4844 CONGRESSIONAL RECORD- HOUSE April 7 EXTENSIONS OF REMARKS

The Bimson Report and American Respon­ opportunity to participate at the time policy We can erect national barriers against is being formulated; the States have voiced sibility to the Indians trade and even against people. But the same complaint. there are no effective barriers against Further, the report goes on to urge disease. With the fantastic increase in EXTENSION OF REMARKS that- the speed ol transportation, tubercu­ o:r A continual and closer relationship should losis in Greece and leprosy in the Pacific HON. ED EDMONDSON be developed with a responsible organiza­ can touch us. Hoof-and-mouth disease tion of the Indians and the State govern­ and rinderpest halfway across the world OF OKLAHOMA ments. may mean the same epidemics here. IN THE HOUSE OF REPRESENTATIVES These are valid and praiseworthy ob­ As an example of what is being done to Wednesday, April 7, 1954 servations in a report filled with many safeguard us, the World Health Organi­ Mr. EDMONDSON. Mr. Speaker, on worthwhile comments-which unfortu­ zation has established an international what sensible basis can we judge the nately does not follow its own advice or warning system through a worldwide planning of the Interior Department with adhere to its own statement of basic chain of radio transmitters. Plague, regard to its own agencies? principles in some of its conclusions. cholera, smallpox or other dangerous Yesterday we voted for an appropria­ What is the Bimson report, anyway? diseases anywhere in the world are im­ tion bill providing additional millions for Who is responsible for it? mediately reported to WHO. Facts and the operations of this Department, but How much time was spent in its prep­ figures are at once put on the air. Na­ I am sure that many of us voted for this aration, and how well qualified on In­ tional health services of any nation, as bill with grave questions in our minds dian matters were most of its authors? well as ships at sea and aircraft, are about present Department plans for dis­ Who took part from Oklahoma­ warned in time to take effective action. charging some important responsibili­ America's original Indian Territory, and In our global struggle against commu­ ties of our Government. home of more people of Indian blood nism, one of our principal endeavors is A case in point, of vital concern to than any other State? to keep the free world strong. Disease millions of Americans, is departmental How much attention is devoted to breeds poverty and poverty breeds fur­ planning for the Bureau of Indian Af­ Oklahoma and its Indian problems in the ther disease. International communism fairs. 53 pages of this report? thrives on both. Greece, which only a How can we evaluate that planning If you are interested in the American few years ago survived a Red onslaught, today, and what acceptance has it won Indian, I suggest that you read this re­ had 2 million cases of malaria in 1942 among the Indian people, and among port, and study it well. and bought $1.3 million worth of qui­ persons and organizations keenly inter­ I am preparing for the RECORD a de­ nine. Heavy DDT spraying by 1949 had ested in the American Indians? tailed analysis of the Bimson report, cut the sickness figure one-fortieth at a Aside from testimony of Indian Bureau along with a collection of comments on total cost of $300,000-a million-dollar officials before congressional commit­ it from people with a lifelong concern saving. In the former malaria ridden tees-which has been both qualified and for the Indian people. districts, the average gross income of cautious on most controversial issues­ It is my sincere hope that the Depart­ families has doubled and the area culti­ we have only been supplied one yard­ ment of the Interior will think for a long vated increased by 67 percent. stick to measure current planning. time, and reflect carefully upon our We have built this, the greatest Na­ That yardstick is the Bimson report country's traditional responsibility and tion in the world, on the belief that all otherwise known as the Survey Report the special problems of individual States, men are children of one Infinite Father, on the Bureau of Indian Affairs, dated before this report is accepted as con­ made of the very Essence of His Being. January 26, 1954, and printed by the trolling our Indian policy. To us the individual is sacred, wherever Government Printing Office for the use and whatever he may be. Our duty in of the Committee on Interior and Insu­ its largest sense is to Him. lar Affairs. Today let us emphasize the vital im­ In Oklahoma it has come to be known World Health Day portance of the principal aim of the as the notorious Bimson report and the World Health Organization: To work for infamous Bimson report. the attainment by all peoples of the Recently this report's major Okla­ EXTENSION OF REMARKS highest possible level of health. We homa provision, calling for reorganiza­ o:r join with the rest of tLe world in rejoic­ tion of area omces in Oklahoma, was ing that we have come so far, certain submitted to the vote of more than 500 HON.FRANCESP.BOLTON that together we can make man's life Indians gathered in one town in our OF OHIO on earth an ever more beautiful expe­ State. Only 11 votes were cast in favor IN THE HOUSE OF REPRESENTATIVES rience. of the survey report's recommendation. Civic clubs, chambers of commerce, Wednesday, April 7, 1954 the governor of our State, practically Mrs. FRANCES P. BOLTON. Mr. W"uetapping every tribal organization and thousands Speaker, today is World Health Day, ob­ of our citizens have joined in denouncing served by the United States and 83 other this report's provisions. member nations in the World Health EXTENSION OF REMARKS The State director of public health in Organization. o:r Oklahoma has stated in writing his ob­ Its theme for 1954 is "The Nurse: jection to the report's proposal on Indian Pioneer of Health," for it was 100 years HON. SAMUEL N. FRIEDEL health. ago that Florence Nightingale began her OJ' li!ABYLAND I do not know of a single responsible historic work in the field hospitals of IN THE HOUSE OF REPRESENTATIVES Indian leader in Oklahoma who ap­ the Crimean War. Her pioneering care proves of these health recommendations. of the wounded along the shores of the Wednesday, April 7, 1954 In the face of these unfavorable reac­ Black Sea dramatized new patterns of Mr. FRIEDEL. Mr. Speaker, I am op­ tions from an area most vitally affected, preventative and curative methods posed to wiretapping. I believe that it one would expect that this report's Okla­ which are now standard over almost all is a dirty business in any circumstance homa provisions would long ago have the world. and constitutes an unwarranted inva­ been consigned to the nearest waste But how times have changed in that basket. sion of the individual's right of privacy. 100 years. Remarkable scientific ad­ Mr. Justice Holmes labeled it a dirty . This .would appear reasonable, espe­ vances have both helped civilization and business and stated: c1ally smce the report itself points out greatly compounded its problems. For that- We have to choose, and !or my part I today sickness and death at the other think it a less evil that some criminals Complaint is frequently heard that the end of the earth are not months but only should escape than that the Government India~ themselves do not have su11lcient a few hours away from all of us. should play an i~oble part. 1954 ._ (:ON~RESSIONA~ ~CORD- HOUSE 4845 Subsequently the Congress enacted By this statement the proponents of views and activities may be obnoxious to the legislation prohibiting the admission of wiretapping admit the seriousness of the present incumbents of law-enforcement of­ wiretap evidence. problem created by the present existence fices, are being investigated and cataloged. If information gathered from such investiga­ Is there any real and urgent need for of the practice and that the problem is tions · is being· obtained by wiretapping, t~:e Government of the United States to self -evident. · They then go on to advo­ dictographing, or other reprehensible meth­ play an ignoble part? Are we in such cate more of the same on the ground ods, and if it is some day offered as evidence dire danger that resort must be had to that society must be protected against in a Federal criminal trial, the courts may any means, no matter how reprehensible, criminals. have an opportunity to apply the principles to preserve our very existence? Are we If more wiretapping is the solution to of the Boyd case and of the Nardone case. in extremis so that the civil liberties of protect society from criminals, how ef­ But on the other hand, the information may our people must be sacrificed to keep fective is it as a weapon? perhaps never'be offered in such a case, be­ cause the victims of wiretapping and similar this great Republic from coming apart Enforcement officers seem to differ in methods may perhaps never be charged with at the seams? The head of the present their estimates of the value of wiretap­ a · crime. In this event, the information administration of the Government ping. District Attorney Thomas E. may be used in extralegal controversies thinks otherwise. Let me quote from the Dewey called it "one of the best methods where the courts may have no opportunity text of President Eisenhower's address available for uprooting certain types of to adjudicate the matter. Wiretapping and to the Nation on Multiplicity of Fears as crime." J. Edgar Hoover, Director of the other unethical devices may lead to a variety recorded by the New York Times of Federal Bureau of Investigation, termed of oppressions that. may never reach t.he ears Tuesday, April 6, 1954: of the courts. They may, for example, have it an archaic and inefficient practice the effect of increasing· the power of law­ Now the next thing that we fear concern­ which "has proved a definite handicap enforcement agencies to oppress factory em­ ing which we are apprehensive is this idea or barrier in the development of ethical, ployees who are under investigation, not of Communist infiltration into our own scientific, and sound investigative tech­ for any criminal action, but only by reason country-into our Government, into our nique." He further stated in a press re­ of their views and activities in regard to schools, into our unions, into any of our lease of the Department of Justice, labor unions and other economic move­ facilities, any of our industries wherever they ments; this is no fanciful case-such in­ may be and wherever those Communists March 15, 1940, in opposition to a bill then pending in Congress which would vestigations are a fact today. In short, un­ could damage us. authorized and unlawful police objectives Now it would be completely false to have legalized wiretapping: may be aided by wiretapping and dictograph­ minimize the danger· of this penetration. While I concede that the telephone tap is ing practices, the extent of which we are not It does exist. We know some of them are from time to time of limited value in the in a position to estimate without a careful here. Yet let me give you now some of the criminal investigative field, I frankly and inquiry into all the facts. counterbalancing factors. . sincerely believe that if a statute of this kind First of all, this fear has been greatly were enacted the abuses arising therefrom Finally, if we must have a law such as exaggerated as to numbers. In our country would far outweigh the value which might this, if we must take these risks, then let today there are possibly some 25,000 doctrinal accrue to law enforcement as a whole. us at least afford our millions of in,no­ Communists. The FBI knows pretty well where they are. No matter what safeguards are im­ cent fellow citizens the protection of an But the headlines of the newspapers would posed, when a telephone is tapped, the i.inpartial and unbiased opinion respect­ sometimes have you think that every other monitoring of conversations cannot be ing the necessity of wiretapping in each person you meet is a Communist. Actually, restricted to those personS suspected of specific case. This bill does not afford 25,000 out of 160,000,000 people means about even such small protection as that. It 1 out of 6,000. But they are dangerous. crime, but will inevitably invade the pri­ vacy of many innocent persons. The au­ provides that the department of the Now, our great defense against those people Government which desires to do the is the FBI. · thorization of the Attorney General may The FBI has been doing for years in this specify the line to be tapped, but it can­ wiretapping shall first be required to ob­ line of work a magnificent job. not limit the subjects of conversation tain its own express written approval They are great bulwarks. And any one of which are to be overheard, nor the per­ before doing so, that is, the Federal you can notify them today about real, valid, son whose conversations will be publi­ Bureau of Investigation, a part of the suspicions you have-they will be on the job Department of Justice, must seek the doing something about it. They are that cized. Anyone speaking to the suspect over the tapped line will open his busi­ approval of the departmental Chief, the kind. Attorney General. Mr. Speaker, this is So great ls the story that they have to tell, ness to the ears of the law. Communi­ no safeguard at all. The Founding that I'm not going to tell it-tell it tonight. cations which are otherwise wrapped in Fathers in establishing this Republic Instead I've asked the Attorney General on privilege, as those between attorney and next Friday night to come before you and protected us from oppression by one client, may be revealed to the listener. branch of the Government through a give you a complete account of what the Information secured by wiretapping, FBI has been doing about this. system of checks and balances on all although irrelevant to the investigation branches. In this bill we must do no Mr. Speaker, now you cannot have it of crime, can be used for blackmail, the less. We must amend this bill and es­ both ways. Either the danger is extreme oppression of persons having unpopular tablish checks and balances by requiring as the proponents of wiretapping w-ould views, the exertion of political pressure that express written approval in each have us believe or our fears are· greatly by the administration which happens to case be obtained from a completely sepa­ exaggerated and the Federal Bureau of be in power, or even for the benefit of rate and impartial branch, that is, from Investigation is presently doing a great those employing Government agents the courts of the United States. job in controlling the near 25,000 possible after they leave the Federal service. Communists out of 160 million people. ·The possession of so much information I prefer to believe our President. which can be thus misused will con­ The committee in reporting out H. R. stitute a great temptation to, and a cor­ Springfield Armory, Its 160th Anniver­ 8649, which would permit wiretap evi­ rupting influence on, the law .. enforce­ dence to be admitted in Federal courts, ment officers themselves. sary-A Great Institution Dedicated to which was obtained by the Federal Bu­ Mr. Speaker, if we enact this bill and the National Defense reau of Investigation on written approval make wiretapping even partially legal by the Attorney General, stated: we will be setting the floodgates ajar EXTENSION OF REMARKS The existence of wiretapping is denied by and I doubt if they can then be held. no one and that it creates a very serious Let me quote the things which prompted OF problem is self-evident. No one denies that a Senate Committee on Interstate Com­ the practice of .wiretapping invades an in­ merce, even under the prohibition of the HON. EDWARD P. BOLAND dividual's privacy, but at the same time no present law, to recommend an investiga­ OF MASSACHUSETTS one denies the right of society itself to be IN THE HOUSE OF REPRESENTATIVES protected against criminals. The true solu­ tion of wiretapping then being carried tion to this problem appears to be a middle on: Wednesday, April 7, 1954 ground whereby the · Government, through Wiretapping, dictographing, and similar Mr. BOLAND. Mr. Speaker, this its law-enforcement agencies may properiy devices are especially dangerous at the pres­ operate to apprehend and convict those who ent time~ because of the recent resurgence morning the Springfield Chamber of violate its laws under a procedure which will of a spy system conducted by Government Commerce saluted the 160th anniversary protect the rights and privileges of its law­ police. Persons - who have committed no of the establishment of the United States . abiding citizens. crilne, but whose economic and political Arsenal at Springfield, Mass. It is well 4846 CONGRESSIONAL RECORD -HOUSE April 7 for us in this Congress today to reflect on Following a tradition of over a century or made as long as our official policy is the history and significance of this highly and a half, small arms craftsmen carry largely concerned with artists who have important small-a.rms industry operated on the science of military gun making. been dead at least 20 years and with art by the Ordnance Department under the Production engineers keep constantly that was produced mostly in foreign Department of Defense. abreast of modern manufacturing tech­ countries sometime during the past three Mr. Speaker, the Springfield Armory niques. Since 1861, the heads of the or four thousand years. is one of our oldest national institutions. armory have been Ordnance officers and The following editorial, from the It was in 1777, during the War of the all have contributed much to our na­ newspaper Bayonne Facts, of Bayonne, Revolution, that General Knox recom­ tional defense. Those who have labored N. J., of April 1, 1954, deals with one of mended that "one or more laboratories in research and production have done the major and best-known proposals for and depots be erected far from the likewise. I am proud of what they have strengthening this Nation's cultural of­ site of war." Buildings were rented in done for this Nation. I point with pride fensive. This proposal, introduced by Springfield, Mass., and cartridges manu· to the history this great arsenal has my distinguished colleague from New factured there. In 1789 President Wash­ helped to write in all the battles of this Jersey, Mr. CHARLES R. HOWELL, and ington visited Springfield and recom­ Nation from the Revolutionary War others, deserves the attention of this mended it as the site for the establish· down to the present when the Armory body and of the Nation. ment of the national armory for the made the 50-caliber aircraft ma.chine It should be pointed out that Con­ fabrication of small arms. The Third guns that armed our planes in the air gressman HowELL has revised his meas­ Congress authorized its establishment over Korea. I trust that the Department ure several times to incorporate the by "An act to provide for the erecting of Defense will never lose sight of the many suggestions and recommendations and repairing of arsenals and maga.. significance of the Springfield Armory made to him by the Nation's cultural zines, and other purposes," which was and the great reservoir of skill and know­ leaders and the officials of the Federal approved on April 2, 1794. Thus was how of the men and women who man the Departments and Agencies who have re­ born the first manufacturing arsenal in plant. I congratulate the commanding ported on his bill. The only specific this country. officer of the armory, Col. William J. figure mentioned in the most recent Mr. Speaker, the history of the Spring­ Crowe, and all of his subordinates and version of his bill is an annual appro­ field Armory is the history of small arms the employees on the occasion of its priation of $50,000. This is surely a in America. In these days of atomic and 160th year. ridiculously small item in the world's hydrogen bombs and this era of terrify.. richest nation with an annual income ing technological and possible bacte­ of about $300 billions. riological warfare, we are prone to for· The Howell bill, H. R. 7185, would es­ get those improvements in military Are We Really Gum-Chewing, Materialistic tablish a national arts program as a war weapons that turned the tide of battle Barbarians? memorial and is modelled after the Na­ of past wars. The muskets and rifles tional Science Foundation Act and the manufactured at Springfield Armory Hill-Burton Hospital Construction Act. EXTENSION OF REMARKS Some 5 Senators and 10 Members of this have been the basic military weapons of OF our fighting forces from the Revolution­ body from both of the major parties have ary War to the present date. The first HON. EDWARD J. HART joined Congressman HowELL in sponsor­ muskets manufactured in 1795 at the OF NEW JERSEY ing bills which are similar or related to his. Recently, also, some 54 Senators arsenal were patterned after the French IN THE HOUSE OF REPRESENTATIVES Charleville design. Minor changes were and more than 70 Representatives from made through the years until1842 when Wednesday, April 7, 1954 both parties have introduced legislation the flintlock gave way to the percussion Mr. HART. Mr. Speaker, one of the which would authorize the creation of a type weapon. The first percussion rifle most effective ways of combatting athe­ Federal commission to formulate plans was made at the armory in 1855. In istic world communism is to prove to the to honor Christopher Columbus on the 1866, 11 years later, the breech loader world that there is a great deal more to 450th anniversary of his death. Upon was introduced and in 1892, the bolt ac­ the American way of life than its ma­ introduction of this legislation the tion was adopted. Early in the 20th. cen­ terialistic accomplishments. sponsors said that an opera house is very tury the famous Springfield repeating If you read the press of many parts of much needed in the Nation's Capital and rifle, the model 1903, was developed. Asia and Europe and other parts of the would be a fine memorial to the great This was one of the most significant de­ world, you find that Americans are often navigator. Clearly, then, the subject velopments in small a.rms for it gave to described as gum-chewing, insensitive, with which the Howell measure deals is our forces a firepower that few could materialistic barbarians. This myth is of interest to both the Democratic and conceive. After World War I, designing assiduously cultivated by the Commu­ Republican parties. efforts were concentrated on a semiau­ nists who are spreading it around the The following editorial speaks for it­ tomatic rifle, which resulted in the world at the same time that the self: adoption of the Garand M-1 in 1937 as U. S. S. R. is making tremendous finan .. HOWELL FOR CULTURE AND ART the official rifle of our Armed Forces. cial expenditures in the field of cultural When a man seeking public office shows Just as the adoption of the bolt action affairs in this cold-war period. Soviet a strong aptitude for national culture he repeating rifle in 1892 multiplied the leaders spend great sums on their mili­ typifies an individual who is entitled for sup­ port in his bid for the post which he seeks. rapidity of fire of the service rifle sev­ tary forces. At the same time, their new The Democratic Party has found such a eral times, so the advent of the Garand propaganda techniques, based largely on man in CHARLES ROBERT HOWELL, Member of rifle, which reloads itself automatically skillfully organized personal contacts, Congress of the Fourth Congressional Dis­ each time the trigger is pulled, multi· are beginning to be evident everywhere. trict-who is now seeking to become New plied and increased the firepower of the Many more students from non-Commu­ Jersey's next United States Senator. Think­ American rifleman between 2 and 3 times nist countries in Europe and Asia, by no ing in such channels as art, stamps him as over the firepower of the soldier equipped means all of them party members, are a man of high distinction and the Demo­ with the breech loader. being invited study in the Soviet cratic Party is indeed fortunate to have such to a man in its ranks. During the World War II emergency Union. Carefully indoctrinated groups In an era of Communist-hunts and politi­ period, the Springfield Armory made of Russian and Chinese athletes, opera cal backbiting it is rather difficult to think over 3,500,000 M-1 rifles. Today, the stars, actors, ballerinas, musicians, and in terms of national cuture, but Representa­ armory is the small arms center of the acrobats are to be seen in increasingly tive HowELL of Pennington has done it. United States Army. Here is the scene large numbers beyond the Iron Curtain. He's sponsored a bill (H. R. 452) referred of technical information for the nation­ It is imperative that no time be lost to the Committee on Education and Labor, wide research and development program in making known the cultural achieve­ which would allow $20 million per year as a on small arms. Here highly trained de­ ments of our own country. They are Federal grant to the arts-opera, drama, bal­ let, literature and poetry, photography, and signers work closely with scientists and many and varied, with artistic standards TV, and painting and sculpture. inventors in industry-constantly im­ as high or higher than similar programs Complete support has been promised by proving and creating new individual in any other country in the world. In­ unions and guilds within those realms, and arms and automatic weapons for our formation and an honest appraisal of 1t would seem public approval would help. Armed Forces. our cultural activities cannot be obtained It au comes under the heading of a n~- 1951, CONGRESSIONAL RECORD-- HOUSE 4847 tional-theater program which would be ad· faiths event, has chosen as its campaign the State Department did its work in ministered by 15 leaders in the field of the slogan this year, "To build faith in our 1940-43. The Judith Coplon ring in the arts, education, and public affairs. The bill provides for scholarships and fel· children, take them to Sunday school." Department of Justice was active in the lowships, an international exchange of art· years 1943-46. The Amerasia spy ring~ ists. Those -necessary to form the pivotal which operated in both the State and group of operation as musicians, artists, Navy Departments as well as in the Office actors, and te<:hnicians would be placed on A 20-Year History of -Communism in New of Strategic Services, sent its secrets to a yearly salary. Deal Washington Down to Date Moscow in the years 1943-45. The Let us hope the Congressman has not ar­ atomic-energy spy ring did its work in rived too late to remind us that America, 1942-46. · Pressman's testimony was the the richest land of all, has no national thea· EXTENSION OF REMARKS ter, no program or subsidy to foster its art· first from a former Government em­ ists and develop its native culture. It is OF ployee who had been himself a member about time we were recognized for our of the Moscow network in Washington singers, dancers, architects, and musicians as HON. RALPH W. GWINN during the first months of the New Deal, well as for our ability to build bigger things OF NEW YORK dating from March 4, 1933. than anyone else. Each is important, but IN THE HOUSE OF REPRESENTATIVES The three other Communist Party certainly one no more than the other. members who worked closely with him Representative HoWELL has had a brilliant Wednes-day, April 7, 1954 career in public life--and one of his feats in the Agricultural Adjustment Admin· as a lawmaker has been his authorship of Mr. GWINN. Mr. Speaker, before the istration's Kremlin cell were named by the State's first fair employment practices New Deal, communism was an under­ Pressman in his testimony as first, legislation. This is another bit of evidence ground, outlaw movement in the United Nathan Witt, who later became secre­ of his rational thinking for the public and States. Barred from the ballot by 18 tary of the National Labor Relations its needs. State legislatures, the Stalinites were Board, and shaped our Federal labor In 1949 Congressman HoWELL devised a without legal standing. Their party was policy for years; second, John J. Abt, questionnaire for his electorate in order to treated as the thing it was, a wrecking who was chief of the legal section of the ascertain their opinions on domestic and movement of godless outlaws and violent foreign issues. The plan has proven sue· Agricultural Adjustment Administration -cessful ana he still employs the practice. revolutionaries. Four Presidents faith· in 1933, became assistant general counsel On his entrance into politics he was a fully had preserved the United States for Harry Hopkins' Works Progress Ad­ Republican-but influenced by the great hu­ policy of nonrecognition of the lawless ministration in 1935, and assistant to the manitarian champion, the late Franklin D. Communist Russia. Attorney General in 1937-38; and Roosevelt, he joined the Democratic ranks All this was changed by the New Deal. third, Charles Kramer, who left the to champion and vote for bills that would Early in 1933, soon after President Agricultural Adjustment Administration benefit the little man. Roosevelt's inauguration on March 4, A man of such philosophies and progres· to become general counsel to the Senate sive thinking would be a big asset in Wash· talk was heard of immediate recognition Labor Committee, in which capacity he ington-and Facts at this early date proudly of the Moscow government. Before the was, with Chairman Robert F. Wagner, endorses the senatorial candidacy of CHARLES year was out recognition had been of New York, one of the principal ROBERT HOWELL. accomplished. authors of the Wagner Act, which gave Thenceforth, the outlaw breed of communism a free hand in the American wreckers and despoilers of civilization labor movement. were taken into the family of nations, In a very real sense, Pressman's testi~ National Sunday School Week offered a place at the council table of mony forms the vital missing link in the humanity and, in the United States, Communist trail in New Deal Washing~ invited to become a part of government. ton. The many-sided Moscow network EXTENSION OF REMARKS And precisely at this point began the which came to light in later years in all OF most treacherous betrayal of America. the major departments of the Govern· HON. WALTER H. JUDD since the founding of the Republic. ment, was seeded originally in 1933 in Today, after 20 years of organized the Agricultural Adjustment Administra~ OF :MINNESOTA Communist penetration in America, we tion, when Henry A. Wallace was Secre­ IN THE HOUSE OF REPRESENTATIVES have some of the story in the public rec­ tary of Agriculture, with Rexford Guy Wednesday, April 7, 1954 ord, the story of Moscow's treacherous Tugwell as Under Secretary and top ad­ infiltration of every major department ministrator of the first-unconstitu· Mr. JUDD. Mr. Speaker, the week and agency of our own United States tional-incarnation of the Agricultural of April 12 through 18 is being observed Government, both in Washington and Adjustment Administration. as National Sunday School Week. This throughout those States in which large Pressman was first named as an in­ is the lOth celebration of an annual Federal payrolls are controlled by the fiuential kingpin of the Washington event, a strictly nonsectarian event. It Washington bureaucrats. Communists in the early New Deal era, is a most significant week, and one to On August 28, 1950, Lee Pressman, in the testimony of Whittaker Chambers, which Americans will want to give at­ formerly an attorney in the Agricultural in August 1948. When the House Com· tention, for it stresses the importance of Adjustment Administration, testified be· mittee called him on that occasion, the role of the parents of this country in fore the House Committee on Un-Ameri.;. Pressman dismissed Chambers' charges encouraging and supporting moral and can Activities. Under oath, he ac­ as "the stale and lurid mouthings of a spiritual training for their children. Is knowledged that he had been a member Republican exhibitionist." In the same it any wonder that juvenile delinquency of a Communist Party cell in Washing­ manner, Alger Hiss had denied Cham­ is increasing when it is estimated some ton in 1934 and 1935. He named three bers' accusations with unrestrained ve­ 27 million children in the United States coworkers in the Agricultural Adjust· hemence. Two years-and one presi­ h~ve no religious affiliation or training? ment Administration, the first of the dential election-were to pass before the How can we expect people to live by the New Deal recovery agencies, as collab­ record would be completed by Press­ Ten Commandments, the Sermon on the orators in the Communist underground man's frank admission-after the Com~ Mount, the Golden Rule, and the Judea­ then operating within the Federal de­ munist aggression in Korea-that he Christian body of ethics on which our partments under the Roosevelt-Wallace­ had himself suggested Alger Hiss for society was founded, if they have little Tugwell program to reorganize the appointment as general counsel for the knowledge of those lofty principles and American economic and political system. Senate Munitions Investigating Commit· teachings or even little exposure to In the 16-year record of the House tee in 1935, from which post Hiss had them? Committee on Un-American Activities moved on to larger fields of public serv~ Just as it is of utmost importance that there is no earlier date established for ice in the State Department and the we take the Holy Bible as the guide of the launching of the Communist net­ UnitedNations Preparatory Commission. our daily lives, so is it vitally important work within the structure of the Ameri­ . After leaving Federal service in 1936 that by example we show our youth the can Government. The Communist cell Pressman became a national figure as right way as against the wrong. Hav­ in the State Department, which came to general counsel for the CIO, at $19,000 ing these convictions, the Laymen's Na­ light in the Alger Hiss trial, began oper­ a year. As legal guide and mentor to tional Committee, sponsoring the all- ations in 1938-39. The Marzani cell in the late Sidney Hillman, Pressman was 4848 CONGRESSIONAL RECORD-· HOUSE April 7 a moving force in the CIO Political Ac­ the Un-American Activities Committee. Office of Strategic Services. Security tion Committee, which reelected Roose­ Since 1948, President Truman has sought classifications on these documents velt for the third and fourth terms, put to dismiss all charges of communism in ranged from "restricted" and "confiden­ Henry Wallace in as Vice President and Washington as only more red herring. tial" to "top secret." then Secretary of Commerce, and ex­ Many of his administration leaders in The official report of the House Judi­ tended its stranglehold on Congress. Congress sought to whitewash it and ridi­ ciary Committee on this raid, however, As long ago as December 1948, the cule the extent of its existence. was not made public until May 22, 1950. House Commitee on Un-American Ac­ Yet this committee's files today hold In presenting the report on that date­ tivities reported: more than 50,000 pages of testimony sup­ CoNGRESSIONAL RECORD, VOlume 96, part 6, Communist espionage has broken through ported by literally tons of exhibits, trac­ page 7428-Chairman Sam Hobbs, of the security forces of the United States Gov­ ing the growth of communism and its Alabama, explained that the original re­ ernment and made off with secret informa­ propaganda and political organization in port had been filed with the Clerk of the tion of both military and diplomatic plans, the United States. ·House in a routine manner on October policies, and actions. This espionage sys­ In 1939 the committee published the 23, 1946, during a recess of Congress. It tem has been carefully developed over a period of more than 15 years, and it has been names of 10 international CIO unions had never been printed. successful to a degree critical to the welfare then under complete domination and Over the period of 5 years and 2 and safety of the people of this Republic. control of known Communists. months between the Amerasia raid in On October 30, 1939, the committee New York and publications of the Judi­ It is significant that the development published the names, positions, and sal­ ciary Committee's report, all the essen­ period of this Communist network in aries of 563 Federal employees in Wash­ tial material in these 1,700 secret docu­ Washington-more than 15 years, as ington known to have been affiliated with ments had been available to Moscow. of 1948-links perfectly with Pressman's an avowed Communist-front organiza­ During those 5 years the orbit of Stalin's testimony that his own Communist ac­ tion, the American League for Peace and overlordship had ·expanded from 170 tivity in AAA dated back to the very Democracy. · million population in Russia to more · launching of AAA in 1933-34. Thus, Yet it was not until March 21, 1947- than 800 million population in Europe there is now established in the printed 7 years later-that President Truman and Asia, including Poland, Czechoslo­ public record an unbroken chain of or­ appointed the Loyalty Review Board, to vakia, Hungary, Rumania, eastern Ger­ ganized Communist activity, at the di­ check on Communists and fellow travel­ many, Albania, the Baltic Provinces, rect expense of the United States tax­ ·ers in the Federal departments and bu­ China, Manchuria, and North Korea. payers, within the very structure of our reaus. But during those critical 5 years of the own Federal Establishment, continuous­ That Board examined the records of cold war the American people never were ly since the first days of the New Deal. more than 9,200 suspected security risks told by President Truman that the most In the light of this public record, the in the Government service. Only 4,575 vital military and diplomatic secrets of New Deal now stands exposed as the of these cases finally were cleared for the United States Government had been spawning ground of organized commu­ future Federal employment. In 691 stolen by the Kremlin's spy ring in nism within the structure of American cases the FBI investigation was suspend­ Washington. Government. Under the protective shel­ ed when the suspected employee left the Informed observers have expressed ter of the New Deal's alphabetical won­ Government service voluntarily. the conviction that this case-one of the derland, communism ceased to be an Renewing its inquiry into Communist weirdest in American political history­ outlaw, underground movement, to be­ penetration of the labor movement, the is the key to America's postwar diplo­ come an active, directing force in gov~ committee on March 29, 1944, named 21 matic debacle in Asia. The suppression ernment. CIO organizations as Communist-con­ of the Amerasia evidence for 5 years Following official acceptance at the trolled. Later the committee published a served one great purpose; it sheltered White House, communism gradually pen­ list of 160 educational, political, and and protected the pro-Communist ring etrated every department and agency propaganda organizations known to be of the executive branch. When Con­ in the State Department until their gress, in 1948, began to expose this Com­ Communist fronts. During the war the treacherous work of national betrayal munist infiltration with unanswerable committee investigated Communist had been accomplished fully. evidence, President Truman ridiculed propaganda broadcasts at Government About 10 a. m. in the morning follow­ the work of the Un-American Activities expense by the Office of Price Adminis­ ing the Amerasia raid in Nrw York­ Committee with the fiippant rejoinder tration. This inquiry was abandoned March 12, 1945-some of the more im­ "red herring.'' But this complacent when two subofficials in charge of OPA portant recovered documents were laid tolerance of Kremlin-directed commu­ radio resigned their Federal posts. before Maj. Gen. William J. Donovan, nism in Washington had been foretold Later the committee put a stop to pro­ head of the Office of Strategic services, in an earlier campaign utterance of Soviet propaganda then being broadcast and Secretary of State Edward R. Stet­ President Truman, who had said of at Federal expense by the Department of tinius, in Washington. General Dono­ Stalin, at Eugene, Oreg., on June 11, Agriculture. In 1947, Gerhart Eisler was van instantly demanded that the ma­ 1948: exposed as the No. 1 agent of the Com­ terial be turned over to the district at­ munist International in the United torney for immediate grand jury pro­ I like old Joe. He's a decent fellow, but he's a prisoner of the Politburo. States. Convicted and sentenced to ceedings, to be started that day, so that prison for passport fraud, Eisler jumped the Government officers involved or sus­ Now it appears our own Harry is a bail, escaped from the United States pected might be subpenaed en mass, prisoner of a politburo, American variety. aboard the Polish freighter Batory, and without opportunity to compare notes As a fellow prisoner with Old Joe, soon became Stalin's chief propaganda. on their testimony. President Truman's acceptance of com­ agent in Berlin. But this plan did not go through. munism as a benign world power came Such was the web and extent of Com­ President Roosevelt, then in the last more than 10 years after the House munist operations in the United States month of his life, directed that the case Committee on Un-American Activities Government as disclosed up to May 1950, be turned over to the FBI for full in­ had begun a systematic delineation of when the details of the celebrated Amer­ vestigation. All public discussion of the world Communist sabotage and espion­ asia case was revealed to an unsuspecting Amerasia material was to be avoided age in the United States. American public, through a long-sup­ during the FBI investigation. That committee was set up first by pressed report of another committee of Thirteen weeks later, on May 29, 1945, House Resolution No. 282 of the 75th the House. the FBI report to the Attorney General Congress, May 26, 1938, and on January Shortly before midnight on Sunday, recommended six arrests in the Amer­ 3, 1945, was made a permanent stand­ March 11, 1945, Federal agents entered asia case. But on May 31 the Attorney ing committee of the House. the offices of the pro-Communist maga­ General hastily informed the FBI the During its first 10 years, under Presi­ zine Amerasia, 225 Fifth Avenue, New whole case must be held in abeyance dents Roosevelt and Truman, the com­ York. They seized some 1,700 secret doc­ until the conclusion of the San Fran­ mittee was the object of almost continu­ uments stolen from the Department of cisco conference then organizing the ous bitter abuse and violent scorn from State, War Department, Navy Depart­ :United Nations. Publication of the re­ the White House. Congress was bom­ ment, Office of War Information, Federal covered Amerasia documents, it was con­ barded with petitions and requests to kill Communications Commission, and the tended officially, might embarrass the 1954' CONGRESSIONAL RECORD- HOUSE 4849 San Francisco conference, of which Agriculture, the traitors spread out into agents to make what good contacts they Alger Hiss had been named Secretary every area of the Government including could here in Washington in order that General. Owen Lattimore, unotncial even Congress. But let the record speak should they need to get into a better Job. State Department adviser on Asiatic af­ for itself. The Senate report lists 11 they would have the contact ready. fairs, had been a member of the Amer­ individuals who served on the staffs of The pattern of working together, in asia editorial board from 1937 to 1941. six Senate committees and one House the committee's words,· was this: On June 6, 1945, six persons in . the Committee. When questioned, 10 in­ They used each other's names for refer­ Amerasia case were arrested by FBI voked the privileges of the Fifth amend­ ences on applications for Federal employ­ agents on charges alleging conspiracy to ment. On the executive side of Govern­ ment. They hired each other. They pro­ violate the espionage laws. A few days ment the traitors commanded such posi- moted each other. They raised each later these charges were reduced to con­ tions as: . other's salaries. They transferred each other spiracy to violate title 18 of the United First. An executive assistant to the from bureau to bureau, from department to department, from congressional commit­ States Code, having to do with the em­ President of the United States. tee to congressional committee. They as­ bezzlement and mutilation of Govern­ Second. An Assistant Secretary of the signed each other to international commis­ ment documents. Treasury. sions. The grand jury failed to return true Third. A United States Treasury At- tills against three of those arrested. But t::tche in China. The story of the promotion of Harry on Aug~t 10, 1945, true bills were re­ Fourth. The Director of the Office of Dexter White by President Truman to turned against Phillip Jaffe, the Rus­ Special Political Affairs for the state De- the.International Monetary Fund is still sian-born editor of Amerasia, Emanuel partment. fresh enough in everyone's mind so that Larsen, a State Department ofiicer, and Fifth. Secretary of the International no additional comment need be made Lt. Andrew Roth, of the omce of Naval Monetary Fund. here. One inference must be made, how- Intelligence. Sixth. A member of the National La- ever, from the Harry Dexter White case. On October 2, Jaffe entered a plea of bor Relations Board. That is, that the whole story is not yet guilty and was fined $2,500. Seventh. Secretary of the National told and may never be told, because the On Saturday afternoon, November 2, Labor Relations Board. New Deal Communist Socialists did not a curious hour when Washington courts Eighth. Chief, statistical Analysis and do not want it to be told. As the are not normally in session, Larsen en­ Branch, War Production Board. Senate subcommittee put it: tered a plea of guilty and was fined $500. Ninth. Director, National Research There is a mass of evidence and infor- This session of court lasted less than 15 Project of the Works Progress Admin- mation on the hidden Communist conspir- istration. acy in Government which is still inaccessible minutes. to the Federal Bureau of Investigation and On February 13, 1946, the last remain­ T enth · Treasury D epart ment repre- to tliis subcommittee because persons who ing Amerasia indictement, against Lieu­ sentative and adviser in Financial Con- know the facts of this conspiracy are not tenant Roth, was quashed on motion of trol Division of the North African Eco- cooperating. the Department of Justice. nomic Board in UNRRA and at the meet- The net of the Amerasia disclosures, ing of the Council of Foreign Ministers To date only the highlights of these therefore, was six arrests, three releases in Moscow. 20 years of treasonable betrayal in Wash- . without indictment, one fine of $2,500, Eleventh. Secretary General, United ington have been sketched in the pub- another fine of $500, and one indictment Nations Conference. lie record. Some day, when an the rec- quashed. Somewhere high in the Gov­ These people were responsible for the ords may be examined, the whole fright­ ernment _powerful forces had succeeded so-called Morgenthau plan which was ful story of New Deal treachery, sabo­ in smothering from national view and intended to reduce Germany to an agrar- tage, and espionage will be unfolded for public discussion the whole shocking ian community and thereby guarantee- public appraisal. story .of 1,700 secret documents stolen ing the transcendence of Russia in west- That story will tell exactly how many from the sensitive departments in Wash­ ern Europe, for the first time since the Communists and fellow-travelers found ington for reproduction in a Communist hordes of Genghis Khan swept out from employment in the Federal bureaus after magazine in New York. the East. These traitors made possible 1933. It will tell who, in 1945, lifted the On August 24, 1953, the Internal Se­ the Red conquest of China with the con- ban against enlisting avowed Commu­ curity Subcommittee of the Senate Judi­ sequent accretion of 400 million more nists in the United States military serv­ ciary Committee released its report on people to the Communist flag. They set ices, and why soon after we had as alleged Interlocking Subversion in Government up the organization of the United Na- by Browder over 13,000 Communists in Departments. This report filled in many tions and gave Russia the veto and per- the armed services. of the gaps in the story of the Com­ manent seat in the security council. But the evidence is now complete that munist conspiracy as revealed by the The senate report shows that the the Communists have infiltrated one of House Un-American Activities Commit­ Communists actually controlled the state the great political parties. This admis­ tee. The Senate report exposed the core Department, the Treasury Department, sion is reported in a recent review of the of the traitors who had been operating the National Labor Relations Board, the Un-American Activities Committee. The close to the seats of . power during the Ofiice of War Information, the Ofiice of Honorable MARTIN DIES, former chair­ years of the New Deal and the Fair Deal. Strategic Services among others and had man of the Un-American Activities Com­ About a dozen individuals loyal to Mos­ even a dominant voice in White House mittee, was threatened by Mr. Roosevelt cow, dictated the policies of the United circles. · himself. At a conference between the President and Mr. DIEs in 1938 at the States in important and vital particulars. Testimony before the Senate Internal White House the President warned Mr. They were the advisers, the speechwrit­ Subcommittee showed that Lauchlin ers, the experts, and the background currie, an executive assistant to Presi- DIES that the Democratic Party could men. Benedict Arnold was a patriot dent Roosevelt, together with Harry . not win if the Un-American Activities compared to Alger Hiss, Harry Dexter Dexter White, Assistant Secretary of the Committee investigated the Communists White, Victor Perlo, Nathan G. Silver­ Treasury. were the men who pulled the in the CIO. Such an investigation, said the President, would cause the CIO to master, John J. Abt, Nathan Witt, Lee necessary strings when a new field was turn against the party and, said he: Pressman, Edwin S. Smith, Harold Glas­ to be infiltrated or protection from ex- ser, Carl Aldo ¥arzani, V. Frank Coe, posure was required. A signifl.cant por- Without their support the Democratic and Irving Kaplan. tion of Elizabeth Bentley's testimony be- Party would be defeated. As Lee Pressman had testified, these fore the Senate subcommittee is as fol- Then after ridiculing DIES for seeing people got their foothold in the Depart­ lows: things under the beds the. President said: ment of Agriculture where they wrote the laws providing for the subsidies we We didn't have too much trouble [in mov- There is nothing wrong with Communists. are even now granting to wheat, cotton 1ng these agents]. • • • Two of our best Some of the best friends I have got are Com­ [avenues for placing people in positions) munists. corn, etc. If we continue these laws we were Harry Dexter White and Lauchlin cur- Perhaps the reason is not far to seek must spread the communistic ownership, rie. • • • Whoever we had as an agent· · . . • finance, and control to all foods and would automatically serve for putting some- . A President who found Joe Stalin a fibers, for why should. fruit and vege­ one else in. • • • Once we got one person decent fellow in 1948 hardly could be tables be left out of consideration for in, he got others, and the whole process con- expected to become really indignant and subsidies?. From the Department of tinued like that• .!. • .! we trained our - incensed that a foreign power with a 4850 CONGRESSIONAL RECORD -HOUSE April 7 propaganda machine at least equal to the 10 Southeastern States. In 1930, ards of living by taxpayers compelled to that of the United States Marines, ac­ before the advent of TVA, the popu­ supply schools, streets, police, and other tually had penetrated every department lation of Tennessee ranked fourth among like services for the tax-exempt Govern­ of his o·wn Government. the 10 States and in 1950 she still ment houses, and an alarming increase Finally Norinan Thomas and Earl ranked fourth. But in 1933, just a year of juvenile crime and dishonesty pecu­ Browder have announced that the So­ prior to operation of l'VA, the receipts liar to all communism. cialists and the Communists have se­ from farm marketing ranked Tennessee The taking of private property without cured most of their program through the fifth, while in 1950 she dropped to eighth consent by political compulsion to make Democratic Party. They have virtually place. The retail sales payroll in 1935 it public property for the benefit of dissolved the Socialist and Communist put Tennessee in third place; in 1948 special groups is antisocial and morally Parties as separate units. They are now she h ad . dropped to fifth place. Retail wrong. Moral qualities which reside in masters of the once-great Jeffersonian · sales in 1929 h ad Tennessee in second the individual alone certainly cannot be Democratic Party. Thomas and Brow­ place; in 1948 she had dropped to fifth. conveyed by force of government to an­ der write with satisfaction and say in In value added by manufacture, Tennes­ other. So when government attempts effect that- see ranked third in 1933; fourth in 1947. to separate a man's house or property Our work is done. We are satisfied. Our In gross postal receipts she ranked third rights from him by force so as to convey followers numbering about 900,000 are now in 1933; down to fourth in 1951. it to another, nothing of moral value in the New Deal Democratic Socialist-Com· Since TVA began its monopolistic con­ whatever can be conveyed. Violence munist Party-the party of the future. trol of the State of Tennessee, the people against property rights of the one brings Thus the Communist-Socialist revolu­ not only lost the will and initiative to degradation to the other who takes the tion was brought about by Roosevelt and produce, but they have also lost the proceeds. Besides, it corrupts the gov­ Truman. They did not overthrow our power to govern themselves and their ernment that acts as a go-between. constitutionally limited form of govern­ resources. The rates at which electrical Public housing and TVA are only two ment by force and violence, but in con­ power can be sold is dicta ted by TVA. examples of the New Deal Socialist­ junction with the traitors they overthrew They may not buy power elsewhere as Communist legislation still on our stat­ the Republic by adopting socialism and private companies are excluded from the ute books. Other such legislation pro­ communism under the slogans of democ­ l'VA reservation. They are dependent vides for Government subsidies, controls racy and freedom. on the Federal dole and must abide by and regimentation extending over more I should like to quote briefly from any rules that Congress may promul­ than 100 aspects of the Nation's economic President Eisenhower upon the subject: gate. That is socialism-communism in life. ''Because the kind of dictatorship under these United States. The principle of a constitutional gov­ which we may fall today is not that Another example of the New Deal ernment limited to the legal and moral brought of! by means of a coup d'etat and Communist legislation is public housing. functions of government has been em­ a suddenly seized power by using the The Communists live in the public hous­ bodied in several proposed constitutional Army and Navy and guns to put us all in ing units and form their cells there to amendments now pending before the a straitjacket. There is a kind of dic­ agitate for more communism. Here is House of Representatives and on which tatorship that can come about through a what the Soviet constitution of 1936, as hearings will soon be scheduled. Every creeping paralysis of thought, readiness amended, has to say about public hous­ patriot of the Republic should interest to accept paternalistic measures from the ing: himself in the disposition of these Government, and those paternalistic ART. 6. The land • • • and the bulk of amendments and inform the Congress measures are accompanied by a surren­ the dwelling houses in the cities and indus­ that the Nation supports the principle der of our own responsibility." trial localities, are State property, that is, of these amendments. So the real challenge that the Ameri­ belong to the whole p€Ople. A fundamental principle is involved can people now face is not whether they Ever since 1933 when the United States in this battle against socialism. That shall be able to rout out, put in jail, or to got into the public housing business it principle is that individuals exercising expose Communists. It is true that the has been alleged over and over again all their natural rights and powers are Socialists-Communists did great harm to that if you improve the housing con­ the only true source of houses, food, the Nation by the laws they drafted or ditions of the people you improve their power-the source of all moral improve­ helped draft for a rubberstamp Con­ morals. That has never been proved, ment with God's help-and that govern­ gress to pass and the decisions they and actually the contrary is true. Judge ment must be strictly limited to the pro­ helped make in our foreign affairs and Francis J. McCabe, of the Rhode Island tection of that source. particularly in the conduct of war. juvenile court, has said: Either we believe that with all our What should really frighten us is that Public housing projects don't wipe out hearts or we believe the exact opposite we are now actually appropriating bil­ juvenile and adult delinquency by eliminat­ with all our hearts, that government is lions of dollars to carry out the policies ing slums. Delinquents are more plentiful the source, the instrument of force over of the Communists and ·continue to al­ in the projects because they move into the men by which it gets or takes from them low their laws to remain on our statute projects from scattered areas and thereby houses, food, power, and so forth. books. become more concentrated. Surely we are not going to fall down and Communism as defined in Webster's . Judge McCabe's observations are borne worship again that old satanic concept International Dictionary is: "A system out by statistics proved by the chief of that by the use of political power and of social organization in which goods are police of Los Angeles. In that city police compulsion we can bring about the good held in common, the opposite of the sys­ calls per thousand population in a pri­ life of our people. ·Let us reject it ut­ tem of private property." vately owned project were 0.08 percent. terly as the concept was rejected nearly The New Deal Communist's pet proj­ In four big housing projects the calls 2,000 years ago in the great temptation ect, TVA fits into that definition exactly. per thousand were 13.75 percent. There on the mountaintop. TVA is owned and operated by the United was 96 percent more crime in permanent States Government; that is to say, TVA public housing projects in Los Angeles is a communal or public-owned property than in the slums themselves and more acquired by taking private property than 1,000 percent more crime in public Tribute to Devotion of Civil Air Patrol amounting to $1,788 million, mostly from housing projects than in the privately Pilots the people of 41 States for the alleged. owned low-rent housing projects in the benefit of the people of 7 other States. same city. EXTENSION OF REMARKS Although many millions of dollars are The people do not like such houses as OF poured into this project each year, the is proved by the high vacancy rates in project is a failure. As we could expect, projects in eight localities scattered HON. PAUL W. SHAFER it has failed to better the lot of the peo­ throughout the Nation. OF MICHIGAN ple. They sufieJ; from a severe shortage Thus we find in the United States the IN THE HOUSE OF REPRESENTATIVES of power. The State of Tennessee ·has consequences of communism in the areas incurred a serious decline in productivity. adopting it, that we find in Russia, Eng­ Wednesday, April 7, 1954 The United States Chamber of Com­ land, France, and other countries, viz, a !4r.S~. !4r. Speaker, through­ merce has compiled a study of the eco­ paralysis of building houses for rent with out the Nation many thousands of vol­ nomic status of Tennessee in relation to private capital, a lowering of stand· unteer pilots are organized in the Civil 1954 CONGRESSIONAL RECORD- HOUSE 4851 Air Patrol to render emergency peace­ ment guaranty of principal and interest is lion in loans receivable, $23,500,000 in cash, time and wartime service to fellow :flyers being used only by certain banking corpora­ and $43,400,000 in Government securities. and to the public-service rendered with­ tions in the farm credit and housing credit 6. The Federal home-loan banks perform fields: The Federal land banks, the Federal the same function in general for their mem­ out compensation. intermediate credit banks, the central bank bers (building and loan, savings and loan, Last week two officers of the Baltimore for cooperatives, and the Federal home-loan and homestead associations; savings and co­ CAP squadron lost their lives in a plane banks. operative banks; insurance companies) as crash while on a search mission for a 3. The Federal land banks were created the Federal Reserve System perfonns for missing Air Force jet T-33 near Chesa­ with a capital stock of $125 million_ paid in commercial banks and the Federal land peake Bay. by the United States, plus capital stock pur­ banks for farm financing. These Federal The officers who thus gave "the last chased by all borrowers from such banks. home-loan banks originally had a capital There were also very substantial Government of $124,741,000 paid in by the United States full measure of devotion" to their fellow contributions to paid-in surplus (amounting and additional capital subscribed by all men were the Rev. Edward G. Conrad, to $141 million as of June 30, 1943). The member institutions. As of September 30, pastor of the Aisquith Presbyterian bonds which have been issued to the public 1953, the United States capital contribution Church and a CAP squadron chaplain, without Government guaranty are the joint had been repaid, and there was a capital and Capt. Anthony Synodinos. In this and several obligations of all 12 land banks stock of $360 million, all privately owned. Holy Week, when we are wont to give and are not revenue bonds but are unquali­ These banks have issued to the public, with­ thought to the -meaning of sacrifice fied commitments secured by farm first mort­ out Government guaranty, consolidated de­ "even unto death," it is appropriate that gages. The mortgage loans made by the bentures which are the joint and several ob­ banks are always at a higher interest rate ligations of all the banks. The law under we pause in tribute to these two men. than that paid by the banks on the preced­ which they have been issued provides that The hazard these men took in line of ing issue of bonds, the spread enabling the no such debentures shall be issued if any duty, and the sacrifice they made, attests banks to operate. This is a straight, long­ of the assets are subject to any pledge or eloquently to the importance of this term mortgage banking operation, the bonds lien; and provides further that the deben­ agency of service and mercy and to the being marketed when funds are needed by tures are not to be issued in excess of the hazardous and rigorous duties which the banks to meet the demands for first amount of the obligations of member insti­ membership in the Civil Air Patrol in­ mortgage loans. Eight hundred and seven­ tutions held at that time and secured by ty-five million dollars of bonds were out­ home mortgages or obligations of, or guar­ volves. standing on October 31, 1953, of which at anteed by, the United States. There were It will not be amiss to bear these facts least $675 million were in the hands of com­ $349 million of such debentures outstand­ in mind when reasonable and proper re­ mercial and other banks and insurance ing on September 30, 1953, in the hands of quests for congressional support are re­ companies. commercial banks, insurance companies, etc. ceived in behalf of this civilian agency. 4. The Federal intermediate credit banks At that time the banks had $797 million in were created with a capitaf stock of $60 mil­ loans receivable, $397 million in Government lion paid in by the United States, plus a securities and $30,000 in cash. It also ap­ $40-million revolving fund available for fur­ pears that the Secretary of the Treasury is ther capital-stock subscriptions and paid-in authorized to purchase the obligations of Brownson Proposal Is Without Precedent surplus (the latter amounting to $5,600,000 these banks, at his discretion, up to $1 bil­ on September 30, 1953) . These banks are lion outstanding at any one time, but no EXTENSION OF REMARKS engaged in discounting agricultural and live­ use has had to be made of this authority. OF stock paper for production credit associa­ Here again we find a straight banking oper­ tions, banks for cooperatives, commercial ation, to provide a reservoir of long- and HON. GLENN R. DAVIS banks, and other institutions, and making short-term credit in the home financing field. loans to such institutions upon the pledge 7. The foregoing corporations which have OF WISCONSIN of collateral. These banks have sold in the raised money by selling nonguaranteed bonds IN THE HOUSE OF REPRESENTATIVES open market, without Government guaranty, or debentures in the open market have all Wednesday, April 7, 1954 collateral trust debentures, which are the been engaged in banking operat ions; none joint and several obligations of all 12 banks, of the financing so accomplished was for a Mr. DAVIS of Wisconsin. Mr. Speak­ and which are secured by cash, Government construction program; in all cases the cor­ er, the proposal of my able colleague the bonds, Federal farm-mortgage bonds, or the porations had substantial capital and; or gentleman from Indiana [Mr. BROWN­ agricultural and livestock paper discounted paid-in surplus contributions from the SON], to finance United States partici­ by the banks, or secured paper representing United States and also, in 3 out of the 4 loans made by the banks to other financing cases, from their borrowers or member in­ pation in the St. Lawrence Seaway by institutions. The debentures are thus not stitutions (anrt in the fourth case a sub­ revenue bond issues is most unusual and revenue commitments, but are unqualified stantial revolving fund for additional capital without precedent in United States Gov­ commitments secured by collateral. This contributions, if needed); and in all cases ernment corporattals. In no instance again is a straight banking operation in the securities issued and sold in the open has the Federal Government ever pro­ the farm-credit field, the debentures being market were unqualified commitments se­ posed to finance a Government policy, issued monthly according to the banks' cured by banking-type collateral, not reve­ particularly one designated as necessary needs. There were $775 million of deben­ nue bonds dependent solely on the earnings tures outstanding on September 30, 1953. of the corporation. for national security, with revenue bonds The banks had $793,500,000 of loans receiv­ 8. Inland Waterways Corporation was over which private bankers will have a able, $32,400,000 of cash, and $62 million in created by Federal legislation to operate the veto power. Government securities. Government-owned waterways system. In all cases that we have studied the 5. The Central Bank for Cooperatives has There was capital stock of $15 million con­ Federal Government has either put large capital furnished by the United States and tributed by the United States, plus $12,300,- amounts of equity capital into Govern­ also by all borrowers from this corporation 000 of paid-in surplus. The Corporation ment corporations, plus either Govern­ (1 central bank, 12 district banks). The could issue nonguaranteed notes up to 25 ment guaranteed bonds or bonds backed total capital stock on September 30, 1953, percent of the value of its assets but has was $197 million, of which $170,500,000 had apparently never done so. None were out­ by substantial assets. This is borne out been paid in by the United States and standing either on June 30, 1943 or on by a study of Government corporations $18,400,000 by borrowers. The debentures September 30, 1953. which I submit for the RECORD for the insured by the Central Bank must be secure~ 9. Panama Canal Company (formerly the benefit of my colleagues since this matter by collateral at least equal to the amount Panama Railroad Company) was originally will be debated on the :floor tomorrow: of outstanding debentures, the collateral to created in 1849 as a privately owned corpora­ consist of cash, direct obligations of the tion under New York law. Since 1905 it has MEMORANDUM ON GOVERNMENT CORPORATIONS been wholly owned by the United States CREATED BY ACT OF CONGRESS United States, or notes, etc., discounted or representing loans made. Here again the de­ Government through the purchase of the 1. Not one of the Government corpora­ bentures are not revenue commitments, but capital stock of the corporation. In 1948 it tions created by Congress and functioning are unqualified commitments secured by was reincorporated under a Federal charter, today has been made solely dependent upon banking collateral. Here again there is a with no capital stock. It has, however, had the issuance of nonguaranteed bonds to the straight banking operation involving loans $268 million of paid-in surplus from the Gov­ public for the financing of its activities. by the Central Bank to cooperatives of na­ ernment. The former Panama Canal Agency Furthermore, so far as has been determined, (now named the Canal Zone Government) not one Government corporation created by tional or broad regional scope and to its dis­ operated and maintained the canal until Congress in the 20th century history of such trict banks, plus the discounting of paper. July 1, 1951, when the Panama Canal Com­ legislation has ever been made solely de­ On September 30, 1953, the debentures in the pany took over. Its operations were financed pendent on such bond or note issues for the hands of private buyers amounted to $119 by appropriations, since tolls, taxes, etc., went funds needed to finance its activities. million, and there were $12 million in the into the United States Treasury as miscel:. 2. At the present time the issuance of hands of other Government corporations. Ianeous receipts. There has never been any bonds or notes to the public without Govern- ~e group ot banks had. assets ot f333 mil- public borrowing by these organizations, but; 4852 CONGRESSIONAL RECORD-SENATE Apn:r 8 there lias been some borrowing · from the obligations in the hands·ot the Treasury on (h) Federal Prtson· Industries,· Inc.--<:ap­ · Treasury by the Panama Railroad Company September 30, 1953. ital supplied by appropriations-no bor­ and its successor, Panama Canal Company (c) Federal Farm Mortgage Corporation­ rowing. ($5,900,000 on September 30, 1953). Of capital stock subscribed by United States­ (i) Public Housing Administration--{)api­ course, the canal itself was built by the sale the Corporation may borrow, with approval tal .stock and paid-in surplus provided by of United States Government bonds. of the Secretary of the Treasury, on bonds the U~ited States, $188 million as of Septem­ 10. In the case of the Tennessee Valley Au­ guaranteed by the United States-$400,000 of ber 30, 1953--<:ontributions to the States, thority, there has been no capital stock but obiigatlons in private hands on September etc., provided for by appropriations and allo­ the United States has contributed a paid-in 30, 1953. cat ions from other United St ates agencies surplus of $45 million and there have been (d) Federal National Mortgage Associa­ (amounting to $190 million as of September expended appropriations of over $1 ,500,000,- tion--<:apital and paid-in surplus of $21 30, 1953)-authorized at one time to issue 000. Any bonds to be issued by TVA were million contributed by the United States-­ bonds, etc., guaranteed by the United States to be issued on the credit of or guaranteed borrowing was originally from RFC, but now but now borrows from the Treasury ($619 by the United States or sold to the Treasury. is accomplished through llliFA, which bor­ million as of September 30, 1953). There were $29 million in the hands of the rows from the Treasury-nearly $2,500,000,- (j) Institute of Inter-American Affairs­ Treasury on September 30, 1953, and none 000 of such obligations outstanding on no capital stock but paid-in surplus of $12,- elsewhere. September 30, 1953. 500,000 from the United States-also other 11. Other currently functioning corpora­ (e) Federal Crop Insurance Corporation­ funds from appropriations either direct or tions created by Federal legislation are: capital of $27 million paid in by the United by allocation from other Government agen­ (a) Commodity Credit Corporation­ States-also over $77 million of expended cies (amounting to $116 million as of Sep­ capital of $100 million paid in by United appropriations-no borrowings. tember 30, 1953) -no borrowing power under States and maintained by successive appro­ (f) Federal Deposit Insurance Corpora­ the Federal charter of 1947. priations--Corporation, with approval of Sec­ tion--<:apital of $289 million-$150 million (k) Production Credit Corporations (12)­ retary of Treasury, can issue bonds, notes, from the United States plus $139 million capital of $120 million supplied by the United States-no borrowing authority. etc., but any sold in the open market would from the 12 Federal Reserve banks (all such investment having been repaid by 1948)­ (1) Reconstruction Finance Corporation­ be guaranteed by the United States-on original capital stock of $500 million sub­ September 30, 1953, there were nearly $4 authorized to borrow from the Treasury, but scribed by the United States-borrowings billion of the Corporation's obligations in the has not done so. from the Treasury. hands of the Treasury and none elsewhere. (g) Federal Savings and Loan Insurance (m) Virgin Island Corporation-paid-in (b) Export-Import Bank of Washington­ Corporation--<:apital of $100 million origi­ surplus and expended appropriations of $6,- capital of $1 billion contributed by United nally, $77 million as of September 30, 1953, 300,000 on September 30, 1953-operates on States--borrowing was originally from RFC, all owned by the United States-borrowing, appropriations by Congress made to a revolv­ now from the Treasury---$1,430,000,000 of if any, is from the Treasury. ing fund-no obligations issued to the public.

SENATE MESSAGE FRO:M: THE HOUSE­ ORDER FOR TRANSACTION OF ENROLLED BILLS SIGNED ROUTU~E BUSINESS THURSDAY, APRIL 8, 1954 A message from the House of Repre­ Mr. KNOWLAND. Mr. President, I sentatives, by Mr. Chaffee, one of its ask unanimous consent that immediately