BLOCH he was stranded in a strange country whose of Health, Education, and Welfare, concern­ language he did not know. He nearly ing amendments to Public Law 874 and Pub­ Mr. LEVERING. Mr. Speaker, I ask starved for a few months but finally was ap­ lic Law 815. We believe Mr. Flemming's posi­ unanimous consent that the gentle­ pointed teacher of composition at David tion to be unrealistic as it fails to recognize woman from Oregon [Mrs. GREEN] may -Mannes School of Music in New York. the continuing and growing burden placed The turning point in Mr. Bloch's career extend her remarks at this point in the came when he won the $1,000 Elizabeth upon school districts in this area through RECORD in two instances. Government ownership of property and by Sprague Coolidge prize in an international the various activities of the Federal Govern­ The SPEAKER. Is there objection competition in 1919. He founded the Cleve­ land Institute of Music in 1920 with 6 stu­ ment. to the request of the gentleman from This school district is now educating a Ohio? dents and directed it until1925 when he had more than 700 students. He became an large number of pupils whose parents have There was no objection. Mrs. GREEN of Oregon. Mr. Speaker, American citizen in 1924. been attracted by opportunities for employ­ For the next 5 years he was director of the ment which are directly attributable to the the people of the_State of Oregon were San Francisco Conservatory. He wrote his activities of the Federal Government. recently saddened, as were lovers of the epic rhapsody "America" and submitted it We understand the proposals of Mr. Flem­ best in music around the world, by the anonymously in the Musical America contest ming are included in H.R. 7140. The impact death of one of Oregon's most distin­ in 1928. It was the unanimous choice of upon this school district which this proposal guished citizens, and one of the world's five judges from 93 scores. He was awarded would make has not been carefully analyzed authentically great musicians, Ernest $3,000. ~ut we are of the opinion that the financial 'An endowment by a San Francisco music loss would be sufficient to cause a hardship Bloch. Mr. Bloch's contributions to 20th century music will, without ques­ lover enabled Mr. Bloch to devote 10 years upon us. to composing, and he returned to Geneva and We are of the opinion that the Federal tion, be a living part of the world's cul­ spent the next decade in Europe. He lived Government does have a responsibility in tural equipment when the issues which in Italy, France, and Sweden before return­ this matter and we strongly urge that there plague our front pages today have been ing to the United States in 1939. be no reduction in the funds now provided forgotten by all but historical pedants. From then on he was associated with the under Public Law 874 and Public Law 815. Ernest Bloch is gone. But truly, University of California as professor of Sincerely yours, Ernest Bloch can never leave our midst music. From 1941 on his winters were spent H. T. SANTEE, in Agate Beach. Superintendent of Schools. as long as men have souls which can be touched by great music. Among his other notable works were "Avodath Hakodesh," the first complete per­ LETTER FROM CALIFORNIA ASSOCIATION OF PUELIC Under unanimous consent, I include formance of the Jewish service, "Three Jew­ SCHOOL BUSINESS OFFICIALS in the RECORD an editorial from the ish Poems," and "Suite Symphonique." CALIFORNIA ASSOCIATION OF Washington Post and an article from The work, "America," which he derived PuBLIC SCHOOL BUSINESS OFFICIALS, the Washington Post: from folksongs, was dedicated to Abraham Del Paso Heights, Calif .• June 30, 1959. ERNEST BLOCH, COMPOSER, DIES Lincoln and Walt Whitman. Hon. JAMES RoosEVELT, He was the only American to be voted into ~ORTLAND, Oreg., July 15.-Composer and House of Representatives, the Academy of St. Cecelia in Italy and the Washington, D.C. conductor Ernest Bloch, 79, died today in a hospital where he had been under treatment only composer to be awarded the New York MY DEAR CoNGRESSMAN: The California As­ Music Critics' Award twice. sociation of Public School Business Officials, for cancer. Mr. Bloch, whose works ranged from the Survivors include a son, Ivan Bloch, Port­ at its board of directors meeting of May 29, land industrial consultant; and two daugh­ 1959, officially went on record opposing any tone poem "America" to symphonies and the opera "Macbeth," had been a resident of ters, Mrs. Paul Smith, New York City, and amendments to Public Law 874 and Public Agate Beach on the Oregon coast since 1940. Mrs. Stephen P. Dimitroff, Mill Valley, Calif. Law815. He entered a hospital here July 7. Because of the tremendous growth in Cali­ The composer-conductor was born in ERNEST BLOCH fornia due to Federal installations and ac­ Geneva, Switzerland, July 24, 1880. He tivities, it is our feeling Federal assistance is The death of Ernest Bloch reminds us studied violin under the virtuoso, Eugene again how rich in song this era has been, justified in defraying the resultant increase Ysaye, but gave up the idea of a concert whatever its failings in so many other re­ in educational expense. If these amend­ career when he found violin practice took spects. No century which has seen such ments are adopted the reduction in Federal too much time from his composing. major figures as Stravinsky, Bartok, Proko­ funds will be as high as 60 percent in some But that technique he developed in study­ fiev, Schoenberg, Strauss, and Sibelius--to instances. Such a reduction will have seri­ ing the violin served him well in composing name a few-need apologize for the quality ous effects on the districts concerned. for strings. "Nigun" from his "Baal Shem" of its music. Mr. Bloch, who died on The association feels such a proposal is in­ suite is in the repertory of nearly every con­ Wednesday at 79, was not only an important consistent with the policy and philosophy of cert violinist. He won renown -for · his composer, but a· creator whose works re­ the present law. While it is inadequate in "String Quartet No. 2" and his ;,Quintet for flected many of the prevailing musical cur­ some respects, it is based on sound principles Piano and Strings." His Israel symphony rents of his time. Although he remained 13740 CONGRESSIONAL RECORD - -HOUSE July 2'0

aloof .from musical fads and cliques, his In the House, MEYER has followed these his remarks at tfiis point in. the RECORD -works based on Jewish liturgy sprang from same unorthodox lines. He is the lonely-rep­ and to include an article. the same quest for ethnic and nationalistic resentative of an American tradition, and The SPEAKER. Is there obj-ection melody as did the Hungarian music of particularly a New England tradition, that Bartok. goes a long way back-protest, nonconform­ to the request of the gentleman from Like Sibelius and Strauss, Ernest Bloch ity, the Tight of the individual and his con­ Ohio? could compose works of post-Wagnerian science over that of all collective and corpo­ There was no objection. lushness, such as "Schelomo," his much­ rate rights, including the State. It is in the Mr. PORTER. .Mr. Speaker, the days admired rhapsody for cello and orchestra. tradition of Thoreau who went to jail for remaining for Dictator Trujillo are few. His "Concerto Grosso" suggested the same his belief in the abolition of slavery. His Ambassador to Ecuador and one of revived interest in 18th century music that The other day Representative MEYER came his U.N. representatives recently de­ animates so much of Stravinsky's work. He into the national news again when his serted him and issued loud denuncia­ was at home with the dissonant and experi­ younger son, Karl, was arrested and sen­ mental, and his pupils included such major tenced to 6 months in a Federal jail for a tions of Trujillo as a "murderer." contemporary talents as Roger Sessions, pacifist demonstration against an Omaha, Now Trujillo's Minister of Labor, Ra­ Randall Thompson, and Douglas Moore. Nebr., missile base site. Karl had previously mon Marrero Aristy, has been killed un­ The Swiss-born composer sperit much of his been arrested three times in New York for der circumstances which, as in the cases life here, and although only the future can protesting a compulsory civil defense law. of Gerry Murphy and Jesus de Galindez. take full measure of his contribution, this Representative MEYER talks about this in shriek of murder. Under unanimous country was assuredly the richer for .his the same calm, untroubled voice with which consent I am inc1uding (followmg these presence and the world will be poorer for he discusses his convictions. He says that his loss. remarks) the text of a news story in he is not himself a pacifist, although he the New York Times, July 20, by Tad registered as a conscientious objector when Szulc. STAID VERMONT'S VOICE OF the draft was initiated just prior to World War II. Karl believes in direct action while No one need invade the Dominican DISSENT his father thinks that he can be more effec­ Republic. The apples of a new and Mrs. GREEN of Oregon. Mr. Speaker, tive in putting over his own ideas through better regime are ripe. No need to pick it has been my privilege to serve in this legislation and public opinion. them nor to shake the tree. The winds liouse for 5 years. In the course of that Of German origin, the Meyer family came are blowing and presently the apples to this country after fleeing from the Rhine­ will fall-before the end of the year, I service, I have met a great many fellow land in 1848, the year of the abortive Euro­ Members for whom I have held growing pean revolt against kings and military dicta­ predict. respect. I have seen courage, integrity tors. With a deeply religious strain in Trujillo's lieutenants are beginning to and steadfastness in the face of obstacles the family, Representative MEYER says he turn on him, not because they have just demonstrated by a great many of my had thought that Karl, because of his strong discovered the fact that he is a mur­ colleagues. But I do want to say that I pacifist views, would be a Quaker. Instead, derer, but because he is a murderer whose have never had the privilege of being as­ 2 years ago he became a Roman Catholic time is running out. sociated with a man more courageous, convert and worked in New York's slums with The article follows: the Catholic worker movement headed by more steadfast, and less concerned with Dorothy Day. LIBERAL DoMINICAN AID DIES MYSTERIOUSLY mere popularity than the distinguished When the draft was up for renewal earlier IN CAR gentleman from Vermont [Mr. MEYER]. this year MEYER opposed it- on the floor of (By Tad Szulc) BILL MEYER is a worthy Representative the House. He admits . that at times he ts MIAMI, FLA. July 19.-Ramon Marrero Aris­ of a State which has prized independ­ overcome by something like despair as he ty, the Dominican Republic's Minister of ence of thought and strength of char­ confronts what he fears is an inevitable Labor and an outstanding liberal influence acter ever since colonial days. His out­ drift toward nuclear war. in that country's dictatorial Government, spoken defense of policies he believes are In normally Republican Vermont MEYER's was killed Friday night in a mysterious au­ ..stand, even though his views were fairly well -tomobile accident on a mountain highway. in the best interests of peace have not aired during last year's campaign, has set He died in a. flaming car between the always been popular. But they have off loud repercussions. "The American Legion towns of Constanza. and Monsenor Nouel. always been moving by their-sincerity has denounced him and newspaper editors The circumstances were not made known in and persuasive because of their courage. almost· without exception have inveighed -detail officially in Ciudad Trujillo, the Do­ Mr. Speaker, this House is a repository against him. He went up and spoke· to the minican capital. of the traditions of a century and three­ Republican legislature in Vermont and, -after His death put an end to his persistent quarters of .statesmanship, patriotism he had explained what he had done for the and almost lonely struggle for a relaxation State, he defended his position on peace and in the tight dictatorial practices of the re­ and the love of liberty. The able gen­ war: gime. tleman from Vermont, whom I am proud "I tried to illustrate that military leaders Senor Marrero, a 45-year-old writer, news­ to ·call my friend, has in the few months. are gaining economic control in the United paperman, and labor specialist, believed the he has been among us contributed in no States and spending most of our taxes with regime of Generalissimo R~fael Leonidas small measure to that tradition. no real supervision by Congress. • • • The Trujillo Molina could survive the crisis now I ask unanimous consent, Mr. Speak­ situation must be corrected if our form of facing it only if it became more liberal and if it eliminated the spreading corruption in ~r. that a column recently appearing in government is to survive. This must indeed be a crazy age 1! I am called a subversive high official circles. · the Washington Post. written by the out­ because I speak the truth and try to uphold There .are reasons ·to believe that Seiior standing observer of public affairs, Mr. our constitutional form of government and Marrero thought of himself as a possible po­ Marquis Childs, be printed following my provide for the defense of my country as I am litical solution for the Dominican Republic remarks in the REcORD. obligated to do as a Congressman elected by if the Trujillo regime collapsed. STAID VERMONT'S VOICE OF DISSENT the people and sworn into office under oath." He believed that his liberal record would. make him acceptable to the regime's foes. (By Marquis Childs) Other men like MEYER have in the past served in the Congress, but they have come This belief was borne out, at least tenta­ In its furthest reaches the tide of Demo­ mostly from the West, with isolationist lean­ tively, in conversations between Dominican cratic victory last November swept EDMUND ings. He is not an isolationist, believing that rebel leaders in Havana and this correspond­ MusKIE into the Senate from Maine and for American troops must remain in Europe until ent 2 weeks ago. the fust time a Democrat was elected to Con­ a solid agreement on withdrawal of armed The Dominican regime is under strong gress on a .statewide basis from Vermont. forces from each side of the East-West divide pressures from opponents at home, in Cuba. That Democrat was Representative WILLIAM can be reached with Russia. and elsewhere. H. MEYER, who in the aftermath of the land­ Powerful forces in Vermont, including a In advocating changes in the dictatorship's slide last fall w.as for a brief time national faction in his own party, are determined to policies, Seiior Marrero acquired many pow­ news. defeat MEYER next year. His Republican op­ erful enemies. But he had remained person­ Not only had he won as .Congressman-at­ ponent is likely to be the present Governor, ally loyal to Generalissimo Trujillo, believ­ Large by a majority of 4;000 out of 123,000 Robert T. Stafford, who won by a squeak of Ing that the 67-year-old dictator was still votes cast, but during his campaign he had 100 votes in November. But win, lose, or the best person to solve Dominican prob­ expressed some very unorthodox views. He draw, this nonconformist will follow the dic­ lems. The third-born of Senor Marrero's had said on television that he believed Com­ tates of his own conscience. five children was named after the Generalis­ munist China should be a member of the simo. United Nations and that eventually the Until about 2 weeks ago, there were in­ United States should recognize the .Peking TRUJILLO'S END IS NIGH dications that Seiior Marrero might have government, He. p.ropose.d abolition of the been successful, at least partly, by convinc­ draft and stopping the manufacture of hy­ Mr. LEVERING. Mr. Speaker, .I ·ask ing Generalissimo Trujillo . that relaxation drogen and atomic bombs as well as nuclear unanimous consent that the gentleman was needed following the regime's success testing. from Oregon [Mr. PoRTER] may extend in routing a rebel invasion from Cuba. 1959 CONGRESSIONAL RECORD-. HOUSE 13741 As never before, foreign newspapermen appointed Minister of Labor and became one first installation devoted exclusively to were allowed to work in the Dominican Re­ of the most influential advisers to General- the production of the company's revo­ public with freedom and without censor­ ~ssimo Trujillo. . ship. Senor Marrero, who also acted as the His office was at the National Palace in lutionary polyester materials, Vitel and Government's press coordinator, took the Ciudad Trujillo ar.d he was frequently seen Videne. Vitel is the resin from which credit for this accomplishment. with the Generalissimo. For foreign news­ synthetic textile fibers can be spun. But stringent curbs were placed on cor­ men, he was the principal link with regime. Videne is a unique laminating film for respondents after the New York Times pub­ Sefior Marrero, a stout, exuberant man, protective and/ or decorative surfaces. lished June 12 a dispatch from Ciudad lived in striking modesty. He occupied an Goodyear selection of the West Vir­ Trujillo that described the problem that apartment in an average Ciudad Trujillo ginia tract near the city of Point Pleasant corruption posed for the dictatorial regime. building. He .had a house under construc­ on the Ohio River was not mere chance Since the views expressed in the dispatch tion and, just before his final trip to the reflected up to a point Sefior Marrero's be­ United States, had gone to a bank to borrow but the result of a detailed study of what liefs, he may have been blamed for it. At money to complete the job. was needed to manufacture these new the time he was in the United States, ar­ His eldest son, Juan Ramon, entered the miracles in plastics. ranging to open a Dominican Government Dominican Air Force only a week ago. His After years of research and develop­ public relations office in New York. little daughter, Belisita, celebrated her birth­ ment, involving millions of dollars, the In Washington he issued an official state day the day her father died. new products were ready for marketing .ment denying that there was corruption in Sefior Marrero once edited the afternoon in early 1957. But an analysis of prop­ the Dominican Government. newspaper; La Nacion. He was also a novel­ ist and se·rved several times in Congress. erties then held by Goodyear revealed RETURNED HURRIEDLY there was not enough land available to Sefior Marrero returned hurriedly to Ciu­ build a plant of the size necessary to meet dad Trujillo last Thursday after telephoning AMERICAN ART EXHIBIT IN projected sales potentials for these new to this correspondent, who was then in MOSCOW materials. Havana, to stay away from the Dominican Republic until the storm blows over. Mr. LEVERING. Mr. Speaker, I ask Once the need for new properties was Sefior Marrero was seen at an official unanimous consent that the gentleman determined, a _task force of Goodyear luncheon in a Ciudad Trujillo hotel Thurs­ from South Dakota [Mr. McGovERN] representatives began an exhaustive day. Yesterday the Dominican official radio may extend his remarks at this point in search for new property, which would broadcast an announcement that he had the RECORD. not only provide adequate production died in an automobile accident. space immediately, but also protect for This morning El Caribe, the official news­ . The SPEAKER. Is there objection to the request of the gentleman from future production expansion of these paper, said the same thing. It described materials and other chemical or associ­ the funeral held yesterday afternoon in Ciu­ Ohio? dad Trujillo and said Sefior Marrero had There was no objection. ated products. been buried with honors accorded a lieuten­ Mr. McGOVERN. Mr. Speaker, I do WHY WEST VIRGINIA? ant general of the army. not consider myself an art critic, nor In its search, the Goodyear team was Generalissimo Trujillo sent a wreath in­ would I presume to pass judgment on the not concerned only with production scribed to his "good friend and efficient col­ quality of the coming American art ex­ laborator." space, but also a location strategic Informed sources told this correspondent hibit in Moscow. to both the source of raw materials and in Ciudad Trujillo today that Sefior Mar­ I am disturbed, however, to learn that distribution of end products, adequate rero's car had fallen off a mountain road there is not a single American Indian labor, proper transportation, and neces­ near Constanza and burned, charring the painting included in this exhibition. sary utility services. body of the Labor Minister and his chauffeur Some of the finest art produced in the After a study of more than 60 prop­ beyond recognition. United States has been·done by Ameri­ erties, the 339-acre tract at the unin­ WARRANT SERVED ON NEWSMAN can Indian artists. No one can question corporated village of Apple Grove, some At 6 a.m. today this correspondent was that the work of our Indian citizens rep­ 15 miles south of Point Pleasant, W.va., .served in his hotel room with a court war­ resents an integral part of American proved to best fit the requirements of ,rant sworn out ,at dawn by t:b.e President of culture. It has often been said that the the company. .the First Criminal Court of Ciudad Trujillo. Indian is the only one who has the right The tract acqUired was level, cleared It ordered the correspondent to appear to claim the label "original American." Thursday to answer charges of slander and property which had been under · culti­ defamation preferred by Brig. Gen. Maximo In my own State, the Sioux Indian vation for years and permitted imme­ _ Bonetti Burgos, former chief of staff of the artist, Oscar Howe, of the University of . diate construction of the plant. army. South Dakota, has achieved interna­ EXCELLENT LOCATION In a dispatch published in the Times yes­ tional fame with his superb paintings. Geographically, the tract lies almost terday, this correspondent wrote that reliable I respectfully suggest that at least one reports had said that General Bonetti had work by an outstanding Indian artist be exactly in the center of a large perim­ been replaced a few days ago ..s chief of included in the art exhibit going to Mos­ eter from which Goodyear draws raw staff because of failure to act with sufficient cow. This suggestion has been made to materials for production. determination against the invaders last This location also answered the prob­ month and because he might have had some Fentress Gardner, Deputy Director of the Exhibits Division of the U.S. Infor­ lem of transportation of incoming or thoughts about taking over the Government. outgoing materials. The Ohio River on General Bonetti commanded the army mation Service. I have offered to loan brigade that rendered military honors at for this purpose a beautiful painting by the western end of the property pro­ Sefior Marrero's funeral. Mr. Howe that now hangs in my o:tfice. vides access to barging along a network This correspondent was informed that he of navigable rivers, including the.Missis­ would not be allowed to leave the Dominican sippi and Kanawha Rivers. The Balti­ Republic pending trial. In midmorning, WEST VIRGINIA IS PROUD OF more & Ohio Railroad cuts the western however, the U.S. Embassy, which had made GOODYEAR half of the entire tract. West Virginia representations on his behalf was informed Route 2 abuts the eastern end of the that he was free to leave at once. Mr. LEVERING. Mr. Speaker, I ask unanimous consent that the gentleman northern section and bisects the soutil- ALLOWED TO BOARD PLANE from West Virginia [Mr. HECHLER] may ernhalf. · Escorted by an Embassy official, this cor­ PLENTIFUL SUPPLY OF GOOD LABOR respondent was allowed to board an aircraft extend his remarks at this point in the bound for Miami. It was made clear, how­ RECORD. For production, a labor force of some ever, that the charges would be pressed if The SPEAKER. Is there objection 200 is needed to run the plant at peak he returned to the Dominican Republic. to the request of the gentleman from capacity. Cities within a radius of 50 Sefior Marrero had a reputation for cour­ Ohio? miles of Point Pleasant; Charleston, age and forthrightness. In 1957, after he There was no objection. Huntington, W. Va., and Ashland, Ky., had served for a year as Minister of Labor, Mr. HECHLER. Mr. Speaker, in an­ Portsmouth and Gallipolis, Ohio, more he fell into disgrace as a result of his cam­ than supply labor needs. paign to break the Government's coffee nouncing February 13, 1958, plans to monopoly. He felt, that the monopoly was locate its new $10 million chemical plant Good labor-management relationships h arming the coffee producers. at Apple Grove, W. Va., Goodyear Tire exist in the area with labor rates on the Sefior Marrero told this correspondent sev­ & Rubber Co. added two more significant average equivalent to those in other eral weeks ago of having been completely milestones to its 60-year history. areas investigated by the company. ruined financially during his period in dis­ It is the first Goodyear manufacturing Also readily available are· all utilities­ grace. Early this year, however, he was re- unit on West Virginia soil and also the water, electricity, and gas. 13742 CONGRESSIONAL RECORD- HOUSE July 20 Actual construction of the plant began MAJOR BREAKTHROUGH IN PLASTICS great advantage. Showing great poten­ -May 15, 1958, and preproduction testing Gloss or reflection of the finished film tial is the decal industry. In· addition to of equipment got under way in February surface runs from high to low, depend­ high abrasion resistance and printing of this year. ing upon the type of Videne film used, properties, Videne's excellent outdoor Limited Vitel resin production began .and is controlled by the laminating tech­ aging factors combats the industrial April 21 of this year, and volume manu­ nique involved. The film is produced in .hazards of surface discolorization and facturing of both Vitel and Videne film two finishes, clear and satin, in gages surface cracking. These properties also will probably begin about October 1 of ranging from 2 to 7% mils. open the film to extensive application this year. Development of Videne is considered in the outdoor sign business. Plant facilities include two main build­ a major breakthrough in plastics tech­ Unlike the basic Videne from which it ings-a processing and warehousing unit nology, and Goodyear foresees virtually is derived, Videne TC has unusual and a utility center-plus several smaller unlimited end-use potential for the film strength in an unsupported state, even structures, a tank farm area, and a park­ because of its combined protective and at extremely low temperatures. ing lot. decorative properties. It is described as an oriented or Total construction area is approxi­ In textiles Videne adheres to glass, stretched, thermoplastic-coated material mately 100,000 square feet. cotton, wool, Dacron, Orion, nylon, arid .which is heat shrinkable within a con­ Of this area, 80,000 square feet is uti­ Vinyon fabrics equally well. A wide trolled temperature range. lized in the processing and warehousing variety of decorative, structural, and Possessing unusual transparency or building, which is divided into three sec­ electrical laminates, as well as protective clarity, it also has high resistance to tions. textiles surfaces, can be produced for abrasion and breakage, major hazards in The largest section, containing 47,000 conversion to such end uses as glazed packaging end uses. square feeting and rising 5 stories, han­ chintz, curtains, wall coverings, lamp­ Heat sealable, it is acknowledged as the dles resin production. Film operations shades, electrical and photo template first shrinkable film with enough inher:­ are in a second section of 15,000 square materials. ent rigidity and dimensional stability to feet. The remaining ·area of 18,000 AMAZING USES be run on commercially available auto­ square feet provides office, maintenance, Positive adhesion can be obtained with matic packaging machines. locker facilities, and warehousing for fin­ Videne to metal surfaces ranging from Currently, film for conversion to the ished products. aluminum to steel. Protective surfaces self -supporting Videne TC wrap is being Approximately 9,000 square feet are result with lamination of Videne. Dec­ produced at Akron. contained in the utility building. The orative as well as protective surfaces can GOODYEAR TO GROW WITH WEST VIRGINIA steam powerplant, refrigeration, and air­ be obtained by printing and/ or em­ conditioning occupy 6,500 square feet. Building of the plant and subsequent bossing the film. These metal laminates full operations of the installation will Another 2,500 square feet is allotted to then can be drawn or formed if proper raw material handling and storage. have a marked effect on the Point Pleas­ techniques are employed. Outdoor ant area. Electrical demand for production is sheeting, wall panels, doors, sills, trays, about 3,000 kilowatts. Water require­ An analysis of what has taken place tabletops, interior, and exterior auto­ at the other 29 plants Goodyear has in ments run at about 500 gallons per min­ motive trims are end uses with great po­ ute; steam at 25,000 pounds per hour. 16 States throughout the United States tential in metal fields. points to a substantial growth physically VITEL AND VIDENE . Videne laminates readily to all woods and economically, for Point Pleasant, In production, the Point Pleasant and composition wood surfaces to pro­ W.Va. plant will produce two resins, Vitel and vide a protective preflnished surface. The growing industrial interest in Vitel a sister polyester which will be converted Decorative as well as a protective finish and Videne may presage other new plant there into the Videne laminating film. can be obtained by printing the film. construction in the area by Goodyear Vitel resin is to be sold directly to tex­ Among the many end uses seen in this suppliers and customers. Development tile converters for processing into .syn­ field are laminations of wood veneers to of new and expanding markets for both thetic textile fibers for such end use as metals, doors, wall panels, shower products logically will cause an expan­ shirts, suits, dresses, and related prod­ panels, and prefinished random ply­ sion of Goodyear's facilities in West ucts. woods. Virginia. Initial customer for Vitel is Beaunit Major applications in the paper fields ONE AND ONE-HALF MILLION DOLLAR PAYROLLS Mills, Inc., which now is converting the are wall coverings, decorative papers, resin at its Elizabethton, Tenn., plant electrical tapes, and general packaging Economically, initial payroll for the into a fiber sold under the trade name materials. In some cases, the paper can plant is estimated at $1.5 million yearly. of Vicron. be printed and the film then provides a Approximately one-third of that amount Videne film produced at Point Pleas­ decorative surface upon lamination. will be placed in new bank deposits and ant will be utilized for direct or stretch­ In others, the film is printed and/or the remainder registered in local retail laminating applications in the textile, embossed, providing both a decorative sales~ metal, wood, paper, plastic, automotive, as well as .a protective surface. Plant size indicates a population in­ and packaging industries, as well as be­ In plastics, Videne adhers to many crease for the community of about 500 ing converted into a special wrap.­ rigid and semiflexible materials under with approximately one-half that num­ ber investing in and constructing new Videne TC-for machine packaging of just heat and pressure. Others, such as meat and other food products. polystyrene, require addition of an ad­ homes. The chemical nature of the laminat­ hesive in Videne laminations. Applica­ To service additional needs of an ex­ ing film is described as an oriented, panding community, at least 8 new retail amorphous- shapeless - thermoplastic tions in this field, which can be either establishments can be expected to open material which cannot be crystallized decorative and/or protective, include and 150 more jobs created in addition to and di1Iers from <()ther plastics in two such consumer items as bathtubs, sinks, plant employment. major respects. It can be adhered un­ light fixtures, boat surfaces, caskets, Mr. Speaker, the reason why I have der heat and pressure to textiles, metals, wall tiles, and trays. gone into as much detail about this new wood, paper, and 'Certain plastics with­ Paper or paper combinations, foil and plant and its revolutionary product is to out adhesives and will vacuum-form or ,other films can be combined with Videne demonstrate the attractiveness of the draw to the limits of the supporting ma­ to provide a wide variety of liquid, food, State of West Virginia for new industry. terials. and textile wraps. In this field, the film Our land is abundant, taxes are low, Videne also possesses unusually high not only gives protective and/or decora­ labor supply is good and easy to train, abrasion resistance. It resists outdoor tive qualities to the laminate, but also transportation facilities are adequate, aging to an amazing degree and it has provides quick· permanent heat sealing, raw materials are accessible, and within excellent electrical properties as well. a prime requisite for packaging mate­ 500 miles of the Ohio Valley lives half the Another important physical property population of this country--so markets of the film is that it can be embossed or rials. are excellent. printed, opening up unlimited possibili­ . POTEN'I'IAL APPLICATIONS IMPORTANT Mr. Speaker, I urge industry to come ties of style and design in decorative There also are many specialty appli­ to West Virginia where mountaineers surfaces. cations in which the film can be used to are free men. 1959 CONGRESSIONAL RECORD- HOUSE 13743 IS U.N. WORTH YOUR 62 CENTS? INFLATION'S DANGER SIGNAL idea with a host of new charge cards and revolvlng credit plans. Mr. LEVERING. Mr. Speaker, I ask Mr. JOHNSON of Colo'rado. Mr. The money managers recognize that ex­ unanimous consent that the gentleman Speaker, we have had a great deal of dis­ _cessive use of consumer credit can be danger­ from Colorado [Mr. JOHNSON] may ex­ cussion in recent weeks about inflation ous. They freely admit that the 1955 expan­ tend his remarks at this point in the and what causes it. Sotne proposals sion was discriminatory against other lenders RECORD in two instances. have been made to check inflation, but and was a major factor in the 1957-58 reces­ sion. But they refused to ask Congress for The SPEAKER. Is there objection most of these have been only on the authority to control consumer credit in 1955 to the request of the gentleman from periphery of the real problem. Indeed, on the grounds that the damage had already Ohio? one proposal-to raise interest rates­ .been done. And now, with consumer debt There was no objection. would feed inflation, rather than fight rising sharply, they maintain that a stretch­ Mr. JOHNSON of Colorado. Mr. it. out in maturities beyond 36 months is un­ Speaker, is the U.N. worth your 62 cents? In view of these circumstances, it is likely. It may well be that there is no room for a · This question is asked by the Ameri­ refreshing to find one very reputable major stretchout. But the consumer credit can Association for the United Nations journal, Business Week, in its issue of industry is demonstrating a real ingenuity to remind us that this is the cost per June 27, proposing effective action to in stimulating demand. Moreover, renewed capita in the United States of our con­ check consumer credit, which now competition is leading lenders to reach out tribution to the U.N. for the calendar threatens to run rampant. Like fire, for consumers that up until now were con­ year 1959. I have previously noted that consumer credit is fine, but only when sidered very questionable risks. the citizens of the United States are under control. The Fed's reluctance to institute specific controls is understandable. Its past experi­ spending about $250 per capita for mili­ April, as reported by Business Week, ence with controls over mortgage credit and tary programs, and about $8 per capita saw a $700 million extension in consumer consumer credit makes it feel that they are for oversea economic assistance. Sure­ credit. Added to that, we now have re­ an administrative headache. Now that ly it is worth 62 cents per capita to try ports showing a $870 millior.. jump in ·terms are already so liberal, the money to build a peaceful world in which we May. This is a truly inflationary trend managers argue that it would be very dif­ will not need to spend $250 per capita to the administration might well get con­ ficult to begin a policing . operation that cerned about. This is private deficit fi­ would work. They prefer to rely on their prepare for the destruction of man. general quantitative controls, which, they The table below sets forth the detail nancing at the rate of $10 billion a year. feel, provide maximum freedom with a mini­ supporting this estimate: It is heartening to hear Business Week mum of interference by the Fed itself. [From the AAUN News, June 1959) say what some of us have been saying, But the use of specific, qualitative controls Is U.N. WORTH YOUR 62 CENTS? that the Federal Reserve should ask the does not involve downgrading quantitative Congress now for authority to control controls. The Fed itself has found that its The U.N. is a center for harmonizing the consumer credit. controls over stock market credit are worth­ action of nations in the attainment of com­ while. In fact, it has seen fit to strengthen mon ends. The article from Business Week this specific weapon. The U.N. is spurring economic and social follows: It would not be easy to set up specific con­ progress and ad vancenient of human rights. KEEPING CONSUMER CREDIT IN LINE trols over consumer credit. But neither The U.N. organizes combined efforts wher­ A new boom in consumer credit is under would it be a brandnew experiment. There ever and whenever there are common prob­ way. In April, the latest month for which is a valuable precedent to draw on in regu­ lems before nations. figures are available, extensions of consumer lation W, which was in effect intermittently The U.N. represents the collective will of credit jumped $700 million, and preliminary from 1941 .to 1952 when the Fed had au­ 82 member nations to save succeeding gen­ reports indicate that this trend has been thority to control consumer credit. erations from the scourge of war and to maintained into May and June. If borrow­ This is the time for Congress and the Fed build peace based on la'Y and justice. ing continues, and there is nothing to stop to sit down to consider just how that experi­ it, then it will rival the explosive expansion ence can be adapted to the present situation. Estimated U.S. contributions to the United in consumer credit that we experienced in It will not be easy to set up controls, but it Nations, including the specialized agencies 1955. is possible and desirable to do so. It Will and voluntary programs Before this new· movement gathers any be worth suffering a headache if it means more momentum, the Federal Reserve Board that we can avoid the hangover that is sure Calendar year 1959 should take another look at the whole ques­ to follow a spending spree based on exces­ tion of imposing specific controls on con­ sive use of consumer credit. Estimated Per sumer credit. U.S. con­ capita An increase in the volume of credit, based tributions cost on rising personal incomes, is healthy !or LEAVE OF ABSENCE the economy. It means more sales all down By unanimous consent leave of ab­ United Nations ______$19,993,650 $0.1139 the line. But like all good things, it can be sence was granted to: United Nations Emergency Force_ 8, 443,146 .0481 carried to excess. This is what happened in Specialized agencies: 1955, when a large part of the big expansion Mr. JoNES of Missouri

Transportation Lodging Meals Gratuities Miscellaneous Total Name of cur­ Country rency Foreign u.s. Foreign U.S. Foreign u.s. Foreign u.s. Foreign u.s. Foreign U.S. currency dollars currency dollars currency dollars currency dollars currency dollars currency dollars ______, ______, ____ ------1----1-----1---- Japan_------Yen______11,970 33.39 196,448 54~. 96 9~, ~gg ~~~- gg ------80,900 228.46 392,078 1, 061.31 Thailand______Baht ______------4, 417.20 21 . 87 , . ------1, 465 71. 50 8, 882. 20 441.37 Taiwan______Dollar______------1, 500 42.00 ------2, 300 63.35 3, 800.00 105.35 Vietnam______Piastre ______------8, 800 123.20 ------. 4, 054 55.33 12,854 178.53 China------Dollar ______(t)---- ____ . . 1~~S 4~g ~~· ~g 1, ~~g ~~- ~~ 405i~~ ~g· ~· ~~· ~g 546.12 63 20 ------ro 819.40 IsraeL______El~~~======------~--- 196, 4so 314:40 1, 219. oo 195:04 ======51, ooo 81:60 369, 3so 591.04 ItalY------p d 22 680 72 96 420 134.40 ------130 41 60 776.80 ~ebanonk ______Koun ------' · 2, 600 63:37 2, 600 248.96 63.37 145.18 1 145. 00 510.76 ~5~~~~~~~jjj~~~~~~~ ~f~Y:=~~~~~~ :~~~i:;;: ::=;;;:i;= :::=l·il~: ~~~~;;~~~ ::::1c: ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ---·:~:- --- ~=~- •. :i..m 47.27 1 3150.00 Belgium______Franc______• g~~ 2 ~!· ~~ '557 129· 52 '690 1~~: g~ - ~~ :1~: ~ ======~; ggg 465.12 ~~U!~~~~~~~======-i5eu~cb-mii.;ir= .::..:=.:..:.== 167: oo .::..:=.:..:.== 13o: oo ==== ~ ======8. oo ______500.00 TotaL ______------1, 019. 76 ------2, 247.01 ------1, 601.13 ------40. 57 ------1,110. 94 ------6, 018.78

BRENT SPENCE, 1 Included in miscellaneous. Chairman, Committee on Banking and Currency. : ~~~~c~dofr=i~hf~~i~~e shown in total amount expended in t_his co~ntry are repayments of expenses incurred in excess of total amount expended m Sw1tzerlantl. May 22, 1959, submitting a report, together 1223. A letter from the President of the ADJOURNMENT with accompanying papers and illustrations, Board of Commissioners of the District of Mr. LEVERING. Mr. Speaker, I move on a review of reports on Cayuga Inlet, Columbia, transmitting a draft of proposed that the House do now adjourn. Ithaca, N.Y., requested by a resolution of the legislation entitled "A bill authorizing the The motion was agreed to; accord­ Committee on Public Works, House of Repre­ conferring of the degree of master of arts ingly

EXTENSIONS OF REMARKS

J. Hyde Sweet Has Been an Active News­ niversary with a dinner and open house out in the country; perhaps playing golf; or on September 2. I would like to add to maybe. even catching up on the many house­ man for 50 Years at Nebraska City, their best wishes my own congratula­ hold chores that confront the average home­ Nebr. tions on 50 years of past excellence and owner. Instead of · seeing headfines which rally my hopes for many more years of the the Nation to observe this most beautiful of EXTENSION OF REMARKS same kind of generous service rendered our holidays, which reflect upon the inde­ OF by a great and good spirit to the people pendence of our Nation, in modern America, around him. the headlines issue sober warnings that ·hun­ HON. PHIL WEAVER dreds of people will be killed in traffic fatali­ OF NEBRASKA Independence Day Address ties over the Fourth of July weekend. Because you people and the committee ~f IN THE HOUSE OF REPRESENTATIVES Edison Park Community Council do take Monday, July 20, 1959 EXTENSION OF REMARKS the time and effort to put this holiday in its · OF proper perspective, the residents of Edison Mr. WEAVER. Mr. Speaker, on August Park, at least, are reminded of the real mean­ 15 of this year one of the great men of HON. ROMAN C. PUCINSKI ing of this holiday. I congratulate you and Nebraska journalism and a former Mem­ OF ILLINOIS commend you for setting aside the more com­ ber of this House, J. Hyde Sweet. editor IN THE HOUSE OF REPRESENTATIVES _ fortable pursuits in which you could today and publisher of the Nebraska City-News­ be engaged, and instead are· participating ih Press, celebrates his 50th year of active Monday, July 20, 1959 this tribute. newspapering in Nebraska City. Mr. PUCINSKI. Mr. Speaker, . I God grant that what you are doing here today could again be repeated all over our I would like to take this opportunity would like to take this opportunity to Nation so that we, as Americans, could prop­ to congratulate him on the excellent include in the CONGRESSIONAL RECORD erly reflect on the full meaning of the Fourth service he has rendered his hoJDetown my remarks delivered at the Independ­ of July, on the depth of Independence Day, readers and the people of Nebraska ence Day observance which was spon­ and what it really means to the people of our through his astute observations on the sored by the Edison Park Community Nation. passing scene carried daily in his own Council at Olympia Park, Chicago, Ill., I was indeed very saddened when I read an column and on the editorial page of his on this past Fourth of July. The Edison account by an enterprising Chicago re­ newspaper. He has made through his Park Community Council is to be con­ porter last w_eek that a survey which he had conducted among many people of our writings a major contribution to the peo­ gratulated for arranging this patriotic city showed overwhelmingly how few Amer­ ple of his city and State. gathering to call attention to the signi­ icans really understand the meaning of July It was on August 15, 1909, that Hyde ficance of this day. The remarkable Fourth. I might say I was even chagrined Sweet came to Nebraska City as part spirit of the people present at this to see how many people thought that July owner and business manager of the old gathering clearly showed that in the Fourth is a tribute to the end of World-War I. Nebraska City Press, the forerunner of Edison Park area of Chicago the full Others expressed a belief that it is a holiday the present News-Press. It was not long import of the meaning of Independ.:. signifying the end of the War of 1812. Tragically, only a relatively small percentage until he moved from the business office ence Day was deeply felt by the entire of those interviewed by this reporter actually to the newsroom and began putting his community. I am proud that the Edi­ knew that the Fourth of July is an annual writing talent and his ability as a shrewd son Park area is in the 11th Congres­ tribute by the American people to the Decla­ observer to work. .· As a reporter he de­ sional District of Illinois, which I repre­ ration of Independence signed by the Found­ veloped a :flair for finding the right sent. My remarks follow: ing Fathers of this Nation, a declaration angle to a story and an ability to bring REMARKS BY HON. ROMAN C. PUCINSKI, 11TH which had dedicated this Nation to the out the human interest in the happen­ CONGRESSIONAL DISTRICT, ILLINOIS, DELIV­ fundamental belief-that people are endowed ings he observed around him. ERED AT THE INDEPENDENCE DAY OBSERVANCE by our Creator with the unalienable right to be free. Within 10 years he evolved into a col­ SPONSORED BY THE EDISON PARK COMMUNITY COUNCIL IN OLYMPIA PARK, AVONDALE AND Because of the fine work which the people umnist and began his Kick Kolumn OLYMPIA AVENUES, CHICAGO, JUJ.Y 4, 1959 of this community are doing to keep the true which has since become one of the most Mr. Chairman, ladies, and gentlemen, may spirit of this holiday, I feel certain that if widely quoted news column in the Mid­ I first take this opportunity to thank the that reporter were to conduct his survey in dle West. He. has not, however, con­ Edison Park Community Council for arrang­ this area, he would certainly find much more fined his writing ability to this column ing today•s Fourth of July tribute. I was impressive results. alone. He writes the daily editorial for very interested to learn from the Association What is- the real meaning of this holiday? his newspaper and I have always found of Community Councils that your community On July Fourth in 1776, the Declaration the:;e editorials to be composed of good celebration being held today is one of the of Independence was signed. The 56 men last such neighborhood celebrations still be­ who gathered in that hot and sultry room writing, keen observation, and sound ing observed in this city. It is lamentable, in­ in Philadelphia so long ego to read and sign common sense. deed, that the annual Fourth of July observ­ a paper that had been drafted by Thomas The people who work with him on the ance has now become an occasion for "tak­ Jefferson did not know they were helping to News-Press will celebrate his 50th an- ing a day off," so to speak; a day for going create the Eighth Wonder of the World.