January 28, 1975 EXTENSIONS OF REMARKS 1635 H. Res. 103. Resolution expressing the m.itted by the Secretary of the Interior, pur­ By Mr. CONTE: sense of the House that the U.S. Government suant to the provisions of the act of October H.R. 2279. A bill for the relief of Mrs. Louise should seek agreement with other members 19, 1973 (87 Stat. 466), providing for the G. Whalen; to the Committee on the Judi­ of the United Nations on prohibition of distribution of funds appropriated in satis­ ciary. weather modification activity as a weapon of faction of an award of the Indian Claims By Mr. HELSTOSKI: war; to the Committee on Foreign Affairs. Commission to the Cowlitz Tribe of Indians H.R. 2280. A bill for the relief of Mr. and By Mr. HENDERSON (for himself and in docket No. 218; to the Committee on In­ 1\:!rs. Luis (Maria) Echavarria; to the Com­ Mr. DER~SKI) : terior and Insular Affairs. mittee on the Judiciary. H. Res. 104. Resolution to provide funds By Mr. PEYSER (for himself, Mr. By Mr. McCLOSKEY: for the expenses of the investigation and WmTH, and Mr. OTTINGER): H.R. 2281. A bill for the relief of Kim Ung study authorized by House Rule XI; to the H. Res. 108. Resolution expressing the sense Nyu; to the Committee on the Judiciary. Committee on House Administration. of the House that the Secretary of Agriculture H.R. 2282. A bill for the relief of Lee-Daniel By Mrs. HOLT: should rescind the food stamp regulations Alexander; to the Committee on the Judici­ H. Res. 105. Resolution in support of con­ proposed on December 6, 1974; to the Com­ ary. tinued undiluted U.S. sovereignty and juris­ mittee on Agriculture. H.R. 2283. A bill for the relief of Kim­ diction over the U.S.-owned Canal Zone on Jenny Brooke; to the Committee on the the Isthmus of Panama; to the Committee Judiciary. on Foreign Affairs. H.R. 2284. A bill for the relief of Kim-John By Ms. HOLTZMAN (for herself, Ms. Bartholmew; to the Committee on the Judi­ ABZUG, Mr. BADILLO, Mr. BAUCUS, Mr. MEMORIALS ciary. BROWN of , Mr. CONYERS, Under clause 4 of rule XXII, By Mr. MURPHY of : Mr. DELLUMS, Mr. FORD Of Tennessee, 15. The SPEAKER presented a memorial H.R. 2285. A bill for the relief of Robert Mr. HARRINGTON, Mr. HAWKINS, Mr. DiFranco; to the Committee on the Judici­ HELSTOSKI, Mr. JENRETTE, Mr. KOCH, of the Senate of the Commonwealth of Mas­ ary. Mr. METCALFE, Mr. MITCHELL Of sachusetts, relative to the expulsion of Israel By Mr. VANDER VEEN: , Mr. RANGEL, Mr. RICH­ from the European section of UNESCO; to H.R. 2286. A bill for the relief of Concep­ MOND, Mr. ROSENTHAL, Mr. ROYBAL, the Committee on Foreign Affairs. cion Orozco DeRivas and Gloria Garcia; to Mr. SoLARZ, Mr. STARK, Mr. STOKES, the Committee on the Judiciary. Mr. WAXMAN, Mr. WEAVER and Mr. CHARLES H. WILSON of California) : H. Res. 106. Resolution directing the Pres­ PRIVATE BILLS AND ~ RESOLUTIONS PETITIONS, ETC. ident to provide the Committee on the Judi­ ciary of the House of Representatives certain Under clause 1 of rule XXII, private Under clause 1 of rule XXII, petitions information relating to certain activities of bills and resolutions were introduced and and papers were laid on the Clerk's desk the Central Intelligence Agency; to the Com­ severally referred as follows: and referred as follows: mittee on the Judiciary: By 1\!r. BRADEMAS: 16. The SPEAKER presented a. petition of By Mr. MEEDS: H.R. 2278. A bill for the relief of Mrs. Mary Herman Howlery, Menard, Til., relative to re­ H. Res. 107. Resolution that the House of Sexton (Mary Nuku): to the Committee on dress of grievances, which was referred to the Representatives disapproves the plan sub- the Judiciary. Committee on the Judiciary.

EXTENSIONS OF REMARKS

WORDS OF INSPIRA'T'ION IN TIMES she endured the pain of recalling that her feet. She is weathered by experience and OF TROUBLE sons and daughters had been stolen, beaten, withered by the heavy burden of being over­ chained and sold into a system so perverse worked, oppressed and ignored. But she's our that it challenged her understanding, she rock of ages, standing steadfast against the HON. CHARLES B. RANCEL knew nothing of the politico-economic ar­ tides of t1·ouble, the rancor of racism and the rangements of that day. Words such as mer­ bitter winds of benign neglect. OF NEW YORK cantllism and imperialism meant nothing to While she remembers us, she wonders now IN THE HOUSE OP REPRESENTATIVES her; but in her heart she knew that some­ whether we remember her. She taught us to thing had just made an attack upon the soul Monday, January 27, 1975 stick together, yet she saw the anti-black of her people. elected official, self-consuming, paranoid dis­ Mr. RANGEL. Mr. Speaker, the eco­ Although she was left behind, too old to be unity of a national black political conven­ nomic future of our country looks bleak. privy to the plunder, she felt the tremors tion in Littl€: Rock that fiddled around while During the recent months unemploy­ when that enslaved black humanity, which home wa..c;; burning. ment has climbed to 7 percent and is theretofore had thrived under the moon and She taught us to love one another, yet the stars of freedom, survived the middle pas­ spiraling incidence of black-on-black crime destined to go up before the end of the sage and was spewed onto the docks of year. The black unemployment rate is Jamestown, Virginia, to make cotton king makes her wail the words from Genesis, "the voice of your brother's blood is crying to you almost double the national figw·es, and and the king corrupt. from the ground." As we were defined as chattel, sold like a as seems to be the case during most eco­ She taught us to survive on little in a nomic setbacks, it is the poor and the horse, worked like a. mule, mated like cattle and treated like a dog, the spirit of that old land of plenty. Yet, now she stands in mute black that are suffering the most. woman presided over us. She saw us emanci­ amazement at an America where the thing However, even under the most trying pated into a system of freedom where every­ that is fed the best is infiation, and it is times we must continue to look toward body was free but us. She consoled us while partial to dark meat. the future with hope; we must look not we endured pellagra, boll weevil exploitation, Our rock of ages taught us that if we did only to ourselves but to each other for lynching, castration and racism so barbaric right, obeyed the law and loved the Lord strength, for in unity there is strength that its vestiges plague the oppressed an

_ I commend the Aurora Kiwan!s Club hospital services and supplies ~ · to .include of other countries. We're not in the business for its fine idea of honoring an outstand­ "clinical psychologists." of trying to provoke revolutions. .ing citizen and add my congratulations The services of clinical psychologists It is extremely unfortunate that the to Father Eye, an excellent choice to be­ have also been recognized in other Fed­ VOA is no longer servilig as a lifeline for come the first recipient of the award. eral health programs-or the health those living under communism. The aspects of these programs-such as the cause of freedom can only suffer. CHAMPUS-1970, CHAMPVA-1973, the Following is the text of the article from comprehensive manpower program reg­ the December 16. 1974. issue of Time: COVERAGE OF PSYCHOLOGISTS' ulations to Public Law 93-203-1974, and MUTED VOICE OF AMERICA SERVICES UNDER MEDICARE regulations for the WIN program-1974. One unexpected result of detente is a Clinical psychologists represent a sig­ (PART B) change in tone at the Voice of America. Un­ nificant, well-recognized, and critical til recently, as a matter of course, the Gov­ professional health manpower resource ernment radio network heard round the HON. JAMES C. CORMAN distributed throughout the Nation where world in 36 languages reported on opposi­ health services are needed and are being tion stirring within Communist countries. OF CALIFORNIA sought. Now Voice executives are trying to avoid IN THE HOUSE OF REPRESENTATIVES I in "provocative" stories. In the process, they hope that the near future we will have restricted VOA correspondents to the Tuesday, January 28, 1975 have a universal and comprehensive na­ point where many of the newsmen feel that Mr. CORMAN. Mr. Speaker, I am in­ tional health insurance program. In pre­ legitimate stories are being suppressed. Some troducing a bill for the purpose of paring for national health insurance, we editors and reporters in the radio's U.S.S.R. amending title XVIII of the Social Secu­ must begin to make maximum use of all division have grumbled about interference rity Act, part B, to provide for the cover­ qualified health providers. The pface to from the glavlit-the Russian term for of­ begin is by strengthening the health pro­ ficial censor. age of clinical psychologists' services un­ As an official outlet for the United States der the supplementary medical insurance vider resources available to the elderly Information Agency (USIA), Voice of Amer­ component of the medicare program. and disabled by providing coverage of ica, with 2,303 employees and an annual All qualified and competent health psychologists' services under medicare, as budget of $55 million, operates under statu­ professionals must be available to the I have proposed in this bill. I ask your tory authority. Its stated mission is to re­ elderly and disabled if they are to bene­ approval. port on the U.S. and American foreign policy and to "combat Communism." In practice, it fit fully from the medicare program. has wobbled between its dual roles as Gov­ Clinical psychologists represent a large ernment propagandist and conveyor of pool of well-qualified health service pro­ straight news. James Keogh, the former ex­ viders. Under current law, however, their VOICE OF AMERICA-A VICTIM OF ecutive editor of TIME who became USIA services are largely unavailable to medi­ Dlh'ENTE director in 1973, discarded the old Cold War care recipients. attitudes of his hard-line predecessor, Frank Many important procedures and new Shakespeare. Under Keogh, a skilled, sea­ developments in the provision of health soned newsman, VOA began finally to accept HON. JOHN M. ASHBROOK detente as a reality and to report even­ and mental health services represent OF OHIO handedly on the new warmth in U.S.-U.S.S.R. technological applications of research IN THE HOUSE OF REPRESENTATIVES relations. However, Keogh also tightened the and experimentation conducted by the policy reins on VOA correspondents. During profession of psychology. The private Tuesday, January 28, 1975 Watergate, he forbade any stories that were practice of psychology is governed by Mr. ASHBROOK. Mr. Speaker, the attributed to unnamed sources, thereby pre­ statute in 47 States and the District of Voice of America has become another venting VOA's broadcast of some important Columbia, with some 22,500 psychologists victim of detente. In the past the VOA revelations. Today, many experienced journalists at legally authorized by the States for prac­ served as a lifeline for those living under the VOA are bitterly disappointed, Keogh tice. Duly licensed clinical psychologists communism. Opposition stirring within and his deputy for the Soviet block, John providing health services in most States Communist countries was a major part of Shirley, they say, have allowed political con­ are subject to peer review, professional program broadcasting. siderations to mute the Voice. Among re­ standards and a code of ethics promul­ All this has changed, however, under cent examples they cite: gated and enforced by the Ame1ican the leadership of James Keogh, Director The program department planned a series Psychological Association as well as the of the U.S. Information Agency. Accord­ of ten-minute excerpts and summaries from ing to a recent story in Time magazine, Alexander Solzhenitsyn's Gulag Archipelago, various State associations. the nightmare account of Soviet repression, The 93d Congress gave substantial the VOA is now trying to avoid "provoca­ to counteract Moscow's propaganda. against consideration to, and recognition of, clin­ tive" stories. the book. USIA ordered the project canceled. ical psychologists as primary health This policy has been evident for some VOA's Munich bureau suggested a series on service providers. For the record, I ·months. In the April 3, 1974, CONGRES­ young workers in the Soviet Union and East­ would like to summarize the pertinent SIONAL REcoRD, for example, I expressed ern Europe. Washington turned the idea legislation enacted by the last Congress: my concern over the reluctance of the down, according to one VOA official, because First. Public Law 93-112, the Rehabili­ VOA to broadcast into the Soviet Union "if it had been honest and accurate, it would tation Act of 1973, recognized the serv­ extensive excerpts of Alexander Solzhen­ have been offensive to the governments in­ volved; it would have seemed gratuitous and ices of licensed psychologists for bot.h itsyn's book "Gulag Archipelago." Al­ ideologically polemical." assessment and/ or services for mental though the VOA program department A Voice correspondent, Lawrence Freund, disability. planned on doing a series of 10-minute preparing a story on the trial of a group of Second. Regulations implementing excerpts, the project was vetoed by the Croatians accused of separatism, noted that Public Law 93-222, the Health Mainte­ U.S. Information Agency. Yugoslav security was being stepped up nance Organization Development Act of Numerous incidents such as this have around President Tito's residence in Belgrade. 1973, explicitly enumerate "clinical psy­ led many to charge that political consid­ USIA killed the story as '

advance of the revolutionary and national ELDERLY '~FIXED INCOME"? sentatives to begin hearings immediately liberation movements and to achieve a shift TRAVESTY OF THE TRUTH on the legislation I have today in the ba1anee of forces in its favor. Con­ introduced. sequently, detente, in the U.S. meaning of the concept. only applies to certain areas of u .S.-Soviet relations, areas which are of HON. EDWIN B. FORSYTHE mutual benefit to both sides. Furthermore, OF NEW JERSEY REMARKS BY THE VICE and as the Soviet interpretation of 'peaceful IN THE HOUSE OF REPRESENTATIVES coexistence' makes explicit, this concept does PRESIDENT not extend to a similarity of interests in the Tuesday, January 28, 1975 preservation of international stability. Thus Mr. FORSYTHE. Mr. Speaker, Charles the global 'normalization• of international HON. HERMAN T. SCHNEEBELI DeGaulle once described old age as a OF relations and relaxation of tension ... simply shipwreck; a shipwreck of a once useful means that the U.S. must cease all attempts IN THE HOUSE OF REPRESENTATIVES to defend its interests or protect its life cast aside on the shoals of inactivity allies ..." by a society that has grown increasingly Tuesday, January 28, 1975 Economic instability is not the serious youth oriented. I cannot accept this defi­ Mr. SCHNEEBELI. Mr. Speaker, Vice problem to the Soviet Union and its nition. The pages of history and the President RocKEFELLER made some very satellites as it ls to us because they do not pages of our newspapers clearly trace responsible statements in a speech he have to consider the welfare of labor unions, the accomplishments and the active role the working class and the middle class, and made in Chicago before the National the people in general. The Soviet Union fully of our senior citizens. The society that Business Leadership Conference. The intends to take advantage of Western eco­ ignores the wisdom and experience of its contents and significance of this speech nomic difficulties; the Communist press in senior citizens is truly forfeiting a reflect a respect to the problems con­ Czechoslovakia has been writing gleefully of resource of independent thought and fronting us today and I am sure the rising prices and unemployment in the leadership. American public will benefit from reading United States (it has always described our But in one sense, Mr. DeGaulle might "severe unemployment" even at the time of this fine analysis of our contemporary have been distressingly accurate. Old problems: high employment). The Soviet Union will age can be a financial shipwreck. With do its best to increase our difficulties; the REMARKS OF THE VICE PRESIDENT oil crisis in the Middle East, the state of af­ the highest income earning years behind I am delighted and honored to bring you fairs in Greece and Turkey, guerrilla "libera­ them many senior citizens are now liv­ the greetings of the President of the United tion" wars, etc. Moscow is not interested in ing on fixed incomes guaranteed by so­ States. I just want to say that he wished he maintaining international stability; quite the cial security or by private pension plans. could be with you here tonight. I know that contrary. Communism can succeed only if But the term fixed income is a decep­ this organization, its objectives, its achieve­ the west fails. To some die-hard Communists tively cruel one; for there is no such ments are very close to his heart; and there­ it may seem that at long last Marxist-Lenin thing as a fixed income for senior citi­ fore, he sends his special greetings and asked ideology is about to bear fruit. Detente is to zens. Anyone who has witnessed there­ me to come to represent him. be one of the ways to achieve that end. You know, it's interesting, but in the brie.t lentless upward march of prices knows 200 years of the history of America, this Na­ that with each passing month, senior tion has achieved a standard of living un­ citizens receiving a so-called fixed in­ equalled in the history of man. This society THE SPIRIT OF POLAND WILL NEVER come are actually the recipients of a has the ability, through hard work, indi­ DIE steadily declining income. vidual initiative, private enterprise and by Too many senior citizens are floun­ operating within the framework of the Fed· dering on the shoals of financial dis­ eral system and the framework of laws, to HON. LEO C. ZEFERETTI aster. These Americans do not want wel­ provide maximum diversity within unity and OF NEW YORK to foster individual initiative and creativity. fare. They want help to keep up with the This is the gr.eat tradition of your orga­ IN THE HOUSE OP REPRESENTATIVES staggering burden of inflation. Mr. nization. It is a tradition that you are pass­ Tuesday, January 28, 1975 Speaker, I recognize these facts and, ing on to the new generation of Americans therefore, I am introducing today a sen­ through the Junior Achievement program. By Mr. ZEFERETTI. Mr. Speaker, few ior citizens legislative program which l introducing young Americans to the private nations have struggled more valiantly believe should be adopted immediately. enterprise system, you are helping to keep nor shed more blood for the right to exist My legislative package consists of seven alive the spark of individualism that has than Poland. bills which would: made possible this country's rise to great· After thriving in its own right as a ness. I can imagine no more vital purpose. Prevent the proposal to increase the I commend you for what you're doing, the power for centw·ies, Poland was at last cost of food stamps by 30 percent from dedication and devotion of those who have overwhelmed by armed conquerors. How­ going into effect, given of your time and resources to make ever the greatest triumphs of Polish cul­ Increase the social secw·ity earnings possible these opportunities for young peo­ ture and intellectuality emanated from limitation to $5,000, the present limit is ple all over the country to have those rare Polish people in exile from their native a meager $2,400, experiences. land. Simultaneously, the Polish people Exempt the first $5,000 of retirement And, I have to say, parenthetically, my rebelled again and again against the var­ inoome from Federal income taxes, great grandfather did the same thing for my ious conquerors who sought to ensla~- e grandfather. He got him started at seven Prevent veterans pensions from being years of age--of course, he lived on a farm­ them. reduced or taken away because of in­ and got him started raising turkeys and Rebellion followed rebellion. Repres­ creases in social security benefili levels, working for his neighbors. But, he lived those sion followed repression. Consistently . Provide a refundable property tax same fundamental principles you are in­ the conquerors sought to make Poles feel credit in the form of a $500 cash grant to culcating in this wonderful group of young they had to give up their ethnicity, re­ senior citizens earning less than $9,000 Americans who are here tonight, and who are ligion, and culture. Stubbornly, the Poles a year. Renters would credit 25 percent all over this country as bene!lciaries of your resisted all such efforts, and today they of their rental fee, efforts. are still successful in clinging to what is Our country is still a great co:.:ntry. But, Include prescription drugs under let's face it, we're in deep trouble today-in­ uniquely theirs, in terms of heritage. One medicare, flation, unemployment, the energy crisis. such rebellion occurred on this day in Cover regular physical examinations President Ford said it with blunt honesty to 1863. It was viciously repressed as subse­ under medicare, the Congress, and I quote, "The State of the quent rebellions have been. It is fitting to Prohibit discrimination on the basis Union is not good." But, fortunately for all 1·emember and commemorate this occa­ of age in granting credit. of us, President Ford has emerged as the sion. Now, because the Polish people, . Mr. Speaker, for too long the Con­ strong, decisive leader that our Nation has whether in their homeland or in their gress has paid lip service to the needs always called forth in times of crises. -adopted homelands, remember that heri­ It has been my privilege in the last few of America's senior citizens. The Con­ weeks to see at first hand the tremendous tage and cling to it tenaciously. Even gress has been long on talk and short on dedication and courage of this man in tack­ today, the Soviet Union persists in trying action. The time for enactment of a ling and mastering these unparalleled eco­ to sever Poles from their history. Just as sweeping senior citizens program is long nomic and social problems, the long meet­ it failed then, so it shall fail today. past and I urge the House of Repre- ings day after day with experts, advisers, con- 1646 EXTENSIONS OF REMARKS January 28, 1975 sultants, his intense concentration, his deep granted, found itself, after the wheat pur­ Mr. Speaker, in this period of infla­ human concern, his keen perception and chase by the Soviet Union, in a deficit posi­ tionary and artificially high prices, the penetrating questions, drawing out the dif­ tion. Some prices doubled. But, at least we ferent points of view, trying to reconcile, to have the food. There are many nations in the interests of the American consumer and understand and then emerging with bold, world which don't have the food and which taxpayer deserve the benefit of the free imaginative solutions to the problems. He don't have enough foreign exchange because and open marketplace where competi­ has put these solutions together in a deli­ of the increase both in food prices and in oil tive prices may be established without cately balanced, comprehensive program. prices. They face the scarcity of fertilizers, the prohibition of State statutes and the That's what went into his proposals to the the scarcity of water and energy to drive the blanket authority of our Federal laws. Congress of the United States--proposals to tractors and, therefore, there is a falling off Mr. Speaker, the President and his reshape the forces of disruption and to meet in their production of food. In the mean­ administration in a comprehensive at­ the needs of our Nation and of the American while, their populations are growing and the people. Ladies and gentlemen, America has a result is the tragedy of starvation. tack against high prices of consumer great leader in President Ford. With these problems, inflation, the scarcity goods are to be commended for recom­ Now, of course, these problems are so new, of money, people start to hold back on pur­ mending to the Congress this legislation, so complex, so interrelated that there are chases. They feel uncertainty and fear, and and I am pleased to join as a sponsor. naturally differences of opinion. But let's then finally the growing unemployment rate. Mr. Speaker, it is my further hope face it-that's the vitality and the strength The dimensions of the problem are totally that the House Judiciary Committee will of democracy. That's what has made this new. The economists call them "discon­ schedule hearings on this measure in or­ country what it is today. But the President tinuities" which make it almost impossible pos­ has had the courage to put forth his pro­ to make the predictions. der that it be enacted at the earliest gram-a comprehensive program, a tough These are just the rough outlines of the sible date for the benefit of our economy program, but a good program for America. complexities of the problems which are felt and the American people. Now under our system, Congress has the by every American and everyone in a free responsibility to respond positively and rap­ society. I think a basic question is: can free idly, either by adopting the President's pro­ societies discipline themselves to make the gram or by coming up with its own pro­ tough, necessary actions to deal with these gram-equally comprehensive, equally cou­ revolutionary and unpredicted economic and SOCIAL SECURITY EARNINGS rageous, bold enough to deal with the crisis social changes that are taking place through­ LIMITATION that confronts us. out the world? This is the basic challenge This society and free societies throughout and a very serious one. Can America rebuild the world find themselves more seriously its strength to meet its problems at home challenged than in any time short of war. and to continue its leadership of the free HON. PAUL FINDLEY Never before in peacetime have there been world? And I've got to say, from my view­ OF n.LINOIS such violent disruptions--disruptions that point, the answer is "yes." IN THE HOUSE OF REPRESENTATIVES came upon us almost without our realizing If we move intelligently, decisively, on all it. fronts, we can deal with the problems Tuesday, January 28, 1975 The one part of the program which the through cooperation. We can control infla­ Mr. FINDLEY. Mr. Speaker, elderly President has presented to the Congress re­ tion, restore sound growth, increase employ­ lates to energy. Less than a decade ago, ment and continue to improve the quality people living on social security benefits the United States had a surplus. The of life for all. are especially hard hit by inflation, and world had a surplus. With the rapid growth It is not going to be easy. It is going to yet existing law discourages therr.. from of industrialization that has taken place take self-discipline and sacrifice. But it can working for extra income. in the last two decades, the increased be done; and, in my opinion, it will be done. Many of them are physically able and consumption rate, the rapid progress in this This is the greatest challenge America has actually wish to work. Unfortunately country, and in Japan, Europe and the de­ ever faced. I think a better nation and a they are discouraged from doing so, be­ veloping countries-slowly, almost impercep­ better world will emerge because America is cause they w111 lose benefits from social tibly, we have all found ourselves in a situ­ a Nation of achievers. That is what you are ation where we were importing larger and concerned with; that is what you represent security if their employment income ex­ larger percentages of oil. Then came a situ­ as both the achievers who made and built ceeds $210 a month. ation, which I do not think anyone antici­ this Nation and as those who are sponsoring For every $2 earned above that level, pated, which has affected the entire world. the achievers of tomorrow. $1 is subtracted from social security ben­ The producing nations got together and de­ I would just like to end up by saying that efits. cided that they wanted a bigger piece of the I have abiding faith in America and its This injustice is compounde~ by the action. Or, if you want to put it practically, future. they quadrupled the price of oil. They got fact that beneficiaries who get extra in­ the action, and they are now becoming the come from investments-stocks, bonds, capitalists of the world. And so, $65 billion rentals-are not penalized. They may this year from the industrial world, from the PRICE REDUCTION ACT OF 1975 earn hundreds of thousands of dollars developing world, will be slowly moving this from such sources without any reduction year and, as years go by, building up to $100 in benefits from social security. This is billion, $200 billion, $300 billion, $600 bil­ an outrageous form of financial discrimi­ lion, $800 billion in the producer countries. HON. ROBERT McCLORY OF ll.LINOIS nation which favors the wealthy and The consuming countries have found them­ hurts the poor. selves totally unprepared for this situation IN THE HOUSE OF REPRESENTATIVES The social security law must be changed such as the balance of payments problem, Tuesday, January 28, 1975 the lack of capital. These are crises which to correct this injustice. our institutions wer~ not ready for. Mr. McCLORY. Mr. Speaker, it is my LIST OF COSPONSORS But let's not forget the fact, ladies and intention to introduce today or tomor­ Mr. Roncalio, Mr. Breaux, Mr. Brown of gentlemen, that this Nation is blessed with row a measure which would have the · California, Mr. Buchanan, Mr. Burgener, Mr. resources which can be developed. This is effect of outlawing so-called fair trade Carter, Mr. Conlan, Mr. Coughlin, Mr. one of the principal objectives of the Presi­ marketing practices which our present D'Amours, Mr. Danielson, Mr. Drinan. dent. We can become independent of the rest Federal statutes condone. Mr. Eshleman, Mr. Harkin, Mr. Hightower, of the world again in energy sources, even Mr. Speaker, the measure entitled Ms. Holtzman, Mr. Johnson of Pennsylvania, be an exporter of energy. In so doing, the "Price Reduction Act of 1975" would be Mr. Long of Maryland, Mr. McClory, Mr. Mc­ possibility of blackmail, the possibility of directed at retail price fixing which is en­ Closkey, Mr. Moorhead of California, Mr. disruption and destruction of our economy Mosher, Mr. Myers of Indiana. and our society can be prevented. gaged in through contracts between Mr. Nix, Mr. Boland, Mr. Ottinger, Mr. Now, it's bad enough with just that prob­ manufacturers or distributors and re­ Pritchard, Mr. Regula, Mr. Richmond, Mr. lem. But add to it another problem that has tail merchants-fixing the retail prices Rodino, Mr. Rosenthal, Mr. Shipley, Mr. Si­ emerged at the same time, because of the ris­ of certain trademark or brandname mon, Mr. Solarz. ing standard of living, the increased demand products. :Mr. Stokes, Mr. Thone, Mr. Wampler, Mr. for foods, the change in dietary habits, Mr. Speaker, the existing practice is Waxman, Mr. Wilson of California, Mr. Wil­ droughts, population growth, crop failures permitted under existing Federal law son of Texas, Mr. Winn, Mr. Zeferettl, Mr. which suddenly converged on us. This coun­ and as a result, has been mandated by Murphy of New York, Mr. Beard of Rhode try, which had taken surpluses of food for 36 State legislatures. Island, Mrs. Chisholm. Janua'tY 28, 1975 EXTENSIONS OF REMARKS 1647 TWENTY-FOURTH CENTURY CLUB of the voters in the old 24th Congressional Sharon R. Stern, one of my constituents, District of California. Mr. Joseph M. Crosby, is a moving demonstration of the fact Treasurer, and Mr. Clark J. E. Hunt, Assist­ that we know all too little about brain HON. JOHN H. ROUSSELOT ant Treasurer, have been the principal trust­ damage even though it is the third larg­ OF CALIFORNIA ees of Club funds. Mr. Crosby is president of California Liquid Fertilizer Company and est cause of death in the country today. IN THE HOUSE OF REPRESENTATIVES Mr. Hunt is a California certified public ac­ It is truly inspiring to discover persons Tuesday, January 28, 1975 countant (retired). who do not rely upon Federal or founda­ Enclosed you will find a financial report tion funds for research but search in Mr. ROUSSELOT. Mr. Speaker, it is for the calendar year 1974, showing receipts the private sector for contributions. · extremely important to each Member of and disbursements as well as the funds on The statement on the Stern Founda­ Congress that he be able to maintain a hand at the beginning and end of the year. tion follows: continuous exchange of information with As can be seen from the statement of re­ his constituents. I am sure that you and ceipts, "membership dues" have been the SHARON R. STERN MEMORIAL FOUNDATION, INC. our fellow colleagues are well aware that backbone of this program. The Sharon R. Stern Memorial Foundation, We are grateful to all contributors who Inc., P.O. Box 1064, West Acton, Massachu­ one of the most efficient ways to accom­ have participated in the two-year operation setts 01720, has been organized in memory of plish this is through newsletters and pe­ of the-Twenty-Fourth Century Club. In 1975 a young girl whose appreciation and love of riodic questionnaires. It is essential that this "Trust" is being renamed the "Voter life needs to assume new means of expres­ constituents be kept well informed of leg­ Information Program-26th District," which sion. islative activities and that the views and more clearly denotes its objectives. On October 4, 1974, eight weeks after her votes of their Representative be made Very truly yours, wedding day, Sharon's car was struck head­ known. Newsletters must be printed at DONALD E. BUTLER, Chai r m an. on in an automobile accident. Thirteen days En closure. later, never regaining consciousness, Sharon the Member's personal expense inasmuch succumbed to brain damage she incurred as there is no congressional allowance Twenty-Fou rth Century Clu b Fiscal Report, during the accident. to cover these costs. I make this as a 1974 Brain damage is the third largest killer point and not as a suggestion that there in our country today. Equally frightening is should be such a congressional allowance. Cash on hand-Dec. 31, 1973 _____ $8, 253. 68 the fact that the majority of people suffer­ Receipts: ing from amictions and disease to the central The constituents in my congressional Memberships (60 at $100 each)_ 6, 000. 00 district, formerly California's 24th and nervous system do not die, but linger on in Miscellaneous small contribu- pain, year after year, living a comparatively now the 26th District, have been willing tions ------2, 711. 20 non-productive, frustrating life. The current to support the cost of my constituent­ In terest received______160.53 average cost per patient lifetime to these information mailings through contribu­ victims is a staggering $900,000.00. In addi­ tions to a trust fund maintained for this 8,871.73 tion, the crippling effects of the potential sole purpose. This account has been op­ loss of productivity on our country's econ­ erating as the "Twenty-Fourth Century 17,125. 41 omy is staggering. Club," and is established as a trust with Disbursements: The Sharon R. Stern Memorial Founda­ Preparation and print ing of tion, Inc., has been organized to expedite a treasurer and an assistant treasurer Washington report ______14, 042.61 the conquering of amictions, trauma, and acting as trustees. None of these funds Preparation and printing of disease to the central nervous system. The are disbursed to me directly and no dis­ membership appeals ______292.62 Foundation will act as a vehicle to solicit bursements are made to cover any of Miscellaneous printing ______182.98 funds from all sectors and administer those my personal expenses. All funds are ap­ News media subscriptions ______239.00 funds directly into neurological research. plied only to provide public information Press clipping service ______246.04 The Foundation hopes to provide an aqdi­ to benefit all of the constituents in my Professional services and re- tional source of funding for research projects search assistants ______954.39 dealing with the central nervous system, not congressional district. This fund does not Miscellaneous supplies and ex- have a political purpose, and contribu­ to compete for federal appropriations with pense ------428.12 the Institute of Neurological Diseases and tions which are solicited and received Stroke. are kept in an account separate from any 16,385.76 Educating the public in areas of neurol­ campaign activity. ogy, the personal impacts of breakthroughs Mr. Speaker, the contributors to this Cash on hand-Dec. 31, 1974 ____ _ 739.65 in these areas and the impact of their per­ trust are not a limited or exclusive Cash on hand, Dec. 31: sonal involvement is also of primary impor­ grouP--many of the contributions to sup­ Wells Fargo-account 0616- tance. A further objective is assistance in the port this information program are under 010492 ------453.20 coordination of ongoing neurological re­ Lincoln Savings & Loan Associ- search as well as of new programs. $10. The purposes of my newsletter pro­ ation Account 10-142455 ____ _ 286.45 The Foundation hopes to serve the investi­ gram are public information. I want to gating scientists by acting as a resource, an declare the existence of this fund and 739.65 index to which they may refer thus enabling state that the books for this account and We cert ify that the above information is them to avoid duplication of efforts, but al­ a list of all contributors and/or partici­ complete and correct for the calendar year lowing them the luxury of being able to com­ pants will be fully disclosed upon request. 1974. bine theoretical and practical application of I want this information to be made pub­ talent and intellect. JOSEPH M. CROSBY, No other organization in this country lic and I am placing it in the CoNGRES­ Treasurer. focuses so strongly on these objectives. I CLARK J. E. HUNT, SIONAL RECORD for that purpose at this compliment the mer~t and fortitude put time. The following is a letter sent by the Assistant Treasurer. forth by the Sharon R. Stern Memorial chairman of the Twenty-Fourth Cen­ Foundation, Inc. I further hope that the tury Club to the entire membership with Foundaton be given all the recognition and a complete statement of receipts and ex­ cooperation it deserves and requires, by both penditures. The information follows: THE STERN FOUNDATION private citizens and governmental agencies, TWENTY-FOURTH CENTURY CLUB, to realize its objectives in serving mankind. Arcadia, Calif., January 27, 1975. To THE MEMBERS, HON. ROBERT F. DRINAN Twenty-Fourth Century Club: OF This organization was founded in 1973 for IN THE HOUSE OF REPRESENTATIVES STATEMENT BY W. J. USERY, JR. the purpose of funding Congressman Rous­ selot's Voter Information Program, of which Tuesday, January 28, 1975 his Washington Report is the principal incre­ Mr. DRINAN. Mr. Speaker, I am happy HON. WILLIAM (BILL) CLAY ment. This will be the final report under to bring to the attention of my colleagues OF MISSOURI the name of the Twenty-Fourth Century Club, since Congressman Rousselot now rep­ the formation of a very promising private IN THE HOUSE OP REPRESENTATIVES institute to secure funding for research resents the newly created 26th Congressional Tuesday, January 28, 1975 District of California. projects related to diseases of the cen­ The Twenty-Fourth Century Club has op­ tral nervous system. Mr. CLAY. Mr. Speaker, I sponsored erated as a public trust for the benefit of all The following story of the late Mrs. legislation providing for a Federal guar- 1648 EXTENSIONS OF REMARKS JanuaJ"·y 28, 1975 antee of collective bargaining rights for inflation and rising unemployment, the col­ But they cannot--under the law-bargain public employees. The public sector is lective bargaining system is proving i!f:elf collectively. to be the one economic tool than can be Why? the largest and fastest growing sector of counted on to work. Well, the attorney general found that the the labor market today. Yet, since the This is a victory that is uniquely Ameri­ term "collective bargaining" implies the right enactment of the National Labor Rela­ can. It is true that we bad an expected surge to strike and the right to agree to binding tions Act during the New !Jea! era there in strikes following the ending of controls. arbitration. And the state of West Virginia has been no Federal legislation govern­ But we have been able to avoid the nation­ permits neither. ing labor relations in this vital sector Wide labor-management-government wars On the other hand, the word "negotiate," of the economy. During the past months that crippled economies of many other free­ he ruled, merely implies the right to com­ world lands, including England, Ireland, municate. the Federal Mediation and Concllia­ Italy and, to a lesser degree, India and This lack of uniformity--coupled With the tion Service has taken an active role in Japan. repressive nature of some statutes-is caus­ attempting to avoid labor dispute in pub­ We have done so well in recent months in ing national unions to propose, Congress to lic sector. Its Director, W. J. Usery, spoke coping with the post-control economic re­ corsider, and even some public otncials to last October to the New Hampshire adjustments that today our strike rate is support national legislation. School Board Association concerning the back to normal-and less than half of what Congress is listening because the scope importance of regulating labor disputes it was just a month ago. of the problem has grown to truly ga-:gantuan Our free collective bargaining cystem is proportions. in the public sector. I commend his state­ succeeding in the private sector because of Thirty-nine years ago, when the origin. 1 ment to my colleagues in the House: the creative, constructive and responsible national Labor Relations Act was passed, FEDERAL MEDIATION'S ROLE IN PUBLIC-SECTOR efforts that are being made by negotiat·:>rs on Congress specifically excluded the men and COLLECTIVE BARGAINING both sides of the table-and by mediators women who worked for state and local gov­ and arbitrators and educators in the labor (By W. J. Usery, Jr.) ernments. There were 2.7 million of them. relations field who are committed to the Today, that workforce has mushroomed to In the drive over from Boston tris morn­ promotion of labor-management peace. nearly 12 million, and it is still growing ... ing, I had the privilege of seeing nature's Unfortunately, the collective bargaining and it is still excluded from the NLRA. finest work of art on display here in New situation in the public sector is less en­ Now in a day when figures in the bUlions Hampshire. couraging. have become common, it is sometimes diffi­ The vivid showing of fall's colors that you In the vast public sector of our economy, cult to remember that a. million is still quite folks are blessed with cannot help hut make confusion is the order of the day in labor­ a few. So I think it is important that we put a person feel at ease with hlmsel!, and With management relations. All too often and With that public employment figure in perspec­ those around him. · growing frequency, that confusion is result­ tive. The thought crossed my mind during our ing in bitter and generally lllegal 3trikes. I! we took the total employment figure trip here that we might do well to pass a The strikes, in turn, have caused men and for AT&T, the entire auto and steel indus­ law saying that all negotiations in America women of good will to fashion a crazy quilt tries . . . and added to that the payrolls of would take place in a clearing in a New of hundreds of individual laws, regulations all railroads and airlines in America, plus Hampshire forest in the fall. I just can't and executive orders to deal with the in­ every soldier, sailor and marine and every imagine anyone having a serious argument in creasingly chaotic conditions. single one of the 2.7 million federal employ­ the midst of such beauty. Today, state legal bargaining rights vary ees-if we did all that, our total figures The only thing I know of that can compare from statutes that merely provide punish­ would still be nearly 3 million shy of the With God's work in New Hampshire in the ment for strikers, through permissive collec­ payroll of state and local governments. fall is the springtime smell of peach blossoms tive bargaining-as you have for municipal­ Our schools alone require the services of in my home State of Georgia. ities and school boards in New Hampshire­ some 3.4 million teachers, including 2.4 mil­ Both sensations give a person a fine feeling to broad bargaining rights and, in the case lion in our elementary and secondary public of tranquility. of seven States, a limited right to strike. schools. As a Federal mediator-a labor-manage­ The leadersbips in ·13 States have chosen Again, for perspective, this means that we ment peacemaker-! can only envy nature's to remain mute on the question. have five teachers for each person employed way of putting us at ease. Let's take just a brief look at the checker­ in the entire postal service. I want to thank Jay Boynton for the in­ board pattern of legislation in this field. In the past decade, these millions of vitation to speak to this distinguished audi­ In Indiana, only teachers have the right to workers have been turning in droves toward ence of school board members, school super­ organize and bargain collectively. unions and union-like associations to help intendents, business administrators and In Kentucky, the law covers police and them in solving their on-the-job problems. principals. fire fighters only in cities of more than 300,- The result has been an explosion of pub­ And that, in itself, shows how we change. 000 population-and Louisville is the only lic-sector union membership. TOday, more Because I can clearly remember the day city to meet that test. than 3 million state and local employees are when a call to appear before my own princi­ My home State of Georgia permits collec­ paying union dues-and more are joining pal was less than a pleasure. tive bargaining with fire fighters in cities their ranks each day. One union alone, the Seeing him standing there with his pad­ with a population of more than 20,000 but American Federation of State, County and dle-it made me wish that we could nego­ less than 150,000. Just four communities Municipal Employees, has been steadily tiate an agreement. Unfortunately !or me, meet this criteria. Georgia's two najor cities, growing at a rate in excess of 1,000 mem­ he sometimes decided to strike instead. Atlan'"' and Savannah are exempt in law, if bers each week for the past five years. Things are different now. Today in many not in fact. The most highly organized public employ­ places neither the principal nor the teacher Texas, by its nature, seems determined to ee, of course, is the teacher. The once-mild­ can strike a student. The only time a teacher outdo every other State on almost everything. mannered National Education Association strikes now is when he is involved in a dis­ And in the field of public-sector collective has become a militant organization of a mil­ pute with management. bargaining, the Texans have fashioned a lion and a. half members, and the aggressive The results, to my mind, aren't a great winner. For in Texas last year, the legislature American Federation of Teachers has 440,000 deal different. People get hurt, and little granted police and fire fighters the right to on its rolls. really changes. bargain ... if ... if the voters in the commu­ Is it surprising, then, that strikes in the About the best we have been able to do is nity vote by referendum to authorize the public sector have taken a sharp swing up­ to look for different methods to solve our bargaining. wards? problems. And if you think that collective bargaining The Department of Labor tells us that in The search for solutions is on. And I don't in the field of education has become a bit 1958, there were just 15 strikes by public­ have the slightest doubt about the outcome. muddled, I can tell you-things could be sector employees in the entire nation. Last We will succeed. worse. You could have to cope with a recent year, that figure was 388. And one labor We will succeed by making the free col­ ruling handed down by an obviously capable leader, in testimony this month before Con­ lective bargaining p.rocess in the public sec­ and concerned Attorney General in West Vir­ gress, said that figure was suspect--that it tor work-in one form or another-with the ginia. was on the low side. same dynamic precision that is becoming the After a close search of the West Virginia The upswing in teacher strikes has been norm in the private sector of our economy. law, be came to this conclusion: . nothing short of amazing. In the five years I have been saying in recent weeks that It's okay for county school employees to from 1961 through 1965, teache1-s participated 1974 has all the earmarks of being a brilliant form and join unions. And school boards in a. grand total of 18 strikes-an average of year in our nation's long and determined are within their rights to recognize such fewer than four a. year. In the past five years, struggle to make the free collective bargain­ unions. . the average number of teacher strikes each ing process rewarding to all. He said the parties can negotiate, can year has topped the 100 mark. In the face of the severe tests that came enter into written agreements and can even . These work stoppages by pul;llic employees With the ending of controls, double-digit appoint third-party neutJals. ha.ve come in the face of job losses• .fines and January 28, 1975 EXTENSIONS OF REMARKS 1649 jan terms-in addition to the very human I know that in the proposed agreement be· the public sector by allowing us to add a sacrifice that any strike requires. tween your State and the State Employees small number of professionals to our staff. Clearly, the time for a precise system of Association of New Hampshire, there is an My message to you is this-we do care, and collective bargaining procedures that will article that requires our agency to be noti· we are ready, willing and able to help in provide the means of settling disputes with· fled when any new negotiations are sched· every way possibl~. out strikes is needed-and now. uled, and to call for a mediator the moment We care because we know that the devel­ While the legislative experiments that have an impasse is reached. opment of mature, responsible and reason­ occurred in an effort to bring peace to the I welcome t}\is recognition of the value of able collective bargaining practices is one of public sector's labor-management relations the mediation process, and of the talents the greatest contributions that can be made have been of value, they have not brought of the 280 professional mediators who are to all Americans. answers that are anywhere near being equal members of our team. to the problems. Punishment of workers The Federal Mediation and Conciliation and their organizations is not the answer. service has not always been active in public Indeed, more often than not punishment in­ sector disputes. INNOVATIVE IDEA CONSERVES EN­ flames the dispute and makes it far more In fact, in years past, mediators were ERGY, CUTS FEDERAL COSTS difficult to reach an agreement. asked the logical question of why our agency, Congress now has before it a variety of which was established under the Taft· measures supported by the public-sector Hartley Act, would render its services in an HON. JOHN J. McFALL unions area of labor-management relations that is OF CALIFORNIA One, for example, would place State and not covered by the same legislation. local labor-management affairs under the The answer is that the pressures caused IN THE HOUSE OP REPRESENTATIVES umbrella. of the National Labor Relations by the often long and violent recognition Tuesday, January 28, 1975 Act. Another would establish a separate, strikes of the mid-60's left federal mediators specialized Federal authority to handle pub· little choice but to try to help when they Mr. McFALL. Mr. Speaker, in this time lie-sector organizing and collective-bargain­ could. of critical energy shortages, it is encour­ ing procedures. As recently as 1965, there were a few pub­ aging to note that innovative ideas are A third approach-and one with the least lic-sector laws and even fewer mediators being offered by people from all walks of support of labor unions--would involve the available to the warring parties. If you recall life on ways to conserve our vital re­ creation by the Federal Government of min· the terrible experiences in Memphis and imum standards that would protect the em· other communities at the time, I think you'll sources. ployees• fundamental rights to organize and agree that "warring" is not too strong an One such idea has turned into a very bargain collectively. From this base, the adjective. practical operation which is saving thou­ States would be permitted to improvise, ex­ Knowing the limitations of its resources, sands of gallons of petroleum as wen as periment and find customized methods of the FMCS set up strict standards for me· other fiuids which are in short supply. dealing with their own particular problems. diator involvement. At the Defense Supply Agency's West No one of sound mind in Washington First, a joint request from the parties was Coast Defense Depot Tracy, commanded dares to predict what Congress might do on required. by Army Col. David D. McConaghy, any specific proposal-nor when they might Second, the agency would not participate unique system for reclaiming petroleum do it. if any other state mediation, fact-finding or But this Congress has been quite active in arbitration services were available. products has been introduced. Through the field of labor-management relations. Third, we would make ourselves available the use of a portable filtration unit de­ Seeing the potential for turmoil among for a limited period of time, because of veloped by employees of the Directorate the Nation's 2.3 million employees of some budgetary limitation and private-sector of Industrial Plant Equipment on Rough 24,000 private health care facilities, the Taft· priorities. and Ready Island in Stockton, oils, hy ~ Hartley Act was amended in August to place Even with these restrictions, troubled draulic fiuids, and cleaning solvents are them under the jurisdiction of the National parties would come to the FMCS, and the reclaimed, purified, and reused for as yet Labor Relations Act. agency gained a "last-best-hope" image in -The bill holds a special significance for severe disputes. an undetermined number of times. us at the Federal Mediation and Conciliation From 1969 until 1973, when I served as During the first year of use at th.e in­ Services. Assistant Secretary of Labor, I was asked to stallation in my congressional district in Congress made it mandatory for the unions serve as a peacemaker in several significant California, a savings to the Federal Gov­ and the health-care institutions to utilize disputes in both the private and public sec· ernment of more than $16,000 is ex­ the services of our agency in an attempt to tors--among them, the teach­ pected, as well as conserving a large resolve any dispute tha:t might lead to a ers' strike. amount of precious .liquids which nor­ strike. Upon becoming director of the FMCS, I was mally are used one time and then dis­ It was not the intent of Congress or the determined-budgetary limitations or not­ carded. bill's primary sponsor, Senator Robert Taft that the agency would provide greater assist­ of Ohio, to strengthen unions or to weaken ance to public-sector disputes. I am calling this successful activity to management in the private health-care field. I made this decision because I could see the attention of the Federal Energy Ad­ It was the intent of Congress to detour the that the most explosive, the most destruc­ ministration and the Department of the rising trend of strikes in the private health· tive, the most divisive strikes in the nation Army-which purchases petroleum prod­ care field by providing unions and manage­ were those in the public sector. ucts for all components of the Govern­ ments with adequate legal options that Consequently, one of my first actions as ment-in the hope that similar machines would encourage the peaceful settlements of director was to lower the agency's restrictive their disputes. may be developed for a similar use else­ criteria for involvement. where and that the recycling process can I can report to you that early returns indi· Our mediators will now enter any dispute cate that the leaders of private health-care in the public sector as long as the parties be used on a larger scale, perhaps by facilities and unions across the land are will have us--and as long as no State or local working with refineries. It is my under­ showing a strong determination to improve mediation services are involved or available. standing that motor oils can be re­ their relationships through the new law. And In addition, we have organized an office of refined, but an ample supply of the used I can tell you that early returns indicate technical services to make fact-finding avail­ oil must be available in order to make that they are succeeding. able to the parties ... to assist in the crea· the process cost effective. As I said earlier, no one can accurately tion or strengthening of State mediation An excellent article in the January 14, predict what Congress will do with the pub­ agencies and to provide training for their 1975 issue of the Modesto Bee described lic-sector labor-management proposals that personnel ... and to make available educa­ the recycling process being used at Rough are now in the legislative hopper. tional assistance that the parties might find So it seems to me that the only option useful in their labor relations programs. and Ready Island. Because of the wide­ currently available is to do the very best job A few months ago we appointed in each of spread interest in energy conservation, we can with the tools that are avaliabH~. our seven regions an outstanding mediator I would like to insert the Bee article at Because the problems are with us ... to coordinate our activities in Federal and this time. It follows: they are serious . . . and they are not go­ public-sector bargaining. And our staff of [From the Modesto (Calif.) Bee, ing to go away. five national troubleshooters who work out Jan. 14, 1975] One op.tion that is avaliable to publlc· of Washington are now assigned to major IN GoEs THE BAD OIL, OuT COMES THE Goon sector negotiators is mediation--either disputes in the public as well as the private STocKTON.-While many have been talking through state mediation agencies, where they sector. about oil problems in this country, the people exist, or through our Federal Mediation and Congress, by the way, hftS shown that it a.t Tracy Defense Depot's Rough and Ready Conciliation Service. shares our concern for making the peace in Island have done something about it. -1650 -EXTENSIONS OF REMARKS -January 28, 197-5 -They -have come up with a portable 1iltra­ -Daniel Moynihan, who was our Am­ made similar agreements with. and t ion unit that cleans ons. hydraulic fiuids bassador to India during that period, is Australia. and cleaning solvents used in machine tool to But India is reluctant to agree to this con­ resigning. Now that he is free speak dition With the United States largely be­ repair operations. has Albert Tennant, who heads the depot's in­ his mind, he told the press that the cause it lmplles American leverage over the dustrial equipment directorate on Rough and American move was deeply offensive to decisions made by Mrs. Gandhi's government. Ready Island, west of here, said the unit is the Indian Government and has created The situation is complicated by the fact that expected to save more than $16,000 during "a large. generalized suspicion of Amer­ India owes the Soviet Union 2 million tons of the first year of use. ican intentions" which still remains. wheat, that was sent here last year and is set The unit can recycle 200 gallons of oil an At this point, therefore, our Diego to be repaid starting in 1976. hour and will be used to reclaim 14,850 gal­ Garcia efforts have gained us a net lons of oil or 80 _percent of the total used at minus, and the offsetting pluses are not the plant, 5,325 gallons of hydraulic fluid or 90 percent of what is used, and 8,250 gallons insight. of cleaning solvent, about 70 percent of what I insert in the RECORD a news report UKRAINIAN INDEPENDENCE DAY is used. of Ambassador Moynihan's statement as STA~T Tennant said the idea for the unit first reported in the Washington Star-News ca.me up about two years ago in connection of January 7,1975: with saving money. Although only depot per­ INDIAN OcEAN MOVE-MOYNUUN HITS U.S. HON. PHILIP M. CRANE sonnel were involved tn the program initially, BASE POLI:CY OF ILLINOIS outside people such as officials of companies which make filtering devices and engineers New DELHI.-Qutgoing U.S. Ambassador IN THE HOUSE OP REPRESENTATIVES from local petroleum firms eventually were has accused Wash­ Tuesday, January 28, 1975 asked for their thoughts. ington of touching off a wave of anti­ Americanism by its handling of a decision The result is a portable unit on wheels Mr. CRANE. Mr. Speaker, during the which removes the oil from a machine oil to build a refueling base in the Indian Ocean. current era of "detente" many Americans reservoir, sends it through a filter and then .. Never in the annals of history has the and others in the Western World tend puts it back through a maze of filters into United States o1fended so many, so much and not to think about the grim reality of 55-gallon drums for future re-use. over so little," he said in an interview yes­ terday. life under communism. The unit is not the answer-all to current While many claim that communism petroleum needs. It cannot, for instance, re­ Moynihan said the United States was "pretty clumsy" in its handling of a decision has "changed," the unfortunate fact is cycle oil from internal-combustion engines to turn a communications outpost on the because it' contains too much acidity. But that men and women who live under atoll of Diego Garcia into a refueling base for Communist regimes still do not possess Tennant said there are commercial firms American ships. capable of such work and he proposes that "I have been appalled by the way we've the elementary freedoms of religion, of the local military as well as others might gone about it and so has the United States speech, and of emigration. As long as someday turn to such companies to handle Congress been appalled," he said. such symbols of repression as the Bel'lin the recycling of oil from combustion engines. He added, however, that his final talks with Wall continue to stand, it remains clear One advantage of the filtering unit being Prime Minister Indira Gandhi left him more to all who will open their eyes that com­ used in the directorate's operation is its port­ optimistic about the future of U.S.-Indian munism remains a force for human ability. Mounted on a small trailer pulled by relations than he has been in weeks. a tractor, the unit is easily moved from one degradation and enslavement. He said Washington decided to proceed in large piece of machinery to another inside the with plans for the refueling post despite a In addition, an era when the world 20,000 square foot building where it is located. U.N. resolution declaring the Indian Ocean a has rejected the concept of colonialism, Tennant said the unit, the first of its kind "zone of peace." that one nation has a right to dominate developed within the Department of Defense, He said the move t ouched off a heavy flow the life of another. it remains a con­ already has drawn the Interest of Washing­ of cables from countries bordering on the tinuing and unf.ortunate fact of life that ton officials. Some large industries in the East Indian Ocean. "At one period we had cables the Soviet Union's colonial empire re­ have similar units in operat ion, he said. on this issue going back and forth between mains unchanged. 42 capitals," he said. "But we made no effort to explain why we Men and women .of many nationali.­ wanted to be there or what our needs were," ties--La.tvians, Lithuanians, Estonians, he said. "We made no effort to win acquies­ Georgians-have had their national AMBASSADOR CALLS DIEGO GAR­ cence-not to say that we could have won it." identities destroyed, their languages vir­ CIA A DIPLOMATIC BLUNDER He said congressional opposition has tually eliminated, and their traditional forced President Ford-in order to gain an ways of life all but eradicated. Despite $18.1 million appropriation for the move-­ the efforts of the Communist leadership HON. ROBERT L. LEGGETT "to tell the whole world that flyspeck called Diego Garcia is necessary to the security of to Russify all of the peoples of the So­ 01' CALIFORNU America." viet Union, however, the ethnic identities IN THE HOUSE OF REPRESENTATIVES Moynihan, who flies to Hong Kong today, and the religious faith of tens of millions Tuesday, January 28, 1975 is scheduled to make a. brief trip to China of the colonized peoples remain firm before returning to after and strong. In this sense, communism Mr. LEGGETI'. Mr. Speaker, last year two years as ambassador. He will be suc­ has failed. we had something of a struggle over the ceeded next month by former Atty. Gen. In none of the colonized nations has it question of whether to develop the In­ William B. Sa.xbe. The ambassador said he agreed during his failed more dramatically than in the dian Ocean island of Diego Garcia into last meeting with Mrs. Gandhi "about a Ukraine. There, despite every totalitarian a refueling base for our combat and succession of things and disagreed about effort to destroy the Ukrainian culture, logistics ships and aircraft. other things-but the agreeing was pre­ language, and religious faith. all three Some of us said that there was no need dominant." remain very much alive. to establish a naval p1·esence in the area, "But there is still a large, generalized sus­ on this occasion of the 57th anniver­ picion of American intentions here," he said. that the Soviet threat was miniscule, "There is a free floating anxiety which settles sary of the independence of the Ukraine that the Navy was simply trying to on this or on that issue." I wish to join my voice to those many create a mission for itself, and that the Meanwhile. reported others throughout the world who are nations surrounding the Indian Ocean that Indian and U.S officials are seeking to making it clear that the valiant people would take a dim vtew of our creating a resolve an abrupt deadlock over the delicate of the Ukraine have not been forgotten. issue of American food shipments here. potential war zone in their ba.ck:yards. We are aware of their desperate effort to Secretary of State Henry A. Kissinger was keep their culture and civilization alive Others said tllat the Soviet presence meeting Trilokl Nath Kaul, India's ambas­ and we share their faith that the Ukraine in the area was essential, and that the sador to the United States today in an at­ will one day be free and independent nations surrmmding the Indian Ocean tempt to resolve the dltrerences. The main snag is that the agreement would again. would welcome our protective presence. Jnclude a "no export,. clause, Jneaning that On this date in 1918, the Ukrainian Recently. the last point of contention India is obligated to guarantee that she will nation declared its independence and was resolved in fa.vor of those of us who not resell or send tile rood to other coun­ founded the Ukrainian National Repub­ oppose development of Diego Garcia. tries. American omclals say that India has Uc. This Republic was destroyed In 1920 .January 28, .197-5 EXTEN~ONSOFRE~ 1651 by _armed .conquest on the pa1-t of -the 25, which dramatically -illustrates the Dr. Joseph Wagoner, NIOSH's director -of communist leadership of the Soviet problems pointed out in the "Workers in .field studies and clin1cal investigation, said Peril" series. his agency is "deeply concerned" that chloro­ Union. Today, the 48 million Ukrainian prene-ca.used cancers may have gone unde­ people constitutes the largest non-Rus­ - With shocking regularity we have dis­ tected in this country and has begun investi­ sian nation under Moscow's domination, covered one industrial chemical after gating the health of chloroprene workers. both within and outside the U.S.S.R. another in the last 12 months which DuPont produces chloroprene at plants in There are some in the United States appear to be causing an excess rate of Loulsvllle, Ky .• Laplace. La., and Houston. who now tell us that what occurs in the cancer among those workers who are ex­ Another Du Pont chloroprene plan-tr-in Soviet Union is none of our business. posed. Last week yet another potential Montague, Mich.-closed in 1972. They tell us that we should do business carcinogen was revealed. Chloroprene, a NIOSH said that in recent years up to 385 with the Communist government and colorless liquid which has been linked million pounds o:f ehloroprene have been avert our eyes from the suffering of the manufactured annually, with production in­ with excess rates of lung and skin can­ volving an estimated 2,500 workers now and unfortunate millions who have been de­ cer, is now being studied by officials of an unknown number of former chloroprene prived of basic human rights. They tell the E. I. du Pont de Nemours Corp. and workers. us that legitimate humane concern for the National Institute for Occupational "It takes maybe 10, 15 or 20 years for these the suffering of innocent men and women Safety and Health. things (diseases) to show up" in individuals, is somehow meddling in the internal This comes at a time when the Office said Dr. John A. zapp, director of DuPont's affairs of a fo1·eign country, even though of Management and Budget, in direct Haskell Laboratory in Delaware, which in that same country has signed the Uni­ defiance of the new budget act, is un­ December first reported its concern to NIOSH, versal Declaration of Human Rights, an lawfully impounding $4 million in funds the research agency for the Occupational international treaty. guaranteeing the Safety and Health Admlnlstration (OSHA). for research on chemical hazards and Du Pont began taking a closer look at very freedoms it deprives. NIOSH continues to suffer from admin­ chloroprene last year after workers at another I will not avert my eyes from either istrative restraints which p1·event the plant were found to have died of angiosar­ the suffering of innocent people or the agency from hiring adequate staff to re­ coma, a rare liver cancer, as a result of indus­ :flagrant disregard of international law search hazards such as chloroprene. trial exposure to vinyl chloride. a. gas used on the part of the Soviet leadership. Of The articles follow: in manufacturing vinyls and plastics. what value are new arms treaties and CHLOROPRENE LINKED TO CANCER Chloroprene is a member of the vinyl chlo­ other parts of the detente package if (By Douglas Watson) ride chemical fa.mlly, Wagoner said. we do not enforce the international trea­ Zapp said that Du Pont began studying Several American scientists soon will visit the medical literature on chloroprene and ties to which the Soviet Union has al­ the Soviet Union to learn more about two ready affixed its name? If the Soviet came across the Russian studies this fall. Russian studies that report higher lung Zapp said Du Pont's concern "is more theo­ Union can sign agreements and violate and skin cancer rates among people exposed retical than anything else" because its own them with impunity, detente becomes to chlorcprene, a colorless liquid chemical statistics indicate no unusual incidence o! a mockery and a ratification for tyranny. used in the production of synthetic rubber. cancer among the company's chloroprene I hope that my colleagues in the Con­ Officials of the National Institute for Oc­ workers. gress will not abandon the millions of cupation Safety and Health (NIOSH) and NIOSH's report says, "Humans exposed to men and women who live under the co­ E. I. du Pont de Nemours and Co., which chloroprene have been reported to develop lonial regime instituted by the Soviet operates three chloroprene plants in this dermatitis, conjunctivitis, corneal necrosis, country~ say they are very concerned about anemia, temporary loss of hair, nervousness Union over such formerly independent the possible implications of the Soviet and free nations as the Ukraine. How studies for an estimated 2,500 Americans and irritablllty." secure is the freedom of the American who work with chloroprene. Lyle Cressey, manager of Du Pont's Louis­ ville plant where 500 people work with people if we ignore the violations of free­ Du Pont in recent weeks has tightened dom and dignity on the part of other procedures to limit plant exposure to chloro­ chloroprene, said, however, the only effect of prene which it produces In large quantities the chemical noticed there is that a few regimes? In my opinion, that freedom workers have developed skin rashes. would not be secure at all, for just as for chemical processes and marketing under the trade na.mt"t of Neoprene. It has alerted Chloroprene is listed at 412th on NIOSH's nazism represented a barbarism whose its customers to the possibility of "escaping priority list for developing toxic substance end goal was the destruction of all free chloroprene." standards. Asked why there haven't been any societies, so communism represents a Neoprene is used in making hoses, cable American studies of chloroprene's effects, a similar thl-ea t. sheaths, adhesives, fabrics and other goods NIOSH official said, "There are just so many For better or worse, men are their where the chemical's high resistance to chemicals to look at that it's been impos­ brothers' keepers. When any nation's weathering and oil is valued. sible to cover the whole territory:~ freedom and independence is challenged DuPont executives said the chemical cor­ portion also has notl1led its ehloroprene "A LONG WAY To Go," MARYLAND OFFICIAL and eliminated, the freedom and inde­ workers about the Russian medical studies SAYS pendence of all nations are in jeopardy. and plans soon to send three company repre­ (By Douglas Watson) I look forward to the time when the sentatives to Soviet Armenia, where there is Harvey A. Epstein. Maryland's commis­ people of the Ukraine will once again be a chloroprene plant and where the Russian sioner of labor and industry, said that when masters of their own house. It is toward studies were done. it comes to occupational health, "I guess it's that day that all of us must work for on According to NIOSH, one Russian study of a fair statement to say we are not moving the day when the Ukraine is independent 19,979 people between 1956 and 1970 found fast enough. we•ve got a long way to go be. and free, the security of all of us will be that the incidence o! lung cancer was at fore we can assure each worker a safe an•l that much greaier. least 2Y:z times greater for chloroprene work­ healthy workplace." ers than those in many other jobs. - Indeed, a May 1974 federal evaluation The second Russian study looked at 24,989 found uninformed inspectors, long delays in people over the same 15-year period and enforcement action and general laxness in found that the incidence of skin cancer was Maryland's occupational safety and health WORKERS IN PERIL at least 4Y:z times greater for chloroprene program. workers than for those not exposed to the Maryland is one o! 26 states which have chemical. assumed responsibility for enforcing the Oc­ The study also found that those working cupational Safety and Health Act that Con­ HON. DAVID R. OBEY With chloroprene derivatives had a skin can­ gress enacted in 1970 to assure that the na­ OF WISCONSIN cer rate that was higher than average but tion's work places meet minimum safety and IN THE HOUSE OF REPRESENTATIVES still little more than haH that of persons health standards. wh-o had worked for long periods in chloro­ Tuesday, January 28, 1975 The four-year-old federal law, bailed as prene production. landmark legislation, is forcing private em­ Mr. OBEY. Mr. Speaker, today I am Federal and Du Pont officials emphasized ployers and state governments to pay more inserting in the RECORD the final article that they know of no deaths or higher cancer attention to safety and health on the job. in a four-part series from the Washhlg­ ra.tes among American chloroprene workers. However, government officials are quick to But they acknowledge that long-term mor­ acknowledge that the law's objectives are far ton Post entitled. ''Workers Jn PerU." I tality studies to detect any pattern ot ehloro­ from being :fully realized. am also inserting an article which ap­ prene-caused disease in this country have As the law has begun to have impact, many peared in the Post on Saturday, January not been done. businessmen around the natton have com- CX.XI--105-rPart 2 1652 EXTENSIONS OF REMARKS January 28, 1975 plained that they are being harassed by un­ matter by telephone with a Bethlehem Steel and 514 inspectors. During fiscal 1974 OSHA reasonable standards and overly complicated executive. had a •70.4 mlllion budget and 920 in­ regulations. Attempts have been made in Then, the state official noted in an office spectors. This fiscal year it has a $102 mil­ Congress to weaken the law and the two fed­ memorandum that an inspection "would in­ lion budget and authorization for 1,261 in­ eral agencies the law established and charged volve us and our records" in a dispute. He spectors. with the primary responsibility for occupa­ decided to rely on the possib111ty of a re­ When the 1970 federal law took effect, the tional safety and health. port from the Bethlehem Steel executive, number of occupational injuries and ill­ The Labor Department's Occupational writing, "We will not visit the area until the nesses being reported tripled. The new law Safety and Health Administration (OSHA) case is settled and then on a routine tour." :requires reporting of all cases involving and HEW's National Institute of Occupa­ In 1969 another state health official re­ medical treatment; formerly companies re­ tional Safety and Health (NIOSH) got oft to jected a union representative's request that ported only those cases that prevented a a slow start in promulgating health stand­ an unannounced inspection of Sparrows worker from doing his regular job for one ards, but began picking up momentum in Point be made by the state. more day. the past year. "Even the President of the United States The concern many businessmen have about The federal agencies are at the same time could not get past the plant guards with­ OSHA's regulatory role is reflected in maga­ being attacked by businessmen fighting out a pass," the state health official said, zines such as "national Safety News," which stricter standards and criticized by others adding: "Because of the vast number of has been loaded with ads directed toward for doing too little, too late. buildings occupying an area of perhaps five companies worried about complying with The 1970 federal law encounters the 50 miles square, one could get lost in this huge new federal safety and health standards. states to assume responsibility for overseeing complex and not be found for five years. It is "Got OSHA problems?" asks one. "Don't occupational safety and health as long as therefore essential to have a guide." sweat it . . . Scott simplifies compliance," their programs are "at least as effective as" The state official added that "Bethlehem reads another. "Meeting the challenges of the federal agencies. Maryland and 25 other Steel Co. is one of the pitifully few companies OSHA and the energy crisis," says another states have done so. in the state which have not only topnotch of the ads offering safety and health equip­ In addition to other findings, the OSHA "fully staffed medical and safety programs, ment. A number have falsely claimed to be report found that when Maryland's Division . but is the only plant in the state which has "OSHA approved." Many consultants re­ of Labor and Industry did impose fines a competent industrial hygienist on the cently have sprung up to advise employers against companies, they averaged only $229 premises." on meeting OSHA's standards. for a serious first violation, compared with The memorandum concluded that: "After One of those who has been critical of OSHA an average $615 imposed by OSHA. all the internal avenues of redress have been while continuing to support its general pur­ The report said that, even so, most of the exhausted, then the union is free to call pose is Frank R. Barnako, manager of safety fines were withdrawn. "During the period upon outside agencies." and workmen's compensation for Bethlehem evaluated, 91 per cent of these contested In 1972 a third state health official wrote in Steel and a member of OSHA's national ad­ citations were resolved in informal confer­ an office memorandum, "An anonymous call­ visory committee. ences by dropping the citation or reducing er, who identified himself only as an em­ "OSHA needs to do more to review and de­ the penalty. Employees may be, and usually ployee of Bethlehem Shipbuilding Co., com­ cide the application of standards and to re­ are, excluded from such conferences and plained of fumes from the sulfuric acid re­ vise them in accordance with practicali­ documentation of conference proceedings is cycling plant at Bethlehem S.teel Corp. ad­ ties ... The number of contests on citations negligible," it said. jacent to the shipyard." proves that a great deal of work needs to be Epstein said that much progress has been The memo continued. "when the wind is done- to clarifiy and revise existing standards," made since the federal survey was done last right, these fumes are blown over the ship­ Barnako told a House committee last May. winter. yard causing acute respiratory distress and Assistant Secretary of Labor John H. "We've purchased equipment. We've burn the skin of the workers. E.ffect is re­ Stender, head of OSHA, responds to com­ trained people. We've enlarged our staff. portedly so severe that the men 'run for plaints by saying, as he did in a Nov. 14 We're making an honest effort," said Epstein. cover.' It was suggested that the union han­ speech, "For years we accepted workplace He said the state ha.s reduced its response dle the complaint via established grievance risk and danger as part of man's job, like time from an average 38 days to 14 days and procedure. The caller will not do this since he Evel Knievel. And because we accepted risk ended its previous policy of not considering claims that his name will be used and an ex­ and danger, we wound up with the inevitable imposing fines for lesser violations. cuse found to fire him." consequence: a sordid record of statistics However. Dr. Allan S. Moodie, who works The state health official concluded by not­ of death and disability." under Epstein as chief of the state division ing that he had been reassured by a Beth­ Stender continued, "The tragedy of such of labor and industry's occupational health lehem Steel executive that within two a system that the victims themselves are program, said: "At the moment we are barely months the offending plant would be phased innocent. They believe in America. They work able to deal with complaints. We're just put• out of operation. to make our country a better place to live ... ting out fires. It's sort of an emergency serv­ The 1970 Occupational Safety and Health In many cases, their willingness to work ice. We're not really doing planned, system­ Act, which aims "to assure so far as pos­ proved to be their mistake in life." atic inspections:• Dr. Moodie said. sible every working man and woman in the To those who contend that the federal Dr. Moodie resigned recently, expressing nation safe and healthful working condi• standards are too costly, Stender has said, frustration about having a lot more respon­ tions," created OSHA to promulgate and en­ "We are deeply convinced that job sa.fety sib111ty than actual authority. force national safety and health standards and health improvements will more than Bethlehem Steel Corp., Maryland's largest and established NIOSH to do research and pay for themselves by red\t-eing lost time, private employer with 22,000 workers at make recommendations on standards to equipment down-time and insurance and Sparrows Point near Baltimore has not had OSHA. workmen's compensation premiums that now to pay any fines to either Maryland or OSHA Under the law OSHA conducts its own cost employers some $14 billion a year." during the past two years, although state work-site inspections in states that have not OSHA has found it difficult to set stand­ inspectors issued about four citations for assumed responsibility for administering the ards quickly for a wide variety of potentially serious safety or health violations and about law and oversees states such as Maryland hazardous materials, there being 22 steps 26 citations for lesser violations in six visits that have qualified to run their own en­ in OSHA's standards-drafting process. there. forcement programs. The 1970 law covers OSHA has established new federal stand­ over the same period inspectors from federal employees and all nongovernment ards for exposure to vinyl chloride, asbestos OSHA's Baltimore office visited parts of Spar­ workers except those subject to other fed­ and for a group of 14 carcinogens or cancer­ rows Point about 18 times, but imposed no eral legislation-a total of 60 million work­ producing substances, thereby acting on fines, they said. ers. three of 24 standards NIOSH has recom­ Epstein, a former state legislator, became Federal and state inspectors generally are mended. OSHA is nearly ready to set stand­ Maryland's commissioner of labor and indus­ banned by the law from announcing their ads for inorganic arsenic and noise. try in June 1972. Charles A. Della, the assist­ industrial inspections in advance. Employers It i working with NIOSH on a project to ant commissioner, is a former president of who are found in violation can be fined up to add more safeguards to present limits on the state AFL-CIO and Sparrows Point $1,000 for each serious violation and up to industrial exposure to 400 toxic substances. However, NIOSH is aware of 18,000 toxic machinist. $10,000 for willful or repeated violations. Over the years relationships between state During fiscal 1974 OSHA conducted 77,074 substances, of which 1,800 are carcinogens. officials and business executives have been inspections, with nearly half of the inspec­ OSHA first focused on five of the most informal in the health and safety field. tions resulting in proposed penalties totaling commonly found health hazards in industry: In 1966 when a state health official re­ $6.5 million, an average of $182 in proposed asbestos, carbon monoxide, cotton dust, lead ceived a report that a Sparrows Point worker penalties per establishment penalized. Em­ and silica. It initially has placed heavy em­ ployers may appeal proposed citations and phasis on five particularly haz&rdous indus­ "had elevated blood leads maybe as high as tries: longshoring. meat packing, roofing and . 08 mllligram.s"-which NIOSH says is an penalties, but only 5 per cent do . In its first full year of operation, fis· sheet metal work, lumbering and manufac­ unacceptable level posing the risk of lead turing of mobile homes and campers. poisoning-the state official discussed the cal 1972, OSHA had a $33.8 million budge~ January 28, 1975 EXTENSIONS OF REMARKS 1653

There are tensions between the Labor De­ fees and tax credits. Such glamor as it con­ THE ECONOMY: HALF SPEED AHEAD partment's OSHA, which must consider the tains-as in the commitment to synthetic In the past five months President Ford practical problems o! enforcing standards, fuel plants-was carefully understated. His has done a complete turnabout on economic and HEW's National Institute for Occupa­ predecessor sometimes sketched grand de­ policy. But it ought also to be remembered tional Safety and Health (NIOSH), which by signs that were never built; Mr. Ford pre­ that the economy has been doing some im­ law must warn OSHA of medical risks regard­ sented working drawings. pressive fiips of its own during the past year. less, and with businessmen's complaints, It is by no means certain that his plan is Given the unprecedented nature of those those tensions have risen. correct in every detail. There is quite a large changes, President Ford outlined what ap­ - Many in NIOSH are frustrated by budget­ area o! uncertainty and disagreement among pears to be a reasonable and coherent plan ary limitations; in fiscal year 1974 it had 611 the experts, because the problems to be of action. employees and a $31.2 mlllion budget, though solved are unique in American experience. The plan, which includes a stimulative tax when the agency was founded there were Anybody's plan must necessarily involve trial rebate now and some long-range economic plans to develop a staff of more than 1,100 and error, and must contemplate timely ad­ boosters later on, has the immediate ad­ and a $70 million budget. The Ford admin­ justment in response to the unpredictable vantage of political acceptability. It is some­ istration has agreed to only $2 million of a actions of the rest of the world. Thus the thing the Democratic Congress can live with. proposed $6 million increase in NIOSH's President offered not a final answer, but a 0! course, the exact size and distribution of budget !lext year. workable proposal for starting to rebuild the the tax rebate wlll undoubtedly undergo A national shortage of qualified industrial American economy in a world that has change in Congress. But that is less im­ hygienists is slowing occupational health changed fundamentally. Overall, it was an portant than that the measure be passed programs: most states are far !rom the fed­ encouraging piece of work on his part. soon, since almost everyone is agreed that the eral government's recommended ratio of one economy needs some short-term stimulation, industrial hygienist for every four industrial and needs it fast. safety inspectors. Maryland has 170 safety HARD CHOICES ON ENERGY Tb,e theory behind the Ford plan is that inspectors to visit the state's 65,000 busi­ The heart of the energy issue is this: the the anti-infiationary policies of the Nixon nesses, including 3,292 manufacturing world has been changed fundamentally by administration went too far. The economy plants, but only 11 industrial hygienists. the four-fold increase in oil prices and the of the 1960s, like a speeding train, had to Their job is to take air samples and chem­ use of oil as a political weapon. Societies, be slowed down. But in the process of apply­ ical measurements during plant inspections like ours, that were built on the assumption ing the brakes the train came to an untimely to be certain employees aren't being overex­ o! unlimited supplles o! cheap oil must halt and millions of workers were thrown off. posed to toxic materials. The state has five change markedly, or face ruin. It is this un­ Now President Ford is !aced with the task o! authorized industrial hygienist jobs it hasn't pleasant truth that energy policy must recog­ picking up speed again to take those workers been able to fill. nize. back on board. But he must avoid opening President Ford's new policy does seem to the throttle too wide and returning to the recognize it. There are some measures tore­ reckless speeds o! old. It is a chancy business, duce oil imports, environmental compro­ one not even the most sophisticated econo­ mises to provide immediate energy alterna­ mists are willing to predict. Yet Mr. Ford is THE STATE OF THE UNION tives and long-term proposals to make the wearing the engineer's cap, and so he must nation and its allies less dependent on oil act. and less wasteful of energy in -all forms. It As outlined in the State of the Union is a policy to change the size and nature of address, his plan tries to strike a. balance HON. JAMES G. MARTIN the nation's energy diet. between recession and infiation. As the first OF NORTH CAROL~A It is not going to be a pleasant policy to order of business it calls for a rebate on IN THE HOUSE OF REPRESENTATIVES live with. The taxes proposed to drive down 1974 taxes. The hope is that Americans will use of oil and gasoline will work through buy more goods and services, thereby stimu­ Tuesday, January 28, 1975 higher prices to the consumer. They are de­ lating the economy and putting more people signed to make it more painful to drive, to back to work. Mr. MARTIN. Mr. Speaker, since use boats, to keep houses toasty and to do But it will take more than a single shot President Ford's address to Congress and the other things Americans enjoyed doing in the arm to do the job. Businesses need the Nation, some newspaper editors have before the oil revolution. They are designed more long-term stimulation than that. And not taken the time to get a clear picture to force changes in the way Americans live. consumers can hardly expect to get much of this country's economic troubles and All the talk about a nicer, easier way to do mileage out of the initial tax rebate 1! the the full ramifications of proposals that it-through rationing, or this scheme or costs of gasoline and heating oil go up this will be considered by the House and that-is as empty as claims that you can lose year, as President Ford has proposed. That Senate. weight without eating less, or claims that is why Mr. Ford made some other long-range you can cure alcoholism without cutting proposals: to institute a separate tax cut I hope my colleagues will read the fol­ down on alcohol. on 1975 taxes that could be carried on in­ lowing editorials which appeared in the To be sure there are questions that should definitely, and to grant special tax credits Charlotte News on January 16, 1975. I be asked. The President's decision to forego and cash grants to those who will be hard­ want to commend the editors of the a direct gasoline tax in favor o! a general est hit by higher energy prices. Coupled with Charlotte News for their understanding levy on oil has one advantage: the levy can some proposed tax benefits for businesses, and clear thinking in dealing with the be imposed on imported oil immediately these measures should give the economy the without approval o! Congress. That has some kind of long-term psychological push it crucial-and interrelated-issues before needs. symbolic value here and abroad. But for the us: That way is not without its dangers, of THE STATE OF TH'E UNION • • • long term, there are good reasons to favor course. The federal deficit will become even This country's people are resilient and placing more of the burden on gasoline and more bloated, and infiation wlll be further eourageous; they have not lost the ability to less of it on the oil products that heat the fueled. But the Ford proposals do not ignore persevere in a good or necessary cause. What nation's homes and run its factories and these realities. The President addressed very they have lacked in the energy and economic transportation system. Similarly, while it is forcefully the matter of federal spending. He crisis of the past year is not will, but leader­ apparent that some environmental compro­ reminded the Congress that both it and the ship. It was this that President Ford most mises must be made if the nation is to simul­ executive branch have been indulgent 1n the needed to address with his state of the union taneously end recession and dependence on past. He pointed-out that skyrocketing fed4 messages. And it was this that he did address, foreign oil, not all the ones proposed by Mr. credibly and effectively. eral programs such as Social Security and Ford are equally desirable. veterans' benefits are some of the main con­ Leadership is both a matter of style and These questions ought to be asked. But it substance. President Ford's natural style iS tributors to infiation. They must be plainness, which served him well this week. must always be kept in mind that the nation grappled with if national economic policy is _His speeches were straightforward, his mean­ is dealing with fundamental matters. It is to have any meaning. ing clearly put in ordinary language. He spoke idle to suppose that a society can be remade The question now is whether Congress has to the things on people's minds; jobs, infia.­ without inconvenience and pain. Of course, the wlll not only to pass the tax cuts, which tion, taxes, energy. He explained his goals, not having an effective energy policy is also are popular, but also to prescribe some and his plans for reaching . them. The talks painful. It is part o! the reason !or high harsher medicine on federal spending and were low-key, informative and appropriate prices and deepening recession. It is a prin­ energy, which is not. For in the long run it to the situation. cipal reason !or the chaos in the world fi­ does little good to put unemployed Ameri­ His substantive plan, discussed in more de­ nancial structure. Unless this country does cans back to work if their paychecks are tail in the editorials below. is as plain as hts adapt to the new energy world, however immediately eaten up by rampant in1latl<>n. style. It is composed mostly o! such worka­ painful the adaptation may be, worse things The Ford plan takes acount of that. Now it day, but reliable, devices as tax cuts, import than 65-cent gasoline will come to pass. is the job of Congress to help make it work.

• 1654 EXTENSIONS OF REMARKS January 28, 1975 THE EMPLOYEE RETIREMENT IN­ (8) plans established by fraternal or other bilities, receipts, disbursements and other COME SECURITY ACT OF 1974 organizations (under Sec. 501(c)(8), (9); material necessary to fairly summarize the ( 18) ) which do not provide for employer "annual report" within 210 days after the contributions. end of each plan year; and HON. WILLIAM F. GOODLING Specifically excluded from the funding (5) upon written request and within 30 standards are: days, a copy a! the plan description, annual OF PENNSYLVANIA (9) profit-sharing, stock bonus, and other report, bargaining agreement, trust instru­ I N THE HOUSE OF REPRESENTATIVES individual account plans (except for money ment, or other plan documents for which Tuesday, January 28, 1975 purchase plans), and a reasonable charge may be made; and ( 10 certain qualified level premium indi­ (6) the information in (5) in the prin­ Mr. GOODLING. Mr. Speaker, for the vidual insurance contract plans, and cipal office of the administ rat or and certain benefit of my constituents I would like to (11) plans that have not after the date other places; and submit the following brief guide to the of enactment provided for employer contri­ (7) upon writ ten request (but not more Employee Retirement Income Security butions. than once every year) and within 30 days, a Also excluded from coverage under plan statement of total pension benefits accrued Act of 1974. Hopefully this information tertnlnation Insurance are: and the time and amount of vesting; and will be of assistance to the many people (12) individual account plans (e.g.: profit­ (8) a statement as to a terminated vested who have inquired about the new law. sharing stock bonus, and money purchase participant's benefits and rights within a The article follows: pension plans) , and prescribed period after the end of the plan GUIDE TO THE EMPLOYEE RETIREMENT INCOME ( 13) plans that have not after the date of year in which such participant terminated. SECURITY ACT OF 1974 enactment provided for employer contribu­ REPORTING tions, and HIGHLIGHTS (14) plans established by professional serv­ The administrator of a pension or welfare The new law establishes: ice employers and which have fewer than 26 plan is to file with the Secretary of Labor: Procedures for qualifying and registering active participants, and (1) an annual report within 210 days after plans with the Departments of Treasury and (15) plans established exclusively for "sub­ the end of the plan year which is to con­ Labor. stantial owners". tain an audited financial statement, a certi­ fied actuarial report and other scheduled fi­ Stringent standards for plan fiduciaries, ADMINISTRATION AND PROCEDURE including a broad definition of fiduciary and nancial items on forms the Secretary may detailed prohibited transactions. Jurisdiction regarding registration of plans require (E.G., a balance sheet and income Reporting requirements regarding condi­ (other than welfare plans) is generally statement, party-in-interest transactions, tions and operations of all employee benefit shared by the Internal Revenue Service transactions exceeding 3% of the plan's funds (pension, welfare, etc.) to both the (through the new Ofllce of Employee Plans assets, loans and leases in default, etc.); and Departments of Treasury and Labor. and Exempt Organizations) with the Depart­ (2) a plan description within 120 days Requirements regarding disclosure to plan ment of Labor. after the later of the plan's adoption or the The plan which seeks quallfication for tax effective date of the Act, and an updated participants of plan contents, participants' benefit purposes first files with the IRS in­ rights and procedures. summary at least every 5 years; and formation regarding the funding, vesting and (3) a summary plan description at the Minimum participation (eligibility) , vest­ participation standards of the plan and noti­ ing, and funding standards. time furnished to participants; and fies the plan participants of such action. (4) a description of modifications and A system of insurance of nonforfeitable In the period prior to qualification, upon (vested) benefits, and contingent employer changes in the plan within 60 days after petition by a group of participants, the Sec­ such change. llab111ty to the insurance corporation in event retary of Labor may intervene with the IRS of plan tertnlnation. The administrator of a plan other than in behalf of the participants regarding the a welfare plan is to file with the Secre­ A role for the Department of Labor, the vesting, funding or participation provisions new pension insurance corporation, and par­ tary of Treasury: of the proposed plan. In addition, the em­ (1) an annual registration statement with­ ticipants in the qualifying and registration ployer, the employees, the Labor Secretary, procedures. in a time prescribed by the Secretary and or the Pension Benefit Guaranty Corporation is to contain information on the names and Regulatory authority in the Departments may petiltion the U.S. Tax Court to obtain a of Treasury and Labor with obligation to co­ Social Security numbers of terminated par­ declaratory judgment in regard to a plan ticipants with deferred vested benefits; and ordinate regulations and reporting. qualification. Coverage of all employee benefit plans (2) a notice of a change in status of a If the IRS finds a plan qualified, it is to plan (e.g.: merger, termination, change in which seek tax qualification or which are certify this fact to the Department of Labor, subject to jurisdiction under the Commerce names etc.), and which must accept this certificaJtion as con­ (3) an annual return containing such fi­ Clause. clusive evidence of initial compliance with Means by which individuals not covered nancial and other information as the Sec­ participation, vesting, and funding standards. retary may prescribe and to be filed within by a retirement plan may set up their own When a plan does not seek IRS qualifi­ plans and obtain preferential tax treatment. cation for tax purposes, the Secretary of La­ a period prescribed by the Secretary, and New limits on deductibility of contribution bor can through the Federal courts require (4) an actuarial statement of valuation be­ to retirement plans. compliance with the participation, vesting fore 30 days prior to a merger, consolidation, Excise penalties and equitable remedies and funding standards of the blll. or transfer of a plan's assets or liabilities; as additional methods to enforce prohibited Plans which are qualified under the tax and transaction rules and the minimum eligibil­ (5) an actuarial report containing a state~ law are to be audited by the I.R.S. Generally, ment of valuation, an actuarial opinion, and ity, vesting and funding requirements of the the Department of Labor is to litnlt its in­ labor and revenue codes. volvement to matters dealing with individual such other information as the Secretary may Effective dates related to the specific titles prescribe to be filed in a time and manner benefits. prescribed by him (at least one every 3 and provisions of the Act. The Act gives authority to the Secretary years). COVERAGE of the Treasury to write regulations on par­ ticipation, vesting, and funding except that The administrator of a plan covered under Excluded from the plenary coverage of the the Secretary of Labor is directed to prescribe plan termination insurance is to file with Act are: regulations in a few select areas. The two the Pension Benefit Guaranty Corporation ( 1) governmental plans; departments are to coordinate their activi­ an annual report which includes a state­ (2) certain church plans; ment disclosing the occurrence of any "re­ (3) non-U.S. plans primarily for aliens; ties and any regulations prescribed by one portable event". (4) workmen's compensation and unem- department are to be binding on the other. The Secretaries of Labor and Treasury ployment compensation plans. DISCLOSURE TO PARTICIPANTS and the Corporation are directed to coordi­ ( 5) unfunded plans which provide bene­ The administrator of a pension or welfare nate the timing and content of the various fits in excess of the Internal Revenue Code plan is responsible for providing to partici­ reports required to be filed with each agency. Utnltations on contributions and benefits. pants and beneficiaries: Reports involving fewer than 100 partici­ Excluded from all but the reporting and (1) a "summary plan description" (writ­ pants would be simplified. disclosure requirements are: ten in a manner calculated to be understood FIDUCIARY RESPONSIBILITY AND TRUST (6) unfunded plans maintained by the by the average plan participant) within 120 days after the effective date (or 90 days after REQUIREMENT employer primarily to provide deferred com­ All assets of an employee benefit plan are pensation for select management or highl3 an individual becomes a participant); and to be held in trust by one or more trustees compensated employees. (2) an undated summary plan descrip­ Excluded from the participation, vesting, tion every 5th year, unless there have been subject to certain exceptions (e.g., insurance no amendments, in which case every tenth contracts) . The Secretary of Labor may ex­ funding and plan termination insurance re­ empt welfare plans from this requirement. quirements are: year; and (7) plans established by labor organiza­ (3) a summary description of any material In addition every plan must be maintained tions (under Sec. 501(c) (5) of the Interna.l modification of the plan within 210 days pm·suant to a written instrument which pro­ Revenue Code) which do not provide for em­ after the end of such plan year; and vides for one or more "named Fiduciaries" ployer contributions, and (4) a copy of the statement of assets, lia- who jointly and severally have authority to • January 28, 1975 EXTENSIONS OF REMARKS 1655 control and ma.na.ge the operation of the pension plans may exclude from participa­ for meeting the minimum funding standard plan. tion employees who are within 5 years of is provided for certain plans using acceler­ An individual is subject to the fiduciary normal retirement age. A "year of service" is ated funding methods which lead to a high rules if the individual is a trustee, a "named defined as a 12-month period during which degree of benefit security for participants. fiduciary" a person to whom a "named :fidu­ the employee has not less than 1,000 hours An enrolled actuary 1s to be retained by ciary" delegates duties or if the individual- of employment. the plan administrator on bebalf of the par­ Exercises any discretionary authority or VESTING-NONFORFEITABLE BENEFITS ticipants to evaluate the plan's fundillg control respecting management or disposi• Every employee benefit plan (other than status (at least every 3 years) and to offer his t ion of a plan's assets, or opinion as to whether the required figures a welfare plan) is to meet one of three min­ represent his best estimate of anticipated ex­ Renders investment advice for a fee or imum vesting rules. ot her compensation, direct or indirect, with perience under the plan. 1. Ten Year Service Rule--100 % vesting The amortization period may be extended respect to any moneys or other property of after 10 yee.rs of service. such plan, or by the Secretary of Labor if certain condi­ 2. Graded 15-yeru- Service Rule--25 % vest­ tions are met. The ma.y also grant a waiv­ Has any discretionary authority or discre­ ing after 5 years of service; then 5% ad­ ms tionary responsibility in the administration er, of the funding requirements on a year by ditional vesting for each year of service from year basis (up to 5 waivers in a 15 year peri­ of such plan. year 6 through 10, then 10% additional vest­ Fiduciaries are require to discharge their od) if certain hardship conditions can be ing for each year of service from year 11 demonstrated. A failure to meet the mini­ duties with respect to the fund solely in the through year 15, so that an employee is 100% interest of the participants and their bene­ mum funding requirements may result in an vested after 15 years of service. excise tax being levied on the employer. ficiaries and with the care, skill, prudence 3. Rule of 45---50% vesting after 5 years and diligence under the circumstances then service or, if later, when age plus service TERMINATION INSURANCE prevailing that a prudent man acting in a equals 45, such percentage increasing by 10% There is established within the Depart­ like capacity and familiar with such mat­ each year until100% is reached; additionally ment of Labor a Pension Benefit Guaranty ters would use in the conduct of an enter­ a participant under the Rule of 45 must be Corporation, to consist of the Secretaries of prise of a like character and with like aims. 50% vested after 10 years of covered service, Labor (Chairman), Treasury, and Commerce, A fiduciary is specifically required to di­ such percentage increasing by 10% for each The Corporation is to guarantee the pay­ versify the investments (except in the case additional year of covered service, so that ment of vested benefits (up to $750 a month) o! employer securities purchased by profit­ an employee is 50% vested after 10 yee.rs to participants of plans which terminate. sharing, stock bonus, or thrift and savings and 100% vested after 15 years regardless of A 7-member Advisory Committee, ap­ plans) so as to minimize the risk of large his age. pointed by the President, is established. losses unless under the circumstances it is A plan is permitted to change its vesting Annual premiums for the first 2 years are prudent not to do so. rule at any time if a provision is made that to be $1 per plan participant for single em­ A fiduciary (and a "disqualified person" accrued vested benefits not be reduced for ployer plans and 60¢ per plan participant for under the Internal Revenue Code) is spe­ participants at the time of change. In addi­ multi-employer plans. Plans may elect a sec­ cifically prohibited from letting the follow­ tion, any participant with at least 5 years of ond annual premium based on a percentage ing transactions occur in regard to a plan: service ma.y elect to remain under the pre­ of unfunded insured benefits and total in­ Dealing with the plan's assets for his own amendment vesting schedule with respect sured benefits, but such premium may not be account. to past and future benefit accruals. less than 50¢ per participant for single and Acting in any plan transaction on behalf of A year of service for vesting purposes is 25¢ per participant for multi-employer a party adverse to the interests of the plan defined as at least 1,000 hours of employ­ plans. or participant. ment in a 12 month period. A participant is Later, the Corporation may revise the pre­ Receiving personal consideration from any to accrue benefits for each year of participa­ mium rates and create new rates based on party dealing with the plan in connection tion (after the first year) in which at least (1) number of participants, or (2) unfunded with a plan transaction. 1,000 hours have been worked. A plan is insured benefits, or (3) total insured bene­ Transferring property to any party-in­ required to meet one of three benefit ac­ fits. Such revisions must be approved by interest. crual rules except that benefits for past serv­ Congress. Permitting the acquisition of property from ices must be at least one-half of the mini­ The employer remains liable up to 30% any party-in-interest. mum. of net worth for any unfunded insured vested Extending or receiving credit from a Once accrued benefits become vested, they benefits of a terminated plan. The Corpora­ party-in-interest. cannot be reduced or forfeited on account tion is to establish contingent liabllity in­ Furnishing of goods, services, or facilities of "bad boy" clauses or other conditions surance covering this employer liability. by a party-in-interest. (with limited exceptions). A plan must pro­ Conditions of coverage are to be defined by Acquisition of employer securities exceed­ vide for a "buy-back" permitting recapture the Corporation and include payment of ing the new limitations (generally 10% of the of forfeited vested benefits (where vesting is the contingent liabllity premium for five assets of the plan) . less than 50%) if the plan provides for such years. Coverage may be elected from the date . A fiduciary may, however, engage in certain forfeiture when the participant withdraws of enactment with premiums set and col­ otherwise prohibited transactions; he may, his own mandatory contributions. lected on a retroactive basis. The Corpora­ e.g., receive benefits from the plan so long as Present rules regarding plans which co­ tion is to explore the possibility of providing the benefits are consistent with the terms of ordinate with Social security benefits are contingent liability insurance through the the plan, permit loans to participants if they changed. The· benefits of a terminated par­ insurance and banking industries. generally benefit the plan, receive reasonable ticipant are to be calculated without taking Employer liability is to be payable over a compensation for services rendered, etc. The into account increases in Social Security period of time specified by the Corporation. list of exceptions to otherwise prohibited benefits after the date he terminates. A lien with the same effect as a tax lien is transactions can be expanded by agreement · Another study (to be completed within 2 imposed at such time as the employer ne­ of the Secretaries of Labor and Treasury years) which could impact on vesting re­ glects or refuses to make payments on de­ when to do so would (1) be administratively quires the Department of Labor to deter­ mand. feasible, (2) be in the interest of the plan, mine the feasibility of issuing regulations to In the case of a voluntary termination, and (3) protect the rights o~ participants insure that employees under Federal procure­ the "date of termination" agreed to by the and beneficiaries. ment and other contracts be protected employer and the Corporation is the date on A fiduciary is personally liable to the plan against forfeiture of pension rights. which the plan's benefits and assets are val­ for any breach of fiduciary duty while a dis­ The Act requires that a plan pay all bene­ ued, the employer's liability is established qualified person (who is generally a party-in­ fits (including deferred vested benefits) in (but with the net worth of the employer interest) is subject to an excise tax penalty. a joint and survivor form at age 65 or, if determined up to 120 days before such date), Trustees may allocate their responsibil­ earlier, the normal retirement age under and the lien is imposed. The benefits guar­ ities and other fiduciaries may allocate or the plan. A pre-retirement survivor option anteed on such date are the vested benefits delegate their responsibilities; however, a is also to be available to participants attain­ under the plan up to the lesser of $9,000 per fiduciary remains liable for the illegal acts ing early retirement age. year or 100 % of the high 5-year compensa­ of a co-fiduciary if he knowingly partici­ FUNDING tion. pates in or conceals such illegal acts. All covered pension plans must make an­ Benefit increases within 5 years of a plan Plans are protected against less by reason nual minimum contributions equal to nor­ termination are insured 20% for each year of fraud or dishonesty by requiring fiduci­ mal cost plus 30 year (for single employer they were in effect prior to termination. aries who handle funds to be bonded. plans) or 40 year (for multi-employer plans) The Corporation must also provide assist­ PARTICIPATION amortization of unfunded accrued liabil­ ance to individuals with respect to evalu­ An employee benefit plan (other than ities for all plan benefits. Plans may amortize ating the desirability of using various "port­ welfare plans) is not to require as a condi­ liabilities existing on the effective date over ability provisions" (e.g. individual retire­ tion of participation an age greater than 25 40 years. Experience gains and losses are to ment accounts) under the Act. or a period of service longer than 1 year (3 be amortized over no more than 15 years INDIVIDUAL RETIREMENT ACCOUNTS years for plans which provide for immediate for single employer plans and 20 years for An employee whose employer doesn't have 100% vesting) whichever is the later. Certain multi-employer plans. An alternative method any qualified pension, profit-sharing, or sim- 1656 EXTENSIONS OF REMARKS JanuaTy 28, 1975 ilar plan is entitled to set up his own plan. Employer liability and other provisions, produce an ideal decislonmaking environ­ Contributions up to the lesser of 15% of on enactment. ment, I believe it was worthwhile to get compensation of $1,500 may be contributed Multi-employer plans 1/1/78, but secre­ everyone's views out on the table. It also to an individual retirement account, annu­ tary may use discretionary authority to pay demonstrated that the present inflation is ity, or bond program and may be excluded benefits before then. not a problem susceptible to a quick or from the employee's gross taxable income. Pre-emption of State Laws: 1/1/75. easy "fix". Earnings on these accounts are to be tax free. Individual Retirement Accounts: 1/1/75. As for getting a consensus from that many Distributions from such accounts because of Limitations on Benefits and Contributions: independent minded people on a subject as ret irement after age 59¥:! or disability at Plan years beginning 1/l/'76. complex as how to stop inflation, I suspect any age are to be taxed as ordinary income. that anything resembling agreement would A 10% excise tax is levied on premature dis­ be most likely to be a sort of eclectic anthol­ t ributions. ogy of economic wisdom, and I'm not at all The employee and the trustee (who must sure that is a good idea.. be a bank or other quallfled person) must THE REGULATORY AGENCIES AND If we are going to make it up the long guard against the fund engaging in certain INFLATION haul ahead of us, it is more assuredly not prohibited transactions. These plans may not going to be in an economic policy vehicle purchase life insurance, but certain endow­ that has John Kenneth Galbraith's engine ment type contracts to the extent of their HON. MILLICENT FENWICK block, Otto Eckstein's clutch, Dick Gersten­ non-life insurance elements are permissible berg's drive shaft and Leonard Woodcock's investments. OF NEW JERSEY transmission. CONTRmUTIONS FOR THE SELF-EMPLOYED IN THE HOUSE OF REPRESENTATIVES That kind of compromise approach re­ minds me of the husband and wife, one of The present contribution limits to self­ Tuesday, January 28, 1975 whom wanted to paint the house red, and employed (H.R. 10) plans is increased from Mrs. FENWICK. Mr. Speaker. we all the other blue. Since neither would settle $2,500 to $7,500 (or 15% of earned income for the other's color, they mixed the two if less). know the consequences of the current 12- percent rate of inflation as we watch its paints together and got purple, which was LIMITATIONS ON BENEFITS AND CONTRmUTIONS relentless attack on our family budgets ugly but okay because neither one of them Pension, profit-sharing, 403(b) annuity, liked it. self-employed, and all other tax qualified and savings. We can all agree that the In economic planning as in painting, the plans are now subject to certain overall rate of inflation must be slowed and only thing to be said for that approach is benefit and contribution restrictions. Gen­ that fairness must be exercised in what­ that it is equitable. eraly, a pension plan may not provide bene­ ever anti-inflation package we choose. Certainly there is no shortage of sugges­ fits greater than $75,000 per annum. Contri­ But we disagt·ee on the types of programs tions for how to deal with inflation. butions on behalf of an individual to a profit­ we need and on the merits of specific On the front shelf is the traditional medi­ sharing or other defined contribution plan proposals. We also disagree about the cine, prescribed since time immemorial for is limited to the lesser of $25,000 or 25% the symptom of uppity prices: tight money of compensation. All plans of the employer causes of our present economic difii­ and a balanced budget. There are those who are combined for the purpose of testing the culties. doubt the effectiveness of this old cure in a limitations. A lower limit equivalent to One cause which has drawn only lip cost-push world, but its proponents still out­ 140% of the limit under one plan is appli­ service, is the inefiiciency generated by number its detractors. cable when an individual is a member of both the regulatory agencies. In a speech be­ In addition, there are some, myself among a defined benefit and defined contribution fore the Financial Analysts Federation in them. who also believe that infiation can be plan. The above dollar limitations are to be Detroit on October 7, 1974, the Chairman reduced by purging the economy of anti­ increased with the cost of living. competitive behavior. The FTC and the Jus­ of the Federal Trade Commission, Mr. tice Department's Antitrust Division are ENFORCEMENT Lewis Engman, quoted private estimates both looking with especial care for the types Criminal sanctions may be ·imposed on that regulation of transportation alone of trade restraints, collusion and unfair mar­ persons who willfully violate the reporting costs the consumer $16 billion a year and keting practices which reduce competition and disclosure provisions of the Act or who said: and lead to higher prices for consumers. use coercive force to interfere with employee Some have suggested that import duties rights under the Act. The fact of the matter is that most regu­ lated industries have become federal pro­ and quotas be lifted to permit entry of more Violations of the funding standards and lower priced foreign goods. prohibited transaction rules may result in tectorates, living in the cozy world of cost-plus, safely protected from the ugly Others cast their vote for the reimposition the imposition of excise tax penalties. A plan of controls or, at least, for some form of may also be disqualified if it does not meet spectors of competition, efficiency and inno- guidelines. certain other requirements of the Internal vation. · But the suggestion enjoying perhaps the Revenue Code. This is a harsh assessment. but we need greatest vogue at the moment is that lnfia­ In addition to the above, the Secretary this type of scrutiny if we are to get at tion can be curbed by reducing the govern­ of Labor or any participant or beneficiary ment's Involvement in the economy; more may bring a civil action to enjoin any act the roots of our economic difiiculties. The specifically, by reducing its regulatory role. which Violates any provision of Title I and appropriate congressional committees It is not just the survival-of-the-fittest, to recover denied benefits. Dollar assessments should initiate oversight hearings on the every-man-for-himself freemarketeers who and the removal of fiduciaries are but two regulatory agencies to identify and elim­ make this suggestion. It has the support of examples of the types of penalties that may inate Federal rules and regulations which many people generally viewed as liberal and result from such civil actions. unjustifiably increase consumer costs. interventionist in their approach to the EFFECTIVE DATES I wish to share Mr. Engman•s speech economy. Participation and Vesting: with my colleagues and insert it into the It has received the blessing of Ralph Nader. And it is about to Be endorsed by Lew New plans, plan year beginning after RECORD at this time: enactment. Engman. Existing plans, plan year beginning after ADDRESS OF LEWIS A. ENGMAN And here's the reason. Though most gov­ 12/ 31/75. I imagine many of you followed with the ernment regulation was enacted under the Accrual of certain supplementary benefits same interest I did the summit and pre­ guise of protecting the consumer from abuse, may be deferred until expiration of contract summit economic conferences last month. much of today's regulatory machinery does but not later than 12/ 31/ 80. Probably you were not surprised at the little more than shelter producers from the Funding: fact that infiation-or perhaps, to put it normal competitive consequences of lassitude New plans, plan year beginning after more accurately, "stagfiation"-was widely and inefficiency. In some cases, the world agreed to be the country's number one prob­ has changed reducing the original threat of enactment. lem. abuse. In other cases, the regulatory ma­ Existing plans, plan year beginning after You should not have been surprised either chinery has simply become perverted. In still 12/ 31/75. that there was little agreement on how to other cases, the machinery was a mistake Collectively bargained plans, at expiration deal with it. You get that many economists, from the start. In any case, the consumer, of contract but not later than 12/31/80. businessmen and labor leaders together and for whatever presumed abuse he is being Reporting and Disclosures: 1/1/75, but you will be lucky if you can get them to agree spared, is paying plenty in the form of gov­ Labor Secretary to issue regulations imme­ on where to go to lunch. ernment-sanctioned price fixing. diately. Can you imagine acting as moderator for Take the airline industry for instance. Un­ Fiduciary Standards: 1/1/75. that group? I can think of less frustrating der the Federal Aviation Act, the Civil Aero­ Termination Insurance: jobs. Like being the construction foreman on nautics Board controls the entry of new Single employer plans-- the Tower of Babel, for instance. carriers to the market, controls the distribu­ Benefits to be paid for plans terminated I don't want to be unfair to the summits. tion of routes and has the power to dis­ after 6/ 30/ 74. Although gatherings like that do not exactly approve or modify an airline's rate change January 28, 1975 EXTENSIONS OF REMARKS 1657 proposal after hearing complaints from the Did that happen? No sir. Instead of freeing more milk could be sold if it were not for the so-called competition. the railroads from regulation, Congress, in elaborate government programs designed to The result is that in the areas of rates the Motor Carrier Act of 1935, just cast the maintain higher than competitive prices on and routes for all intents and purposes there regulatory net wider to include the inter­ the producer, processor and on the retail is no competition at all. Competition, where state truckers as well. levels. it exists, is concentrated on the one unregu­ As a result, today we have a situation in I mention only a few. Former Council of lated aspect of airline activity, customer which market entry by new trucking firms is Economic Advisers' member Hendrik Houth­ service. That is why the average airline com­ restricted by the ICC at the same time that akker has campiled a list of 45 regulatory m ercial looks like an ad for a combination rates are being fixed by the carriers who are policies that contribute to in:flation. bawdy house and dinner theatre. given antitrust immunity to do so. Though The list of noble goals advanced to support This may lead to some pleasing amenities. the ICC has authority to investigate rate these regulatory subsidies is virtually with­ Bu t it puts the customer in the position of findings by the carriers, according to testi­ out end. I'm as humane as the next guy. I am captive buyer. Nobody asks him if he would mony given before a House Committee two not criticizing these goals. A responsive gov­ rat her have the money than the movie, or years ago, the Commission was doing so in ernment must take action to address the de­ if he would like to brown bag it from New less than one percent of the cases. mands of the people. York to California instead of having the And what is the result? Well, when the But mischievous means are not justified by steamship round of beef au jus on the little Supreme Court held some time ago that noble ends. plastic plate. He is just asked to pay up. fresh dressed poultry was an agricultural To me, the most distressing development is If you have any doubt that one conse­ commodity under the ICC Act and thus not the pervasive and well-accepted dishonesty quence of the CAB's control over rates and subject to regulation, the average rate for that pervades the government's approach to routes is higher prices, you need only look shipping it fell by 33 percent. It is gratifying regulation. at what happened some years ago in Cali­ to note that the party who got the short The existing crazy quilt of anti-consumer fornia when Pacific Southwest Airlines, an end of the 5-4 decision was a certificated subsidies embodied in the intrically woven intrastate carrier not subject to CAB rate carrier who was trying to stamp out the com­ fabric of federal and state statutes and reg­ regulation or entry restrictions, entered the petition of an uncerti:ficated carrier who had ulations is pernicious because: San Francisco/ market with rates the temerity to haul chickens without a The subsidies are deliberately hidden from less than half those being charged by the license. public view; interstate CAB certified carriers TWA, West­ I have given you just a couple of examples. The government has irresponsibly lost ern and United. What happened? After at­ But, when you take all of the industries track of the actual cost of these subsidies; tempting to ignore PSA's lower fares, the subject to direct federal regulation-that's and CAB carriers were forced to cut their rates air, rail and truck transport, power genera­ In most, if not all, cases, we have adopted to meet the competition. Even today, to tly tion, television, radio, the securities indus­ the least efficient form of subsidy with the from L.A. to San Francisco it costs only about try and others-it works out to a substantial purpose of hiding the subsidy from the pub­ half as much on a per-mile basis as it costs fraction of the economy. lic and obfuscating its true cost. to fiy from Washington to New York. In fact, it is estimated that these regulated From time to time, proposals have been Of course, it is true that a major airline industries account for 10 percent of every­ made to provide direct cash subsides in lieu will try to make a fat profit on a high volume thing made and sold in this country. What of the patchwork of regulatory subsidies that run like Los Angeles/ San Francisco because makes them even more important from the now pervade our economy. Opponents rise it knows it is going to lose a bundle fiying point of view of infiation is that they tend indignantly to object that hard-working in­ between Black Rock and Where-am-I City to be industries whose prices show up as dividuals and businesses don't want hand­ which the CAB, with the full · support of costs buried in the prices of hundreds of outs. Well, a rose by any other name ... concerned and interested members of Con- other products. Our airlines, our truckers, our railroads, gress, requires it to do. ~ Take transportation for example. When our electronic media, and countless others Except in those instances where it encoun­ you change the price of hauling freight, that are on the dole. We get irate about welfare ters competition from a PSA, it will succeed change is going to show up in a lot of other fraud. But, our complex systems of hidden in this little book balancing act, charging one products. Moreover, it will show up not just regulatory subsidies make welfare fraud look customer to pay for the fiight of another once but again and again. By the time you like petty larceny. so the CAB can perpetuate a network of get a piece of meat from the pasture to the I have no way of knowing what the numer­ routes which no longer and perhaps never plate, it carries with it numerous transporta­ ous regulatory measures cost the consumer did conform to the pattern of demand. tion charges. each year. I have seen private estimates in­ Certainly, no interstate carrier need be And these industries subject to direct dicating that the annual costs in the trans­ excessively concerned about new competi­ regulation are only part of the story. portation area alone may exceed $16 billion. tion. The CAB has not approved entry of a There are, in addition, the dozens and I invite students of this kind of thing to new trunk carrier to the market since 1938. dozens of federal and state regulations, pro­ come up With their own :figures. Whatever And just last month, the CAB rejected an hibitions, proscriptions and requirements they are, I think we can all agree on this: application by Laker Airways, a privately­ all of which subvert competition in the name the costs are too high. owned British airline, to fiy regularly sched­ of a greater objective-though sometimes It There are free market purists who are rev­ uled New York/London fiights for $125 each is hard to see exactly what that greater eling in the groWing dischantment with way. That price, by the way, is little more objective is or on whose judgment its great­ heavy-handed regulation. They have con­ than one-third of the economy fare charged ness rests. I refer to things such as: tended all along that the market was the now by Pan Am, TWA, and the other mem­ State laws against advertising the prices fairest and most rational allocator of re­ bers of the international rate-fixing cartel. of eyeglasses or prescription drugs; sources; that you could no more improve its As if that were not enough, the CAB also The Jones Act forbidding foreign competi­ performance by regulation than you could has been moving in directions which would tion in the shipping business between U.S. ports; improve the performance of a :fine watch by raise prices in the heretofore unregulated poking around in its works With a paperclip. c~arter market. Recent!y, it approved discus­ The Federal Government's own "buy It seems to me that these arguments­ sions between scheduled and charter carriers American" procurement preferences which taken to the extreme-are both naive and in hopes that a mutually satisfactory rate­ can allow domestic producers to charge as destined to be ignored. They are naive be­ fioor ·for charter fiights could be agreed to. much as 50 percent more than foreign sellers cause they stress only the virtues of the long I hardly need add that any such fioor would for some items. I should add that many states have similar preferences; range adjustment facility of the market sys­ be higher than current rates. tem. They ignore the short term dislocations I would find it hard to imagine a more An agricultural price support program that market forces produce and they discount obvious instance of prices being pushed up which asks the consumer to buy with his legitimate social objectives that enlightened by regulation than the ::ase of the airlines. tax dollars what he does not want, cannot use and will never eat; and peoples choose to pursue. Voters do not live Unfortunately, I do not have to imagine on bread alone. And to the extent they do such a case, for we have the Interstate An agricultural export subsidy program live on bread, it is this year's bread, not next Commerce Commission. That body, as you which asks the consumer to pay the farmer year's. to sell his products to some foreign buyer know, was created way back in 1887 sup­ The market will not prevent bank failures posedly to protect shippers against the mon­ at a price lower than that at which the con­ or compensate their victims. It will not guar­ sumer himself can get it. opolistic power of the railroads. antee safe toys or unadulterated drugs. And But by 1935, the nation had sprouted a The effect of some of this regulation may it will not ensure a clean environment. network of highways, and the trucks which perhaps be seen in some recent events in If we want to be assured of these things, rolled over them were biting deeply into California. This summer the California Milk we may need some regulation. the market power of the railroads. Producers Association dumped 420,000 gal­ With the trucking field still wide open to Regulation may also be needed to protect lons of fresh skim milk into Los Angeles the consumer where natural monoplles exist new entrants, this might logically have been harbor. The dairy co-op said that it was the time to dismantle the ICC. The railroad that is, where economies of scale argu~ necessary to dump the milk "because no strongly for a market being served by a single monopoly was broken, competition could take market could be found for it." its course. . producer. Electric power and local phone At what price, I might ask. I suspect that service are good examples of this. 1658 EXTENSIONS OF REMARKS January 28, 1975 These are instances in which some would substantial progress is made, our regulators the nonletter delivery area: Private postal say that the benefits of regulation can be Will continue to stumble around in an in­ said to exceed its costs. creasingly expensive game of blind man's service corporations such as Consumer But the trade-off between benefits and bluff. Unless and until these facts are brought Communication Services Corp., based in costs is not always an easy determination to light, I see little hope for assuming that Ohio; Private Postal System of America, to mai".e. Moreover, neither the benefits nor public actions will match up to public ex­ Inc. based in Florida; and the American the costs wlll remain constant over time. pectations or the public interest. Postal Corp. serving the entire west Some of the costs, such as direct expendi­ coast, are growing rapidly in their vol­ tures, are obvious. Others, such as the costs ume of nonletter delivery. It is interesting the consumer pays for diminished competi­ tion, are not so obvious. to note that these private firms, as well The problem of weighing costs and bene­ POSTAL SYSTEM REFORM as many others, are making a profit by fits is made more complex because often it charging lower rates than the Govern­ is necessary to compare unlike qualities. ment is charging while at the same time, (How, for instance, do you give pain and HON. PHILIP M. CRANE the U.S. Postal Service increases its year­ suffering a monetary value?) Or because OF ILLINOIS ly deficits to over $1 billion. Furthermore, those who bear the costs may be far more IN THE HOUSE OF REPRESENTATIVES private carriers have proven to be more numerous than those who reap the benefits. Tuesday, January 28, 1975 reliable and more efficient. For example, (In order to spare one person 100 units of the U.S. Post Office has five times the discomfort, is it fair to assess 100 people Mr: CRANE. Mr. Speaker, today, the breakage fee and three times the acci­ more than one unit each?) business of the U.S. Postal Service is I don't know the answers to these ques­ part monopoly and part competitive. dent rate of the private package carrier tions. The point is that each and every regu­ United Parcel Service. lation or regulatory policy that contributes There is competition in the delivery for In addition, the U.S. Government has to inflation should be re-examined to make most fourth-, third-, and second-class a great deal to gain. While the Postal sure that the trade-off between costs and mail. Letter mail, categorized as first­ Service is now operating at a loss sub­ benefits which presumably brought about its class mail, however, is protected by a sidized by tax dollars, private carriers institution, is stlll valid. We may well find statutory monopoly and has no direct who made a profit delivering mail would that some of the more costly ones look a lot competition. The result of this Govern­ pay taxes on that profit; thereby putting less attractive in a world of 12 percent infla­ ment monopoly in the delivery of first­ tion than they did in a world of 3 percent additional revenue into the Treasury as inflation. class mail is twofold: one, Americans pay well as removing a serious drain on it. We should also re-examine them to see more for less service; and, two, private The only incentive to a private car­ whether those imagined trade-offs were ac­ individuals and groups are denied the rier for entering the letter delivery field curate in the first place. For instance in the freedom to perform this function. would be the ability to perform the same case of the ICC, rates wasted no time in Everyone is horrified by unjust gallop­ service more efficiently at less cost. Pri­ going up immediately after the agency's ing inflation with dramatic increases in creation. vate businessmen know that an inability the price of everything, but the cost of to produce for less lost would mean no When truckers are permitted to fix prices mailing a letter has soared so dramati­ and are subject to a panoply of regulations 1·ealistic competition even if it were legal all because the transportation mode with cally that it leaves most other items at to compete. Thus, the public has noth­ which they compete once had excessive mar· the starting block. Five years ago it cost ing to lose from removing present limits ket power, one is hard pressed for a logical just a nickel to mail a letter first class; and a great deal to gain. One report explanation. When airlines are going broke today it costs a dime. That is a too­ done by McKinsey and Company projects despite the fact that they charge twice as percent increase. At the same time as that a private carrier could make an much as others are willing to fly for, some­ this doubling of costs, postal service has thing is seriously wrong. 18-percent return on an investment for been dramatically cut. In some areas delivery of local mail for a cost to users The fact of the matter is that most regu­ pickups and deliveries have been reduced lated industries have become federal protec­ approaching half of the present cost. torates, living in the cozy world of cost-plus, from five to one a day. In short, the U.S. Harlan Lewis, the president of the safely protected from the ugly specters of Postal Service with a Government mo­ Wichita Independent Postal System of competition, efficiency and innovation. nopoly over all letter mail has bred high America, says that his system can de­ There are those who hold the businessman cost, inefficient and unreliable service. liver mail for approximately 4 cents per to be so unprincipled and greedy that they I propose that :first-class mail be regard any governmental interference with letter. The organization has franchises opened up to private competition. I have in 52 cities, and believes that it can de­ his free movement as an addition to the so­ introduced legislation to this effect in cial welfare. liver mail more efficiently than the Gov­ Experience would seem to contradict that the House of Representatives and I con­ ernment--at lower prices and at a profit. point of view. In point of fact, the effect of tinue to work for its passage. Today you The argument that a number of car­ government interference frequently has been have a choice between sending a pack­ riers would provide less convenient serv­ to remove the one thing that stood in the age by Government parcel post or by pri~ ice is ridiculous in concert and in prac­ way of the anti-social exercise of greed; I am vate parcel service. I want to give you tice. If private carriers could not per­ referring to competition. Meanwhile, the this same choice for letters. Open com­ scheme of regulation has proven at least as form to the satisfaction of their cus­ petition has always been the condition tomers, then such customers would cease susceptible to the lure of protectionism as which best serves the customer. There­ the priv.ate interests it replaced. to use their service . .In fact, there are few As sult of free competition in the area of who would express the view that the a political matter, we will not be able letter delivery, I am confident, will be to pare away Ol:U' excessive regulatory fat u.s. Postal Service is operating to pro­ unless the public can be assured of adequate better, more reliable service at a lower vide maximum convenience. Indeed, protection against the abuses that regula­ cost to you. documentation of the U.S. Postal Sys­ tion was designed to curb. The public would gain substantially tem's inefficiencies and frequently cited We at the Federal Trade Commission can from removing the present Government help provide that assurance. Through a vigor­ slip-ups seems to support the argument monopoly on first class mail. A study by that the present Government monopoly ous antitrust policy, we can help prevent the the U.S. Postal Rate Commission staff aggregations of private market power which on letter delivery operates to guarantee permit consumer abuse and create a need showed an over-charge to first class mail inconvenience. for regulation. users by the Postal Service of about 2 The argument that competition in the But there wlll still be cases in which regu­ cents per letter in 1972, in the days of the delivery of mail would make difficult such lation is necessary. For those cases, the ad­ 8-cent stamp. that overcharge paid for, things as regulation of junk mail, mail vice I would offer is that the costs of the among other things, a contract cost over­ regulation-and I mean the direct costs, the \Safety, shared facilities and interna­ run that has exceeded $140 million since rtional mail is stated without justifica­ indirect costs, the present costs and the fu­ the Postal Service was established in ture costs-be fully understood and consist­ tion or explanation. Congress has every ent with what we hope to gain. The task 1969, and third and fourth clas~ mail right and power to regulate all mail won't be simple. Cost calculations of the type rates that are too low to cover their own carriers-private and public-in connec­ I propose are likely to be imperfect. We cur­ handling and delivery. tion with these facets of mail delivery. rently lack not only accepted calculation What has been unprofitable for the This view is supported by a subcom­ methodologies but also much of the raw data u.s. Post Office has already proven prof­ mittee of the Permanent Select Commit­ necessary to informed estimates. But unless itable for a va1iety of private carriers in tee on Small Business who reported on January 28, 1975 EXTENSIONS- OF REMARKS- 1659

October 16, 197-4, after lengthy hearings, NO ENERGY EXHAUSTION can on)y_ be converte~ from one form into that- another. So the enem).es of technological ad­ It would now be appropriate to seriously vance have taken refuge behind another consider ending this monopoly 1on first class physical law, the Second Law of Thermo­ mall delivery) and a1ford private enterprise HON. STEVEN D. SYMMS dynamics, which, roughly speaking, says that the opportunity to perform this vital func­ OF WAHO in every conversion of energy from one form tion. Witnesses testified as to the willingness IN THE HOUSE OF REPRESENTATIVES to another, some fraction must irretrievably and abllity of private enterprise to assume be turned into heat. Therefore, goes the this function and the ability of private firms Tuesday, January 28, 1975 story, if we convert too much energy, we to successfully compete with the Postal will generate so much waste heat as to en­ Mr. SYMMS. Mr. Speaker, the Jan­ danger the world by changing Its climate. Service in the carriage of other classes of uary 1975 issue of Imprimis, published mall; and the ability of these privately There are, indeed, some problems with owned firms to do so profitably demonstrates by Hillsdale College, 1s devoted to a dis­ high concentrations of waste heat; there are that the private sector of our economy de­ cussion of the energy situation. Dr. Peter also ways of turning waste hea-t into useful serves the opportunity to relieve Government Beckmann of the University of Colorado heat. But the gist of the argument is a of this increasingly costly and burdensome makes the point that there is no short­ colossal exaggeration. To reach even one per­ task ..." age of energy materials, only a shortage cent of the energy incident on the globe from the sun, we would have to convert en­ I will reintroduce legislation to open of production. It reads as follows: ergy on a mind-boggUng scale: every Amer­ up delivery of letters to private compe­ No ENERGY EXHAUSTION ican man, woman, child and infant on the tition. My blll, if passed. would consti­ (By Peter Beckmann) breast would have to consume, from mid­ tute an important step toward an effi­ The present malaise of society includes a night to midnight, no less than 2 MW of cient postal system, a system that would strong anti-scientific trend. Reputable uni­ power, which he could do by running 600 versities o1fer courses in astrology while their clothes dryers all day and all night, or by bring into play the energies and tech­ cleaning his teeth twice a day with 15 mil­ nological expertise of our dynamic pri­ enrollment in the hard sciences and engi­ neering is decreasing. Science is increasingly lion electric toothbrushes. And the rest of vate sector, and permit the free, compet­ coming under attack. Not only from outsiders the world would still have to consume twice itive market to operate, insuring for us who do not understand science-that type of as much. that our mail can be delivered with maxi­ attack as old as science itself-but now But enough of countering unfounded mum feasible speed and accuracy at also from disrupters within. Holders of sci­ charges. Let us take a look at the amount of minimum cost. I will continue to work entific degrees are telling us that the trouble energy available to us. The sun will shine for passage of legislation to open up with the world is too much science and tech­ for another 50 billion years, and nuclear nology. Nobel prize winners are lending their fusion cannot run out of fuel as long as first-class mail delivery to private there is water in the oceans. To bridge the competition. names to anti-nuclear organi21ations whose emotional propaganda blatantly disregards gap of the next three decades before these the facts. The authors of The Limits to sources can effectively be harnessed, there Growth fed their computer programs with is enough uranium to fuel hundreds of nu­ carefully manipulated data that would bring clear plants, there is enough coal in the ·. U.S. to last for several centuries, and the KENNETH COX OF MARSEILLES, about the preconceived result of catastrophe under all conditions. oil deposits in the continental shelves are ILL., TO BE HONORED Blatant disregard of the facts is what the estimated at 100 bllilon barrels, together various anti-growth and anti-technology with trillions of cubic feet of natural gas. movement& have in common. At a time when There is more oil in the oil shale of the HON. TIM L. HALL the fertility rate in the U.S. has dropped mountain states than in the entire Middle OF ILLINOIS below the replacement value, we an! being East. Uranium can be mined in low concentra­ IN THE HOUSE OF REPRESENTATIVES scared by the evils of population growth, vividly expounded by those whose attitude is tions at a higher cost, for fuel costs repre­ Tuesday, January 28, 1975 "there's too many of you others." Lake Erie sent only a minor part of the operating costs of nuclear power plants, and breeders run­ Mr. Mr. is declared dead at a time when it has more HALL. Speaker, in 1910 Wil­ fish than all the other Great Lakes com­ ning on thorium could extend the supply liam D. Boyce of Dlinois first incorpo­ bined. The dangers of nuclear power, far and to some 2,000 years. Coal can be gasified rated the Boy Scouts of America mark­ away the safest form of large-scale energy and liquefied with little pollution to produce ing the official beginning of th~ scout­ conversion yet invented, are magnified by gas, oil, gasoline, methanol, hydrogen, and ing movement in America. Mr. Boyce was those who callously disregard the 50,000 coal other fuels. It can also be utilized in situ an extremely active man and among his mlners afflicted with black lung and the 100 with minimal environmental effects. In situ many activities he was president of the times higher accident rate (per energy pro­ processing of on shale is under investiga­ duced) in coal mining. Pollution is blamed tion and appears feasible. As for offshore Marseilles, m., Land and Water Power oil, the technology of preventing oil spills, In La is on technology when, in fact, only more and Co. Salle County, which part of superior technology can eliminate it. and cleaning them up quickly if they do the 15th District I now have the honGr Among the most cherished myths of the occur, has come a long way since the Torrey of serving, is a statue of Mr. Boyce com­ technophobes is the ancient theory of the Canyon and the Santa Barbara oil spills. memorating his fine work. bottom of the barrel. If we don't watch our Clearly, then, there is no lack of energy; Mr. Speaker, as is so often the case, step, we are told, we will deplete this there is not even a lack of clean energy. many men and women live their lives planet's finite resources. But what if we do But the access to that energy is blocked by and make substantial contributions and watch our step? There is obviously some­ non-technological obstacles, chief among no statues are erected. One such man is thing wrong with this theory, for if we do which are, in my opinion, government h1.ter­ watch our step, we will merely deplete the ference with free markets, and environ­ also an active dtizen of Marseilles, Mr. barrel somewhat later; why is it better to mentalist technophobia. Kenneth Cox. Kenneth Cox is an out­ die over a slow fire since, by this theory, the Until last year, the price of oil was con­ standing citizen who has proVided dec­ bottom of the barrel will be reached sooner trolled at an uru·ealistically low level, result­ ades of service to his community. or later anyway? We are given no answer to ing, on one hand, in the rapid decline of Nine years after William Boyce in­ this question, for example, by the authors of exploration and capital investment, and on corporated the Boy Scouts, Kenneth Cox The Limits to Growth, whose most desirable the other, in making oil so "cheap" that it became a member of the Marseilles world model shows a semi-starved, semi­ was burned under the boilers of power United Methodist Church. During the polluted world whose resources are relent­ plants. Oil now has a two-tier price struc­ r:a.st 40 years, Mr. Cox has been the lessly going down and down. ture which, broadly speaking, rewards those scoutmaster for the church's troop. He The fact is that the barrel has a very who produce a little oil and punishes those elusive bottom, for non-renewable does not who produce a lot of it. This year the num­ has helped to shape and guide the lives mean irreplaceable. Moreover, history shows ber of small wells drilled has, for the first cf hundreds and hundreds of young men that with very few exceptions (such as whale time since the 60's, surpassed 30,000; but and that is his great contribution and a oil) raw materials were replaced not because the total domestic oil production continues better testimonial than a statue. they ran out, but because something better to decline. This is not surprising; if govern­ On February 9, the Marseilles United became available. The change from glass ment decrees fixed the price of potatoes Tv'Iethodist Church, whose pastor is Rev. bottles to plastic bottles, for example, did grown in fields, but allowed a free market Thomas E. Lowrey, will hold a dinner 1n not come about because the world ran out in potatoes grown in flower pots, there of sand from which to make glass. would be a flower-pot-potato boom, but the honor of Kenneth Cox and his fine work. Untenable as the bottom-of-the-barrel my total potato production would decline. I want to add voice to all of Kenny's theory is for mineral resources, it becon1es The electric power industry is shackled good friends and thank him for the quiet absurd for energy, for it would violate a hand and foot by a myriad of regulating service he has contributed over the years. physical law: Energy cannot be destroyed, it agencies. The rates charged are not deter- 1660 EXTENSIONS OF IrnMARKS January 2.8, 1975 mined by the need of new capital invest­ like everybody else, will gain when prices so profound confronted us at once. The ments, but in public hearings which have come down aga.in by increased supply. The American economy is in deep trouble. The become forums for propaganda against cor­ al~ernative is an energy shortage with higher price of oil is shaking the international fi­ porate profits, and the regulatory find it pop­ pnces, anyway, and that hits the poor even nancial structure. Future world supplies of ular to "pass the profits on to the consum­ hard~r . Government taxes on gasoline will energy and food are in doubt. War threatens ers." Until people wake up to what the so­ ~ot mcrea.se the supply; if past experience the Middle East. Relations between the called consumer advocates are doing to them, 1s any guide, they will be used for further United States and the Soviet Union are de­ the utilities will continue to do what they wars on poverty that cure nobody's poverty teriorating. are doing now: cannibalize their capital except that of its administrators. In the midst of all this, the leaders of the spending budgets under a policy that 2. Open up the continental shelves for oil American Government are thinking about­ amounts to save now, run out of power later. exploration; open up the vast deposits of Vietnam. Vietnam? Vietnam. A second obstacle is environmentalism, low-sulfur coal in the West. In North Dakota, Our obsession with a country so remote which originally had the laudable aim of a the land covering five million tons of coal from American interests has been a puzzle clean environment, but is now being used as supports only five cows. Not all strip mining for years. That it should go on now, as half a horse on which to crusade a gainst business, is of the West Virginia kind. In Wyoming, a dozen real problems strain our resources profits, industry, technology, and similar evils thet·e are 400-ft. coal seams close under the of leadership and character, shows how mad that allegedly plague us. It is beginning to surface, and they do not lie under Yellow­ an obsession it is. border on the impossible to construct a new stone Park; they lie in desolate and almost Indeed, many Americans will find it hard power plant, oil refinery, coal gasification uninhabited country. Speed up the devel­ to ~elieve that their leaders are once again plant or other energy facilit y. Much of the opment of in sit·u processes to produce oil ~rymg to deepen this country's involvement blame for this must go the character of pres­ from oil shale. 1n Vietnam, so irrational is the idea But ently required impact statement s, which al­ 3 . Make environmenta! restriction two­ that is exactly what is happening. The head­ ways stack the deck against the innovator sided: consider not only what a new energy lines are all too familiar. who wants to change the status quo. He is facility will do to somebody's view from his The State Department issues a grave warn­ required to demonstrate, and rightly ·so in window, but also what may eventually hap­ ing against truce violations by the Commu­ my opinion, that the innovation will not pen to him and everybody else if such facili­ nist side. Hanoi says that American recon­ unreasonably harm the environment or have ties are not built. Make judges sit on the naissance flights have resumec! in violation of other undesirable consequences. But he is horns of a genuine dilemma (that, after all, the peace agreement and of later explicit un­ put on the defensive: his opponents have no is t heir job), not on a deck always stacked in ?ertakings; U.S. officials deny it, then admit comparable responsibility in considering the favor of the status quo. 1t, saying that breaches by the other side undesirable consequences of not proceeding 4. Combat anti-technological and emo­ allow us to ignore the agreements. The with the innovation. A judge is required to tional attitudes by taking the facts and fig­ Se~retary of Defense warns that American decide whether a new power plant may harm ures t o the people. Show that pollution is opmion reacts "in anger to outright ag­ the marine life of the adjacent river if the not a necessary by_product of technology, gression." plant is built: he is not required to decide but t hat more and better technology is The immediate purpose of all the or­ how many women might one day die in child­ needed to combat pollution. Calculate the chestration is plain enoug-h. The Administra­ birth for lack of electric power if the plant price tags of abundant energy, and the even tion is going to ask Congress for a massive is not built. higher price tags of energy shortages. Use the emergency increase in military aid to Viet­ And so what we are wit nessing is certainly facts to dispel anti-nuclear supersitions. Do nam. It knows that it faces great resistance no exhaustion of energy, but blocked access not let Ralph Nader's phony fables go un­ b~ed on logic and experience. so it raises th~ to that energy. answered. How many people know, for exam­ cnes of alarm to a new pitch of shrillness. ple, that every time Ralph Nader flies to some Let me take one more example, the oil im­ If we do not act in 1975 to save South Viet­ ported from the Arab count ries, which is campus to deliver one of his speeches on the nam, they say, doom will arrive. But the produced at an operating cost of about 20 "radioactive society," he gets a 100 times argument remains as faulty a-S in 1955 or cents a barrel and sold for upwards of $12 bigger dose of radiation than he will get 1965, and the result of accepting it can only since the OPEC price-fixing cartel has quad­ in his lifetime from nuclear power plants? be more tragedy. rupled the price in a single year. Apart from We are not, after all, in most of these cases,­ dealing with opinions and hypotheses, but· The justification for intensified American exposing the U.S. to political blackmail, the intervention is that the Communists have flow of $100 billion to the OPEC countries with well defined and measurable quantities. Let me summarize my position. There is upset the peace agreement made two years this year threatens to bankrupt the econ..; . ago. But the evidence is rather the other omies of the industrialized countries and to no exhaustion, there is an abundance of energy; but the success to it is blocked by way on initial responsibility for the break­ bring famine to the underdeveloped coun- down of the truce. In the current issue of . tries for lack of fertilizers. It won't even do economic, political and ideological obstacles.­ Reason and technology can overcome these Foreign Affairs, hardly a radical journal, the OPEC countries any good, for their prim­ Maynard Parker writes: itive economies are utterly incapable of ab­ obstacles-though not overnight--and en­ sure abundant and clean energy for every• "Almost from the moment the agreement sorbing such astronomic sums. What can be was signed, President Thieu took to the of­ done about that? body. fensive in an attempt to eradicate the Com­ First, one can use strong language, as Pres­ mu_nist ink spots. . . . The second phase, ident Ford and other high U.S. otiiCials have which began on Jan. 4, 1974, with a speech recently done. This could goad the OPEC WHAT IS GOING ON IN SOUTHEAST by Thieu ordering the Army 'to hit them countries into taking an even stronger hand, ASIA? in their base areas' and ended in May, 1974, but more likely, they will merely laugh it resulted in a market increase in large-scale off. offensive operations ...." Second, one can wait for the cartel to break HON. BELLA S. ABZUG President Thieu also blocked implementa­ up. The same greed that gives rise to a cartel OF NEW YORK tion of the agr_eement's political provisions, in the first place eventually causes its mem­ IN THE HOUSE OF REPRESENTATIVES including creation of a new national council bers to cheat on each other. Libya is already and assurance of free movement between cheating, and Saudi Arabia is chafing at the Tuesday, January 28, 1975 zones in South Vietnam. In fact he prohib­ high prices. Even so, it could be a long walt. Ms. ABZUG. Mr. Speaker, there are ited any public mention of the agreements Third, there is a. forceful military solution, ominous signs that the administration terms. Mr. Parker says the other side "evi­ which is, at present, unthinkable for any­ dently did think there would be at least a body acquainted with political realities. is contemplating a renewal of direct in­ period of peace and were unprepared for­ Fourth, the oil-consuming countries might volvement of our military forces in and staggered by-the aggressiveness c..::'' band together and take countermeasures. Southeast Asia. With the support of my Thieu's military operations. They might, but they won't . Last October, colleagues, I am planning to introduce But however the agreement has been vio­ the EEC countries voluntarily rushed in a a resolution of inquiry dh·ecting the Sec­ lated, the fundamental fallacy is the notion mad scramble to get what they could each retary of Defense to furnish specific in­ that more American intervention can bring for themselves, leaving, for example, their formation on the extent of our involve­ peace. We tried that. If the blood we spilled member country Holland high and dry with­ had any meaning, it must have been to teach out oil in violation of all their solemn ment thus far. To illustrate the need for such a resolution, I would like to us that our involvement in Vietnam only treat ies. Not much hope from that quarter. escalated the level of fighting and prolonged introduce into the RECORD today an ar­ And that, I believe, leaves only one alter­ it. native to cut OPEC-fixed oil prices: open up ticle by Anthony Lewis, which appeared To escalate the American role now is to t he abundant U.S. energy sources until the in the New York Times for January 16: chase the old delusion that we can ilnpose cart el crumbles under the pressure o! supply [From the New York Times, Jan. 16, 1975] our settlement on the Vietnamese. If we start and demand. How can that be done? It can MADNESS IN GREAT ONES down that road again, no one should expect be done, in my opinion, as follows: (By Anthony Lewis) it to stop at arms aid. Secretary of Defense 1. Decontrol oil, gas and electric power. BosTON, January 15.-There has hardlY Schlesinger, 1n h1s remarks about "aggres­ Higher prices will work wonders !or conserva­ sion" rousing America to anger, signaled the tion and for capital investment. The poor, been a time when problems so numerous and January 28, 1975 EXTENSIONS OF REMARKS 1G61 possibility of U.S. forces going back into will have a. significant impact on all levels of social security fund and recommends in combat. education during the next few years. my view, an excellent improvem~nt. Why are we hearing again the disastrous Some observers of the educational scene Under it people 65 years and older would phrases of a decade ago? The most important predict that at best education will be in a. be able to continue working, but during source of the omcial obsession is well-known. "steady st~te" condition for the immediate Henry Kissinger spent four years fighting future. If so, the movement toward collec­ that period he and the employer would that war, and enlarging it into Cambodia., tive bargaining in education w1ll accelerate, be exempt from paying social security and he does not want to "lose." He wants to as will the efforts to implement the concept taxes on income. The text of the editorial keep Thieu in Saigon as long as he is in of educational accountability. Education, as follows: Washington. well as other public functions such as health PENSION TRUST DEPLETED Henry Kissinger complains about Congress and social services, can continue to improve restricting his fiexibility. The reason it has only 1f our nation has full employment and What does the future hold for retirees who don e so is evident from the Vietnam ex­ balanced economic growth. Unemployment have felt secure that pensions won years ago ample. More than any past Secretary of State, is not only a waste of valuable resources, it at the bargaining table will keep them com­ he has maneuvered and tricked and distorted also diminishes the gross national product fortable during their golden years? the law to get around what he knew was and makes it impossible to provide the in­ This question is foremost in the minds of the will of Congress and the nation. He sent come for growth and innovation of the edu­ 19 retired employees at the former American most of our food aid to Saigon; he juggled cational system. Zinc Co. smelter at Taylor Springs who have funds; he even asked his lawyers to see Across-the-board reductions in federal or been advised a company pension trust fund whether the War Powers Act, restricting state educational programs would be unWise. is broke and is being liquidated. The same Presidential war-making, might allow him Most economists agree that such cutbacks question doubtless arises in the mind of to bomb Vietnam despite a. fiat legislative would have little effect in curbing infiation every person now participating in a non ­ ban on bombing. but would contribute to an increase in un­ governmental pension program. No one should underestimate Mr. Kissin­ employment. Certain selective adjustments What kind of control exists to keep pen­ ger's salesmanship now. He can still cry based upon a critical evaluation of program sion funds in gilt-edged securities? What has havoc better than anyone. But at least he experience may well be advisable along with happened to the pension funds invested in does have to ask this time-ask Congress. some internal :reallocation of priorities. Our common stocks which have market values of Is there really a new spirit of independence legislators should be reminded, however, that half or less than before the big slide of t he in Congress? We shall know better when we there are unemployed teachers, even though past year? see whether it has the courage to end the in many urban areas classes are still far too Many pensioners' income from Social Se­ grotesque obsession with Vietnam. large. I am strongly in favor of a substantial curity alone is insumcient for them to exist public-service employment program which, especially if they are not well and require among other things, will provide employment expensive medicines. Will government for teachers in school districts where there through food stamp subsidies or Supplemen­ tal Security Income (SSI) be able to provide FULL EMPLOYMENT AND EQUAL are pressing needs for additional staff. I am impressed with the objectives of a the extra essentials their depleted indust rial OPPORTUNITY recent bill introduced in the Congress, the pensions made possible? "Equal Opportunity and Full Employment With more persons retiring early and more Act of 1976," which establishes a national retirees living longer because of the health HON. AUGUSTUS F. HAWKINS policy and national machinery to assume em­ care made possible by Medicare and Medi­ OF CALIFORNIA ployment for all individual in the nation caid, will government pension programs be IN THE HOUSE OF REPRESENTATIVES who are willfug and able to work. The ob­ endangered by the same problems now affect­ ~g industrial pensions? Few employee pen­ Tuesday, January 28, 1975 jectives are so sound that I have consented to become a member of the National Com­ Sion trusts are based on proved actuarial for­ Mr. HAWKINS. Mr. Speaker, our econ­ mittee for Full Employment. mulae. Instead they rely on the financial omy is undergoing ·a devastating period The bill states tha-t to the extent that stability of the employer company and the Americans cannot exercise the right to input of active employees. The whole scheme of instability. It is my belief that a major of things falls apart when massive layoffs consideration of action that the Congress "equal opportunities for useful paid employ­ ment at fair rates of compensation ... (1) occur and company profits dwindle or must address, is how can the 7.1 percent the country is deprived of the larger supply disappear. that are currently unemployed be re­ of goods and services made available under The State of Illinois used massive chunks turned to work? For a long time I have conditions of genuine full employment, of of tax money to supplement teachers' re­ been a strong advocate of the full em­ the trained labor power prepared to produce tirement pension funds. Will the state or the ployment concept, which in effect means needed goods and services, and of the larger federal government be able to come to the that all Americans willing and able to tax revenues received at alllevel.s of govern­ rescue of many of the private pension funds work, would be guaranteed employment ment, without any changes in tax rates, which Will be in big trouble 1f economic under conditions of genuine full employ­ conditions continue to thwart industrial pro­ by the Federal Government. To this end ment, {2) infiationary shortages and bottle­ duction? I have introduced, with my good friend necks are created, {3) the job security, wages, There is massive new federal legislation and colleague, Congressman HENRY salaries, working conditions, and productivity which offers some protection to pensioners' REuss, the equal opportunity and full of employed people are inipaired, (4) fam­ security and rights, but most of this legisla­ employment bill. ilies are disrupted, (5) individuals are de­ tion will have to be dragged through the The bill has received considerable sup­ prived of self-respect and status in society, courts to test its legality. By that time some port in the House of Representatives· it and (6) physical and mental breakdown, of the denied pensioners may become might y has also received great interest and drug addiction, and crime are promoted." hungry. s~p­ During the coming months as major fed­ There is clamor among many younger port nationally. eral and state budgetary and policy decisions members of unions to lower the dues burden Dr. Wilbur J. Cohen, dean of the school are made, we may well determine the future for pensions. At the same time union omcials of education at the University of Michi­ of educational progress for the next five or are faced with the double dilemma of having gan, a~d former Secretary of Health, more years. There is a. vital need for a na­ an upsurge in the number of members re­ EducatiOn, and Welfare under President tional commitment to the full employment tiring and claiming pensions thus eliminat­ Lyndon Johnson, has recently editorial­ of our human potential and to equal oppor­ ing them as dues-payers. And there is a de­ ized his support of the Hawkins-Reuss tunity and access to health, education and cided decline in the number of younger full employment bill in his school's news­ social services for all our citizens. ' members being added to the unions' ranks. One local skilled craftsman who had a 40- paper, the Innovator. I would like to year record of dues-paying into a pension share Dr. Wilbur Cohen's remarks with fund received his first monthly ·pension my colleagues, since I believe Dr. Cohen PENSION TRUST DEPLETED check-it was for $16. has eloquently stated the case for a Fed­ There is clamor in the halls of Congress eral commitment to full employment directed at the White House to effect a large now: HON. PAUL FINDLEY tax cut as an economic stimulus. There is FuLL EMPLOYMENT AND EQUAL OPPORTUNITY alarm expressed at the regressive effect of OF ILLINOIS Social Security taxes which take 5.85 percent (By Dr. Wilbur J. Cohen) IN THE HOUSE OF REPRESENTATIVES of most wage earner's -pay checks and a like Educational institutions face serious finan­ Tuesday, January 28, 1975 contribution from his employer. cial dlmculties in 1975 and 1976 because of Effort will be enormous to cut this tax high rates of infiation and unemployment. Mr. FINDLEY. Mr. Speaker, the editor burden, but what happens when the Social Combined With the "teacher surplus," zero of the Hillsboro and Montgomery County Security Administration suddenly :finds its population growth, and the decline 1n eco­ News, Mr. Robert R. Bliss, recently wrote ID:assive income shrinking because there is a nomic growth, these several developments a perceptive comment on a_crisis in the loss of perhaps a tenth of those whose con- 1662 EXTENSIONS OF REMARKS January 28, 1975 tributions are not forthcoming while their able drop in the catches made by sports fish­ The treaties were drawn up by the State means of income 1s shutoff. Presently the ermen aboard party boats. Department several years ago, expressing first $14,100 of annual earnings 1s subject Late in December there was an evident off­ confidence the foreigners would adhere to to Social Security deductions and there's shore movement of Boston Mackerel to with­ the agreements. Unfortunately it turned out talk of shooting that up to $24,000. This wlll in reach of party boat anglers. Several days to be words on paper, nothing else. add a tremendous bite on the pay check of in a row the foreign fiag vessels, six work The foreigners have raised havoc with our every wage earner and every self-employed ships and a huge "mother ship," that proc­ own fishing fleets and lobstermen. The for­ taxpayer. esses the catch, operated in the mackerel eigners, fishing inside the 12-mile limit, have There could be some relief to this national area. Two days later there was not a mackerel "caught" sets of lobster pots, have become dilemma if industrial rules were changed to to be caught. entangled in the nets of U.S. ships working permit 65-year-olds and older t ,_, continue The same thing happened off Barnegat nearby, despite advance warnings. They have working and permit the older worker and his Ridge recently when the party boat fleet was scattered party fishing boats with careless employer to be exempt !rom paying Social into some of the best codfishing of the sea­ approaches to fishing grounds. Security taxes on income. This would delay son. The foreign fleets moved in, lowered The only sign of cooperation was in evi­ many persons from applying for their Social their gigantic nets ~nd swept the famous dence last summer at the Law of the Sea Security income, it would leave 5.85 percent area clean. Conference in Caracas. The Russians and more money in workers' paychecks and it The whiting fisheries have been clobbered other foreign countries, agreed on the 200- would be a 5.85 percent bonus to the boss by the same boats week after week and the mile limit. Perhaps that is why the sudden for permitting the older employee to con­ only bright spot is Ambrose Light area where fishing activity off the United States coasts. tinue on the payroll. the fleet operation is stymied, even at night, It may be a matter of "get all you can this This contention will be shot down on the because of the heavy traffic in the area. year" maybe next year the new law will be theory that job opportunities are needed by Capt. Howard Bogan, skipper of the big passed. now unemployed younger persons, but for Jamaica, out of Brielle, has had a front row This is everyone's battle, the consumer as the immediate future it appears desirable to seat for the goings-on offshore. His boat is well as the fisherman. Write to your con­ treat gingerly demands on all private and big enough to make far offshore runs, beyond gressman today asking him to support the public pension funds until a brighter eco­ the 12-mile limit, where the better fishing 200-mile limit with his vote when it comes nomic outlook materializes. has been found. He painfully and in furor, up on the floor. watches the big trawlers sweep the water clean of anything that swims. Bogan has been one of the loudest sup­ porters of the 200-mile limit for foreign fiag WHO PULLS THE STRINGS OF THE FOREIGN FLEET ACTIVE AGAIN fishing vessels. He waged a one-man battle for years until others with as much at stake, HOUSE "REVOLT" including the commercial fishing boat op­ erators out of both Massachusetts and New HON. EDWARD J. PATTEN Jersey ports, joined the battle. HON. ROBERT E. BAUMAN OF NEW JERSEY The Bogans come from a fishing family OF MARYLAND IN THE HOUSE OF REPRESENTATIVES and have always practiced conservation both IN THE HOUSE OF REPRESENTATIVES in the sports fishing and commercial fields. Tuesday, January 28, 1975 All members of the family are engaged in Tuesday, January 28, 1975 .Mr. PATTEN. Mr. Speaker, in the pre­ fishing in some way. They study migrations Mr. BAUMAN. Mr. Speaker, in case vious 93d Congress I was one of the co­ of fish, they know the bottom of the New any of the Members of the House missed Jersey coast like the palms of their hands. sponsors of a bill that would establish a The Bogans and the other skippers along the article in of 200-mile limit and I will help sponsor a the shore who earn their bread and butter Sunday, January 26, 1975, by David s. similar bill in the present Congress. in the fishing boat business, decry the dam­ Broder, I am inserting it at the conclu­ The need for passing such legislation is age being done to the ocean bottom by the sion of my remarks today. urgent. It is outrageous-if not incred­ gigantic foreign trawlers. This article, by one of the most reli­ ible-to allow foreign vessels to plunder The rigs used for trawling (dragging) the able political reporters, points out the the sea off our coastlines. It is wrong and bottom are all heavy steel traps and heavy intervention by outside groups in sup­ chains. These are dragged along the bottom port of the successful moves to oust a should not be allowed. The present 12- of the sea floor, forcing fish into giant nets mile limit is not only inadequate-it is trailing the steel "jaws." The action actually number of former chairmen of House ridiculous. Our commercial fishing indus­ "levels any hills or mounds of sand and rock, committees including the role of the Na­ try is being severely affected and those in which bottom fish seek safety and food. tional Committee for an Effective Con­ who fish for pleasure are also being hurt. Once destroyed, these sanctuaries may take gress-NCEC-and Common Cause, to­ Progress was made on this important years to rebuild and additional years for any gether with a number of individuals. question at the Caracas conference last fish to repopulate the areas. This story raises ·an interesting ques­ summer, but legislation enacted by Con­ The action of the draggers not only scoops tion as to whether or not under Federal up all the fish, it also destroys the small gress would help even more, a sign that crabs, bait fish, worms and other creatures law it is legal for organizations and in­ America is determined to stop the dis­ that are the mainstays of the larger fishes dividuals to contribute money to Mem­ graceful exploitation of the sea off our diet. It is a chain reaction destruction that bers of Congress to finance their political coastlines. can destroy the meagre population of fish operations within the House. This is a One of the best articles about how seri­ that escape the nets. question that remains unanswered, but ous this problem is was written by Walter This situation is not confined to the At­ in view of the "reform fever," I assume Frank, the respected columnist of the lantic coast but is also rampant on the West that all Members will support efforts to coast and in the Gulf of Mexico, where the Home News of New Brunswick, N.J., who shrimp industry has been similarly clob­ answer this question and assure that no is considered an authority on outdoor bered by the foreigners. Federal laws have been violated. sports. I hereby insert his article, entitled, The crux of the pressing fisheries program To my Republican colleagues I direct "Foreign Fleet Active Again," and hope is the volume of fish being taken by the particular attention to the part of the that my colleagues in the House join mammoth fishing boats and the size of the article dealing with the plans being made other cosponsors in the fight against the mother ships working. Millions of tons are for our future political demise. destruction of the once-plentiful fishing being caught and processed each day during As the Orientals say, "Very interest­ supply off the coastlines of New Jersey, the operations. ing." The need for the 200-mile limit is only Massachusetts, and other States: secondary. The most serious need is for the The article follows: FOREIGN FLEET ACTIVE AGAIN fleets to practice some conservation of the HousE "REVOLT" HAD BACKING---OUTSIDE GROUPS HELPED OUST CHAmMEN (By Walter Frank) species. Little effort is being made to limit (By DavidS. Broder) Foreign fiag commercial fishing vessels, catches or to observe any sanctuary bound­ blamed for a drop in the fish catches off the aries. It is a case of making hay while the Outside organizations and individuals­ New Jersey and Massachusetts coastlines, sun shines to the foreigners. some of them at least nominally Republi­ seem to be active again. The fleets had moved The sad part of it all is that the Russians can-played an important role in the suc­ out far at sea recently when complaints did sign an agreement several years ago to cessful "freshman revolt" inside the House poured in that the boats were "in on the cut down on their take and to observe special Democratic caucus. Their new goal is to re­ beach" operating their trawlers. "sanctuary" areas along the Atlantic coast. peat the coup neA.1; year on the Republican There is every evidence that these foreign These treaties have already been relegated side of the House. fishing boats are ruining the Atlantic coast to a locked cabinet somewhere in Russia and Their intentions became public this week· fishe1·ies. After every visit there 1s a notice• Japan. end as a variety of groups that supported January 28, 1975 EXTENSIONS OF REMARKS 1663

the freshman-fomented rebellion celebrated with polling, media efforts, fund raising, or­ OUR VIEWPOINT the overthrow of three committee chairmen ganizing or other needed functions. Suddenly we have the feeling that someone and a shift in the House's power structure. It was at a post-election meeting in the is trying to do something about the state of One of them, Russell D. Hemenway, execu­ office of Rep. Donald M. Fraser (D-Minn.), the economy, and we urge our readers to let tive director of the National Congress, said, with several of the NCEC-aided winners our officials in Washington know we are "Our major effort in 1976 will be in the Re­ present that the question of a headquarters pleased with the effort. publican primaries, to find and support pro­ for the freshmen came up. Brunell and Canby President Ford Monday evening briefly out­ gressive Republicans· who will take on the went back to Miller for the money that was lined a proposal to put money into our hands mossbacks in that party." needed. The only other contributors to the through a 12 per cent rebateon our 1974 per­ The NCEC, a nominally nonpartisan or­ freshman office were three Colorado Demo­ sonal income taxes. This appears to be a quick ganization, provided campaign specialists to crats, allied with freshman Rep. Tim Wirth and relatively uncomplicated way to stim­ about half the freshman Democrats and ar­ (D-Colo.), who raised $2,500 for the project. ulate our sagging economy, with siX per cent ranged for most of the financing of the Miller's support for both the campaign ef­ to be paid in May and siX per cent in Septem­ temporary office through which the freshmen fort and the freshman office was explained ber. coordinated their activities of the Democratic by Hutchinson, his assistant, in these terms: The proposed $4 billion investment­ caucus. "Mr. Miller wanted to do what he thought oriented tax credit for business should help SiX thousand dollars of the $8,500 that best for the Republican Party, but in 1974 encourage investments in plants and equip­ financed the freshman office came from J. it seemed best to support some Democratic ment. Industrial growth is obviously a key to Erwin Miller, a prominent Republican indus­ challengers opposing Republicans who do not economic recovery. trialist from Columbus, Ind., and his sister, support Mr. Miller's philosophy." A $30 billion increase in energy taxes and Clementine Tangeman of New York. While Miller contributed as an individual tariffs designed to make Americans cut down Peter Hutchinson, Miller's deputy on the to several Republican campaigns last year, on the use of gasoline and fuel oil was also project, said the board chairman of the the NCEC project aided only Democrats in included in the President's proposal. Cummins Engine Co., a longtime backer of 1974. This will undoubtedly mean higher prices Vice President Rockefeller and other pro­ Hutchinson said, "Having helped these for gasoline in the coming months, which gressive Republicans, is "very high" on a Democrats get elected, Mr. Miller wanted to would again make all of us more aware of the similar effort among Republicans next year. make them as effective as possible, so he need to conserve fuel. The President will also "There will be a lot fewer Democratic supported the idea of setting up an office to seek a five-year delay on higher auto pollu­ challengers in 1976," Hutchinson said, "and coordinate their efforts in the caucus. tion standards to get 40 per cent better gas Mr. Miller would like to see the young Re­ "But he feels this really opens up the com­ mileage. publicans emerge in a lot of districts. We petition for both parties in these districts, Perhaps the most satisfying proposals made are encouraging the NCEC to help find emerg­ and that next year, there will be opportu­ by the President were for a one-year mora­ ing Republican talent for that challenge." nities for Republicans who support Mr. Mil­ torium on new spending programs, except for Miller and Mrs. Tangeman were also among ler's moderate philosophy. He is very high energy, and a five per cent limit on federal the biggest contributors to the special NCEC on the NCEC operation." pay increases in 1975. fund that hired top campaign consultants to Brunell and Canby are planning to begin Quoting from the President's speech: work in behalf of 49 Democratic challengers their 1976 operations this April, operating "Plainly, it is time to declare a one-year in last fall's campaign. again under the auspices of NCEC and with moratorium on new federal spending pro­ They contributed $12,500 to the $125,000 the backing of Miller, among others. grams. I need your support in this. It is Vital effort--a sum topped only by General Motors "We want to provide some services for the that your representatives in Congress know heir Stewart Matt's $20,000 contribution. marginal incumbents and target the people that you share this concern about infiation." Thirty-five of the 49 candidates aided by in Congress who ought to be challenged," Today's State of the Union speech and com­ the NCEC consultants' program won House Brunell said. ing weeks will provide us with greater details seats, comprising almost half the 75 fresh­ "Last time, we did very little in the pri­ of President Ford's proposals. At the moment, man Democrats whose presence helped maries, but next year the Republican pri­ however, we fully support his efforts and feel transform the party caucus last week. maries offer our best opportunity to get new the people of Seneca. County should let their The organization of the caucus reforms blood in. There aren't that many seats left legislators in Washington know how they and the overthrow of the three committee that Democrats can pick up, so it makes feel. chairmen involved many longtime leaders sense to make a special effort to support the and staff members of the House Democratic independent Republicans." Study Group, and such traditionally pro­ Hemenway, too, commented that "anyone Democratic outside organizations as the who thinks you're going to get a lot more PETITION FOR SANITY United Auto Workers. Democrats in 1976 is crazy. But we've long But such nonpartisan organizations as been interested in getting a more modern Common Cause, whose chairman, John Gard­ Republican Party, and I think 1976 will pre­ HON. BELLA S. ABZUG sent a good opportunity for electing more ner, retains his Republican identification, OF NEW YORK provided powerful ammunition and support liberal, Ripon Society-type Republicans. I'm tor the Democratic rebels. The Common already looking at the Republican incum­ IN THE HOUSE OF REPRESENTATIVES Cause board voted Friday to extend the re­ bents we could challenge." Tuesday, January 28, 1975 form effort to the Senate and the Republican Would the desired result be an upheaval party in the next 18 months. in the House Republican Caucus comparable Ms. ABZUG. Mr. Speaker, equal pro­ The principal staff members involved in to that which the Democrats have just seen, tection of the law and respect for the the NCEC campaign project and the fresh­ Hemenway was asked. rights of the individual are fundamental man Democrats' office had a surprisingly "That's the hope," he said. principles of our Constitution. Yet too Republican background. many of our fellow citizens still suffer The director of the NCEC campaign was David Brunell, an independent from Michi­ the effects of prejudice and discrimina­ gan who came from the staff of Rep. Donald tion because of their a:ffectional or sexual W. Riegle, Jr., of Flint, who switched to the TIFFIN, OHIO, ADVERTISER-TRm­ preference. It has been estimated that Democratic Party only two years ago after UNE BACKS FORD INITIATIVES there are over 20 million homosexual men winning election three times as a Republi­ and women in the United States. But can. His principal associate was Anne Canby, even if gay people were only a small a registered California Republican from the HON. DELBERT L. LATTA minority, the issues would be the same. staff of Rep. Paul N. (Pete) McCloskey, Jr. (R-Calif.), who challenged President NiXon OF OHIO Those issues are the right of the individ­ in the early 1972 primaries. IN THE HOUSE OF REPRESENTATIVES ual to privacy and the freedom for con­ senting individuals to engage in private The staff for the freshman Democrats Tuesday, January 28, 1975 headquarters also came from Riegle's office­ a:ffectional relationships of their own Douglas Dibbert, a Democrat, and Kathleen Mr. LATI'A. Mr. Speaker, in an edi­ preference. I. Sadler, an independent. torial, the Tiffin, Ohio, Advertiser-Trib­ I have introduced legislation-H.R. It was Brunell who developed the idea that une in my congressional district recently 166-which would amend the Civil NCEC could increase its impact in 1974, a year when political contributions were down, analyzed President Ford's economic and Rights Act of 1964 and other acts to pro­ by hiring campaign consultants at wholesale energy proposals and found them worthy hibit discrimination against homo­ rates and providing their services free to of support. I was particularly pleased to sexuals in employment, housing, educa­ _selected campaigns. note the Advertiser-Tribune's support for tion, and in other respects. As part of Brunell, Canby and political consultant at least a 1-year moratOrium on new the growing movement to protect free­ Ralph Murphine recruited the 20 consultants spending programs. For the benefit of col­ dom of a:ffectional and sexual preference, and assigned them to the 49 selected cam­ leagues, I am inserting the editorial in the editors of Ms. magazine have pub­ paigns, for varying lengths of time, to assist the RECORD at this point in my remarks: lished in their February issue a "Peti- 1G64 EXTENSIONS OF REMARKS January 28, 1975 tion for Sanity,>' signed by distinguished Diane Serafin IDa.nk. attorney. Annn Lewis, Aide to the Mayor of Boston. Nancy Borman, member of publishing col­ Carol H. Llbow, attorney. women from across our Nation repre­ lective, "Majority Report." . Viveca Lindfors. actress. senting a wide spectrum of ideologies and Patricia Bosworth, writer, Executive Edi- Bonnie Lobel, political organizer. diverse constituencies. I am inserting at tor, "Viva.:• Loretta Lottman, Director, Gay Media Ac- this point in the RECORD the text of the Ivy Bottini, former board member, NOW. tion, Boston. - petition and the list of initial signers: Jean Boudin, poet. writer, housewife. Patricia Loud, author. PETITION FOR SANITY Rita Mae Brown, writer, feminist orga- Sally Lunt, Chairperson, Health Task nizer. Force, Massachusetts. We, the undersigned, wish to state publicly Charlotte Bunch, editor, "Quest: A Fem- Ann Maguire, Co-Moderator, Gay-Way, our opposition to an archaic practice that inist Quarterly." WBUR, Boston. is still alive in this country: the attempt by Carol Burris, Women's Lobby. Marya Mannes, author. government to interfere in the sexual lives Karen Burstein, New York State Senator. Agnes Martin, artist-painter. of consenting adults, and the failure by gov­ Josephine Catoggio, New Yorkers for Jane Pierson McMichael, Director, NWPC. ernment to protect the civil rights of people Women in Public Office. Margaret Mead, anthropologist. who suffer such interference from others. Jacqueline Mlchot Ceballos, Coordinator, Eve Merriam, writer, poet. We believe all people to have common cause New Yorkers for Women in Public Office. HelenS. Meyner, Congresswoman, N.J. in eliminating this practice. Though laws and Phyllis Chesler, author, feminist. Kate Millett, writer. regulations governing private sexual beha­ , Congresswoman, N.Y. Ana'is Nin, writer, diarist, critic. vior tend to be selectively enforced against Marjory Collins, editor, "Prime Time." Elaine Noble, State Representative, Massa­ lesbians and male homosexuals-particularly Cynthia M. Cornish, member, National chusetts. from poor, minority, and politically unpopu­ Black Feminist Organization. Eleanor Holmes Norton, Commissioner, lar groups-they potentially affect every per­ Diana Davies, silversmith. New York City Commission on Human son, regardless of personal power or sexual Ellen B. Davis, editor, "Gay Community Rights. orientation. Not only do these laws and regu­ News," Boston. Joyce Carol Oates, writer, Professor of lations leave privacy and individual freedom Susan Davis, publisher, "The Spokes- English. to the whim of employers and legislators, woman." Jean O'Leary, board member, National Gay landlords and judges, but their enforcement Karen DeCrow, president, NOW. Task Force. results in a tragic waste of human talent. Barbara Deming, writer. Yoko Ono, artist. Even when not enforced, their existence Carol Downer. Feminist Women's Health Clara Oreskes, Editor, "Feminist Times." serves to inhibit the free choice of lifestyle. Center, Los Angeles. I Anne O'Shea, writer. Therefore, we urge every person, regardless Rosalyn Drexler, writer. Gail Thain Parker, President, Bennington of race, age, class, sex, CYr sexual orientation, Sissy Farenthold, Chairwoman, National College. to join us in establishing this fundamental Women's Political Caucus. Kathleen Pera.tis, Director, ACLU Women's right to privacy and individual freedom. Brenda Feigen Fasteau, attorney. Rights Project. As feminists, we sign this petition for one Frances FitzGerald, writer. Eleanor Perry, film writer, producer. additional reason. In the history of women's Linda Francke, General Editor, "News- Janice Peterson, teminlst-psychotherapist. struggle for self-determination, it has been week.'' Marge Piercy, poet, novelist. a painful fact that almost any woman who Ellen Frankfort, writer. Rabbi Sally J. Priesand. did not choose to play a traditional or sec­ Jo Freeman, Assistant Professor of PoJ:lti­ Estelle R. Ramey, endocrinologist. ondary role might find herself labeled a les­ cal Science, State University of New York, Helen Reddy, singer. bian, and restricted in her efforts for fear of Purchase. Mary Carol Reilly, actress, educator. the effects of that label. Indeed, even the Jane Galvin-Lewis, consultant, Social Malvina Reynolds, songwriter. Women's Movement itself has sometimes Change Advocates. Carol Eisen Rinzler, writer. been divided and weakened by this fear. Jane Gapen, poet. Barbara H. Robert, M.D. Therefore, we must unite on the issue of all June Murray Gill, Secretary, NBFO. Anne Roiphe, novells:t. women's right to a free choice of lifestyle, Janice Goodman, attorney. Carol Rosenberger, concert pianist. regardless of sexual orientation. Only when Vivian Gornick, writer. Alice Rossi, Professor of Sociology, Uni­ the word lesbian has lost its power to intimi­ Lois Gould, writer. versity of Massachusetts. date and oppress, when it is as positive as Patricia A. Graham, educator. Bernice Sandler, board member, Women's other human choices, can each individual Carol Greitzer, Councilwoman, New York Equity Action League. woman be fearless and free. City Council. • Nora Sayre, writer. As women and as feminists, we pledge to Elinor C. Guggenheimer, Commissioner, Barbara Seaman, writer. work toward the following goals which we New York City Department of Consumer Af­ Marcia Seligson, journalist. believe will benefit all citizens. fairs . . Deborah Singletary, student. 1. The repeal of all regulations and the Marilyn G. Haft, Director, American Oivll Margaret Sloan, writer. elimination of institutional practices that Liberties Union National Project on Sexual Nancy stanley, attorney. limit access to employment, housing, public Privacy. Shlela Tobias, educator. accommodations, credit, government or mili­ Elizabeth Hardwick, writer. Lily Tomlin, actress. tary service and child custody because of sex­ La.Donna Harris, Comanche Indian. Inez S. Turner, teacher. ual orientation. Wilma Scott Heide, former President, Kay van Deurs, silversmith. 2. The repeal of all laws that make sexual NOW. Llndsy Van Gelder, writer. acts between consenting adults criminal. Aileen Hernandez, urban consultant. Lenore J. Weitzman, Secretary, NOW 3. The passage of legislation that will guar­ The Reverend Carter Heyward. Legal Defense and Education Fund. antee each individual's rights, regardless of Elizabeth Holtzman, Congresswoman, N.Y. Joanne Woodward, actress. sexual orientation, so that those who suffer JaneT. Howard, writer. discrimination for that reason will have the Florence Howe, President, The Feminist same access to redress as do the victims of Press. MILITARY AID TO ISRAEL AND U.S. discrimination because of race, sex, religion, Dolores Huerta, First Vice-President, DEFENSE STOCKS or national origin. United Farm Workel'S AFL-CIO. 4. The creation of a social climate in which Dorothy Pitman Hughes, Administrator. lifestyles may be freely chosen. West Side Community Alliance. Josephine Hulett, Field Officer, National HON. LEE H. HAMILTON Bella S. Abzug, Congresswoman, N.Y. OF INDIANA Margie Albert, union organizer, District 65, Committee on Household Employment. Distributive Workers of America•. Elizabeth Janeway, writer. IN THE HOUSE OF REPRESENTA 'riVES Maya Angelou, writer, actress. Jill Johnston, writer. Tuesday, January 28, 1975 Ti-Grace Atkinson, feminist. Erica Jong, poet, novelist. Bette Ba.rdeen, attorney. Karen Kaplowitz, attorney. Mr. HAMILTON. Mr. Speaker, in No­ Barbara Barrie, actress. Mary F. Kelly, attorney. vember 1974, I wrote the Departments of Elizabeth S. Bell, nurse. Florynce Kennedy, attorney. State and Defense asking them to com­ Carol Bellamy, New York State Senator. Dorothy E. King, educator, NBFO. ment on the accuracy of an Evans and Roberta Benjamin, former president, Bos- Lucy Komisar, writer. Novak column which· indicated that the t on National Organization for Women. Jill Krementz, photographer. . Mary Anne Krupsak, Lieutenant Governor, supply of certain military equipment to Blanche C. Bersch, attorney. Israel since October 1973 has caused the Caroline Bird, author. New York State. Carol Bonosaro Kummerfeld, Director, Pentagon concern because of the effect of Bea Blair, Executive Director, National that supply on shortages of certain Abortion Rights Action League. Women's Rights Program, U.S. Commission on Civil Rights. weapon systems, in particular M-60 and tanks, •organizations listed for identification Martha Weinman Lear, journalist. M-48 TOW missiles and F-4 purposes only. Ellen Levine, writer. fighter aircraft. January 28, 1975 EXTENSIONS OF REMARKS 16·65 Unfortunately, much of the Defense asked for an official statement on the al­ COMMITTEE ON FOREIGN AFFAms, Department's reply was classified, but it leged shortfall, the Pentagon's official spokes­ Washington, D.C., November 19, 1974. did indicate, in summary, that the resup­ man hedged, saying only there had been "no Hon. JAMES R. SCHLESINGER, apparent adverse impact on individual train­ Secretary of Defense, ply program for Israel "has intensified ing conducted by our Army schools . . . that Washington, D.O. some of the shortages we had already we can tie directly to the sending of TOW DEAR MR. SECRETARY: I WOUld like very been experiencing.'' systems to Israel last year." much for the Department of Defense to A copy of the Evans and Novak column Along with half the supply of TOW launch­ comment on the enclosed Evans and Novak and correspondence with the State and ers, Israel also obtained 2,000 actual TOW article which appeared in the Washington Defense Departments on its follow: warheads, about 25 per cent of the entire Post of November 18, 1974. COMMITTEE ON FOREIGN AFFAmS, U.S. stock. But warheads are far easier to In addition to your general observations Washington, D.C., November 19, 1974. produce than the launcher itself. about the tone and focus of what the ar­ Hon. HENRY A. KISSINGER, There are other examples of the dangerous ticle says about Pentagon thinking on Mid­ draw-down of American military capabilities Secr et ary of State, dle East issues, I would like to have your Washington, D.C. forced on the Pentagon by the October War. specific comments on the statements made DEAR MR. SECRETARY: I WOUld like very For instance, the Air Force today is short of relating to the effects then and now of the much for the Department of State to com­ the small percentage of F4 fighter aircraft-­ supply to Israel since October 1973 of M60 m·ent on the enclosed Evans and Novak ar­ the mainstay of Israel's air force-that is and M48 tanks, TOW missiles and F4 fighter equipped with extremely costly electronic aircraft. t icle which appeared in the Washington Post of November 18, 1974. counter measures (ECM). "A high percent­ I would appreciate your early considera­ In addition to your general observations age of the very small number of these air­ tion of t his request. about the tone and focus of what the asticle craft we had went to Israel," a Pentagon Sincerely yours, says about Pentagon thinking on Middle East official told us. LEE H. HAMILTON, issues, I would like to have the Department's By far the most dangerous shortfall is the Chairman, Subcommittee on the Near M60 tank. The Army is now desperately try­ East and South Asia. specific comments on the statements made ing to boost production to 100 a month from relating to the effects then and now of the the present rate of 40 (up from 30 a year ago) sup.IIllY to Israel since October 1973 of M60 but cannot find suppliers of turrets. The AsSISTANT SECRETARY OF DEFENSE, and M48 tanks, TOW missiles and F4 fighter Army has not yet replenished the tanks flown Washington, D.C., January 17, 1975 aircraft. out of Germany to Israel; indeed, it was Hon. LEE H. HAMILTON, I would appreciate your early ·~onsidera­ 2,000 tanks short when the Israelis made Chairman, Subcommittee on the Near East tion of this request. their October war demand. The Army's tank and South Asia Committee on Foreign Sincerely yours, arsenal is so depleted that M60s pledged to Relations, Washington, D.O. LEE H. HAr.t..-TON, Morocco and some other countries have had DEAR MR. CHAmMAN- Chairman, Subcomimttee on the Near to be replaced by old-model tanks. (U) Before Congress' recess for the Christ­ East and South Asia. But there is a deeper reason for Brown's mas holidays, you requested that Secretary outburst against Jewish influence in Ameri­ Schlesinger provide commentary on the BEHIND THE GENERAL'S OUTBURST can politics, going beyond military aid: Is­ Evans and Novak article in the Washington (By Rowland Evans and Robert Novak) rael's political allies here so dominate the Post of November 18, 1974. I am replying Behind the outrageous overblown slurs debate over the Middle East that the Arab to your request. on American Jews by Gen. George Brown case remains somewhat obscure. (U) There is concern, of course, at the is sober, well-justified concern at the Pen­ In short, the emotional preoccupation in Pentagon over the supp_ly of arms to Israel tagon over the drain of ever more costly Congress with defense of Israel short-circuits since October 1973 and its impact on US military aid to Israel at a time. of growing Pentagon fears about U.S. influence through­ readiness. As you know, the US has supplied congressional resistance to defense spend- out the vast Moslem world, particularly in substantial quantities of arms and equip­ ing. . the Arab oil states. It is a little-known fact ment in support of Israel under the provi­ Accordingly, the general's blunt warn­ that Air Force pilots today are restricted to sions of the Foreign Military Sales Act, as ing at last month that Is­ extremely short flight-time to conserve fuel. amended, as well as the $2.2 billion Emer­ rael's influence in Congress is "so strong you Likewise, the Navy's "steaming days" for gency Security Assistance Act passed by the wouldn't believe it" had a solid foundation. front-line warships have been drastically Congress in December 1973. Some of those Leaving aside his gratuitous, untrue and reduced. items, such as tanks and aircraft, are long­ grossly offensive crack about American Jews All this lay behind Brown's ham-handed lead time articles which require two years owning "the banks in this country, the news­ assault on the power of the American Jewish and more to produce and it is only natural papers," Brown's warning about Israel's con­ community. Quite apart from the general's that Pentagon officials are reluctant to re­ trol over Congress is reflected in the vast inexcusable rhetoric, the Pentagon views the lease these types of DOD assets. Such reluc­ transfer of scarce military supplies to Israel. Middle East in terms of long-range U.S. stra­ tance does not, however, signify that DOD Pentagon concern reached a peak just tegic interests-a view that does not always is opposing the basic policy of support to after the $2.2 billion U.S. airlift of desper­ parallel those of Israel. ,assure Israel's integrity as a sovereign state. ately needed military equipment to Israel (U) There is some misunderstanding about during and after the fourth Arab-Israeli war DEPARTMENT OF STATE, . the security assistance that is being provided in October 1973. Washington, D .C., December 19, 1974. to Israel. Only part of the assistance pro­ One result of that resupply line for Israel is Hon. LEE H. HAMILTON, vided to Israel since 6 October 1973 has been this shocking fact: late model M60 tanks air­ Ch!lirman, Subcommittee on the Near East taken from US inventories; a substantial lifted out of U.S. military depots in West and South Asia, Committee on Foreign part of the funding on behalf of Israel has Germany and flown to the Mideast battle­ Affairs, House of Representatives. been devoted to procurement of items from field have still not been replaced in the DEAR MR. CHAmMAN: Secretary Kissinger production as well. American arsenal a full year later. has asked me to reply to your letter of No­ (U) Incidentally, the Evans and Novak ar­ All told, some 600 American tanks--both vember 19 and to regret the delay in our ticle also suggests or infers that the entire M60s and M48s-were rushed to Israel. That answer. $2.2 billion in emergency assistance was air­ was almost 10 per cent of the entire Ameri­ The Department of State does not feel lifted to Israel. It is true that deliveries ar­ can tank force. With a production line run­ competent to comment on specific allega­ riving in Israel during the October War were ning then at a mere 30 a month, thanks to tions in the Evans and Novak article from airlifted, but most of the materiel provided congressionally-imposed budget restraints, the Washington Post of November 18, 1974, has been carried on Israeli ships. that draw-down of the American arsenal to concerning the effect on U.S. military forces (U) You also asked for information on aid Israel ate up nearly two years of capac­ of arms shipments to Israel. tanks, TOW missiles and F-4 aircraft. The ity production. The Department does wish to point out data which follows will assist in putting the Potentially more damaging for the United that, in its judgement, all such shipments States was the airlift of nearly one-half are and have been necessary in furtherance Evans and Novak article in better perspec­ the entire supply of the highly sophisticated of the policy of the U.S. Government to sup­ tive. TOW anti-tank missile, the famous wire­ port the continued existence and independ­ (Security deletion.) guided tank killer. Although precise numbers ence of the State of Israel, to help create a (U) The supply program for Israel has in­ are shrouded in military secrecy, it is known situation in which the possibility of an­ tensified some of the shortages we had al­ that approximately 100 of these miracle other war can be minimized, and to pursue ready been experiencing, most notably of missile-launchers were rushed to Israel. actively negotiations leading toward a peace tanks, requiring drawdowns from preposi­ Highly qualified military officials told us settlement. tioned sets of equipment in Europe, from privately that this drain of the newest U.S. Cordially, Reserve Components and National Guard in­ ant-tank weapon threatened "training LINWOOD HOLTON, ventories, and, in some instances, from the problems" in the U.S. Army by causing short­ Assistant Secretary for Congressional active forces themselves. ages of the missile launcher. But when we Relations. (Security deletion.) 1666 EXTENSIONS OF REMARKS January 28, 19;5 (U) I hope these comments are responsive ago as the House Un-American Activities which are only 15 to 20 percent depend­ to your needs and I thank you for your in­ Committee-issued 174 contempt citations, ent on oil. This means that with only terest in this most important matter. 10 times as many as the other House com­ 5.8 Sincerely, mittees combined, but mostly to n<> avail. percent of the Nation's population, JAMES H . NoYES, The courts found most of the citations un­ we would be asked to bear over 10 per­ Deputy Assistant Secretary Near East­ warranted, and few of the defendants ever cent of the newly imposed energy cost ern, African, and South Asian Aj­ went to jail. increases through the President's energy fairs. Yet only six of the bills originating in the package. This seems to me to be grossly committee since 1945 ever became law. Th~ unfair and discriminatory, and on top of committee ... investigations, invading the the already severe economic conditions privacy of countless individuals for dubious legislative advantage. In a 1971 suit, three in Massachusetts, I fear that new oil in­ A LENGTHY WITCHHUNT ENDS persons subpoenaed to testify before the creases could lead to a potentially disas­ committee challenged its s.uthority, charging trous situation. with some justification that it merely sought The letters to which I referred above HON. the "exposure of witnesses ... to publlc give us a good look at the difficulties scorn, obloquy and harassment and intimi­ OF CALIFORNIA which the oil tariff would bring on at a dation ... without any legislative purpose." local level. I heartily commend these let­ IN THE HOUSE OP REPRESENTATIVES In recent years, the power of the commit­ ters to the attention of my colleagues: Tuesday, January 28, 1975 tee has withered, as anticommunist hyste­ ria has subsided. Its $725,000 budget of a few GREATER FITCHBURG CHAMBER Mr. EDWARDS of Califorr-ia. Mr. years ago has been shaved by more than OF COMMERCE, Speaker, the effort to abolish the House $100,000 and its staff of 39 persons dimin­ Fitchb~tgh , Mass., Janttary 16, 1975. ished by 15. It has tended to avoid the rau­ The PRESIDENT, Internal Security Committee as a stand­ The White House, ing committee of the House of Represen­ cous confrontations, a staple of the commit­ tee in the past, between members and wit­ Washington, D.C. tatives is one that took many years to nesses. MY DEAR MR. PRESIDENT: We, together with accomplish. It began the day in 1961 Indeed, the committee had become a shad­ most rational people throughout the nation, when our former colleague, Jimmy ow of its former self. Many of its members support you in a tough, comprehensive en­ Roosevelt, first stood up in opposition had resigned. No freshmen in the House ergy program which will lead to the reduc­ to the committee, and ended just 2 weeks sought membership this year. tion of our dependence upon foreign imports ago when the majority of the House The House thus recognized the inevitable and toward developing our own domestic agreed to a change in our Rules elimi­ in abolishing the committee. It has assigned resources. We cannot, however, stand by and its functions to the House Judiciary Com­ let you further punish New England for its nating HISC and transferring its juris­ mittee, steeled from Watergate and equipped geographical location, t·emote from domestic diction to the Committee on the Judi­ to inquire into internal subversion, where oil and gas sources, for the failure of the ciary. necessary. Ironically, it was the Judiciary Government to allow it to develop offshore Abolishing HISC become one of my Committee which had this jurisdiction be­ drilling, for government regulations which major goals from the time I came to fore the advent of the House Un-American prevented it from continuing the use of coal, Congress in 1963. In the early years of Activities Committee. for the lack of a national energy policy which opposition other opponents and I con­ The demise of the committee represents would have permitted it to be far more a personal victory for Rep. Robert F. Drinan nuclear independent than we find ourselves sulted the other members of the House of Massachusetts, who joined it four years today, hence, for its dependence upon im­ and interested groups of private citizens, ago to challenge it from within. In one of his ported oil. constantly reminding them of the seri­ trenchant critiques o-r the committee, Dl'i­ Last year, New England bore the brunt ous threat to individual constitutional nan said in 1971: "Men and women old of the OPEC boycott and now bears the rights posed by the actions and very enough to recall the use of the US Congress brunt of its economic war against the United existence of a House Un-American Ac­ as a vehicle for systematically wrecking the States. New England has proved that it could tivities Committee and subsequently careers and reputations o! individuals whose conserve during that boycott and did so at associations did not meet with the approval the rate of approximately 14 percent while HISC. of their accusers will always look back upon the rest of the nation conserved little, if It took many years to lay the grormd­ the episode with embarrassment and dis­ any. Some Fitchburg manufacturers saved work, and those of us who had given so comfort." The words stand as a fitting epi­ as much as 30 to 35 percent o! their energy much of our time and energy to this taph for the Internal Security Committee. use. Now, New England is conserving energy were greatly cheered when in 1971 our at an equivalent, if not greater, rate, but at ranks were expanded to include our col­ this time, it 1s due more to recession than leagues, the Honorable ROBERT DRINAN, from lack of fuel. New England bore a five­ !old increase in its oil cost-oil used for Congressman DRINAN took on the chal­ THE PRESIDENT'S ENERGY manufacturing and electric generation, a lenge of opposing the committee by join­ PROGRAM: three-fold increase in domestic heating oil. ing the committee, and thus for him our The Petroleum Act of 1973 was supposed to recent victory is very much a personal relieve New England of this burden and one. HON. ROBERT F. DRINAN equalize prices across the nation. After a full It is a pleasure to point out to the OF MASSACHUSETrS year of concerted efforts by New England's industry and its Congressional Caucus, a other Members of the House the recent IN THE HOUSE OF REPRESENTATIVES editorial in Congressman DRINAN's home­ trivial amount toward equalization was an­ Tuesday, January 28, 1975 nounced, but even that has failed to ma­ town newspaper, the Boston Globe, point­ terialize. Now, we are to expect another 25 ing out his contribution to om· success. Mr. DRINAN. Mr. Speaker, I would to 30 percent increase in energy costs The editorial follows: like to bring to the attention of the through your import tariff. We had hoped A LENGTHY WITCHHUNT ENDS Members of the House two fine letters and fully expected, by your recognition o1 The US House, post-Watergate soul­ relating to the disastrous effect which New England as a special problem at your searching coursing through its veins, Tues­ the President's energy progTam would fireside interview, that you would announce day inaugurated its 1975 session on an ap­ have on New England consumers and a way to effect the tariff by having the nation propriate note. It consigned to infamy the industry. These letters, which were origi­ assume the burden as a national security House Internal Security Committee, a cata­ measure, and not let it fall on already eco­ pult in the late 1940s and early 1950s for a nally sent to President Ford, were for­ nomically depressed New England. politically ambitious and conspiratorially warded to me by the Greater Fitchburg We urge you, Mr. President, not to soften minded young congressman named Richard and Leominster Chambers of Commerce. your program for energy independence, but M. Nixon. I do feel that this country must reduce to achieve it as a national, not a regional A precursor of Watergate, the committee its consumption of energy, Mr. Speaker. goal. Please show compassion for the New for three decades ran roughshod over civil However, this must be done in a· manner England States who already saved the na­ liberties in the name of national security. tion from economic collapse during the which is not going to bring on economic November to March embargo, and who have Mr. Nixon, as a member, beat a demagogic In drum in his anticommunist crusade. Al­ devastation to New England. Massa­ borne the economic hardship ever since. Let though a conspicuous example, the former chusetts, we are approximately 75 per­ the tax or tariff dollars that will be collected President was by no means the only offender. cent dependent on oil for our energy from all·forms of energy be passed on to New The committee-known until six years need, much more than most regions England to offset the high cost it must bear Jrtnnary 28, 1976 EXTENSIONS OF REMARKS 1667 until, either we are independent of forelgn CmLDREN OUT OF SCHOOL reasons, the countless truants who elude imports, or equalization of all energy costa Census enumerators and school officials alike, have actually taken place. the many chlldren whose parents do not Respectfully yours, HON. JOHN BRADEMAS understand English and who therefore do HOWARD W. Evms, Jr., OF INDIANA not correctly answer the Census nonenroll­ Chairman of the Board. ment questionnaire, the handicapped chil­ Wn.LIAM T. MURRAY, IN THE HOUSE OP REPRESENTATIVES dren and pregnant girls who are listed as President. Tuesday, January 28, 1975 receivlng home or alternative instruction even though we know in many instances Mr. BRADEMAS. Mr. Speaker, while LEOMINSTER CHAMBER OF COMMERCE, that this is tantamount to being deprived of Congress was adjourned, a study of great !I January 21, 1975. schooling." The PRESIDENT, importance to the children and families "Also not counted are the far greater num­ The White House, of America was published. bers of children who are technically in school Washington, D.C. I refer to a report entitled, "Children but who benefit little or not at all. They are DEAR MR. PRESIDENT: We of this area, nat­ Out of School in America," issued on the functionally or partially excluded chil­ urally support any program that would 1n December 21, 1974, by the children's de­ dren. They may remain in school and learn efi'ect, lead to the reduction of our depend­ fense fund of the Washington Research little or nothing but they may well become ence upon foreign imports and toward de­ Project, Inc. so frustrated with their situation that they veloping our own domestic resources. How­ drop out--thereby increasing the numbers of ever, we have been dismayed that your ad­ Mr. Speaker, the study found that physically excluded children reported in our ministration may arbitrarily increase the al­ nearly 2 million school-age children, study." ready fantastically infiated cost of energy in ages 7 to 17, are not enrolled in the Na­ The report, Children Out of School in regions such as ours by imposing a heavy tion's schools. This astonishing figure America, is the result of a year and a half new tartfi' on imported oil. does not include "the hundreds of thou­ study which involved door to door interviews An across the board oil tax or tarifi' is gross­ sands of children expelled and suspended With 6,500 families and more than 300 school ly unfair to New England and especially to and otherwise thrown out of school for officials and community leaders in 9 states Massachusetts. Industrial companies in the alleged disciplinary reasons and count­ and the District of Columbia. The report Leominster Area alone already have cut fuel also contains analyses of 1970 United States consumption from 20 to 30 percent. Resi­ less truants." Census nonenrollment data and United dential consumers have done nearly as well Mr. Speaker, as the report notes, "most States Office for Civil Rights data on school in most Instances. There is a practical limit Americans assume that all children go to suspensions and special education placement to conservation, so for many such companies school." But the 1970 Bureau of the in selected states and local school policies, the only way to further reduce oil consump- Census data show that almost 2 million regulations and data. . tion would be to close the plant doors. There­ children have not been enrolled in a NATIONWIDE PROBLEM fore, the tarifi' plan would not efi'ect further school for 2 or more months. significant fuel savings, only force these The Children's Defense Fund's survey was companies to pay a higher price for what Indeed, in 10 States surveyed, more conducted by its own stafi', with the coopera­ they must have ... and ultimately, to pass than 6 percent of the school-age popula­ tion of the American Friends Service Com­ costs on to consumers of their product. tion was not enrolled, and in 30 areas mittee Southeastern Public Education Pro­ We feel that a new rash of plant shut­ surveyed by the fund, nearly one in five gram and local community groups and in­ downs and layofi's could result from the as­ 16- and 17 -year-olds was out of school. dividuals in each area. sumption that New England industry can Who are these children who have been In 30 areas surveyed, the Children's Defense either pass along such higher costs to the excluded from school? Fourteen percent Fund found that 5.4 percent of all children consumer or absorb them. Massachusetts al­ aged 6 to 17 were out of school. Nearly one of them suffer from mental, physical, or in five 16 and 17 year olds were out of school. ready has the second highest un~mployment emotional disability. rate in the nation. In many communities and states the out The New England Fuel Institute states Thirty percent of them face such bar­ of school problems found by the Children's that 86% of the six state region's total energy riers as expenses, lack of transportation, Defense Fund were even more striking. needs are supplied by oil. Nationally, the fig­ the need to work, difiiculty with English, In a Portland, Maine housing project, chil­ ure is 45%. On that basis alone, we would and pregnancy. dren 6 to 17, predominantly white and poor, get hit tWice as hard. However, we not only Ten percent of these students are were out of school at a rate tWice the Chll­ use more, we import more. Some 90% of all dren's Defense Fund's survey average, habitual truants, and 30 percent of them 10.8 percent. our residual oil for electric power and indus­ are not in school for various family rea­ trial heating and processing is imported, In a Census tract in Holyoke, Massachu­ along with 25% of our home heating oil. sons, including not liking and, indeed, setts, with a heavy Puerto Rican concentra­ To tremendously magnify our competitive fearing the school, and family problems. tion, 37.5 percent of 16 and 17 year old Puerto disadvantage and, in reality, compel the Mr. Speaker, because the astonishing Rican chlldren were out of school. businesses, industries and individual con­ figures contained in this report must In Denver, Colorado in a largely Chicano sumers of Massachusetts to subsidize un­ concern all public officials, I include a Census tract, 9.6 percent of the 6 to 17 year fairly a national policy, would conservatively summary of the study at this point in olds were out of school. drain another three-quarters of a billion dol­ the RECORD: In the poor white Mud Creek area of Flood County, Kentucky, 9.2 percent of the school­ lars a year out of the New England economy. [Report by Children's Defense Fund of the It could mean a 25 to 30% increase in the age children were out of school. Washington Research Project, Inc.] In a New Bedford, Massachusetts neigh­ electric power fuel adjustment charge for STUDY FINDS 2 MILLION SCHOOL-AGE CHIL­ Massachusetts consumers. For industry, the borhood, 60 percent of all 16 and 17 year DREN ExCLUDED F'ROM THE NATION'S PUBLIC olds, and 72.7 ~rcent CYf Portuguese youths impact, therefore, would be a double-barrel SCHOOLS tha.t age were out CYf school. one • • . higher heating and processing costs Nearly two million school-age children, In an all Black area of Washington, D.C. plus higher electric power costs. ages 7 to 17, are not enrolled in the nation's 20.8 ~rcent of 16 and 17 year olds were out Finally, we feel that the entire concept is schools. Of these, more than a million are of school. needlessly inflationary. It won't create a under 15 and more than three-quarters of FROM FAMILIES OF ALL KINDS single new job and, according to a leading a million are between 7 and 13 years old economist, the tartfi' (coupled with domestic according to a report released today by the The Children's Defense Fund found child­ excises and price increases) could send a $100 ren out of school all over the nation. They Children's Defense Fund. Ten states have are white, Black, and brown, rich and poor, billion "ripple" through our entire economy. more than 6 percent of their school-age from families With all kinds of income and population not enrolled.1 we, therefore, Mr. President, beseech you educational levels. Some kinds of children, to maintain your goal for energy independ­ These United States Census figures, how­ however, are more likely than others to be ence, but not at the expense of the industry ever, "only refiect the surface of how many out of school. They share a common charac­ and businesses of the New England states. children are out of school in America" the teristic of difi'erentness" by virtue of race, Such a program is not only damaging to our Children's Defense Fund states. Not included class, language, or "handicap". economy but disastrous to our highly indus­ are "the hundreds of thousands of children "We found that if a child is not white, trious region. expelled and suspended and otherwise or is white but not middle class, does not Very truly yours, thrown out of school for alleged disciplinary GEORGE C. RELLSTAB, 2 The Children's Defense Fund's analysis President. 1. The Census defines "nonenrolled" as any also excludes the more than 85,000 children JOHN K. HATHAWAY, chlld who has not been in any school for in detention and other institutions who were Executive Vice President. three consecutive months. not considered enrolled by the Census. CXXI--106-Part 2 1668 EXTENSIONS OF REMARKS January 28, 19'1:) speak English, Is poor, needs special help NOT ONLY A MINORITY PROBLEM The Children's Defense Fund was estab­ with seeing, hearing, walking, reading, learn­ While minority children suffer most, sus­ llshed as an arm of the Washington Research ing, adjusting, growing up, Is pregnant or pensions are not just a minority problem. Project, a Washington-based public inte1·est m.a.rried at age 15, is not smart enough or is Almost one half milllon of the children sus­ research, advocacy and legal group started too smart, then, in too many places, school pended in the Office for Civil Rights' diStrict in 1968 to monitor federal programs on be­ officials decide school is not the place for reports were white. half of the poor and minorities. that child," the ChildTen's Defense Fund The Children's Defense Fund found that said. 63.4 percent of all the suspensions in its own These children are, the report states, "for survey were for offenses that were neither EXTENDING THE VOTING RIGHTS the most part, out of school not by choice dangerous to persons nor to property; 24.5 ACT but because they have been excluded. It 1S percent related to truancy and tardiness. as if many school officials have decided that Only 3 percent of the children were suspend­ certain groups of children are beyond their ed for destruction of school property, "crim­ HON. WILLIAM S. COHEN responsibility and expendable. Not only do inal" activity, or the use of drugs or ·al­ OF MAINE they exclude these children, they frequently cohol. IN THE HOUSE OF REPRESENTATIVES do so arbitrarily, discriminatorily, and with "Expulsions and suspensions," the Chil­ impunity." dren's Defense Fund said, "are frequently a Tuesday, January 28, 1975 The Children's Defense Fund found chil­ unilateral process with little or no chance for Mr. COHEN. Mr. Speaker, I am pleased dren excluded from school for reasons rang­ children or their parents to be heard. And to ing from inability of some families to afford they are often imposed so arbitrarily that join with Congressmen HuTCHINSON, clothes, textbooks, school fees, or transporta­ they lack all semblance of fairness." For McCLORY, RAILSBACK, and F'ISH in intro­ tion charges; pregnancy; to many kinds of example: ducing legislation to extend the 1965 Vot­ mental, physical and language "handicaps" In Macon, Georgia, a 16-year-old black ing Rights Act for an additional 5 years, for which schools have no or grossly inade­ youngster was expelled for the rest of the including its provisions banning literacy quate programs. It also found "rampant use school term (three months) because he could tests and certain other devices used as of suspensions and other disciplina-ry devices not pay $5.00 to replace a ruler he had prerequisites to voting registration. to throw children out of school. They are broken accidentally in shop class. In 1965, Congress recognized the fail­ imposed for a wide array of offenses, many of In New Bedford, Massachusetts, a 17-year­ which are educationally indefensible." ure of earlier laws to adequately secure old white boy was suspended for two days equal voting rights and enacted the vot­ SCHOOL SUSPENSIONS A MAJOR NATIONAL when he left the school grounds to help an PROBLEM old man change a fiat tire. When his mother ing Rights Act to provide for immediate The Children's Defense Fund's analysis of called the school to inquire about the inci­ and automatic remedies in certain juris­ suspension data submitted to the Depart­ dent, she was told her son had done a good dictions guilty of discriminatory voting ment of Health, Education and Welfare's deed but the ru1e was that he had to be sus­ practices. Under the act, the use of a Office for Civil Rights for over 2,800 school pended for leaving school grounds and it literacy test or similar restrictions is districts all over America reveals that during cou1d not be broken. banned. Further, to correct the problem the 1972-73 school year, at least 1,012,347 The Children's Defense Fund also found of local registrars and election officials children were suspended at least once for numerous children in and out of school with unmet special needs. It found strong indi­ who refuse to deal fairly with applicants, over 4,062,408 school days or 11,130 school the Attorney General is authorized to years. cations of misclassification in the placement Among secondary school children and process for special education programs. Mi­ appoint Federal examiners and Federal among minority children, schooling depriva­ nority children were particularly affected. election observers to supervise registra­ tion through suspension is especially acute. The Children's Defense Fund's analysis of tion and voting in the covered jurisdic­ While 8 percent of all secondary school chil­ special education data from the Office of tions. To prevent the springing up of new dren in these districts were suspended at Civil Rights for 505 school districts in Ala­ devices and qualifications designed to least once, almost 12 percent of the Black bama, Arkansas, Georgia, MiSsissippi, and stultify minority participation, enforce­ secondary school children were suspended. South Carolina for children enrolled in ment of voting procedures other than Compared to the overall white rate of 6 per­ classes for the educable mentally retarded cent, the Black rate was about twice as (EMR) found that black children were twice those in effect on November 1, 1965, is large. Suspensions for Black children were as likely to be placed in classes for the men­ prohibited. This prohibition can be 25 percent longer than for white children. tally retarded as white children. waived if proposed changes receive prior According to the Children's Defense Fund, "While some people have doubts about approval from the Attorney General or these figures substantially understate the whether schools can effectively foster equal­ the Federal District Court. suspension problem. Many districts under­ ity and promote upward mobility,'' the Chil­ In the almost 10 years that the Vot­ report suspensions or call them by other dren's Defense Fund's report "rests on the ing Rights Act has now been in effect, names. For example, the city of Los Angeles fundamental and indisputable premise that significant improvements have been reported zero suspensions to the Office for total denial of schooling is an almost certain Civil Rights. Chicago and New York failed guarantee of failure in American society." achieved in nonwhite participation. to give an ethnic breakdown of the more than Nd'Jody understands this more than poor Black registration has risen from 29 50,000 children they jointly suspended. More­ parents who have learned from their own to 56 percent. The number of black elect­ over, these figures only represent instances lives what it means to be uneducated. As one ed officials has increased from 14 to al­ where children were suspended at least once. mother we interviewed in Macon, Georgia most 400. Over 6,600 Federal observers The Children's Defense Fund found, for ex­ stated: "The way the schools are now . . • I have been sent to cover 66 different elec­ ample, that of the children suspended in its don't know if they're learning anything tions in the affected States and 40 law­ survey, 40 percent were suspended more much, but it's better than nothing." suits have been initiated by the Justice than once. "We owe our children more than nothing" The Children's Defense Fund's own survey the report concludes. "To continue to deny Department to enforce provisions of the corroborates the Office for Civil Rights' data our children schooling or to give them as act. When the act was amended and ex­ regarding the disproportionate suspension of little as we can 1S so unfair to the children tended in 1970, the coverage formula minority students. "At the secondary school denied, and so costly to the rest of us in was adopted to reflect the 1968 Presiden­ level, Black students in our survey were sus­ future dependency, as to be intolerable. That tial election. As a result, three counties pended more than three times as often as we single out some groups of children who in New York-which together contain white students-12.8 percent compared with are different for special deprivation of edu­ more blacks than any of the seven 4.1 percent." cation is downright cruel. It profoundly vio­ "In eight areas we surveyed, over 15 per­ lates American pretensions to provide equal Southern States originally covered un­ cent of the Black secondary school students opportunity to all within its fold." der the act-have been included under were suspended, and in six areas over 20 The report calls for specific reforms in its enforcement powers. Additior<>lly, the percent of the Black secondary school-age the various areas resulting in children being courts have held than Spanish-surnamed males were suspended. In three areas, over excluded from school. persons are also entitled to its protec­ 30 percent of the Black males were suspend­ The Children's Defense Fund is a national, tions. ed: New Bedford Census Tract 6510 with 36 nonprofit organization created in 1973 to While much has been accomplished by percent; Sumter County Precinct 2 with 36 provide long-range and systematic advocacy the Voting Rights Act, however, prob­ percent; and Columbia Census Tract 5 with on behalf of the nation's children. It 1s lems in minority voting participation still 35 percent. In two areas, over 30 percent funded by private foundations and staffed exist. Last fall, the Civil Rights Division of the Black secondary school-age females with lawyers, federal policy monitors, re­ were suspended: Denver Census Tract 41.01 searchers and community liaiSon people dedi­ in the Department of Justice i3sued a with 31 percent; and New Bedford Census cated to reforming institutions, policies and report of its activities under the act and Tract 6526 with 33 percent." practices affecting the lives of children. recommended an extension of its author- January 28, 1975 EXTENSIONS OF RE~IARK.S 1669 the Voting Rights Act for an additional the three community m en tal health centers 'ity for another 5-year period. Original­ operated by U.C.D. which serve 4.00,000 citi­ ly, the provisions restricting voting prac­ 5 years. zens in the county. The mental health cen­ tices in certain States were limited to a ters in the other two catchment areas of 5-year period with the hope that suf­ Sacramento County were established during ficient voting power would be achieved THE CRUEL TREATMENT OF the first five years of the county program by minorities in that time period that MENTAL HEALTH (where I was also Director of the total county additional Federal protection would not program). We have been able to obtain a stafiing grant in each of those five catch­ be needed. ment areas. As a result of the federal sup­ However, after more than a century of HON. ROBERT L. LEGGETT port (as well as the State Short/Doyle Pro­ discriminatory voting practices, it was OF CALIFORNIA gram) Sacramento County has been able to not surprising to find that all the prob­ IN THE HOUSE OF REPRESENTATIVES develop comprehensive mental health serv­ lems could not be corrected in such a few ices at t he local level. In 1968, when I first short years. Thus, in 1970 Congress ex­ Tuesday, January 28, 1975 came to Sacramento, the county was sending tended the temporary provisions for an Mr. LEGGETr. Mr. Speaker, a tragic 1,200 patients a year to state mental hospi­ sense of priorities has been displayed by tals-we now send 20 or 25 per year. Sacra­ additional 5-year period, and it now ap­ mento County used to have a small public­ pears that at least another 5 years will be President Ford's veto of H.R. 14214. This funded clinic with six or seven thousand out­ necessary as well. bill would have extended and revised the patient visits per year. We now have well Recently, the distinguished chairman exp1rmg Community Mental Health over 100,000 outpatient visits per year. We of the House Judiciary Committee

HOUSE OF REPRESENTATIVES-Wednesday, January 29, 1975 The House met at 12 o'clock noon. to present evidence of payment due to which expresses the sense of Congress in The Chaplain, Rev. Edward G. Latch, default by the purchaser. opposition to President Ford's recent pro­ D.D., offered the following prayer: My bill provides relief for wool pro­ posal that social security cost-of-living Trust in the Lord and do good.­ ducers in Wyoming and other States who increases be held to 5 percent this year. Psalms 37: 3. · in 1970 consigned and delivered wool to The President wants Congress to re­ 0 God and Father of us all, whose a marketing agency in. Colorado from duce the expected 8.7 percent social se­ goodness faileth never and whose truth which they received promissory notes, cm·ity cost-of-living increase which will endureth forever, in the midst of press­ none of which were ever paid by that automatically go into effect on July 1 of ing duties and persistent demands we agency, and on which wool incentive pay­ this year. open our hearts unto Thee praying that ments were made. Subsequently, in 1972, The President is asking 30 million the light of Thy spirit may shine upon these producers' incentive payments were needy social security recipients-chil­ our pathway revealing the way to right­ withheld by the Department of Agricul­ dren, the elderly, and the disabled-to eousness, justice, and peace. ture because the Department found the take a 40-percent cut in the scheduled earlier payments to be improperly deter­ 8.7-percent increase in benefits as a Keep ow· hearts clean, our minds clear, part of his program to combat recession. and our spirits courageous as we face the mined under existing regula.tions. These regulations presently provide that the This is an unfair burden to ask these tasks of these trying times. Lead us and people to bear on top of the ravages they lead our people into the realm where grower's application for payments must be supported by a final accounting for the have already suffered from soaring in:fla­ good will reigns, truth rules, and justice tion. regulates the affairs of all. wool. A promise to pay, even though sup­ ported by a promissory note has not been Mr. Speaker, the 92d Congress widely Before this altar of prayer we dedicate anticipated the need to protect social se­ ourselves to Thee and to ow· Nation for accepted as the equivalent of a payment within the meaning of the regulations curity recipients from the threat of ris­ the welfare of all mankind; through ing prices by approving an automatic Christ our Lord. Amen. governing incentive payments. This decision has caused considerable cost-of-living increase in social security hardship for those producers who acted benefits tied to the rise in the Consumer Price Index. THE JOURNAL in good faith in consigning their wool to an agency they considered to be finan­ We must not turn ow· backs on these The SPEAKER. The Chair has exam­ cially responsible. deserving people, and we must not ap­ ined the Jow·nal of the last day's pro­ Similar legislation introduced in the prove the President's ceiling on social se­ ceedings and announces to the House his last Congress received the support of the cw·ity increases. approval thereof. Department of Agriculture and the Of­ I insert, at this point, a list of those Without objection, the Journal stands fice of Management and Budget. I urge who have agreed to join Mr. O'NEILL, Mr. approved. my colleagues to support this bill to in­ BURKE of Massachusetts, and me as co­ There was no objection. sure an equitable treatment of these wool sponsors. The number of cosponsors so producers. far totals 108: LIST OF COSPONSORS TO AMEND WOOL PRICE SUPPORT Ms. Abzug, Mr. Ambro, Mr. Ashley, ~ ·Ir PAYMENTS BILL RESOLUTION TO OPPOSE A CEIL- Aspin, Mr. Badillo, Mr. Beard, Mr. Bedell, Mr ING ON SOCIAL SECURITY COST­ Biaggi, Mr. Bingham, Mr. Blouin, Mr. Boland,