29732 EXTENSIONS OF REMARKS August 21, 1974 EXTENSIONS OF REMARKS OPENING OF THE WILLIAM SAND­ Ted Oswalt, Harry Martin, Michael Tay­ THE HOUSE JUDICIARY COMMITTEE ERS MEMORIAL RANGE AND PO­ lor, John Masterson, and Bruce Airhart. AND IMPEACHMENT LICE TRAINING AREA The range and training ground is in an abandoned gravel pit 40 feet below road level which has been partially HON. LEE H. HAMILTON HON. EARL F. LANDGREBE leveled off for its new use. On the OF INDIANA OF INDIANA grounds are 20 firing points with markers IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES at 7, 25, 50, and 100 yards, a lookout Tuesday, August 20, 1974 Tuesday, August 20, 1974 tower and gatehouse. Future plans in­ clude a riot training area, a Marine Mr. HAMILTON. Mr. Speaker, under Mr. LANDGREBE. Mr. Speaker, police Corps obstacle course, paved road, office the leave to extend my remarks in the apprehending a fleeing armed criminal facilities, and 30 more firing points. RECORD, I include my Washington Report must make a dread decision: Whether to ''This old gravel pit is ideal for a firing entitled "The House Judiciary Commit­ shoot the dangerous criminal who may range," explained Sgt. Tom Taylor, who tee," which was written prior to Presi­ jeopardize the life of anyone in his way was instrumental in creating the training dent Nixon's resignation: but risk injury to innocent people from ground. "Stray bullets bury themselves THE HOUSE JUDICIARY COMMITrEE AND stray police bullets, or whether to let the into the banks and it is located so the IMPEACHMENT criminal flee. extra noise and traffic we generate won't For the first time since 1868, and only the Fortunately, police rarely need to make second time in American history, a commit­ bother anyone." tee of the House of Representatives has rec­ that sort of decision. However, when Amazingly enough, in these days of ommended the impeachment of the Presi­ that dread moment comes, the five police increasing demands on tax dollars, the dent. This historic action of the House Ju­ agencies serving the greater Lafayette only cost to the taxpayer for this well­ diciary Committee captivated the attention area will be better trained to handle the planned facility has been $1 per year to of Americans as they watched the proceed­ situation. lease the 10% acres. The other costs ings on nationwide television. In September 1969, the Lafayette, West were assumed through donations of The consensus in Washington ls tha.t the Lafayette, Purdue, Tippecanoe County, House Judiciary Committee's six days of money, labor, and material from a large meetings were marked by the dignity and and Indiana State police departments number of local businesses and indi.. responsibility that the occasion demanded. began pooling their ingenuity and re­ vi duals. There were mistakes, of course, but, all in sources to build a firing range-training Sergeant Taylor explained: all, the Judiciary Committee's performance grounds area for their private use. Sgt. All this would not be possible without was reassuring no matter how one felt about Tom Taylor, of the Lafayette police the help of interested individuals and busi­ the final result. The Committee helped re­ force spearheaded a group of men who nesses in the community. store confidence in the politica.l process, made up the local police pistol combat especially the United States Congress, and team who decided to find out and build a Sergeant Taylor went on to say that deepened our understanding of the Constitu­ new police firing and training range. the reason that the group had been so tion. successful in raising public support was The members of the Judiciary Committee After raising over $84,000 in materials spoke with intelligence, debated with spirit, the manpower from local businessmen that he had explained to them, ''how demons,trated their anguish and conducted and others interested in the project, the everyone in this community will benefit themselves sensibly and conscientiously. facility was opened on July 27. from a better trained police force." He These members of diverse views and person­ The William Sanders Memorial Range said that the need for a better trained a.lities rose splendidly to the high occasion and Police Training Area was dedicated police force was increasing: and proved that the House can act respon­ Like everywhere else in the country, armed sibly as it tackles perhaps the most difficult on July 27 in a ceremony attended by the assignment in the practice of self-govern­ mayors of Lafayette, West Lafayette, and robberies, drug traffic and other crimes are up. I think that the fa.ct tha.t our a.rea. ment. The televised sessions of the Judiciary chiefs of police from the five agencies ls sandwiched between Chica.go a.nd Indian­ Committee served to contradict the charges who helped build the facility. The shot a.polls, now that Interstate 65 is opened, has that the committee is a kangaroo court or a which opened the firing range was fired a big influence on crime in this area. lynching party. by Mrs. William Sanders, widow of the The performance of individual members of benefactor who agreed to lease the The firing range and training ground the Committee was impressive. They were ground to the policy group for $1 a year. will enable the local police forces to be articulate, low-key, moderate, and frequently trained more adequately than in the past. eloquent. They were able men and women, It was during this ceremony that I pre­ not engaged in a partisan plot, but obviously sented the range committee with a U.S. Sergeant Taylor and other members struggling with a.n unpleasant, even sa.d, flag that had flown over the U.S. Capitol of the local police pistol team spear­ duty. in the name of the training area. headed the movement to establish the The Committee debate, which gave Amer­ The range and training area will be new range and training area. The team icans an extraordinary view of a congres­ used by the five major law enforcement from a relatively small community like sional committee at work, was alternately agencies responsible for the joint ven­ Lafayette has competed successfully inspiring and tiresome. It illustrated the against the top pistol teams in the coun­ characteristic wrangling of the legislative ture: Lafayette, West Lafayette, Purdue, process over words, procedures and politics. and Tippecanoe County police depart­ try. They placed first in the White After the high-blown rhetoric of each Com­ ments and the Indiana State Police. House Invitational Combat Match and mittee member's opening statement, the Other agencies that will make use of the have gone on to win matches in Boston; Committee debate refined the issue of im­ range are the FBI, the Indiana Excise Winter Haven, Florida; Columbus, Ohio; peachment. The charges relating to im­ Department, the State department of and class awards in the National poundment of funds, the secret bombing of natural resources--conservation de­ Pistol Championships. After the group Cambodia., campaign funds, tax deficiencies, lost their old training ground Sergeant and improvements on Sa.n Clemente faded, partment---Norfolk and Western and and the issues of abuse of presidentia.l power L. & N. Railroad detectives and police re­ Taylor and Thomas "Sherlock Holmes" and the coverup of Watergate misconduct serve units. A total of 300 officers are ex­ Sell decided to set up a new range. At emerged as the crucial issues. The articles of pected to use the range. The range is that time there were no academies for impeachment, as finally adopted by the Judi­ administered by a committee of 10 with new policemen to attend and officers ciary Committee, contain the central 2 members from each of the five major were given little or no training in the use charges. of guns, The result of their efforts is the Broad areas of agreement surfaced during agencies. the Committee debate. With a few excep­ Sgt. Thomas M. Taylor, Lafayette Po­ new range open for the use of policemen tions, the members accepted the standard lice Department is president of the com­ from all local departments. that only "grave offenses" of a kind "defi­ mittee. Others include: James Sell, Ward These men are to be commended on nitely incompatible" with the Constitution, Frey, Donald Rutter, Larry Bateman, their initiative. whether _criminal or not, would Justify the August 21, 1974 EXTENSIONS OF REMARKS 29733 · removal of a President. The Committee mem­ as significantly assist in reducing the versity of California at Davis, has been bers also agreed that the evidence must be outrageous inflationary spiral we live in a strong advocate of this legislation in "clear and convincing,'' a tougher standard of proof than "probable cause,'' but not so today, under the belief that not having order to more effectively carry out an­ rigid as a jury verdict in a criminal case that the program at all will be more of a help imal research. The measure is not su­ requires an individual to be found guilty in alleviating the taxpayer's :financial perfluous, but will add greatly to the im­ "beyond all reasonable doubt." burdens. proved quality of our animal and sea Moving through unchartered territory, I, therefore, am disappointed and op­ life production. members of the Committee divided on funda­ posed to President Ford's recent veto of A basic economic principle that we mental questions. What is the definition of H.R. 11873, the act authorizing the Sec­ should keep in mind establishing Fed­ "high crimes and misdemeanors," specified retary of Agriculture to encourage and eral spending priorities, under an infla­ in the Constitution as the basis of impeach­ ment? Did the evidence show that the Presi­ assist States in carrying out programs tionary period, is to invest in those areas dent had committed an impeachable offense? of animal health research. I am con­ that can have a comparable economic Will removing President Nixon from office be cerned that our President's fight against return to the public. Such a prudent pol­ good or bad for the country? The opponents inflation may be more detrimental to icy can help to avoid large displacements of impeachment demanded specific facts to our well-being and, in fact, his priori­ of public funds which have contributed support the charges, and the pro-impeach­ ties may add to, rather than reduce, the to a higher cost of living and an in­ ment Congressmen, after a slow initial re­ cost of living rate. creased Government deficit. The animal sponse, elaborated at length the facts they For the month of July, food prices in­ health research bill would be one such believe support impeachment. Opponents of economically sound expenditure of funds, impeachment, seeking to divide the propo­ creased at the almost unprecedented nents, complained about the lack of direct rate of 3.4 percent. Promises of reducing which I would consider, as a member of evidence against the President and the piling inflation from the infamous double digit the House Budget Committee and an of "inference upon inference" to build a case rate of 12 to 14 percent, to 6 to 8 percent ardent critic of the Federal deficit, to be against the President. Pro-impeachment are now pale and disappear in the lig~t both an appropriate and necessary meas­ Conunittee members had avoided specific of the economic reality we face. Our Na­ ure for the Congress to adopt. points of evidence in their early statements, tion's food supply and that of the world's One bill headed for the President's but as the debate wore on they elaborated desk that is not economically sound, and specific points to support impeachment. is diminishing rapidly. Drought is not Working to unify their forces, they reworded only a problem isolated in the vastness calls for an expenditure of funds much the articles of impeachment to broaden sup­ of Africa, but in our own Midwest. It is greater than the animal health research port for them. anticipated that beef prices will sky­ bill, is the Defense appropria.tion bill. It is important that Americans have re­ rocket in the next few months because One program under the latter's $80 bil­ spect for the impeachment proceedings. of the shortness of grain due to the lion budget is an expenditure of $130 Through television they can judge for them­ drought. million for the Safeguard phase-down selves whether these proceedings are being Many educational and research insti­ program. Because of the SALT agree­ conducted seriously and fairly. Many Con­ ments and the outdateness of the sys­ gressmen have been fearful of televising any tutions in our country have made price­ part of the impeachment proceedings, but less contributions in insuring that we tem, we have approved over three times after the televising of the Committee pro­ are able to live healthier, improve our as much money as the animal health re­ ceedings this past week, most Congressmen food production capabilities, and enjoy search programs would spend, on a sys­ now recognize that television performed an an abundance of other goods and serv­ tem which we will be scrapping. It is a important civic function, and it is reasonable ices unprecedented in the world. Now is gross expenditure of the taxpayers' funds to expect the House to vote soon to have the not the time, howaver, to curb efforts to a commodity which will never be used. full House impeachment proceedings tele­ contributing to the improvement of our I would like to encourage the Presi­ vised. Television can assure that the greatest national health and welfare. It is, in dent to do everything in his power to see possible number of Americans understand that such an inflationary and useless ex­ the how and why of the impeachment pro­ fact, of the utmost urgency that we ceedings. invest in all available means to improve penditure of funds is not part of the final As a result of the Committee action, the the quality and quantity of food prod­ Defense appropriation bill. It will truly momentum toward impeachment has signifi­ ucts in order to reduce inflation at home be a significant step to combat our Na­ cantly strengthened. The minority leader has and meaningfully contribute to the tion's No. 1 problem, inflation. urged the President to take his case on na­ world's needs as well. - I would like to impress upon the Con­ tional television as the only step that can In the President's veto message, Mr. gress to reassert its nearly unanimous save him. Officially, close associates of the Ford cited that the $47 million would support position for the Animal Health President were expressing confidence that the Research Act. As a needed health mes.s­ President would avoid impeachment, but the establish programs which would overlap reality of the events of the week was breaking those already operating in the areas of ure and as an effective tool to :fight in­ through to them, and they were obviously fish and shellfish control. In closer ex­ flation, by reducing food prices, the act deeply concerned about the President's fu­ amination of the bill, however, fish and is worthy of our continued support and ture. The leaders of the Senate began gear­ shellfish programs are minor portions of implementation as law. ing up for the trial of the President and what the bill would accomplish. Of more Through these difficult economic times, guesses about the margin of the vote by critical importance is research into such let us not abandon worthwhile programs which the House will approve impeachment high cost areas as livestock and poultry, at the expense of expediency or short­ kept increasing. and health research for greater animal sightedness. When we think of our na­ yield and for the health potection of tional defense, let us include, predom­ humans. inantly, our national health and welfare. ANIMAL HEALTH RESEARCH-AN There exist no substantial programs to ABUSE OF DISCRETION deal with animal health care at this time. I would like to stress here, that animal disease is in no small part re­ "PASMA FUSION-OPPOSED RING sponsible for the 25-percent increase in STORAQE"-LETTER TO THE HON. ROBERT L. LEGGETT EDITOR OF CALIFORNIA food prices last year and for a compa­ IN THE HOUSE OF REPRESENTATIVES rable increase for this year. The esti­ malted loss of livestock and poultry due to Tuesday, August 20, 1974 animal disease alone is $3 billion annu­ HON. JOEL T. BROYHILL OF VIRGINIA Mr. LEGGETT. Mr. Speaker, there is ally or 10 percent of the total value of no question that inflation is our and the U.S. livestock. According to Doctors Leo IN THE HOUSE OF REPRESENTATIVES world's No. 1 problem. With a problem Bustao and James Henson of Washing­ Wednesday, August 21, 1974 of such magnitude, however, we must ton State University, animal disease and Mr. BROYHILL of Virginia. Mr. remain level-headed in pursuing other parasite problems have not appreciably Speaker, at the request of Mr. John W. national burdens. We must not sacrifice improved in the last 20 years. Ecklin of Arlington, Va., and under leave those programs that can contribute to In addition, one of the most reknown to extend my remarks, I would like to ow· national health and welfare as well institutions of animal research, the Uni- insert the following letter to the editor, 29734 EXTENSIONS OF REMARKS August 21, 1974 regarding "Pasma Fusion-Opposed Ring It is an occasion when men and women BRIEFING BY MORTON I. SOSLAND Storage," into the RECORD, so that all throughout the free world recommit atomic researchers can be informed~ themselves to the struggle of the Czechs ARLINGTON, VA., and Slovaks for religious, cultural, and HON. THOMAS F. EAGLETON J u ly 24, 1974. political freedom. OF MISSOURI Mr. JOHN JACOBS, As one who is privileged to represent IN THE SENATE OF THE UNITED STATES Editor, the Rosslyn R eview, thousands of Pennsylvanians of Czech Wednesday, August 21, 1974 Arlington, Va. and Slovak descent, who over the Letter to the Editor: Mr. EAGLETON. Mr. President, I was Up to the present tune fusion resear9h may generations have made great contribu­ be too intimately associated with plasma as tions to our Nation, I am proud to lend privileged today to host a luncheon for there is no proof we require electrons for my voice to those commemorating the purpose of hearing from Morton I. fusion. Plasma-consists entirely of elec­ August 21. Sosland of Kansas City, publisher of the trically charged particles, i.e., electrons or The memory of the Soviet Day of Milling & Baking News and one of the nuclei. Pasma---dense, uniformly high speed Shame lives in the hearts of freedom­ most important agrarian economists in positive nuclei. (No electrons.) loving people. our Nation. Several of my fellow Sena­ Electrons in a. plasma a.re 1800 times tors had the privilege of hearing Morton lighter than even the lightest nuclei and hence easily attain relativistic speeds while Sosland. His knowledge is so impressive the nuclei still have very low energies or A LIFE OF SERVICE that I would like to have his remarks speeds. Electrons and nuclei both have equal printed in the RECORD so that all Sena­ but opposite charges even though there is tors can have the benefit of his thoughts. an 1800 to 1 difference in their mass. As a HON. FRANK HORTON In addition, to further elaborate on Mr. result the electrons get out of step with the OF NEW YORK Sosland's qualifications, I ask unanimous nuclei in our various containment schemes. IN THE HOUSE OF REPRESENTATIVES consent that following his remarks, an This causes plasma instabllities as the elec­ Wednesday, August 21, 1974 article from the Wall Street Journal of trons madly dart about out of step with the Wednesday, December 12, 1973, be print­ nuclei and the electrons high speed and low Mr. HORTON. Mr. Speaker, in this mass makes them difficult to detect let alone ed in the RECORD. correct and still contain the nuclei. period of troubled times, when so many There being no objection, the mate­ Besides these containment instabilities people seem concerned only with them­ rial was ordered to be printed in the why get electrons out of our plasma.? Be­ selves, it is refreshing to witness what RECORD, as follows: cause a stream or beam of moving charged can be accomplished by one person's DEMOCRATIC SENATORS' MIDWEST CAUCUS particles tend to pinch themselves. This complete unselfishness. (By Morton I. Sosland) pinch effect works best when there are no An outstanding example is the work oppositely charged particles and when all of Mrs. Mary Pulvino Cariola of Roch­ After two years of rapidly moving grain like charged particles travel at nearly the markets, gradually broadening public aware­ same speeds. ester, N.Y., who saw a need and proceed­ ness of how the world :food si.tuation has For fusion, nuclei need only get enough ed to fill that need. Even at an early changed and wildly conflicting economic and speed so their momentum overcomes their age, she acted as interpreter for Italian­ political assessments of what happened and mutual repulsion barrier and they fuse. This speaking parents in a neighborhood what may lie a.head, many of us most inti­ occurs at 1 billion degrees centigrade or settlement house. She spent 18 years re­ mately involved have become alarmed over .1 MeV. Think of it, a power supply with only habilitating families with the Society for the institutionalization of errors in judg­ four times the voltage of the high voltage the Prevention of Cruelty to Children. ment. Heard with increasing frequency are supply in a TV set can accelerate nuclei to statements that are not designed to fill the an equivalent temperature of 1 billion de­ She was one of the founders of the real need of expla.ining to the public how the grees centigrade. local unit of the Cerebral Palsy Associa­ world food picture has changed, why it A close evaluation of the majority of ac­ tion where, while holding down adminis­ changed and where it is likely to go. Man y celerators reveals a very iinportant fact--the trative positions, she was also serving people still do not understand why the cur­ nuclei are accelerated for .1 percent of the as a volunteer social worker until funds rent world scene is so much different from time and for the remaining 99.9 percent of were available to hire a paid social anything the pa.st prepared us for. Many of the time these nuclei simply coast in a the opinions expressed seem to be designed vacuum. This coasting ability deserves much worker. either to explain away serious mistakes in more attention and is of primal significance In 1949, Mrs. Cariola noticed there was judgment by government or to force moves in since it is difficult to generate a beam of no training available for those who suf­ new directions equally without merit. .lMeV nuclei with sufficient density to pro­ fered the double handicap of mental re­ The most bothersome assumptions for me vide enough collisions for a fusion trigger. tardation and physical disability. Al­ concern three issues-(!) this country's and Using 2 hollow donut shaped storage rings though most people felt these special the world's ability to increase :food produc­ 2 ft. in diameter we can store .lMeV nuclei children could not profit from training, tion ad infinitum from current levels; (2) by coasting until we get enough density for is the role of price in the marketplace, and (3) a trigger. We can then direct the nuclei from she founded what now the Day Care judgment as to what constitutes something one ring into the other where the now dense Training Center for Handicapped Chil­ called the world market. A number of per­ nuclei bore through each other from opposite dren. Beginning with a class of eight in ceptions a.re being made in reference to these directions and trigger a. sustained reaction. one borrowed room, it has since served three points that are basically wrong. The ( (It is possible to have 2 storage rings in more than 700 children, many of whom specter thus is raised of policy decisions t hat the same donut with nuclei travelling in have gone on to special classes within may accentuate wha.t already is a threaten­ opposite directions. By merely decreasing the area's public school system. ing situation. magnetic strength or electrical voltage, the It might be advisable a.t this point to spell opposite beams then travel through the same Because of public interest stimulated out my own credentials for discussing these space and bore through each other.) We through the Day Care Training Center, matters. In early February of 1973, I made a could split 1 beam or have 2 fuels in 2 there are now recreation programs for talk in Minneapolis, which in turn became beams.) teenagers and young adults, as well as the lead article in the financial section of t h e Not only is very little power required to a mental retardation clinic, among other Sunday New York Times, declaring our be­ generate .lMeV nuclei but very little power programs. lief that "the days of cheap food may be (magnetic or electric) is required to contain As a result of her campaigning for over." The central view was that the pasma. There is nothing sacred about elec­ U.S.S.R.'s massive purchases of food had sig­ trons in our plasma. legislation to help the mentally retarded, nalled a change in the world food supply­ Sincerely, public school classes are now conducted demand situation-note I say "signalled," JOHN W. ECKLIN. for the benefit of the trainable retarded. not "caused"-that meant that no longer Although Mrs. Cariola was forced to would it be possible for consumers to buy leave school at the age of 13 because of food at levels lower than the law of supply ANNIVERSARY OF CZECH INVASION financial difficulties, she later finished and demand alone would dictate. The point high school through attendance of eve­ of that address was that food prices for a number of decades prior to mid 1972 had HON. RICHARD S. SCHWEIKER ning classes and private tutoring. She been lower than otherwise would have been OP PENNSYLVANIA went on to take supplementary courses the case without government farm price sup­ IN THE SENATE OF THE UNITED STATES which enabled her to be of even greater port programs, that these programs them­ aid to those whom she served. selves were more of a subsidy to consumers Wednesday, August 21, 1974 than to farmers and that the level of demand It is with gratification of Mrs. Cariola's had increased around the world to the point Mr. SCHWEIKER. Mr. President, over 50 years of service to others, that where the prices that prevailed prior to mid August 21 marks the nixth anniversary of I bring her efforts to the attention of 1972 would probably never be experienced the invasion of Czechoslovakia. my colleagues. again. August 21, 1974 EXTENSIONS OF REMARKS · ·. 29735 My ability as a price forecaster, looking trends. Along that very line, recent projec­ after three years-1972, 1973 and now 1974- back and rereading that pa.per, is not very tions indicate that world wheat consump­ of crops that fell short of both projections good. In February, 1973, while stating ~hat tion in the 1974.:..75 crop year, will decline and of realistic demand expectations, we prices probably would not return to the -pre- 4 million tons, marking the first setback in have become increasingly concerned that 1972 level, I expressed doubt that the market about two decades. I cannot help but won­ some very serious mistakes in judgment _may then prevailing could be sustained for any der whether it may not be wisest from a have been made concerning our grain crop long period of time. By way of reference, long-term market development point of view potential. using the f.o.b. Gulf price for hard winter to do something in a year with such unusual Along this line, I look at three years of wheat, l~t me point out that that market on supply-demand stresses as this one to declining wheat yields per acre as a very the day of my talk was $90 per met ric ton, mitigate the consumption-deterring effect of bothersome trend. I grow tired of hearing the up what seemed a whooping 50% from the prices. I think all can agree that current situation for the 1972-73, 1973-74 and now July 1972, level or around $60; that the price prices are just not cheap but are downright 1974- 75 crop years explained away by ref­ a year later in February, 1974, had soared to expensive and deleterious to long-term erences to unusually adverse weather. Isn't the all-time high of $245 per ton and that the growth in markets. it about time that someone would say that market is currently around $180 per ton. Another of the perceptions that seriously this is not the case? Is it possible that lim­ While my price forecasting skills leave a bothers me is reflected in a recent statement itations imposed by rainfall may prevent food great deal to be desired, other aspects of by a top U.S. Department of Agriculture production from reaching the optimistic that discussion of the end of the era of official to the effect, "Too many people still levels in many projections? After all, an in­ cheap food have gained major credibility as believe we can insulate ourselves from the creasing number of current studies seem to the months have passed by. One of the main reality of the world market." What disturbs indicate that the world's weather in recent theses of that discussion was thait; the me and must disturb you about this is that years ,has been unusually favorable for crop U.S.S.R. buying was a. very major economic the U.S. is literally the only country in the production and that there really is no re-a:­ event, not just for itself, but much more im­ enth·e world that operates in ·a market that son to anticipate a continuation of these portantly for the shock-wave it sent around is allowed to respond to demand and supply trends for much longer irito the future. the world directly influencing food buying forces practically without any interference A great many things would have to be done policies of nations on every continent. My from government. Let me stress right here differently if goverrimeiits had to face up to thought is that if the Soviet Union, a police and now that the American system is a the possibility that assumptions of ever-up­ state, found it necessary to spend more than beautiful thing to behold, but one wonders ward crop production do not have a strong $1 billion for American food grains, then about its operation in a world where govern­ factual base. After all, the green revolution every other government of the world could ment monopolies to a large extent control in simplest terms was the development of see itself at peril by failing to respond to both purchasing and marketing of domestic strains of wheat and rice that do not lodge their people's food wants. Thus, in the wake grains. It's all well and good to say that when tremendous increases in grain yields of the Soviet buying a whole new standard no one should interfere with the impact of are obtained by massive doses of both fer­ of eating emerged. Also the U.S.S.R.'s mas­ the world market on U.S. food. I think one tilizer and water. All the statistics I have sive purchases coincided with a period when of the things that is most poorly perceived seen confirm the reality of enough of an ex:. income levels in many developing countries by most Americans is the degree of competi­ pansion in world fertilizer production to were just beginning to increase. Every dol­ tion for American food supplies. When a meet future needs, but there is no way that lar of additional income in these nations is housewife goes to the neighborhood super­ the moisture essential can be supplied with­ immediately translated into spending on market, she in effect does not recognize she out the cooperation of nature. food. is bidding not only against millions of other I thus far have purposely refrained from Having perceived more than t wo years ago food buyers in the U.S., but also against some population-food consumption statistics. Such the extent of this significant change in the monolithic governments overseas-some numbe-rs by themselves take on such an attitudes of governments toward food-that whom may be deterred by price and others ominous tone that it becomes almost im­ no longer would bread rationing and food who-may surprise us by their lack of reaction. possible to visualize how the world food shortages be an acceptable alternative in Important to understand here is that in situation is going to evolve without -millions years of short domestic crops-I have now most countries what housewives are able to starving. We do resist segregating those who begun to wonder as to the permanency of buy in their grocery stores is largely the look upon the world food situation as pes:. that change. My doubts stem from what result · of governmental decision. That is simist from those who are optimist, prefer:. happened to food and petroleum prices in even the case in the European Community, ring instead to be a realist. For instance, I recent months. Now, I must ask, are we where the operation of Common Agricultural simply don't believe our government would likely to run headlong into new and un­ Policy has led to shortages of some commodi­ allow riliilions of people to starve fa some expected forces as represented by income ties and to surpluses of others. The latter ·kind of last gasp upholding of a market elasticity of demand for grain and grain­ either are dumped on dollar buyers in com· economy that does not exist in reality. based foods? Past history had indicated that petition with American supplies or are held But having said this, I want to conclude in most of the world there was no reper­ in storage as a price depressant and as .witl1 reminders of several basics that often cussion on wheat demand from changes in justification for continuation of the variable -are forgotten. First, the world's population prices. Our knowledge of the effect of prices levy system. In other words, the American will shortly reach the 4 billion level-it was at these levels on feed use is abysmally lack­ consumer is not competing with Mrs. House­ three and one-half billion at the start of the ing. The hi&torical record was made in a wife in Europe or in the U.S.S.R. or in China, 1960's-and the total almost certainly ,vm period when prices were hardly a third of but instead is buying against Commission be 7 billion by the end of the present cen­ current levels. There are individual country officials in Brussels, Exportkhleb in Moscow tury. One can hardly argue with the view examples extant right now which indicate and the Chinese G1·ain Corporation in that the world thus far has been unable to that wheat consumption as food-where Peking. rationalize its agricultural potential in order price impact had not been observed in the to feed all the world's people an adequate past-is being reduced. The result is a beau­ My objection is to the false perception of the world grain market as something akin diet. This has not been the case even with tiful economics lesson in how price is the ever upward grain production as evidenced most effective rationer of all; the question to the beautiful mechanism existing in America. As we have observed in recent by the fact that at least 50% of the present is whether this is a morally valid or politi­ population is suffering from malnutrition cally satisfactory solution? years, arbitrary buying and selling decisions by foreign governments often are made with­ and some 600 million people are in the cate­ My worries in the price arena go beyond gory of acute under-nourishment. In light these moral or political questionings to won­ out regard to economics. When this is done a tremendous jolt is sent through the U.S. of recent crop trends already noted, it is most der whether, from the long-range view of difficult for me to view with any equanimity American agriculture and of foreign trade, system, le,ading to calls for safeguards that could in the long run be more destructive the almost certain prospect that another 3 · we are doing the wisest thing to allow prices billion people will be livil1g on: this planet to effect a -curtailment in consumption of than the problem-causing events themselves. American export policy ii} a year such as this in another 25 years. grain-based foods by millions and millions The second very basic point to understand of people around the world. After all, it took when the balance between "enough" and "too little" is very narrow cannot afford to be is best illustrated by analyzing trends in many years of market development and of world wheat consumption, whi-ch currently improvements in standards of living to bring naively based on a false conception of what constitutes the world food market. aggregates 340 million metric tons. Wheat those nations and governments to the point consumption has been increasing for the past where the availability of grain-based foods The third of the assumptions that bothers me greatly is that somehow American and 15 years at an average annual rate of 3.4%, at a reasonable price S'timulated the adop­ with that increase almost equally divided tion of policies that encouraged our export­ world food production can be increased over a period of time at a. rate equal to prospec­ between the force of population growth at a ing goals. rate of 1.6 % per year and the remainder ac­ We must confront the issue of whether tive demand growth. Let me set out here counted for by rising per capita consumption wheat and corn at current levels, with their the fact that we, for a long period of time, at an average annual rate of 1.8%. The latter very direct impact on the ability of not only have been among those who felt that world gain reflects rising expectations, an inexora­ American consumers but of people around food production had nowhere come near to ble demand for better eating. Yet, severe the world to eat bread and other grain­ tapping its full potential and that U.S.DA. malnourishment still exists. It now appears derived foods, may somehow cause disloca­ projection forecasting surplus production of that consumption growth attributed to rising tion and even revision in long-term demand grain by the 1980's we1·e probably correct. But per capita use has slowed measureably in th& 29736 EXTENSIONS OF REMARKS August 21, 1974 past several years and wlll come to a Steve Vesecky, a Vice president of Campbell teresting lead editorial on commodity screeching halt in 1974-1975. Taggart Inc., the big Dallas-based baker. Mr. trading. Regardless of one's views on To my way of thinking, this ls a poorly Vesecky gets one copy at his office, another understood and little appreciated develop­ at home. Subscribers who need information this complicated subject, it expresses a ment. At the very least, a trend such as this they can't find in the magazine can call its significant and interesting point of view. should prompt a serious assessment of Amer­ offices in the Board of Trade Building in CONFUSION OVER SPECULATOR'S ROLE IN ican and world food production and market­ Kansas City. "Within five minutes they'll COMMODITIES TRADING ing practices. When one really comprehends have something it would take the Depart­ A group of farmers attending the Ozark how very little is known about the ultimate ment of Agriculture two weeks to find," an Empire Fair in Springfield, Mo., recently effect of prices at current levels on consump­ executive says. vented their ire over several developments tion of foods made directly from grains as Mr. Sosland is on a first-name basis with threatening their financial security. Accord­ well as livestock and poultry, the dangers of nearly every top executive in the industry. ing to Frank Farmer, farm editor of the News the present situation multiply. Another year, The executives often ask his advice on merg­ and Leader newspapers, the farmers were on top of the past three, of a production and ers, plant expansions and personnel changes. frightened by dry weather, militant over low marketing system that diminishes the Not long a.go, he introduced an acquiring cattle prices and still angry at Washington amount of food available to each of the company to a company that wanted to be over price controls, which started a process nearly 4 billion of us means severe stresses acquired. still distorting those prices. in practically every corner of the globe. The A FAMll.Y AFFAm But their biggest complaint, especially by call must go out for new and more realistic David Sosland (Morton Sosland's father) dairymen plagued by low milk prices at the perceptions than we have had in recent years. and two brothers started the magazine in fa.rm and high grain prices, was over specula­ We probably should face up to the need for 1922. It was called the Southwestern Miller tion in the marketplace. One man shouted some serious new thinking about the road until last year. When it started, the field was that permitting speculation in grain at a we are traveling in trying to feed ourselves crowded with at least seven other milling time of a threatened shortfall in U.S. pro­ and a sizable part of the world. trade-papers and a dozen grain journals that duction "borders on insanity." Unfortu­ gave some coverage to flour production. Mill­ nately, that charge also prevails in more lofty Mn.LING AND BAKING NEWS THRIVES BY ing & Baking News is the only weekly left councils, including Congress, where some­ ExCLUSIVITY AND SPOTTl'.NG TRENDS in the field today. thing more concrete than sound and fury (By David P. Garino) Morton Sosland grew up on the magazine. could emerge in the form of legislation. KANSAS CITY, Mo.-As trade publications As a teen-ager he ran the addressing ma­ chine. He graduated from Harvard in 1946 On the same day a U.S. senator visited go, Milling & Baking News isn't exactly run­ the Kansas City Board of Trade as a member of-the-mlll. with a degree in economics, "I got off the train, went straight back to work and have of a committee studying the entire commod­ It regularly turns away would-be subscrib­ ities trading structure; however, his em­ ers. It doesn't engage in any unseemly scram­ been here ever since," he says. Morton Sosland's personal interests stretch phasis was on transportation. A committee ble for advertising; until a few years ago, it staff member with the senator predicted didn't even hustle it, prospering instead on far beyond the wheat belt. For example, he owns outstanding collections of Mayan and legislation to tighten up supervision of the a steady flow of unsolicited ads. Rather than futures market. pack its pages with publicity handouts and Aztec, North American Indian and primitive African art. Still, he works at the magazine What the Ozark farmers failed to realize canned articles, it develops its own fact-filled is precisely what the senators must: The stories that alert readers to major trends in seven days a week, on Sunday limiting him­ self to a couple of hours in putting the final present system of commodity transactions, their business. In all this, the magazine prob­ including futures trading, must be preserved. ably offers a classic lesson in how an honest touches on the week's issue, published on Tuesday. His two uncles, Samuel and Louis, Its role is vital in preventing erratic swings and aggressive trade publication can make in commodity prices and any major tam­ ltelf indispensable. a.re managing editor and senior editor. His brother, Neil, also is a senior editor. With two pering certainly would cause both consum­ "I've been reading Milling & Baking News other editorial staffers, the Soslands put out ers and farmers even more pricing grief. for 37 yea.rs, and we could hardly run our a magazine that contains about the same That is not to say the system, which has business without it," says D. L. Barber, group number of words each week as Time. grown enormously in the last several years, vice president of grain milled products for In return, the editors get salaries that cannot be improved by the judicious co­ ConAgra Inc. Says Robert Fanelli, president range above $30,000 a year. Outside sources operation of the Congress and the commod­ of Arnold Bakers Inc., Greenwich, Conn.: estimate that yearly advertising revenues ities exchanges. .. I can't imagine any executive in this field exceed $700,000, though the amount of profit not reading it. I'd be doubtful of the capa­ The fact is that futures trading, which is a closely guarded secret. Most of it, it ts has evolved in the last 100 years from a sim­ bility of anyone who didn't." known, is distributed to the Soslands and ple forward pricing contract to a complex The slick-paper, tabloid-size weekly, which other employes. The family still owns the and often misunderstood giant, would not costs $12 a year, counts only 5,657 subscribers. magazine. work without speculators. They are the ones But more than 1,000 of them are chief execu­ Barely known outside its field, Milling & willing to take the financial risks in return tives or owners of milling and baking firms, Baking News got into the news last year for the possibility of making a profit that and more than 1,100 others a.re marketing, when the Soviet Union was negotiating to others, among them packers, bakers and sales and purchasing executives. Investors buy a huge amount of American grain. On millers, cannot assume. Speculators bring and amateur commodities traders sometimes July 17, :Mr. Sosland got a telephone call to the market some degree of stability, try to subscribe, but they get turned down. from a man who identified himself as John whether that particular commodity be wheat, Morton I. SOsland, editor and publisher, says Smith, an editor of the Financial Times of corn, soybeans, precious metals or whatever. the magazine is aimed at "decision makers" London. Mr. Smith displayed an uncommon Farmers, of course, also a.re speculating in a in the grain industry rather than "doctors, knowledge of Russian grain-buying plans different way when, as this year, they hold lawyers and Indian chiefs who are specula­ and the American market situation. His calls their grain in hope of higher prices later on tors." continued for nearly a month. In discussing in the marketing year. MEAT PRICES AND PASTA the grain negotiations, Mr. Smith gave Mr. To visualize futures speculation and trad­ Milling & Baking News provides financial Sosland some useful tips for stories. ing in an ultra-simple approach, picture a news of companies in its industry and Mr. SOsland got suspicious and eventually teeter-totter with the speculators on each regular, highly technical features on de­ checked with the Financial Times. He learned end. They ride up and down freely, but move­ velopments in the markets for wheat futures, that Mr. Smith didn't work there. Mr. Smith ment is scarcely discernible at the fulcrum. bakery flour and livestock feed. It also has later told him he was employed by a "secret That's where the commercial hedgers gather interpretive trend reports like a recent one information office." Mr. Sosland still can't to buy and sell the commodities they and by Mr. SOsland on how natural-gas shortages figure out who :Mr. Smith really was. One their companies need for future market and are affecting bakery operations. theory: Mr. Smith was a Russian, seeking to food production requirements. The hedging Another typical trend article is one headed doublecheck the Russians' assessment of the process becomes a form of price insurance. "Outlook Now Favorable for Enrichment U.S. grain market in order to improve their Changes." An analysis by the editors con­ bargaining position. At the steady fulcrum bakers, for exam­ cludes that new federal flour-enrichment ple, can assure themselves through hedging standards probably wlll take effect despite of a ready and dependable supply of flour the objections of some doctors to increasing at relatively stable prices for months ahead. the amount of iron in flour, bread and rolls. COMMODITY TRADING The costs of other raw materials, labor and A story headed "Major Food Consumption transportation are more unpredictable, but Changes Seen" notes, among other things, to some extent through the present system that high meat prices have helped pasta HON. RICHARD BOLLING of t.ading every consumer is protected from sales. And a piece titled "World Wheat Use OF MISSOURI violent price fluctuations because that risk Uptrend Persists" predicts that world-wide IN THE HOUSE OF REPRESENTATIVES is taken by speculators. That function is what the nation's lawmakers and consumer wheat consumption will increase for the Wednesday, August 21, 1974 sixth straight year despite shortages. groups should take great care to perpetuate "The magazine has in one place all the Mr. BOLLING. Mr. Speaker. the Kan­ against well-intentioned but ill-informed factors that bear on the price of flour," says sas City Star on August 12 had an in- critics. August 21, 1974 EXTENSIONS OF REMARKS 29737 HERMANN, MO.'S DECLARATION [From the Advertiser-Courier, July 17, 1974] [From the Advertiser-Courier, July 31, 1974] FOR 1976 A DECLARATION FOR 1976 BICENTENNIAL HONORS TO CITY (Resolution of Purpose and Commitment "Your community was chosen as a Bicen­ Adopted by the Hermann Bicentennial tennial City because of its great heritage. Commission, July 10, 1974) Your community represents so very well the HON. RICHARD H. ICHORD The Hermann Bicentennial Celebration very important contributions of German OF MISSOURI Commission looks forward to 1976 and the people- to the development of this great state and nation," Lt. Gov. Wllliam Phelps said IN THE HOUSE OF REPRESENTATIVES years that follow as an era of bicentennial celebrations of American independence and in his address at the- Hermann Bicentennial Wednesday, August 21, 1974 democratic achievement. The purpose of our Flag Presentation program at the German Commission is to guide and assist our fellow School, Friday afternoon. Mr. !CHORD. Mr. Speaker, on July 26 citizens in responding to the opportunities of A nice-sized crowd of well over 200 persons it was my privilege to participate in the 1976 and subsequent years. attended the program despite temperatures Bicentennial flag presentation cere­ The celebrations of 1976 and after will near the 100-degree mark. Those attending monies at Hermann, Mo., which launched draw strength and purpose from the docu­ sought shaded areas to escape the heat of this predominantly German community ment that inaugurated American independ­ the sun. as an officially designated Bicentennial ence with the bold and brave assertion that Phelps continued by saying, "You are being community. Hermann has an old and all men have a right to life, liberty, and the awarded this flag because your heritage is pursuit of happiness. Our celebration in Her­ both unique and at the same time similar valued heritage, and since its incorpora­ mann will therefore be concerned with the to the history of others who became early tion in 1839 has built upon this heritage quality of the lives we lead both as individ­ Americans." to maintain a progressive, involved, and uals and as participants in our community The lieutenant governor traced the history self-reliant community which has con­ and in the nation, with the health of our of the German people who were forced to tributed greatly to the State of Missouri liberties, and with the sense of security that leave their homeland due to political in­ is the foundation of our happiness. tolerance, religious oppression and their and to the Nation as a whole. We intend to be guided by an awareness eventual settlement in Missouri. Under the leadership of C. M. Bass­ of the heritage of freedom and equality that "On Aug. 27, 1831, a German Settlement man, mayor of Hermann, and A. A. was earned for us in an earlier day. We will Society of Philadelphia was established for Schweighauser, chairman of the Her­ also be guided by a commitment to the the purpose of settling a colony in the far spiritual, social, intellectual, and physical western United States," he said. "The Ger­ mann Bicentennial Commission, and environments we share with each other, and mans wanted their own communities to with the enthusiastic and dedicated sup­ on the well-being of which that heritage is maintain a strong sense of cultural condi­ port of Hermann's residents, the city of sustained and enhanced. tions while enjoying the benefits of .an end­ Hermann has already undertaken early The Declaration of Independence was-and less frontier. The community of Hermann was thus founded here in one of the most preparations for the part it will play continues to be-a magnificent promise. We propose to make Hermann's celebration and fertile valleys, reminding many settlers of in this Nation's Bicentennial which, in bicentennial activities an example for com­ their Bavarian homeland. Since that time, my estimation, exemplify the true spirit, munities throughout these United States of Gasconade County has had a more strictly knowledge, and understanding of the how that promise has been-and wm be-ful­ German flavor than any county in Missouri." binding link between America's past, filled: Fine public schools, decent housing, Phelps pointed out Hermann prospered and rewarding opportunities for participa­ after the Civil War as a trade center. "The America's presE.nt, and America's fu­ tion in and service to the community for all Hermann winery became known throughout ture-the three underlying themes of the citizens, regardless of age, race or political the world and would have gained greater Bicentennial. Back in 1847 a Missouri persuasion. A climate of respect and self- recognition had not Prohibition appeared" Fourth of July orator eloquently 1·espect for our senior citizens, those persons he said. "Even though the town's major ~­ who are now the trustees of the past, will be dustry was an economic disaster, well before summed up the reasons why this Nation sought; for the inheritors of the future, our the Great Depression, the community sur­ is the oldest surviving democratic form of youth, a socially healthful atmosphere that vived that crisis because of the resourceful­ government under a republic and I draws wisdom from and appreciation for ness and self reliance of its people, without quote: the past, as well as an atmosphere that finds the kind of government assistance that was promise in the time yet to come, will be later sought by many other communities in Though all former governments have similar circumstances. The community never fallen and yielded to the corroding influences created. Our Commission's intention is thus not only to recall the past but also to inven­ asked for such aid and succeeded in surviv­ of time, and shared the fate of all other ing the crisis in the general spirit of the human concerns, yet there are principles tory the future as this community, the nation and the world move toward an exciting, early settlers. firm as the unchangeable rocks of Adamant, "The Winery, museums and historic homes upon which the fabric of government will challenging and potentially most rewarding future that man has ever confronted. today are living proof that Hermann is still stand, until human affairs shall have ceased a unique German settlement. and Heaven's Messiah shall fill the throne The years ahead can be both a time of celebration and an opportunity for assess­ ''The annual Malfest, which was revived of peace. Those principles are founded upon and instituted 22 years ago as a public cele­ the equality of mankind, upon truth, reason ment and correction, for matching promise with performance, for overcoming the neglect bra~ion by citizens proud of Hermann's past, and justice; and the government whose foun­ remmds Missourians, and all of us in the dations rest upon these, and whose strength and abuse which sometimes we have allowed to tarnish our ideals, our liberties, and our United States, of the important role that is dependent upon the free will of a vigorous lives. Hermann has played in the development of people, will only fail when time shall grow The monuments and publications of 1976 the state and nation. hoary with age, and nature herself shall will include the restoration and preservation "It also vividly demonstrates the vitality of decay. of physical reminders of vanished times, a.nd this excellent, fine community for the future, built upon its firm fcundation of the past" The recent resolution of purpose and thus will protect vital meanings of the past for our use in the- future. More importantly, he concluded. ' commitment adopted by the Hermann however, 1976 offers Hermann the oppor­ Other speakers were Mayor C. M. Bassman, Bicentennial Commission on July 10, tunity to celebrate and strengthen the w?o extended the welcome and accepted the 1974, setting forth Hermann's plans for promise of 1776 in actions that will continue Bicentennial flag; Ken White, executive sec­ the Bicentennial, firmly accepts the chal­ to build on two-hundred years of tradition retary of the Missouri Bicentennial Com­ that has given the nation and our com­ mission; Secretary of State James c. Kirk­ lenge of this oration recognizing with munity unbiased educational progress, privi­ pa·trick, Congressman Richard !chord of the foresight that the great opportunity of lege to worship where and how we prefer, Eighth District, State Senator James A. No­ the Bicentennial is not only to reawaken liberty to communicate om· ideas and opin­ land Jr., chairman of the Missouri Bicenten­ ions freely to society and to our neighbors, nial Commission; and Councilwoman Caro­ those values and ideals which have made lyn McDowell of Jefferson City. Other guests this experiment in democracy sound but an unfettered public press, the right to elect by majority vote our government representa­ on the speaker's platform were State Sena­ also to carry them forward with dedica­ tor Ralph Uthlaut Jr. and State Senator tives, perpetuation of our other civil liberties Frank Bild. tion and strength for all the future years and legfslative support for human happiness: to come. White presented the framed Bicentennial howsoever we may choose to pursue it. certificate to Secretary of State Kirkpatrick, I would commend Hermann's "Decla­ In the months and years ahead we will who made the presentation to Chairman ration for 1976" to the attention of my plan with Hermann's elected and appointed Schweighauser of the Hermann Commission. colleagues and take this opportunity to ofilcials, l'epresentatives of the county, state, Senator Noland made the official presenta­ and nation, appropriate organizations and tion of the Bicentennial flag to Mayor Bass­ include this eloquent expression of one institutions, and inte1·ested citizens of all for man. community's plans the Bicentennial ages for Hermann's contribution to the re• Schweighauser, who served as master of in the RECORD. newal of the Spirit of '76. ceremonies, read a telegram received by 29738 EXTENSIONS OF REMARKS August 21, 1974 Mayor Bassman from Governor Christopher ROSENTHAL REPORTS RESULTS OF responsible for the energy crisis-32.5 S. Bond which said, "Congratulations to ea.ch and every resident of the City of Hermann QUEENS POLL ON ECONOMY, EN­ percent. Presidential inaction was as you gather today to begin your celebra­ ERGY, GOVERNMENT blamed next-18.5 percent-with Con­ tion of our nation's 200th birthday. I regret gress close behind-17 percent. The Arab that a. previous commitment will keep me oil countries came next-15.2 percent-­ from sharing this special occasion with you. HON. BENJAMIN S. ROSENTHAL followed by wasteful consumers-9.8 Your planning and progress toward a mean­ OF NEW YORK percent-and the increased world de­ ingful Bicentennial community is commend­ IN THE HOUSE OF REPRESENTATIVES mand for energy-6 percent. able. This recognition as an official Bicenten­ Wednesday, August 21, 1974 Five. Faced with continued high prices nial community is most praiseworthy. Best wishes to each of you as you continue your Mr. ROSENTHAL. Mr. Speaker, more for gasoline, heating oil and other pe­ patriotic work toward an even better future than 3,000 residents of the Eighth Con­ troleum products, Queens residents for Hermann, the State of Missouri, and our gressional District of New York­ called for elimination of the oil deple­ Great Nation." Queens-which I represent, responded to tion allowance, foreign tax credit and Also participating in the program were a survey I sent them this month by in­ other tax breaks enjoyed by the oil and Rev. Fr. Miro Wiese, Rev. J. A. Slover, the gas industry-28.5 percent-and a roll­ Hermann V.F.W. Post color guard, members dicating they do not want President Ford back in the price of domestic oil-23.8 of the Hermann Boy Scout and Girl Scout to continue the economic policies of his percent. troops, and the Hungry Five. predecessor. The measure enjoying the least sup­ Unless there is a decisive change in na­ port-of those suggested-was Federal tional economic policy, more than 9 out subsidies to energy consumers in those of 10 said they feel "the economic future areas of the country hardest hit by high ABC EVENING NEWS COMMENTARY for the average American does not look petroleum prices-12.4 percent. good." The course of action most pre­ Nearly one in five favored some form f erred is balancing the Federal budget of nationalization of the oil and gas in­ HON. OLIN E. TEAGUE by cutting spending-the last thing they dustry-19 percent-and the remaining want is a tax increase. OF TEXAS 16.3 percent wanted to see the estab­ IN THE HOUSE OF REPRESENTATIVES The survey was conducted by mail dur­ lishment of a Federal oil and gas corpo­ ing the Presidential transition in the first Wednesday, August 21, 1974 ration which would operate on Federal 3 weeks of August. lands and in competition with private Mr. TEAGUE. Mr. Speaker, veteran AUGUST 1974 SURVEY RESULTS oil companies. news commentator, Howard K. Smith, First. Faced with the worst peacetime Six. On the question of trade with the made some interesting points regarding inflation in our Nation's history, and Soviet Union, 57.3 percent favored with­ this Nation's space efforts during the with consumer prices rising faster than holding "most favored nation" status July 16, 1974, ABC Evening News. wages, Queens families indicated they and other trade concessions until the Mr. Smith points out the recent ad­ are cutting back on virtually all aspects U.8.S.R. allows free emigration of So­ vances due to our space program and the of their standard of living, but nowhere viet Jews and other minorities. And 42.9 potential the program will undoubtedly so much as on travel and entertainment. percent wanted the Soviets to allow produce for the United States. That category accounts for nearly one­ more political and religious freedoms to I commend the commentary to you, fourth of all cutbacks-23.4 percent, with its citizens before winning any trade my fellow Members of Congress and the savings and investments a close second- concessions from the United States. general public. 23.1 percent. Food is the next category- Seven. When asked to rate five units The commentary follows: 6.5 percent, followed by clothing-15.9 of government-the President, Congress, percent, and home and home improve­ courts, New York State government and COMMENTARY, ABC EVENING NEWS, JULY 16, ments-13.8 percent. The one area ap­ New York City government-for overall 1974 parently least affected, or possibly least effectiveness in facing and solving The only thing space exploration has in :flexible, is medical and dental care. That America's problems, a majority of re­ common with Watergate is, both show how category accounted for only 7 .3 percent spondents gave each one a negative quickly we become jaded with sensations. of the cutbacks. · rating. In the case of lunar flight, whose fifth anniversary Jules Bergman just noted, it is Second. A cut in Federal spending to The Congress got the best rating, but a. pity. balance the budget is the most preferred just barely-48.5-percent gave it a fair­ I have never been able to follow those who method for fighting inflation-39.4 per­ to-good grade. New York State govern­ say it was a wasteful folly to pour all that cent. The least preferred step is a tax ment was a close second with 48.2 per­ money into outer space when we need so increase-4.5 percent. Other anti-infla­ cent approval; the courts were third with much here on earth. I think it has been the tion moves supported by Queens residents 45.6 percent; New York City government greatest adventure of the age of the most include a rollback in the prices of food, next with 30 percent positive, and last fruitful. fuel, and other essential items-38.8 per­ place with only 18.3 percent was the Its thousands of useful spinoffs range from cent and a reinstitution of strict price President of the United States. This sur­ pacemakers that extend life of heart patients controls-21.8 percent. Only 5.5 percent vey was mailed out the week President to a computer technology that is without a opposed any controls and favored letting Nixon resigned and responses began re­ competitor in the world. "the free market follow its natural turning in bulk by the end of the week Spy satellLtes, a byproduct that has opened Russia. and America wide to one an­ course." and continued for 2 weeks after that. other's inspection, has done more for real Third. An overwhelming majority of Eight. The survey indicated persons detente than Henry Kissinger. Queens residents expressed deep con­ most often call on city hall or some city Now when we are bombarded with dire cern over the economy. Some 92.4 .per­ agency for help in solving problems. predictions of overpopulation and exhausted cent said they "have serious doubts about Next in line is their Congressman fol­ raw materials, British writer Adrian Berry our present economic policies and the lowed by city councilmen, U.S. Senator, produces a book saying, nonsense-thanks economic future for average Americans State assemblyman, President or Federal to space exploration we shall soon mine the does not look good." agencies, State senator, Governor or moon and in time other planets. A sparse 6.3 percent said they were State agency and, :finally, the courts. He projects our planting hardy algae on only "somewhat concerned" and felt But when it comes to getting results, Venus to consume its atmosphere of carbon first is last. The most frequently called­ dioxide and turn it into an atmosphere of that although "things will be tough tem­ oxygen, permitting human colonization. porarily" the econmy "will eventually the mayor and his agencies-ranked low­ est in satisfied citizens. Only 16.3 per­ It sounds ridiculous, but no more than straighten out if we follow the present walking on the moon would have sounded course." cent of those seeking help were satisfied twenty yea.rs a.go. The remaining 1.3 percent said they with the service they received from city The time ma.y come when this day will be are "not too concerned" and expressed hall. Tied for first were those citizens more celebrated than the day Columbus confidence that "things will tum out contacting their State assemblymen and sighted San Salvador-the day man opened OK." senators, with a 66. 7 percent satisfaction the door of the universe and multiplied his Four. By a wide margin, Queens rest­ rating. City councilmen and U.S. Con­ range by millions. . dents said the big oil companies are most gressmen were a close second with 61.6 August 21, 1974 EXTENSIONS OF REMARKS 29739

percent and 61.1 percent ratings, respec­ should withhold "most favored nation" SINO-AMERICAN FRIENDSHIP tively. treatment and trade concessions from the President Gerald Ford's assumption of of­ Others, in descending order, were Gov­ Soviet Union until that country: fice provides an opportunity to build a new ernor or State agency-50 percent, U.S. a. Allows free emigration of Soviet basis for Sino-American friendship. Jews and other minorities______57. 3 Secretary of State Henry Kissinger- received Senator-46.3 percent, President or Fed­ b. Allows much more political and 58 foreign ambassadors and charges d'affaires eral agency-30.2 percent, the courts- religious freedoms to its citi- at the State Department last Friday to assure 25.9 percent, and, finally, mayor or city zens 42. 9 them of the continuity of American foreign agency-16.3 percent. policy despite the resignation of Mr. Richard Nlxon. In addition, Kissinger also sent mes­ CONGRESSMAN BEN ROSENTHAL'S EIGHTH CON­ Percent- GRESSIONAL DISTRICT QUESTIONNAIRE, AU­ sages to all foreign ministers conveying the GUST 1974 Good Fair Poor Rank same assurances. 1. We are now experiencing the worst Secretary Kissinger's message to Minister of Foreign Affairs Shen Chang-huan of the peacetime inflation in our nation's history. 7. How would you rate the over- With consumer prices rising much faster all effectiveness of the following Republic of China was personally delivered to than wages, most families have been forced units of government in facing and the Foreign Minister by U.S. Ambassador to cut back on their standard of living. solving America's problems: Leonard Unger at the Foreign Ministry last (a) President.______6. 0 12. 2 81.7 5 Saturday morning. The message reiterated Please check the areas, if any, where your (b) The Congress •••• ----·----- 7. 4 41.l 51. 5 1 family has had to cut back most: (c) The Courts ______12. 4 33. 2 54. 4 3 that the United States will honor all its com­ (Answers in percent, numbers in paren- (d) New York State government. 3. 7 44.5 51.8 2 mitments to China in addition to the as­ theses represent rank of importance) (e) New York City government__ 2. 3 27.7 70.0 4 surances conveyed to Ambassador James Shen by U.S. Deputy Secretary of State Ro­ a. Food------16.5(3) Frequency Satisfaction bert Ingersoll on behalf of President Ford b. Clothing ------15. 9(4) c. Travel and Entertainment ______23. 4(1) Per· Num· Per· Num· and Secretary Kissinger. cent ber cent ber d. Medical and Dental Care______7. 3(6) These assurances have been reciprocated by e. Home and Home Improvements __ 13. 8(5) the spokesman of the Foreign Ministry and f. Savings and Investments ______23. 1 (2) 8. Have you, in the past year, other Chinese leaders. It must be admitted contacted any of the following that the present Sino-American. relations are 2. If inflation is not brought under con­ public officials or agencies for as- not as close as they should be. Considering trol in the very near future, would you favor: sistance. If yes, check the 1st box; a. A reinstitution of strict price. con- if you were satisfied with the our traditional friendship and common aspi­ service you received, check the rations for freedom, democracy and justice, trols ------21. 8(3) 2nd box, too: b. A rollback in the prices of food, as well as the existing Sino-American Mu­ (a) President or Federal Agency_ 9. 0 6 30.2 6 tual Defense Treaty, our relations should be fuel and other essential items- 29. 8(2) (b) U.S. Senator ______11. 4 4 46. 3 5 c. No controls, let the free market (c) U.S. Congressman ______16. 1 2 61.1 3 much closer. This regrettable situation is follow its natural course______5. 5(4) (d) The Courts______4. 6 9 25.9 7 largely due to former President Nixon's illu­ (e) Governor or State agency_ --- 6. 4 8 50.0 4 sion about U.S.-Red China. detente, which d. Balancing the federal budget by (f) State senator...... 8.1 7 66. 7 1 cutting spending ______39. 4(1) (g) State assemblyman...... 9. 2 5 66. 7 1 Nixon considered as having "unlocked the e. Balancing the federal budget by (h) Mayor or city agency .•••••• 17.6 1 16. 3 8 doors that for a quarter of a century stood raising taxes______4. 5(5) (i) City councilman •••...... ••• 12. 4 3 61. 6 2 between the United States and the People's 3. As you look ahead for 1974-75, check Republic of China." the following statement that best describes As Madame Chiang Kai-shek has said in your feelings about the economic outlook: REESTABLISHING CLOSER RELA­ her comments on former President Nixon's a. Not too concerned-think things TIONS WITH FREE CHINA views, "the unlocking the doors of the main­ will turn out OK______1. 3 (3) land would indeed be a very good thing were b. Somewhat concerned-think it true." She pointed out that there is no things will be tough tem­ HON. JOHN M. ASHBROOK free egress nor free ingress and cited the porarily but will eventually recent views of Lord Michael Lindsay, Laciy OF OHIO Lindsay and former Deputy Director of the straighten out if we follow the present course ______6.3(2) IN THE HOUSE OF REPRESENTATIVES U.S. Liaison Office in Peiping, China expert Alfred Jenkins, to show that the doors are c. I am deeply concerned. I have Wednesday, August 21, 1974 serious doubts about our pres­ far from being unlockeded and that such a ent economic policies and the Mr. ASHBROOK. Mr. Speaker, the regime cannot bring true well-being to the economic future for average United States and the Republic of China Chinese people and cannot open a glorious Americans doesn't look good ___ 92. 4(1) vista for the country. have long been friends and allies. Un­ Madame Chiang asked a very pertinent 4. As you analyze the energy crisis, which fortunately in the past few years the of the following do you think is most to question: "Could anyone with a modicum blame: previously close relationship has become of intelligence ever honestly think that es­ somewhat more distant. President Ford tablishing formal relation with a repressive [Answers in percent, numbers in parentheses has the opportunity to restore this alli­ regime can mean that the Chinese people on represents rank O'f importance] ance and friendship to a better condi­ the mainland will turn instantly from being a. Big oil companies ------32. 5(1) tion. I hope that he will take this oppor­ 'enemies' of the United States into 'friends' b. Congressional inaction ------17. 0(3) of the United States?" That this is impossible c. Presidential inaction ------18. 5(2) tunity. has been proven by the fact that today the d. Arab oil countries------15. 2(4) There are indications that such steps Chinese Communists still classify the United e. Increase in world demand for are already being taken. The President, States as their Enemy No. 1. energy------6.9(6) in his remarks to the joint session of Indeed, as Madame Chiahg has so wisely f. The whole country, because we are Congress, stated: said, there is no such thing as instant friend­ unwise in our use of energy____ 9. 8(5) To our a.mes and friends in Asia, I pledge ship as instant coffee. Nixon's dream of 5. If the price of gasoline, heating oil and a continuity in our support for their security, friendship with the Chinese Communists has other petroleum products remains high independence and economic development. certainly not been realized as evidenced by would you favor any or all of the following David Bruce's frustration in Peiping. governmental actions: The Free Chinese have long attempted The Chinese people are indeed real friends a. A rollback in the price of domes- tic on ______23.8(2) to maintain a strong friendship with of the American people. Ref1.:gees from the our country. It is interesting to note an mainland have told us that the mainlanders b. A full or partial nationalization editorial from the English language are bitter toward the establishment of of the oil and gas industry ______19. 0(3) China Post of August 13, 1974, which closer relations between the United States c. The establishment of a federal oil and the Peiping regim.e because they con­ and gas corporation which would was published in Taiwan. In part it sider it as putting the stamp of approval on operate on federal lands and in states: their enslavement. competition with private oil com­ It is high time for the United States to There is an urgent need to reexamine the panies------16.3(4) distinguish between friends and foes and not present relations between the United States d. Elimination of the oil depletion to mistake foes for friends. The United and the Chinese people as a whole. It is high allowance, foreign tax credit and States should realize that the Chinese people time for the United States to distinguish other tax breaks to the oil and of the Republic of China are its true allies between friends and foes and not to mistake gas industry------2.8. 5(1) and friends. foes for friends. The United States should e. Federal subsidies to energy con- realize that the Chinese people of the Repub­ sumers 1n those areas of the At this point I include in the RECORD lic of China are its true a.mes and friends and country hardest hit by high pe­ the full text of the editorial entitled that Nixon's wishful thinking 1n hoping for troleum prices ------12. 4(5) "Sino-American Friendship." the promotion of U .S.-Peiping friendship 6. Do you believe that the United States The editorial follows: should never be respected in the future. 29740 EXTENSIONS Of REMARKS August 21, 1974 MIDPARK HIGH SCHOOL'S SURVEY were compiled by Steven J. Chorvat, the As a result of a discussion with Repre­ OF HAZARDOUS TOYS health department's chief of neighborhood sentative Al Johnson yesterday, I gather that conservation. this disclosure may have been made by a The classes recorded 1,088 instances where summer intern who stole copies of these children were injured by toys. Some parents records and sold them to a. reporter. HON. WILLIAM E. MINSHALL said they have concluded that the way to Whatever the cause of the unauthorized OF OHIO avoid the problem is to make toys instead release it would seem to me that the Office IN THE HOUSE OF REPRESENTATIVES of buying them. of Placement and Office Management should The survey showed that most toy injuries consider the approach that I have voluntar­ Wednesday, August 21, 1974 were cuts, bruises, burns and sh9eks. Among ily chosen to take. Mr. MINSHALL of Ohio. Mr Speaker, the 814 respondents, injuries mentioned in­ One can only speculate as to why erroneous students of Midpark High School, Mid­ cluded 53 children with broken bones, 56 material may have been inserted in the Con­ dleburg Heights, Ohio, recently made who choked from swallowing small objects, gressional Record. Also, one can only specu­ one child who lost an eye, another who lost late as to why personnel employment re­ two highly interesting and potentially a finger and three who were poisoned. One quests were released without authorization. valuable surveys. As a project for their boy lost his hearing for three months be­ Whatever the reason, the ease with which home economics and child development cause of a. cap gun. these two unfortunate events occurred would classes, they conducted neighborhood in­ The long list of toys that caused injuries indicate that a change in procedure is in or­ terviews to determine what parents included bicycles, electrical and chemical der if we are to prevent similar occurrences think of toys now on the market and to toys, guns that shoot objects, metal doll in the future--and from being enlarged into obtain their ideas for better and safer houses and other metal toys, exposed screws political dirty tricks to the detriment of the a.nd nails and wires in stuffed toys. integrity of Congressional honor. playthings. Approximately 80 percent of A large majority of those surveyed also the families interviewed reported acci­ said that some toys began to fall apart DEAR MR. SNOW: In view of the articles dents involving toys and children. within days or weeks of purchase. They also contained in the Washington Post and in the Steven J. Chorvat, chief of the Bureau said that toys are not as well made as they Washington Star-News of the past few days of Neighborhood Conservation and En­ were a few years ago. pertaining to allegations of discriminatory vironmental Health Services of the Among suggestions from the respondents hiring practices, please advise your staff that Cleveland Department of Health, was for making toys safer were: any requests from my office should not be consultant for the project. I would like to Don't take advertisements for gospel. They honored nor any file maintained unless you are designed to sell. receive a letter signed by me. join him in congratulating both students Manufacturers should tag toys warning of This procedure should protect both our and teachers on their work, results of dangers. offices from the unauthorized release of em­ which are to be sent to the U.S. Con­ Remove false advertising from television. ployment requests. sumer Product Safety Commission. Children see the advertisements a.nd demand I would think that you should encourage a Under leave to revise and extend my the toys. similar procedure from other offices so as remarks, I would like to include the fol­ Warn friends and neighbors about unsafe to prevent the occurrence of unauthorized re­ lowing in the RECORD: toys. leases of your files in the future. Put yourself in the child's place when MmPARK STUDENTS LAUDED FOR UNSAFE TOY buying toys. Ask yourself 1f he could break SURVEY the toy and what kind of injury it could Home economics and child development cause. FARM SUPPLY PRICES 1974 classes at Midpark High School have been Stores should watch closely the toys they commended by Steven J. Chorvat, chief of the buy. Bureau of Neighborhood Conservation and Miss Kit Emch, one of three home eco­ HON. JOHN P. MURTHA Environmental Health Services of the Cleve­ nomics teachers whose pupils participated, OF PENNSYLVANIA land Department of Health, for their partici­ said each youngster was given 10 question­ IN THE HOUSE OF REPRESENTATIVES pation in a "safe and hazardous toy" pro­ naires and asked to have them filled by gram. friends, neighbors a.nd by going door-to­ Wednesday, August 21, 1974 The U.S. Consumer Product Safety Com­ door. mission estimates there are 700,000 injuries Mr. MURTHA. Mr. Speaker, inflation from unsafe toys every year in the U.S. has hit many groups over the past few Students made two surveys in their neigh­ CONGRESSIONAL INTEGRITY months. In some cases the evidence is at borhoods during the school year to determine the supermarket check-out counter; for what parents thought of available toys, and other people it means less money in their to ellcit their ideas and suggestions for bet­ HON. ANDREW J. HINSHAW savings account; for others it means less ter and safer toys. As a result of the survey, parents and stu­ OF CALIFORNIA extra money to spend on marginal items. dents came up with many such suggestions IN THE HOUSE OF REPRESENTATIVES But few groups have been as hard hit in for stores, toy manufacturers, the U.S. gov­ Wednesday, August 21, 1974 as farmers. And few other areas do ernment Consumer Product Safety Commis­ the figures show so well how inflation sion, and local authorities to follow for better Mr. HINSHAW. Mr. Speaker, I have has affected their daily lives. and safer toys to protect children. recently sent letters to Senator LEE MET­ I was at a congressional workshop in Teachers involved in the program included CALF in his capacity as chairman of the Indiana, Pa., last week, Mr. Speaker, at Carol Templeton, Carol Pickering, Carol Joint Committee on Congressional Oper­ which County Commissioner Jay Dilts Barnes, Kit Emch and Jan Flowers. The Environmebtal Health Services of the ations, and to Representative JACK and Mr. Joe George, an Indiana County Cleveland Department of Health cooperated BROOKS as vice chairman of that commit­ farmer presented me with a list of items With teachers and students in helping to tee. These letters were in regard to the that graphically demonstrate how in­ plan the program and compiling data from recent unauthorized release of personnel flation has affected the independent the neighborhood surveys. employment requests by the Office of Pennsylvania dairy farmer. Programs on safe and hazardous toys are Placement and Office Management. Here, Mr. Speaker, is a list of com­ also presented through local libraries. I believe this is a matter that all Mem­ parative prices for farm supplies be­ bers of Congress should be concerned [From the Plain Dealer (Cleveland}, Mar. 21, tween August 1973 and August of this with. Therefore, I would like to share year. 1974] with you the content of these letters: PuPILS' SURVEY TuRNS Up 1,088 INJURIES DEAR SENATOR METCALF: For your informa­ FROM TOYS tion, I have attached a copy of a letter which August 1973 August 1974 (By Thomas H. Gaumer} I have sent to Mr. Jerry Snow, Administra­ A new toy does not necessarily bring hap­ tive Officer of the Office of Placement and 33 percent topper (ton) ______.:; $95.00 $184. 00 Hog feed (100 lb) ______8.95 9.50 piness, according to Middleburg Heights Office Management. 55 percent beefmix (100 lb) ___ _ 8.25 9.40 residents. We have recently witnessed the ease with 10-20-20 (ton) ______..: 99.00 190. 00 In fact, a new toy often causes unhappi­ which some unknown persons have com­ 15-15-15 (ton) ______95.00 181. 00 promised the integrity of the Congressional 10-10-10 (ton) __ ------= 78.00 140. 00 ness and even bitterness, pupils at Midpark Bator twine (bale) ______:: 8.95 24.95 High School learned from a survey of 841 Record by inserting material falsely attrib­ Smooth wire (coil) ______.: 9.95 21. 95 residents. Most of the residents complained uted to some House Members, specifically Barbed wire (roll) ____ .______-:: 19.19 27.99 of toys breaking and children being injured, Earl Landgrebe and John Ashbrook. We have lime (pulverized) (ton) ____ :; __ ;;: 9.50 10.50 now seen the unauthorized release of per­ Hi mag. lime (ton>------= 11.50 12.60 sometimes seriously, by new toys. lodophor (gallon) ______.::: 4.15 5.25 Using a form designed by the Cleveland sonnel employment requests to the embar­ Pipeline cleaner (20 lb) ______-:: 9.30 11.95 Department of Health, six home economics rassment and the detriment of the individ­ Diesel fuel (gallon) ______;;, .17 .31 classes conducted the survey. Their results ual Congressmen's offices involved. August 21, 1974 EXTENSIONS OF REMARKS 2974l At the same time, Mr. Speaker, that Knowing that everyone loves a parade, t;ction of our endangered wildlife these prices have risen so sharply, a Rockdale has planned not one but two. species. quart of milk that the farmer produces Village children will stage a "Kids' He gained nationwide prominence as today returns 16 cents while it returned Parade" and a grand parade will feature acting chairman of the House Un-Amer­ 19 cents a year ago. all the trappings: ornate floats, beauti­ ican Activities Committee investigating Over the next weeks as we work to ful belles to delight girlwatchers, and Alger Hiss, during which Whitaker develop an economic policy that will fi­ rousing music played by no less than 11 Chambers presented what Mundt dubbed nally halt the growth of inflation, these bands. the "Pumpkin Papers." These hearings :figures leave no doubt that part of our In addition, a carnival is coming to were but a prelude to his later work in concern must be directed to the farmer town complete with cotton candy, hair­ the Senate as acting chairman of the and his economic difficulties. raising rides and the inevitable games of Army-McCarthy hearings when televi­ We all benefit from a strong farm skill for sporting folk. There is even a sion was in its early days. community, and we will all benefit from chance that local firemen will demon­ One of his lasting legacies is the Earth an economic policy that helps make strate the latest :firefighting tech­ resources observation system-EROS-­ these farms strong. I greatly thank Mr. niques. Data Center in Sioux Falls, S. Dak., Dilts and Mr. George for providing me The proceeds from the event are tar­ which processes and disseminates photo­ with these figures. They were a great geted toward community projects, Pre­ graphs and other data relating to the help to me, and I know they dramatize viously, thanks to the homecoming reve­ land areas of the Earth obtained by sat­ this issue for all the Members of the nues, Rockdale has been able to pur­ land areas of the Earth obtained by sat­ House. chase such vital equipment as a new tellite. The foresight of this center will fire engine and an ambulance. be recognized in future generations, if I am sure that thanks to the citizens only for the agricultural data it will ob­ ROCKDALE PLANS HOMECOMING of Rockdale, this year's celebration will tain for a hungry world. be a great success and I want to take Part of his vision in preserving our HON. GEORGE M. O'BRIEN this opportunity to congratulate all the American way of life was communicating OF ILLINOIS people who have worked so hard to make it to other nations, not only through the IN THE HOUSE OP REPRESENTATIVES this event a reality. Voice of America, but also through direct communications with our friends. He was Wednesday, August 21, 1974 a staunch advocate of and participant Mr. O'BRIEN. Mr. Speaker, Rockdale, in the North Atlantic Treaty Organiza­ DI., a village of 2,085 residents in Will REPRESENTATIVE ABDNOR EULO­ tion's association of parliamentarians. County, is planning its ninth annual GIZES THE LATE HONORABLE Even more important was his early stress homecoming for Labor Day weekend. KARLE. MUNDT on the necessity to curtail nuclear weap­ This gala event is a popular one in ons through international agreements as towns throughout Illinois and marks one one of the cornerstones for building of the high points of the summer for resi­ HON. JAMES ABDNOR peace in the world. dents. It is a time for old and new resi­ OF SOUTH DAKOTA A premier orator in the Halls of Con­ dents to get reacquainted and make new IN THE HOUSE OF REPRESENTATIVES gress known for its declamation, both as friends. It also serves the dual purpose Wednesday, August 21, 1974 Congressman and as Senator, Karl of enabling towns to raise money for Mundt attained great distinction, not worthwhile civic projects. Mr. ABDNOR. Mr. Speaker, this past only in his own right, but for the State of But above all, it is a time for tracing weekend South Dakota and the United .South Dakota which he served long and the roots of the town's heritage. The States lost one of its great legislative . well. Although his fine career was cut Rockdale homecoming is no exception. leaders in the death of former U.S. Sen­ -short by a tragic stroke, his ability, his One subject that always comes up at ator Karl E. Mundt. Beginning a career dedication, his statesmanship, and his in Government in these Halls in 1938, he this time is the Mound. It was the Mound served here 10 years, then was elected to leadership will long be remembered as that made Rockdale stand out from other the other body where he conducted his exemplary in the field of government and towns and it was the Mound that drew office with great distinction until felled politics. industry to the village. by a stroke. Today he is being buried in The obituaries follow: When the last great glacier passed his hometown of Madison, S. Dak. [From the Washington Post, Aug. 17, 1974] through the region around 500 to 600 Karl Mundt dedicated himself to FORMER U.S. SENATOR KARL MUNDT, B.C., it left behind a huge clay mound people as a school teacher in Bryant, REPUBLICAN OF SOUTH DAKOTA, DIES that towered over 60 feet into the air. S. Dak., continuing his career at Gen­ (By Edward A. O'Neill) According to historians, medicine was ac­ eral Beadle State Teachers College in Karl Earl Mundt, 74, who came out of the tually practiced for the first time in the Madison where he established his per­ corn-and-hog prairie of South Dakota where State at this site. manent home. In addition to helping he had been a teacher of speech to become Later on, the Joliet Drain and Tile one of the most vocal congressional critics of found the National Forensic League, he communism, both foreign and domestic, died Co. opened a plant there to make use of was an ardent sportsman and conserva­ the fine potters' clay it contained. The yesterday at Georgetown University Hospital. tionist, and served not only on South Da­ The cause of death was given as cardio­ town was first chartered by an employee kota's Game and Fish Commission, but respiratory arrest. Sen. Mundt had entered of that company. as a State and National officer of the the hospital Monday. By the 1870's, pioneer farmers had set­ Izaak Walton League. Sen. Mundt, who served in the House and tled in Rockdale and the Rock Island After coming to Congress he began a the Senate for a total of 34 years, was as Railroad had run a line through town fight against communism and for the familiar to television viewers in 1954 as Sen. linking it to important markets. ' preservation of American freedom that Sam Ervin was during the Watergate hear­ Rockdale was officially incorporated as ings, presiding over the Army-McCarthy was to last the rest of his life. He was hearings that presaged the fulminating Wis­ a village on January 17, 1903. The Mound deeply concerned about the grave threats consin senator's downfall. is gone now-Larkin Avenue runs past to our American system of government Sen. Mundt ran the hearings after Sen. the site where it stood-but Rockdale and dedicated his tenure to its staunch Joseph McCarthy stepped down during the continues to be a 20th century town with defense. dispute over charges that the Army had been 19th century charm. Its people are The legislation establishing the Voice pressured to give preferential treatment to friendly and hard-working, but they also of America bears his name. So does one draftee Pvt. C. David Schine, who had been know how to have a good old-fashioned an unpaid consultant on McCarthy's staff. of the first bills curtailing and combat­ The Army-McCarthy hearings, however, celebration. There homecomings have ting communism-the Mundt-Nixon did not mark Sen. Mundt's first appearance clearly demonstrated this fact time and measure which became the foundation of in the spotlight. He was acting chairman of again. the internal security law. Other Mundt the House Un-American Activities Commit­ The 4-day event planned for this year legislation created UNESCO, amended tee in 1948 when it conducted investigations promises to top all others. A major ac­ the Soil Bank program to provide for into alleged Communist infiltration into the tivity is planned for each day and there conservation reserves, provided for cul­ State Department and other government will be something for everyone, from agencies. tural exchange and overseas informa­ The investigation resulted in the indict­ tots to grandpops. tion programs, and pioneered the pro- ment of Alger Hiss for perjury and also 29742 EXTENSIONS OF REMARKS August 21, 1974 brought Rep. Richard M. Nixon, then a In those pre-World War II days, Sen. put out all the stops in misrepresenting our freshman Congressman, onto the national Mundt was a strict isolationist. During his action as being a retreat in the fight against scene. Sen. Mundt, who was something of a second House term he was made a member communism." He was during this period the wordsmith, was credited for coining the of the Foreign Affairs Committee on which his only senator to attend a mass meeting in label "Pumpkin Papers" for records key wit­ votes and his comments were invariably Constitution Hall of people opposing cen­ ness Whitaker Chambers had hidden in a against U.S. involvement. He voted against sure. pumpkin at his farm near Westminster, Md. Lend-Lease, extension of the Reciprocal Sen. Mundt did not retreat in his own per­ Sen. Mundt was a firm supporter of Sen. Trade Agreement, and, like most Republicans sonal fight. On the Foreign Relations Com­ McCarthy, fought against the censure resolu­ of that day, the extension of the Selective mittee, he opposed the consular treaty with tion the Senate adopted in 1954 against his Service Act which passed by one vote. the U.S.S.R., sale of surplus grain to Com­ colleague, and worked closely with him until With the entry of the United States into munist countries, vigorously supported U.S. Sen. McCarthy's death in 1957. the war after Pearl Harbor, Sen. Mundt began involvement in Viet nam and spoke out Although Sen. Mundt's activities during recognizing the international responsibilities loudly and vigorously against any thaw­ the McCarthy period were the most publi­ of the country and was active in getting ing of the cold war. cized, he had other, broader accomplishments legislation passed in 1944 in support of the In 1968, his last full year in the Senate, on his legislative record. United National Relief and Rehabilitation Sen. Mundt got a 95 per cent rating from With the late Sen. H. Alexander Smith (R­ Administration and sponsored a resolution the Americans for Constitutional Act ion. N.J.). he sponsored legislation that gave that committed the United States to mem­ There was another side to Sen. Mundt, formal status to the Voice of America and bership in the United Nations Economic and bred and developed in his home country of authorized U.S. information and cultural Social Council, an organization whose activi­ South Dakota. He was an enthusiastic activities abroad, activities now conducted ties in later years he sometimes criticized. hunter of game birds and a fisherman of the by the U.S. information Agency. Sen. Mundt's first brush with the Commu­ top grade (he was at one time national vice He was an ardent conservationist, who as nist world came in 1945 when he led a four­ president of the Izaak Walton League) but a long ago as 1942 tried to get legislation to member subcommittee of the Foreign Affairs preservationist as well. He kept constant stop pollution of rivers and streams and later Committee to Moscow, Warsaw, Prague, and pressure on the Department of. the Interior to protect wetlands in various parts of the Belgrade, a group that returned highly criti­ to get better protection of endangered spe­ Patuxent National Wild Life Center. cal of the Soviet Union. He already was a cies of wildlife and is credited with the ac­ Sen. Mundt was a typical Midwest Repub­ member of the special House Committee on tions that seem to have saved the whooping lican of the old school, whose voting rec­ Un-American Activities, then headed by Rep. crane. In 1969, he was awarded the first gold ord usually stood high with the conserva­ Martin Dies (D-Tex.) and had led the suc­ medal of the World Wildlife Fund for his tive Americans for Constitutional Action. His cessful move to make the committee a per­ conservation efforts. only shortcomings in ACA's eyes were his manent one. Sen. and Mrs. Mundt were married in 1927 votes on farm legislation, which virtually His domestic anti-Communist activities and had no children. He was an only son as all the time were in support of beneficial leg­ began in 1948 when with Nixon, a fellow was his father. Two sisters predeceased him. islation for the farmer. member of the Un-American Activities Com­ The senator's body will be at Lee's Funeral On November 23, 1969, Sen. Mundt suffered mittee, he set out to curb American members Home here through Sunday. It will be taken a severe stroke that affected his left side and of the party. Monday to Madison for burial Tuesday. grievously impeded his speech, a harsh blow He and Nixon introduced a bill that, to a man who prided himself on his ability as among other provisions, required the regis­ [From the Washington Star, Aug. 17, 1974) a public speaker and held membership card tration of members of the Communist Party, No. l in the National Forensic League. USA. It passed the House 319-58, but was KARL MUNDT DIES AT AGE 74, SERVED 34 YEARS Sen. Mundt spent a year in the Bethesda delayed in the Sena.te and had not come out IN CONGRESS Naval Hospital before returning to his Capi­ of committee there when Congress ad­ (By Richard Slusser) tol Hill home at 122 Schott's Court NE. He journed. Portions of the bill, but not the Karl E. Mundt, 74, the conservative South never again took his seat in the Senate. registration section, were incorporated in Dakota Republican senator who was felled In 1970, the Republican leadership in the the Internal Security Act of 1950, passed over by a stroke during his fourth term and did Senate tried to get Sen. Mundt to resign so President Harry S. Truman's veto. not seek re-election in 1972, died yesterday that a Republican could be appointed to re­ When Rep. J. Parnell Thoms (R-N.J.) ran in Georgetown University Hospital of chest place him by the South Dakota governor. into trouble over his involvement in dubious congestion. But the Senator's wife, Mary, stoutly re­ World War II contracts, then Rep. Mundt Mundt, who entered the hospital Monday, sisted the pressure. Sen. Mundt served out took over as acting chairman of HUAC. In the had suffered several strokes. After the first, his term, and was replaced in the 1972 elec­ summer of 1948, the Committee began an in­ in 1969, he was unable to return to the Hill, tion by James G. Abourezk, a Democrat. vestigation of so-called Communist infiltra­ but remained in office while his wife, the Sen. Mundt's last formal action in the Sen­ tion into the federal government. It uncov­ former Mary E. Moses, insisted he would ate was to provide Minority Leader Hugh ered little such infiltration until the appear­ recover and even run for a fifth term. Scott (R., Pa.) in October, 1971, with a proxy ance of Whittaker Chambers, a former senior After his illness, his staff ran the office letter signed in sh aky handwriting that Scott editor of Time magazine, who said he was a here. Robert L. Mccaughey, Mundt's admin­ used several times. former Communist. Chambers confronted istrative assistant for many years, watched Karl Mundt was born in Humboldt, S.D., a. Alger Hiss, president of the Carnegie Founda­ over his interests in the Senate. small farming community in the southeast­ tion and former high State Department offi­ In 1970, there was some pressure in South ern corner of the state near Sioux Falls, on cial, accusing him of passing secret informa­ Dakota for his resignation, but nothing came June 3, 1900. His father, Ferdinand, who had tion to the Soviets. of it. In February of 1972, well before the a hardware store, had come there from Iowa Chairman Mundt and other senior mem­ state's filing deadline for candidates, Senate in the days when the state was a part of the bers of the Committee at first were loath to Republicans stripped him of his positions Dakota Territory. (South Dakota became a accept Chambers' testimony but Rep. Nixon on three key committees. state in 1889.) Sen. Mundt grew up on the persisted in pushing the case-the first of He had been the ranking Republican on prairies and learned to hunt and fish, diver­ his "Six Crises" he la1ter wrote about-and the Government Operations Committee and sions he was to follow enthusiastically until Hiss subsequently was convicted of, perjury the second-ranking GOP member on the he became ill at 69. before the Committee. Foreign Relations and Appropriations com­ He attended Carleton College in Northfield, In 1948, Sen. Harlan Bushfield, a Republi­ mittees. Before his 1948 election to the Sen­ Minn., where he got an A.B. degree in 1923. can, who then represented South Dakota, ate, he served five terms in the House. After graduation he taught speech and social decided not to run and Sen. Mundt easily Mundt received high ratings for his votes science in the Bryant, S.D., high school and won the Republican nomination and the on legislation favored by the National Asso­ was later the town's school superintendent. subsequent election. He was re-elected for ciation of Businessmen, the National Secur­ He got a master of arts degree from Columbia three succeeding terms, and on his departure ity Index of the American Security Council University in 1927. from the Senate was the third ranking Re­ and Americans for Constitutional Action, From 1927 to 1936, Sen. Mundt was chair­ publican in that body. and ratings of 50 and 55 percent in 1968 and man of the speech department and an in­ In the Senate, Mr. Mundt soon resumed 1969 by the National Farmers Union. structor in social sciences at General Beadle his anti-Communist crusade as a member of Mundt a"'ld former President Nixon-then State Teachers College at Madison, S.D. On the Permanent Investigating Subcommittee, members of the House-were co-authors of his birthday in 1969, President Nixon dedi­ chaired by Wisconsin's Senator McCarthy. the Mundt-Nixon bill passed by the House cated the Karl and Mary Mundt Library at During the bizarre period of Sen. Mc­ in 1948. The bill became one of the five that the institution, now Dakota State College. Carthy's investigations, Sen. Mundt was made up the McCarran Internal Security Act It was the President's first appearance on a largely in the chairman's shadow. But when of 1950. campus after a long period of student unrest. the Army and the Eisenhower administra­ In 1948 Mundt was acting chairman of the Sen. Mundt, besides teaching, was engaged tion put their backs up in the matter of Pvt. old House Un-American Activities Committee in a loan and investment business with his Schine, Sen. Mundt found himself in the in the absence of Rep. J. Parnell Thomas, R­ father in Madison. During this period, he chairman's seat when Sen. McCarthy step­ N.J., during hearings that brought out in­ also got his first polltical job, being appointed ped down to become a prosecuting witness. formation of activities of Alger Hiss, who was to the state Fish and Game Commission. In In his opposition to the McCarty censure eventually convicted on perjury charges. 1938 he ran for the U.S. House of Represent­ resolution, Sen. Mundt said it would mean Before World War II, Mundt was regarded atives and was elected. "every Communist at home and abroad will as an isolationist, voting against extending .., : t f August 21, 1974 EXTENSIONS OF REMARKS 29743 the Reciprocal Trade Agreement Act and 6th anniver~~rY. of the Soviet-led inva­ you marvel indeed at the wisdom of God. His against the Selective Service Act. sion and occupation of the freedom­ wonders are right in front of you. And when Among other votes, he opposed Lend..:Lease loving country of Czechoslovakia, a day you think about it further, you know that in 1941 (but supported the war effort after living and dying is part of a Divine Plan. the attack on Pearl Harbor), and opposed the which has been appropriately called the And as one grows older and .1ust a little bit $4 million loan to Great Britain in 1946, but Soviet Day of Shame, August 21, 1968. wiser, one realizes that each of us is part of ·he supported the Truman Doctrine the fol'.. On that day 6 years ago, the Soviet God's infinite wisdom. The Bible is a great lowing year. He also introduced the House Union violated the key principles of in­ source of Divine knowledge; it is indeed the resolution that called for U.S. membership in ternational law and rocked the very greatest book of wisdom. the United Nations Education, Scientific and foundations of the United Nations Char­ Cultural Organization. ter. In 1954 Mundt served-reluctantly-as act­ ing chairman of the Senate Investigating The continued Soviet occupation of PENSION REFORM subcommittee that inquired into the feud Czechoslovakia even today is another between McCarthy, the committee chairman, violation against the right of a small and the Department of the Army. country for self-determination and self­ }{ON. J. EDWARD ROUSH The findings of Mundt's committee were destiny. handed to a special committee headed by That is why I ·join with the hundreds OF INDIANA Sen. Arthur V. Watkins, R-Utah. The Wat­ of thousands of Americans of Czech and IN THE HOUSE OF REPRESENTATIVES · kins committee's recommendations led to the ~ed?7-esday~ August 21, · 1974 Senate voting in 1954 to condemn McCarthy Slovak descent and millions of freed om for failing to cooperate with a 1952 subcom­ loving people throughout the world in Mr. ROUSH. Mr. Speaker, every year mittee investigating his personal finances supporting the people of Czechoslovakia one hears of thousands of employees who and for a.busing members of the Watkins in their effort to achieve the withdrawal have lost pensions from businesses·. committee, which had acted as a sort of of Soviet troops from Czechoslovakia. grand jury .in the censure action. Many of these people have given a great Mundt was one of 22 Republicans who deal of time and effort to their compa­ voted against the Senate condemning Mc­ nies. People lose their pensions for a Carthy. Early in the investigations, Mundt BIBLE'S WISDOM variety of reasons. Businesses close and said, "Joe (McCarthy) is one of the best little money is left because of misman­ friends I have in the Senate." aged pension funds or because of other In 1962, Sen Mundt wrote of his first 25 HON. JOHN P. MURTHA reasons beyond employees' control. years in Congress. He said the t oughest as­ OF PENNSYLVANIA Many have no pension because they signment he ever received was the temporary IN THE HOUSE OF REPRESENTATIVES chairmanship of the Army-McCarthy hear­ have gone from one job to another. Job ings. "Running that investigation and hear­ Wednesday, August 21, 1974 mobility has helped tl1is along so that ing on an impartial and object ive basis some people do not spend 25 years with meant that our committee couldn't please Mr. MURTHA. Mr. Speaker, I have one company and thus lose their pension anyone. Emotions ran high, and so did preju­ been privileged to know Joseph Pencek for changing their jobs. dices. One day as many as 5,000 telegrams for a number of years. He is a man of The 93d Congress has changed this from across the nation hit my desk. Most quiet strength that has been a great help and is today moving forward to accept of them were unhappy about something­ to many people and an outstanding the challenge of pension reform. After either I was too hard on McCarthy or I was credit to the Johnstown community. too pleasant to him. This experience made The source of some of Mr. Pencek's 3 years of vigilance, H.R. 2 has come the tough spot of cp.airing the Hiss-Chambers strength was revealed in a recent _news­ before our Congress. I believe it goes a episode seem easy by comparison." long way in correcting the present sit­ But, he added, "I have found the public paper item. I would like to present that uation. to be unfailingly fair once it is provided article to the House since I believe it is _ Some of the important provisions are as with the basic facts of an issue or problems." something all the Members., and all 'follows.: First, no employer would . be · Mundt was born in Rumbold, S.Q.., the readers of this RECORD, can benefit from: ·forced to offer a pension plan; however, son of a hardware merchant who later owned . BIBLE'S WISDOM a real estate and insurance business in if he did he would have to follow the Madison, S.D. · (By Joseph Pencek) Government prescribed standards. The After receiving a B.A. degree from Carle­ JoHNSTOWN.-Recently a friend of mine bill would guarantee that each employee ton College in Minnesota, he taught high was talking about his father. He said that over the age of 24 with 1 year on the job school speech and social science for a year years ago, when he was a youngster his dad be permitted to join. before beginning three years as school super­ called him into the study and said that he intendent in Bryant, S.D. During that time had a gift to give him. It was on the occasion Vesting is a guarantee that the worker he completed studies for an M.A. degree at of his 16th birthday. has a right to his pension. There are Columbia University in 1927. His father reached into his desk and gave three vesting options available to the Mundt next moved to Madison, where he him a Bible. His father told him that the employee. Full vesting at the end of 10 was speech department chairman and social Bible was the greatest book ever written. years service with no vesting until then. science instructor at Gen. Beadle State The Bible was handed down to each first At least 25 percent vesting at the end of Teachers College (now South Dakota State son, and this particular Bible was indeed 5 years, increasing 5 percent in each of College). From 1936 until 1958 he was sec­ an old one. retary-treasurer of the Mundt Loan & In­ My friend said, "Joe, I've treasured that the next 5, and 10 percent in each of the vestment Co. in Madison. Bible all my life, and next week, it will go next 5 years, so that an employee is fully A former member of the South Dakota Fish to my son who will be 16 years old." vested in 15 years. At least 50 percent and Game Commission, Mundt was a state That Bible has sustained him in time of vesting when an employees' age and president and national vice president of the need, worry and sickness, my friend said. years of servi-ee reach 45 with 10 percent Izaak Walton League. He was a 32nd degree My friend told me that his father died re­ added in the next 5 years to full vesting. Mason. cently at a ripe old age, but before he. died Highly regarded as an orator, he was a he spoke of how life had been good to him However, the conferees modified this to cofounder of the National Forensic· League and how proud he was of his childr~n. of protect younger workers requiring that and its president for more than 30 years. how they respected their elders and led a 'in no event would a worker who has been He also edited the leagues magazine, "The . good Christian life. employed for more than 10 years be less Rostrum." Now this person is entering that stage in than -50 percent vested and 100 percent He is survived by his wife. They had no life which we often call the early twilight ·vested after 15 years regardless of age. children. years. As we spoke, h.e mentioned that all of The funding procedures would require his children had a Bible given to them, for he had six children; but he kept the custom the company to make annual minimum THE ANNIVERSARY OF SOVIET of the sixteenth birthday. He was indeed a contributions to the funds. To cover the 'OCCUPATION O'F CZECHOSLOVAKIA proud father. cost of pension plans in the past the As I left him and continued on my way, I companies would ha·ve 30 to 40 years de­ started thinking of what Huxley said. "The pending on the time their plan went into HON. JOSEPH P. VIGORITO Bible has been the Magna Charta of the peo· effect. ple, especially the poor and the oppressed. OF PENNSYLVANIA If a company would go bankrupt or Down to modern times no state has had a IN THE HOUSE OF REPRESENTATIVES constitution in which the interests of the close, a special termination insurance Wednesday, August 21, 1974 people are so largely taken into account. The system would go into effect to insure the Bible is the most democratic book in the pensioner of his money. Companies Mr. VIGORITO. Mr. Speaker, today, world." would pay premiums into this fund set at the free world sadly commemorates the Yes, it is true; when you think about it, $1 per participant in single employer 29744 EXTENSIONS OF REMARKS August 21, 1974 plans and 50 cents per participant in that day in August also brings an em­ ter, we still have a serious energy prob­ multiemployer plans. barrassed recognition of the fact that lem, and our energy conservation efforts If an employee changed his job the the free world has yet to enforce the must continue. It is estimated that the portability clause, which allows an em­ United Nations Charter. daylight saving time experiment resulted ployee to transfer his seniority and In 1970, I gave my full support to in a 1 percent reduction in electrical con­ money accumulated from his first job to House Resolution 718 condemning the sumption. That translates in a savings of his second job, would be possible with the Soviet Union's action. Today I renew my about 14,500 barrels of oil a day, 106 mil­ agreement of the present and former support for the people of Czechoslovakia lion cubic feet of gas, 9,650 tons of coal, employer and the person involved. in their efforts to expel the Soviet troops and 24,000 barrels equivalent of nuclear Also, in the event of being self-em­ from their land. and hydro power. From a conservation ployed and being under a Keogh plan this standpoint, total savings amount to bill would raise the tax deductible 100,000 barrels per day. amount of what an individual puts in his Even under the exemption of this bill, fund to 15 percent of his earned income DAYLIGHT SAVING TIME substantial energy savings will still be • not to exceed $7,500. AMENDMENT realized. April and March offer the po­ Companies would be allowed to use for tential of larger energy savings of elec­ part of their tax deductions only pensions HON. JOHN B. ANDERSON tricity and will partially offset increases of 75,000 or 100 percent of pay in highest in gasoline consumption compared to the paying 3 years of employment which­ OF ILLINOIS winter months. Retaining April and ever is lesser. It also permits individuals IN THE HOUSE OF REPRESENTATIVES March under the daylight time system not covered by qualified or Government Wednesday, August 21, 1974 will provide a continuing working model of the energy saving potential of YRDST. pension plans to take a deduction of up Mr. ANDERSON of lliinois. Mr. to 15 percent of their earned income or As FEA's acting assistant administrator, Speaker, I could not due to illness be in Roger W. Sant, has testified: $1,500 whichever is less. the Chamber on Monday. However, I Responsibility to administer these laws support H.R. 16102 to amend the Emer­ We feel it is important to extend the ex­ is set aside to different age~cies. The periment, for only by doing so, will we be gency Daylight Saving Time Energy able to thoroughly evaluate the impact of termination insurance system is left to a Conservation Act of 1973 by exempting the year round DST in the overall energy new Pension Benefit Guaranty Corpora­ the four winter months of November picture. tion within the Department of Labor, through February from year-round day­ while the other aspects are left to various light time. I introduced an identical bill, I am pleased, Mr. Speaker, that there segments of the .Departments of Treas­ H.R. 16450 on Thursday, August 15. is a consensus of agreement on this com­ ury and Labor. promise which will enable us to continue Like most of my colleagues, I received the experiment, realize continued energy a large volume of mail from my constit­ savings, and at the same time, eliminate uents last winter~ mostly from concerned the most objectionable aspects of the parents, complaining of the year-round experiment. I urge adoption of this bill. THE SOVIET DAY OF SHAME daylight time Federal law and the in­ convenience and dangers it posed during HON. WILLIAM E. MINSHALL early morning hours of darkness. As a OF omo parent myself with school-age children VOTERS REGISTRATION IN THE HOUSE OF REPRESENTATIVES who ordinarily walked to school, I shared and sympathized with the con­ HON. WILLIAM L. HUNGATE Wednesday, August 21, 1974 cerns of these troubled parents. Not only OF MISSOURI Mr. MINSHALL. Mr. Speaker, al­ were the risks to schoolchildren appar­ though August 21 is known as the So­ ent to me, but the early morning dark­ IN THE HOUSE OF REPRESENTATIVES viet Day of Shame, this day also brings ness also seemed to carry with it adverse Wednesday, August 21, 1974 to mind the spring of freedom for the psychological effects. Having to get out Mr. HUNGATE. Mr. Speaker, Ameri­ Czechoslovakian people. In February of of bed and start the morning routine in cans will soon have the opportunity to 1968, Alexander Dubcek was elected as what seemed like the middle of the night participate actively in the course of their the Communist Party Chief and imme­ was difficult to adjust to. "Daylight drag" country's future by going to the polls on diately started introducing reforms. The was almost as depleting as "jet lag" dur­ election day. By voting for those indi­ Soviet Unio::i which had controlled ing these dark winter mornings. Never­ viduals who truly uphold the public trust, Czechoslovakia since 1948 felt threat­ theless, like other patriotic Americans the American people are able to keep the ened by Dubcek's liberalization program during the energy crisis, I was willing to reins of government in their hands, just and his popularity. Consequently, on bear my share of inconvenience and as the Founding Fathers had intended. August 21, 1968, Russian troops with sacrifice, and I accordingly advised my Free elections are the trademark of their tanks and machine guns marched constituents to give it a chance while we popular government-a government into Czechoslovakia. studied the actual fuel savings which where the people rule through their Dubcek was himself a socialist, but he might be derived from this system. elected representatives. realized that any government must re­ I was therefore relieved and heartened However, in order to participate in spect the traditions of the country. The when our energy experts came to the Hill November's elections, it is necessary that traditions of the Czechoslovaks are root­ last week to recommend a modification in every eligible voter register. This is the ed in freedom. Therefore, the abolish­ this 2-year experiment which began last first step in taking part in the demo­ ment of literary and press censorship, January, namely that we return to stand­ cratic electoral process. the release of victims from the Stalinist ard time during the winter months of All voters should take care to learn terror trials, the lifting of travel and November through February. The testi­ the deadline for registration. The voter trade restrictions with the West, the al­ mony of two Federal Energy Administra­ registration deadline in Missouri is Oc­ lowance of labor strikes and the easing tion officials was based on a Department tober 9. I hope the citizens of our "show of religious restraints were welcomed en­ of Transportation study of the daylight me" State will show all America that thusiastically by the people during the time experiment released on June 28 of Missourians care about their government this year. 7 ¥2 months of Dubcek's leadership and and have an active interest in its opera­ not easily relinquished when Russia dis­ It should be noted that the bill before tion. I urge all Americans, especially played her military might. us today would modify and not repeal those in Missouri, who have not regis­ Brief as the period was, it still re­ the year-round daylight saving time ex­ tered, to do so now. We should all remind newed the fire of freedom that burns periment. I agree with our Federal energy members of our family, our neighbors, steadfastly in the hearts of the Czecho­ experts that it is important to continue and our friends to register by the dead­ slovakian people. Their valiant effort the experiment in modified form. While line and vote on Tuesday, November 5. to regain their human rights is an in­ we are not now confronted with an energy Whether Democrat, Republican, or Inde­ spiration to us. However, the memory of crisis of the same magnitude as last win- pendent, whatever your political belief, August 21, 1974 EXTENSIONS OF REMARKS 29745 remember that the franchise is a hard­ JOHN EXTER TALK TO THE REPUB­ at fixed interest rates, for the most part in won right and if we are to keep it, we LICAN STEERING COMMITTEE mortgages. As short term interest rates rise, they become very vulnerable. But so do sav­ must use it. ings banks, and even commercial banks. HON. STEVEN D. SYMMS There is an enormous amount of this bor­ OF IDAHO rowing short and lending long in the dollar. A particularly difficult problem is that an IN SUPPORT OF H.R. 11242 IN THE HOUSE OF REPRESENTATIVES enormous number of people and firms and Wednesday, August 21, 1974 even governments have borrowed short and lent or invested long in foreign currencies Mr. SYMMS. Mr. Speaker, on June 19, across these floating exchange rates. In other HON. ROBERT B. (BOB) MATHIAS 1974, the distinguished economist, John words people have borrowed dollars by the OF CALIFORNIA Exter, addressed a dinner meeting of billions and bought sterling, lira, yen, Deut­ IN THE HOUSE OF REPRESENTATIVES the House and Senate Republican Steer­ schemarks, French francs, Swiss francs or what have you. So they now have dollar lia­ Wednesday, August 21, 1974 ing Committees. Mr. Exter is a former bilities and foreign currency assets. To meet director of the First City Bank in New those liabilities they would have to sell for­ Mr. MATHIAS of California. Mr. York and a former Governor of the Fed­ eign currencies for dollars in a foreign ex­ Speaker, in just 2 short years the Olym­ eral Reserve Board. He is now a private change market in which the rate for the pic Games will be held in Montreal, consultant. For the benefit of my col­ foreign currency may not be floating, but Canada. Many of us here in Congress leagues who are concerned about our sinking. These are just some of the illiquid have been cognizant of the fact that monetary crisis, I will read into the debtors in the system. adequate steps must be taken to assure RECORD the text of Mr. Exter's speech. We now have a sizable debt burden in all that the United States sends the best currencies, some part of which cannot pos­ Following is part two; part one appeared sibly be paid out of rising production and teams possible to these Olympic Games. in yesterday's RECORD; part three will productivity. Some part of this burden of Several ideas on how to best accomplish appear in tomorrow's RECORD: debt must be liquidated before we can get this are in various stages of the legisla­ JOHN EXTER TALK TO THE REPUBLICAN back to any kind of monetary stability. But tive process at this time. STEERING COMMITTEE the central banks of the world do not want I have had the great honor of repre­ Let me tell you of others who have not debt liquidation; it is too painful. So they senting my country twice in the Olym­ awakened, for example, all those who bold go on creating more debt all the time. They pics, and I feel that I have some knowl­ deposits in banks, or savings banks, or sav­ themselves become the Peters from whom the edge of what would be the best approach ings and loans. Just to show you what foolish illiquid debtors borrow to pay the Pauls. We to take in accomplishing the task of se­ Peters they are, let us suppose they are earn­ have seen it recently. Franklin National Bank ing 6% or 7% on those deposits-and many could not pay its debts so the Federal Reserve lecting our best men and women for the earn less, in fact, nothing on demand de­ stepped in and lent heavily to it to keep games in Montreal. My bill, H.R. 11242, posits-the rate of inflation ls 11 % or 12%, its doors open. The Fed prevented debt liqui­ has wide support from practically all of and they have to pay taxes on the interest in­ dation from taking place. If it happened to the SPorts organizing bodies. The latest come. So they are falling behind steadily, another bank, especially a bigger one, the expression of support comes from the every single day. Almost any IOU you buy Fed would do Lt again. Central California Association of the today causes you to fall behind and lose out Question. John could I interrupt and ask in the race. In other words, we are all los­ you one question. How can Chairman Burns Amateur Athletic Union. Their resolu­ say that he is talking about a tight money tion, endorsing my bill, is included in ing our incentive to work for money that depreciates day by day in the market place policy when he puts out a billion to the the accompanying letter from Mr. S. B. and whose rate of interest does not even Franklin National Bank? Did that billion "Si" Tyler, secretary-treasurer of the compensate for its loss of value in the mar­ just come out of thin air? CCA-AAU: ket place. The people who have so far NoTE. Another discussion with several peo­ AUGUST 14, 1974. awakened in the system are only a tiny ple talking. Hon. BOB MATHIAS, fraction of 1 % . I was making the point that the Federal U.S. Congressman, Longworth House Office Now what do you do when you awaken? Reserve is locked into an expansionism it Building, Washington, D.C. You get out of paper and go for gold, the dares not stop. Arthur Burns dares not let DEAR BOB: Last night, August 13, the regu­ supreme store-of-value commodity money. these failures happen, so he ls forced to go lar quarterly meeting of the Central Cali­ Just think how few people have gone for on expanding his own liabilities, his own fornia Association of the Amateur Athletic gold. I thought a lot of foreign central bank­ IOUs, mostly by buying the IOUs of the Union was held, and was well attended by ers would go for gold, particularly after Nixon government, and this keeps the whole sys­ the Board of Managers, representing sixty­ closed the gold window and more particu­ tem expanding a.t a more and more rapid two clubs who sponsor most of the amateur larly after the two-tier system was ended rate. The expansion must accelerate all the sports under the Olympic movement. last November, so there was no longer an time. So do not think the Fed can slow in­ These people serving on the Board of Man­ official tier. To my surprise only a couple of flation down. It cannot. Inflation begins to agers represent more than one thousand small central banks have gone for gold. The have a life of its own. It must go on in order adults who are volunteers giving of their big ones, intimidated by one another and to avoid a collapse. All authorities get caught time and talents to promote amateur sports especially by the United States, have been up in it, so all central banks of the world here in the San Joaquin Valley. sitting on their dollars and watching them are now locked into this expansionism that During the meeting a lengthy discussion fall, fall, fall in value against gold. Yet they dare not stop. You may be sure they was held with reference to the legislation cov­ they have not bought gold. will keep it up as long as they can. Some dC ering amateur sports now being considered As I have already said, the oil producers them will succeed. If they do, they will pro­ by the Congress of the United States. It was have not yet awakened. They continue to . duce hyper-inflation in those currencies. In brought out that some of the legislation be­ pile up dollars. But they are very reluctant other words their IOU-nothings will ulti­ ing considered would put amateur sports Peters. They are putting their dollars for mately become worth nothing as they say under government control. Bob, we do not the most part into the Eurodollar market at they are, "not worth a continental". and need this. What we need ls a committee that call. I have just been to London and found then all debt denominated in those curren­ understands and knows what the meaning that enormous amounts, billions of them, cies will become worth nothing, too. They of amateur competition is, and that this are in that market on 48 hours notice. In my then liquidate all debt in those currencies committee be given the power to act in the view they are going to do otherwise before and start over again. settlement of differences between organiza­ too long. They are going to wake up and start We have seen this happen. The first time tions sponsoring amateur sports. to buy gold. in modern history was when John Law went The Bill you are sponsoring, H.R. 11242, How do we get out of this dilemma? We to Paris just after Louis the XIV died. Our was discussed at length, and the Board unani­ are living in a world in which in every cur­ history books call it the Mississippi River mously passed the following resolution: rency there is a burden of debt that cannot Bubble. It happened in our own country with "Be it resolved that the Board of Managers be paid. It would not be so bad 1f all debtors the continental dollar during and after the and the people they represent, within the had gone into debt at the same rate. But Revolutionary War. Then it happened again Central California Association of the Ama­ they have not. in France when the assignats became worth­ teur Athletic Union, do endorse the Amateur In every currency there are liquid debtors less at the beginning of the French Revolu­ Athletes Blll of Rights known as H.R. 11242, and the most liquid debtors are those who tion. Twice within my lifetime I have seen and ask the Judiciary Committee to act hold only gold, and have no indebtedness. the mark become worthless. All of us can favorably on it." The least liquid are those who have borrowed remember when De Gaulle slashed two zeros Sincerely, short and lent or invested long. Take our sav­ off the French franc after he took office and S. B. "SI" TYLER, ings and loans. Savings and loans are re­ I was in Brazil in 1967 just after they had. Secretary-Treasurer. quired by law to borrow short and lend long slashed three zeros off the Brazilian cruzeiro. O:XX--1875-Part 22 29746 EXTENSIONS OF REMARKS ' ·' · August 21, ·19 7 4 A country either starts over again with a new would, of course, produce an enormous num­ Answer. I think that is a· relatively minor currency or slashes zeros off the old. ber of failures and defaults and unemploy­ problem. It will not make much difference · I forecast many more hyperinflations in ment but it would get the debt liquidation because most Americans are not yet awak­ .the years immediately to come. Of the major over quickly and save the dollar as a cur­ ened, and gold ownership will not do it. The currencies I should say that the Japanese rency. In general, government and Fed inter­ proof is this. The Treasury in December yen is furthest along that route. vention will simply prolong the agony and relaxed the gold coin reg~lations very sig­ Question. What kind of time frame are you pain, and when I try to visualize the number nificantly. Last week I bought Austrian talking about? of years of pain and agony ahead, it is hard coronas. They are brand new re-strikes and Answer. I am talking about, say, the next to over-emphasize the enormity of the prob­ I bought them for only about an 8 % four or five years. lem. I come to you to try to give you the premium over the bullion price. I paid $166 It is harder to produce hyperinflation in problem as I see it. It is a bigger problem for them and, if I remember correctly, bul­ some currencies than in others, and it is than most people think it is. There is no lion was $156 on that day. If Americans had hardest in any currency in which there has easy way out, no panacea. this great thirst for gold the premium over been a very large amount of borrowing we must live through it. I tell my chil­ bullion would be way up. In other words, short and lending and investing long, or dren: I am old enough to have lived through these restrikes are already coming in fast borroWing short and investing in other cur­ World War I, the Great Depression, World enough to satisfy the demand. If you per­ rencies. The largest amount has been in the War II, the Korean War, the Vietnam War. mit Americans to hold gold I can imagine dollar. So it is going to be harder for Arthur You must live through something, too. We a few more Americans Will wake up. But not Burns and the Fed to produce hyperinflation shall live through it, but it will be tough for very many. It's not going to be like that tiger in the dollar than it will be for any other all those around the world caught up in the in the jungle. Americans are still drugged central bank. If you look at the problem ·consequences of the breakdown of debtor­ with Keyneslanism and Friedmanism. They internationally, as I do with my open econ­ creditor relationships. have been taught for years and years about omy model, the dollar has been sold short on Question. What happened when the mark the almighty dollar, that the dollar is as -an enormous scale. Peopie in the market completely failed? What trials did they go good as gold, that things are sound as a dol­ places of the world have borrowed tens and through? lar and all the rest. Most people believe that, tens of billions of dollars and used those Answer. Well, they had a depression, a so I do not think you need have any sig­ dollars to buy foreign currencies. They now large amount of unemployment. Many fac­ nificant concern. Ownership may give the sit with dollar liabilities on which the rate tories closed or reduced output. Lots of gold market a temporary psychological shot of interest is rising and foreign currency people lost everything. All Peters lost every­ in the arm, and that is all. It will not start assets on which they probably have sizable thing, those who had deposits or bonds or a run on banks. paper profits. Once those paper profits are government securities, or those who relied on Question. If you look at those who have threatened and begin to erode as happened ·pensions or insurance. They lost it all. been buying gold, there is only a very small with the yen, they start to get out. In the But then they started over again with a percentage able to buy any amount of gold. case of the yen they left it and tried to get new currency. The whole system was com­ If most people are out of work for even two back into dollars to pay off their dollar lia­ pletely liquid, no illiquid debtors, in fact, at weeks they cannot even pay their rent. They bilities. So the yen fell in foreign ·exchange first no debtors. After World War II the Ger­ don't even have a quarter. markets. mans had to start with a new currency. Of Answer. This is another answer to the I am going to make another forecast for course we helped them wtih Marshall Aid question. you: the dollar is going to become very and so on, but they then had a long period Question. Now wait, let me object to one strong in this floating exchange rate world: when they experienced very rapid economic thing there. There is an argument that peo­ Again, the time frame I have in mind is growth and became very prosperous. I was ple can afford to buy gold. There are pay­ the next one, two, three years. The dollar in Frankfurt just a week ago yesterday, and roll deductions in savings accounts, and one Will become the strongest of all paper cur­ Germany is booming and still has the lowest of the biggest frauds going is this damn rencies. I see other currencies weakening in rate of inflation, about 7 or 8% of all major ~u;1.tru~hfulness in the advertising of the a kind of domino ·fashion; the Ura· first (it countries. It has such a low rate of inflation federal government to be patriotic and· buy principally because many living Germans savings bonds. You can buy those little two has already weakened), the yen, sterling, the have gone through hyperinflation twice, so French franc, and so on. The next dominoes peso coins. What do they sell for? $9.75? $10? have a greater fear of it than others. They Any little guy that can afford to put aside could be the Deutschemark, the Swiss franc, have tried harder than any other major the guilder, the Belgian franc, and so on. I $10 a week can get: into gold. So you're not people to stop or slow inflation. So far it has shutting out a small saver. ·He is getting see the dollar becoming strong against every not hurt them economically. Their currency cunency that I can think of, but not against plundered as. John s~ld, putting his money as you know has gone way up in value which into a savings account, a passbo·ok account, ~~ . has made it hard for their exporters in lots This means the world is in a severe liquid­ or putting it into savings bonds, or what of ways, but they have been able to compete have you. That little guy, if he were like ity squeeze. Illiquid debtors are being on quality and delivery time. They deliver squeezed in all currencies, but there are that patronizing ad that they have about on time and deliver the right stuff so they those Crunch Cousins, like nincompoops, 'siore in dollars than in any other, so the have been allright. squeeze will be most severe in the dollar. that little guy could do the same thing as Question. Now what would happen if we Crunch Cousins. I will forecast again that in the dollar this owned gold and our citizens acquired a sig­ Inflation may turn into deflation for a while. Answer. A year ago we had an example, nificant amount of gold? just a year ago April. 'rhe Japanese per­ Arthur Burns and the Fed will not be able Answer. Those citizens who acquire the to keep all the illiquid debtors in dollars gold protect themselves, provided, of course, mitted their citizens to hold gold and ever alive, so we will have widespread failures the government does not someday take it since they have been selling gold, little gold and defaults, in other words, deep debt liqui­ away from them as Franklin Roosevelt did. bars in the department stores in Japan. dation of the 1929-'33 kind. Question. Is it not a deflationary move, Everybody bought. I would agree with Phil, Now, I come to what you can do about it. little people can buy little amounts of gold. though, to let people buy gold? As a matter of fact a lot of the gold ab­ You cannot do very much, I am sorry to Answer. No, it is not deflationary. If I buy say. The debt is there and we live in a world gold from you, you get my dollars and I get sorption in the world is by little people. The that requires debt to be paid. No one can your gold. Indians for instance-who are poorer than come along and wave a magic wan_d and get Question. No, but it soaked up capital. the people of India ?-have been absorbing rid of it without hurting creditors. They Answer. No, it does not soak anything up. enormous amounts of . gold over the years. must get hurt. In other words it is the You have the dollars now. Before I had the Right now they are disc-ouraging it because Peters who will get hurt in all of this. So dollars. India is really in deep trouble. But the Of course, Secretary Simon has said that French peasants, typically peasants every­ you personally should not be a Peter. You, where, little guys Will buy a little bit o! too, may get hurt. he might sell gold off which would be de­ The best overall approach for government flationary because the Fed would lose gold gold, and that all adds up. Still, Americans are going to be very slow_to wake up. would be to free the economy as much as certificates as an asset, but I don't believe possible. For example, let people hold gold. he would. I do not believe a word of it. I do I particularly hope the Congress will act to not think any central bank or even the Inter­ let Americans hold gold before the Arabs national Monetary Fund will sell gold to the FEELINGS IN AMERICA'S and other oil producers start to buy it, free market in this environment. What do HEARTLAND before they wake up because, once they do, you sell it for? Paper? they have such enormous buying power, Question. Well, John, my question is and so many dollars, that they would drive the I don't mean to stop you if you're not HON. J. EDWARD ROUSH gold price up and we Americans, if the through there, but, Percy Greaves just told OF INDIANA Congress is too slow, will not be able to me last week, he's probably a friend of IN THE HOUSE OF REPRESENTATIVES get much of it. yours, he says if we give people gold owner­ Apart from that almost everything that ship right now you run the risk of a.wakening Wednesday, August 21, 1974 I would suggest doing ls simply politically them to the panic that's before us and ca.us­ impossible. For instance, you ought to tell ing bloodshed in the streets. What do you Mr. ROUSH. Mr. Speaker, I believe the Arthur Burns to stop creating money. This think about that? feelings of the Nation are reflected in .A.ugust 21, 1974 EXTENSIONS OF REMARKS 29747 the people of Ligonier, Ind., a city of 3,500 bring its vast resources together so that LABOR 'DISTORTION OF CAMPAIGN people, where I spent several hours th~s they mav be more orofitablv utilized bY REFORM VOTE past weekend going from door to door the Congress -and the -American public. and talking to people on the street. . The annex .was proposed .and is being There is certainly a change of attitude built to fill this specific need. HON. JOHN B. ANDERSON since President Ford assumed office, a If we as Members must have more OF ILLINOIS feeling that perhaps now we can move space, then let us make more efficient use IN THE HOUSE OF REPRESENTATIVES ahead and solve some of the problems of the space we have, particularly the un­ Wednesday, August 21, _1974 that have plagued us for so long. der-utilized Congressional Hotel build­ The people expect, quite openly, better ing. Mr. ANDERSON of Illinois. Mr. Speak­ relations between the President and the The Library of Congress is one of our er, as one who has long advocated and Congress. At the same time, there is sort greatest and most valuable national in­ worked for meaningful campaign finance of a wait-and-see attitude. stitutions. We all recognize that fact. So reform legislation, I was shocked, an­ I felt, as I talked to the people in let us stop trying to sabotage it. The noyed, and insulted to read in the Ligonier, that they truly u~d<:rstood that Madison Annex is needed by the Library August 17, 1974, issue of the AFL-CIO simply changing the man s1ttmg as Pres­ of Congress, and we should be proud to News that I was supposedly a party to an ident would not automatically solve all of have authorized its construction for that effort to kill the Federal Election Cam­ our problems. specific purpose. paign Act Amendments of 1974 Nelson Rockefeller was repeatedly called flouting of UN peace forces, using napalm outlay total. It would appear that re­ against women and children and violating upon to make :final decisions of public ductions in appropriation bills may be ex­ the agreement reached in 1960 concerning trust affecting millions of people in every pected to about offset increases in man­ the governing of the Island of Cyprus. walk of life. What could be a more ap­ datory spending under legislative bills­ It is true that the whole affair was set off propriate or necessary background for in effect, a standoff. by the military idiots in Athens, but it is the second highest office in the land? In addition, it would appear that fur­ obvious even to the lea.st informed that Tur· key merely used this as an opportunity to There are far-reaching political vir­ ther net reduction of about $400 million ruthlessly take over a part of the Greek tues to the President's decision as well. in budgeted 1975 outlays will result from Island. As we know, they now hold one-third Because Mr. Rockefeller has always had failure on the part oi Congress to act on of the land on which they want to house one­ strong appeal to the broad political main­ various legislative proposals contem­ flfth of the entire population-that one-fifth stream of America, President Ford's plated in the budget-including both being Turkish Cypriots. proposals to reduce outlays and pro­ The United States has practically ad­ choice is further evidence of his inten­ posals for new or expanded programs. mited that they were in favor of creating an­ tion to be a President of all the people. The latest official 1975 budget outlay other standoff situation similar to those at And in the likely event of his confirma­ estimate of $305.4 billion may properly West-Ea.st Berlin, North-South Korea and tion I would expect Vice President Rocke­ North-South Vietnam by permitting the be adjusted to include the subsequent Turks to transgress the cease-fire agreement feller to be an unusually effective ad­ $900 million defense budget amendment, and prior to that not to intercede boldly to vocate-with Congress and the American and we can certainly clearly anticipate prevent Turkey from using sledgehammer people-of the Ford administration's additional costs due to inflation, in­ force against gnat-like opposition. domestic and foreign policy program. creased interest costs, and other uncon­ A strong stand by the Ohio delegation will Such a team gives this Nation the man­ trollable factors. serve the best interests of NATO, the goals power and the horsepower to lick our Excerpts from the August 16 budget of Democracy, the stemming of Russian in­ scorekeeping report follow: fluence on that Island and the placing into No.1 problem: inflation. the record America's strong opposition to the I applaud President Ford's decision to SCOREKEEPING HIGHLIGHTS barbaric and arrogant actions of a country nominate Nelson Rockefeller as the next FISCAL YEAR 1975--0UTLAYS that has never fought on our side and in ma- Vice President of the United States. The impact of cong1·esslonal action through August 16 on the President's fiscal August 21, 1974 EXTENSIONS OF REMARKS 29749 year 1975 budget outlay requests, as shown Total, 1975 outlay impact Legislative Branch ______-14, 197 in this report, may be summarized as of completed congres- Public Works and Atomic follows: sional action ______+1, 066, 284 Energy ------21, 854 District of Columbia ______-26, 600 tin millions) 1 Vetoed. Further Congressional action pending. Treasury, Postal Service and General Government ______-57, 027 House Senate Enacted Pending actions: The major pending legis­ Transportation and related lative actions affecting 1975 budget outlays agencies ------­ -239, 355 1975 budget outlay estimate which have passed or are pending in one or Legislative bills: as revised and amended to both Houses of Congress are shown in detail Housing and Community De- date ______$306, 312 $306, 312 $306, 312 on Table 1, and are summa.rized below. velopment Act______+965, 000 Congressional changes to date (committee action in- Veterans educational bene­ cluded): MAJOR PENDING ACTIONS ON BUDGETED OUTLAYS fits-extend delimiting pe- Appropriation bills: (EXPENDITURES) ri,od ------+618, 000 Completed action______-616 +126 -345 Small business direct loans __ +860, 000 Pending action______-2, 324 -2, 850 ------Legislative bills: Congressional changes in Child nutrition and school Completed action______+985 +2. 054 + l, 411 budgeted 1975 outlays (in lunch ------+200, 000 Pending action______+493 + l, 581 ------thousands) Civil Service minimum re- Total changes: ------Bills (including committee action) House Senate tirement------­ +172, 000 Completed action ____ +369 +2, 180 +1, 066 Veterans disability benefits Pending action ______-1, 831 -1, 269 ------increase ------+134, 800 Appropriation bills: Private pension protection __ _ +100, 000 TotaL ______-1, 461 +910 +1. 066 HUD. Space, Science, Veterans __ -30, 000 -150, 000 State, Justice, Commerce, the Food assistance and special Deduct: Portion of congres- Judiciary ______milk programs ______sional action included in -79, 000 +75, 000 May 30 revisions ______+m +m +311 Labor, Health, Education, and Postponement of postal rate Welfare_------315, 000 increases------­ +45,200 1975 budget outlays as ad- Defense ______-1, 900, 000 -2, 700, 000 justed by congressional Legislative bills (backdoor and Civil Service-early retire­ action to date ______304, 540 306, 911 307, 067 mandatory): ment, hazardous occupa- Veterans educational benefits ___ +195, 500 +977, 500 tions ------+41, 100 Emergency energy unemploy- Donated commodity program ment ------Rejected +5oo, ooo Completed actions: A summary of major Civil Service survivor annuity for older Americans ______+5, 500 individual actions composing the $1,066 mil­ modification_------+202, 000 (1) Civil Service survivor bene- lion total outlay impact of completed con­ Rail passenger improvement programs ______------______fits------+4, 600 gressional action to date on budgeted 1975 +61, 950 Congressional Record-reduce Public safety officers death postage fees ______outlays follows: gratuity ______------+43, 700 (1) -8, 486 COMPLETED ACTION OF BUDGETED OUTLAYS Military flight pay incentive_ -16, 700 (EXPENDITURES) Rejection of salary increases I Action taken last session. for federal executives ____ _ Bills ( including committee action )-Con­ -34, 000 gressional changes in 1975 budgeted out­ FISCAL YEAR 1975-BUDGET AUTHORITY Total, 1975 budget au­ lays (thousands) The impact of congressional action through August 16 on the President's fiscal year 1975 thority impact of con- 1974 supplemental bills (1975 gressional action ______+2, 489, 532 outlay impact): requests for new budget authority, as shown Second SupplementaL______-$215, 000 in this report, may be summarized as fol­ 1 Vetoed. Further congressional action Further Urgent SupplementaL - 30 lows: pending. 1975 regular bills: (In millions) Pending actions: The major pending legis­ Agriculture, Environmental lative actions affecting 1975 budget author­ and Consumer Protection__ 1 +130, 000 House Senate Enacted ity which have passed or are pending in one Public Works and Atomic or both Houses of Congress are shown in de­ +30, 000 Energy~------­ 1975 budget authority re­ tail on Table 1, a.nd are summarized below. Special Energy Research and quests as revised and Development ------­ +20, 000 amended to date ______$325, 749 $325, 749 $325, 749 MAJOR PENDING ACTIONS ON BUDGET AUTHORITY Interior and related agencies_ +9,000 Congressional changes to date REQUESTS Legislative Branch ______-11, 000 (committee action in- District of Columbia ______cluded): -23,000 Appropriation bills: Congressional changes in Treasury, Postal Service and Completed action ______-316 -14 -172 1975 budget authority General Government ______-65,000 Pending action ______-4,317 -5, 718 ------requests (in thousands) Transportation and related Legislative bills: Bills (including committee Completed action ______+2. 718 +3, 288 +2, 662 action) House Senate agencies ------­ -220, 000 Pending action ______+438 +3, 581 ------Legislative bills: Veterans educational bene- Total changes: Appropriation bills: Completed action ___ _ +2,402 +3, 274 HUD, Space, Science, Veterans __ -41, 519 -226, 095 fits-extend delimiting pe- +2, 490 State, Justice, Commerce, the Pending action ______-3, 879 -2, 137 ------riod ------+618, 000 Judiciary______-100, 355 Small business direct loans __ _ Total______-1, Labor, Health, Education and +360,000 477 +1, 137 +2,490 Welfare______-106, 456 Child nutrition and school Deduct: Portion of congres­ Defense ______-5, sional action included in -4, 068, 927 491, 739 lunch------­ +200, 000 May 30 revisions ______+311 Legislative bills (backdoor and Civil Service minimum retire- +311 +m mandatl)ry): 1975 budget authority as ad­ Federal Home Loan Bank Sys­ ment ------+157, 000 tem-temporary increase in Veterans disability benefits justed by congressional ac- tion to date ______323, 961 326, 575 327, 928 standby borrowing authority ______+2, 000, 000 increase------­ +134, 800 Veterans educational benefits___ +195, 500 +977, 500 Food assistance and special Emergency energy unemploy- milk programs ______Completed actions: A summary of major ment______Rejected +500, 000 +75, 000 Civil Service survivor annuity Postponement of postal rate individual actions composing the $2,490 mil­ lion total impact of completed congressional modification______+362, 000 (I} Jncreases ------­ +45,200 Public safety officers death Donated commodities, older action to date on 1975 budget authority re­ gratuity______+43, 700 (1) quests follows: Hopi and Navajo Tribes relo- Americans ------­ +5, soo cation______+28, 800 Civil Service survivor bene- COMPLETED ACTION ON BUDGET AUTHORITY Federal mass transit grants__ __ _ -197, 000 fits ------+4, 600 REQUESTS Rail passenger improvement Civil Service-early . retire- programs______+61, 950 Bills ( including committee action), congres­ Economic adjustment assistance_ -50, 000 ------ment, hazardous occupa­ sional changes in 1975 budget authority tions ------­ +3,400 requests ( in thousands) Congressional Record, reduced 1 Action taken last session_ postage fees ______Appropriation bills: -8, 486 Agriculture, Environmental THE 1975 BUDGET REQUESTS-SUMMARIES AND Military flight pay incentive_ -16, 700 and Consumer Protection__ 1 +$188, 582 ANALYSIS Rejection of salary increases Special Energy Research and The 1975 budget requests-as revised and for federal executives ______-84,000 Development ______:.._____ +32, 361 amended Unemployment benefits exten­ Interior and related agen- The fiscal year 1975 budget estimates as sion (trust fund)------183,000 cies ------+ 16, 158 transmitted by the President on Febr'uary 4 29750 EXTENSIONS OF REMARKS August 21, 1974 were officially revised in the Mid-session Portion of congressional action in- about development like I've never seen be­ Budget Review of May 30 to reflect budget cluded in May 30 revisions____ + . 3 fore," said H. L. Sonny Brown in a Times authority of $324.5 bllllon, outlays of $305.4 article on March 10. Brown is an independent billion, and revenue totaling $294.0 bllllon 1975 budget outlay estimate of May oilman who has just begun putting up his with a unified budget deficit estimated at own rigs in Texas. "In 19 yea.rs I've never $11.4 billion. Subsequent30 ------budget amendment not 306.4 seen this area like it has been the past few Subsequently, two major budget amend­ contemplated in May 80 budget months. Everybody wants to do things." ments have been transmitted which were not revisions, which has the effect of "The oil business looks more attractive to contemplated in the revised estimates. Al­ increasing 1975 outlays: me than it has in the past 15 years," said t hough the mid-session review totals have Defense (increased fuel and pay Don E. Weber of Midlands, Texas, also in a not as yet been officially revised, these costs) ------+. 9 Times interview. "The re~rds are now com­ changes have the effect of increasing the 1975 mensurate with the risks." Weber has just estimates by: $1,047 million in budget au­ 1975 budget outlay estimate as re- gone into the oil business in partnership thority and $873 million in out lays for De­ vised and a.mended to date______306. 3 With a geologist. fense; and $200 million in budget aut hority "Where we are now I thought we wouldn't for housing programs. be for two or three years," said Jeff E. Mont­ It should be noted that t he Administration gomery, chairman of Kirby Industries. has indicated determination to cut projected "We're packing all the capital we can into 1975 outlays "toward a goal of $300 billion,'' THE REAL OIL SCANDAL exploration and production." Kirby Indus­ but t hat "a variety of forces threaten to push tries once owned a. few oil wells in the '60s spending even higher than the current $305 but then moved into the prefabrication of billion estimate." steel buildings. The following summary shows the current HON. BILL ARCHER "In those days,'' Montgomery said, "we 1975 budget estimates, as officially revised OF TEXAS weren't making money finding oil. You and amended to date, and compares them to IN THE HOUSE OF REPRESENTATIVES couldn't make a reasonable rate of return. the February 4 estimates in the 1975 Budget We set out to get in some other business." Message: Wednesday, August 21, 1974 But now Kirby Industries is back in oil. [In billions] Mr. ARCHER. Mr. Speaker, recent The extra production from increased in· months have seen continuing criticism vestment by old and new producers would Fiscal year 1975 eliminate the shortage. The oil companies of our Nation's oil and gas industry for plan to add 2.1 million barrels a day to Estimate As further the increase in profits that they have production in the next four years. This extra Feb. 4 as revised amended realized during the last year. The Amer­ production will also drive down prices until estimates May 30 to date Change ican public should hear both sides of this profits are back to normal. Thus, higher oil question. In the attached article which profits mean merely that the market ls doing Unified budget what government allocators would want to receipts ______$295. 0 $294. 0 $294. 0 -$1.0 appeared in the May 9, 1974, edition of Unified budget do themselves, 1f only they knew how. The outlays ______the Harvard Crimson, Mr. Pete Ferrara 304. 4 305. 4 306. 3 +1.9 places the isGue of the oil industry's prof­ free market reallocating mechanism ls far Deficit______superior to any reallocating mechaniSm in -9.4 -11.4 -12.3 +2.9 its in the proper perspective. I certainly planned economics. commend this article to my colleagues In this process the temporarily high profits The revised estimates for fl.sea.I year 1975 and the American public: a company makes during the shortage are are broken down below to reflect the federal THE REAL On. SCANDAL its payment for switching resources to their funds and trust funds portions of the uni­ An old adage goes, there are three types most important uses and for providing a fied federal budget. commodity when it is most needed-during of liars-liars, damned liars, and statistics. the shortage. fin billions) The energy crisis has had more than its share of all three. These reallocations are the proper ones Budget Deficit In the past two weeks, the profits for the because they . are determined by consumer au- Re- or first quarter of 1974 for the largest U.S. oil choices. The more important a commodity thority Outlays ceipts surplus is to consumers, the higher they will bid companies have been widely reported as up its price and the profits of its producers Fiscal year 1975 (revised showing great gains for the oil companies. during a shortage. But the higher prices and and amended to date): Texaco's profits were up 123 per cent. Federal funds ______$231. 9 $222. 2 $201. 4 - $20. 8 Standard Oil of Indiana's profits were up profits are, the more old and new producers Trust funds______118. 0 108. 3 116. 8 8. 5 81 per cent, and Exxon's profits were up 38 will shift resources into production of that Adjustment for intra- commodity. governmental trans- per cent. But what do these statistics mean? But why would anyone be allowed to make actions ______-24.2 -24. 2 -24.2 ------In a completely socialized economy, 1f a shortage developed in some commodity, the profits at the expense of others?- Someone Unified budget_____ 325. 7 306. 3 294. 0 -12. 3 central planners would want to a.llocate ex­ who produces a product creates a. value. He tra resources to the commodity's production. has combined various inputs and created a The 1975 Budget Revisions: The budget But how much should they a.llocate and more valuable output. The extra value ls his revisions of May 30, together with subse­ from what other industries should they al­ because he created it and his profit is pay­ quent amendments which have the effect ment for this value. IIis profit does not mean locate it? The planners would have no way he is appropriating a bigger share of avail­ of increasing the 1975 recommendations, re­ of knowing. flect a number of signlflcant internal ad­ But in a free market economy, the proper able wealth, it means he is increasing total justments to the original February 4 budget wealth and his profit ls the amount he in· reallocations are made automatically. When creased it by. He doesn't make this profit at estimates. The following summarizes the a commodity is in short supply, its price change between the February 4 and the cur­ rises, increasing profits for the producers. the expense of others, he creates the value rent 1975 outlay estimates: of the profit by producing the product. ThiS gives them both the money and in­ So even if oil profits were high, that would (In billions) centive to increase production. 1975 Budget outlay estimate of Feb- not reveal a scandal. It would simply reveal ruary 4, 1974 ______$304. 4 In actual practice this has been the case the rational, just, efficient, workings of the for the oil companies. When the oil shortage market. Revisions reflected in Mid-session made Exxon's profits rise 60 per cent in 1973 Budget Review of May 30: But the truth ls that oil profits have not to $2.4 billion, the company increased 1974 been high. If a company's returns rose 100 Administration program changes: investment in the search for oil 73 per cent, Unemployment benefits exten- per cent, that would not say whether the to $6.1 billion. Gulf's profits were up 79 per company was making exorbitant profits or sion ------+ . 8 cent in 1973, to $800 million, but Gulf has not. If a company made 1 or 2 per cent Veterans disability benefits______+ . 4 increased its 1974 capital investment to $2 Foreign military and economic profit and its profit rose 100 or 200 per cent, bllllon. Atlantic Richfield, making $270 mil­ the company would still be doing poorly. assiStance ------+. 3 lion last year, plans to double its capital in­ But this is precisely how oil profits have Unified transportation assist- vestment in 1974 to $1.1 billion. The same is been reported, as the increase in profits. ance------+.3 true for all oil companies, large and small. The actual :figures show that oil com­ Reestima.tes: The oil companies are reinvesting all of their Interest on the debt______0 panles have not made high profits. Although +1. higher profits, and even more. profits rose 55 per cent in 1973, the return Unemployment trust fund______+. 8 But there ls another reallocating mecha­ IIouslng .Programs______+.5 on invested capita.I for the oil industry was nism in the market. Producers of other com­ 11.2 per cent, the same as 10 years ago. The Food stamp and school lunch modities, seeing the rising prices of the FTC reports that oil profits in 1973 were programs______+. 3 shortage commodity, try to switch into pro­ 15.6 per cent compared to 14.8 per cent for Offshore oil leases (increase in duction of it as much as possible. all other manufacturing. More than a third offsetting receipts) ------3. O Again, in the oil industry, this has been or the nation's industries had higher Farmers Home Administration the case. The New York Times reports that returns. Actually, oil profits had been lower (sale of assets)------. 8 even very small opera.tors are entering the than the average for other manufacturing Other (net)------.+. 1 industry. "The price of new oil ls bringing industries in eight out of the last ten years. August 21, 1974 EXTENSIONS OF REMARKS 29751 And these profit figures are heavily Nearly all of us are eager to go home warming, both for the audience and for the influenced by returns on older, already to determine the effect of the "Water­ speaker. discovered oil wells. Returns on new in­ All down the aisle, entering and leaving vestments have been lower. In 1972, the gate affair" on our chances this Novem­ the House chamber, the President paused to Department of Interior estimated that the ber. But if that entire affair proved one shake hands. He and House Speaker Carl Al­ discounted cash fl.ow rate of return on oil thing to me it was that confidence in our bert swapped congressional jokes. Old friends exploration and development expenditures entire federal system is lacking. We can could be heard calling the new president was 3.2 to 6.6 per cent. This means that only restore that confidence by working "Jerry." secure investments like bonds or long term diligently to pass legislation benefiting Although Ford could never earn a living savings certificates have been more the American people, and we can only as a stand-up comedian, he managed to get profitable than petroleum exploration and do that by remaining in Washington the five audible laughs out of his speech. The development investments. first one was when he made the remark about Furthermore, in the past year, 85 per bulk of the time between August 22 and no honeymoon, just a good marriage. cent of the increase in oil profits has September 11. And the speech may be remembered as come from oil produced and sold outside the much for that line as any one. U.S. Twenty-five per cent of the total gain was due to the devaluation of the dollar. [From The Newton Kansan] Because of these overseas profit s, in the past FAVORABLE PRESS REACTION TO five years oil companies have invested two PRESIDENT FORD FORD BEGINS WELL dollars looking for oil in t he U.S. for every President Gerald Ford got off to a good dollar of domestic profit. start with Congress Monday night when he Also, much of these profits has gone to HON. GARNER E. SHRIVER told them in an address before a joint session the federal government for drilling rights. In OF KANSAS of the house and senate that he would go 1972, the oil industry made $6.5 billion in IN THE HOUSE OF REPRESENTATIVES more than half way to achieve compromises. profits. Yet in the following year, the in­ He also suggested that Congress go more dustry paid $6.9 billion to the government Wednesday, August 21, 1974 than half way in a similar effort to solve for offshore drilling rights. Mr. SHRIVER. Mr. Speaker, the Na­ some of the ills that beset the country. So the recent rise in oil profits was really a The President can expect such cooperation return to normal levels. But even if oil tion has now experienced more than a during the initial months of his administra­ profits continue to rise, the market will week under the administration of our tion. Congress and the President traditionally correct itself. Even the profit rise to normal new President, Gerald Ford. It is obvious engage in a honeymoon at the beginning of levels has caused great increases in in­ that people are generally pleased with a presidency, but sooner or later differences vestment, as we have already seen. Any the smooth transition and the openness creep in and the honeymoon is over. further increase will cause even more, so the of President Ford in facing up to the Mr. Ford told congressmen he wants more resulting extra production will eventually difficult problems which confront us. . Re­ than a honeymoon with them-he wants a bring profits back to normal levels. In the action has been favorable from the Na­ lasting marriage. meantime, the shortage will have been Politics being what they are, this is a pretty ended and nobody makes any money they tion's media, and I have noted that he is big order, especially when the President and haven't earned. enjoying a good response from a number the majority in Congress are of different poli­ Anyone who thinks there isn't enough on of the Kansas newspapers in the Kansas tical parties. to be found to increase production ought to Fourth Congressional District. No one expects all of the troubles facing research the estimates of oil available from Under the leave to extend my remarks the country to be settled during the tra­ Alaska, off-shore fields, tar sands, shale, in the RECORD, I include editorial com­ ditional honeymoon period. That's especially coal, and old oil wells. The oil can be found ments from the Wichita, Kans., Eagle; true of inflation and other economic ills. if there is an incentive to find it. the Newton Kansan; the Halstead Inde­ But if Congress and the President can bury It therefore seems that the notion that oil the hatchet long enough to halt inflation companies are making outrageous profits is pendent; and the Peabody Gazette­ the country will be greatly indebted to the result of twisted statistics. Even if profits Herald. The editorials follow: them. were high that would not reveal anything [From the Wichita Eagle] However, it must be pointed out that the scandalous or immoral. It seems that the THE FORD MESSAGE government can't do anything without the only scandal oil profits reveal is the way they The importance of President Ford's mes­ cooperation of the people. Maybe Mr. Ford have been grossly misrepresented. The only sage to the assembled members of the Senate should call on the people to go along on the real scandal is the great number of public and House of Representatives Monday night presidential-congressional honeymoon. figures who are willing to bend the truth to was notai':>le not so much for what he said support their ideological contentions. but how he said it. [From the Halstead Independent] The new President, addressing the legis­ lative body of which he had been a member A TIME OF HOPE; A TIME OF REGRET for 25 years, was intentionally broad in (By Bob Mills) THE LABOR DAY RECESS sketching his plans for conquering inflation It seems longer than just a week since the and other national problems. Details will dramatic changes occurred in Washington come later, he assured the Congress, which that involved the resignation of one Presi­ HON. NORMAN F. LENT he called "my working partner as well as my dent and the swearing in of another. After OF NEW YORK most constructive critic." two years of the seemingly endless tunnel IN THE HOUSE OF REPRESENTATIVES And he drew cheers when he declared "My of Watergate, the denouement when it final­ motto towards the Congress is communica­ ly came, seemed too swift to believe. Wednesday, August 21, 1974 tion, conciliation, compromise and coopera­ Now we have a new President and regard­ Mr. LENT. Mr. Speaker, while I re­ tion. less of the different feelings held by the alize that after the events of the past "I don't want a honeymoon; I want a good people of the Nation about the guilt or inno­ marriage." cence of President Nixon, there is a collec­ few weeks many of my colleagues would Ford's message, in which he called for bi­ tive sigh of relief that the long mess is over. like to go home and "press the flesh," partisan restraint in government spending as President Ford seems to have a strong hand I have serious reservations about wheth­ a means of controlling inflation, reflected the on the tiller and the country did not collapse. er now is the time to take an almost 3- homespun approach taken by the new presi­ Many of the professional Nixon-haters who week recess from our legislative duties. dent in his dealings with a Nixon-shocked have devoted their lives to the bringing down Of course, I am pleased that such im­ Washington. of Richard Nixon probably are at a loss about He used plain language to make his points, what to do with themselves. Some of them portant issues as pension reform and the which were no more concrete than those laid want to pursue the former president into the reestablishment of the Cost of Living down by Nixon when he spoke on the econ­ criminal courts. To them enough is not Council and standard time have been omy some three weeks ago in Los Angeles. enough. They want Nixon behind ba,rs. cleared up before the scheduled begin­ Ford proposed to balance the federal It is interesting to speculate on their re­ ning of the recess; but many other mat­ budget, cut government spending, reactivate aotion to Nixon's downfall. Did they cele­ ters of extreme importance to the Amer­ the Cost of Living Council to monitor wages brate with a party like the men did in "The and prices and convene an economic summit Caine Mutiny" after Lt. Maryk was found ican people have yet to be resolved, and meeting with the President himself pre­ not guilty of the mutinous charges against I doubt seriously if many of them will be siding. him? before the adjournment of the 93d Con­ It was not exactly a spine-tingling set of If they did, it should be explained to them, gress. In particular, I refer to the man­ proposals. as Lt. Greenwald, drunk as he was after his datory fuel allocation program, anti-in­ Still, for all its lack of novelty and sub­ courtroom victory, explained to the celebrat­ flation measures, and tax reform. stance, Ford's first appearance before a joint ing men of the Caine that their celebration session of Congress was obviously heart- was inappropriate. , 29752 EXTENSIONS OF REMARKS August 21, 1974 Capt. Queeg, Greenwald said, was a man Rather, I believe the solution lies in the matter of fact, what is transpiring in China who asked tn his own way for help from his effective enforcement of present laws today is really a phase o! world affairs, for officers. The fficers, instead of help, opposed the destructive forces which have torn China and worked finally to destroy him. Queeg had and vigorous handling of criminal cases apart and brought turmoil to the mainland serious faults, but he put the good of the by the courts. Moreover, laws should be portion of it are bound to have more insidi­ Navy and the country ahead of personal passed that automatically imprison per­ ous effects on other parts of the world. If feelings. sons who commit crimes with firearms. the Chinese Communist regime is allowed The same might be said of Richard Nixon. Today I am introducing a bill to in­ to carry out its sinister policies of world crease the penalties for persons convicted revolution by violence and protracted wars. [From the Peabody Gazett e-Herald] of committing a felony with or while un­ the damage to the cause of freedom in East THERE'S A FORD IN YOUR PRESENT lawfully carrying a firearm to not less Asia will be specially great. (By Bill Krause) Among the factors contributing to the im - than 2 years nor more than 25 years im­ portance of China are geographi-::al location, Last week, Americans experienced one o! prisonment for first offenders, and life cultural connections and the presence 0f !:l. t he truly dramatic moments in American imprisonment for subsequent offenders. large number of ethnic Chinese in othe.r hist ory, a first and, we all hope, a last. The A similar bill was introduced earlier in Asian countries. In China we find not 0nly a departure of President Nixon under a cloud this session by my colleague, the distin­ big geographical area-a heartland called b y of corruption is a moment of sadness and guished gentleman from Illinois (Mr. some geographers-and an enormous popula­ tragedy, even for those who do not realize the tion but also the cradle of an ancient civili­ trauma involved, and who chose to cheer the CRANE) . In my view, once the criminals of zation, which is distinctly Chinese and quite departure o! a man they dislike. different from the other cultures of the world. If Nixon had been all bad, with no redeem­ America are taught that to use a gun The main features of what is called Oriental ing qualities, it would have been easy; but in crime is to assure them, upon capture civilization were born and matured in China. he was not basically an evil man. He did and conviction, of a long jail term with Korea, Japan, Vietnam and Singapore have some spectacularly good things for the na­ no hope of parole, then the crime rate cultural roots in China in various degrees. tion, but had some fatal flaws that made it will be reduced in this country. There­ The significance of these facts was fully inevitable that he would get into trouble and appreciated by Russian Communist leaders. be removed, it seems. fore, I hope the Committee on the Ju­ diciary will take action to increase the They saw in China not only a big land mass There is now the question of further pros­ and an enormous population, but also n gen­ ecution of the ex-President, and one cannot penalty for criminal use of firearms, but eral national awakening accompanied o y help but believe that being embarrassed, will not do anything to restrict owner­ some social unrest partly caused by the re - reviled, held up to public spectacle and being ship or use of firearms by law abiding sentment of the people to foreign exploita­ forced to quit the position of President in citizens. tion as imposed by the unequal treaties. 'They disgrace is a very great punishment-partic­ saw clearly that nationalism could be cap­ ularly for Nixon. The jackals that would tured and utilized as their tool. now persecute as well as prosecute him, dem­ LECTURE OF AMBASSADOR JAMES The Bolshevik regime's policy to commu­ onstrat e a vengeful nature that goes far be­ nize Asia was formulated before it had con­ yond the demands of society, the needs of the C. H. SHEN AT INSTITUTE ON COMPARATIVE POLITICAL AND solidated its power in Russia. In his address nation, or the requirements of crime and before the Second AH-Russian Congress of punishment. ECONOMIC SYSTEMS, GEORGE­ Communist Organizations o! the People of A former Mayor of Boston once ran the TOWN UNIVERSITY the East in November, 1919, Lenin assured city from a jail cell for a while, after being his followers that "emancipation of the peo­ convicted of a crime while in o11ice~ One ple o! the East is now quite practicable". cannot but feel that Richard Nixon might HON. EDWARD J. DERWINSKI During the First Congress of the People of have preferred to keep the Presidency and OF ll.LINOIS the East held at Baku in 1920, great import ­ go to jail. One falls to see what could pos­ ance was attached to kindling the fire of rev­ sibly be gained by further punishment. He IN THE HOUSE OF REPRESENTATIVES olution. in Asia and to the effort to destroy has lost most his fortune to the IRS. He has Wednesday, A1.tgust 21, 1974 the power of capitalism throughout the been disgraced. He has lost the office which he spent much of his life attaining. Does he Mr. DERWINSKI. Mr. Speaker, most world. In 1923 Lenin asserted that "Russia, deserve to be placed in stocks or horse­ Members are familiar with the unique India, China et cetera" had the great major­ whipped as well? Institute on Comparative Political and ity of the world's population and that "there cannot be the slightest shadow of doubt what One wonders if the country deserves to see Economic Systems at Georgetown Uni­ the final outcome of the world struggle will one of its leaders so disgraced. versity. Over the past 5 years we have be." But now the mantle falls on President Ford, had the valued pleasure of interning its a man who proves that a poor lad from The limitation of time does not permit me modest circumstances can be President of select students drawn from some 87 dif­ to trace the different steps through which the U.S. One cannot expect too much in the ferent colleges and universities across international Communism had succeeded ln way of spectacular legislation or programs the country. Sponsored by the Charles gaining control of the Chinese mainland. from a plugger like Ford. One can expect Edison memorial youth fund and under Suffice it to say, however, that China was se­ a period in which Congress and the President the directorship of Dr. Lev E. Dobriansky lected to be the prime target for conversion to can get together and work for the nation for Communism and that the Chinese Com.'llu­ of Georgetown University, the institute nist Party was organized in Shanghai in 1921 a change. consists of a tripartite program, one of Ford wisely-almost necessarily-kept under the direction of the Comintern. Henry Kissinger on to handle foreign affairs. which is a thought-provoking lecture Pertaining to the realm of land and peo­ In domestic matters, his close and recent series covering all areas of the globe. In ple is the fact that there are some 19,000,000 association of Congress should allow the new the recent series the lecture by Ambas­ overseas Chinese and the bulk of them are administration.. to act-wisely, we would sador James C. H. Shen of the Republic residing in Asia. Its significance should merit hope-in areas of inflation, energy, etc. of China was most oustanding. I wish appropriate attention; although, r am happy The nation will survive, but things will to bring to the attention of my colleagues to say, they are bona fide workers, business­ never be quite the same again. men and entrepreneurs and cherish liberty the essential parts of this lecture, which and free enterprise. It behooves me to point read as follows: out that the preponderant majority of them LECTURE BY MR. JAMES C. H. SHEN support my Government, and that at this juncture of contest between ideologies Tai­ INCREASED PENALTIES FOR PER­ First of all, I wish to express my apprecia­ tion of this opportunity to speak before your wan has been the point of their rally. No SONS CONVICTED OF . FELONY Institute this evening. It gives me great doubt they are contributing to the stability WITH OR WHILE UNLAWFULLY pleasure to address a group of select student and orderly development in the several coun­ CARRYING A FIREARM leaders from many colleges and universities. tries of their residence. When the name "Free China" is men­ Central to the subject under discussion tioned. it is implied, I presume, that a part is "Free China", that is the Republic of HON. WILLIAM ff. HUDNUT III of China, the generic China, is not free. In­ China, whose temporary seat of administra­ tion is in Taiwan. My Government is heir OF INDIANA deed, China at present is a "divided coun­ to the polity of traditional China and the IN THE HOUSE OF REPRESENTATIVES try"; and this dichotomous situation has created numerous problems and tremendous repository of the cultural heritage of the Wednesday, August 21, 1974 difficulties not only for the legal governm.en.t, Chinese nation. In recent years popular jour­ the Government of the Republic of China. nalism. has often referred to the Republic of China as "Free China,. or even "Taiwan". Mr. HUDNUT. Mr. Speaker, I have now with its seat of administration in Tal­ always felt that the solution to the prob­ With peace and security as her goal, China w,an, and the freedom-loving Chinese peo­ under my Government has been a decent lem of crime is not to pass restrictive ple in as well as outside China, but also for member of the international comm.unity a.nd Federal laws calllng for outlawing or the neighboring countries and the Free a good neighbor to the adjacent countries. registering privately owned firearms. World and its leader, the United States. As a The cardinal principle of our foreign policy August 21, 1974 EXTENSIONS OF REMARKS 29753

is to secure for China independence and 15,400,000, is bigger than that of seventy tionary leaders and movements seeking to equality, and to achieve for her a respectable per cent of the nations in the world, and subvert the legitimate governments of neigh­ place in the family of nations. In addition the standing armed force of upwards of boring countries. to our endeavor in promoting international 600,000 ·vell trained men is reckoned to be Aside from Peiping's part in the Commu­ cooperation, my Government has made the sixth in size. nist aggression against the Republic of Korea strenuous attempts to improve the Covenant In view of the facts cited above, reason­ and the United Nations and its aiding and of the League of Nations (particularly Ar­ able people would probably agree that a free abetting role in the recent Vietnam war, its ticle 16) as regards "enforcement actions" China is conducive to a free Asia if China is massive support to the Indonesian Commu­ and the application of sanctions against ag­ pacific and willing to play the part of a good nist Party (Paotai Komunist Indonesia) in gression and had made enlightened and neighbor. During the late war this propo­ the 1960's is another glaring example of its practicable proposals for a sound Charter for sition was very much in the minds of the threat to the Asian countries. The court pro­ the United Nations at the Dumbarton Oaks leaders of our two countries. ceedings in the trials of former Indonesian and San Francisco Conferences. This was the We realized, too, that most of the coun­ Foreign Minister Subandrio and former Air reason why it was so detestable that we were tries in our region had had a colonial leg­ Force Chief Omar Dhmai after the failure of deprived of our right of representation in acy, resisted the Japanese concept of a the eoup d'etat in September-October, 1965, the United Nations in spite of our good "Greater East Asia Co-prosperity Sphere", brought to light that the Chinese Communist record in that organization, which was de­ and were eager to build themselves into in­ regime had secretly sent to Indonesia great scribed as "enviable" by some international dependent states according to their own na­ quantities of arms, explosives and military publicists. Since this is an academic audi­ tional aspirations. In the winter of 1942 equipment and that Subandrio had been ence, I am sure you remember that the when the eventual defeat of Japan was as­ promised 100,000 small arms. The West should infamous action of the U.N. General Assem­ sured, my Government announced to the remember also that during the crucial battle bly on October 25, 1971, violated many pro­ world that it would deal with the other coun­ of Dienbienphu the bulk of the ammunition visions of the U.N. Charter such as Articles tries in Asia as equals and had no intention and the chief weapons employed by Vietnam 1, 2, 4 and 5 as well as the resolutions of of assuming the role of hegemony, to which Communists were supplied by Peiping. the General Assembly itself passed on Febru­ Japan had aspired. In conclusion, I would like to point out a ary 1 and May 18, 1951, declaring, among In a message on November 17, 1942, Pres­ known fact that the legal governments of the other things, that the Chinese Communist ident Chiang Kai-shek declared: free countries in the region are not strong regime "had itself engaged in aggression in "Among our friends there have been re­ enough to resist the major supporters of the Korea". cently some talks of China emerging as the local Communist groups in their respective The practical importance of my Govern­ leader of Asia, as if China wished the mantle domains. For many years there have been ment transcends the present limits of the of an unworthy Japan to fall on her shoul­ various common efforts in regional organiza­ territory over which it exercises effective ders. Having herself been a victim of exploi­ tion pursuant to the articles on "Regional control. As the facts stand today, it is the tation, China has infinite sympathy for the Arrangements" under the U.N. Charter, but symbol of freedom and the beacon of hope the agenda of their conferences usually cov­ for th~ teeming millions of repressed, abject submerged nations of Asia, and towards them China feels she has only responsibilities-­ ered other matters of mutual cooperation people on the Chinese mainland and the than positive political and security problems. point of rally for the people of Chinese ex­ not rights. We repudiate the idea of leader­ traction overseas. ship of Asia because the 'fuehrer principle' At this stage of development countries in this The importance of both the Government has been synonymous with domination and large area. would have to depend for their of the Republic of China per se and the stra­ exploitation." external defense on one or another of the tegic value of Taiwan should merit due at­ My Government's policy toward Japan is Treaties of Mutual Defense concluded under tention from the Free World. Together with more than liberal, but actually magnani­ the aegis of the United States from 1951 to the offshore island groups of Kinmen ( Que­ mous. We strongly believe that brutal force, 1954. moy) and Matsu, Taiwan is a bastion for however strong, and retaliation, however We of the Republic of China attach utmost defense in the West Pacific. Geographically justified, cannot bring about peace. It was importance to our Mutual Defense Treaty speaking, it could be considered as one of for this reason that after V-J Day in 1945 with the United States and are gratified to the islands in the chain of volcanic forma­ my Government did not claim any repara­ note that the authorities of the United States tions extending from the Kamchatka Penin­ tions from the Japanese Government for the from President Nixon on down have repeat­ sula to the Sunda Islands in the Java Sea. enormous losses we had sustained during the edly assured us that the United States will Politically, it has generally been regarded war and that President Chiang Kai-shek had maintain its friendship with us and its de­ in recent years as a link in the defense chain recommended, in response to a question by fense commitments to my Government. My from the Aleutian Islands through Japan President Roosevelt at the Cairo Conference Government on its part stands ready to dis­ and the Liu Chiu (Ryukyu) Islands to the in 1943, that in order to avoid future ani­ charge its obligations under that instrument. Ph111ppines. Since the 1850's soldiers of for­ mosity the allied Powers should leave the We are irrevocably committed to the cause of tune, diplomats and military strategists have question of the "emperor institution" to the freedom and to the defense of our independ­ called attention to the importance of this Japanese people themselves to decide instead ence, and there is no turning back or pos­ insular territory of ours; but for our present of insisting that it be abolished. sibility of compromise with the Communist purpose I shall content myself with quoting After the Chinese Communist regime was rebels. Inasmuch as our position is constant, Just one passage from the communique 18- formed, it was grossly misunderstood by the we deem ourselves as a vital force for freedom sued in Washington on the eve of the sign­ other countries including some people of at this juncture of conflict between freedom ing, on December 2, 1954, of the Mutual Chinese extraction overseas who sent their and Communist enslavement. Defense Treaty between the United States children to the mainland for education. But and the Republic of China. The passage then they were forced to take note of the reads: sufferings of the people and the upheavals "This treaty will forge another link in the resulting from the oppressive measures and THE SIXTH ANNIVERSARY OF THE system of collective security established by destruction of traditional institutions and INVASION OF CZECHOSLOVAKIA the various collective defense treaties al­ social values and fanatical attempts at eco­ ready concluded between the United States nomic development based on faulty calcula­ and other countries in the Pacific area. To­ tions as revealed in the disasters following HON. EDWARD J. DERWINSKI the so-called "Great Leap Forward" in 1958. gether, these arrangements provide the es­ OF ll.LINOIS sential framework for the defense of the free The so-called "Proletarian Cultural Revolu­ peoples of the West Pacific against Commu­ tion" accompanied by the rampage of the IN THE HOUSE OF REPRESENTATIVES nist aggression." "Red Guards" initiated in 1966 and the re­ Wednesday, August 21, 1974 I should like to point out here that there cent "Anti-Lin ·Piao and Anti-Confucius" is an apparent lack of serious impartial agitations have further disclosed the wide­ Mr. ~ERWIN~KI. Mr. Speaker, today studies on the political aspects of the Gov­ spread internal dissensions and the steady is the sixth anmversary of the invasion ernment of the Republic of China. While it deepening of the intra-party power struggle. of Czechoslovakia by the Soviet military is true that the modest economic progress For many years some "liberal" writers in forces. On August 21, 1968, the frontiers we made in Taiwan in recent years has been this country had tried to deal with the ques­ of that small country were occupied by fairly well reported, the political advance of tion of Peiping's threat to other countries in 650,000 Russion, Bulgarian, East Ger­ my Government, the high principles which terms of the economic conditions on the Chi­ have served as our guide in international nese mainland, contending that the State of man, Hungarian, and Polish troops that and national affairs and our enlightened want and under-development should dis­ were dispatched to suppress the lib~rali­ stance vis-a-vis our Asiatic neighbors are suade its leaders from using the meager re­ zation that was developing in that coun­ inadequately reported or completely ignored. sources to instigate insurrections in other try. Although limited in size as compared to the lands. I do not have to tell this audience how The occupation of troops to Czechoslo­ vastness of the Chinese mainland, the terri­ wrong is this kind of reasoning. All that one vakia in 1968 was especially shocking tory currently under our effective control is needs to do ls to examine some of the volu­ because that nation had been a Soviet larger than that of many of the viable coun­ minous documents of the Mao Tse-tung re­ satellite for 21 years. Some inadequate tries in the world. The population of Taiwan gime on world revolution and its record in reforms were too much for the men in and the offshore islands, which is about supporting, training and equipping revolu- Moscow. 29754 EXTENSIONS OF REMARKS August 21, 1974 , · Despite the millions of words that have within the House and from without. For the majority party hold the committee and been spoken and written during the last months this bipartisan product was stall­ subcommittee chairmanships affected by the few years to the effect that the Commu­ ed in the partisan pocket of the Demo­ proposals. nists have mellowed and that their lead- cratic King Caucus where it was prac­ -ers have undergone a metamorphosis tically studied to death. It was then re­ from socialistic totalitarianism to capi­ shaped by the so-called ''reform" com­ talistic free enterprise, the status of mittee of the Democratic Caucus, not to YOUTH CAMP SAFETY Czechoslovakia shows us that the facts fit the needs of the House as an institu­ are otherwise. The people who inhabit tion, but to fit the needs of the power HON. DOMINICK V. DANIELS that unhappy nation can provide the barons of King Caucus. testimony to demonstrate the utter fal­ Now the resolution is receiving similar OF NEW JERSEY sity of statements that proclaim the ad­ treatment from the House Rules Com­ IN THE HOUSE OF REPRESENTATIVES vantages of peaceful coexistence. mittee of which I am a member. Twice it Wednesday, August 21, 1974 The peoples of Czechoslovakia dD not has been scheduled for consideration in Mr. DOMINICK V. DANIELS. Mr. need foreign advice especially under the the committee, only to be pulled at the Speaker, the Select Subcommittee on heel of the Soviet Russian goosestep as last minute for one mysterious reason or Labor has held hearings on the Youth to how to run their affairs. Their tradi­ another. Camp Safety Act during the 90th, 9lst, tion of self-government goes back to the The Washington Post this morning 92d, and 93d Congresses. As a result of kingdom of Great Moravia which was a carried an article which identifies labor these, we have become increasingly strong independent and highly developed lobbyists as the real culprit in this whole -aware of the great need for this legisla­ state in Central Europe during the ninth piece, based on accusations not from this tion. centw·y. The Soviet military occupation side of the aisle, but from the other side. It is, therefore, with great pleasure not only violates the sovereignty of Mr. Speaker, I would hope that when that I can say to my colleagues today Czechoslovakia but affects the entire Eu­ this body reconvenes in September we that the subcommittee, with strong bi­ ropean balance of power. The invasion will stand up to those outside pressures partisan support, unanimously reported was an illegal act of unprovoked aggres­ and demonstrate to the American people out this bill on Wednesday, August 14. sion and the continuing military occupa­ that we are in charge of this House and The bill now awaits consideration by the tion is an inexcusable violation of inter­ are prepared to reform ow·selves. I have full Education and Labor Committee. national law. been informed that consideration of the I am most pleased to learn that the May I remind the Members that on reform bill has now been reset for Sep­ Communication Workers of America August 14, 1970, this body passed Con­ tember 12 in the Rules Committee. I hope have also come out in strong favor of the current Resolution No. 817 protesting the we can stand by that date. At this point Youth Camp Safety Act. The reasons for occupation of Czechoslovakia. In the fol­ in the RECORD, I include the Post article: their support were most eloquently stated lowing years numerous Members of Con­ BOLLING, ALLIES CHARGE LABOR BLOCKS HOUSE in a resolution unanimously passed at gress from both parties in the House and REFORM their 36th annual convention. Senate issued strong individual protests. (By Mary Russell) I would like to bring this resolution to It is now established that the Soviet and Pressure from labor lobbyists may succeed the attention of my colleagues. Warsaw Pact armies were not called by in killing proposals to reform the House The resolution follows: any responsible Czech official. The crush­ committee system, the chairman and Dem­ ing of the Dubcek government was noth­ ocratic members of the group that author­ YOUTH CAMP SAFETY ized the reforms said yesterday. Every summer, approximately 10 million ing but an unprovoked act of aggression youngsters attend camp throughout the which must not be forgotten. A Rules Committee meeting yesterday to clear the reform proposals for the floor was United States. The number of these camps This episode demonstrates the rigid canceled. Reform proponents cited this as a · is estimated between 8,000 to 11,000. Parent s and barbaric nature of the Soviet dicta­ first sign of a delaying strategy by opponents, · will be sending their children to these camps ~ torship. For those people in all parts of including labor lobbyists and committee in the belief that they will be adequately _the world, August 21, 1968, should be chairmen and members who would lose supervised by trained counselors and will live remembered as a day when the blooming jurisdiction by the proposals. in sanitary and healthful surroundings. of freedom was nipped in the bud and the "The opponents (of the reforms) having Because of the interstate nature of sum­ rights of these peoples remain divided failed in all their previous efforts to kill it mer camping, parents must rely mainly on may now be attempting to bury it in the brochures and other promotional materials until this day. Let there be no illusions Rules Committee by stalling it to death," prepared by camp operators. In most cases, about detente. The Soviet invasion into said Rep. Richard Bolling (D-Mo.), chairman the only times the parents will observe the Czechoslovakia certainly makes that of the bipartisan select committee which re­ camps will be at the beginning and end of clear. ported the reforms this spring. the camp stay. In a statement, four Democratic members Public hearings in the last three Con­ of the committee said they feared the de­ gresses before the Select Subcommittee on laying tactics will succeed unless Speaker Labor of the Education and Labor Commit­ COMMITTEE REFORM DELAYS Carl Albert and Majority Leader Thomas P. tee, U.S. House of Representatives, have doc­ O'Neill (D-Mass.) continue to press for umented countless cases in which children action. suffered serious-and sometimes fatal-ill­ HON. JOHN B. ANDERSON At a Rules committee session yesterday, nesses and injuries at summer camp. These Chairman Ray Madden (D-Ind.) promised hearings have also unearthed the fact that OF Il.LINOIS to reschedule the meeting for Sept. 12. He only 6 states have comprehensive youth camp IN THE HOUSE OF REPRESENTATIVES said the delay arose because not all the mem­ safety laws. Wednesday, August 21, 1974 bers of the House who were interested in the As a result of the earlier hearings on Fed­ reforms could be present. eral youth camp safety legislation, the Chair­ Mr. ANDERSON of Illinois. Mr. But Bolling and Democratic colleagues man of the Select Subcommittee on Labor, Speaker, today marks an anniversary of said the actien might be "the first of a series Congressman Dominick V. Daniels, of New sorts, though not one which is cause for of steps designed to prevent action by the Jersey, wrote to the Governor of every state celebration. It was exactly 5 months ago House this year" on the reforms proposals. two years ago urging enactment of state today, on March 21, 1974, that our bi­ Other recent actions which appear to en­ youth camp safety laws. That plea has been danger the reform proposals include: re­ ignored since only those 6 states have ade­ partisan Select Committee on Commit­ newed activity of labor lobbyists who oppose quate laws today. tees reported out House Resolution 988, splitting the Education and Labor Commit­ Under a mandate by the U.S. Congress, the the Committee Reform Amendments of Department of Health, Education and Wel­ tee in two; a visit to Speaker Carl Albert by fare conducted a study and investigation of 1974 calling for a comprehensive realine­ three powerful committee chairmen asking ment of House committee jurisdictions youth camps during the summer of 1973. The for delay, and a cooling among Democratic HEW study found that 45 states have no reg­ along functional lines. leaders who :feel the reforms could result in ulations applicable to camp personnel; 17 Ever since that date the 1·ef orm pack­ a divisive party battle. states have no regulations pertaining to pro­ age has been buffeted about by the cruel The reform proposals have already resulted gram safety; 24 states have no regulations winds of antireform forces both from in bitter fights among Democrats, :who as concerning personal health, first aid and August 21, 1974 EXTENSIONS OF REMARKS 29755 medical services; 45 states have no regula­ to society, are considered as economic founded by our faith in Thee. Quicken his tions applicable to the transportation of equals with the rest of the working heart with the awareness of Thy presence, children while in summer camp; 39 states especially in the lonely moments of fateful have no regulations over out-of-camp trips American public. decisions which may be his to make for us and primitive outpost camping; 35 states do and the world. not regulate day camping; and 46 states have May we, the citizens of this land, expross no regulations over travel camps. by obedience to Thy law that we are wort:lly The paradox is that the employees of sum­ A PRAYER FOR OUR COUNTRY to have been made great among the nations mer youth ca.mps are protected by the Oc­ of the earth. Above all, let us so order tne cupational Safety and Health Act, but the affairs of this country that we heed the ad­ children entrusted to the care of these em­ monition of Thy prophet-"Let justice w , 11 ployees do not have comparable protection HON. MARTHA W. GRIFFITHS up as the waters, and righteousness as a under Federal law-nor do they have it in OF MICHIGAN mighty stream." Amen. 44 states under state law. IN THE HOUSE OF REPRESENTATIVES Legislation pending in the House Educa­ tion and Labor Committee, which bipartisan Wednesday, August 21, 1974 sponsorship, would establish minimum man­ Mr. ANTI-INFLATION ACT OF 1974 datory Federal standards for the safe op­ Mrs. GRIFFITHS. Speaker, Presi­ eration of youth camps. It would provide dent Ford last week asked for the Na­ Federal assistance to the states for develop­ tion's prayers on assuming the awesome HON. JOHN B. ANDERSON ing and implementing their own youth camp responsibilities of the Presidency. The OF Il.LINOIS safety programs. The companion Senate b111 following is a response to that request would provide for the same Federal aid, but from the Congregation Shaarey Zedek of IN THE HOUSE OF REPRESENTATIVES on a permissive basis as regards the states. Southfield, Mich. It is an eloquent ex­ Wednesday, August 21, 1974 The House bill's mandatory features recog­ nizes the interstate nature of the summer pression of the deep desire the people Mr. ANDERSON of Illinois. Mr. camping programs as an extension of the of my district and the Nation, that Presi­ Speaker, because of illness I could not Constitutional power to regulate commerce. dent Ford restore to us a unity and toler­ be present on Monday to vote for the Be it resolved: That inasmuch as it is the ance long missing from our national Anti-Inflation Act of 1974. I take this desire of all parents to insure the maximum spirit. protection of the lives and well being of their opportunity to indicate my support. This The prayer follows: bill is nearly identical to H.R. 16399, the children attending summer camp, the 36th A PRAYER FOR OUR COUNTRY Annual Convention of the Communications Economic Monitoring and Inflation Con­ Workers of America support the House ver­ (Composed by Rahbi Irwin Groner) trol Act which I introduced on August 14 sion of the "Youth Camp Safety Act," and We thank Thee, O Lord, for America our in response to President Ford's request urge the strengthening of the Senate bill, to home, a country dedicated to the ideals of to reactivate the Cost of Living Council require the states to develop and implement freedom, justice and brotherhood. We praise for the purpose of monitoring wages and their own youth camp safety programs. Thee for the liberty, the opportunity, a.nd the abundance we possess. Above all we praise prices to expose abuses, without the re­ Thee for the traditions which have made our imposition of controls. country great and for the inspired leaders The bill before us today would estab­ of our past who laid the foundations of this lish a Cost of Living Task Force for the THE PENSION REFORM BILL republic through faith, courage, and self same purposes. Like my own bill, it con­ sacrifice. tains a specific proviso barring control We have lived through a dark and painful authority. This proviso is contained in period in our nation's history. Those en­ section 4 (b) and reads: HON. BELLA S. ABZUG trusted with authority did abuse it. The OF NEW YORK Nothing in this Act authorizes the im­ highest office in the land was darkened by position, or reimposition of any mandatory IN THE HOUSE OF REPRESENTATIVES ever lengthening shadows of legal and moral economic controls with respect to prices, Wednesday, August 21, 1974 wrongdoing. In the midst of this travail, rents, wages, salaries, corporate dividends, many of us became disillusioned with our interest rates, or any similar transfers. Ms. ABZUG. Mr. Speaker, during the leadeirs, with ourselves, and with the failure consideration of H.R. 2, the pension re­ of this government to reflect our national The task force established by this form bill, I o:fl'ered an amendment to ideals. We have come to recognize with bill would have a seven-part mandate cover more equitably blue-collar workers greater comprehension the words of Thy as spelled out in section 4 of the bill. teac!b.er "Righteousness maketh a nation These responsibilities include: Review­ in this country who do not wait until the great, but sin is a reproach to a.ny people." age of 25 to start working, but start We are grateful to Thee, O Lord, for what ing and analyzing industrial capacity, working immediately upon leaving bigh this ordeal has taught us. We are a govern­ d~mand and supply in various economic school. I am pleased the conference com­ ment of laws and not of men. These laws are sectors, working with industrial groups mittee on H.R. 2 supported the substance designed to protect the rights of the weak and Government agencies to encourage of my amendment by authorizing a 3- against the strong, to defend the liberties of price restraint; working with labor, man­ year "lookback" to credit service up to 3 the individual against the tyranny of the agement and Government agencies to years before entering a pension plan at powerful. We have relearned an old lesson: improve collective bargaining structures that the opinion of all the people ls wiser and the performance of those sectors age 25. than the opinion of any one man, of any The importance of this provision c::tn­ small group of men. in restraining prices; improving collec­ not be overstressed-according to the Almighty God, we beseech Thee to look tive bargaining and encouraging price 1970 census, over 50 percent of all Amer­ with favor upon our land and our people. restraint through the improvement of icans between the age of 18 and 19 are in Heal our wounds, bind us together, let the wage and price data bases for the various the labor force. Over 68 percent of all bitterness be replaced by forbearance and economic sectors; focusing public atten­ Americans between the ages of 20 and 24 the anger muted by understanding, and the tion on inflationary problems and the are in the labor force. Of all the women cynicism answered by trust. Justice having need to increase productivity in the pub­ been done, let mercy and forgiveness com­ between the ages of 20 and 24, over 56- plete the work of reconciliation and unity. lic and private sectors of the economy· percent are in the labor market. Heavenly Father we ask Thy blessing on reviewing the programs and activitie~ This provision is of particular concern Gerald Ford as he becomes the President of public and private economic sectors to women, generally between the ages of of the United States. Mayest Thou, O Lord, for the purpose of making recommenda­ 18 and 24, whose labor pattern is to work to whom alone belong the dominion and the tions for changes aimed at increasing for a number of years; leave to care for power, be his support in the fulfillment of supply and restraining prices; and fi­ their families and return to the labor his awesome trust, thrust upon him by un­ nally, evaluating the inflationary effects force at a later date. precedented events in the experience of this of international transactions, particular­ I would like to commend the members people. Enable him to ensure the unfettered, ly with respect to balance of payments, uncompromised implementation of our Con­ of the conference for taking one of the stitution for all the inhabitants of our land. controls on imports and exports, and the many needed steps to insure that the Endow him with the spirit of wisdom that cost of fuel and other commodities that working youth and women in this coun­ he may safeguard the physical and moral bear directly on the rate of inflation. try, who make a significant contribution integrity of our beloved commonwealth, Mr. Speaker, let us harbor no illusions 29756 EXTENSIONS OF REMARKS August 21, 1974 that the creation of this Cost of Living SELECTIVE MASS TRANSIT AID transportation needs. However, the pro­ Task Force is some kind of panacea for gram we enact should meet the needs of our inflationary problems. It is not. But all the people, not just selected areas. In hopefully, through this economic moni­ HON. CLARENCE E. MILLER addition, the funding level must be such toring process, we will be able to better OF OHIO as will not encourage inflation. I would pinpoint and deal with the major sources IN THE HOUSE OF REPRESENTATIVES hope that my colleagues who voted for of our inflationary problems and to en­ Wednesday, August 21, 1974 this bill would reconsider their action list public support and cooperation in and support a proposal more in line·with that cause. Hopefully, the forthcoming Mr. MILLER. Mr. Speaker, yesterday these recommendations. domestic summit on the economy being I was one of 92 Members who voted convened by President Ford will further against the Federal Mass Transportation supplement this effort and provide us Act. At the time this bill was presented with fresh ideas and solutions for deal­ to the House I had two strong objections THE NEW PRESIDENT ing with this most difficult and persist­ to it: it was inflationary and it neglected ent problem. I commend President Ford the nonurban areas of this country. Al­ on taking these early initiatives to deal though steps were taken to cut out some HON. LEE H. HAMILTON with what he has termed "Our Domestic of the excessive spending, in the end the OF INDIANA Public Enemy No. 1." As the President objectionable features still remained. IN THE HOUSE OF REPRESENTATIVES stated in his address to the joint session As originally reported this legislation Wednesday, August 21, 1974 of Congress on August 12, "to restore would have given over $20 billion for economic confidence, the Government in mass transit assistance. This Nation Mr. HAMILTON. Mr. Speaker, under Washington must provide leadership." cannot afford such expenditures at a the leave to extend my remarks in the By passing this bill today, we will be tak­ time when we are all trying to cw·b in­ RECORD, I include my Washington Re­ ing an important first step in providing flation. The manner in which this money port entitled "The New President": that leadership and indicating to the was to be spent made it all the more ob­ THE NEW PRESIDENT American people that the Congress is jectionable. A great part of the funds In huddled conversation in Washington, on prepared to work closely with the new was to be spent on operating subsidies. the midways of the Indiana county fairs, or administration in combating inflation. I That is, the money would be given not on main streets across the country, the ques­ tion is the same: What will the Presidency urge the passage of H.R. 16425, the Anti­ to improve a transit system, but just to of Gerald Ford be like? Inflation Act of 1974. help them make up for operating deficits. Everyone agrees that the new President Plainly this is a case of throwing ow· will start with a period of good feelings. The money into a bottomless pit. There are anger and tension and recriminations that no incentives for these poorly run sys­ have enveloped the country for months have FREEDOM'S EDGE tems to improve their service. As long as subsided, the country feels a sense of relief, they know that Big Brother in Washing­ and a. spirit of conciliation is emerging. HON. WILLIAM S. MOORHEAD ton is ready to subsidize their operations The new President is expected to have an the money-wasting inefficiency will con­ extended period of good relations with the OF PENNSYLVANIA tinue. This bill provides no solid assur­ Congress. He served in the House of Rep­ IN THE HOUSE OF REPRESENTATIVES resentatives for 25 years, and Members of ances that this attitude will change. both parties know him as "one of ours." Wednesday, August 21, 1974 I was pleased to see that the House President Ford's promise this week to the Mr. MOORHEAD of Pennsylvania. Mr. recognized some of the inflationary as­ Congress to consult and compromise was in pects of this bill and cut the total fund­ keeping with the expectations of Members of Speaker, I am pleased to call to the at­ Congress to work closely with him. tention of my colleagues the publishing ing authorized down to $11 billion. How­ ever, there remained in the bill many His style of conducting the Presidency will of a new book entitled "Freedom's Edge: be much different from that of his predeces­ The Computer Threat to Society." This items that were inflationary and could sor. He will be conciliatory with the Con­ 150-page volume was written by Mr. Mil­ have been cut out. An example was the gress, not combative. He will seek advice and ton R. Wessel, a New York attorney who so-called demonstration project in one listen, and not make his decisions alone. has lectured and published widely on the city to eliminate railroad grade cross­ Both the man and his administration will be computer's impact on society, moderniz­ ings. The cost for this ''demonstration open and accessible. He will not display flashy ing legal procedure, improving crime en­ project": an incredible $14 million. leadership or crafty public relations tech­ forcement and related socio-legal prob­ Surely we can cut deeper than we have niques, and rather than making dramatic done as long as programs such as this moves, he will act cautiously and deliber­ lems. ately. His White House will not be tightly This book was written to put all of us remain. controlled, but more freewheeling and loose. on the alert-the computer industry and A second objectionable feature of this He has a. talent for conciliation and fence individuals everywhere who are woneer­ bill is its virtually total neglect of the mending. Although conservative and par­ ing what legal means they have to pro­ nonurban areas. This deficiency is per­ tisan, he has a. pragmatic streak and can tect themselves against any adverse en­ haps the most imPortant and yet noth­ maintain cordial relations with his adver­ croachment of computers. ing was done to change it. People in rural saries. Like his predecessor, he will like to areas and small cities are in as great a travel. The underlying theme of Mr. Wessel's Continuity will be a major theme of the book is this: When the computer's im­ need for adequate transportation as resi­ early days of the Ford administration. Pres­ pact on the data is great enough, it dents of our large cities. In fact, their ident Ford has already asked all members of changes the environment in which we need may be even greater. In a large city former President Nixon's Cabinet, as well as live. For example, it can have a chilling the stores and services that are needed heads of government agencies, to stay on in effect on freedom. In chapter after chap­ are often within walking distance. In a his administration. In the early weeks of his ter, the author shows some of the ways -rural area the nearest store or place of tenure it is unlikely that he will demand top the computer is alreadly changing our employment is usually far out of walking level changes, but after that he may turn distance for the elderly or those without to persons with past political experience. lives or soon will be. In the area of most concern to the na­ In Mr. Wessel's book he hopes to gener­ adequate transportation. What does this tion today-economic policy-the President ate the kind of interest and concern Mass Transportation Act do for them? wm bring no magic or quick solutions. He that will stimulate analysis, debate, and Very little. Less than 5 percent of the believes that maintaining tight control on action before it is too late. original $20 billion was to go to areas government spending is essential if any in­ It is my sincere belief that his study ls with populations of under 50,000. Spread roads are to be made against inflation. He another reason why Congress should pass out across the country this turns out to favors a budgetary surplus next fiscal year, legislation, such as H.R. 16373, designed be a very meager sum. The end result is "the discipline of high interest rates," and. to safeguard individual privacy from the that these people in the nonurban areas opposes wage and price controls. Unlike Pres­ are getting no benefit from the bill while ident Nixon, who favored dramatic moves like misuse of Federal records and provide wage and price freezes and tended to lurch that individuals be granted access to rec­ paying to support the transportation of from one approach to another, he will bring ords concerning them that are main­ the big city dwellers. a steadier, more consistent approach. There tained by Federal agencies, in many Mr. Speaker, I strongly feel that ad­ are also indications that he may be willing cases, in computers. vances are needed in meeting our mass to take a more activist position than Presi- August 21, 1974 EXTENSIONS OF REMARKS 29757 dent Nixon did, for example with public CRIME-THE FAILURE OF TRADI­ crime rather than preventing it from oc­ service employment and selective credit TIONAL THEORIES curring with such frequency. The ironic policies for hard-hit industries, such as hous­ ing. His calls this week for an "economic result is that law enforcers are often­ summit" meeting to tackle inflation and for times put in the position of being in the the re-establishment of the Cost-of-Living HON. JOHN CONYERS, JR. business of crime logistics and manage­ Council to monitor wage and price activity, OF MICHIGAN ment rather than crime prevention it- and his criticism of General Motors for price IN THE HOUSE OF REPRESENTATIVES , self. increases are further evidence of his activism. Wednesday, August 21, 1974 The rate at which crime has risen in In the area of foreign policy, where Presi­ the last decade should make it abun­ dent Ford has not had great experience, he Mr. CONYERS. Mr. Speaker, now that dantly clear that it is physically, as well has already indicated that he would follow the Nation's attention has been freed the basic course of the Nixon-Kissinger pol­ as fiscally, impossible to allow crime to icy, at least in the opening stages of his ad­ from the problem of "crime in the escalate and expect that institutions can ministration. In the past, he has been a suites," we must again devote our atten­ be expanded at a proportionate rate to steadfast cold warrior, a "hawk" on Vietnam, tion to one of the chronic problems f ac­ deal with it. By selectively concentrating but a defender of Nixon's winding down of ing our Nation today: Crime in the resources in the area of apprehending U.S. involvement in Vietnam, and a supporter streets. criminals, a vicious cycle is insured. More of the moves toward detente with the Soviet Recent nationwide surveys show that, arrests means overwhelming the already Union and China. He has consistently sup­ contrary to prior reports, crime is rising overburdened court system, which is then ported big defense budgets, a large U.S. troop at an alarming rate, to the point that presence in Europe, freer trade, and Israel. faced with a Hobson's choice: Either As President, he confronts immediate and it threatens to jump off the charts due dump more bodies into the totally inade­ key decisions in almost every area of the to the fact that at least two crimes in quate corrections complex-with its world: in the Middle East he must keep the five are never reported. We are today up demonstrated capability of producing negotiations going; talks with the Russians against an unprecedented public lack of more efficient criminals-or return of­ on limitations of strategic arms are due to confidence in our law enforcement and f enders directly to the communities from resume in Geneva next month; relations with criminal justice institutions. The ineffec­ whence they came. The net effect is that China, Japan, and Latin America need spe­ tiveness of our present programs in re­ cial attention; the Indochina situation is the proportion of criminals to citizenry ducing crime can be traced to the shop­ increases at an almost Malthusian rate, not improving; and ties with Western Eu­ worn thinking that controls their ini­ rope, which have improved lately, need con­ since the physical capacity of the cor­ stant attention. Mr. Ford also needs to be­ tiation and implementation. rections system is irretrievably over­ come acquainted with most of the key world The last administration, which char­ loaded, while the system's ability to cope leaders. acterized itself as of the "law and order" effectively with this increase diminishes President Ford's past record, which is con­ variety, proved to be entranced by the inversely. sistently right of center, makes unlikely that need to find easy and politically palat­ be will be highly innovative or strike out in able answers to this complex societal It is time we incorporate into our new directions. His voting record in the Con­ problem. Accordingly, the Nixon years crime-reduction thinking the hard facts gress was deeply conservative. He opposed saw billions of dollars pumped into sup­ of modern urban life: Poverty, economic most of the Great Society programs, includ­ portive Federal programs that grew out discrimination, and social and racial in­ ing Medicare and federal aid to education. of an oversimplified "Crimestoppers' justice are the progenitors of crime. As He has been a. strong supporter of revenue long as these conditions exist, no amount sharing as a means of strengthening state Textbook" approach to reducing crime. of law-enforcement cosmetology will and local governments. On civil rights legis­ The analysis of recent experiences within lation he has opposed busing school children the law enforcement community ques­ ever make a significant dent in the crime to obtain a racial balance and supported tions the logic of assumptions that were rate. most major reform bills, but only after first thought to contain answers to the prob­ There is one factor that has emerged voting to weaken them. Similarly, he has lem. Some of the assumptions that char­ from the trauma of Watergate that de­ voted for most environmental legislation but acterize the fundamental formula un­ serves more emphasis than I could ever believes that many federal environmental give it. Many believe that respect for law standards should be eased. But the conserv­ derpinning such programs may be enu­ atism may be misleading because he· re­ merated as follows: and the rights of others has never been cently advised a visitor, who had noted his Highly efficient police force plus Fed­ lower in any prior period in our history; somewhat negative civil rights record, to eral monetary assistance plus cooperative Watergate has reinforced the public's "Forget the voting record. The voting record informed citizenry equals a reduced conviction that those most responsible reflects Grand Rapids." crime rate; for generating respect for the law and its Increased visibility of police presence institutions are arrogantly indifferent plus increase in arrest rate equals more and completely without moral substance. THE DEATH OF MRS. PARK­ effective crime deterrent, which in turn To expect restraint from the people KOREA'S LOSS, OUR LOSS equals a reduced crime rate; when their leaders run roughshod over Police plus improved technology, with every precept of law and accountability HON. JEROME R. WALDIE emphasis on hardware, equals a reduced is patently ridiculous. This cancer of dis­ crime rate; respect can be seen as encouraging an OF CALIFORNIA Reduction of the international flow of ugly popular preference for vigilantism IN THE HOUSE OF REPRESENTATIVES narcotics plus strict enforcement of drug that, if adopted would make past periods Wednesday, August 21, 1974 laws plus treatment of addicts equals a of lawlessness seem remotely inconse­ Mr. WALDIE. Mr. Speaker, the tragic reduced crime rate; quential. Already in our cities we have death of Mrs. Chtlllg Hee Park at the Improved economic conditions plus re­ seen examples of mob justice that has hand of an assassin, was a terrible loss duced unemployment locally equals a threatened the whole fabric of social to the people of the Republic of Korea reduced crime rate. order; currently, American moviegoers and to all of us who are concerned about The fact that these combinations of are on their feet, cheering a citizen­ the well-being of our fellow man. presumptions have failed to produce a victim who turns assassin due to the Mr. Speaker, the humanitarian inter­ measurable reduction in crimes of pas­ ineffectualness of the system in giving ests and energies of Mrs. Park will be sion and opportunity is not to say that him justice. missed by the people of Korea who loved they are totally invalid; it merely dem­ The time for lip service and cures that and revered their "First Lady." onstrates that their applications thus only hasten the spread of the sickness Let us hope that this terrible act is not far have been ineffective. is past. The question is no longer one of repeated and that the people of Korea, In my view, this is because crime has containment, but one of survival. It is our great friend and ally in the Far East, been treated as an objective rather than encouraging to note that some of my are comforted by a period of solidarity human phenomenon and, as a result, colleagues have rededicated themselves and peace they so richly deserve. efforts have been concentrated on treat­ to the principles of law and justice, and Mr. Speaker, if there is any solace in ing symptoms rather than curing the seem ready to eschew the lure of easy this terrible loss, it is that the strength cause itself. That is to say, we have shown solutions that have so tempted us in the of the Korean people has been tested and a tendency to preoccupy ourselves with past. Crime is merely the footsoldier of they have been joined by the common enlarging law enforcement systems to injustice; we must declare war on the bond of sorrow. increase their capacity to handle more real enemy. 29758 EXTENSIONS OF REMARKS August 21, 1974 Writing in a recent issue of the Wash­ be surprised-crime was up almost every­ under control. But the expected decline in ington Star-News, Mr. Orr Kelly bas pro­ where. the crime rate did not occur and some ex­ vided some helpful insights into the fail­ Kuntz checked other western cities and perts now are wondering whether they over­ confirmed the FBI report. In neighboring estimated the link between drug addiction ure of conventional programs to have a Washington, seattle's crime was up 28 per­ and crime. real impact in reducing the spiraling cerut, Spokane up 38 percent. In California, The effort to control the drug problem crime rate. I insert Mr. Kelly's article in San Diego was up 20 percent, San Jose up was Just one part of what then-Atty. Gen. the RECORD at this point for my col­ 19 percent. In cities of comparable size, only Richard G. Kleindienst described to Con­ leagues' appraisal and enlightenment. Oakland, Calif. showed a decrease--down 14 gress two years ago as the greatest attack on The article follows: percent. But Kuntz then checked the number crime in the lll!,tion's history. Since 1969, the (From the Washington Star-News, Aug. 16, of crimes reported and found that Portland Law Enforcement Assistance Administra­ 1974] and Oakland were running almost neck and tion-the agency through which the federal neck and that the number of rapes and ag­ government helps local law enforcement FAil..URE OF WAR ON CRIME gravated assaults reported in the two cities agencies--has received $3.2 billion, most of (By Orr Kelly) was exactly the same. which has been passed on to state and local The long nightmare of Watergate may be "We got an increase," Kuntz said, "but agencies. It is now geared up to send out over, but President Ford ls faced with an­ we just don't have the resources to find out :nearly $1 billion a year. other long nightmare that simply will not the causes." In his report in September 1972, Klein­ go away: crime in American cities. Another favorite theory is that poor eco­ dienst claimed that the war on crime was Statistics pouring into the Federal Bureau nomic conditions and an increase in unem­ beginning to show results and, when the of Investigation from police departments ployment will be reflected in a rise crime­ figures for 1972 showed an actual decline, ad­ throughout the country suggest that the and vice versa. ministration officials were elated. As re­ war on crime-described by the Justice De­ That theory hasn't worked in Jacksonville, cently as January, in his state of the union partment as ''the most massive and sus­ Fla., where Sheri.ff Dale Carson's force of 800 message, President Nixon declared: "Peace tained attack on crime in the history of polices a community of 550,000 persons. Eco­ has returned to our cities, to our campuses. the nation"-has been a bitter failure. nomic conditions are good, unemployment The 17-year rise in crime has been stopped. "We have really made very little progress is low, industry is booming and the amount We can confidently say today that we are on a crime control system that really works," of Navy business in the area has increased finally beginning to win the war against Patrick V. Murphy, president of the Police as bases elsewhere were closed. crime." Foundation, said. "I don't think we have "We're up 28 percent for the year and we're It now appears that the claims of victory been winning the war on crime." at a loss to know why," Carson said. _ were, at best, premature. It is probable that Attorney General William B. Saxbe de­ This sense of bewilderment belies another some of the money spent in the last five scribed the amount of street crime in the of the theories that guided the war on crime: years will pay ofl' in the future. Training country as ''undesirable and 1.macceptable'' that research plus better cooperation among programs for police will almost certainly im­ and added: "a lot of the things we've bought police departments would reveal effective prove their efficiency as more and more go in the last few years as cures for crime Just strategies for fighting crime. through specialized programs. haven't worked." Chief Bernard Garmire, head of the Miami, And a $10 million a year program toques­ FBI statistics show that the crime rate, Fla., department, described a meeting with tion victims of crime is expected eventually which increased an average of 9 percent a other law enforcement officials earlier this to provide a vast amount of information year from 1960 to 1970, showed a slight de­ month in Jacksonvllle. that will help in an understanding of crime cline in 1972 for the first time in 17 years but, Almost all had bad news to report. Crime and its causes. These may well have a meas­ by the middle of last year, was clearly on in the first quarter was up 24 percent for the urable impact on crime-in years to come. the rise again. southeastern states, up 40 percent for Florida Looking at the experience of the last five In the last three months of last year, the and up as much as 50 percent in some com­ years, however, there is reason to suspect increa'ile was 16 percent. In the first three munities. that some of the shorter-range "solutions" months of this year, it was 15 percent. A "We don't know the answers," Garmire said. the federal government helped finance and spot check by the Star-News with police de­ "Each of us was at a loss to account for the the emphasis given to the war on crime partments in scattered parts of the country recent upsurge." itself have actually contributed to the in­ indicates the increase has continued into The increase in the crime rate for Miami crease in crime. the second quarter of this year. was below the state and regional average at Murphy, a former police commissioner in Even sociologists such as Dr. Albert D. 17.5 percent, a fact from which Garmire New York, explained that a chief of police Biderman, of the Bureau of Social Science takes some satisfaction-but not much. He will frequently respond to public concern Research here, who do not accept the FBI's now hopes that the rate of increase Will hold about an increa,se in crime by pushing up Uniform Crime Reports as an accurate meas­ at about that level for the year. the arrest rate. The federal money has helped ure of crime trends, believe that crime is Another theory that helped guide the war by making the police more efficient. The re­ increasing-and will continue to increase on crime was that police using more sophis­ sult in many places has been to overload the for an unpredictable period of time. ticated equipment-especially computers courts, prosecution staffs and the correction One of the most discouraging things about would be able to hold down crime. system with minor cases while dangerous the increase in the crime rate shown by the In Dallas, Tex., where a computer system criminals escape prosecution. FBI reports is that it confounds so many ot is in operation, one important result seems "Ninety percent of the felonies in Man­ the theories that guided the Nixon admin­ to be that Chief Donald A. Byrd gets the bad hattan are plea bargained," Murphy said. istration's offensive against crime. news faster. While most chiefs are still guess­ "Lawyers and criminals a.re running the sys­ If a city with a first-rate police department ing how their crime rate ran in the second tem rather than Judges and prosecutors. got help from the federal government and quarter of this year, Byrd knows that crime Criminals are beating the system." the enthusiastic cooperation of an informed in Dallas was up 18.78 percent in the first The war on crime also has had the effect, citizenry, it was reasoned, the amount of six months of the year. according to Biderman, the sociologist, of crime in that city would decline. Another disturbing fa.st revealed by the maklng crime visible, of constantly suggest­ Portland, Oreg., fits the formula almost computer is that the sharpest increase in ing crime. perfectly. It has a good department, it was Dallas ls in the crimes that the police have "The result has been, for some people, to chosen as an impact city to receive special most difficulty solving. make the unthinkable thinkable," he said. help and its people support the police de­ The rate for both murder and aggravated The effort to understand and deal with partment. assault is down but the police solve 90 per­ crime thus begins to seem like some giant "We are rather fortunate," Deputy Chief cent of the murders and 74 percent of the treadmill where even well-conceived efforts Richard Kuntz said in a telephone inter­ assault cases. to slow it down simply add to the view. "We enjoy a lot of support from the On the other hand, they clear only 16 momentum. community. People have faith in us. The rate percent of burglaries, 24 percent of the lar­ So far, the sharply rising crime rate re­ of reporting of crime is higher than in other cenies and 19 percent of auto thefts--and ported by the FBI has not become the kind cities." there is a sharp increase in all those cate­ of political issue that crime in the streets What happened? In the first quarter of gories. became in the late 1960s-even though the this year, crime in Portland went up 25 per­ Perhaps the most grievous disappointment increase for at least a six-month period is cent. in the national war on crime has been the as sharp as it was in the peak year of 1968. Part of the increase, Ktmtz said, was the failure of the crime rate to drop as the result One reason for this may well be that a. result of successful efforts to encourage peo­ of a massive-and at least tempo1·arlly suc­ single crime complex known as Watergate ple to report crimes. That probably accounted cessful-effort to reduce drug traffic and has so absorbed the nation's attention that for most of the 113 percent increase in the drug addiction. it has not had time to think about such number of rapes reported, he said. But it does Through a combination of international local crimes as murder, rape and robbery. not help to explain why the number ot cooperation, strict enforcement of the drug Another reason. is that the kind o:t crimes murders Jumped 175 percent. laws and treatment of addicts, the heroin measured by the FBI are not very common When Kuntz reported the startling 25 per­ epidemic that plagued Alnerica.n cities only even though they are the kinds of crime of cent increase to the FBI, he was told not to a short time ago seems to have been brought which people are afraid. It is likely that August 21, 1974 EXTENSIONS OF REMARKS 29759 more Americans suffer more injury from URBAN MASS TRANSIT portation has projected capital invest­ animal bites than they do from criminals ment alone, not to mention soaring op­ and it is almost certainly true that the dol­ erating costs, to amount to over $3 bil­ lar loss from consumer fraud, embezzlement and graft-white collar crimes that are not HON. MICHAEL HARRINGTON lion annually for the next 15 years, and reflected in the FBI's crime rate statistics-is OF MASSACHUSETTS the U.S. Conference of Mayors has cited far greater than the loss to muggers and IN THE HOUSE OF REPRESENTATIVES the need for an annual funding level of second story men. approximately $3.6 billion over the next One recent study financed by LEAA showed Wednesday, August 21, 1974 5 years to support mass transit construc­ that there is almost the same amount of Mr. HARRINGTON. Mr. Speaker, yes­ tion and operation. crime in Dayton, Ohio, as there is in San The committee bill would have ap­ Jose, Calif.-but the people in Dayton are terday the House passed H.R. 12859, the much more conscious of crime and more Federal Mass Transportation Act of 1974, proaehed this funding level, but my col­ worried about it than the people of San as amended on the floor. leagues saw fit to acquiesce to the de­ Jose. Although I did not speak in favor of sires of the President in adopting the The fact that public reaction to crime is the bill at that time, I would like to take amendment to cut the authorization by extremely subjective and unpredictable sug­ this opportunity to state that, despite more than $9 billion to $11 billion. This gests that concern about street crime, while my disappointment at the adoption of the cut will force State and local trans­ subdued right now, could well erupt int o a portation agencies to eliminate many major political issue by the time of the amendment to cut the authorization by November elections, just as it did in 1968. about 45 percent from the committe rec­ necessary proposed new facilities, exten­ If it does, politicians of both parties will ommendation, I supported the bill on sions, and improvements, or, as an alter­ be ha.rd put to come up with solutions that the basis of its overall merits, particu­ native, to fund these projects partially, have a reasonable chance of, success. Almost larly because of the establishment for waiting and hoping for more money at a everything that promised a quick solution the first time of a unified and compre­ later date. has been tried-and the rate is still moving hensive Federal-State-lo.cal program of The allocation of this funding over a inexorably upward. Even in the District of mass transit assistance. sustained 6-year period, however, will Columbia, where a 65 percent increase in the have the benefit of providing the State police force helped to push down the. crime I would like to suggest that in a time rate, the rate shows signs of beginning to when the demand for mass transit facil­ and city transit planning agencies with a edge upwards once again. ities has been on the rise, when many stable skeletal framework within which Perhaps the most comforting theory is that existing urban mass transit facilities are to raise the necessary bond revenues. No the crime rate will begin to decline on its proving inadequate to handle the load, longer will they be left high and dry, own before this decade is over. Prof. James Q. when depreciated capital equipment has without the Federal commitment. In­ Wilson of Harvard, writing in the February in many cases been left to further de­ stead, I am sure that we will begin to issue of Barrister magazine, said the rate might well f.Jegin to drop as those born in teriorate for lack of funds, when our rail see rationally planned approaches to our the baby boom of the late 1940s get older, service facilities-particularly in small urban transportation problems. growing out of the age group responsible for towns-are dying a slow death, and when No one will deny that such a program most crime. This might be especially true if energy shortages and environmental is expensive. Even if it were funded at the number of jobs more nearly matched the problems demand that we find more ef­ the 6-year level of $20 billion, State and number of persons in the 15-to-24 year age ficient means of transportation, the time city commissions would not have enough group and if there were significant improve­ has certainly come for this serious Fed­ money to build and operate many of the ments in the court and correctional systems, eral commitment to a unified and com­ projects that are so desperately needed. be said. But Biderman, who tends to focus on pop­ prehensive mass ,transit assistance pro­ But when the expense is placed in the ulation trends rather than on the crime graim. context of, and viewed in comparison rates, sees some disturbing signs that the Certain factors particularly argue for to, the many years of direct and de passing of the post-war baby boom may not, the comprehensive approach to mass facto subsidization of automobile travel, in itself, cause a drop in the amount of transit assistance contained in this legis­ it is not so staggering. While opponents crime. One sign, he says, ls an early indica­ lation. Foremost among these are future of this vital legislation once again tion that the arrest rate among black males is not dropping off sharply after age 26, as it energy conservation requirements and cloaked their opposition in the rubric would be expected to do. Another worrisome the continuing pressure on urban govern­ of fiscal austerity, we must not allow sign is that Americans are not becoming ments to meet Federal environmental them to once again succeed in altogether parents as early as they used to. This could protection standards. Recent experience strangling a program that is truly in the mean more young people without the sta­ with the petroleum energy shortage and interest of all of our people, providing bilizing effect of family responsibility-and past trends in fossil fuel exploitation direct benefits in terms of providing more crime. suggest that now it would be prudent for transportation to those who live in the Federal officials have shown a strong in­ our Nation to pursue more efficient clination to grasp at a simplified version of city and revitalizing urban centers with the Wilson theory-and to hope that the means of transportation. But how can industry and jobs. Therefore, I supported crime problem will just go away. anyone expect the American public not passage of this legislation not for its Last spring, when the FBI reports first to drive their cars when, in most cases, inadequate funding level, but for the showed a five percent increase in the crime they have little or no alternative? framework which it establishes. rate last year, with the alarming 16 percent The urgency of the situation is inten­ In reviewing the provisions of the increase in the final quarter, Saxbe went to sified by the recent announcement of the committee bill, however, I found myself the White House and suggested calling the Environmental Protection Agency that in disagreement with section 506, which nation's police chiefs to Washington to see the parking regulations issued with the if they had any ideas for dealing with the would have exempted projects funded problem. White House officials showed no en­ aim of cutting down automobile com­ under the act from the requirements of thusiasm for a meeting that would dramatize muter travel, and, consequently, air pol­ the National Environmental Policy Act, a potentially explosive political problem they lution levels, will be enforced. In the ab­ substituting the unilateral judgment of would rather not think about. stract, the regulations seem quite work­ the Secretary of Transportation for the Now, Saxbe has quietly arranged for a able, but in the absence of transportation indepth environmental, economic, and group of top law enforcement officials to alternatives, compliance with these EPA social impact studies of the proposed gather on the weekend of Aug. 27-29-but in regulations poses a distinct hardship for projects conducted by independent engi­ Chicago rather than in Washington. those employees who must travel to work Several of the chiefs interviewed by the neers and subject to the scrutiny of pub­ by automobile. lic opinion. It seems to me that this pro­ Star-News said they expected to be at the A well-planned and well-funded pro­ meeting-looking for answers rather than vision would have had the undesirable gram of mass transit construction and effect of removing public transit deci­ bringing them. operation assistance will get us started One Justice Department official who has sions from the public eye, thus foreclos­ long studied the crime prci:>lem and various on providing a rational and workable ing the possibility of informed consider­ solutions to it was asked if he had any sug­ alternative to our present reliance upon ation of alternatives to the proposed gestions. He shrugged. the automobile. project. In this regard, I commend the "We're not going to lick this problem until All responsible projections point to the House for its wide support of the amend­ we have a moral rejuvenation in this coun­ need for increased funding for urban ment to strike this exemption from the try," he said. "We need better people." mass transit. The Department of Trans- bill. 29760 EXTENSIONS OF REMARKS· August 21, 1974 Finally, while I hope that the cut of ket system. It will increase the odds of future sympathetic to the competitive market sys­ the authorization because of the Presi­ mandatory wage-price controls. It will assist tem. They will urge action. dential veto threat does not establish a a growing movement toward national eco­ It will raise false expectations. And when nomic planning. it proves unable to check rising corn prices, dangerous precedent for the near futw·e, All of that? After all, the agency is just or steel prices or coal miners' wages, public the passage of the Federal Mass Trans­ a "monitoring" group. It will have no sub­ disillusionment will follow, with the cry in­ portation Act of 1974 is a most significant poena power, no mandatory powers, and a creasing for more immediate, even stronger step forward for w·ban mass transpor­ budget of only $1 million. To improve col­ measures. Then it will be said that the tation. lective bargaining and encourage price re­ agency must be given additional powers to straint, it will simply "review and analyze enable it to "do its job." Authority for the capacity, demand and supply ... work with 1971-74 controls came from a simple amend­ A STRONG "NO" TO PRICE labor and management in sectors having ment by Congressman Reuss to another piece economic problems . . . improve wage and of legislation. No one expected this to turn MONITORING price data bases ... monitor the economy as into 33 months of mandatory controls. B1.1t a whole." Who could be against that? political pressures forced the action. HON. JOHN H. ROUSSELOT Very few. The bill is going through Con­ It isn't good economics. Controls seldom gress with amazing speed. Business, labor, the are. OF CALIFORNIA administration, and Congress on both sides The agency has to go after the larger IN THE HOUSE OP REPRESENTATIVES of the aisle are either for it, neutral, resigned individual wage and price increases. But not Wednesday, August 21, 1974 to it as a tranquilizing political expedient or every large wage and price increase is wrong, accepting it as a lesser of evils. On the sur­ or inflationary. The increase may represent Mr. ROUSSELOT. Mr. Speaker, on face, it seems innocuous and even logical. demand and supply shifts. Yet political February 4, 1974, the Wall Street Journal But, based on my experiences as chairman pressure on the agency may force it to act, published a column by Prof. C. Jackson of the Price Commission, I want to point with the same distorting result that manda­ Grayson, who served as chairman of the out some political, institutional and econom­ tory controls generate. Shortages and invest­ ic realities and issue some warnings a.bout ment in capacity may actually worsen, not Price Commission during phase 2, in the agency. I don't think it will be as benign improve. which Dr. Grayson called for the com­ or cosmetic as many think it will be. What The mere creation of the agency, moreover, plete abolition of wage and price con­ you see isn't what you'll get. will ratchet up some wages and prices for fear of coming mandatory controls. I know from trols. He made it clear at that time that POWER AND PRESSURE his warning extended to the establish­ direct experience that this has already oc­ ment of any so-called standby or moni­ First of all, don't be deluded because the curred as a result of the discussions these agency won't have powers to subpoena rec­ past few weeks. Soon "guidelines" are likely toring agency because- ords or veto price-wage increases. It will to emerge. Business and labor will infer what If such an agency were created, ... it have tremendous power in the form of jaw­ is regarded by the agency as being within would be under continual pressure to reim­ boning, or as they say in Britain, "ear-strok­ the government tolerance zone. It certainly pose controls, totally or selectively. The ing." The persuaders come in gentle and won't be 5.5 % or 2.5% , those famous figures monit ors would find it almost impossible not-so-gentle forms of pressure. Public from the past; new percentage yard markers not to take "action" (direct controls or jaw­ hearings can be hinted at or called. Public will be created. And, as with direct controls, boning) even when price increases repre­ condemnation can be expressed in the media. these will be taken not only as ceilings but sented pure demand shifts. Prices would be Officials can be called to the White House also as floors. determined as much by politics as economics. for a public or private "dressing down." The agency will tend to operate in the * Requests can be made to congressional com­ short-run. Its expiration date of June 30, I know from firsthand experience that mittees to hold investigations. Administra­ 1975 cries for action now. And generally allocations by the marketplace are far su­ tive action can be threatened in other short-run action is bad economics, which is perior to any centrally directed system, and agencies; export controls, import relaxation, part of the reason we are where we are are most consistent with personal freedom. delay of decisions, procurement changes and now. It's easy to get into controls, but as we are stockpile releases. News conferences can be If general inflation has not cooled sig­ now witnessing, hard to get out. It is time to held; speeches can be put in congressional nificantly by next spring, there will be act with courage. Let's get out, and let's get hands. even more of a desire to "do something," out completely. Deplorable in the American sense of fair and then the "something" must be play, these tactics have all been used in vary­ There was reason for encouragement stronger, not weaker. To say it can't hap­ ing degrees by past administrations. The pen is to ignore the fact that we dropped that Dr. Grayson's advice might be effect is to heighten antagonism between the controls-and the proposal for continuing heeded when on April 5, 1974, the House public and private sector, with the public the Cost of Living Council a.s a monitoring Committee on Banking and Currency increasingly led to believe that union leaders agency--only four months ago. And here we voted decisively to table three proposals are all greedy and that businessmen are all are again. for extension of the Economic Stabiliza­ price gougers. It doesn't take a govern­ Clearly, my belief is that the agency tion Act. However, recent days have seen ment agency to initiate these tactics, but should not be created at all. But at this they will be more organized, more frequent point, holding this conviction is about as the Nation slip back toward controls, and more visible with the agency in existence. with the imminent establishment of a effective as spitting into the wind. There­ And make no mistake about it, this agency fore, my recommendations concern altera­ new monitoring agency, the Council on will take action. A common assumption is tions, either before or after passage of the Price and Wage Stability. that this is only a monitoring, not an action bill, plus some alternatives. Today's Wall Street Journal contains agency. Not true! "Action" doesn't have to First, don't give this agency any addi­ mean a direct order. The agency can influence another timely article by Dr. Grayson, tional powers, now or in the future. If this to other agencies to do that. Moreover, monitor­ entitled "A Strong 'No' Price Monitor­ ing and reporting is not passive any more occurs, we will clearly be on the road to ing," in which he argues, as I have than a chaperone with a camera in her hand direct wage-price controls. argued, that the new agency will con­ saying to a couple, "Go right ahead. Don't Second, don't put heavy reliance on this tribute little to fighting inflation and that mind me." What is, and what is not, reported agency to fight inflation. The danger is it may even be counterproductive. creates public opinion and action. that existence of this stopgap agency will Reporters will camp on the agency's door­ reduce pressure to engage in tough, funda­ The full text of Dr. Grayson's column mental decisions. Reducing the federal follows: step: "What about this wage increase in the XYZ industry?" "What about these high budget, for example, is a basic way to A STRONG "No" TO PRICE MONITORING profits?" "Are you going to recommend ex­ fight inflation. But it will be tough going (By C. Jackson Grayson, Jr.) port controls?" "Why not?" when Congress and the Executive get There seems little doubt that the pro­ It's a fact of political life that action will down to specifics. Any reduced pressure or posed wage-price monitoring agency will be forced on the agency because it exists. zeal because of the existence of this pass Congress easily, be signed, and in Even if the problems weren't apparent, such agency would be a real loss. operation in a matter of weeks. an agency would find some. You can find Public statements notwithstanding, the The near-term results: The agency will problems anywhere, any time, in any labor public will tend to hold this agency ac­ increase (falsely) expectations that the so­ or business organization, and particularly countable for every wage or price in­ lution to inflation is closer. It will do little with a bright, energetic staff that won't sit crease, and for every jump in the con­ to stop inflation. In fact, it will increase around. It will be a new agency with excite­ sumer or wholesale price index. The Price some wages and prices and will prevent ment that will attract good economists and Commission surely was, and the proposed decreases. It will possess power. It will take lawyers, who will regard it .as their duty to names for this agency-"Oost of Living action. hit somebody, somehow. Many of these peo­ Task Force" or "Council on Price and The longer-term results: It will be harm­ ple will be "control-oriented," with little di­ Wage Stability"-invlte similar responsi­ ful to the operation of the competitive mar- rect business or labor experience and un- bility. August 21, 1974 EXTENSIONS OF REMARKS 29761

LOCATING THE AGENCY the long run must not be invested in Con­ same nefarious practice by another Third, reconsider the location of the gress, the Executive Branch or any monitor­ means. One can only sympathize and agency. It is now d.estined for the Execu­ ing agencies, commissions or planning boards. hope that Czech people can indeed really tive Office of the President. I recommend It must rest in business and labor and the be free as they once were in between the instead that it be a quasi-independent public ln the private sector with two of the two World Wars as we again observe this agency, reporting directly to Congress (as most powerful inflation fighting tools ever does the GAO), or to both the Congress designed by man--JOHN BRADEMAS which is located in the district that I wano County in northeastern Wisconsin. It lies south of Shawano Lake and the OF INDIANA represent-at ,30 to 45 percent. And yet, that partieular .area of the city is slated once and futw·e Menominee Indian Res­ IN THE HOUSE OF REPRESENTATIVES to receive little in the way of Compre­ ervation. The community was named Wednesday, August 21, 1974 hensive ~ployment Training Act funds. after the lake which the .Indians caned Mr. BRADEMAS. Mr. Speaker, yester­ The fact of the matter is, that the entire "Sha.-Wa-Nah-Pay-Sa" or lake to tbe day, August 2.0, 19174, the distinguished city will i-eceive some .$15.3 million less south. former Under Secretary of State, George in fiscal year 1975 than it received in As with many other communities in W. Ban, in testimony before the Foreign 1972. Combined with inflation, cuts of northern Wisconsin, Shawano"s begin­ Affairs Committee of the House, urged this type rnpresent a backpedaling ning and continued growth was inter­ Congress ta halt U.S. military aid to Tur­ from Federal job training commitments. twined with the growth of the logging key in order to strengthen the position <>f l:n July rn74 the official unemploy­ industry. Shawano was founded when our country in any fm1;her negotiations ment rate Jor black workers was 9.4 men moved no1·thward in their continued on Cyprus. percent. But when I return to the West quest for lumber 131 years ago. I insert at this point in the RECORD an Side of Chicago and see and hear of the When the city was incorporated 31 article from the Washington Post of Au­ masses of discouraged workers who have years la.ter. it boasted of five churches gust 21, 1974 concerning Mr. Ball's entered the free mal'ket of despair I and three saloons. Despite the fact that statement: cannot help but agree with those who the livelihood of the city was still deeply GEORGE BALL AsKs Ctn'OFF OF MILITARY Am maintain that the estimated rate of 45 entrenched in the logging industry, signs TOTultKS percent unemployment in that area may of persistent growth and diversification Former 'Under Seci'etary of State George W. be .an understatement. To reiterate, had appeared. Merchants, millers, black­ Ball yesterday strongly ~ed Congr~ss to cut economic hopelessness is not uncom­ smiths, and atto1neys prospered. Toe in­ otr military a.id to Turkey as a. way of mon to Chicago's West Side. It is a way of ception of the daily stage line made strengthenlng Wa;shlngton's position in up­ life for millions of disadvantaged people Shawano easily accessible to surround­ coming n1'gotiations on the future of Cyprus. throughout our country. ing communities, and under such auspic­ "The only way the United States can re­ America must design and implement a ious beginnings, Shawano began to establish any useful position in the situa­ flourish. ti-On," Ba.TI said following a meeting with the system of economic soundness that can House Foreign Affa1rs Committee, "is by effectively .tackle problems which incu­ Today, Shawano is a city of more than ma.king it clear to the Turkish people--a.nd bate in depressed areas with high con­ 6.,400. Her surrounding countryside re­ particularly to the Greeks--that it regards centrations of joblessness. The use of ex­ mains unblemished; yet she is the home the present posture o! a 1a.rge Turkish force isting agencies, such as the Economic of several industries, -among them knit­ 011 Cyprus as totally unacceptable." Development Administration, would be a ting, paper, and dairy. The energy and Ball said: ""We have to reestablish our viable a.venue for support. For example, spirit of her peo_p1e are justifiably com­ position of confidence on the part of the funds mendable, having made Shawano what Greeks to show that we are not behaving in venture capital under this program can be used to purchase land. develop she it today. an anti-Greek_,_pro-Turkish way. This kind of 1: join the people of Shawano, Wis., legislation could -strengthen the hand of Sec­ public works projects, and generate seed ca.pita.I for major developments in sub­ in the commemoration of their lOOth retary {of State Henry A.] Kissinger." anniversary and congratulate them on Bep. Benjamin S. Rosenthal (D-N.Y.), who standard communities. The resultant with .Pier.re S. Du Pont {R-De1.) has cospon­ jobs and higher living standards which having reached this magnificent land­ sored a foreip a.1d bill .amendlng cutting off would arise from such undertakings is mark in their community's history. The military and economic aid to Turkey until apparent. citizens of Shawano receive my wannest an a.greement acceptahle to all is reached in Mr. President, -you came to Congress wishes for continued prosperity as they Cyprus. aaid. ,yesterday: "We've got to do last week and expressed your desire to pass from a history of accomplishment something to reestablish our credibility with work for all Americans. 1: concur in your to a future of addition-al a.chievement. 29764 EXTENSIONS OF REMARKS August 21, 1974 THE DAil.Jy TIMES OF Nll.ES, omo, ceivable supervisor, 1955; and, Donna years, this solid thriying newspaper In part­ CELEBRATES ITS 50TH ANNI­ Kay, business manager, 1956. nership with the solid thriving community of VERSARY Also featured in the special anniver­ Niles will strive for ever greater accomplish­ sary edition of the Dally Times were: ment together. Mrs. Samuel Law, who set type a letter HON. CHARLES J. CARNEY at a time for the Niles Daily News at the oF omo turn of the century; Mrs. Oliver Mar­ INTERLOCKING DffiECTORATES IN IN THE HOUSE OF REPRESENTATIVES tin-!ormer Winifred Glay, the earliest BOSTON PROBED known employee of the Daily Times and Wednesday, August 21, 1974 a "Jill of all trades"; and, Mr. Clyde Mr. CARNEY of Ohio. Mr. Speaker, Teeple, who worked in the composing HON. MICHAEL HARRINGTON the Daily Times, published by Niles room of the Daily Times for 42 years be­ OF MASSACHUSETTS Suburban Newspapers, Inc., Niles, Ohio, fore retiring in 1971. celebrated its 50th anniversary on Sun­ Mr. Speaker, I want to take this op­ IN THE HOUSE OF REPRESENTATIVES day, August, 11, 1974. Beginning on Sat­ portunity to extend my sincere congratu­ Wednesday, August 21, 1974 urday, August 10, the Daily Times had a lations and best wishes to everyone asso­ Mr. HARRINGTON. Mr. Speaker, on 5-day birthday party to celebrate the ciated with the Daily Times on the news­ Sunday, August 18, the Boston Globe occasion. paper's 50th anniversary. I know that the carried two articles about the investi­ The anniversary celebration included Daily Times will continue to progress and gation of interlocking directorates being a special historical section in which the prosper in the years ahead under the carried on by Senator METCALF's Sub­ top stories reported by the Daily Times able leadership of Publisher L. W. Stauf­ committee on Budgeting, Management, each year during its five decades of fer and Promotion Director Gordon An­ and Expenditures and by reporters for publication were summarized; a brunch derson. the Globe. for Daily Times employees and their Mr. Speaker, I would like to insert the As I pointed out in my testimony be­ families sponsored by Publisher L. W. Daily Times' 50th anniversary editorial in fore Senator METCALF on August 14, this Stauffer; public tours of the Daily Times the RECORD at this time: is a question of overriding importance. building so that interested persons could THE DAILY TIMES 50TH .ANNIVERSARY To restore confidence in our system's see how their newspaper is produced; a Celebration of the 50th anniversary of the ability to fairly allocate resources and dinner sponsored by the Niles Chamber Dally Times is your party, a tribute to the in­ maintain our standard of living. of Commerce, and a proclamation from dependent spirit of the people of Niles. You Mr. Speaker, it seems to me that this Mayor William A. Thorp declaring evidently want your views expressed, you issue deserves the attention of the Con­ want the news of Niles on the front page, you August 10-17, 1974, as Daily Times Week want our City to count in governmental deci­ gress, and that these articles deserve the in honor of all those responsible for the sion making, and so you read our local pa.per attention of my colleagues. Therefore, I newspaper, and also in recognition of the and patronize our advertisers. would like to insert them in the RECORD important role the newspaper has played Only because of your support have our at this time. in the growth and prosperity of the city. newspapers grown and improved over the The texts follow: Because of the city of Niles' proximity half century of our association. INTERLOCKING DmECTORATES IN BOSTON to the city of Youngstown and the city Niles had had no dally paper for a year, PROBED of Warren, Ohio, establishing and main­ when a. newspaper chain installed a press (By Stephen Wermiel) and brought forth the first edition of the taining a successful newspaper has not Dally Times on Aug. 11, 1924. It was not suc­ WASHINGToN.-An elaborate system of in­ been easy. However, the Daily Times has cessful in the beginning and was within two terlocking directorates between the First Na­ succeeded where many others have days of becoming a weekly when it was tional Boston Corp. and major utilities, failed. The combined circulation of the bought by a group of men headed by James banks and insurance companies in New Eng­ Daily Times and six weeklies has now L. and Milton Wick. Since then it has grown land has been revealed by a US Senate sub­ gradually, but steadily. committee probing corporate disclosure reached 25,000, and the Daily Times is practices. read in 8,000 homes each day. Published now by L. W. Stauffer, the Dally Times heads a group which also includes six The subcommittee, chaired by Sen. Lee The two men who have guided the suburban weekly newspapers throughout the Metcalf (D-Mont.), is conducting a prelim­ Daily Times through 48 years of its 50- Mahoning Valley. inary inquiry, which it hopes will lead to leg­ year existence are former Publisher Mil­ Throughout the vicissitudes the character islation requiring the nation's businesses to ton I. Wick, and the current pub­ of the newspapers have been molded by the report in greater detail who owns their stock lisher, Mr. L. W. Stauffer. Execu­ same forces that shaped Niles and its envi­ and who sits on their boards of directors. rons in Howland, Weathersfield and Lords­ In May the subcommittee got the views of tive Editor Lloyd R. Stoyer, and Promo­ the Federal Trade Commission. A public tion Director Gordan Anderson have town Townships. Situated between the larger cities of Warren and Youngstown, both the hearing last Wednesday centered on New done an outstanding job of expanding newspaper and the area whose center is Niles England. The Minneapolis banking-corporate circulation and improving the quality of have had to fight for identity. In the process, scene will be scrutinized next. And, eventu­ the newspaper in recent years. In a both have developed a fierce local pride. ally, the subcommittee will look at New York broader sense, the success of the Daily Possession of a local newspaper entirely banks and their relations with the major cor­ Times depends upon the hard work and devoted to its interests has given Niles influ­ porations and utilities. dedication of each and every one of its ence in County, State and National affairs. According to E. Winslow Turner, chief employees. The Niles newspaper for instance was among counsel to the Senate government operations the first in the country to suggest William subcommittee on budgeting, management The anniversary edition of the Daily McKinley, our native son, for President. and expenditure, and author of the study of Times paid special tribute to 13 men and Nobody knows how many articles from the the First National Boston Corp. (parent com­ women whose loyal service to the paper Times have been printed in the Congressional pany of the First National Bank of Boston): totals 356 years. They are: Harry B. Record, quoted in debate in the Ohio Legis­ "The cha.rt we have developed shows the Wick, composing room foreman who has lature, and discussed in the Trumbull County holding company ... directly interlocked worked for the Times since 1926; Fred Court House. The importance of a local with five large insurance companies with "voice" can hardly be over-emphasized. home offices in Boston, with major electric Belcastro, pressroom, who came to work There is a. story about an editor who lived utilities, with the telephone company and in 1933; Nick Zuzolo, composing room, in a rooming house. One day he got into an with at least four major producers and em­ October, 1940; Paul Clare, assistant argument with his landlady about the potato ployers. pressroom foreman, hired in 1945; Gor­ crop. She said it was a poor year for potatoes, "We are just beginning to look into the don Anderson, promotion director, and he thought there would be a bumper impact of these interlocks," said Turner, em­ March, 1946; Jean Powers, composing crop. When he got to the office, he wrote an phasizing that no allegations of wrongdoing editorial hailing the exceptional potato sea­ have been made. room, September, 1947; Ray Wheeler, Interlocks develop when a member of one composing room, December, 1947; Jim son. The next time he saw the landlady, she board of directors (First National Boston Dorchock, composing room, 1950; Jack apologized for her opinion. "I was wrong", Corp. in this case) also sits on the board of Maselli, composing room, November, she said. "This will be a great year for pota­ other institutions and corporations. Such 1950; Mike Varveris, editorial depart­ toes. I read it in the paper." relationships are called "primary interlocks" ment, 1951; Agnes Lopatta, society We do know that the printed word has while "secondary interlocks" occur when the editor, 1953; Marge Mollica, accounts re- weight and substance. Heading now for 100 relationships expand to include directors August 21, 1974 EXTENSIONS OF REMARKS 29765 from companies once removed from the ini­ "I will also prepare legislation prohibiting Therefore, corporations are forced to share tial board of directors. any bank and utility sharing common direc­ the few available men and women for their The thrust of Turner's study is that First tors from transacting business together," he boards, he said. National Boston Corp. shares directors with said. Other comments supported this view. major institutions competing with it in He called for a broader dissemination of "I think the 'senate subcommittee investi­ providing financial services to business, gov­ economic power "to restore confidence in gation is posing a legitimate inquiry," said ernment and the public. our system's ability to fairly allocate re· J . Edwin Matz, president of John Hancock In secondary interlocks, Turner noted sources and maintain our standard of liv· Mutual Life I"lsurance Co. He is a Hancock there are 15 indirect overlaps between First ing . .." director, and on the board of the National Nat ional Boston Corp. and the National Sha­ Harrington referred specifically to the New Shawmut Bank. m ut Bank, one of the leading Boston com­ England Electric System and Boston Edison. Hancock's chairman, Gerhard D. Bleicken, petitors of the First National Bank of Pointing to diagrams, he said, "These charts serves on the board of First National Boston Boston. ... reveal an intricate spider web of associa­ Corp., and the First National Bank of Bos­ "We are talking about effective corporate tions between Massachusett's most powerful ton, but was out of town last week and disclosure to the public," said Turner. "There economic concerns. could not be reached for comment. will be more hearings in this area, probably "Through direct, secondary and tertiary in­ "The potential is there for restrictive com­ in t he fall, aimed at legislation to insure terlocks," Harrington said, "New England petitive practices and abuse of financial the full reporting of interlocks." Electric is connected with 31 other utility powers but to my knowledge there haven't Turner said: "What we want to do is lay companies and 37 banks, insurance com­ been any abuses," Matz said. out the interlocks and study areas of poten­ panies and law firms. Boston Edison is con­ "The people involved have worked very tial abuse." nected with 23 utilities, financial institu­ hard to see that there are no abuses. The concerns center on two areas: tions, insurance companies and law firms." "You have interlocking directorships in (1) The possibility that directors in com­ Harrington also referred to an interview this city because companies all want to take mon among competing institutions leads to several weeks ago with Richard Hill, chair· advantage of the financial talent available anticompetitive attitudes and practices. man of First National Boston Corp., in which and there are only so many people available. (2) The high concentration of economic Hill said interlocks are necessary "because If we were to move in the dlrection of pre-· power and influence that develops through of the relatively small number of people venting interlocks, I think it would be bad interlocks may not be in the public interest. available to be directors." for business because you just wouldn't have "We are not alleging anything about First Responding to the Hill statements, Met­ the quality at the top that you have now." National (Boston Corp.) directly," said Tur­ calfe said: "It may be that there are a Joseph Carter, president of Wyman Gordon ner, "but we have seen in the past potential limited number of people who will favor Mr. Corp. in Worcester, agreed. He is on the problems with the concentration of econom­ Hill's bank and holding company ... but I boards of Liberty Mutual Insurance Co., Avco ic power and anticompetitive policies. can't believe with all the educational in­ Corp., State Mutual Life Assurance Co., of "First National is the largest bank holding stitutions and successful businesses and fi­ America and Mechanics National Bank of company in the New England region and nancial activity in New England, that utilities Worcester. would obviously have considerable impact on can't find financial and corporate directors Wyman Gordon Corp's chairman, Robert W .. the region," he said. other than the largest bankers." Stoddard, who serves on the board of the According to Turner's study, the corpora­ At the hearing Metcalfe said: "The small First National Bank of· Boston, Raytheon Co. tions that share directors with First National businesses, the individual consumers even and Worcester County Institution for Sav:. Boston Corp. include: Massachuset ts Mutual, the state and local governments are not rep­ ings was out of town and could not be John Hancock, New England Mutual, Liberty resented on these boards, but these are the reached for comment. . Mutual and Arkwright-Boston, each an in­ people who provide the bulk of revenues to Carter said: "I've served on boards where surance company and competitors in money the utilities-while the big business guys get members have abstained or refused to vote or lending; the New England Electric System the favored treatment." removed themselves from the board if they've and Boston Edison, second and third largest In fact, said Metcalfe, he had an aide check felt there might be a conflict of interest. . power companies in New England; New Eng­ the major stockholders in his home state's "It seems to me that you have two strong land Telephone; Cabot Corp., Polaroid, Ray­ Montana Power Co. and found the majol' forces running head on into each other today. theon, USM Corp. and Gillette-all major stockholder to be the National Shawmut ot You've got the push that says a corporation industrial employers; and Arthur D. Little, Boston. must be responsible to the public and, con­ the Cambridge think-tank. sequently, must have top quality people on In addition to the New England corpora­ IT LOOKS BAD BUT REALLY lsN'T, SAY its board making sure that there is this ac­ tions, other interlocks include: Pan Ameri­ "INTERLOCKED" DIRECTORS countability. On the other hal).d, you've got can, International Paper, Eastern Airlines, ( Globe financial writers Terry Atlas, John the camp that says a person cannot serve two Mitre Corp., Howard Johnson's, Itek and Robinson and Susan Trausch attempted to masters attempting to limit the availability Curtis-Wright Corp. contact directors of the First National Bos­ of these top quality people." "What we are looking for," said Turner, ton Corp. who also are chief executives of Another reason was cited in defense of "is a means by which we can gain public major New England Boston companies. Here bank directors serving on the boards of com­ accountability through utilization of Federal are the comments of those available for in- panies with which_they do business. Such a. regulatory agencies-if they were to come up terviews.) · practice, said a bank . spokesman, allows a with and enforce a plan for disclosure.'' Like the relationship of the dog's bark to financial institution with a significant in· One agency campaigning for more dis­ his bite, interlocking corporate directorates vestment in a company to monitor the safety closure is the Federal Trade Commission. look more suspicious than the facts warrant, of its loan or other form of assistance, thus FTC Chairman Lewis A. Engman on May 20 according to a sampling of local executives. protecting the interests of not only the told the subcommittee of his concern that A survey of top Boston businessmen, many bank's shareholders, but its many depositors "links between competing corporations, cre­ of whom would be considered "interlocked" as well. ated by representation on the same bank corporate directors, revealed one common Lloyd S. Glidden, Jr., vice president and boards, could provide a stimulus and S'ource view: directors· serving on more than one treasurer of Liberty Mutual Insurance Co., of capital for anticompetitive mergers, acqui­ board look bad, especially to nonbusiness­ believes stories on inquiries into interlocking sitions, joint ventures and other transfers men. directorates might discourage people from arid combinations of corporate power." But every executive insisted that corporate serving on boards. While Turner and Metcalfe expressed con­ boardrooms are free from anti-competitive Glidden is not a director and was respond­ cern over public disclosure, at least one legis­ manipulations· or scheming, although each ing for company president Frank L. Farwell, lator, Rep. Michael Harrington (D-Ma.ss.) conceded the ,potential existed.· who was out of town. Farwell holds board would like to see legislation restricting the Richard D. Hill, chairman of First Na­ memberships with First National Boston relationships between utilities and inter­ tional Boston Corp. and the First National Corp., First National Bank of Boston, Boston locking financial institutions. Edison, USM Corp. and Arkwright-Boston In­ Bank of Boston, reaffirmed his confidence in surance. Said one Harrington aide: "We are drafting the system of sharing corporate directors legislation to restrict the interlocking rela­ with potential or actual competitors. "I think (newspaper) articles on inter­ tionships so that a public utility may have He said the integ'l'ity of those chosen to locking directorships are very inflammatory interlocks but cannot also do business with serve as directors, the existence of rigorous and misleading," Glidden said. "I know darn well if I were on the First National board the interlocking corporations." competition among companies and the pro­ and got a call from a reporter investigating Harrington testified Wednesday before tection of our laws combine to prevent a it, I'd start thinking that maybe I shouldn't Metcalf's subcommittee and said he would small sector of the economy from exercising be serving on the board and wouldn't want ask the Federal Power Commission and the abusive economic power through a few in­ to take on any more directorships. There a.re Securities and Exchange Commission "to terlocked directors. only so many people in Boston qualified to hold public hearings with an eye toward Furthermore, he said, there is "a limited be directors and they shouldn't be discour­ tightening up the restrictions and eliminat­ pool of people with broad business and finan­ aged." ing some of the exemptions" now placed on cial backgrounds who have gone through the The roots of interlocking directorates are interlocking directors. crucible of experience." more social than economic, according to 29766 EXTENSIONS OF REMARKS August 21, 1974 Myles Mace, professor emeritus at Harvard claim her husband's benefits, but a man is Ukranian seaport, who had spent two years Business School. barred from· collecting his dead wife's pay­ in Israel but couldn't make a. go of it. "You Mace, who has written several books on ments unless she was providing more than could live well in Odessa," one of them said corporate directors, said the same names are half his support when she died. wistfully, "if you had money. And boy, did seen a.gain and a.gain because "the chief ex­ The suit was filed on behalf of Leon Gold­ I have money!" Why had he left? He no ecutive officers stick pretty close to the club farb, 70, of Bellerose, L.I., who ACLU attor­ longer really remembered, he said. But it members they know (when selecting direc­ ney Kathleen Para.tis charged, "is denied seemed obvious that he had left to seek even tors)," a.voiding outsiders who might "rock widowers' benefits solely on the ground of bigger fortunes as have a large percentage the boat." his sex." His wife, Hannah, died in 1968. of this unexpected wave of emigrants from While there ls "too much corporate in­ Goldfarb, a federal employe for 37 yea.rs, the Soviet Union. cest," concern a.bout its effects on a firm's was ineligible for benefits because he did not Odessa is famous for its thriving unof­ decisions ls a "fake issue," he said. A boa.rd make sufficient payments into the Social ficial economy, many of whose former of directors, he noted, usually has little say Security plan. proprietors seem to be among the new emi­ over operational decisions. grants. They made money in Odessa by He was more, concerned with the potential hording scarce products, skimming profits abuse of inside information ma.de possible by from legitimate state businesses and other such conditions. To avoid even the hint of SOVIET JEWS COPING IN THE WEST tricks, none of which are workable in a ra­ impropriety. a bank officer should not serve tional, Western-style economy. on the boa.rd of a :firm in which his bank has At the other extreme are the cosmopolitan holdings. he said. Likewise, corporate official and happy intellectuals who have managed should not serve on the board of a. bank HON. FORTNEY H. (PETE) STARK to move comfortably into new lives. One is a from which it borrows. OF CALIFORNIA professor at the Hebrew university in Jeru­ •rm not saying they abuse the power, but salem, an Israeli citizen for more than three 1t would look a whole lot better if they IN THE HOUSE OF REPRESENTATIVES years. "Something very nice is happening to dldn" (serve on those boards)," he said. "It Wednesday, August 21, 1974 me," he said the other morning. "I'm begin­ just looks bad ••• you'll never persuade me ning to forget my old life in the Soviet tha.t when some of those investment banks Mr. STARK. Mr. Speaker, the Foreign Union-it's disappearing." buy and sell securities-, they don't use inside Affairs Committee's inclusion in H.R. It is impossible to generalize a.bout this information• 16168 of an appropriation for assistance heterogenous group, but most of them do ..As long as there is the potential, those in the resettlement of Soviet Jews in share certain traits-and certain tribula­ who might be suspect ... ought to choose Israel is to be highly commended. Con­ tions. not to be suspect." gress should be striving toward more of The most obvious of these, not surpris­ Hill of First National Boston Corp. dis­ this type of social assistance in our for­ ingly, is a general sense that they a.re in puted this notion, although he agreed that someone else's country. The Israeli govern­ "our competing banks probably think that eign aid programs. ment supports a daily newspaper in Russian we have a competitive advantage" when the The extraordinary burden placed on that is called "Our Country," a name that First is represented on a company's board Israel as a result of immigration by So­ seems more ironical than accurate. In con­ while no other bank is. viet Jews and the problems these people versation, most of the Soviet immigrants Hil1, for example, sits on the boa.rd of Pola­ have faced in their attempt to assimilate discuss Israel in terms of "them"-their gov­ roid, a major First National customer. into Israeli society have been monu­ ernment, their army, their politicians. Additionally, said Hill, the First would be mental. The following article will fur­ Many find "their country" frustrating, and "disappointed" if a. First director's company happily enunciate detailed programs for com­ like Gillette. Ludlow Corp. or Itek, did not ther recount the pitiful problems en­ pletely remaking it. "This parliamentary de­ do business with the bank. countered by both Israeli and Soviet mocracy is silly," one professor from Moscow Jews. It illustrates the necessity of this announced the other day. "They need a presi­ appropriation. I hope this is the begin­ dent, like in America, somebody strong ning of congressional awareness of the enough to get things done." Though Russian ACLU CHALLENGES DISCRIMINA­ need for the kind of positive foreign as­ Jews are inslde-dopesters by historic inclina­ sistance that this sort of program can tion, they find it hard to learn the inside TORY SOCIAL SECURITY PROVI­ dope here. "Nobody tells us what's going on," SION provide: one complained. SoVIET JEWS; COPING IN THE WEST The desire to have someone tell you what's (By Robert G. Kaiser) going on, what to do, where to shop or sell HON. JONATHAN B. BINGHAM JERUSALEM.-An American journalist who is widely shared. There's an old joke about recently completed a three-year assignment the Soviet tailor who opened a. shop in Jeru­ OF NEW YORK in the Soviet Union was riding through salem. After three weeks he sent a. bitter let­ IN THE HOUSE OF REPRESENTATIVES Jerusalem the other day with a newly ar­ ter of protest to the mayor. "Why don't you Wednesday, August 21, 1974 rived Israeli immigrant from Leningrad. send me any clients?" the tailor demanded They were stuck in slow-moving traffic on indignantly. Mr. BINGHAM. Mr. Speaker, on June King George Street, and the man from Len­ "Nobody finds you a job," the Russians 13, I introduced legislation to eliminate ingrad let out a. long sigh. here complain, Israeli social workers report "Yes," the American said, "this Israeli traf­ that if they give a. Russian schoolteacher a from the social security law a provision list of 10 schools that need teachers, she will which discriminates against men. It fic is murder." "Oh, it's not the traffic," the former So­ be hurt and confused. "They don't want to would allow any surviving spouse to ob­ viet citizen replied. "I was sighing in amaze­ offer themselves for employment," one social tain social security benefits based on the ment. I've been here for five months, but worker explained. "They want to be told to higher of the two spouses' income his­ every so often I still sigh in amazement start work at school so-and-so at 8:30. tories. Under present law only a widow that I'm really in Israel." Period." can do so. The glittering Western world dazzles many Amazement seemed precisely the .right of the Soviet Jews. Most of the newcomers in I include herewith, from the August 16 word-at least to that American, who is Rome who are on their way to the U.S. in­ edition of the New York Post, an article me. As the Israelis themselves say repeated­ stead of Israel seem to equip themselves describing a judicial attack on this in­ ly, it seems a. miracle that nearly 100,000 speedily with a. pair of Western eyeglasses, a vidious discrimination by the ACLU on cl tizens of the most isolated society in the new Swiss watch and a. modest but unmis­ behalf of a widower who has been denied Western (or nearly Western) world a.re now takably Western wardrobe. There is a. definite living here. It evokes the image of a. mass tendency toward flashy dressing among the social security benefits because of his Houdini escape-an implausible feat, but sex: men, who never saw bright clothes in here it is indisputably real. Moscow. SUIT SEEKS BENEFITS FOR WIDOWERS It ls difficult to imagine former Soviet But the material possession that seems to The American Civil Liberties Union has citizens walking the streets of Jerusalem, please Soviet emigrees most is a. full bowl challenged as discriminatory the Social Se­ Rome and New York the way they now do. of fresh fruit. Fruit is an expensive rarity curity regulations that deny most widowers To meet a. man from Leningrad on a. street­ in the Soviet Union, and former Soviet citi­ the right to collect their wives' benefits. corner in Tel Aviv must be something like zens here and in Italy seem to be eating Surviving wives can collect when their hus­ running into a pretty girl in a large public enough of it now to make up for years of bands die. men's room. Aren't you in the wrong place? missed peaches. They a.re also reading the In a. suit filed yesterday in Brooklyn Fed­ Are you lost? forbidden fruits of Soviet Utera.ture-801- eral Court, the ACLU asked a three-judge Some of them are lost, and they make a zhenitsyn, Pasternak, Mikhail Bulgak:ov and panel to rule on the constitutionality of the tragic spectacle. many more. "I have no time to study He­ two regulations and to block their enforce­ I met several of them last month on the brew," one immigrant here complained, "I ment. scruffy Mediterranean beach in Ostia, near ha.ve too :many Russian books to catch up Under present regulations, a. widow may Rome. They were Jews from Odessa, the on." August 21, 1974 EXTENSIONS OF 'REMARKS 1 29767 Little outings can be big events. A new­ Mrs. Hunderlack said, "We have a mother I offer Mr. Grayson's article as solid comer in Rome went to a neighborhood that's in her 80's and we realized that senior evidence of why, in my opinion, this restaurant for lunch, but spoke no Italian. citizens can get overlooked, and we just House ought to have opted for the mar­ After some experimenting, he found he had wanted to do something for them." ketplace. not for the Council on Wage German in common with the Italian waiter, She said they sent invitations to senior and ordered his meal. "Isn't that some­ citizens groups and to individuals in Wind­ and Price Stability and why Congress t hing?" he said afterward. "In Moscow we sor Locks, Windsor, Granby and East Granby. should reduce deficits spending instead read all the time about the poor, downtrod· of blaming business and labor: den Western worker, barely staying alive. A STRONG "No" TO PRICE MONITORING And here's an ordinary waiter in Rome who is (By C. Jackson Grayson Jr,) an educated, cultured man. Do you think THE CONFESSIONS OF A PRICE There seems little doubt that the pro­ there are any waiters in Moscow who speak CONTROLLER posed wage-price monitoring agency will German? Ha... pass Congress easily, be signed, and in opera­ In a strange and unexpected way, Soviet tion in a matter of weeks. patriotism often survives the wrenching HON. JACK F. KEMP The near-term results: The agency will move to the Western world. "In Odessa. we OF NEW YORK increase (falsely) expectations that the so­ could go to the theater every night," a girl IN THE HOUSE OF REPRESENTATIVES lution to inflation is closer. It will do little complained in Tel Aviv, "but there's 110 Rus­ to stop inflation. In fact, it will increase sian theater here." But did she go every Wednesday, August 21, 1974 some wages and prices and will prevent de­ night? No, of course not. And was t he theater creases. It will possess power. It will take interesting in Odessa? No, it wasn't. And Mr. KEMP. Mr. Speaker, earlier this action. yet... · week the House passed a bill to create "Russians are too impressed by supermar­ The longer-term results: It will be harm­ a Cost of Living Task Force. Yesterday, ful to the operation of the competitive kets," one emigre said of his fellows. "They the House receded from its position and should realize that there are good historic market system. It will increase the odds of reasons why the Soviet Union isn't as rich as accepted a similar Senate-passed bill future mandatory wage-price controls. It the United States." Was it a matter of creating a Council on Wage and Price will assist a growing movement toward na­ history? Well, no. Wouldn't Russi.ans be Stability. It has gone to the White tional economic planning. House for approval. All of that? After all, the agency is just happier if they had supermarkets? Well, yes. a "monitoring" group. It will have no sub­ But even expatriot Russians often seem pre­ I voted against both of those measures. poena power, no mandatory powers, and a pared to make excuses. I did so because I am committed to really budget of only $1 million. To improve col­ Conversations with several dozen recent doing something about-rather than just lective bargaining and encourage price re­ Russian emigrants suggest that life in the talking about-inflation. straint, it will simply "review and analyze Soviet Union leaves a powerful psychological Inflation has one principal source-too capacity, demand and supply ... work with imprint. A man who lived his first 40 years in labor and management in sectors having eco­ Moscow doesn't easily adjust to the funda­ much spending by the Federal Govern­ ment and too much reliance on increas­ nomic problems . . . improve wage and price mentally different Western world. Some So­ data bases ... monitor the economy as a viets make the adjustment, some don't, but ing the money supply in order to cover whole." Who could be against that? none find it easy to cope. the deficits created by that excessive Very few. The bill is going through Con­ "I can't get used to these Westerners," spending, Yet, despite that economic gress with amazing speed. Business, labor, the one young man of 23 complained. He had reality, this Council on Wage and Price administration, and Congress on both sides been virtually expelled from Kiev several Stability-created ostensibly to deal with of the aisle are either for it, neutral, resigned years ago, when his roommate in a student to it as a tranqualizing polftical expedient dormitory was discovered with Zionist litera­ the problem of inflation-will not ad­ dress itself to either of those inflationary or accepting it as a lesser of evils. On the ture. He had been in Israel, in several Euro­ surface, it seems innocuous and even logical. pean countries, and now in Rome, waiting factors-excessive Government spending for permission to emigrate to South Africa. and spiraling money supply. Instead, it But, based on my experiences as chairman "These Westerners are different than me," will simply talk about wages and prices. of the Price Commission, I want to point he said, "I knew I didn't like Israel the Yet, wages and prices are not the out some political, institutional and eco­ moment I arrived there. I spent six months nomic realities and issue some warnings in Switzerland, but could not get used to causes of inflation. They are its results. about the agency. I don't think it will be it. America.? I think that's just a. big Israel. When someone has less purchasing as benign or cosmetic as many think it will So I'm going to South Africa. I think I'll be power-because government action­ be. What you see isn't what you'll get. better off there materially. Do you think I'll not that of either management or labor­ POWER AND PRESSURE like it?" has devalued the dollar, the wage­ First of all, don't be deluded because the earner has to seek higher wages to main­ agency won't have powers to subpoena tain his purchasing power and the busi­ records or veto price-wage increases. It will SENIOR CITIZENS VISIT RESIDENT nessman has to seek higher profits to have tremendous power in the form of jaw­ FOR CELEBRATION boning, or as they say in Britain, "ea.rstrok­ maintain the production requisite to ing." The persuaders come in gentle and not­ more jobs and takehome pay. so-gentle forms of pressure. Public hearings Government control of the economy can be hinted at or called. Public condemna­ HON. ELLA T. GRASSO in the past has produced both higher tion can be expressed in the media. Officials OF CONNECTICUT prices and less goods. The beef shortage, can be called to the White House for a public IN THE HOUSE OF REPRESENTATIVES for example, was a direct result of the or private "dressing down." Requests can be mandatory price controls on beef. made to congressional committees to hold in­ Wednesday, August 21, 1974 vestigations. Administrative action can be According to one major study of ef­ threatened in other agencies: export controls, Mrs. GRASSO. Mr. Speaker, simple fects of the mandatory wage and price import relaxation, delay of decisions, pro­ acts of kindness, sometimes unknown controls from 1971 through the spring curement changes and stockpile releases. and unheralded, represent our tradition of this year, I could cite over 600 other News conferences can be held; speeches can of respect for the dignity of people and examples of where controls produced be put in congressional hands. the value of each indiviual. A shining both higher prices and severe shortages. Deplorable in the American sense of fair example of such an act tucked away in Few have been more articulate in ex­ play, these tactics have all been used in vary­ the suburban news pages of the Hartford posing the real results of Government ing degrees by past administrations. The ef­ fect is to heighten antagonism between the Courant recently speaks volumes for attempts to control our economic lives public and private sector, with the public faith and decency. than the former Chairman of the Price increasingly led to believe that union lead­ For the benefit of my colleagues, I in­ Commission during phase II, Mr. C. Jack­ ers are all greedy and that businessmen are sert the following story: son Grayson, Jr. He has proffered con­ all price gougers. It doesn't take a. govern­ EAST GRANBY-SENIOR CITIZENS VISIT RESI· vincing evidence, in his newly released ment agency to initiate these tactics, but DENT FOR CELEBRATION book, "The Confessions of a Price Con­ they will be more organized, more frequent EAST GRANBY .-Mrs. Amy Hunderlack of troller," and in an article today in the and more visible with the agency in exist­ Mount Vernon Drive, and her sister, Mrs. Wall Street Journal, that the most effec­ ence. Katherine M, Benattix of 9 Walco Drive, tive regulator of the economy lies in And make no mistake about it, this agency Granby, hosted 110 senior citizens from four will take action. A common assumption is towns Wednesday to celebrate the bicenten­ competition and productivity-economic that this is only a monitoring, not an action nial. phenomena which arise solely from the agency. Not true! "Action" doesn't have to The Marquise of Granby Fife and Drum interaction of management, labor, and mean a. direct order. The agency can influ­ Corps performed during the dessert and bin­ consumers in the marketplace, and ence other agencies to do that. Moreover, go party. never from Government control. monit oring and reporting is not passive any 29768 EXTENSIONS OF REMARKS August 21, 1974 more than a chaperone with a camera in her existence of this stopgap agency will reduce in the marketplace. Government does have a band saying to a couple. "Go right ahead. pressure to engage in tough, fundamental role in our economic system. In !.act, I am Don't mind me.'• What ls, and what ls not, decisions. Reducing the federal budget, for very much encouraged by the economic reported creates public opinion and action. example, is a basic way to fight lnfiation. But philosophy expressed by President Ford in Reporters will camp on the agency's door­ it will be tough going when Congress and his address to Congress and by the recent i:.: tep: "What about this wage increase in the the Executive get down to specifics. Any re­ budget control procedures instituted by XYZ industry?" "What about these high duced pressure or zeal because of the exist­ Congress. profits?" "Are you going to recommend ex­ ence of this agency would be a real loss. I am ringing an alarm bell on this par­ ~JOrt controls?" "Why not?" Public statements notwithstanding, the ticular issue because I know from my per­ It's a fact of political life that action wlll public will tend to hold this agency ac­ sonal experiences that the proposed monitor­ be forced on the agency because it exists. countable for every wage or price increase, ing agency can be misinterpreted, misused Even if the problems weren't apparent, such and for every jump in the consumer or and can prevent us from fighting inflation an agency would find some. You can find wholesale price index. The Price Commission .at the point where the real battles need to problems anywhere, any time, in any labor surely was, and the proposed names for this be fought. or business organization, and particularly agency-"Cost of Living Task Force" or The real control over this economy in the with a bright, energetic staff that won't sit "Council on Price and Wage Stability"-in­ long run must not be invested in Congress, around. It will be a new agency with excite­ vite similar responsibility. the Executive Branch or any monitoring ment that will attract good economists and LOCATING THE AGENCY agencies, commissions or planning boards. lawyers, who will regard it as their duty to It must rest in business and labor and the hit somebody, somehow. Many of these peo­ Third, reconsider the location of the agency. It is now destined for the Executive public in the private sector with two of the ple wlll be "control-oriented," with little di­ most powerful inflatl-0n fighting tools ever rect business or labor experience and unsym­ Office of the President. I recommend instead that it be a. quasi-independent agency, re­ designed by man--competition and pro­ pathetic to the competitive market system. ductivity. They will urge action. porting directly to Congress ( as does the It will raise false expectations. And when GAO), or to both the Congress and the Ex­ it proves unable to check rising corn prices, ecutive Branch (as does the ICC). Location or steel prices or coal miners' wages, public within the Executive Branch exclusively will REEVALUATING OUR RELATIONS dlslllusionment will follow, with the cry in­ constrain its activities and effectiveness for WITH CUBA creasing for more immediate, even stronger two reasons: measures. Then it will be said that the Every time this agency involves itself in a agency must be given additional powers to wage or price increase, the prestige and power HON. BELLA S. ABZUG enable it to "do its job." Authority for the of the Ova.I Office is somewhat at stake. If OF NEW YORK 1971-74 controls came from a simple amend­ the agency loses a battle, say in forestalling IN THE HOUSE OF R~RESENTATIVES ment by Congressman Reuss to another piece a labor settlement or in not reduut she saw nothing Wl'Ong with OF ll.LINOIS to follow her from bed to bed in the wards doing a little entertaining evenings a.t the IN THE HOUSE OF B.EPRESENTATIVES and sing to -the ba1des and the mothers. Roya.I Hawaiian Hotel. Then at the Eastman "'I t was a natural thlng for me to kid and Kodak Show. Then at the old Wa.iala.e Coun­ Wednesday, August 21, 1974 cut up,'' said 1ihe blithe spirit who, in the try Club. Sometimes .all three, every week. depressed 1930s, rang in raucous comedy on "'By '19{0 I was entertaining the whole Mr. CRANE. Mr. Speaker, those who the Maikiki enter:liainment scene and made Navy," she said. "'Every ship, and there were urge a program of national health in­ it stick. a lot of them on PAclfic maneuvers then. surance should understand that if Gov­ It was at the Royal Hawaiian Hotel where When they came into Pearl .Harbor I went ernment is to pay the bills for the health canaries trilled in ~licled cages and musicians out and did shows :for them.'' care of Americans, Government will, in­ in tuxedos played for five o'clock tea dances. Hilo Hattie was now too much for the evitably, determine the nature of such On this subdued scene there exploded Hilo pre-war Department of PubUc Instruction. Hattie doing the Hilo Hop in a ham-tied Officially, it suggested she ~'modify" her style care. muumuu and a. battered straw hat. She also of entertaining. She didn't. Finally it crone This is already the case with regard sang in pidgin English "Whassa Matta You to an either/ or choice of continuing on stage to those Americans who are recipients of Last Night?" "Ma.muela Boy" and "The Cock­ or eontlnulng as a public school teacher. medicare and medic.aid payments. The eyed Mayor of Kauna.kakai." "I thought maybe I should quit this mon­ Department of Health, Education, and When she introduced "Becky, I Ain't Com­ key business and stick to teaching," Clara Welfare has determined that generic ing Home No More.. with a Yiddish accent said. "I went to Dean Wist, head of the drugs are the "equivalent" of prescrip­ the manager was n.ervous. He took a mental teachers ,eollege at the U1iiversity and asked tion drugs. Since generic drngs are mueh house count and banned the number. The him what I should do. cUBtomers chanted thelr gut reaction: "Do "He said, 'Clar.a, eventually we·re going to cheaper than prescription drugs• .HEW Becky1 Do Becky1 D.o 'Becky I" get into a war. In wartime, one of the great­ has mandated that all those who receive Ma.nagff 1io Hilo H-attie (backstage)~ "Go est things ls fu k,eep up morale.'' governmental assistance will be aided ou and dG Becky. All those people out there That year she gave up teaching and tn only with the cost of generics. yelling. They're driving me crazy!" 1941 Harry Owens, former band leader at the As a result of this polieF', doctors -are Hilo Hattie was no spring chicken, even Royal Hawaiian Hotel, called Clara to join no longer able to prescribe the medi­ then. Clad "from chin to toe in a voluminous hlm for -. six weeks engagement at the cines they believe to be safest and most muumuu. she was not seductive. Rumor even Para.mount Theat;er In Los Angeles. In De­ effective had lt that sbe was a school teacher, which cember, while she was on the Mainland, but must, instead, prescribe was true. Pearl Harbor was bombed. those mandated by Government bw-eau­ The thing that knocked them in the aisles "It took me six years to get home,'' she crats. Government has taken upon it­ was not tha,t she was revolutionary, just real. said. "Most of my Navy friends had been self, in effect, the practice of medicine. She sang it Uke lt was in Ha. waii. She had transferred to San Francisco and when I NGw, it appears, this policy has been the Hawaiia.n's knack of mimicking locals asked them for priority to come home, they based upon bureaucratic desires rather and newcomers in a spirit of camaraderie. A begged me t6 stay there. They sent me to than scientific data. A 10-member panel, fl1endly• .fraternal .ribbing, spiced but never Juliet Wichman who was then .head of the headed by Dr. Robert Berliner, dean of spiked wlth humor. She hurt no one. Her Hawaiian Red C,wss branch in San Francisco. audience sensed this, relaxed, enjoyed and "It was a. time when Island motb.ers and the Yale Medical School, has concluded pounded the tables for more. children were being evacuated from Hawaii th-at cw-rent Government standards and Born Clara Haili-"My birth certificate to the Ya.ioland. There were wouncied service­ regulatory practices "do not assure bio­ says I'm 100 p.er cent Hawaiian"--she grew men anti pa.tients coming in on ships. Day or equivalence for drug products." C. up in what a -modern social worker might night, any time the ships came from Hono­ Joseph Stetler, president of the Phar­ call "disadvantaged" circumstances. Her lulu I .greeted them at the pier. The passen­ maceutical Manufacturers Association, older siblings wer.e .hanai-ed (given to rela­ gers were lined up on tlle decks and I was the states that the report "comp1eteiy tives) and Clar.a. until she was 8 years old, only face they .recognized. lived with be.r divorced mother in the Kapio­ "If the women had problems I'd go aboard undercuts the ill-advised proposal of the la.nl Maternity Home nurses quarters. and sit with them and talk to them. 'rhese Department of Health, F.dacation, and ••rt was right next fa the delivery room we11e our Island girls. On my days off I visited Welfare." and I sometimes used to hear the mothers the hospitals. Ail those boys who had seen me Another study, conducted by Prof. in paln/' Clara. said. in Honolulu. I was a. familiar fa.oe to them." Sam Pe1tzman, of the Chicago Graduate When her mother 1·e1narried, the family Cl&ra trouped for the military "giving 15- School -of Business, of th~ 1962 amend­ lived between a Chinese store and a Chinese minute iahows at gun. nests a.long the Ca.11- ments to our drug laws, concludes poi factory on Liliha Street. "Maybe it made fornia coast. We had a victrola on the truck me a little Chlnesey/'' Clara said. "I think I to play music. Ka.ha.la Bray was the dancer that-- absorbed some of their characteristics." and I was the singer. The 1962 amendments to the basic 1938 When she was 1'2 Clara made a bargain "The affieer would blow a whistle and out Drug Act were an outgrowth -0f the very best with her brother who was playing bass for from the woods would come these guys and intentions ... Where the old law had de­ of safety, a travelin.g ·nudevme ~ompany. we'd put 011 l\ little show for them." manded proof merely a. «rug's the "He told mi, it :I cleaned all the lanterns She also made films and recordings in new law demanded pr.oof of a drug's effec­ at home •n.d washed all the dishes I could Hollywood. appeared on radio and TV and tiveness u well •.. Inu.ova:tk>n has been go tG the Saturday matinee," she said. "I played in U.S. Uld CB.Uadian night clubs. At stifled. 1n the decade preceding the amend­ worked like the devil and went every week. waT's end,, Clara. ~me home to entertain ments, drug manufacturers introduced .an "That•s where l: learned 'Becky, I Ain't a.gain &t the R<1yal Hawa.lia.n when it was re­ average of 43 new chemical entities a y.ear. Coming Home No More.' Every Saturday I opened after serving a.s a Navy .recreation The average since then is 16 new entities a t.ook my copy book and a,dded more words center during the war. year. and verses tm I got it a11:• Clara Js lWllTied to Carlyle Nelson, formerly my But nobody thought of entertaining as a. 'I wish to sl1.a1·e with colleagues a violinist in.Rury Owens' orchestra and now the .repo1·t which appeared in the AMA career for Clara. Of three options-nurse, a. member of the R.oyal Ha.waiia.n Band. The 19'14,, teacher .or dressmaker-she chose teaching couple spent 10 yes.rs with their own Ha­ News of July 22, .concerning the and went to '"normal school.'' waiian tr1,upe, playing M&inla.nd. country report of the committ.ee headed by D1·. ·urn my -sopb.omGre year I had to leave club ,and military .club engagements. Berliner and a column by James J. KH­ school tG '.help .support the famHy," 'She said. pa.trlck, as it appeared in the Baltimore It was 1917 and Clara was 16 ~rs old. She When she was in her OOs Clara ~a.me home again to R- at this time; school. Now she wants out of long-term engag~­ REPORT STulS DEBATE ON DRUG EQUIVALEN<:E In 1923 she ,got her first school job tea~h­ ments, ""Just to be free to do what rd like,'• 'l11e Health, F.ducation~ and Welfare Dept. ing 1irst grade non-Engllsb-speaklng Jap­ Cll\ra ,sa,icl. At age 73, 'She wm join her hus­ is expected to oonttn·ue to pr,ess for some BOrt anese eblidren -at Wfl.lpahu Elementary band next month on 11. Royal Hawallfl.n Band ot lowest-cost dnlg relmblll'Sement policy School. tour of Canada, on which she will perform. under Medka1'.e-'Medlca.1cl, as .a 1'esult 91 • re­ '"Some of 'the niothers -stayed on the school '"After th'l.t, whenever there's a need for port by the Office of Technology Assessment. groUlldi> atmost 1'11 1.he Jlrst week_.. Clara. me I'd be willing to 'Perform," she said. unut But ther~ is someth.mg for both .sides CJ? &aild. ""nlat meant tbey dldn't go 'hapai ko• no niore -six nlghts a week, indefinitely .... t he argument about drug bloequlvaleucy t:n. 29772 EXTENSIONS OF REMARKS August 21, 1974... . .·~ the report--a.nd critics of HEW's proposal HEW's minimum-price drug policy pro­ able if the Kefauver amendments had never ·1 a.re armed with the panel's conclusion that posal was based on the assumption "that the been adopted. current government standards and regulatory Food and Drug Adminlstratlon can presently The principal result of the 1962 act has practices "do not assure bioequivalence for assure the uniform quallty and therapeutic been delay. Because of the elaborate require­ drug products." equivalency of all marketed medications,'' ments of the Food and Drug Administration, A IO-member panel, headed by Robert Ber­ said PMA's Stetler. manufacturers are compelled to devote from liner, MD, dean of Yale U. School of Medicine, "We labeled that assumption a huge four years to nearly nine yea.rs in accumulat­ p roduced the report for OTA, which is an gamble at the time," and statements in the ing absolute proof of a drug's effectiveness. advisory group to Congress. report support the idea it is still a gamble, The FDA itself, which in 1962 processed a Another of its conclusions, one seeming to Stetler said. new drug application in seven months, now favor a. price-ceiling on drugs, says that tech­ Charles Edwards, MD, HEW assistant secre­ requires 2Y2 yea.rs for its own review. nology exists for establishing the bioequiva­ tary for health, said HEW "believes that lence of most drugs, and that the government bioequivalency problems can be solved, and ought to get going on "an official list of pose no insurmountable obstacle to its an­ interchangeable drug products." nounced plans . . . " It was this issue that brought on the re­ Other conclusions of the report: DAVIDSON COMMUNITY CENTER: A port in the first place. Variations in bioequivalency of drugs have SMALL MffiACLE IN THE BRONX HEW last December announced a proposal been recognized as responsible for "a few for Medicare-Medicaid drug reimbursement, therapeutic failures. It is probable that other based on products generally available, but therapeutic failures ( or toxicity) of a similar lowest in cost. origin have escaped recognition." HON. JONATHAN B. BINGHAM In hearings before the health subcommit­ Bioequivalency studies of all drugs are OF NEW YORK tee of the Senate Labor and Public Welfare neither feasible nor desirable, but classes IN THE HOUSE OF REPRESENTATIVES Committee, drug company representatives of drugs where such information is impor­ protested that it would be impossible to tant should be identified. Wednesday, August 21, 1974 ensure the bioequivalency of similar generic A single standards-setting organization drugs, using the government's own standards. should be established to replace the present Mr. BINGHAM. Mr. Speaker, the HEW Secretary Caspar Weinberger a.greed USP and National Formulary. Davidson Community Center, a store­ to postpone putting the reimbursement plan (USP and NF have announced plans to front self-help organization located in into effect, pending the report. merge, and said they already have ta.ken my congressional district, is a credit to The report was termed "superb" by two steps to meet the panel's criticisms. "The the community and is to be commended frequent adversaries in discussions of drug possibility that USP and the NF could merge for a job well done. costs. and make sufficient changes . . . to fulfill Ms. "Toni" Vasquez, who founded, and C. Joseph Stetler, president of the Pharma­ the criteria. for an effective standard-setting ceutical Manufacturers Assn., said the report organization is not precluded, but the now runs the center, has created a unique "completely undercuts the ill-advised pro­ changes necessary would be expensive," the mix of educational programs for adults posal of the Department of Health, Educa­ report said.) and supervised recreation for children tion, and Welfare ..." that earned the center the Lane Bry­ PMA supports the report's call for improved ant Award for community service in drug standards, but believes the report "fully AEI STUDY SAID To SHOW MISCALCULATION ON 1970, and a No. 7 ranking-out of 900 refutes the concept that high-quality prod­ DRUGS centers judged-by the U.S. Jaycees ucts and research incentives in industry can (By James J. Kilpatrick) Foundation in 1974. be maintained while prices at the lowest level [A] new study, by Sam Peltzman of the are dictated by government." Unfortunately, this small miracle in Chica.go Graduate School of Business, deals the Bronx may soon have to shut its doors Sen. F.dward Kennedy, (D., Mass.) chair­ with the consequences that have stemmed man of both OTA's Technology Assessment from the 1962 amendments to our drug laws. because of inadequate funding. It would Board and the Senate health subcommittee, [The study is a recent AEI publication.) indeed be tragic if members of our com­ praised the panel's work, and said he would He finds these consequences, on balance, bad. munity are prevented from helping fel­ introduce amendments to S. 3441, the Drug That evil consequences flow from good in­ low human beings because government Utilization Insurance Act, now before the tentions is scarcely a novel proposition. Such and private philanthropic organizations Senate Labor and Public Welfare Commit­ results often a.re observed when government are unable to satisfy the modest financial tee. The bill will be redrafted to incorporate sets out to tinker with the functions of the the report's recommendations, and new leg­ requirements of centers such as this. marketplace or with the workings of human I include herewith for the benefit of my islation would be introduced, if needed, be behavior. said. The 1962 amendments to the basic 1938 colleagues and other interested readers "I believe the authority already exists for Drug Act were an outgrowth of the very best of the RECORD an article appearing in the HEW to move ahead,'' Sen. Kennedy said. intentions. Congressional liberals, led by the August 11 edition of the New York Daily Dr. Berliner said it was "somewhat exag­ late Senator Estes Kefauver, were convinced News describing the center and its prob­ gerated to say our report 'completely under­ that drug manufacturers were exploiting a lem: cuts' the public policy of HEW." gullible public. "It would not take a great deal of time THE END OF A SMALL MmACLE? Riding the shock waves produced by the (By Lawrie Mifflin) for a restructuring of at least a major pa.rt thalidomide scandal, they wrote into law of what HEW proposed to do (in drug re­ some sweeping new demands for the approval Rosa. Rodriguez, trained as a secretary in imburse:i;nent) ,'' he sa.id. and marketing of drugs. Where the old law her native Santo Domingo, is learning Eng­ Dr. Berliner estimated that 85-90% of all had demanded proof merely of a drug's safety, lish so that she can be a secretary in New drugs are used in therapies which do not re­ the new law demanded proof of a drug's York. Jocelyn Lynch, a Jama.lean native and quire "close tolerances,'' and therefore, bio­ effectiveness as well. The senator from Ten­ mother of three who worked as a keypunch equivalency would not come into question. nessee assuredly did not want to harm the opera.tor for yea.rs in London but can't get Government standards for these could be consumer, his purpose was to benefit the a similar job here without a high school dra,wn soon, probably within a year, he said. consumer. Who could quarrel with so good diploma., is taking a high school equivalency "We also feel that moderate degrees of an intention? course. variation in most drug products will not have Dr. Peltzman quarrels with it. In his me­ Both are students at the Davidson Com­ any effect upon therapeutic effect,'' he said. thodical examination of the actual results of munity Center, a storefront neighborhood. Implications for the physician, if HEW's the 1962 amendments, the Chicago econo­ self-help organization at 2034 Davidson Ave. lowest-cost drug list were drawn up, would mist demonstrates convincingly that these in the deteriorating Morris Heights section be that "he would not have to concern him­ consequences have ensued: of the Bronx. While they study upstairs, chil­ self with brand names of products he pre­ Innovation has been stifled. In the decade dren romp and scramble downstairs and out­ scribes,'' said Dr. Berliner. preceding the amendments, drug manufac­ doors in supervised recreation programs, and "The drugs are, for the most pa.rt, largely block residents come in for all kinds of ad­ interchangeable. I think the cost of a drug turers introduced an average of 43 new vice and help. will come into some relative consideration,'' chemical entities a year. The average since But the happy tumult may come to an he said. then is 16 new entities a year. abrupt end soon: The center is threatened In addition, a government-approved drug Consumers have not gained. On the con­ with a shutdown because of a lack of funds. list might allow pharmacists to make some trary, they a.re losing from $250 to $350 mil­ It it does, Rosa Rodriguez might never be decisions about which drugs to use in a lion annually in benefits they might have a secretary a.gain, Jocelyn Lynch might not prescription, Dr. Berliner suggested. had if it had not been for the prolonged get another chance as a keypunch operator_ _; "This would require a change in the law delays and abandoned experiments of recent and scores of families would be back on ·~ in several states," he pointed out. "The only yea.rs. That is the demonstrable economic welfare once more. · ,~ way that might be accomplished is with a loss. The human loss is incalculable. Human It would also mean the end of a winte~ • (pharmacist's) fee for service, rather than beings have died, or have suffered needlessly, basketball team on which many gang mem- -; . a markup on the drug." for want of drugs that might have been avail- bers play; the end of Boy Scouts and b~ J August 22, 1974 CONGRESSIONAL RECORD-SENATE 29773 trips to upstate parks; the end of play streets, NATIONAL AWARD Maria Romano, who instructs 30 students the end of swimmobile visits, and the end In 1970 the center won a national Lane in E.nglish as a second language, recalls that of free summer lunches for the more than Bryant Award for community service. This she gave the class the option of a six-week 1,000 youngsters the center serves this sum· year the U.S. Jaycees Foundation ranked the or an eight-week summer session, and all mel". center seventh out of 100 outstanding com· opted for eight weeks. END OF A MmACLE munity self-help programs in the nation­ Rosa Rodriguez, who is also a mother of For the people of Morris Heights, where after judging more than 900 entries. two, said her family had planned to move welfare rolls have jumped to include 40 % "The center is my whole life,'' says Toni away from Morris Heights this summer buli of the Davidson Ave. population, where hous­ Vasquez, who is now the paid director and stayed on solely because of Ms. Romano's ing is crumbling and where arrests and crime supports her nearly-blind husband on her English class. complaints are the highest of any precinct salary, paid by the city Housing and Develop· Another student, Elba Bultron, a native in the city, the closing of Davidson Com­ ment Authority. "I see people come in here of Puerto Rico, declared that she had munity Center would mean the end of what crying and go out smiling, and that is why learned more English in eight weeks at many residents consider a small miracle. I keep going." Davidson Community Center than she did Last year, staffed almost entirely by un­ But Ms. Vasquez is nearly frantic now in four years at Theodore Roosevelt High trained community volunteers, the center because of the center's discouraging financial School. And Patricia Gerardy, who just came handled 250 welfare problems affecting 1,000 straits. to New York from Ecuador a year ago, plans people; made 126 successful job referrals; "With the Board of Education's employ­ to master English and go on to college some dealt with 213 housing cases, and ran a regu­ ment training program we are offering peo­ day. lar community patrol force of 30 volun­ ple skills, and then we help them find new But this year, the private funds ran out teers to deter crime. Jobs through manpower agencies, or even in June. The center owes two months renli Residents go there to get help fighting the Yellow Pages," she explains. "Then, they phone and electricity bills, and only a prom~ negligent landlords, to study and learn skills get off welfare and help themselves along. ised $2,000 emergency grant from YSA will for new employment opportunities, and to It's good work we do, and we are known all get it through the summer. "We're running straighten out the red tape of welfare or so­ over, but it doesn't seem to help when it all these programs on nothing, nothing but cial security tangles. When they go, they comes to money." people," Ms. Vasquez lamented. are helped not by college-educated profes. Others who work with the center agree To eliminate the annual panic over funds, sionals but by their neighbors, whose only that it does good work. "The place is always the center has requested a $35,000 year-round qualification is a fierce dedication to up­ bustling with purposeful activity," said Rob· gr,ant from YSA. If approved, it would re­ grading the Morris Heights neighborhood. ert Parente, a Board of Education super­ duce the private fund needed to about $5,000 "And without this lady, nothing moves," visor who stops by periodically to check on and put the center on solid financial footing said Officer David Milligan of the 44th, pat­ the employmei:it training and English classes. permanently, according to Mildred Zucker ting tiny Antonia Vazquez on the back. The three teachers and coordinator of those a consultant with the Federation of Protes~ Ms. Vazquez, or Toni to everyone at the programs are among the few professionals tant Welfare Agencies, who advises Ms center, is a dark-haired grandmother who at the center and are paid by the Board of Vasquez. · would seem frail were it not for her un­ Education. Without it, the scraping for funds will go bounded energy. She founded the Davidson AMAZING BUNCH on: Or the center will have to close, and the Community Center nine years ago, as an neighborly, comforting place where Morris "Of au the annexes I visit, this is the best­ .Heights residents turn for help with the outgrowth of tenants' rights and block work, functioning, Parente added. "The mothers and got it incorporated as a non-profit serv­ housing, crime, welfare and Job problems who come here are amazing-I've never seen that plague such areas will be out of luck ice agency in 1969. such a diligent, ambitious group." residents say. •

SENATE-Thursday, August 22, 1974 The Senate met at 10 a.m. and was Senate from the President pro tempore resentatives and that on Thursday, Au­ called to order by Hon. WALTER D. HUD­ (Mr. EASTLAND). _gust 29, and Tuesday, September 3, be­ DLESTON, a Senator from the State of The legislative clerk read the follow­ Kentucky. ing letter: tween 9 a.m. and 5 p.m., all committees U.S. SENATE, of the Senate be authorized to file their PRAYER PRESIDENT PRO TEMPORE, r~p~rts ~ogether with any· minority, in­ The Chaplain, the Reverend Edward Washington, D.O., August 22, 1974. d1v1dual, and supplemental views. L. R. Elson, D.D., offered the following To the Senate: The ACTING PRESIDENT pro tem­ prayer: Being temporarily absent from the Sen­ pore. Without objection, it is so ordered·. Eternal Father, as we set forth to com­ ate on official duties, I appoint Hon. WAL­ .TER D. HUDDLESTON, a Senator from the State memorate Labor Day, show us once more of Kentucky, to perform the duties of the that Thou hast ordained work as a way Chair during my absence. of life and not simply a means of liveli­ COMMITTEE MEETINGS DURING JAMES 0. EASTLAND, SENATE SESSION hood. Bless all whose labor of hand and President pro tempore. brain enriches the life of all. Be with Mr, MANSFIELD. Mr. President I ask those who are overworked, out of work Mr. HUDDLESTON thereupon took the chair. as Acting President pro tern· unanimous consent that all com~ittees ill paid, or in want. Protect all whose la-' pore. · may be authorized to meet during the bor brings them into danger or leads session of the Senate today. them into temptation. Comfort those The ACTING PRESIDENT pro tem­ whose toil is unpleasant, monotonous or THE JOURNAL pore. Without objection, it is so ordered. without joy. Have mercy on those who Mr. MANSFIELD. Mr. President, I ask are driven to sullenness desp·air and rebellion. ' ' unanimous consent that the reading of the Journal of the proceedings of AUTHORIZATION FOR C:ERTAIN Hasten the day when men shall toil Wednesday, August 21, 1974, be dispensed for the common good, when all com­ CORRECTIONS IN THE ENROLL­ with. MENT OF H.R. 15842 merce shall be pure, all work worship, The ACTING PRESIDENT pro tem­ and men shall rejoice in what they have pore. Without objection, it is so ordered. Mr. MANSFIELD. Mr. President, I ask done. the Chair to lay before the Senate a mes­ Be with all who labor in this place in sage from the House of Representatives ?igh decisionmaking, in supporting ro'ies, AUTHORIZATION FOR CERTAIN on House Concurrent Resolution 611. m tasks great and small and honor this ACTION DURING THE ADJOURN­ labor for the Nation and the advance­ MENT OF THE SENATE UNTIL SEP­ The ACTING PRESIDENT pro tem­ ment of Thy kingdom. TEMBER 4, 1974 pore laid before the Senate House Con­ In the name of the Carpenter of Naza­ current Resolution 611, which was read reth. Amen. Mr. MANSFIELD. Mr. President, I ask as follows: unanimous consent that during the ad­ H. CON. RES. 611 APPOINT:l\IENT OF ACTING PRESI­ journment of the Senate until noon, Resolved by the House of Representatives DENT PRO TEMPORE Wednesday, September 4, the Secretary (the Senate concurring), That the Clerk of of the Senate be authorized to receive the House of Representatives in the enroll­ The PRESIDING OFFICER. The clerk and refer messages from the President of ment of the bill (H.R. 15842) to increase will please read a communication to the the United States and the House of Rep- compensation for District of Columbia police-