1958 CONGRESSIONAL RECOR-D .- HOUSE 5159 By Mr. QUIE: for small craft; to the Committee on Appro­ PETmONS, ETC. H: R. 11604. A bill to authorize construc­ priations. tion of a building in Winona, Minn., to house Also, memorial of the Legislature of the Under clause 1 of rule XXII, petitions the Federal post ofilce and F'ederal and county State of California, memorializing the Presi­ and papers were laid on the Clerk's desk courtrooms and ofilces; to the Committee on dent and the Congress of the United States and referred as follows: Public Works. relative to Federal aid to schools; to the 485. By Mr. HOLIFIELD: Petition of the H. R. 11605. A bill to amend the Internal Committee on Education and Labor. Reverend Elmo L. Black, minister of the Fet­ Revenue Code of 1954 to allow a deduction Also, memorial of the Legislature of the State of Kentucky, memorializing the Presi­ terly Avenue Church of Christ and 27 other from gross income for certain amounts paid members of that church urging the Congress dent and the Congress of the United States by a teacher for his further education; to the to pass the Siler bill, H. R. 4835, to remove the Committee on Ways and Means. to implement the Federal Flood Insurance advertising of alcoholic beverages from tele­ By Mr. RADWAN: Act of 1956; to the Committee on Appropria­ vision and radio; to the Committee on Inter­ H. R. 11606. A bill to amend the Federal­ tions. state and Foreign Commerce. Aid Highway Act of 1956 to permit States Also, ·memorial of the Legislature of the 486. Also, petition of the Richard L. Luy having toll and free roads, bridges, and tun­ State of Kentucky, memorializing the Presi­ Post 397, American Legion, Monterey Park, nels designated as part of the National Sys­ dent and the Congress of the United States Department of California, requesting the tem of Interstate and Defense Highways to to maintain- the manpower level of the Na­ Congress to vigorously oppose any attempts designate other routes for inclusion in the tional Guard at a minimum of 400,000; to to reduce the appropriations needed to pro­ Interstate System; to the Committee on the Committee on Armed Services. vide necessary medical and hospital facili­ Public Works. Also, memorial of the Legislature of the ties; and to pay adequate compensation and By Mr. REUSS: State of Kentucky, memorializing the Presi­ pensions; to the Committee on Veterans' H. R. 11607. A bill to amend the Migratory dent and the Congress of the United States Affairs. Bird Hunting Stamp Act of March 16, 1934, to establish three time zones within the con­ 487. By Mr. NIMTZ: Petition of Mrs. A. D. as amended; to the Committee on Merchant tinental limits of the United States; to the Shaffer and 22 other members· of the Marine and Fisheries. Committee on Interstate and Foreign Com­ Woman's Christian Temperance Union of By Mr. VINSON: merce. South Bend, Ind., urging the passage of leg­ H. R. 11608. A bill to amend part IV of Also, memorial of the Legislature of the islation to prohibit the transportation of subtitle C of title 10, United States Code, to State of Kentucky, memorializing the Presi­ alcoholic beverage advertising in interstate authorize the Secretary of the Navy to take dent and the Congress of the United States commerce and its broadcasting over the air; possession of the naval oil shale reserves, and to extend Public Law 550, 82d Congress, re­ to the Committee on Interstate and Foreign for other purposes; to the Committee on lating to education and training benefits, to Commerce. Armed Services. service men and women as long as the draft By Mr. WEAVER: 488. Also, petition of Almeda Geyer, of continues; to the Committee on Veterans' Nappanee, Ind., and 350 other citizens of H. R. 11609. A bill to amend the Internal Affairs. New Paris, Wakarusa, Etna Green, Milford, Revenue Code of 1954 to allow a deduction Also, memorial of the Legislature of the Leesburg, Elkhart, and Goshen, Ind., re­ from gross income for certain amounts paid State of Massachusetts, memorializing the by a teacher for his further education; to questing relief from the invasion of their President and the Congress of the United homes by advertising of the alcoholic bever­ the Committee on Ways and Means. States to enact legislation protecting textile, H. R. 11610. A bill to provide for the con­ age industry, and urging the adoption of fishing, and other historic industries; to the legislation to remove this advertising from version of surplus grain owned by the Com­ Committee on Ways and Means. modity Credit Corporation into industrial the channels of interstate commerce and alcohol for stockpiling purposes; to the Com­ over the air; to the Committee on Interstate mittee on Agriculture. and Foreign Commerce. By Mr. 0 'HARA of Illinois: PRIVATE BILLS AND RESOLUTIONS 489. By the SPEAKER: Petition of Mrs. H. Res. 509. Resolution favoring the appli­ Under clause 1 of rule XXII, private H. T. Hessler, Harrisburg, Pa., requesting en­ cation of the principle of self-determination actment of the bill H. R. 7798, to protect the bills and resolutions were introduced and public health by amending the Federal to the people o,f Cyprus; to the Committee severally referred as follows: on Foreign Affairs. Food, Drug, and Cosmetic Act so as to pro­ By Mr. ASPIN ALL: _ vide for the safety of chemical additives in H. R. 11611. A bill for the relief of McCune food; to the Committee on Interstate and C. Ott; to the Committee on the Judiciary. Foreign Commerce. MEMORIALS By Mr. CRETELLA: 490. Also, petition of Dr. Robert H. Ellis H. R. 11612. A bill for the relief of Santina and others, Portland, Oreg., relative to a re­ Under clause 4 of rule XXII, memori­ Maria Frate; to the Committee on the Judi­ dress ·of grievance relating to the House . als were presented and referred as fol­ ciary. Committee on Un-American Activities; to lows: By Mr. HYDE: the Committee on Rules. By Mr. HOLIFIELD: Memorial of the As­ H. R. 11613. A bill for the relief of Antonio 491. Also, petition of the city manager, sembly-and Senate of the State of California, Tovera Ramos; to the Committee on the Troy, Mich., urging the removal of the ex­ jointly resolved, that the Congress of the Judiciary. cise tax on automobiles; to the Committee United States is respectfully memorialized to By Mr. REUSS: on Ways and Means. continue undiminished its program of finan­ H. R. 11614. A bill for the relief of Deme­ 492. Also, petition of the deputy clerk, cial assistance to school districts experienc­ tria Spiropoulos; to the Committee on the Board of Supervisors, Los Angeles, Calif., re­ ing excessive growth due to Federal activities Judiciary. questing the removal of the excise tax on as provided in Public Law 815 and Public By Mr. THOMAS: all telephone service; to the Committee on Law 874 of the 81st Congress; to the Com­ H. R . 11615. A bill for the relief of Benja­ Ways and Means. mittee on Education and Labor. min G. Enloe; to the Committee on the 493. Also, petition of the county clerk, By the SPEAKER: Memorial of the Legis­ Judiciary. county of Hawaii, Hilo, T. H., requesting that lature of the State of California. memorializ­ H. R. 11616. A bill for the relief of Mrs. Congress give favorable consideration to the ing the President and the Congress of the Lena F. Shelton; to the Committee on the bill H. R. 11308; to the Committee on Mer­ United States, relative to harbors of refuge Judiciary. · chant Marine and Fisheries.

EXTENSIONS OF REMARI

Address by Hon. William F. Knowland, in the CONGRESSIONAL . ~ECORD an ad­ Neither regimentation nor coercion have dress l delivered in Oakland, Calif., on any place in this great free process. Once of California Friday, March 21, 1958. the curtain is closed behind the voter's back and he or she is alone the questions to be There being no objection, the address answered are: EXTENSION OF REMARKS was ordered to be printed in the RECORD, What is best for our country? OF as follows: What is best for California? ADDRESS BY SENATOR WILLIAM F . . KNOWLAND No political, business, or labor boss can HON. WILLIAM F. KNOWLAND Fellow Californians, 1958 is a year of de­ control our individual vote at this rendez­ OF CALIFORNIA cision for the people of the United States vous with destiny. IN THE SENATE OF THE UNITED STATES of which our own State of California is such As a people our problems are great, but so Monday, March 24, 1958 an important and dynamic part. are our opportunities. The decisions we make, political and eco­ We are in the midst of an economic dis­ Mr. KNOWLAND. Mr. President, I nomic, may well set the pattern from which location. How long it continues, how deep ask unanimous consent to have printed there is no turning back. it becomes, what will come later will depend 5160 CONGRESSIONAL RECORD- HOUSE March 24 to a considerable extent on whether. we the .first unemployment insurance legisla­ I support the partnership proposal for the measure up to our responsibilities. tion enacted in this State. We have over Trinity project so that the water users may Launching our economy into the unex­ $900 million of reserves in this trust ac­ be benefl.ted, the cost to the taxpayers re­ plored spaces of astronomical Federal spend­ count. duced, and private industry encouraged to ing, deficits, and debts would be as fatal to · I have supported, in the State legislature invest in California's future. My opponent our economic and political system as it was and in the United. States Senate. social-se­ favors the all-Federal power project. to the canine passenger aboard mutnik dur­ curity legislation for old-age assistance, vo­ He would move tow.ard more Federal Gov­ ing its journey into outer space. cational rehabilitation, aid to the blind, and ernment in the power business. I favor the The fact that the doctor may prescribe child-care assistance. encouragement of private enterprise rather patient does not mean that 4 or 10 times During my service in Sacramento, I sup­ than doctrinaire policy of Federal ownership the dosage self-administered will be that ported legislation which assured every worker of electric power. many times better. It could kill the invalid the right to join a union of his choice. This I do not want to see the Federal Govern­ rather than helping to cure him. legislation made 1llegal the so-called yellow­ ment monopolize the electric power industry. As of this date, we still have more than dog contract which had prevented a worker I do not want , to see the great Central 60 million Americans gainfully employed. from having that free choice. Valley of California become another TVA. California need not trail in recovery. We As a State assemblyman, I cosponsored the I have supported in the past and I will in can be one of the leaders. antilynching legislation now on the statute the future those sound reclamation and flood­ What we do in this State will have a gll'eat books of this State. control projects which are important for the impact on the economy of the Nation, and, As Republican leader of the United States protection of life and _property and the de­ of course, we will respond to developments Senate, I moved to bring before the Senate velopment of our resources, the improvement 1 pill or capsule for the recovery of the and to pass legislation assuring every Ameri­ of our farms, and the encouragement of our elsewhere. can that he would not be denied his con­ industry. OUr population is now over 14 million, or stitutional right to vote. In areas of the country, including our own 8.2 percent of the Nation's 170,333,000. Cali­ In the State legislature, as a private citi­ State, I believe the determination of whether fornia pays over $6 Y:z billion in Federal zen and for more than 12 years as a United or not a community engages in the business States Senator I have actively worked for internal-revenue taxes, or 8.~9 percent of the of public power should be up to the people Nation's total internal-revenue collections. the development and protection of our re­ of the locality and determined by their votes The Federal taxes we pay are more than sources, river and harbor development, flood­ based on the full facts as developed in pub- S times the amount of our $2 .billion State control, reclamation, and irrigation projects lic debate. . budget. throughout California. This question of local public power by The friction loss that takes place in a As a member of the Senate Appropriations local determination is a different proposition California tax dollar going to Washington Committee I have cooperated with my Senate than Federal power spreading like the tenta­ and returning as a grant is substantial. colleagues and House Members, without re­ cles of an octopus without any vote on the We are second in population in the Ameri­ gard to partisanship, to help advance sound issue by the people of the areas concerned. can .Union and by 1970 we wlll have a popu­ and constructive public-works projects. At a regional meeting in Oakland of the lation of over 22 million people and will be As a Member of the Senate I took an active California Democratic council (the State­ part in the fight to restore to this and other wide convention of which endorsed my op­ first. coastal States the tidelands which had been There are 82 members of the United Na­ ponent) the meeting went on record in favor taken from us under the New Deal doctrine -of transferring welfare administration out of tions. At the present time California is of Federal inherent powers overriding the larger in population than 56 of these na­ the hands of the 58 counties of California right of the States. into State administration. tions. In January of this year employment in At the time my opponent announced his This as you will recall was in conformity candidacy for Governor of California he held with the so-called McLean-Williams pension California totaled 5,457,000, which was 21,000 a press conference in Los Angeles on October less than the same month last year. It was, plan whieh proved -to be so costly to Cali­ however, the second highest January em­ 30, and at that conference was quoted as fornia until repealed by the people of this ployment in the State's history. _saying that Senator KNOWLAND was a person State. . The impact of increased home construc­ with whom "I disagree 100 percent." At that time I. declared myself in opposi­ tion, expedited defense spending, accelera­ I thought then, as I do now, that this tion to this transfer of administration from -tion of the highway program and a number was a pretty broad, if not a sweeping, gen­ the county governments to -the State govern­ of reclamation and flood-control projects is erality to which the attorney general is at ment and propounded the question as to already being felt in California. ·times addicted. where my opponent stood on this important These steps together with the action of the The responsibilities of the Governor as issue. San Francisco Federal Reserve Bank in low­ chief executive authority of this State are He indica ted then that the time was not ering its discount rate and coming into 1arge. ripe to make his views known on this im­ conformity with the other Reserve districts There are 8 constitutional offices, 24 de­ portant subject. partments, 128 boards .and commissions, and Again I call on him to state his position should provide considerable stimulation to on this important question prior to and not our economy. 46 independent agencies. In our free socie-ty we must not depend Under existing law State narcotic enforce­ after the primary election on June 3. upon Government action alone. The cumu­ ment comes under the attorney general. The The labor organizations associated with lative effect of the multiplied individmi.l head office of that agency is close to the San my opponent in this campaign have ad­ _economic decisions of the people is of pri­ · Francisco office of the attorney general. vanced an initiative proposal that would cut mary importance. Obviously it has not received the supervision the sales tax, which is the mainstay of the Many thousands of families have been or executive direction its importance support of our schools and general govern­ waiting to build or buy a new home or to warranted. ment in California, by some $200 million. remodel the present one. This is the time H.owever, there are a number of fundamen- It would also reduce income taxes in the to show confidence in America's future. -tal issues where we are in sharp disagree­ lower brackets and attempt to offset the - California is a highly 'diversified State. ment. losses by greatly increasing taxes in the _Many of the problems that are to be found _ Let's review the scorecard to date. upper brackets. in agriculture or industry in the other 47 ·I believe a State constitutional ·amendment The end result will be a substantial loss States can be found within our borders. is necessary in order to assure the success of of revenue to the State government. Our State has made substantial progress. in qur·_statewide water project. My opponent I believe this proposal will be detrimental our elementary and secondary local school does not. to California and will tend to discourage system under the constitutional guarantees I support the position that the Federal potential investors to come and reside in our for their financial support. Government should respect the water laws State. Both in its immediate effect and in As a member of the legislature I played of California. its future potential it will be highly harm­ ari active part in preserving these guarantees If elect(d Governor I will do everything ful to the _economy of California. and in providing the revenue system that in my power to have the department of water We need to encourage potential investors have made them effective. resources and the water rights board sus­ with new capital to come to California and The control of our school system must be tain the State's position as upheld by the to invest in the creation of new industry and retained in our school districts and State. recent decision of the Supreme Court of the expansion of existing facllities in order Not in the Federal Government. California in the Ivanhoe and related cases. to create more Jobs for our growing popula­ It is also essential that our State univer­ I would hope that the new attorney gen­ tion. sity, the State colleges, the primary and eral will, likewise, support the historic Cali­ Taxes out of line with those in other States secondary educational systems keep abreast fornia position protecting the rights of this could cause investors and industry to locate of our State's growth and meet the new State. · elsewh~re. challenges that face this generation. My opponent, the present attorney general I stated my opposition to this initiative As a member of the State senate I was of California, has himself abandpned, and ~ proposal on February 6. , I am pleased to note chairman of the subcommittee which draft­ sought to get the irrigation districts to aban­ that finally on Monday of this week, a month ed, and I subsequently handled on the floor, don, this position. and a half later, my opponent has joined me 1958 CONGRESSIONAL RECORD- HOUSE 5161 , In opposition to this proposal. He at -least In my judgment, these provisions will Solid Majority ·Is in Favor of Federal Aid no longer disagrees with me 100 percent. safeguard basic human rights of union mem- California, as a leading agricultural State, bers and give them a representative voice in for School Construction has a vital interest in whether we go down the management of their unions to whose the road to a ·completely regimented agri­ support they contribute, year in and year EXTENSION OF .REMARKS culture where the Government at Washing­ out, a part of their wages. ton is to determine what the farmer will The American way of life has its founda­ OF ·grow, how many acres he wm plant, the price tion fixed on maintaining the God-given of his product and if, indeed, he· shall be a dignity of man and the noble aspiration of HON. FRANK THOMPSON, JR. free man in making the ·determination of free men in a free society. OF NEW JERSEY the use of his land or will we preserve free­ In order to assure the success of our pur­ IN THE HOUSE OF REPRESENTATIVES dom for the farmer from growing controls pose, we must always insist that with power by the Federal Government. must go responsibility. · Monday, March 24, 1958 We need to constantly expand our markets, I believe in the right of every American Mr. THOMPSON of New Jersey. Mr. domestic and foreign, for our agricultural worker to join a union. This right to join Speaker, under leave to extend my re­ products. a labor organization is now and will con­ marks in the RECORD, I include a letter As Governor I shall continue the work I tinue to be protected by law. So this is to the President; a report on a recent have carried on as United States Senator to not the issue. New Jersey poll showing a solid majority advance the interests of this important part I believe in the right of the majority in of our State's economy. in favor of Federal aid for school con­ a plant, department or bargaining unit to struction; a New York Times report As for me, I favor more freedom for the bargain collectively for the employees with­ farmer to make his own determinations and showing the support of organized labor less regimentation by the Federal Govern­ in that bargaining unit. This right is now for a school construction program; a fine ment in Washington. and will continue to be protected by law. So this is not the issue. article by George W. Oakes, in the Wash­ Toward this end I have opposed the rigid ington Arizona; RoY W. would prefer that each State solve its own suitable t"or that purpose because it would WIER, Member of Congress, 3d Dis­ problems. take place largely in populated areas where trict, Minnesota; HERBERT ZELENKO, ·plans are likely to be · re·a.dy and where the Member of Congress, 21st District, New money expended would have a high velocity York. · [From the New York Times of March 11, 1958] of circulation. ·LABOR UnGEs UNITED STATES To BuiLD WHERE SHOULD AID GO? SCHOOLS-SPOKESMAN CALLS FOR ACTION [From the Trenton Evening Times of March To PROVIDE CLASS&OOMS AND AID THE JoB­ One of the basic questions that the ad.­ 20, Hl5S] LESS ministration and Congress must resolve in THE NEw JERSEY PoLL-130LID MAJORITY Is IN WASHINGTON, March 10.-0rganized labor's any school construction pz:ogram conceived. FAVOR OF FEDER..-\L AID FOR SCHOOLS · as an antirecession measure is whether Fed­ )eglslative spokesman told Congress today .eral funds will. be provided to school. dis­ (By Kenneth Fink, director, Princeton Re­ that the time had come for the Government search Service) tricts that need new buildings the most o·r to start building schools as an urgent pro­ to areas where construction plans· are ready. gram that would also lessen unemployment. At the present time, President Eisenhower If schools are built on a where-requir~d­ ·· Andrew Biemiller, speaking for the Ameri­ and his advisers are consi~ering ae:king Con­ ·most basis, th~n the impact on the economy gress to help the various .States with their can Federation of Labor and Congress of In:. will probably be delayed. On the other hand, school-building programs in an effort to in• .ctustrial Organiz:ttions, appeared before the ·if the guiding principle is to get construction crease employment and improve economic Senate Labor and Public Welfare Committee. under way as fast as possible, then priority conditions. He said that those in the trade-union will naturally be given to those school .dis­ Should Congress see fit to appropriate .movement are appalled by the failure of tricts that have already drawn up their plans. money to help the States with their school­ President Eisenhower to even mention the There are no reliable official figures avail­ building programs, such action would meet ~lassroom shortage in his plans for meeting able as to how many and which of the ap­ -with the approval of a solid majority of New the recession. proximately 54,000 school districts througb,:­ Jersey citizens, judging from _the results of However, he praised a group of eight Re., out the country actually have building plans a survey completed in the· State within the publican Senators who included school con­ prepared or under way. Such data is usually past 10 days. _struct!on yesterday in a broad plan for meet­ prepared by the State educ·ation depart­ Survey findings show that more than 3 bUt ing unemployment. The joint statement of ments, but in some States school districts of every 5 New Jersey adult citizens think the Senators included this sentence: "It are independent of State control and there­ Congress should provide money for this pur­ would be shocking for Congress to fail to act fore the necessary information cannot easily pose. At the same time, more than 1 out promptly in favor of a school-construction be compiled. · of every 3 of all those interviewed think program." . Federal education officials, in discussing school aid for buildings should be left up OTHER LABOR PROPOSALS proposals for school building, favor allocation to the various States. ·of funds on the basis of need even if such In other words, those who think Congress . Mr. Biemiller listed increasing of teacher salaries as the next most urgent field for ·a policy would delay construction because should help the States with their school 'they consider that educational requirements building programs outnumber by a 7-to-4 Federal school action. He put Federal schol­ arships as third in importance. He declared are paramount. They also say that Federal margin those who would prefer leaving the funds should not be provided for States and matter to the individual States. that they should be awarded without a needs test and should cover the humanities equally ·local communities that can finance new New Jersey poll staff reporters put the fol­ with science. schools on their own. lowing question to New Jersey citizens in all - For example, Baltimore County has a 6- walks of life arid in all parts of the States: The committee headed ·by Senator LISTER ·HILL, Democrat, of Alabama, is nearing the year $50 million program under way. If Fecl­ ~'This year;s Congress is considering giving ..eral funds should supplement the $24 mil­ money to the various States to help them close of hearings on science-aid bills stressing scholarships. lion of local and State money to be spent with their school-building programs, such as .in 1959-60 probably twice as many schools the building of elementary schools, high could be built during this period. But offi­ schools, and college buildings. Do you think [From the Washington (D. C.) Sunday Star cials believe it would be better to spend the Congress should provide money for this pur­ of March 23, 1958] same 'amount of Federal money in States pose, or should school aid for buildings be RECESSION RAISES SCHOOL BILL HOPES which cannot afford to finance a .program of left up to each State?" (By George W. Oakes) their own. The results: SEE WIDESPREAD EFFECTS Percent School construction as an antirecessio:g. measure is getting bipartisan attention in .. Proponents of school construction as a Yes; Congress should helP------~ 64 Should be left up to States______35 Congress. p~spite the integration issue, ·business stirimlant argue that the funds ex­ _education pollcymakers in bot!} Sez;1ate anCji ~pended .would have benefits far beyond the No opinion------1 House believe that the rising demand for areas in which the schools are built. They Highlight of today's survey findings is that useful public works he.s reache~ such p,ro'­ declar.e the projects would have natlonalim­ At least 58 in every 100 in each population ·portions that school construction legisla­ ·pact, since they would stimulate the entire group examined think that Congress should -tion could be adopted· by both Houses if the ·building materials business, and, of course, provide money to _the various States to help administration would lend its support. · the· additional money floWing into the se- 1958 CONGRESSIONAL RECORD- HOUSE 5163 lected areas w.ould create markets for con­ comes of more thai}. $7,500 increased from Sixth Anniversary of the United States · sumer products made in &11 parts of the 9 percent to 17 percent. Fam111es under country. · $3,000 decreased from 41 percent to 34 per­ ~scapee Program . How long would it take to build the aver­ cent. age high school for 1,000 children? omcials How about ell].ployment and unemploy­ estimate that on the average 3 months should ment? Of a total work force of 67 million, EXTENSION OF REMARKS be devoted to educational planning, 6 months 5 m1llion now are out of work, 7.5 percent ol OF for the architectural plan and another year the total. Now, let's compare: In W38, after to construct and complete the building-! 6 years of the New Deal, 10,400,000, or 20 per­ HON. FRANCIS E. WALTER year and 9 months in all. In some areas, of cent, of the 54 million work force were unem­ OF PENNSYLVANIA course, the first two steps have been taken. ployed. In 1950, 4,800,000, or 7.6 percent, of The last federally financed school con­ 63 million were up.employed. Also, in 1950, IN THE HOUSE OF REPRESENTATIVES struction programs were the PWA and WPA President Truman said that jobseeking was Monday, March Z4, 1958 operations nearly 25 years ago. Then about healthy and that three to five million unem­ $1.5 billion at today's prices was invested ployed was normal. Two wars solved the un­ Mr. WALTER. Mr. Speaker, I would in building public schools. The cost of employment of these two former periods. lil{e to call the attention of my col­ labor and materials is three times what it The 1954-55 recession was solved peacefully leagues to the fact that March ·21 was then, but because of more effcient de­ by our refusal to get ruffled, and the national marked the sixth anniversary of the sign and construction methods, the class­ gross soared upward. We do know there were United States escapee program. room cost is up only 2Y2 times. even 2Y2 milion unemployed at peak pros­ What are the political prospects of a school perity. This program was first announc.ed by construction bill? The Democratic leader­ Are we then in a recession? Well, we have President Truman in March 1952. ship in the Senate would probably back it receded from the last high peak of pros­ "These men and women," he said, as part of an overall public works program~. perity. Compared to any other period, our "friends of freedom, ask only for an op­ In the House-where the fight will be tougher economic outlook is good. The real danger, portunity to play a useful role in the and where school construction legislation has as I see it, stems from politici~ms wanting to fight for freedom. It is the responsibil­ been repeatedly defeated-present. prospects capitalize on the recession scare technique. ity o{ the Free ·world to provide this are that school construction legislation For example, Senator LYNDON JoHNSON and opportunity." . would face less hurdles than in the past few Representative WRIGHT PATMAN are sponsor­ years for economic and other reasons. How­ ing a new capital bank system. Another Sen­ President Eisenhower, in speaking of ever, its strongest supporters point out that ator suggests. another world bank. -scores of the escapee progr·am,· said: only administration backing will make it others, well-intentioned or not, are .pushing I believe that the task of caring for the possible to muster the necessary votes, so pet programs. New Dealers are saying this is escapees should have the highest emphasis these advocates-both Republican and Dem­ the "now-or-never period to get liberal pro­ in the minds of all the Free World, and I am ocratic-are looking to the White House for grams under way." happy that the United States has already encouragement. All these Government aids cost the taxp·ay­ done so much of this work. I know that the ers either Jn more dollars in taxes or by water­ American people consider their participation ing the dollars through deficit financing and in this humanitarian effort is not just a inflation. The big spenders are also the tax­ material effort, but -also a matter of the cut proponents. We all want tax cuts. Re­ heart. ·Washington Report sponsibly, how can we cut taxes while in­ creasing spending? It is·gratifying to see the · The continuation of the escapee pro­ widespread recognitio~ of the beneficient ef­ gram will probably be necessary as long EXTENSION OF REMARKS fect of a tax cut. Yet, taxes pay the cost of as the international Communist conspir­ OF Government programs. )llow we're expanding acy, entrenched in the Soviet Union and the costly Government programs. Who. is in that country's colonial dependencies, HON. BRUCE ALGER kidding whom? _There is only one way safely continues its rule of persecution. · to reduce taxes-and that is to reduce Gov­ OF TEXAS ernment spending, not increase it. To date, 317,000 escapees have re· · IN THE HOUSE OF REPRESENTATIVES _ The housing bill, to pump $1.85 billion ceived help in some form in rehabilitat­ ~ore into houSing subsidies, provides for ing their lives in free areas. Of this Monday, March 24,. 1958 . lower downpayments, increased mortgage number 170,000 have come from Europe Mr. ALGER. Mr. Speaker, under the­ purchase&. by Government, and one-half of 1 and 147,000 from the Far East. percent increase. of interest rates. The biU leave to exte~d my remarks in the.REc­ Many of the escapees .have been was railroaded through under suspension~ ORD, I include my newsletter of March brought to this country. This Congress­ 22, 1958: of the rules, without debate, and without has passed Public Law 85-316 which fur­ Members even having .a form of Frderal assistanC<.' to encourage scientific educa- Mauna Loa and Hualalai in Hawaii· and tion?------__------. ------6. Woc.ld you favor a $20,000,000,000 national air raid ~ helt e r construction program?------______------on Haleakala · in Maui. However, over 7. Do you favor increasin~ social security benefits with corresponding increases in individual the past several decades this magnificent and employer contribnt.ions? ______------______------8. Would you fayor furnishing nudear weapons to our NATO allies in Western Euroj)('? ---·-- ______------native waterfowl has declined seriously· 9. In an effort to meet the national economic situation, please inrlicate which o! the following . in numbers due to a group of factors. Federal actions you think should receive prior attention: . . . These include indiscriminate hunting in (.a) Arcelerate our present public-works program (highways, public buildin ~s , etc.) __ __ ------(b) Initiate a massive public-works program ______------past years, changes in land use, and the (c) Increase our housing program·------______iJ?.crease of predators such as wild pigs (e)(d) RIncomeeduce credittax rt~d restrictionsuctions .. --- ______------______-______------______-----______------~---- and dogs. · (f) No Federal Government action required_------______------______In 1949, when less than 3o- Nene were 10. Do you favor Federal aid for local school construction? _------~------known to exist in the world, the Terri­ torial Board of Agriculture and Forestry's . NOTE.-If you wish, the space below may be used for additional comments. It is not necessary to give your name. Fish and Game Division.initiated a Nene restoration program at Pohakuloa, Hawaii, to propagate Nene under wire to ~ The Story of Free Enterprise create jobs? And did it work? Are. we prevent the imminent -extinction of this to try these remedies again? species. Throug-h the cooperation anti In February 1950, 4,800,000, or ':'.6 per­ gen·erosity of Mr. Herbert c. · Shipman, EXTENSION OF REMARKS cent, of the total work force were out of who had the only cap~ive flqck of l')lene OF work. Mr. Truman at that time -said in existence, two pairs were lqaned tQ the . HON. BRUCE ALGER 3 to 5 · million unemployed is normal board·of agriculture and forestry and the ·and job seeking is healthy. Further, it project was begun. OF TEXAS is, a fact that even at peak prosperity At the same time, plans were made for IN THE HOUSE OF REPRESENTATIVES over. 2% million were unemployed. a comprehensive ecological survey of the Monday, March 24, 1958 So it is a -demonstrated fact that wild birds to determine what factors today's 5,100,000 unemployed, or 7.5 per­ actually contributed to the great reduc­ Mr. ALGER. Mr. Speaker, are we un­ cent of the total, is not alarming in itself. tion of- the Nene, and how to correct derestimating free enterprise? Are we Further, income and savings are at a these detrimental factors and increase selling ourselves short? . This talk about record high. · and perpetuate these birds in their native recession and unemployment, let us look Must we now, forgetful of our experi­ habitat. at the facts. For example, on employ­ In 1955, with the help of interested ment and unemployment: In 1938, 10,- ence, try all of the unsuccessful New Deal cures of the 1930's, the F'ederal conservationists in Hawaii and on the 400,000, or 20 percent of the total work mainland, grants to finance this ecologi­ force,: were unemployed and this was handouts and the make-work programs? after 6 years of New Deal programs. · Will this help, binder, or kill free enter­ cal · surv·ey were secured through the Yale-Bishop Museum." Fellowship, Pan Yet the economic and political pallia­ prise? Let me tell a story: American Section of the International tives suggested on every side today h~we Two Maine farmers met on the road a strangely familiar ring. . Did not we and pulled up their teams. Committee for Bird Prese1:vation, ~he try to spend our way to prosperity "Hey, Sy," said Josh.. "I've got a mule Guggenheim Foundation, and the Mc­ through the thirties? Did not we em­ with · distemper. What did you give Inerny Foundation. The grants were bark on vast public-works programs yours. that time he had it.? .. awarded to Dr. William H. Elder, pro­ naively confident that we could thereby "Turpentine. Giddap." fessol: of zoology at the University of. 5166 CONGRESSIONAL =RECORD-· HOUSE March 24 Missouri, who is one of the foremost fore, they were not aware of the tragic during the years of the operation of the waterfowl specialists in the country to· consequences a deepening depression in farm program. day. He arrived in Hawaii in September agriculture will have not only upon our The Department of Agriculture has 1956 for his year's study. farm people but also upon the total econ­ prepared figures on the quantities of Doctor Elder conducted his study and omy and upon all the people of our food the average pay for 1-hour of fac­ presented a scientific paper on the sub­ country. · tory labor· would buy in 1929 and in ject at the 23d North American Wildlife Some, no doubt, thought they were 1957. Conference in St. Louis, Mo., on March voting to "set agriculture free," whatever One hour's pay would buy 6.4 one­ 2, 1958. Dr. Elder recommended that that means. - pound loaves. of bread in 1929, and 11 four steps were necessary to save this Others thought they were protecting loaves in 1957; 1.2 pounds of steak in species and restore it to its native habitat. the interests of the consumers of the 1929, and 2.2 pounds in ·1957; 7.-8 pints First. Permanent protection of the Nation. of milk tn 1929, and 16.6 pints in 1957; only known breeding ground of the A few may have thought they were 1 pound of butter in 1929, and 2.8 pounds . Nene, both from human disturbance saving money for taxpayers. in 1957; 1.3 pounds of bacon in 1929, and and predation by exotics introduced by FREEDOM FOR FARMERS 2.8 pounds in 1957; 1.1 dozens of eggs in 1929, and 3.7 dozens -in 1957; · 17.7 man. To those who may have been influ­ pounds of potatQes in 1929, and 36.3 r Second. Artificial rearing to be con­ enced by a plea to "set the farmer free," ­ tinued and improved until sufficient sur­ pounds in 1957; and 1.3 dozens oranges let me say first that I shall work to the in 1929 and 3.6 _dozens in 1957. plus stock can be released to assure the limit for the real freedom of farmers and This is the situation although in re~ status of the species in the wild. of all Americans, but I shall.nev.er brood cent years consumer food prices hav~ Third. Acquisition of a release area on the farmers' loss of their freedom to adjacent to the breeding ground, where­ gone up while farm prices have gone go bankrupt and their freedom to be­ down. in stock to be liberated can be released come once again the paupers in this when flightless within a predator-proof Senate Joint Resolution 162, which the. Nation's economy. House passed by a 210 to 172 vote on last fence for conditioning to natural foods If any one of you is worried about the and flight before the normal flocking Thursday, and which the Senate sent freedom of farmers, let me ask you two to the White House by a 48 to 32 ..vote _ and flight season begins. questions: Fourth. Strengthen the public rela­ on Friday, would prevent the Secretary . First. Is it regimentation, loss of lib- _ of Agriculture from reducing price sup­ tions program leading to greater public erty or something more evil when people awareness of the need for protection of ports in 1958 below the dollar and cents in industry -regulate. their production to support levels of 1957. By forestalling the Nene, the official bird of Hawaii. fit their mar~ets? That is just wh~t ~he Here, in the case of the Hawaiian cuts already announced by the Secre· farm program seeks to do for farmers. tary, this would save milk producers an~ goos~, is a . situation where it. is not too If indeed, this is something evil, then other loss of $250 million this year and late to save a species from extinction. the owners and managers of our indus­ prevent another loss of more than $200 Due to the concerted efforts of a few try have embraced it since the begin­ million to wheat producers. individuals, this species is in an excel­ ning, while it only recently has Now let us look specifically at the lent position to be restored to its native "corrupted" agriculture. relationship of farm price to consumer habitat. Additional funds are needed, Second. Is it regimentation, loss of price in these two commodities. however. The Territory of Hawaii and liberty or something more evil when ln 1952 milk prices were supported at private organizations have been able to people in industry have a voice in the 90 percent of parity and the average start this restoration program, but Fed­ price o-f -the things they offer for sale? price of a quart of fresh milk in grocery eral assistance is needed so that compe­ That is just what the . farm program stores throughout the country was 22.8 tent personnel can be assigned to this seeks to do for farmers. If, indeed, this cents. In 1957 the support had been re­ task and see it through. is evil, then the people in industry have duced to 83 percent of parity qRAM PRICES AND COSTS and were ill-advised· by those whose Never in our history has the wage of Now, Mr. Speaker, as I have noted, leadership they have trusted and, there- working people bought more food than some of my colleagues may have sup- 1958 CONGRESSIONAL RECORD- HOUSE 5167 ported lower prices for farm commodities Our agriculture has been in a decline which we in the Congress have acted in the expectation that costs of the farm for 5 years. to forestall, would inevitably intensify program would be reduced and, there- Comparing 1957 with 1952, total farm the very recession that he is trying to fore, there would be savings to taxpayers. production was up 6 percent, farm prices cure. I earnestly request all of my colleagues down 16 percent, farm parity ratio down The rural economy of America and the to look at the figures on this. The official 18 percentage points, total farm income urban economy of America are inter­ reports of the Department of Agriculture down 20 percent, realized net farm in­ mixed and inseparable. . Both must be show that the price support program come at the lowest point· since 1942, prosperous, or else one will drag down through the Commodity Credit Corpora- purchasing power of that farm income the other. , tion operated for 20 years prior to 1953 down 24 percent, lowest since 1940, and Mr. Speaker, I appeal to the President, at an actual profit of over $13 million on the farm population has declined from ·before it is too late-before we have a the programs for the basic crops, and 24,283,000 in 1952 to 20,396,000 in 1957. full-fledged depression in this country­ the loss on all crop operations at the end Farm debt in 1957 reached a record that he comprehend this interdepend­ of the 20 years was only $1,064 million, · high of $19,500,000,000. ence of our rural and urban people, whereas loses in the last five years have Deterioration of the agricultural that by all means.he approve the "hold amounted to over $4 billion. It should economy dries up rural purchasing the line" legislation for agriculture em­ be pointed out that with price supports · power. Then .businesses in. towns and braced in Senate Joint Resolution 162, at 90 percent of parity for 11 consecutive cities that service agriculture begin to · and that he then cooperate with the years prior to 1953 the actual farm prices suffer. Ultimately the impact reaches Congress-Democrats and Republicans were at 100 percent of parity or better, throughout the economy. This is what alike-with measures in agriculture to and farm program costs were negligible, has happened in the past and it is hap­ restore prosperity on our farms and to whereas during the recent years of con- pening again today. turn back and banish the recession now stantly falling farm prices, program Among the unemployed in our cities gripping our towns and cities. costs have skyrocketed. there now are many thousands of people Some of my friends here are inclined, who have been forced off the land by I have noted, to give the price support the depressed conditions in agriculture program no credit for the years preced- in recent years. Program of Action To Accelerate . ing 1953 and want to attribute to "war It. often has been said that national and postwar demand" all the responsi- depressions are farm-led and farm-fed. Recovery bility for the good prices that farmers We know that in the past the breadlines received in those years. I ask you to in our cities have been longest when our EXTENSION OF REMARKS take note of the fact that the demand farmers were receiving the lowest prices OF for, and use of, the products of American for the food they produced. farms at home and abroad has been Mr. Speaker, I have read carefully the HON. WILLIAM F. KNOWLAND great~r in the last four years than in the President's antirec~ssion program, but OF CALIFORNIA four years of World War II, yet the.farm to my d~smay I have failed to ~nd in his IN THE SENATE OF THE UNITED STATES program has been administered in such economic proposals one mentiOn. of or a way that farm prices have been re- any sympathy for the depressed plight of Monday, March · 2~, 1958 duced to depressing levels and program the Nation'S agriculture. Mr. KNOWLAND. Mr. President, I costs to the Government have mounted Not only does the P'resident ignore ask unanimous consent· that there may by leaps and bounds. agriculture in his antirecession program be printed in the CONGRESSIONAL REC­ I say to you: Poor prices to farmers do but now we read in the press that he ORD a statement issued by me at Sacra­ not make farmers prosperous. Poor will veto our efforts, through Senate mento, Calif., on March 21, 1958, out­ prices to farmers have not reduced food Joint Resolution 162, to prevent farm in­ lining some of the steps which had been costs to consumers. Poor prices to come from dropping this year by a half taken by the administration and/or the farmers do not mean less costs to the billion dollars below 1957. Senate toward the acceleration of eco­ Government and savin·gs for taxpayers. The le?islation which is n?w be~ore nomic recovery . .At this point I shall insert a table list- the Pr~side~t to stave off Immediate There being no objection, the state­ ing the major commodities produced by econ?~Ic . disaster to our far~ers · by ment was ordered to be printed in the farmers which are affected by Senate providl_!lg a 1-~ear freez_e on pnce sup­ RECORD, as follows: Joint Resolution 162 and which indi- ports Is not Ill conceived or poorly STATEMENT OF UNITED STATES SENATOR WIL­ cated the 1958 farm value of these com- thought out. Th.e Congress is not mere­ LIAM F. KNOWLAND AT SACRAMENTO, CALIF., modities at the lower support levels an- ly .buying tim~ in the hope that some­ MARCH 21, 1958 nounced by the secretary and their value thmg better Will happen. We now have The administration and the Congress are at the 1957 support rates, which would befor~ '-!-s for study .the PI~oposals of facing up to the dislocations in the Nation's economy. be reinstated by this resolution. For Ame~IC~ s f~rmers for _ImPI~ovmg our do­ We have more than 62 million · Americans the purpose of this computation it is mestlc agricultural. Situation. For _ex­ gainfully employed. assumed that production of the various ample, both the dairy farmers and the Following are the programs and actions crops in 1958 will be at the same volume wheat farmers have presented proposals taken by the administration and/or the Sen­ as in 1957 which are designed by these groups_to ate to accelerate recovery: . · meet the needs of their industry. What we are asking for in suggesting to the HOUSING 1 1 5 1 1. In August 1957, the administration re­ Crop ~f~~~gu~~ ~cfs ~~ ~S~~=s~ f6'i President that he sign Senate Joint Res­ duced the downpayments required by FHA reduced support minimum 1957 olution 162 is for time in which the Con- and took action reducing the amount of cash rates support rates gress can review these proposed plans a home purchaser would have to put up at ------I-----I----- and others like them applicable to other time of purchaee. Wheat______$1, GSG, ooo. ooo $1,894,000, ooo crops. It is our hope that in review- 2. In December 1957, the administration 87 000 000 204 000 000 ~~~~-cream~-and.-iiut:- I ' ' ' ' ing them and in subjecting them to the released $107 million of additional funds for ter______4,300,000,000 4,64o,ooo,ooo processes of the Congress, we can de- purchase of military Capehart housing loans 4 4 by the Federal Natlo'nal Mortgage Associa­ ~~~~?:~::::::::::::::: g~; ~; ~ ~f; ~; ~ velop improvement in programs for tion. Sorghum______573, ooo, 000 584, ooo ooo, farmers. 3. At the same time, the President re­ g~Et~~:~~c:::::::::: 2lrr; ~; ~ ~~; ~; ~ Mr. Speaker, it is beyond all under- leased an additional $50 million of capital Flax.------·------72, ooo, ooo 75, ooo, ooo standing that the President would veto grant funds for urban-renewal projects and an additional $20 million for the purchase of TotaL...... 7, 643, ooo, ooo 8, 150, ooo, ooo ~~~s~t~h;~~~o!e~~l~~~e::;ta~~~o ~~= FHA-insured loans for cooperative housing duce again the already depressed condi­ by the FNMA. THE GENERAL ECONOMIC RECESSION 4. In January 1958, the administration re­ tions of farm families at the same time scinded the FHA rule requiring that closing Mr. Speaker, the Nation now is in a he is developing pump-priming measures costs must be paid in cash. This had the general economic recession, with busi­ to combat unemployment in our towns effect of reducing the cash investment re­ ness declining and unemployment in­ and cities. He seems to be totally un­ quired by a home buyer when purchasing a creasing. aware that the work of his Secretary, home under an FHA-insured mortgage. 5168 CONGRESSIONAL RECORD- HOUSE March .24 5. In March 1958, the maxintum yields al­ HIGHWAY UNEMPLOYMENT COMPENSATION lowed on VA-guaranteed loans traded in the Federal-aid highway expenditures will have President Eisenhower announced he secondary market were allowed to rise by ad­ an appreciable impact on the economy in the would propose to Congress a program to ex­ justing allowable discounts. This move was months ahead in the direct employment of tend the duration of jobless benefits for made to attract more fun_ds to the GI pro­ labor and materials and by stimulating large ·unemployed workers. Federal funds would gram. amounts of additional indirect investment. be used to grant unemployment compen- 6. In March- 1958, the President released 1. The administration has accelerated its sation for an additional period, perhaps 13 $200 million for use in the special assistance · spending for highways. In the current 19_58 weeks. program of FNMA. FHA-insured and VA­ fiscal year estimated spending is $800 million (Benefit levels and lengths are set by the guaranteed loans of $10,000 and less were more than in the last fiscal year ended .rune States and paid from payroll taxes on em- made eligible for purchase by FNMA. This 30, 1957. Spending in fiscal year 1959 will players. Maximum duration of payments will stimulate building of homes for citizens be $600 million more than in 1958. now varies by State from 16 to 30 weeks, o! modest means and expedite other au­ 2. President Eisenhower revealed he will with most covered workers eligible for 26 thorized programs. If more funds are need- ask Congress to sus.pend for 3 years certain weeks.) . ed the administration will ask for them. · expenditure limitations in the Federal High- LEASE-PURCHASE PLAN 7. During February and March ·1958, the way Act. Such amendment, he said, would Projects currently authorized in General . Federal Housing Administration took sever~l p~rmit apportionments t9 the States of an Services Administration ·program of lease­ . steps to speed up its processing of loan ap­ additional $2.2 billion of Federal funds, all -purchase for acquiring public buildings to­ plications and ·began the practice of using of ·which will be. placed under contract dur- tal 92. local fee appraisers to supplement its s~laried ing calendar years 1958-61, . In calendar year 1958, 58 projects will be staff of appraisers. Adoption of the amendment will permit started involving $105 million of financing. 8. The Federal Home Loan Bank Board apportioning during each of those years a The administration has scheduled a has announced that, effective April ·15, 1958, total of $2.2 biU~on of Federal funds for . sharp --expansion for. calendar year 1959, member institutions may arrange long­ interstate-highway construction alone. with an estimated $390 million of financing term financing up to five years with the CIVIL PUBLIC WORKS -for the 34 remaining projects.. . Home Loan banks. This would increase the availability of funds for investment in home 1. The administration plans to increase The law authorizing lease-purchase pro- mortgages _i_n are;:ts that rece!}tly have ex­ Federal spending on civil public works in grams expired July 1957 and legislation is perienced a shortage of such funds. the current fiscal year and in fiscal year 1959. need~d to permit the program to continue In total, spending will . increase by $4~0 beyond the 92 projects currently author- 9. In addition, the administration has ized. , . · made a number of requests for legislative million in fiscal year 1958 over fl. seal year · URBAN RENEWAL . action by the Congress, inclUding: · 1957 and by $240 million in 1959 above 1958. a. Repeal the requirement that discounts 2. The President instructed the Director of Action under the urban renewal program be controlled and ·allow administrators of the Budget Bureau to accelerate, where prac- will increase substantially in fiscal year 1958 the housing programs to establish maxi-. · ticable, the construction of projects for which and 1959. One hundred projects will J:>e inurn permissible interest rates within c;>ver­ appropriated funds are available. Speeding started in fiscal year 1958 and 120 in fiscal all statutory limits. up of civil projects alone, many of which are year 1959, compared with 56 in fiscal year b. Raise the maximum statutory p,ermis- .already in the planning and engineering 1957. sible interest rates on: stages, will result in the expenditure of near:- As part of his housing program, the Pres- (1) VA-guarimteed loans. ly $200 million several months earlier than ide_nt requested an additional $200 million · (2) FHA-insured rental project loans.: previously planned. .. for the fiscal year beginning next July 1. (3) FHA-insured cooperative housing This earlier expenditure will step up such On March 19, 1958, the President wrote a loans. · . construction programs as Corps of Engineer letter to the Housing and Home Finance Ad.­ (4) ·capehart military housing project civil works, the improvement of roads and · mintstrator urging acceleration of the urban · loans. facilities in national parks,· and the Bureau renewal program which with Federal, c. Raise the maximum permissible loan of Indian Affairs roadbuilding maintenance : State, and local funds inv~lves $1 blliion. amounts for .FHA-insured home loans from activities. . EXPORT-IMPORT BANK $20,000 to $30,000. 3. Water-resource projects have also been It 'is estimated that credits extended by 1958 · d. Increase FHA's insurance authorization accelerated in the fiscal year, and the the bank will finance $625 million of ship­ by an additional $3 billion for each of the ·affected departments are submitting amend­ ments abroad in the first half of calendar next 5 years. . ments to the l;>udget as are needed to con­ year 1958, of which. a substantial part will e. Act promptly on FHA's request for a tinue this higher building rate in 1959. Ad­ be machinery and equipment. supplementary appropriation for the 1958 fis­ ·ditional amounts requested are: Exports financed by Ex.-Im Bank credits are - cal year of $2 million to speed up processing In mil~ions expected to 'rise further in the last half of the a. The Department of the Interior, Bu- of applications being received. reau of Reclamation ______.$46 calendar year, for which the President has DEFENSE CONTRACT AWARDS a~ked Congress to in·crease the bank's lending · b. Department of the Army, Corps of authority by $2 billion. Defense contracts let are being sharply Engineers, rivers and harbors arid Action on this request would accelerate accelefated~ ,:These contracts will provide in­ flood control--~------125 the bank's lending activities with direct ben­ creased employment in many industrial com­ c. Department of Agriculture (water­ efits to employment in many communities. munities. shed-protection and flood-preven­ (Note: Senate passed S. 3149, which pro­ 1. Defense procurement, construction, and tion · projects)------15 vides a $2 billion increase. The House bill, other contracts placed in calendar year 1957 H. R. 10459, has been reported from commit­ totaled $17.8 billion. They are· estimated to Total------186 tee and is on the House Cal~ndar.) rise by $5.8 billion in calendar. year 1958, to a 4. In addition, the President said he will OTHER LEGISLATIVE REQUESTS OF THE , total of $23.6-billion, ask an amendment to .the Department of the 2. Of the $1,715,000,000 of obligations Interior ·budget to allow an early _start on ADMINISTRATION 1. high planned for military construction (exclusive small reclamation projects which were a~- . Special assistance to areas o! and of housing) in th.e montbs February through' thorized by the 1956 Small Projects Act. persistent unemployment. June 1958, $450 million are planned for labor­ Here is the increased spending picture. for ·, 2. Tax relief for small business. surplus areas of the Nation. civil public works: 3. Removal of the statutory limit on the 3. And the Defense Department is looking .life of the Small Business Administration into the possibility of speeding construction [In millionsl and provision of new authority for loans to projects already under way in labor-surplus small business. areas without increasing the total cost to Fiscal year- 4. A $2 billion program to moderniZe post the Government. office buildings and equipment. 4. On orders of Preside'nt Eisenhower, the 1957 1958 1959 5. $46 million supplemental appropriation military departments have, in recent days, for Hill-Burton hospital grants.

acted to award more procurement contracts Commerce and housing (ex­ OTHER ACTION TAKEN BY THE ADMINISTaATION in labor-surplus areas, with first priority to cluding trust-fund-financed small-business concerns in such areas. highways)______$172 - $325 $424 'I'he following funds held in reserve by the Natural resources (mainly Budget Bureau at the instruction of the 5. A new clause is being inserted in future water resources)------841 958 _1, 012 contracts urging prime contractors to give Labor and welfare (hospitals, President were released: preference to qualified subcontractors in schools in impacted areas)__ 127 219 261 l. $8 million to General Servic;:es Adminis­ labor-surplus areas to the full extent per­ Veterans (mainly hospitals).. 40 43 41 -tration for repair and improvement. Febru­ .Agricultw-e and agricultural 1958. missible under existing law. resources (grain storage and ary 8, 6. The military services are also reexam­ watershed control)______48 61 165 2. Tw·elve million five ·hundred ninety­ ining their procurements to assure that the General Government build- seven thousand dollars to- REA for ·loans, maximum number of contracts are available ing_------63 126 165 March 6, 1958. to small business generally as well as to '.rota] (rounded) ______. 1, 290 I 1, 730 ~ The President released letters designed to labor-surplus areas. accelerate federally aided construction total- '1958 CONGRESSIONAL RECORD- HOUSE 5169 tng more than $2% billion 1n private, State, 6. Adopted Senate Concurrent Resolution has resulted. :from too heavy imports of local, and Federal funds. 69, favoring acceleration of military con­ Japanese plywood. a. To Housing and Home Finance Agency struction programs for which funds have Japanese plywood imports-which were only under which are the following programs: already. been appropriated-estimated to 13 million square feet in 1951 and 21 million ( 1) Public facility loans, $75 million.· total on February 1, 1958, about $1.8 billion square feet in 1952 increased to more than (2) College housing loans, $300 million. in unobligated funds. Adopted March 14, by 686 million square feet in 1957. (3) Urban renewal (redevelopment and vote of 76 . to 1. The resolution commended These 1957 b:pports of Japanese plywood supporting facllities, $1 billion. the President and the executive agencies for had a wholesale value of about $60 million (4) Public housing, $140 million. "such action as they have taken to accelerate and were the equivalent of the combined b. To the Secretary of Agricult:ure: these_programs." output of 12 large plywood mills that em­ ( 1) Rural electrification and telephone 7. Passed a bill to extend the Agricultural ploy a total of about 5,000 American ply­ loans, $740 million. Trade and Development Act for 2 years to wood workers. Because of these plywood FEDERAL RESERVE CREDIT AND MONETARY POLICIES help dispose of farm surpluses. imports about 5,000 American workers in plywood mills of the South and Pacific The Federal Reserve System is independent Northwest are out of jobs and in addition in of the administration. 'The President does the two areas. about 3,000 loggers who supply not direct the operations of the Federal Re­ these mills with raw :materi-al are unem­ serve Board and banks. Therefore, tech­ Japanese Plywood Made of S~viet R~­ ployt!d. As the result· of this heavy unem­ nically speaking,-actions of the Reserve Board sian Logs Is Depriving American ployment in plywood producing areas, which to relax credit restrictions cannot be at­ is. largely ·the result of· plywood imports tributed to the Eisenhower administration. Workers. of 8,000 Jobs from Japan, many small businesses and their . Nevertheless,. the actions taken by the employees are suffering employmentwise Board, however independent of the admin­ and incomewise. 'istration, have an impact on the ·economy. EXTENSION OF REMARKS The Board has certainly acted in light of the I am inserting here a table showing how recession and has certainly consulted with OF Japan's plywood production has expanded the administration. HON. RUSSELL V. MACK during recent years and how her shipments Steps have been taken by the Federal Re­ ef plywood into the United States has in­ serve authorities to increase the availability OF WASHINGTON creased by leaps and bounds year after year. of credit and to reduce its cost to borr.owers. IN THE HOUSE OF REPRESENTATIVES This table follows: 1. Discount rates member banks must pay Monday, March 24, 1958 Japan production and exports of plywood to when they borrow · from Federal · Reserve . United States Banks were reduced 3 times beginning last Mr. MACK of Washington. Mr. (In million square feet] November: Speaker, Japan is now buying logs from (a) November 1957 the rate was cut from Russia. and shipping the plywood she Produc- Exports 3% percent to 3 percent. · makes from these Soviet logs into the Year tiou to United (b) January 1958 the rate was cut from States 3 percent to 2% percent. United States. (c) March . 6, 1958 the rate was cut from According to the Tokyo correspondent 1951.------625 13 2% percent to 2~ percent. of the Lumbermen, an independent, 1952 ------~ -- 789 21 2. Reserve requirements have been reduced large· and influential timber industry 19541953.______------. ______------_ -1,1,404 064 311112 twice so far since January 1958. These are trade publication of Portland, Oreg., Ja­ . 1955______1, 800 436 ~ the amounts that reserve banks must 'keep pan's purchase of Russian logs in 1958 1956.------2, 250 541 as a percentage of their demand deposits. · 1957------686 a. On February 19 the reserve requirement · will total 198 million board-feet; Since was cut by one-half. of 1 percent. This re­ 1,000 board-feet of logs makes 1,500 I leased about $500 million, which could sup­ board-feet of 3-ply standard plywood, There have been rumors and reports that port some $3 billion increase in loans and this means that this quantity of Russian Japan voluntarily has agreed to Gurtaii her ' discounts. logs would produce 300 million board-feet exports of plywood to the United States, to b. On March 18 the reserve requirement 400 million feet a year . . I can find no om­ of standard plywood, or if the Russian cia! evidence oi this. again was cut by one-half of 1 percent, re­ logs were used only as. core stock, that leasing about $490 million. This makes pos­ A dispatch from the Unite<;~ States Em­ sible an expansion of funds av.ailable for the Russian material could be used in bassy in Tokyo to the American State De­ loans and discounts of about $3 billion. the manufacture of as much as about partment (No. 894.391) dated September 1957 The increased availability and lower cost 1 billion board-feet of Japanese plywood. said that Japan had agreed to curta.il her of credit which these steps are bringing The present heavy imports of Japanese plywood exports to the United States for the about help promote a higher level of home plywood are depriving about 8,000 Pacific 6 months, October 1, 1957, to April 1, 1958, building and of constr~ction generally. They to 310 million board-feet. This, on .an an­ Northwest and · southern plywood plant nual basis, would be 620 million board~ will make it easier, and less expensive, for workers and the loggers who supply State and local governments to move for­ feet. This, if adhered to, would be a reduc­ ward with construction of needed public fa­ them raw materials of employment. tion of only about 10 percent on the 686 mil­ cilities. We of the plywood producing areas do lion feet of plywood Japan shipped into the not want to deprive the Japanese of a United States in the calendar year 1957. ANTIRECESSION ACTION OF THE SENATE, 85TH Such a small reduction would have no ap­ CONGRESS, 2D SESSION . reasonable share of the plywood market of the United States. However, we feel preciable effect in increasing Jobs in the 1. Passed supplemental defense appropri­ American plywood industry. ation bill for :fiscal year 1958 (Public Law that Japan's plywood sales in the United I have obtained figures showing Japan's 85-322, providing $1.260 billion in new funds States should. be limited to about one­ shipments of plywood figures in the last and $150 million in transfers from old funds third Japan's 1957 volunie. If this were quarter of 1957. These show that in the to speed high priority missile and bomber done, Japan ·still wou)d have a far larger-. last 3 months of. 1957 United States imports programs). share of the American plywood market of Japanese plywood totaled -167 million 2. Passed supplemental appropriation for than she ever enjoyed prior to Pearl board-feet. Labor Department providing $25 million Harbor and the Korean war while our Imports by months of plywood from Japan more for unemployment compensation for domestic plywood industry would ex­ were: October, 58 million board-feet; No­ veterans and $_18.4 million for unemploy­ vember, 44 million board-feet; and Decem­ ment compensation for Federal employees perience greater prosperity and its work­ ber, 65 million board-feet. This is at about (Public Law 85-324). ers less unemployment. the same rate of plywood imports from Japan 3. Passed bill providing disaster loans for I made a statement to the Ways and as for the entire year 1957 and far above the small business suffering loss on account·. of Means Committee today on the need of a 1956 import figures. rain damage (Public Law 85-335). quota limit on Japanese plywood im­ The wage rate in the Japanese forest-prod­ 4. Passed bill to stimulate residential· con­ ports. My statement to the committee uct industry is only 11% cents an hour. struction by some 200,000 new homes. Bill follows: Our American workers cannot and -should went to the House for action. not be expected to compete with such a 5. Adopted Senate Concurrent Resolution STATEMENT BY REPRESENTATIVE RUSSELL V. low wage scale. 68, favoring acceleration of civilian construc­ MACK, OF WASHINGTON, BEFORE THE HOUSE It is interesting to note that Japan last tion programs for which funds have already WAYS AND MEANS COMMITTEE, MONDAY, year shipped goods of all kinds valued at been appropriated--estimated to total about MARCH 24, 1958 $625 million into the United States. Ply­ $4 billion. Adopted March 12, by vote of Mr. Chairman and members of the com­ wood exports from Japan represented, there­ 93 to 1. The resolution contained Congres­ mittee, I thank you for this opportunity to fore, about 10 percent of her total exports sional commendation of the President and inform your committee of a very serious un­ to the United States. Our plywood industry executive· agencies· for "such action as they employment condition in the Pacific North­ is one of the hardest hit of all industries by have taken to accelerate these programs." west States of Oregon and Washington that these Japa.nese imports. 5170 CONGRESSIONAL RECORD-· HOUSE March 24 The Japanese-plywood industry is still ex_. port on Japanese timber imports from ·Rus­ The Committee on Un-American Activ­ panding and growing.as the table of Japan's sia gives the following figures: ities investigated three phases of the Com­ munist propaganda campaign, tracing it b.ack plywood production indicates--increased Japanese import of Soviet timber from 625 million board-feet in 1951 to 2,250,- to the Soviet Union, Red China, and the 000,000 board-feet in 1956 and to 2,600,000,00(} Board measure satellites--East Germany, Poland, Hungary, board-feet in 1957. I am told the rated an- 1954 ------·960, 000. and Czechoslovakia. These were: nual capacity of. her plywood mills is now 195.5 ------8, 160, 000 1. A drive to lure refugees and defectors, about 3,600,000,000 board-feet. In short, Ja- 1956 ------26; 000, 000 who have found asylum in Amerlea. back to pan's "Plywood mills can produce a billion. · Tokyo newspaper correspondent Kenjf the slave-camp homelands from which they feet a year more plywood than they produced Sakai in his article in the Lumberman says had fled. last year~ that Japan's 1957 imports of timber from . 2. Propagandizing by Americans who pene­ Unless something ls done by the Ways and Russia were about 60 million square feet or trate the Iron Curtain through the fraudu­ Means Committee and Congress soon to place more than double the quantity imported in lent use of passports. some limits on these Japanese plywood ex- 1956 and that 1958 imports from Russia are 3. Treasonable activities of American ports, our American plywood industry and its estimated to be 11m million square feet or Communists in spreading propaganda among workers will suffer even more severely in the 6 times the quantity of Russian timber American prisoners of war in Korea.. months and years ahead than it is suf- Japan imported. from Russia in 1956. · Most of the refugees who receive literature from behind the Iron Curtain, react indig­ fering employmentwlse and prosperitywise QUOTA LIMITS URGED now. If Japanese plywood exports continue nantly because they have already repudiated to increase, more of our American plywood. My constituents in the plywood industry, the terror governments of the countries !rom mills will be forced out of business. its operators and its workers, are not ask­ which they fled. Moreover, they have been ing that our doors be closed tightly against acutely disturbed to learn that the Commu­ JAPAN USES RUSSIAN LOGS all Japanese plywood imports. We are ask­ nist apparatus has been able to locate their Logs from the Soviet Union now are be­ ing, however, that quota limits on the addresses and in some cases to discover newly ing used by Japan in the making of her amount of plywood Japan is permitted to assumed identities in this country. plywood. This .means that when Americans ship into the United States be imposed. The purpose of this campaign is twofold: buy Japanese plywood they are, indirectly, We believe that if Japan were permitted First, to create dissension and dissatisfaction tJading with Russia and thereby helping the to ship into the United States 250 million among the refugees about conditions in the Soviet economy. square feet of plywood a year instead of the United States and to develop a sympathy for Where do I get the information that Japan almost 800 million square feet she now is the Communist program; second, to lure the is buying logs from Russia? I obtaJned. it' shipping annually into our country that refugees back to their native .lands, where from a Japanese source, and from a Japanese Japan still would have a large market in the they can be reindoctrinated for espionage authority. · United · States-a far larger market for and subversive purposes. The Lumberman, of Portland, Oreg., a Japanese plywood than she ever enjoyed The uniform nature of. the propaganda large and influential trade paper of the Pa­ prior to Pearl Harbor and World War II. publications proves beyond question that the cific coast lumber industry, recently pub­ However, by limiting her to 300 million feet campaign is conducted in a highly integrated lished a news article written by its Tokyo, valued at $20 million a year about 3,700 jobs fashion by the international Communist Japan, correspondent, 'Mr: Kenji Sakai. The in American mills could be saved for Ameri..: apparatus. news article by Tokyo correspondent Sakai, can plywood workers and 2,500 other jobs A great deal of it holds out to refugees as. published in the Lumberman, follows: created for loggers who are now idle. glowing promises of free transportation, food, clothing, good living quarters, and ex­ "JAPANESE TO INCREASE SOVIET TIMBER cellent jobs for those who will return to IMPORTS .their native lands. Some even promise le­ "(By Kenji Sakai) Red Propaganda in United States Is nie~cy to those who may have violated laws at '"FOKYO, JAPAN.-Late in 1957 a general home if they are genuinely sorry and desire trade agreement was at least realized be­ Unchecked to redeem themselves through honest work tween the Soviet Union and Japan. As re­ for the homeland. sult, Japanese importation of Soviet timber The particular treachery of this bait lies in 1958 will be more than three times as EXTENSION OF REMARKS in the fact that even refugees who have ac­ much as in 1957. OF quired American citizenship may lose this · "In 1957 Japan, imported nearly 60 million protection once they set foot on their native feet of Siberian coniferous wood. In 1958, HON. DANIEL i. FLOOD soil. Poland, for example, refuses to recog­ nize the American citizenship of any Poles Japan :.s enabled to .import up to 500,000 OF PENNSYLVANIA cubic meters. This would be equivalent to who have become naturalized here. about 198 million feet. MITI has arranged. IN THE HOUSE OF REJ;lRESENTATIVES In one 4-week test,. officials of the Bureau a permit for the use of foreign currency held Monday, March 24, 1958 of Customs and the Post Office Department by ;rapanese for the import. identified some 32,000 packages containing "The outlet 'windows' composed by im­ Mr. FLOOD. Mr. Speaker, under propaganda-each package comprising from porting firms have organized a new import leave to extend my remarks in the REc­ four to a dozen separate publications--enter­ association. On the other hand, the actual ORD, I include the sixth in a series of eight ing the port of New York and destined for recipients of the Soviet timber are now com.; articles by the Honorable FRANCIS E. Pennsylvania. Pennsylvania, in fact, ranked fourth posing a nationwide federation of North­ WALTER, chairman, House Committee on Seas-Timber Import Association and this among the States in the amount of propa­ Un-American Activities, on the Commu­ ganda dumped from abroad, and New Jer­ federation composed of nationwide timber nist conspiracy in the United States. merchants and sawmills. sey was third. To learn how the stuff was "Annual Japanese import of North Ameri­ This series of articles recently appeared distributed to individuals, the Un-American can timber has held a level of 70 million feet in the Philadelphia Inquirer: Activities Committee: questioned a number or so. There is a difference in species and PROPAGANDA Is UNCHECKED of witnesses, with interesting results. monetary value by species, but so far as One was a young German, Werner Marx, (By Representative FRANCIS E. WALTER) who admitted he had come to America to es­ quantity is concerned, the import from Most Americans hailed it as good news cape the Nazi terror. He served in the North America will be superseded in 1958 when the Daily Worker, after slavishly dis­ United States Navy during the war; as a re­ and onward by the import from the Soviet." seminating vicious Communist propaganda sult, he was able to obtain his master's de­ You will note that Correspondent Sakai, in the United States for so many years, gree from the University of Pennsylvania at tn this article, reports that whereas Japan ceased publication shortly after the New Government expense. imported 60 million board-feet of logs from Year. Richard Arens, committee counsel, exam­ Russia in 1957 that she expects to import To exaggerate the importance of the Daily ined Marx: from Russia 198 million of Russian logs in Worker to the Communist conspiracy would "I put it to you that since you have been 1958. be dangerous self-delusion. The party news­ a resident of Philadelphia, without being One thousand board-feet of logs produces paper was sent down the drain for the Com­ registered as a foreign agent, pursuant to the 1,500 board-feet of 3-ply plywood. If all munists' own good reasons but a mammoth Foreign Agents Registration Act, you have of the Russlan logs imported this year were Red propaganda operation is still flooding been receiving foreign Communist political used in making plywood panels, they would the United States with tons of literature from propaganda and have been a nerve center for behind the Iron Curtain, most of it in vio­ the dissemination of political propaganda in produce about 300 mlllion board-feet of ply­ lation of the Foreign Agents Registration this community.'' wood. If, however, the Russian logs were Act. Marx, the refugee who had found freedom used only to make core stock for plywood This law is the special interest of the sec­ and protection in America, refused to an­ panels, the Russian logs could go into the tion of the Justice Department ln which swer claiming the privileges of the fifth making of almost 1 billion board-feet of Jap­ Judith Coplon was employed and it was no amendment. anese-made plywood. coincidence that Soviet spies were vitally The fraudulent use of American passports A Japan Forest Resource Utilization Ra­ concerned. about obtaining information from by -Communists presents a particularly dif­ tionalization Conference in a statistical re- that branch of the American Government. ficult problem. The issuance of passports 1958 . CONGRESSIONAL RECORD- HOUSE 517l to party members is prohibited by the Inter­ tee, he told our investigators, was organized Members of Congress and their families nal Security Act of 1950, but Reds often have in October -1952, with the professed purpose on May ·23, 24, -and 25. managed to de.feat the law. The party, for of promoting a cease-fire in Korea and drew example, has stopped issuing membership into its orbit many non-Communists moti­ This annual Congressional tour for cards and in many cases has specifically for­ vated by a genuine desire for peace. Members of both branches of Congress bidden strategically placed adherents to join The fact is, the organization was conceived and their fimiilies provides for 3 glorious the party. ·by Communists as an instrument for re­ days in New York at a cost of $37.50 At one series of hearings, our committee moving United States troops from the scene each for adults and $32.5·0 each for summoned some 20 witnesses, all o;f whom so that South Korea would be left at the _ children between the ages of 5 and 12 had traveled abroad since the end of the . mercy. of Communist invaders. years. Second World War. Many had taken part As part of its scheme, the committee pe­ in international Commun.ist ... controlled riodically released a bulletin entitled "Save This year's trip will include a recep­ meetings as officials, delegates, or observers. Our Sons," which it mailed to relatives of tion at New York City Hall, a visit to the A review of their passports exposed the trick­ American prisoners of war. The issues usu­ United Nations, a day at West Point ery by which th~y had entered countries their ally included reprints of letters purportedly Military Academy, a . reception on a passports did not entitle them to visit. written by Americans held in Korean piison transatlantic liner, a visit to New York's . When the travelers presented their pass­ camps. They appeared to be authentic, Chinatown, and several other receptions ports to an Iron Curtain country the Com­ since they bore the signatures of known at various hotels. Opportunities for - munists did not, as required by law, affix an PWs. - . entry visa. Instead, they gave the visitors What the unsuspecting families did not attending New York shows are included " separate bits of paper on which the visas know was that most of the letters h ad been in the schedule. · -were stamped. In some cases-apparen~ly forged or had been written under duress. Since there are no primary elections by oversight.,-the visas were stamped. in the Chairman of the SOS Committee was Mrs. sc}leduled for the weekend of May 23, 24, pa$spor.ts but were later eradicated. The Florence Gowgiel, -of Argo, whom Czarnowski .and 25, Members of both branches of FBI was able to re-create the visa stamp by told us he had .known as a member of the Congress interested in making the tour a chemical process. . Communist Party since 1946. Her connec­ should reserve that period for an enjoy­ . To show how some of these Americans be­ tion with the party was well concealed, how­ able period in New York. Those wish­ haved abroad, consider the case of Louis ever, by the SOS outfit. ·Wheaton, identified as 'deputy secretary gen­ As part of her campaign, she wrote letters i~~ to obtain further information may -eral of the Peace Liaison Committee of the to many prisoners of war in Korea. Coop­ call Miss Patricia Bryan in my office, . Asi~n - and Pacific Regions. Following. is a :erating with - her,. Communists in . Korea extension 4576. portion of a speech made by Wheaton, as re­ forced the prisoners to read these letters over ported in an English language broadcast from lc ud speakers to fellow prisoners. Peiping on October 31, 1952: The infamous SOS machine went even fur­ "It is time that a few things be s~id to. us, the~ in exploiting the pl~ght of American Extension of Reciprocal Trade Act the people of the United States. The first­ prisoners. In 1953, for example, it circulated ·hand accounts of the conduct of our troops what it said was -- a etter written to Mrs. abroad are shocking. American troops' . vi­ G )Wgiel by a prisoner named Dale E. Jones. EXTE_NSION OF REMARKS cious and criminal behavior is absolutely In part, the letter stated: OF horrible. "I am certain that the majority of the "These accounts were given by newspaper American ·people know that this war in -HON. ROBERT L. F. SIKES correspondents of many lands, as well as by Korea is useless and inhuman. Thousands OF FLORIDA the Korean peace delegation . to the confer­ of people are dying just because a few in­ ence. The people of Asia · and the Pacinc dividuals want a little more for themselves. IN THE HOUSE OF REPRESENTATIVES ·region are convinced . these accounts are They even kill their own people ~n order Monday, March 24, 1958 · true. to m ake it that way. That is why the '_' In one .village in Korea, more than 300 American peopte must urge President Eisen­ Mr. SIKES. Mr. Speaker; I i'equest . children were put· into one warehouse and hcwer to keep his promise and put an end permission to place in the CoNGRESSIONAL their mothers into another nearby. Gasoline to the Korean war, peacefully. REcORD as a par·; of my own remarks, a was poured around the warehouse where the "We want to return to our loved ones very statement which I have made to the children were and set afire. The mothers, bad, even though we have been treated with House Committee on Ways and Means on -hearing the screams of their children, ·broke the best of care-. we never have a dull the extension of the Reciprocal Trade down the doors and wind-ows . . As ,they were moment here .in this camp but we want to Act. · The statement follows: trying to saye their children, these mothers come home. The Cl>inm:e people don'.t :want were machinegunned by our troops." to kill and cripple the American boys. They STATEMENT OF CONGRESSMAN ROBERT L: F. The same hearings provided proof that are here to protect their own country from SIKES B E FORE THE HOUSE COMMITTEE ON Americans who took part in various Commu­ being invaded." Yv AYS AND MEANS ON THE EXTENSION OF ·nist-dominated conferences for peace or Private Dale E. Jones eventually appeared THE RECIPROC.'\L TRADE ACT _youth-held abroad-were, knowin~;ly or un­ before the · Un-American Activities Commit­ Mr. Chairman, I do not appear in opposi­ knowingly, an integral part of the Commu- tee. He testified he had never written to tion to the extension of tlle Reciprocal Trade . nist movement _ Mrs. Gowgiel, nor had he ever seen the letter Agreements Act, if a reasonable modifica­ These peace conferences and youth festi­ that allegedly bore his signature. t :on can be had. I could not, however, vote vals attract delegates from all countries of Mrs. Gowgiel, who had loudly and cease­ for the ext ension of this act in its present the world, but they are dominated by the lessly preached and promoted the cause of form. I think it extremely important that Iron Curtain spokesmen, and their purpose is comm.unism, was given her chance to ex­ a new concept of reciprocal trade be written to ·propagandize in behalf of the foreign plain her curious activit ies on behalf of an iLto _this year's bill. American industry is policy of the Soviet Union and against the enemy of her country. She chose, instea<;l, feeling the pinch of foreign competition very foreign policies of all free nations. silence, on the ground that she did not wish keenly and many American plants are - Without exception, delegates to these con­ to incrimin ate herself. destined to be closed. and many more Ameri­ ferences have unanimously supported all can workmen to be forced out. of employ­ resolutions proposed by the _Communist m ent if the present program is re-enacted leaders, and the Communist delegates from wit hout change. When the livelihood of our non-Communist countries-including Amer­ cwn people becomes so obviously affected, we icans-invariably attacked their own govern­ Plans for tbe 1958 Congressional Tour of in the Congress must take such steps as .are ments. New York City, May 23, 24, and 25, for within our power to protect their inte:test. Never once have delegates from Soviet­ I still believe in the original purpose and bloc countries condemned their own govern­ Members of Congress and Their F ami­ intent of the Reciprocal Trade Agreements ments nor, significantly, did any .delegates lies Have Been Completed Act. But, I note that the Constitution from the United States condemn the long states very clearly that Congress shall review record of Soviet aggression and inhumanity. the decisions of the Tariff Commission. By The Communist invasion of South Korea, EXTENSION OF REMARKS the simple process of restoring to Congress which exposed Moscow's aggressive inten­ OF this power, which now is vested in the tions for the whole world to see, received President by law, the reciprocal trade pro­ warm indorsement from American Commu­ HON. JAMES E. VAN ZANDT gram can again become a good thing. nists, who played upon the hardship and OF PENNSYLVANH It is my opinion that the efforts of this suffering of Americans fighting this menace Nation to be helpful to its neighbors at the front in one· of the most cold-blooded IN THE HOUSE OF REPRESENTATIVES throughout the world is being taken ad­ examples of Red treachery. Monday, March 24, 1958 vantage of by other nations under the guise The story of the Communist-inspired Save of the Reciprocal Trade Agreements Act. Our Sons Committee was exposed through Mr. VANZANDT. Mr. Speaker, plans The State Department, in its zeal to further the aid of an FBI undercover agent, Anzelm are being completed for the annual Con­ good will and to assist in world progress. Czarnowski, of Argo, Ill. The SOS Commit- gressional tour of New York City for has, I fear, lost sight of the dangers which 5172 CONGRESSIONAL RECORD- HOUSE March 24 are inherent in the present act to American and then reassert through legislation its con­ protect this industry in my part of the coun­ economy. Certainly it is not intended that trol over the Tariff Commission's decisions. try, just as I would have a desire to protect the United States should carry the entire And, it should write into law a strong pro­ industry and, its workers in whatever part of. load of world affairs. We are not econom­ vision for the establishment of import quotas the country you represent. ically able to do so. We have already done for injured American industries that must Just a few days ago we learned there are far more than our share. have them. now 5.1 million people unemployed in the I have noted the effect of low wage com­ I advocate and support measures to return United States. This does not take into con­ petition from abroad on business in com­ the regulation of our foreign commerce to sideration the textile workers, working 3 days munity after community across the Nation. the Congress, including amendment of the a week, or less, or those in the plywood If the act is continued in its present form, escape clause of the Trade Agreements Act, industry, working the same sort of short there will inevitably be increased imports so that it will provide: week. We must not forget that both capital of the products of cheap labor abroad that That all recommendations of the Tariff and labor in these industries support the ' will mean more business failures and in­ Commission be submitted to the Congress Government by taxes, support the commu­ creased unemployment at a time when we for approval or disapproval instead of the nit y and constitute a part of the purchasing <:annat afford it. A case is made by advocates President; that any such recommendations power in the particular area in which they of the present Reciprocal Trade Act for the by the Tariff Commission with respect to are engaged. And if industry is so ham::­ flow of American goods abroad. Actually, import quotas and duties shall be final and pered that it has no demand for its goods, these exports may or may not be affected become operative until disapproved by Con­ then it does not need producers and unless by the modification of the Trade Agreements gress and; that there should be· set forth the employees are producing for wages they Act · which is proposed. But, in any event, explicit guidelines to govern decisions of the do not have any money to spend for other the exporters who benefit are localized; the Tariff Commission with respect to the estab­ items. I grant you that the standard of American industries which are adversely lishment of duties and import quotas. living in this country depends upon produc­ affected are nationwide. The truth of the I want to thank you, Mr. Chairman, for tion and perhaps not on protection, but if matter is we have built up serious foreign this opportunity to appear befo.re your ho:p.­ we• do not give the produce:~; prote.ction, the competition for our own producer!! very orable committee today. sacrifice will hurt all of us. largely with ~merican dollars, America:n As I understand the policy of the: late and know-how, and American sponsorship. But, revered Cordell Hull, who fathered the pro.,. we cannot continue to support this foreign gram known as the reciprocal agreements competition out of our own pockets to the Statement of Hon. Robert W. ·Hemphill, program, his idea was to have the trade detriment of our own people. reciprocal. The idea was to purchase from I have. expressed my general interest in of South Carolina, Before the House other countries the things we did not have, this matter. I have also a specific interest. Committee on Ways and Means on such as raw materials, or which we .did not I have the honor to represent the Third produce, by virtue of t~me , distance, or other District of the State of Florida. I have a Proposed Extension of the Reciprocal factors, and in turn sell to those countries number of plywood and veneer plants in the products of our factories. But what has my District that are being seriously affected. Trade Agreements Act happened? I will use the Japanese textiles by the ever increasing imports of foreign as an example. The Japanese plants· take plywoods. Supplying those plants are nu­ EXTENSION OF REMARKS our cotton at 6 or 7 cents below the price merous loggers, truckers, and timberland our own mills have to pay, pay their workers OF owners. 'I·he impact of the importS is affect­ as little as 10 percent or less of the wage ing these companies and their ~mployees rates paid United States workers and ships and their sup-pliers. · HON. W. J. BRYAN DORN back the cotton goods. In the American The· crux of the unfortunate situation lies OF SOUTH CAROL IN A plants, wages, hours of . work, minimum in the fact that foreign producers, and t -am IN THE HOUSE OF REPRESENTATIVES wages, and cotton prices, are all regulated speaking primarily of Japan, pay their work­ by the Government. Who is most impor­ ers su.ch very low wages that they can market Monday, March 24, 1958 tant? The American textile laborer, in­ their product in this country and undersell Mr. DORN of South Carolina. Mr. vestor, and American taxpayer, or the Japa.,. our domestic producers again and again. nese? . To illustrate the damage done by foreign Speaker, my colleague, Hon. RoBERT W. companies, may I cite a few, statistics Im­ HEMPHILL, made an outstanding state­ I realize that those who are wedded to the idea of reciprocal trade have many &tatistics ports in 1951 counted for but 7 percent of ment to the Ways and Means Committe~ the domestic consumption with Japan taking on the subject of reciprocal trade. Mr. as to the percentage of imports. They are 1 percent. Today, imports account for 52 ·going . to tell you that the Japanese volun­ HEMPHILL's statement is worthy of the tat:ilY agreed to curtail textile imports to percent of domestic consumption and Japan attention of the entire country: is furnishing 42 percent. When the hard­ this country. The Japanese did voluntarily wood-plywood industry, or indeed any Ameri­ STATEMENT OF HON. ROBERT W. HEMPHILL, agree to curtail imports to this country, an can industry, suffers the loss of over one-half FIFTH DISTRicr OF SOUTH CAROLINA, BEFORE admission- of the effect of those imports on its markets, its position becomes untenable. THE COMMITTEE ON WAYS AND MEANS ON our economy; that voluntary action on their The economy of the country is now, it is PROPOSED EXTENSION OF THE RECIPROCAL part was only after pressure was put on by well recognized, ih· a depressed state. We in TRADE AGREEMENTS ·ACT, MARCH 13, 1958 the . State and Commerce Departments of the Congress are talking about all manner Mr. Chairman, and distinguished members this country. of relief. What manner of relief then is of the Ways and Means Committee, I ap­ Not only in my section, but in others have necessary for the hardwood-plywood indus­ preciate very much the privilege of appearing textiles been affected. The New Bedford, try, relief which in turn will help the loggers, here this morning in behalf of my people to Mass., Hoosac Mills has recently announced truckers, and the timbergrowers? The an­ give a statement regarding the extension of it is closing 1 plant which employs 800 swer is simple, it is the establishment of the Reciprocal Trade Agreements Act. I con­ people. The Lewiston; Maine, Pepperell quantitative quotas. As has been said many fess that I am no expert, that my knowledge plant has laid off 60 to 70 employees. Two times, in and out of Congress, the Japanese is limited to what I have read, and what I weeks ago, on a Sunday television program, have instituted voluntary quotas since 1956 have heard, and what I have seen. I saw long lines of unemployed. Down in and as has been proven, the Japanese have In the good old American fashion of name my section many good taxpaying Ameri­ flagrantly violated these so-called quotas calling, those of us who feel some loyalty and cans are working so little they barely have since their inception. It has been suggested allegiance to our own American industry have food to eat. that an increase in duty on plywood imports been given the label of "protectionist." Is it Let me quote you from a letter I received would save this industry, and this,· too, is not strange that American indu$try and from one of my constituents about another not true. With a labor cost in Japan of $4.17 American production need protecting from industry that is affected: · per thousand square feet as opposed to a agreements ·Or legislation in which American "It is the question of the import of Jap­ labor cost in the United States of $38.50 a investments are being sacrificed? anese stainless flatware, which has taken a thousand squa.l>e feet, a tariff of 100 percent In my area we are particularly concerned heavy toll on the domestic production of might .be imposed and the Japanese would over the effect of 1·eciprocal trade on the not only stainless steel fiatware, but also, still undersell our producers in our own textile industry and the plywood industry. sterling, and silverplate. markets. It has been suggested that the The textile industry is fourth in the Na­ "My company, which is the largest in the industry turn to the Tariff Commission a·nce tion, and many thousands of people who industry, was forced to cut their sales force again as it did in 1955, but this would be work in that industry are taxpayers and by about 25 percent the first of the year. useless. Only quotas will save our industry tt not only the American hardwood-plywood home appliance, nor is he a d~sired sort of alter the situation, b;ecause of the great dif.. industry, but many other industries as well~ consumer. r · hope you share my desire to ference in price of the American product; 1958 CONGRESSIONAL RECORD- HOUSE 5173 and the Japanese product, due to the 22- ment? If so, in the consideration of any others which are suffering. How is a recip· cents-an-hour-wage advantage. The silver­ reciprocal trade program, should we not rocal trade program beneficial to our own ware industry has meant a great deal to this take such facts into consideration? economy, if we are putting people out of country in the form of excise taxes for a Let us look at the plywood industry for work? Eighty-one thousand workers are number of years." a moment. Yesterday morning I received a out of work today. What is reciprocal trade There are some who say that the escape letter from one of my constituents and I doing for them? clause, which ha.s been in effect for the last quote: Again in his letter, he seeks to justify a 10 years, will protect us. We are faced, how­ "In a newsletter published in Washington 5-year period, with adequate authority to ever, with the realization that there has been to which I subscribe, the current issue re­ reduce tariffs, because, he says, we are in an no concrete definition of the phrase "serious ports ~ considerably better chance to tax important period of development of the ex­ injury," which is the apparent key to the reductions, in the face of increasing unem­ ternal tariff of the European Economic situation. This escape clause is supposed ployment. _I am not in a position to express Community. I think we are beginning to to give industry a right to present its case an opinion on the subject, but I am well realize in this country that this is an im­ before the Tariff Commission. There, if qualified to know that a forced t ax cut is portant period in the history of this Nation, serious injury is shown, the Tariff Commis­ in st ore for the Government when we pay that the economic as well as our military sion can recommend action by the President our income taxes for 1957. In 1958, we will survival is at the crossroads. Europe is to escape from the harmful agreement, and pay $406.50. This serious condition reflects booming and a depression is imminent here. some relief may be realized. So far, how­ lower prices for products we sold in 1957 and VVhere is reciprocal trade? VVe must face ever, in the majority of the cases. it has higher costs we had to pay for supplies, etc. the answer. Reciprocal trade as now em­ proved unworkable because t}le executive "You have heard a lot about conditions in ployed by the United States is a disgraceful department has failed to honor the recom­ the plywood industry, brought about di­ failure, and is in large measure responsib~e mendations of the Tariff Commission. rectly by having to compete with plywood for the economic difficulties of many Meanwhile, one industry after another is imported from foreign countries and sold at industries. hurting and being sacrificed. prices that are probably equal to less than In keeping with the experience of the past . Recently the Assistant Secretary of Com­ our costs. Nu doubt the industry has been few years, if the Reciprocal Trade Agree­ merce tried to justify the policy with refer­ accused of crying •wolf, wolf'. So far as this ments Act were to be extended for 5 years, by ence to textiles by saying that while we im­ company is concerned, we can now reply, that time some of our American industries ported 646 million in textiles, we exported 'We told you so.' I think there is no point could be entirely wiped out, and could suffer 668 million. Let's look at the 646 million in saying anything m()re to you. You can financial ruin waiting for peril-point inves­ for a second. Those imports would not and fill in the rest of the story. tigation. could not have existed except for the fact "The administration keeps talking about If this committee is going to recommend that they could be sold cheaper than our helping the little man and little business. an extension of the Repicrocal Tracie Agree· American goods. The reason they could be What about our 65 little employees and this ments Act, I hope it will limit it to 1 year. sold cheap~r than ours .if? because of lower little business. What has become of the Congress meets every year, and an annual wages, longer hours, cheaper cotton, less 'dignit y of the individual,' something Ameri­ review of the impact of these agreements on taxes, than in America. Meanwhile, the cans have always accepted as our way of our domestic economic situation is certainly ~merican industry was supporting the Gov­ life. SUrely it has been tossed aside, in in order, especially in these times of threat­ ernment, management, labor, the local -com-· favor 'of a 'foreign' foreign policy." ening economic difficulty. munity, and furnishing its share of the . In the CONGRESSIONAL RECORD Of March 6, Much of the criticism of the Reciprocal taxes which went to make up the difference 1958, on page 3652, the distinguished Trade Agreements Act arises from the fact in the cost of cotton to our foreign competi­ Representative from the State of Washing­ that the cont~ol has been legislated away tors. It does not make sense, and it is not ton pointed out the widespread plant shut­ from the Congress and into the hands of the right. For some reason, we failed to make down and unemployment in his area. On administration. I have only been il). Con­ provision for the export of our surplus cot­ January 21, a distinguished Representative gress one term, but I have witnessed throu~h- ton in fabricated goods. No provision has from Florida made the same complaint. -In 6ut that limited experience the difficulties been made that we keep our mills running, a recent Commerce Journal there appeared a impressed upon a Nation by an unwilling, our people employed, and our taxes fiowing story that Japan wa·s tightening the ply­ reluctant, or indifferent Executive. fnto the Treasury by exporting fabrics,· at wood quota for the United States, w}lich The ineffectiveness of the· escape clause low or surplus cost, instead of raw cotton, recognizes, ~f our Government will not, the was recogniz~d wh~n the policy committee let our Government take up the 6 or 7 cents inroads of foreign imports on this industry. was established by Executive power on No­ differential-at least the American people In 1937, we imported into this country about vember 25, 1957. The establishment of that will get the benefit of .( 1) the use of the . 4 lf2 million square, feet of plywood and :in committee was a step to prevent a move to-. surplus cotton, and (2) the benefit of em­ i956, 690 million square feet. In 1951, this ward a regaining of Congressional control. ployment to make the fabrics. The differ­ represented only 8.2 percent of our domestic lf the committee is going to recognize an ential paid on the fabrics could be paid to shipments and 7.6 percent of our domestic extension, I hope that some provision will industry and earmarked for ex·pansion or im­ consumption, but in . 1956 it represented b~ contained in the legislation, making the provement to give further employment, and 85.2 percent ratio to domestic shipments and findings of the Tariff Commission final un­ expand our industry. I do not offer this as . 46 percent of domestic consumption. These less voided by prompt action of Congress. a panacea for the depression presently upon are just some of the signs of the times to I am opposed to any extension of the Re­ us, but the potential and benefits are former flourishing taxpaying American in-­ ciprocal Trade Agreements Act in its present a_pparent. dustrief?. I realize that part of the difficulty form, or in the form proposed by the admin­ I am making no apology for putting Amer-: arises from th~ reduced trade-agreements. istration. In such ,form it does more harm lea first. The people of America are mo·re · rates made effectjve pursuant to undertak­ than good. . . impprtant to me than any other people in fngs created by the United States General May I urge your consideration of H. R. the world. Agreement on Tariff and . Trade-. But what 11250, introduced by my distinguished col­ - 'There are some who say that if the Re­ about the escape clause-what good is it if we· league from South Carolina, the Honorab~e ciprocal Trade Agreements Act is . not ex-· wait until our industry has been given a WILLIAM JENNINGS BRYA.N DqR~. The Dor::r,. tended we will destroy our position in the death blow before it is put into effect? The bill seeks to re~urn reciprocal trade to its­ world. We cannot escape the fact that such best medicine in the .world is no good if the normal channels, . for the fiow of exports to things as we really need such as raw ma­ patient is dead . . the United States has reached the fiood terials, we import duty free. This includes Among the propaganda I have seen, there stage-a stage never intended by Cordell lilost of our tin, nickel, aluminum, raw wool, is a little article put out called "American Hull. In the year~ between 1930 and 1958 part of our petroleum, 25 percent of our Stake in Japan!' .It uses the usual threat the situation has gotten out of hand, out of iron ore, .and about one-third of our copper of communism to justify America's conces-. control-,-this bill will return control. . and rubber. Nobody is going to cut us off.­ sions to Japanese . interests. But . what From the original act (19 u. s. c. 1351) I We are good consumers and you and I know about Amerlca's stake in America? quote; · · we pay exorbitant prices for these raw rna-· IIi his ~etter of. transmittal of January 30, ·- · "PROMOTION OF FOREIGN · TRADE , terials l:n most instances. · The world would. f958, the Secretary of Commerce made the "Foreign-trade agreements: (a) Authority not .lose -us ·as a market, and the- original following statement with reference .to the of President; modification of dutie·s; altering idea of reciprocal trade would be back in legislation before ~ you: ' import restrictions: balance, in part, at least. . · "The proposed legislation takes into con-. "For the purpose of expanding foreign If it is necessary to have high tariffs to sideration the Nation's experience under the markets for the products of the United protect our ·home industries, then I hope Trade Agreements Act, the new conditions States (as a means of assisting in establish­ this great committee will make some pro-· arising since its enactment, and the need ing and maintaining a better relationship vision :for those tariffs; if, adopting the for a sound, reciprocal trade program bene­ among ·va:rious branches o:f American agri­ philosophy of more recent times, import ficial to our own economy and in support o! CUlture, industry, mining, and commerce) by quotas are to be used, then I hope this com­ our foreign economic policy." regulating the admission of foreign goods mittee will recommend. impocy quotas. · I wonder if the distinguished Secretary into the . Unit:ed. States in accordance with Does this country adhere to the GATT ianecr t'o take 'into consideration the indus­ the characteristics and ·needs o:f various strictly despite the departures of the less tries I have mentioned above, which are in branches of American production ·. so that conscientious participants to that agree- trouble, the tunaftsh industry and many foreign markets will be made available to 5174 CONGRESSIONAL RECORD ~- HOUSE March .24;

those branches of American production editori~l was inserted in the RE;CORD by away from the mmmg industry and give which require and are capable of develop~ the gentleman from Michigan [Mr. control of this ta the Department of Agrl· ing such outlets by affording corresponding HOFFMAN] on March 20, 1958. culture. - This is further demonstration of market opportunities for foreign products SENATOR NEUBERGER REPLIES Mr.- Bristol's irresponsible use of wild charges in the United States, ,the President, when• and scare language. What I have proposed ever he finds as a fact that any existing du•. (By Senator RICHARD NEUBERGER) is that, in national forests, mining patents ties or other import restrictions of the (When we asked Representative Fay Bris~ should convey title to mineral deposits and United States or any foreign country are un~ tal to write a guest editorial about the Al ~ull ri?hts necessary to mining operations, duly burdening and restricting the foreign Sarena case, we rather expected that his mcludmg the use of timber, but not title trade of tlie United States and that the pur· offering would pring a reply. It was not to the surface and timber insofar as not pose above declared will be promoted by the long delayed. Senator RicHARD NEUBERGER actually needed for mining.- This is already means hereinafter specified, is authorized telephoned us from Washington and asked the l.aw on eight national forests, including from time to time"- · equal space and prominence to answer some Mount Hood, and in no way interferes with This section gives the authority to the of the charges made by Bristol. We were. · mining. President-a wide latitude, since expanded happy to grant the request, in· view of a Under the~e laws, and my bill, a mining by the 1949 act, GATT, and the acts of 1953, long-standing policy of always providing firm can still obtain virtually free of charge and 1955. · space for both sides of controversial issues.) · the minerals in national forests, and it is The Dorn bill cioes not do away with the I appreciate your wlllingness to grant me free to cut timber for use in pit props, Tariff Commission, as so~e hav,e reported. space in which to reply to the attack upon flumes, or cabins. But it could no longer It does change the name, calls for increase me voiced in your editorial column of convert the timb~r and other surface re~ in the number and provides for removal only March 3 by State Representative Fay Bristol. sources, unrelated to the minerals, to com­ by Congress. Other provisions provide for Thank you very much. · mercial gain by sale, as has happene(l on the and outline the duties of 1;he Board. . At _the outset, let me say that the true Al Sarena patents. This is what Mr. Bristol .~ Section 463 of the Dorn bill is significant. weakness of ·Mr. Bristol's arguments, and his attacks so intemperately. I wonder what · It provides for bi_lateral agreements, in keep- _ fatal lack of objectivity, are demonstrated by Oregon- lumbermen, who mus-t pa.y high 1ng with the original concept of reciprocal his vicious charge that the mother of the Al stumpage prices for their Federal timber trade. Before the President can enter ne~ Sarena operators died of a heart attack from the national forests, are to think of gotiations he must give 120 days' notice in order that afl'ected or· interested,part-ies may caused by tension during the hearing called Mr. Bristol's insistence that others should have a hearing. It provides for advisory by NEUBERGER. I know ·nothing of the cir- continue to obtain their trees for nothing views from .agriculture,· industry, and labor. cumstances of the death of this lady, who to from. the United States taxpayers, as the my knowledge never had any contact with frostmg on a patent obtained for the osten~ We believe. ~uch a provision is necessary and practic_al in order to meet the competition the Congressional hearings on Al Sarena, and sible purpose of operating a mine? on today's world markets. of course, I profoundly sympathize with her Lumber is the basis for much of Oregon's Section 366 hits at the weakness in the. family. But I think the misrepresentations economy. Josephine County will revive eco· escape clause of existing ' legislation. It with which the McDonald brothers, and their nomically only if lumber revives. ·Yet lum­ gives the Board power of determination as political spokesmen such as Mr. Bristol, have berlll:e:h enjoy rio such privileges as mining been willing to exploit her memory speak people demand for themselves in the na­ to the peril point, before the situation be~ comes critical. It ls the· belief of the pro­ for t~emselves in showing the level at which ·tional forests. When a lumberman in ponents of this legislation that this pro~ tl:).ese men seek to debate the question. Grants Pass or elsewhere pays a high price vis~OJ?- may prevent damaging invasions such As a matter of fact; to keep the record for national forest stumpage ·he receives no as many of our industries hiwe suffered, and straight, I did not call the hearings in the right to any minerals or oil that may be dis­ with resulting unemployment of which some first place. The question of the Al Sarena covered under the surface of the timberland. of us are acutely_aware. patents came before the Congressional com~ Yet mining operators, who receive ·fre.e of Section 370, related to section 366, pro­ mittees .in the course of the extensive and charge the la:nd where·minerals might exist, vides that tl].e findings of the Board, under v~luable review of Federal timber .sale poll~ seem to think they have an inalienable right provisions of ·the escape clause, shall, where c1es that was initiated by the two chair~ to receive free of charge-and to log com· recommending withdrawal or modification of men of subcommittees of the Seriate Interior mercially~the trees growing on such land. the concession previously granted, become. and House Government Operations Commit~ When the present mining laws were en­ manda~ory and in effect unless the Congress tees, respectively, namely, Senator JAMES E. ac~~d, in the last century, the public lands shall disapprove within 90 days. MuRRAY, of Montana, and Representative and resources were so vast that there was The're are other aspects of this legislation EARL CHUDOFF, of Pennsylvania. As a mem-" little point in protecting the surface re~ I would like to discuss, had I time. I feel, ber of the Senate subcommittee, I partici~ ,sources in granting mining patents. But however, that the experienced members of pated in these hearings . and also in . the Al . can this policy still be consistent. with the this committee will go into every detail, in Sarena hearings held jointly by these com~ public interest today, when sustained tim- an e!:!deavor to give us some relief. I be~ mittees. · ber . yields, and. wa·tershed management in .. lieve some change in our approach to the I .do not intend to impose on your gener- the national forests have become of vital problem of reciprocal trade is necessary. I osity by, reviewing again the joint findings importance to many communities and whole belieye the Darn, l;iill will solve many prob­ of the two subcommittees with respect to States and regions? I am convinced a new . lems, will help 'o relieve unemployment, Al Sarena. In brief, they found that the balance of interests is needed, and that is and will in large m~asure prevent debacles solicitor of the Department of the Interior, why I have introduced my bill to preserve such as have existed· in the plywood and under Secretary Douglas McKay, had granted timber and _other surf~ce resource.s in grant-· tunafish industries, and' which overshadows the Al .Sarena mining patents in the Rogue ing mineral patents in national forests. the textile industry toqay. River National Forest by a , special, un- precedented procedure that completely LETTER TO THE EDITOR short circuited the United States Forest Serv~ · ice, which had repeatedly protested the pat­ . If you want to know what actually hap~ ent applications. Thus the national forest pened in the Al Sarena case you cannot find , AI Sarena.....:...Why Legislation To Prevent timber standing on the claims went ·to the out ,by reading Fay Bristol's guest· editorial AI Sarena operators along with the "mining" in the Courier, March 3, 1958, where the truth Another ·Such Instance Has Been In­ about Al Sarena is not told. patents in Febr~ary 1954, without even prior troduced notice to the Forest service · of this final · - Because :t was accused of fraud and as­ decision. · sociated with theft, deceit, and scandal, you will understand my w~sh to comment in your EXTENSION OF REMARKS , I pu~ mining in quotes because in the 4 years since the patents issued, there · has· _columns on, Mr. ~ristol ~ s fant8tstic omissions OF and inaccuracies. been no substantial mining activity on He ignores completely the main point of them. But nearly 3 million board feet of the AI Sarena case and tries to make it ap~ HON. CHARLES 0. PORTER lumber have been cut. This timber was ob· ·· OF OREGON pear that those ·of us · who protested were tained by Al Sarena with the patents, at no fighting industrial deyelopment in· Oregon. IN THE HOUSE OF REPRESENTATIVES extra cost. What nonsense. 1!fonday, March 24, 1958 Mr. Bristol made much of the fact that the The scandal of Al Sarena lay tn the pro­ McDonalds had invested $200,000 in their cedural irregularities of Interior Department Mr. PORTER. Mr. Speaker, ·under search for minerals. Is it his position that Solicitor Davis who, acting for McKay, per~ the leave to extend :r;ny remarks in tpe public. timl;Jer,, belonging to the people as a_ mitted the introduction of new evidence at RECORD, I include an editorial written by whole, should be given as a consolation prize· the appeal level. He never allowed the Forest to people whose mining ventures fail to pan Service or the Bureau of Land Management, Senator RICHARD NEUBERGER and a let­ out? I know of no such solace for people ter to the editor written by me. Both agencies which had repeatedly opposed the who invest unprofitably in farming, saw­ patents on the evidence before them, to see appeared in the Grants Pass, Oreg., milling operations or running a · small res· the· new evidence or to be heard at all. Courier on Friday, March 14, 1958. They taurant or store. What would Mr. Bristol think if the Oregon speak for themselves and are in reply Mr. . Bristo~ charged that NEUBERGER has· Supreme Court decided a . case on the basis to an editorial in the same paper, which now introduced a bill to take property rights of evidence that had ·never been before the 1958 CONGRESSIONAL RECORD- HOUSE 5175 circuit court and without allowing it to be proved and expanded manufacturing of time have run out for many, and for tested according to our adversary system? and marketing operations. thousands more relief must come quickly One of Secretary Seaton's first acts after taking over from McKay was to correct this The year 1957 resulted in a gross na· if it is to be helpful. sorry situation. I checked up on this when tional product of $434.4 billion-the I must report to you that the hearings I first came to Washington last year and am highest ever achieved by this or any na- held by the Ways and Means Committee satisfied that another AI Sarena cannot tion. But, underneath · those large demonstrated one fact in this connection happen. figures there lurk ominous signs for the which is often lost sight of. That is that I never criticized the McDonalds. I did future. Indeed, some forces have al- one of the greatest problems faced by criticize McKay and Ellsworth for ignoring ready slowed down our economic growth such business today is its inability to or defending unfair procedures which were in one segment of our economy. I am grow and expand in keeping with the used to give away (and the words apply exactly) valuable timber belonging to all the referring to that segment commonly re- expansion that has taken place in our people. ferred to as small and medium-sized economy. Witness after witness ap­ Along with everyone else in Oregon I want business. It is true that we cannot ex- peared before us stating that greater year round steady jobs and diversified in­ pect in a growing economy that a.Il working capital and more expansion dustry. Mr. Bristol fails to demonstrate branches would grow at the same rate, capital were the two greatest needs of their relevance · to the AI Sarena case. I yet when these differences are signifi- small and medium business. Sales and can only conclude that he would have pre­ cant, a close examination is indicated. production have gone up for many such ferred that the procedures, speedily cor­ In the Small Business Act of 1953, the businesses and ·so have their costs of ' rected by Mr. Seaton, be left as they were. Mr. Bristol charges · me with fraud. I Congress authorized the establishment doing business. Replacing wornout have committed no fraud on anyone. I ad­ of the Small Business Administration, equipment, construction improvements, . mit, as I admitted publicly when it first the purpose of which was to assist small- and increase in working capital s:~m to came to my attention in 1956, that some of business enterprises to grow and prosper. be the basic need. the pictures I had taken for Drew Pearson of America has long been recognized as It is well to keep constantly remind· ' the AI Sarena area did show cut-over areas the land of opportunity. This act re- ing ourselves that small- and medium­ which were not part of the Al Sarena log­ affirms the determination of the Con- sized business needs to expand in order ging operation. Rogue National Forest of­ gress that the door of opportunity shall to survive in a growing economy. I men­ ficials assured me the error was hard to avoid. ' · remain open to those with foresight and tion this very important fact because it Who was deceived about what? Rogue enterprise. Pursuant to the provisions is a key to the proper adjustment in National Forest timber was cut. It was of the Small Business Act, the Small taxes whi-ch these businesses so desper.. valuable timber. These were the facts il­ Business Administrator in the ninth ately need. lustrated by the pictures and admitted by semiannual report dated February 18, We are all aware, I am sure, that most everyone. Nobody was misled. 1958, reported that the most prominent small- and medium-sized concerns are I have introduced in the House of Repre­ problem facing small business meri · unable to secure needed capital in the sentatives the identical bill of Se'nator NEu­ throughout the country was the impact open market, as their larger competitors BERGER and others introduced in the Senate, a bill I have been interested in since I came of taxes which inakes it difficult for some can do. They are very often forced to to Congress. It provides for separation of small businesses to accumulate working rely on bank loans for their needs. And the surface and sub-surface rights, which capital or capital for expansion. a grea~ many such firms have already means that the timber (except timber Elsewhere in the report, the adminis- . borrowed all they can and should from needed in the mining operation) will not trator indicates that business failures banks and other commercial lending iii­ pass along with the mineral rights when a in 1957 amounted to 13,739, or an 8 per- stitutions. Furthermore, many of them claim is patented. cent increase over 1956. It is interesting need long-term loans for new construe­ In some cases a part of. the mining in­ to note that the aimual bankruptcy rate tion or equipment for which banks can­ dustry deserves a subsidy but the occasion and the amount of a subsidy should not for 1957 was 57 per 10,000 businesses com- not supply the funds. In addition, there depend on whether or not merchantable pared with 14 per 10,000 businesses in is a limit to the amounts oi money which timber is growing on the claim. · 1947. Indeed, each year since 1951 has a small business should borrow. Right I hardly expected that the Al Sarena case seen an increase in the failure rate, ex· now their greatest need is for equity would be an issue this year, the Interior cept 1955, which was the same as 1954. capital, and the chief source of this is Department having corrected the faulty pro­ Since the beginning of this session of retained earnings. cedures giving rise to our objections. How­ the Congress, the Ways and Means Com- Before I describe the tax adjustment ever, I shall oblige Mr. Bristol or anyone mittee, of which I have the honor to be which seems to me to be best suited to else who claims to know the truth and a member, has heard ·hundreds of wit. the needs · of small and medium-sized misses the mark so far. The issue is important, especially for Ore­ nesses discuss general economic condi- business today, I should like to say a few gon where our economic future largely de­ tions and the influence of taxation on words about general tax reduction. The pends on the responsible management of our the operation of our economy. Promi- major point I wish to make in this con­ great federally owned resources, forest and nent among these were men who operate nection is that regardless of whether or mineral alike. small· businesses and the representatives not this Congress approves general tax · CHARLES 0. PORTER, of small business associations. relief, small and medium-sized busi- Member oj Cong1·ess. During these hearings which I ap- nesses require individual attention and proached with an open mind, the other action. The relative position of such members of the committee and I have businesses within our economy needs to given careful attention to the testimony be improved. General tax relief will Tax Adjustment Suited to Small- and presented. Since then, I have given con- help very little in this regard, although siderable thought and study to this prob· it may be necessary for other reasons. Medium-Sized Business lem. In my opinion, the hearings dem- Small and medium-sized business re­ onstrated, beyond the shadow of a doubt, quires individual attention for many EXTENSION OF REMARKS small and medium-sized businesses need reasons. One of these is that the pres­ OF a tax adjustment-not in their own in- ent heavy tax burden falls more heavily terests alone, but in the interest of the on such businesses than it does on much HON. FRANK IKARD general public as well. All of us recog. larger enterprises. This is not to say OF TEXAS nize the desirability as well as the need that taxes are a burden only for smaller IN THE HOUSE OF REPRESENTATIVES of preserving economic opportunity for firms. But the evidence presented be­ such businesses to grow and prosper in fore our committee at its recent hearings Monday, March 24, 1958 our economy. There are many forces by Dr. Spencer M. Smith and other wit­ Mr. IKARD. Mr. Speaker, the need now affecting our economy which make nesses indicates quite clearly that small for an ever-expanding economy has hazardous any prediction concerning the and medium-sized business is less able been expounded for many years. With future. to protect itself from the crippling ef- the continuous increase in our popula­ Many voices have been raised that we fects of high taxes than are larger com· tion and the desire for higher and higher should approach tax revisions with a panies. standards of living, the business com­ spirit of caution. Many advise a wait· This is not hard to see once you think munity has responded by investing vast and-see policy. But the holdout power about the matter. It is clear that Fed· sums in research facilities and in im- of small business is limited. The sands eral income taxes applied to business / 5176 CONGRESSIONAL· RECORD- HOUSE March 24 constitutes a. drain, and very often a on the very small· eoncerns. The wit­ eeivable attributable to sales to customers se_rious draii:l, on earnings. The more a nesses _pointed out that, while the large in the ordinary course of the trade or business pays to the Government in taxes. c:orporations have access to capital business. the less it has available tQ plow back into through large, well-organized facilities, My bill provides no artificial or arbi­ its operation. As a consequence, it has to the small business concern must rely trary definition of small business. . All seek more money from other sources. upon what it can ·retain from its earnings business, large and small, would be bene­ We know such sow·ces of additional capi... for investment in plant and equipment fited, with the smaller concerns receiving tal available to small and medium-sized to meet the demands for survival, ex­ the relatively greater help. businesses are severely lil:nited because pansion and growth. Also of interest during this current of their size. Businesses in this eate.. Another matter of some concern is the economic downturn is the provision that gory cannot generally acquire additional high rate of mergers and acquisitions no tax ·saving · accrues except through equity capital on the open. market taking place. Many small and medium­ business reinvestment. Now is the time through the issuance of stock. By and sized businessmen are selling out to for confidence in the future, and Congres­ large they cannot obtain long-term larger concerns. If this trend continues sional approval of the principles em­ loans from such institutions as insurance for many more years, it is bound to pro­ bodie<;l in this legislation will generate companies. After studying this prob­ duce growing competitive problems for renewed ·business energy and expansion. lem, it is clear to me that small and small independent concerns. The stimulation thus provided will medium-sized businesses ·are pinched Estate taxes play a major role in mo­ broaden the tax base for increased reve­ very hard by high taxes because 'they de- tivating mergers and acquisitions. Many nue in future years. . pend in large measure on retained earn• independent businesses are owned in But this bill is not designed for the ings for current operating needs as well iarge part by one or a few individuals. purpose of reversing the current slow­ as for expansion. If Congress is to deal Most of their assets are tied up in their down in economic activity. Its first pur­ with this matter · adequately, it has to business. On their death, the Treasury pose is to preserve small- and medium­ 'I take .this il:nportant fact· into account. Department pla,ces a valuation on all the sized businesses and permit them to grow In our study of the problems of small assets in their estates. This tax falls and prosper out of retained, after-tax business, we have the benefit of the due 15 months after date of death, and earnings. May I emphasize once more, hearings conducted by the Select Com­ its payment frequently requires the li­ small and medium-sized businesses had mittee on Small Business of the United quidation or finanCial impairment of the great difiiculty in holding their own long States Senate. This committee, under business in order to raise the funds with before the current slowdown. Indeed; the chairmanship of Senator SPARKMAN, which to pay the estate tax. their difficulty has contributed signifi .. conducted hearings in· 14 cities through­ So it is that in too many cases the cantly to the unhappy trend we now out the country at which 293 business­ individually or family owned business is witness. men appeared personally before the placed in a dangerous position in the Another provision of my bill allows committee, and another 163 offered writ­ event of the death of its major owner. the representative of an estate having ten testimony. The Senate committee In anticipation of sw;h a family catas­ 50 percent or more of its gross valuation purpose was· to determine how Federal trophe, businessmen are encouraged . by in stock or investments in one or more ta:x:ation affected the small business their tax advisers·to sell out while they closely held business enterprises to elect segment of the economy. can ·to protect their families and loved to make installment payments on the · Most of the witnesses stateq the great­ ones, as well as to make the jobs of estate tax due over a period not to ex­ est problem was the inability to keep their employees more secure. ceed 1-0 years. ; · . . up with an expanded market because of Certainly the . least that Congress A third provision would allow a per­ their inability to obtain the necessary should do is to stretch the payment of son to purchase tax-anticipation certifi­ funds for plant modernization, and in­ the estate tax over a period of 10 years. cates up to $100,000 which, on his death, ventory, and credit expansion. In dis­ Reasonable interest could be charged the would be receivable in payment of the cussing their findings, the Senate com­ owners of these closely held business en­ estate tax and would be deductible from mittee reported: terprises. Another helpful step Congress the value of the gross estate for tax Your committee, after careful examination may consider .is one permitting business purposes. of the hearing record and study of various owners to purchase tax-anticipation cer­ These are the principal provisions of proposals advanced to provide · businesses tificates. These certificates would carry the bill which I have introduced. It is . with funds for. necessary development, finds no interest but would be excluded from similar to H. R. 5735, introduced by my that an allowance for profits reinvested in the ·taxable net estate. This is a fair esteemed colleague on the Ways and business will best accomplish the desired arrangement as the Government would Means Committee, Mr. CuRTis of Mis­ end by way of a tax adjustment. have the use of the proceeds of such souri. The principal difference between In addition, the" ".committee reported: certificates without paying interest. Mr. CURTis' bill and minejs that, in my Most of the witnesses'·testified in favor of May I point out that both the Senate bill. _open accounts receivable would be a reinvestment allowance, and there was no and the House Committees on Small added to the aggregate additional busi­ substantial opposition. This unanimity of Business have come to the same con­ ness investment for the purpose of figur .. thought and opinion was very impressive to clusion that the Government's estate tax ing the tax adjustment. the cbmmittee. ' provisions are encouraging mergers at an Th,e reason I have added this provision PUrsuant to ;. these findings, several alarming rate. Members of both com­ to the bill is that it seenis in harmony members of the Senate . Smail Business mittees have included similar. provisions with the principle of allowing increased Committee joined the chairman in sub­ for easing this burden in their proposals inventories to be considered as a part mitting s. 3194 which would amend the to aid small business. of additional business investment. Internal Revenue Code providing the tax Consideration of all these factors has Many small businesses could not increase adjustment for additional investment in prompted me some time ago to introduce inventories without, at the same time, in­ business. a bill which would allow all businesses creasing the credit they must extend to May I also call to your attention the United States Senate. Michigan was one of Was." ( Caxton Printers, Ltd., Caldwell, · (4) There should be an effective prohibi· the more bitterly fought contests in 1954, Idaho.) - tion against union political actions; and but similar and equally large figures are What's being done ab,out it? (5) Mass violence should be subject to available for Illinois (Senator DouGLAs), Nothing. Nothing at all. Federal law. • Minnesota (Senator HUMPHREY), and Ten- Businessmen in general think a job is be­ These all are sound proposals. nessee (Senator KEFAUVER), etc. ing done, but by whom? My visitor didn't The trouble is tha.t our industrial leaders What would it all add up to if we had know 'the simplest facts regarding the legis· do not realize that while the businessmen all the available reports analyzed and tab­ lative situation. · He was completely un­ were electing a President in 1956, the AFL- . ulated, plus the case histories we have, for aware of the progress that had been made by CIO was electing a Congress. The Congress . a few contests? the labor leaders in taking over the Con­ enacts all laws, not the President. The If the unions spent only half as much In gress and the Government. Nor was he President may propose. The Congress can the 30 senatoriaf contests in 1956 as they aware that business hadn't even tried to act or not, as it sees fit. · spent in Michigan in 1954, it would amount meet the threat. I had to tell my visitor that his proposals to $150 million. Now there has to be a reason for such ignorance and failure by organized business. hadn't a ghost of a chance in this Congress. Or, to estimate on another basis: And there is a reason. They will have even less chance in the pext. Total union income, per year, is $620 mil- He was startled, but he was startled too late. lion, exclusive of welfare and pension fund The business associations of this coun­ try are simply not telling their members, and In the 1956 elections organized labor was payments. If we a-SSume that 10 percent the public generally, the truth. Business is active in 300 of the 43~ Congressional District is spent for political purposes (a recent study not really aware of its danger. elections-and were successful-that means of union publications shows that more than The average businessman is "milk fed" by that their man got elected-in more than sixty percent of the space is devoted to the representatives of business in Washing­ 175. · political and legislative news), we would ton, including the trade associations, the And when I say the unions were active, I arrive at a figure of $62 million for political Washington offices of big corporations, and mean just that. · · · · purposes annually, or a total of $124 million Washington lawyers who have business cli­ In addition to direct money contributions, for each biannual election of Members of ents. These men who work for business in labor-supported candidates received incalcu- the House and Senate. the Nation's Capital must, I suppose, justify lable numbers of free campaign workers, .It seems ut.terly fantastic. being in business themselves, but what a union treasuries paid for untold hours of l;s it any wonder tha~ few pi~ce~ of legis- disservice they are rendering business by radio and TV time, "friends" of the candidate lation pass contrary to the recommendations keeping their members and clients out of inserted expensive full-page ads in the local .or the lea~ers of organized labor? politics! newspapers, wives of union men manned tele­ Whatever the reason, the Washington rep­ phone brigades contacting voters, teen-age 1 Statistics by courtesy of Association for ·resentatives of business have created the il­ sons and daughters undertook -baby-sitting Industrial Mobilization, Washington, D. c. lusion that this Congress, or the next, will 5178 CONGRESSIONAL RECORD~ HOUSE March 24 do something-or ma-ybe the next President what they can't do. They must teU them .which overlook .the fact-that it is·the asso­ will-or somebody, other than themselves, what they can do if they only wanted to. ciations themselves who must act. will do something to solve their problems. · It is our only hope. Organized labor Ia · We are told to depend upon individual Even some of the best informed business­ subject to exactly the same restrictions businessmen for political action. This is to men in their own fields ln this country still ·against political action aa business assocLo ·expeet a miracle. · cling to this illusion-that this Congress, as ations, yet look what they have done in We know that many businessmen who want badly constituted as we know it to be, might building a mighty political machine within to do something are afraid for their own be persuaded by means of lobbying . and .the last 10 years. In fact, organized labor safety and for the future of their businees. committee hearings, to do what it should. has blazed the trail to show business asso­ We are told that businessmen who assert They are wrong; a "SOUnd tax program is im· ciations how political activities can .be ·car­ themselves against _- labor's encroachments possible; so is any reversal of out and out -ried on without violating existing Federal have to fight the many subversive elements socialist measures at home: we can't even ..statutes. who :qave made labor the beneficiary. There reduce aid to out and out Socialist govern· · Business is the only segment of our are not many companies with the courage ments abroad, etc. society-besides labor-that has adequate of Kohler or Perfect Circle. We cannot hope Business has failed to protect itself, and in organizations to do the job that must be for individual businessmen to take on the its failure, .has failed to protect. the country done. If the associations continue to rely political action machine of organized labor. ·from the mad rush toward more and more .on resolutions (as to what somebody else It is only the business associations who are socialism which .we are now seeing in all our should do), educational programs, publicity, strong enough to do so. Government policies. There is .not one re­ going througlr the motions of lobbying, Individual businessmen cannot function versal in sight. conventions, Washington representations of w~thout an organization, without leadership, The average businessman must belong to all sorts, letterwriting campaigns to the Without funds. Unorganized individuals literally dozens of different trade associa· few remaining Members of Congress who cannot get political results-pa_r'ticularly tions, chambers of commerce, conservative agree with them, or to the many Mem­ when their own associations broadcast opti­ organizations. Official Government statis­ bers of Congress who will never .agree, we mistic Washington reports-, telling of all the tics tell us that there are 1,700 national trade nJ.ight as well resign ourselves to a continu­ lobbying.activities, the programs, the resolu­ associations, 600 regional groups, 2,000 State ance of life under a labor-Socialist govern­ tions, and meetings-the educational cam· associations; to this we must add 7,500 local ment for a long time to come. It is here paigns, and all the other ineffective activities associations, 5,000 chambers of commerce, today. It is no longer just a threat. .bY which most business associations justify 10,000 luncheon and service clubs, and 300 We cannot rely on the political parties to their continued existence in, Washington. -management organizations, all adding up to stop labor's political power. By their very For them to confess legislative and politi­ almost 30,000 diff.e:r:ent organizations. nature, they must court that power. Right cal impotence would weaken the intense . That is impressive. With so many organi• now labor can muster 'more votes on most competition for bigger and better member­ zations, it would seem that the bu.sinessman critical issues than either political party. ships. Yet until they do confess their im­ would at least be informed of some of the What can be done? potence these associations in and of them­ facts of our· political life. It would seem · Right no_w in each Congressional District a selves constitute the biggest obstacle to ef­ that he should be so frightened or angry­ half dozen political leaders in each party are fective political action. They hold out false or patriotic enough to have long since taken promises that keep businessmen from know­ deciding who shall run for Congress. An ing what should be done. the necessary steps to protect his business equ~l number of the leading businessmen, if and his family. 'they really cared and represented business, Here is what the individual businessman should do: But he hasn't. Like Rip Van Winkle~e could exert a strong infiuence on this selec­ has been dead.asleep for 20 years-all through tion and who gets elected. At present busi­ · 1. Demand that local business associat'lons the revolution. When he awakens, he'll find ness is so uninformed that few businessmen become active in political affairs immedi­ like Rip did a new sign over the door of the know or care about the next Congress. As ately. This means organizing to ring door­ inn he used to frequent. It will be the sym­ a result, candidates committed to the labor­ bells, to establish telephone brigades, to col­ bol of an entirely new Government that won Socialist philosophy of Government are being lect political contributions. It means regis­ the war he didn't even know had been going designated for nomination. They will be tration and voting drives. lt means provid­ pn. Will it be the clasped hands of the elected to Congress to get special favors for ing opportunities for_candidates to get their ~FL-CIO over America? the special groups who are organized to put views across. A recent issue of the NAM News devotes a them there. Oddly enough, these groups are 2. Demand that State and National asso­ third of its space to the latest-the very small minority groups, including labor it­ ciations, chambers of commerce, and other latest-resolutions passed by the manufac­ self. Ten percent of the vote organized is conservative organizations to which you turers' board of directors in its very latest more than enough to hold the balance of undoubtedly belong begin to produce the meeting at Boca Raton, Fla. Among other power in most districts and win the elec­ kind of "educationar• political material your things, they propose that the Congress cut tions. The -others vote along traditiona1. _local organizations need.. . the Eisenhower budget by $4.5 billion. Why, lines for one party or the other. Get the facts. Find out what the repre­ believe it or not, that sounds like the same Then after election, business, through its sentatives in the House and Senate are doing, resolution that they have been passing for thousands of organizations will spend mil­ how they are voting, whom they represent, years and years. The budget continues to lions upon millions to present the validity who put them there, who paid for their increase. of its ideas to Members of Congress already campaign, and what the real effect of union The United States Chamber of Commerce pledged to be against them. Does this make political action has been. 0! utmost im­ has just finished a series of what it calls Air­ sense? portance is a detailed comparison, issue by cades. Thousands and thousands of busi­ For example, millions have been spent issue, between individual voting records and nessmen all over the country will gather in within recent months to promote a sow1d the stated policies of your business associa­ local meetings to be told what they should and crying necessity for revision of the tax tions. think, what they should resolve, and then­ laws. It's a good program, but it will never Here are some of the things individual send a copy to Congress. Although I was told pass this Congress. The horse is already businessmen should not do: personally by the president of that great stolen-the lock, the .barn door, and the barn 1. Don't be stopped by any of the usual organization that "at least one reference'' too, for that matter. arguments that P9li1;ical a.ctivity by business would be made to the need for political action The business tax program was doomed associations is against the law, or not in the first Aircade circus in New York managed before it started. Now the labor leaders will accord with tax regulations. Most activities ride the crest of the wave for tax reductions which appear to be political are not against to avoid the dirty word "politics" altogether. any Federal law whatsoever. The Treasury By way of explanation I was told that "we and get it where they want it: in the lower income brackets, and the deadly Marxian Department does not even have a regulation didn't and couldn't ask the business organi­ progression in our tax system will be in­ on the subject of political activity by busi- zation to get into politics. • • •" tensified and continued. ne.ss associations. . Yet without political action their resolu­ Our business organization genius must be 2. Don't rush out and start another organi· tions will go the way nearly all such resolu­ put to work-the same genius that has or­ zation until you are convinced that the ones tions have gone for years. ganized great industry and provided the to which you already belong ·will not do a If only a small portion of the money now capital and tools of production on which political job. being spent by and for these thousands of labor itself depends. Business associations If you are asked for increased dues for business associations could be apent pre­ must now do the same to maintain law and a political education program, be certain cisely as the unions spend theirs, and if their order under which we all live and work. :that it is what needs doing and that none of personnel might be employed in downright the usual association activities can be cur­ The conservatives ln Congress will not be tailed to provide the money. political action to restore sound government, satisfied any longer With programs of the then we might begin to see a few rays of It the businessmen of America who al­ mammoth trade associations, chambers of !eady have and are paying for tens of thou­ hope. Business associations must stop look­ commerce a·nd other business ~rganiza tions sands of associations, chambers of commerce, ing for excuses to stay out of politics. designed to impress upon their members etc., won't see to it that men are elected Their legal counsels must stop telling them the necessity for individual action, but committed to restoring constitutional gov- 1958 CONGRESSIONAL RECORD-SENATE 5179 ernment, w1w else will? If they do not, the who have already done thls in the rest of the the way !Qr c_ommunism far more effectively labor bosses will continue to set aside the world. than the Communists themselves." constitutional limitations on govern,ment As was stated .by Donald R. Richberg, in _ B1,1s·iness organizations and associations · and substitute the unlimtted powers of the his latest study of union power entitled must provide the leadership, the money, and Socialist state instead. Our labor bosses are "Labor Union Monopoly," "labor'.s economic t;he manpower for. business political action. closely associated with the world labor bosses monopoly and political power are preparing And th~y must DO IT NOW.

President of the United States submit­ The P~ESIDENT pro tempore. With .. SENATE ting the nomination of Mendon Morrill, out objection, the President will be of New Jersey, to be United States dis­ notified forthwith. T UESDAY, MARCH 25, 1958 trict judge for the district of New Jersey,