12988 EXTENSIONS OF REMARKS June 8, 1982 EXTENSIONS OF REMARKS FEDERAL AID REDUCTIONS The exodus of refugees from the North­ the $225 monthly rent on the tiny apart­ SPUR REFUGEES TO FLEE PA­ west has particularly upset officials in ment they share is due. CIFIC NORTHWEST Michigan, where the unemployment rate is They sat in an upstairs room of the Seat­ 17 percent but where relatively generous tle YMCA and watched as an instructor welfare benefits cannot legally be denied to with the private nonprofit International HON. LES AuCOIN refugees who decide to resettle there. Rescue Committee showed them how to OF OREGON Paula Stark, Michigan's coordinator of write a thank-you note after a job interview, IN THE HOUSE OF REPRESENTATIVES refugees, said her office had reports of refu­ "If hired, I will learn fast, come to work on gees arriving from Washington and Wiscon­ time, and become a loyal employee," the Tuesday, June 8, 1982 sin, She said "we are very fearful" of the same note on the blackboard said. • Mr. AuCOIN. Mr. Speaker, I, and possibility of a major influx. "Every day we walk around Seattle look­ many of my colleagues in the House, Greg Hope, a job developer for the Inter­ ing for a job, but there is none," Vilaysack national Rescue Committee here, said he said. The committee has advised refugees are continually concerned with the was stunned when a refugee friend first re­ plight of refugees. Thousands of Indo­ that their landlords must give them proper vealed his moving plans: notice before eviction, hoping to delay fur­ chinese .refugees come to our country "I'm going to Meechigin," he quoted the ther housing problems as long as possible. with hopes of finding good living con­ man as saying. When the two young men run out of money ditions, something they don't have in "Mexico?" Hope said. or food stamps,"we'll go to some Laos family their own country. Instead, they find "No," the man repeated, "Meechigin." Hope said he and the rescue committee's we know and eat with them, Vilaysack said." high unemployment rates and a Fed­ Laotian interpreter Maeseng Saechao "have Relief officials said young, single refugees eral Government which made a deci­ been to refugee houses where they are load­ like them may be able to find jobs soon. But sion to allow them into this country ing up the cars." He said they pleaded with Veunho Saelee, the 40-year-old refugee with but which recently cut back drastically the refugees "not to go to Michigan. If you a wife and two sons, faces a more difficult on refugee assistance. have to go anywhere, go where there is em­ dilemma. He also has thought of leaving Se­ This morning, the Washington Post ployment." The largest recorded migration attle. "I know people in our building who to date has involved 1,500 members of the have moved to Michigan," he said, "but I carried an article describing the criti­ have no money to move." cal situation refugees face in the Pa­ Laotian Hmong minority who have moved from Oregon to California since December. His final government welfare check for cific Northwest. I call this to the at­ Amelia Torres, of Catholic Charities Inc. in $531 arrived last month, and his family has tention of all Members of Congress so Fresno, Calif., said hundreds of Hmong have nothing but $50 worth of food stamps. The they may better understand the press­ descended on the Central Valley city. "It is refugees will still be entitled to food stamps, ing need for refugee aid. going to make a severe impact on our wel­ but rent and health care is another matter. Saelee's tiny one-bedroom apartment is part [From the Washington Post, June 8, 19821 fare system," she said. Kuxeng Yongchu, president of the Hmong of a 45-unit building in a run-down section FEDERAL Arn REDUCTIONS SPUR REFUGEES TO Family Association of Oregon Inc., said he of Seattle's Capitol Hill. The 12-by-8-foot FLEE PACIFIC NORTHWEST expects the migration to California and the welfare is better cardboard so Saelee's 18-year-old niece can has more refugees than any other state. than in Oregon," Yongchu said. have some privacy. His 14-year-old son has The welfare benefits are higher. In March, 587,149 refugees from the com­ one tiny mattress. Saelee and his wife Kex­ Officials in Washington and Oregon, with munist takeover of Vietnam, Cambodia and iang, 38, share the largest mattress with few available jobs and little local money for Laos lived in the United States, and 309,000 their 10-year-old son. welfare, say as many as 2,000 refugees have of them were receiving rent, food and medi­ The $225 monthly rent is due now. Sae­ joined the exodus. cal support from the federal government, lee's only hope is a stopgap state program " If I had known it was so bad, I would not according to Oliver Cromwell of the federal that may pay him about half of his usual have come to this country," said Veunho office of refugee resettlement in Washing­ benefits for the next two months. After Saelee, a 40-year-old refugee from Laos who ton, D.C. The decision to help ease the fed­ that, no more welfare will be available to has no job here and no money for rent for eral budget deficit by reducing the promised him in Washington. Mike Auyong, Saelee's his family of four. " I would have just died in three years of support to 18 months forced landlord, said many of the tenants, almost Laos." 70,000 of those refugees out of the program. all of them refugees, have been unable to The sudden migration follows the federal Benefits to Cuban and Haitian entrants into pay the rent recently. Auyong said he does government's decision to cut off benefits to the country also were cut. not plan immediate evictions, "but we only refugees who have been in the country When Indochinese refugees began to come have about a month" before his own debts longer than 18 months-despite an initial to ·this country in 1975, Washington state are so great he will have to take some promise of 36 months of benefits when they attracted an unusually high portion because action. arrived. In Washington and Oregon, where of its large Asian community and because Saelee crouched on a tiny stool in the the unemployment rates exceed 12 percent, state and Seattle officials were particularly corner of his living room and smoked ciga­ the cutoff has exacerbated a desperate situ­ receptive. In March, Washington had 27 ,285 rette after cigarette as he described his ation of each refugee "competing with 50 Indochinese refugees, third highest in the fruitless search for work. "I go looking for unemployed Oregonians for work" said Pa­ country after California's 197,131 and work every day," he said through an inter­ tricia Rumer, Portland's refugee coordina­ Texas' 53,368. preter. " In the last week I applied to 16 tor. But the cut in federal aid left 10,750 of places, but none of them called me back." Rumer said refugee aid officials in Oregon Washington's refugees (39 percent) without Before leaving Laos in 1976, he was a initiated special training for counselors in funds, much higher than the national farmer, and at the refugee camp in Thai­ suicide prevention after news of the cut­ cutoff rate. In Oregon, 5,500 or 32 percent land he ran a little roadside drink stand. backs late last year caused a wave of distress of its 17 ,068 refugees were cut off. But he has never been able to read or write in the refugee community. Seattle officials Keo Vilaysack, 26, and Keopraseuth his own language and English is completely report marked increase in reports of wife­ Aikham, 20, two friendly but somewhat be­ beyond him, despite what he said were 540 beating and heightened racial tension as wildered Mien nationality refugees from hours of classes in the two years he has hundreds of refugees have suddently ap­ Laos, were getting $288 each a month under been here. " If I studied until my hair peared at long-established food banks for the federal program when it ran out last turned brown, I still could not understand," the poor. Tuesday. They have $35 between them, and he said.

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. June 8, 1982 EXTENSIONS OF REMARKS 12989 "It is not that I am lazy. I am eager to CFrom the York News-Times, May 26, 19821 allow this system to collapse in shambles work, but when I go out for a job they say I SYSTEM NEEDS REFORM through those who aren't politically strong cannot speak English and I cannot work for America's Social Security system is in enough to stave off the special interest them," he said. Saelee said while in Laos he trouble, but it is oversimplification to blame groups pressuring for their own benefits at served briefly with one of the Mien nation­ a particular administration for the deep the expense of others.e ality armies recruited with CIA money to depths of chaos in which the system now fight the communists. When the commu­ flounders. Because Social Security has been nists won, he left the country to avoid handled by politicians, it has been handled COMMEMORATING 70 YEARS OF prison camp. as a political football, and there is no way a Now, he said, "I would like to ask the U.S. reversal of what it has become can be made SERVICE government, if we cannot find a job and the with any degree of political safety. welfare is cut off, please let me go back to The problem isn't the $40 billion, or what­ HON. ROMANO L. MAZZOLI my country." He added, however, that he ever the figure might be, that must be saved would like the Americans to remove the over the next three years in old-age benefits OF KENTUCKY communists from Laos first. paid out of Social Security trust funds. That IN THE HOUSE OF REPRESENTATIVES Refugee officials said Indochinese in the amount really is just peanuts compared to Pacific Northwest have been attracted to the real difficulty of the system, which is Tuesday, May 11, 1982 states like California because there they can supposed to protect those Americans who •Mr. MAZZOLI. Mr. Speaker, on the receive some welfare support for their chil­ have been unable to provide themselves se­ dren even if there are two able-bodied par­ occasion of Hadassah's 70th anniversa­ curity in their old age out of investments ry, I wish to extend my thanks and ents in the house. Also, California provides and savings accumulated during their work­ general relief to individuals with no other ing lives. recognition to this organization which source of income. In cities like San Francis­ Actuarial studies of the system show it has contributed so much to our coun­ co and San Diego, able-bodied recipients must somewhere find $4 trillion more than try. must do some community work and show is projected to be contributed in the future Since its founding in 1912, this proof of regular job-hunting to receive the if the fund is to pay benefits to those now Jewish women's organization has been welfare money, a requirement that bothers contributing to it. Specialists say the design­ some older refugees but not younger ones. dedicated to strengthening and im­ ers of Social Security never ever thought ev­ proving the quality of life in our Arlene Oki, special assistant to Seattle eryone who contributes to Social Security Mayor Charles Royer, said refugees denied should be able to take from it, regardless of Nation and around the world. Chap­ such general relief here may try to sell their need, an amount reflecting the size of their ters are located in every State and food stamps to pay the rent and depend on contributions. In other words, "old age in­ with a membership of over 370,000, charity food banks for meals. Jay Keeton, surance" wasn't designed, originally at least, Hadassah is one of the largest Jewish planning and development coordinator for to be an annuity system. service organizations in the country. the Central Area Motivation Program, a But no matter that intent of 45 years ago, downtown Seattle food bank, said in the last The influence of Hadassah can be because in the last 20 years politicians have felt in many facets of our society. It three months refugees have swamped the created the expectation of total care for the food bank's converted firehouse sometimes general public once retirement age is has made significant contributions in crowding out poor blacks and other tradi­ reached. There isn't any way any political the fields of education, politics, and tional recipients of free food. candidate, no matter what party is involved, community service. Hadassah is active "I get here at 7 o'clock and there are al­ can possibly hope to reverse that conception at local, State, and national levels in ready 50 or 60 people lined up," Keeton at this time. the United States, and it has had a said. He said the food bank supervisors have One of the biggest drains may have been tried to prevent outbreaks of violence by ex­ record of accomplishments in many that portion of the Social Security system nations of the world. plaining to their long-time customers that whereby recipients could qualify for the full Asian refugees are just as subject to poverty and highest benefits by paying top contribu­ I applaud the efforts of Hadassah and discrimination as blacks have been in tions for only six quarters-or over an 18- and wish it many more years of suc­ the past. But, Keeton said, "It's getting month period. Thus it was that thousands cess and achievement.• more and more tense all the time."• of highly paid executives could qualify for Social Security on top of what private or SOCIAL SECURITY corporate pension plans were available and disregarding what private investments VOICE OF DEMOCRACY WINNER brought in. Some still are drawing top dollar HON.DOUGLASK.BEREUTER from Social Security after having paid in HON. STEW ART B. McKINNEY OF NEBRASKA only a very modest amount to qualify. IN THE HOUSE OF REPRESENTATIVES Old age benefits, disability payments and OF CONNECTICUT Medicare are paid out of the system's cur­ IN THE HOUSE OF REPRESENTATIVES Tuesday, June 8, 1982 rent income, not out of income earned by e Mr. BEREUTER. Mr. Speaker, I the trust funds, which aren't endowment Tuesday, June 8, 1982 think we all recognize that reforms in funds. While it may have been a mistake to e Mr. McKINNEY. Mr. Speaker, it is the social security system are vital to set things up this way, as some even now my privilege to share with this body the system's future. Though some argue, that's how the system works. Con­ an outstanding essay written by one of tributors are paying the benefits of "annu­ would offer temporary stop-gap meas­ itants" and not paying toward their own re­ my constituents, Mr. Brendan C. ures, the York News-Times recently tirement. Murphy. Brendan was the Com1ecticut pointed out that reform cannot merely But it is accepted by the electorate and by State winner of the voice of democra­ be superficial. The paper correctly all but the purists that making the manda­ cy contest sponsored by the Veterans notes that the system will require a tory payroll tax contribution builds rights of Foreign Wars. This year over one­ massive influx of funds in the future to benefits without a needs test. In or quarter million high school students or it will be unable to meet its obliga­ system of government, the majority will get participated in the contest making what it demands even if it has to vote out tions. Clearly, careful reform is neces­ those who refuse to give it and replace them Brendan's award an unusually distinct sary. Those of us charged with such with those who will. honor. reform can only be helped by thought­ Still, the question remains of where the $4 Brendan is presently entering his ful commentary like the News-Times trillion more than can be expected to be col­ senior year at St. Basil's Preparatory editorial. We cannot allow the system lected in worker contributions is to come School in Stamford, Conn. He was the to fall apart and leave the suffering to from to pay the benefits of those who now vice president of his junior class, has "those who aren't politically strong are contributing. This may be a moral obli­ achieved the rank of Life in Scouting enough to stave off the special interest gation rather than a legal debt, but in 1982 politics that amounts to about the same from the Boy Scouts of America, and groups pressuring for their own bene­ thing. has received numerous athletic fits at the expense of others," the This is a problem that won't go away and awards. I hope that my colleagues will paper said. I would like to have the our nation's lawmakers need to address it take the time to read Brendan's essay entire editorial printed in the RECORD: and address it fully and soundly. We cannot on "Building America Together" and

89-059 0-86-9 (Pt. 10) 12990 EXTENSIONS OF REMARKS June 8, 1982 share in his vision of the American If we can achieve this, we will not be consid­ future supplies in order to increase the spirit. ered the last ray of hope. We will be the incomes of c:iairy farmers and decrease Building America Together. America is first of shining examples.e the cost of the dairy program to the two hundred years old, considered to be the Government. last ray of hope, yet she is still just an I will be reviewing these proposals infant. We have gone from an age where A SALUTE TO THE DAIRY PRO­ very carefully. As we talk about this people believed in superstitions that have since been disproved, through an age where DUCERS OF HENRY COUNTY, problem on a national scale in commit­ we believed the earth the center of the uni­ KY. tee, I will remember the farmers of verse, to an age where we have explored Henry County who provide the back­ outer space. HON. LARRY J. HOPKINS bone of a program which has provided The ancient warrior, Hannibal, unwitting­ OF KENTUCKY a fresh and bountiful supply of milk ly defined America's spirit as follows: "We IN THE HOUSE OF REPRESENTATIVES for our entire country for many years. will find a way . . . or make one." Tuesday, June 8, 1982 Again, I salute the men and women This nation has been at war both with of our Nation's dairy industry, espe­ other nations and with herself; she has seen e Mr. HOPKINS. Mr. Speaker, as a recession and depression; she has faced cata­ cially my good friends of Henry strophic losses and still prevailed. America member of the Agriculture Committee County. Your labors are appreciated, has always found a way- or made one! of the U.S. House of Representatives, I and I commend you on your efficient The building of America depends on all of am honored to commemorate Satur­ work over all of these years.e us. It cannot be done separately, through in­ day, June 19, as Henry County Dairy dividual effort alone-it must be done to­ Day. I would like to take this opportu­ gether. We must learn from the mistakes of nity to share with my colleagues the EAST-WEST TRADE: HENRY the past, accept the knowledge of the importance of the dairy industry to all KISSINGER'S VIEW present, and turn our heads to the building of our citizens, and Kentucky's vital of America's future. No matter what in­ stance of individual effort one points to, contribution to this great industry. HON. ROBERT H. MICHEL that effort could not have been accom­ In 1978, total milk production for OF ILLINOIS the State of Kentucky was 2,322 mil­ plished without assistance. The reason for IN THE HOUSE OF REPRESENTATIVES this is simple: something in our very nature lion pounds valued at $239.4 million. tells us that the American, by definition, This total made Kentucky the 13th Tuesday, June 8, 1982 works in concert. largest dairy State in the Nation. •Mr. MICHEL. Mr. Speaker, I recent­ In all of America's past, whenever a great In 1980, Kentucky accounted for 4 ly inserted into the RECORD some accomplishment has taken place, there has percent of all U.S. dairy products been cooperation and compromise. The very newspaper articles dealing with the founding of our country is an example of which were exported. Dairy was also a subject of East-West trade. Among this. Without our forefathers' determina­ significant portion of the total amount those articles was the first part of a tion, stamina, and endurance, without their of agricultural exports in 1980 which two-part series written by former Sec­ cooperation and compromise, this country contributed over $23 billion to our bal­ retary of State Henry A. Kissinger. I would have never left the planning stages. ance of trade. These exports helped would like to offer you the second part When our country or our people were in pay a large part of our bill for import­ danger, we banded together as one. And we of that series and, therefore, at this ed oil. point, I am inserting into the RECORD, have done so again and again, most recently As you know, the Agricultural Act of in the Iranian crisis, when a wave of nation­ "Trading With Russia-II," by Henry alism swept the country. We are banding to­ 1949, as amended, requires the Secre­ A. Kissinger, from the Baltimore Sun, gether even now, in small groups to fight tary of Agriculture to set a nationwide May 27, 1982. support price for milk to assure ade­ crime, cure diseases, help the needy. If we TRADING WITH RUSSIA-II can continue to work together, to work at a quate current and future supplies of common goal, our hope for the future can milk. Unfortunately this Government Soviet Union asks us for help in solving its our nation was first born, we had no path to most unfortunate result of this situa­ economic problems by what amounts to follow; we made our own. We had no gov­ tion is that a large part of the blame Western aid, the industrial democracies ernment; we adopted our own. Because we for this problem is falling on the have the right, and indeed the duty, to were all immigrants, we had no unity, we shoulders of the dairy producer. Es­ insist on restraint and stability in interna­ forged our own. This was the beginning of sentially our country's milk producers tional conduct in return. what we call The American Spirit, which are being punished for being too effi­ The industrial democracies are in a posi­ bonds each and every one of us together. It tion to use their economic strength positive­ could not be broken back then-that is why cient. ly and creatively. There exists a sensible ra­ we went to war-to assert our independence. What is too often lacking in this crit­ tionale for East-West trade which is neither Through bad times and dark times, and icism is the fact that for a majority of unrestricted economic warfare nor uncon­ times where it laoked as though we would the past 33 years, farm milk prices trolled Soviet access to Western trade, not win, it was only strengthened. It could have been above support prices-the credit and technology. If the democracies not be broken in the past. It must not be market cleared itself with minimal cannot concert unified political criteria, broken in the future. Government interference. Further­ they should at least be able to agree on let­ The American Spirit is more than just an more, compared to other food items ting market conditions determine the level idea-it is a reality, and a force. A reality of East-West trade and credit. If govern­ that must never fade; a force that will help which the consumer must buy, milk ment-guaranteed credits and subsidies were us build, together. prices have remained relatively favor­ to end, East-West trade would be reduced to Our forefathers believed in America. Be­ able. However, even in light of favor­ the level of reciprocal economical benefit-­ lieved in her so much so that they were will­ able prices, milk consumption has not or a small fraction of what now exists. If ing to put aside personal obligations, and kept pace with production. the Soviets want to go beyond this-if they mutually pledge their lives, their fortunes, The Livestock, Dairy, and Poultry seek further credits or subsidized prices­ and their sacred honor in order to make the Subcommittee of the House Agricul­ the West should insist on a political quid idea of America a reality. ture Committee, of which I am a pro quo. This should be an example to us and To this end, the industrial democracies future generations. member, is currently reviewing several should jointly take the position that they We must work together to help build legislative proposals designed to dis­ are prepared over the long term to engage America further. We must regenerate her pose of the current Government sur­ in economic cooperation, even on an aug­ spirit. This is the first step, and the hardest. plus of dairy products and to reduce mented scale-but only if there is in return June 8, 1982 EXTENSIONS OF REMARKS 12991 a comprehensive political understanding policies, the creative area for such efforts is cannot eat precepts, and shibboleths are not providing for settlement of the most serious not in the Communist countries but in the nourishing. outstanding problems, specific restraint in Third World-especially among its moder­ Land redistribution is a good thing when superpower conduct and major steps toward ate, market-oriented governments. it leads, as it has in Taiwan, to a better life arms reduction. The condition should not be The Soviet Union is a system with no le­ for those who work the land. It is a bad pious platitudes and should be spelled out in gitimate method of succession, a stagnant thing when it leads, as it has in Mexico and concrete-detail. Nor should we delude our­ economy, a demographic challenge in the a dozen other lands, to no discernible im­ selves: This cannot be achieved without a growth of its non-Russian population, and provement in the lot of the peasantry and a period, perhaps of some years, of disciplined ideological claims whose bankruptcy is fall in the production of both food and cash coordination and restraint among the de­ being proven by the working class of Poland crops. mocracies to convince the Soviets that we in the streets of Polish cities. The joke of And in El Salvador there is a significant are serious. recent history is that the only spontaneous body of evidence to suggest that land Specifically, the democracies should start revolutions in industrialized countries have reform, foisted on that Central American by specifying their objectives in the political been against Communist governments. A republic by Washington two years ago, area to provide clear-cut criteria for system that feels so threatened by even the simply is not producing the desired results. progress. The most important message most elementary liberties, a system so struc­ Under Phase 1 of the plan, now virtually would be that the industrial democracies turally unsound and so patently contrary to completed, 263 estates larger than 1,235 propose to speak with the East with one the human spirit, can prevail only by our in­ acres were confiscated and converted into voice. adequacies, not by its own efforts. cooperatives. The net effect of this is that Second, there should be an urgent updat­ The West, which over centuries has the 35,000 peasant families who once ing of the list of prohibited strategic ex­ shaped a great civilization-of culture, phi­ worked for individuals now work for the In­ ports and a determination to stick to it. losophy, inventiveness and well-being-must stitute for Agragrian Transformation, Third, the democracies should examine at not now abdicate control of its own destiny which holds the titles to the estates. Accord­ the highest level on what political terms the to short-term calculations. Democracy re­ ing to The New York Times, not a notably Soviet Union and the nations in its system quires above all clarity of thought, fortitude reactionary publication, "even the most will enjoy governmentally supported access and leaders willing to present the facts to ardent supporters of the agrarian changes to Western trade and financial resources. their people and prepared to deal with com­ agree that the institute has been inefficient Policies on export credits and financial plexity.e and corrupt." guarantees should be reviewed periodically, Result: a 10 to 30 percent decline in coffee based on a commitment to establish a production, and a decrease of 30 to 40 per­ common and non-competitive policy among LAND REFORM IN EL SALVADOR cent in cotton acreage. Coffee, cotton and all members of the Organization for Eco­ sugar account for about 75 percent of El nomic Cooperation and Development. Fourth, the democracies should agree to Salvador's export earnings. HON. JERRY LEWIS Phase 2 of the ill-starred program, aban­ end progressively all government subsidies OF CALIFORNIA and guarantees for private bank credits to doned by the Salvadoran constituent assem­ Eastern Europe. Given the nearly cata­ IN THE HOUSE OF REPRESENTATIVES bly the other day, would have entailed con­ fiscation of all farms larger than 247 acres. strophic performance of Communist econo­ Tuesday, June 8, 1982 mies, the marketplace would determine the The Reagan Administration has withdrawn proper flow of private credit, probably to re­ •Mr. LEWIS. Mr. Speaker, there has its support of this part of the plan for eco­ strict if not eliminate it. The same principle been much misinformation on land nomic and political reasons long before the should apply to subsidized prices. Concur­ reform in El Salvador. What El Salva­ Salvadoran elections took place. rently, there should be an agreement that dor needs is not land reform at any The 1,700 farms involved produce half of rescheduling of existing debts will be heavi­ Salvador's sugar, 60 percent of its cotton cost, but land reform which works in above self" is the motto of the Rotary sible budget during the week of May When the House of Representatives re­ International. The Rotary Club of St. 24 struck a solid blow to the vital parts jected all the alternative budget proposals Thomas recently honored one of their of our U.S. economy. After 4 months last week, the country was denied the show of fierce wrangling and 46 hours and of fiscal discipline it needs from government own who truly exemplifies this in order to have any chance of crawling out motto-Hein Eigild Christensen. 12 minutes of actual floor debate on 7 separate budget proposals and 68 of this crippling recession. But if there is All of us here in the Congress recog­ any solace to be found in the House's nize the Rotary as a service organiza­ amendments to various aspects of budget fiasco, it is this: the voters saw a tion of business and professional men these packages, the Democrat-con­ clear demonstration of where the problem with humanitarian objectives. These trolled House of Representatives lies. men are community-minded individ­ flunked the biggest test of the year. Part of it lies in President Reagan's stub­ uals who work together in order to Since February of this year the main born resistance to a "mid-course correction" build a better community and better debate in Congress has been over the in his own policies-a resistance that inhib­ budget. It now appears that what we its most of the congressmen of his own nation. There is no better way to de­ party from supporting any such change. scribe Hein Christensen than this. His were hearing was all talk without any record of public service speaks for action to back it up. But a larger problem is the inability of Quite clearly, the burden of action the Democratic Party to forge an internal itself through his tenure on: Virgin Is­ agreement on an alternative to Reaganom­ lands Board of Public Accountancy; falls upon the House. The other body ics. Banking Board of the Virgin Islands; has already passed a budget proposal The House was, as always, a near-perfect Governor's Tax Advisory Board; and, and is waiting to go to conference to reflection of those external realities. By Public Utilities Commission. reach final agreement. It is the Demo­ March of this year, Washington Post-ABC The list of organizations to which crat-controlled House which is holding News polls showed a shift in public opinion Hein Christensen gives of his time and up the whole process. It is they who from the earlier broad support of Reagan's talents is enormous. They include: are permitting runaway deficits to policy. By a 2-to-1 margin, those polled said American Institute of Certified Public race on and the prospects of unaccept­ Congress should make "substantial" able high interest rates to persist. Vir­ changes in Reagan's budget. A follow-up Accountants; Virgin Islands Society of poll in April found most saying his tax cuts Certified Public Accountants; Har­ tually all economists agree that inter­ and domestic spending reductions were too monic Lodge China, directly assisting Jung and other South Korean prisoners. man later explained that he "had not meant those governments' internal security forces But any quiet diplomatic initiatives under­ to alter his policy of playing down the which are responsible for most of the taken in countries like the Philippines, El rights issue in foreign relations." human rights violations in those countries. Salvador, or South Africa have been ren­ Under international law, most notably the The administration has, on occasion, dered meaningless by its many actions in United Nations Charter, the U.S. is obliged argued that its "security relationship" with support of those regimes. to speak out and take action against repressive governments "can sometimes also The administration has rationalized its in­ abridgements of human rights. Under its do­ enhance our ability to persuade other coun­ action on human rights with the theory mestic law, Section 502b of the Foreign As­ tries to improve their human rights situa­ that there is a distinction between "authori­ sistance Act, the U.S. is required to promote tions." However, there has been no evidence tarian" and "totalitarian" regimes. Accord­ increased observance by all countries of that the U.S. has used any leverage to pro­ ing to Jeane Kirkpatrick, authoritarian "internationally recognized human rights." mote reform. In El Salvador, for example, countries friendly to the U.S. are only Moreover, the U.S. is obliged to make its rights violations by government security "moderately repressive," whereas totalitar­ military and economic assistance contingent forces have intensified with increased mili­ ian governments are worse violators of on the observance of human rights, under tary assistance. In Taiwan, the security human rights, are less apt to change, and Sections 116 and 502b of the Foreign Assist­ police, after receiving U.S. police equipment, require strronger human rights actions. ance Act, enacted by Congress in 1975 and tortured to death Professor Wen-Cheng, a How one can classify torture, widespread 1976 and reaffirmed each subsequent year. U.S. permanent resident who was visiting disappearances, and arbitrary detentions The Reagan administration has exhibited Taiwan last July. without trial as "moderate" is not ex­ little inclination to comply with these inter­ Economic interests have taken precedence plained. The Senate Fore,ign Relations Com­ national and domestic legal obligations. In over human rights concerns. The adminis­ mittee rejected this theory when it rejected fact, the President declared that he was op­ tration introduced a policy of "constructive Ernest Lefever. "Dead is just as dead if posed to public statements or sanctions engagement" with South Africa, claiming you're killed by a rightist as by a left-wing against "pro-Western" countries. In his that "important Western economic, strate­ government," declared Republican Chair­ view, the overriding foreign policy priority gic, moral, and political interests are at man Charles Percy. was containment of Soviet aggression, stake." President Reagan stated that we A corollary to this theory is that efforts to which required seeking close relations and could not "abandon" a country which pro­ enhance human rights in authoritarian re­ visible ties with all "anticommunist" govern­ duces minerals we all must have. Adminis­ gimes are dangerous to U.S. interests be­ ments. tration officials, seeking to make this ac­ cause they disrupt "law and order." To the This attitude explains the major change commodation with South African racism Reagan administration, opponents of au­ in U.S. policy toward Argentina. General more palatable, have cited "improvements" thoritarian governments are by definition Roberto Viola was among the first heads of in South Africa's human rights situation. "terrorists" whereas opponents of commu­ state to be received by President Reagan. Ambassador Jeane Kirkpatrick even told nist governments are "dissidents." Thus, Prior to his arrival, eight leaders of the the press: "South Africa's political system President Reagan posed for photographs human rights movement in Argentina were has some good elements in it-it is a democ­ with Soviet dissidents in Washington and arrested and held incommunicado for a racy for whites.... " Ambassador Kirkpatrick refused to meet week; two trade unionists were abducted Commercial considerations influenced the with human rights leaders when visiting Ar­ and tortured; 68 mothers of disappeared decision to lift human rights sanctions gentina and Chile. Secretary of State Haig persons were detained by the police for sev­ against Chile. One of the administration's even speculated that the rape and murder eral hours. Ignoring these events, the Secre­ first acts was to end the ban on Export­ of American nuns in El Salvador followed tary of State declared that human rights Import Bank credits to Chile to facilitate an "exchange of fire" after the women ran a conditions in Argentina had "substantially" the purchase of U.S. goods. The sanction "roadblock" against the armed forces-a improved, and the administration success­ had been imposed in 1979 following Chile's theory refuted by the F.B.I. and the evi­ fully pressed Congress to repeal its embargo refusal to prosecute or extradite to the dence. on military assistance and sales to that United States the Chilean police officials re­ This administration's preference for country. The U.S., furthermore, reversed its sponsible for the political murders in Wash­ human rights actions against totalitarian re­ position in the multinational banks and ington of Chilean exile Orlando Letelier and gimes has not resulted in consistently voted to support loans to Argentina. At the his American colleague Ronni Moffitt. strong, meaningful actions directed at those U.N. Human Rights Commission, the U.S. Even with respect to the Soviet Union, governments. In fact, the administration endorsed Argentine efforts to weaken U.N. economic benefits have taken precedence sold police equipment to Yugoslavia and the action on disappearances. over human rights. The U.S. lifted its wheat People's Republic of China. It waived the President Reagan likewise invited the embargo and proceeded with technology Jackson-Vanik Amendment for Romania de­ military dictator of South Korea to Wash­ sales despite continued Soviet occupation of spite restrictive emigration practices. It re­ ington, publicly praised his "commitment to Afghanistan; the arrest and trial of leading mained silent on trials in Czechoslovakia. freedom," and effectively strengthened U.S. dissidents; and the President's expressed Over the past year the administration has military and police ties with that govern­ view that the Soviet Union is the "greatest" signalled to the world that it is not in our ment. In the months before his arrival, human rights violator in the world, requir­ national interest to advance the cause of General Chun Doo Hwan had seized power ing "exceptional" treatment. To expand human rights. Appeals on behalf of select by force; suppressed mass demonstrations business with the U.S.S.R., the administra­ individuals in the U.S.S.R. and public state­ for democracy; and imprisoned his political tion, prior to the Polish crisis, considered ments about Poland do not consitute a opponents. In the Philippines, Vice Presi­ seeking repeal of the Jackson-Vanik amend­ human rights policy. State Department offi­ dent Bush embraced the corrupt Marcos ment which prohibits trade concessions to cials have themselves expressed concern dictatorship after a government-controlled communist countries which restrict emigra­ about pursuing a foreign policy that does election, saying, "We love your adherence to tion. The repeal would have eliminated con­ not reflect American values. The Depart­ democratic principles and democratic proc­ cern for human rights from our economic ment's November memo pointed out that esses." relationship with the Soviet Union, at a the greatest beneficiaries of such a policy Close identification with repressive re­ time when Jewish emigration was at its are our adversaries. "Neutralism abroad and gimes has been bolstered by a policy of un­ lowest point in years. a sagging domestic spirit" are the products restrained arms sales. A July presidential The sole method to advance human rights of this absence of a commitment to defend policy directive conspicuously omitted refer­ put forward by this administration has been democracy and freedom. "While we need a ence to human rights in a list of seven fac­ "quiet diplomacy." However, without military response to the Soviets," asserted tors to be weighed in deciding whether to strength behind it, quiet diplomacy cannot the memo, "we also need an ideological re­ provide arms to foreign governments. The be effective and U.S. actions have shown sponse.... "It went on to recommend that result has been extensive military support very little of such strength. There are ex- the U.S. stop "simply coddling friends and 12996 EXTENSIONS OF REMARKS June 8, 1982 criticizing foes. Despite the costs of . . . a pasture-land management; rural develop­ Often and sadly a new volunteer hides in human rights policy, it is essential." ment, with volunteers assigned to the Water his or her house, only leaving to go to work. It is evident that the Reagan administra­ and Forestry service; public health, with But as his fear of the "unknown" lessens tion's close ties with repressive governments nurses, lab technicians and nutritionists; and he begins to learn what African culture have alienated many around the world who and lastly national education with volun­ is, he risks more and more going to his look to this country for leadership in ·their teers in language teaching, pedagogy, P.E., neighbors and colleagues homes, who most struggle for human dignity. The credibility vocational education and television produc­ often offer him a warm welcome, who put of U.S. initiatives on behalf of communist tion. him at ease and who teach him how to live victims has even been undermined by its The Peace Corps Volunteers offer techni­ with people. To be sure, he retains his support of repression in other areas. The cal assistance, contribute to a better under­ American identity, whose characteristics are administration's policy has created a cli­ standing of the American culture by Niger­ of interest to his close Nigerian friends, but mate that makes it easier for governments ois and to a better understanding of Niger­ he learns more and more to get involved in to increase violations of human rights. Its ois and their culture by Americans. Nigerian life and to stay open to new experi­ military and police support for repressive The volunteers, of which 60 percent are ences. regimes has directly contributed to such vio­ women, come to Niger with various perspec­ Among the volunteers, there are those lations. Its unqualified endorsement of dic­ tives because of the nature of the recruit­ who find their satisfaction in the accom­ tatorships has helped retard transitions to ment/publicity of the Peace Corps in Amer­ plishment of a difficult task under painful democratic or civilian rule. It has denied ica. They want to travel, learn a new lan­ conditions. One such volunteer said: "I moral support to countless victims through guage, live in a mud hut in the bush, be im­ almost went home 6 times. At the beginning its lack of candor about the human rights mediately accepted by the villagers. be a the isolation and the separation from my practices of their governments. part of a racial minority if they are white, parents and friends in the USA was intoler­ The administration still has time to devel­ be challenged by a job and promote develop­ able. Now, after having lived for 2 years as a op a human rights policy that is strong, con­ ment and world peace. After three months participant in a different culture having dif­ sistent, and effective. This will require aban­ of technical and cultural training, they have ferent mores, I have gained an understand­ doning the short-sighted perception of U.S. a more realistic concept of what to expect. ing and an appreciation of life that I could interests and pursuing human rights objec­ They are taught their professional, person­ never have had otherwise. Here is a differ­ tives worldwide as forcefully as military and nal responsibilies as civil servants working ent world than ours, with its own concepts economic concerns. Priority will have to be for the government and the people of Niger. and definitions of words which I thought I accorded to human rights and leverage Examples of tasks undertaken by 4 volun­ knew and understood. I had to re-learn the made available to support human rights ini­ teers follow: the first volunteer is assigned sense of some words, such as love, friend­ tiatives. The record of the first year affords to the technical Center for Agriculture; the ship and courage. little optimism that this will be done.e functions there are to increase food produc­ In short the volunteers see themselves dif­ tion by increasing harvests. His task is to ferently after 2 years in Niger. They know work with the farmers for an entire agricul­ themselves better than at the beginning and THE PEACE CORPS IN NIGER tural season and to use advanced methods they find themselves to be more open and and even more to encourage men as well as more sensitive for having lived here. When HON. JIM LEACH women to read and write. The volunteer can they leave for the U.S. they can say with bring about all sorts of things, repair agri­ ease that Niger and the Nigerians have OF IOWA cultural equipment which is defective, de­ helped them as often, if not more, than IN THE HOUSE OF REPRESENTATIVES termine whether the farmers can really use they helped Niger.e Tuesday, June 8, 1982 the advanced methods, and if not, why not. One volunteer works in fisheries as a e Mr. LEACH of Iowa. Mr. Speaker, counterpart to a Nigerian technician in the TRIBUTE TO SGT. DANIEL last year the Peace Corps, under the Waters and Forestry Service. He or she can D'ANNUNZIO able leadership of its current Director, live with migrant fishermen who travel Loret Ruppe, celebrated its 20th anni­ from one place to another, wherever there versary. During those 20 years, the is work, collecting data on production and HON. LYLE WILLIAMS conditions in the marshes and in the fish OF OHIO Peace Corps has quietly, and often ponds and helping and advising on repro­ with little public acclaim or recogni­ duction of fish. IN THE HOUSE OF REPRESENTATIVES tion, gone about its mission of sharing One volunteer specializing in the prob­ Tuesday, June 8, 1982 with millions in developing nations lems of nutrition works for the Ministry of around the world the knowledge and Public Health and Social Affairs in the ma­ e Mr. WILLIAMS of Ohio. Mr. Speak­ skills essential toward building a ternal and child health protection service. er, I would like to commend Sgt. better life for themselves and their These activities concentrate on teaching Daniel D'Annunzio, a deputy sheriff in communities. In Niger, one such coun­ basic nutrition to mothers and therefore to Trumbull County, Ohio, on his being try which has felt the special Peace their families. awarded the American Legion Law En­ Lastly, one volunteer works as an English forcement Recognition Award. Corps presence, an article appeared in teacher-this is taught as a foreign lan­ a daily newspaper late last year which Sergeant D'Annunzio is a dedicated guage-giving 18-24 hours of course work law enforcement officer who possesses has since been translated and which I each week in a secondary rural school. would like to share with my col­ Beyond his/her secondary project such as the characteristics and traits of a well­ leagues. An informal translation from ­ safe and secure and providing a pleasant at­ the system used for most other blue-collar mosphere. much interest, initiative, and aggres­ employees in the Government. We then siveness as he did prior to his wound­ MR. AND MRS. FELIX TYSZKO, compared GPO wages for six occupations Fredonia, N. Y. ing. His assailant, you may be interest­ with rates paid under the appropriate FWS ed to learn, was arrested by other schedules for the Washington, D.C. area. As EDITOR, THE JOURNAL: After reading your Trumbull County sheriff's deputies shown in enclosure II, GPO employees in all paper, we were not sure what we would find and is currently incarcerated in the six occupational comparisons were paid at the fair. Perhaps we would have a good Ohio State Penitentiary after having more than their FWS counterparts. Please let us know if we can be of further time, perhaps not. been convicted of felonious assault, ag­ assistance. So we came anyway, hoping for the best. gravated burglary, and unlawful pos­ Sincerely yours, We were in Knoxville the week of May 10, session of dangerous ordnances. CHARLES A. BOWSHER, spending May 11and12 at the fair. We and In my opinion, Sergeant D'Annunzio Comptroller General 70,000-to-80,000 people had a grand time. is a law enforcement officer of the of the United States. The fair was full of many people of all highest caliber. He brings credit to ages who just wanted us to have a good COMPARISON OF GPO AND FWS WAGE RATES 1 time, most of them with a big smile. And himself, his family, his coworkers, and outside the fair, from bellhops, clerks and to police officers everywhere.e Difference cops, to the hotel manager, everyone was Occupation GPO pay FWS most helpful and friendly-and smiling. rate rate 2 GPO WAGES Amount Percent The fair itself was great. If all of the Knoxvillians can keep up the great poise Bookbinder ...... $27,230 $24,573 $2,657 10.8 throughout the summer until October, you Compositor ...... 27,685 23,320 4,365 18.7 HON. NEWT GINGRICH Carpenter ...... 27,419 21,286 6.133 28.8 all will have made many great friends for OF GEORGIA Electrician...... 27,419 22,410 5,009 22.4 Knoxville. IN THE HOUSE OF REPRESENTATIVES Forklift operator ...... 18,009 16,559 1,450 8.8 FRED W. BAUMGARTNER, Janitor...... 14,600 12,028 2,572 21.4 La Grange, lll. Tuesday, June 8, 1982 1 1 e Mr. GINGRICH. Mr. Speaker, my det;r~~~~n~ u~i ~r~~~e; ~ t~nuTi~r ;~r~~ ~~~~eh~~':~~· r:i: EDITOR, THE JOURNAL: Just returned home and multiplied it by 2,08~ hours, 1re number of hours in an 8-hour day , 260- to New Jersey from your World's Fair and colleague on the Joint Committee on day work year. Printing, Senator JOHN WARNER of Vir­ 2 Bookbinder and compositor were compared to the FWS "Lithographic and had to take the time to write and thank Printing Plant Wage Schedule" and the other occupations were compared to your city and people for the way we were ginia, recently received information the FWS regular wage schedule. Comparisons to the regular schedule were from the Comptroller General of the treated. The bus drivers, waiters and wait­ r:~~~~:~i:h:i~niss:~ ~ig~~~hs,;ii,~~ ~~t::; :~a~~~~~a~~ep~t~ resses, campground personnel, storekeepers, United States that I want to share rate.e etc., were the friendliest and nicest people with my colleagues. we ever met. Your city is really great. We The Comptroller General's informa­ stayed at Fireside Campground and we tion indicates certain classes of work­ would also like to thank Mr. Bill Mullins ers at the Government Printing Office FAIR PRAISE FOR KNOXVILLE and his staff for the hospitality we were are getting higher than average wages. shown while we were there. For instance, according to the Comp­ HON. JOHN J. DUNCAN I think Knoxville did themselves proud troller General, carpenters at GPO are OF TENNESSEE for the way their beautiful World's Fair paid 28 percent higher wages than car­ IN THE HOUSE OF REPRESENTATIVES turned out. MRS. WILLIAM SOMMERS, penters in any other Federal agency. Tuesday, June 8, 1982 Tuckerton, N.J. Clearly, the wage scales at GPO will e Mr. DUNCAN. Mr. Speaker, the have to be reformed. I urge my col­ In addition to the views of these visi­ 1982 World's Fair in Knoxville is only tors, the San Francisco Chronicle leagues to support efforts to do that, a little over a month old, yet it has al­ in the interest of fairness to all Feder­ looked upon the fair with envy. The al employees. ready entertained and attracted over 2 following guest editorial from the The Comptroller General's informa­ million visitors. While I could express Chronicle appeared in the May 16 tion follows: my own praise of this fair, I think my issue of the Knoxville News-Sentinel. colleagues may be more interested in We are a bit envious these fine spring COMPTROLLER GENERAL the views of visitors from the East, OF THE UNITED STATES, days of the folks in Knoxville, Tenn., (popu­ Washington, D.C., May 11, 1982. Midwest, and West. The following let­ lation 184,000) because all they have to do is Hon. JoHN W. WARNER, ters appeared in the May 31 issue of hop aboard a bus downtown to arrive at U.S. Senate, the Knoxville Journal. their own World's Fair within a couple of Washington, D.C. EDITOR, THE JOURNAL: During the opening minutes. We are envious and a bit wistful, of DEAR SENATOR WARNER: This letter is in re­ week, we spent three days in Knoxville and course, because we have a bagful of memo­ sponse to your May 3, 1982, request asking visited the fa~ two days. We congratulate ries of the adolescent excitement when we us for any information we might have on you, people of Knoxville. could go over the still new Bay Bridge, fresh the Government Printing Office's not only to Knoxville but also to leagues. credit supply was diverted into the corpo­ motels, hotels, and restaurants within a 100- STATEMENT OF CONGRESSMAN BYRON L. rate takeover wars. mile radius. This means a big boost in busi­ DORGAN How much credit is $70 billion dollars? ness, in a time of recession, for Eastern Ten­ "When top-drawer borrowers, such as It's almost as much as the total value of nessee but also for portions of Kentucky, DuPont, Seagram, and Mobil, hit the banks everything American farmers grew last North Carolina, Georgia and Virginia which for multibillion dollar loans to finance year. It was enough to finance all farm op­ are close by. The promoters say that all merger bids, there is less left for small busi­ erating loans made by insured banks in all roads lead to Knoxville this summer and ness. would-be homeowners, or other bor­ 50 states in 1980-two times over. the people along those roads anticipate that rowers." -Business Week editorial, August Look at it another way. The $5.5 billion they will be feeding, housing and fueling 3, 1981. line of credit that Mobil used in its effort to the multitudes as long as the big party lasts. "Takeovers by the corporate giants have buy up Conoco, was enough to finance all Knoxville did what Spokane did in 1974 to weakened or destroyed countless thousands the business and farm operating loans in my push itself into the national spotlight. It of small and medium-sized businesses that state of North Dakota that year, three took an area of flophouses and unneeded were star performers when they were inde­ times over. railroad yards, applied the tools of redevel­ pendent." -Arthur Burck, securities lawyer This Administration's Dr. Spock-like per­ opment and created a temporary jewel com­ and merger specialist, in interview in For­ missiveness regarding big corporations and plete with some buildings which will be per­ tune magazine, Octover 19, 1981. their merger plans, no doubt is partly re­ manent. Twenty-two foreign nations took Imagine another gasoline shortage. People sponsible for this torrential credit drain. space, including the People's Republic of are sitting for hours in sweltering gas lines But we in Congress must share the blame. A China which is participating in the first that stretch on for blocks. At the same time, number of provisions in the federal income international fair for China since the St. an enormous fleet of Mac Trucks is parked tax laws-for which we are responsible-ac­ Louis Exposition of 1904.e in a lot, their engines racing. The trucks tually encourage and subsidize the waste. never go anywhere. They never carry any STUDENT LOANS FOR CORPORATIONS freight. They just keep trading parking SCARCE SUPPLY OF CREDIT spaces with one another, racing their en­ For example, when a corporation like gines and burning gas. Mobil borrows money to buy another com­ Imagine further that the federal govern­ pany, it can deduct the resulting interest HON. THOMAS A. DASCHLE ment helps to buy the gasoline for this fleet payments from its federal income taxes. In OF SOUTH DAKOTA of go-nowhere trucks. effect, the U.S. Treasury chips in about 46¢ IN THE HOUSE OF REPRESENTATIVES That is almost precisely what is happen­ for every dollar in interest such corpora­ ing with this nation's scarce supply of tions pay. Tuesday, June 8, 1982 credit. It's like a subsidized student loan pro­ • Mr. DASCHLE. Mr. Speaker, some Credit is the gas on which our economy gram-for corporate mergers. And while we of our major corporations are wasting runs. It is in short supply. The price is so cut the student loan program, the merger high that many business people and farmers subsidy program keeps growing bigger. billions of dollars of the Nation's It's also doing us great harm. scarce supply of credit, and the Feder­ cannot afford it. Bankruptcies are at record levels. The entire economy is sputtering. The guzzling of credit for corporate merg­ al Government is partly to blame. ers and takeovers means less for everyone When corporations like Mobil and CREDIT GUZZLERS else-and higher interest rates. United States Steel borrow billions of Yet many of our largest corporations are guzzling billions of dollars of our scarce SNOUTS AT THE TROUGH dollars to buy up other companies, credit for purposes that are about as useful There's been a lot of talk about how the they use up credit that would other­ as the Mac Trucks gunning their engines in federal government's appetite for credit is wise be available for our farmers and the parking lot. "crowding out" other borrowers. There's small business people. Tighter credit They are not using these loans to build truth in that. But the federal government and higher interest rates are the new factories or to buy new machines. They isn't the only big snout at the nation's result. are not creating new jobs, except for the credit supply trough. This wasteful corpo­ The best available estimate suggests lawyers and accountants who grow rich or­ rate borrowing is right in there too. As Busi­ that corporations used up over $30 bil­ chestrating megadollar paper shuffles. In­ ness Week Magazine put it in an August 3, stead, they are draining the nation's credit 1981 editorial, "When top-drawer borrowers, lion of the Nation's credit supply last supply merely to buy and sell one another­ such as DuPont, Seagram, and Mobil, hit year just buying and selling one an­ to trade places in the economic parking lot. the banks for multibillion dollar loans to fi­ other. Corporations spent over $82 billion last nance merger bids, there is less left for This corporate credit guzzling year playing this monopoly game. That was small business, would-be homeowners, or "crowds out" productive borrowing more than double the amount so spent the other borrowers." just as much as does the Federal defi­ year before. If that $82 billion had gone into In other words, the $70 billion in credit cit. new factories and equipment instead of into that went into the merger and takeover What is worse, the Federal Govern­ buying up other companies, we could have wars meant $70 billion less-and higher in­ increased business investment 25 percent terest rates-for the Main Street businesses, ment actually encourages this credit last year. the farmers, the builders, the individuals waste. A number of loopholes in the The $82 billion that corporations spent who want to buy homes and cars. Federal income tax laws reward corpo­ buying up another last year was many times These higher interest rates in turn put rations for this unproductive behavior. the amount they will receive in tax cuts many smaller businesses so deep in the hole, It is not the free market that is mo­ next year. We could have provided a much that they have to choose between selling tivating many of these acquisitions. It greater spur to new investment, at virtually out to a larger company, or going bankrupt. is the perverse Government incentives no cost to the U.S. Treasury, if, instead of In this way the corporate merger spree be­ those new tax giveaways, we had simply comes a syndrome that keeps feeding upon that are written into our income tax channeled some of the $82 billion in more itself. laws. productive directions. This isn't just a problem for smaller busi­ My colleague from North Dakota, A substantial portion of these takeovers nesses, moreover. It is a monkey wrench in Representative BYRON DORGAN, alerted was financed with borrowed money. Nobody our entire economy. June 8, 1982 EXTENSIONS OF REMARKS 12999 Consider the billions of dollars Congress their own business decisions, taking their line item on a conglomerate balance sheet. spent' last year on new corporate tax cuts, own risks, suddenly find themselves forced If times get rough, they don't roll up their that the Administration persists in calling to push paper through endless channels and sleeves with their neighbors. More likely, an "economic recovery" program. We were higher-ups just to make simple business de­ they bail out. told that those new tax breaks, that went cisions. The current Administration speaks admi­ primarily to the very largest corporations, FILLING OUT THE FORMS rably about "community." But then they would be used to invest and build and create "It can take a year to get approval for a become cheerleaders for the mergers and ac­ jobs and prosperity. But that didn't happen. strategy change," the cofounder of one quisitions which frequently destroy the eco­ Instead, much of those billions disappeared small company gobbled up by Exxon com­ nomic basis of the very communities that down the merger and takeover drain. plained to Business Week magazine. "The they say they value so highly. STEEL'S ROVING EYE Some will disagree. They will offer sophis­ speed at which Exxon moves is incredibly ticated arguments on how corporate merg­ Consider the United States Steel Compa­ slow." ers advance "efficiency" and other abstrac­ ny. Steel companies have been blaming "It's a full time job just filling out all the forms Exxon wants," grumbled the founder tions from the economic texts. They will their troubles upon the Japanese, the Kore­ say, in effect, that the very fact that these ans, the federal government, on just about of another small company that lost its inde­ pendence to Exxon's empire-building appe­ mergers occur, makes them somehow right. everyone. If there is one industry that needs Obviously, not every corporate acquisition new plant and equipment, it is steel. Yet tite. And an engineer for an independent oil is to be regretted. Sometimes the owners of when U.S. Steel accumulated a sizeable smaller businesses want to sell out and bank account, through new tax breaks and company taken over by Tenneco moaned to a Wall Street Journal reporter, "It took me retire. Sometimes, acquisition by another otherwise, did it build a new steel plant? company is the only alternative to collapse. No. It went out and paid $6 billion for an eight weeks to get management to approve a work order just to move a telephone inside But such mergers would happen anyway, oil company. without special provisions in the tax laws How can we ever have a healthy steel in­ my office." This stifling conglomerate bureaucracy pushing in that direction. dustry, if our steel industry itself loses in­ The major mergers we have seen of late terest in building a healthy steel industry, can be the kiss of death for the smaller, more enterprising businesses so acquired. A do not fit these categories of innocence. and if our federal income tax laws encour­ When U.S. Steel bought Marathon, it was age our steel executives' roving eye? recent study at the Massachusetts Institute of Technology found that small companies not a case of the tired head of a family busi­ What good does it do to give billions of ness selling out so that he could move to dollars in new tax breaks to big corpora­ taken over by larger ones fail much more frequently than do those that remain inde­ Florida. Nor was it a distress sale. tions, supposedly for new investment, when Rather, U.S. Steel had its eye on, among tax breaks already in place encourage these pendent. "Takeovers by the corporate giants have other things, the billion dollars in special corporations to use this money instead tax breaks it stood to gain from this deal. simply to take legal title to old investments? weakened or destroyed countless thousands of small and medium-sized businesses that That was in large measure, a tax-loophole­ We are always talking about creating new induced merger. loopholes-politely call "incentives"-when were star performers when they were inde­ we ought to be talking about eliminating pendent," Arthur Burck, nationally-known LAWYERS' BONANZA some of the loopholes that impede economic securities lawyer and merger specialist, told "Whatever new practice areas lawyers recovery. Fortune magazine last October. dream up," declared Fortune magazine re­ It's not just the diversion of capital, more­ If we wanted to crush the spirit of initia­ cently, "it's doubtful that they will ever over. Perhaps more important is the diver­ tive and individual risk taking in America, strike a bonanza as big as takeover work." sion of the time and energy of our corporate and to cut off our free enterprise system at Fees for this work, according to Fortune, executives themselves. its roots, we could find no better way than run $400-$600 per hour, or over three times Instead of spending their time designing to let the current corporate merger spree go what someone working for the minimum and producing better products, they sit unchecked. wage will make in an entire week. The two around plotting like pirates to take over JEFFERSON'S WORRY leading merger lawyers in New York City other companies, or to defend their compa­ The opportunity to be your own boss, and each take home over one million dollars per nies from such pirateering. to achieve the financial independence that year. Just look at the top executives in our enables you to to speak your mind in public When Mobil and U.S. Steel were battling major corporations. Increasingly, they are affairs, in part of what America is all about. to buy up Marathon oil, the lawyers who people who don't know a thing about pro­ Jefferson held the view that business inde­ conducted this fracas made over $10 million duction processes or products. The Henry pendence is essential to democracy. He did dollars. And when du Pont bought Conoco, Fords and the Thomas Edisons have given not think democracy could survive if eco­ the cut for the investment bankers was $29 way to the finance wizards who generate nomic power became concentrated in a few million. profit without creating wealth. Our econo­ hands. GOOD WORK IF YOU CAN GET IT my is performing accordingly. If Jefferson were with us today, I think he Corporate executives benefit as well. The LESSON FROM JAPAN would be worried. management consulting firm of Towers, On this point we can learn a lesson from It isn't just a question of economic effi­ Perrin, Forster and Crosby found that chief the Japanese. In Japan, takeover battles are ciency. It's doubtful that an economy domi­ executives at the 100 largest industrial firms rare. Japanese law makes them very diffi­ nated by a few large corporations can be make more than twice the compensation en­ cult. Partly as a result, Japanese executives very efficient even in a economist's sense. joyed by their counterparts at firms ranked can spend their time developing and produc­ But even if it were, that wouldn't be the end 400 to 500. The bigger the company, the ing better products and selling them all over of the matter. America stands for more than bigger the boss's paycheck, and this alone is the world. They can use their nation's efficiency. It stands for opportunity, for an inducement to the boss to try to make supply of credit in a similarly-productive community-for values that have made us a the company bigger, fast. fashion. light of the entire world. We might as well face it. Corporate merg­ Each will draw his or her conclusion on Community is not hydroponic. It does not ers and acquisitions have become a train of whether the Japanese approach to take­ grow in thin air. Community requires an handsome gravy for the lawyers, account­ overs, or ours, is working better. economic culture of local business people ants, executives and financiers who have a While corporate takeovers are diverting who do their business with local banks and piece of this action. Many who oppose the the attention and energies of our execu­ suppliers, who know their customers and legislation before us today, fall into this tives, they are engulfing the genuine pro­ employees face to face. It requires business group. ducers in our economy in a sea of conglom­ people with homes and children and a con­ I am not suggesting that those with an erate paperwork and red tape. sequent personal stake in the community's economic interest in mergers and takeovers Traditionally, opponents of such mergers well being. have nothing of value to say on the subject. have talked about the lessening of competi­ Locally-owned businesses are a cohesive But big mergers do mean big dollars for tion. That's important. But equally impor­ force that helps to bind together all the those involved, and such people may not be tant is the loss of the initiative and vision of rest. inclined to look too critically upon the hand individual entrepreneurs that has always BAIL OUT that feeds them so well. been the spark that has kept our economic When locally-owned businesses are bought It is my view that we should discourage engine moving. out by larger ones, all this changes. There mergers and acquisitions, so that the energy When a giant corporation like Exxon buys are no more roots. Local banks and suppli­ and resources of our business people can up another company especially a smaller ers are shunted aside. The factory or super­ flow in more constructive directions, and so one, people who were accustomed to making market or fast-food outlet becomes just a that the economic basis of our communities 13000 EXTENSIONS OF REMARKS June 8, 1982 and of our democracy can flourish. At the ceeded in helping over 15,000 "prison­ CONGRESSIONAL SALUTE TO very least, we should stop using the powers ers of conscience" gain release. It has THE RESIDENTS OF OAKLAND, of government-specifically, the tax laws­ to encourage and reward this form of behav­ accomplished such feats through un­ N.J. UPON THE CELEBRATION ior. ending letterwriting, publicity cam­ OF THE 80TH ANNIVERSARY BACK TO FREE MARKET paigns, legal assistance, missions, and OF THE BOROUGH OF OAK­ I am not talking about interfering with the publishing of special reports. LAND the "free market." I'm talking about getting These activities have raised public back to the free market-about eliminating awareness of the urgent need for ef­ HON. ROBERT A. ROE the tax provisions that distort this market fective international protection of fun­ OF NEW JERSEY by encouraging corporations to do that which they might not do otherwise. damental human rights. By awakening IN THE HOUSE OF REPRESENTATIVES I am suggesting only that mergers and ac­ world opinion, Amnesty International Tuesday, June 8, 1982 quisitions stand on their own merits, and encourages a potential regulating not on the back of the U.S. taxpayer. force which can exert pressure upon •Mr. ROE. Mr. Speaker, on Saturday, The simplest place to start would be to June 12, the people of the Borough of and perhaps check further human Oakland and State of New Jersey will eliminate the tax deduction for borrowings rights crises. used in corporate takeovers and acquisi­ celebrate the 80th anniversary of the tions. I have introduced a bill, H.R. 4562, Amnesty International's unparal­ incorporation of the Borough of Oak­ the "First Things First Credit Act of 1981," leled achievements have earned the land as a community encouraged and to accomplish this. organization worldwide esteem. In supported by people united together As presently drafted, H.R. 4562 would 1977 it was awarded the Nobel Peace apply only to takeovers that are fought by with purpose and progress in seeking the company being acquired. To be sure, Prize. In addition, it has been ex­ to improve the quality of life, recre­ such contested takeovers can be the most tended consultive status by the United ational and civic endeavors of the fam­ monumental diversion of corporate energies Nations, the Organization of American ilies of the Borough of Oakland. I and resources since the invention of the ex­ States, the Council of Europe, and the know that you and our colleagues here pense account. But, the ill effects of credit­ Organization of African Unity. The or­ in the Congress will want to join with financed mergers arise whether they are ganization is recognized for its unique me in extending our heartiest con­ contested or not. gratulations to the residents of Oak­ For this reason, I am now of the view that ability to maintain political neutrality Congress should deny the interest deduction while actively upholding the rights of land on this most noteworthy occa­ for all mergers and acquisitions when the those persecuted by politicians. sion. combined assets of the companies involved I am pleased to bring to your atten­ At the outset I call your attention to exceeds a set amount, perhaps $200 million. the assiduous efforts of the members Beyond this, I support in principle your tion, Mr. Speaker, successful efforts of of Oakland's 80th Anniversary Com­ own bill, H.R. 6295, which would eliminate a the Portland, Oreg. chapter of Amnes­ mittee under the general chairman­ number of loopholes which give companies ty International. One of the oldest ship of the Honorable Alexander involved in mergers and acquisitions special chapters in the country, this group bonuses not available to those who mind Potash, a former distinguished mayor has participated in an impressive vari­ of Oakland, and the current distin­ their own business. I have not had an oppor­ ety of projects since its founding in tunity to review this bill in detail. But clear­ guished mayor, the Honorable · T. ly it is the direction in which our federal tax 1974. Portland members of all ages, Emmet Bauer, in planning and pre­ policy should go. backgrounds, and interests are senting a gala celebration to com­ I want to commend you, Mr. Chairman, brought together in pursuit of their memorate and reflect on the history for holding these hearings today. It's about common concern for humanity. Since of the Borough of Oakland. The 80th time Congress started looking at the way its start 8 years ago, the group has in­ Anniversary Committee roster of the loopholes and complexities in our tax laws have twisted our entire economy out of vestigated seven cases which have these exemplary citizens of Oakland shape. Loophole-induced mergers and take­ ended with the release of prisoners of is, as follows: overs are exhibit number one. To eliminate conscience. In addition, the Portland 80TH ANNIVERSARY COMMITTEE BOROUGH OF these tomorrow would not be too soon.e chapter has been very successful in OAKLAND educating Oregonians of the underly­ The Honorable: Alexander Potash, Gener­ al Chairman; T. Emmet Bauer, Mayor; Rus­ THE 21ST ANNIVERSARY OF ing goals and functions of Amnesty International. sell Minnetti; Johanna Vanderbeck; Edward AMNESTY INTERNATIONAL Vanderbeck; Linda Thomas; Dorothy Whit­ Currently, the Portland chapter is ney; Carol Pierce; Cheryl McCarthy; Doro­ HON. LES AuCOIN actively addressing the general human thy Constancs; Robert Highland; Chris rights abuses occurring in Guatemala Curran; Harry Litterst; Sue Steuerman; and OF OREGON Linda Schwager. IN THE HOUSE OF REPRESENTATIVES and South Korea. In addition, they are investigating the cases of 15 indi­ Mr. Speaker, it is appropriate that Tuesday, June 8, 1982 viduals being held in Poland, and have we also express our deepest of appre­ • Mr. AuCOIN. Mr. Speaker, on May appealed to local authorities for safer, ciation and commendation of the dili­ 28, Amnesty International celebrated healthier prison conditions, and even­ gence and foresight that has been ex­ its 21st anniversary. Throughout the tual release. tended by all of the people of Oakland world, those who believe in human who have participated in its founding rights of all individuals, regardless of It is the combined efforts of this Portland chapter and the 100 or so and operations throughout the past political, religious, or other conscien­ eight decades. I particularly commend tiously held beliefs, joined in com­ other chapters around the country to you the elected representatives of memorating this special occasion. which have made Amnesty Interna­ the Borough of Oakland who have Amnesty International is truly a sin­ tional the leading defender of human earned the respect and esteem of our gular organization. Over the past two rights. The individuals working for the people for their outstanding public decades, it has developed a reputation principles of Amnesty International service and administration of a most as an untiring and irreplaceable advo­ should be commended for their unre­ important all-American community in cate of human rights. Amnesty Inter­ mitting struggle in support of the dig­ the interest of all of our citizens. The national demonstrates to the prisoners nity and worth of every human being. current members of the governing and victims around the world who are We can only hope that more people body are, as follows: subjected to arrest, torture, imprison­ will continue to rally behind the hu­ GOVERNING OFFICIALS, BOROUGH OF OAKLAND ment, and execution that there are manitarian efforts of Amnesty Inter­ The Honorable: T. Emmet Bauer, Mayor; those who care. During its 21 years of national, insuring a strong and posi­ Angelo Lacatana, Councilman; John existence, the organization has sue- tive future of this great organization.• McCambley, Councilman; Russell Minetti, June 8, 1982 EXTENSIONS OF REMARKS 13001 Councilman; William Winterhalter, Council­ of the recreation facilities and, for its size, BROOMFIELD COSPONSORS man; David Patton, Councilman; John Del feels there are none better in the state of DOMESTIC CONTENT BILL Corpo, Councilman; Jeannine Hickey, Clerk; New Jersey. Most of the personnel running W. Bruce Knapp, Jr., Tax Collector; Steven the programs are volunteers. The Mothers Schwager, Treasurer; Donald Hasenballg, Club and the Fathers Club assist in operat­ HON. WM. S. BROOMFIELD Chief of Police; Sidney Stone, Borough Ad­ ing the recreation facilities. OFMICfilGAN ministrator; James Van Delden, Tax Asses­ The spiritual growth of Oakland has kept IN THE HOUSE OF REPRESENTATIVES sor; and Dean Cole, Tax Assessor. pace with its material growth. We enjoy the Tuesday, June 8, 1982 Mr. Speaker, with your permission I Jewish Community Center, the Messiah Lu­ would like to insert at this point in our theran Church, Our Lady of Perpetual Help e Mr. BROOMFIELD. Mr. Speaker, historic journal of Congress a profile Roman Catholic Church, P.I.M.E. Missions, Douglas Fraser, president of the on the early beginnings and establish­ Ponds Reformed Church, and the Ramapo United Auto Workers, very eloquently ment of the Borough of Oakland, as Valley Baptist Church. described the devastating impact of follows: The Boards of Education are seperate en­ Japanese imports on the United States HISTORY OF THE BOROUGH OF OAKLAND tities. The Ramapo Regional Board of Edu­ auto industry in testimony before a The Borough of Oakland was incorporat­ cation consists of nine members who repre­ joint hearing of two subcommittees of ed on April 8, 1902 by an act of the New sent the towns of Oakland, Franklin Lakes the House Foreign Affairs Committee Jersey State Assembly. Its territory consists and Wyckoff. One high school is located in last week. of nine square miles and, at the time of its Franklin Lakes, and the other is located in While his principal recommendation incorporation, the area was removed from Oakland. was for passage of a domestic content Franklin Township. The Borough of Oak­ The local Board of Education manages bill for vehicles sold in this country, land is a valley surrounded by mountains, four elementary schools, located in various his basic plea was for simple fairness with the Ramapa River flowing through the parts of the community. Three of these ele­ valley. By nature, it enjoys a beautiful, nat­ mentary schools, go up to and include the in our trade relations with Japan. ural setting. 5th grade. The fourth, accommodates 6th, I found his testimony particularly It has a borough form of government: a 7th and 8th grade students, specializing in interesting because I have felt our mayor and six councilmen. The Mayor is the preparation of these students for high trading relationship with Japan has elected for a four-year term and in previous school entrance. All schools enjoy outdoor for too long been essentially a one-way years, it was a two-year term. Each of the street. councilmen is elected for a three-year term. facilities for recreation and have "All-Pur­ Two of the six councilmen seek election pose" rooms for physical education and As Mr. Fraser correctly pointed out, each year. lunches. the automotive industry plays a major The borough is primarily a "bedroom Mr. Speaker, the story of Oakland is role in nearly every modern industrial­ community," with most of its residents com­ the story of America. The Borough of ized society. All of them have been muting to larger cities. In late years, it has faced with similar challenges from developed three industrial areas, and has Oakland is steeped in the history of the early settlers of our country and Japan. None have sat idly by and al­ been fortunate in having in these areas lowed the virtual destruction of that clean, light manufacturing, warehouses and richly endowed with America's historic office buildings. beginnings. industry without taking protectionist The Mayor and Council is assisted in the measures. management of the community by a Plan­ In reflecting on the Borough of Oak­ In recent years, Germany, France, ning Board, Library Board, Board of Health, land's contributions to the cultural the United Kingdom, and Italy have Board of Adjustment, Shade Trees Commis­ heritage and historic advancements of each taken action to curb Japanese en­ sion, Recreation Commission, and Industrial America, we join together in express­ croachment into their markets. In Commission. Besides the Mayor and Coun­ ing our deepest of appreciation to all every case, those steps have been ef­ cil, the chief officers are: Borough Clerk, of the people of Oakland who Tax Collector, Treasurer, Chief of Police, fective and, contrary to many predic­ Business Administrator and three Tax As­ throughout their lifetime have sought tions, have not caused the economic sessors, together with other various commit­ and achieved a quality of excellence chaos that had been forecast. tees appointed by the Mayor and Council, to which bespeaks the pioneering efforts In fact, Mr. Fraser said, there is evi­ perform various special services. of our forefathers and the traditions dence the Japanese respond positively The Police Department consists of the of a freedom-loving people dedicated when they are forced to by effective Chief of Police, a Captain, three Lieuten­ government policies. ants and a total force of twenty-nine full­ to the American principles of democ­ time, paid policemen. The new Police Sta­ racy and a good family life for them­ Toyota, Nissan, and/or Mitsubishi tion enjoys the best, modem, electronic selves and future generations to enjoy. have been investing heavily, or negoti­ equipment and was constructed with the aid Mr. Speaker, in commemorating this ating to do so, in Australia, Brazil, of Congressman Robert A. Roe. historic event, I appreciate the oppor­ Italy, Korea, Mexico, South Africa, The Fire Department consists of two fire­ tunity to present the fore going to you Spain, and the United Kingdom. houses, located in strategic parts of town. I agree with Mr. Fraser when he The equipment is modern, including a tower and seek this national recognition of the leadership endeavors manifested says that companies enjoying large truck. All streets are water mained and hy­ volume sales in the United States dranted. All firemen are volunteers, except by the foresight and expertise of the should be investing their money here. the officers, who are appointed by the residents of the Borough of Oakland Mayor and Council. They are well trained. Japan does not invest in America Oakland's First Aid Squad has their own and the lasting achievements that can simply because we do not require it. building, two ambulances and their person­ be attained with people working to­ Mr. Fraser believes, and I agree, that nel has been trained to handle all emergen­ gether in a common endeavor-all con­ the time has come for the United cy calls. They make no charges for their tributing to the American way of life States to insist on balance in its trad­ services. Once a year they hold a fund drive. and the American dream. They are radio equipped and are tied in to ing relationships with Japan. The $16- the Police Department radio system. We do indeed salute the governing billion trade deficit we incurred with The Recreation Commission consists of officials and citizens of Oakland upon Japan last year indicates that we are seven members, appointed by the Mayor their commemorative observance and presently a long way from equity. with the advice and consent of the Council­ celebration of the 80th anniversary of The auto industry, which accounted men, and receive no salaries. The Recrea­ the Borough of Oakland.• for $13 billion of that deficit, is clearly tion facilities are located on thirty acres of the place to begin. land, on which are five regulation tennis courts, nine baseball fields, some of which Mr. Fraser's remarks echo the senti­ are converted during their seasons to foot­ ments of millions of American workers ball and soccer fields. The Borough also and many Members of this body, in­ supplies needed equipment for the various cluding some who are not from auto­ games of sport. The Borough is very proud producing States. 13002 EXTENSIONS OF REMARKS June 8, 1982 His message to the Subcommittees community news in an ethical and ob­ and thus formed their own printing and on International Economic Policy and jective ·manner, and the magnificent publishing company. They offered readers Trade and on Asian and Pacific Af­ success of their publishing enterprise, and advertisers the news of Highland Park in a magazine-format publication that was fairs, is a clear signal that mandatory bode well for the future of responsible instantly accepted. restraints will be placed on imports reporting in Illinois and the Nation. The start-up of a new publication did little soon unless Japan makes a genuine, I submit for the RECORD the publish­ to please the Udell brothers, who at the good-faith effort to work out our prob­ er's own account of the growth of this time published the Highland Park Press. lems on a voluntary basis. outstanding independent chain of They didn't want the competition and used I have studied Mr. Fraser's testimo­ newspapers: their influence to make life difficult for the ny carefully and, while I have had SINGER PRINTING AND PuBLISHING MARKS 56 Singers. "They were very active socially and some reservations in the past about YEARS: THE MEN BEHIND THESE PAPERS in civil affairs," said Gene Singer, "and sur­ the appropriateness of a domestic con­ (By J. E. Kramer) vival became a real battle." The Udell paper and the "Lake Forester", then an independ­ tent bill, I am convinced that his argu­ EUGENE SINGER: BUILDS HIS SUCCESS ON ent, both were typical 6-column, country ments are grounded in commonsense. STRONG PRINCIPLES style newspapers which did not concentrate As a result, I have today become the For a multitude of reasons, many of us entirely on local news. 213th cosponsor of this legislation in never quite reach the lofty heights of our Through those early years, the Singer the hope that it will send a strong dreams. We set goals for ourselves that brothers counted heavily on the moral sup­ signal to our trade negotiators and to appear realistic, but along the way are port of Herman Black. Mr. Black insisted the Government of Japan that this short-circuited. We're forced to settle for that the policies of the paper were correct something less. Eugene Singer, Editor and and in time would be accepted as such by Congress, at least, is dead serious Co-Publisher of the Mail-Advertiser Publi­ about saving our domestic automotive the public. "The total local news concept; cations is cut from the cloth that all but the exclusion of 'filler' from our news con­ industry.e guarantees success. His life is filled with it. tent; the live coverage of public meetings, Never a man to put off till tomorrow, and in particular the news-magazine format Singer takes dreams and ideas and starts PORTER CONGRATULATES which we introduced were the keystones of them into action, carrying along those for­ Mr. Black's newspaper policy," said Gene SINGER PUBLISHING COMPA­ tunate enough to be his associates. Singer. "Mr. Black firmly believed in live re­ NY ON 56 YEARS OF SERVICE These publications are the result of his porting, having served his apprenticeship in "dream". A successful editor and publisher newspapering as a reporter, as both Mort earlier in his life, Singer and son, Jim, saw and I did. He believed that dedicated appli­ HON. JOHN EDWARD PORTER the need in the early 1970's for alternative OF ILLINOIS cation to accurate reporting on the local publications on the North Shore that had scene and complete distribution through IN THE HOUSE OF REPRESENTATIVES long been dominated by the Pioneer Press the mail would bring widespread reader ac­ Tuesday, June 8, 1982 Publications. ceptance." FATHER-SON PUBLISHERS JOB SHOP STARTED IN 1928 e Mr. PORTER. Mr. Speaker, I take The Mail-Advertiser Publications were this opportunity today to recognize born in 1971 with father-and-son as the The Singer brothers, at the urging of Mr. the outstanding achievements of driving force. Today, 11 years later, the Black, introduced a job printing shop short­ Eugene and James Singer as Singer group of nine newspapers is among the ly after they began publication of the paper. Printing and Publishing Co. celebrates strongest independently owned and pub­ It began in 1928 in the basement of a tiny its 56th anniversary. lished newspaper chains in the United store at 391 Central Ave. Located in my home district, the States. Its rise in reader and advertiser ac­ Despite the intense competition. the High­ ceptance throught the difficult decade of land Park news-magazine continued to build 10th District of Illinois, the Singers' the 1970s is without precedent, and the momentum during the late 1920s and early group of nine newspapers is one of the "publishing miracle" has set the example 1930 and by 1938 was recognized as one of country's most successful independ­ for dozens of other start-up publishers the top publications in the state by the Illi­ ently-owned and published newspaper throughout the Midwest. nois Press Association. "It was a real honor chains. In fact, the company's phe­ To understand the success of these publi­ for us to place first in general excellence in nomenal success in reader and adver­ cations, one has to understand the man competition with all community publica­ tising acceptance during the 1970's is behind them: Eugene Singer. tions in our class," said Singer. "It proved without precedent in the independent Gene, along with his brother, Mort, once-and-for-all that our newspaper con­ formed the Singer Printing and Publishing cepts were correct and that Mr. Black's newspaper field. Dozens of other pub­ Co. April 16, 1926. Both men were going to prophesy was accurate." More honors would lishers throughout the Midwest have school and working part time. Mort was a come. In 1940 the paper was selected as one since followed Gene and Jim's exam­ copy writer for Chicago Direct Mail Adver­ of the 10 leading community newspapers in ple. tising Agency and Singer was a staffer with the United States. The success of the Singers' publica­ the Chicago American. The award-winning quality of the High­ tions can be attributed to both men's "WINDOW" SPARKED IDEA land Park news-magazine and the intense desire to produce a quality product Both found the concept of newspaper pub­ competition were too much for the Udell that serves the needs of the local com­ lishing to be very appealing and began dis­ brothers to handle. They closed up shop cussions with Harvey Bowen, the owner of and their facilities and building were ac­ munity. Community service has, in quired by the Singers. fact, been a theme consistently the "Glennetka Window", about a possible stressed by the Singer family ever purchase. The "Window" was an advertising LAW AND PUBLISHING since Gene and his brother Mort booklet serving Glencoe and Winnetka, but In 1937, Gene and Mort parted company founded a job printing shop on the Bowen wanted to make it a full-fledged at least as far as newspaper publishing was newspaper. concerned. Mort, who had been attending North Shore in 1928. Throughout the Herman Blacl.v the publisher of the Chica­ law school, was appointed an assistant many years since that date, Gene, at go American, had a better idea. It was sug­ state's attorney and began his career in law. first with Mort, and later with his son gested to the Singer brothers that they Gene acquired his share of the publishing Jim, operated a publishing company meet with Black to discuss their ambitions company. that provided live, accurate, and objec­ related to the "Window" and the Ravinia The pre-war years were pivitol in Gene tive news reporting to the local com­ resident convinced them that their publish­ Singer's life. Besides acquiring the Highland munity. The Singers always put their ing concepts could be better applied to the Park Press, going it on his own, converting Highland Park area. the Highland Park news-magizine to paid duty to the community first, prefer­ Mr. Black spent hours discussing newspa­ ring to provide readers with a wealth circulation, and starting up the Deerfield pering and sent the brothers out to discuss Review, Gene was called to active duty in of useful information about the local their ideas with local civic and business the Navy. At the time the paper had at­ comm.unity, rather than subscribing to leaders. tained a paid circulation of over 75 percent the controversiality and sensational- COMMUNITY WANTED IT of the homes in Highland Park, and was ism of the "new journalism." Gene They found a great deal of interest for a considered "The" paper on the North and Jim Singer's desire to provide new publication among community leaders Shore. June 8, 1982 EXTENSIONS OF REMARKS 13003 Gene accepted the call to duty and left "At a series of meetings with Lake Forest HANDLES THE DETAILS the publication in the capable hands of his and Lake Bluff residents we learned that Jim Singer has a reputation for making father, an accountant and attorney, who at­ they weren't very happy with the manner in solid decisions. He is the compamy "idea tempted to keep the operation going which local news was being treated by the man", responsible for the final product and through the difficult war years. "Eighteen existing publication," said Gene Singer, the bottom line, who spends his days gath­ employees were serving their country in one "and we were pledged the support of the ering information, trouble shooting and de­ branch of the service or another," said Gene community if we would agree to begin pub­ ciding on a multitude of details necessary Singer, "and it was an impossible task for lishing a newspaper." for the quality-attentive and cost-efficient my father to carry the load alone, so we de­ PAPERS GO FULL SERVICE operation of the publications. termined that if we could no longer serve If there is a new production related prod­ the community as we had promised we Publish they did-sending the news and uct on the market, Jim Singer will be there advertising of the community to every would, it was time to turn over the responsi­ to test it. If there is a strike in the paper bility to someone else." Gene's ship put in household. The following year all the other mills, he'll find the newsprint to keep the Singer publications were converted to full­ for repairs in Portland in 1943 after service presses rolling. If there is a production on the North Atlantic, and he returned to service newspapers, initially distributed to problem in any department, he'll be there, Highland Park to complete the sale of his all households, and ultimately converted to sleeves rolled up, to help out. If an employ­ publications to the Pioneer Publishing Co. a subscription basis. ee has personal problems, he's there with of Oak Park, which was extremely anxious Along the way, Singer Printing and Pub­ suggestions and solutions. to acquire a North Shore base of operations. lishing acquired the "Glenview Times" and In short, Jim Singer is Singer Printing & EARNS WAR HONORS started up the Vernon News-Advertiser to Publishing's " guiding star", the focal point As part of the sale, Singer Printing and complement the Highland Park Mail-Adver­ for the successful operation of the company. tiser, Glencoe Mail-Advertiser, Lake Forest Publishing would continue to print the SEES BRIGHT FUTURE papers, and agreed not to independently Lake Bluff News-Advertiser, Deerfield publish a paper within a 40-mile radius of News-Advertiser, Northbrook News-Adver­ As could be expected, Jim Singer is a big Chicago. Singer returned to the war, where tiser, Wilmette News-Advertiser and Win­ booster of weekly newspapers. " I am certain he distinguished himself, acquiring a Presi­ netka News-Advertiser. the independent weekly can survive," he dential citation and two meritorious awards The most recent figures show that the said, "Because we have several advantages while rising from Ensign to Commander in Mail-Advertiser Publications reach 70.4 per that the corporately controlled chains don't his four and one-half years of active service. cent of the households in the 18 communi­ have. One important factor is our ability to As the war concluded, Gene turned his ties we serve on the North Shore, giving seize opportunites when they present them­ thoughts to the North Shore. He came these publications 9.5 per cent more total selves. It's not necessary for us to wade "home" once again to oversee the operation circulation than their nearest competitor. through a chain of managers and red tape to get to a decision. of the printing plant, no longer involved in ENDORSEMENTS AND HONORS the day-to-day business of newsgathering, "Also, because we are a vital part of the but still very much interested in newspaper­ The dedicated local news policy and com­ communities we serve, it is much easier for ing. His responsibilities, as president of the plete cooperation with all local clubs, us, than it is for the corporate giants, to printing company, provided him with time schools, churches and non-profit organiza­ produce the kinds of newspapers that inti­ to spend with his wife, Dorothy, and grow­ tions has generated unprecedented endorse­ mately fit the readership needs of the ing family. ments, and in appreciation Gene Singer has people. We have the community pulse. Son Jim joined the company in 1960 an been made an honorary member of the "While we don't have the resources of a shortly thereafter accepted the presidency. Glenview Optimist Club and the Rotary large corporation, we also don't have the Gene and Dorothy headed for the West Club of Highland Park. He was also singled ruthlessness. We can make decisions in Coast to pioneer a new venture in electonics out by the Lake Forest Legion Post, Senior human terms, something the giants rarely and television. Citizens, the Lake County Navy League and do. If there's a so-called 'loser' in their hold­ LEADERS WANT NEW PAPER the Jaycees, who also expressed their appre­ ings, they'll simply ax it out of the picture Area business and civic leaders, not entire­ ciation for his efforts in their behalf. without regard for who or what gets hurt in ly satisfied with the services being provided "I think we've proven once again that the the process," he said. by area newspapers on the North Shore, fre­ basic policies upon which we started our PUTS " PEOPLE FIRST" quently visited the offices of Jim Singer first paper in 1926 are right ones for the "I think our 'people-first' approach to throughout the 1960's attempting to con­ 1980s. People demand a quality product that publishing is the most important factor in vince him to begin publication of an inde­ gives them objective news reporting and a our final product. We keep it in mind from pendent paper. However, because of the wealth of useful information about their start to finish of the production schedule," contract with Pioneer-Time to publish that community. That's what we're trying to do Singer said. company's Deerfield, Highland Park and and will continue to do," said Gene Singer. He pointed to the acquistion of the "Glen­ Lake Forest papers, the Singers felt morally The Singer story is one of modern-day view Times" as an example of the "people­ obligated not to enter competition. publishing success; one that is based on the first" company policy. "The 'Times' was im­ In 1970 Pioneer-Time withdrew from its determination to work hard, adhere to le­ portant to many residents of Glenview, who contract with Singer Printing and Publish­ gitimate policies and always keep the best relied on it for their weekly news and adver­ ing Co. to print the papers, thus opening interests of the community in mind. tising information. We were approached by the doors to the Singer family to once again many of its subscribers who asked that we publish a news-magazine on the North JAMES SINGER: SEES TO THE FuTURE; ATTENDS acquire the paper so that an independent Shore since the non-compete contract had TO THE PAST publishing voice would continue to be heard been broken. Newspaper publishing today is generally in the community," he said. The Singers seized the opportunity to get The "Glenview times" was acquired by back into newspaper publishing. Jim called acknowledged to be among the most com­ plex of all business ventures, requiring a Singer Printing & Publishing, and continues a meeting of local leaders and found wide­ to offer Glenview residents an alternative to spread support for a new publication that thorough knowledge of all the " ins" and "outs" of the industry, fast decisions and ac­ the "new journalism" which is geared less would serve the needs of merchants who and less to community service and more to wanted their messages to be read in all the curate long-range planning, as well as a will­ ingness to surrender the "old" in favor of sensationalism and controversy. In a recent households in the area. survey of residents by the Village of Glen­ The Mail-Advertiser was born. It was im­ the latest technological advances for con­ verting spoken words into black ink. view. the "Times" was acclaimed as the possible to develop a staff on such short weekly newspaper from which a majority of notice, so the re-newed publishing efforts of Although the editorial, advertising and distribution policies of the publications pro­ persons in the village get information on the Singer family were exclusively devoted Glenview activities. to advertising matter. The Highland Park duced by Singer Printing and Publishing Mail-Advertiser was first, followed by simi­ have remained rock-solid during the 56-year STRESSES COMMITMENT lar publications in Glencoe, Deerfield, history of the company, production meth­ "We have a commitment to the communi­ Northbrook, Wilmette and Winnetka. ods have changed dramatically. ties we serve, and that won't take a back Still, the policies of Mr. Black ran The man responsible for staying on top of seat to anything," said Singer. through Gene Singer's thoughts and less the latest "state of the art" alterations to Jim Singer, 42, joined the company in than two years after the first issues of the newspaper production is Jim Singer, compa­ 1960 after attending grade school in High­ Mail-Advertiser came off the press, the ny President, who sits in the hot seat in land Park and California, high school in Singers decided to publish a full-fledged terms of hectic day-to-day operations of San Gabriel, Calif., and college at the Uni­ weekly news-magazine in Lake Forest. Singer Printing and Publishing. versity of Southern California in Los Ange- 13004 EXTENSIONS OF REMARKS June 8, 1982 les. While attending college he worked part article by Kirk Jenkins which presents which unions cite. Since that time, however, time on a Los Angeles newspaper as a news the case being made for repeal of the the federal and state governments have en­ photographer. One of his photographs re­ Davis-Bacon prevailing wage statutes. acted minimum wage and unemployment ceived awards from the California State I commend this article and consider­ compensation laws as well as strict legisla­ Press Assn. in 1957. ation of the issue to the attention of tion regarding the conditions and safety of That interest in photography brought employment. In addition, tough procure­ him to the lithography camera room of a my colleagues who share in the desire to lower the deficit and increase em­ ment laws are on the books designed ex­ California publishing concern, where the pressly to protect the government from un­ first high speed web-offset press and com­ ployment. Repeal of Davis-Bacon scrupulous contractors and shoddy work­ puterized typsetting facilities were in use. It could contribute significantly to both manship. was here he developed an intense interest these objectives. Estimates of the inflationary impact of in, newspaper production, and became con­ WAGING WAR OVER THE PREvAILING WAGE vinced that the future of the publishing in­ Davis-Bacon vary widely. According to a dustry centered on highspeed presses and Few issues could unite Common Cause report finished early in 1980 by the Carter and the United States Chamber of Com­ Council of Economic Advisors but not re­ compJterization. merce. The New York Times and Wall INTRODUCED WEB-OFFSET leased until the Reagan administration took Street Journal seldom march under the office, "in each of the thirteen cities where Jim Singer introduced web-offset printing same banner. Econoinists Walter Heller and to the North Shore when he became a Alan Greenspan rarely see eye to eye. Yet in wage data was available, Davis-Bacon Singer Company officer in 1960. At that the past year each one has called for repeal minima were significantly above going rates time the process was totally new to the Mid­ of the :Qavis-Bacon Act, one of the most in the local labor market for similar work." west, and Singer devoted his energies to sell­ venerable relics of the wave of labor laws Most econoinists estimate repeal of the Act ing the concept and the actual application passed during the Depression era. would result in a yearly saving of more than of the process to the employees at Singer According to Davis-Bacon, any construc­ one billion dollars. The full economic cost of Printing. He also established the litho­ tion contract of more than $2,000 let by the the Act, however, may well be several times graphic camera department, and headed the federal government must be performed by a that. A growing number of contractors camera and plate department while others contractor paying the "prevailing wage of simply boycott all federal jobs because of were being trained to assume those duties. the local area." The bill was ostensibly the disruptive effects of having to pay em­ Computerized typesetting was introduced passed to prevent federal contracts from ployees at a federal job more than employ­ at the Singer plant early in the 1960s and going to substandard contractors paying ees at a private job. The net result is re­ through the years employees have worked their employees very low wages and subject­ duced competition and increased cost for with five different typesetting systems in a ing them to poor working conditions. In government construction. In addition, the constant attempt to upgrade quality and 1931, its sponsors charged that many firms maintenance of artificially high wages for speed. All of the systems have come at the toured the country, housing destitute labor­ federal jobs pulls labor away from private direct urging of Jim Singer, and all have ers in cabins and taking federal contracts from local firms. jobs, tending to raise wages and increase succeeded in upgrading the publications. costs on private work. As for the future, Singer is optimistic. "I Many econoinists feel that it is not diffi­ can see no reasons for the decline of the cult to explain the bitter opposition of labor The General Accounting Office casions to serve as a condemnation degree by the same institution. Draped in blankets and shielded from the commissioner. Mr. Sternburg, who is 57 years old, rain, Lou Sternburg yesterday was awarded Mr. Speaker, Ralph has also made also is a graduate of the University of the advanced degree in psychology he had an outstanding contribution in pro- Pennsylvania and its Wharton School worked four years to obtain. . rooting and encouraging community <1950). From 1950 to 1955 he worked Sternburg, who has been confined to an improvements and has actively partici­ as a manufacturer's representative. In iron lung most of the time since contracting pated in many charitable and civic en­ 1955, at the age of 30, he contacted polio in 1955, was among 50 students to re· ceive doctor of philosophy degrees at Bran­ deavors to help improve the social and polio. The disease rendered him a deis University. cultural endeavors of our community, quadriplegic and unable to breathe "I'd like to congratulate my fellow class­ State, and Nation. He was president of without an iron lung. He was allowed mates, and I'd like to thank the university the Patterson Exchange Club and was to leave the hospital in 1956 only after for welcoming me with open arms," the 57- appointed to and served over 20 years he had learned an alternative method year-old Newton resident told the hundreds on the Haledon Board of Adjustment, of breathing which he could employ in of people yesterday at the university's 31st serving as chairman for 15 years. He case a power failure cut off his iron commencement. was the organizer and first chairman lung. "Without friends," Sternburg said, "I of the Haledon Planning Board where Soon after returning home to his doubt that this moment would have been wife and two children, he became in­ possible." he served for over 18 years. In 1958 he He was among more than 800 students was president and State director of the terested in creative writing to, in his who received degrees yesterday. In addition, Passaic County Board of Realtors. In words, find out what makes people 10 individuals were awarded honorary de­ 1976 he became president of the Hale­ tick; and what makes me tick. Not sat­ grees, including commencement speaker Sol don Rotary Club. isfied with what he was producing, he M. Linowitz, negotiator of the Panama He has served as a member of the contacted then Brandeis president, Canal treaties; Sir William Arthur Lewis, Advisory Committee of Saint Casimir's now chancellor, Abram Sachar and winner of the 1979 Nobel Prize for econom­ Roman Catholic Church and in addi­ soon after a member of the Brandeis ics, and violinist Itzhak Periman. tion to the Realtors, he has main­ faculty was making periodic visits to In addressing the estimated 5000 persons who attended the ceremony, Linowitz urged tained membership in the National As­ discuss writing with him. the graduates "to raise your voices as com­ sociation of Accountants, the Inde­ Interest in writing and motivation mitted, responsible citizens." pendent Fee Appraisers of America, led him to psychology. He arranged to "The time has come to halt the know­ the Professional Insurance Agents As­ take accredited courses in psychology nothings, the preachers of hate, the fearful sociation, and the Mutual Insurance by delivery of taped classroom lec­ ones, wherever they are and whoever they Agents Association. tures. In this manner he completed are," he said. "They despoil the true spirit Mr. Speaker, as we reflect upon the the equivalent of a B.A. in psychology. of America and blaspheme its heritage." history of our great country and the Mr. Sternburg came to the attention Honorary degrees were also awarded to good deeds of our people who have of James Lackner, chairman of the artist Helen Frankenthaler, enzyme re­ Brandeis psychology department, who searcher Nathan Kaplan, architecture critic made our representative democracy Ada Louise Huxtable, chemist George B. second to none among all nations visited him and encouraged him to try Kistiakowsky, and Irving S. Shapiro, former throughout the world, I appreciate the for advanced degrees in Lackner's chairman and chief executive of E.I. du opportunity to call your attention to field, psycholinguistics. The same Pont de Nemours & Co. this distinguished gentleman and seek taping arrangement was set up. In ad­ Less than a year before the polio vaccine this national recognition of all of his dition, Lackner visited him once a was first distributed, Sternburg, then 30, good deeds. I know you will want to week to do control experiments in the contracted the disease. join with the Rotary Club of Haledon, subject of Mr. Sternburg's thesis "When I came home from the hospital, I which concerns the relationship of had a choice," he said in an interview. "I N.J., in honoring our good friend could get angry, or I could do something Ralph as an outstanding citizen and speech and ideas to the individual's about it." great American. We do indeed salute intake of air. Since Mr. Sternburg's His interest in writing and character de­ the Haledon Rotary Club's "Paul intake of air is not self-induced but velopment led him to study psychology. Harris Fellow"-the Honorable Ralph controlled by outside forces, he is full As he lay on a chair with a portable respi­ Weiss.e author and part subject of his Ph. D. ratory machine, Sternburg talked yesterday thesis. about his thesis and psycholinguistics-the Having been an athlete before his ill­ study of speech articulation patterns and PHYSICAL HANDICAP NO OBSTA­ ness and still intensely interested in their relationship to the thought process CLE TO ACADEMIC ACHIEVE­ sports, he has already applied his new and breathing. MENT, LOU STERNBURG psychological knowledge in developing He said his success was due in part to the AWARDED DOCTORATE AT a test to be used by professional ath­ support of his wife, his two children and his BRANDEIS friends. letic teams to determine whether a "In a very real sense, I was just a vehicle prospect has desirable mental and per­ for combined efforts of all of those people HON. STEPHEN J. SOLARZ sonality traits. The Boston Celtics and who made this possible," he said.e OF NEW YORK Patriots have used the test which is IN THE HOUSE OF REPRESENTATIVES copyrighted. He was wheeled up to receive his PEACE IN THE MIDDLE EAST Tuesday, June 8, 1982 doctorate and told a cheering audi­ • Mr. SOLARZ. Mr. Speaker, on ence: "I'd like to congratulate my HON. TOBY ROTH Sunday, May 23, at the commence­ fellow classmates, and I'd like to thank OF WISCONSIN ment exercises of Brandeis University, the University for welcoming me with IN THE HOUSE OF REPRESENTATIVES my alma mater, I witnessed the culmi­ open arms." Thanking his wife, chil­ nation of an amazing story which is a dren and friends, he said: "In a very Tuesday, June 8, 1982 towering affirmation of the human real sense, I was just a vehicle for the • Mr. ROTH. Mr. Speaker, all of us spirit, and of the role of a university in combined efforts of all those people desire a quick and stable peace in the aiding students to reach their full po­ who made this possible." Middle East. The road to peace is tential. Mr. Speaker, I insert the following never easy but I would suggest a few Lou Sternburg, of Newton, Mass., re­ story from the Boston Globe to be in­ guidelines. ceived a Ph. D. in psychology from cluded in today's CONGRESSIONAL Lebanon is for the Lebanese. All na­ Brandeis University at its 31st com- RECORD. tions should withdraw their forces and June 8, 1982 EXTENSIONS OF REMARKS 13007 leave the Lebanese people to solve WORLD COLLABORATION OR ANNIHILATION? ences between nations has so completely their problems. Furthermore, after "IT'S UP TO YOU AND ME, MY FRIEND!" fled from the minds of so many statesmen decades of senseless war, it is time for In ·preparation for the forthcoming of our day. all nations in the region to come to a United Nations Second Special Session on World military expenditures in 1978 basic understanding: Every nation has World Disarmament, scheduled to take amounted to close to five hundred billion place on American soil at UN Headquarters dollars. The U.S. Budget Outlays for Na­ the right to exist and the rejectionist tional Defense and Veterans Benefits have posture maintained for nearly 40 years in New York from June 7 to July 9, 1982, I have a suggestion: I would like to see every almost tripled since the Charter of the by radicals in the Arab world can only statesman, every religious leader, every po­ United Nations was adopted in 1945, from lead to renewed violence and conflict. litical leader-including Chairman Brezhnev 101.5 billion in 1950 to an estimated 288.4 Bordering nations and so-called refu­ and the members of his Presidium as well as billion in 1982 ing would enact a program that would submit to Congress later this month, I and will probably be absorbed by rises in be directed to those credit worthy hope these ideas will stimulate intelli­ private school tuition costs. middle- and upper-income countries gent and thoughtful debate in the In the course of the debate over the tax where additional U.S. agricultural ex­ months ahead: credit bill, we shall be hearing more about ports are likely to be generated [From the Ridgewood Times, May 13, 19821 its alleged unconstitutionality. There are people, otherwise reasonable, who actually through the extension of credit and believe that the credits represent a threat to lower interest rates. The interest buy WILL THE REAL TUITION TAX CREDIT ISSUE the separation of church and state. The down by the CCC would be paid direct­ STAND UP? credits are no more likely to build an estab­ ly to the participating bank using Tuition tax credits are again being dan­ lished church than are the tax deductions Public Law 480 appropriated funds. gled before parents of parochial and private for contributions to churches. The amount of funds used for the in­ school children in elementary and second­ Private schools are not likely to expand in terest buy down would be limited to no ary schools. response to tax credits. They are already jammed and most of them are hard-pressed more than 25 percent of the program The dangled bait is perceived by teachers' level for Public Law 480, title I as pro­ union leaders as a neutron bomb that, if financially. The hysteria of public school dropped, will obliterate the public schools. leaders is unwarranted. A sob or two might vided for in the annual appropriation The tax credits are seen by most church be justified, if only because passage of the act. I am including a table which de­ and private school people as long overdue fi­ tuition tax credit bill will be a vote of no­ picts what the impacts would be on nancial aid. Some 4,000,000 children attend confidence in the public schools.e wheat, corn, and soybeans during the non-public schools, although their parents 1982-83 marketing year in terms of in­ pay taxes for support of the public schools. creased exports, producer prices, defi­ In Congress, the big names behind tuition AGRICULTURE EXPORT EXPANSION ACT OF 1982 ciency payments saved, and the multi­ tax credits are Senators Daniel Patrick plier effects on the total U.S. econo­ Moynihan and Robert Packwood my. Ronald Reagan entered the OF MINNESOTA White House. For over a year, however, the stimulate agricultural exports over bill barely breathed as the President ad­ IN THE HOUSE OF REPRESENTATIVES and above current threshold levels. It dressed himself to weightier issues. Tuesday, June 8, 1982 just makes more sense to stimulate Now, however, the President announced movement of agricultural products before the National Catholic Education As­ e Mr. HAGEDORN. Mr. Speaker, sociation that enactment of a tuition tax today I am introducing the Agricul­ through a program such as this rather credit bill is among his priorities. His bill ture Export Expansion Act of 1982, than having the Government finance eliminates aid to parents of youths who legislation to amend title I of the Agri­ the large surplus under loan and in attend private colleges. cultural Trade Development and As­ the grain reserve. The administration bill calls for a $100 tax sistance Act of 1954 to provide a credit Moreover, CCC ownership of surplus credit in 1983, $300 in 1984, and the maxi­ facilitating program which would pro­ grains has grown dramatically. In mum projected peak of $500 in 1985. Public mote additional agricultural exports 1977, CCC held only 1 million bushels school leaders see a $1.5 billion dent in the national budget in 1985. You might think by stimulating U.S. bank financing for of corn. Currently, those stocks total from their outcry that this addition to the foreign purchases of U.S. commodities almost 264 million bushels. USDA trillion-dollar national debt would plunge on credit terms of 10 years. The pro­ projects those stocks will increase to the nation into penury. gram would provide guarantees for re- 315 million bushels by October of this June 8, 1982 EXTENSIONS OF REMARKS 13009 year. An industry estimate has placed SEC. 2. The Agricultural Trade Develop­ dedicated his life to serving his com­ the Government cost of holding 1 ment and Assistance Act of 1954, as amend­ munity, his synagogue, and his fellow bushel of corn for 2 years in excess of ed, is further amended by adding at the end man. of title I a new section 116 to read as fol­ Within the community, he was well $4 a bushel. lows: It would behoove Members of Con­ "SEC. 116(a) In furtherance of the policies known as the president of the Sea gress to consider the impacts of the fi­ of this title, the Secretary of Agriculture is Gate Association, a position which he nancing of our huge grain surpluses authorized, in connection with export credit filled with dignity, energy, and kind through these existing methods. The sales of United States agricultural commod­ and tactful diplomacy. His capacity for farmer-owned grain reserve was en­ ities, to enter into agreements with the pri­ achievement continued in his role as acted to build U.S. buffer stocks not vate trade, friendly countries, and financial president of the Sea Gate Chapter of serve as a depository for unlimited institutions to: CD make payments to reduce the American Jewish Congress, which grain production. CCC acquisitions of the effective rate of interest charged to not in excess of four percentum for credit ex­ he developed into one of the largest corn with costs exceeding $4 a bushel tended for a term of 10 years in connection and most influential chapters in the to the taxpayer are simply not cost ef­ with such sales, and (ii) guarantee the re­ entire country. fective. payment of credits with respect to which Fred also served his synagogue, Con­ It is time to shift our emphasis by al­ the effective rate of interest is reduced in gregation Kneses Israel, as chairman locating funds into this and other accordance with clause CD. In carrying out of its board of directors, a position he types of export programs rather than these agreements the secretary may utilize filled with devotion and commitment. into CCC price support programs. I be­ the services and facilities of the Commodity He was also dedicated to Jewish educa­ lieve this legislation is essential and I Credit Corporation. " Cb) Commodity Credit Corporation funds tion, and in 1969 was almost single­ would hope my colleagues will exam­ may be used for the purpose of meeting the handedly responsible for relocating ine the merits of this bill and join me guarantee obligations undertaken pursuant the Yeshiva Sharei Zedek in the Sea in cosponsoring it. Thank you, Mr. to clause (ii) of subsection of this sec­ Gate community. Speaker. tion. Funds available for carrying our activi­ These are only a few of the marks Attachments 1 and 2 follow: ties under this title shall be used to make Fred Kornfeld left on his community. ATTACHMENT 1 the payments provided for by clause CD of His most outstanding legacy, I feel, is subsection of this section: Provided, not just what he accomplished, but RESULTS ASSUMING A 4-PERCENT BUY DOWN WITH 10 That, in any fiscal year, the amount of that he carried into all his work a YEAR REPAYMENT TERMS funds so used shall not exceed twenty-five percent of the program level for title I pro­ warm and genuine caring for all vided in the appropriation act for that fiscal people that he encountered. No one 1982 1983 year plus any funds transferred under the was unimportant to Fred-regardless Export increase (MMT): authority of section 403Cc) of this Act. of how disadvantaged he may have Wheat ...... 3.6 3.0 "(c) The food commodities acquired been in background or social standing. Corn ...... 2.1 2.2 through export credit sales involving agree­ The Sea Gate community was Soybeans...... 0.4 0.3 ments under this section shall not be consid­ Export increase (millions ) 1 : blessed to have as rare an individual as Wheat ...... $658 $550 ered in determining compliance with section Corn...... 257 272 111 of this title. Fred Kornfeld among its residents. He Soybeans...... 113 86 "(d) In carrying out the provisions of this will be sorely missed by all of us who Total...... 1,028 908 section, the Secretary shall, to the maxi­ knew him as long as we live.e Producer price increase (per bushel) : mum extent feasible, safeguard usual mar­ Wheat ...... $0.21 $0.23 Corn ...... 0.06 0.09 ketings of the United States. Soybeans...... 0.23 0.31 " (e) The Secretary shall obtain commit­ A TRIBUTE TO PEACE Credit volume required (millions) 2 : ments from purchases that will prevent Wheat ...... $940 $785 resale or transshipment to other countries, Corn ...... 367 389 HON. HAL DAUB Soybeans...... 161 123 or use for other than domestic purposes, of agricultural commodities acquired through OF NEBRASKA Total ...... 1,469 1,297 IN THE HOUSE OF REPRESENTATIVES Budget outlay required (millions) 3 : export credit sales involving agreements Wheat ...... $139 $116 under this section. Tuesday, June 8, 1982 Corn ...... 54 57 "(f} The provisions of sections 103(a), Soybeans ...... __2_4 __18 103(d), 103(e), 103(j), 103(0), 401, 402, 409, • Mr. DAUB. Mr. Speaker, on Sunday, Total ...... 217 192 and 411 of this Act shall be applicable to April 25, 1982, Israel withdrew from Deficiency payments saved (millions) •: export credit sales involving agreements Wheat ...... $262 $287 the Sinai Peninsula, in accordance Corn ...... 180 270 under this section. with the Israel-Egypt peace treaty. "(g) The provisions of the cargo prefer­ Total ...... 442 557 ence laws shall not apply to export credit On display in the Cannon Rotunda $26 from June 1 through 12, we are privi­ fr::~ ~~n~:~~ill~i~1loos·i·::::::::::::::::::::::::::::::::::: s1 . ~ $1 ,600 sales involving agreements under this sec­ Increase in GNP (millions) • ...... $1 ,850 $1 ,634 tion. leged to see testimony to an historic Increase in Federal tax revenue (millions) s ...... $123 $109 " Ch> This authority is in addition to, and event: The withdrawal of Israel from Increase in employment (thousands) 7 ...... $29 $26 not in place of, any authority granted to the the Sinai. This exhibit, prepared by 1 Valued at $175/MT for wheat, $120/MT for corn, $275/ MT for soybeans. Secretary of Agriculture or the Commodity Farag Peri and Amos Ettinger, demon­ •Assumes 70 percent additionality. Credit Corporation under any other provi­ 3 Direct outlay for interest blJy down payed up front. strates the love of the people of Israel • Based on a 40-percent participation in acreage reduction program each 1 sions of law."• for the Sinai, but even deeper, their cent per bushel price increase on wheat lowers deficiency payments $12.5 million, for corn each 1 cent increase lowers deficiency payments $30 million. desire for a lasting peace between •GNP multiplier is 1.8 of the increase on export value. FRED KORNFELD-A GOOD Egypt and Israel. 6 Based on 12 percent of the increase in export value. 7 28,700 jobs per $1 billion export value. FRIEND AND GREAT LEADER Since 1967, Israel has devoted much energy toward the development of the HON. STEPHEN J. SOLARZ Sinai; roads, farms, water pipelines, ATTACHMENT 2 airfields, oil wells. For 15 years, the H.R. 6541 OF NEW YORK IN THE HOUSE OF REPRESENTATIVES people of the Sinai have devoted A BILL To expand exports of United States themselves to making the desert agricultural commodities, develop com­ Tuesday, June 8, 1982 bloom. mercial markets for such commodities, On April 26 of this year, they gave it promote the foreign policy of the United • Mr. SOLARZ. Mr. Speaker, I rise States, and for other purposes today to pay tribute to Fred Kornfeld, all up; for the cause of peace-their Be it enacted by the Senate and House of a good friend and great leader of the hope of a lasting peace for all in the Representatives of the United States of Sea Gate community in Brooklyn, who Middle East. America in Congress assembled, That this recently passed away. I urge everyone to take a moment Act may be cited as the Agricultural Export Fred's life serves as a shining exam­ out of their busy day and stop by the Expansion Act of 1982. · ple and inspiration to all of us. He Cannon Rotunda to view this remarka- 13010 EXTENSIONS OF REMARKS June 8, 1982 ble display on life in the Sinai­ didn't complain and retire them. So now we food and money from governments and pri­ "Shalom Sinai-The Road to Peace."• are in water up to our necks and blaming ev­ vate relief agencies from dozens of nations. erybody but ourselves. Does it hurt to cut The money accounts for almost 90 percent spending? Of course it does and will. But, I'd of Bangladesh's development budget and YOUNGER MEMBERS MUST rather hurt now than drown later. You roughly one-tenth of its annual gross na­ TAKE LEAD younger members of Congress must reverse tional product. Dispensing this largesse are the downward trend and prove the older some 10,000 employees of Dacca's "aid es­ members to their errors. tablishment," most of them ensconced in HON. CARROLL HUBBARD, JR. Sincerely, villas as far removed as the Sonargaon from OF KENTUCKY JAMES LEE CHILDRESS .• the squalor of the city's teeming streets. IN THE HOUSE OF REPRESENTATIVES The presence of this vast aid bureaucracy Tuesday, June 8, 1982 makes Bangladesh an ideal place to observe FOREIGN AID IN BANGLADESH the effects of foreign aid as it is currently •Mr. HUBBARD. Mr. Speaker, James dispensed: For if econoinic assistance has al­ Lee Childress of Wingo, Ky., main­ HON. ROBERT H. MICHEL leviated the worst ravages of poverty in tains in a recent letter to me that it is parts of the third world and spurred eco­ up to the younger Members of Con­ OF ILLINOIS noinic growth in others, there is evidence to gress to take the lead in correcting the IN THE HOUSE OF REPRESENTATIVES suggest that, in many instances, it has also problems that have accumulated in Tuesday, June 8, 1982 hindered profound and lasting development. Increasingly, it is clear that where govern­ the Federal Government over the e Mr. MICHEL. Mr. Speaker, did you ments are corrupt or indifferent to the years. I believe Mr. Childress' letter is know that Bangladesh, one of the living conditions of the majority of their one which should be shared with my poorest countries in the world, has people, aid may not only fail to relieve pov­ colleagues and I wish to do so at this just built a luxury hotel in its capital erty, but may shore up a system that per­ time. The letter follows: of Dacca, amidst its worst slums? Did petuates it. DEAR CONGRESSMAN HUBBARD: Being some­ you know that since its independence In Bangladesh, a rich alluvial plain with what knowledgeable of the fact that many 10 years ago, Bangladesh has received more cultivable land per person than pros­ of you now in Congress have and are inher­ perous Taiwan, the persistence of malnutri­ iting the problems of the past 50 years $11 billion in foreign aid from many tion and desperate poverty provokes ques­ during your few years as a member, I have nations and that in fiscal 1982 it will tions not only about the governments in the following to say. receive between $1.6 and $2 billion? charge but about the efficacy of the seem­ It is you, the new members, who are obli­ Did you know that United States tax­ ingly endless outpourings of aid over the gated to put the government in its place and payers have given Bangladesh nearly past decade. strengthen it. And, I don't envy you. We the $1.8 billion in: the last 10 years? And, To some extent, the Bangladeshis have people of this great country are the ones finally, did you know that despite all begun to raise these issues themselves. In who are responsible for letting our elected of this, Bangladesh is a nation of pov­ March, a military coup overthrew a civilian officials get us in this mess be greedily ac­ government, charging it with rampant cor­ cepting what I call handouts. erty, pervasive governmental corrup­ ruption. And the country's new leaders, in We must cut regulations which were not tion, and inadequate means of getting their first pronouncements, declared that enacted by Congress, cut government spend­ food and aid to those who need it? the country should rely less on foreign as­ ing, and where possible, cut taxes to a rea­ You will find all of the above and sistance, and more on its own resources. sonable level for government operations. In much more in an article I will insert in At a time when the United States seems to my opinion, too many government agencies the RECORD at this point. Anyone won­ have grown impatient with the demands of have been allowed to establish regulations, dering why there have been questions the third world and is itself experiencing as if laws, that have hamstrung free busi­ raised about foreign aid in recent economic difficulties, such developments ness operations, making it expensive for take on added urgency. On the one hand, business and harder on the economy. Only years should read it. many on the political left argue that foreign Congress can make laws. and when it allows At this point I wish to insert in the aid is a subtle form of econoinic colonialism; agencies to perform regulations, then Con­ RECORD, "Foreign Aid Under Fire" by on the other, some conservatives insist that gress is irresponsible of its duties. Ann Crittenden, from the New York charity should begin at home, and that all Spending must be cut to the very neces­ Times Sunday magazine, June 6, 1982. the United States receives in exchange for sary governing services that government is FOREIGN AID UNDER FIRE its helping hand are demands for more, cou­ established for. Government is not big pled with denunciations in the United Na­ brother, although some have tried to make . After two good crop years, the This is partly because, as one World Bank In Haiti, a long-time recipient of United country in 1981 had a record amount of economist delicately put it, "there are prob­ States aid, two-thirds of the rural popula­ grain in storage. The stocks have been de­ lems in getting the Government active tion still have an annual per capita income pleted rapidly since then, however, and the again, and involved in organizing and ap­ of less than $40. In Tanzania, after years of A.I.D. men were not optimistic that much in proving projects, after the assassination of support from sympathetic Scandinavian the way of permanent improvement had President Ziaur Rahman in May 1981." countries, the vast majority of the popula­ been accomplished. Moreover, the donors are more and more tion has seen few if any benefits. Despite "Even assuming enough food is produced, interested in extending so-called project decades of aid to Latin America, millions . how do you generate employment so people aid-credits or loans for development remain destitute. can buy the food that is being produced?" projects which can mean sales for their own Given these uneven results, it is hardly one asked. manufacturers and contractors-than in surprising that a large section of the Ameri­ "People don't know how to eat, either. giving Bangladesh the actual commodities, can public has soured on aid. More surpris­ They won't even grow or eat vegetables-it's such as fertilizer, petroleum and raw cotton, ing, perhaps, is the aid bureaucracy's unwill­ not in the culture," the other man added, which it needs even more. Indeed, World ingness to acknowledge that more is not echoing the belief of many nutritionists Bank economists say, unless the country necessarily better when it comes to foreign that poor dietary habits are responsible for gets more commodity aid, which generates assistance. much of the undernourishment that affects Government revenues from its sale within Shortly after arriving in Bangladesh last the majority of the population. the country, Dacca will not have the funds October, I met with two officials of the My first conversations with representa­ necessary to finance the local costs of the United States Agency for International De­ tives of private organizations were with foreign-sponsored projects. velopment. Like other American officials I Martin Hanratty of the Ford Foundation spoke with, their comments centered on the and Rudolph von Bernuth, head of CARE's "The aid has been too easy and not the "hopeless" plight of Bangladesh and the office in Dacca. At Ford's headquarters, a right kind," said Hugh Brammer, an adviser need to keep the country afloat. , down only When I began to ask Mr. von Bernuth about vestments in Kuwait, factories in Ireland." 13012 EXTENSIONS OF REMARKS June 8, 1982 On the last day of my stay in Dacca, I name they might get from the corruption ting around over drinks with United States happened to visit such a family. The hus­ that would come with such a program." officials in Dacca evokes eerie memories of band, a prominent young politician, was out CARE, whose young American employees similar evenings in Saigon. One night at the of town, but the wife sent a Mercedes and try to enforce the "food for work" rules in Sonargaon, an A.I.D. man leaned over the driver to pick me up, for she was eager for a the field, and the United States Govern­ table and confided: "I realize we have a long visit from someone from New York, where ment have recently devised new rules for way to go, but there is light at the end of she had lived before her marriage. At her distributing "food for work." By simply re­ the tunnel." lovely tropical villa set on at least an acre of fusing to pay for work that the Americans Interestingly, the United States Govern­ green lawn, over tea and delicious Bengali believe is not being carried, out, they have ments's motives for investing so much in aid sweets, she complained about the usual de­ already saved 20 percent of the cost of the to Bangladesh closely resemble its early in­ piction of Bangladesh as an impoverished program this year. The agency was spurred tentions in Vietnam. An unclassified United outpost and chatted about her four months in its efforts last year when one of its young States Embassy document dated last Octo­ last year in Heidelberg and her upcoming women was threatened with death after she ber stated that "U.S. economic assistance to trip to Boston. warned a corrupt local official to keep his Bangladesh is our principal means for sup­ According to t he representative of an hands out of the grain bin. porting the interrelated objectives of stabili­ international financial institution, who One of the angriest people in Bangladesh ty and orderly economic growth. A stable asked not to be identified, such families pay is the Rev. R. W. Timm, a Roman Catholic Bangladesh in turn contributes to the im­ virtually no taxes. As he put it, "There is a priest who has been in the country off and portant U.S. goal of regional stability in lack of revenues relative to the country's on for more than 20 years with Caritas South and Southwest Asia." income. Tax receipts amount to only 8 per­ Fort Benning, Ga. Following a stint ties, to receive information collected 1 See my statement entitled, "Resources Urgently as a platoon leader he was assigned to during military operations and to be Needed for Drug Agencies," Congressional Record military intelligence with the 9th In­ trained by military personnel, our

In the age group of those receiving bacca­ When this has been done, there still will FEDERAL BUDGET CUTS AND SALEM laureate degrees this year, one out of every be work to do, and bridges yet to build. four Americans will complete college. µi If democracy is to triumph in the under­ I am writing in response to the deep 1960, the figure was not quite one in eight. developed world, bridges of literacy and budget cuts that have been proposed in fed­ Members of this class are among the fortu­ learning must be extended to the humblest eral student loans and grants for fiscal 1983. nate 23 percent. families. They must be given a chance to It is my unhappy responsibility to report And yet-and yet, there is something make a decent wage-a chance to borrow, to that after this year's 12 percent reductions deeply disquieting in the present scene. The get a start, at a rate of interest they can in these programs any further cuts will have number of high school and college gradu­ pay-a chance to own a modest home or a damaging consequences for higher educa­ ates, as a percentage of our population, has small farm of their own. In emerging na­ tion in general and private colleges like remained at a plateau for the past three tions, free societies will thrive only if they Salem in particular. In my personal view years and shows alarming signs of turning build bridges across the impenetrable walls these proposals are painfully shortsighted. downward. that too often have separated class from They abruptly reverse long-standing com­ Economic conditions in general, and de­ class. mitments, contradict many of the current clining availability of student loans and fi­ Somehow, someday, the vision of human­ administration's own fundamental princi­ nancial assistance in particular, may fore­ ity must be employed to tear down the walls ples, and could easily lead to increased tax doom the accessibility of higher education of fear and hostility and create in their burdens at the state level. I would like to to a declining percent of our young popula­ place bridges of understanding between the ask you to assess the proposed cutbacks and tion. That, in my judgment, would be tragic! people of the United States and the people then to consider communicating your views It would be historically retrogressive, of the Soviet Union. directly to your Congressmen and other of­ wasteful of our most precious resource, and This is no doubt the most difficult work of ficials. morally indefensible. all. But it could be the most rewarding. Aid from the federal government to stu­ EDUCATION, OUR BEST INVESTMENT In this year alone, our two nations will dents has been one aspect of the financing The very best investment our country ever spend half a trillion dollars upon arma­ of higher education ever since the GI Bill. made-with the possible exception of the ments. Just think of the legitimate needs During the 1950s, 60s, and 70s a series of Louisiana Purchase-was the G.I. Bill of this amount of money could meet. Think of programs have evolved which assist middle Rights with its educational opportunities the untold good it could perform if it could and lower income college students with immediately following WWII. be spent instead upon foodstuffs and medi­ grants, loans, and work-study opportunities. Not only did it enlarge the intellectual ho­ cine, upon research and disease eradication,