1958 CONGRESSIONAL RECORD- HOUSE 6913 Carl Aubrey Gruel Daniel H: Jenkins, of Pennsylvania, to be less than the highest will every satisfy Frank Reichard Grundman United States attorney for the middle dis­ our souls. Charles Jayhue Helpingstine trict of Pennsylvania, term of 4 years. Rex Earl Henderson Louis Gorman Whitcomb, of Vermont, to Hear us for the sake of our blessed Christopher Michael Holland be United States attorney for the district of Lord. Amen. John Curtis !kens Vermont, term of 4 years. The Journal of the proceedings of yes­ Ira Bernard Jacobson Duncan Wilmer Daugherty, of West Vir­ terday was read an-d approved. Robert Bruce Jamieson ginia, to be United States attorney for the Emlyn Lewis Jones, Jr. southern district of West Virginia, term of / Wallace Francis Kelley 4 years. Nell Forrest Kendall George Edward Rapp, of Wisconsin, to be MESSAGE FROM THE SENATE Thomas Robert Klein United States attorney for the western dis­ A message from the Senate by Mr. Alexander Robb Larzelere trict of Wisconsin, term of 4 years. Everett John Lecourt, Jr. McGown, one of its clerks, announced James Danehy Martin UNITED STATES MARSHALS that the Senate has passed without Richard Gordon Matheson Claire A. Wilder, of Alaska, to be United amendment a joint resolution of the George Peter Mitchell States mar::hal for division No. 1, district of House of the following title: Gerald Karl Mohlenbrok Alaska, term of 4 years. Thomas Stephen Monnone Fred S Williamson, of Alaska, to be United H. J. Res. 588. Joint resolution, making ad­ David Alan Naus vance procurement appropriations for the States marshal for division No. 3, district fiscal year 1958, and for other purposes. Robert Theodore Nelson of Alaslt:a, term of 4 ye!lrs. Michael Joseph O'Brien Albert Fuller Dorsh, Jr., of Alaska, to be The message also announced that the Robert Smith Palmer, Jr. United States marshal for divsion No. 4, Senate had passed, with amendments in Alfred Franklin Parker district of Alaska, term of 4 years. which 'the concurrence of the House is William Alden Parker Eugene Levi Kemper, of Kansas, to be Walter Edward Peterson, Jr. United States marshal for the district of requested, a bill of the House of the fol­ Bert Thomas Potter Kansas, term of 4 years. lowing title: Henry Calhoun Rayburn Rupert Hugo Newcomb, of Mississippi, to H. R.l1767. An act making appropriations Ronald Duncan Rosie be United States marshal for the southern for the Department of Agriculture and Farm Kenneth Melvin Roughgarden district of Mississippi, term of 4 years. Credit Administration for the fiscal year end· Thomas Richard Schiller Louis 0. Aleksich, of Montana, to be United ing June 30, 1959, and for other purposes. Robert Martin Schissler States marshal for the district of Montana, The message also announced that the Francis Ferreira Silvia term of 4 years. Melvin LeRoy Sites Senate insists upon its amendments to Stevens Humphreys Smith William Raab, of Nebraska, to be United the foregoing bill, and requests a con­ Howard Edson Snow States marshal for the district of Nebraska, term of 4 years. ference with the House on the disagree­ John Charles Spence ing votes of the two Houses thereon, and James Owen Sullivah Cedric E. Stewart, of Nevada, to be United Richard Alan Sutherland States marshal for the district of Nevada, appoints Mr. RUSSE)LL, Mr. HAYDEN, Mr. Larry Edwin Telfer term of 4 years. HILL, Mr. ROBERTSON, Mr. ELLENDER, Mr. Robert Stephen Tuneski Joseph Stockinger, of New York, to be YOUNG, Mr. MUNDT, and Mr. DWORSHAK to Jon Clifford Uithol United States marshal for _the eastern dis­ be the conferees on the part of the Roger Oscar Walther trict of New York, term of 4 years. Senate. Robert Edwin Warakomsky J. Bradbury German, Jr., _of New York, James Watt to be United States marshal for the northern Robert John Watterson district of New York, term of 4 years. TEMPORARY UNEMPLOYMEN~ John Robert Wells, Jr. George M. Glasser, of New York, to be BENEFITS David Albert White United States marshal for the western dis· Robert Caldwell Williams trict of New York, term of 4 years. Mr. MILLS. Mr. Speaker, I ask unani­ Stuart Alan Yoffe B. Ray Cohoon, of North Carolina, to be mous consent that the ·Committee on UNITED STATES DISTRICT' JUDGES United States marshal for the eastern district Ways and Means may have until mid­ of North Carolina, term of 4 years. Edwin D. Steel, Jr., of Delaware, to be night tomorrow, Wednesday, April23, to United States district judge for the district Dewey Howard Perry, of Vermont, to be file the report, including any minority of Delaware. United States marshal for the district of views, on the bill H. R. 12065, to author­ Mendon Morrill, of New Jersey, to be Vermont, term of 4 years. Ray H. Schoonover, of Wisconsin, to be ize temporary unemployment benefits United States district judge for the district for individuals who exhaust their Fed­ of New Jersey. United States marshal for the western dis­ trict of Wisconsin, term of 4 years. eral rights under existing compensation UNITED STATES ATTORNEYS laws, and for individuals who were em­ William T. Plummer, of Alaska, to be •• ..... II ployed in noncovered employment. United States attorney for the division No. 3, district of Alaska, term of 4 years. The SPEAKER. Is there objection to Jack D. H. Hays, o:( Arizona, to be United HOUSE OF REPRESENTATIVES the request· of the gentleman from States attorney for the district of Arizona, Arkansas? term of 4 years. TUESDAY, APRIL 22, 1958 There was no objection. Harlington Wood, Jr., of Illinois, to be United States attorney for the southern dis­ The House met at 12 o'clock noon. trict of Illinois, term of 4 years. The Chaplain, Rev. Bernard Braskamp, J. Leonard Walker, of Kentucky, to be . D. D., offered the following prayer: PERMISSION TO SELECT COMMIT­ United States attorney for the western dis­ TEE ON ASTRONAUTICS TO SIT trict of Kentucky, term of 4 years. Daniel 6:10: Daniel kneeled upon his Thomas Ramage Ethridge, of Mississippi, knees three times a day and prayed, the DURING SESSION OF HOUSE to be United States attorney for the northern windows in his chamber being open Mr. McCORMACK. Mr. Speaker, I ask district of Mississippi, term of 4 years. toward Jerusalem. unanimous consent that the Select Com­ Robert E. Hauberg, of Mississippi, to be Almighty God, may we enter upon this mittee on Astronautics and Space Ex­ United States attorney for the southern dis­ ploration may be permitted to sit during trict of Mississippi, term of 4 years. new day, refreshed in body and spirit, Maurice Paul Bois, of New Hampshire, to and ready to accept the challenge of the general debate in the House for the re­ be United States attorney for the district of most arduous task and the heaviest re­ mainder of the week. New Hampshire, term of 4 years. sponsibility. Mr. MARTIN. Mr. Speaker, reserving Theodore F. Bowes, of New York, to be Inspire us daily to open the windows the right to object, will the gentleman United States attorney for the northern dis­ of our souls toward Thee and may our tell us what is the subject this after­ trict of New York, term of 4 years. whole life be filled with the splendor of James E. Holshouser, of North Carolina, noon? to be United States attorney for the middle Thy presence and peace and a sense of Mr. McCORMACK. Of the select com­ district of North Carolina, term of 4 years. · Thy divine grace and glory. mittee? Sumner Canary, of Ohio, to be United Grant that we may cultivate a larger Mr. MARTIN. Yes. States attorney for the northern district of capacity for all that is noblest and best Mr. McCORMACK. We are still in Ohio, term of 4 years. Clarence Edwin Luckey, of Oregon, to be and may we never be tempted to lower outer space. United States attorney for the district of the lofty standards of life which Thou Mr. MARTIN. I realize the subtleties Oregon, term of 4 years. hast ordained, for we know that nothing of the gentleman's statement, but I am 6914 ,CONGRESSIONAL RECORD - .HOUSE April 22 interested in knowing who is going to be tors of the Air Force Academy beginning porations, to those doing business in the there. tomorrow and ending on Sunday. county or in neighboring counties. Mr. McCORMACK. We have had Dr. The SPEAKER. Is there objection to The bill passed by the Senate is identi­ Vryden this morning. I cannot give the the request of the gentleman from Kan­ cal to the House bill except for two minor gentleman the names now, but there are sas? changes. 3 or 4 other witnesses. There was no objection. Section 2 of the House bill provides Mr. MARTIN. Mr. Speaker, I with­ that where advertising of star routes is draw my reservation of objection. required by law, the route shall be ad­ The SPEAKER. Is there objection to INCREASING CIVIL SERVICE RE­ vertised for bids for at least 20 days ex­ the request of the gentleman from Mas­ TIREMENT ANNUITIES cept where public exigencies require a sachusetts? Mr. MURRAY. Mr. Speaker, I ask shorter period. The Senate amendment There was no objection. unanimous consent to take from the requires such advertising for a period of Speaker's table the bill Iowa. A motion to reconsider was laid on a quorum. Mr. GROSS. Has the Supreme Court the table. By unanimous consent, further pro­ ever ruled on that? ceedings under the call were dispensed Mr. COLMER. Not that I know of ACCIDENTS INVOLVING MILITARY with. may I say to my friend from Iowa. But PLANES since that "legislative" body does not be­ Mrs. ROGERS of Massachusetts. Mr. AMEND NAVY RATION STATUTE TO lieve in segregation, I am sure it would Speaker, I ask unanimous consent to PROVIDE FOR SERVING OLEO­ approve. . address the House for 1 minute and to MARGARINE OR MARGARINE Mr. O'KONSKI. Mr. Speaker, will the gentleman yield? revise and extend my remarks. Mr. COLMER. Mr. Speaker, by direc­ The SPEAKER. Is there objection to Mr. COLMER. I yield to the gentle­ tion of the Committee on Rules, I call man. the request of the gentlewoman from up House Resolution 465 and ask for its Massachusetts? immediate consideration. Mr. O'KONSKI. Does the gentleman There was no objection. The Clerk read the resolution, as fol­ know of any man in the Navy who has Mrs. ROGERS of Massachusetts. Mr. lows: ever requested that oleomargarine be Speaker, I am so glad that the gentle­ served? Resolved, That upon the adoption of this Mr. COLMER. No; but I know of an man brought to the attention of the resolution it shall be in order to move that House the terrible airplane accident that the House resolve itself into the Committee instance where an admiral was asked if happened' in the West. I have repeatedly of the· Whole House on the State of the a man demanded that, what would hap­ spoken of the fact that apparently our Union for the consideration of the bill (H. R. pen to him; and this admiral replied in military planes are not properly policed. 912) to amend the Navy ration statute so as substance that he might find himself There is something terribly wrong. With to provide for the serving of oleomargarine in the brig either on that or some other or margarine. After general debate, which charge. Not because there is anything all of the Air Force planes flying under shall be confined to the bill and continue one department, I fear you will find the wrong about asking for it or its being not to exceed 1 hour, to be equally divided served, but simply because the admiral department that is to be selected for that and con trolled by the chairman and ranking purpose has had more airplane accidents minority member of the Committee on did not want to get into any controversy than the other departments. We ought Armed Services, the bill shall be read for on that matter. to have a complete investigation of the amendment under the 5-minute rule. At Mr. Speaker, can you think of any­ number of deaths that have occurred in the conclusion of the consideration of the thing more simple than this? Why each department and all accidents and bill for amendment, the Committee shall rise should the Navy, of all the armed serv­ and report the bill to the House with such ices, be denied the privilege of serving a special investigation of sabotage. We amendments as may have been adopted, and have been very careless I fear in not hav­ oleomargarine when it would appear to the previous question shall be considered as me that if any of the services were going ing more -searching investigations of ordered on the bill and amendments thereto military accidents. I was told by a news­ to final passage without intervening motion to serve it, it should be the Navy because paperman who looked up the record, of except one motion to recommit. of its long periods of service at sea, and air accidents in the military, that they Mr. COLMER. Mr. Speaker, I yield 30 so forth. so far exceeded the number of civilian minutes to the gentleman from Illinois, Mrs. ST. GEORGE. Mr. Speaker, will accidents on land, that he felt the in­ [Mr. ALLEN], and pending that I yield the gentleman yield? vestigations of civilian air accidents were myself such time as I may require. Mr. COLMER. I yield to the gentle­ handled far better and that he considered Mr. Speaker, if my colleagues will bear woman from New York. the situation extremely dangerous. We with me for just a couple of minutes, I Mrs. ST. GEORGE. Mr. Speaker, I are responsible for the lives of all these will try to get through with my part on am amazed to hear the gentleman speak pilots. I do not know whether it is im­ this rule. If I may have the attention of of oleomargarine being served as a privi­ proper policing or improper training of the gentleman from South Carolina, lege. I never looked upon it as that. I pilots or sabotage but there is something [Mr. RIVERS], the author of the bill, I think the Navy here again only shows radically wrong. Their lives, I feel, are would like to explain the rule and the its good taste in insisting on having but­ on our heads. bill very briefly. ter as long as it is possible to obtain it. Mr. Speaker, this is an open rule. It And I am sure the gentleman will agree provides for 1 hour of general debate that it is quite possible to obtain butter CALL OF THE HOUSE after which the 5-minute rule for in our country. Mr. McGREGOR. Mr. Speaker, I amendments will be in order. This bill, Mr. COLMER. I thank the gentle­ make the point of order that a quorum I understand, is highly controversial, but woman from New York for her observa­ is not present. this bill should not be controversial at tion. I take it that it is reasonable to The SPEAKER. Evidently, no quo­ all. It is about the simplest matter that deduce from her statement that the gen­ rum is present. has been brought up in this House, cer­ tlewoman represents a district wherein Mr. McCORMACK. Mr. Speaker, I tainly in this session. dairy products predominate as against move a call of the House. Mr. Speaker, all this bill does is to oleomargarine. A call of the House was ordered. grant to a segment of our armed serv­ Mrs. ST. GEORGE. The gentleman is The Clerk called the roll, and the fol­ ices, to wit: the Navy, the privilege­ quite right; it is one of the most beauti­ lowing Members failed to answer to get that-the privilege of serving oleo­ ful districts in the United States. their names: margarine. That is the Navy. It does Mr. COLMER. I am quite sure in the [Roll No. 42] not direct the Navy to serve oleomarga­ final analysis when all of the discussion Anderson, Fino Powell rine. It simply says that the Navy may has been had and when the record will Mont. Glenn Preston AuchlnclQss Grant Qute serve oleomargarine. In other words, it have been made, both by those who favor Ayres Gray Radwan puts the Navy in the same category with the dairy industry and those who look Barden Green, Oreg. Rains the balance of the armed services. That with favor on the oleomargarine indus­ Baumhart Griffiths Reed Blatnik Harden Riley is all in the world it does. try that there is not going to be a great Bolling Hays, Ark. Robeson, Va. Mr. HARRIS. Mr. Speaker, will the deal of difference, as I say, in the final Brownson Hoffman Robsion, Ky. gentleman yield? analysis, because if I may be permitted Buckley Holt Roosevelt Burdick Hosmer Scott, Pa. Mr. COLMER. I yield to the distin­ to say so in all candor and in all frank­ Byrd James Shelley guished Chairman of the Committee on ness, the passage of this bill or the de­ Cannon Jenkins Shuford Interstate and Foreign Commerce. feat of this bill is not going to destroy Christopher Lennon Spence Clark Lesinski Staggers Mr. HARRIS. I was wondering if the either the oleomargarine industry or the Coudert McGovern Teague, Tex. Navy was prohibited from serving oleo­ dairy industry. Cretella Macdonald Teller Mr. FULTON. Mr. Speaker, will the Davis, Tenn. Machrowlcz Willis margarine now? Dawson, Ill. Madden Wilson, Ind. Mr. COLMER. It is my understanding gentleman yield? Dies May Withrow of the law that it is prohibited. Mr. COLMER. I yield. Diggs Miller, N.Y. Young Dingell Mitchell Mr. GROSS. Mr. Speaker, will the Mr. FULTON. I think the question Eberharter Patman gentleman yield? might arise as to whether there is any 6916 CONGRESSIONAL RECORD- HOUSE April 22 cottonseed oil in oleomargarine, and I Mr. RIVERS. The gentleman men~ DEPARTMENT OF THE ARMY, am sure the gentleman from Pennsyl­ tioned my name. OFFICE OF THE QUARTERMASTER GENERAL, vania [Mr. GAVIN] and I might be in~ Mr. LAIRD. I will be happy to yield Washington, D. c .• February 24, 1953. Hon. MELVIN R. LAIRD, to the gentleman when I conclude my terested if there is any Pennsylvania House of Representatives. crude oil in it. statement. DEAR MR. LAIRD: This is to confirm tele­ Mr. COLMER. The gentleman from I have an amendment, which I will phonic information submitted to you on Pennsylvania, possibly, knows more offer at the proper time, which adds a February 17, 1953, by Col. Bruce E. Kendall, about that in his district than I do. second section to this bill. The amend­ this office, relative to your inquiry on the But let me say this, that there is a great ment provides that during any period total amount of butter and oleomargarine deai of soybean oil that goes into oleo~ when surplus butter stocks are available purchased by the armed services for the margarine. The fact of the matter is_ to the armed services through the Com­ years 1950, 1951, and 1952, and for the month of January 1953. that statistics will bear out the state­ modity Credit Corporation no oleomar­ ment that there is more soybean oil used garine or margarine sh::tll be acquired for [In pounds] than there is cottonseed and, therefore, the use of the armed services. It pro~ Period Butter Oleomar­ it is not confined to my particular sec~ vides for an exception to acquire limited garine tion so far as that phase of the matter supplies of substitutes for use in special is concerned. But, just let me say this overseas areas upon certification that the 1950_------32,900,000 10,500,000 to you finally because, as I say, this is use of butter in such areas would be im­ 1951_ ------50,000,000 22,000,000 not going to disrupt the economy of any Janu1952_ ary------1953 ______------_ 37,800,000 34,400,000 practicable. 1, 065,000 3, 010,000 segment of our country. You know we This amendment merely provides that have a word around here that has been the stocks of butter which are currently pretty much kicked around in the last As stated in the above referenced con­ owned by our Government will be used versation, butter purchases for the month few years-it is an ugly word-it is a by all of the branches of the Defense of January 1953 show an appreciable decline word-they call it discrimination. I Department, and will be used when that as compared to January 1952, for example. know that you people from the dairy product is in surplus. We require the This is partially a result of stocks on hand land, and I have seen you vote here-! USDA under permanent legislation, the being utilized during this month. A better know that you do not believe in dis~ 1949 dairy price-support law, to purchase comparison can -be gained, therefore, by us­ crimination. I know that you feel that butter when it is in surplus. This very ing the annual figures. this great arm of our armed service, the year the Commodity Credit Corporation Sincerely yours, Navy, should have the same privilege has purchased butter. This butter is WM. J. McDoNALD, that is enjoyed by the other segments made available throughout the United Colonel, QMC, Executive Officer. of our armed services. When all is said States on various welfare programs, Mr. LAIRD. Mr. Speaker, since 1954, and done, and when all the speeches are school-lunch programs, and has been -when section 202 of the Agricultural Act made on both sides, and when the record shipped outside the continental United of 1949 was amended by this Congress, is made, and maybe they will serve some States in giveaway programs. . directing the Defense Department to good purpose when you get home in It seems to me that when our Gov~ make use of stocks of butter which were the primaries and next fall-but, on the ernment already owns stocks of butter in the hands of the Commodity Credit other hand, if your people really knew that the Defense Department should not Corporation, certainly there is a much what was involved in this thing, I sus~ be allowed to use the taxpayers' dollars different story that has unfolded. The pect that they would not appreciate the to buy an inferior product. Laird amendment in the 2d session of time that has been taken in your making Section 202 of the Agricultural Act of the 83d Congress required the Defense speeches on this as much as you think 1949, as amended by the 83d Congress, Department to regularly report to the they do. The rule and the bill should provided that the Defense Department Congress on the use of CCC butter and be adopted. could have any surplus butter over their dairy products. Mr. Speaker, I reserve the balance of normal requirements at competitive Here is a report on the open market my time. prices by purchase from the Commodity purchases of butter and the substitutes Mr. ALLEN of Illinois .. Mr. Speaker, I Credit Corporation. since 1951: yield 10 minutes to the gentleman from In January 1953, when I first came to DEPARTMENT OF THE ARMY, Wisconsin [Mr. LAIRD J. OFFICE OF THE QUARTERMASTER GENERAL, Mr. LAIRD. Mr. Speaker, the bill Congress representing a district in cen­ tral Wisconsin, I took it upon myself to Washington, D. C., February 2, 1955. which we have before us today is indeed Hon. MELVIN R. LAIRD, bad legislation in this 2d session inquire about the purchases made by the Department of Defense in that month. House of Representatives. of the 85th Congress. It is bad legis­ DEAR MR. LAmD: I have received your letter lation because we as taxpayers of the Commodity Credit Corporation was pur~ chasing butter under the support pro­ of January 25, 1955, requesting information United States and the people that we regarding total purchases of butter and mar­ represent back in each of our 435 Con­ gram in January of 1953. I questioned garine for the armed services during the gressional Districts own several million the Defense Department about the years 1953 and 1954. pounds of butter. This butter is being amount of substitutes that they had pur­ Prior to 1953 the Army purchased both stored by the Commodity Credit Cor~ chased in that same month of January butter and margarine for Army and Air 1953. I found that the Defense Depart­ Force use depending upon local troop prefer­ poration today. Certainly this butter ence. In 1953 pursuant to an agreement should be used before the Defense De­ ment purchased 3,010,000 pounds of sub­ with the Commodity Credit Corporation the partment starts purchasing substitutes. stitutes in that particular month, com­ Quartermaster Corps, Department of the It has often been said that "the ways pared with 1,065,000 pounds of butter. Army, which is responsible for the central of government are sometimes strange." In other words, at the time when the purchase of subsistence for the armed serv­ Certainly that is the case here today as Commodity Credit Corporation was pur­ ices, began obtaining Commodity Credit we give consideration to this bill in the Corporation butter for troop issue for the chasing millions of pounds of butter for Army and Air Force in lieu of margarine. House of Representatives. On one side storage, our Defense Department was This butter was for both domestic and over­ of the Potomac we are today urging the purchasing three times as much substi­ seas requirements, with the exception of Pentagon to go out and purchase a sub­ tutes as they were purchasing butter. those areas lacking refrigeration facilities stitute product, and on the other side of where canned margarine was issued because the Potomac we are, under the 1949 How silly can we be in properly using the a suitable canned butter was not available. Agricultural Support Act continuing to taxpayers' dollars? Since the Department of the Navy is pro­ tell the United States Department of I ask unanimous consent to insert lists hibited by law from using oleomargarine for troop feeding, it did not participate in the Agriculture to buy butter which is pro~ of the purchases which were made in this particular period of butter and oleo­ use of surplus butter procured under the duced in surplus. 1953 agreement. Normal military require­ Mr. RIVERS. Mr. Speaker, will the margarine by the Department of Defense ments for butter for all services continued gentleman yield? and other correspondence relating to be met by the purchase of butter in the Mr. LAIRD. May I finish my state~ thereto. United States on the open market except ment. The SPEAKER. Is there objection? for some overseas requirements. However, 1958 CONGRESSIONAL RECORD- HOUSE 6917, since October 31, 1954, pursuant to an agree­ ment between the Quartermaster General United States open-market purchases for armed services and the Commodity Credit Corporation, BUTTER under the authority of Public Law 690, 83d Congress (the Agricultural Act of 1954). butter, in addition to the quantities usually For Army and Air Force For Navy and Marine Corps procured in the normal channels of trade, Year is being obtained from the Commodity Approxi- Approxi- Credit Corporation, without reimbursement, Estimated mate Estimated mate for use by the Army, Air Force, Navy, and Pounds cost average Pounds cost average cost per cost per Marine Corps. pound pound Although substantial quantities of butter 1951 ______were procured in the United States for 33,370,572 $23,936,474 overseas use, the European and Far East 1952 ______$0.72 17, 994,419 $12, 614, 505 $0.70 1953 ______16,660,787 12,402,310 . 74 21, 149, 660 15,916,970 . 75 Commands were purchasing a portion of 1954 ______10,875,111 7, 635, 115 • 70 16,715,006 11,263,719 .67 their resale and troop issue requirements of 1955 ______32,400,000 20,934,518 .64 15,629,202 10,098,952 .65 butter in their respective areas when readily 11, 738,129 6, 714,931 . 57 14, 170, 593 8, 767,541 .62 1956_ ------13,756,314 8, 646,395 .63 14,195,790 9, 978,103 . 70 available, pursuant to authorization granted 1957------(I) (I) (I) (1) (1) (1) under the provisions of the Department of Defense Appropriation Act, which permitted the purchase of perishable foods from over­ MARGARINE seas sources by establishments located out­ side the United States for the use of per­ For Army and Air Force For Navy and ¥arine Corps sonnel attached thereto. About October 1, 1954, instructions were issued to those com­ Year to Approxi- Approxl- mands discontinue, upon completion of Estimated mate Estimated mate existing contracts, the procurement of butter Pounds cost average Pounds cost average from foreign sources for troop issue in their cost per cost per areas. Overseas commands now are per­ pound pound mitted to purchase butter from local sources only for resale to authorized commissary 1951______------21,026,234 $4,879,165 $0.23 240,202 $55,516 $0.23 patrons. Since October 1, 1954, butter has 1952 ______------34,114, 101 5, 729,338 .17 338,767 72,293 .21 been obtained from the Commodity Credit 1953 _____ ------19,114,648 3, 377,808 .18 340,570 76,652 .23 1954_------2, 700,000 845,063 .22 193,718 61,649 .25 Corporation at world market prices for troop 1955_ ------205,879 39,985 .19 281,462 49,845 .18 issue in Europe and the Far East. 1956 ______------1, 712,875 293,779 .17 223,996 40,290 . 18 Purchases of butter and margarine by 1957------(1) (1) (1) (1) (1) (I) the Quartermaster Corps for the armed services during 1953 and 1954 were as follows: 111 months, breakdown not available: RUTTER [In pounds] Butter Margarine

Sources Calendar Calendar Total pounds ___ ------______----____ ----______----__ _ year 1953 year 1954 26,070,000 5, 964,000 Estimated cost______------__ ------______$16, 527, 996 $1,047,384 Approximate average cost per pound------$0.63 $0.17 Domestic open market______27, 500, 000 32, 400, 000 Domestic CCC______t 15, 000,000 2 22,000,000 NOTE.-Effective 1957, breakdown by military service no longer available due to establishment of one common Overseas------13, 240, ooo 10, 160, 000 procurement and supply under Single Manager Agency.

MARGARINE This information should reveal what ment an open invitation to purchase in the oleomargarine people are hitting at the open market a cheap s:~bstitute prod­ Domestic open market______, 19, 600, 000 I 3 2, 700,000 in this particular legislation. uct when we already have butter owned We find as to the amount of butter by another agency of this Government is 1 Purchased in lieu of margarine for supply to Army and Air Force troops in continental United States and purchased by the Army and the Air something I cannot understand. Force in 1957, that they purchased a Mr. KEATING. Mr. Speaker, will the o~eit'i~e includes 18,4oo,ooo pounds obtained in lieu of margarine prior to November 1954 and 3,600,000 pound total in the neighborhood of 28 million gentleman yield? purchased at world market prices for troop issue in pounds as compared with a 12-month Mr. LAIRD. I yield to the gentleman EW'ope and the Far East in lieu f foreign purchases. purchase by those 2 branches of the Although complete figures are not yet available for from New York. butter received from CCC under Public Law 690, 83d armed services· of about 7 million pounds Mr. KEATING. Does the gentleman Cong., it is estimated that dW'ing the period Nov .. 1, of substitutes. The Navy in 1956 pur­ 1954, through Jan. 24, 1955, 10,400,000 pounds (not m­ have at hand the exact wording of the cluded in this figure) have been so obtained. chased a total of 14,195,000 pounds of amendment which he will propose to a This quantity represents purchases by brand name butter compared with 223,000 pounds for sale to authorized commissary patrons. No PW'• this bill? chases were made for troop issue purposes. of oleomargarine. Mr. LAIRD. Yes; I do. I appreciate your interest in this matter This change has been brought about Mr. KEATING. Is it long, or would it and if I can be of further service please do by the amendment to section 202 of the be improper to have it read to us now? Agricultural Act of 1945 as amended by not hesitate to call upon me. Mr. LAIRD. It is very short. It the 2d session of the 83d Congress. Respectfully yours, reads: RAY J. LAUX, These were important amendments, be­ Colonel, QMC, Executive Officer. cause we directed the Defense Depart­ Add the following new section: ment to make use of the stocks of butter "SEc. 2. During any period when surplus butter stocks are available to the armed serv­ DEPARTMENT OF THE ARMY, which were currently owned by the Com­ ices through the Commodity Credit Corpora­ OFFICE OF THE QUARTERMASTER GENERAL, modity Credit Corporation, and certainly tion no oleomargarine or margarine shall be Washington, D. c., February 6, 1958. there is no better place for it to be used acquired for use by the armed services or Hon. MELVIN R. LAmD, than by the armed services. That is any branch or department thereof, except House of Representatives. what the authors of this bill are really that limited supplies thereof may be acquired DEAR MR. LAmD: Pursuant to telephone hitting at; they are trying to nullify the for use in special overseas areas upon cer­ conversation February 3 between Miss Scan­ 1954 action of this Congress which has tification that the use of butter in such areas lon of your office, and Mr. George A. Baxter would be impractical." of this office, enclosed is a summary of mili­ increased use of butter by our men in tary purchases of butter and margarine for the military services. Mr. KEATING. In other words, as I the years 1951 through 1957. This Congress in an agriculture ap­ understand the purpose of the gentle­ Respectfully, propriation bill which we passed 4 short man's amendment it would be that, if THOMAS B. EVANS, weeks ago, reimbursed the Commodity this butter is available, as it is now in Brigadier General, USA, Deputy Credit Corporation for certain losses on Government warehouses, they should use Assistant Quartermaster General its dairy purchase program. To now seek that before going out on the open market for Operations. to go ahead and give the Defense Depart- to buy. J

6918 CONGRESSIONAL RECORD- HOUSE April 22 Mr. LAmD. The purpose of this Mr. BYRNES of Wisconsin. I yield food and go into the market ·and spend amendment is to use butter in the De­ to the gentleman from New York. money that we need to keep so badly to fense Department. If butter is being Mr. KEATING. I commend the gen­ get a substitute for butter to sell to the purchased with taxpayers' dollars by the tleman for his fine, sensible statement. military forces of this country? To me Commodity Credit Corporation, then the Has there been any attempt at comput­ it simply does not make sense and is not Defense Department should use ·butter. ing what this bill would actually cost responsible legislation. We should not be buying substitutes the Government, and I mean by that Mr. ALBERT. Mr. Speaker, will the while we have it in storage or surplus. the amount of butter that might other­ gentleman yield? Mr. ALLEN of Illinois. Mr. Speaker, wise be used if we did not pass this leg­ Mr. VURSELL. I yield to the gentle­ I yield 5 minutes to the gentleman from islation? man from Oklahoma. Wisconsin [Mr. BYRNES]. Mr. BYRNES of Wisconsin. No. I do Mr. ALBERT. The departmental re­ Mr. BYRNES of Wisconsin. Mr. not believe you can estimate very accu­ port signed by E. C. Stephan, rear ad­ Speaker, the gentleman from Mississippi rately because so much is left to the miral, United States Navy, for the Secre­ [Mr. CoLMER], suggested that many of judgment of the commanding officers of tary of the Navy, on page 3 of the report our people may not be too grateful for the Navy as to whether they will make says: the time we are consuming in debating the substitution. I cannot understand It is believed that enactment of this legis­ this subject, and in that I agree with why anybody should insist that our lation would result in considerable savings him. I cannot for the life of me, Mr. Navy personnel use substitutes. It to the Government. Speaker, understand the justification for would seem to me they would use the bringing legislation of this nature before best product available and particularly In view of what the admiral said, how the Congress at this time and spending since the Government has it in its own would that be possible? our time on it in view of some of the warehouses. Why under any circum­ Mr. VURSELL. It would not be possi­ really great problems that confront the stances suggest that they use substi­ ble, regardless of what the report says. Congress. We have operated under the tutes? We have butter in great abundance. If present law for a good long time, since Mr. KEATING. The effect of this leg­ we hold it too long it will become rancid. 1933. It has not created any great diffi­ islation is to say: You shall go out and We will be selling it at a great loss. But, culties. We have lived with it in time buy something to serve in place of some­ when it is in good shape for human con­ of war, we have lived with it in time of thing that the Government now owns. sumption and we, the taxpayers, own it, then we should sell it to the military. peace. Mr. BYRNES of Wisconsin. A su­ The facts are that if you could take a Why do we face today such an emer­ perior product which we already own. poll of all the men in the services today gency that we have to spend time on It is crazy. as to whether they would rather have this particular legislation? Even, Mr. Mr. KEATING. It does not make good, pure American butter served to Speaker, if we were to assume, which I sense to me. them rather than oleomargarine, it will not concede, that the present law Mr. ALLEN of Illinois. Mr. Speaker, would be almost unanimous in favor of did create some difficulties, this is a most I yield 5 minutes to the gentleman from butter. And, why not let them have it? inappropriate time, it would seem to me, Illinois [Mr. VURSELLJ. Mr. LAIRD. Mr. Speaker, will the to consider taking this action. With the Mr. VURSELL. Mr. Speaker, I want gentleman yield? Government almost daily purchasing to associate myself with both of the gen­ Mr. VURSELL. I yield to the gentle­ surplus butter and putting it into Gov­ tlemen from Wisconsin who spoke man from Wisconsin. ernment warehouses under the agricul­ against the pending bill and who spoke tural price-support program, it is incon­ in favor of an amendment that will be Mr. LAmD. In answer to the ques­ ceivable to me that we should be con­ tion which was raised a few minutes ago offered by the gentleman from Wiscon­ by the gentleman from Oklahoma, I si:iering legislation which will reduce the sin. market for butter. The price-support As a member of the Subcommittee on would like to state that I doubt whether level of butter has just been reduced, Appropriations for Agriculture some Admiral Stephan even knows that we causing, as we all know, further distress week or two ago we brought a bill to this have an agricultural support program to the dairy industry. Yet, instead of House to reimburse the Commodity under which we are requiring the USDA this Congress spending its time seeking Credit Corporation to the extent of $975 to purchase butter. I doubt if he real­ out new markets for butter, we have pre .. izes that on the day he signed his report million, a little short of a billion dollars, there was butter in the hands of the sented to us today legislation which re­ that we took in losses in an effort to Commodity Credit Corporation. It seems duces the market for butter. shore up the market and to try to bring that oftentimes the Defense Department, Mr. Speaker, how silly can we get? a greater degree of prosperity to the in the hearings that we have conducted Mr. H. CARL ANDERSEN. Mr. farmers of America. The dairy farmer before the Appropriations Committee, Speaker, will the gentleman yield? has been hard hit for a number of years. has not been too good even about their Mr. BYRNES of Wisconsin. I yield Here is a chance to give them some relief own housekeeping as far as materials to the gentleman from Minnesota. as well as all the taxpayers. Now, here and as far as food products are con­ Mr. H. CARL ANDERSEN. Mr. we have legislation that would change cerned. I am amazed at the kind of re­ Speaker, I think the gentleman from the basic law with reference to dairy port that was submitted by the Navy. products and to agriculture; and even Wisconsin is absolutely correct in his Mr. VURSELL. The gentleman is ab­ statement. Why should we squander though we have great stocks of butter that we can legally sell, and the Congress solutely right. time on a bill which certainly is against Mr. H. CARL ANDERSEN. Mr. the best interests of agridulture. has advised the Defense Department to buy butter for the men in the services, Speaker, will the gentleman yield? Mr. SCUDDER. Mr. Speaker, will the we have here a proposition to change Mr. VURSELL. I yield to the gentle­ gentleman yield? the law and the tradition that we have man from Minnesota. Mr. BYRNES of Wisconsin. I yield been following and go into the open Mr. H. CARL ANDERSEN. I wish to to the gentleman from California. market and buy margarine rather than compliment the gentleman upon his Mr. SCUDDER. The gentleman has supply the men in the armed services speech relative to this matter. Does not made a very fine statement. Owing to with the butter that we now own. The the gentleman agree with me that this the fact that we have one of the ·most Members of this House know that we sort of legislation will simply have a fur­ important agricultural products hurt by have been trying to reduce the surpluses ther depressing effect on the dairy in­ this legislation when we are only trying in dairy products. I am advised, and I dustry throughout the United States of to protect the byproduct of another in­ think most of the Members of the House America. dustry, it is asinine to me to pass legis­ know, that we will have a greater sup­ Mr. VURSELL. It will do an injury to lation of this sort. I think we should ply of dairy products, including butter, the dairy farmers, it will further penal­ support the true farmers of our country that will have to be purchased by the ize them when we ought to be trying to in this regard. taxpayers and stored, under the law, in do something to help them and the tax­ Mr. BYRNES of Wisconsin. I thank the coming year than we have in the payers as well. the gentleman. past year. I ask you in the name of Mr. COLMER. Mr. Speaker, I yield Mr. KEATING. Mr. Speaker, will the common sense and good judgment is it 6 minutes to the gentleman from Wiscon­ gentleman yield? wise or good business, to buy an inferior sin [Mr. JOHNSON]. I

1958 . CONGRESSIONAL .RECORD- HOUSE 6919 Mr. JOHNSON. Mr. Speaker, I am Mr. JOHNSON. I should like to state Under present statutes and-procedures, opposed to the rule and to the bill. to the gentleman from Mississippi that butter is sold to the Army for use over· The Ninth District of Wisconsin, which I was not in Congress at the time that seas at the export price of 39 cents a I have the honor to represent in Con­ the Air Force and the Army were allowed pound f. a. s. Also, with respect to butter gress, is one of the most productive dairy the use of oleo. utilization in Army camps and establish· areas in the United States. Many plants But, I did tell the House that if I were ments in this country, the Army buys serve fluid milk markets which include making any recommendations for mak­ its normal use level from private sources. - the Twin Cities and Chicago. Our man.. ing it uniform, I would change the law If it desires to use more butter, the CCC ufacturing plants, all of which manufac· so that there would not be any oleo used donates additional butter to the Army . ture dairy products from fresh milk in any of the Armed Forces. Does that for such extra use in this country. Such gathered from the farms, produce all answer the gentleman's question? utilization of CCC butter stocks by the the major dairy products su~h as butter, Mr. COLMER. No. I think the gen­ Army has been of material assistance in cheeses, nonfat dry milk, dry whole tleman would have gone further, since keeping the inventories of Government milk, and others in large volume. our friend is a special pleader for his dairy products at lower levels than would This bill is apparently designed to dairy industry, if he had his way there otherwise have been the case. With amend the basic Navy ration statute to would not be any oleomargarine at all. respect to addi tiona! use here in this permit the use of oleomargarine in the Mr. JOHNSON. That is right. country, it has permitted the use at.no ' Navy ration as well as butter. The law Mr. SCUDDER. Mr. Speaker, will the added cost of large quantities of butter is permissive, not mandatory, in this re· gentleman yield? at considerably improved levels of diet gard. There is nothing in the bill which . Mr. JOHNSON. I yield. for our service personnel. would limit the purchase of oleomarga .. Mr. SCUDDER. Is 'it not also true For the marketing years ending March rine below the full amount of the pre· that if this white manufactured sub­ 31, 1955, 1956, and 1957, the CCC trans .. scribed ration. stance that has been colored to look like ferred to the Army 39.1 million pounds, In report No. 690, 85th Congress, 1st butter were not colored, they would 32.8 million pounds, and 23.9 million session, it is noted that H. R. 912 would not have any use of it whatever in the pounds of butter, respectively. Trans· place the Navy and Marine Corps in the service? fers of cheese and nonfat dry milk have same position as the other armed serv­ Mr. JOHNSON. I agree with the gen.. not reached very high levels, amounting • ices and passage of the bill, approved by tleman. to about 2 million pounds of cheese per the Navy Department, is recommended Mr. MARSHALL. Mr. Speaker, will year on the average, and between 100,000 by the committee. the gentleman yield? and 300,000 pounds of nonfat dry milk. Mr. JOHNSON. I yield. Unfortunately we do not have the fig .. The report also includes a letter from Mr. MARSHALL. I dislike to inter­ ures showing how much of the butter a Navy officer which claims that certain rupt the gentleman because he is mak­ transferred to the Army is actually used economies might be achieved due to the ing a very worthwhile statement, as he by the Navy. As we understand the mat.. purchase of oleo as well as butter. How· always does. However, I am prompted ever, I believe it can be shown that sav.. ter, the Army purchases most of the ing the Navy money by allowing it to to make this comment and that is that butter for the other branches of the / the other services have much occasion armed services, and no doubt the other purchase some oleo instead of butter to get out where they get their shoes services, including the Navy, have used will probably cost the Federal Govern­ dirty and because of the type of service some of the butter transferred to . the ment more than the present program of in the Navy, the Navy certainly does Army by the CCC from United States.. feeding Navy and Marine servicemen the not have any need for boot grease as do owned stocks. more desirable, highly nutritious, natural some of the other branches of the serv­ While it may be true that, so far as spread for their bread. ices. That may be part of the reason. the budget of the Navy is concerned, In order to be fully accurate in report­ Mr. JOHNSON. I thank my friend permitting the use of oleomargarine in ing alleged savings it would be necessary from Minnesota. the Navy ration might be a saving of for the Navy to furnish information on The volumes of price support pur· money from that budget, it is also true how much butter would be furnished chases by the CCC have been at rela· that, from the overall budget of this given levels of personnel, how much tively high levels in recent years. For Government point of view, there would oleomargarine would be substituted in the marketing years ending March 31, be no saving. The butter that is re­ place of butter, and the difference in 1955, 1956, 1957, and 1958, purchases of placed by oleomargarine if this bill price between butter and the cheap butter were: 210.5 million pounds, 177.6 should become law would no doubt be spread. million pounds,154.4 million pounds, and purchased by the CCC under the price· In registering my opposition to this 215 million pounds, respectively. Pur­ support program, since purchase of oleo bill, I wish to call the following facts to chases of cheese for the comparable by the Navy would take away part of the your attention: periods were 153.3 million pounds, 157.4 current domestic market for our butter. First. The Commodity Credit Corpo­ million pounds, 197.2 million pounds, Actually, the probable result would be ration, United States Department of Ag­ and 251 million pounds. Purchases of that just that much more CCC butter riculture, has· for some years conducted a nonfat dry milk during the same periods would be given away abroad, and our price support operation for the producer were 523 million pounds, 623.8 million Navy personnel would have less butter of manufacturing milk and butterfat. pounds, 798.5 million pounds and 831 to eat due to substitution of oleomar.. In conducting such price support pro­ million pounds. garine, with no net saving to the United gram for manufacturing milk and but­ For the period April 1, 1952 through States Government. terfat, the price support is established March 31, 1957, approximately 1.3 billion In view of all these facts and consid­ and effectuated by the Commodity Credit pounds of butter, 1.25 billion pounds of erations, we oppose the passage of H. R. Corporation standing ready to purchase, cheese, and 3.6 billion pounds of nonfat 912. We think the bill would not result at announced prices, all butter, cheddar dry milk have been taken out of the mar· in any improvement in Navy rations­ cheese, and nonfat dry milk which ket by the CCC under the price support as a matter of fact, it is our view that manufacturers cannot sell to their com· program for manufacturing milk and the ration would be harmed by this bill, mercia! customers at the announced butterfat. no money will be saved by the Govern­ prices. ' As of April 2, 1958, the CCC had on ment, although it may be that as far as Mr. COLMER. Mr. Speaker, will the hand 63,611,600 pounds of uncommitted the Navy Department budget is con­ gentleman from Wisconsin yield very stocks of butter. Naturally, commodities cerned, there would be some saving briefly? purchased by the CCC are disposed of shown, and there seems to us to be little Mr. JOHNSON. I am glad to yield to in a number of channels provided by reason, with butter in such heavy sur.. the gentleman from Mississippi. Congress. Uses of the several commodi­ plus and the subject of heavy price sup.. Mr. COLMER. Mr. Speaker, I wish ties include commercial export sales at port purchases by the CCC, for a part the gentleman would give us some justi­ prices deemed competitive with lower of the normal commercial market for fication, if he has any, why the Navy world price levels, domestic and foreign our butter to be eliminated by this bill should be denied the same privilege that relief donations, and transfers to the and replaced with oleomargarine. the other armed services, the Army and armed forces through the United States We believe there is a great deal of mis· the Air Force now have? · Army. information throughout the country as CIV-436 6920 CONGRESSIONAL RECORD- HOUSE April 22 .to which areas benefit most from the help one segment of agriculture at the Mr. H. CARL ANDERSEN. The bill production and use of oleomargarine. expense of another. More than that, I will result in lower consumption of but­ Many people are under the impression have always supported good farm legis­ ter, regardless of what amendments that oleomargarine is manufactured lation without regard to the fact that the might be adopted. from cottonseed oil. For the benefit of bills before us meant nothing to farmers The SPEAKER pro tempore. The the Congress, we would like to state that in my area. time of the gentleman from Minnesota on the basis of figures we have at the Now, today, we see a measure brought has expired. · present time, most oleomargarine is before us which would possibly help.­ Mr. COLMER. Mr. Speaker, I yield 2 made from soybean oil-not cottonseed and relatively little at that-one group of minutes to the gentleman from Minne­ oil. Department of Agriculture statis­ commodities at the expense of another. sota [Mr. WIER]. tics for 1956 show that 67.8 percent of Everyone agrees that our dairy industry Mr. WIER. I think most of the Mem­ the total oil used in making oleo was soy­ is in very difficult conditions economi­ bers of the House are aware of the fact bean oil while only 25.3 percent was cally, and yet we see this proposal being that I come from an industrial city, a cottonseed oil. seriously considered and we know that it great city of about 550,000 people, con­ The SPEAKER. The time of the will destroy an important market for sumers in the main. But I say to you gentleman has expired. butter. that this is a most dismaying moment. Mr. ALLEN of lllinois. Mr. Speaker, Why, Mr. Speaker, do I oppose the One of the greatest economic factors of I yield 1 minute to the gentleman from rule? Simply because I know the eco­ the great State of Minnesota is the dairy Minnesota [Mr. H. CARL ANDERSEN]. nomic facts about both butter and mar­ industry. During these days when we Mr. H. CARL ANDERSEN. Mr. garine. Butter has a very limited mar­ are trying to recover from the reces­ Speaker, the gentleman from Wiscon­ ket. It has very limited uses, and all the sion, I have heard Member after Mem­ sin [Mr. BYRNES] made a comment rela­ research in the world will not open up ber rise here in the well to debate the tive to this legislation, "How silly can we any new outlets for butter. But what agricultural situation and several bills get?" · about margarine? This product, made which are providing some relief and some Mr. Speaker, I am truly amazed that from vegetable oils which are equally aid to the farm population of this coun­ this proposal should even be brought important to American agriculture, has try. In my opinion, here is a good place before us. These walls have echoed for already invaded the butter market and to exhibit that sympathy for our dairy weeks with speeches in behalf of dairy has competitively destroyed many a farmers. I know we will all be cam­ farmers whose price supports were being dairy farmer. This is not at all neces­ paigning for the farm vote, but what reduced by the Secretary of Agriculture. sary, and anyone familiar with the sub­ are we doing here today to justify us First, we heard the criticism of the pro- ject knows it. for that vote? In the first place, we just . posed reduction. Then, we heard Vegetable oils have many outlets and got through with a series of cuts in the speeches in behalf of bills introduced to many uses. They are marketed for hu­ dairy price supports. Particularly is it void the announced reduction. Finally, man consumption and for industrial use. difficult for the dairy farmer to carry on we debated the resolution to freeze price They have a great and varied market much longer under the provisions with supports at the 1957 level. here at home, and there is an expanding which we are destroying or in this case After all that, we listened to various marke~ abroad. Butter is extremely actually giving away his market. speakers castigate Secretary Benson and difficult to store, while the oils may be Mr. JONES of Missouri. Mr. Speak­ the President for the veto of the freeze safely and cheaply stored over long er, will the gentleman yield? resolution. Now, we hear pleas for ac­ periods of time. Butter must be refrig­ Mr. WIER. I yield. tion to override the veto. erated in storage and transit, while the Mr. JONES of Missouri. Is the gen­ After all this, I repeat that I am really oils may be stored and moved in bulk tleman also aware that Minnesota is the amazed to see this measure come before with no special handling required. second largest producer of soybean oil us to strike one more blow against the Time does not permit more than brief in the Nation? Two million six hun­ Nation's dairy farmers. reference to the many reasonable argu­ dred and ninety-seven thousand pounds I was one of the authors of the bills to ments against this proposal, Mr. Speaker, of soybean oil went to the manufacturers reverse the Secretary on his program of but I do hope the House demonstrates its of margarine. lower support prices for dairy. I voted usual sense of responsibility and votes Mr. WIER. I am well aware of that, for the freeze resolution, and I also voted down the rule. · because I have one county in my dis­ against the motion to recommit which I do not think any reasonable person trict that raises a large volume of soy­ would have stripped the resolution of wants to hurt the dairy industry, and I beans, and I have to take this position everything but the dairy protection. I certainly hope that no colleague of mine to try and save our dairy industry. I fully intend to vote to override the veto would even seriously consider denying am defending a major industry in our if given an opportunity to do so. our service men and women the little pat State, I hope. Until the measure before us came up, of butter. They are entitled to the best Mr. JONES of Missouri. Did the gen­ I had begun to believe that the Congress we can offer, and I do not think we should tleman know that some people prefer was at long last uniting to do something force upon them a substitute for a quality margarine to butter? for American agriculture. I had begun product like butter. Mr. WIER. I answered that when I to hope that the unfortunate divisions My district is one of the great soybean­ said that I represent about 500,000 con­ within the house of agriculture were producing districts of our Nation. Good­ sumers in Minneapolis. coming to an end, and that we would see ness knows, I want to do all I can to Mr. JONES of Missouri. And they no more of the unhappy efforts of one develop and expand markets for vege­ like margarine too, do they not? commodity group to gain advantage at table oils and vegetable-oil products. Mr. WIER. Some, yes; but I am go­ the expense of another. But, Mr. Speaker, I never have and I will ing to support the amendment which Personally, I have never been party to not now try to accomplish something for will be offered by the gentleman from any of these selfish efforts. I have sup­ one segment of agriculture at the expense Wisconsin, and if that does not pass I ported farm legislation for the South of another. We are opening up new am going to vote against this bill. just as readily and just as vigorously as markets and uses for oils, and I am all The SPEAKER pro tempore. The I did for the North and the Midwest. 1 for that. But we should defeat this rule time of the gentleman from Minnesota remember not many years ago joining and, by all means, keep from damaging has expired. my colleagues from the South in the further our great dairy industry. Mr. COLMER. Mr. Speaker, I yield fight to save peanuts as a basic com­ Mr. JONES of Missouri. Mr. Speaker. 2 minutes to the gentleman from Mis­ modity. Just last year, I took the floor will the gentleman yield? souri [Mr. BROWN]. to plea for support for the Poage amend­ Mr. H. CARL ANDERSEN. I yield. Mr. BROWN of Missouri. Mr. ment to the corn bill we had before us Mr. JONES of Missouri. How are we Speaker, is it not apparent what we are because I wanted to help the South with going to get an opportunity to act on the getting into if we adopt this rule? It its feed grain problems. amendment which is proposed by the is the old margarine-versus-butter war Never, Mr. Speaker, in my 20 years in gentlemli\n from Wisconsin [Mr. LAIRD] that has waged in the State legislatures this House, have I lent my voice or my if we do not pass the rule and get to and on the floor of this Congress for vote to any legislative effort which would the bill? years. I wonder if we are really going to 1!J58 -CONGRESSIONAL RECORD- HOUSE 6921 accomplish anything by rehashing that I agree that it is quite unusual that or 2 ounces ot cofl'ee or one-hal! ounce ot battle that has left so much bitterness this legislation should have to come to tea; 4 ounces o! evaporated milk or 1 ounce in its wake in the past. To adopt this the floor. I suppose some of our guests of powdered milk or one-half pint of fresh rule is to further divide us, unneces­ in the gallery -are wondering just what milk, together with 1.6 ounces of butter- sarily. Missouri is an excellent exam­ on earth has happened to law in the What we are talking about here to­ ple. Here within a few minutes of time, United States that it should be neces­ day is that 1.6 ounces of butter to be we have a Member from southwest Mis­ sary for the Congress of the United issued directly to the members of the souri where dairying is the primary farm States to be considering a provision of United States Navy. operation and the distinguished Mem­ this kind. What happens? There are times ber from the southeastern part of Mis­ As I said earlier, I am interested in when refrigeration is not adequate souri where cotton and soybeans are the neither margarine nor butter; I am in­ aboard a ship to take with them all of primary farm commodities, taking oppo­ terested in the United States Govern­ the butter that is going to be needed site positions in this debate. Actually, ment. on a cruise. As a result, they do not though, if this were a butter versus mar­ The purpose of this bill is to relieve get butter, they get no substitute; they garine proposition, Missouri has settled the Navy of a serious administrative simply go without a spread. that question. The decision has been difficulty insofar as butter is concerned. There are areas in the world into which made. By act of the State legislature I sincerely trust, and I believe that the fresh butter cannot be taken. It just margarine is now a recognized commod­ House is willing to give us an oppor­ will not stand up, they tell me. The gen­ ity on the grocers' shelves in Missouri. tunity to explain what the situation is tleman from Massachusetts [Mr. BATES] The war is over, but much bitterness as it affects the United States Navy. is sitting here. He was a former officer remains. It is one of the very interesting little of the Supply Corps of the Navy. During To me the issue here is not marga­ historical facts in the United States with the hearings be pointed out there was rine versus butter, and the relative mer­ reference to the Navy. some sort of butter with a certain addi­ its of each. If you will check into the We have heard many songs and tive to make it stand up and of all of record, I think you will find that the stories with reference to the dangers the crimes and penalties inflicted upon amount of either butter or margaine in­ encountered by the men who go down man the use of that kind of butter was volved in this legislation is an infinitesi­ to the sea in ships. But the wind and probably the worst. mal part of the total supply that is mar­ the waves are not the only dangers en­ Mr. Speaker, this is not going to affect keted each year. Neither butter pro­ countered by the men who go down to the sale of butter in the United States. ducers nor soybean and cotton producers the sea in ships; as a matter of fact, It is simply going to provide an alterna­ will be enriched or impoverished by per­ one of the ancient dangers was that of tive for the Navy to be in a position to mitting the Navy to buy margarine. diet, scurvy, and beri-beri, as a result provide a spread. We ask you to adopt The overriding factor in this debate of eating preserved foods and the lack this rule. Let us explain this thing so is this: Nothing irritates a taxpayer like of fresh vegetables, and things of that that we can go into the questions which bringing into one door of the Govern­ kind. If you let us consider this bill then we can explain all this to you. It have been raised here. ment a new product at a new price while, Mr. LAffiD. Mr. Speaker will the gen­ at another door, the Government shovels all started back in 1905 when Theodore Roosevelt became President of the tleman yield? out perfectly good products that are said Mr. KILDAY. I yield to the gentle .. to be in surplus at about 10 cents on the United States. He had been Assistant Secretary of the Navy. That was the man from Wisconsin. dollar. The Government has butter­ Mr. LAffiD. Is the gentleman making lots of it--some $50 million worth in era of the great white fleet when Presi­ dent Roosevelt did everything to pro­ the point that the Navy cannot carry CCC storage. mote the Navy and sent the ships on a butter in sufficient quantities to last over I think that by administrative order a long period of time? the President of the United States and trip around the world. President Roosevelt at that time did Mr. KILDAY. I am told that on occa­ the Secretary of Defense ought to get sion that does happen. together with the Department of Agri­ everything within his power to promote the power, the influence and the prestige Mr. LAIRD. I happen to have been culture and the Commodity Credit Cor­ a supply officer responsible for feeding poration and see if they cannot find of the United States Navy. In order to some way to use more of the butter that make it attractive as an outstanding naval personnel during World War II. example of what would be provided at We were in the China Sea for almost 90 is now in stockpile and make use of it days and we never went without butter. to fill American needs. Must all sur­ sea, he secured the passage of a law plus butter be sent overseas, and sold through the United States Congress Mr. KILDAY. Maybe the gentleman at discounts plus transportation costs? which set out just exactly what a can enlighten us .on that type of canned That to me is the big factor in this . sailor was to be fed each day. ·The butter I was trying to describe a whil-e proposition. Navy Ration Act was passed in ord~r ago. Was that the type of butter used Pending such administrative action, to set out in detail what should be fed at that time? the Congress is using poor judgment to to the sailors of the United States Navy. Mr. LAIRD. We had that butter but it encourage any agency of Government to If you will look at page 4 of the re­ was not even necessary for us to use all buy an alternative product when the port you will find the quotation of that of it. taxpayers have money invested in some law as it stands today. It has been Mr. KILDAY. You see, there are ques­ 60 to 80 million pounds of butter. amended a few times but never, of tions involved here, Mr. Speaker, which Let's defeat this rule and talk about course, as to margarine because that justify granting of. the rule in order that this when the Government no longer was a little bit too hot. Amendments we may debate this subject on the floor holds surplus butter. permitted fruit concentrates instead of of the House. Mr. COLMER. Mr. Speaker, I under­ fresh fruit or fruit juices and it goes It is a strange thing that our law has stand the gentleman from Illinois has on to say: gotten into this condition. It was never no further speakers, and that I have 9 The Navy ration Issued to each person intended in adopting the Navy Ration minutes remaining. entitled thereto shall consist of the follow­ Act that there would be any preferences ing daily allowance or provisions: 8 ounces between butter and margarine. It was The SPEAKER. That is correct. of biscuit or 12 ounces of soft bread or Mr. COLMER. Mr. Speaker, I yield adopted at a time when there was a sin­ 12 ounces of flout; 12 ounces of preserved to the balance of my time to the gentleman meat or 14 ounces of salt or smoked meat cere effort or attempt made provide a from Texas [Mr. KILDAY] to conclude or 20 ounces of fresh meat or fresh fish balanced ration for the Navy to avoid the debate. or poultry; 12 ounces of dried vegetables the hardships and perils which went Mr. KILDAY. Mr. Speaker, this bill or 18 ounces of canned vegetables or 44 with going down to the sea in ships. But has been reported by the Committee on ounces of fresh vegetables; 4 ounces of times have changed, we have moved on, the Armed Services, and I have been des­ dried fruit or 10 ounces of canned fruit or so that we either give this alternative to 6 ounces of preserved fruit or 16 ounces of the Navy or in instances they go without ignated to present it. fresh fruit or 6 ounces of canned fruit or I am not concerned with the produc­ vegetable jUices or 1 ounce of powdered a spread. tion or sale of either margarine or fruit juices, or six-tenths of an ounce of There have been amendments sug­ butter. concentrated fruit juices; 2 ounces of cocoa gested from both sides of the aisle. 6922 CONGRESSIONAL RECORD- HOUSE April 22 I say, adopt the rule; let us debate the Kirwan Nicholson Scrivner· Thompson, N.J. Willis Withrow Kitchin Nimtz Seely-Brown Walter Wilson, Ind. Young bill, consider the amendments, and then Kluczynskl Norrell Seiden either vote it up or down. This proposi­ Lafore O'Brien, Dl. Sheehan So the resolution was agreed to. tion llas been pending here for many Landrum O'Brien, N. Y. Sheppard The Clerk announced the following Lankford O'Hara,Dl. Sheeley pairs: years, and it is not going to be settled Latham O'Neill Sieminski until we face it squarely and get it settled Lesinski Osmers Sikes On this vote: once and for all. Libonati Passman Siler Mr. May for, with Mr. McCarthy against. Lipscomb Patman Smith, Calif. Mr. Cooley for, with Mr. Staggers against. It :Ls true that the Army and the Air McCormack Patterson Smith, Miss. Force have no difficulty with this, but it McDonough Pelly Springer · Mr. Coudert for, with Mr. Withrow against. comes the other way around. It is not McMillan Perkins Sullivan Mrs. Harden for, with Mr. Taylor against. McVey Philbin Thomas Mr. Brownson for, with Mr. Reed of New that they are granted any privilege. I Machrowicz Pilcher Thompson, Tex. York against. am not talking about any privilege in­ Mack, Ill. Pillion Thornberry Mr. Wilson of Indiana for, with Mr. Bur­ volved in eating margarine. I wish my Magnuson Poage Tollefson dick against. Mahon Porter Udall Mr. Buckley for, with Mr. Blatnik against. weight was such that I could eat either Mailliard Preston Ullman one or the other, but unfortunately that Martin Price Vanik Mrs. Granahan for, with Mr. McGovern is not true. But, if we get the rule here, Matthews Rabaut VanZandt against. then we will be in a position to debate Merrow Ray Vinson Mr. Green of Pennsylvania for, with Mr. Michel Rhodes, Ariz. Vorys Byrd against. these matters. There is no ration law Miller, Calif. Rhodes,Pa. Wainwright Mr. Thompson of New Jersey for, with Mr. for the Army and the Air Force. There Mills Rivers Watts Hays of Arkansas against. is no provision of law as to what a soldier Minshall Roberts Whitener Mitchell Rodino Whitten Until further notice: or airman shall be fed. There is only a Moore Rogers, Colo. Wigglesworth provision of law as to what a sailor and Morano Rogers, Fla. Williams, Miss. Mr. Morrison with Mr. Simpson of Penn- a marine shall be fed. It comes under Morgan Rogers, Tex. Wilson, Calif. sylvania. Morris Rooney Winstead Mr. Thompson of Louisiana with Mr. Fino. this Navy Ration Act. Moss Rutherford Wolverton Mr. Roosevelt with Mr. Auchincloss. Now, please adopt the rule and let the Moulder Sadlak Wright Mr. Boggs with Mr. Hoffman. Navy present its case. Multer Santangelo Yates Mr. Bolling with Mr. Cretella. Mumma Saylor Younger Mr. COLMER. Mr. Speaker, I move Murray Scherer Zelenka Mr. Macdonald with Mr. Miller of New York. the previous question. Natcher Scott, N.C. Mr. Powell with Mr. Radwan. The previous question was ordered. Mr. Rains with Mr. Scott of Pennsylvania. The SPEAKER. The question is on NAY8-130 Mrs. Green of Oregon with Mr. Jenkins. Alger Dooley Miller, Nebr. Mr. Grant with Mr. Reece of Tennessee. the resolution. Allen, Ill. Evins Montoya Mr. Dies with Mr. Curtis of Massachusetts. The question was taken; and on.a di­ Andersen, Ford Neal Mr. Dawson of Illinois with Mr. James. H. Carl George Norblad Mr. Lennon with Mr. Holt. vision (demanded by Mr. H. CARL AN­ Gregory O'Hara, Minn. Anderson, Mr. Teller, with Mr. Ayres. DERSEN) there were-ayes 51, noes 48. Mont. Gross O'Konski Mr. H. CARL ANDERSEN. Mr. Avery Gwinn Ostertag Mr. Riley with Mr. Robsion of Kentucky. Speaker, I object to the vote on the Bailey Hagen Pfost Mr. Young with Mr. Baumhart. Baker Harrison, Nebr. Poff ground that a quorum is not present and Baldwin Hays, Ohio Polk Mr. BAKER and Mr. BROYHILL I make the point of order that a quorum Baring Healey Prouty changed their votes from "yea" to "nay." is not present. Bass, Tenn. Henderson Quie Becker. Hiestand Rees, Kans. Mr. MAILLIARD changed his vote The SPEAKER. Evidently a quorum Bennett, Mich. Hill Reuss from "nay" to "yea." is net present. Bentley · Hoeven Riehlman The result of the vote was announced The Doorkeeper will close the doors, Berry Holmes Robison, N.Y. Betts Horan Rogers, Mass. as above recorded. the Sergeant at Arms will notify absent Bosch Hull St. George The doors were opened. Members, and the Clerk will call the roll. Bow Hyde Saund The question was taken; and there Bray Jensen Schenck Breeding Johansen Schwengel were-yeas 232, nays 130, not voting 66, Brown, Mo. Johnson Scudder SMALL BUSINESS CAPITAL as follows: Brown, Ohio Judd Simpson, Ill. ACT OF 1958 (Roll No. 43] Broyhill Kearney Sisk Budge Keating Smith, Kans. Mr. TALLE. Mr. Speaker, yesterday YEAS-232 Bush Kee Smith, Va. I introduced a bill, H. R. 12057, pertain­ Abbitt Colmer Gathings Byrnes, Wis. Kilburn Stauffer Abernethy Corbett Gavin Carrigg Knox Taber ing to small business and the Small Busi­ Adair Cramer Glenn Cederberg Knutson Talle ness Administration. I ask unanimous Addonizio Curtis, Mo. Gordon Chamberlain Krueger Teague, Calif. consent that I be permitted to insert a Albert Dague Gray Chelf Laird Tewes section-by-section analysis of the bill Alexander Davis, Ga. Grimn Chenoweth Lane Thomson, Wyo. Allen, Calif, Delaney Grimths Christopher LeCompte Trimble and also a summary statement at this Andrews Dellay Gubser Clevenger Loser Tuck point in the RECORD. Anfuso Dent Hale Co ad McCulloch Utt The SPEAKER. Without objection, it Arends Devereux Haley Cunningham, McFall Van Pelt Ashley Dingell Halleck Iowa McGregor Vursell is so ordered. Ashmore Dollinger Hardy Cunningham, Mcintire Weaver There was no objection. Aspinall Donohue · Harris Nebr. Mcintosh Westland Barrett Dorn,N. Y. Harrison, Va. Curtin Mack, Wash. Wharton SECTIONAL ANALYSIS OF SMALL BUSINESS Bass, N.H. Dorn, S.C. Harvey Dawson, Utah Marshall Wlclnall ACT OF 1958 Dennison Mason Wier Bates Dowdy Haskell TITLE I. TITLE, POLICY, PURPOSE, AND Beamer Doyle Hebert Denton Meader Williams, N.Y. Beckworth Durham Hemphill Derounian Metcalf Zablocki DEFINITIONS Belcher Dwyer Herlong Dixon Miller, Md. Section 101: The act will be cited as the Bennett, Fla. Eberharter Heselton NOT VOTING-66 "Small Business Capital Act of 1958." Blitch Edmondson Hess Section 102: The policy of Congress is to Boland Elliott Hillings Auchincloss Fascell Morrison Bolton Engle Holifl.'eld Ayres Fino Powell provide small business with a source of equity Bonner Everett Holland Barden Granahan Radwan capital and to insure maximum participation Boykin Fallon Holtzman Baumhart Grant Rains of private financing. Boyle Farbstein Huddleston Blatnik Green, Oreg. Reece, Tenn. Section 103: Congress finds that small busi­ Brooks, La. Feighan Ikard Boggs Green, Pa. Reed ness needs equity capital, that private and Brooks, Tex. Fenton Jackson Bolling Harden Riley State development corporations are in need Broomfield Fisher Jarman Brownson Hays, Ark. Robeson, Va. Brown, Ga. Flood Jennings Buckley Hoffman Robsion, Ky. of financial assistance and should be encour­ BurlftSOn Flynt Jonas Burdick Holt Roosevelt aged, and the purpose of this act is to pro­ Byrne, Dl. Fogarty Jones, Ala. Byrd Hosmer Scott• .Pa. vide the same. Byrne, Pa. Forand Jones, Mo. Cannon James Shuford Section 104: Defines State, Small Business Canfield Forrester Karsten Cooley Jenkins Simpson, Pa, Act, Administrator, and Administration. Carnahan Fountain Kean Coudert Lennon Spence Celler Frazier Kearns Cretella McCarthy Staggers TITLE II. AUTHORIZATION OF FUNDS Chiperfl.eld Frelinghuysen Kelly, N.Y. • Curtis, Mass. McGovern Steed Section 201: The limit of the revolving Church Friedel Keogh Davis, Tenn. Macdonald Taylor Clark Fulton Kilday Dawson,m. Madden Teague, Tex. fund established under section 204 (b) of the comn Garmatz Kilgore Dies May Teller Small Business Act is raised by $220 million, Collier Gary King Diggs Miller, N.Y. Thompson, La.. from $530 million to $750 million. The 1958 CONGRESSIONAL RECORD- HOUSE 6923 amount available for -SBA business loans, authority) by SBA, which are established V above. Further, a dividends-received ·de­ loans to development corporations, and loans to provide funds for small-business concerns (luction equal to 100 percent· (rather than to investment associations is $525 million; upon the following conditions: 85 percent) of dividends received by a small $125 mUlion remains available for disaster 1. The qualifications and activities of the business investment association, is allowed. loans and $100 million for procurement con­ associations must meet criteria established · TITLE IX. REPEAL OF SECTION 13B OF THE tracts and subletting. by SBA which will include: FEDERAL RESERVE ACT (a) A minimum paid-in capital of $100,000. TITLE III. SECURED LOANS TO PRIVATE (LOCAL) OR Section 901: Authority of the Federal Re­ STATE DEVELOPMENT CREDIT CORPORATIONS (b) A minimum of 10 shareholders. (c) Approval of the charter by SBA; and serve Banks to make working capital loans Section 301: SBA is empowered to make financial reporting, auditing, and examina­ to business concerns is repealed effective 1 direct or participation loans to private or tion, as required by SBA. year after date of enactment of this act. A State development credit corporations, to (d) The association must be authorized to savings provision protects transactions being assist small-business concerns in plant con­ advance funds to small-business concerns carried out. Section 13b funds will be .re­ struction, conversion, or expansion, including only through loans evidenced by convertible turned to the Treasury. the acquisition of land. Such power is lim­ debentures; convertible, at the option of the ited as follows: association or a holder in due course, into STATEMENT ACCOMPANYING DRAFT BILL: SMALL 1. Assistance must not be otherwise avail­ stock of the concern at sound book value de­ BUSINESS CAPITAL ACT OF 1958 able and the loans must be secured. It must termined when the debenture is issued. Many small business concerns do not have be shown that a participation is not available (e) The association can invest only in ready access to all the long-term credit and and an immediate participation cannot be small-business concerns within the criteria equity capital which they may need. taken unless a deferred participation is not established by SBA. The maximum invest­ · The Small Business Capital Act of 1958 is available. In deferred participations, SBA's ment cannot exceed 20 percent of the asso­ designed to p;rovide additional long-term participation cannot exceed 90 percent o.f the ciation's paid-in capital and surplus, or credit and equity capital through the medium loan balance at disbursement. $250,000, whichever is less. of Small Business Administration loans to 2. A loan cannot cause a transfer or reloca­ (f) The investment of an association in local private development corporations, State tion of an industry which effects a significant stock of small-business concerns acquired by development credit corporations and private reduction in employment in any other area, conversion of debentures cannot exceed the small business investment associations es­ or provide a local subsidy to encourage any total of the association's paid-in capital and tablished to provide equity-type capital to relocation, or assist any relocation which is surplus except with the approval of the small concerns. not for a sound business purpose. Administrator. The bill is designed to utilize to the maxi­ 3. The proceeds of each loan must be used (g) The association must require each mum extent feasible presently existing pri­ to assist an identifi&.ble small-business con­ small-business concern borrowing funds vate, State and Federal organizations cern and for a sound business purpose. from the association which were provided equipped to carry out the aims of this legis­ 4. The limit for each loan to each identi­ by SBA, to purchase stock of the association lation. fiable small-business concern is $250,000. equal to 5 percent of the association loan. Title I of the bill recites the policy of 5. The borrower (the development corpo­ 2. Loans to investment associations by Congress to foster the growth, independence ration) must meet criteria established by SBA shall be subject to the following re­ and stability of small business in this coun­ SBA, including the extent of participation quirements: try and to provide additional sources of or paid-in capital to be used in each instance. (a) The total loans made by SBA at any equity capital for such concerns, with the ad­ 6. Loans, including extensions or renewals, one time in any one investment association monition that such policy must be carried may be made for 10 years, except that the out in a manner which will insure the maxi­ loan may have a maturity of 10 years plus an cannot exceed two· times the paid-in capita~ and surplus of the association. mum participation of private sources. additional period to complete construction, Recognition is given to the fact that local provided that SBA.may extend the maturity (b) Loans can be amortized or unamor­ tized; bear interest not in excess of 6 percent; and State development organizations should of or renew a loan beyond the ,Period stated be encouraged and that they need supple­ for additional periods not to exceed 10 years, and can mature up to 10 years, provided that SBA can extend or renew for additional pe­ mental financial assistance. if it aids liquidation. Interest cannot exceed Title II recommends an initial appropria­ 6 percent. riods not in excess of 10 years if it aids liqui­ dation. tion of $220 million to carry the Federal end TITLE IV. LOANS TO STATE DEVELOPMENT CREDIT 3. A loan cannot: cause a transfer or re­ of the program. No experience exists in this CORPORATIONS EVIDENCED BY DEBENTURES location of an industry which effects a sig­ particular area of small business financing Section 401: SBA can make loans to State nificant reduction in employment in any which would provide a basis for an accurate development credit corporations, subject to other area; or provides a local subsidy to estimate of the amount which in fact may be the following limitations: encourage relocation; or assist any relocation required for this program. However, based 1. Proceeds of loans must be used to assist which is not for a sound business purpose. upon the financial requirements of small small-business concerns, in accordance with 4. An association cannot assist a small­ business in other areas of financing and regulations of SBA. business concern if the assistance is other­ based upon rough estimates as to the need 2. A loan cannot cause directly or in· wise available from private sources. for equity capital, such amount is believed directly a transfer or relocation of an indus­ 5. SBA is authorized to prescribe regula­ to be within the necessary and reasonable try which effects a significant reduction in tions governing the operation of small busi­ bounds. .employment in any other area; or provide ness investment associations and to prevent At this point, it is appropriate to consider a local subsidy to encourage any relocation; violatioD;S of such regulations or require­ the administrative setup required to carry or assist a relocation not for a sound business ments of the act. out the program. As indicated, action in this purpose. field of financing must be viewed in the light TITLE VI. SMALL BUSINESS INVESTMENT of a pilot project, recognizing the possibility 3. Loans, including extensions or renewals, . ASSOCIATION can be made for 10 years plus additional of future change in operating structure, as time to complete construction, provided that Section 601: SBA can charter a small busi­ well as activity. For this reason an existing SBA may extend the maturity or .renew be­ ness investment association to operate under Federal agency equipped to do the job should yond the period stated for additional this act. Not less than 10 persons must be employed, to insure prompt action and periods not exceeding 10 years if it aids subscribe the articles of incorporation. a minimum of initial expense. Congress cre­ liquidation. Interest cannot exceed 6 per­ SBA approves the articles and issues a per­ ated the Small Business Administration for mit to begin business. the specific purpose of providing financial cent. and other assistance to small business in 4. Funds borrowed by the development TITLE VII. EXEMPTION FROM SECURITIES AND INVESTMENT COMPANY ACTS this country. It has established a commend­ corporation from all sources, including SBA able record and is the logical instrumental­ loans, cannot exceed four times the paid-in Section 701: Provides an exception from ity to conduct the program set forth in the capital and surplus of such corporation. the Securities Act of 1933 for small business draft bill. 5. SBA loans to each development corpora­ investment associations; and makes clear Title III of the bill authorizes SBA to tion cannot exceed the t0tal of amount bor­ that such associations are not subject to the make secured, direct, or participation loans rowed by the corporation from all other provisions of the Investment Company Act to private or State development corporations sources. of 1940. to assist an identifiable small-business con­ 6. To the extent feasible, SBA funds must TITLE VIII, AMENDMENTS TO INTERNAL REVENUE cern in connection with plant construction, be given the highest priority given any other CODE OF 1954 ·conversion, or expansion. The SBA loan funds borrowed by the development corpora­ -cannot be made if the development corpora­ tion. Section 801: Any individual or corporation 1s allowed an ordinary (rather than capital) tion can obtain assistance elsewhere. Such TITLE V. LOANS TO SMALL BUSINESS INVESTMENT loss derived from a sale or exchange of stock loan cannot relocate a small-business con­ ASSOCIATIONS ESTABLISHED TO MAKE EQUITY• in a small business investment association as cern and cause a reduction in employment TYPE FINANCING AVAILABLE TO SMALL-BUSI• described in title V above. Also, a. small in the general area from which the concern NESS CONCERNS business investment association receives an is moving. Nor can the proceeds of such Section 501: SBA can make loans to small ordinary loss on convertible debentures (in­ loans be used by development corporations business investment associations, chartered cluding stock received pursuant to the con­ to provide and subsidize facilities for a small­ under State law or (in the absence of State version privilege) acquired pursuant to title business concern to induce relocation. The :6924 CONGRESSIONAL RECORD- HOUSE April 22 SBA loans are Umited to $250,000 for each by SBA, and investments by such associa­ purpose of regulation and supervision con­ identifiable small-business concern; can run tions only in small-business concerns which tained in the subject bill. The objectives of for 10 years plus the period to complete con­ meet standards established by SBA. The the Investment Company Act and the draft struction, conversion, or expansion, and can maximum investment by an investment asso­ bill are not the same; and the activities of be extended or renewed for 10-year periods ciation in a small-business concern cannot a company covered by the Investment Act to aid liquidation. Interest on the SBA exceed 20 percent of the association's paid-in and one covered by the draft bill are not loan to the development corporation cannot capital and surplus or $250,000, whichever the same. exceed 6 percent. is less. Stock of small-business concerns For instance, the Investment Company This segment of the program should en­ acquired by an investment association Act controls the investment policies, borrow­ courage the formation of local and State de­ through conversion of debentures, cannot ing and issuance of senior securities, as well velopment corporations. Such organiza­ exceed the paid-in capital and surplus of as capitalization and the submission of re­ tions have a direct and personal interest in the investment association, without the ap­ ports to the Commission of companies there­ the welfare and development of the commu­ proval of the SBA Administrator. Small­ under, on a basis and approach di1ferent nity served by the small-business concerns business concerns helped by investment as­ from that contained in the subject bill. It they help, which assures a substantial and sociations must purchase stock of such asso­ would be impossible for the investment as­ lasting aid to such concerns from such ciations in an amount equal to 5 percent sociations referred to in the draft bill to source. Ultimately, private funds should of the loan received from the association. meet the criteria established under the In­ provide all the capital for operating such SBA can lend to any one investment asso­ vestment Company Act and still carry out development corporations. ciation up to two times the paid-in capital the functions required of such associations and surplus of such association. The SBA under the subject bill. Thus the exemption The Government is protected with collat­ loan can be an unamortized, unsecured de­ provided is mandatory. eral for such loans; and the development benture loan. Interest cannot exceed 6 per­ Title VIII relates to amendments to the corporations must not only meet criteria cent. Maturities can run for 10 years with Internal Revenue Code of 1954. Three established by SBA but .must contribute extensions or renewals of 10 years to aid changes are made in the tax provisions funds in ventures to the extent required by liquidation. which would otherwise apply to small-busi­ SBA. SBA loans to investment associations ness investment associations and their Title IV empowers SBA to make loans to carry the same restriction with respect tore­ stockholders. State development corporations evidenced by location of a business, as indicated above An ordinary loss is allowed to any indi­ debentures or any other obligations. This under titles III and IV. vidual or corporation or other taxpayer de­ permits an unsecured loan. Statutory safe­ A small-business investment association rived from a sale or exchange of stock in a guards protect the Government funds. The chartered by SBA, or operating under title small-business investment association as de­ development corporation can use the pro­ V, cannot give financial assistance to a small­ fined in the draft bill. This ordinary loss ceeds of such loans only to assist small­ business concern if such assistance is avail­ treatment is also permitted 1f the stock business concerns under regulations promul­ able from private sources. should become worthless. Without this, gated by SBA. Provisions regarding reloca­ SBA wm exercise close supervision and stock in small-business investment associa­ tion, maturities, and interest, similar to control over the operations of such small­ tions would generally constitute a capital those discussed above, are included under business investment associations, through asset. this tlle. A development corporation re­ regulations and examinations. Associations Small-business investment associations are ceiving assistance from SBA under this title which violate the act, or said regulation, sub­ allowed an ordinary loss on convertible de­ must limit its total borrowings to four times ject themselves to forfeiture of benefits and bentures (including stock received pursuant its paid-in capital and surplus; to preserve franchise. However, before an association to the conversion privilege) acquired pur­ its stabi11ty. Federal funds are available chartered by the SBA can be dissolved, non­ suant to the provisions of the subject bill. under this title only on a matching basis, compliance must be determined by a court. Generally, convertible debentures held by that is, the total of SBA loans to a particular SBA can enjoin violations of the act or its corporations constitute capital assets and development corporation will never exceed regulations by court action. any loss from their sale would be a capital the amount· borrowed by the development Title VI authorizes SBA to charter a small­ loss. The more beneficial ordinary loss corporation from any other source. This business investment association to operate treatment is provided. assures a mutual risk with private capital under the act. A dividends-received deduction equal to which can be expected to come from a local Title VII provides an exemption from the l.OO percent of dividends received by a small­ source which will no doubt employ prudence Securities Act for small-business investment business investment association is permitted. as to the soundness of the development cor­ associations and makes clear the fact that In other words, in lieu of the rule applicable poration itself and the capacity and qualifi­ such associations are not subject to the generally to dividends received by corpora­ cations of the management thereof. A fur­ provisions of the Investment Company Act tions, that is, an allowance of an 85 percent ther protection to Federal funds disbursed of 1940. dividends-received deduction, a 100 percent under this title is the right in SBA to re­ The exemption from the Securities Act is dividends-received deduction 1s permitted, quire that its funds receive equal priority justified on the grounds that such associa­ equivalent generally to a complete exclu­ with other funds borrowed by the develop­ tions conduct business and operate on a basis sion of dividends from gross income of small­ ment corporation. no different than the type of organizations business investment associations. This 100 Title IV thus provides the support which -already exempt under section 3a of such percent dividends received deduction is should mushroom State development cor­ act; and, further, such associations will be limited to dividends derived from stock of porations to aid small business concerns subject to close control and supervision by small-business concerns only since small­ which enjoy a financial position justifying this Administration pursuant to authority business investment associations will not financial aid without the necessity of em­ granted by Congress. invest in other types of stock. phasis on collateral security. This can in­ Basically, such small-business investment Title IX repeals section 13b of the Fed­ clude equity financing. associations wm conduct a banking business eral Reserve Act 1 year after enactment of Title V provides the incentive to estab­ and will acquire obligations or securities of the b111; and requires the Federal Reserve lish private organizations to supply equity small-business concerns for investment and banks, within 60 days after enactment, to capital to small business concerns. SBA can banking purposes, and not for the purposes pay to the Government the amount which make loans to SBA or State-chartered small­ (principally resale) which institutions sub­ the Secretary of the Treasury has heretofore business investment associations, evidenced ject to the Investment Company Act of 1940 paid to such banks under said Federal Re­ by debentures or other obligations. Such would acquire the same. While small-busi­ serve Act. associations must be established to provide ness investment associations may on occa- funds to small-business concerns only sion resell or pledge securities acquired from AMEND NAVY RATION STATUTE TO through loans evidenced by debentures of small-business concerns, the primary or such small-business concerns, convertible at basic purpose or activity of such associations PROVIDE FOR SERVING OLEO- the option of the holder thereof into stock is investment in small concerns as contrasted MARGARINE OR MARGARINE of the small-business concern at the sound with an underwriting or resale function. Mr. KILDAY. Mr. Speaker, I move book value of such stock determined at the Further, such associations will and must be that the House resolve itself into the time of the issuance of the debenture. The subject to regulations and supervision by debentures of such small-business concerns SBA in order to accomplish the purposes of Committee of the Whole House on the will never be converted by SBA and hence, the b111. Such regulation and supervision State of the Union for the consideration while Federal funds for equity capital to will include control of capitalization, charter of the bill

I . .

6928 CONGRESSIONAL RECORD- HOUSE April 22 of butter in the open market, but any­ Mr. GROSS. I yield to the gentleman the dairy farmer, but to protect our tax­ thing over and above their normal re­ from Missouri. payers-all of them. quirements they can receive at competi­ Mr. BROWN of Missouri. I wonder In order to do that, the amendment of tive prices with the substitutes from the if the amendment offered by the gentle­ the gentleman from Wisconsin [Mr. Commodity Credit Corporation. Now, man from Wisconsin would not permit LAIRD l , certainly should be adopted, stip­ prior to that amendment to the Agri­ the Navy to utilize oleomargarine under ul~ting that as long as there are avail­ cultural Act, section 202, we find that in emergency situations. able Government-owned surpluses of January of 1953 the overall purchases by Mr. GROSS. That is my understand­ butter, the provisions of this bill shall the Defense Department for that partic­ ing of the amendment. not go into operation except in areas ular month showed that they were buy­ Mr. COAD. Mr. Chairman, will the or under circumstances where it is nec­ ing three times as much substitutes as gentleman yield? essary, because of climatic conditions or they were butter in January 1953. In Mr. GROSS. I yield to the gentleman other such practical reasons. 1951 or 1952 they purchased 37.8 million from Iowa. Mr. Chairman, I hope very much the pounds of butter and 34.4 million pounds Mr. COAD. I wonder if it would not gentleman's amendment will be adopted of oleomargarine. That ratio has shifted be better if we entirely ignored this bill so it will then be possible to vote for since the adoption of the amendment to the way it is and insert a substitute the bill. section 202 of the Agricultural Act of amendment by which we would provide Mr. KILDAY. Mr. Chairman, I yield 1949. The amendment that I have more refrigeration facilities. Maybe 10 minutes to the author of the bill, the merely will allow the Navy and will that is the key to the whole problem. gentleman from South Carolina [Mr. allow the Defense Department over all Mr. GROSS. I hope the amendment RIVERS]. to use butter that the Government pres­ to be offered by the gentleman from Mr. RIVERS. Mr. Chairman, the ently owns in all cases where it is prac­ Wisconsin [Mr. LAIRD] is adopted. Consumer Price Index shows prices are ticable. There can be no justification for the up more than 20 percent since 1947-49. Mr. GROSS. I will say to the gentle­ Navy or any other branch of the armed We are warned that inftation is still a man from Wisconsin that I think he has services purchasing substantial quanti­ real threat. We see prices of all kinds a good amendment; I certainly will sup­ ties of oleomargarine when there are go up and up and no relief in sight. At port it, and, unless the amendment is butter surpluses which have been paid the same time unemployment is spread­ adopted, I will vote against the bill. for by the taxpayers and on which stor­ ing, and the recession is a very real But, coming back to this language at the age adds to the cost. It simply does not thing in many parts of the country. top of page 3 of the report, there must make sense to saddle the costs of oleo­ Taxes are at an alltime high. No tax be something back of this statement. margarine upon the taxpayers when relief is in sight. The new budget be­ Despite the statements made by previous butter, already purchased, is available fore the Congress is a record-$74 speakers in behalf of this bill that it is and ready for distribution. billion. merely permissive, that it is not going to Mr. BATES. Mr. Chairman, I yield change anything; everything is going to Most food costs have gone up, and such time as he may desire to the gen­ may go up some more. Everything costs go right on as it was before, there must tleman from New York [Mr. KILBURN]. be some reason for this printed state­ more, and State and local taxes are Mr. KILBURN. Mr. Chairman, the keeping pace with Federal taxes. ment which claims a saving in the Navy bill, H. R. 912, would permit the Navy to through the use of one-third oleomar­ Our people are crying for relief some­ serve oleomargarine or margarine in where along the line. Our national de­ garine and two-thirds butter. place of butter. Of course if the Navy The gentleman from Texas spoke a fense problem has got to the point did serve it-it would be colored yellow where it looks as if we are going to have little while ago of the need for this leg­ instead of its natural color of white so islation from the standpoint of non­ to spend more and more. We are loaded availability of refrigeration. I wonder the personnel of the Navy would think with surplus products and we send them if the Navy is operating any ships today they are getting butter. This whole overseas when we have need for them matter is an old argument and it could at home. that are not adequately equipped with be resolved fairly all the way around if refrigeration. Does the gentleman know we passed a law having oleomargarine At least one bill before the House of any ships that are being operated by offers a little relief-only a picayune $1 I ~ retain its natural color of white, or pos­ million or so a year, but that is some­ the United States Navy that do not have sibly the color green, then anyone being adequate refrigeration? thing. This is H. R. 912. It is only five Mr. KILDAY. I will say to the gentle­ served oleomargarine would know what lines long. All it does is say the Navy man from Iowa that I know of no ship they are being served. can-if it wants, or if it has to-buy that is not provided with adequate re­ If my good friend the gentleman from some margarine for table use. frigeration. All I know on that subject­ South Carolina [Mr. RIVERS], who intro­ Most people will be surprised and is the testimony before our committee duced this bill, would offer an amend­ shocked to learn that, 8 years after we that there are occasions upon which ment that the color of oleomargarine be finally got the old Federal taxes off mar­ there is no adequate refrigeration. made green, I certainly would vote for garine, an important part of our defense As I pointed out before, on page 2610 the bill. As it stands now, I am very services are not permitted to buy it. much against it since it allows the Navy Why is this? of the hearings, which are on the table, to serve oleomargarine in place of butter, we find this language: thus deceiving the Navy personnel. It is because the Navy buys foods ac­ Should the bill be enacted, oleomargarine Mr. BATES. Mr. Chairman, I yield cording to a ration law. Each food is or margarine would be used by the Navy defined in that law. Margarine is not where adequate refrigeration facilities are such time ·as he may desire to the gen­ so named. Shortening is named. But­ not available-that is, general messes at ad­ tleman from Minnesota [Mr. JUDD]. ter and lard are named. But not mar­ vance bases, expeditionary force vessels, and Mr. JUDD. Mr. Chairman, I would garine. - extended operations in foreign waters and like to be able to vote for this bill, be­ away from normal supply channels, field cause I do not see any reason why the The Navy has said for years and is maneuvers, and other instances where there Navy should be on a _different basis in saying again that it wants this changed. are inadequate refrigeration fac1lities and the foods it provides for its personnel It wants to buy margarine. This is be­ no source of supply for butter. cause it believes margarine is just as than the other branches of the Armed Mr. GROSS. But there is nothing in Forces. But unless amended, I shall good a food as butter. It believes mar­ what the gentleman read to show that have to vote against the bill. As long garine can be more available under cer­ there are inadequate refrigeration facil- as we have in storage such large quan­ tain conditions. It believes that, in the long run, it can save the taxpayer a ities either aboard ship or advance bases tities of the best possible spread for or anywhere else, is there? bread, which is butter, already bought little money by buying some of its table Mr. KILDAY. I have read the gentle­ and paid for by the taxpayers, I do not spread as margarine. man the testimony, that they will use think we are justified in authorizing the This bill ought to pass without delay. it where there is no adequate refrigera­ armed services, any of them, to spend It has been brought up before and has tion. additional public funds to buy oleomar­ been opposed by the dairy people. They Mr. BROWN of Missouri. Mr. Chair­ garine or any other butter substitute. claimed Federal oleomargarine tax re­ man, will the gentleman yield? My primary concern is not to protect peal would hurt them, but it did not. 1958 CONGRESSIONAL RECORD- HOUSE 6929 Dairy cash income then-1950-was $3.7 got $4.13 average price. No wonder dairy the dairy industry. It should not be billion. Now it is $4.5 billion. They industry leaders are anxious to sell more forced upon the Navy if that service claimed margarine prices would go up. whole milk. wants to buy a little margarine now and They have gone down 4% percent. But­ Only 25 percent of the total amount of then. ter prices have gone up 2 percent. Food milk marketed by farmers in 1956 went Here is a table showing what the prices have gone up 14 percent. into creamery butter. Butter is a fine armed services haV3 been buying of the It does not make much difference be­ product but it is n ot the mainstay of t wo products : cause this bill cannot hurt butter. The claim is made that, if it is passed, the United States open-market purchases f or armed services Navy will buy some margarine and that BUTTER much butter· will go into surplus. I be­ lieve the dairy industry can do a better For Army and Air Force F or Navy and Marine Corps job of selling than that. But the butter surplus will not in­ Year Approxi- Approxi- crease. That is not going to happen. In Estimated mate Estimatcd mate Pounds cost average Pounds cost average 1949 the Army got permission to buy cost per cost per margarine. But when surplus butter pound pound came in the Army took surplus butter, instead of margarine, to supply its needs 1951. .. -•• ------. 33,370,572 $23, 93G, 474 $0.72 17,994,419 $12, 614, 505 $0. 70 in excess of its regular commercial buy­ 1932.------16,660,787 12,402,310 . 74 21,149, 660 15,916,970 . 75 1953 ___ __ ------10,875, 111 7, 635, 115 . 70 16,715,006 11, 2G3. 719 .67 ing of butter. The Navy will certainly 1954 .. ------.------. 32,400,000 20,934,518 .64 15,629,202 10,098,952 . 65 do the same. So there is not any likeli­ 1955 ____ _------11,738, 129 6, 714,931 . 57 14, 170,593 8, 767,541 . 62 1956.------13, 756,314 8, 646,395 .63 14, 195, 790 I 9, 978,103 • 70 hood that this bill will put butter jnto 1957------(1) (1) (1) (1) (1) (I) surplus. It may take some out. So the Navy probably is not going to M ARGARINE use this bill to buy much margarine if any in the foreseeable future. It may I 1951.------21, 026, 234 $4, 879, 165 $0.23 240,202 $55, 516 $0. 23 not buy much more margarine anyway. 1952 ___ ------34, 114, 101 5, 729, 338 .17 338,767 72,293 . 21 It is not a question of one product 1954953 •__. ------______-_---_____------______------______- - - __-----__ _--__ 19, 114, 648 3, 377, 808 .18 340, 570 76,652 .23 2, 700, (100 845, 063 .22 193, 718 61,649 .25 versus another. It is a matter of prin­ 1955 ___ _------205, 879 39, 9S5 . 19 281,462 49,845 . 18 1956 ______1, 712, 875 293, 779 . 17 223,996 40, 290 .18 ciple. The Navy has the same right to (1) choose the foods it needs for our Navy 1957------(1) (1) (1) (1) (1) personnel that the Army and other Gov­ ernment agencies have and the house­ 1 Breakdown not available: wife was given by Congress years ago. It is ridiculous to say to the Navy, you Butter Margarine have to buy butter or else, and let the taxpayer, who has to buy margarine to Total pounds __ _------28, 131,000 6, 002,000 Estimated cost. ______-- __ ------$17, 830,322 $1,054, 561 save money, foot the bill. Approximate average cost per pound·------$0.63 $0. 17 It is said this will hurt the price of butter. That is not so because butter NoTE .- Efl'ective 1957, breakdown by military service no longer available due to establishment of 1 common is price supported. We have many bills procurement and supply under Single Manager Agency. asking for more price support for butter, Source: Office of the Quartermaster General, Department of the Army. and higher. How can we justify giving This bill makes no difference to me. I to accept the rule on H. R. 912 and then this extra protection to butter when we have no selfish interest to serve in it. pass the bill and get on with our national know it is already overpriced in the There is not a great deal of cotton in my defense. market and that is why we have a but­ district and, so far as I know, very few Mr. Chairman, if I have done nothing ter surplus and a butter problem in the soybeans. But the Minnesota delegation else, and if the Committee on Armed first place? Why should the taxpayers ought to vote for this bill. Minnesota is Services has done nothing else, we have have to pay for it at both ends-Gov­ now one of the big soybean-raising given a great deal of opportunity to a ernment procurement and price sup­ States. Margarine is the largest market great many of our colleagues to make port? If this is the policy, then all for soybean oil. Margarine keeps the hay while the margarine burns. I do Government agencies should be required money rolling in to the soybean farmers. not propose to get into the margarine to buy nothing but butter and so should It makes the protein food from the oil­ argument. So far as I know the mar­ everyone whether they can afford it or cake cheaper for the dairy and poultry garine argument is dead and buried. I not. farmers. do not propose to get into that argument. Let us pass H. R. 912 and save some Here is the amount of American oils I did not indulge in the debate on the money in years to come with no real margarine uses every year. If you are rule and I doubt that I shall take 10 min­ injury to the dairy industry or anyone from soybean or cottonseed districts, or utes at this time. I just do not propose else. We cannot expect Government any district that raises an amount of fats to get into any margarine argument. If agencies to spend money wisely if we or oils you ought to vote for H. R. 912 be­ I did, I would cite that the greatest force them to buy things they cannot cause it would help the general fats and source for oils for margarine is Illinois, afford or they cannot get when they oils market, and it is not going to put the where they raise 4, 785,000 pounds of oil need it. creameries out of business. for margarine from the soybeans. But Everyone knows that the real solution Margari ne's use of farm pr oducts I have not heard one man on this floor to the dairy problem is not to repress [Thousands of pounds] raise his voice in defense of those poor margarine but to find ways of expanding un-American Illinois farmers who are the sale of milk for what it really is­ Refined Refined Total fats doing this terrible thing to the Navy, Year soybean cottonseed and oils making the Navy use margarine that is fluid milk, or -cheese, or other whole milk oil oil products. The American Dairy Associ­ produced in Illinois. Aren't they a ter­ rible bunch of people? Not one man on ation is making real progress in that di­ 1950.------305, 887 430, 011 763, 080 rection. It is trying to meet competi­ 1951. ------471,560 332,895 850, 750 the floor of this House has raised his tion. Dairymen will make more money 1952.------651, 163 353,056 1,046,010 voice in defense of those poor, defense­ 19195354 ••______------_-_ . 664,122. 274, 507 1,048, 617 this way. In 1956 the average price 664,392 396,482 1, 106, 197 less Illinois farmers. 1955.------745, 024 277,931 1, 074, 916 In Minnesota they raise 2,697,000 across the country for 100 pounds of milk 1956.------750, 930 280,235 1, 107, 866 sold for the butterfat in it was about 1957------873, 928 235,433 1, 179,747 pounds of oils for margarine. Not one $2.26, according to the United States . man has raised his voice in defense of Department of Agriculture. But the Let us save the taxpayer a little money. those poor defenseless farmers who are farmer who sold his milk as whole milk I urge that this distinguished House vote paying taxes every day in the year, to 6930 :coNGRESSIONAL RECORD- HOUSE April 22 buy surplus butter. But I am not getting Mr. ARENDS. I am glad to yield to The CHAffiMAN. Is there objection into that argument. I am above that. the gentleman. to the request of the gentleman from I could also tell you that they bought Mr. RIVERS. I said nobody raised his Wisconsin? over 800 million pounds of soybean oil voice. on the floor. There was no objection. for margarine last year-800 million Mr. ARENDS. I am going to vote for The CHAIRMAN. The Clerk will re­ pounds, and only 200 million pounds of the bill. port the amendment as modified. cottonseed oil. And neither one of them Mr. RIVERS. Of course, that did not The Clerk read as follows: is raised in my district, so I do not have include the gentleman from Illinois. I Amendment offered by Mr. JoHNSON: On any interest in it. You cannot hurt was talking about those who took their page 1, line 10, after the word "or" insert MENDEL RIVERS on this. But I am not position down in the well of the House. "when the Secretary of Agriculture certifies going to go into those things, Mr. Chair­ Mr. ARENDS. I understand and, per­ that butter is not in surplus supply in the man. But I am going to tell you this, haps, I should have gotten 5 minutes. Commodity Credit Corporation." that it is wrong by law to deny the United Mr. RI"{?'ERS. I think you would ren­ The CHAffiMAN. The gentleman states Navy the prerogative of buying der a great service to the farmers, if from Wisconsin is recognized in support margarine, which is an edible product you did. of his amendment. and a great many Americans use it. Mr. ARENDS. I agree with the pur­ Mr. JOHNSON. Mr. Chairman, my They consumed 1,300,000,000 pounds last pose that the gentleman has stated. reason for offering this amendment is, as year. I eat it and I never looked so good. There should be nothing to prevent the has been argued so much today, that with I will tell you something else-it is wrong Navy from using either butter or mar­ plenty of butter in surplus supply the by law to deny the United States Navy garine. Navy can have it for nothing, and it the same right that is exercised by the Mr. JENSEN. Is the gentleman going seems foolish for the Navy to go out and United States Air Force and the United to vote for this bill? buy oleomargarine for the members of States Army. It is wrong and you know Mr. ARENDS. Yes; I intend to vote the Navy. So, when the Secretary of it is wrong. We have been trying to get for it. I have in the past and I will con­ Agriculture shall certify that there is no this bill up for years. The distinguished tinue to vote for it. butter available in the Commodity Credit gentleman from Massachusetts [Mr. Mr. JENSEN. I am going to vote Corporation, then the Navy shall be able BATES] introduced this bill. I have no against it. to buy oleomargarine. pride of authorship. It would suit me Mr. ARENDS. That is all right-fine. I yield back the remainder of my time, if I never said another word on it be­ Mr. JENSEN. Sure it is all right, be­ Mr. Chairman. cause the margarine battle is over. The cause my position is right. Mr. LAIRD. Mr. Chairman, I offer a biggest customer that the milk industry Mr. ARENDS. That is the privilege substitute amendment, which is at the has is the margarine industry. More of a free American. Clerk's desk. milk goes into margarine than any one Mr. JENSEN. We have a butter sur­ The Clerk read as follows: segment of American industry. Only 6 plus which has been paid for by all our Amendment offered by Mr. LAIRD as a sub­ percent of the income of the dairy farmer taxpayers, and why should we be forcing stitute for the amendment offered by Mr. comes from butter. He is not going to our military men to eat this greasy, JOHNSON: Add the following new section: pile butter up to the moon and refrig­ tasteless substitute for natural tasty, "SEc. 2. During any period when surplus erate it to the point where you have to butter stoclts are available to the armed serv­ nourishing butter made from clean, ices through the Commodity Credit Corpo­ have atomic power and if you keep on fresh cream? you are going to have to do that. I am ration no oleomargarine or margarine shall be Mr. KILDAY. Mr. Chairman, a point acquired for use by the armed services or not discussing that, as you know. I am of order. The point of order is that we any branch or department thereof, except talking about the Navy. I am not get­ on this side would be entitled to close that limited supplies thereof may be acquired ting into that argument. My statement debate. The gentleman from Massachu­ for use in special overseas areas upon certifi­ is replete with facts and figures on where setts, I know in good faith, stated that cation that the use of butter in such areas and how much. The military forces last they had no further requests for time. would be impractical." year bought almost 50 million pounds. Since the time for debate has been con­ Mr. KILDAY. Mr. Chairman, I make They took almost 50 million pounds of cluded, I ask that the·Clerk read the bill a point of order against the amendment surplus butter and used it. They bought for amendment. some 25 million pounds on the open mar­ that it is not germane, and that it broad­ ket, which they paid 63 cents a pound for. The Clerk read as follows: ens the purposes of the bill. They are not favoring butter over mar­ Be it enacted, etc., That section 1 of the Mr. LAIRD. May I be heard on the act of March 2, 1933 ( 47 Stat. 1423), as point of order, Mr. Chairman? garine. They only bought a million-odd amended by the act of February 21, 1942 pounds, as the gentleman from Texas -The CHAIRMAN. The Chair will hear (56 Stat. 97; title 34, U. S. C., sec. 902a), is the gentleman from Wisconsin. [Mr. KILDAY] pointed out. It is wrong, hereby further amended by inserting imme­ I say to you my colleagues, to pit the diately after the word "butter" the words "or Mr. LAIRD. Mr. Chairman, I believe milk industry against the soybean indus­ oleomargarine or margarine." that perhaps my amendment does not fit the pattern of a substitute amendment, try and the cotton industry. It is wrong. With the following committee amend­ And I am not indulging in that. My and I shall offer it as a separate section statement to you is this: Why by law ment: to the bill later, but certainly it is ger­ should the United States Navy be denied Page 1, line 3, strike out all after the mane to the subject matter contained in enacting clause and insert "That section 6082 this bill. the right to buy what they, in their opin­ (a) (7) of title 10, United States Code, is ion, and what the Pure Food Adminis­ I ask unanimous consent, Mr. Chair­ amended by striking out the period after the man, to withdraw the amendment and tration has determined is good for you word 'butter' and inserting in lieu thereof to eat? Do you see anybody with heart the following: 'or oleomargarine or mar­ offer it as a separate amendment as soon tltouble? Butter will kill you deader garine'." as the amendment offered by the gentle­ man from Wisconsin [Mr. JoHNSON] is than Job's turkey. But eat a little mar­ Mr. JOHNSON. Mr. Chairman, I garine and you will look like a million disposed of. dollars. offer an amendment, which is at the The CHAffiMAN. Is there objection? Clerk's desk. There was no objection. Mr. BATES. Mr. Chairman, I yield The Clerk read as follows: such time to the gentleman from Illi­ Mr. KILDAY. Mr. Chairman, I rise Amendment offered by Mr. JoHNSoN: On in opposition to the amendment offered nois [Mr. ARENDS] as he may require. page 1, line 10, after the word "or" insert by the gentleman from Wisconsin [Mr. Mr. ARENDS. Mr. Chairman, I want "when the Secretary of Agriculture certifies JOHNSON]. the gentleman from South Carolina to that butter is not in surplus supply." During the general debate I attempted know that even though we do raise so Mr. JOHNSON. Mr. Chairman, I ask to emphasize the interest of the Com­ many soybeans in Illinois, I am for the unanimous consent, following a discus­ mittee on Armed Services is to attempt bill just as the gentleman is and for the sion with the chairman of the commit­ to relieve the Department of the Navy purposes and reasons the gentleman set tee, to amend my amendment by adding from an administrative difficulty in forth here a moment ago. the following words: "in the Commodity handling the question of providing Mr. RIVERS. Mr. Chairman, will the Credit Corporation" at the end of the butter for the men in the Navy. This gentleman yield? amendment. amendment would create more con- 1958 CONGRESSIONAL RECORD- HOUSE .6931 fusion and greater administrative diffi­ The CHAffiMAN (Mr. TRIMBLE). The ' Under this amendment it is purely a culty than has ever been created by the Chair is ready to rule. limitation placed upon the Navy. There­ existing provision of law. The Chair calls attention to page 195 fore, the point of order is overruled. Under existing law, when butter is not of cannon's Procedure in the House of Mr. LAIRD. Mr. Chairini:m,. this available, the men simply go without a Representatives. Under the heading amendment merely provides that while spread. Under the provision that the "Germaneness" is found this section: the· Commodity Credit Corporation has gentleman from Wisconsin has offered, "1. (a) One individual proposition may stocks of butter available, which have every supply officer when procuring not be amended by another individual propo­ already been purchased by our Govern­ butter or oleomargarine to be used in sition even though the two may belong to the ment with taxpayers' funds, that the the areas where they are going to use it same class." Navy will continue to use butter would have to ascertain whether or not The amendment offered by the gentle-· exclusively. butter was in surplus supply in the Com­ It merely is good bookkeeping on the modity Credit Corporation. man from Wisconsin includes the Army, Navy, and Air Force. The bill before part of our Government. It looks out I will ask the membership of this for the interest of the American tax­ House here in Washington at all times the House deals solely with the Navy. The Chair sustains the point of order. . payers who already have purchased the and fully informed and in close contact butter, million of pounds of it, which is with the Commodity Credit Corporation, Mr: LAIRD. Mr. Chairman, I offer a in storage. further amendment. even in that preferred position, if you It seems to me important that we give could at all times be in a position to The Clerk read as follows: recognition to the American taxpayer. abide by the provisions of the amend­ Amendment offered by Mr. LAIRD: Add the The Navy should be required to use but­ ment offered by the gentleman from following new section: ter, particularly during times when Wisconsin [Mr. JOHNSON]. How, then, "SEc. 2. During any period when surplus the United States Department of Agri­ could you expect a young lieutenant or butter stocks are available to the Navy culture has on hand butter. lieutenant commander supply officer through the Commodity Credit Corporation no oleomargarine or margarine shall be ac­ Mr. WESTLAND. Mr. Chairman, will aboard ship somewhere to know whether quired for use by the armed services or any the gentleman yield? the records indicated that butter was in branch or department thereof except that Mr. LAIRD. I yield to the gentleman surplus supply at that particular time? limited supplies thereof may be acquired for from Washington. So instead of doing anything to clear up use in special overseas areas upon certifica­ . Mr. WESTLAND. I support the gen­ the present difficulty it would only com­ tion that the use of butter in such areas tleman's amendment, because I believe pound the difficulty, compound the con­ would be impractical." it is in the interest of the dairy farmer fusion. Mr. LAIRD. Mr. Chairman, the and the American public. I hope the amendment will be de­ ·amendment that I seek to offer should It is proper for the Navy to serve but­ feated. read "available to the Navy" in line 2 ter to its personnel, especially when this The CHAIRMAN. The question is on and in line 4 it should read "for use by commodity is one which comes under the amendment offered by the gentleman the Navy". I ask unanimous consent the price-support program. from Wisconsin. that my amendment be amended to As of April 16, some 63,325,000 pounds The question was taken; and on a di­ read that way. · were in uncommitted stocks, stored in vision (demanded by Mr. JoHNSON) there The CHAIRMAN. Is there objection Commodity Credit Corporation ware­ were-ayes 50, noes 54. to the request of the gentleman from houses. This is butter that the Corpo­ Mr. JOHNSON. Mr. Chairman, I ask Wisconsin? ration has paid for, and which the NavY for tellers. could use. I cannot see why the Navy Tellers were refused. · There was no objection. The CHAIRMAN. The Clerk will re­ should go into the open market to pur­ So the amendment was rejected. chase a substitute in direct competition The committee amendment was port the modified amendment. with butter while there is a surplus on agreed to. The Clerk read as follows: hand. Mr. LAIRD. Mr. Chairman, I offer an Amendment offered by Mr. LAiRD: Add the The dairymen in my district and in amendment. following new section: Washington State, as well as across the The Clerk read as follows: - "SEc. 2. During· any period when surplus butter stocks are available to the Navy Nation, are faced with the hard task of Amendment offered by Mr. LAIRD: Add the through the Commodity Credit Corporation earning a decent living in a time when following new section: no oleomargarine or margarine shall be ac­ the costs of farm operation are rising "SEc. 2. During any period when surplus quired for use by the Navy, or any branch out of proportion to income from dairy butter stocks are available to the armed or department thereof, except that limited products. We should help expand the services through the Commodity Credit Cor­ supplies thereof may be acquired for use market so they can sell more butter, in­ poration no oleomargarine or margarine shall in special overseas areas upon certification stead of taking a way part of their be acquired for use by the armed services or that the use of butter in such areas would market. any branch or department thereof, except be impracticable." that limited supplies thereof may be acquired These, Mr. Chairman, are some of the for use in special overseas areas upon cer­ Mr. KILDAY. Mr. Chairman, a point reasons this amendment is in the inter­ tification that the use of butter in such of order. est of the dairy farmer and the American areas would be impractical." The CHAffiMAN. The gentleman will people. Mr. KILDAY. Mr. Chairman, a point state the point of order. Mr. LAIRD. Mr. Chairman, may I of order. · Mr. KILDAY. Mr. Chairman, the say to the gentleman from Washington this is not only in the interest of the The CHAIRMAN. The gentleman will gentleman's amendment imposes addi­ tional duties upon the officers and ex­ dairy farmer, this is in the interest of state it. the American taxpayer who already Mr. KILDAY. Mr. Chairman, I make pands on the purpose of the bill, which is of the single purpose to amend the owns this butter. a point of order against the amendment Mr. KILDAY. Mr. Chairman, I rise on the ground that this is a bill to amend Navy ration statute so as to permit the use of oleo or margarine, whereas the in opposition to the amendment offered the Navy rations statute so as to provide by the gentleman froni Wisconsin [Mr. for serving oleomargarine or margarine. amendment offered imposes additional duties upon the officials of the Depart­ LAIRD]. It goes no further than to amend the Mr. Chairman, I want to reiterate this Navy ration statute. The Navy ration ment in connection with the procure­ ment of supplies. is compounding the difficulty of admin­ statute does not refer to other depart­ istration on the part of the Navy. How ments of the armed services. The CHAIRMAN. Does the gentle­ are you going to have a supply officer out The CHAIRMAN. Does the gentle­ man from Wisconsin desire to be heard? with a ship in a position to make these man from Wisconsin desire to be heard· Mr. LAIRD. Mr. Chairman, I under­ certifications or to know whether or not on the point of order? stood under the ruling of the Chair if there is a surplus supply of butter? The Mr. LAIRD. Mr. Chairman, I think this amendment were limited to the figures have been produced here on the this bill very clearly includes all branches Navy it would be in order and I offered it tremendous quantities of butter both in of the Armed ;Forces as far as their ra­ with that thought in mind. surplus and on the open market. This tions are concerned. I hope the Chair The CHAIRMAN. The Chair is ready would only compound the confusion that will so rule. to rule. exists. 6932 CONGRESSIONAL RECORD- HOUSE April 22 I trust the pending amendment will be oleomargarine or margarine, when the The question was taken; and there defeated. .oversupply of butter makes it necessary were-yeas 207, nays, 161, not voting 61, Mr. H. CARL ANDERSEN. Mr. for the Government to purchase stocks as follows: Chairman, I rise in favor of the pend­ to support the price. [Roll No. 44) ing amendment. If this bill is to pass, it will be much YEAS-207 Mr. Chairman, I feel that the argu­ more acceptable with the Laird amend­ Abbitt Fenton Murray ment made by the gentleman from Texas ment. Adair FloOd Natcher is entirely unsound. After all, the deci­ Addonizio Ford Neal The CHAIRMAN. The question is on Albert Frazier Nicholson sion as to whether butter or oleo under the amendment offered by the gentleman Alger George Nimtz this amendment shall be used would from Wisconsin [Mr. LAIRD J. Allen, Calif. Glenn Norblad come from the Navy Department here in Allen, Ill. Gregory O'Brien, N. Y. The question was taken; and on a di­ Andersen, Griffin O'Hara, Minn. Washington. It would not be a decision vision (demanded by Mr. KILDAY) there H. Carl Gross O'Konski to be made by each and every supply were-ayes 72, noes 51. Anderson, Hagen O'Neill officer aboard each vessel wherever it Mont. Halleck Ostertag Mr. RIVERS. Mr. Chairman, I de­ Avery Harrison, Nebr. Patterson might happen to be. mand tellers. Bailey Harrison, Va. Pfost I feel good, common business sense Tellers were ordered, and the Chair­ Baker Harvey Philbin -would tell any of us here that it would Baldwin Hays, Ohio P1111on man appointed as tellers Mr. KILDAY and Baring Healey Poff be foolish not to require the Navy to Mr. LAIRD. Bass, Tenn. Henderson Polk utilize a very good product which the The Committee again divided; and the Beamer Herlong Prouty taxpayers own. Our Armed Forces tellers reported that there were-ayes Becker Hill Quie should utilize these stocks of butter Belcher Hoeven Reece, Tenn. 90, noes 77. Bennett, Mich. Holmes Rees, Kans. which the taxpayer already owns in the So the amendment was agreed to. Bentley HoltZlllan Reuss Commodity Credit Corporation before Berry Horan Rhodes, Pa. they go out and buy a substitute. And, The CHAIRMAN. Under the rule the Betts Hull Riehlman Committee rises. Bolton Jackson Robison, N. Y. beyond all that, Mr. Cbairman, nobody Bosch Jensen Rodino here can convince me, as a man repre­ Accordingly the Committee rose; and Bow Johansen Rogers, Mass. senting agriculture and a dairy district, the Speaker having resumed the chair, Bray Johnson Rooney that it is to the good interest of the farm­ Mr. TRIMBLE, Chairman of the Commit­ Breeding Jonas Sadlak tee of the Whole House on the State of Broomfield Judd St. George ers of my area to see legislation of this Brown, Mo. Kearney Saund nature go through without some sort of the Union, reported that that Commit­ Brown, Ohio . Keating Saylor an amendment. Why, the Navy itself tee, having had under consideration the Broyhill Kee Schenck bill (H. R. 912) to amend the Navy ra­ Budge Kelly, N.Y. · Schwengel admits that they intend or hope to buy Bush Keogh Scrivner at least one-third of their consumption tion statute so as to provide for the serv­ Byrne, Ill. Kilburn Scudder of spread in the form of oleo if this legis­ ing of oleomargarine or margarine pur­ Byrnes, Wis. Knox Seely-Brown suant to House Resolution 465, he re­ Cannon Knutson Sheehan lation goes through. That means that Carnahan Krueger Siler there will probably be 10 million pounds ported the bill back to the House, with Carrigg Lafore Simpson, Ill. less butter purchased by one of our sundry amendments adopted by the Cederberg Laird Simpson, Pa. Committee of the Whole. Chamberlain Lane Sisk armed force segments alone, and that, Chelf Latham Smith, Kans. certainly, Mr. Chairman, can mean to The SPEAKER. Under the rule, the Chenoweth LeCompte Smith, Va. me nothing else but that the price level previous question is ordered. Chiperfield Loser Spence. Is a separate vote demanded on any Christopher McCormack Stau1fer of the butter itself will go down, and Church McCulloch Taber that, in turn, will hit the pocketbook of amendment? Clevenger McDonough Talle the dairy farmers of the Nation just as Mr. RIVERS. Mr. Speaker, I demand Coad McFall Teague, Calif. a separate vote on the amendment of the Coffin McGregor Tewes that same pocketbook has been hit lately Coll1er Mcintire Thomson, Wyo. through the fact that Secretary Benson gentleman from Wisconson [Mr. LAIRD], Cramer Mcintosh Tollefson has lowered price supports against the just adopted. Cunningham, McVey Trimble good judgment of many of us in the The SPEAKER. Is a separate vote Iowa Mack, Dl. Tuck Cunningham, Mack, Wash. Ullman House. demanded on any other amendment? If Nebr. Magnuson Utt I hope, Mr. Chairman, that we will not, the Chair will put them en gros. Curtin Marshall Van Pelt The amendments were agreed to. Dague Martin Vorys salvage at least what we can out of this Dawson, Utah Mason Vursell legislation by supporting the amendment The SPEAKER. The Clerk will report Delaney Meader Watts offered by the gentleman from Wis­ the amendment on which a separate vote Dennison Merrow Weaver consin. is demanded. Dent Metcalf Westland Denton Michel Wharton Mr. QUIE. Mr. Chairman, I ask unan­ The Clerk read as follows: Derounian Miller. Md. Widnall imous consent to extend my remarks at Add the following new section: Devereux Miller. Nebr. Wier this point in the RECORD. "SEc. 2. During any period when surplus Dixon Minshall Wigglesworth Donohue Moore Williams. N.Y. The CHAIRMAN. Is there objection butter stocks are available to the Navy Dooley Moss Wolverton to the request of the gentleman from through the Commodity Credit Corporation, Dorn,N. Y. Moulder Zablocki Minnesota? no oleomargarine or margarine shall be ac­ Engle Multer There was no objection. quired for use by the Navy or any branch Evins Mumma or department thereof except that limited NAYS-161 Mr. QUIE. When there is a price­ supplies thereof may be acquired for use in supj>ert program, the Government takes special overseas areas upon certification that Abernethy Byrne,Pa. Feighan Alexander Canfield Fisher stocks off the market in order to increase the use of butter in such areas would be Andrews Celler Flynt the domestic price to the support level. impractical." Anfuso Clark Fogarty For any quantity of oleomargarine or Arends Colmer Forand The SPEAKER. The question is on Ashley Corbett Forrester margarine purchased by the Navy in the amendment. Ashmore Curtis, Mass. Fountain place of butter, an equal amount of but­ Aspinall Curtis, Mo. Frelinghuysen ter would have to be purchased by the The question was taken; and on a di­ Barrett Davis,. Ga. Friedel Commodity Credit Corporation to hold vision fly in the United States. At the present control of the use of our airspace is from. schools which do not raise contin- rate the course seems to be oblivion. mandatory. CIV--43~ . 6936 CONGRESSIONAL RECORD- HOUSE April 22 REGISTRATION AND REPORTING OF the knowledge of the financial operation relationships and fiduciary relationships. EMPLOYEE WELFARE AND BENE­ of these funds which they would like to By its very nature the fiduciary relation­ FIT PLANS have for the purpose of collective bar­ ship, namely, that of good faith rather gaining. The question of whether funds than legal obligation, is not properly Mr. BOSCH. Mr. Speaker, I ask accumulated under pension plans are applicable to the contractual relation­ unanimous consent to extend my re­ adequate is a very fundamental one, but ship. How one party to a contract de­ marks at this point in the RECORD. it will not be solved by mere disclosure. cides to finance the commitments he has The SPEAKER. Is there objection to Whether there should be standards as undertaken under the contract are not the request of the gentleman from New to funding plans is an entirely different subject to accounting to the other party York? question from that of whether there have or parties to the contract in the same There was no objection. been abuses in the handling of the funds. way as is customary and proper in fidu­ Mr. BOSCH. Mr. Speaker, I have It would appear that before a decision is ciary relationships. taken this time to discuss my various made in this area a great deal more con­ You might ask what great harm it reasons for introducing H. R. 11286, a sideration should be given the subject will do to include all plans within the bill to provide for the registration, re­ than has been given it by any group at scope of legislation which requires dis­ porting, and disclosure of employee wel­ this time. Whether employees and closure of minute details of financing. fare and pension benefit plans and unions should have further information In my considered opinion a great deal which was referred to the Committee on of the financial operation of these funds of harm would result because it would Education and Labor. for collective bargaining is a problem seriously interfere with the collective A bill which would require full dis­ which most definitely should not be bargaining relationships where plans closure in all types of employee-benefit settled in this particular legislation. It involve the employees of only one em­ plans, whether pension or welfare, uni­ does not seem proper or practical to re­ ployer-as the vast majority of plans lateral, bilateral, self-managed or in­ quire an employer by law to disclose do-if this disclosure legislation were to sured, contributory or noncontributory, financial information where his only shift the bargaining emphasis a way bargained or nonbargained, level of -commitment is to provide benefits-no from the benefits to be provided to the benefits or fixed contributions would more than a requirement that the em­ cost to the employer. Most employees make it difficult for an administering ployer disclose his ability to continue the are more interested in the benefits that agency to detect the evils disclosed, •payment of his employees' wages. they are entitled to and what they must would create an unnecessary vast new There is a need to distinguish between pay to get them than they are in what Federal bureaucracy, would deprive man­ welfare plans and pension plans. Pen­ the employer pays. agement, unions, and labor of the right sion plans, on the one hand, involve long­ It seems to me that if the emphasis to contract with respect to placing upon term commitments and almost always were to be changed from level of benefits one party or the other the full responsi­ the accumulation of substantial sums of to employer costs, it will undermine the bility and the hazard of expense for the money for the purpose. Welfare plans, very foundation of a successful operation management of the fund, would add on the other hand, providing sickness of these welfare plans which is the prin­ materially to the exp:mse of operating and accident, hospital-surgical and cipal of averaging costs over a large such funds, and finally would require medical benefits do not involve the accu­ number of employees so as to provide employees to furnish labor unions with mulation of large reserves, but merely uniform benefits. economic and bargaining power which the current collection and disbursement If the employer is required to disclose should be negotiated through the normal of moneys. his costs on his Retirement Annuity Plan, channels of collective bargaining. A major distinction needs to be drawn he might be discouraged from financing Let us look into the background of between fixed level of benefits and fixed it on a conservation basis. The large this legislation. For over 4 years cost plans. A fixed level of benefits plan, reserves which are building up under a Congressional committees, as well as in contrast to a fixed cost plan, means soundly financed plan may result in tre­ State committees, have been investigat­ any plan that has a fixed level of bene­ mendous pressures to increase the bene­ ing abuses in welfare and pension funds. fits and a variable cost to the employer, fits at no increase in current costs merely These investigations have disclosed that the cost being that amount above the by dipping into reserves for future bene­ in the Taft-Hartley type trust under fixed rate of employee contributions, if fits. If he is required by collective bar­ which there is joint union management any, to provide the fixed level of benefits. gaining pressures to yield it, it could well responsibility, there has been racketeer­ A fixed cost plan means any plan that undermine the future solvency of the ing, embezzlement, negligence, simple has a fixed cost to the employer and a plan and result in reduced benefits and lack of know-how of administration, variable level of benefits to the em­ serious disappointment and hardship '~o and, in general, a failure to consider trust ployees. The latter type plans are retired employees. management responsibilities as fiduciary. characterized by (a) contributions from If the disclosure is to be made of the The investigations have also found re­ an employer or employers into a sepa­ volume and distribution of investments bating, kickbacks, and exorbitant com­ rate fund on a basis not directly related of level of benefits plans, pressures will mission fees paid by certain elements to benefits but rather as a certain num­ be inevitable for parties other than those in the insurance industry. Upon analy­ ber of cents per hour worked, or a func­ responsible for providing the benefits to sis, however, even in the Taft-Hartley tion of production, or as a percentage of have a voice in the type of investments to type trusts there were relatively few payroll, and (b) administration by trus­ be made, the rate of funding and other where these abuses were found. tees composed of union and manage­ requirement. Those responsible for the The question is, Mr. Speaker, Should ment representatives. investing of funds have as their major we indict all these plans merely because a An examination of the disclosed abuses objective the security of funds and the small segment, due to their character­ indicated there are specific character­ maximum yield consistent with such se­ istics, had such abuses? The obvious istics which make some plans more vul­ curty in the interest of maximum protec­ answer is "No." nerable to embezzlement and unfair tion for employee beneficiaries. If funds The confusion about this problem is dealing than others. However, only 10 are to be invested in the so-called "so­ found in these areas: percent of all the private employee bene­ cially desirable forms· of investment" it What is the basic objective of any pro­ fit plans in the United States have that will be axiomatic that their costs would posed legislation? The issue which gave combination of features which set the increase or the protection to the bene­ rise to it was the evidence of abuses and stage for embezzlement and other abuses. ficiary would be impaired. the diversion of moneys to the detriment The one characteristic common to all Although costs should not be the deter.. of the beneficiaries. The legislation plans where abuses have been found was mining factor in ascertaining need for should be designed to help correct these a fixed cost contribution by the employer legislation, its application to an esti .. abuses. One should, therefore, not con­ from which all benefits must be paid. mated forty or fifty thousand plans in fuse the objectives advanced in the Thus, any diversion of these funds in the United States would inc:rease the course of discussion ·with (a) that of as­ an' improper manner or for excessive paper work involved and put a tremen.. suring that the funds accumulated for administrative expenses, or otherwise, dous additional burden on the adminis- · future payment of pensions are adequate reduce the benefits to employees. tering agency without corresponding for the purpose, and (b) that of giving Another area of confusion is the fail­ public benefit because 90 percent of the the employees and their representatives ure to distinguish between contractual programs are of the type in which no 1958 . CONGRESSIONAL RECORD- HOUSE 6937 abuses have been found. Interestingly, banking, and business law of the Ameri­ · Your support or this resolution will be in New York, my State, where we require can Bar Association, which has made a appreciated by the members of the com­ the registration of the Taft-Hartley type study of the subject matter under dis­ mission. trusts, approximately 900 funds have cussion, and in its report to the general Very truly yours, been registered and it has been found membership the committee states: G. S. MCINTYRE, Director. that it is necessary to employ one person The resolution proposed by the section or for every 22 plans registered. If we apply labor relations law would put the association INTRODUCTION OF A NEW BILL this ratio to the number of plans being in the position of recommending to the Con­ required to register the number. of gress that it enact blanket legislation impos­ TO AID SMALL-BUSINESS FINANC­ Federal employees would be over 10,000 ing compulsory filing requirements on all ING and using an average salary of $4,000, pension plans and health and welfare funds. Mr. PATMAN. Mr. Speaker, I ask The amendments to that resolution offered unanimous consent to extend my re­ plus other expenses, the annual cost by this section in conjunction with the sec­ would be in excess of $50 million; tion of insurance, negligence, and compensa­ marks at this point in the RECORD. this is considerably more than the un­ tion law are designed to exclude from the The SPEAKER. Is there objection to realistic $1.7 million estimated by the field .of recommended Federal legislation (a) the request of the gentleman from Secretary of Labor and the $2.6 million funds established under level-of-benefit Texas? estimated by the Securities and Ex­ plans, and (b) all funds or whatever kind There was no objection. change Commission. that are already subject to adequate dis­ Mr. PATMAN. Mr. Speaker, several The application of unnecessary report­ closure requirements under Federal law. • • • weeks ago, the distinguished majority Extension of additional compulsory filing re­ ing and disclosure requirements to fixed quirements to qualified funds would merely leader of the Senate, Senator JOHNSON level of benefit plans will result in an in­ impose an additional burdensome and ex­ of Texas, introduced a bill to create a crease of the cost of operating such plans pensive requirement on these funds with no system of small business capital banks. which is unwarranted by any benefit ac­ corresponding benefit to the public or to This bill is a companion bill to H. R. cruing to the employee beneficiaries. the employee-beneficiaries. 10345, which had been introduced in This expense will be particularly burden­ The section of corporation, banking, and the House by me and several other mem­ some if automatic dissemination of such business law accordingly recommends that if bers of the Select Committee on Small the Congress is to enact any legislation re~ It information to all beneficiaries is re­ quiring the compulsory annual filing of Business. is a bill on which we had quired. Welfare and pension. plan financial statements by employee pension put many months--! might even say financing mechanisms are not overly and health and welfare funds such legisla­ years--of work and planning. Accord­ simple and no matter how well managed tion apply only to those funds which do not ingly, on the occasion· when he intro­ a program is, disclosure to all and sundry provide a level of benefits and then only if duced this bill, Senator JOHNSON's re­ will inevitably result in management ex­ the funds are not qualified under section 401 marks in the Senate were most gracious pending unnecessary time and money (a) of the Internal Revenue Code. and complimentary toward our work in answering well intentioned questions If my colleagues will but take the time developing the bill, as they were toward from persons who will not understand to analyze this explanation, as well as i~purpose. · the reports disclosed. my bill, I believe they will agree that The purpose of this bill is one in which· Disclosure of detailed financial data on more harm than good would result from the Senate majority leader has long had plans using the insurance mechanism applying all of the provisions of con­ a deep interest and understanding. The would reveal data which would be of templated legislation indiscriminately to purpose is to help create some machin­ great value to persons who might wish all types of plans. I believe that the ap­ ery-where none now exists--which will to twist or switch policies from one in­ proach taken in my bill, H. R. 11286, is give small firms access to capital, both surer to another to secure higher com­ in the right direction. equity capital and long-term debt capital missions and fees. There seems to be no such as the big corporations obtain from good reason for requiring the insurance the Wall Street stock and bond markets. company to disclose the competitive de­ THE PRESIDENT'S VETO OF SENATE Accordingly, as a result of his efforts tails on individual group policies of their JOINT RESOLUTION 162 to work out legislation for this purpose business. No other business is asked to Mr. HALEY. Mr. Speaker, I ask unan­ that would be broadly acceptable to all disclose their selling and distribution imous consent that the gentleman from sides, Senator JoHNSON introduced a new costs, reserves for depletion, or other Michigan [Mr. DINGELL] may extend his but similar bill of his own which, as r· items on each individual sale to all of remarks at this point in the RECORD, understand it, was drafted with the their customers and competitors. and include a letter. assistance of the staff of the Federal Re-· Requiring disclosure under all plans The SPEAKER. Is there objection to serve System. will seriously interfere with the rights the request of the gentleman from Consequently, I have today introduced of employers, employees, and their repre­ Florida? H. R. 12064, which is identical to the sentatives to contract for employee wel­ There was no objection. bill Senator JoHNSON introduced in the fare and pension plans on the basis best Mr. DINGELL. Mr. Speaker, under Senate yesterday. I have not as yet suited to each set of circumstances. leave to extend my remarks at this point, studied the details of this bill, but, Those who make agreements on a fixed I include a letter which I received from without having done so, I know that the level of benefits basis do so with full the director of the Michigan Department House should consider it; and I know knowledge that the cost to the employer, of Agriculture with regard to President that in general it is a good bill. the operation and management of the Eisenhower's veto of Senate Joint Reso· In one respect the financing is differ­ fund is the exclusive right of the per­ lution 162. ent from that of the bill I previously: sons managing it and that if either the MICIDGAN DEPARTMENT introduced. The bill I previously intro­ employer, the employees or the unions OF AGRICULTURE, duced would provide the initial capital desired it otherwise, the bargaining Lansing, Mien., .tlprfl.l6~ 1958. fo1· the new capital banks by transfer­ could have been done on some other Hon. JoHN D. DINGELL, ring $120 million from the surplus funds basis than that of level of benefits. The United States Congressman from Michigan~ of the Federal Reserve banks. Chair­ Federal Government should not under­ House Office Building, man Martin and several other mem­ take to interfere with such contractual Washington, D. C. bers of the Board of Governors have, DEAR CONGRESSMAN DINGELL: The commlS• to rights on the grounds that such inter­ slon of agriculture, at its meeting on April however, objected the use of these ference is for the benefit of a particular 9, 1958, again discussed the general farm sit­ Government funds for this purpose and group or class. uation and passed the following resolution: have suggested that funds for the new Six States have already passed laws "Moved and supported: That the director agency be obtained from the Treasury dealing with the subject of employee wel­ be instructed to write to the Michigan Con­ instead. Consequently, the new bill fare and pension plans and other States gressional delegation at Washington deplor­ overcomes Chairman Martin's objec­ are actively considering such legislation. ing action of President Eisenhower 1n vetoing tion, which I believe is the only official I would consider the proper place of this a bill to set aside the farm price-freeze action objection to the bill which has been of the United States Department of Agricul~ legislation to be in the State area. ture, and also that the Michigan Congres• raised. The purpose of the bill is the I might here interpose for the informa­ sional representatives be urged to support same. And I believe that all of the tion of my colleagues the following from efforts to override the Presidential veto. Members of the House know this pur­ a report of the section of corporation, Motion carried unanimously." pose is most important. 6938 CONGRESSIONAL RECORD- HOUSE April 22 I believe that there is no more im­ capital as the present capital market is rated and unincorporated firms to take portant legislation before Congress to­ organized, plus the recent high-interest tax deductions for profits used in ex­ day· and the most important thing we policy which caused the big corporations panding the business, up to $5,000, or up can' do is to agree upon and pass a bill to s:Qift their credit demands from the to 20 percent of the profits, not exceed­ which sets up a financing agency on capital market onto the commercial ing $30,000. some sound basis, without waiting to banks and thus squeeze small firms out Second, there. is a feature designed to quibble over and perfect each detail of of this source of credit. help equalize the burden on small cor­ the new agency. After the new agency And last, but by no means least, the porations, and this would reduce the nor­ has operated for awhile, experience will discriminatory burden imposed by the mal corporate income tax rate on the · suggest that changes in minor details present tax structure has been like ·a first $25,000 of taxable income from the will have to be made in any case. The hydrogen bomb exploded in the midst present 30 percent to 20 percent. important thing is that we get author­ of small business. RECOMMENDATIONS WOULD RESTORE WHOLE• ized and operating some machinery PRESENT TAXES IMPOSE UNEQUAL BURDEN ON SOME ECONOMIC GROWTH which will give small firms access to SMALL FIRMS The majority members of our commit­ equity capital and to long-term debt Most of us have long recognized and tee feel that if these two provisions were capital, the lack of which is now help­ understood the ways in which the pres­ immediately adopted, the result would ing to starve out the small-business seg­ ent tax structure discriminates against be a restoration of the Nation's previous ments of our economy. small business and cuts deeply into its level of business investment and a res­ earnings while allowing the giant corpo­ 'toration of the Nation's rate of economic rations to fatten and take over more and MAJORITY MEMBERS OF THE SMALL growth. These provisions would go a more of the business enterprise of the long way toward curing the business de­ BUSINESS COMMITTEE URGE TAX Nation. pression and putting the unemployed RELIEF FOR SMALL FIRMS In the first place, once a business firm's back to work. Mr. PATMAN. Mr. Speaker, I ask income becomes larger than is needed Furthermore, this kind of tax adjust­ unanimous consent to extend my re­ for the immediate living expenses of its ment would restore the kind of economic marks at this point in the RECORD. owners, there is considerable advantage growth which would help correct the The SPEAKER. Is there objection to to the corporate form of organization, in fundamental problem which keeps the request of the gentleman from which case corporate income taxes are bringing about these current recessions Texas? paid, rather than the high individual and depressions. This is the problem There was no objection. income tax rates on all of the firm's earn­ of too much monopoly power which re­ Mr. PATMAN. Mr. Speaker, nowhere ings. In other words, the advantages are sults in administered prices, instead of has the business depression struck harder to be found here in the case of the firm competitive prices, which keeps putting than on the 4 million small business firms that wants to grow by retaining a por­ more and more of a burden on the Gov­ in the United States, and nowhere is the tion of its earnings in the business, ernment to tax and to spend, and to in­ present business slump threatening a rather than paying out all of the earn­ crease the national debt, in efforts to a most serious and a most permanent ings to the stockholders. try to compensate for the maladjust­ damage to the vigor of our competitive But beyond this, there are tremendous ments in · our system caused by mo­ enterprise system. practical differences in the way the cor­ nopoly. According to Dun & Bradstreet, small porate income tax actually falls on dif­ In view of the urgency of this mat­ business failures in the first 3 months ferent firms. As tax students have long ter, the majority members of your Small of this year rose to the highest level since recognized, and as the managers of Business Committee today sent a joint 1933. In these 3 months, at least 4,500 many of the giant corporations have letter to the distinguished chairman of small firms on the Dun & Bradstreet list freely admitted, the corporate income the Ways and Means Committee, the went bankrupt or were forced to close tax is not actually paid by the giant cor­ gentleman from Arkansas [Mr. MILLS], under bankrupt conditions, an average porations, or is paid only in small part. urging that committee's early and fa­ of more than 10 in each of the 435 Con­ With power to administer prices, the vorable consideration of the proposals gressional Districts. How many thou­ corporate giants can, and do, shift the which have been advanced for adjusting sands of other small firms closed their burden of most of this tax, with there­ small-business taxes. I know all Mem­ door::; voluntarily, no one knows, but sult that they have about the same bers of the House will be interested in from accounts coming in from all parts profits, after taxes, as they would have this letter because small business con­ of the country these numbers have risen had if the tax did not exist. How ab­ cerns us all. The letter is as follows: to most distressing proportions. surd it is then, and how disastrous for DEMOCRAT MEMBERS' UNANIMOUS VIEWS CAUSES OF SMALL BUSINESS DEPRESSION the future of competitive enterprise, to APRIL 22, 1958. apply a corporate rate almost the same And the point to be remembered is Hon. WILBUR D. MILLS, this: that the depression is not just now on small and competitive firms that must Chairman, Committee on Ways ana actually pay the tax, as on the giant Means, House of Representatives, hitting the small-business segments of corporation which passes the tax onto Washington, D. C. our economy. The truth is, as we have consumers, to its employees, or to its DEAR MR. CHAIRMAN! These are difficult all known, the epidemic of small-busi­ times for about 4 million small-business ness failures started several years ago small business suppliers and customers. firms in the United States. Nowhere, we and the number of failures each year has SMALL BUSINESS COMMITTEE RECOMMENDATIONS think, has the present business recession been rising, even as the big corporations The majority members of your House struck harder than on the small-business were enjoying unprecedented prosperity. Small Business Committee have made segments of our economy. And nowhere does the present business recession threaten There is no single cause for these small frequent recommendations for needed more serious and permanent damage to our business failures. We have allowed com­ corrections to the small business tax economic system than in its weakening of petitive opportunity for small business problem in this Congress, and in the the competitive vigor of our private-enter­ to deteriorate in several important ways, previous Congress, as we have also made prise system. and the results have all been deadly. To recommendations for bringing about Our committee continues to receive urgent name just three of the important forces needed corrections of other problems pleas for small-business tax relief. We which are working to eliminate small strongly believe, furthermore, than an im­ which deny small firms competitive op­ mediate tax adjustment for small concerns business, I would name these: portunity. would provide a stimulus to the entire econ­ First, a deterioration of our antitrust Early this year the seven Democrats on omy such as could be obtained by no other laws, particularly those laws which were the House Small Business Committee in­ form of tax .adjustment. Small firms are, designed to check big· business' abuse of troduced a bill, which is found in H. R. on the whole, ready and willing to invest in power and to give all business firms a 9957, that would go a long way toward business expansion, and thus bring about a. better chance to compete on the basis removing the inequalities which the renewal of our general economic growth, pro­ vided only that tax incen ti ves allow this of efficiency, rather than sheer financial present tax laws impose upon small potential for growth and for a renewal of might. firms. The principal provisions of this prosperity to become a reality. Second, the chronic and growing prob­ bill are these: In view of the foregoing, we would like to lem raised by the fact that small 'firms First, it contains a plow-back provi­ invite attention to H. R. 9957-9963, identical cannot, as a practical matter. obtain sion which would allow both incorpo..: bills introduced by all of the majority mem- 1958 CONGRESSIONAL RECORD- HOUSE 6939 bers of this eommitee, and to urge especially . would like to briefly discuss the subject of that, as a minimum, favorable consideration investment capital, particularly for small told by a number of my friends who are, be given to two of the provisions thereof business. Our small-business men just can­ that the placing of a major news story permitting: not find Investment funds. Testimony be- on page 46 of a 48-page paper constitutes l. Tax deductions, for both incorporated fore the House Select Committee on Small either deliberate slanting of news by and unincorporated firms, for new capital Business revealed that only 1 percent of the playing down that which is adverse to investment made during the year, up to the total amount loaned by life-insurance com­ policy, or sheer incompetence on the limited amounts outlined in the plowback paines went for loans of under fifty thousand part of the editor responsible: I shall provisions of H. R. 9957. dollars; such loans being the kind most leave to the judgment of this House and 2. A reduction to 20 percent in the rate needed by small business. In fact, only 13.8 of the normal tax on the first $25,000 of percent of this total amount loaned by in­ those whose work is journalism, whether corporate Income. surance companies was for loans of $1,000,000 the Washington Post was guilty of The need for prompt and significant action or less. On the other hand, loans of either. along the lines we have Indicated Is so acute, $10,000,000 or more constituted 56.5 percent The story in question was out of and so fully justified, we felt we should take of the money loaned, even though this money Chicago and bore an International News this means of commending such action to went for only 3.2 percent of the loans made. Service credit line. It reported that your committee. Other testimony before the committee Harry Truman, the grand vizier of the Sincerely yours, revealed that in the latest year for which Democrat Party, had admitted he was WRIGHT PATMAN, Chairman. figures were available, member banks of the JoEL. EviNs, Federal Reserve System money loaned to wrong in his controversy with Arthur ABRAHAM J. MuLTER, businesses with assets of under $50,000 rep- Krock, who is recognized journalistically SIDNEY R. YATES, resented 5.5 percent of the amount loaned far more widely, I am sure, than the ToM STEED, by such banks. This testimony also showed Washington Post editor who handled the JAMES RooSEVELT, that Federal Reserve member banks' loans to story. CHARLES H. BROWN. businesses with assets between $50,000 and Mr. Truman, you may recall, branded $250,000 were 14.5 percent of the total loaned. Mr. Krock as a liar. The ex-President The total loaned therefore to banks with GOV. G. MENNEN WILLIAMS URGES assets of less than $250,000 was only 20 per- said that an interview published by Mr. CREATION OF SMALL BUSINESS cent of the aggregate loaned by Federal Krock, and in which Mr. Truman was CAPITAL BANK SYSTEM Reserve banks. quoted as saying, unemployment was These figures indicate that small business healthful for the country and that our Mr. PATMAN. Mr. Speaker, I ask must have a new source for financing if we economy could comfortably support up­ unanimous consent to extend my re­ hope to achieve any permanent solution for wards of 5 million jobless, never took marks at this point in the REcORD . . the problems of depressed areas-not to place. The SPEAKER. Is there objection to mention the problems of monopoly and According to INS, Mr. Truman con­ the request of the gentleman from giantism which we face everywhere. fessed to a lapse of mind about the Texas? Therefore, I would urge the enactment of legislation similar to H. R. 10345, providing Krock interview and added that Dean There was no objection. for a Small Business Capital Bank System, Acheson, his former Secretary of State, Mr. PATMAN. Mr. Speaker, this in order to supply the much-needed capital had refreshed his memory. Mr. Tru­ morning the distinguiShed Governor of for small business investment. I have man also was quoted as saying he had Michigan was gracious enough to ap­ studied this bill, and believe that it would sent a written apology to Mr. Krock and pear before the House Committee on provide a sound answer to one of the major a request to the chairman of the Bank­ Banking and Currency, to give our yom­ reasons why we have unemployment to­ ing and Currency Committee to set the mittee the benefit of his advice and day-a shortage of capital which prevents record straight. counsel on a number of proposals that the small entrepreneur from either beginning or expanding his business, with a consequent This incident, I believe, points up are being considered to combat the stifling of new job opportunities. rather dramatically the manner in which business depression, to put the unem­ Mr. Truman and some other leaders of ployed back to work, and to put our eco­ his party will stoop to distortions in nomic system back on a sound footing. CONTESTED ELECTION REPORT their efforts to foist upon the public As we all know, it has been Governor their unique propaganda. Williams' untiring devotion to our eco­ Mr. ASHMORE by direction of the I must, however, take serious excep­ nomic welfare as much as anything else Committee on House Administration re­ tion to Mr. Truman and others of his that has established him as a national ported the following privileged resolu­ party who, through misstatement and leader, as·well as an efficient and highly tion

G944 CONGRESSIONAL RECORD- HOUSE April 22 name. Under it we will get housing that mended and surveyed by the Engineers biles. The democrats have an obliga­ we expect will restore housing construc­ and approved by the Director of the tion to either take this up· at once or let tion to the level we have had in the last Budget. the people know it will not be con­ 3 or 4 years. Mr. BECKER. If the gentleman from sidered. Right now sales are being held In addition to the housing bill passed Ohio will permit, I know something up because of the uncertainty. by this Congress and which was drawn about this rivers and harbors bill, hav­ I am for acceleration of good projects by Members on this side of the aisle, I ing served on that committee for 5 years which have been held back. Such is point out the rivers and harbors bill that prior to January of this year. I know being done. I would point out though the President vetoed. Unfortunately why the President vetoed it on two suc­ that if we want to stimulate our economy that would have made a great contribu­ cessive occasions. and get some action of a permanent na­ tion in my own community and we had I, too, have a project in that bill which ture, we are not going to do it as was quite a stake in that legislation. It was was a very important project and an proven for 10 years from the beginning meritorious and should have been con­ urgent one on Long Island. But I an­ of the New Deal until the beginning of sidered by this Congress earlier. I think nounced to the people of my District that the World War II by Government spend­ the President's veto of this legislation is the bill the Democrats insisted on put­ ing alone. We had better give a boost going to be very costly in th~ long rl;ln. ting over I could not in all conscience to the $330 billion of the private economy Mr. CEDERBERG. Mr. Speaker, will vote for, that I would have to vote of this country rather than try to jack it the gentleman yield? against it on the floor of the House. I up with the taxpayers money in the Gov­ Mr. BECKER. I yield to the gentle­ did vote against it, and I would vote ernment segment of our economy which man from Michigan. against it again, under the same cir­ accounts for about 70 billion of the total. Mr. CEDERBERG. The gentleman cumstances. I would like to compliment the gentle­ from Ohio knows that the bill the Presi­ Secondly, let us talk about the hous­ man from New York for his presenta­ dent vetoed, the rivers and harbors bill, ing bill. If your side of the aisle had tion. I agree that decline is contagious was an authorization bill. There was gone along with increasing the interest in nature and believe that some people not a project in that bill on which con­ rate on veterans' housing from 4% to want to spread the disease. If so, they struction could have been started this 5 percent we would never have gotten will keep on talking about it and fan­ year, and probably not next. The proj­ into this crisis in housing and building. ning the fire. If they really want to ects that were objected to were those The veterans in my area, I know, would take care of the situation, let us get that had not been cleared by the Corps have been glad to pay that extra one­ down to doing a few practical things, of Engineers on a cost-to-benefit ratio, half of 1 percent in order to get housing. and not jump off into a big public spend­ or any other base. You refused to do that. Now at this ing program that is only going to bank­ The gentleman knows that an author­ hour you have come up with a housing rupt this country and place our children ization bill usually comes in 1 year and bill. up against a bigger and bigger public it may be the next year or even 5 years be­ In relation to highways, let there be debt. fore an appropriation is made under it. no mistake about this, the highway rec­ Mr. BECKER. I thank the gentleman. I do not think we should fool the ommendation was made by the Presi­ Mr. AVERY. Mr. Speaker, will the American public into believing that the dent in 1954. That bill was passed in gentleman yield? veto of the rivers and harbors authoriza­ 1956. The only reason there was any Mr. BECKER. I yield to the gentle­ tion bill could have any adverse effect holdup in the work on the Interstate man from Kansas. when construction on those projects System this past year was because the Mr. AVERY. The gentleman from could not be commenced either this year funds were not provided in that bill. I Wyoming has just referred to a point or next year. hope it will be corrected now. I think maybe should be developed a · Mr. VANIK. Mr. Speaker, will the Mr. THOMSON of Wyoming. Mr. little further, especially in respect to gentleman yield? Speaker, will the gentleman yield? some of these so-called crash programs Mr. BECKER. I will ask the gentle­ Mr. BECKER. I yield. · that have been proposed. I do not want man to allow me to yield first to the gen­ Mr. THOMSON of Wyo'ming. I think this to be a political observation such tleman from Illinois [Mr. ALLEN]. it is fair to observe that the gentleman as my previous remarks were. As we all Mr. ALLEN of Illinois. I want to con­ started out on the proposition of the agree on both sides of the aisle, there is firm what the gentleman from Michigan people talking about crises. Immediately a large group of people who are on fixed just said with regard to the rivers and the gentleman from Ohio here is trying incomes that we as Members of Con­ harbors bill. I think all of us know that to talk up a crisis. I for one recognize we gress have a responsibility to in the way it contained some $200 million of proj­ have had an economic recession of sorts, of preventing any further inflation in ects that the Engineers did not recom­ but I want to make it clear right here their cost of living. I have a consider­ mend, neither· did the Bureau of the and now that as I see the general eco­ able amount of apprehension on these Budget recommend them. I believe nomic condition of this country it is programs that have been proposed that there were 11 such projects in which sound, and I have confidence we are they will have no perceptible effect on the Engineers never had been at the going to work our way out of it without our economy except for 1 year or maybe 'site where it was proposed to build these doing all of these things that certain 2 years or sometime in the future at the public works. people propose to do, whether we need very time we might get into another in­ I had a project in that bill myself, a them or not. flationary period. I think we should project which was recommended not Last January the so-called liberals of view rather carefully these programs to only by the Corps of Engineers but also the Democrat Party came out with a make sure that we do not develop an in­ by the Director cif the Budget. Notwith­ manifesto asking for everything they flationary effect on our economy at the standing that, in view of the fact that it seek to put across today. very time that it would have a most ad­ contained $200 million of unauthorized· I think it is fair to observe that the verse effect especially on the annuitant projects I think that the President was economic soft spots are limited to cer­ and other persons on fixed incomes. right in vetoing that bill. I told the tain categories and that automobiles is Mr. VANIK. Mr. Speaker, will the President that even though I did have one of the outstanding among these. gentleman yield further? a project in there I hoped he would do I think we should also observe that Mr. BECKER. I yield. so. one labor leader, Mr. Reuther, has pretty Mr. VANIK. I just want to say I am The Republicans propose to present a well proven that you can price a product very grateful to the gentleman from bill in the near future carrying those out of the market. New York for giving me the opportunity rivers and harbors projects which are Suggestions have been made that we to reply. authorized by the Corps of Engineers remove the excise tax on automobiles, Mr. BECKER. Might I say to the and recommended by the Director of the that we remove the wartime freight ex­ gentleman from Ohio that I believe in Budget. There are 11 projects which ~ise tax. I think we ought to do both. that, and I would not want to cut him bad not received such approval. They But we should either do such or quit off for a moment. will be out of that bill. talking about it. Talking is what the Mr. VANIK. I would just like to say I hope the membership on the other opposition seems to continue to insist this: It is absolutely wrong to prophesy side of the aisle will get behind us. We upon doing. That in itself has had a gloom and doom: I think it is equally have projects which have been recom- depressive effect on the sales of automo- wrong to give people false hopes about 1958 CONGRESSIONAL RECORD- HOUSE 6945 the economy being able to cure itself. Mr. BECKER. I yield. from the Bureau of the Budget, nor do I do not think it has any answer without Mr. RHODES of Arizona. I want to we have to take them from the Corps help from this Congress. I do not like compliment the gentleman from Ohio of Engineers. The Congress has spoken to see it develop into a chronic problem, for not only being on the floor but put­ and has said that we are going to have a serious problem, a problem that could ting forth in well chosen words what I construction throughout the land so that become contagious throughout the consider to be the attitude of at least a the people will have confidence and will world. And, I think that the distinc­ large segment of the people on his side go out and spend their money. Never tion between our two approaches is that of the aisle. We disagree on means of before in our history have the banks on your side it is to sort of sit it out and accomplishing the same thing, I believe been so filled with funds, with savings see what is going to happen, and the I can safely say. There is not a person at an alltime high. And yet we have other approach, on this side, to cure this in this Congress who does not want to over 6 million people unemployed. matter before it gets out of hand. make sure that the economy is on as What the President failed to do last Mr. BECKER. Might I say to the safe a basis as possible and that the year was to lead the Republicans in pass­ gentleman from Ohio that the President economy is rising. However, I do want ing the school construction bill, so that of the United States, in my humble opin­ to reiterate something I said before and we could have construction going on now. ion, has taken every step within his power which I think we should always bear in What we complain about is the lack of in recent months to do something about mind, and that is that in the long run leadership on the part of the adminis- it. He has not only advocated but has when we look through the bifocals you - tration. The gentleman may say that taken steps within his jurisdiction within see an entirely different picture than you he does not like the Rivers and Harbors · the executive branch of the Government. would if you just looked at the valleys bill because there was a little pork in Now, what additional has to be done? that you happened to be in at the time. it, but it would have been a clarion call Rather than talk about gloom and And, by looking at that particular valley to the people all over the United States doom, crisis and hysteria, the Congress and in taking such action as you think that we intend to lead them out of this take action which it believes is necessary is necessary in the kindness of your recession, which is a very important to be taken. As the gentleman from heart to get out of that valley and help recession for 6 million people. Kansas has indicated, it would be spend­ those people out, you may be doing some­ Mr. BECKER. Mr. Speaker, I am ing us deeper into the grave, creating thing which in the years ahead may sorry to interrupt the gentleman, but I more inflation, more interest on our na­ prove to ·be to their detriment. In the decline to yield further. I have yielded tional debt, and at the same time they kindness of your heart you may do those the gentleman plenty of time. expect us to reduce the tax burden on things. Therefore, I ask again that this Mr. SANTANGELO. I have not com­ the people where it is badly needed. Congress in this case please do not over­ pleted my statement. Mr. NEAL. Mr. Speaker, will the gen­ control the situation. The economy is Mr. BECKER. The gentleman will .tleman yield? not something which is subject to all of have plenty of time tomorrow or some Mr. BECKER. I yield to the gentle- the whims of mankind, and anybody, day in the future to speak on this sub­ man from West Virginia. ' ·any economist or anybody who thinks ject. But I should like to say this to the Mr. NEAL. I have been very much in­ that an economy can be completely con­ ·gentleman. I am quite sure that the terested in this discussion. I think it is trolled from A to Z, like we have from gentleman does not know much about a good thing for us to open our hearts time to time been trying to control this the rivers and harbors bill because New once in awhile and go back and review one, is just thinking wrong economically. York State, in that bill, was getting one some of these things. I can review over He is thinking wrong economically and of the greatest scuffi.ngs it ever· got in a period of time much longer than the politically and, as far as human nature the history of that kind of legislation. average man speaking here today, and is concerned, he just could not do more In New York State we were being asked I remember a great many times when we harm, because humans do not react to to pay 50 percent on our projects on the had pretty severe depressions long before that kind of control which you would State and local level, whereas there were the big collapse of 1929. I remember, have to have to make sure that the areas included in the bill all over the too, that in those days there were no par­ economy is on the same key all the time country, as the President mentioned in ticular efforts being made on the part and that everybody is living on beer and his veto message, that were paying no of the Government to bring us out. I skittles 24 hours a day. contribution at all, or paying only 10 remember quite well that we always came Mr. BECKER. I appreciate the gen­ percent, or 15 percent, or 20 percent. In out of those little disturbing panics from tleman's contribution. New York State we were being asked to time to time much more prosperous and Mr. SANTANGELO. Mr. Speaker, will pay 50 percent. much more progressive than we had ever the gentleman yield? Mr. Speaker, one other thing. The been prior to that time. Until the 1929 Mr. BECKER. I am glad to yield to gentleman mentioned the farmers. He panic I think I can safely say that no my colleague from New York. was crying for the farmers. I am for extreme Government procedure in an ef­ Mr. SANTANGELO. Mr. Speaker, I the farmers, too. I was raised on a farm, fort to try to bring prosperity out of a was very interested in the gentleman's and I know the work of the farm. But period of depression was ever tried to the remarks this evening and also the pre­ let me say to the gentleman that in that same degree, with practically no results pared remarks of the other Members on freeze bill, what was being done for the in returning prosperity to the Nation and the gentleman's side, castigating the poor people in New York City? Nothing, returning people to normal jobs. I Democrats for criticizing his adminis­ except they would be compelled to pay think we can just use that observation. tration for not taking the leadership in taxes in order to pay the price supports And, I think even now, while we may be getting us out of this depression. to the farmers, in order to keep prices able through past legislation to do· cer­ I have listened to the comments made up on the food for the tables of the poor tain things that have been built in in by my colleague from Illinois, and I people in New York City whom the order to bolster this situation, that we think there is one conclusion that we gentleman represents. That is all that ought to use them, and I say that it would may draw. What this country needs is ·that bill would have done. That is why be foolish if we did not. But, to expect inspiration and leadership. We need I opposed that legislation and that is anything like the wild return of extrava­ confidence. why the President in all conscience had gant spending of public money like that The only reason I object to the veto to veto it. And he should veto that kind which occurred during the period of 1930, by the President of the two measures he of legislation whenever it is passed. 1932, and 1933 on up until the Second vetoed this year is the fact that we are Mr. CEDERBERG. Mr. Speaker, will World War would be a complete flop and telling the people we are doing nothing the gentleman yield? leaYe this country not only in a highly for them, and we are continuing the Mr. BECKER. I am glad to yield to inflated state but without any credit and feeling of insecurity. The farmers look the gentleman. without any great amount of restoration to the President for relief. The Presi­ Mr. CEDERBERG. Mr. Speaker, of prosperity after all. dent vetoes the price-support bill, the bill to compel the Secretary of Agricul- when I served on the Committee on Mr. BECKER. There is a great deal of Appropriations, I was a member of the · truth in the gentleman's observation. ture not to reduce prices below last Mr. RHODES of Arizona. Mr. year. Subcommittee on Civil Functions han­ Speaker, will the gentleman yield fur­ Then along comes the dvers and har­ dling Corps of Engineer projects. At that ther?. bors bill. We do not have to take orders time we had an agreement, which was 6946 CONGRESSIONAL RECORD- HOUSE April 22 a good agreement, between the Demo­ taking action to help the people, and American citizen will benefit by a more crats and the Republicans on the com­ you are not giving them the confidence prosperous Alaska. Statehood will cre­ mittee, that no money for any project, which the people so sorely need and ate new markets which will be a boon to even though it had been authorized, which you so strongly refuse to give. the economy of the Pacific Northwest in would be approved if the project had not The gentleman is talking of his com­ particular. been cleared by the Bureau of the Budg­ munity on Long Island. You have a Fourth. It proceeds from the false as­ et and the Corps of Engineers in their beautiful community. But, my colleague sumption that Alaskans would wish to appearance before the Bureau of the does not seem to realize that when the discriminate against nonresidents, that Budget. That was in connection with people of a poor district such as I have, is, would impose-without reason or appropriations for these projects. At when my people who work and toil and justification-restrictions upon nonres­ that time we just felt it was not in the struggle have to pay the highest prices idents because they are not Alaskans. best interest of the people of the United in history with this recession and un­ In fairness, it might be said this par­ states to spend their tax dollars on proj­ employment going on, they are entitled ticular erroneous assumption may be ects which were not feasible from an to some help. based upon familiarity with the Revised economic point of view. The President The SPEAKER pro tempore. The Code of Washington. The Washington was very wise, I believe, in stopping this time of the gentleman has expired. Code contains approximately 20 ex­ at the authorization point and not at amples of discriminatory license fees for the appropriation point. Certainly, the commercial fishing; typically, nonresi­ gentleman from New York does not want STATEHOOD FOR ALASKA dents must pay five times the amounts to mislead anybody into thinking that The SPEAKER pro tempore. Under which residents of Washington are re­ any construction in this vetoed authori­ previous order of the House, the Dele­ quired to pay for licenses. But the zation bill could have been started at gate from Alaska [Mr. BARTLETT] is rec­ small group of Washingtonians which least before the fiscal year budget of ognized for 15 minutes. entertains concern about legislation 1960. It could not have been done earli­ Mr. BARTLETT. Mr. Speaker, a small which the State of Alaska might adopt er than that so Congress can be guilty minority of people in Washington State regarding nonresident fishermen will too of trying to mislead the public when, has expressed concern that statehood .receive comfort from studies indicating of course, there is no such attempt. for Alaska might allow a comparatively that Washington's treatment of non­ Mr. BECKER. If the gentleman, right few individuals in Alaska to rule the resident fishermen is unconstitutional. at that point, could inform my good col­ Alaska ·fishery. Any concern, based As said in the Washington Law Review league from New York, with whom I apparently on the fear that under state­ and State Bar Journal: served in the State legislature, and for hood, non-Alaskans would be excluded Although, as suggested, there are argu­ whom I have a very high .regard, prob­ from participation in the Alaska fishery, ments which might sav~ the provisions, they ably <;loes not know that we do not need is needlessly entertained. are largely based upon the antique proprie­ this rivers and harbors omnibus bill, that As an example of supposed attempts tary interest doctrine, and abound more with we have over $7 billion of projects au­ by Alaskans to discriminate against non­ ·technicality than with justice and reason. thorized on the shelf and all the Com­ residents, a bill which the Alaska Terri­ It is therefore to be expected that should torial Senate defeated in 1957 has been ·these provisions (imposing license fees upon mittee on Appropriations has to do is nonresidents approximately five times greater to make an appropriation and get them cited. The bill would have levied a tax than those imposed upon residents) ever be . under way. This rivers and harbors bill on the value of catches of salmon ex­ contested before the Supreme Court, they has nothing to do with what we are talk­ ceeding $20,000. Because non-Alaskans will be held unconstitutional. typically carry on large employee-type ing about-getting jobs on the road to­ Fifth. It proceeds from the false day. There are $7 billions of projects operations, it has been contended that the bill would have discriminated against assumption that the bill defeated in that are already appi:oved by the House the Alaska Legislature which would Committee on Public Works and by the them and in favor of local, independent, Alaska fishermen. have taxed catches of salmon whose committee of the other body. They are value exceeded $20,000 was discrimi­ the law and you have them, and they are The small group which has expressed on the shelf and all the Committee on this concern warns of its opposition to natory against nonresidents. Since we Appropriations has to do is to put them Alaska statehood unless the Secretary of Alaskans believe that local lawmakers the Interior gives assurances that the should have authority within their on the road. proper sphere, comment upon the wisdom Mr. SANTANGELO. Mr. Speaker, will State of Alaska will promote the cause of the gentleman yield? fishery conservation and will afford pro­ of the legislation which the legislature Mr. BECKER. I yield. tection and equal participation for non­ debated would not be appropriate. But Mr. SANTANGELO. Does not the resident fishermen. criminatory against nonresidents. It gentleman realize that when he talks The alarm of this small group is wholly said nothing about residents and non­ about consumer prices that the prices are inappropriate. It proceeds from six false residents. And its policy of gradual tax­ the highest that they have ever been in assumptions: ation, with the heavier tax burden placed history and the farmers are getting the First. It proceeds from the false as­ upon the most successful harvesters, least amount of money that they have sumption that Alaskans would permit might well be justified as a conservation ever received? the management of their State govern­ measure, or for other intelligible grounds Mr. BECKER. I do not know that. Is ment to be unresponsive to the will of of policy. The bill would have applied the gentleman asking me a question? the people, and that the State govern­ equally to all persons under similar cir­ Mr. SANTANGELO. That is a fact ment would be the servant of a small cumstances and conditions, regardless of that has been brought out in debate on group of individuals. it cannot be said that the bill was dis­ the :floor of the House. Second. It proceeds from the false as­ their residence. It is not an example of Mr. BECKER. If the gentleman will sumption that Alaskans are not conser­ discrimination-and would not have been mention some products, then I will know· vation-conscious. The fact is that no even if Alaskans had adopted it. More­ and if he can give me the compariso~ people on earth are more conservation­ over, the Supreme Court of the United prices of what he is getting now and conscious than the people of Alaska. States sustained, in Pacific American what he got 2 years ago. 1 The record is clear that popular interest Fisheries against Alaska, a graduated tax Mr. SANTANGELO. Evidently, the in conservation is a motivating factor upon salmon canneries. The rate of the gentleman did not listen to the debate in Alaska's quest for self-government. tax increased with the amount of cases on the farm bill which I did listen to. Alaskans resist suggestion that they packed, and the Court held that the tax That debate indicates that the farmers should receive special treatment. They was constitutional. are getting 40 cents of the consumer's want only to have the same rights as Sixth. Finally, the alarm of the small dollar whereas several years ago, the · their fellow Americans, whose State Washington group proceeds from the · farmer was getting about 48 cents of the governments-in 48 instances-manage false assumption that a State can law­ consumer's dollar. But, be that as - ~t the fish conservation programs. fully discriminate against nonresidents may, the reason we are talking here Third. It proceeds from the false as­ in a manner forbidden to a Territory. today is to inspire confidence and when sumption that statehood will be detri­ Restrictions upon the Alaska Legislature the President vetoes measures that in­ mental to the economy of the Northwest. regarding treatment of nonresident fish· dicates that the administration is not The opposite, of course, is true. Every erm{m are part of a CongressionalJ?olicy.. 1958 CONGRESSIONAL RECORD- HOUSE '6947J At· the present time, Congress· has not that the State owns fish and game with­ ports of cotton textile goods to the United relieved the Territory of restrictions in its boundaries has been exposed to the States in 1957, with the exception noted which the Constitution fixes immutably light of reason, and the purported own­ below, came to 214,970,000 square yards or ership has been recognized as merely 8.5 percent under the quota. Nor has the upon the States, but the Supreme Court export total in any individual subcategory of has said that Congress could do so. In "a sort of guardianship for social pur­ cotton textile goods exceeded the established. Haavik against Alaska Packers' Associa­ poses." And such cases as Toomer quota for its category. tion the Court said: against Witsell reveal the views of the Unfortunately, certain unscrupulous in­ Citizens of every State are treated alike. Supreme Court, which stand in shining dividuals have tried to circumvent these Only residents of the Territory are preferred contrast to the earlier district court de­ controls, and in 1957 some transshipments • • • we find nothing in the Constitution cision in the Lubetitch case. occurred through third countries. As soon which prohibits Congress from favoring those Washingtonians, then, should be in as these cases came to light the Japanese who have acquired local residence and upon the forefront of the Alaska struggle for Government and exporters associations im­ whose efforts the future development of the statehood. Any other position would be mediately took steps to strengthen the al­ Territory must depend. ready existing controls over transshipments an economic and legal paradox. For so that they might operate effectively to In 1952, in Mullaney against Ander­ they stana to gain directly from new preven't transshipment through practically son, the Supreme Court reiterated "the markets and new investments, and new all ports in the world. The Japanese Gov­ power of Congress to relieve the Terri­ popular interest in the Pacific North­ ernment has thoroughly investigated the tory of some of the restrictions appli­ west-all of which will follow statehood. cases of transshipment which have been cable to a State." Nor can Washington fishermen be brought to its attention. The necessary Thus, the Constitution rigidly fixes re­ happy about the present Federal conser­ legal steps have been taken by the Japanese strictions upon the States in their treat­ vation program in Alaska. Their hope Government and the exporters' associations to severely penalize the offenders through ment of nonresidents, but restrictions is that a vigorous State program can the imposition of cash penalties, the reduc­ upon the Territories are made and ad­ preserve for the Nation a great resource. tion or suspension of export quotas for the justed by Congressional policy decisions The lance which will secure their future fol~owing period, and the suspension of for­ designed to meet contingent situations. is a policy of cooperation with the peo­ eign exchange for the purchase of raw cot­ Statehood for Alaska, then, will bring ple of Alaska in tackling common prob­ ton. nonresident fishermen underneath the lems; their shield will be the Constitu­ In regard to velveteens, the quota which sheltering, durable umbrella of the su­ tion of the United States. And as the the Japanese Government fixed represented preme law of the land. For example, the Secretary of the Interior has said: a severe curtailment of velveteen exports to Constitution prohibits a State regulation Statehood • • • will enable (Alaskans) the United States, and resulted in a substan­ regarding fisheries from abridging the to develop Alaska's natural riches and there· tial production cutback for the velveteen equal privileges and immunities of citi­ by enlarge their contribution to the eco• industry in Japan, causing unemployment nomic good of all America. and hardship for a considerable number of zens who live outside the State. Thus, workers. The Japanese Government is aware Toomer against Witsell held invalid a of the fact that a similar problem of a re­ South Carolina statute which imposed a JAPANESE COTTON TEXTILE EX­ duction in production has existed in the vel­ $2,500 license fee on nonresident fisher­ PORTS TO THE UNITED STATES veteen industry in the United States. men as contrasted with a $25 fee for The SPEAKER pro tempore. Under Today, Mr. Speaker, they are down to local residents, and which required that previous order of the House, the gentle­ only a few hundred employees at the fishing boats had to bring their catch of woman from Massachusetts [Mrs. Merrimack Manufacturing Co. at Lowell free-swimming fish into South Carolina RoGERS] is recognized. where I live, and if something is not done ports for inspection, packing, and stamp­ Mrs. ROGERS of Massachusetts. Mr. to alleviate their condition the mills will ing. Speaker, I am going to read a release have to close their doors almost imme­ Takahashi against Fish and Game which came from the Japanese Embassy diately. A year ago they employed 11,040 Commission held invalid a California on April 18, entitled "The First Year of workers. statute excluding aliens from fishing Japanese Voluntary Controlled Program Another problem came from American im­ along the California coast. The Califor­ for Cotton Textile Exports to the United porters and . consumers, among whom there nia statute, said the Supreme Court, de­ States." is an evergrowing demand for Japanese cot­ nied to the petitioner-alien "the equal I was very active in getting the vol­ ton goods because of their reasonable prices protection of the laws" which the Consti­ untary control with the Japanese of and good quality and design. The Embassy tution guarantees. their cotton textile exports to us of cot­ of Japan in Washington, for instance, has The burden of proof of constitutional­ received innumerable requests from· Ameri­ ton velveteen. It was considered a good can importers for allotments of more Japa­ ity is upon the State which must justify arrangement when the voluntary agree­ its treatment of nonresidents as a legiti­ nese cotton goods. ment went through. It is obvious that at the outset of a control mate exercise of the police power. The The statement reads as follows: program of this kind it is very difficult to State cannot treat nonresidents arbitrar­ In 1957 Japan's trade with the United stop such transshipments. Measures to pre­ ily, or fashion its statutes to exclude States resulted in an enormous deficit, as vent such occurrences become more effective them from participation in the exploita­ her exports to the United States amounted as the program progresses. With the expe­ tion of the .fish resource. Thus Russo to only $636 million, while her imports from rience of 1 year's operation of this program against· Reed held invalid a Maine stat­ the United States reached a total of $1,431,· during which there has been a tightening of ute which prohibited nonresidents from 000,000. Even taking into account invisible the Japanese Government's export licensing fishing comm·ercially in Maine coastal trade, including spending by United States system generally and violators have been forces stationed in Japan, Japan's payments severely penalized as described above, these waters during summer months. deficit with the United States amounted to antitransshipment measures have become These examples are not exhaustive, $516 million in 1957. It is, of course, the largely effective and it is the belief of the but they demonstrate some of the con­ earnest hope of the Government and people Japanese Government that this problem has stitutional limitations upon a State's of Japan to reduce such a large deficit and been overcome. treatment of nonresidents. In addition, to promote mutually beneficial 2-way trade between the 2 countries. Notwithstanding Mr. Speaker, that is the end of the of course, a State cannot burden inter­ release of April 18 from the Japanese state commerce, and must conform to this general desire, the Japanese Govern­ the requirements of due process. ment has instituted a program for control­ Embassy. ling exports of cotton textiles to the United Mr. Speaker, during the time of the How did the small group of Washing­ States. transshipment of velveteen goods from tonians which has expressed concern, This program was instituted for the pur­ Japan, while the Government claims so widely misconstrue the law? Again, pose of insuring the orderly marketing of Japanese cotton textile goods by avoiding they were not responsible for the sending in fairness, the group's confusion may of the Japanese goods to the trade, they be rooted in the experience of the State excessive concentration in any particular of Washington. Back in 1925, a Federal period or in any particular item. This is at least knew it was going on and did along the line of the general policy of the nothing to stop it. I, together with all district court upheld a Washington stat­ Japanese Government for the development ute which excluded aliens and nonresi­ the workers and employers of the indus­ of orderly and mutually beneficial trade re­ try all over the country, are begging that dents from fishing within the State. lations between Japan and the United But there is little doubt that this case. States. something be done to not only stop the Lubetitch against Pollock, would be de­ . Against the overall annual quota of 235 shipment of Japanese goods outside of cided differently today. The old notion million square yards, the total Japanese ex- ·the quota-the velveteen goods-into 6948 CONGRESSIONAL RECORD-HOUSE April 22 this country, but to withhold Japanese FIFl'EENTH ANNIVERSARY OF DIS­ Katyn Forest. These war crimes trials velveteen shipments for a time. COVERY OF RUSSIAN MASSACRE seemed. to mock justice, 'With Russia I believe, as do many others, that the OF POLISH CITIZENS AT K.ATYN condemning other nations and other Japanese Government should withhold -citizens· without having to answer her­ The SPEAKER pro tempore. Under self for her own crimes and atrocities. the shipment of Japanese velveteens to previous order of the House, the gentle­ the United states until the amount over · The American peopre should remember man from Illinois [Mr. SHEEHAN] is rec­ these Russian activities and not be lulled .the quota this year of Japanese velveteen ognized for 20 minutes. is made up, so that the velveteen industry by present-day appearances. The new of this country will have a chance to . Mr. SHEEHAN. Mr. Speaker, this Russian Ambassador to Washington, ·continue to operate. In this last year week marks the 15th anniversary of the Mikhail Menshikov. seems to have been the velveteen yardage has been greatly diplomatic events occasioned by the greeted as· one of the new looks in Rus­ over their voluntary quota. Most of it revelations of the massacre of thousands sian diplomacy. However. in 1946', a of Polish Army officers and citizens by Congressional committee pointed out in the first months of the year's agree­ the Russians in the Katyn Forest, near ment. that this same man was running the ·. I have begged the Department of Com­ Smolensk. UNRRA operations in Poland and dis­ ·merce, the Department of State, and the Fifteen yea,rs ago yest.erday, on April tributing the food, not to starving· Poles Japanese Embassy that this be done. 21, 1943, Dictator Stalin sent letters to on the basis of need, but strictly on the In this release there was no answer to President Roosevelt and Prime Minister basis of being Communist Party mem­ the question that I posed and that .Churchill, advising that Russia was go­ bers. others have posed to the Japanese. I ing to sever diplomatic relations with the Menshikov, in distributing this food, believe that the Japanese would be glad, Polish Government in Exile in London. claimed the credit for the Russians, perhaps, to go ahead and accede to at The Polish Government had approached rather than for America, who gave the least part of our request. I suppose their the International Red Crass to conduct food. This proved a very handy tool to manufacturers and workers are object.­ a neutral investigation in order to ru:;cer­ win friends and influence many Poles to ing, but I am sure the Japanese realize tain who was guilty of the massacre of join the Communist movement. The that if we stop the reciprocal treaty and Polish citizens. Congressmen, in 1946, protested this ac­ stop their voluntary quota and pass leg­ Four days later, on April 25, 19.43, So­ tion to the President of the United States. islation that would fix quotas that they viet Russia officially severed diplomatic Mr. Menshikov was· soon recalled from would be in a very much worsened con­ relations with the Polish Government, his position, and a Canadian took his dition than they are today. and the correspondence on this matter place. Now this same Russian is being This Government, I suggest, has spent has appeared in an official Soviet publi­ openly receiYed and acclaimed by many millions and I believe billions of dollars cation issued in Moscow in 1957. This people in Washington who do not re­ in foreign aid to other countries and Russian Government publication con­ member the facts of history. the continuation of the reciprocal trade tinues to uphold Stalin's version of this Although America and the rest of the ·agreements, but I believe they will have atrocity. world may have chosen to forget the very hard sledding ·in getting their pro­ As the Congressman who introduced facts of Russian brutality in the Katyn gram across this year when also millions the first resolution to investigate the Forest massacre, it is to be hoped that have been spent in propaganda: for that Katyn Forest massacre in the 82d Con­ someday the Russian leaders who per­ .program if the members feel it is going gress, and who served as a member of petrated and ordered such atrocities will to mean the closing down of our own that investigating committee, I feel that be brought to justice. industries in the United States and it is fitting that the people of our coun­ Our citizens should remember that th~s throwing our people out of work. It will try and of the world should take cogni­ 1939-40. Russian p~ot . to destroy the in­ cause intense suffering in this country zance of the Russian duplicity in this telligentsia of the Polish Nation was but if that situation is not corrected. Those crime.. With the help of Mr. Charles a preliminary step in the Russian long­ of us who live in the towns and cities Rozmarek and the Polish National Alli­ range plan to make a Communist satel­ where cotton textiles have been so ter­ ance, the American people became in­ lite out of Poland. By destroying the ·ribly hurt have seen the great hardship terested in this matter and bega,n writ­ Polish intelligentsia, their religion, and which exists, the striving to get enough ing their Congressmen, which was most their ownership of private property, the to eat and. wear; it is very intense. In beneficial in getting the legislation con­ Russian Communists have planned to my peopie it is developing a tremendous sidered. forever destroy fr.eedom in Poland, and dislike of our foreign aid and reciprocal The select Congressional committee every American should constantly be on trade agreements programs. I do not found unanimously~ after a great num­ the alert to guard against any possibility believe anybody wants to stop entirely ber of hearings and a great amount of of the remotest kind that such a move­ foreign trade or reciprocal trade agree­ evidence, that Russia was guilty of this ment might begin in this country. ments if they be reciprocal; but, cer­ inhuman atrocity against the people of tainly, in the instance of cotton Poland. velveteen and certain other instances, From a review of the angry message AIR SAFETY the agreements have not been reciprocal. which Soviet Premier Stalin wrote to The SPEAKER pro tempore. Under I urge with all the strength of _my Prime Minister Churchill and President previous order of the House, the gentle­ being that everybody help in this situa­ Roosevelt in April of 1943, it is evident man from Michigan [Mr. MEADER} is tion, because I believe that the Japanese that Stalin was dismayed at the turn of recognized for 30 minutes. if they realize how sincerely and how events, especially in view of the fact that Mr. MEADER. Mr. Speaker, I ask strongly we feel about this matter would he knew the guilty persons would even­ unanimous consent to revise and ex­ voluntarily reduce the export of velve­ tually be known. Stalin blamed this tend my remarks and to include extra­ teen yardage to the United States. We monstrous crime on Hitler's invaders, neous materiaL mal{e very beautiful velveteens in this and he accused the Polish Government The SPEAKER. Is there objection to country. . It is a great tragedy to liter­ in London of collusion with the Nazis. the request of the gentleman from Mich­ ally destroy the oldest manufactured ·As it turned out, Stalin was using the igan? product in the country. . I refer to the Katyn charges as a first step in the com­ There was no objection. Merrimack Manufacturing Co. which is munization of Poland. Mr. MEADER. Mr. Speaker, I have nearly a hundred years old. At one We should continuously call to the at­ just introduced a bill to amend the time it employed 5-,000 workers. tention of the American public the du­ Federal Airport Act to require the Secre­ The owners and the workers in the plicity and faithlessness of the Russian tary of Commerce in establishing the na­ Merrimack miUs feel extremely bitter. leaders. As . the Chicago Tribune tional airport plan to take into account They believed when the Japanese made pointed out in an editorial on April 13, the desirability of promoting safety in .a voluntary quota agreement with the 1958, entitled "A Sorry Business," it was aviation by separating military· and United States that they were promised a deplorable fact that the Russians sat in civilian air operations. Government protection. I am glad that as judges of the Nazi and Japanese war Mr. Speaker, the disastrous and un­ the Japanese Government issued their prisoners while at the same time the pardonable collision between a military release. It is a step in the right direc.­ Russians were responsible for the butch­ jetplane and· a commercial airliner tion but does not go far enough. ering of t~ousands of Polish citizens in near Las Vegas, Nev., yesterday has 1958 CONGRESSIONAL RECORD- HOUSE 6949 demonstrated beyond question the need the vicinity of, civilian air terminals and County Airport could only have been for the reform I propose. whether or not military use of civilian taken in contravention of law. For the information of the members, air terminals is justified. Mr. Speaker, the Senate Interstate and the Civil Aeronautics Administration I have also asked the Legal and Mone­ Foreign Commerce Committee is cur­ reported that yesterday's collision oc­ tary Affairs Subcommittee to look into rently considering bills to amend the curred between an Air Force F100 jet the recent designation by the Civil Aero­ Federal Airport Act. Undoubtedly this fighter with two crewmen, and a United nautics Administration of the Detroit legislation will also come before the Air Lines DC-7 with 45 persons aboard. Metropolitan Wayne County Airport as House. I intend to press again for in­ The DC-7 last reported itself over an intercontinental express airport and corporation in the act the principles I Daggett, Calif., at 8:11 a. m., Pacific the Willow Run Airport as interconti­ have announced with which I do not see standard time, at 21,000 feet, and its nental, and the position taken by the how anyone can quarrel. Certainly the pilot expected-to arrive over Las Vegas, CAA that commercial airlines serving disastrous collision above Las Vegas yes­ Nev., at 8:31 a. m., Pacific standard the Detroit area should move from Wil­ terday should convince everyone of the time. low Run to the Detroit Metropolitan need for the provision I am proposing. The airliner was on Victor Airway Wayne County Airport. Mr. Speaker, I hold in my hand my Eight on instrument flight rules and was That question is not unrelated to the testimony before the House Committee in controlled airspace. matter I have been discussing since the on Interstate and Foreign Commerce on The Air Force fighter was on what is Detroit Metropolitan Wayne County Air­ July 6, 1955, when I made to that com­ known as a local or uncontrolled flight port has for 30 years been the home of mittee the same plea I am making here for training purposes. Visibility was the Michigan Air National Guard which today in support of my proposition that said to have ·been 35 miles at the time has two squadrons of jet fighters sta­ air safety would be advanced by mini­ and the weather clear. The fighter, at tioned there with lease arrangements mizing the interference between military a considerably higher altitude, became permitting it to use that airport for the and civilian jet operations. I quoted disabled and plunged into the airliner indefinite future. from a report filed in July of 1954 by the which at the time was observing its The CAA and military authorities Doolittle Commission, General Doolittle clearance rules and on a controlled flight. sought 3 years ago to compel commercial being one of the great names in aviation. I made the proposal, contained in the airlines to move from Willow Run Air­ Recommendation No. 23 of that Com­ bill I am introducing, 3 years ago. I port to Detroit Metropolitan Wayne mission has this title: "Separate Mili­ opposed suspension of the rules to en­ County Airport. In June 1955 the Air­ tary and Civilian Flying at Congested able me to offer it as an amendment to port Use Panel of the Air Coordinating Airports." S. 1855 which was before the House for Committee, in my judgment without any consideration on July 18, 1955. The recommendation reads as follows: legal authority to do so, ordered that Military aircraft should not be based on On May 4, 1955, I introduced H. R. Detroit Metropolitan Wayne County 6026 and on June 6, 1955, I introduced congested civil airports except when it is Airport be the commercial terminal for JlOt economically or otherwise feasible to H. R. 6650 for the same purpose. Those Detroit and that Willow Run Airport be provide separate facilities for them, nor bills were referred to the Armed Services converted to military use. In further­ should commercial aircraft operate regularly Committee but no action was taken. . ance of this plan the Air Force estab­ from busy military airports. On July 6, 1955, I appeared before the lished a Reserve jet fighter squadron at That same Commission in recom­ House Interstate and Foreign Commerce Willow Run Airport, but as of October Committee which had before it for con­ mendation No. 20 under the following last year discontinued its operations. title: "Minimize Training Flights at Con­ sideration amendments to the Federal The Navy made inquiry concerning Airport Act. I urged then that the gested Airports'' made this recommenda­ the use of Willow Run Airport as a jet tion: committee incorporate into the act the training base, proposing to move its op­ provision contained in the bill I have erations from Grosse Ile, where runway Flight crew training should be conducted just introduced. The committee refused as far as practicable away from thickly length was inadequate for jet opera­ settled areas and with a minimum number to consider my amendment and in fact tions. Yet on February 13, 1958, the of flights into and out of busy airports. reported out the bill without amendment NavY Department notified me that it and then proceeded to consider the bill was no longer interested in Willow Run, - Nevertheless, the House Interstate and in the House of Representatives under and I so informed its owners, the Uni­ Foreign Commerce Committee saw fit to suspension of the rules which prevented versity of Michigan. refuse to give any consideration to this any amendments being offered. Thus, we have the peculiar situation problem and, as I said before, reported I opposed the motion to suspend the that Willow Run Airport, which has the bill and moved to suspend the rules rules on s. 1855, and my discussion is to served admirably and without great ex­ here on the floor. Under that procedure, be found in the CONGRESSIONAL RECORD pense to the taxpayers as the air ter­ as you know, even with a second de­ of July 18, 1955, volume 101, part 8, page minal for Detroit and southeast Michi­ manded, there are only 20 minutes of 10804. gan, now has no military operations, yet debate on each side, and there is no op­ In short, I was blocked from present­ Detroit Metropolitan Wayne County Air­ portunity to offer amendments. ing a proposal to the House which could port has substantial military operations, That bill s. 1855 was rammed through have helped prevent the type of accident through the Air National Guard, which the House without amendment. It was which occurred yesterday with the tragic · are to continue into the indefinite fu­ rammed through the other body without loss of 49 lives. ture. Still the CAA bull-headedly in­ amendment, and the matter I called at­ Mr. Speaker, how many more dis­ sists that commercial airlines move to tention to then was not even given thor­ astrous collisions must occur before the Detroit Metropolitan Wayne County Air­ ough consideration by the Congress. Congress awakes to -the necessity of port and has, in effect, announced that Mr. Speaker, the bill which was taking action to minimize the likelihood Detroit Metropolitan -Wayne County adopted in 1955 is about to expire and a of such collisions? How many more lives Airport will be supported with funds to movement is now on foot and bills are must be lost? establish runway lengths suitable for jet now being considered by the Senate Also, I am requesting the Chairman of commercial operations and that Willow Committee on Interstate and Foreign the Legal and Monetary Affairs Sub­ Run Airport will be denied such assist­ Commerce to extend that Federal Air­ committee of the House Committee on ance. port Aid Act for another 4 years and to Government Operations, the Honorable Mr. Speaker, if the provisions of my increase the authorization from the $60 JOHN A. BLATNIK of Minnesota, to in­ bill and the provisions which I sought million per year provided by the present corporate into the inquiry into aviation to have incorporated into the law on law to $100 million. I am informed that matters which I have previously re­ many occasions 3 years ago had been that measure has been opposed by Mr. quested, an inquiry into the extent of adopted, and if the Secretary of Com­ Rothschild, the Under Secretary of Com­ mixed civilian and military operations merce is required, in establishing the merce, in his testimony before that com­ and specifically into collisions and near national airport plan, to take into ac­ mittee. Undoubtedly that legislation collisions between military and civilian count the desirability of separating mili­ will also receive consideration in the aircraft. This survey must include an tary from commercial aviation opera­ House of Representatives and before the inquiry into the extent to which military tions, the action recently taken of desig­ Committee on Interstate and Foreign operations are conducted from, and in nating Detroit Metropolitan Wayne Commerce of the House. 6950 CONGRESSIONAL RECORD- HOUSE April 22 I intend to appear again before the counted for democracy, they resisted the When President. Garcia comes to House Committee on Interstate and blandishments of and refused to be in­ Washington we must make it clear to Foreign Commerce and to urge what I timidated by the Kremlin, and they de­ his people in every way that we consider, urged 3 years ago, that the Secretary of feated the forces of communism that at­ yes, recognize them as our respected Commerce in setting up the national tempted by the usual Communist sub­ friends and allies and that as our sover­ airport plan, which is the basis for Fed­ versive pattern to overthrow their Gov­ eign equals, we hold their territorial in­ eral aid to airports, take into account ernment. tegrity and national sovereignty in the among the other criteria that he is re­ President Garcia was elected last No­ highest respect. There must not be the quired by the law to consider, the desir­ vember by a decisive majority to be the slightest doubt about this. Any pending ability of preventing the type of military leader of the Filipino people the next question between our two countries that operation which resulted in the collision 4 years. Before this, he was successively may· put this in doubt must be clearly which was so disastrous near Las Vegas elected as governor, congressman, sena­ settred tO> show that we in America are yesterday. tor, and vice president of the Philip­ always willing to concede to others what I hope this time, if the House Com­ pines. Under his predecessor, the late­ we claim for ourselves. President Gar­ mittee on Interstate and Foreign Com­ lamented Ramon Magsaysay, he was the cia has also announced that he is not merce does not take favorable action on Vice President and Secretary of Foreign coming here to beg for charity. He this proposition, that the measure will Affairs. Together with Magsaysay he wants development loans on a strictly at least come before the House in such was the coarchitect of the Philippine for­ business basis which his country can and fashion that the House Members can eign policy of close friendship with the will repay. That is the attitude that work their will on it. I hope, that it will United States for the last 5 years. He wins America's respect. President Gar­ not come before us under any gag rule is an uncompromising anti-Communist, cia should be given all the assistance he or under a motion to suspend the rules so and it was he who last year signed the needs to help his country weather the that this matter can actually receive the law outlawing the Communist Party current economic recession in the Phil­ consideration it deserves. from the Philippines. ippines. Mr. Speaker, this is a matter of ex­ But his loyalty was really proved dur­ For according to reports from Manila, treme importance. I hope the Members ing the war when, despite lucrative offers there is at present an economic crisis of the House will give it very serious and made to him by the enemy to collaborate which has compelled President Garcia on thorough consideration. with them, he preferred to risk his life his inauguration on December 30 Iast with the guerrillas in the hills of Bohol year to announce an austerity program rather than stay in Manila and aid, abet, which 3 months later has started to PRESIDENT CARLOS P. GARCIA'S and give comfort to the army of occupa­ show not only its wisdom but the basic STATE VISIT tion that was terrorizing and torturing soundness of Philippine economy. It is The SPEAKER pro tempore. Under his countrymen. Loyalty such as this people such as the Filipinos who are previous order of the House, the gentle­ we Americans can never forget and this, ready to tighten their belts and face man from Massachusetts [Mr. Mc­ to me, entitles President Garcia to our their· problems squarely that deserve CoRMACK] is recognized for 15' minutes. gratitude, esteem, and respect. help from us. Mr. McCORMACK. Mr. Speaker, it His visit to Washington will be closely Under unanimous consent, Mr. was Woodrow Wilson who, prior to his watched not only by his countrymen but Speaker, I include in my remarks the inauguration as 28th President of the also by the peoples of Asia and Africa. following press statement made by Gen. United States in 1912, returned to his He embodies in his person the represen­ Carlos P. Romulo, Philippine Ambassa­ birthplace, Staunton, va., and at a ban­ tation of 22 million Filipinos loyal to dor to the United States, who recently quet held in his honor at the Staunton democracy, a people who refuse to be returned from the Philippines, and pub­ Military Academy mess hall delivered an fence-sitters, who have openly and lished by the New York Journal of Com­ address in which he first projected the courageously cast their lot with the merce in its issue of April 1, 1958, idea of freedom for the Philippines. United States. We owe them their loyal showing the improvement in the finan­ That idea was carried out to a successful support during the Second World War; cial position of the Philippines: fruition when the United States Con­ we owe them their unrelenting fight ROMULO SAYS PHILIPPINE TRADE POSITION gress passed the Philippine Independ­ against communism. It is time that we GAINING ence Act, and in 1946,. 34 years later, showed them how deeply we appreciate WASHINGTON.-An improvement in the Philippine independence was proclaimed. their loyalty. It is time that we showed Philippine Republic's balance-of-payments I recall these historic events today be­ the uncommitted, the neutrals that situation has made it possible for that coun­ cause the President of the United States those who are not afraid to side with us try to ease some of the drastic fiscal and has invited the incumbent President of deserve at our hands preferential atten­ credit measures taken last December, Philip­ P. tion. pine Ambassador Carlos P. Romulo said. the Philippines, the Honorable Carlos Just returned from Manila, General Ro­ Garcia, to visit our country on June 16 President Garcia, like all other heads mulo said that one indication of the effec. this year, and it is my desire. to call at­ of state, must have his problems. Some tivenesS' of the austerity measures adopted tention to the fact that this is not one such problems must be the result of the since the inauguration of Pr~sident Carlos of the usual state visits that we have been hard times the world is facing. Some of P. Garcia 3 months ago is an expected favor­ having much as we have been honored them he must have inherited from pre-· able balance of payments of about $12.9 by each of the heads of state who have vious administrations. We must be million at the end of the first quarter. visited us in the past. For the Philip­ ready to show him our confidence in his TO HIT $150 MILLION pines is a sister republic born under the people by extending to him the assist­ Philippine foreign exchange reserves are aegis of the United States and this makes ance that he may need. The Filipino expected to total about $150 million at the President Garcia's visit a very significant people have earned it. It is our duty to end of this quarter, as compared with $139.8 one. see to it that they are strengthened-with million on December 31, 1957. More than this. No people have such means as are at our disposal. Let General Romulo said that many measures shown a more steadfast loyalty to free­ adopted .for austerity purposes have been it not be said that we are willing to woo relaxed "showing the basic soundness of the dom and democracy than the Filipino ne.w friends and pay heavily in the en­ Philfppine economy and that the steps taken people when they fought side by side deavor but at the same time we turn our by the administra:tion are giving the desired with our troops in Bataan, in Corregidor, backs on those who are our tried and results'.'' in Leyte; and offered civilian resistance tested friends. We must convince the Since February the following requlremen ts to the enemy during the occupation of neutrals and the uncommitted of the of Central Bank Circula::: No. 79 have been the Philippines in a manner that has advantages accruing to them for siding withdrawn by the monetary board: won the respect and admiration of the with us, but let it not be said that in 1. One-hundred-percent cash deposit for world. Then, after their Republic was doing so we are forgetting that our first opening of letter of credit for export of established, when other countries in their duty is to those who are committed to essential and semiessenttal producers goods; section of the globe preferred sit on 2. Two-hundred-percent cash deposit for to us, who are not afraid to side with us opening of letter of credit for import of the fence and not be identified in the and who valiantly proclaim that they semlessentlal consumer goods; fight against godless communism, the believe in the same way of life and ideals 3. Cash deposits on letters of credit for Filipinos unhesitatingly stood up to be as we do. import of decontrolled goods; 1958 CONGRESSIONAL -RECORD- libUSE ~6951

4. Prohibition on new loans for commer­ the PhlUppine Foreign Service. Romulo is · His popularity as a s-peaker, as an expo­ cial and real-estate loans, leaving only in scheduled to leave Manila Thursday for nent of Philippines and free Asian views in force the portfolio ceilings on these loans; Washington. the cold war era. is attested by the fact he and has been invited to lecture in every State 5. Prohibition on loans for import of non­ Mr. Speaker, this is welcome news to and practically every important city. And essential consumer and nonessential pro­ the friends of the Philippines in this on April 21 he will receive the Four Free­ ducer goods. country. We, of course, have nothing to doms Award, this year for the first time go­ FUEL-OIL QUOTA CUT do with the selection of who is to repre­ ing to a non-American. During the first quarter, the cut on the sent the Filipino people in the United More importantly, from the standpoint of quot:;., for the import of fuel oil was restored; States. But we can certainly express our relations between the two countries, it can the import of fertilizers and insecticides in gratification that President Garcia has be said that General Romulo has won excess of the first quarter exchange budget taken this action that marks him as a Ainerica's respect and regard primarily be­ was allowed; the 100-percent cut of quotas cause he constantly voices the ideals and statesman. For whatever may be the -po­ ·aspirations of his own friendly people. And of stores established before 1949 was par­ litical affiliation in the Philippines of tially restored. Americans admire the way he has fought to Faced with an inflation problem and a General Romulo, we know him in Amer­ assert Filipino rights not only in Washing­ dollar crisis, the following drastic measures ica as a Filipino first and foremost, as ton but in the United Nations and on the were taken early in December 1957; one who has consistently s~rved only the world scene. 1. Approval of Circular No. 79 issued by best interests of his people. He has rep­ In conclusion, Mr ~ Speaker, I wish to ·the central bank which restricted drasti­ resented the Philippines with ability and assure President Garcia that a warm and cally the grant of credits by banks; tact of the highest order, with the sobri­ cordial welcome awaits him here. We FOREIGN EXCHANGE BUDGET ety and dignity of the true diplomat, and know him not only to be a proved friend 2. Adoption of -a foreign exchange budget I can say having dealt with him closely of our country but a true champion of for the first quarter of 1958, providing for ·since he was Resident Commissioner of freedom and democracy. He showed a cut. of 28 percent in the 1957 (second the Philippines to the United States in this once more in the Geneva Confer­ quarter) quotas for essential producers 1945, that he has fought · uncompro­ ence on Indochina in 1954 when, as Sec­ goods; 52 percent cut of quotas for semi­ misingly for his country and people in essential imports; and suspension of quotas retary of Foreign Affairs of the Philip­ tor nonessential imports; the United States Congress in a way that pines, he promptly and ably refuted a 3. Reduction of Government borrowings has won the respect and admiration of speech made in that Conference by the for economic development of 194 million his colleagues in this body in a superla­ Foreign Minister of Red China who ac­ Philippine dollars to 130 million Philippine tive degree. The Philippine Rehabilita­ cused America of imperialism. Presi­ dollars. The amount was originally set at tion Act, the Philippine Trade Act, its dent Garcia then said that he was cer.. 264 million Philippine dollars at the begin­ recent extension and subsequent amend­ tain that the muse of history would ning of the fiscal year 1957-58. ment, the suspension for 3 years of the render its verdict that America has never General Romulo declared that while the 3-cent excise tax on coconut oil, the drain in the reserves has been arrested, ·deprived any people of its freedom but there is still a strong tendency for prices to various veterans' measures affecting on the contrary has liberated all those go up and this, according to him, is largely Filipino veterans, and many others aJ­ that had fallen under its power citing due to the shortage of rice, corn, and other fecting the Philippines too numerous to the Philippines as exhibit A. This is our foodstuffs. mention, in each and every one of them, true friend and stalwa.rt ally, Mr. Speak­ NEED MORE MATERIALS General Romulo worked and defended er, that we will have the honor of en­ "It will also be necessary," the Ainbassa­ indefatigably the best interests of his tertaining as our guest come June. Let dor continued, "the position of the interna­ people as their worthy and able repre­ us in the United States show him and tional reserve permitting, to allow the lin­ sentative. his people that they really have a warm port of more raw materials for the produc­ I pay this tribute to General Romulo spot in our hearts. tion of essential consume:r; goods., in ord.er to today because it is not always possible prevent shortages which would cause prices ..for one's constituency to know what its to go up. The monetary board, · thetefore, approved an exchange budget for imports ·for spokesman accomplishes in its behalf, SPECIAL ORDERS GRANTED the second quarter, in which almost all the and this is rendered all the more difficult By unanimous consent, permission to regular quotas for essential producers and by a distance of 10,000 miles. President address the House, following the legisla­ essential consumer goods were restored." Garcia should be congratulated for the tive program and any special orders In conclusion, the Philippine Ambassador act of justice that he has done in recog­ heretofore entered, was granted to: emphasized that "considering that the for­ nizing the efficient and loyal service of eign _exchange receipts during the second Mr. BARTLETT, for 15 minutes, today. Ambassador Romulo. Mrs. RoGERS of Massachusetts, for 10 semester of this year are most likely to be But the Philippine President has also less than those of the first semester, because minutes, today. there will be less sugar shipments after May done the wise thing because he knows Mr. SHEEHAN, for 20 minutes, today. or June, and considering further that loans that it is General Romulo who can faith­ Mr. MEADER

1958 CONGRESSIONAL RECORD- HOUSE 6953 By Mr. BASS of Tennessee: By Mr. MEADER: By Mr. BROOKS of Louisiana: H. R. 12067. A bill to permit the com­ H. R. 12083. A bill to amend sec~lon 8 (a) H. R. 12098. A bill to provide for Federal manding general of the 101st Airborne Divi­ of the Federal Airport Act, so as to direct maintenance of channel stabilization and sion, United States Army, to keep a bald that the Secretary of Commerce, in formulat­ bank protection structures on Red River eagle in captivity, and for other purposes; ing and revising the national airport plan, below Denison, Tex.; Arkansas; Louisiana; to the Committee on Merchant Marine and shall talte into account the desirability of and Texas; to the Committee on Public Fisheries. promoting safety in aviation by minimizing Works'. By Mr. BLATNIK: interference between civilian and military By Mr. MOULDER: H. R. 12068. A bill to provide for the con­ air operations; to the Committee on Inter­ :a. R. 12099. A bill to amend the Legisla­ trol of noxious weeds on land under the con­ state and Foreign Commerce. tive Reorganization Act of 1946 to authorize trol or jurisdiction of the Federal Govern­ By Mr. MILLS: the review of administrative regulations by ment; to the Committee on Agriculture. H. R. 12084. A bill to amend the Internal committees of Congress prior to their pro­ By Mr. COLLIER: Revenue Code of 1954 to provide tax relief mulgation, and for other purposes; to the H. R. 12069. A bill to amend the Internal for small business; to the Committee on Committee on Rules. Revenue Code of 1954 to repeal the tax on Ways and Means. . By Mr. RHODES of Arizona: the transportation of persons; to the Com­ By Mr. REED: H. R. 12100. A bill to amend the act of mittee on Ways and Means. H. R.12085. A bill to amend the Internal August 5, 1954 (68 Stat. 674), and for other By Mr. CUNNINGHAM of Iowa: Revenue Code of 1954 to provide tax . relief purposes; to the Committee on Interstate H. R. 12070. A bill to extend rural man de­ for 'small business; to the Committee on and Foreign Commerce. livery service; to the Committee on Post Of· Ways and Means. By Mr. ABERNETHY: flee and Civil Service. By Mr. MORANO: H. R. 12101: A bill to provide that certain By Mr. DINGELL: H. R. 12086. A bill to authorize the beach­ real property under the jurisdiction of the . H. R. 12071. A bill to promote the safety erosion project for the Connecticut shore­ Secretary of the rnterior shall be transferred of employees and travelers upon common line, areas 8 and 11, Saugatuck River to to the Secretary of the Army and made a carriers by railroad engaged in interstate Byram River, and for all other purposes; to part of the Arlington National Cemetery; to commerce by requiring such carriers to the Committee on Public Works. the Committee on Interior and Insular maintain tracks, bridges, roadbed, and per­ By Mr. O'BRIEN of New York (by re­ Affairs. manent structures for the support of way, quest): By Mr. CHAMBERLAIN~ ·trackage, and traffic in safe and suitable H. R. 12087. A bill to amend the Internal H. Con. Res. 315. Concurrent resolution ex­ condition, and . for other purposes; to the .Revenue Code of 1954 with respect to allow­ pressing it to be the sense of the Congress Committee on Interstate and Foreign Com­ ing an additional credit for advertising ex­ that any reduction in or repeal of the Fed- merce. penses; to the Committee on Ways and . eral excise taxes on automobiles, trucks, H. R. 12072. A bill to amend the Migratory Means. and buses, or parts and accessories which Bird Hunting Stamp Act of March 16, 1934, By Mr. O'NEILL: takes effect during 1958 shall be retroactive as amended; to the Committee on Merchant H. R. 12088. A bill extending the time In to March 1, 1958; to the Committee on Ways Marine and Fisheries. which ·the Boston National Historic Sites and Means. By Mr. HARRISON of Nebraska: Commission shall complete its work; to the By Mr. COLLIER: H. R. 12073. A bill to provide more effective Committee on Interior and Insular Affairs. H. Con. Res. 316. Concurrent resolution price, production adjustment, and marketing By Mr. POAGE: expressing it to be the sense of the Congress programs for cotton and feed grains; to the H. R. 12089. A bill to provide for the con­ that any reduction in or repeal of the excise Committee on Agriculture. struction of a new Federal building in Tem­ taxes on automobiles, trucks, and buses, or By Mr. HEMPHILL: . ple, Tex.; to the Committee on Public Works. parts and accessories which takes effect in H. R. 12074. A bill to authorize the sale By Mrs. ST. GEORGE: 1958 shall be retroactive to March 1, 1958; and transfer of acreage allotments and mar­ H. R. 12090. A bill to amend title II of the to the Committee on Ways and Means. keting quotas, and for other purposes; to Social Security Act to provide maximum ben­ By Mr. TEWES: the Committee on Agriculture. efits for individuals who, although deaf and H. Con. Res. 317. Concurrent resolution By Mr. HERLONG: mute, have acquired insured status by con­ expressing it to be the sense of the Congress H. R. 12075. A bill to amend title 18 of the ·tinuing in covered employment or self-em­ ·that any reduction in or repeal of the excise United States Code to prohibit the importa­ ployment during their working years; to the taxes on ·automobiles, trucks, and buses, or tion into the United States of cobra snakes; Committee on .Ways and Means. parts and accessories which takes effect in to the Committee on the Judiciary. By Mr. SISK: 1958 shall be retroactive to March 1, 1958; H. R. 12076. A bill to amend the Tariff Act H. R. 12091. A bill 'to amend the United to the Committee on Ways and Means. of 1930 with respect to the marking of .im-· States Housing Act of 1937 to permit a local By Mr. CANFIELD: ported articles and containers; to the Com­ public housing agency to pay the cost of H. Res. 534. Resolution to authorize the mittee on Ways and Means. public services and facilities furnished by Committee on Interstate and Foreign Com­ H. R. 12077. A bill to provide that the Fed­ the local government to low-rent public merce to conduct an investigation and study eral excise tax on the transportation of prop­ housing projects under its jurisdiction; to of the textile industry of the United States; erty shall apply only to amounts paid for the Oommittee on Banking and Currency. to the Committee on Rules. actual transportation and not to amounts By Mr. WAINWRIGHT: By Mr. ASHMORE: paid for additional services; to the Commit­ H. R. 12092. A bill to provide that the Sec­ H. Res. 535. Resolution to authorize the tee on Ways and Means. retary of the Interior shall develop and carry Committee on Interstate and Foreign Com­ By Mr. HORAN: out an emergency program for the eradica­ merce to ·conduct an investigation and study H. R. 12078. A bill to establish a Columbia tion of starfish in Long Island Sound and of the textile industry of the United States; Interstate Commission, and for other pur­ adjacent waters; to the Committee on Mer­ to the Committee on Rules. poses; to the Committee on Public Works. chant Marine and Fisheries. By Mr. COFFIN: By Mr. JONES of Alabama (by re­ By Mr. WILLIAMS of New York: H. Res. 536. Resolution to authorize tha quest): H. R. 12093. A bill to provide more effective Committee on Interstate and Foreign Com­ H. R. 12079. A b111 to protect the right of price, pl'oduction adjustment, and market­ merce to conduct an investigation and study the blind to self-expression through organi­ ing programs for cotton and feed grains; to of the textile industry of the United States; zations of the blind; to the Committee on the Committee on Agriculture. to the Committee on Rules. Education and Labor. By Mr. GWINN: By Mr. DORN of South Carolina: ByMr.LAffiD: H. R. 12094. A bill to establish a teaching H. Res. 537. Resolution to authorize the H. R. 12080. A bill to provide financial as­ hospital for Howard University, to transfer Committee on Interstate and Foreign Com­ sistance to the States by returning to the Freedmen's Hospital to the university, and merce to conduct an investigation and study States a portion of the Federal income taxes of the textile industry of the United States; for other purposes; to the Committee on to the Committee on Rules. collected therein; to the Committee on Ways Education and Labor. By Mr. FLOOD: and Means. By Mr. ABERNETHY: By Mr. McMILLAN: H. Res. 538. Resolution to authorize the H. R. 12095. A bill to amend the Fair Labor Committee on Interstate and Foreign Com­ H. R. 12081. A bill to amend the act en­ Standards Act of 1938, to exempt employees merce to conduct an investigation and study titled "An act to grant additional powers of certain radio and television stations from of the textile industry of·the United States; to the Commissioners of the District of Co­ the maximum hour provisions thereof; to the to the Committee on Rules. lumbia, and for other purposes," approved Committee on Education and Labor. By Mr. FOGARTY: December 20, 1944, with respect to the utili­ H. R. 12096. A bill to amend the Veterans' H. Res. 539. Resolution to authorize the zation and disposition of personal property Benefits Act of 1957 to provide a 3-year pre­ Committee on Interstate and Foreign Com­ by the District of Columbia, and for other sumption of service connection for active merce to conduct an investigation and study purposes; to the Committee on the District of tuberculosis disease in peacetime cases; to Columbia. of the textile industry of the United States; the Committee on Veterans' AIIairs. .to the Committee on Rules. By Mr. MAHON: By Mr. BOGGS: By Mr. HALE: H. R. 12082. A bill to amend the national H. R.12097. A bill to amend section 4053 H. Res. 540. Resolution to authorize the defense amendment, and for other purposes; of the Internal Revenue Code of 1954; to Committee on Interstate and Foreign Com­ to the Committee on Ways and Means. the Committee on Ways and Means. merce to conduct an investigation and study :6954 ·CONGRESSIONAL ·RECORD-· HOUSE April 22. of the textlle industry of the United States: PRIVATE BILLS AND RESOLUTIONS interceding with the · Department of the to the Committee on Rules. Army in an effort to prevent a proposed -re­ By Mr. LANE: Under clause 1 of rule XXII, private duction in the National Guard; to the Com­ H. Res. 541. Resolution to authorize the bills and resolutions were introduced and mittee on Armed Services. Committee on Interstate and Foreign Com­ severally referred as follows: 584. By Mr. WILLIAMS of New York: Peti­ merce to conduct an investigation and study By Mr. ASHMORE: tion of Mrs. Lulu E. Nash, Oneida, N.Y., who of the textile industry of the United States; H. R. 12102. A bill for the relief of J. Paul submitted petitions from the many signers to the Committee on Rules. Adams; to the Committee on the Judiciary. in the 34th Congressional District of New By Mr. MciNTIRE: By Mr. BOYLE: York State, favoring passage of S. 582 and H. Res. 542. Resolution to authorize the H. R. 12103. A bill for the relief of Milunika H. R. 4835, bills to prohibit the advertising Committee on Interstate and Foreign Com­ Stevanovic; to the Committee on the Judi­ of alcoholic beverages on the radio and TV; merce to conduct an investigation and study ciary. to the Committee on Interstate and Foreign of the textile industry of the United States; H. R. 12104. A bill for the relief of Ivana Commerce. to the Committee on Rules. Buek; to the Committee on the Judiciary. 585. By the SPEAKER: Petition of Her­ By Mr. OSMERS: By Mr. CRAMER: bert C. Holdridge, Washington, D. C., relative H. Res. 543. Resolution to authorize the H. R. 12105. A bill ;t'or the relief of Theo­ to Frank Bednarz and others countersigning Committee on Interstate and Foreign Com­ dore A. Sames; to the Committee on the Judi­ the petition of Herbert c. Holdridge, similar merce to conduct an investigation and study ciary. to others submitted as Nos. 500 and 545, and of the textile industry of the United States; By Mr. HARDY: appearing in the CONGRESSIONAL RECORD of to the Committee on Rules. H. R. 12106. A bill for the relief of Sam­ March 26 and April 14, 1958, relating to be­ By Mr. SEELY-BROWN: uel Abraham, John A. Carroll, Forrest E. Rob­ ing "for criminal action against the agents H. Res. 544. Resolution to authorize the inson, Thomas J. Sawyers, Jack Silmon, and of the private corporation of the Federal Re­ Committee on Interstate and Foreign Com­ David N. Wilson; to the Committee on the serve bank and its collaborationists"; to the merce to conduct an investigation and study Judiciary. Committee on Banking and Currency. of the textile industry of the United States; By Mr. HAYS of Ohio: 586. Also, petition of the president, Alaska to the Committee on Rules. H. R. 12107. A bill for the relief of Martin National Guard Officers' Association, Anchor­ By Mr. WIDNALL: Kirchner; to the Committee on the Judiciary. age, Alaska, relative to the Alaska National H. Res. 545: Resolution to authorize the By Mrs. KELLY of New York: Guard expressing alarm and concern over the Committee on Interstate and Foreign Com­ H. R. 12108. A bill for the relief of Hannah taking of salmon by Japanese nationals be­ merce to conduct an investigation and study Jane Jackson; to the Committee bn the Judi­ tween 175° west and 170° east longitude; to of the textile industry of the United States; ciary. ·the Committee on Foreign Affairs. to the Committee on Rules. 587. Also, petition of William Rapoport and By Mr. MINSHALL: others, Detroit, Mich., requesting passage of H. R. 12109. A bill for the relief of Agnes the bills H. R. 1008, H. R. 4523, and H. R. 4677, Lorraine Pank; to the Committee on the pertaining to the Railroad Retirement Act; to MEMORIALS Judiciary. the Committee on Interstate and Foreign By Mr. O'BRIEN of New York: Commerce. H. R. 12110. A bill for the relief of Miss Under clause 4 of rule XXII, memorials 588. Also, petition of Alexander Meikle­ were presented and referred as follows: Lillian Dunn (formerly Miss Lillian Oh); to the Committee on the Judiciary. john, Berkeley, Calif., relative to Helen By the SPEAKER: Memor.ial of the Legis­ By Mr. ROONEY: Lindgren and others endorsing the petition lature of the State of California, memorial­ H. R. 12111. A bill for the relief of Fran­ of Alexander Meiklejohn of Berkeley, Calif., izing the President and the Congress of the cesco Grisanzio; to the Committee on the relating to a redress of grievance pertaining United States relative to the completion of Judiciary. to the House Committee on Un-American the Corning Canal, and construction of the Activities, similar to one submitted as peti­ Red Bluff Diversion Dam; to the Committee tion No. 351, dated January 7. 1958; to the on Appropriations. PETITIONS, ETC. Committee on Rules. Also, memorial of the Legislature of the Under clause 1 of rule XXII, petitions 589. Also, petition of the chief clerk, Phila­ State of California, memorializing the Presi­ delphia City Council, Philadelphia, Pa., re­ dent and the Congress of the United States and papers were laid on the Clerk's desk questing Congress to override the veto by relative to the construction of a salt water and referred as follows: the President of the omnibus rivers, harbors, conversion demonstration plant; to the Com­ 583. By Mrs. ST. GEORGE: Resolution of and fiood control authorization bill; to the mittee on Interior and Insular Affairs. Orange County, N. Y., Board of Supervisors, Committee on Public Works.

EXTENSIONS OF REMAR.KS

There is a considerable increase in the So far in 1958, business failures are run­ Business Failures number of eating and drinking places going ning 12 percent higher than in 1957 and 27 broke, indicating that people are eating out percent higher than in 1956. EXTENSION OF REIVIARKS less often, taking more meals at home. In addition to the businesses going broke, others in growing numbers are closing down OF Failures are nearly half again as high among stores selling hardware and building voluntarily, getting out while they are still materials. solvent. Many others, hard pressed, are HON. COYA KNUTSON While casualties among furniture stores merging with competitors, hoping to make a OF MINNESOTA are running about the same as in 1957, there go of it. IN THE HOUSE OF REPRESENTATIVES is a considerable increase in the liabilities The increase in business failures, in gen­ · of the firms that are failing. eral, is greatest among retailers. Tuesday, April 22, 1958 Overall, failures among retailers are up Older firms, in business 10 years or longer, Mrs. KNUTSON. Mr. Speaker, there is more than 13 percent over a year ago and account for a growing share of failures. there is an even bigger increase-34 per• an article in the April 18, 1958, issue of cent-in liabilities involved. Mr. Speaker, this trend in business U. S. News & World Report which should Failures are higher than a year ago among failures is nothing new. A like situation cause widespread interest and concern. wholesalers of food and farm products, ap­ prevailed in the late twenties and early It begins on page 83. Its title is "Reces­ parel, dry goods, lumber, building materials, thirties. In those days, as it is now, sta­ sion's Toll: 45 to 50 Firms a Day." and hardware. tistics had a way of hiding the grim The part that immediately struclt my In manufacturing, failures are up for lum­ facts. The U. S. News says that from eye was this: ber, paper, leather and leat)ler products, coal 45 to 50 businesses a week are closing up Failures in States around the Great Lakes mining, and iron and steel products. shop in this recession. This amounts to held close to 1957 levels in the first 2 months Now to go back to the lead paragraphs one firm per State. On the surface, it of 1958, but now, on the basis of weekly re­ does not sound like a catastrophe. ports, have risen sharply over a year ago. of this U. s. News article: On an average day in·this recession period, But let us go into it. In speaking of the rising rates of 45 to 50 American firms close their doors and For instance, Peterson's Paper Mill­ failures, the U.S. News article asserts: go out of business. the main industry of a Minnesota Failures among retail clothing stores are If the present rate continues through the county-seat town-closes its doors. The running about 15 percent higher than a year year, more than 14,000 businesses will go to entire population of the town is around ago. Liabilities involved in these failures the wall in 1958. This will be the highest 3,000 people. The paper mill employs are about double the volume of a year ago. annual total in nearly 20 years. about 150 men. These 150, plus their